The mortgage lender said it would also evaluate other options for raising capital.
Its capital adequacy ratio It stood at 20.7% at the end of September, which is higher than the regulatory stipulation of 15%.
“The primary objective is to raise capital to support the company’s growth,” the company said.
The Board was of the view that protracted litigation, continuance of the Securities Appellate Tribunal’s interim order and pending regulatory approvals for the proposed equity investment from Carlyle Group were not in the best interest of the company and its stakeholders.
The housing financier reported a 25% drop in net profit at Rs 235 crore for the September quarter from Rs 313 crore in the year-ago period.
Its net interest margin narrowed to 3% from 3.5% in the same period, which is in line with a 22.7% decline in net interest income to Rs 503 crore.
Operating profit also fell 25 per cent to Rs 433 crore from Rs 575 crore earlier.
Its business with assets under management (AUM) grew 3% quarter-on-quarter to Rs 69,810 crore at the end of September. “The fall in AUM is on account of sell-off/expedited payments and no fresh restrictions in the corporate book,” the company said.
Retail book contributed 86 per cent to AUM. Loan disbursement during the quarter was higher by Rs 2,961 crore as compared to Rs 2,444 crore in the year-ago period. Retail disbursements accounted for 96% of the total disbursements during the period under review.
The non-bank lender’s gross non-performing assets rose to 5.92% sequentially from 6% a quarter ago. gross NPA It was 2.59% a year ago. Net NPAs stood at 3.3% of debt assets as compared to 3.6% at the end of June.