The board of Lakshmi Vilas Bank on April 12 approved the merger with Indiabulls Housing Finance.
In an interview with CNBC-TV18, Gagan Banga, Vice Chairman and MD of Indiabulls Housing Finance discussed his business outlook.
Gagan Banga, Vice Chairman & Managing Director, Indiabulls Housing Finance said the slow growth seen for the industry is because of RERA and GST coming in the first quarter of this fiscal.
Historically home loans have been priced between 150 basis points (bps) and 200 bps higher than government securities, even now they are priced in pretty much the same range, Gagan Banga, VC & MD of Indiabulls Housing Finance told CNBC-TV18.
In an interview to CNBC-TV18, Gagan Banga, VC & MD of Indiabulls Housing Finance said that the good thing about CLSS is that there is no cap on the value of the house.
Gagan Banga of Indiabulls Housing Finance told CNBC-TV18 he expected roughly Rs 60,000 crore of additional funds to come the way of the top rated housing finance companies from this move.
Speaking to CNBC-TV18 Gagan Banga, VC & MD, Indiabulls Housing Finance, said that tier II and tier-III cities, outskirts of major cities will be covered under the new scheme announced by the PM in his speech on the new year eve.
Indiabulls Housing Finance has also guided for 25-30 profit growth in FY17, a considerable rise from the earlier 23 percent.
Gagan Banga, Vice Chairman of Indiabulls Housing Finance says that the company is trying to initiate product mix change.
Gagan Banga, Vice Chairman and MD of Indiabulls said that the company will be a benefit from this revision in limits as it is not dependent on commercial paper.
The company is aiming for a 20-25 percent growth in all parameters, Gagan Banga, Vice-Chairman& MD said adding that he expects net interest income and profit after tax to grow in range of 22-25 percent in FY16 and FY17.
Gagan Banga, Vice Chairman & Managing Director, Indiabulls Housing Finance said the acquired UK-based company would be a deposit taking franchise and that the financial impact will only be 1 percent of the total balance sheet.
The QIP has taken the capital adequacy ratio of the company to 23-24 percent as of September 30, said Gagan Banga, VC & MD, Indiabulls Housing Finance.
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Gagan Banga, vice chairman and managing director, Indiabulls Housing Finance says the company will continue to focus on opening branches in cities they are already present.
Considering the Reserve Bank has lowered repo rate twice this year, Gagan Banga of Indiabulls Housing Finance expects comparative pressures to result in prime lending rates coming down by 25 basis points by March-end or early April.
Indiabulls Housing Finance hopes to capitalise on the upcoming festive season to boost its performance. The housing finance entity is also hopeful to get a banking license too.
Gagan Banga, MD & CEO, Indiabulls Housing Finance told CNBC-TV18 that the management is clearly focused that it wants to pursue the home finance opportunity. However, in an ideal world after a few years we would want to migrate and progress to being a bank.