Repco pushes ₹25,000 cr AUM goal to FY29, cites prepayment drag
The lender's loan book grew 9.6%, but not fast enough. It secured a ₹600 cr NHB line to trim funding costs.
— 2 earlier stories on Repco Home Finance Ltd. →What's new
- Repco delayed its ₹25,000 crore AUM target from FY28 to FY29.
- Management cited elevated prepayments and a competitive market as the reason.
- The company secured a ₹600 crore NHB refinance facility to cut its cost of funds by 10-15 bps.
Why this matters
A one-year slip on a two-year-old target is a direct admission that loan growth is harder than planned. The new refinance helps margins, but it doesn't solve the core problem: prepayments are eroding the book faster than new lending can rebuild it.
What we're watching
- FY27 disbursement growth to see if prepayment pressure eases.
- The actual cost-of-funds benefit once the NHB facility is fully drawn.
- Whether the record 75% dividend is sustainable if growth stays muted.
The full read
Repco Home Finance delivered record disbursements of ₹4,148 crore in FY26. But the headline from its earnings call was a delay. The company pushed its ₹25,000 crore AUM target from FY28 to FY29, a full-year slip. Management blamed elevated prepayments and a tougher market. The loan book grew 9.6% to ₹15,880 crore. That wasn't fast enough. To help margins, Repco locked in a ₹600 crore refinance line from the National Housing Bank, which should shave 10-15 bps off its funding cost. The company also declared a record 75% dividend for the year. The refinance is a useful fix. But it doesn't change the fact that growth has underperformed the company's own forecast.
Questions answered
- Why did Repco delay its AUM target?
- Management cited two headwinds: higher-than-expected prepayments on existing loans and increased competition in the housing finance market. Both slowed the pace of net loan-book growth needed to hit the original FY28 goal.
- What is the new NHB refinance facility?
- The National Housing Bank sanctioned a ₹600 crore refinance line for Repco. The company expects this to reduce its overall cost of funds by 10-15 basis points.
- How did the loan book grow?
- The loan book expanded 9.6% year-on-year to ₹15,880 crore. While positive, this pace apparently fell short of the trajectory required for the original FY28 AUM target.
- What was the dividend decision?
- The board proposed a 30% final dividend, bringing the full-year payout to a record 75% of face value.
Repco Home Finance Ltd.
Latest quarter · Mar 2026
Leverage & growth
Story so far
All notes on REPCOHOME →- 26 May 2026 · 5:14 PM IST Repco pushes ₹25,000 cr AUM goal to FY29, cites prepayment drag
- 45d ago Repco Home Finance delays its ₹25,000 cr AUM goal by one year
- 46d ago Repco Home Finance profit flat as loan book hits ₹15,880 crore