Mumbai: Indiabulls Housing Finance Ltd. plans to rely more on bank loans and commercial paper to meet its funding needs because of waning appetite for bonds sold by Indian shadow lenders, according to the Managing Director of the financier. What’s more, Indiabulls Housing’s rupee note due September 2021 traded at a record 43.04% yield on Thursday, which the company said is an erroneous trade. “There was a transaction, erroneous as it may have been, yesterday which can potentially disrupt the whole franchise," Gagan Banga, managing director of Indiabulls Housing said by phone on Friday. Moody’s Investors Service cut the ratings on Indiabulls by three notches this week after the central bank rejected its proposal to combine with Lakshmi Vilas Bank. The merger would have helped the lender to access low-cost funds and tide over a jolt to India’s non-banking financial companies following shadow lending giant IL&FS Group’s collapse last year.
Source: Mint October 20, 2019 09:56 UTC