Thursday, January 21, 2010
Banks pulled up for fine on home loan pre-pay
Banks pulled up for fine on home loan pre-pay
Times of India, January 21, 2010, Page 25
New Delhi: Competition watchdog CCI has asked about two dozen banks and housing finance companies, including HDFC, ICICI Bank, and LICHF, to explain their imposing penalty on borrowers for pre-payment of home loans. The commission, according to official sources, has sent notices to major home loan players after examining a report of director general (investigations) which found evidences against banks for misusing their dominant position and entering into anti-competitive agreements.
"We have sent showcause notices to 20 banks including ICICI Bank, HDFC, LIC Housing Finance, Deutsche Postbank and the Indian Banks' Association. We have also sensitised RBI on how the practice of charging pre-payment penalty is hurting consumers," a senior CCI official said. The commission was scrutinising a complaint filed by a customer against the practice by these banks.
Spokespersons of ICICI Bank, HDFC and LIC Housing Finance could not be reached for comments. The move gives hopes to thousands of borrowers of foreclosing their housing loans without paying penalty. If the penalty is lifted, it may also lead to borrowers' shifting their credit to those lenders offering lower interest.
The CCI, official said, could also penalise lenders for adopting such practices to discourage customers from pre-paying home loans or the the practice could be banned across the industry. HDFC, for example, currently levies pre-payment charges ranging between 0% and 2%. PTI
Times of India, January 21, 2010, Page 25
New Delhi: Competition watchdog CCI has asked about two dozen banks and housing finance companies, including HDFC, ICICI Bank, and LICHF, to explain their imposing penalty on borrowers for pre-payment of home loans. The commission, according to official sources, has sent notices to major home loan players after examining a report of director general (investigations) which found evidences against banks for misusing their dominant position and entering into anti-competitive agreements.
"We have sent showcause notices to 20 banks including ICICI Bank, HDFC, LIC Housing Finance, Deutsche Postbank and the Indian Banks' Association. We have also sensitised RBI on how the practice of charging pre-payment penalty is hurting consumers," a senior CCI official said. The commission was scrutinising a complaint filed by a customer against the practice by these banks.
Spokespersons of ICICI Bank, HDFC and LIC Housing Finance could not be reached for comments. The move gives hopes to thousands of borrowers of foreclosing their housing loans without paying penalty. If the penalty is lifted, it may also lead to borrowers' shifting their credit to those lenders offering lower interest.
The CCI, official said, could also penalise lenders for adopting such practices to discourage customers from pre-paying home loans or the the practice could be banned across the industry. HDFC, for example, currently levies pre-payment charges ranging between 0% and 2%. PTI
Banks get notices for penalty on home loan pre-payment
Banks get notices for penalty on home loan pre-payment
Business Standard, January 21, 2010, Section II, Page 14
Press Trust of India, New Delhi
The Competition Commission of India (CCI) has asked about two dozen banks and housing finance companies, including SBI, HDFC, ICICI Bank and LICHF, to explain their move of imposing penalty on borrowers for pre-payment of home loans.
The Commission, according to official sources, has sent notices to major home loan players after examining a report of Director General (Investigations) which found evidences against banks, which also include public sector lenders Punjab National Bank and Bank of Baroda, for misusing their dominant position and entering into anti-competitive agreements. "We have sent showcause notices to 20 banks, including ICICI Bank, HDFC, LIC Housing Finance, Deutsche Postbank and the Indian Banks' Association. We have also sensitised the Reserve Bank on how the practice of charging pre-payment penalty is hurting consumers," a senior CCI official said.
The competition watchdog was scrutinizing a customer complaint against the practice. However spokespersons of ICICI Bank, HDFC and LICHF could not be reached for comments.
The move gives hope to thousands of borrowers who want to close their home loans without paying penalty. If the penalty is lifted, it may also lead to borrowers’ shifting their accounts to lenders offering lower interest rates. The commission could peanlise the lenders for adopting such practices or the practice could be banned across the industry, according to the official.
