Q2FY24 Quick Notes:
Asset Quality: NPAs reduced Substantially during this quarter. In next 3,4 quarters, our NPAs will be one of the best in the HFC industry.
Corporate – We have reduced the loan book substantially. Now we will again restart in 2-3 quarters frow now. But we will focus only on Strategic Construction Finance which will also help in growth of the retail Loans. Yield will be higher than retail loan book and it will be similar to Affordable financing yield. But, corporate mix will be less than 10% of the overall book.
Increasing the focus on Salaried segment.
Login and sanctions are very good in Half year.
Increasing our share in the south as we are focusing more in this area (37.5%). South concentration helps in increasing Salaried loan customers. In salary segment, we are focusing more on affordable side, so that our yield will be higher.
Affordable Housing just started before 8 months- Growing very fast. Near term target 1000 crores to be achieved very soon.
Credit Cost Guidance this year is 0.6%. From next year it will be 0.4%
Opex to remain stable.
Credit Ratings also updated to Positive from Stable.
Sourcing Mix- not concentrated from any particular source like DSA channel .
Focus on higher yielding products like Affordable housing Finance.
Cost of Funds presently at 7.99% will not increase and remain stable.
RoA presently at 2.24%
Gearings: Looking for 6 to 6.5% in the next 2-3 years.
Affordable Housing incremental yield: 11.5%
Overall Incremental yield: 9.5%
Retail Loan Growth 22% guidance on disbursements during this year and 17-18% book growth for this year. Overall growth will also be similar because retail forms 97% of the book.
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