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Indiabulls Housing looks to halve wholesale book by December 2022

Indiabulls reported a consolidated net profit of  ₹329 crore in the three months to December, down 39.7% on the back of lower incomePremium
Indiabulls reported a consolidated net profit of 329 crore in the three months to December, down 39.7% on the back of lower income

  • The company said in a statement that it will gradually reduce its wholesale book by 33% by March 2022
  • According to the company, it is also planning to double the retail customer base by March 2025 and said that retail loan disbursals have picked up on the back of rising sale house sales

Non-bank financier Indiabulls Housing Finance Ltd on Friday said it plans to halve its wholesale loan book by December 2022 even as it targets higher customer acquisition in the retail segment.

The company said in a statement that it will gradually reduce its wholesale book by 33% by March 2022. “We continue to de-risk our developer loan book through refinance and securitization of loans. We continue to see strong traction in developer loan refinance and are in talks with multiple financial institutions for sell down of this book," the statement said.

On developer loans sourcing, the lender said, it is in talks with two large real estate-focused funds to set-up an investment platform. As of 31 December, 65% of its asset book comprised of housing loans and its total loan book stood at 70,282 crore.

“The talks have progressed well, and we expect to set up an investment platform by September 2021," it said.

According to the company, it is also planning to double the retail customer base by March 2025 and said that retail loan disbursals have picked up on the back of rising sale house sales. To that extent, Indiabulls Housing Finance said it wants to increase the size of its sales team to be able to do 1,500 crore of monthly retail loan disbursals by September 2021, and 2,000 crore per month by March 2022.

“Indiabulls Housing Finance’s disbursals have rebounded, with total disbursals in Q3 FY21 of 3,458 crore, of which retail loan disbursals constituted 75%," the statement said.

The lender reported a consolidated net profit of 329 crore in the three months to December, down 39.7% on the back of lower income.

Its gross non-performing assets (NPAs) stood at 1.75% of gross advances. However, had it not been for the Supreme Court’s dispensation on asset classification, gross bad loan ratio would have reached 2.44% as on 31 December. That apart, the company also said it has restructured 0.95% of its loan assets and its collection efficiency has now reached around 98%.

ABOUT THE AUTHOR

Shayan Ghosh

Shayan Ghosh is a national writer at Mint reporting on traditional banks and shadow banks. He has over a decade of experience in financial journalism. Based in Mint’s Mumbai bureau since 2018, he tracks interest rate movements and its impact on companies and the broader economy. His interests also include the distressed debt market, especially as India’s bankruptcy law attempts recoveries of billions worth of toxic assets.
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