Share price of Indiabulls Housing Finance jumped 20 per cent to hit upper circuit of Rs 321 apiece on Monday morning as investors came to know that the Reserve Bank of India in a affidavit to the Delhi High Court has acknowledged that it found no violations of any nature or kind regarding Indiabulls Housing Finance.Indiabulls Housing Finance stock price has gained close to 2 per cent since the start of this year.
Indiabulls Housing Finance, which is India’s second largest housing finance company, in a filling to the market regulator said, “RBI submitted its affidavit in the court in the PIL matter, the RBI affidavit has highlighted the details of loans taken by the borrowers mentioned in PIL and the repayment dates of such loans, the RBI affidavit has mentioned no violations of any nature or kind regarding Indiabulls Housing Finance.”
According to the Indiabulls Housing Finance, the Reserve Bank of India in its affidavit said,“The Writ Petition is not maintainable either on facts or law as against this Respondent, the Reserve Bank of India, and hence liable to be dismissed as such.”
Indiabulls Housing Finance shares have seen a mixed reaction on the markets this year. Shares of the housing finance company fell 2 per cent in January and a 16 per cent after Finance Minister Nirmala Sitharaman’s Budget presentation on February 1. But, after the Reserve Bank of India announced measures for the stressed real estate sector the share price gained 15 per cent. However, that surge was short-lived after clarity emerged that only commercial banks could reap the benefits of RBI’s extension of date of commencement of commercial operations (DCCO) of project loans for commercial real estate.
Indiabulls Housing Finance posted a profit after tax of Rs 552 crore in Q3 of this fiscal, a drop from Rs 710 crores of profit in the previous quarter. Gross non-performing assets of the company stood at 1.94 per cent of total loan assets, while net NPAs stood at 1.39 per cent.
Domestic benchmark indices are up today. S&P BSE Sensex was trading at 38,969 points or 672 points up while the NSE Nifty 50 gained 1.68 per cent or 188 points to trade at 11,390 points.