Motilal Oswal - MOSL: Morning India (21/June/18): GRUH Finance â€“ Good traction in CLSS; Volume-led disbursement growth

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MOSL: Morning India (21/June/18): GRUH Finance â€“ Good traction in CLSS; Volume-led disbursement growth

MOrning India (21/June/18): GRUH Finance – Good traction in CLSS; Volume-led disbursement growth

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GRUH Finance: Good traction in CLSS; Volume-led disbursement growth; Tweak in liability strategy helped sustain margins in FY18

FY18 was a mixed year for Gruh Finance (GRHF). While disbursement growth rebounded well from demonetization-hit lows in FY17, the company experienced higher repayment levels, keeping loan growth stable at 18% YoY.
Disbursement growth of 27% YoY was driven by both volume as well as value. Volume growth was an encouraging 18%YoY in FY18.
LTVs continue to inch up – 12% of properties were financed at 80% + LTV in FY18 compared to 9% in FY17 and 4% in FY16.
Additionally, the dependence on ‘GRUH Referral Associates’ (GRAs) is increasing – they sourced 71% of total disbursements in FY18 v/s 68% in FY17 and 61% in FY15.

Piping hot news

ICICI Bank looks to appoint M.D. Mallya as chairman

ICICI Bank Ltd has sought the Reserve Bank of India’s (RBI’s) approval to name independent director M.D. Mallya as the next chairman of India’s second largest private bank, whose board has been criticized for letting a crisis at the bank fester.

21/06/2018 20 EN

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Motilal Oswal

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MOSL: Morning India (21/June/18): GRUH Finance â€“ Good traction in CLSS; Volume-led disbursement growth

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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