Market leader HDFC, for example, currently levies pre-payment charges ranging between zero and two per cent of the amount pre-paid by a borrower.
The pre-payment penalties are imposed to discourage customers from retiring their debts before the scheduled date. Some lenders charge only if the customer seeks refinancing the loan by taking money at a lower rate from some other entity.
Housing Loan outstanding at the end of March 2009, rose to Rs 2,63,235 crore, compared to Rs 2,52,932 crore at the end of 2007-08.
Business Standard, January 21, 2010, Section II, Page 14
Press Trust of India, New Delhi
The Competition Commission of India (CCI) has asked about two dozen banks and housing finance companies, including SBI, HDFC, ICICI Bank and LICHF, to explain their move of imposing penalty on borrowers for pre-payment of home loans.
The Commission, according to official sources, has sent notices to major home loan players after examining a report of Director General (Investigations) which found evidences against banks, which also include public sector lenders Punjab National Bank and Bank of Baroda, for misusing their dominant position and entering into anti-competitive agreements. "We have sent showcause notices to 20 banks, including ICICI Bank, HDFC, LIC Housing Finance, Deutsche Postbank and the Indian Banks' Association. We have also sensitised the Reserve Bank on how the practice of charging pre-payment penalty is hurting consumers," a senior CCI official said.
The competition watchdog was scrutinizing a customer complaint against the practice. However spokespersons of ICICI Bank, HDFC and LICHF could not be reached for comments.
The move gives hope to thousands of borrowers who want to close their home loans without paying penalty. If the penalty is lifted, it may also lead to borrowers’ shifting their accounts to lenders offering lower interest rates. The commission could peanlise the lenders for adopting such practices or the practice could be banned across the industry, according to the official.
Market leader HDFC, for example, currently levies pre-payment charges ranging between zero and two per cent of the amount pre-paid by a borrower.
The pre-payment penalties are imposed to discourage customers from retiring their debts before the scheduled date. Some lenders charge only if the customer seeks refinancing the loan by taking money at a lower rate from some other entity.
Housing Loan outstanding at the end of March 2009, rose to Rs 2,63,235 crore, compared to Rs 2,52,932 crore at the end of 2007-08.
High inflation, a concern: Pranab
High inflation, a concern: Pranab
The Hindu Business Line, January 21, 2010, Page 21
Our Bureau, New Delhi
The Finance Minister, Mr Pranab Mukherjee, today said that high inflation is a matter of concern and hinted that more steps are on the cards to check rising prices.
“It (inflation) is a matter of concern. Cabinet Secretary has held a meeting and certain steps are being taken,” Mr Mukherjee told reporters on the sidelines of rural development conference here today.
Driven by high food prices, India's wholesale price index (WPI) based inflation surged to 7.31 per cent in December from 4.78 per cent in the previous month.
The Committee of Secretaries, headed by the Cabinet Secretary, Mr K.M. Chandrasekhar, had on Tuesday reviewed the situation on prices as well as availability of essential commodities. Annual food inflation for the week ended January 2 stood at 17.28 per cent, latest official data showed.
Mr Mukherjee pointed out that the Government had already liberalised imports to meet shortage of essential commodities. “We have also ensured availability of wheat and rice in the market by offloading through FCI,” he said.
The Finance Minister also said that the Government was constantly monitoring the price situation of essential commodities.
The Hindu Business Line, January 21, 2010, Page 21
Our Bureau, New Delhi
The Finance Minister, Mr Pranab Mukherjee, today said that high inflation is a matter of concern and hinted that more steps are on the cards to check rising prices.
“It (inflation) is a matter of concern. Cabinet Secretary has held a meeting and certain steps are being taken,” Mr Mukherjee told reporters on the sidelines of rural development conference here today.
Driven by high food prices, India's wholesale price index (WPI) based inflation surged to 7.31 per cent in December from 4.78 per cent in the previous month.
