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Our Bureau

Kolkata , June 10

DEWAN Housing Finance Corporation Ltd (DHFL), the second largest housing finance company in the private sector, is looking for acquisitions with healthy portfolios in the eastern region.

According to Mr Kapil Wadhawan, Managing Director of DHFL, the company has been acquiring small portfolios over the last few months. However, its biggest acquisition was that of the housing finance business of ING Vysya Bank in July 2003.

About three months back, DHFL acquired the housing finance business of the Kolkata-based SMIFS Capital, which had an exposure of Rs 2 crore only.

"We are always open to acquisitions, be it big or small. However, there is hardly any good portfolio, with low NPA levels, left in the market. The market had consolidated a lot and I don't think there is any scope for further consolidation," Mr Wadhawan told reporters at a press conference.

During 2003-04, DHFL's total disbursals were Rs 470 crore and for the current financial year it has targeted Rs 1,000 crore of sanctions and Rs 850 crore of disbursals.

DHFL's total income in 2003-04 went up to Rs 147 crore from Rs 130 crore in 2002-03 and net profit to Rs 22 crore from Rs 19 crore. Its NPA level is below one per cent.

In the last fiscal, DHFL's average cost of finance had dropped to 8.2 per cent from 10.48 per cent and its net interest margin is 2.5 per cent. In the current fiscal, it hopes to raise Rs 1,000 crore of fund.

The company has already lined up a credit of $20 million from the Asian Development Bank.

DHFL is also interested in taking up an equity stake in the proposed mortgage insurance company, which is to be promoted jointly by National Housing Board, Canada Housing Mortgage Company, IFC Washington, Asian Development Bank and a subsidiary of the US-based AIG International.

Mr Wadhawan ruled any diversification of DHFL into personal finance. The company is has strong presence in the semi-urban and rural sector and hopes to build on it further.

On Thursday, DHFL opened its first office in Kolkata and has targeted Rs 50 crore of sanctions during 2004-05.

More Stories on : Housing Finance | Mergers & Acquisitions

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