Aadhar Housing Finance does not anticipate any immediate need for capital raising, given its healthy capital adequacy ratio, says managing director and CEO Rishi Anand.

“Given our strong financial position, we don’t anticipate needing additional capital for the next three to four years,” he said.

Anand also highlighted that the company’s asset quality remains strong, with credit costs staying between 25-27 basis points. “We are comfortable with our asset quality, and I don’t see any reason for it to deteriorate,” he said.

Furthermore, Anand said that the incremental ticket size for loans is set to rise from ₹10 lakh to ₹12.5 lakh, driven by inflation and construction cost increases. Despite this, he doesn’t expect a significant shift in the loan segments.

The company continues to maintain a stable loan mix, with home loans making up 75% of the portfolio. Anand said that Aadhaar Housing Finance is targeting a 21-22% growth in its assets under management (AUM) over the next three years.

Regarding spreads, Anand confirmed that the floating rate nature of the company’s loans ensures stability, with expected spreads in the 5.6%-5.75% range.

On the recent Reserve Bank of India (RBI) updates to priority sector lending, Anand welcomed the move that allows higher loan limits based on city population size. “Now, cities with over 50 lakh people can offer loans up to ₹50 lakh under priority sector lending, which will open up more opportunities,” he said.

The market capitalisation of Aadhar Housing Finance is around ₹18,273.45 crore. Its shares have gained close to 29% in the past year.