*Exceptional items in Q2FY21 and Q1FY21 comprise Rs 18 Cr MTM gain and Rs 70 Cr MTM loss on forex borrowings. As our forex loans are fully hedged, the accounting gain/loss will even out by maturity of the bonds. Last year, Q2FY20, exceptional item was one time impact of deferred tax reversal of Rs 99 Cr
IIFL Finance had loan assets under management of Rs 40,843 Cr as at September 30, 2020, with the home loans segment constituting 32%, business loans 19%, gold 28% and microfinance 8% of the total AUM.
The company’s annualized ROE and ROA for Q2FY21 stood at 17.1% and 2.4% respectively. The company recorded its highest ever pre-provision operating profit of Rs. 563 Cr. during the quarter, driven by higher off balance sheet asset income, volume growth and higher NIM. Average borrowing costs for the quarter decreased by 23 bps q-o-q to 9.1%.
89% of our loans are retail in nature and 42% are PSL compliant. The assigned loan book, currently at Rs 10,998 Cr, is 27% of AUM. There exists significant opportunity for further assignment, given our granular and retail book.
GNPA stood at 1.81% and NNPA stood at 0.77%, as at September 30, 2020. With implementation of Expected Credit Loss under IndAS, provision coverage on NPAs stands at 240% including standard asset coverage. Provision coverage excluding the additional general provision made for Covid impact stands at 114%
Total CAR stood at 18.7% including Tier I capital of 15.0% as at September 30, 2020, as against statutory requirement of 15% and 10% respectively.
The total presence of branches stood at 2,383 as at the end of quarter, spanning the length and breadth of the country.
At the end of the quarter, retail home loan assets stood at Rs 12,891 Cr. The primary focus in this segment is on affordable and non-metro housing loans. About 42,500 customers were benefitted with a subsidy of about Rs 1,000 Cr under the Pradhan Mantri Awas Yojana – Credit Linked Subsidy Scheme.
As of September 30, 2020 the gold loans AUM grew to Rs 11,386 Cr, showing a strong growth of 65% 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 28% y-o-y to Rs 3,460 Cr as at September 30, 2020. The microfinance customer base increased to over 15 lakh customers.
IIFL’s long term rating stands at AA as on date.
During the quarter, we raised Rs 1,402 Cr through term loans and refinance from banks. Loans of Rs 2,702 Cr were securitized/assigned during the quarter. Cash and cash equivalents and committed credit lines from banks and institutions of Rs 4,927 Cr were available as on September 30, 2020.
Gold Loan co-origination
IIFL Finance has partnered with CSB Bank for gold loan co-origination, for sourcing and managing retail gold loan assets. IIFL Finance, acting as Business Correspondent of the Bank, will source new business from markets where CSB Bank does not have adequate branch network. IIFL Finance, with its vast branch network, would help CSB Bank penetrate the lower strata of customers and rural areas, where the Bank currently does not have adequate reach. This arrangement would result in scaling up of the customer base.