Indiabulls Housing Finance gained in trade on back of highest loan growth reported in the first quarter at 33 percent in the last 5 quarters. The mortgage lender reported a 25 percent jump in the June quarter net at Rs 788.2 crore, helped by higher loan growth, reduction in the cost of funds and the cost-to-income ratio.
Gagan Banga, VC & MD, Indiabulls Housing Finance said target of 30 percent loan book growth would continue. The growth was aided by the changes made by the government like Pradhan Mantri Avas Yojana and benign interest rate scenario.
The house has been able to growth earnings in a range of 20-25 percent for 32 straight quarters. This would also continue at a similar pace.
General industry consensus is that loans of below Rs 25 lakh may grow at 35-40 percent and if that happens then the company may see higher growth than 30 percent.
However, the company is very watchful with regards to corporate loan book, said Banga because both RERA and GST has an impact on construction finance project.
The company's gross non-performing loans (GNPAs) improved to 0.80 percent from 0.84 percent last year, while net Non-Performing Assets, too, stood down at 0.31 percent from 0.36 percent.
Banga said the company has been able to maintain their GNPAs at 85 basis points for the last three year and as of now there are no concern on existing books. The company is in touch with their real estate customers and helping them with RERA etc, he added.
One is only slightly concerned of how long the industry would take to migrate but there is no asset quality concern, he said.
The company is also watchful on the premium housing space and future demand for that space as it is going through a sluggish save.
With regards to CLSS scheme, they have disbursed 40,000 loans in last few months and large part of the applications are under process at the nodal agency, said Banga.
By start of calendar year 2018, one will see large number of large developers launching projects around affordable housing, he said.
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