Money & Banking

Indiabulls Housing Finance Q3 net profit down 40%

Our Bureau. Mumbai | Updated on February 12, 2021

Shares of Indiabulls Housing Finance plunged over 16 per cent on Monday after the company said it had an exposure of Rs. 662 crore in the form of bonds to YES Bank. The NBFC’s stock closed at Rs. 213.55, on the BSE

To raise ₹5,000 crore through NCDs

Indiabulls Housing Finance reported a 40.3 per cent drop in consolidated net profit for the third quarter of the fiscal at ₹329.32 crore. It had reported a net profit of ₹551.7 crore in the corresponding period last fiscal.

“The board, at its meeting, has also authorised to issue Secured Redeemable Non-Convertible Debentures and Unsecured Redeemable Non-Convertible Subordinate Debt in the nature of Debentures (NCDs) of up to ₹5,000 Crore, on private placement basis, in one or more tranches, from time to time,” it said in a regulatory filing on Friday.

For the quarter ended December 31, 2020, Indiabulls Housing Finance registered a 25.4 per cent dip in total revenue from operations to ₹2,513.25 crore versus ₹3,369.16 crore a year ago.

“On balance sheet loan book stands at ₹70,282 crore on account of developer book run off through refinancing. Retail loan book has grown,” the company said in a statement.

Gross non-performing assets remained moderate at 1.75 per cent as on December 31, 2020, as against 1.98 per cent at the end of the second quarter this fiscal.

“Without the Supreme Court’s dispensation, Proforma Gross NPAs would be 2.44 per cent, compared with 2.21 per cent as on September 30, 2020,” the company said, adding that proforma gross NPA provision coverage ratio stands at 40 per cent.

Indiabulls Housing Finance said access to funding has normalised and its funding costs have moderated with cost of funds on book down to 8.5 per cent.

Disbursals have rebounded, with total disbursals in the third quarter of the fiscal at ₹3,458 crore, of which, retail loan disbursals constituted 75 per cent.

“The company is also seeing good traction in loan co-lending, with disbursals reaching a monthly run rate of ₹200 crore in January,” it further said.

On developer loans sourcing, Indiabulls Housing Finance said it is in talks with two large real estate-focussed funds to set up an investment platform.

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Published on February 12, 2021
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