Highlights:

* The company continue to improve the share of used assets, tractor, SME and the mortgage in its product portfolio and their share has now increased to 59% of the total loan book, while disbursement share stood at 62% in Q1FY2017.

* There has been a modest growth of 2.5% in disbursal in Q1 after a period of five consecutive quarters of degrowth. However, asset-backed financing business witnessed disbursal growth of 12% in Q1. Strong trends continued in the SME business both in terms of growth and quality of the business. Disbursement in the SME grew by strong 25%.

* Overall AUM declined 2% qoq to Rs 17796 crore at end June 2016.

* In mortgages, the company has been successful in reducing the ticket size by reaching out to the informal customer segment in the tier towns - main targeted segment. The ticket size from mortgage business in the Q1 has come down to Rs 16 lakhs compared to around Rs 20 lakhs in FY2016.

* New business structure for the asset-backed finance rolled out in December 2015, which is built on branch banking model has stabilized. The company has started witnessing better trends in terms of all major operating parameters like growth, quality of book and efficiency.

* Provisioning for NPAs and write off have almost peaked now, as a net accretion to the NPA slowed down significantly in the last two quarters. The company now expect the recoveries to flow in from October onwards.

* Sequential increase in the gross NPAs on 120 DPD to 8.7% in Q1 was largely due to the seasonally weak Q1 and decline in the AUM. With the visible green shoots in the rural economy these ratios are expected to improve in the second half of the current fiscal.

* With the improvement in the overall rural macros with both normal monsoon and the public spending, the company expect the return ratios to improve significantly in the second half.

* The NIMs have improved from 6.4% in Q1FY2016 to 6.9% in Q1FY2017. The company expects NIM to be above 7% in FY2017 and hope this to stabilize anywhere between 7.25% and 7.5%.

* The credit cost was broadly flat yoy at Rs 88 crore in Q1FY2017.

* As a result of improved NIMs, flat opex and the credit losses on a yoy basis, the PAT has increased by 2% yoy to Rs 47.6 crore in Q1FY2017.

* From next year onwards, the company expect the credit losses to be lower in the range of 1.25% as against current level 2.2%.

* Currently ROA is at about 1.2% and the company is targeting ROA improvement to 1.7% to 1.8% on the back of three things, one improvement in the NIMs, second decline of 20-25 bps in opex-AUM from current 3.5% and third is the reduction in the credit losses.

* From a current 10% ROE, the company would look to touch and cross 15%.