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The company held its conference call on 21st October 2016 and was addressed by Miss Sunita Sharma Managing Director & CEO
Key Highlights
Disbursement for Sep'16 quarter stood at Rs 9123 crore, up by 9% YoY. Individual loan book portfolio constitute around 88.5% of total book, LAP, LDR and others account for 10% and rest from developer loan book.
Individual loan book was up by 10% to Rs 8755 crore as on Sep'16 quarter on YoY basis. Disbursement on home loan segment registered a growth of 13% on YoY basis. Southern, Eastern and Western geography continue to do well.
In core business of the company ie the individual loan book grew by around 13% for H1 FY'16-17. Going forward management expects the growth momentum in the peak season ie in H2 FY'16-17 will be even strong. Approvals in Sep'16 of individual loan book have also seen strong uptick.
The company has launched new product for Central and state government employees given the 7th pay commission payouts. This will result in higher core loan book growth going forward. Management expects its positive effect will remain for next 4 quarters.
The share of high margin business ie LAP continues to around 10% of total book and this will remain going forward. Yield continues to remain healthy at around 11%.
Disbursement in project segment rebound in H2 FY'17 and yield continue to remain healthy at around 14%.
The company's incremental cost of borrowing is much below 8% and the company is borrowing more through corporate bonds. The share of high costs bank borrowing has come down below 10%. Management expects the benefits of lower costs to continue to remain.
As per the management, the asset continue to remain of impeccable quality and there will be no surge in NPA going forward as well
Around Rs 3000 crore of loan book has moved from fixed to floating in Sep'16 quarter and in June'16 quarter the number was also the same.
The wage costs include around Rs 9 crore of wage arrears of the past in Sep'16 quarter.
Tier 1 capital is at around 14% and hence no incremental capital is required currently for future growth. No plans to raise any funds as of now.
Floating book is around 61% of total individual loan book. Incremental 70% of loans are on floating loans.
There are no further updates on the provision of a project loan which is outstanding. An update will be provided by the year end or in the 1st quarter of next year.
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