Indiabulls Housing gains after tie up with Central Bank of India for co-lending

Indiabulls Housing Finance rose 1.74% to Rs 252.10 after the company said that it has entered into a strategic co-lending partnership with Central Bank of India to offer secured retail loans and secured MSME loans respectively at competitive rates.

Indiabulls Housing Finance (IBH) and Indiabulls Commercial Credit (ICCL) will originate loans as per credit policy jointly drawn up with Central Bank of India. These loans will then be securitised to Central Bank of India on back-to-back basis in line with the provisions of RBI's co-lending model. IBH/ICCL will retain 20% of the loan on their books while 80% will be on Central Bank of India's books. IBH/ICCL will service the loan account throughout the life cycle of the loan.

Co-lending tie-up with Central Bank of India will be a key partnership in IBH's new balance-sheet light growth business model. Moreover, technology led co-lending will help IBH offer convenient and seamless experience to its customers as well as help expand its reach to Tier III and IV towns of the country apart from strengthening its foothold in Tier I and Tier II towns, the housing finance lender said in a statement.

On a consolidated basis, IBH reported 117.8% jump in net profit to Rs 276.23 crore in Q4 FY21 as against Rs 126.85 crore in Q4 FY20. Total income declined 18% year-on-year (Y-o-Y) to Rs 2,421.96 crore during the quarter.

IBH is a housing finance company, regulated by the National Housing Bank (NHB). The company offers competitively priced home loans in the affordable housing segment.

Meanwhile, shares of Central Bank of India were up 0.43% to Rs 23.10 on BSE.

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