Highlights:

- Despite the challenging environment, the company continues to mobilize resources from various sources viz Bank term loans, ECB, Deposits, Securitization via direct assignment route etc. The company, incrementally, mobilized over Rs 45,000 crore post the liquidity crisis from September 2018

- The Company enjoys a very strong deposit franchise supported by highest rating and is the second highest deposit mobilizer in the HFC sector. Deposits as on 30 September 2019, stands at Rs 17179 crore which is 20% of total financial resources.

- RBI's announcement of raising the limit for on-lending of housing loans upto Rs 20 lakh to be qualified under PSL is another beneficial move for the Company as around 20% of individual home loan falls below the Rs 20 lakh bracket.

- With Rs 15118 crore of securitized book end September 2019, the Company has developed expertise in securitization through the direct assignment route. Securitized book is of 36 months vintage with GNPA of 0.19%. With an objective to contain gearing, the Company securitized Rs 3580 crore during Q2 FY20.

- On resource profile, 22% is contributed by Non-Convertible Debenture, 22% by Banks, 20% by Deposits, 17% by Direct Assignment, 8% re-finance from the National Housing Bank, 6% through External Commercial Borrowings (ECBs) and 5% by Commercial Paper.

- The Company has maintained adequate cash and liquid investments of Rs 4,557 crore end September 2019. Additionally, Company has healthy pipeline of sanctions from banks and financial institutions.

- On capitalization front, our CRAR as on 30th Sept 2019 is at 15.67% with Tier I at 12.69%.

- Assets under Management stood at Rs 89,471 crore with retail asset of Rs 72,595 crore constituting 81% of the AUM. Individual Housing Loans constitute 59% of the AUM.

- With the primary focus of raising equity, maintaining adequate liquidity with matching ALM, robust asset quality and reduced gearing the Company expects to maintain the current run rate of disbursement the for rest of FY19-20.

- The corporate Loan Book is 19% of AUM down by 1% on a sequential basis. This comprises 12% Construction Finance, 4% Corporate Term Loan and 3% Lease Rental Discounting. Lending in this space is primarily to marquee real estate developers and repeat customers.

- The corporate book is spread across 156 unique developers down from 163 end June 2019. Construction Finance is spread over 118 developers and 158 residential projects.

- The company had identified 5 accounts which were stretched had loan outstanding of Rs 908 crore end March 2019, which has reduced by 8% to Rs 833 crore end September 2019. The company has created over 33% ECL provision in these 5 accounts up from 21% end June 2019. The company has also increased the quantum of steady state provision by Rs 12 crore to Rs 169 crore.

- Out of these 5 accounts, one account IREO with security coverage of 2.5x, had moved into NPA in Q1 FY20. The developer paid Rs 39, crore resulting in principal outstanding reducing to Rs 111 crore, while the company expects to resolve this account by the end of the current financial year.

- The company expects credit cost at 60 bps in FY2020.

- The largest corporate exposure of the Company is to Lodha developers amounting to Rs 1,250 crore, for two projects i.e. Lodha World One and Trump Towers. The Company is the sole lender in both these projects. The security coverage in these projects is over 1.5x along, with additional security of personal guarantee of the promoter. There is no pending regulatory approvals and construction risk on these projects, to boost sales the developer has undertaken an intense marketing drive.

- Gross NPAs is 0.84% as a per cent of Loan Assets. The GNPA on Retail loans is 0.84% and on corporate loans is 0.83%. The GNPA on AUM is 0.73% end September 2019.