Can Fin Homes will be able to maintain the net interest margins (NIMs) of above 3 percent, said managing director and chief executive officer Girish Kousgi on Wednesday. The housing finance company recently reported its third-quarter (Q3) results.

“4.12 percent is definitely not maintainable. Over a period of maybe a year or year and a half, you will see this margin coming down, but we will be able to maintain more than 3 percent. Spread is now 2.91 percent; it will be upwards of 2.4 percent. So, we will be able to maintain 3 percent and 2.4 percent,” Kousgi said in an interview with CNBC-TV18.

Kousgi said that demand had come back and there were no challenges in terms of book growth or disbursement growth going forward.

“Demand is back. I don’t see any challenges either in terms of book growth or disbursement growth in the quarters to come. We believe that Q4 of this year onwards we will see healthy growth. On a steady-state, we should grow at about 17-18 percent on both disbursement and book.”

He said that the cost of funds currently stands at 5.5 percent, but it was coming down quarter-on-quarter (QoQ).

“Cost of funds is coming down QoQ. If you look at incremental cost, it is less than 6 percent, it is around 5.5 percent. Today we are competing with some of the biggest home finance companies (HFCs) and the biggest PSU and private banks. In terms of pricing, we are on par with most of the big banks and therefore this competition is not really impacting us per se as a company.”

Kousgi also said that they were looking at raising funds, but they will time it appropriately.

Watch the video for more

(Edited by : Ajay Vaishnav)