Tag: disbursals

Can Fin Homes expects disbursals to grow at 18-20%; sees pickup in non-salaried segment

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Girish Kousgi, MD & CEO, Can Fin Homes, on Monday, said that the company will grow its orderbook and disbursals at 18-20 percent.

Kousgi said, “In terms of outlook, I think we had told earlier as well that we will be able to grow at about 18-20 percent, both on book and disbursement because even today, affordability is high and property prices are low.”

Elaborating on demand, he explained that demand remains strong across segments and geographies for the company, barring Delhi’s NCR region and Kerala. Sharing the segment-wise demand picture, Kousgi said that demand has remained strong from the salaried segment. He highlighted that around 22 percent of the loans is to the self-employed segment. He added that non-salaried segment is also seeing pickup.

He said, “We see business coming in from across all segments, geographies. We have robust demand from salaried class; in terms of segments, we have huge demand from self-construction, independent houses, from the developer segment. In terms of geography, we have demand quite low in Delhi NCR region and Kerala, otherwise, I think demand has been robust; it is broad-based across all geographies, all segments.”

He added, “If you look at non-salaried trend before COVID, it used to be 30 percent and salaried at 70 percent. When COVID started, I think confidence level was quite low. So it went down to as low as about 12 percent and 88 percent for salaried segment.

“Now slowly, it is picking up even today, incrementally, self-employed is close to about 21-22 percent so I think it will take another two to three quarters to get the confidence completely back and you might see the mix being 70 percent for salaried and 30 percent for self-employed segment. But yes, in the last four quarters we are seeing every quarter, the confidence is coming back and the share of self-employed is increasing. But if you look at pre-COVID it is still quite low,” he added.

Watch the video for the full interview.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Can Fin Homes eyes 18-20% disbursal, AUM growth next fiscal as ‘housing sector seeing robust demand’

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In an interview with CNBC-TV18, Girish Kousgi, MD and CEO, Can Fin Homes, affirmed that bookings and disbursals have been strong in the last few quarters. He explained that the company is looking at 18-20 percent growth on disbursals and AUM for FY23. According to him, demand is pretty robust on the housing sector side.

He said, “Demand is pretty good now with certain sops coming back to the housing industry in terms of a slight increase in tax benefit for the customers. Some of the schemes which got over in March this year, if those are extended, like middle-income group (MIG), if it is extended, it will add up existing demand.”

Going ahead, he expects profitable growth to come back in the coming quarters. Kousgi explained that the company had increased its rate twice this year which in turn helped its net interest margin (NIM).

View: Home buying momentum to boost home loan market in 2022

Giving details about the incremental ticket size, he mentioned that it is around Rs 23.5 lakh. Additionally, he said that the incremental cost of funds is around 4.98 percent.

Also Read: Home buyers may get higher tax deductions on home loans in Budget next month: Report

“Our incremental cost of funds is 4.98 percent, at a portfolio level, it’s about 5.5 percent. In terms of NIMs, last 3 quarters, it has been improving and NIM for Q3 was 3.74 percent. This number was 3.53 in the last quarter; and spread was 2.49 in Q3, which was 2.42 in the last quarter,” said Kousgi.

Watch the video for the full interview.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Expect strong disbursals in FY23; scaling traditional biz over next 2 years a priority: Cholamandalam

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Arulselvan D, Executive Vice President & CFO, Cholamandalam Investment and Finance, on Friday, said that he expects disbursals to be strong in FY23. He explained that his priority will be on scaling up the traditional business over the next 2 years. Additionally, he shared that the company’s intention is to widen product offerings like consumer loans.

He said, “The priority on the share of our traditional businesses will continue to be large and on the other hand on new businesses, we will be scaling up on the measured note.”

On new segments, he said that the company will first test waters over the next few quarters and only then will it be going ahead with it. Also, the company plans to widen its base and is therefore looking at acquiring new customers.

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He said, “We will not be acquiring a loan book. However, we have acquired a stake in one of the fintech which is the largest point of sale (POS) machine distribution company, so we would be tapping that to reach out to the customers, offering them different products, digital products. This will help us provide the customers all-round facilities from a lending perspective.”

On fintechs, Arulselvan mentioned that many of these companies have been wanting to collaborate with them. He explained that their plan is to source customers through such companies. For this, the company has acquired a stake in a fintech as well.

