Religare Housing Development Finance Corporation Limited (RHDFCL) Rating Upgraded to BBB-

A Significant Milestone

The elevation to [ICRA]BBB- rating marks a pivotal moment in RHDFCLs journey. This upgrade primarily reflects favourable developments at the Religare group level, including the classification of the Burman Group (promoter family of Dabur India Limited) as promoters of Religare Enterprises Limited and the steps being taken for strengthening of RELs board composition, which collectively enhance the credit profile of the group.

Strong Financial Foundation

RHDFCL maintains an adequate capitalization profile with a net worth of Rs. 208 crores and a managed gearing of 0.3 times as of December 31, 2024. The companys asset quality has shown an encouraging trajectory, with gross stage 3 assets declining to Rs. 8.3 crore as on December 31, 2024, compared to Rs. 12.3 crore as on March 31, 2023.

"This rating upgrade represents a significant achievement for RHDFCL and reflects our commitment to maintaining robust financial health while positioning ourselves for sustainable growth in the affordable housing finance sector," said Rahul Mehrotra, Managing Director and Chief Executive Officer, RHDFCL.

Strategic Vision and Future Growth

With the abatement of concerns over group-related issues that had previously impacted performance, RHDFCL anticipates improved funding access and disbursement trajectory moving forward. The company continues to operate as a retail affordable housing loan financier with an average ticket size of approximately Rs. 11 lakhs, with home loans accounting for approximately 70% of its on-book portfolio as of December 31, 2024.

RHDFCL has also established co-lending partnerships to stimulate business volume growth, with meaningful traction expected in this area over the medium term. The company remains committed to serving the affordable housing segment while maintaining prudent risk management practices. "The improved rating will substantially enhance our access to bank lines and funding opportunities at more competitive rates, enabling us to expand our business reach, develop new market segments, and better serve customers in the affordable housing space. We are now well-positioned to capitalize on the growing demand in this sector and further strengthen our market presence," Rahul Mehrotra further added.

To access details of disclosure made to the stock exchanges by Religare Enterprises Limited on the announcement please visit the link:

religare.com/wp-content/uploads/2025/04/RELUPDATE25042025.pdf.

About Religare Housing Development Finance Corporation Limited (RHDFCL)

Religare Housing Development Finance Corporation Limited (RHDFCL) is a Housing Finance Company with a difference as it caters to the underserved, low-income and informal segments of the country. The informal sector remains underserved by the larger financial institutions due to its perceived high risk factor. This is where RHDFCL steps in with its offerings of home-purchase, home construction and home improvement loans, supported by a distinct and robust underwriting framework. Our loans cater primarily to individuals engaged in the informal sector across urban and semi-urban India and through our strongly differentiated service, we are determined to putting roofs over their heads and help secure their future.

About Religare Enterprises Limited

Religare Enterprises Limited (REL) is a diversified financial services group present across three verticals. REL offers an integrated suite of financial services through its underlying subsidiaries and operating entities, including loans to SMEs, Affordable Housing Finance, Health Insurance and Retail Broking. REL is listed on the BSE (formerly Bombay Stock Exchange) and National Stock Exchange (NSE) in India.

As a group, Religare caters to diverse segments of the market from mass retail to affluent, SMEs to mid-size corporates. Subsidiaries service over 1.1 million clients from over 1,275 locations having presence in more than 400 cities.