Muthoot Homefin (India) Limited, Muthoot Finance’s wholly owned housing finance business, has announced the appointment of Alok Aggarwal as Chief Executive Officer (CEO). Muthoot Homefin improves its leadership in preparation for the company’s ambitions to become the most trusted institution enriching the lives of lower middle income (LMI) households by providing formal housing finance and achieving financial inclusion.
With the epidemic now behind us, the home finance industry is in terrific shape. Muthoot Homefin, which has a presence in 14 main states and two UTs, is seeing significant demand patterns in regions such as Maharashtra and Gujarat. Alok will continue to work on the company’s expansion strategy and meet the massive unmet demand for retail housing loans in his new capacity as CEO of Muthoot Homefin Ltd. Alok will also concentrate on growing the housing finance sector, particularly in tier 2 and 3 cities.
Alok Aggarwal is the MD & CEO of National Trust Housing Finance Limited and has 20 years of expertise. He has generated remarkable outcomes and increased company performance in areas such as housing finance, mortgage, auto loans, personal loans, and retail investment products. He is a veteran with competence in relationship building with all stakeholders such as regulators, commercial banks, rating agencies, members of the board, industry peers, and workers. He is well-versed in the regulations and policies under the NHB and RBI standards. Prior to joining National Trust Housing Finance, Alok held positions of leadership with Equitas Bank, Fullerton India HFC, Magma Housing Finance, Lodha Group, and Tata Capital. Alok holds an MBA from ICFAI Business School in Hyderabad as well as a Bachelor of Commerce (Honors) from the University of Delhi.
On the appointment of Alok Aggarwal as the new CEO, George Jacob Muthoot, Chairman, Muthoot Finance said, “There exists a significant gap between the housing demand and availability of housing finance to the underbanked/marginalised section. Muthoot Homefin remains focused on bridging this divide and fulfil the housing dreams of people at the bottom of the pyramid. The pandemic also further reinforced the need for housing, with real estate emerging as a resilient asset class. As a result, the demand for retail housing loans has continued to witness strong traction. With Alok joining the leadership team, we aim to capitalise on his expertise to spearhead the growth in housing finance business and also contribute significantly towards the Government’s mission of ‘Housing for All’.”
George Alexander Muthoot, Managing Director, Muthoot Finance said, “We remain committed towards growing and supporting the housing finance business of Muthoot Homefin. Although, the demand for housing loans has been steady during the pandemic, we had adopted a cautious stance towards growing the housing finance business due to the challenges customers faced on the cash flow front. Now with the pandemic behind us, we are witnessing buoyancy in the affordable housing sector across all the key states that we are present in. Given the improvement in overall operating environment, we aim to further tap the opportunity in the retail housing segment and grow the business. It is a great pleasure to onboard Alok as the CEO and I am confident that his vast experience in leading the housing finance segment in previous organisations will help us in becoming a leading player in this space. I am happy that he joins our team at a really good time as we are focused on expanding our services to new geographies and customers.”
Commenting on the new role, Alok Aggarwal, Chief Executive Officer, Muthoot Homefin said, “I am thankful and excited to become a part of the Muthoot Group and lead Muthoot Homefin. The Muthoot Group is trusted widely and being a part of the larger Muthoot group ecosystem, Muthoot Homefin can leverage on the strong brand presence of the parent, its reach to over 4 crore customer base and also access lower cost of funds. While we are seeing increasing demand trends across many states, demand remains strong especially in states like Maharashtra and Gujarat. The collection efficiency was largely stable during the pandemic, and hopefully with no fresh waves on the horizon, we expect healthy collection efficiency in the upcoming quarters. From an AUM of Rs. 1,420 crores, we aim to grow our loan book at 10-15% by the end of FY23. We further plan to improve our branch penetration across the remote locations in the country by opening 50 new branches in FY2023. Apart from a strong offline presence, we will also be actively tapping tech-savvy customers with our strong digital presence.”
Muthoot Homefin (India) Ltd (MHIL), Muthoot Finance’s wholly owned subsidiary, had a loan portfolio of Rs. 1,420 crores as of H1 FY23. Total revenue for the second quarter of FY23 was Rs. 39 crores, with profit after tax of Rs. 2 crores. CRISIL Limited has improved MHIL’s credit rating to AA+ / Stable, allowing them to source financing more competitively and pass on the benefits to their end consumers to help them acquire their dream home.
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