Chennai-based Repco Home Finance is looking to bring down gross non-performing assets (NPAs) to two percent by FY19, after the company reported tepid loan growth and weak profit and loss performance in the first quarter.

In an interview to CNBC-TV18, R Varadarajan, managing director, said, "The year-on-year loan growth of 11-12 percent was because of prepayments, which peaked at about 20 percent. But going forward, expect growth of 18-20 percent. The sanctions in the quarter grew by 22 percent and disbursement grew by 28 percent."

Varadarajan said, "Repco Home Finance is expected to expand in coming quarters. The average margins would remain between 4-4.5 percent."

"The share of loan against property segment of the overall loan book would settle down around 18 percent. It was around 20 percent earlier," Varadarajan said.