25, Nov 2024
The Nuclear Family – Housing India’s Millennials
By Akash Pharande, Managing Director – Pharande Spaces
Young, dual-income nuclear families and single professionals just beginning their careers are the driving forces of urban India today. In 2022, nearly half of Indian households consisted of 1 to 4 members, marking a significant rise in nuclear families from just 37% in 2008. By 2024, it is likely that this proportion has surpassed the 50% threshold, with smaller family units dominating the demographic landscape.
The transition from joint families to nuclear ones signals a profound cultural shift. While joint families once offered financial predictability, elderly care, and shared responsibilities, modern nuclear families prioritize independence, personal growth, and global aspirations. This shift is reshaping India’s urban housing market.
The Evolution of the Indian Nuclear Family
What drives the rise of nuclear families?
Financial Independence: Youth today seek autonomy over their finances, aligning with modern lifestyles.
Freedom of Choice: Young couples prefer making life decisions without traditionalist interference, particularly when family elders control resources. While these families remain respectful of elder care, their close bonds with previous generations have loosened. They aim for growth without constraints, focusing on career advancement, family investment, and quality of life.
Modern Parenting: Parents wish to raise their children with contemporary values, often focusing on creating global citizens.
The Millennial Dream Home
For the millennial nuclear family, the definition of an ideal home has evolved. Here’s what they prioritize:
Space for Growth – Homes need to accommodate expanding families. A survey by Anarock found that 51% of homebuyers preferred 3BHK units over smaller 2BHKs, despite rising property prices.
Sustainability – with 84% of Indians aware of global warming (Yale Program on Climate Change Communication, 2022), eco-friendly homes are now in demand. Features like energy-efficient designs and green certifications are becoming essential.
Safety and Security – Rising urban crime rates drive families toward gated communities and integrated townships with robust security measures.
Technological Integration – Smart homes are gaining traction, with the Indian smart home market expected to reach $6.5 billion by 2024. However, it’s not just about gadgets—it’s about creating smarter living environments.
Smarter Housing for Smarter Families
For today’s nuclear families, housing is not just about a home; it’s about the lifestyle it supports. This has led to increased demand for integrated townships—self-sustaining communities offering residential, retail, healthcare, and entertainment facilities within a single complex.
Why Integrated Townships?
Lifestyle Solutions: These townships offer “walk-to-work” convenience, on-site amenities, and pollution-free environments, reducing reliance on crowded urban hubs.
Complete Ecosystems: They blend residential and commercial spaces, catering to the all-in-one lifestyle nuclear families seek.
Enhanced Connectivity: With expanding metro networks, suburban areas housing these townships are now more accessible and affordable.
Challenges in Meeting Demand
Despite their appeal, integrated townships remain niche offerings due to the following challenges:
Land Availability: Securing large, cohesive parcels of land is a daunting task for most developers.
Expertise: Designing a township requires proficiency in integrating diverse real estate segments like hospitals, malls, and housing.
Capital Intensive: Building such ecosystems demands substantial investment throughout the development lifecycle.
As nuclear families reshape India’s urban housing market, the demand for sustainable, secure, and smart homes continues to rise. Integrated townships represent the future of housing, offering holistic solutions tailored to the aspirations of modern families. However, with limited supply and high barriers to entry, the race to meet this demand will define the next phase of India’s real estate evolution.
About the Author:
Akash Pharande is Managing Director – Pharande Spaces, a leading real estate construction and development firm famous for its township projects in Greater Pune and beyond. Pharande Promoters & Builders, the flagship company of Pharande Spaces and an ISO 9001-2000 certified company, is a pioneer of townships in the region. With the recent inclusion of Puneville Commercial into one of its most iconic townships, Pharande Spaces has taken a major step towards addressing Pune’s current and future requirements for fully integrated residential-commercial convenience.
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- By Rabindra
25, Jan 2024
Ugro Capital Announces Financial Results
Mumbai, January 25, 2024: U GRO Capital, a DataTech NBFC and India’s largest Co-lender in the MSME segment, today announced its robust financial performance for the Quarter and Nine-month Period ended 31st December 2023, marking a historic achievement as the company enters the prestigious Billion Dollar AUM Club.
Brief Financial Snapshot
The Company continued its growth momentum in the third quarter of FY24 with AUM of INR 8,364 Cr (as on Dec’23), up 64% compared to Dec’22. This surge can be attributed to its strategic investments in distribution channels, expansive lender base, and a data-centric underwriting model, which together ensure consistent monthly disbursals of over INR 500 Cr.
