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Indiabulls Housing Finance to raise Rs 5,000 crore via securitisation route this quarter

BusinessToday.In     February 14, 2021

Indiabulls Housing Finance is planning to raise Rs 5,000 crore through the securitisation route in the fourth quarter of FY21, the company's senior official said.

"Our securitisation pipeline is strong. We should be able to raise almost Rs 3,000 crore from the wholesale book and another Rs 2,000 crore from the retail in this (Q4 FY21) quarter," the company's Deputy Managing Director Ashwini Kumar Hooda told PTI news agency.

In the previous quarter, the mortgage lender raised around Rs 2,000 crore via securitisation route only.

Securitisation is the process of pooling and repackaging homogenous illiquid financial assets into marketable securities that can be sold to investors.

Securitisation constitutes 25 per cent of the non-bank financier's overall borrowing and on average, it raises around Rs 2,500 crore per quarter through the route.

In the current financial year, Indiabulls Housing Finance raised a total of Rs 28,119 crore through equity, bank lines, bonds and loan sell-downs.

On disbursements, Hooda said that in the third quarter of FY21, fresh disbursements stood at Rs 3,458 crore of which retail loan disbursals constituted 75 per cent. He said that in the fourth quarter of the current fiscal year, the company is expecting disbursement up to Rs 4,500-5,000 crore.

The company is also seeing good traction in loan co-lending and expects active sourcing to begin next quarter with three other co-lending tie-ups that are into the final stages of integration.

"We expect the monthly disbursal run rate through co-lending to reach Rs 1,500 crore by September 2021," he said. Further, the company said it continues to de-risk developer loan book through refinance and securitisation of loans.

"We continue to see strong traction in developer loan refinance and are in talks with multiple financial institutions for a sell-down of this book. We expect to reduce our wholesale book by 33 per cent by March 2022 and by 50 per cent by December 2022," it said.

On developer loans sourcing, the company said it is in talks with two large real estate-focused funds to set up an investment platform. The talks have progressed well, and it expects to set up an investment platform by September 2021.

In Q3 FY21, IBHF reported a 40.4 per cent dip in its consolidated profit after tax at Rs 329 crore due to higher provisioning. It had registered a profit after tax of Rs 552 crore in the same quarter in 2019. Company's gross non-performing assets (NPAs) stood at 1.75 per cent and net NPAs at 0.77 per cent in the third quarter.

(With PTI inputs)

Also read: Post-budget cheer: Overseas investors pump in over Rs 22,000 crore in February so far

Also read: Govt to infuse Rs 3,000 crore capital in PSU general insurers this quarter

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