In the first quarter of the current fiscal year, Indiabulls Housing Finance Ltd. reported a 1.8% year-over-year increase in net profit to Rs287 crore. At the same time last year, the business posted a net profit of Rs282 crore.
Under the asset-light strategy, the home finance business disbursed retail loans of Rs2,260 crore during the quarter under review. It has finished integrating the technology for co-lending with three partners and anticipates integrating the technology with the other four partners by the end of FY23.
Due to growing co-lending and sell-down traction, an assignment/securitization or co-lending made up 31% of the company's funding mix at the end of the first quarter of FY23, which is regarded as an all-time high.
Indiabulls Housing followed the Reserve Bank of India's (RBI) lead and increased the reference rate on housing loans and loans secured by the property by 140 basis points and on wholesale by 160 basis points. In sum, 40 basis points of the rate hike were passed through in Q1 FY23 and the remaining in Q2 FY23.
"Over 98% of the company's advances are on a floating rate, allowing it to pass on rate increases virtually immediately, while a significant portion of its funding mix is on a fixed rate basis. This means that a climbing interest rate cycle is always advantageous for the company's spreads. Thus, rate rises will contribute to future improvements in the company's spreads and NIMs "a statement from the business.
Gross NPA now stands at 2.96 % in terms of asset quality. At Rs2,080 crore, provisions represent 3.5 % of the loan book, 2.8 times the statutory threshold, and 96% of gross non-performing assets.
42 % of gross NPAs have been covered under stage three provisions. At Rs1,252 crore, the net NPAs are 1.71 %. On a cumulative basis, retail collection efficiency in Q1 FY23 was 98.7%.
Since FY 2022, the asset-light methodology has been used for retail disbursals totaling Rs5,500 crore. These loans have a 90+ delinquent rate of less than 0.10 %. Tier 1 is now at 27.5 %, while capital adequacy is at 34 %.
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