IndiaBulls Home Loan

News About Indiabulls Bank Home Loan

• Indiabulls Housing Finance offers pre-mature redemption of non-convertible debentures

  All non-convertible debentures (NCDs) of Indiabulls Housing Finance that will mature in November and December this year can be redeemed prematurely as per the company’s latest announcement. The company has also revealed in the stock exchange filing that it will offer the option of premature redemption of its NCDs from time to time. The company has also revealed that as on 10 October 2019, its cash and cash equivalents stood at 20% of its total assets while its aggregate liquidity was more than Rs.18,500 crore. About 100% cover is provided by this liquidity over Indiabulls’ debt repayments till September 2020. The shares of the company rallied by more than 14% on 17 October 2019 after rating agency CRISIL reaffirmed the company’s ratings. The market capitalisation of the company surged to Rs.8,429.62 crore from the previous Rs.1,036 crore. On the National Stock Exchange, more than 8 crore worth of shares were traded while on the Bombay Stock Exchange around 77.96 lakh shares were traded.

  

  22 October 2019

• Indiabulls Housing seeks advise from SEBI on buybacks

  Market regulator Securities and Exchange Board of India (SEBI) has been sought advice from Indiabulls Housing Finance on its eligibility to buy back share. Presently, the debt-equity ratio is prescribed at 6:1 for a subsidiary housing finance company (HFC) and non-banking finance company (NBFC). The board has advised Indiabulls to continue its practice of paying 50% of profits as dividends. Indiabulls Housing Finance is one of the top ten dividend-paying firms in India having paid around Rs.10,530 crore over the past 10 years. In the meantime, the company lost 5.74% of its shares after Moody’s reduced the credit rating of the company from Ba2 to B2 citing challenges in funding.

  

  16 October 2019

• Prudent decision taken by RBI in the LVB-Indiabulls merger case

  The Reserve Bank of India (RBI) has decided not to go ahead with the Lakshmi Vilas Bank and Indiabulls Housing Finance merger after pondering about it for about six months. The decision could be in the best interests of the Indian banking system and depositors.

  The decision was made by RBI this week. While both Lakshmi Vilas Bank and Indiabulls are looking at the decision positively, they will have to work harder to think about alternative business solutions. The decision made by RBI to reject the merger proposal is prudent on two counts. The merger, which was proposed in April, was seen as a coming together of two entities that were in trouble. Indiabulls was looking to merge with Lakshmi Vilas Bank to piggyback on its branch network to resurrect its growth in the loan market. In case the RBI had approved the proposal, it would have undermined the interests of investors and public depositors. However, both entities have a reason to be aggrieved since the RBI took around six months to make a decision. The RBI has also not given any explanation as to why the proposal has been rejected.

  

  15 October 2019

• Share prices of Indiabulls Housing dip by 3% post the revision of its credit rating by CARE

  Housing finance firm Indiabulls Housing Finance witnessed a dip of over 3% in its share prices on 25 September 2019 after its credit rating was revised by credit rating agency CARE. The revised long-term rating stands at CARE AA+ from the previous CARE AAA while the perpetual debt programme has been revised to CARE AA from CARE AA+. CARE has revised the short-term rating of Indiabulls Housing Finance to CARE A1+. The revision in the rating was done because the merger of the firm with Lakshmi Vilas Bank is in process which has challenged the funding environment for Housing Finance Companies (HFCs) and Non-Banking Financial Companies (NBFCs). In the last one year, the share price of Indiabulls Housing Finance saw a decline of 56%. On the Bombay Stock Exchange, the shares of the firm were down by Rs.9.05 or 2.08% during the early hours of 25 September.

  

  26 September 2019

• Due to Moody’s rating downgrade, Indiabulls Housing Finance crashes by 10%

  After Moody’s, global rating agency, downgraded Indiabulls Housing Finance (IHF) from Ba2 to Ba1, its shares slumped by 10% to Rs.498. The outlook has also been changed from stable to negative.

  In case the outlook is negative, it usually means that ratings will not improve for the next 12-18 months. As per Moody’s scale, the Ba rating is “judged to be speculative, subject to substantial credit risk.” According to a statement that was made by the rating agency, the tight funding conditions may remain for a while, hence the outlook was changed to negative. The credit profile (asset quality and profitability) of IBH may be under more pressure due to this. Various other factors such as asset quality deterioration were also considered before the downgrade in the initial quarter of the year that ended in June 2019. The balance sheet of the company decreased by 7%, while the cost of funding rose by 45 basis points in the first quarter. The increase in funding is considered as one of the main reasons for the decline. The rating agency further added that the company’s merger with Lakshmi Vilas Bank would get it converted to a bank and hence the outlook will change back to stable. The approval of the merger must be secured from the Reserve Bank of India (RBI).

