Highlights:

• Anticipating the liquidity challenges, the company maintained additional liquidity of Rs 6000 crore as on 31 December 2018.
• The loan book of the company surged 28% Rs 70717 crore, while overall AUM jumped 38% to Rs 79737 crore end December 2018 over December 2017. The company has posted marginal 1% growth in the disbursement to Rs 9345 crore in Q3FY2019.
• The net interest margin was healthy at 3.06% in the quarter ended December 2018, compared with 2.72% in the preceding quarter and 3.02% in the corresponding quarter last year.
• On the Liability side, the company raised over Rs 22500 crore during Q3FY2019 utilizing multiple avenues like ECB, NHB refinance, Deposits, Securitization via direct assignment, Commercial papers, etc.
• Among the recent borrowings of Q3FY2019 the pertinent ones are Rs 3500 crore of loan sanction from the National Housing Bank and Rs 3324 crore of fresh ECBs.
• On the Deposits side, the company continues to be the second largest deposit taking HFC in the country. The deposits with the company have increased 23% to Rs 13085.7 crore at end December 2018.
• Geographically, West is largest market with 38% of AUM followed by North and South at 31% each. The company has limited presence in East with three branches - two in Kolkata and one in Bhubaneswar which forms a part of the North zone.
• The company securitized loans worth Rs 5,800 crore in 9MFY2019 through the direct assignment route. The total outstanding loans assigned amounts to Rs 9019 crore end December 2018.
• Housing Loans constitute 70% of AUM and non-housing loans constitute the balance 30% and is in line with the business mix maintained in the previous several years. In the Housing Loan segment, Individual Housing Loans constitute 57% and Construction Finance for residential properties constitute 13% of the AUM.
• In the non-housing segment, loan against property constitute 16% of the AUM, lease rental discounting, non-residential premises loans and corporate term loans constitute the remaining.
• About 16 branches were made operational in 9MFY2019, totaling to a three digit number of 100 branches with presence across 60 unique cities.
• Gross NPA ratio increased to 0.47% at end December 2018 from 0.45% a quarter ago and 0.42% a year ago. Meanwhile, Net NPA ratio rose to 0.37% at end December 2018 from 0.35% a quarter ago.
• In Wholesale book, the company has maintained nil NPA end December 2018 which is due to the stringent norms for customer selection, credit underwriting and project monitoring mechanism.
• On resource profile, 30% is contributed by non-convertible debentures, 17% by bank line, 17% by deposits, 12% by direct assignment which is securitization, 11% by commercial paper, 7% refinance from the National Housing Bank and 6% to ECB.
• The capital adequacy ratio stood at 14.49% of which tier-1 capital is at 11.37% and tier-2 capital is at 3.12% end December 2018.
• As an update to the stake sale, the company received letter from the Punjab National Bank on their intention to independently sell the stake in the Company. The process is currently underway.
• Securitization is the business as usual for the Company and it has been maintaining at about 10% of total assets will be securitized year-on-year. The company had indicated that securitization would be Rs 7000 crore in FY2019. The company has completed net securitization of about Rs 5100 crore, leaving room for Rs 1900 crore securitization in Q4FY2019.
• A two year lagged NPA were at about 0.67% end March 2018 against the industry of 1.6%, and that delta spread is only increasing, and the same story is going to remain as of 31 March 2019.
• Incremental yields are smarter than the previous ones and as a consequence of which it is about a good positive of 10.01% for Q3 FY18-19 on the entire portfolio. Incremental yield for HL is at 9.30%, CF is at 11.67% and NHL is 10.67% including LAP at 10.55%.
• The corporate term loan book stand at Rs 3600 crore, which is 100% secured. The security value or the DSCR in the credit parlance will be at least 1.5x and the repayment of these loans is through earmarked escrowed cash flows of very marquee brands
• The average gearing has reached almost 9.2x and the company is comfortable till it rises to 11x, when it will start preparing for the next capital raise and by 12x-13x the capital will be inside the Company.
• The wholesale book will continue at be at around 20% of the total portfolio.