Repco Home Finance expects the strong momentum in its disbursements to continue and hopes to end this fiscal year with total disbursements close to ₹3,000 crore. It expects the loan book size to also reach close to ₹12,800 crore by the end of this fiscal.
The company’s disbursements during the second quarter impacted FY22 and stood at ₹1,769 crore. With about ₹746 crore in disbursements in Q2 of this fiscal, the company’s total disbursements for the first half of this fiscal stood at ₹1,388 crore. However, it expects to do more in the remaining two quarters.
“We expect a disbursement of about ₹1,600 crore in the second half, that is, the third and fourth quarters of FY23,” K Swaminathan, Managing Director and CEO, Repco Home Finance, said during the company’s Q2FY23 earnings call.
He said the company’s repayments will be about ₹2,000 crore. So book growth will be about ₹600 crore from the current level. So, we will be somewhere in the range of ₹12,700–12,800 crore. “If we can do something more than what we are anticipating in the fourth quarter, which is usually our busiest quarter, we will be touching ₹13,000 crore in loan book size,” he added.
Containing slippages
As of September 30, 2022, the loan book of the company stood at ₹12,068 crore, up from ₹11,759 crore in the March 2022 quarter.
Swaminathan said the company had done a remarkable job in containing slippages from the restructured as well as making significant recoveries in the non-restructured NPA book to ensure stability in the GNPA ratio quarter-on-quarter. “The possible slippages of this restructured book were our biggest worry, which is now out of the way,” he stated.
A total of ₹175 crore out of the restructured book of ₹700 crore slipped, but sizable recoveries in the GNPA portfolio offset the impact.
The total capital adequacy ratio remained comfortable at 34.1 per cent. The liquidity position is also comfortable, as the company is carrying about ₹425 crore in cash and bank deposits. In addition, it has about ₹1,250 crore of unutilised lines of credit from banks and the NHB (National Housing Bank).
The company’s AUM crossed the ₹10,000 crore mark and stood at about ₹12,000 crore as of September 30, 2022.