The Committee of Secretaries, headed by the Cabinet Secretary, Mr K.M. Chandrasekhar, had on Tuesday reviewed the situation on prices as well as availability of essential commodities. Annual food inflation for the week ended January 2 stood at 17.28 per cent, latest official data showed.
Mr Mukherjee pointed out that the Government had already liberalised imports to meet shortage of essential commodities. “We have also ensured availability of wheat and rice in the market by offloading through FCI,” he said.
The Finance Minister also said that the Government was constantly monitoring the price situation of essential commodities.
No PAN card may cost 20% more tax
No PAN card may cost 20% more tax
Financial Express, January 21, 2010, Page 2
fe Bureau, New Delhi
If you don’t have a permanent account number (PAN), be prepared for paying higher income tax at source from the next fiscal. According to a government notification, “Tax at higher of the prescribed rate or 20% will be deducted on all transactions liable to TDS, where the PAN of the deductee is not available,” and the new provision will become applicable with effect from April 1, 2010.
All assessees will have to quote their PAN in their correspondences, bills, vouchers and other documents sent to each other. The finance ministry notification said all deductors should intimate their deductees to obtain and furnish their PAN so as to avoid TDS at a higher rate. Also, all non-residents in respect of payments or remittances liable to TDS will comply with the new norm. “All deductees, including non-residents having transactions in India liable to TDS, are advised to obtain PAN by March 31, 2010 and communicate the same to their deductors before tax is actually deducted on transactions after that date,” the ministry said.
Assessees who do not have PAN will also not get certificate from assessing officer about lower or no tax liability.
Financial Express, January 21, 2010, Page 2
fe Bureau, New Delhi
If you don’t have a permanent account number (PAN), be prepared for paying higher income tax at source from the next fiscal. According to a government notification, “Tax at higher of the prescribed rate or 20% will be deducted on all transactions liable to TDS, where the PAN of the deductee is not available,” and the new provision will become applicable with effect from April 1, 2010.
All assessees will have to quote their PAN in their correspondences, bills, vouchers and other documents sent to each other. The finance ministry notification said all deductors should intimate their deductees to obtain and furnish their PAN so as to avoid TDS at a higher rate. Also, all non-residents in respect of payments or remittances liable to TDS will comply with the new norm. “All deductees, including non-residents having transactions in India liable to TDS, are advised to obtain PAN by March 31, 2010 and communicate the same to their deductors before tax is actually deducted on transactions after that date,” the ministry said.
Assessees who do not have PAN will also not get certificate from assessing officer about lower or no tax liability.
Realty builds on revival, brick by brick
Realty builds on revival, brick by brick
Financial Express, January 21, 2010, Page 14
Nikita Upadhyay
The realty sector, which was hit by the slowdown in purchases, could well be at the cusp of a revival, highlight December 2009 earnings. Industry analysts reckon that signs of revival in property volumes are evident. The harbinger could well be price rises in certain locations in Mumbai, where developers have sought prices that match the March 2008 peak levels.
However, a Motilal Oswal Securities (MOSL) report suggests that volumes are unlikely to surge in the near term unless prices moderate by 5-8% from the current level. Several suburban projects in Mumbai have been delayed due to lack of approvals and developers have been faced with pressure from customers demanding refunds. Home buyers are shifting focus to ready-to-move-in projects or projects nearing completion, says the report.
Even with lower volumes, sales seem to be flowing at a steady pace in the National Capital Region (NCR), despite price increases. “Prices increased by 5-10% across key projects since August, 2009. Prices in some key areas in South Delhi have moved to new highs. Demand from non-resident Indians is a demand driver in the NCR,” adds the report.
South India also witnessed some recovery with sales gaining momentum in Bangalore and Chennai. Recovery in Bangalore picked up steam as the December, 2009, quarter progressed. “Sales volumes have gained momentum over the past few months, with transactions having increased by about 40% on a yearly basis. Momentum of new launches and sales continues, however, due to excessive supply and high inventories, prices are unlikely to increase in the near term,” pointed out the report.
