MUMBAI, Aug 10 (IANS) Indiabulls Housing Finance Ltd reported an annualized net profit growth of 1.8% to Rs 287 crore in the first quarter of the current fiscal year. The company reported a net profit of Rs 282 crore for the same period last year.
The home finance company issued Rs 2,260 crore in personal loans under an asset assistance scheme during the quarter. It has completed technology integration of co-loans with three partners and hopes to complete technology integration with the remaining four partners in FY23 alone.
Transfers/securitizations or co-loans accounted for 31 percent of the Company’s financing mix at the end of the first quarter of FY23, which is considered an all-time high due to the growing trend towards co-lending and divestment.
After the Reserve Bank of India (RBI) raised its repo rate, the housing sector Indiabulls followed suit, raising its benchmark interest rates on home and real estate loans by 140 basis points and wholesalers by 160 basis points. Of the total, 40 basis points of rate hikes continued in Q1 FY23 and the rest in Q2 FY23.
“Increasing interest rate cycles are always beneficial for corporate spreads, as more than 99 percent of advances are floating rates, with the company passing on rate hikes almost instantaneously, while most of its funding mix is fixed rate, so increases will help spread and NIM of the company going forward,” the company said in a statement.
In terms of asset quality, the current gross NPA is 2.96 percent. The Rs 2,080 crore provision is 3.5 per cent of the loan book and 2.8 times the regulatory requirements and 96 per cent of the gross NPA.
The third stage coverage is 42 percent of gross NPA. The net NPA at Rs 1,252 crore is 1.71 per cent.
The cumulative retail collection efficiency was 98.7 percent in Q1 FY23.
As of FY 2022, retail payments of Rs 5,500 crore have been made under the lightweight asset model. More than 90 arrears on these loans are less than 0.10 percent. Capital adequacy is 34% and Tier 1 capital is 27.5%.