Highlights:

The consolidated asset under management of the company has increased 10% to Rs 60896 crore end December 2021 over December 2020. The standalone asset under management of the company has increased 9% to Rs 54688 crore end December 2021

The performance of the company during the quarter was impacted by third wave of the covid. The accelerated repayments and auctions also impacted the loan growth of the company.

The loan book has started to look up in the quarter ending March 2022 and company expects to record improved growth.

The company aims to revert back to 15% loan growth guidance in FY2023.

Some of the subsidiaries have also not shown good performance given the economic scenario.

During last two years the company has witnessed 200 bps reductions in cost of funds. The company has maintained stable yields and margins. Going forward, the company expects 15 bps decline in cost of funds during next six months.

The company is comfortable with its existing branch network, while it has to only increase the number of employees to grow the business.

The average ticket price has also increased from Rs 30,000 three years back to Rs 60000.

The Micro Finance Company is doing well it is well placed and the company is also looking at capital infusion and the company is expected to do well ahead.

The company is a little cautious in the vehicle finance, personal loans and affordable housing finance company.

The company would be looking at calibrated growth in the non-gold loan segment until the economic scenario improves.

The increase in stage 3 assets in the quarter ended December 2021 is mainly on account of higher disbursements in the Q2 last year and cash flow challenges for the customers.

The company expects its stage 3 loan book to stabilize by Q4FY2022.

The company has conducted gold loan auction of Rs 2800 crore in Q3FY2022. The company expects auction of another Rs 2000 crore of loans in Q4FY2022.

The loan to value ratio of the company has declined to 69% from 73% a quarter ago, mainly due to increase in gold prices

The company had guided gold loan growth of 12-15% for FY22 and it would try to achieve the target.

The flatness in the customer base is mainly on account of more releases, aggressive repayment and auctions in the quarter ended December 2021. However, the company has added new 3.5 lakh customers in the quarter ended December 2021.