The December, 2009, quarter has also seen a strong momentum in launches. According to Jones Lang LaSalle Meghraj (JLLM), while new launches from January to March, 2009, in seven key metro cities totalled to 24,400 units, new launches in April to June, 2009, stood at 42,458 units. Tier-1 cities of Delhi and Mumbai accounted for almost 64% of the launches.
The market has started to re-look at realty stocks closely. The central bank’s policy was a cautious one. However, in the current year the tide seems to have changed and the real-estate companies are no longer pariahs. Godrej Properties managed to raise Rs 500 crore and a decent listing gain of around 15%.
According to ICICI Securities, revival in equity and real-estate markets may lead developers, including Emaar MGF, Lodha Developers, DB Realty, Sahara Prime City and Ambience, to target primary markets. “These firms could potentially raise Rs 12,000 crore in March, 2009, quarter. We believe with recent price correction in listed real estate companies, they offer a better opportunity for investment at current prices,” the report says.
As the recovery in the residential properties saw strong volume and price momentum, the same for the commercial and retail vertical is daunting. “While leasing is yet to pick up strongly, the commercial and retail verticals are set to revive over next 6-9 months, noted the MOSL report.
Another report from ICICI Securities mentions that both commercial and retail segments continue to lag. “We do not expect any pick-up in the year 2009-10. We believe the uptrend will continue, gaining from increase in housing demand, affordable home loan interest rates and timely execution,” said the report.
Financial Express, January 21, 2010, Page 14
Nikita Upadhyay
The realty sector, which was hit by the slowdown in purchases, could well be at the cusp of a revival, highlight December 2009 earnings. Industry analysts reckon that signs of revival in property volumes are evident. The harbinger could well be price rises in certain locations in Mumbai, where developers have sought prices that match the March 2008 peak levels.
However, a Motilal Oswal Securities (MOSL) report suggests that volumes are unlikely to surge in the near term unless prices moderate by 5-8% from the current level. Several suburban projects in Mumbai have been delayed due to lack of approvals and developers have been faced with pressure from customers demanding refunds. Home buyers are shifting focus to ready-to-move-in projects or projects nearing completion, says the report.
Even with lower volumes, sales seem to be flowing at a steady pace in the National Capital Region (NCR), despite price increases. “Prices increased by 5-10% across key projects since August, 2009. Prices in some key areas in South Delhi have moved to new highs. Demand from non-resident Indians is a demand driver in the NCR,” adds the report.
South India also witnessed some recovery with sales gaining momentum in Bangalore and Chennai. Recovery in Bangalore picked up steam as the December, 2009, quarter progressed. “Sales volumes have gained momentum over the past few months, with transactions having increased by about 40% on a yearly basis. Momentum of new launches and sales continues, however, due to excessive supply and high inventories, prices are unlikely to increase in the near term,” pointed out the report.
The December, 2009, quarter has also seen a strong momentum in launches. According to Jones Lang LaSalle Meghraj (JLLM), while new launches from January to March, 2009, in seven key metro cities totalled to 24,400 units, new launches in April to June, 2009, stood at 42,458 units. Tier-1 cities of Delhi and Mumbai accounted for almost 64% of the launches.
The market has started to re-look at realty stocks closely. The central bank’s policy was a cautious one. However, in the current year the tide seems to have changed and the real-estate companies are no longer pariahs. Godrej Properties managed to raise Rs 500 crore and a decent listing gain of around 15%.
According to ICICI Securities, revival in equity and real-estate markets may lead developers, including Emaar MGF, Lodha Developers, DB Realty, Sahara Prime City and Ambience, to target primary markets. “These firms could potentially raise Rs 12,000 crore in March, 2009, quarter. We believe with recent price correction in listed real estate companies, they offer a better opportunity for investment at current prices,” the report says.
As the recovery in the residential properties saw strong volume and price momentum, the same for the commercial and retail vertical is daunting. “While leasing is yet to pick up strongly, the commercial and retail verticals are set to revive over next 6-9 months, noted the MOSL report.
