Highlights:

- The company now aims to be largely exclusively a retail focus business and with an asset-light model. It would look to keep only one-third of assets on books and the rest will be split between co-origination and loan sell downs.

- The company has capacity to source over Rs 40000 crore of retail loans a year through around 5,000 retail loan sourcing team, a robust online home-loan, loan origination and ample capital.

- An incremental disbursements would be split at 60:40 between home loans and MSME loan i.e. loans against properties. New origination would be done in the proportion of 40:40:20 between co-origination with banks, securitizations and smart city loans respectively.

- Of all the incremental business generated, only about a third will stay on balance sheet while the rest will be off balance sheet. Thus it will be asset-light which is ROE-accretive.

- For co-origination, the company has now entered into co-origination arrangements with a number of public sector banks. The company expect this business to build up scale over the course of the next few months.

- As the company looks forward to grow disbursements to about Rs 40000 crore of retail home loans and LAP over the next 12 months, It will achieved partially through financing of roughly about Rs 14000 to Rs 15000 crore through co-origination, another about Rs 15000 crore through loan sell downs and dependence on incremental borrowing will be restricted to less than Rs 10000 crore.

- As developer book runs down both in its normal course and through refinance, it would generate liquidity which can be deployed to extent retail loans.

- The company has the highest capital adequacy amongst all NBFC/HFC peers. The capital adequacy at the end of September stood at 28.93% compared with an average of 18.3% for the top five NBFCs excluding the company.

- The company has the highest level of on balance sheet liquidity at 19.3% of balance sheet in cash and liquid investment compared with 5.2% for the top five NBFCs.

- Maintaining liquidity at 15% to 20% of the balance sheet in cash and liquid investments is a strict and self-imposed discipline following for over 10 years now since 2008.

- Despite the book running down, the business continues to deliver ROA in excess of 2.5% and has consistently delivered ROEs of over 20%.

- The company is one of the least levered in the NBFC/ HFC sector with a net leverage of only 3.6x compared with an average of 6.1x for the top five NBFCs and HFCs.

- Gross NPAs at the end of September 2019 stood at 1.51% and net NPAs at 1.07%. The net NPAs have declined due to proactive provisioning and long-standing policy of using all one-off income to create provisions.

- The loan book declined 28.5% to Rs 82135 crore end September 2019.

- The spread on loan book is at 308 basis points which is well within guided range of 300 to 325 basis points. The company is confident of maintaining spreads in this range.

- The company expects strong recovery capabilities will ensure that asset quality is maintained.

- In the last five years, the company has recovered nearly Rs 2000 crore which correspond to over 70% of the incremental slippages in this period. For any unforeseen losses from the developer loan book, the company has Rs 3500 crore of buffer from an investments in OakNorth Bank. Besides, this pre-provisioning operating profit for the first half of this year is at Rs 2238 crore, which is also available for provisioning.

- All projects funded are metro-centric and there is no slums or SRA projects financed.