Highlights:

- This year is a year of capital conservation and capital raise, liquidity management, asset liability management, resolution of corporate accounts and overall asset quality.

- The company continued to mobilize long-term resources through bank term loans, ECB, deposits, NCD, securitization via the direct assignment route, etc.

- The company enjoys a very strong deposit franchise and mobilized over Rs 7500 crore during 9MFY2020. These deposits are sticky in nature with tenure ranging between 30 to 36 months and a healthy high double-digit renewal rate. Deposits stand at Rs 16470 crore or 19% of total financial resources.

- The securitized book stands at Rs 17103 crore end December 2019, the with 35 months vintage and GNPA of 0.20%. With an objective to contain gearing, the company securitized Rs 3342 crore of loans in Q3FY2020 and Rs 9239 crore in 9MFY2020.

- The company has also sold corporate finance assets amounting to Rs 1963 crore in 9MFY2020

- The share of commercial paper reduced from Rs 8625 crore end December 2018 to Rs 2591 crore end December 2019.

- The company has maintained excess cash and liquid investments to the tune of Rs 9258 crore end December 2019 along with undrawn and sanctioned OD lines from banks our liquidity position moves beyond Rs 10000 crore.

- CRAR has increased to 17.06% with tier 1 at 14.09% and much beyond the minimum regulatory tier 1 requirement of 10%. This

- The gearing of the company is at 8.48x end December 2019 which has improved from 9.66x end December 2018. Excluding surplus cash and bank balances, gearing stands at 7.7x December 2019.

- Asset under management of the company stands at Rs 86297 crore with share of retail loans being 82% and corporate being 18% of the AUM.

- Geographically, West is largest market with 41% of assets under management followed by North at 30% and South at 29%. The company has limited presence in East with 3 branches, two in Calcutta and one in Bhubaneswar which forms part of the North zone.

- In retail segment, individual housing loans constitute 59% of the AUM. Retail LAP, that is retail loan against property constitutes 19% and retail non-residential premises loans contribute 4% of the asset under management.

- Under-construction portfolio as a percentage to individual housing loan has considerably come down from 31% end March 2018 to 20% end December 2019.

- The corporate loan book comprises 12% construction finance, 4% corporate term loan and 2% lease-rental discounting with exposure to marquee real estate developers and repeat customers. Corporate book is spread across 150 unique developers, down from 156 end September 2019. Construction finance is spread over 114 developers and 153 projects. Corporate term loan and LRD are spread over 49 and 14 developers respectively.

- The top 20 developers with 62 loan accounts constitute 62% of the corporate book.

- As a part of continuous monitoring, the company had identified 5 accounts which were stretched. The loan outstanding to these accounts has declined from Rs 908 crore end March 2019 to Rs 819 crore end December 2019.

- The company has created 37% ECL provisioning in these 5 accounts, in addition to steady state provision of Rs 168.5 crore.

- Out of these 5 accounts, one account -Ireo moved into NPA in Q1FY2020 and two accounts - Radius and Supertech has moved into NPA in Q3FY2020.

- In the month of December 2019, there were concerns raised against one more developer - Omaxe. The company has disbursed Rs 635 crore to the developers for 3 projects in Chandigarh and Lucknow. The outstanding is Rs 418.5 crore with the security coverage of 2.3 times end December 2019. The entire exposure is in stage 1 end December 2019.

- The exposure to the Lodha group stands at Rs 1250 crore.

- Considering the external environment, the company has significantly reduced corporate loan disbursement and has also tightened its monitoring norms, while it would continue to remain cautious while lending to this segment till positive developments and improvement in the sector and macro economy.

- Gross NPAs is 1.45% on the AUM and 1.75% on the loan assets. The NPA includes 3 large corporate accounts identified as stretched in May 2019. Excluding the three accounts, the gross NPA would be 0.88% of the loan assets.

- Total provisions to assets stand comfortably at 1.52%. The provision coverage ratio for Stage-3 has moved up to 28.43% end December 2019 from 22.26% end September 2019.

- The Spread on loans stands at 256 bps and net interest margin is 311 bps in 9MFY2020.

- The disbursements degrew by 43% to Rs 15800 crore in 9MFY2020 against Rs 27518 crore during the same period of the previous year. Retail disbursements dipped 26% to Rs 14506 crore and the corporate finance disbursements plunged 84% to Rs 1293 crore.

- PNB has confirmed that they will maintain a minimum shareholding of 26% in the company while ensuring that the company has access to sufficient capital to meet its own growth objective.

Guidance for next 3 years - FY20 to FY23

- The assets are expected to grow at a CAGR of around 15-18%.

- The spread is expected to be anywhere between 200 to 215 bps.

- The gross margin is expected to be 330 to 350 bps.

- The OPEX to ATA is targeted to reach 56 to 60 bps

- The credit cost will be contained from the current financial year.

- The return on assets is expected to be in the range of 170 to 190 basis points.

- With the mentioned growth rate and post infusion of the planned equity in the current fiscal, the company is expected to maintain a steady state gearing of 7 - 7.5x with no further equity envisaged up to FY2023.

- ROE will be in the vicinity of about 14-15%.