The company has exhibited pick up in disbursement growth posting 15% increase in the disbursements to Rs 8699 crore in Q1FY2018, driven by 17% increase in the individual loan disbursements to Rs 8286 crore, while the project loan disbursements have declined 14% to Rs 413 crore in Q1FY2018 over Q1FY2018. The disbursements in the core home loans segment stood at Rs 6894 crore and non-core segment at Rs 1391 crore in Q1FY2018.

Sanctions have improved at stronger pace of 20% in Q1FY2018, driven by release of pent-up demand. The company is confident of posting 15% sanctions growth for Q2FY2018.

The outstanding loan portfolio increased 15% to Rs 147051 crore end June 2017 over June 2016. The Individual loan portfolio increased 14% to Rs 141440 crore, while developer loan portfolio surged 49% to Rs 5611 crore end June 2017. The company expects to achieve loan growth of 15% for FY2018.

The company has launched a new loan product in the affordable housing loan segment in Q1FY2018. With growing focus of Government in the affordable housing segment, the company is confident of strong growth in the segment. The company expects to raise the share of affordable housing loans to 5-6% of the overall loan book in next 2 to 3 years. The company has sanctioned 2600 cases in the affordable housing segment valuing Rs 187 crore in Q1FY2018 and further sanctioned 1000 cases in July 2017.

The share of retail home loans was steady on sequential basis at 83.6% end June 2017. The share of developer loans stood at 3.8% and June 2017, while the company expects the share of developer loans to increase to 5-6% by and March 2018.

The share of a retail LAP loans stood at 13% and June 2017, while the company expects the share of LAP loans to increase further by 1-2 % by end March 2018.

The company has launched new regional offices at Bhopal and Patna, which are expected to provide administrative ease and also support loan book growth.

The company has exhibited increase in Gross NPAs to 0.72% end June 2017 from 0.43% end March 2017. Gross NPAs in individual moved up to 0.42% from 0.2% in Q1FY2018.

About 75% of fresh NPA additions were contributed by the retail loans segment, while balance 25% or Rs 120 crore came from 3 developer loan accounts from the cities of Mumbai, Delhi and Chennai in Q1FY2018.

As per the company, the retail NPA additions where mostly on account of temporary delayed payment and are not chronic in nature. The company expects to reduce NPAs to normal level during the rest of the year.

As per the company, the lower LTV ratio in the range of 35 to 40% for LAP and developer loan segments would help to protect asset quality.

Net interest margins for the Q1FY18 were lower at 2.50% as against 2.61% for Q1 FY17.  As per the company, the margins were impacted due to reduction in lending rates in May 2017, higher interest income reversal on account of fresh slippages of loans and increase in bond yields in April-May 2017. With the moderating cost of funds, the company expects to recoup margins to 2.7% in rest of the financial year.

An incremental yield on LAP loans stands at 10 to 11%, retail loans at 8.3-8.5%, and developer loans at 14%. The outstanding yields from LAP loans stands at 11%, retail 9% and developer loans 15%.

As per the company, the loan pre closure rate has been steady for last several quarters. The loan re-pricing pressure has been coming down, as most of the loans have been already repriced.

The company does not expect any provisioning pressure for rest of FY2018.

The capital adequacy position of the company is comfortable, while it do not expect any capital raising requirement the current year.