 "Indiabulls HFC eyes to scale up monthly disbursement to Rs 1,200-1,300 cr")
After stabilising its assets under management (AUM) in the fourth quarter ended March, Indiabulls Housing Finance expects to scale up monthly disbursements to Rs 1,200-Rs 1,300 crore from Rs 800 crore now to grow the overall AUM by March 2024. It will also go for rebranding to reflect a shift from promoter driven entity to institutional character.
Gagan Banga, vice chairman and managing director of Indiabulls Housing Finance, said disbursements in the second half would average about Rs 1,300-Rs 1,400 crore a month.
“The moment it goes above Rs 1,200-Rs 1,300 crore per month level, we will start re-growing, net of the money that comes back on retail and wholesale side,” Banga said in an analyst call. The book will be flattish over the next six months.
From a sharp decline, the book has flattened out over the last six months. If the co-lending platform at Alternate Investment Fund (AIF) for the wholesale side is to grow to a level where opportunity exists, then restarting of growth can happen much faster, perhaps by a quarter or so. Not much faster, Banga said in analyst call.
Over the course of last five years, the balance sheet which was Rs 1,32,000 crore at end of March 2018 has run down by 43 per cent to Rs 75,000 crore. This all happened by loans coming back.
As for recoveries from stressed loan pool, he said in the last five years, Indiabulls Housing has built a pool of over Rs 10,000 crore of assets comprising non-performing and written-off loans from the wholesale book.
The recovery from this portfolio has been to the tune of Rs 2,500 crore in the last five years and confident to recover another Rs 2,500 crore in six quarters. The recovery would be Rs 400-500 crore per quarter.
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The lender would focus on institutionalisation. The corporate identity (name logo etc.) will be changed to reflect institutional character of the company; coupled with lower gearing and higher capital adequacy will lead to a greater comfort to lenders and rating agencies. The reorganisation and rebranding are subject to requisite approvals with a tentative timeline of 120 days, it added.
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