Repco Home Finance reports a 32% jump in Q1FY22 loan disbursements

Repco Home Finance Limited has announced financial results prepared as per Indian Accounting Standards (IND AS) for the quarter and year ended June 30, 2021. The Company's financial performance remained resilient at a time when economic activity was subdued owing localized lockdowns across the country.

Performance in Q1FY22 Vs. Q1FY21

- Total income stood at Rs. 322.4 Crs.
- Net interest income stood at Rs. 144.8 Crs and margins at 4.8%.
- Net profits stood at Rs. 32.1 Crs, mainly due to higher provision of Rs.78.3 Crs
- Loans sanctions stood at Rs. 201.2 Crs, registering a growth of 25% .
- Loan disbursements stood at Rs. 239.7 Crs,TOistering a growth of 32%.
- Interest spread expanded to 3.7%.
- Return on assets and equity stood at 1.1% and 6.6%, respectively.

Loan Book and composition

The overall loan book stood at Rs. 11,985.5 Crs at the end of June 2021. Loans to the selfemployed segment accounted for 51.5% of the outstanding loan book, and loans against property product accounted for 18.7% of the same.

Asset Quality

Stage 3 assets improved to 4.4% of the loan assets at the end of June 2021 compared to 4.0% at the end of June 2020.

Provision for Expected Credit Losses

As required under IND AS, the Company has carried provisions for expected credit losses to the tune of Rs. 368.4 Crs or 3.1% of total loan assets. Stage 3 coverage ratio stood at 42% at the end of June 2021 compared to 41% in the previous year.

Capital Adequacy

The total capital adequacy ratio stood provisionally at 31.2%, comprising of Tier-1 capital of 30.8% and Tier-2 capital of 0.4%. The minimum capital adequacy ratio prescribed by the National Housing Bank is 12.0%.

Distribution network

As at June 30, 2021, the Company had a total network of 153 branches and 24 satellite centers spread across Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Kerala, Maharashtra, Odisha, Gujarat, West Bengal, Madhya Pradesh, Jharkhand, Rajasthan, and the Union Territory of Puducherry.

Shares of Repco Home Finance Limited was last trading in BSE at Rs. 330.15 as compared to the previous close of Rs. 330.05. The total number of shares traded during the day was 7980 in over 668 trades.

The stock hit an intraday high of Rs. 334.95 and intraday low of 323.2. The net turnover during the day was Rs. 2636527.

Source : Equity Bulls

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