IDFC FIRST Bank Q2 FY21 Profit after Tax at Rs. 101 crore

· PAT: Rs. 101 crore in Q2-FY21 as compared to loss of Rs. 680 in Q2-FY20

· NII: Grew by 22% YoY basis to reach Rs. 1,660 crore in Q2-FY21

· NIM%: 4.57% in Q2-FY21 as compared to 3.43% in Q2-FY20

· CASA ratio: 40.37% as of 30-Sep-2020 as compared to 18.70% as of 30-Sep-2019

· CASA balance: Grew by 142% YoY basis to reach Rs. 30,181 crore

· Overall Customer Deposits: Rs. 69,368 crore (grew by 35% YoY, 11% QoQ)

· Overall Funded Asset: Rs. 1,06,828 crore (de-grew by 1% YoY, grew by 3% QoQ)

· Retail Loan Assets: Rs. 59,860 crore (grew by 25% YoY, 7% QoQ)

· Asset quality: Stable with GNPA and NNPA at 1.62% and 0.43% respectively (PCR at 74%)

· Capital Adequacy Ratio: Strong at 14.73% with tier-1 CAR at 14.33%

· Average Liquidity Coverage Ratio (LCR): Average at 138% for Q2-FY20

· The Bank reversed Rs. 811 crore provision out of existing provision of Rs. 1,622 crore on exposure to a large telecom player, based on improved prospects of the company, and used it for creating provisions for additional COVID-19 contingency of Rs. 1,400 crore; thus making the total COVID-19 contingency provision of Rs. 2,000 crore as of 30-Sep- 2020, 2.21% of the standard advances.

 

 

____________________________________________________________________________________________________________________________________________

IDFC FIRST Bank Q2 FY21 Profit after Tax at Rs. 101 crore

 

CASA deposits grow 142% YoY; CASA% reaches 40.4%; Retail advances up 25%; NIM at 4.57%

 

Mumbai, October 31, 2020:

Financial results at a glance

The Board of Directors of IDFC FIRST Bank, in its meeting held today, approved the combined audited financial results for the quarter ended September 30, 2020.

 

Summary of Results

· PAT: Rs. 101 crore in Q2-FY21 as compared to loss of Rs. 680 in Q2-FY20

· NII: Grew by 22% YoY basis to reach Rs. 1,660 crore in Q2-FY21

· NIM%: 4.57% in Q2-FY21 as compared to 3.43% in Q2-FY20

· CASA ratio: 40.37% as of 30-Sep-2020 as compared to 18.70% as of 30-Sep-2019

· CASA balance: Grew by 142% YoY basis to reach Rs. 30,181 crore

· Overall Customer Deposits: Rs. 69,368 crore (grew by 35% YoY, 11% QoQ)

· Overall Funded Asset: Rs. 1,06,828 crore (de-grew by 1% YoY, grew by 3% QoQ)

· Retail Loan Assets: Rs. 59,860 crore (grew by 25% YoY, 7% QoQ)

· Asset quality: Stable with GNPA and NNPA at 1.62% and 0.43% respectively (PCR at 74%)

· Capital Adequacy Ratio: Strong at 14.73% with tier-1 CAR at 14.33%

· Average Liquidity Coverage Ratio (LCR): Average at 138% for Q2-FY20

· The Bank reversed Rs. 811 crore provision out of existing provision of Rs. 1,622 crore on exposure to a large telecom player, based on improved prospects of the company, and used it for creating provisions for additional COVID-19 contingency of Rs. 1,400 crore; thus making the total COVID-19 contingency provision of Rs. 2,000 crore as of 30-Sep- 2020, 2.21% of the standard advances.

 

DETAILED NOTE ON BUSINESS & FINANCIAL PERFORMANCE OF THE BANK

Earnings

§ Profit After Tax: The Profit after Tax for Q2 FY21 is reported at Rs. 101 crore as compared to Loss of Rs. 680 crore for Q2 FY20. The Profit after Tax for the half year ended September 30, 2020, is reported at Rs. 195 crore. Thus the Bank reported three consecutive quarters of profitability.

