Performance Highlights (Consolidated)
- Assets Under Management grew by ~6% QoQ to ₹ 15,275 crore
- NIM increased by 104 bps YoY to 9.1% in Q2FY22 (8.0% in Q2FY21), driven largely by reduction in interest expenses
- Consolidated PBT was up 151% YoY, increasing from ₹ 50 crore in Q2FY21 to ₹ 126 crore in Q2FY22, driven largely by reduction in interest expenses and credit costs
- Collections showed an improving trend from 93.1% in Jun’21 to 98.0% in Jul’21 and further to 99.9% in Sep’21
Consequent to improvement in collections in Q2FY22, Gross Stage 3 and Net Stage 3 assets decreased from 5.4% and 2.7% respectively as at Jun’21 to 4.1% and 2.0% respectively as at Sep’21 on a consolidated basis. The Company has one of the best provision coverage ratios across all three stages. Standard Asset Coverage Ratio as at Sep’21 stands at 3.4% (3.0% in Sep’20); Stage 3 Asset Coverage Ratio stands at 52% (38% in Sep’20).
Liquidity and Cost of Borrowings
The Company continues to maintain a strong liquidity position with around ₹ 1,700 crore of surplus liquidity, with additional term loan sanctions in hand of ₹ 1750 crore. Significant amount of existing loans were repriced in Q2FY22, with reduction of over 120 bps. New sanctions received at sub-6.5%.
The company’s long-term rating was upgraded by two notches to ‘AA+; Stable’ by Care Ratings following its review process. The short-term rating was retained at the highest level of ‘A1+’.
Revised Product Focus
Pursuant to the capital infusion and rebranding, the Company launched new products like Personal loans, Loans to Professionals, and SME LAP. Other products at an advanced stage of rollout are: medical equipment loan, small ticket LAP, and co-lending/fintech partnerships.