Also Read: Will focus on retail segment in affordable housing segment: PNB Housing Finance

He said, “Many of the fintechs are facing collection issues; they want to overcome that and that’s why the fintechs also see the right opportunity to collaborate with us to get this thing going.”

For the full interview, watch the accompanying video

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

LCV, tractor demand picks up but HCVs in slow lane: M&M Financial Services

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Ramesh Iyer, VC and MD of Mahindra & Mahindra Financial Services, on Tuesday, affirmed that the on-ground demand sentiment remains positive. He mentioned that he is witnessing a high uptick among new customers. He explained that among categories, light commercial vehicles (LCVs), tractors and pre-owned vehicles are seeing a high demand, however heavy commercial vehicles (HCVs) are yet to see a pick-up. He attributes the primary reason of low HCV demand to individual owners.

“On the ground, sentiment remains positive. Clearly the demand is high and we see a lot of new customers coming in and wanting to buy vehicles, so clearly the way forward seems very positive. And if the vehicle availability starts to improve, which we do believe will happen, you can even see pick-up of overall volumes and disbursement,” he said.

“From an overall demand perspective, at least from where we participate, we clearly see demand pick-up for a range of vehicles, LCVs, tractors, commercial use, pre-owned vehicle space is very active, at least when it comes to cars and utility vehicles (UVs). Heavy commercial vehicle (HCV), we don’t see people coming to buy yet,” Iyer added.

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In regard to HCVs, Iyer clarified that HCVs do not form a big part of their orderbook. Additionally, he expects demand from contracting segment to pick up for tractors as well.

“We are not a very strong heavy commercial vehicle financial. If you look at our book, it’s a very small book from heavy commercial vehicle segment. Going forward, you will start seeing the tractor build-up also happen. I’m very hopeful that the contracting segment of tractor purchases are yet to begin and I would think that it would start to happen now,” he said.

Also Read: Macro sentiment has turned positive with semblance of normalcy: M&M Financial

On collection efficiencies, Iyer mentioned that it was good in Q2. Collection efficiency was at 100 percent in the month of December and at 95 percent plus in the balance months of Q2. He believes as collection efficiency sees an improvement, the non-performing asset (NPA) build-up will go down. Iyer explained that the gross non-performing assets (GNPAs) will reverse, going ahead. He clarified that the NPA build-up in Q1 was purely circumstantial.

He said, “We have clocked 100 percent collection efficiency in December and upward of 95 plus in the other two months. So therefore, collection efficiency is holding up. The NPA build-up in Q1 was more circumstantial and not intention of the customers not to pay.”

“As they start to earn, they have started paying and we definitely hold that view that as collections hold up in the fashion that you saw in the second and third quarter, the reversals of gross NPAs will also happen in the same direction,” he explained.

Watch the accompanying video for the full interview.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Shriram City Union Finance surges 10% post Q4FY21; sees disbursement slowdown in April-end

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shriram City Union Finance stock surged in trade, almost 10 percent higher on the back of their Q4 earnings. Disbursals are higher than even the pre-COVID level, but assets under management (AUM) growth remains weak.

On SME disbursals YS Chakravarti, MD & CEO of the company said, “Our disbursals in Q2 and Q3 were not much in SME which actually we were able to do during Q4. It was just a pent-up demand. In the last week of April, there was a slowdown in disbursement, because of the lockdowns happening and some of the states like Maharashtra, Orissa, parts of North slowing down so particularly last 4-5 days the collections have also tapered off.”

“Disbursement and collection for April were okay because the effect was there only for the last four days. We have to wait and watch how May pans out,” he added.

On growth on MSME portfolio Chakravarti said, “On the asset quality side, it has held up pretty well. Q3, and  Q4 as well as in the month of April the asset quality has held up pretty well. I am still cautiously optimistic because barring national lockdown if there is a lockdown say state to state, if there is a partial lockdown, we will still be able to collect and disburse.”

“I would like to wait till the end of May before I actually come back and tell you what my growth rates are going to be,” he added.

Watch the accompanying video for more.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Have seen a growth of 16% in assets under management YoY: Home First Finance

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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It was an operationally weak quarter from Home First Finance, but lower provisions aided sequential profit after tax growth.

On disbursals and AUM growth, Manoj Viswanathan, Managing Director and Chief Executive Officer at Home First Finance said, “Last year same time we have disbursed around Rs 1,200 crore and so this year most of the disbursals happened in the third quarter so we are at about Rs 650 crore. On the assets under management (AUM) side, we have grown by 16 percent year-on-year (YoY) compared to last year.”

