Key Highlights

Disbursement for June'16 quarter stood at Rs 7542 crore, up by 23% YoY. Individual loan book portfolio constitute around 88.5% of total book, LAP, LDR and others account for 9.3% and rest from developer loan book.

Individual loan book was up by 15% to Rs 123681 crore as on June'16 quarter on YoY basis.

LAP portfolio as on June'16 stood at around Rs 11000 crore and disbursement during June'16 quarter stood at Rs 1142 crore grew by 19% YoY. Yield on LAP is hovering around 11.9%.

Going forward for FY'17, management expects around 15% loan book growth for individual segment, and others will continue to grow, may be the pace may come down as the base is increasing. The others including LAP, developer loan book and others now account for around 12-13% of total loan book and management is comfortable with the exposure.

On individual retail loans, improvement was seen across the segments and across the geography in Jun'16 quarter. Western and Southern market grew higher than the other markets.

During June'16 quarter, there was an incremental borrowing of around Rs 9804 crore @8.7%. Management expects further reduction in cost. Margins can improve going forward with further reduction in costs.

During June'16 quarter there was an increase of Rs 30 crore in wage costs of which Rs 20 crore relates to arrears of past 5 years and Rs 10 crore relates to the increase in gratuity and other statutory provisions pertaining to arrears. Management expects some more small provision for wages will appear in next quarter as well. Incremental wage increase which is recurring is around 12% of total wage costs.

Provisions include Rs 92 crore of provision of a large project loan and due to ageing requirements, the entire loan was completely provided for. As per the management, while there is 1 more such project loan which is outstanding and which may require provision and which may come up either by the year end or may be first quarter in FY'18. The amount is less than Rs 92 crore duly provided in June'16 quarter.

Of the total Rs 757 crore of GNPA, around Rs 434 crore relates to individual loan book and around Rs 323 crore from project loan NPA's

CAR overall stood at 17.04% and management is comfortable with that. As of now no plans to raise any fresh capital.

As per the management, No teaser loan provisions required further as most of them have been 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.

For FY'17 around Rs 15000 crore fixed loan rate book is expected to be converted into floating rates. During June'16 quarter around Rs 3000 crore got converted.

As per the management, FY'17 is the best year where the individual loan book should grow fast as the challenges that were there in FY'16 is diminishing and more and more confidence is returning back among the home buyers.