§ Net Interest Income (NII): Net Interest Income (NII) grew by 22% Y-o-Y to Rs. 1,660 crore, up from Rs. 1,363 crore in Q2 FY20. Despite the COVID-19 pandemic impact, the Q-o-Q NII grew by 2%.

§ Net Interest Margin (NIM%) (quarterly annualized): NIM% rose to 4.57% in Q2 FY21 from 3.43% in Q1 FY20 and 4.53% in Q1 FY21.

§ Fee and Other Income (without trading gains): It decreased 19% to Rs. 291 Crore in Q2 FY21 as compared to Rs. 359 crore in Q2-FY20 due to lower loan originations and reduced banking activity on account of COVID-19 pandemic. However, sequentially, the Fee Income has shown significant improvement, up by 97%, as the economic activities are coming back on track post the phased unlock throughout the country. The trading gain for Q2-FY21 was at Rs. 337 crore.

§ Total Income (net of Interest Expense): It grew by 21% at Rs. 2,288 crore for Q2-FY21 as compared to Rs. 1,884 crore for Q2-FY20.

§ Release of Provisions on account of large telecom account: As of 30 June 2020, the Bank carried Rs. 1,622 crore of provisions, which were done proactively in Q3-FY20, against a large telecom exposure of Rs. 3,244 crore (Rs. 2,000 crore funded exposure through NCDs maturing in Dec-2021 / Jan-2022 and Rs. 1,244 crore of non-funded exposure through Bank Guarantee) as there were adverse comments around the future of the Company.

 

After the verdict of the Honourable Supreme Court on September 1, 2020, our assessment is:

1. The payment of AGR dues have been staggered which helps the Company with immediate cashflow. The DoT has allowed telecom operators to defer spectrum related payments due for two years (FY21-FY22) and pay it in instalments over next 10-14 years provided the operators arrange incremental BGs covering such payments.

2. Post AGR judgement, the Company has obtained approval from Board/ Shareholders to raise up to Rs. 25,000 crore through mix of debt (incl. convertible, hybrid instrument) and equity.

3. The Company has met all the borrowing obligations, including payment of Rs. 2,875 crore of NCDs in July 2020.

4. Subsequent to the SC decision on September 1, 2020, there have been trades in the NCDS issued by the Company maturing in January 2022 at a price of Rs. 80.5 to Rs. 81.7, i.e. a discount of ~19%.

 

Considering the positive outcome of AGR verdict and moratorium as described above, fund raising plan, repayment record and the recent trades, the Bank has released 50% provision out of Rs. 1,622 crore of provisions held as of June 30, 2020. The Bank continues to hold at Rs. 811 crore of provisions for the total exposure of Rs. 3,244 crore (25% PCR) on this telecom account as of September 30, 2020, as a prudent measure.

§ Provisions: The provision for Q2-FY21 was at Rs. 676 crore as compared to Rs. 489 crore for Q2 FY20 and as compared to Rs. 764 crore in Q1 FY21.

o Provisions for COVID-19 impact: As of 30 June 2020, the Bank carried Rs. 600 crore of provisions towards COVID-19 pandemic & related moratorium driven impact on its lending portfolio. As described above, Rs. 811 crore of provision was released from the existing provision done on a telecom player and has been utilized now to create additional provisions for COVID19 as a conservative measure. With this, during Q2-FY21, the Bank has taken additional provision of Rs. 1,400 crore towards COVID-19 to strengthen its balance sheet further. Including this, as of 30 September 2020, the Bank holds such provision of Rs. 2,000 crore which is 2.21% of its standard advances.

 

Liabilities – Strong and Steady growth

§ CASA Deposits posted strong growth, rising 142% YoY to Rs. 30,181 crore as on September 30, 2020 as compared to Rs. 12,473 crore as on September 30, 2019.

§ CASA Ratio improved to 40.37% as on September 30, 2020 as compared to 18.70% as on September 30, 2019 and 33.74% at June 30, 2020.

§ Core Deposits (Retail CASA and Retail Term Deposits) increased 119% to Rs. 49,610 crore as on September 30, 2020 from Rs. 22,629 crore in September 30, 2019. This signifies the sticky and sustainable nature of the growing deposit balance.

