IIFL Home Finance aims to raise Rs 7,000 crore in FY22

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The net interest income saw a 15% y-o-y growth to Rs 574 crore. Total income increased 42% during the March quarter to Rs 968 crore.

By Ankur Mishra

IIFL Home Finance aims to raise around Rs 7,000 crore during the current financial year, CEO Monu Ratra told FE. The fund-raising will done via NCD issues, bank term loans, direct assignment of portfolios and financing from National Housing Bank (NHB), among others.

The company has begun its fund-raising exercise through an NCD issue, aiming to mop up Rs 1,000 crore. The tenure of NCD issue is 87 months and the annual coupon rate is 10%.

“The overall fund requirement keeping in mind liabilities which are going to mature and new business plans is around Rs 7,000 crore,” Monu Ratra, ED and CEO IIFL Home Finance, said. He expects Q1 earnings to be better than last year as the impact of Covid-19 lasted for longer duration in 2020. “Q1 of this year will be better as it (Covid-19 impact) lasted for too long last year and people were shocked by what was happening,” he said.

However, Ratra acknowledged that there was some impact on collections during the June quarter this year, but it was not alarming.

In April, Crisil had revised its rating on company’s arm IIFL Home Finance to ‘stable’ from ‘negative’. The revision was done due to continuous improvement in collection efficiency resulting in the uptick in asset quality metrics being lower than previous expectations despite weak macroeconomic environment.

Before that, in March, another rating firm Fitch had affirmed IIFL Finance’s long-term issuer default rating (IDR) at ‘B+’ and removed it from rating watch negative (RWN). The rating firm saw easing downside risk to the company’s credit profile due to less adverse economic and funding conditions.

IIFL Home Finance began operations in 2009 as a wholly owned subsidiary of IIFL Finance. IIFL Finance had reported a 321% year-on-year (y-o-y) growth in its net profit to `248 crore during the March quarter (Q4FY21). The net interest income saw a 15% y-o-y growth to `574 crore. Total income increased 42% during the March quarter to Rs 968 crore.

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