Highlights:

The company witnessed very good quarter in Q4FY2022. The housing demand has showing healthy pick up in H2FY2022.

The company has recorded all time high disbursement and AUM level in Q4FY2022.

The net interest margin of the company improved to 4.15% in Q4FY2022 from 3.74% in the previous quarter. As per the company, the positive carry on excess LCR investments contributed 12 bps to NIM compared with 9 bps in Q3FY2022.

LCR requirement is Rs 350 crore, while the company is holding excess investment of Rs 1000 crore.

The company has hiked lending rates twice since April 2021 supporting an improvement in yield and spreads.

As per the company, an improvement in NIM is also supported by strong growth in the other income.

The cost of funds rose slightly with rise in incremental cost of funds to 5.03%. The company expects an incremental cost of borrowings may go up by 100-125 bps in next 1 year.

An incremental yield stood at 8.07%, outstanding book yield was 8.11%.

The company has continued to maintain strong asset quality, while improved PCR to 52.69% end March 2022.

The share of commercial papers has decline in borrowings to 11%, while NCDs increased 14% and deposit stood at 2%, NHB 22% and Bank 52%.

The company has liquidity of Rs 4300 crore of in terms of bank sanction available.

The home loans accounted for 90% of loan book, top up is 4%, LAP 4%, project site 1% and other 1%.

The salaried segment accounted for 74% of loan book. Non-salaried segment is showing pick up with the reducing impact of pandemic.

There is no change in the ticket size. Average loan ticket size was stable at Rs 21 lakh.

The LTV ratio stood at 67% up from 65% earlier.

The housing demand is strong all across regions and geographies, while the company has decided to go slow in slow in Delhi NCR region.

The company has presence in 22 states, with south region accounting for 65% of AUM and other at 35%. The share of Karnataka in loan book has declined to 23-24% from 34% a few quarters back.

The company aims to add 10-12 branches in next 12-14 months.

The company has exhibited substantial decline in GNPA and NNPA ratio with higher recoveries than NPA additions. The actions under SARFAESI, OTS and upgradation contributed to NPA reduction.

The NPAs of the company are in line with new RBI regulations.

The restructured loan book of the company has declined to Rs 676 crore end March 2022 from Rs 690 crore end December 2022.

The stage 2 loan book stands at Rs 1270 crore and stage 3 at Rs 170 crore end March 2022. The company carries provisions of Rs 34.83 crore on stage 2 loan book. The company also carries provision of Rs 67 crore against restructured loans, Rs 98 crore for standard assets,

Incremental borrowing is Rs 5000 crore in FY2022. The outstanding borrowings stood at Rs 24600 crore end March 2022.

The balance transfer out has declined to Rs 293 crore in FY2022 from Rs 543 crore in FY2021, with the strong team and aggressive customer retention strategy.

The company would focus on maintaining revenue growth higher than opex growth.

The company expects to maintain spreads at 2.5% and NIM at 3.5-3.75% on steady state base.

The company is focusing on revamping its IT infrastructure in next 12-15 months, which would help to reduce TAT.

The company expects credit cost at 0.4% for FY2022.

The company has approval for capital raising for Rs 1000 crore, while the would be raising part of approved capital in next 2-3 quarter.

The CRAR stands at 23.3%, which is mostly Tier I capital. The company is planning for capital raising for reducing debt-to-equity ratio and to be future ready for growth.

Insurance income is Rs 6 crore in Q4FY2022 showing uptick from Rs 3.6% crore in the last quarter. Insurance income growth is linked to disbursements growth.

Investment expense is causing cost-to-income ratio to remain higher at 17-18%.

The company expects to maintain loan growth at 18-20%.