§ The Fixed Deposits of the Bank has the highest rating “FAAA/Stable” by CRISIL.

§ Certificate of Deposits: The Bank has reduced its dependence on the wholesale and market borrowings which have been suitably replaced by the growth of core Retail Deposits. The borrowing through Certificate of Deposits (CD) of the Bank has reduced by 65% on YOY basis to Rs. 5,399 crore as on September 30, 2020 from Rs. 15,283 crore as of September 30, 2019.

§ As of September 30, 2020, the Bank has 523 branches and 509 ATMs across the country.

 

Loans and Advances – stable with growing retail %

§ Total Funded Loan Assets stood at Rs. 1,06,828 crore as on September 30, 2020, compared to Rs. 1,07,656 crore as on September 30, 2019, and as compared to Rs. 1,04,050 crore as on June 30, 2020. As per the stated strategy, the Bank focused on growing the retail loan book and decreased the wholesale loan book, primarily the infrastructure loans to reduce concentration risk on the portfolio.

§ Retail Loan Book, out of the total book mentioned above, increased by 25% to Rs. 59,860 crore as on September 30, 2020, compared to Rs. 48,069 crore as on September 30, 2019.

 

§ The Bank also has inorganic portfolio buyouts, primarily to cater to the PSL requirements where the underlying assets are retail loans. Retail loans including such inorganic portfolio constitute 63% of the overall loan assets.

§ Wholesale Loan Book, including Security receipts and Loans converted to equity reduced by 20% from Rs. 49,269 crore as of September 30, 2019, and from Rs. 40,275 crore at June 30, 2020, to Rs. 39,286 crore as of September 30, 2020 as per the stated objective.

§ Within the wholesale segment as stated above, the Infrastructure loan book reduced by 27% to Rs. 12,502 crore as on September 30, 2020 from Rs. 17,211 crore as on September 30, 2019 and Rs. 13,416 crore at June 30, 2020.

 

Asset Quality

§ The Gross NPA of the Bank reduced to 1.62% as of September 30, 2020, as compared to 1.99% as of June 30, 2020. The Net NPA was 0.43% as of September 30, 2020, as compared to 0.51% as of June 30, 2020. The Gross NPA and Net NPA of the Bank was at 2.62% and 1.17% respectively as of September 30, 2019.

§ This is after the impact of the Supreme Court of India notification to stop fresh NPA classification post August 31, 2020, till further orders. Without this impact the GNPA as on September 30, 2020 would have been 1.87% and the NNPA as on September 30, 2020 would have been 0.60%.

§ As of September 30, 2020, the Gross NPA % of the Retail Loan Book was at 0.41% as compared to 0.87% as of June 30, 2020 and Net NPA % of the Retail Loan Book of the Bank was at 0.17% as compared to 0.24% as of June 30, 2020. Without considering the impact of Honorable Supreme Court’s notification the GNPA and NNPA of Retail Loan Book would have been 0.79% and 0.41% respectively. The Gross NPA and Net NPA for the retail loans of the Bank was at 2.31% and 1.08% respectively as of September 30, 2019.

§ The Provision coverage ratio on NPA accounts improved to 74% at September 30, 2020 as compared to 56% at September 30, 2019 and 75% at June 30, 2020.

§ Apart from the NPA, the identified stressed asset pool of the Bank, reduced by Rs. 827 crore during the last one year. This stressed pool stood at Rs. 2,717 crore as of September 30, 2020 against which the Bank has done provisioning of Rs. 1,303 crore, 48% of the pool. The Bank completely exited from its exposure towards a large HFC during the quarter at its carrying value in books.

 

Operations & Product Launches during the last quarter

§ During Q2-FY21, the nation-wide lockdown due to COVID-19 pandemic got relaxed gradually across the nation.

§ The loan disbursal levels across the product categories have improved every month and at a gross level the retail disbursals have reached 74% of the disbursal levels for the same quarter last year with the urban consumption-based retail products touching around 90% of the disbursal levels for same quarter last year.

§ The Bank introduced the touchless debit card facility for its liability customers during the last quarter.

