Highlights:

The performance was slightly impacted due to third wave and intermittent restriction in some part of the country. However, the business activity is expected to strengthen further with the expectation of receding pandemic in Q4FY2022.

Retail home loan book of the company has increased at a strong pace of 15% and accounted for 80.5% of the overall loan book end December 2021 compared with 77% year ago.

The disbursements of the company increased 5% to Rs 17770 crore in Q3FY2021, while the disbursement in the retail home loan segment rose 6% to Rs 15341 crore

The company has posted healthy 14% growth in net interest income, while the net interest margin also improved to 2.42% in Q3FY2022.

The growth in the disbursement is supported by all regions and it is spread across all geographies.

The company has exhibited decline in gross stage 3 assets to 5.04% from 5.14% a quarter ago. The provision coverage ratio on NPAs stands at 40% end December 2021, while the company would maintain provision coverage ratio above 40% ahead.

The stage 3 assets in the individual home loans segment declined to 2.1% and LAP/LRD segment to 9.0% end December 2021.

The company has covid related provision of Rs 327 crore end December 2021.

The company has re-categorized loans as NPAs in line with RBI notification dated 12 November, amounting to Rs 2497 crore and which are placed in stage 1 and stage 2 assets. The company has created provision of Rs 230 crore on these loans.

The fresh restructuring of loans stood at Rs 490.27 crore in Q3 substantially lower than 2141 crore in Q2FY2022.

The collection efficiency is a focus area of the company and the company has consistently improved collection efficiency to 99% for all regular account in Q3FY2022.

Despite hardening of interest rate by 24 bps on bonds in 9MFY2022, the company has reduced its cost of funds by 7 bps in Q3FY022. An incremental cost of fund stood at 5.27% in Q3FY2022.

About 60-65% of borrowings of the company are fixed rate, which provides advantage in rising interest rate scenario.

The company has also hiked lending rates by 10 bps from January 2022 and expects to maintain yield and margins ahead.

The credit cost was 48 bps in FY20, which increased to 60 bps in FY21 and spiked to more than 100 bps in H1FY2022. The credit cost has normalized to 60 bps in Q3FY22 and the company expects to maintain credit cost below 1% going forward.

The interest income in Q2FY22 was impacted due to interest income reversals of Rs 350 crore in restructuring of loans, while there is no one-off in revenues for Q3FY2022.