Looking at opportunities in health insurance, stressed asset spaces: Keki Mistry


Housing Development Finance Corporation (HDFC) has posted its highest growth in individual loan book this quarter. The company reported net profit Rs 5,670.2 crore for the December quarter, a whopping growth of 233.3 percent year-on-year due to one-time gain after stake sale in life insurance business.

Loan book at the end of December quarter stood at Rs 3.4 lakh crore, higher by 18.5 percent compared to Rs 2.87 lakh crore in December 2016.

In an interview to CNBC—TV18, Keki Mistry, VC & CEO, HDFC said the company has got approval to raise Rs 13000 crore and out of that they have agreed on doing a private placement of Rs 11,104 crore, which will largely be to overseas institutional investors and one domestic investor.

The funds that will be raised, a large part of that will be invested in HDFC Bank to the tune of Rs 8500 crore to maintain the stake in the bank after all the stock option and dilution takes place, said Mistry.

They would also be looking at using the funds for variety of other purposes. One of that is health insurance because the market growth for this segment is India is very large, he said.

The other thing to look at is stressed assets. However, he said it is not they would buy stressed assets within HDFC but the company has core competence to identify housing projects that are under of stress. So, they would acquire those projects in an incomplete stage and later entrust the completion of the project to a good developer, give it the HDFC brand and therefore be able to sell it at a higher price, said Mistry.moneycontrol