Highlights:

The company witnessed one of the most year in recent history during FY2021. However, the month of March 2021 was one of the best in terms of disbursement, collections NPA management etc.

The company took aggressive stand on settling accounts with the customers, while it also focused on aggressive provisioning.

The company has been able to maintain Gross NPA ratio steady on year-on-year basis.

The segments such as a school bus operator, taxi operator, tourist bus operator, passenger bus operator are yet to return to normalcy. The cost of asset acquisition of has increased and the operating cost has also increased, but the revenue has not picked up.

The customers intend to buy old vehicles, but the supply choked.

The company has substantially raised provision coverage ratio of to 60%, which is much higher than required provisioning coverage ratio of 30-32% under ECL method. The company is adequately covered for the future events.

The second wave of pandemic has impacted the recovery by a few more months. The activity is expected to remain scheduled in H1FY2022.

The forecast of normal rainfall is expected to support agriculture cash flows. The infrastructure contracting is expected to pick up once cases subside.

The company would continue to focus on cost control. The cost to asset ratio is expected to remain at 2.2-2.5%.

The liquidity situation of the company is comfortable.

The company has reduced net NPA ratio below 4% with aggressive provisions on account of regulatory suggestions, while net NPA would remain below 4% ahead.

The collection efficiency for the month of March 2021 was at 109%.

The company would look to cross-selling of consumer loans to existing customers on a pilot basis. It may also look at two-wheeler financing ahead. However. The company is not considering LAP products.

The company has exhibited sharp increase in employee expenses due to lower base on account of write back of employee incentives in Q4FY2020.

The write-offs stood at Rs 629 crore in 4QFY2021.

The company has created provision of Rs 32 crore for interest on interest benefit for moratorium loans.