Indiabulls Housing Finance books Rs 500 crore of co-lending business
At the start of FY22, the mortgage lender tweaked the business model to incrementally focus on the co-lending space by sharing risks and loan book with other banks or housing finance companies.
In the first five months of this fiscal year, Indiabulls Housing Finance (IBHFL) has booked business worth Rs 500 crore through the co-lending model, with plans to increase this to Rs 300 crore in September.
The mortgage lender altered its business model at the start of FY22 to focus more on co-lending by pooling risks and loan books with other banks or home finance firms (HFCs).
It now has partnerships with five financial institutions: HDFC Bank, Canara Bank, the Reserve Bank of India, YES Bank, and RBL Bank.
The operating set-up for the co-lending business has improved over the months, according to Gagan Banga, vice-chairman of IBHFL. In addition, beginning this month, the organization will increase its business volume. It will add another partnership to its loan against property (LAP) business, bringing the total number of blocks to six.
IBHFL sources loans using a cooperative credit policy in which 80 percent of the loans are on the balance sheet of the co-lending partner and 20 percent are on IBHFL’s