Repco Home Finance dips on assets quality concerns

The stock dipped nearly 8% to Rs 672 on the BSE.

Repco Home Finance dipped nearly 8% to Rs 672 on the BSE as asset quality of the housing finance company deteriorated during the quarter ended December.

Gross non-performing assets (NPAs) ratio as a percentage of total loans surged to its highest level of 2.65% in December 2016 quarter (Q3FY17) against 2.41% advances in the previous quarter.

Net NPAs rose to 1.51% of advances for the quarter ended December 2016 against 1.3% of the advances in the quarter ended September 2016. Gross NPAs and Net NPAs stood at 2.3% and 1.4%, respectively, at the end of December 2015 quarter.

Net profit of the housing finance company increased by 20% year on year (YoY) at Rs 46.4 crore in Q3FY17 against Rs 38.6 crore in the year ago quarter. Net interest income grew 16% at Rs 90.70 crore on YoY basis. Net interest margin (NIM) declined to 4.2% from 4.5% over the previous year.

In past six trading sessions, the stock was down 12% from Rs 760 on February 6, against 0.4% decline in the benchmark index.

Quarter	NPAs in %
ended	Gross	Net
Q3FY14	2.0	1.3
Q4FY14	1.5	0.7
Q1FY15	2.5	1.6
Q2FY15	1.7	0.8
Q3FY15	2.0	1.2
Q4FY15	1.3	0.5
Q1FY16	2.2	1.3
Q2FY16	1.8	0.9
Q3FY16	2.3	1.4
Q4FY16	1.3	0.5
Q1FY17	2.2	1.2
Q2FY17	2.4	1.3
Q3FY17	2.6	1.5
Source : Company