DHFL Gets $12.5 Million IFC Loan

Mumbai, Nov 10: | Updated: Nov 11 2003, 05:30am hrs
Dewan Housing Finance Corporation Led (DHFL), on Monday received a term loan of $12.50 million from the International Finance Corporation (IFC-Washington) 127 an arm of the World Bank. The loan which has a tenure of eight years will carry an interest of 6.08 per cent.

DHFL in its release said that the loan will enable the company to fund the expansion of its housing finance operations. The companys focus on semi-urban and rural areas as well as lower income segments within Indias growing housing finance market also fits well with IFCs loan policies.

Said DHFL managing director Kapil Wadhawan: DHFL is increasingly focused in the semi-urban and rural parts of the country and expects to see greater volumes in these areas. It is also expanding aggressively by opening service centres in smaller towns, which is the fastest growing segment for housing finance, he added.

Earlier this year, DHFL acquired an 85.91 per cent equity stake in Vysya Bank Housing Finance Ltd thus increasing total asset base by Rs 200 crore and homeloan customer base by around 7,500.

Meanwhile, the Credit Rating and Information Services of India Ltd has assigned P1+ rating to DHFLs Rs 50 crore short-term debt. This reflects good asset quality, as evident in its low gross NPA of 1.03 per cent as on March 31, comfortable Tier-I capital adequacy ratio of 19.09 per cent as on March 31 and moderate earnings profile.