Shares of Aavas Financiers debuted at Rs 746, a 9 percent discount to issue price of Rs 821. Sushil Agarwal, director and CEO, spoke to CNBC-TV18 about the company's business plans and outlook.

“The way we work, we want to have a conservative and consistent growth approach and we always work on 2.5 percent return on asset (RoA) and except one quarter, we have never gone below that 2.5 percent RoA. Right now, our RoA for last three quarters is 3 percent but in the near-term we are hopeful that we will be able to maintain the same 2.5 percent RoA, which is our business philosophy,” he said.

“We were able to maintain our spreads and the feel level, the capital coming in and the distribution channel which we have already created, we will be able to maintain these kind of spreads,” Agarwal added.

“If any cost of funds increases for us, we will be able to pass it on to customers. On July 31, we have already increased our lending rates by 25 bps and on the borrowing side, we took a very conservative approach, our average borrowings are for 11-year plus, our assets tenure is 8 years so we are the company which is five years ALM positive,” said Agarwal.

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First Published:Oct 8, 2018 12:47 PM IST