Highlights:

There is strong surge in the recovery from the effects of pandemic and lockdown.

Significant growth in the economic activity especially in the housing and real estate shows the resilience and inherent demand strength.

The company has witnessing consistent month on month improvement in the disbursement with strong 28% growth in disbursement for Q3FY2021 with individual home loan segment clocking robust 36% growth in the disbursement. The disbursements have maintained positive trend for January 2020.

The growth in the disbursement is unformally spread across the country and the affordable housing segment contributed 32% of the overall disbursements in the quarter ended December 2020.

The lowest interest rates, lower prices and incentives for the housing sector in terms of stamp duty reduction have boosted the sentiments in the housing sector.

The various initiatives taken by the company in terms of new product such as Grih Varisht for pensioners, new digital initiatives have also boosted the growth

The home loan app of the company has more than half million downloads and contributed Rs 1800 crore to disbursements.

The company has improved net interest margin to 2.36% in Q3FY2021 from 2.34% in Q2FY2021.

The company has reduced cost of funds by 36 bps qoq and 83 bps yoy, while an incremental cost of funds stands lower at Rs 5.25%. The funding environment and liquidity condition of the company remains favourable.

The company improved spreads by 23 bps in 9MFY21.

The company has raised Rs 1000 crore of tier II bonds in Q3FY2021 improving the capital position of the company.

The project Red in association with Boston Consulting Group is progressing well, which is aimed at making the company hi-tech and digitally advance housing finance company in next one and half year.

On asset quality front, last three quarters witnessed series of development such as moratorium, one-time restructuring etc.

The company has improved Stage 3 asset to 2.68% end December 2020 from 2.79% a quarter ago and 2.73% a year ago.

The company has raised provisions to Rs 2948.05 crore, which translates to provision coverage ratio of 50% from 47% a quarter ago.

The company has created covid related provisions of Rs 211 crore and further Rs 186 crore of provisions on likely impairment of assets post Supreme Court standstill on asset quality.

The company has received applications from customer for one time restructuring under RBI framework for covid related stress. These applications are under review and the company has not implemented any restructuring so far.

The collection efficiency of the company has improved substantially to 98% in December 2020.

Overall the company expects the impact of covid 19 stress and Supreme Court standstill at up to 1% of loan book with includes additional NPAs as well as restructuring. In absolute terms, additional NPAs and restructuring of loans is expected at Rs 2000-3000 crore, which is lower than earlier estimate of Rs 4000 crore.

As per the company, the liabilities amounting to Rs 7000-8000 crore are due for maturing in Q4FY2021 and Rs 20000 crore in FY2022.

The exposure to SWAMIH fund stands at Rs 1400 crore with 14 cases.

The GNPA ratio for individual loans stood at 1.62% and project loans at 16% (Rs 2532 crore in absolute terms. The GNPA ratio for individual home loans stands at 1.07%.

The Stage 2 loans stands at 6.95%, of which individual loans is below 7% and projects loans is slightly higher but below 10%%

The company has witnessed some recoveries of loan in Q3FY2021, while its expecting more recoveries of large ticket loans before March 2021.

The company expects margins to remain stable or improve marginally ahead.

About 60% of liabilities of the company are fixed rate, while 90% loans are flexible rate.

The focus of the company is on good quality customers and better asset quality with best rates offerings.

The yield on home loans is 7%+ and the lowest rate offered stands at 6.9%.

The developers loan yield stands at 13%, while incremental yield is slightly lower at 11-12%.

Maharashtra and Gujarat has 15% share in disbursement in 9MFY2021

The average ticket share has moved up to Rs 27-28 lakh up from Rs 23-24 lakh, as lower rates and prices raises affordability.