Indiabulls Housing Finance announced its earnings late last week, posting a 3.3% growth in profits to INR 2.82bn ($38mn). It’s net interest income rose to INR 7.65bn (103mn) and cost of funds eased by 20bp to 8.4%. Gross non-performing assets (GNPA) rose to 2.86% from 2.2% in the same quarter last year. However, net NPAs reduced to 1.55% from 1.63%. In its earnings release, the company announced that it will be setting up a reserve fund to repay its $350mn offshore dollar bonds maturing in May 2022. It will transfer 75% of the total bond proceeds in multiple stages to the debt repayment trust that will be managed by IDBI Trustee. The first tranche of INR 6.82bn ($92mn) representing 25% of the dollar bond has already been paid to the trust.
Indiabulls’ 6.375% bonds due 2022 rose 1.75 points to end the week at 97.5 yielding 9.68%.
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