Money & Banking

Indiabulls Housing Finance profit falls to ₹273 crore

Our Bureau. Mumbai | Updated on August 21, 2020

Indiabulls Housing Finance’s consolidated net profit for the first quarter of the fiscal dipped by 65.9 per cent to ₹272.84 crore against ₹801.53 crore a year ago.

However, it was almost double the net profit of ₹137.06 crore in the fourth quarter of last fiscal.

With a sharp drop in interest income, its total income slid to ₹2,578.23 crore in the April to June 2020 quarter from ₹3,886.12 crore a year ago.

“On balance sheet loan book stands at ₹73,129 crore. Phase of reduction in loan book and asset under management is over, and the loan book will start growing from here on as per the company’s business plan that blends co-origination with banks for retail loans and with funds for developer loans as two important pillars going forward,” it said in a statement on Friday.

It plans to grow its balance sheet by about seven per cent to eight per cent this fiscal and also grow its AUM by nearly 12 per cent this fiscal.

Gross NPAs have remained moderate at 2.20 per cent in the quarter ended June 30, 2020, it further said.

It also plans to raise a total of ₹28,000 crore through a mix of long-term borrowings, retail portfolio sell down, and developer loan refinance and securitisation this fiscal. “Accounting for scheduled and planned borrowing pre-payments, this will help the company generate as much as ₹12,000 crore of growth capital,” it further said.

It has also executed an agreement for co-origination with a mid-sized private sector bank for LAP and MSME loans. Active sourcing of loans will begin from September 1.

Published on August 21, 2020

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