Highlights:

The loan disbursement of the company have dipped by 34% in the quarter ended March 2020 over the corresponding quarter of last year on the account of business lost in the 4th week of March 2020 due to nationwide lockdown in India.

The company has still posted marginal growth in individual home loan disbursement for FY2020.

The disbursements in affordable housing segment under PMAY have jumped 52% to Rs 11200 crore in FY2020 and stood at Rs 3100 crore in Q4FY2020. The company is confident about healthy demand in affordable housing segment and expect the segment to remain growth engine.

As per the company the disbursements have started picking up now. The company has disbursed Rs 2000 crore of loans so far mostly in tier 2 and tier 3 cities, while its expects the disbursements to go up going forward with healthy demand in the affordable and mid housing segment.

The fresh sanctions in first 15 days of June were strong at Rs 2000.

The company is lending selectively in the project loans segment to quality projects.

The LRD book of the company is below Rs 4000 crore.

The company offered 3 months moratorium on its customers from March 2020 to its customers in line with the Reserve Bank of India guidelines and 25% of the loan book by value is under moratorium.

Within the book under moratorium, 75% is developers and retail is 25%. In overall moratorium, 15-16% customer under moratorium by numbers. About 12-13% individual housing loans and 35% LAP loan book is under moratorium.

The loan book under moratorium is reducing at customers are paying. Around 21000 accounts under moratorium have started payments.

The collection efficiency stood at 92% in non-moratorium loan book.

The company has formed teams to track moratorium accounts. The focus is on bringing moratorium accounts back on track after moratorium period ends.

The company has witnessed 10 bps rise in GNPA to 2.83% in Q4FY2020.

The company has witnessed 41 bps decline in cost of funds in FY2020, while an incremental cost of funds has declined by 51 bps. Funding environment is favourable. Funding cost outlook is positive and cost of funds would decline ahead.

All offices of the company are open and operating in line with guidelines.

Tax rate higher in Q4FY2020 at 49% due to reversal of DTA and shift to new lower corporate tax rate.

The collection in the last week of financial year is almost 15%, which impacted the margins. Further the moderation in loan growth and mix of incremental disbursements impacted margins.

The focus on low yield retail loans would maintain pressure on margins. The company would try to stabilize margins or improve by March 2021.

An incremental yield is at 8.3-8.4% for retail loans, 10-10.5% for LAP and 12-13% for developer loan segment.

The company is adequately capitalized and will take call when needed. The loan growth has moderated and project loan disbursements have dipped which reduce pressure on CRAR.

CRAR tier I ratio is steady in Q4FY2020, while the company has exercised call option for Tier II for Rs 500 crore. The final CRAR figures for end March 2020 will be released after sharing with NHB.

The GNPA ratio stands at 17% or Rs 2500-2600 crore in the developer loan book, up by 300 crore from multiple accounts in Q4FY2020. Stage 2 developer loan book stands at 2.5% end March 2020.

Developer book stage 1 loan book stands at Rs 11323 crore, stage 2 at Rs 362 crore and stage 3 at 2530 crore.

The company has 17 accounts with exposure of Rs 1100 crore under SWAMIH fund managed by SBI. Of which 1 account is resolved and the company expect some more resolution by September 2020 and year end.

The operating expenses increased sharply due to Rs 40 crore from CSR expense.

The company is comfortable on asset liability management front, which is much better than earlier quarters.

The other income is negative for the quarter ended March 2020 due to Forex losses relating to ECB borrowings in the month of December 2019. The ECB facility is fully hedged and the forex loss related entry is neutral.

The company has applied four different scenarios while arriving at Covid 19 related provisions and the company has been conservative on provisioning. The company has one of the best in the industry provision coverage on stage 3 asset at 44%. The loan to value on the portfolio basis is 40% and at the sanctioning level is 50%.