Mumbai, 15th November 2022: The Board of Directors of Indiabulls Housing Finance Ltd. (IBH) announced its unaudited financial results for the quarter that ended September 30th, 2022.
IBH Key Financials:
| Particulars | Q2 FY22-23 | Q1 FY22-23 |
| Balance sheet | 75,812 | 75,794 |
| PAT | 289 | 287 |
| Net Gearing | 2.5x | 3.0x |
| CRAR | 34% | 34% |
| Tier-1 | 28% | 28% |
| Particulars | H1 FY22-23 | H1 FY21-22 |
| PAT | 576 | 568 |
Scaling up of Disbursals under Retail Asset-Light Model
The Company disbursed retail loans of ₹ 4,598 Cr under the asset-light model in H1FY23, scaling up from its quarterly disbursal run-rate of ₹ 1,500 Cr in H2FY22. The Company has completed co-lending tech integration with 4 partners and expects to complete the tech integration with the remaining 3 partners within FY23 itself.
In line with its guidance, the AUM of the Company is now on a growth trajectory. Under the asset-light model, the AUM will keep compounding while the balance-sheet size and on-balance-sheet loan book will stay flat or decline sometimes.
Much like in the US where they sell-down/ securitization market is increasingly getting streamlined, The Company is working towards a multi-bank marketplace where loans seamlessly flow to multiple partner banks. The Company has standardized its documentation across all its partners, and the loan appraisal and onboarding processes have also been standardized. Along with tech integration, the Company has also put in place a straight pass-through mechanism, such that loans approved under the joint policy get seamlessly on-boarded with partner banks.
In fact, with a large public sector bank, the Company successfully completed an end-to-end digital straight-pass-through pilot. Incremental disbursals are now being on-boarded through this straight-pass-through digital platform
Increase in Reference Rate and Expansion of Spreads
Book spread has expanded to 3.1% at the end H1FY23 as rate increases have been passed on.
An increasing interest rate cycle is always beneficial for the Company’s spreads, as over 99% of its advances are on a 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.
