* Balance in high-interest savings accounts falls to C$391 mln
* Reiterates it will miss financial targets
* Shares fall as much as 29 pct (Adds shares, analyst comment, details)
May 1 (Reuters) - Home Capital Group Inc, Canada’s biggest non-bank mortgage lender, said it expected to draw down half of a C$2 billion ($1.46 billion) credit line on Monday, as it seeks to offset the impact of a steep fall in savings accounts deposits.
Home Capital’s shares slumped as much as 29 percent to C$5.75 in early trading, after the company on Monday also reiterated it would miss its financial targets.
The company, which has hired bankers to help it secure additional funding and assess options, has suffered a crisis of confidence since a securities regulator last month alleged its top executives hid mortgage broker fraud from investors.
Depositors have been withdrawing more cash from savings accounts that help fund Home Capital’s mortgage book.
The company also said the balance in its high-interest savings accounts (HISAs) was expected to slump to about C$391 million on Monday, from C$521 million on Friday. The balance was C$1.4 billion a week ago.
“While the pace of withdrawals does appear to be slowing, funding is expected to remain a material constraint,” Raymond James analysts wrote in a client note.
Home Capital said on Friday that about C$290 million had been withdrawn from its HISAs the previous day, compared to C$472 million on Wednesday.
The company on Thursday said Healthcare of Ontario Pension Plan had agreed to provide a C$2 billion credit line to its Home Trust unit.
Total deposits in Home Capital’s less-liquid Guaranteed Investment Certificates stood at C$12.86 billion as of April 28, marginally lower than the C$12.97 billion, as of April 26.
The alternative lender is expected to report fist-quarter results later this week.
$1 = 1.3651 Canadian dollars Reporting by Swetha Gopinath and Arathy S Nair in Bengaluru; Editing by Sai Sachin Ravikumar