Financially, U GRO Capital highlighted a Total Income of 751.3 for 9M’24 (up 61% compared to 9M’23), while the figure stood at INR 279.3 Cr for Q3’24, up 47% YoY and 10% QoQ. Furthermore, the PAT for 9M’24 scaled up to INR 86.7 Cr, up 237% YoY and was INR 32.5 Cr for Q3’24, indicating an increase of 148% YoY and 13% QoQ. The robust quarterly performance, alongside the optimal GNPA/NNPA metrics of 2.0%/1.1% on the total AUM, reiterates the sterling quality of UGRO’s portfolio, underscoring a well-structured risk management approach.
U GRO Capital’s distinctive co-lending approach combined with the strategic use of co-lending partnerships with off-book AUM accounting for 45% has significantly propelled this growth trajectory. Further solidifying its reputation in the sector, U GRO Capital’s proprietary underwriting model, GRO Score 3.0, has demonstrated its efficacy. This strategic model, along with collaborations with over 10 co-lending partners, 55 lenders, 40 fintechs, and 500 GRO partners, facilitates data-driven, tailored financial solutions for more than 67,000 MSMEs across India.
Mr. Shachindra Nath, Founder and Managing Director of U GRO Capital said, “At U GRO Capital, our journey is defined by continuous innovation, dedicated to reshaping financial sector standards. Today, we proudly announce surpassing INR 8300 crores in AUM, entering the Billion Dollar AUM Club. This accomplishment reflects our unwavering commitment to innovation and delivering unmatched financial solutions. Committed to boosting India’s economic growth, we aspire to build a significant institution for small business financing. With ambitious FY24 goals, we are strategically poised to achieve them through innovative strategies, collaborations, and a steadfast commitment to sustainable entrepreneurship. U GRO Capital offers an attractive opportunity for investors seeking enduring growth and robust returns.”
Key performance highlights for Q3’ and 9M’FY24
Growth, Expansion and Portfolio quality
- AUM of INR 8,364 Cr as on Dec’23 (up 64% YoY and 10% QoQ)
- INR 1,552 Cr of Net Loans originated in Q3’FY24 (up 33% YoY and 5% QoQ) and INR 4,311 Cr of Net Loans originated in 9M’FY24 (up 35% compared to 9M’FY23).
- Total Income stood at INR 279.3 Cr for Q3’FY24 (up 47% YoY and 10% QoQ) and INR 751.3 Cr in 9M’FY24 (up 61% compared to 9M’FY23)
- Net Total Income stood at INR 162.6 Cr for Q3’FY24 (up 51% YoY and 10% QoQ) and INR 436.5 Cr in 9M’FY24 (up 66% compared to 9M’FY23)
- PBT increased to INR 46.4 Cr in Q3’FY24 (up 109% YoY and 14% QoQ) and INR 122.8 Cr in 9M’FY24 (up 145% compared to 9M’FY23)
- PAT increased to INR 32.5 Cr in Q3’FY24 (up 148% YoY and 13% QoQ) and INR 86.7 Cr in 9M’FY24 (up 237% compared to 9M’FY23)
- GNPA / NNPA as on Dec’23 stood at 2.0% /1.1% (as a % of Total AUM)
- Over 67k customers as on Dec’23
- 104 branches (as on Dec’23)
Liability and Liquidity Position
- Total lender count stood at 58 as on Dec’23
- Total Debt stood at INR 4,173 Cr as on Dec’23, and overall debt-to-equity ratio was 3.0x
- Healthy capital position with CRAR of 22.3% (as on Dec’23)
23, Jan 2024
Karur Vysya Bank Q3 results for FY 2023-24
JANUARY 23, 2024:
Karur Vysya Bank (‘the Bank’) announced its financial results for the Quarter / Nine months ended December 31, 2023 today. The Bank continues its healthy performance in terms of business growth, profitability as well as asset quality.
BALANCE SHEET:
Balance sheet size as of December 31, 2023 was ₹ 1,02,868 crore as against ₹ 89,013 crore as of December 31, 2022, a growth of 15.56%.
Total business as on 31 st December 2023 stands at ₹ 1,58,357crore, registering a Y-o-Y growth of 14.74% i.e. up by ₹ 20,344 crore from ₹ 1,38,013 crore as on 31.12.2022.
Total deposits as on 31 st December 2023 stands at ₹ 85,665 crore, registering a Y-o-Y growth of 12.82% i.e. up by ₹ 9,733 crore from ₹ 75,932 crore as on 31.12.2022.
Total advances as on 31 st December 2023 stands at ₹ 72,692 crore, registering a Y-o-Y growth of 17.09% i.e. up by ₹ 10,611 crore from ₹ 62,081 crore as on 31.12.2022.
