Stock of Indiabulls Housing Finance continues its rally and gained more than 5 percent in three consecutive days following timely payment of interest/principal related to NCDs. On December 31 the stock gained over 2 percent intraday.
On December 27 and December 30, the housing finance company said it made timely payment of interest/principal (as the case may be) in respect of the secured redeemable non-convertible debentures (NCDs) issued by itself on private placement basis. Towards the end of last month and earlier this month, the company redeemed (bought back) secured, redeemable, non-convertible debentures of face value Rs 10 lakh each.
Gagan Banga, Vice Chairman and Managing Director at Indiabulls Housing Finance told CNBC-TV18 that the company has taken an initiative to buy back some of the securities maturing in 2021. It will be buying back bonds worth Rs 1,000-2,000 crore between now to January while we will be rolling back wholesale book between now to March 2020 by Rs 7,000 crore or $1 billion.
He feels the worst for the housing finance sector is behind.
The company?s operating profit continues to remain around Rs 800 crore. Gross NPA will be between 1.5-2 percent. By FY20, loan book on balancesheet will be at Rs 70,000-75,000 crore, as said by him. He added that the company will not need to sell stake in OakNorth Bank in Q4FY20. He expects AUM growth of 20 percent in FY21 and the prime source of funding in 2020 will be internal accruals.
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