Business Highlights:
All Quarters of this financial year performed good except first quarter which was hugely impacted due to the Second wave of the pandemic.
Q4 FY22 is all time high for both disbursements and book growth.
From April 1, 2021, Interest rates are increased twice which had positive impact on NIM and Spread.
Almost all Regions shown increased growth/demand except NCR Delhi Region, focus of growth opportunities is 65% on South regions and 35% on North regions.
Other Income increased significantly due to increased focus on Insurance income and affordable housing.
Preparing for the approval of shareholders to raise 1000 crores equity capital.
In portfolio mix, share of housing loans is at 90%, share of Non housing loans is at 10% and Others share is at 1%.
In profile mix, salaried and professionals share is at 72% and non salaried and non professionals share is at 28%.
In Ticket size 3% of the portfolio is >50,00,000/-, Average ticket size is at 21 lakhs for Q4 FY22 compared to 18 lakhs in Q3 FY22.
There will be a reduction in Net Interest Margin in future but on a steady state NIM will be around 3.7% to 3.75%.
Balance Transfers are decreased to 293 crores in Q4 FY22 from 523 crores in Q3 FY22 due to aggressive customer retention strategy.
Working on cost optimization which is a continuous effort to reduce operating expenses, since the business is growing operating expenses are tend to increase.
Liquidity of the company is 4300 crores, these are bank sanctions which are not awailed.
Profitability Numbers:
Net Interest Margin is at 4.15% in Q4 FY22 compared to 3.74% in Q3 FY22.
Net Interest Income is at 237 crores grew by 15% Q-o-Q and 28% YoY.
Spread is at 2.55% in Q4 FY22 compared to 2.49% in Q3 FY22.
Earning per Share is 9.23/-
Insurance Income is at 6 crores in Q4 FY22 compared to 3.7 crores in Q3 FY22.
PAT is at 123 crores grew by 6.24% Q-o-Q and 20% YoY.
Asset Quality:
For Q4 FY 22, Gross NPA is at 0.64% and Net NPA is at 0.30%.
Book growth is at 21% for Q4 FY22.
Disbursements growth is at 90% for full year and at 35% YoY.
There is no change in LGD, stage 1 is at 0.33%, stage 2 is at 18% and stage 3 is at 79%.
Liabilities:
CP share at 11%, NCD share at 14%, Deposits share at 2%, NHB share at 22% and Banks share at 51%.
CP share decreased by 8% and NCD share increased by 7% during this Quarter.
Residual Maturity of commercial papers is 1 year and CPE is at 11% for Q4 FY22, LCD is increasing.
Provisions:
PCR is at 52.69% in Q4 FY2 compared to 45% in Q3 FY22.
Provisions of 15 crores are added in Q4 FY22, restructured provisions are at 67 crores, standard asset provisions are at 98 crores and remaining is for NPA.
87 crores are provided for covid provisions in last year are utilized in subsequent quarters, since the performance is stable, more provisions are created.
From total restructured book 42 crores has come down due to customer repayment, Amount written off is 1.69 crores for Q4 FY22 from provisions.
Outstanding Restructured Book is at 676 crores.
Costs:
Cost of Funds are increased slightly, At portfolio level, cost of funds is 5.56% and incremental cost is 5.03%, incremental yield is 8.07% and portfolio yield is 8.11%.
Credit Cost is at 0.4% in Q4 FY22 compared to 0.36% in Q3 FY22.
Employees and Branches:
Based on productivity, Average business per employee is at 29.97 crores in Q4 FY22 compared to 26 crores in Q3 FY22, Average business per branch is at 136 crores in Q4 FY22 compared to 147 crores in Q3 FY22.
Planning to open 6 new branches in near future and 10-12 branches to be opened in upcoming quarters.
Digital Transformation Initiatives:
Working more on Automation of several products like mutual funds, home loans.. etc.
Trying to integrate with more EPI’s to do faster decision making.
Working on Scan based approvals and Intelligence for decision making.
Before, analyzing one self employed balance sheet took 3 hours, now it takes 3 minutes, operation efficiency has been increased.
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