Another report from ICICI Securities mentions that both commercial and retail segments continue to lag. “We do not expect any pick-up in the year 2009-10. We believe the uptrend will continue, gaining from increase in housing demand, affordable home loan interest rates and timely execution,” said the report.
Chinese banks told to curb lending after concerns of overheating
Chinese banks told to curb lending after concerns of overheating
Financial Express, January 21, 2010, Page 20
Bloomberg, Shanghai, Beijing
Chinese authorities ordered some big banks to curb lending for the rest of January, intensifying their efforts to prevent the world’s third-largest economy from overheating.
The news on Wednesday weighed down stocks in Asia and Europe and oil fell toward $78 a barrel on fears that demand in China, the world economy’s main source of growth, may now slow down as authorities tighten policy.
China’s central bank told some banks, including Citic Bank and Everbright Bank, to increase their reserve requirement ratio by half a percentage point, banking sources told Reuters.
A surge of new lending in January has triggered a series of intensifying steps by authorities to rid the financial system of excess cash that can fuel inflation and asset bubbles. Last week, the central bank raised bank reserve requirements for the first time since June 2008. “The question now is not whether we need to control credit and money supply but when and how to control it,” said Chen Xingdong, chief China economist at BNP Paribas in Beijing. “Policy will not be a straight line.”
Chinese banks lent 1.1 trillion yuan ($161 billion) in the first half of January, sources said, citing central bank data. That puts total new loans in January on track for the highest since June 2009, when banks doled out 1.5 trillion yuan in new lending.
The top four banks together lent more than 500 billion yuan during the same period, the sources said. Last year, Chinese banks lent a record 9.6 trillion yuan. The surge, combined with Beijing’s 4 trillion yuan stimulus plan, helped kick-start the economy after a slump, but aroused investor fears of overheating. Data due on Thursday is expected to again show double-digit quarterly GDP growth.
Zhu Baoliang, chief economist at a government think tank, said consumer inflation has accelerated a lot in December and would likely push policymakers to raise interest rates by the middle of the year. There were conflicting accounts of what exactly authorities would do. The official China securities journal cited unidentified banking sources as saying that some banks had been told to stop all lending for the rest of the month. However, a source at the China Banking Regulatory Commission, who spoke on condition of anonymity, said the CBRC had not ordered banks to halt lending for the rest of January, though it continued to crack down on lenders that do not meet criteria.
“It is our long-standing principle that banks that do not meet regulatory requirements must not lend any more,” the source said. In any case, after last week’s increase in bank reserve requirements, a rise in 1-year bill yields, and steps to root out speculation in the property market, the message from authorities is clear: fast growth in credits and money supply will not be tolerated because the stakes are too high.
Financial Express, January 21, 2010, Page 20
Bloomberg, Shanghai, Beijing
Chinese authorities ordered some big banks to curb lending for the rest of January, intensifying their efforts to prevent the world’s third-largest economy from overheating.
The news on Wednesday weighed down stocks in Asia and Europe and oil fell toward $78 a barrel on fears that demand in China, the world economy’s main source of growth, may now slow down as authorities tighten policy.
China’s central bank told some banks, including Citic Bank and Everbright Bank, to increase their reserve requirement ratio by half a percentage point, banking sources told Reuters.
A surge of new lending in January has triggered a series of intensifying steps by authorities to rid the financial system of excess cash that can fuel inflation and asset bubbles. Last week, the central bank raised bank reserve requirements for the first time since June 2008. “The question now is not whether we need to control credit and money supply but when and how to control it,” said Chen Xingdong, chief China economist at BNP Paribas in Beijing. “Policy will not be a straight line.”
Chinese banks lent 1.1 trillion yuan ($161 billion) in the first half of January, sources said, citing central bank data. That puts total new loans in January on track for the highest since June 2009, when banks doled out 1.5 trillion yuan in new lending.
