Highlights:

With the strong economic recovery across sectors led by rural and infrastructure segments, the company has achieved highest quarterly disbursements since Q1FY20 rising by 51% QoQ.

The company has maintained market share in farm and 2 wheelers segment.

In the infra segment, there has been strong disbursements momentum in the renewable and roads segment. The sell downs volume stood at Rs 884 crore in Q3FY2021.

Despite the strong disbursements of loan, the loan book of the company has been flat due to surge in collections.

The company is close to normalcy with covid concerns are largely behind now.

The company has exhibited uptick in NIM+fees to higher since FY17 at 7.39% on the back of reduction in cost of borrowings and reduction in liquidity buffer.

The company has exhibited sharp reduction in cost of borrowings by 50 bps qoq to 7.82% in Q3FY21.

The company has showed sharp pick in collections with most segment posting pre-covid level of collections.

The collection efficiency in the farm segment was 91.8% in December 2020, while two-wheeler segments collection efficiency reached close to pre-covid level of 87%. The microfinance collection efficiency at 98.3%, recovered rapidly but remained slightly below pre-covid level of above 99%.

The balance sheet of the company has strengthened with enhanced collection, adequate PCR and additional provisions.

The company continues to carry additional provisions of Rs 1739 crore or 1.9% of standard loan book end December 2020. Of these provisions, Rs 483 crore are covid related provisions, Rs 1100 crore are macro prudential provisions and Rs 157 crore are enhanced provisions.

Credit cost was at Rs 1024 crore in Q3FY2021, which includes Rs 144 crore of mark down to a specific HFC in defocused book. Excluding this, credit cost is at Rs 880 crore in Q3FY21 compared with Rs 821 crore in Q2FY21.

The housing loan book has remained slow end December 2020, while the focus in on salaried segment and direct sourcing. The share of salaried home loans stood at 94% of overall home loans disbursements in Q3FY21. In the LAP segment, the sourcing was restricted mainly to government backed ECLGS scheme.

The company has reduced Assam microfinance book at 50% of last two years level to Rs 400 crore.

The company has conducted one-time restructuring of loans under RBI's covid 19 framework amounting to Rs 213 crore in Q3FY21 and also created 10% provisions. Overall, the company expects restructuring of Rs 1438 crore or 1.4% with balance restructuring in Q4FY21 and Q1FY22.

Sector wise, the restructuring is likely to be nil in rural and real estate segments, while in the home loans and LAP segment its expected at Rs 340 crore, infrastructure at Rs 440 crore for 3 accounts and corporate at Rs 650 crore for 4 accounts.

The write-off were higher in Q3FY2021 due to write of one large account relating to a large conglomerate with 100% provisions made in Q1FY21.

The disbursements of the company under ECLGS scheme were negligible.