Key Highlights

There was around 6% growth in individual loan book in Dec'16 quarter as compared to around 9% in Sep'16 quarter. Post demonetization, growth started only from second fortnight of Dec'16 onwards.

There was around 11% increase in sanctions for 9 months ended Dec'16 and stood at around Rs 25000 crore for individual loan segment

Management expects strong disbursement growth in Mar'17 quarter, upwards of 15%.

Management stated that its focus will continue to be on retail business. In Jan'17 lot of initiatives have been launched in affordable housing segment and management expects a very strong growth in Mar'17 quarter. The inquires are very high. Further, everybody expected the rates to come down post demonetization, and hence lot of pent up demand is there. This should translate into a very strong Mar'17 and June'17 quarters going forward.

Incremental cost of fund has declined from Nov'16 onwards. The incremental cost of funds stands at around 7.83%.

There was around 15 bps improvement in NIM which stood at 2.67% for 9 months ended Dec'16.

High cost liability costing around 9.4% are maturing in Mar'17 significant reprising benefits will come in going forward particularly for FY'18.

Asset quality continues to improve and management does not see any stress going forward.

Provision includes around Rs 7.45 crore wage revision provisions which was the last quarter for such requirement of provisions.

Overall, FY'18 looks quite positive with improvement demand, government schemes and low interest to follow

LAP disbursement for Dec'16 quarter stood at around Rs 1600 crore. The share of high margin business ie LAP continues to be around 10% of total book and this will remain going forward. Yield continues to remain healthy at around 11%.

Management continued to reiterate that LAP and project development loans, together will continue to remain around 13-14% of the total loan book going forward.

There is a significant increase in competition from Jan'17 onwards from banks, but with the cost of borrowings coming down, management is confident of at least maintaining NIM, if not improve going forward due to competition. Further, the rate reduction will be gradual, and with demand so high, growth should not be a problem. While its too early for FY'18 loan book growth, but management expects around 15% is quite possible in FY'18.

Around Rs 5000 crore of assets will come for reprising in H1 FY'18.

The company has launched new product for Central and state government employees given the 7^th 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.

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 only in FY'18.