Kapil Wadhawan, Vice CMD of Dewan Housing said that the current market situation is not right for tapping any other option. He sees no other feasible way of raising capital other than the rights issue. He expects growth of 20% for current and 25% growth for next year. The company has been borrowing heavily from the banking sector.
He further said that the cost of funds has come down by almost 100 bps since the last 2-3 months. NHB has been generous in extending lines of credit. The company continue to maintain very low NPA ratio and there is no indications that NPA’s are on the rise as of now. Dewan Housing were the highest bidder for IDBI Home Finance. The company is hopeful of seeing a resolution to the IDBI Home Finance issue soon, he added.
Dewan Housing Finance board has approved raising Rs 105 crore via rights issue. Pre-issue CAR stood at 15.5% while post issue, it is about 17%. The fund raising is to be done to improve CAR. The company is looking to disburse about Rs 2600 crore next year.
Housing & non-housing loan rates of Dewan Housing stands at 9.75-11.5%. Rates for home loans up to Rs 30 lakh stands at 9.75% and for above Rs 30 lakh stands at 10.75%. The company has cut the rates in last 15 days. Currently, incremental cost of funds is around 10%. The company maintains NIM at 3% consistently.
Dewan Housing Finance was the top bidder for IDBI Home Finance sale with bid at Rs 311 crore. However, the sale is on hold as Ministry has asked for certain clarifications from management.
Dewan Housing Finance Q3FY09 (YoY) total income stood up 29% at Rs 182.39 crore vs Rs 141.28 crore, NII stood up 7.5% at Rs 48.31 crore vs Rs 44.95 crore and PAT stood up 2% at Rs 23.22 crore vs Rs 22.81 crore.
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