Crisil Ratings reaffirms ratings of GIC Housing Finance at 'AA+/A1+' with 'stable' outlook

Crisil Ratings stated that ratings continue to reflect the strong support expected from the promoter-shareholder General Insurance Corporation of India Re (GIC Re), and the company's adequate capitalisation.

These strengths are partially offset by modest asset quality and a moderate scale of operations.

The company's net advances stood at Rs 10,212 crore as on 31 March 2025, higher than Rs 9,985 crore. The company's asset quality has improved as reflected by gross non-performing assets (NPAs) declining to 3.03% as on 31 March 2025, from 3.88% as on 31 March 2024 (4.68% as on March 31, 2023).

This improvement was driven by implementation of new risk management processes. In terms of profitability, the company reported a return on assets (RoA) of 1.51% for fiscal 2025, which improved from 1.41% in fiscal 2024.

GIC Housing Finance provides individual housing loans to the upper middle, middle and low-income groups in Tier-II and Tier-III cities. The portfolio mix consisted of 92% housing loans and 8% LAP, while the borrower profile comprised of 80% salaried customers and 20% non-salaried customers, as on 31 March 2025. The company has a network of 72 Offices (including Corporate Office), 3 Hubs and 5 Satellite offices) as on 31 March 2025, most of which are concentrated in Maharashtra.

The company's consolidated net profit declined 34.41% to Rs 35.20 crore even as revenues rose by 4.17% to Rs 268.33 crore in Q4 FY25 as compared with Q4 FY24.

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