Highlights:

The company has completed 35 years of operations since inception. It achieved a millstone of an AUM of Rs 30000 crore end December 2022, while posting growth of 20%.

The disbursement have increased 15% to Rs 5500 crore in nine months ended December 2022.

The asset quality was stable and the company has well contained NPAs at low level.

The housing demand remains intact despite rising cost and the company expects the demand to continue to remain healthy.

The borrowings of the company stood at Rs 27800 crore end December 2022.

The company has raised borrowings of Rs 900 crore from NHB in Q3FY2023 against the sanctioned limit of Rs 1500 crore. As per the company, the borrowing cost for NHB borrowings is 200 bps below market rate. The NHB accounts for 23% of the overall borrowings of the company.

The company has raised funds NCDs in Q3FY2023 due high year demand for NCDs and better rates.

About 72% of the loan book of the company is yet to reprice and its repricing over next 3 to 6 months would be providing significant support to interest income.

The net interest margins have bottomed out and the company expects NIM and spreads to improve ahead.

The company has hiked lending rates by 135 bps in last 9 months.

The credit cost stood at 0.06% in 9MFY2023 and the company expects the credit cost to remain at current levels with strong asset quality.

The company expects PCR will move up going forward on account of ECL provisions.

The borrowing cost of the company get reset on quarterly basis and any downward trend in cost of borrowings would immediately benefit.

The company also sees 20 bps hikes in lending rate ahead if required to achieve required spreads.

The company is targeting 18-20% growth in the disbursements for FY2023. The disbursements have been higher in Q4 than in Q3 and in Q2. Thus, the company expects better growth in disbursement and loan growth in Q4FY23.

The bank is holding provisions of Rs 67 crore restructured loan book and overall additional provisions stands at Rs 221 crore.

The restructured loan book of the company stands at Rs 701 crore end December 2022.

The card rate stands at 9.6% and the company provides 25 bps concessions for new prime customers.

Despite lending rate hike, the balance transfer out is stable and there is no challenge to book and disbursement growth. The balance transfers out have declined to Rs 100 crore compared with Rs 300 crore 3 years ago when lending rate were high.

New managing director is expected to join the company by the end of current financial year.

The restructured loan book repayment is expected to start in staggered manner. About 30% of restructured loan book have started payments.

The stage 2 asset of the company stands at Rs 1000 crore end December 2022, which have remained steady for last three quarters. The provisions on stage 2 asset stand at Rs 48 crore.

The company has disbursed loans to 12000 accounts in Q3FY2023 up from 10500 accounts in Q2FY2023.

There is no discussion on stake sale from promoter Canara Bank.

Top 50 branches contribute 40% of AUM and 35% of disbursements.

The company has added 5 branches in FY23 so far and it aims to add 5-7 branches every year.

The company targets NIM of 3.5% and spreads of 2.4% for FY24 with loan growth of around 20%.

About Rs 12000 crore of borrowings of the company are already repriced.

The rejection rate stands at 11% at the point of sourcing.

IT spending is planned at Rs 200 crore under 7 years program.