Lionheart Holdings Q2 FY2023 earnings call

• Celebrated 119th Foundation Day on 31st October 2022. - Changed Board constitution with Srimati Lalitha Rameswaran inducted and Srimati Abarna Bhaskar retired. - Performance on key parameters: deposits, advances, profit, ROA, NIM, NPA all showed positive trends. - SpiceJet management is servicing dues regularly, having repaid INR 17.5 crores and current outstanding limit is INR 82.5 crores. - Digital initiatives include soft launching voice-based biometric authorization, tie-ups with FinTechs for various solutions, and being at par with new generation banks in technology. - Planning to open 50 to 75 branches, mostly in the fourth quarter.

Deposits recorded an 8% year-on-year growth, rising from INR 46,316 crores to INR 49,878 crores. Advances grew 12% year-on-year to INR 42,701 crores. Business stood at INR 92,579 crores, a 10% growth. CASA grew 16% to INR 15,609 crores, with CASA percentage to deposits improving to 31% in Q2 FY '23. Net profit increased by 52% from INR 182 crores to INR 276 crores. Return on assets was 1.72% in Q2 FY '23. Net interest margin was 4.09% in Q2. Gross NPA was 4.36% and net NPA was 2.69% as of 30th September 2022.

• Expecting 15% to 18% credit growth for FY '23, back-ended with bulk in Q4. - ROA expected to stay healthy, around current levels. - NIM expected to stay around current level with an upward bias due to increasing interest rate scenario.

• Negative risk from general economy slowdown if war extends, oil prices stay high, and macroeconomic stability issues, particularly from developed countries' economic issues.

Q: On global macros impact?

A: Minor pinpricks possible but under control, hope for normalcy in next 6 months