Your profit was in line with Street expectations, your provisions, however, witnessed an increase on a sequential basis. How are you approaching provisioning going ahead and also, are we likely to see a quarter-on-quarter rise when it comes to Q2 and in Q3 as well?
As far as our delinquencies are concerned, there is a slight increase compared to the last quarter of the last financial year. That was the individual segment bond. There is a good collection efficiency and then we were able to improve our NPAs in the retail segment.
But what happened in the project finance is here and there, some slippages were there. So for the entire year – 2022-23 – there will be remarkable improvement in our performance as far as the NPAs are concerned. The provisions will also be more or less stable in the days to come in the financial year 2022-23.
What about disbursements? How were the disbursements in Q1. Do you see the demand translating into disbursements and has the recovery been as well?
Actually demand is stable, more or less. We are very positive about the days to come. The outlook is very positive for the home loans because housing is a basic need and property rates are more or less stable and are at the lowest level. People can afford housing facilities, not only in small towns, but in big cities as well. Now there is a good demand for bigger houses.
So the demand is going to be very strong from all sides. We have a very positive outlook on the demand side for housing loans. Recovery wise, there will be an improvement in our collection efficiency in the days to come. So with that, NPA levels will also be slightly improving and will be far, far better than that of last year. Then coming to the overall portfolio, our loan book increased by 12% to 15% for the full year, current year.
Let us talk about individual home loans that actually constitute the majority of your total loan composition. Do you see its share rising from the current levels going ahead? Also, what percentage loan growth did you actually see in the quarter gone by that is Q1?
As on date, the individual loan book is around 82%. It has gone up from 78% in the last year. At least this year also, our focus will be mostly on this individual home loan segment. More or less, it will stabilize over a period of time. We also have to improve the call rate in the other than home loan segment – our noncore areas. So, very selectively, we will go with caution and improve our footprint in the developer book as well.