FINANCIAL PERFORMANCE – 9M FY 2024:
Net profit for the nine months registered a robust growth of 49.61% and stood at ₹ 1,149 crore from ₹ 768 crore during corresponding nine months of the previous year.
PPOP for the nine months increased by 12.95% is at ₹ 1,962 crore, as compared to ₹ 1,737 crore for corresponding nine months of the previous year.
Net interest income increased by 14.54% to ₹ 2,813 crore vis-à-vis ₹ 2,456 crore for corresponding nine months of the previous year.
Net interest margin stands at 4.20% up by 9 bps as compared to 4.11% for the corresponding nine months of the previous year.
Cost of deposits has increased by 98 bps and stands at 5.13% as compared to 4.15% for the corresponding nine months of the previous year.
Yield on advances grew to 9.88% by 116 bps as compared to 8.72% for the corresponding nine months of the previous year.
Commission and fee based income has improved by 14.84% on Y-o-Y basis to ₹ 627 crore from ₹ 545 crore for corresponding nine months of the previous year.
Operating expenses for the nine months was ₹ 1,881 crore as compared to ₹ 1,477 crore during the corresponding nine months of the previous year.
Cost to income ratio stands at 48.95% (45.97% for 9M of previous year).
CAPITAL ADEQUACY:
Capital Adequacy Ratio (CRAR) as per Basel III guidelines was at 15.39% as on December 31, 2023 (17.62% as on December 31, 2022) as against a regulatory requirement of 11.50%. Tier 1 was at 13.87% as of December 31, 2023 compared to 15.79% as of December 31, 2022. Risk- weighted Assets were at ₹ 59,531 crore as on December 31, 2023 (₹ 46,243 crore as at
December 31, 2022).
ASSET QUALITY:
Gross non-performing assets (GNPA) has improved by 112 bps and stands at 1.58% of gross advances as on December 31, 2023 (₹ 1,152 crore) vis a vis 2.70% as on December 31, 2022 (₹ 1,674 crore).
Net non-performing assets (NNPA) is below 1% and stands at 0.42% of net advances as on December 31, 2023 (₹ 305 crore), against 0.90% as on December 31, 2022 (₹ 550 crore).
Provision Coverage Ratio (PCR) was at 94.81% as at December 31, 2023, as against 90.87% as at December 31, 2022.
NETWORK:
As of December 31, 2023, the Bank’s distribution network stands at 831 branches and 1 Digital Banking Unit, and 2,251 ATMs / Cash Recyclers as against 792 branches and 2,233 ATMs / Cash Recyclers as of December 31, 2022. 56% of our branches are in semi-urban and rural areas. In addition, we have 150 business correspondents.
FINANCIAL PERFORMANCE – Q3 FY 2024 vs. Q3 FY2023:
Net profit for the quarter registered a robust growth of 42.56% and stood at ₹ 412 crore from ₹ 289 crore during corresponding quarter of previous year.
PPOP for the quarter marginally came down by 1.89% is at ₹ 676 crore, as compared to ₹ 689 crore for corresponding quarter of the previous year.
Net interest income increased by 12.60% to ₹ 1,001 crore vis-à-vis ₹ 889 crore for corresponding quarter of previous year.
Net interest margin stands at 4.32% as compared to 4.36 % for the corresponding quarter of the previous year.
Cost of deposits has increased by 99 bps and stands at 5.25% as compared to 4.26% for the corresponding quarter of previous year.
Yield on advances grew by 102 bps to 10.16% as compared to 9.14% for the corresponding quarter of the previous year.
Commission and fee-based income has improved by 22.16% on a Y-o-Y basis to ₹ 226 crore from ₹ 185 crore for corresponding quarter of the previous year.
Operating expenses for the quarter was ₹ 683 crore as compared to ₹ 518 crore during the corresponding quarter of previous year.
Cost to income ratio stands at 50.27% (42.90% for Q3 of previous year).
Quote:
Mr. Ramesh Babu B, Managing Director & CEO, The Karur Vysya Bank said, “We have been able to continue to demonstrate our consistent performance in terms of Growth, Profitability and Asset Quality for the third quarter ended 31st December 2023. Our total business crossed ₹ 1,58,357 cr. The inclusive growth from all the business segments has helped us to reach net profit of ₹ 1,149 cr for the nine months and ₹412 cr for the quarter.
Besides numbers, the qualitative changes that we have brought in gives us the confidence of sustained improvement in our performance in the days to come.
We are always mindful of the trust, faith and confidence that our customers and our investors have reposed on us. The momentum would be carried for the exit quarter of this fiscal.