The top four banks together lent more than 500 billion yuan during the same period, the sources said. Last year, Chinese banks lent a record 9.6 trillion yuan. The surge, combined with Beijing’s 4 trillion yuan stimulus plan, helped kick-start the economy after a slump, but aroused investor fears of overheating. Data due on Thursday is expected to again show double-digit quarterly GDP growth.
Zhu Baoliang, chief economist at a government think tank, said consumer inflation has accelerated a lot in December and would likely push policymakers to raise interest rates by the middle of the year. There were conflicting accounts of what exactly authorities would do. The official China securities journal cited unidentified banking sources as saying that some banks had been told to stop all lending for the rest of the month. However, a source at the China Banking Regulatory Commission, who spoke on condition of anonymity, said the CBRC had not ordered banks to halt lending for the rest of January, though it continued to crack down on lenders that do not meet criteria.
“It is our long-standing principle that banks that do not meet regulatory requirements must not lend any more,” the source said. In any case, after last week’s increase in bank reserve requirements, a rise in 1-year bill yields, and steps to root out speculation in the property market, the message from authorities is clear: fast growth in credits and money supply will not be tolerated because the stakes are too high.
HDFC net up 23% on NPA dip, better NIM
HDFC net up 23% on NPA dip, better NIM
The Economic Times, January 21, 2010, Page 10
Net Profit For April-December Stands At Rs 1,900 Cr
Our Bureau MUMBAI
THE country’s largest mortgage financier, Housing Development Finance Company (HDFC), reported a 23% jump in profits for the third quarter as margins improved and bad loans fell. For the quarter ended December
2009, HDFC reported a net profit of Rs 671 crore, an increase of 23% over the net profit of Rs 547 crore in the corresponding quarter last year.
The corporation’s net profits for the nine-month period ended December 2009 stood at Rs 1,900 crore up 23% from Rs 1,549 crore in the corresponding period last year.
The housing finance company was confident of maintaining its margins despite the introduction of teaser loans where the interest is 8.25% in the first year. “We expect to do loans worth Rs 3,500-4,000 crore until the end of January 2009 under the new scheme. We are able to extend loans at this rate because we have managed to raise loans at a cost of around 6.1%, which enables us to still earn a spread of around 2.2%,” said HDFC vice-chairman and CEO Keki Mistry. The special scheme is due to end in January. However, the corporation is likely to review the closure date closer to the month end.
Loan approvals during the ninemonth period ending December 31, 2009, amounted to Rs 41,110 crore against Rs 33,820 crore in the corresponding period last year, representing a growth of 22%. Loan disbursements during the nine-month period ending December 31, 2009, amounted to Rs 33,527 crore against Rs 27,211 crore during the corresponding period last year, representing a growth of 23%. The spread on loans over the cost of borrowings for the nine-month period ended December 31, 2009, stood at 2.25% compared with 2.21% for the year ended March 31, 2009.
HDFC’s net interest margins improved even as it dropped rates on home loans. This was because the institution took advantage of the surplus liquidity to raise wholesale funds from banks at cheap rates. Net interest income from the quarter was up 14% at Rs 1,001 crore compared with Rs 877 crore in the corresponding quarter last year. The net interest income for the nine-month period was Rs 2,778 crore up 13.1% from Rs 2,457 in the previous year. The net interest margin improved to 4.27% from 4.19% last year.
Mr Mistry said he expects some tightening by RBI in its monetary policy in January. However, banks were unlikely to hike lending rates because of ample liquidity in the system. “The only way rates could go up is if demand for credit by corporates picks up,” said Mr Mistry.
The Economic Times, January 21, 2010, Page 10
Net Profit For April-December Stands At Rs 1,900 Cr
Our Bureau MUMBAI
THE country’s largest mortgage financier, Housing Development Finance Company (HDFC), reported a 23% jump in profits for the third quarter as margins improved and bad loans fell. For the quarter ended December
2009, HDFC reported a net profit of Rs 671 crore, an increase of 23% over the net profit of Rs 547 crore in the corresponding quarter last year.The corporation’s net profits for the nine-month period ended December 2009 stood at Rs 1,900 crore up 23% from Rs 1,549 crore in the corresponding period last year.
