Highlights:

With the continuous unlocking of the economy, the company has witnessed improvement in the business activity across the country.

The disbursement of the company are picking up on month on month basis and the company has a returned to pre-covid levels of disbursements.

The company has posted strong growth of 22% in the individual home loan disbursements for September 2020, while sustaining momentum the disbursement growth has accelerated sharply to 38% in October 2020. The disbursement growth remains strong for early November 2020 and expects double digit growth in disbursements for Q3FY2021.

The company has started new housing loan scheme for pensioners Gruh Varishta and already recorded disbursements of Rs 1000 crore.

About 29% of the retail disbursement came from the PMAY scheme.

The company has improved cost of funds reducing it by 26 bps in the September 2020. An incremental cost of funds has declined by 100 bps in Q2FY2021.

The high cost liabilities of Rs 16500 crore with the coupon rate of 8-8.5% are scheduled for redemption in H2FY2021. Further, liabilities of Rs 25000 crore with coupon of 8-8.2% are maturing in FY2022 which would help to further reduce its cost of funds.

The company has recorded collection efficiency of 96% for the entire book in September 2020.

As per the company, 3-3.5% of the customers with the exposure of Rs 6500-7000 crore are requesting for restructuring, while the actual restructuring would be lower. Of these customers one-third are in retail segment and balance in non-retail.

Top up loans amounts to 2-3% of disbursements

The company is well capitalized with the capital adequacy ratio of 13.89% end March 2020.

The company would decide on capital raising at appropriate point of time.

As per the company, the NPAs would have been higher by Rs 300-350 crore in the absence of Supreme Court.stay.

An incremental yield stands at 8.11% and incremental cost of funds stands at 5.81%in Q2FY2021. An incremental yield on individual home loans stands at 7.3-7.4%.

Currently, the credit cost stands at 15 bps, while the company expects the credit cost to rise to 20-21 bpsfor FY2021.

As per the company,3 big ticket accounts are in the final stage of resolution and expect a substantial amount of reduction in NPA in Q3FY2021.

Out of Rs 55 crore of other expenses, Rs 31 crore related to the CSR expenses. The company is appropriating to CSR expenses across the year compared with the practice of appropriating in the last quarter of the financial year earlier.

The company expects margins to remain stable or improve ahead.