DHFL arm Aadhar looks to sell loan book to infuse cash
The company has a loan book of Rs 8,700 crore, with disbursement targets of Rs 450-500 crore a month.
“Lack of liquidity due to non-availability of funds from the capital market and banks has slowed our monthly disbursements. In September, we did 25 per cent of our allocated target and in October it may be down to 15 per cent to 20 per cent,” said Deo Shankar Tripathi, CEO, Aadhar Housing Finance, “But we are hoping to get some credit through portfolio assignment to banks,” he added.
The company has a loan book of Rs 8,700 crore, with disbursement targets of Rs 450-500 crore a month. According to the Reserve Bank of India (RBI) and National Housing Bank (NHB) guidelines, HFCs (housing finance companies) can sell only 90 per cent of the loans given out in the last 12 months, and within that too, there are several other criteria.
The company has given out Rs 6,000 crore worth of loans in the last one year. But considering the guidelines and various criteria, Aadhar can sell loans amounting to Rs 1,200 crore, or 14 per cent of the existing loan book.
The company merged with DHFL Vysya last year and is also issuing fixed deposit receipts to enhance liquidity. The pre-merger Aadhar team has been now selling FDs for the first time since merger. The team did not sell fixed deposits earlier and started selling fixed deposit receipts only two months ago.
Total liability from FDs currently is around Rs 150 crore, nearly 2 per cent of the loan book. “We have set higher targets for FDs this year, but it is a small component now,” said Tripathi. But the immediate solution would be the money the company would receive from banks from the portfolio sale.“We expect the money in the next 10 to 15 days,” he said.
The RBI, NHB and SBI earlier said that they would take steps to lessen the credit constraints for non-banking financial companies (NBFCs). SBI also said it would step up its current year’s loan purchase target from NBFCs to Rs 45,000 crore from Rs 15,000 crore earlier.
Last month, Aadhar also tried raising Rs 1,400 crore through NCDs (non convertible debentures) but could manage only Rs 675 crore.
Tripathi also denied reports of global private equity player KKR taking a stake in Aadhar. “As on this morning, there is nothing on the ground that has happened,” he said Sunday.
Aadhar claims to have the highest penetration in the country in the affordable-housing space. It has 315 branches and a presence in 20 states. Average loan ticket size is Rs 8.25 lakh.
DHFL, a group company, has been one of the most affected in the NBFC crisis. In the last one month, the DHFL stock has lost two-thirds its market value.