Indiabulls Housing's net profit rises marginally to Rs 287 cr in Q1FY23

Indiabulls Housing Finance Ltd has reported 1.8 per cent year-on-year rise in its net profit to Rs 287 crore in first quarter of the current financial year. The company had reported a net profit of Rs 282 crore in the same period last year.

The housing finance company has disbursed Rs 2,260 crore of retail loans under the asset-light model in the quarter under review. It has completed co-lending tech integration with three partners and expect to complete the tech integration with the remaining four partners within FY23 itself.

An assignment/securitisation or co-lending constituted 31 per cent of company's funding mix at end of Q1 FY23, which is considered as all time high due to increasing co-lending and sell down traction.

As soon as the Reserve Bank of India (RBI) hiked repo rate, Indiabulls housing also followed the suit by raising reference rate on housing loans and loans against property by 140 basis points and on wholesale by 160 basis points. Of the total, 40 bps of rate increase was passed on in Q1 FY23 and the rest in Q2 FY23.

"An increasing interest rate cycle is always beneficial for the company's spreads, as over 99 per cent of its advances are on floating rate, wherein the company passes on the rate increase almost instantaneously, while a large part of its funding mix is on a fixed rate basis. The rate increases will thus help improve the company's spreads and NIMs going ahead," company said in a release.

On asset quality front, gross NPA now stands at 2.96 per cent. Provisions at Rs 2,080 crore are at 3.5 per cent of loan book, and at 2.8x of regulatory requirements and 96 per cent of gross NPAs.

Stage three provision coverage ratio stands at 42 per cent of gross NPAs. The net NPAs at Rs 1,252 crore is at 1.71 per cent.

Retail collection efficiency on a cumulative basis stood at 98.7 per cent during Q1 FY23.

Since FY 2022, retail disbursals of Rs 5,500 crore have been done under the asset-light model. 90+ delinquency for these loans have been at under 0.10 per cent.

Capital adequacy stands at 34 per cent and tier 1 at 27.5 per cent.