Indiabulls Housing Finance Q4 PAT jumps 11% at Rs 307 cr

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Mortgage financier Indiabulls Housing Finance Company reported an 11.23 per cent rise in profit after tax (PAT) to Rs 307 crore for the fourth quarter ended March 2022 on lower credit cost and higher profit from its co-lending business.

The company had posted a profit after tax of Rs 276 crore in the year-ago quarter.

”The profit grew on the back of lower credit cost and higher profit from co-lending business and securitisation,” its deputy managing director Ashwini Kumar Hooda said.

The home loan financier said it disbursed Rs 2,962 crore in H2 FY22 through co-lending. It has also committed co-lending demand for Rs 15,000 crore in FY23 from seven existing partnerships. The company is on track to disburse Rs 15,000 crore in FY23 and Rs 20,000 crore in FY24, according to a release said.

Its loan book declined by 10 per cent to Rs 59,333 crore in the fourth quarter of FY22 from Rs 66,047 crore in the year-ago period. The company’s gross non-performing assets (GNPAs) stood at 3.21 per cent in Q4 FY22 against 2.86 per cent a year ago. Net NPA was at 1.89 per cent compared to 1.55 per cent.

Hooda said major stress was from the corporate lending book.

Capital adequacy stood at 32.6 per cent and tier 1 at 27.2 per cent.

Its incremental cost of borrowing eased to 7.85 per cent from 8.34 per cent.

The company plans to borrow Rs 25,000 crore in the current financial year, Hooda said.

It has voluntarily created a reserve fund for repayment of USD 350 million of its dollar bonds, due on May 28, 2022. As against the initial plan to transfer Rs 2,048 crore, about 75 per cent of the total maturity proceeds of these bonds, to a debt repayment trust, the company has fully pre-funded its dollar bond obligations into the trust.

It has instructed the repayment trustee and banks to utilise the proceeds of the pre-funded fixed deposits towards fully meeting the repayment obligations, the release said.

The mortgage financier said it has progressed towards its plan of setting up Alternate Investment Fund (AIF) platforms to recommence disbursing new wholesale loans. It has received approval for one such AIF fund from the Securities and Exchange Board of India (Sebi) in partnership with a leading global alternative investment firm. The fund will be launched in H1 FY23.

A second AIF fund, in partnership with another global alternative investment firm, is in the process of getting approval from Sebi. ”We expect the approval to be received by the end of May 22 and aim to start disbursing through this fund from Q2 FY23 onwards,” the company said, adding that it will also establish a third AIF fund, for which it will file paper with Sebi in Q1 FY23.

Shares of the company closed at Rs 120.20 apiece, up 3.48 per cent on BSE.

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