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5 = Company Overview =
7 Indiabulls Housing Finance Ltd. (IBHFL) (NSE: IBULHSGFIN) is India’s third largest housing finance company, regulated by the National Housing Bank (NHB). IBHFL is rated ‘AA’ by leading rating agencies including CRISIL and ICRA. The company has a balance sheet size of ₹ 0.96 trillion as on 30th September, 2020. The company has serviced more than 1 million happy customers and cumulatively disbursed loans of over ₹ 2.77 trillion. It is has a strong nationwide presence and continues to reach out further with eHome Loans – India’s first completely online home loan fulfilment platform. The company has over 220 branches well-appointed and accessible in 110 towns and cities across India and 2 representative offices in Dubai and London offering services to NRIs/PIOs. {{footnote}}{{/footnote}}
10 [[image:IBULHSGFIN0.jpg]]
13 == Products ==
15 **Home Loan**
17 Home Loan Balance Transfer
19 Msmse Loans & Lap
21 Home Loans For NRI`S
23 Home Renovation Loan
25 Home Extension Loans
27 Rural Home Loans
29 Pradhan Mantri Awas Yojana
31 Emergency Credit Line Guarantee Scheme (ECLGS)
34 = Housing Sector =
36 ‘Housing for all by 2022’ has been a headline mission of the Modi government since their first term in office. According to the Ministry of Housing and Urban Affairs, under Pradhan Mantri Awas Yojana [PMAY] – Prime Minister’s Housing Scheme, over one Crore homes have been sanctioned, of which 33.5 lakh houses have been completed and 64 lakh units are already under construction. The Credit Linked Subsidy Scheme [CLSS] – a component of the PMAY, has also enabled several families become homeowners. {{footnote}}{{/footnote}}
38 In the most recent budget, Finance Minister Nirmala Sitharaman extended the additional tax deduction, of up to ₹ 1.5 lakh for interest paid on loans taken towards purchase of a family’s first house, by an additional year for loans sanctioned on or before March 31, 2021. Further, to boost the supply of affordable housing in the country, the FM also extended the tax holiday on profits earned by developers of affordable housing projects by one year to projects approved till March 31, 2021.
40 The residential real estate market has been going through a rough phase even prior to the COVID-19 pandemic. Developers faced difficulty in raising incremental funds owing to the liquidity constraints of NBFCs & HFCs, and sectoral risk averseness amongst banks. Several developers were over-leveraged and troubles further compounded due to insufficient cash flows owing to low sales’ velocity, and high unsold inventories. This has been made worse by shifting buyer preference for completed projects rather than under-construction projects.
42 The COVID-19 pandemic further intensified the headwinds already facing the housing finance and the real estate sectors. The pandemic, and the subsequent nationwide and local lockdowns, as well as other restrictions to contain spread of the virus, have taken a large toll on the economy. This has had a cascading impact on construction activity. Large scale migration of labourers back to their home towns and villages during the nationwide lockdown period, and subsequent uncertainty over project execution have affected buyer sentiment with regards to under-construction projects.
44 The RBI on March 27, 2020 announced a COVID-19 regulatory package wherein it allowed borrowers to avail moratorium for term loan instalments falling due between March 1, 2020 and May 31, 2020. In May 2020, the moratorium was further extended for 3 months i.e. up to August 31, 2020. During the moratorium, a standstill was imposed on asset classification norms to mitigate the impact on credit quality. The RBI also allowed extension of date of commencement of commercial operations by 1 year for projects which are delayed for reasons beyond the control of promoters, without asset classification downgrade.
46 The government also set up an alternative investment fund to provide last mile funding for incomplete affordable housing projects called the Special Window for Completion of Construction of Affordable and Mid-Income Housing Projects [SWAMIH Investment Fund]. The fund will finally have a ₹ 25,000 Crores corpus, with the government committing up to ₹ 10,000 Crores and the balance being contributed by public sector banks, Life Insurance Corporation of India, amongst others investors. So far, ₹ 8,767 Crores of funding towards 81 stressed projects has been approved, enabling completion of almost 60,000 homes across a mix of markets including large cities as well as tier-2 locations across India.
49 [[image:IBULHSGFIN2.png]]
52 = Financial Overview =
54 The Company’s focus during the year was on conserving liquidity and managing its ALM profile. As a result, the Company moderated incremental disbursals during the year. Despite the slowdown and the headwinds facing the NBFC/HFC and the real estate sector, IBH ended FY 2019-20 on very strong financial footing.
56 The Company’s balance sheet stood at ₹ 1,02,872 Crores as at end of FY 2019-20. Total loan assets stood at ₹ 93,021 Crores, and sold down book stood at ₹ 19,956 Crores.
58 The company’s revenues for the year ended March 31, 2020 were ₹ 13,223 Crores and profits for the year were ₹ 2,200 Crores. Adjusted for COVID-19 provisions, the PAT for the year was ₹ 2,904 Crores.
60 In the backdrop of the COVID-19 pandemic induced depressed economic outlook, the Company has worked to rationalise its operating expenses. The senior management has taken the lead in this by taking voluntary salary cuts. The total monthly operating expenses of the company have been reduced from an average of ₹ 70 Crores per month in FY 2019-20 to under ₹ 40 Crores per month in FY 2020-21. With the exception of a few strategic positions, all incremental and replacement hiring has been frozen till September 2020. Rents of current branches have been renegotiated and all branch expansion plans have been put on hold till September 2020. Other non-salary operating expenses such as advertising, travel, and all other discretionary expenses have also been frozen till September 2020.
62 Asset quality remained strong with moderate Gross NPAs of 1.84% and Net NPAs of 1.24%. Total provisions stood at ₹ 3,741 Crores, representing 5.1% of the loan book and 218% of GNPAs as of March 2020.
64 With capital adequacy of 22.8% for the period ended March 31, 2020, IBH was amongst the best capitalized companies amongst its HFC, NBFC and banking peers.
67 == FY21 Results ==
69 **May 20, 2021; Reported Consolidated quarterly numbers for Indiabulls Housing Finance are: **{{footnote}}{{/footnote}}
71 * Net Sales at Rs 2,371.71 crore in March 2021 down 19.6% from Rs. 2,950.04 crore in March 2020.
72 * Quarterly Net Profit at Rs. 276.23 crore in March 2021 up 101.54% from Rs. 137.06 crore in March 2020.
73 * EBITDA stands at Rs. 1,973.63 crore in March 2021 down 12.21% from Rs. 2,248.08 crore in March 2020.
74 * Indiabulls Hsg EPS has increased to Rs. 6.20 in March 2021 from Rs. 3.27 in March 2020.
76 = References =
78 {{putFootnotes/}}

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