Highlights:

The strong momentum witnessed in the economy is supporting strong growth in disbursements. The overall disbursements of the company have surged 76% with 72% growth in the individual home loan segment. The growth in the disbursements has been spread across regions.

The digital app of the company ‘Homi” has added Rs 6500 crore of sanctions in Q1FY2022.

The company is seeing strong demand in individual home loan segment across the country. The company expects the individual home loan segment disbursements growth at 12-15% for FY2023.

The loan book growth of the company has improved to 10% end June 2022 from 8% end June 2022.

The individual home loan book growth has been healthy at 15%, while its share in loan book has improved to 82% of overall book from 78% last year.

The company has recorded strong 26% in net interest income in Q1FY2023. The net interest margin of the company has improved to 2.54% from 2.2% last year.

RBI has hiked repo rate by 90 bps in Q1FY2023, while the company has also hiked its prime lending rate by 60 bps. The RBI has further hike repo rate in August 2022 and the company expects to hike its lending rate ahead.

The stage 3 loan book of the company has increased to 4.96% end June 2022 from 4.64% end March 2022, while declined from 5.93% end June 2021.

The provisions of the company have also increased to Rs 6145.03 crore end June 2022 from Rs 4727.02 crore end June 2021. This includes covid related provisions of Rs 619 crore.

The cost of funds has declined to 6.7% from 6.88% last year. an incremental cost of funds stood at 5.44%.

The restructure loan book of the company stood at around Rs 3000 crore end June 2022, of which Rs 2100 crore is having interest as well as principal moratorium and another Rs 1000 crore is partly under moratorium this is inter servicing but principal moratorium.

The slippages from the restructured loan book were Rs 400-450 crore in Q1FY2023.

The company is cautiously optimistic in the developer loans segment but expects to improve book size to 7-8% from existing 5% of overall loan book.

The cost income ratio has come to normalized level. Last year there was wage arrears payment causing spike in cost to income ratio. The cost to income ratio will be maintained stable. The company has lowest cost to income ration among the HFCs.

The company expects to maintain stable margins in FY2023 over FY2022, despite multiple repo rate hikes.

Despite 90 bps hike in policy rate from RBI in Q1FY2023, the company has witnessed only 20-25 bps rise in the cost of funds for the quarter.

The effective tax rate for the company is lower on account of benefit on transfer to special reserves and long term lending. The company expects effective tax rate at 18-19%.