  

  28 August 2019

• Indiabulls Housing Finance Down After Macquarie Cuts Price Targets by 29% 

  Indiabulls Housing Finance shares was down by a percentage in Wednesday after Macquarie, a global research house, cut its price target on the stock by 29%. NBFCs have funded 85% of incremental real estate book in last five years. Macquarie said the funding situation has been normalised slightly for NBFCs; however, they remain tight. The research house cut its target price to Rs.836 from Rs.1,170 per piece. On the Bombay Stock Exchange (BSE), the stock of Indiabulls Housing Finance was quoting at Rs.658.45, declining by Rs.1.05 or 0.16%. This was at 13:00 IST.

   

  

  6 March 2019

• Indiabulls Housing Finance jumps 2% before cutting down gains later

  Indiabulls Housing Finance’s shares jumped 2% on the Bombay Stock Exchange (BSE) after reports claimed that the non-banking finance company (NBFC) had raised over Rs.23,600 crore in the last 2 months through loan portfolio sales and debt capital market. However, as the session progressed, the stock failed to hold onto to its gains and dropped flat towards the end. The scrip was recorded trading at Rs.707.55, up 0.02% on BSE at 10 am. Despite the NBFC sector’s liquidity crisis after the Infrastructure Leasing and Financial Services (IL&FS) defaulted on its debts during the quarter ended 30 September 2018, the company has been able to raise significant funds owing to a combination of loan portfolio sales and debt capital market, with the objective of maintaining high levels of funds.

  

  5 December 2018

• Indiabulls Housing Finance increases home loan interest rates by over 20 basis points

  In order to counter the impact of the rising funding cost on the company, Indiabulls Housing Finance has reportedly announced a hike in the home loan interest rates by over 20 basis points (bps) or 0.20%. For home loans up to Rs.35 lakh, the rate of interest applicable to women applicants and co-applicants stand at 8.80% while the for other applicants and co-applicants, the interest rate on the same loan amount starts from 8.85%. Similarly, the rate of interest applicable to women applicants and co-applicants for loan amount above Rs.35 lakh has been raised to 8.95% while the interest rate for other applicants and co-applicants on the same starts from 9.00%. According to reports, the rise in interest rates can be the result of the rising cost of funds for the company.

  

  12 November 2018

• Indiabulls Housing Finance hikes interest rates on home loans by up to 20 points

  In a filing to the BSE on Tuesday, Indiabulls Housing Finance announced that the interest rates on home loans have been hiked by up to 20 points. The announcement was made a few days after the Reserve Bank of India’s (RBI) bi-monthly monetary policy review meeting held on 05 October 2018. However, the RBI announced that there will be no change in the key policy rates. The repo rate and reverse repo rate has been kept unchanged at 6.50% p.a.and 6.25% p.a. after hiking the key rates twice in the last two monetary policy reviews. Other commercial banks and financial institutions have also made changes to the marginal cost of funds based lending rates (MCLR). This, in turn, will be passed on to the interest rates on the home loans. According to reports, women applicants/co-applicants can avail Indiabulls Housing Finance home loans up to Rs.35 lakh at an interest rate of 8.80%. For loans amounts above Rs.35 lakh, the rate of interest applicable to women borrowers is set at 8.95%. The lowest slab of loan amount was raised from Rs.30 lakh to Rs.35 lakh by the bank in August so that a wider range of customers can benefit from the best possible rate.

  

  9 October 2018

• Indiabulls housing finance: Home loan interest rates likely to remain under 9%

  According to Ashwini Hooda the Deputy Managing Director of Indiabulls Housing Finance, home loan interest are expected to be hiked but not more than the average 9% in FY19. Hooda comments came only a few days after the Reserve Bank of India hiked its key rates with the repo rate standing at 6.50% - an increase of 25 points - and the reverse repo rate holding at 6.25%. The company also announced its financial results for Q1 FY 2018-19 on Thursday. The Indiabulls Housing Finance recorded a consolidated net profit of Rs.1,049 crore - a 30% rise - for the quarter. On the other hand, HDFC reported a net profit growth of 54% owing to its healthy growth individual loan in the affordable housing segment.

  

  9 August 2018