Dewan Housing open to buyouts

Dewan Housing Finance Corporation Ltd (DHFL) which has very recently acquired 86 per cent in Vysya Bank Housing Finance Ltd (VBHF) is on the prowl once again.

The company is looking for the opportunity for acquiring profitable players that have lower non-performing asset levels.

It is also open to taking a stake in the proposed Mortgage Insurance Corporation that is being floated by National Housing Bank, Canada Housing Mortgage Corporation, IFC and ADB.

Kapil Wadhwan, managing director, DHFL while answering queries at a press conference to announce its presence in Kolkata said, "The Mortgage Insurance Corporation was likely to be formed by the end of 2005 and if we find an opportunity to subscribe to an equity stake we would go for it.

On the issue of takeovers he said, "We are looking at opportunities for acquiring profitable players with low NPA who would help us enhance our portfolio."

He however clarified that the company at present was not involved in talks with any one. Wadhwan also said that the company intended to securitise assets worth Rs 150 crore in two tranches this year.

Last year the company had securitised around Rs 61 crore, while in the previous year the amount was Rs 55 crore.

"Our portfolio bundled as debentures and bonds are sold to potential investors," explained Wadhwan.

Meanwhile, the company has targeted a Rs 1000 crore sanctions this year against Rs 500 crore in the previous year. "Disbursements were likely to be Rs 850 this year against Rs 470 crore in the previous year," he explained.

The company has also firmed up plans of mobilising around Rs 1,000 crore from the markets which will be used to finance loans to be provided by the company.

DHFL has also roped in Asian Development Bank for a $15 million loan, while another line of credit of $12.5 million was also expected from the World bank body, International Finance Corporation.

Asked whether, DHFL was considering merger of VBHF with DHFL, Wadhawan said, "As of now we have decided that two entities would operate as different organisation, with VBHF having its own team of professionals."