Mortgage lender Indiabulls Housing Finance reported a 37 per cent per cent drop in its pre-tax profit in Q4FY20 on a standalone basis owing to extra provisions made on account of Covid-19. The lender reported a pre-tax profit of Rs 789 crore in Q4FY20 versus Rs 1,252 crore in the same period, a year ago. Net profit of the lender stood at Rs 693.53 crore compared to Rs 875.39 crore in the year ago period, down 20.77 per cent.
The lender made extra provisions of Rs 700 crore on account of Covid-19 equivalent to 1 per cent of the loan book.
The lender raised more than Rs 9,000 crore in the last three months via bond issuances, term loans from banks and securitisation. The amount raised in the last three months represents 12.5 per cent of the total liabilities of the lender. Further, the lender's board also approved a proposal to raise up to $300 million.through QIP/FCCB.
Gross non-performing assets of the lender at the end of Q4FY20 stood at 1.8 per cent of the loan book. Total provisions of the lender made towards bad loans stood at Rs 3,741 crore in Q4FY20 compared to Rs 1,574 crore in Q4FY19. The loan book of the lender shrank almost 24 per cent at the end of Q4FY20 to Rs 69,676 crore compared to Rs 91,530 crore, a year ago.
“The company has also recorded fair value impairment of Rs 636 crores on AT-1 bonds of Yes Bank Limited to record the effect of the scheme of reconstruction announced by RBI”, it said. The company has effectively achieved zero net NPA status and now carries Rs 2,391 crore of extra provisions, representing 3.4 per cent of the loan book, for navigating through covid19 and post covid19 periods”, it further said.
Total revenues of the lender on a standalone basis was down 30 per cent to Rs 2,620 crore from Rs 3,756.33 crore. Its asset compositon constitutes 64 per cent of housing loans and 34 per cent non-housing loans.
The capital adequacy ratio of the lender at the end of March quarter stood at 27.1 per cent.