§ During the quarter ended on September 30, 2020, the RBI announced the restructuring plan for the eligible customers with loan ticket sizes below Rs. 2 crore. The Bank has formed suitable policies to provide restructuring plans to eligible customers. The eligible customers can apply for such plan till December 31, 2020. As of September 30, 2020, the Bank has not received any sizeable request for restructuring.

 

Capital and Liquidity Position

§ Capital Adequacy of the Bank was strong at 14.73% with CET-1 Ratio at 14.33% as of September 30, 2020, as compared to Capital Adequacy Ratio of 15.03% and CET-1 Ratio of 14.58% as of June 30, 2020.

§ Average LCR for the quarter was at 138% which is much higher than the mandated regulatory levels.

 

Mr. V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank, said, “Since day one of the merger, our first priority was to strengthen the deposit side of the bank with stable retail deposits. We were very clear that we don’t want to grow the loan book until this is addressed. I am happy to say that IDFC FIRST Bank CASA ratio has reached industry best standards of over 40%. With the liability side firmly addressed, you will see growth in the total loan book from Q3 FY21 and onwards. I am further happy to inform you that the collection performance on retail loans have improved sharply after the lockdown has been lifted, and in fact are much stronger than earlier anticipated.”

 

“WE CARE”- An Initiative of ICAI for Senior Chartered Accountants

The Institute of Chartered Accountants of India (ICAI) since its very inception has always provided thought leadership to the generations in a proactive and progressive manner. ICAI has been playing a key role nationally, regionally and globally not only towards the growth of the profession, but also has been contributing to the business, industry and commerce across all sectors. 

The reason behind the milestones achieved by ICAI is its hard-work, dedication and commitment of the CA fraternity & senior visionaries who have been guiding the accountancy profession with their selfless dedication, relentless commitment and rich values. 

In these unprecedented times of COVID-19 outbreak, the ICAI has initiated number of steps to ensure that the accountancy profession in India is not only having inclusive growth but also to ensure that its members & students are kept updated on various professional matters of contemporary relevance. With our efforts, we are able to reach and connect with the different segments of our membership be it in practice, industry, public service, entrepreneurship or women.  

In order to acknowledge the contribution of senior members to the Profession, ICAI has recently launched an initiative “We Care – A Unique Social Security Scheme and Benevolence Program for Senior CAs”, a unique social security and benevolence program for Senior CA members of age 75 years and above. This initiative would provide support to this valuable segment of ICAI  fraternity which endeavours for providing respect, continuous engagement, care and support of the Profession by creating a sense of belongingness. The initiative was launched by Shri Arjun Ram Meghwal, Hon’ble Minister of State for Parliamentary Affairs & Heavy Industry and Public Enterprises through virtual mode in the presence of President, Vice-President & Central Council Members of ICAI.  

Hon’ble Minister Shri Arjun Ram Meghwal while applauding the efforts being made by ICAI said “Such initiatives are need of the hour as care for elderly has been the pillar of Indian Heritage and our value system. It is heartening to learn that ICAI is taking concrete steps for expressing gratitude towards its elderly members & showing concern for their well-being & extending support to them as & when required.” The Minister further added “This initiative undertaken by ICAI is laudable and will set an example for many other organizations to emulate. This will also instill Indian traditional values in the younger generation & inculcate the sentiments of appreciating, respecting & caring for elders.” 

 “We Care” initiative aims to take stock of the wellbeing, health, financial condition and any other issue being faced by the senior Members. 

On this occasion, CA. Atul Kumar Gupta, President, ICAI said “The Institute assiduously aspires to attain the Absolute Best for all its members and is diligently dedicated to their constant improvement and growth. ICAI stands tall as a facilitator and crusader of affirmative action and thereby letting consequent growth and development flow.” 

President, ICAI further added “The Institute, over the years, has garnered paramount respect for meeting business environment changes with decisive action and discerning reaction. This has been  possible with the wealth of experience of senior members, their  strategic thinking for the betterment of profession & constant support.” 

