About Us

Sources of Funding

As on the date of this Draft Red Herring Prospectus, our issued, subscribed and paid-up Equity Share capital is Rs. 20,019.0 million. We also fund our business with borrowings of various maturities in the domestic and international markets. Our market borrowings include, among others, NCDs (including secured, redeemable, non-convertible, non-cumulative tax-free bonds), term loans, commercial paper, public deposits and external commercial borrowings. As at November 30, 2016, we had total outstanding borrowings of Rs. 257,440.7 million (standalone), of which Rs. 196,127.9 million, or 76.18%, was secured and Rs.61,312.8 million, or 23.82%, was unsecured.

  1. Domestic Borrowings
    1. Debentures/NCDs

    2. Bonds

      Taxable Bonds: We issue unsecured, non-convertible, redeemable taxable bonds under various series typically with a maturity period of up to 10 years from the date of allotment. As at November 30, 2016, our outstanding taxable bonds were Rs. 34,000.0 million. These bonds are issued on a private placement basis and are currently listed on the “whole sale debt market segment” on the Stock Exchanges.

      Tax-Free Bonds: We issue secured, non-convertible, redeemable tax-free bonds under various series typically with a maturity period ranging from 10 to 20 years from the date of allotment. As at November 30, 2016, our outstanding tax-free bonds were Rs.173,884.7 million. These bonds are issued to retail, corporate and institutional investors through a public issue or on a private placement basis and are currently listed on the “whole sale debt market segment” on the NSE (bonds raised through private placement) and the capital market segments of the NSE and the BSE (bonds raised through public issues). We are only able to issue tax-free bonds to the extent permitted by the GoI.

    3. Refinance Assistance from NHB
    4. The NHB offers refinance assistance to HFCs in respect of their loans given for housing under various refinance schemes. As at November 30, 2016, we have obtained sanctioned refinance assistance of Rs. 34,500.0 million under the Rural Housing Fund and Urban Housing Fund of NHB. These loans had a maturity period ranging from seven years to 10 years.

    5. Other Term Loans
    6. We avail of secured as well as unsecured long-term and short-term loans from various Indian banks. These loans are mostly in the nature of term loans. As at November 30, 2016, our total loans availed from various Indian banks was Rs. 1,053.9 million. These loans had a maturity period ranging from 180 days to 24 years and were subject to floating interest rates.

    7. Commercial Paper
    8. We issue commercial paper from time to time.

    9. Public Deposits
    10. We offer a range of deposit products to our customers. Our public deposits are repayable in accordance with the individually contracted maturities ranging from 12 to 84 months from the date of deposit. As at November 30, 2016, we had a total of Rs. 9,695.4 million in public deposits. Our public deposits are secured by a floating charge on the statutory liquid assets created by way of a deed of trust as per the HFC Directions.

    11. Other Loans
    12. We avail of unsecured cash credit / overdraft facilities from various Indian banks. As at November 30, 2016, our cash credit facilities availed from various Indian banks was Rs.1,139.5 million. These facilities are short term in nature and repayable on demand and were subject to floating interest rates.

    13. Bank Guarantee Facilities
    14. We avail of unsecured bank guarantee facilities from various Indian banks. As at November 30, 2016, our bank guarantee facilities totalled Rs. 8,945.6 million. These facilities had a validity period ranging from 12 months to three years.

  2. International Borrowings
    1. External Commercial Borrowings and Loans from Multilateral Institutions

      As at November 30, 2016, our outstanding foreign currency loans totalled Rs.5,132.2 million, comprising a Rs.1,666.9 million loan from the Japan Bank of International Cooperation (which was borrowed in Japanese Yen), a Rs. 2,439 million loan from the Asian Development Bank and Rs.1,026.3 million loan from USAID (both of which were borrowed in US dollars). The loans made the Japan Bank of International Cooperation and the Asian Development Bank are guaranteed by the GoI. The loan availed from USAID is in the nature of external commercial borrowings in the form of floating rate promissory notes, guaranteed by USAID and counter-guaranteed by various Indian banks. These loans had a maturity period ranging from 25 to 30 years from the date of disbursement.