The Hindu : HDFC plans to raise Rs. 6,000 cr.

Online edition of India's National Newspaper
Saturday, Jun 14, 2003

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HDFC plans to raise Rs. 6,000 cr.

KOLKATA JUNE 13. HDFC plans to raise about Rs. 6,000-6,500 crores from the market during 2003-04. It also targets a 30 per cent growth in housing loan disbursements.

"We are planning to raise about Rs. 6,000-6,500 crores from the market this year, including a foreign loan component of about $100-200 million, either from IFC or the international market," HDFC Managing Director, Keki M. Mistry, told reporters here today.

The company, which raised about $200 million from the international market last year, had held talks with the International Finance Corporation for borrowing the amount this year and was awaiting government approval for it, he said. The company was looking at 30 per cent growth in loan approval and disbursement this fiscal, he said. "The total loan approval last year was Rs. 11,732 crores, while disbursements were Rs. 9,957 crores. This year, disbursements are likely to be about Rs. 12,500 crores".

HDFC, he said, securitised housing loan amounting to Rs. 500 crores last year and would go for similar volumes this year mainly in six States where stamp duty on securitisation of loans had come down.

Earlier, addressing a seminar on `Real estate and housing', organised by the Bengal Chamber of Commerce & Industry, Mr. Mistry said the country still lacked a real estate mutual fund that existed in many countries. "The MF collects the fund and invests for buying and selling of real estate or lending to developers. But the law here does not allow floating such an MF.

The Securities and Exchange Board of India is looking into it. I think it will be in place in due course". He also welcomed the proposed launch of a mortgage credit guarantee scheme by the NHB-promoted Indian Mortgage Insurance Company. About the non-performing assets, he said, "HDFC has a low amount of such loans. It was only 0.92 per cent of assets in March 2003. — PTI

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