Chennai headquarters Repco Home Finance LTD (RHFL) will tap the bond market and the short-term market in the short term after a long break.
Shareholders’ of the Housing Finance Company (HFC) have approved a proposal for collecting funds through non-convertible bonds (NCDS) and Commercial Paper (CPS) that collected £ 1500 crore and £ 1000 crore, respectively, based on a private placement based on the annual general meeting.
The decision to tackle the bond market (via NCDS) and the short-term Geldmarkt (via CPS) is the fact that the transfer of repo interest rates in these markets is faster compared to the loan market. The company will therefore benefit from lower loan costs.
T Karunakaran, MD & CEO, RHFL, recently told analysts: “We are happy to share that we started with diversification of our loans. After a very long time gap we went into the capital market. As a first step, the company has successfully published Commercial Paper for RS.150 Crores.”
Shanthi Srikanth, CFO, zei: “Onze kosten van lenen dalen consequent, … de meerderheid van commerciële banken hebben nog steeds niet doorgegeven aan het uitkering (van de verlaging van de repo -tarief) aan ons. En we doen ons best om de kosten van leningen te verlagen door op zijn minst diversificatie met de NCD -markt en de PTC (door certificaten die worden uitgegeven onder de securitisatie) markt to lower. “
RHFL, which was founded in April 2000 by the Repatriates Cooperative Finance & Development Bank (Repco Bank), tapped for the last time on the bond market in FY18, when the NCDs published £ 652 Crores (last year £ 385 crores).
In FY21, the company has reimbursed NCDs of nominal value £ 652 crores, even when the CPs of £ 100 crore issued. After this CP issue, it did not tap this route for collecting money.
In the past few years, while other HFCs have gradually reduced their dependence on bank financing by tapping the bond markets, RHFL has increased its dependence on bank financing.
As of March 31, 2025, 82.9 percent of the company’s loans were by way of loans from commercial banks (79.2 percent as of 31 March 2024), 7.9 percent as a refinancing of the National Housing Bank (10.8 percent), 10.0 percent of Repco Bank (10.0 percent).
At the end of the March 2025, the total loans from RHFL £ 11,148.02 crore (£ 10,698.62 crore from the end of March 2024), with the average tenor of loans that fell to 7.85 years of 8.5 years. The costs of loans rose to 8.6 percent from the end of March 2025 of 8.3 percent from the end of March 2024.
During Q1FY26, the payments of the HFC rose by 22 percent on an annual basis (yoj) at £ 829 crore (£ 680 crore in the quarter ago). The general loan book grew approximately 7 percent yoj to £ 14,690 crore at the end of June 2025 against £ 13,701 crore as in June-end 2024. In Q1FY26, RHFL reported a net profit of £ 108 crore (£ 105.40 crore).
Published on August 23, 2025
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