The initiative “We Care” would work for senior members by: 

Building a technology based holistic support ecosystem  

Dedicated helpdesk for 24x7 assistance 

Need based Financial & other assistance for medical treatment & other issues 

This initiative of the Institute is a humble attempt to put forward its gratitude towards the senior visionaries of the accountancy profession. ICAI would leave no stone unturned to respect, engage, care and support the senior CA members to live their life with dignity, independence & comfort

"असा रंगला सन्मान तिच्या प्रतिभेचा सोहळा "

आयुष्याची दुसरी इनींग सुरु करताना म्हणजेच "पाळी जाताना" ह्या विषयावर ,साहित्यसंपदा आयोजित "उत्सव तिच्या प्रतिभेचा " उपक्रमांतर्गत प्रसिद्ध स्त्री रोग व प्रसूती तज्ञ डॉ. सोनाली मनीष वनगे ह्यांनी ऑनलाईन पद्धतीने शेकडो महिलांना मार्गदर्श केले. पाळी  म्हणजे काय ?मासिक पाळी काळातील  समस्या आणि उपाय ? पाळी जाताना दिसणारी लक्षणे आणि पाळी थांबताना होणारा त्रास ह्या व इतर मुद्द्यांना त्यांनी हात घालून महिलांच्या अनेक शंकांचे निरसन केले.

"कोविड दरम्यान अन्न  व्यवसायात  घ्यावयाची काळजी " विषयावर अनुपमा पाटीलअसिसटंट कमिशनर फूड अँड ड्रग महाराष्ट्र ह्यांनी मार्गदर्शन करताना अन्न व्यवसायातील नवीन आव्हानांची ओळख करून दिली. तेजस्विनी नेने ,महिला व बाल कल्याण सभापती ह्यांनी "स्त्री आणि समाज सेवा " विषयावर मार्गदर्शन करताना महिलांना आत्मनिर्भर होण्याचा सल्ला देताना स्वतःच्या पायावर उभे रहाण्याकरता उपलब्ध असलेल्या विविध संधींची ओळख करून दिली. विविध विषयांवर पार पडलेल्या चर्चा सत्रांना उत्तम प्रतिसाद  मिळाला. "महिलांचे कायदेविषयक अधिकार " ह्या विषयावर ऍड. धनश्री पाटील ह्यांनी मार्गदर्शन केले तर "आत्मरक्षणाची  गरज " ह्या विषयावर स्नेहल शिंदे ह्यांनी मार्गदर्शन केले. साहित्यसंपदा संस्थापक वैभव धनावडे ह्यांच्या संकल्पनेतून नुकताच

 "उत्सव तिच्या प्रतिभेचा " हा उपक्रम  नवरात्री दरम्यान पार पडला.महाराष्ट्रातीलच नव्हे तर जगभरातून ह्याला उत्तम प्रतिसाद लाभला. मार्गदर्शनपर सत्रां सोबतच वक्तृत्व  ,कथा अभिवाचन ,काव्य वाचन,साहित्यप्रश्न मंजुषा,पाककृती स्पर्धा,टाकाऊ पासून टिकाऊ वस्तू बनविणे आणि सौंदर्य स्पर्धा ह्या स्पर्धां पार पाडून स्त्रियांच्या प्रतिभेला वाव देण्याचा प्रयत्न करण्यात आला.सदर उपक्रमाची सांगता जेष्ठ साहित्यिकआणि गझलकार  ए के शेख , जीव झाला येडा पिसा ,छोटी मालकीण,लक्ष्य ,दुर्वा अश्या प्रसिद्ध मालिकांचे दिगदर्शक पुष्कर रासम ह्यांच्या उपस्थितीत झाली.गायन ,एकपात्री ह्यांच्या सादरीकरणाने रंगलेल्या सोहळ्याचे प्रास्ताविक वैशाली झोपे ह्यांनी करताना सीमा पाटील ह्यांनी निवेदन केले. उपक्रमाची तांत्रिक बाजू मनोमय मीडिया ह्यांनी सांभाळली. अरण्यक सारख्या प्रसिद्ध नाटकाच्या रंगभूषाकार रीना महाडिक आणि राखी शिंदे ह्यांनी सोहळ्या दरम्यान निकाल जाहीर केले.स्मिता हर्डीकर , किसन पेडणेकर ,रसिका लोके,सोनाली शेडे  ह्यांनी समन्वयकाची भूमिका पार पाडली.सेल्फ रुपेश म्हात्रे ,पल्लवी पतंगे ,अपेक्षा बिडकर ,आरुषी दाते,सुरेंद्र बालंखे,उत्तम चोरडे  ह्यांनी परीक्षक म्हणून काम पहिले. जवळपास दोनशे स्पर्धकांतून शेवटच्या फेरी पर्यंत रंगलेल्या अति तटीच्या स्पर्धेत मानसी नेवगी ह्यांनी "मी सौंदर्यवती " मुकुट पटकावला तर संगीता तातावार ,रेश्मा पवार आणि स्मित शिवदास ह्यांनी अनुक्रमे द्वितीय ,तृतीय आणि उत्तेजनार्थ क्रमांक पटकावले. महिलांच्या मनात आत्मविश्वास रुजवण्या सोबत सकारात्मता रुजवण्याचे काम साहित्यसंपदा समूहाने केले आहे.

