Highlights:

The company witnessed its best quarter with record high disbursements in Q4FY2021, which have been rising continuously month over month. The disbursements have been spread across the country, with the affordable housing segment contributing 34% of disbursements in Q4FY2021.

The loan growth has accelerated to 10% end March 2021 with individual loan book growth rising to 12%.

The mobile app of the company Homi has crossed 1 million downloads, while its contributing increasingly to the business.

The company has substantially improved NIM to 2.66% in Q4FY2021 from 2.17% in Q4FY2020.

The funding environment and liquidity position of the company remains comfortable. The company witnessed a 30 bps reduction in cost of funds in Q4FY2021 and 150 bps in FY2021. An incremental cost of funds stood at 5.15% in Q4FY2021 and 5.62% in FY2021.

The company has raised Rs 800 Tier II bonds in Q4 FY2021, in addition to Rs 1000 crore in Q3FY2021.

Asset quality is the top focus area of the company. The NPAs of the company have increased on recognition of NPAs after the Supreme Court allowed the recognition of NPAs.

However, the company has raised provisions gradually to Rs 3971 crore and the provision coverage stands at 42% end March 2021. This includes Rs 525 crore of covid related provisions

The company has created significant provisions of Rs 985 crore in Q4FY2021, which includes provision for creation of impairment reserves of Rs 284 crore.

The project RED is progressing rapidly and is expected to be completed in the next one and half year and would make the company a digitally transformed company.

On collection efficiency front, the regular accounts have collection efficiency of more than 90%

With all efforts in place, the company does not expect any significant weakening of asset quality ahead.

As per the company, the restructuring under RBI guidelines for Restructuring 2.0 on account of second wave of covid are expected to be upto 1% of loan book.

The board of the company has approved preferential allotment of 4.54 crore share to the promoters. The company sees this capital raising from promoters to be sufficient to support growth.

There is significant headroom to raise Tier II capital.

There is a lot of pent up demand across the regions. Disbursements in April-May 2021 have crossed Q1FY2021 level. Vaccination programs, stable real estate prices and low interest rates are expected to support housing demand. Thus, the company is focusing on double digit AUM growth for FY2022.

The NPAs in the project loans have increased by Rs 300 crore in Q4FY2021. GNPA has increased to 18% from 16%, while loan book is flat.

The NPAs in the individual housing loan book was 1.89% end March 2021 from 1.07% end December 2020 and stood at Rs 3400-3500 crore.

The project loan GNPA stood at Rs 3000 crore other loan GNPA also stood at Rs 3000 crore.

As per the company, NCDs worth Rs 25000-28000 crore are coming for redemption in FY2022.

Under SWAMIH fund, there are 5 cases of which 3 cases have started projects.

The LRD book stands at Rs 8000 crore and NPA stands at 3-4% on account of delay in rentals.