GS Sundararajan, MD &Subhasri Sriram, ED addr the call:Highlights by Capital Mkt
The company continues to exhibit steady growth across all segments in Q2FY2016, while well penetrating in to all geographies. The company expects second half of FY2016 to be better in terms of growth.Assets under Management (AUM) growth of the company accelerated to 17% at Rs 18165 crore at end September 2015 against a growth of 16% a quarter ago and 3% a year ago.The disbursements increased 9% to Rs 4527 crore in Q2FY2016 over Q2FY2015. Segment wise disbursement stood at Rs 1995 crore – small enterprise finance, Rs 800 crore – two wheelers, auto loans – Rs 200 crore, personal loans Rs 250 crore and Rs 1291 crore – gold in Q2FY2016.Off-balance sheet AUM of the company stood at Rs 500 crore, which is less 3% of AUM. The company has not conducted any securitization deals in H1FY2016, while expects to conduct securitization deals only in Q4FY2016.Overall Gross NPA ratio rose to 3.3% at end September 2015 from 3.17% at end June 2015. However, the Net NPA ratio was maintained at 0.65% with strong provision coverage ratio of 80.2% at end September 2015.Write-offs stood at Rs 71.23 crore, GNPA ratio including write-offs, stood at 3.69% at end September 2015.
Gross NPA increased by 50 crore in Q2FY2016 to Rs 582 crore at end September 2015, mainly contributed by small enterprise finance and gold loan book.Gold Loan Book GNPA stood at 2.55%, while non-gold GNPA was at 3.51% at end September 2015.
The company plans to shift NPA recognition norms from existing 180 days to 150 days over dues basis on 31 March 2016.As per the company, the GNPA would double to Rs 1000 crore from present level of Rs 582 crore, after shifting to 150 days over dues NPA recognition norms from present 150 days.Based on the current balance sheet position, the company estimates GNPA to be at Rs 1300 crore on 120 days and Rs 1700 crore on 90 days over dues basis.
With the huge customer base and small ticket size, the company and its collections teams are educating customers to adapt to the new NPA recognition norms.
Shriram Housing Finance:Shriram Housing Finance has crossed the AUM level of Rs 1000 crore at end September 2015. The AUM comprises mainly 90% of retail loans and 10% builder finance.The branch network of the company stood at 77 branches at end September 2015.
During the quarter, Shriram Housing Finance has tightened its NPA coverage and provisioning norms, which had a impact of Rs 1.2 crore on profitability. Accordingly, the provision coverage ratio was raised to 24% from 18%.
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