Mumbai: In a bid to assuage market concern on the prevailing liquidity crunch in the non-bank sector, Indiabulls Housing Finance said it held cash and cash equivalents of ₹28,150 crore as on 31 May.
In a filing to the stock exchanges, the housing finance company (HFC) said that of its total cash and cash equivalents, the largest chunk of ₹11,627 crore was in the form of mutual fund investments. Certificates of deposit of banks comprised of ₹9,209 crore, fixed deposits stood at ₹3,183 crore, and liquid quasi-sovereign bonds at ₹2,840 crore, among others.
It also said while its international rating by Moody’s stood at Ba1, its long-term and short-term ratings were at AAA and A1+ by other credit rating agencies, respectively.
On 10 April, credit rating agency CRISIL had placed its rating on the long-term debt instruments and bank facilities of Indiabulls Housing Finance on 'rating watch with developing implications'. The rating on commercial paper (CP) issue and the short-term debt programme were reaffirmed at A1+.
“The rating action follows the announcement by Indiabulls Housing Finance of a scheme of amalgamation of Lakshmi Vilas Bank (LVB) with itself. The scheme will be subject to shareholder, regulatory and other approvals," CRISIL had said.
It had said clarity was yet to emerge over the nature of regulatory approval for such a merger, given that it is a first-of-its-kind wherein a large housing finance company has proposed to merge with a a relatively smaller bank.