Key Highlights

Disbursement for 9 months stood at Rs 22935 crore, up by 12% YoY and for 3 months disbursement stood at Rs 8421 crore, up by 10% YoY.

Loan against property (LAP) constitutes about 6.4% of total book. Average LTV stands at 25%. The ticket size of the LAP is also lower than the normal housing loans ticket size.

The developer loan book grew by around 44% YoY basis, although on a lower base of last year. Management expects settlement of one of the developer to happen in Mar'16 quarter, which was held up in the past

LAP book disbursements stands around Rs 3200 crore for 9 months ended Dec'15, sanction is about Rs 4000 crore for period ended Dec'15.

Both LAP and Project financing put together now constitutes around 9.2% of total loan book. Management aims that this loan book will form around 10% of total book.

During the quarter, in the individual loan segment the disbursement stood at 8067 crore a growth of 12% on YoY basis. Almost all the geographies of the country participated in the growth, but for Chennai due to the excessive rains and such related issues.

About 15 bps improvements in margins came from LAP portfolio, 15bps from lower costs of funds and around 7bps benefits in NIM came from conversions from fixed rates to floating rates. Management expects better margins in coming quarters.

Some transfers and higher exits of some of customers were seen during the quarter due to rate cuts in Q3 FY'16. As per the management, Portfolio retention is an issue and management is working on it.

As per the management, No teaser loan provisions required further as most of them are being provided. The increase in provisions is due to increase in book from LAP and Project and developer funding, as these loan books require higher provisions than the home loan book.

Around fixed rate book of Rs 8000 crore which will be converted to floating in Q4 FY'16 and for FY'17 around Rs 15000 crore is expected to be converted into floating rates.

Operating costs is higher due to increase in payment of commissions and agents. Also the company is doing brand building and advertising in LAP and developer side portfolio.

For FY'16, management expects Disbursement to grow around 15%, and on higher base of Q4 management expects higher disbursements to happen.