Gagan Banga is the vice chairman, managing director and CEO of Indiabulls Housing Finance Limited. Banga has over 17 years of experience in the business of nonbanking financial companies NBFC) and housinf finance companies (HFC). Banga in an exclusive interview to CNBC-TV18 said the company is looking to close the year with a loan book of Rs 1.4-1.5 lakh crore. He also said that Indiabulls had commercial papers worth Rs 15,000 crore in Q2 FY19.

Watch: Indiabulls Housing Finance expects 20 bps increase in cost of funds for Q3

The company on Monday reported a profit of Rs 1,044.1 crore for the second quarter of the current fiscal, up 21.2 percent over the year ago period.

Edited Excerpts:

How much of your commercial papers (CP) are outstanding as of December 31, that is quarter yet to be redeemed?

As of September 30, for Indiabulls Housing we had a stock of approximately Rs 15,000 crore of CP and by end of this quarter, we should have outstanding CPs between Rs 10,000 and Rs 11,000 crore.

So you have to find liquidity for about Rs 5,000 crore for this quarter?

Unlike some of our peers what we have been using CP in the classic method, the way it is supposed to be used, which is working capital. Since we have never assumed rollover of the CP, we have always kept an amount which is significantly higher to the outstanding CP ready with us as cash.

So what we are using this time, since the environment for securitisation and ECB is quite nice, to raise more money through these two routes rather than CPs.

What is the amount of loan that you have securitised in the first half (H1)? And how much do you expect to securitise in the second half (H2) of the year?

We are amongst the largest securitisation player in that sense in the market. Last year, we securitised well over Rs 10,000 crore. In the first half, we have securitised around Rs 5,000 crore and for the full-year, our budget was originally around Rs 12,000-13,000 crore which we are now thinking of upping to about Rs 15,000 crore. So in H2, we should be doing about Rs 10,000 crore.

So you have CPs around Rs 10,000 crore to be redeemed by March 31, right?

Yes.

You have provided liquidity for all that?

Since FY17 along with our shareholders and other stakeholders we have been disclosing that we have moved on to asset-liability management (ALM) principles as prescribed under Basel III by the Reserve Bank of India (RBI) for banks.

Since we declared the results yesterday (on Monday) we also explained to the larger community as to how exactly we are managing that. So the liquidity coverage ratio which is prescribed for banks and they generally keep it between 90-100 percent on a 30-day basis, Indiabulls Housing is at 401 percent on that, so 4x of what is prescribed by the RBI.

Similarly, if we look at the granular ALM, which looks at 1 day, 7 day, 14 days and so on goes up to 10 years. In each of the bucket starting from a day to 10 years, we have multiple of anywhere between 1.3x to 4x.

So we are extremely well covered with all the liquidity that we are holding and I am reasonably confident that as we have used the previous liquidity crisis as an opportunity for Indiabulls Housing, we would use this one as well.