Repco Home Finance Ltd, a housing finance company focused on retail home loans, reported a standalone net profit of ₹129 crore for the March quarter, up ₹4 crore over the corresponding period last year on improved income and asset quality.
Loan sanctions registered a 25% increase at ₹1,320 crore, while loan disbursements grew 22% to ₹1,186 crore. Total income rose 7% to ₹454 crore.
NII, Margins Improve
Net interest income increased 16% to ₹207 crore from ₹178 crore in the year-ago period. Net interest margin improved to 5.5% from 5.1%, while loan spread remained healthy at 3.6%.
Return on assets moderated to 3.4% from 3.6%, resulting in return on equity declining to 14.9% from 16.7%.
Loan Book Crosses ₹15,800 Crore
The overall loan book stood at ₹15,880 crore against ₹14,492 crore a year ago.
Housing loans accounted for 71% of the portfolio, while home equity products contributed 29% of the outstanding loan book. The entire portfolio comprised retail loans.
Loans to the non-salaried segment constituted 53% of the portfolio, while salaried borrowers accounted for 47%.
Asset Quality Strengthens
Gross non-performing assets declined to 2.55% from 3.26%, while net NPA improved to 1.17% from 1.32%.
The company carried provisions for expected credit losses of ₹343 crore, equivalent to 2.2% of total loan assets. Stage-3 assets carried a coverage ratio of 55%.
Repco Home Finance reported a capital adequacy ratio of 35.38%, significantly above the regulatory requirement of 15%.
Expands Regional Reach
Repco Home Finance Chairman C. Thangaraju said the company continues to deepen its geographical reach selectively across existing markets while expanding into newer regions.
The company operates through a network of 210 branches and 32 satellite centres across Southern States, Maharashtra, Odisha, Gujarat, West Bengal, Madhya Pradesh, Jharkhand, Rajasthan and Puducherry.