Indiabulls Housing Finance targets 15% growth in FY25 asset base

Banga is confident of achieving return on assets (RoA) of more than 3% by the end of the financial year 2026 and return on equity (RoE) of over 15% by financial year 2027.

Speaking to CNBC-TV18, Banga said, “The RoA had declined from being north of 3% to a low of about 1.2%. It has inched back up to 1.6%. We expect that every six months, we should be able to grow the return on equity (RoE) by about 20 basis points, which should take RoA to north of 3% by fiscal year 2026.”

In the third quarter of FY24, disbursements declined 21% year-on-year (YoY). Net Interest Income (NII) also slipped 28% YoY to ₹350 crore.

Moody’s recently upgraded the ratings for Indiabulls Housing Finance.

Moody’s attributed this upgrade partly to the rights issue in February 2024, which is anticipated to bolster the Total Capital to Total Managed Assets (TCE/TMA) ratio and the Capital to Risk (Weighted) Assets Ratio (CRAR).

"The rating upgrade is going to more be impactful on any future international issuances we do. We have, in the past, raised almost around 25,000 crores internationally in dollar denominated loans bonds etc. We will continue to evaluate that market and based on opportunity see if we can raise some liquidity there as well," Banga said.

Indiabulls has a market capitalisation of ₹13,218.67crore. The stock has gained 81% over the last year.