Indiabulls Housing Finance Ltd (IBHFL) on Sunday said its senior management has decided to lead the efforts on expense control by volunteering to take pay cuts up to an average of 35 per cent for the current financial year.
“Sameer Gehlaut, Chairman, will be drawing NIL salary, while Gagan Banga, Vice-Chairman, MD & CEO, has opted to take 75 per cent cut on his salary,” the company said in a regulatory filing.
IBHFL’s shares on Friday had closed at ₹98.3 apiece, up 1.5 per cent over the previous close on the BSE.
Meanwhile, credit rating agency ICRA has revised the outlook on IBHFL’s long-term rating on debt aggregating ₹89,360 crore to ‘Negative’ from ‘Stable’ on April 6.
The rating on the debt (NCDs, subordinated debt and long-term bank facilities) was reaffirmed at ‘AA’. The commercial paper rating (amount: ₹2,500 crore) was also reaffirmed at “A1+”. The agency, in a statement, said the revision in the outlook for the long-term rating reflects IBHFL’s increased risk profile, given its investment in YES Bank’s additional Tier 1 (AT-1) bonds and loans to companies belonging to the erstwhile promoters of the bank, and the continued challenges in resource mobilisation which are likely to intensify further, given the increase in risk aversion and the widening credit spreads in the market.
The outlook revision also factors in the likelihood of an increase in the company’s credit costs, while the recoveries during the quarter could partly offset the impact, it added.