ALM framework sound, capital adequacy high: Indiabulls HFC

MUMBAI: At a time when non-banking finance companies and housing finance companies are under the scanner over asset-liability norms, Indiabulls Housing said that the company has matched asset-liability management (ALM) in all buckets, has higher capital adequacy and maintains high liquidity coverage ratio of 137 per cent.

The company has raised Rs 3,620 crore from primary issuances over the last 15 days. In addition Indiabulls Housing has done Rs 1,820-crore worth buy back from the secondary market and Rs 410 crore of its debt paper was traded in the secondary market.

Cost of funds for borrowing from CP was 8.25 per cent. The company raised Rs 500 crore in 2-3 buckets from insurance companies at 9.5 per cent.


“If any tightening of ALM norms happen, we stand to gain as we are far ahead in maintaining high capital adequacy, matched ALM and high liquidity,” said Gagan Banga, vice-chairman Indiabulls Housing Finance Company.

The company is confident of growing its business by 20 per cent-plus in the current macro environment.

Over and above the cash and cash equivalents of Rs 20,000 crore as on September 30, 2018, average quarterly customer repayments are Rs 5,000 crore, the company said. It has six months’ liquidity coverage ratio assuming no fresh borrowings.