The housing finance company was confident of maintaining its margins despite the introduction of teaser loans where the interest is 8.25% in the first year. “We expect to do loans worth Rs 3,500-4,000 crore until the end of January 2009 under the new scheme. We are able to extend loans at this rate because we have managed to raise loans at a cost of around 6.1%, which enables us to still earn a spread of around 2.2%,” said HDFC vice-chairman and CEO Keki Mistry. The special scheme is due to end in January. However, the corporation is likely to review the closure date closer to the month end.
Loan approvals during the ninemonth period ending December 31, 2009, amounted to Rs 41,110 crore against Rs 33,820 crore in the corresponding period last year, representing a growth of 22%. Loan disbursements during the nine-month period ending December 31, 2009, amounted to Rs 33,527 crore against Rs 27,211 crore during the corresponding period last year, representing a growth of 23%. The spread on loans over the cost of borrowings for the nine-month period ended December 31, 2009, stood at 2.25% compared with 2.21% for the year ended March 31, 2009.
HDFC’s net interest margins improved even as it dropped rates on home loans. This was because the institution took advantage of the surplus liquidity to raise wholesale funds from banks at cheap rates. Net interest income from the quarter was up 14% at Rs 1,001 crore compared with Rs 877 crore in the corresponding quarter last year. The net interest income for the nine-month period was Rs 2,778 crore up 13.1% from Rs 2,457 in the previous year. The net interest margin improved to 4.27% from 4.19% last year.
Mr Mistry said he expects some tightening by RBI in its monetary policy in January. However, banks were unlikely to hike lending rates because of ample liquidity in the system. “The only way rates could go up is if demand for credit by corporates picks up,” said Mr Mistry.
HDIL raises Rs 425 cr additional debt
HDIL raises Rs 425 cr additional debt
Business Standard, January 21, 2010, Page 4
Press Trust of India / Mumbai
Realty developer Housing Development and Infrastructure (HDIL) today said it has raised Rs 425 crore as debt, in addition to Rs 400 crore raised last month, to retire high cost loans.
In all, the company plans to raise Rs 1,150 crore through the issue of secured redeemable and non-convertible debentures.
The company has a total debt of Rs 3,300 crore, HDIL MD Sarang Wadhawan told PTI.
"The company has received application and subscription for 4,250 secured redeemable and non-convertible debentures of Rs 10 lakh each, aggregating to Rs 425 crore," HDIL said in a filing to the Bombay Stock Exchange.
Earlier during the day, the company reported a 12 per cent decline in net profit at Rs 162.76 crore for the quarter ended December 31, 2009. However, the company's total income rose to Rs 435.47 crore for the third quarter, against Rs 334.7 crore in the same period previous fiscal.
Shares of HDIL closed down 3.96 per cent at Rs 371.
Business Standard, January 21, 2010, Page 4
Press Trust of India / Mumbai
Realty developer Housing Development and Infrastructure (HDIL) today said it has raised Rs 425 crore as debt, in addition to Rs 400 crore raised last month, to retire high cost loans.
In all, the company plans to raise Rs 1,150 crore through the issue of secured redeemable and non-convertible debentures.
The company has a total debt of Rs 3,300 crore, HDIL MD Sarang Wadhawan told PTI.
"The company has received application and subscription for 4,250 secured redeemable and non-convertible debentures of Rs 10 lakh each, aggregating to Rs 425 crore," HDIL said in a filing to the Bombay Stock Exchange.
Earlier during the day, the company reported a 12 per cent decline in net profit at Rs 162.76 crore for the quarter ended December 31, 2009. However, the company's total income rose to Rs 435.47 crore for the third quarter, against Rs 334.7 crore in the same period previous fiscal.
Shares of HDIL closed down 3.96 per cent at Rs 371.
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