Indiabulls' Rs 1.5K-cr capital needs

Indiabulls Financial Services Ltd (IFSL) has pegged its capital requirement, including the debt component, at Rs 1,500 crore to support growth in assets over the next two years.

Meanwhile, consolidated net profit rose to Rs 247 crore in December 2011 from Rs 203 crore a year before. Consolidated income for the third quarter grew to Rs 972 crore from Rs 685 crore a year before. The stock closed 1.5 per cent down at Rs 180.6 on the Bombay Stock Exchange on Monday.

The non-banking finance company expects 25-30 per cent yearly growth in asset base, comprising mortgage loans, corporate credit and commercial vehicle loans, said chief executive officer Gagan Banga.

Assets under management grew to Rs 25,081 crore at end-December 2011 from Rs 17,069 crore a year before. The quarterly growth in assets has been Rs 2,000 crore for the past nine quarters.

The company says it will maintain capital adequacy at 18-18.5 per cent, about three per cent above the minimum ratio prescribed by the regulator. The capital adequacy at the close of March 2012 will be about 19 per cent.

Banga said the company had an adequate equity capital base for now.

It would consider further rounds of equity infusion in the early part of 2014-15. It raised debt capital (Rs 150 crore) through subordinated bonds early this month.

Mortgages (predominantly home loans) were 71 per cent of all loans in the third quarter, the same level seen in October-December 2010. The average size of a home loan was Rs 24 lakh, with a loan to value ratio of 65 per cent. The share of the commercial vehicle loan pool rose to eight per cent from six per cent a year before.

Reliance on short-term money (commercial paper) has been reduced to nine per cent of total borrowings from 14 per cent a year before.