The mortgage lender said it would also be evaluating other alternatives to raise capital.
Its capital adequacy ratio stood at 20.7% at the end of September, higher than regulatory stipulation of 15%.
“The primary objective is to raise capital to support the growth of the company,” the company said.
The board believed that the protracted litigation, continuation of Securities Appellate Tribunal interim order and pending regulatory approvals for the proposed equity infusion from Carlyle group was not in the best interests of the company and its stakeholders.
The housing financier reported a 25% fall in net profit for the September quarter at Rs 235 crore against Rs 313 crore in the year ago period.
Its net interest margin squeezed to 3% from 3.5% over the same period, in line with a 22.7% fall in net interest income at Rs 503 crore.
Operating profit also fell 25% at Rs 433 crore against Rs 575 crore earlier.
Its business shrunk 3% quarter-on-quarter with asset under management (AUM) at Rs 69,810 crore at the end of September. “The de-growth in AUM is on account of sell down / accelerated payments and no new sanctions in the corporate book,” the company said.
Retail book contributed 86% to the AUM. Loan disbursements during the quarter were higher at 2,961 crore compared with Rs 2,444 crore in the year ago period. Retail disbursements were 96% of the total disbursements in the reporting period.
The non-bank lender’s gross non-performing assets improved sequentially to 5.92% from 6% a quarter ago. Gross NPA was 2.59% a year back. Net NPA stood at 3.3% of the loan assets as compared with 3.6% at the end of June.
