SBI sanctions Rs 50 crore additional loan to Star Housing Finance, ET RealEstate

August 26, 2023

NEW DELHI: State Bank of India (SBI) has sanctioned an additional loan facility of Rs 50 crores to Star Housing Finance for onward lending, the company informed in a BSE filing.

The funds shall be deployed for onward lending in its operational geographies to enable credit access for prospective economically weaker section/low income group (EWS/LIG) home buyers.

“Retail low ticket housing finance space has huge business potential and we aim to be a meaningful player in this space. Strong liability machinery and adequate capitalization levels helps us to build our balance sheet and this credit line will go a long way in achieving our business objectives,” said Ashish Jain, managing director of the company.

Tata Capital Financial Services (TCFSL) had recently sanctioned a loan facility of Rs 6 crore to the company. The shareholders had approved the reappointment of Ashish Jain as chairman and managing director of the company, it had informed in a regulatory filing.

In July 2023, IDBI Bank had sanctioned a loan facility of Rs 10 crore while ICICI Bank had sanctioned an additional loan facility of Rs 2.92 crore to the company.

Star Housing Finance’s total income stood at Rs 12.29 crore in Q1 FY24, a growth of 99.51% from Rs 6.16 crore it recorded in the similar quarter last year. Its net profit was Rs 1.55 crore during the quarter ended June 30, 2023 as against Rs 69 lakh it registered in the corresponding quarter of the previous fiscal.

The board had approved the issuance of unsecured/secured redeemable non-convertible debentures(NCDs)/bonds by way of private placement for an amount not exceeding Rs 100 crore, in one or more tranches.

Its assets-under-management (AUM) as of June 30, 2023 increased 134% year-on-year to Rs 271.62 crore. The company disbursed Rs 34.67 crore during the quarter registering year-on-year growth of 26%. As of June 30, 2023, PAR (0+ days past due) has reduced to 4.82%, of which gross non-performing assets (NPA) as of June 30, 2023 stands at 1.56% and net NPA as of June 30, 2023 stands at 1.13%.

  • Published On Aug 22, 2023 at 02:30 PM IST

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