The mortgage lender is trying to raise Rs 5,000 crore by way of the securitization route in the fourth quarter of the current monetary year, in accordance with a senior firm official. In the three months ended December 31, 2020, it had raised around Rs 2,000 crore through the route.
“Our securitization 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 percent of the non-bank financier’s general borrowing and on a mean, it raises around Rs 2,500 crore per quarter via the route. Overall, in 2020-21, it has raised a complete of Rs 28,119 crore via fairness, financial institution strains, bonds, and mortgage sell-downs.
The securitisation market is primarily intended to redistribute the credit risk away from the originators to a wide spectrum of investors who can bear the risk, thus aiding financial stability and provide an additional source of funding. 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 percent.
“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 that 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 stated. In a press release, the corporate stated it continues to de-risk developer mortgage ebook by way of refinancing and securitisation of loans.
“We continue to see strong traction in developer loan refinance and are in talks with multiple financial institutions for a sell-down of this book. We expect to reduce our wholesale book by 33 percent by March 2022 and by 50 percent by December 2022,” it said. On developer loans sourcing, the company said it is in talks with two large real estate-focused funds to set up an investment platform. The talks have progressed well, and it expects to set up an investment platform by September 2021.
On developer loans sourcing, the company said it is in talks with two large real estate-focused funds to set up an investment platform. The talks have progressed well, and it expects to set up an investment platform by September 2021.
In the quarter ended December, the company reported a 40.4 percent dip in its consolidated profit after tax at ₹329 crore due to higher provisioning.
It had registered a revenue after tax of Rs 552 crore in the year-ago quarter.
Gross non-performing property (NPAs) stood at 1.75 percent and web NPAs at 0.77 percent in the third quarter.
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