India’s HDFC to Raise 60 Billion Rupees on Housing Demand
Housing Development Finance Corp. (HDFC), India’s largest mortgage lender, plans to raise as much as 60 billion rupees ($1.2 billion) in bonds, loans and deposits by March 31, to meet an increase in demand for new homes.
“A significant part of the borrowings may be raised by way of bonds and loans,” V. Srinivasa Rangan, the executive director at the company said in an interview in Mumbai today. “Our balance sheet is typically growing by 20 percent per annum, which will need to be funded.”
Prime Minister Manmohan Singh said in December that gross domestic product will increase 7.5 percent in the fiscal year that ends March 31, and will expand at 9 percent in the long term. Home sales rose in the fourth quarter last year in Bangalore, Chennai and the National Capital Region, which includes New Delhi and its surrounding areas.
HDFC, as the company is known, raised 206.9 billion rupees in bonds last year to finance demand for new homes, according to data compiled by Bloomberg.
Mortgages at the company may increase between 15 percent and 20 percent, Rangan said. Property prices in India will probably drop about 5 percent to 10 percent, making homes more affordable, he said.
To contact the reporter on this story: Anurag Joshi in Mumbai at ajoshi53@bloomberg.net
To contact the editor responsible for this story: Shelley Smith at ssmith118@bloomberg.net
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