Indiabulls Housing Finance Q3 profit rises 55%
Net profit of Indiabulls Housing Finance rose to Rs1,168 crore in the quarter ended 31 December from Rs751.5 crore a year ago
Mumbai: Indiabulls Housing Finance Ltd (IBHFL) on Tuesday said fiscal-third quarter profit rose 55% from a year earlier because of a one-time gain from the sale of its investment in OakNorth Bank and strong growth in revenue.
Net profit rose to Rs1,168 crore in the quarter ended 31 December from Rs751.5 crore a year ago.
IBHFL sold its 10% stake in OakNorth Bank, a US-based bank, for Rs238 crore in November 2017. The home financier reported a 36.7% growth in revenue to Rs4,105.7 crore from Rs3,004.5 crore a year ago.
“We are now at a customer base looking beyond the top 20 cities. Our objective in the coming years will be to increase the revenue share from the non-top 20 cities to 50% by fiscal 2020 from 30% at present,” said Ashwini Kumar Hooda, deputy managing director at Indiabulls Housing Finance.
Hooda also said that the company will be using its “technology platform” to digitally sanction loans, allowing it to increase revenue from tier-2 and tier-3 cities. “The digital platform will allow us to cut costs. We are already disbursing around 25% of new loans through the platform and expect the number to go up to 40% in the next fiscal. Builders in particular prefer customers using our digital platform as they are able to receive the money within a short duration,” Hooda said.
Gross non-performing assets ratio improved to 0.77% from 0.85% during the reporting period, the lowest in 21 quarters, IBHFL said in a press release. Its total loan book stood at Rs 107,328 crore, an increase of 32% from Rs 81,422 crore in the year earlier.
In January, IBHFL informed the exchanges that it has received board approval to raise up to $1.5 billion. “We will be raising $750 million through masala bonds depending on the interest rate scenario. The balance $750 million will be raised through external commercial borrowings, subject to approval from the Reserve Bank of India,” Hooda said.