Jaipur (Rajasthan) [India], Sep 17 (ANI): Affordable housing finance company Aavas Financiers has received an investment of Rs 345 crore from IFC, a member of the World Bank Group, through the issuance of non-convertible debentures.
Aavas is a retail-focused affordable housing finance company, primarily serving low and middle-income self-employed customers. These customers make up a large proportion of India's population and have limited or no access to formal banking credit due to a lack of credit score or proven credit history.
Over 27.5 crore people in India -- 22 per cent of the population -- do not have access to adequate housing. This translates into a housing gap of more than six crore units, to a large extent for low-income households employed in the informal sector.
Aavas will use the proceeds to grow its affordable housing finance programme in rural and semi-urban areas of Rajasthan. "This is in line with the government's vision of Housing for All by 2022 which will help us to grow our affordable housing finance loan book," said its Chief Financial Officer Ghanshyam Rawat.
IFC's Senior Investment Officer Anup Kumar Agarwal said: "In alignment with the government priorities, we are in this sector as a long-term investor and want to send a positive signal to the market."For the quarter ended June 30, Aavas' loan book stood at Rs 6,362 crore with gross non-performing assets at 0.58 per cent, capital adequacy ratio of 64.3 per cent, and return on assets of 3.2 per cent. The company has extended more than 95,000 loans to customers and has 211 branches spread across nine states.
IFC -- a sister organisation of the World Bank and member of the World Bank Group -- is the largest global development institution focused on the private sector in emerging markets. In fiscal year 2019, it delivered more than 19 billion dollars in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. (ANI)