Highlights:

The company has achieved record high disbursements of over Rs 2000 crore in the quarter ended March 2021, while registering 44% growth over corresponding quarter of last year.

The revenues of the company have been impacted by reduction in yields on account of change in strategy with the focus on retaining customers with reduced interest rates.

Thus, the company has also witnessed decline in its net interest margin and spreads on sequential basis.

The company had created covid related provisions of Rs 76 crore, of which the company is still holding Rs 70 crore of provisions looking at second covid wave.

The company is also holding Rs 15 crore provisions for restructuring of loans and interest write back.

The cost to Income ratio is expected to be in the range of 15.5%.

Within the home loan book, 71% is towards salaried and 29% is a self-employed professionals.

The company has reduced GNPA from 0.99% (including proforma) end December 2020 to 0.91% end March 2021. The company expects to maintain stable asset quality ahead, while there will be some impact of on collection due to lockdown.

With the change in pricing strategy to grow loan book faster, the company aims to grow loan book above 20%, depending upon the covid.

The ticket size of the loan book has increased from Rs 18 lakh 2 Rs 20 lakh. About 22% of the loan book of the company has been repriced depending upon the credit profile of the customers.

The focus of the company is on protecting margins and profitability.

The company proposes to protect net interest margin at 3% and spreads at 2.4%.

The company is well diversified geographically. Karnataka state contributes 20% of incremental loan sourcing. Overall South accounts of 70% of loan book, while branches and employees also has 70% contribution.

Within the market borrowings, 90% comes from CPs and balance from NCDs.

The liquidity position of the company is comfortable with huge undrawn bank lines, which is equivalent to 7-8 months of disbursements and the company will continue to hold similar liquidity. During the covid situation, the liquidity with the company was equivalent to 12 months of disbursements.

Portfolio yields for the company stands at 9.49%, spreads 2.78% and net interest margins at 3.69%.

An incremental cost of funds stands at 4.5%, while an incremental yields stands at 7.32%. An incremental cost of bank borrowings stands at 5.5%.

As per the company, the balance transfers outside have moderated sharply from Rs 250 crore during covid times to Rs 90 crore in Q4FY2021. Meanwhile the balance transfers inside have improved substantially by three times.

First half of April 2021 was good for business as well as collections, while the lockdown situation is likely to impact business as well as collections.

The employee base of the company stands at 1,000 employees end March 2021.