Can Fin Homes clocked its strongest quarterly disbursals in the quarter ended March. The declining asset under management (AUM) trend has also been arrested after seven quarters.
Girish Kousgi, MD and CEO of the company, believes that Q1FY22 will be better in terms of growth and collections year-on-year (YoY).
“In Q1FY22, in terms of collections, April was sub-optimal. But there was good pullback in May, and June looks bright. But if I have to compare this quarter with last year’s Q1, this quarter is far better, both in terms of business as well as collections,” he told CNBC-TV18.
According to Kousgi, gross NPA (GNPA) of 0.91 percent is the lowest in the industry and he expects it to decline even further in the next 3-4 quarters.
“0.91 percent was the GNPA as of March-end. I think that is one of the lowest in the industry, given the fact that we operate largely in small towns and cities, and the profile is a notch lower than what the big banks and housing finance companies (HFCs) do. But I am pretty sure, over the next 2-3 quarters, we should be able to stabilise and bring it below that level as well,” he said.
He said that the loan growth will remain muted in Q1FY22, but expects good growth in disbursals and AUM Q2FY22 onwards.
“In Q1FY22, we have had few days to work on both business and collections. Therefore growth in terms of book will be muted. But growth, in terms of disbursement YoY, will be very good. So, from Q2FY22, there will be good growth, both in disbursements as well as book,” he said.
Kousgi expects to maintain net interest margin (NIM) of around 3 percent and spread of around 2.4 percent. He also said that the company will raise capital in FY22 despite healthy capitalisation level.
For the full interview, watch the video.
(Edited by : Dipika Ghosh)