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Indiabulls Housing Finance Limited announces its Q3 FY21 Financial Results - Q3 FY21 PAT of ₹ 329 Cr

Mumbai, 12th February 2021: The Board of Directors of Indiabulls Housing Finance Ltd. (IBH) announced its unaudited financial results for the quarter ended December 31st 2020.

The numbers are reported under Indian Accounting Standards [IndAS].

IBH Key Financials: 


Q3 FY20-21

Q2 FY20-21

Q1 FY20-21

Q4 FY19-20

Loan Book










Tier 1





Net Gearing





Net Interest Income
















Profit After Tax for Q3FY21 is ₹ 329 Cr, up 2.0% quarter-on-quarter from Q2FY21

Key Ratios:


(₹ Cr)




CRAR [%]




Tier 1 [%]




Net Gearing




GNPA [%]




Cost to Income Ratio [%]




Building Blocks for Enhanced Portfolio Granularity

Strategic Area

Key Milestones

Targeted Timeline

Wholesale Book Consolidation

AIF platform for incremental wholesale lending with an institutional investor

Sep 2021

Reduce wholesale book by 33% by Mar 22 and 50% by Dec 22

Dec 2022

Expanding Reach, Increasing Customer Base

Add 50 technology-enabled smart branches in Tier 3 & 4 locations to diversify customer base and widen range of ticket sizes

Sep 2021

Increase retail customers to 1.5x times by Mar 23 and to 2x times by Mar 25

Mar 2025

Team @IBH

Increase sales team’s size to do ₹ 1,500 Cr of monthly retail disbursals by Sep 21 and ₹ 2,000 Cr by Mar 22

Mar 2022

Co-Lending Partnerships

Scale up co-lending tie-ups with 5 partners  for HL and LAP – integration/ business execution is underway

Jun 2021

Reach monthly disbursal run-rate of ₹ 1,500 per quarter

Sep 2021

Create single technology infrastructure as interface for all co-lending partners

Sep 2021


Expand Home Loan Technology Platform to cover the entire residential real estate ecosystem for target age group of 25 to 55 years – renting, sale/purchase, resale/upgrade of houses to generate a ready customer base for home loans and generate fee income from other services

Sep 2021

Funding flow has normalized:

Access to funding has normalised. The Company’s funding costs have moderated with cost of funds on book now down to 8.5%. This has helped expand the Company’s spread on book to 2.6%. In addition to availing funds at decreasing costs, the Company is also raising large sums of long term monies, of over 5 years tenure, which bodes well for its ALM. Overall, in FY21, the Company has raised a total of ₹ 28,119 Cr through equity, bank lines, bonds and loan sell downs.  

Asset Quality:

The Company’s reported Gross NPAs as at end of December 2020 are at 1.75%. Without the Supreme Court directed standstill on asset classification, the proforma Gross NPAs would be 2.44% as at end of December 2020, compared with 2.21% at the end of Sep 2020. Had the Company not chosen to de-grow its book in the past 1 year, the proforma Gross NPAs of 2.44% would have been at 2.06%. 

On Stage 3 assets, the Company has a provision coverage ratio of 40%. IBH has total provisions of ₹ 2,418 Cr on balance sheet which is equivalent to 3.4% of its loan book. Including accelerated write-offs effected by the Company [as IndAS does not permit creation of adhoc provisions) total provisions to loan book would be 5.0%.

Business Growth:

After going through a period of consolidation the Company has turned the corner and is now back on the path of growth. Net retail asset growth which started last quarter continued its momentum.  

IBH’s disbursals have rebounded, with total disbursals in Q3FY21 of ₹ 3,458 Cr of which retail loan disbursals constituted 75% of the total. The Company is also seeing good traction in loan co-lending, with, disbursals reaching a monthly run rate of ₹ 200 Cr in January. The Company expects active sourcing to begin next quarter with 3 other co-lending tie-ups which are into the final stages of integration. Consequently, we expect the monthly disbursal run rate through co-lending to then reach ₹ 500 Cr for FY22 and ₹ 1,000 Cr for FY23.

We continue to de-risk our developer loan book through refinance and securitization of loans. We continue to see strong traction in developer loan refinance and are in talks with multiple financial institutions for sell down of this book. By March 2021, we are on track to generate liquidity of a further ₹ 3,500 Cr through refinance/ securitization of the developer loan book.

On developer loans sourcing, we are in talks with 2 large real estate focused funds to set-up an investment platform. The talks have progressed well, and we expect to set up an investment platform by the end of Q2FY22. Once in place, we expect to disburse roughly ₹ 1,000 - ₹ 2,000 Cr monthly through this platform.

Appointment of Mr. Dinabandhu Mohapatra, ex-MD & CEO of Bank of India on the Board

Mr. Dinabandhu Mohapatra, ex-MD & CEO of Bank of India, with over 35 years of banking experience has been inducted into the Board.

Mr. Mohapatra has multi-dimensional banking experience across banking verticals, and will thus help guide in all facets of the Company’s operations to successfully achieve its targeted growth.

Uptick in House Sales:

Affordability levels are at their best in over 2 decades on the back of low property price inflation and high wage inflation. This is further boosted by the prevalent benign interest rates. Supportive government policies like stamp duty cut by the state of Maharashtra, reduction in circle rates by 20% by the state of Delhi, announcement by the honourable finance minister to extend the tax benefits, by 1 year, for construction of affordable housing to builders and purchase of affordable segment houses by consumers and many more will make sure that the residential real estate industry is firing on all 3 cylinders of demand, supply and financing. 

As per a Knight Frank report, housing sales volume in Q4CY2020 has already reached 100% of pre-COVID 2019 quarterly average. As per an estimation by Jefferies, residential sales in 2021 are expected to exceed 2019 levels by ~10%, nearly doubling year-on-year, as the property cycle picks up. Unsold inventory too is on a decline having fallen by 9% YoY in Q4CY2020 and is expected to fall to 8 year lows by the end of 2021. Q4CY2020 also saw increase in residential project launches by 77% Q-o-Q which launches in premium segment accounting for 9% of the total launches. With the ongoing momentum in real estate, Jefferies expects launches to nearly double in 2021 year-on-year. 

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