Indiabulls to raise Rs 5,000 crore from securitisation in current quarter

Securitisation is the process of pooling and repackaging of homogenous illiquid financial assets into marketable securities that can be sold to investors.

Mumbai: Mortgage lender Indiabulls Housing Finance is looking to raise Rs 5,000 crore through the securitisation route in fourth quarter of the current financial year, according to a senior company official. In the three months ended December 31, 2020, it had raised around Rs 2,000 crore through the route.

Securitisation is the process of pooling and repackaging of homogenous illiquid financial assets into marketable securities that can be sold to investors.

“Our securitisation pipeline is strong. We should be able to raise almost Rs 3,000 crore from the wholesale book and another Rs 2,000 crore from the retail in this (Q4 FY21) quarter,” the company’s deputy managing director Ashwini Kumar Hooda told PTI.

He said already securitisation transactions worth Rs 2,000 crore have been done so far in the fourth quarter. “Fourth quarter is when most of the securitisation transactions get bunched up. We had a lot of transactions for December that got carried forward to January,” Hooda said.

Securitisation constitutes 25 per cent of the non-bank financier’s overall borrowing and on an average, it raises around Rs 2,500 crore per quarter through the route. Overall, in 2020-21, it has raised a total of Rs 28,119 crore through equity, bank lines, bonds and loan sell-downs.

On disbursements, Hooda said that in the third quarter of 2020-21, fresh disbursements stood at Rs 3,458 crore of which retail loan disbursals constituted 75 per cent. “In the fourth quarter, we expect disbursement to go up to Rs 4,500-5,000 crore,” he said.

The company is also seeing good traction in loan co-lending and expects active sourcing to begin next quarter with three other co-lending tie-ups which are into the final stages of integration. “We expect the monthly disbursal run rate through co-lending to reach Rs 1,500 crore by September 2021,” he said.