With the non-convertible debenture (NCD) issue of Dewan Housing Finance Corporation Limited (DHFL) set to open on May 22, Kapil Wadhawan, Chairman and Managing Director, in a candid talk with Zee Business's Anurag Shah revealed that, "DHFL will open its Rs 12,000-crore NCD issue for subscription of which base issue size will be of Rs 3,000 crore". He added, that this DHFL public issue of bonds is focussed on 'retail partnerships'. Edited excerpts from an exclusive interview:

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Q: Is the market condition a reason for issuance of the NCD? How different is it from the previous one? 
A: It is going to be an important NCD issue for the bond market. The issuance size is going to be of Rs 12,000 crore of which Rs 3,000 crore is going to be base issue size while the remaining Rs 9,000 crore will be an option to retain oversubscription. The issuance has a special focus on retail partnership so that maximum retail partnerships are reached. DHFL is offering investors the option to invest in NCDs with the interest/coupon rates in the range of 8.9 to 9.10 percent. It also carries other incentives for retail investors as well as senior citizens. 
Our last two public issuances, in August 2016, had shown good results. Both saw overvalued subscriptions. In addition, they also displayed increased appetite of retail investors. 
 

Q: You would have disbursed several loans under the Pradhan Mantri Awas Yojana (PMAY). What kind of traction has the scheme brought and its percentage in your overall loan book? 
A: Our total retail contribution stands close to 70 percent. And if seen from the point of view of home loans, then a significant part of the same was issued under Pradhan Mantri Awas Yojana. In fact, it has also been recognised by the regulators. 
At the same time, when it comes to housing finance companies, then I feel that we are one of the largest contributors to the Pradhan Mantri Awas Yojana. 
 

Q: It has been almost a year since Real Estate Regulation and Development Act (RERA) was launched. Has RERA helped housing finance companies? Has RERA boosted confidence of housing finance companies?
A: Yes, RERA has boosted the business of housing finance companies. It has brought discipline to the sector and seeks to protect the interests of the developers, the financers and most importantly of the end consumers, who are the buyers. In fact, state wise implementation of RERA is a very important thing for the sector. 
 

Q: Can you tell us the specific geographies where demand in housing sector is coming from? Do you think that the prevalent slump/slowdown in real estate, which was visible since past 3-4 years, has come to an end and whether the sector is recovering?
A: See, going by our growth history I don't feel that there was any slump in the sector. Maybe, there was a slight slowdown in big cities. But the demand within the affordable housing segment is still good and if you look at last year's result of DHFL than you will find that we were good in everywhere like in sanction and disbursement as well as in profitability.