The interest income of the company has declined 12% while interest expenses tipped 18% leading to flat net interest income at Rs 192.43 crore. However, the operating expenses surged 36% to Rs 40.41 crore leading to 6% decline in the operating profit to Rs 152.10 crore.

The provisions for the quarter ended March 2021 dipped 81% to Rs 7.66 crore, while depreciation declined 13% to Rs 2.43 crore helping the company to post 19% growth in the PBT to Rs 142.01 crore.

An effective tax rate rose to 27.8% from 23.6%, allowing the net profit to rise 13% to Rs 102.57 crore.

Business highlights

The disbursement of the company moved up 44% to Rs 2001 crore, while sanctions improved 44% to Rs 2260 crore. The loan book moved up 7% to Rs 22105 crore with a clientele base of 1.70 lakh. About 73% of the outstanding loan book is from Salaried Professionals. Further 90% of loam book is home loans.

The company has improved its net interest margin to 3.88% in the quarter ended March 2021 from 3.52% in the corresponding quarter of last year, mainly driven by sharp decline in cost of funds to 6.71% from 7.77%. The yield on advances has also eased to 9.49% from 10.23%.

Capital adequacy ratio was held at 25.63% with Tier 1 ratio at 23.83% end March 2021.

The fresh slippage of loans moderated to Rs 71 crore in FY2021 compared with Rs 75 crore in FY2020. NPA reductions were Rs 26 crore compared with Rs 32 crore last year.

Gross NPA ratio of the company stood at 0.91% and net NPA ratio at 0.61 compared with 0.76% and 0.54 present and March 2020.

The provisions with the company stands at Rs 215.80 crore which comprises of standard asset provisions of Rs 78.38 crore, NPA provisions of Rs 67.58 crore and covid related provisions of Rs 69.84 crore.

The borrowings of the company have increased to Rs 18246 crore and March 2021 from Rs 17903 crore and March 2020. About 51% of the borrowings come from banks, 26% are market borrowings, 2% is deposits and 21% is refinancing from NHB.

Financial performance FY2021

Interest income declined 1% to Rs 2018.14 crore, while interest expense fell 10% to Rs 1208.33 crore, leading to 18% surge in net interest income to Rs 809.81 crore. Operating expenses moved up 17% to Rs 114.42 crore. Operating profit moved up 18% to Rs 695.68 crore. Provisions moved up 14% to Rs 68.53 crore, while depreciation increased 1% to Rs 9.57 crore. PBT gained 19% to Rs 617.58 crore. An effective tax rate eased to 26.2% in FY2021 from 27.4% in FY2020. Net profit moved up 21% to Rs 456.06 crore in FY2021.