समूह प्रवक्ते मंजुळ चौधरी ह्यांनी आगामी उपक्रमांची माहिती देताना मराठी बोली भाषा संवार्धासाठी  येत्या दिवाळीत साहित्यसंपदातर्फे "बोली भाषा महोत्सव " दिनांक १३. ११. २० ते १६. ११. २० साजरा करण्यात येणार असल्याची घोषणा केली .ह्या आगामी उपक्रमा अंतर्गत कोकणी ,मराठवाडी ,मालवणी ,झाडीबोली,नागपुरी,अहिराणी,तावडी,आगरी ,चंदगडी,वऱ्हाडी ,देहवाली,कोल्हापुरी,बेळगावी,वाडवळी ,तंजावर मराठी ,नंदभाषा,पोवारी आणि इतर बोली भाषां मधील साहित्याचा आस्वाद कथा,कविता ,चारोळी ,हायकू ,लेख ,निबंध आणि चर्चा सत्र इत्यादींच्या माध्यमातून घेता येणार आहे. सदर कार्यक्रम साहित्यसंपदा फेसबुक समूहात लाईव्ह होणार असल्याने दिवाळीत घर बसल्या आपल्या बोली भाषेच्या संवर्धनासाठी आपल्याला हातभार लावता येणार आहे.

सदर उपक्रमासाठी इच्छुकांनी खालील क्रमांकावर संपर्क साधून आपण कोणत्या बोली भाषेच्या अंतर्गत कोणता साहित्यप्रकार सादर करणार आहात ह्याची पूर्व नोंदणी करणे अपेक्षित आहे. बोली भाषा संशोधकांना ह्या उपक्रमाअंतर्गत जाहीर निमंत्रण दिले गेले असून आपण बोली सुद्धा भाषा संवर्धनासाठी मार्गदर्शन करावे असे निवेदन प्रसिद्ध करण्यात येणार आहे.

  येणाऱ्या पुढील पिढीस बोली भाषेची गोडवे टिकाऊ म्हणून १४ नोव्हेंबर २० ह्या  बालदिनी   बालकांसाठी बोली भाषेत विविध स्पर्धांचे आयोजन करण्यात आले आहे.येणाऱ्या पिढ्यां  मध्ये बोली भाषेची मुळे खोलवर रुजवित म्हणून काही निबंध स्पर्धा सुद्धा आयोजित करण्यात येणार आहेत.

अश्या प्रकारे बोली भाषा संवर्धनसाठी एक पाऊल साहित्यसंपदा टाकत असताना ,महाराष्ट्रातील विविध स्तरातील आणि भागांतील साहित्यिकांना सहभाग घेण्याचे आवाहन करण्यात आले आहे. अधिक माहितीसाठी ९९३००८०३७५ हा संपर्क क्रमांक देण्यात आला आहे.

CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMITED (CIFCL) Unaudited financial resultsfor the quarter and half year ended 30th SEPTEMBER 2020 Total AUM crossed ₹ 74,000Crs Up by 16% and PAT for the quarter is at ₹ 432 Cr up by 41%

 

                                                                                                             

 

Key Financial results (H1 FY 20-21):

•       Total AUM up at ₹ 74,471 Cr (Up by 16% YoY)

•       PBT up at ₹ 1,163 Cr for the Half year ended (Up by 16% YoY) 

•       PAT up at ₹ 863 Cr for the Half year ended (Up by 39% YoY) 

Chennai, October 29, 2020: The Board of Directors of CIFCLtoday approved the unaudited financial results for the quarter and half year ended30^th September 2020..

Highlights:

Q2 and H1 FY 20-21 Performance:

The company has posted a strong performance in Q2 and H1 FY21, despite the prevailing tough market conditions.Pursuant to the moratorium getting over in Aug’20, the Company had over 95% of the Moratorium customers starting to repay their installments till date. However, considering the externalities in the market, on a prudent basis the Company has created additional provisions of Rs. 250 Cr towards macro provisions during this quarter in Stage 1 and 2. Including this, the cumulative additional provisions towards macros stand at Rs. 800 Cr.  The total provisions, including the additional macro provisions and the normal provisions created basis the prevailing ECL model is at Rs. 1688 Cr, which is at 2.64% of the overall book. 

The Company continues to hold strong liquidity position with Rs. 6,802 Cr as cash balance as of Sep’20, with a total liquidity position of Rs.9,797 Cr (including undrawn sanctioned lines).  The ALM is comfortable with no negative cumulative mismatches across all time buckets.

Performance Highlights:

                                                                                                            Rs in Cr

Particulars	Q2 FY-20	Q2 FY-21	Growth (Y-o-Y)	YTD Sep 19	YTD Sep 20	Growth (Y-o-Y)
Disbursements	7,381	6,457	-13%	15,954	10,046	-37%
AUM	64,409	74,471	16%	64,409	74,471	16%
Total Income	2,197	2,440	11%	4,227	4,553	8%
Finance Cost	-1,177	-1,185	1%	-2,264	-2,316	2%
Net Income Margin	1,020	1,255	23%	1,963	2,238	14%
Total Expenses	-402	-355	-12%	-752	-701	-7%
Loan Losses	-95	-318	234%	-205	-374	83%
Profit Before Tax	523	582	11%	1,006	1,163	16%
Profit After Tax	307	432	41%	621	863	39%

 

Note: Loan Losses include additional provisions towards macros of ₹ 250 Cr for the quarter and ₹ 266 Cr for H1 of FY 21.

•        Aggregate disbursements in Q2 FY 21 were at ₹ 6,457 Cr as against ₹ 7,381 in Q2 FY 20, which is a decline of 13%.  Disbursements in H1 FY 21 were at ₹ 10,046 Cr as against ₹ 15,954 Cr in the previous year registering a decline of 37% Y-on Y. 

 

•        Vehicle Finance (VF) business has clocked a volume of ₹ 4,781 Cr in Q2 FY 21 as against ₹ 5,796 in Q2 FY20, registering a decline of 18%.  Disbursements in H1 FY 21, were at ₹ 8,012 Cr as against ₹ 12,736 Cr in the previous year, reporting a decline of 37% Y-o-Y.  Disbursements for new vehicles started picking up in the later part of the second quarter.

 

•        Loan Against Property (LAP) business disbursed ₹ 1,052 Cr in Q2 FY 21, as against ₹ 1,064 Cr in Q2 FY 20, with a marginal decline of 1%. The Disbursements in H1 FY 21 were at ₹ 1,171 Cr as against ₹ 2,165 Cr in the previous year, registering a decline of 46% YoY. 

 

•        Home Loan (HL) business disbursed ₹ 381 Cr in Q2 FY 21, as against ₹ 414 Cr in Q2 FY 20. The Disbursements in H1 FY 21 were at ₹ 571 Cr as against ₹ 834 Cr in the previous year, registering a decline of 32% YoY. 

 

•        Assets under management as of 30^th Sep 2020, grew by 16% at ₹ 74,471 Cr as compared to ₹ 64,409 Cr as of end Sep in FY20.

