{"id":117,"date":"2019-08-08T11:55:23","date_gmt":"2019-08-08T11:55:23","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=117"},"modified":"2019-10-04T04:23:24","modified_gmt":"2019-10-04T04:23:24","slug":"indiabulls-housing-finance-1qfy20-result-update-asset-quality-deteriorates-sequentially","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2019\/08\/08\/indiabulls-housing-finance-1qfy20-result-update-asset-quality-deteriorates-sequentially\/","title":{"rendered":"Indiabulls Housing Finance 1QFY20 result update: Asset quality deteriorates sequentially."},"content":{"rendered":"\n<p><em>Dated: 7th August 2019<\/em><\/p>\n\n\n\n<ul><li>Loan assets declined 10% YoY to Rs 1,131 bn. The\ndecline is primarily due to efforts taken for reduction in the Commercial Real\nEstate (CRE) book. <\/li><li>NII at Rs 14,750 mn was 13% lower YoY. Pre-provisioning\noperating profits at 12,536 mn were 15% lower YoY.<\/li><li>Provisions were at Rs 1,476 mn compared to Rs\n649 mn and Rs 1,645 mn in 1QFY19 and 4QFY19 respectively. <\/li><li>PAT at Rs 8,020 mn was lower by 24% YoY. <\/li><li>Asset Quality worsened sequentially from GNPAs\nand NNPAs of 0.88% and 0.69% respectively in 4QFY19 to 1.47% and 1.10%\nrespectively in 1QFY20. <\/li><\/ul>\n\n\n\n<p>Management Commentary:<\/p>\n\n\n\n<ul><li>IBHFL reduced exposure to CRE loans amounting to\nRs 60 bn in 1QFY20. Efforts to reduce CRE exposure is in anticipation of the\nproposed merger with Lakshmi Vilas Bank (LVB).<\/li><li>Management has guided to quarterly disbursements\nof Rs 100 bn from 2QFY20. Guidance for loan book growth for FY20E is in\nmid-teens. <\/li><li>Management expects spreads to remain stable in\n300-325 bps range. <\/li><li>IBHFL recovered Rs 7 bn from Palais Royale in\n1QFY20 against earlier guidance of Rs 2 bn. Against the recovery, Rs 4.5 bn was\nused to make additional voluntary provisions. Under ECL norms, companies cannot\nmake floating provisions. Hence IBHFL has proactively classified certain\naccounts as Stage 3 (including Zee group, CCD group) and provided against them.<\/li><\/ul>\n\n\n\n<p>Consensus\nestimates (Source: Marketscreener website):<\/p>\n\n\n\n<ul><li>IBHFL closing price (as on 07-08-2019) was Rs 446\/-\nper share. It was trading at a P\/B of 1.1x\/ 0.9x its book value per share\nestimates of Rs 417\/ 493 for FY20E\/ FY21E respectively. Consensus target price\nover next 12 months is Rs 910\/- implying P\/B of 1.85x for FY21E BV of Rs 493<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Dated: 7th August 2019 Loan assets declined 10% YoY to Rs 1,131 bn. The decline is primarily due to efforts taken for reduction in the Commercial Real Estate (CRE) book. NII at Rs 14,750 mn was 13% lower YoY. Pre-provisioning operating profits at 12,536 mn were 15% lower YoY. Provisions were at Rs 1,476 mn [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[40,54],"tags":[64,67,48,66,65],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/117"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=117"}],"version-history":[{"count":1,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/117\/revisions"}],"predecessor-version":[{"id":118,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/117\/revisions\/118"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}