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Aadhar Housing Finance sees second straight quarter of asset-quality deterioration

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Aadhar Housing Finance sees second straight quarter of asset-quality deterioration

Gross Stage 3 assets increased four basis points to 1.35%, while net Stage 3 assets rose two basis points to 0.9%. The rise in early-stage delinquencies comes as the lender continues to expand its home loan and loan-against-property portfolios.

Stage 2 assets rose 29 bps sequentially to 3.6%, while gross and net Stage 3 assets increased to 1.35% and 0.9%, respectively. Credit costs declined to 30 bps from 41 bps in the previous quarter but remained above the company's FY27 guidance of around 25 bps. Non-home loans accounted for 26% of disbursements in Q2, up from 24% in Q1; the lender targets 28% by Q4FY27 and a 70:30 home-to-non-home AUM mix by FY28. Aadhar Housing Finance expects 20% AUM and profit growth in FY27 and aims to bring gross Stage 3 assets down to 1.10-1.15% by year-end.

6% in the September quarter. 9%. The rise in early-stage delinquencies comes as the lender continues to expand its home loan and loan-against-property portfolios. Credit costs , however, declined sequentially to around 30 basis points from 41 basis points in the previous quarter, but remained above the company's FY27 guidance of around 25 basis points. The credit cost was also six basis points higher than the estimate of JM Financial, according to the brokerage's report.



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