Highlights:

The Company is witnessing steady growth across all parameters, the logins, the sanctions and the disbursements.

The Company has achieved 86% of the pre-COVID levels in disbursements during the Q2FY2021 and is already nearing 100% of pre-COVID levels in October or going forward.

The company is confident that the festival season will see a surge in the housing market, while the low interest is expected to further boost the demand in the housing sector.

The company has disbursed loans amounting to Rs 3138 crore in H1FY2021, registering an increasing trend on a month-to-month basis. Retail segment contributed 95% of the total disbursement, with 65% disbursed towards lower risk weighted individual housing loan, which has been the new focus of the Company.

With the digital being the new normal, the Company has taken steps to go digital, even at the sourcing stage.

The AUM of the company is at Rs 81221 crore with retail AUM at 82% and corporate at 18% end September 2020.

The gross NPA on AUM basis is 2.20%. On Loan assets, the GNPA is 2.59%. Retail book GNPA stood at 1.23% and corporate book GNPA stood at 7.6%. The pro-forma gross NPAs would have been 3.04%, including NPA not classified due to Supreme Court order.

With the current provisions, the total provision to total asset is 2.99% and overall provision coverage ratio of 115% end September 2020.

The Stage-3 provision coverage ratio has increased substantially to 44% from 22% end September 2019.

The life to-date write-off by the Company is 11 bps, which is pretty compare with some of competitors.

In line with the changing environment and keeping in view the stress in the real-estate sector, the Company has further tightened its underwriting standards.

On the corporate book, during H1FY2021 the company has down sold few of corporate accounts and received accelerated prepayments. The company aims to bring the share of corporate book down by the end of current fiscal year.

On the collection front, average monthly collection efficiency during the quarter remained at around 95% level.

The company has enough liquidity and undrawn sanction limits.

The company is comfortably placed on its capital requirements with CRAR at 18.66% and Tier-1 capital at 16.13%. The gearing of the Company has improved and is now at 7.8% end September 2020.

On the capital raise, Punjab National Bank has is seeking regulatory approvals to infuse capital through preferential or rights issue. The Board of the company has also approved capital raise through preferential and rights issue.

The company will continue focus on improving acquisition strategy, strengthen underwriting standards, enhance recovery capabilities, improve system and processes and further rationalize cost.

In moratorium book, about 19% of the book has not paid and 81% has paid at least minimum one or more EMIs.

The under-construction portfolio stands at 19%, while the company is currently not concentrating too much on under construction project, rather its concentrating on completed project and on resale properties.

The branch count of the company has declined to cost rationalization process

The retail moratorium book was Rs 18000 crore end August 2020

The company is aiming for loan growth of 5-6% in FY2021.

Retail GNPA is at 1.23%, and corporate GNPA is at 7.6% end September, 2020.

Corporate moratorium book was around 87% end August 2020. Out of this 85% have paid in the month of September 2020.

The collection retail efficiency is about 95% in September 2020. The field collections which remain restricted due to COVID-19 has shown signs of improvements. As the market starts unlocking, the avenues for resolution will also advance and the impact on bucket three and NPA will reduce.

The corporate collection efficiency is around 75% in September 2020. If accelerated pre-payments, collections from sale of asset/recovery is included, the collection efficiency is over 85%.