AAVAS Financiers notifies closure of branches amid COVID-19 outbreak

AAVAS Financiers on Wednesday (25 March) informed that all its branches and corporate office will remain closed in compliance with the Government of India's order.

Employees supporting the critical business operations & essential customer service will continue to work from home as per the company policy that has been put in place under the business continuity plan, the company said in a statement before market hours on Wednesday.

The firm added that 100% of its loan portfolio is secured against mortgage. The portfolio is very granular in terms of customer profiles with average ticket size of sub Rs 10 lakh.

It said that average loan-to-value (LTV) on the outstanding loan portfolio is less than 50%. It added that more than 95% of the EMI payments happen through electronic mode & banking channels.

As of 24 March 2020, the company enjoyed a strong liquidity position (without considering principal repayments) as cash & cash equivalents of Rs 1092 crore and un-availed documented sanctions stood at Rs 1475 crore. The total debt repayment (including interest of Rs 182 crore) over H1 FY21 stood at Rs 431 crore.

Shares of AAVAS Financiers slumped 9.44% to Rs 851, extending decline for eight day. The stock has crashed 52.06% from its recent closing high of Rs 1775.30 recorded on 13 March 2020.

Aavas Financiers is a retail, affordable housing finance company, primarily serving low and middle income self-employed customers in semi-urban and rural areas in the country. Majority of its customers have limited access to formal banking credit. The company's product offering consists of home loans for the purchase or construction of residential properties, and for the extension and repair of existing housing units.

On a consolidated basis, the housing financier reported 20.6% rise in net profit to Rs 67.92 crore on a 22.9% increase in total income to Rs 239.39 crore in Q3 December 2019 over Q3 December 2018.

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