Financial Highlights: Q2 FY21-22 vs Q2 FY20-21: Profit after Tax stood at INR 235 crore vs INR 313 crore registering a decline of 25%. Net Interest Margin stood at 3.0% as compared to 3.5%. Gross Margin, net of acquisition cost, stood at 3.3% compared to 3.5%. Net Interest Income stood at INR 503 crore compared to INR 651 crore registering a decline of 23%. During Q2 FY22, there is a net income reversal of INR 61 crore on derecognized loans due to unwinding impact of Spread contraction whereas during Q2 FY21, there was a net positive impact of INR 105 crore on derecognized loans due to fall in buying Banks’ MCLR. Operating Expenditure increased by 11% to INR 119 crore vs INR 107 crore. Pre provision Operating Profit stood at INR 433 crore vs INR 575 crore registering a decline of 25%. H1 FY20-21 vs H1 FY19-20: Profit after Tax is at INR 478 crore vs INR 570 crore registering a decline of 16% YoY. The Spread on loans for H1 FY21-22 stood at 2.5% compared to 2.7% for H1 FY20-21. Excluding the net impact on securitization transactions, the Spread for H1 FY21-22 is 2.8% Net Interest Margin stood at similar levels of 3.1% YoY. Gross Margin, net of acquisition cost, stood at 3.3% compared to 3.1% YoY. Operating Expenditure is at INR 234 crore vs INR 209 crore registering an increase of 12%. Pre provision Operating Profit decreased by 7% to INR 908 crore from INR 980 crore. The ECL provision as on 30th September 2021 is INR 2,828 crore resulting in the total provision to assets ratio at 4.8%. The Stage 3 provision coverage ratio is at 44%. Return on Asset is at 1.4% during H1 FY21-22 as compared to 1.5% during H1 FY20-21 Gearing as on 30th September 2021 is 5.9x compared to 7.8x as on 30th September 2020. Return on Equity of 10.4% for H1 FY21-22 vis a vis 13.8% for H1 FY20-21. Business Operations: The disbursements during Q2 FY22 stood at INR 2,961 crore compared to INR 2,444 crore in Q2 FY21 registering an increase of 21%. Retail disbursements were 96% of the total disbursements in Q2FY22. The retail disbursements grew by 23% YoY in Q2 FY22. Asset under Management (AUM) degrew by 3% QoQ at INR 69,810 crore as on 30th September 2021. The degrowth in AUM is on account of sell sown/accelerated payments and no new sanctions in the corporate book. Retail book contribute 86% of the AUM. Loan Assets stood at INR 59,283 crore as on 30th September 2021. The de-growth in the Retail book has been arrested as on 30th September 2021 to INR 49,298 crore as compared to 30th June 2021 to INR 49,450 crore. The Retail Loan asset declined by INR 152 crores in Q2 FY22 as compared to INR 1,019 crore in Q1 FY22. Sourcing under co-lending partnership with Yes Bank has been initiated. Commenting on the performance Mr. Hardayal Prasad, Managing Director & CEO said: “The Company has registered healthy growth in disbursements with 96% disbursements in retail segment during the quarter. With focus on the retail segment, the degrowth in retail loan asset is controlled during the quarter. With opening up of the field movement and legal machinery post second wave of Covid, we witnessed improved resolutions in Q2 FY22 resulting in retail NPA down by 14% on absolute basis during the quarter." Result PDF