Indiabulls Housing Finance (IBHFL) has booked business worth Rs 500 crore through the co-loan model during the five months of the current fiscal year and plans to increase it to Rs 300 crore in September.
At the start of FY 22, the mortgage lender changed the business model to gradually focus on the co-lending space by sharing the risk and loan portfolio with other banks or housing finance companies (HFC ).
Currently, she has established links with five players in the financial sector: HDFC, Canara Bank, Central Bank of India, YES Bank and RBL Bank.
Gagan Banga, vice president of IBHFL, said the operational setup of the co-lending business has improved over the months. In addition, the company will increase its business volume from the current month. It will add an additional partnership for its loan-for-property (LAP) business, bringing the total to six.
The loans are taken out by IBHFL under a joint credit policy, where 80 percent of the loans are on the balance sheet of the co-lending partner and 20 percent on that of IBHFL.
IBHFL earns a spread on its share of the loan and collects processing fees, origination fees and insurance income on the entire loan. The co-loan partner also pays an annual service fee.
IBHFL’s assets under management stood at Rs 65,438 crore at the end of June 2021, compared to Rs 66,047 crore in March 2021 and Rs 73,065 crore in March 2020. Referring to the securitization or sale of loans, Banga said he would trade worth Rs 4,000 crore. in the first semester ending in September. It has already securitized Rs 2,500 crore in the first quarter ended June 2021 and would make deals for the balance in the second quarter.
In addition to mortgage loans, the HFC also sells its commercial mortgage portfolio (CRE). He intends to sell CRE loans up to Rs 2,500 crore by the end of this month.
HFC is on the market to raise up to Rs 1,000 crore through non-convertible debentures, targeting retail investors. The I tranche has a base issue size of Rs 200 crore with an option of green shoes up to Rs 800 crore. The company uses retail investors for broad-based sources of funds.