Highlights:

The company has exhibited meaningful jump in performance for Q2FY2021. The disbursements have jumped 3.3x in Q2FY2021 over Q1FY2021. The disbursements have jumped from Rs 150 crore in Q1FY2021 to Rs 480 crore in Q2FY2021.

The company expects Rs 225-250 crore of disbursements per months and cumulative disbursements of Rs 700-800 crore for Q3FY2021 and expects further improvement in disbursements to Rs 900 crore in Q4FY2021. The company expects to touch pre-covid level of disbursements in few months. It is targeting loan growth of 8-10% for FY2021

The NIM stood at 4.6% and spread at 3.4%, while the company expects to maintain spread above 3% and margins at 4.25% for FY2021.

The provision for stage 3 stands at 41%. The provisions stands at 2% of loan book.

The collection efficiency was 93% in September 2020 and company expects further improvement in collection efficiency ahead.

As per the company, the number of non paying customers have declined from 6700 end June 2020 to 4700 end September with overdues declining from Rs 1045 crore to Rs 755 crore of which Rs 385 crore is stage 3.

With the improving collection efficiency, the company expects GNPA to remain stable or decline in Q3FY2021. GNPA is expected to be around 4% end March 2021.

The company has liquidity of 450 crore.

The portfolio takeovers amounting Rs 384 crore happened in Q2FY2021.

The company has not received any request for restructuring so far. However, the company expects the maximum restructuring, if required, to be at Rs 200-300 crore.

The cost of borrowings has eased from 8.2% in Q1FY2021 to 7.65% in Q2FY2021. There is no scope for further reduction in cost of borrowings.

Incremental yield on home loans is 10.39% and LAP at 13.22% compared with 10.46% and 13.42% in the previous quarter.

The company charges 1% risk premium for non-salaried over salaries segment.