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Mr Kapil Wadhawan, Vice-Chairman and Managing Director

Moumita Bakshi Chatterjee

New Delhi, Nov. 16 Dewan Housing Finance Corporation (DHFL) has said it is targeting fresh loan disbursement of about Rs 1,000 crore in the next five months, taking the overall disbursements during the financial year to over about Rs 2,000 crore.

“We have disbursed nearly Rs 980 crore so far this year, and in the next five months our aim is to disburse another Rs 1,000 crore. Our total loan disbursement stood at Rs 1,761 crore in 2007-08, and we expect a 20 per cent growth this fiscal,” Mr Kapil Wadhawan, Vice-Chairman and Managing Director, DHFL, told Business Line.

He said the company continues to see sustained demand from low and middle income segments. “Those buying property to live in them will continue to push up demand, irrespective of the interest rates and the overall economic sentiments,” Mr Wadhawan said adding that DHFL’s average loan size was pegged at Rs 5.5-6 lakh.

“Over 60 per cent of our loans are disbursed to the low and middle income segments and they are reflected in our NPAs, which at one per cent is amongst the lowest in the industry,” he added. As on September 2008, the total assets of DHFL stood at just over Rs 5,022 crore.

Commenting on the fund raising plans, Mr Wadhawan said that while DHFL had raised Rs 1,000 crore so far, it was looking at raising an additional Rs 1,000 crore for the remaining part of the year. “Of this, nearly Rs 700 crore will be raised as fresh borrowing from banks,” he said.

At present, DHFL sources funding primarily from banks as term loans, re-finance from National Housing Bank, public deposits, and redeemable preference shares and non convertible debentures (NCDs).

According to the company’s latest annual report, in 2007-08, fresh term loans of Rs 1,257 crore were availed of from various banks and financial institutions, taking the total term loan outstanding to Rs 3,161 crore.

These loans were drawn at varying spreads below the prime lending rates of the banks, Mr Wadhawan pointed out.

The company had also availed itself of refinance facility of Rs 45 crore in FY08. On March 2008, the refinance outstanding from NHB amounted to Rs 290 crore. DHFL also issued secured, redeemable and NCDs of Rs 175 crore through private placement with institutional investors and mutual funds. In addition, it mobilised Rs 18.9 crore by way of fixed deposits from the public.

More Stories on : Housing Finance | Real Estate & Construction

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