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Improving growth prospects
Power and roads are the two largest growth segments in the infrastructure sector forming 60% of loans. But faster
execution is critical for the roads sector.
Despite high interest rates, the current interest rate cycle is significantly different from the previous one. IDFC is
comfortable borrowing at current high rates with not much problem on the liquidity front.
Current Tier-I ratio is ~24%. IDFC is looking to leverage its equity up to 7x, i.e. 14% Tier-I by FY13.
IDFC is looking to grow its loan book at ~25-27% CAGR over the next two years.
With IDFC given IFC status, it is planning to diversify its funding book. It is looking at making tax-free bonds ~5-7% of
its borrowings and ECBs 7-10%, thereby reducing reliance on bank term funding. It also plans to keep its short term to
long term funding ratio at 15:85 split.
Assets under management have reduced by USD1bn to USD4.5bn from March 2010 levels. IDFC is planning to sell a
strategic stake in the AMC to a foreign partner in the near term.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Improving growth prospects
Power and roads are the two largest growth segments in the infrastructure sector forming 60% of loans. But faster
execution is critical for the roads sector.
Despite high interest rates, the current interest rate cycle is significantly different from the previous one. IDFC is
comfortable borrowing at current high rates with not much problem on the liquidity front.
Current Tier-I ratio is ~24%. IDFC is looking to leverage its equity up to 7x, i.e. 14% Tier-I by FY13.
IDFC is looking to grow its loan book at ~25-27% CAGR over the next two years.
With IDFC given IFC status, it is planning to diversify its funding book. It is looking at making tax-free bonds ~5-7% of
its borrowings and ECBs 7-10%, thereby reducing reliance on bank term funding. It also plans to keep its short term to
long term funding ratio at 15:85 split.
Assets under management have reduced by USD1bn to USD4.5bn from March 2010 levels. IDFC is planning to sell a
strategic stake in the AMC to a foreign partner in the near term.
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