Highlights:

The company has recorded robust 123% surge in the disbursements in Q1FY2021, while loan book moved up 7% to Rs 22221 crore end June 2021.

The company sees business outlook to be bright ahead and expects to grow faster than the industry going forward. The business situation has been favorable since Q3FY21, but it was affected in Q1FY22 due to the second covid wave.

Only 45 days were available for business in Q1FY2022 due to restriction on account of covid pandemic.

On disbursements front, the month of April 2021 was muted, while it were moderate for May 2021 and picked up well in June 2021.

The company expects disbursements to be Rs 2000 crore per quarter ahead.

the state of Karnataka contributes 26% to the overall loan book with Bengaluru accounting for 80-82%.

the company had earlier changed its strategy to meet high competition from banks by reducing pricing, which is helping the company to source high quality customers.

The company sees opportunity for raising rates as banks are witnessing pick p in non-housing segments.

The company expects o maintain rate differential with banks at 75-80 bps.

The focus of the company is on a mix of affordable housing and higher ticket size loans to salaried customers.

The outward balance transfers were at Rs 57 crore in Q1FY2022. The balance transfer outwards is expected to be lower than Rs 100 per quarter going forward. An inward balance transfer was muted in Q1FY22 due to mobility restrictions

The company expects restructuring at 2%, out of which 12-15% is expected to slip into NPAs.

The company created additional provisions of Rs 70 crore in Q1FY2022, of which Rs 37 crore is related to restructured asset and balance Rs 33 crore is held as additional provisions to be utilized any asset quality pressure ahead.

The collection efficiency dropped in April 2021, while it picked up in May 2021 and further higher in June 2021.

Stage 2 assets stood at Rs1200 crore end June 2021 from Rs 1184 crore end March 2021.

An incremental yield stood at 7.23% and incremental cost of funds was at 4.87% in Q1FY2022.

the spread stood at 2.4% and NIMs at 3.31%. Spread and NIM are expected to increase from Q2FY22 onwards, driven by lower cost of funds, higher business and improved yields.

The borrowings stood at Rs 19275 crore end June 2021. Out of which, bank borrowing accounts for 47%, NHB for 25%, market borrowings 26% and deposits accounts for 2%.

The company has 7-8 months of liquidity at Rs 3000 crore.