Mumbai: Indiabulls Housing Finance Ltd on Friday said that its board had approved plans to raise Rs.3,000 crore through the sale of redeemable, non-convertible bonds.
The funds will be raised in tranches and the firm has appointed intermediaries for the sale, the company said in a filing to the BSE.
On 15 January, the Reserve Bank of India (RBI) announced a surprise rate cut of 25 basis points to 7.75%. The move came as a relief to lenders such as Indiabulls Housing.
Lenders are expecting a pick-up in demand for retail loans in the coming fiscal, with improved consumer sentiment, easing inflation and the beginning of a lower interest rate cycle seen as factors likely to support increased demand for consumer credit.
According to a 13 January report by Credit Suisse, retail loans, including home loans, are expected to grow at a compounded annual growth rate of 18% to become a $1.2 trillion opportunity by the year 2020 from $440 billion in fiscal 2014.
On 19 January, the firm announced that its net profit for the quarter ended 31 December grew by 21% to Rs.478.1 crore, compared to a year ago. Revenue grew by almost 19% to Rs.1,871.2 crore.
Shares of Indiabulls Housing Finance closed the day at Rs.585.50, down by 0.09%, while the benchmark Sensex closed at 29,278.84 points, up 0.94%.
