Mortgage financier Indiabulls Housing Finance on Wednesday reported a two-fold jump in its profit after tax (PAT) to Rs 276 crore in the quarter ended March 2021 helped by stable asset quality.

Speaking to CNBC-TV18, Gagan Banga, VC & MD of the company said that it has made a provision of 110 basis points in FY21 and will make more provisions in FY22.

“We last year made provisions of about 110 basis points. To our equity stakeholders we have reiterated that we will continue with provisioning as is expected right now of another 100-125 basis points for FY22,” he said.

According to Banga, Q1FY22 will be impacted by lockdown. However, he believes that since the company has been conservative in the past 2.5 years and has raised capital adequacy to over 30 percent, Indiabulls Housing Finance is in a solid shape to face FY22.

He also said that the company is using the lockdown period for further planning of the execution strategy.

“On the execution strategy, we are pursuing an asset-light model where we require to put in a low-cost distribution structure. So we are using Q1 to further integrate the technology part with all of our partners such that once by mid-June or July things start opening up, we are in a good position to start doing distribution. We have laid out a target that by end of FY22 we should be hitting a run rate of about Rs 2,000 crore a month of disbursals,” he said.

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(Edited by : Ankit Gohel)