Indiabulls Housing Finance net at Rs 329 cr, aims to raise disbursements via co-lending

Indiabulls Housing Finance (IBH) on Friday reported a sequential increase of 2% in its net profit at Rs 329 crore despite higher provisions. However, the net profit fell 40% on a year-on-year (y-o-y) basis. The expected credit loss provisions jumped 79% quarter-on-quarter (q-o-q) and 61% y-o-y to Rs 846 crore. Its net interest income (NII) improved 8% sequentially to Rs 809 crore, but declined 18% on a y-o-y basis. The company aims to increase disbursements through co-lending partnerships.

Ashwini Kumar Hooda, deputy managing director (DMD), Indiabulls Housing Finance, said that retail disbursements have crossed Rs 2,500 crore this quarter. “We are in process of finalising three more co-origination partners and increase our disbursements further,” he said. The lender’s asset quality showed an improvement during the December quarter. Gross non-performing assets (NPAs) ratio improved 23 basis points (bps) to 1.75%, compared to 1.98% in the previous quarter. IBH has not classified any NPAs since August 31, 2020, due to the interim order of the Supreme Court. “On a proforma basis, gross NPAs stood at 2.44%” the lender said.

The company’s finance cost is down 17% y-o-y and 5% q-o-q to Rs 1,706 crore. Similarly, total expenses came down 25% y-o-y and 4% sequentially to Rs 2,077 crore. The lender said that access to funding has normalised. Since April 2020, IBH has raised total funding of Rs 28,119 crore. “The company’s liquidity buffer, including undrawn available sanctions, stood at Rs 17,105 crore at the end of Q3FY21, representing 24% of its balance sheet loan book,” the lender said.

The mortgage lender also said that it is fully matched for all granular buckets for 10 years and beyond. The company has a positive balance across all buckets, and will have a positive net cash of Rs 13,965 crore one year, hence, at the end of December, 2021. The capital adequacy ratio of the lender remained at 30.5%, maintaining the same levels of September quarter.