Highlights:

NBFC sector had seen unbelievable liquidity crisis in Dec 18 quarter.

No adversity faced by the company in the quarter.

Business loan disbursement Rs 12778 crore – 4% up on YoY basis. Home loan disbursement Rs 9177 crore– 3% up YoY and Individual home loan disbursement Rs 2400 crore – flat on YoY. Builder loan disbursement Rs 1238 crore – 28% up on YoY basis.

The company was selective in disbursements in the current atmosphere.

Disbursements growth at 15% for 9MFY2019 in line with the target

Doing well in PMAY finance 8500 account amounting to Rs 1646 crore

300 staff recruited in Q3FY2019.

Corporate NPA declined due to recoveries of 5-6 small account of Rs 60 crore

Portfolio takeover 6 accounts in Q3FY2019 and 38 accounts in 9MFY2019.

Borrowings – NCDs- Rs 20000 crore, CPs – Rs 9000 crore, deposits Rs 1000 crore in Q3FY2019.

Pending modification of loans from fixed to floating rate is marginal at couple of percentages.

Yield for retail home loan at 10.25 and project loan at 13.45%

Buyouts, takeovers evaluating the same based on various parameters.

ECL model transition was smooth

In Sep 18 quarter, the diff between NHB and ECL provision was provided in balance sheet, and not written back to P&L. ECL provision was much less than NHB provision loans.

Loan provision is in line. As per the same methodology, the provisions for ECL were a reversal (write back) of Rs. 3.14 Cr for the quarter as against a reversal of Rs.20.45 Cr for the corresponding quarter in the previous year.

Transition from IGap to Ind AS. All home loans will be treated as a financial instrument. When any terms and condition of the loan account is changing, the gain or loss has to be appropriated in that particular period for the balance period of loan. When the rate of interest going down, the loans were reiterated to low rate of interest as per Ind AS, one needs to account the lower earnings for the company on these loans.

The company used to book processing fee income on receipt basis and the cost for the loan including agent commission and other charges need to be amortized as per new Ind AS. Under Ind AS the expense need to be amortized and as and when the loan gets closed or prepaid, the unamortized amount need to be provided for in same quarter. That is the reason for all the changes in line items that was seen in Dec 18 quarter.

After 4 quarters; the numbers will be smoother and comparable.

On cost of fund side, sharp increase in rates, but the company was able to protect itself from such increase. Rates increased by 20 bps for the company.

Overall so far for 9 mths ended Dec, the company hiked lending rates by 60 bps and another 10 bps was increased by Jan 19.

Some recovery in NPA accounts of around Rs 60 crore. There was no increase in slippages.

Disbursements to builders are going up. Total no of accounts 256 in builder category. During 9 months ended Dec 19, added 38 accounts.

Reversal ECL provision based on company received recovery on past delinquencies that was provided for based on that point of time

No expectation of any account in builder loan going to NPA.

Incremental cost of funds is 8.38% and incremental Yield for 9 months ended Dec 18 stands at 9.95%.

GNPA has increased largely due to Retail portfolio.

Sharp increase in floating rate book from 82% to 93%. Entire business is happening in floating rate side.

Dec 18 was the first quarter, where the advantage of 60 bps hike in yields was visible.