This article first appeared on GuruFocus .
Release Date: May 22, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Repco Home Finance Ltd ( BOM:535322 ) achieved its highest ever quarterly and annual disbursements, with 1,186 crores in Q4 and 4,148 crores for the year.
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The company reported a significant reduction in Gross Non-Performing Assets (GNPA), bringing it down from 3.26% to 2.55% by the end of March 2026.
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Repco Home Finance Ltd ( BOM:535322 ) maintained a healthy spread of 3.30% and a Net Interest Margin (NIM) of 5.38%.
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The company has diversified its borrowing sources, including commercial papers and pass-through certificates, which could help in reducing the cost of funds.
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Repco Home Finance Ltd ( BOM:535322 ) declared a total dividend of 75% for the financial year, indicating a commitment to returning value to shareholders.
Negative Points
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The company's loan book growth is significantly below its disbursement growth, primarily due to high prepayments and pre-closures.
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Repco Home Finance Ltd ( BOM:535322 ) faced a reduction in interest income by 11.53 crores due to a change in interest calculation methods.
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The company experienced a high level of prepayments and pre-closures, particularly from non-salaried customers, impacting loan book growth.
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Despite efforts, the company's Asset Under Management (AUM) growth remains a challenge, with a target of 18,000 crores by the end of the current financial year.
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The cost-to-income ratio remains a concern, and the company is cautious about increasing its sales force to manage costs.
Q & A Highlights
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Warning! GuruFocus has detected 5 Warning Signs with BOM:535322.
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Q: Are we still on track to achieve the earlier aspiration of a 25,000 crore loan book by FY28? A: (CEO) We are targeting a disbursement of approximately 5,000 crores this year, with an expected year-end loan book of about 18,000 crores. We anticipate reaching the 25,000 crore target in about three years, acknowledging a slight delay from the original timeline.
Q: How are you addressing the issue of loan book growth being significantly below disbursement growth? A: (CEO) We are taking steps to control balance transfers (BT) outflows, which are now under control at about 30 to 35 crores per month. We are also focusing on increasing disbursement speed while maintaining quality, as a significant portion of our loan book consists of non-salaried customers who tend to prepay when they have surplus cash flows.
Q: Will the CSR spending continue at 5% going forward? A: (CFO) No, we plan to maintain CSR spending around 2% to 3% in the future. The increase to 5% was due to our Silver Jubilee year, which also aimed to enhance brand visibility.
Q: Can you provide more details on the breakdown of BT out and prepayments? A: (CFO) For the year, BT out was approximately 400 crores, with the remaining amount being regular repayments and prepayments. The principal rundown was about 2,670 crores, with scheduled repayments accounting for around 700 crores.
Q: What is the strategy for improving growth in regions like Karnataka and Andhra Pradesh? A: (Chief Business Officer) We have aligned our teams and leadership in these regions and expect growth to improve. We are also seeing positive signs from Maharashtra, Madhya Pradesh, and Rajasthan, which should contribute to our overall growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
