The loan assets of the company increased 23% to Rs 10610 crore at end March 2017 from Rs 8634 crore at end March 2016. The outstanding credit i.e. aggregate of loan assets and non-fund based commitment against sanctioned loans grew by 39% during FY2017.

While the growth momentum continues in renewable, the company has remained very selective in financing projects and promoter groups. The recent strategic move to gradually shift from power generation projects is yielding results. The debt sanction to other areas constitutes about 15% of the total sanctions during the current year. While the margins continue to remain under pressure, the fee based income increased to Rs 85 crore in FY2017 recording an increase of 70%.

Quarterly performance

Interest income rose 3% to Rs 263.85 crore in Q4FY2017 compared to Rs 256.01 crore in Q4 FY2016. Net Interest Income (NII) fell 2% to Rs 112.52 crore in Q4FY2017 compared to Rs 114.81 crore in Q4FY2016. Net Interest Margins (NIM) declined to 4.76% in Q4FY2017 from 5.44% in the previous quarter and 5.76% in the corresponding quarter last year.

The other operating income, mainly comprising fee based income jumped 159% to Rs 36.18 crore in Q4FY2017, compared to Rs 13.97 crore during Q4 FY2016. The company has earned an income of Rs 131.02 crore in Q4FY2017 from the sale of investments. Total revenue galloped 60% to Rs 431.05 crore in Q4FY2017 compared to Rs 269.98 crore in Q4FY2016.

The operating expenses increased 11% to Rs 10.1 crore, while provisions zoomed 125% to Rs 98.14 crore in Q4FY2017 over Q4FY2016.

During the quarter, provision for contingencies of Rs 98 crore includes additional provision of Rs 33 crore for non-performing assets, Rs 21 crore in respect of standard restructured assets and Rs 29 crore in respect of diminution in fair value of equity investments including under SDR.

Profit Before Tax (PBT) increased 145% each to Rs 172.96, while PAT moved up 124% to Rs 109.76 crore in Q4FY2017.

Business highlights

Total outstanding loan assets increased 23% to Rs 10610 crore end March 2017 from Rs 8634 crore end March 2016. The non-fund based commitment to be disbursed in coming quarters aggregates to Rs 1732 crore end March 2017.

Total cumulative effective debt sanctioned stood at Rs 20510 crore end March 2017.

Yield on loan assets stood at 11.17% in Q4 FY2017, whereas Cost of borrowed funds was 8.46% during Q4 FY2017. Net Interest Margin (NIM) and Spread stood at 4.76% and 2.71% respectively for Q4FY2017.

During the quarter, one loan account with an exposure of Rs 125 crore has been re-classified as non-performing asset. The GNPA ratio rose to 5.51% at end March 2017 from 4.78% a quarter ago and 3.40% a year ago. NNPA ratio stood at 3.78% at end March 2017 compared with 3.32% a quarter ago and 2.35% a year ago.

The book value of the company stood at Rs 37.67 per share at end March 2017, while adjusted book value (accounting for NNPA and 25% of restructured advances) stood at Rs 29.59 per share at end March 2017.

Annual Financial Performance

Interest income grew by 21% to Rs 1113.69 crore in FY2017 compared to Rs 921.41 crore in FY2016. Net Interest Income (NII) moved up 17% to Rs 483.4 crore in FY2017 compared to Rs 414.17 crore during FY2016. The other operating income, mainly comprising fee based income jumped 61% to Rs 94.49 crore in FY2017 compared to Rs 58.58 crore in FY2016. Total revenue increased 14% to Rs 1350.79 crore in FY2017. The operating expenses moved up 19% to Rs 35.94 crore, while provisions jumped 50% to Rs 142.57 crore in FY2016. PBT fell 1% to Rs 528.68 crore. The effective tax was higher at 34.7% in FY2017 compared with 26.4% in FY2016. PAT dipped 12% to Rs 345.33 crore in FY2017.