 

•        Profits after Tax (PAT) for Q2 FY 21 were at ₹ 432 Cr compared to ₹ 307 Cr in Q2 FY 20, reporting a growth of 41%. PAT for H1 FY 21, were at ₹ 863 Cr as against ₹621 Cr in the same period last year registering a growth of 39%. 

 

•        PBT-ROA for Q2 FY 21 was at 3.4% and for the half year was at 3.5% as against 3.4%  in half year of FY20. 

 

•        ROE for the H1 FY 21 was at 20.0 % as against 19.2% in previous year

 

 

Asset Quality

CIFCL asset quality as on 30^thSeptember 2020, represented by Stage 3 assets stood at 2.75% with a provision coverage of 42.65%, as against 3.18% in H1 of FY20 with a provision coverage of 34.43%. The Stage 3 assets have improved from 3.80% in Mar 20 to 2.75% in September 20.    Apart from the provision coverage represented above against stage 3 assets, additional provisions of Rs.  549 crs have been created towards Stage 1 and Stage 2 assets to cover any contingencies arising out of the Covid-19 pandemic fallout.  The total provisions currently carried against the overall book is 2.64% as against the normal overall provision levels of 1.75% carried prior to the Covid-19 pandemic, representing an increase of nearly 50%.    

Rs in Cr

	Sep-19	Dec-19	Mar-20	Jun-20	Sep-20
Gross Assets - Stage 3	1,803	2,024	2,163	1,996	1,756
Stage 3 Assets to Total Gross Assets	3.18%	3.54%	3.80%	3.34%	2.75%
ECL Provisions - Stage 3	621	667	898	831	749
Covergae ratio (%) - Stage 3	34.43%	32.95%	41.52%	41.62%	42.65%
Gross Assets - Stage 1&2	54,907	55,072	54,762	57,777	62,190
ECL Provisions - Stage 1 &2	389	391	625	607	939
Covergae ratio (%) - Stage 1&2	0.71%	0.71%	1.14%	1.05%	1.51%
Total ECL Provision	1,010	1,058	1,523	1,437	1,688

 

 

The company had increased additional provision of Rs. 250 crs towards Macro factors for the quarter ended 30^th September 2020 taking the total additional provisions to Rs. 800 crs.

 

Hon’ble Supreme Court has directed that accounts which were not in NPA as of 31^st August 2020, shall not be declared as NPA till further orders. Accordingly, the Company has not classified any new accounts as NPA after 31^st August 2020. However, if the Company had classified new accounts as NPA, then the Gross Stage 3 and Net Stage 3 would have been 2.98% and 1.70% respectively.

 

Capital Adequacy:

 

The Capital Adequacy Ratio (CAR) of the company as on 30^th September 2020, was at 19.51% as against the regulatory requirement of 15%. 

Managing Director’s Comments:

 

Commenting on the results, ArunAlagappan, Managing Director, stated “The quarter gone by was critical not just for us, but for the entire banking and financial services industry. With the 6-month moratorium ending in August’20, the focus was to scale up on-field collection efforts and the Company has been able to make considerable improvement in the last 2 months. While the broader economy is still recovering, the Company has witnessed a better than expected disbursement numbers in Q2 FY21, with the trend seeming to be on a positive trajectory in the coming quarters. The pent-up demand and the economic activities associated with the festive season are expected to boost business sentiments and improve disbursements and collections across the businesses. Looking ahead, while business as usual post Covid-19 is still sometime away, the past couple of months have given us enough reasons to be cautiously optimistic about H2 FY21.

 

Looking beyond the financials, one thing that needs highlighting is that Chola’s investments in tech, digital and analytics, have significantly helped the company during the challenging H1 of FY21: the forecasting and predictive analytics capabilities are today enabling a better prediction of the delinquent pools supported by focused collection efforts, the digital sourcing channels are being integrated with the OEM platforms and alternate channels, the customer requirements are getting served seamlessly with a capability for higher log-ins and conversions. These outcomes have strengthened the conviction to keep augmenting the tech, digital, analytics capabilities and leverage the same as a source of competitive advantage in future.”