Viswanathan said their gross NPA is at 1.6 percent.

“One year ago we were at about 1 percent, there is an increase of about 60 basis points and this is something that we had expected on account of the pandemic. But all other indicators are fairly strong.”

On restructuring, he said, “Restructuring requests have not come in and they don’t actually make sense for the customer also, so we have hardly had any restructuring request.”

The 30-day past due numbers have increased and it is 4.1 percent of the book.

“That is again something that we had expected on account of the pandemic. There are a few customers who have missed one or two installments and they are kind of stuck in the 30-day past due. They are trying to catch up but for the time being, they are paying one installment.”

He further added, “We have been creating provision buffers and we have provided more than sufficient buffer for any slippage that can happen.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Expect margin to remain stable at current levels: REC

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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REC’s net interest margins (NIM) fell sequentially and despite a sharp decline in disbursals, the company managed to register growth in assets under management.

On NIMs, Sanjay Malhotra, Chairman and Managing Director of the company said, “Sequentially it has decreased that is because of the extra-ordinary item, one asset R.K.M Powergen was resolved because of which we recognised interest income in Q2 and because of that margins have fallen.”

He further said, “On a nine monthly basis, the net interest margin has improved by about 20 basis points. Last 2-3 years it has been in the range of 3.5-4 percent. In terms of guidance, I expect it to remain over there because the borrowing costs are decreasing.”

On disbursals, Malhotra said, “Sequentially, the disbursements have fallen because last to last quarter was extraordinarily good quarter because of the liquidity infusion which was required because of COVID loans. So about Rs 25,000 crore of loans have been disbursed so because of that now there has been a dip in those disbursals.”

On the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGY) scheme, he said, “The focus is now shifting on improving the sustainability of the discoms which are the key for growth in the power sector. These schemes are reform linked and it is linked to the results. So if you perform you get financial incentives and if you do not then the incentives are decreased to that extent.”

On NPAs, Malhotra said it has decreased by about Rs 1,000 crore because they were able to resolve one major asset in the last quarter.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Plan to complete Brookfield transaction soon; aim to scale up used vehicle lending biz, says Indostar Capital

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Sequentially, it was a very weak third quarter across parameters for Indostar Capital Finance. Disbursals remained on the lower side for second quarter in the row, while assets under management declined.

R Sridhar, executive VC and CEO of the company said post the IL&FS crisis, NBFCs have faced major liquidity stress. “The last fifteen months has been a challenging period but we have been able to manage through many of our strategies. Liquidity has improved substantially now, we have received a lot of money in January; on the Partial Credit Guarantee scheme we have received about Rs 500 crore, term loans have started coming,” he added.

On the vehicle financing business, he said “In commercial vehicle (CV) financing, we are neither at the bottom of the pyramid nor at the top end of the spectrum. We are focusing more on used vehicles. So, our portfolio consists of two-thirds of used and one-third of new vehicle finance, which gives us a blended yield of over 16.5 percent.” Going forward, the potential to scale up this business is quite large because except three large companies, there are no NBFCs in CV financing space, he said in an interview with CNBC-TV18.

Moreover, with the scrappage policy likely to come by March 31, 2020 – the next three-five years there could be lot of scope for lending to used vehicles. In the used vehicle space, we have positioned our company at a very strategic level. “I am also confident that with the capital coming in, we can look at scaling up this business very high,” said Sridhar.

Meanwhile, “Brookfield has signed binding agreement to infuse Rs 1,225 crore into Indostar. So, we are focusing on concluding that transaction at the earliest,” he said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Aim to reduce dependence on gold portfolio, said Manappuram General Finance

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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VP Nandakumar, MD & CEO of Manappuram General Finance, spoke to CNBC-TV18 about the company’s financial performance and growth prospects.

“In the last quarter, around 32 percent of their overall portfolio was non-gold and 68 percent was gold portfolio,” Nandakumar said on Monday.

“Going forward, the company would like to reduce its concentration on gold portfolio. So by end of Q4, gold portfolio would be down another 2 percent”, he said, adding that he would like it to come down to 50 percent over a period of around five years,

With regards to cost of funds, Nandakumar said, “It has increased by 80 points. In the consolidated portfolio, disbursals in Q3 grew by 4 percent.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow