Highlights:

Disbursement was up by 20% in Sep 17 quarter on YoY basis and stood at Rs 10975 crore.

Of the outstanding portfolio of around Rs 151417 crore, retail home loans account for around 82.9% of total book, LAP was around 13.2% and rest was from developer loan book.

There was a pickup in disbursement loan book in Sep 17 quarter as compared to June 17 quarter. Southern, Central and Western region has seen good growth. UP is the fastest State for the company in terms of disbursement growth followed by Gujarat and Maharashtra. Hyderabad and Karnataka are also growing well

As per the management, the pipeline is healthy and expects an overall disbursement growth of around 15% on YoY basis in FY 18.

GNPA has increased largely due to non-retail issues particularly the accounts on developer side. There are around 7 accounts of total around Rs 575 crore that are NPA and around 60% provisions have been made on these accounts. One account was recognized in Sep 17 quarter as NPA.

During Sep 17 quarter slippages stood at Rs 160 crore while recovery stood at around Rs 26 crore. Some more recovery of around Rs 30 crore expected in H2 FY 18.

Implementation of RERA has resulted in severe slowdown in real estate sector which is affecting the developer loan book. Expects things to improve from April 18 onwards in this sector.

On NIM side, the reduction in lending rates has affected the margins. 15 bps reductions in weightage average cost of funds in Sep 17 could not offset the fall in lending rates.

There has been a 45 bps reduction in incremental cost of borrowing which should address lower margins going forward

Going forward, affordable housing continues to deliver the volumes. Implementation of Rera will impact the real estate for next 2 quarters but then improvement is expected.

Loan book growth of around 15% in FY 18 with NIM of H2 FY 18 to be better than H1 FY 18 is expected by the management.

Around Rs 21000 crore of loan book came for reprising in H1 FY 18. Most of the loan book has reprised so no major loan book remains for repricing for H2 FY 18.

No large amount going into NPA in H2 FY 18

Incremental yield for core retail loans stands at around 8.8% on LAP, the yield stands at around 10.5% while on corporate developer portfolio, the incremental yield stands at 13%.