IndiabullsThe government’s encouragement to the affordable housing segment is likely to boost the segment between Rs.40-60 lakh, as expected by the Indiabulls housing finance. The officials are also expecting the loan book to double itself by 2024 to reach Rs.2 lakh crore.

The reason for company’s profit growth
The main factor behind the profit is the growth in margins and loan book. Despite the fact that the treasury gains were very less this year, a growth in profit was witnessed because of the effective disposal which in turn brought a growth in interest income. In the previous year, the increase in margins was 5-6 basis points, but if we look at the comprehensive perspective, margins are in the range of 300-325 basis points.

The segment which saw the highest growth
The increase in the home loan book of Indiabulls Housing Finance was from 52% to 56%. Around two-thirds of the total incremental loans are from the home loan segment. And particularly in home loan, e-home loans (20% contributors in lending) and smart city loans 7% contributors in Lenduare key driving factors in the growth.
Substantially, the growth has been 32% in the book, among which the growth in home loans is 36% and on the other hand, the growth in loans against property and corporate loans, both, is 18-19%.

Cities which witnessed the highest demand
The cities at the top in the financial year of 2017 are Pune, Chennai, Mumbai, Hyderabad and Bangalore. But, since April, the market is NCR is also noticed to be coming back on track. And it also expected that the NCR market will witness a high amount of rise and improvement, which it did not witness in the previous two years.

The effect of demonetization on the business of Indiabulls
The move of demonetization was just a temporary phase, whose effects are over now. Demonetization hasn’t reshaped many things. Therefore, if the focus is on the portfolio, the liquidity escalated after demonetization and rates came down.
Thanks to the Pradhan Mantri Awas Yojana (PMAY), the homebuyers have gained motivation to buy new homes and are looking out to buy new properties.

The status of the portfolio of loan against property
Almost 99% of the company’s portfolios have maintained themselves in the top three ratings. The company did not want to do any correction, only a substantiation was needed by a third party.