Dewan Housing Finance Corporation Ltd plans to raise about Rs 1,000 crore before end-2011 or in the fourth quarter of this fiscal.

“We are looking to raise capital of Rs 750 crore to Rs 1,000 crore before this year end or the fourth quarter of this fiscal. This would help us augment further expansion and continue credit growth,” Mr Anil Sachidanand, CEO, DHFC, told Business Line . The company is yet to finalise on the instrument.

DHFC has seen about 50 per cent for the past 12-14 quarters, and given the current scenario, he said a 30-35 per cent growth in credit was expected this year.

Main segments

The company's lending portfolio stands at Rs 24,000 crore across 2.69 lakh customers. About 93 per cent of their lending is to retail customers with an average ticket size of Rs 7-8 lakh. “We largely concentrate on the lower- and mid-income segment, with a monthly income of Rs 4,000-20,000,” he said.

Default percentages among customers were less, said Mr Sachidanand, pointing out that its gross NPAs stood at 0.53 per cent, while net NPAs were at 0.24 per cent.

The company acquired Deutsche Postbank Home Finance for Rs 1,079 crore in March this year. Mr Sachidanand pointed out the company was currently consolidating First Blue Home Finance (formerly known as Deutsche Postbank). “We are working to maintain growth ratio of First Blue,” he said, adding that the company was not looking at inorganic growth for now.

According to him, it is a consolidation phase for housing finance companies, and specialised HFCs would continue to play a dominant role in the housing finance space.

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