Indiabulls Housing Finance is looking at higher ticket sizes with its co-lending model, Vice Chairman and Managing Director Gagan Banga told CNBC-TV18.
The housing finance company has raised Rs 800 crore via non-convertible debentures (NCD). It also raised funds via a stake sale of Rs 251 crore in OakNorth Holdings (a wholly-owned parent company of OakNorth Bank PLC).
“The ticket sizes are slowly increasing and the good thing is that with some of our co-lending partners, we are also able to go beyond just priority sector and look at higher ticket sizes with the private banks and with the financial institutions. So that is allowing us do more numbers,” said Banga.
“Our core business is doing extremely well. We are back to, more closely, regular disbursal numbers after about four-and-a-half years. And as management, we want to single-mindedly focus on fulfilling the guidance that we have set for the second half of the year,” he said.
According to him, developers should focus on clearing inventory rather than price increases. “Generally, as a trend, people are opting for homes though I would still say that real estate inflation has not kicked in, which on an overall basis is a good thing; especially for the mid to premium end. However, I am hopeful that all the developers focus more on getting rid of inventory rather than price increases in the short term,” said Banga.
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Speaking on the sale of some of the company's stake in OakNorth Holdings, he said, “We have diluted our stake over a period of time and we hold a very small number. It's non-strategic; we held 1.5 percent. We were getting a good number and a decent valuation premium to the previous rounds. We thought that it's best to get long and focus on our core business.”
For the entire management interview, watch the video