Shares of Indiabulls Housing Finance jumped over 15 per cent after the RBI announced measures for the stressed real estate sector. The stock of Indiabulls Housing Finance settled at Rs 319.75, up 43.05, or15.56 per cent on NSE. To give boost to the real estate sector, RBI said, it has been decided to permit extension of date of commencement of commercial operations (DCCO) of project loans for commercial real estate, delayed for reasons beyond the control of promoters, by another one year without downgrading the asset classification, in line with treatment accorded to other project loans for non-infrastructure sector. The 30-share BSE Sensex settled 163.37 points, or 0.40 per cent, higher at 41,306.03. It hit an intraday high of 41,405.43. Similarly, the broader NSE Nifty rose 48.80 points, or 0.40 per cent, to 12,137.95.
“RBI’s decision to grant extension of date of commencement of commercial operations for project loans for commercial real estate would complement the government’s initiatives for the real estate sector. The positive output performance of core sectors and thrust to retail loans for specific sectors like auto, residential real estate, and MSME’s will certainly uplift the confidence and push the demand –consumption economics”, Niranjan Hiranandani, President – Assocham & NAREDCO, said.
“The decisions taken by the Reserve Bank of India (RBI) today clearly speak of its intention to improve credit flows and boost consumption in auto, MSME and housing sectors. The decision to permit extension of date of commencement of commercial operations (DCCO) of project loans for commercial real estate by another year without downgrading the asset classification is a much needed relief for real estate developers and is a big positive for housing finance companies”, Ravindra Sudhalkar, CEO, Reliance Home Finance, said.
Indiabulls Housing Finance on Wednesday posted a fall of 44.02 per cent in the consolidated net profit to Rs 551.70 crore in Q2FY20. During the corresponding period of the last fiscal, the company recorded a net profit of Rs 985.51 crore. In the October-December quarter, the company’s total income reduced by 24.75 per cent to Rs3,369.76 crore as against Rs 4,477.97 crore in the year-ago period.