Mumbai-based Indiabulls Housing Finance Limited has raised nearly Rs 2,000 crore from leading public sector banks (PSBs) through non-convertible debentures (NCDs) in the last two months. As a matter of fact, only PSBs extended their helping hands in this fund raise.
The latest fund mobilisation was conducted by India’s largest bank, the State Bank of India (SBI), for Rs 250 crore on private placement basis. The NCDs will be active for 548 days with the redemption date being December 2021. The rate of interest is fixed at 9 percent. In the raise, Bank of Baroda has subscribed the highest amount at Rs 730 crore followed by Indian Bank with Rs 325 crore.
Public lenders Canara Bank and Union Bank of India have invested Rs 200 crore each. Other state-owned who have invested in the non-convertible debentures of the housing finance company are Punjab National Bank and Central Bank of India.
These unsecured NCDs are component of the firm’s outstanding borrowings worth Rs 33,500 crore plus. The bank loan borrowings are also around the same amount.