The housing finance company's consolidated net profit tumbled 65.5% to Rs 272.84 crore on 33.7% drop in total income to Rs 2,578.23 crore in Q1 June 2020 over Q1 June 2019.
Consolidated profit before tax (PBT) slumped 68% to Rs 354.45 crore in Q1 June 2020 as against Rs 1105.99 crore in Q1 June 2019. Current tax expense for the quarter fell 86.8% to Rs 62.16 crore as against Rs 472.31 crore paid in Q1 June 2019. The Net Interest Income (NII) slipped 11.71% to Rs 731 crore during Q1 June 2020 over Rs 828 crore in Q1 June 2019. The Q1 result was declared after market hours on Friday, 21 August 2020.
Loan book grew marginally by 0.08% to Rs 73129 in Q1 FY21 from Rs 73065 crore in Q1 FY20. The financer said that the phase of reduction in loan book and Asset under Management (AUM) is over. Loan book will start growing from here on as per the company's business plan that blends co-origination with banks for retail loans and with funds for developer loans as two important pillars going forward. AUM will see significant growth from H2 of current fiscal onwards.
The outbreak of COVID-19 virus continues to spread across the globe including India, resulting into a significant decline and volatility in financial markets and a significant decrease in global and India's economic activities. This has led to significant disruptions and dislocations for individuals and businesses. The extent to which the COVID-19 pandemic will impact the holding company's business is dependent on several factors including, but not limited to, pace of easing of the government restrictions and full resumption of economic activity.
In accordance with RBI guidelines relating to COVID-19 Regulatory Package, Indiabulls Housing Finance has granted moratorium on the payment of installments falling due between 1 March 2020 and 31 May 2020 to all eligible borrowers who have requested for the moratorium. The moratorium has been further extended for installment falling due between 1 June 2020 to 31 August 2020 in accordance with the RBI press release dated 22 May 2020 which permitted lending institutions to extend the moratorium.
Shares of Indiabulls Housing Finance rose 1.97% to Rs 207.10 on BSE. Indiabulls Housing Finance's primary business activities are to carry on business of investing and finance related activities (investing in various subsidiaries, financing of loans and credit activities) and fee income, which mainly consists of financial service related fee income from services, selling of insurance products as a licensed corporate agent, and other related ancillary services.
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