India Infoline Finance reported a consolidated profit after tax on continuing business of Rs 181 Cr, up 43% q-o-q and 2% y-o-y; and a total income on continuing business of Rs 611 Cr , down 8% q-o-q and up 19% y-o-y. Commercial Vehicle Finance business was divested in Q4FY19, results below are given on continuing business for a like-to-like comparison.
India Infoline Finance had loan assets under management of Rs 34,920 Cr as at June 30, 2019, up 19%* y-o-y. The loan book growth has been positive in home loans, small ticket business loans, gold loans and microfinance.
The company had a widespread presence of 2,110 branches as at June 30, 2019, spanning the length and breadth of the country.
The company's ROE for Q1FY20 stood at 17.3% and ROA was 2.3%. Average borrowing costs increased by 68 bps y-o-y to 9.3% for the year and Net Interest Margin was at 8.3%.
85% of our loans are retail in nature and 43% are PSL compliant. The assigned loan book, currently at Rs9,128 Cr, is 26% of AUM. There exists significant opportunity for further assignment, given our granular and retail book.
GNPA stood at 2.0% and NNPA stood at 0.8%, as at June 30, 2019. With implementation of Expected Credit Loss under IndAS, provision coverage on NPAs stands at 131% including standard asset coverage.
Capital adequacy: Total CAR stood at 22.1% including Tier I capital of 18.4% as at June 30, 2019, as against statutory requirement of 15% and 10% respectively.
At the end of the quarter, retail home loan assets grew to Rs12,380 Cr, up 33% y-o-y. The primary focus in this segment is on affordable and non-metro housing loans. About 30,000 customers were benefitted with a subsidy of more than Rs 700 Cr under the Pradhan Mantri Awas Yojana - Credit Linked Subsidy Scheme.
As of June 30, 2019 the gold loans AUM grew to Rs 6,583 Cr, showing a strong growth of 46% y-o-y. Gold loans are provided through our widespread presence in 600+ cities across 25 states to salaried, self-employed and MSME customer segments.
The microfinance business continued its steady growth, with the loan AUM growing 112% y-o-y to Rs2,358 Cr as at June 30, 2019. The MFI customer base increased to over one million customers.
The company has maintained its long-term credit rating of AA (Stable) from CRISIL and ICRA.
Mr. Nirmal Jain, Chairman, IIFL Finance Ltd., commented on the financial results: "In Q1FY20, we have been able to weather the liquidity storm faced by the NBFC sector, due to the quality and character of our loan assets. Our loan assets, predominantly retail, have ready buyers in banks. We have assiduously built capability to originate retail assets over the last decade through investment in own branches, people, technology and brand. During the last year alone, we added more than 400 branches and 4000 people to our network. We are confident of maintaining margins and growth of IIFL Finance."
Mr. Sumit Bali, CEO, India Infoline Finance Ltd., commented on the financial results: "During the quarter, although loan AUM is flat, mix has changed favourably with faster growth in core retail assets. Our developer and construction finance (DCF) book's relative share in total loan assets has been falling. Also our DCF does not have exposure to projects in high priced central Mumbai region with excess supply, therefore has been performing well, even under the circumstances. We shall continue to fortify our core competency in retail lending and digital delivery by leveraging our large physical infrastructure of branches and continue to strengthen our competitive position in the sector."