The company said that its loan book has fallen to around `1.13 lakh crore, which implies a 10% fall on a year-on-year basis
Indiabulls Housing Finance (IBHFL) on Tuesday reported a 24% year-on-year (y-o-y) drop in consolidated net profit to `802 crore in the June quarter of FY20.
In a presentation posted on the stock exchanges the company said that its loan book has fallen to around `1.13 lakh crore, which implies a 10% fall on a year-on-year (y-o-y) basis. The net interest income (NII) fell 12.7% y-o-y to `1,475 crore. Revenue from operations also slipped 4.6% to `3,885 crore. Gross non-performing asset (NPA) ratio stood at 1.47%, up from 0.88% in Q4FY19, while its net NPA ratio worsened to 1.1% from 0.69% a quarter ago. Provision coverage on gross NPAs rose to 25% from 22% in the quarter ended March.
The company said it has reduced commercial paper (CP) borrowings to `1,060 crore and this constitutes less than 1% of its funding. “This is in line with our operating principle to cap CPs at 5% of funding,” it said. Its total borrowings fell over 15% y-o-y to `98,226 crore at the end of June 2019.
The company said if its bid to acquire Lakshmi Vilas Bank goes through, the amalgamated entity will focus on micro, small and medium enterprises (MSME) loans, loans against property (LAP) and housing loans.
“Commercial Real Estate [CRE] book is being reduced through refinance etc. MSME/LAP loan book share is being increased,” IBHFL said, adding that since the announcement of the merger in April 2019, it has reduced its CRE exposure by `6,005 crore through refinance and other modes.
Gagan Banga, vice-chairman and managing director, IBHFL, said the company expects its merger proposal to be cleared by regulators over the next 45 to 60 days. “We are comfortably placed on liquidity, ALM (asset liability management) and capital levels and remain poised to make the most of growth opportunity in retail loans within our target segments,” he said.