Indiabulls Housing Finance rose over 12% today after the lender said it has joined hands with housing finance major HDFC to offer housing loans to homebuyers at competitive rates.
The stock touched an intraday high of Rs 185.6, rising 12.42% against previous close of Rs 165.10. The stock has gained 14.58% in the last 2 days. The stock opened with a gain of 3.57% today at Rs 171 on BSE. The share trades higher than 5 day moving averages but lower than 20 day, 50 day, 100 day and 200 day moving averages.
The stock has gained 57.87% in one year but fallen 17.41% since the beginning of this year. Market cap of the firm rose to Rs 8,380 crore on BSE.
Indiabulls said it will originate retail home loans as per the jointly drawn up credit policy and retain 20% of the loan in its books, while the remaining 80% will be on HDFC books. Indiabulls will service the loan account throughout the life cycle of the loan, the firm said.
"Co-lending partnership with HDFC Ltd will act as a cornerstone to IBH's new balance-sheet light growth business model. Moreover, technology-led co-lending will help IBH offer convenient and seamless experience to its customers as well as help expand its reach to tier three and four towns of the country," it said.
As of December 31, 65% of Indiabulls' asset book comprised housing loans and its total loan book stood at Rs 70,282 crore. In comparison, HDFC had a loan book of Rs 5.52 lakh crore in the same period.