The venture capital arm of the private sector mortgage lender Dewan Housing Finance is planning to raise its second real estate fund with a corpus of Rs 250 crore. DHFL Venture Capital Fund’s second fund will invest in residential projects, Kapil Wadhawan, vice-chairman and managing director, told Reuters in an interview.
Dewan Housing holds 45 percent in the venture capital unit.
The assets under management in its fund are $45 million. From its first fund, called Dreams Fund-I, it has invested in five projects in Pune, Hyderabad, Cochi and Secundarabad.
DHFL isone of the largest private housing finance companies in the country providing housing finance to the lower and middle-income segment in the semi-urban and rural areas in India.
Wadhawan said DHF expects to maintain net interest margin at 3 percent in 2009/10, with operating costs being covered by higher fee income.
The company’s current loan book stood at Rs 6,100 crore and it expects disbursements to rise over 50 percent in two years, It also aims to reduce net non-performing assets to 0.6 percent this fiscal, from 1.03 percent earlier, on strong recoveries, he added.