Capri Global Capital Limited — Q1 FY26

Capri Global Capital Ltd Q1 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Y6zTpWqURik Published: 9 months ago

Chapter 1: Introduction 0:01 1 second Ladies and gentlemen, good day and welcome to the Capri Global Capital Limited Q1 FY26 earnings conference call 0:09 9 seconds hosted by Go India Advisors. As a reminder, all participant lines will be in the listen only mode and there will 0:17 17 seconds be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please 0:25 25 seconds signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being 0:32 32 seconds recorded. I now hand the conference over to Mr. Harvik Dshi from Capri Global Capital Limited. Thank you and over to you sir. Chapter 2: Opening Remarks 0:47 47 seconds Hello. Yeah. Yes sir. Go ahead. 0:51 51 seconds Good morning everyone and welcome to Q1 FI26 earnings call for Capri Global Capital Limited. This is Havi Doshi, 0:59 59 seconds head corporate finance and investor relation. As a brief disclaimer, the discussion on today's call regarding Capri Global Capital Limited's earning 1:06 1 minute, 6 seconds performance will be based on judgments derived from the declared results and information regarding business opportunities available to the company at this time. The company's performance 1:15 1 minute, 15 seconds is subject to risk, uncertainties and assumptions that could cause results to differ materially in future. Given these uncertainties and other factors, 1:23 1 minute, 23 seconds participants on today's call may observe due caution while interpreting the results. The full disclaimer is available on slide 63 of earnings 1:30 1 minute, 30 seconds presentation which is also available on our website. Participants are requested to take note of the same. With us today 1:38 1 minute, 38 seconds on the call, we have Mr. Rajesh Sharma, managing director of the company, Mr. 1:42 1 minute, 42 seconds Mr. Kishor Loda, Chief Financial Officer, Mr. Sanjiv Shivas Sawa, Chief Risk Officer and Miss Diva Sutra, 1:50 1 minute, 50 seconds Director Business Strategy. I now request our managing director Mr. Rajes Sharma to present the opening remarks. Over to you, sir. 1:59 1 minute, 59 seconds Thank you. Good afternoon everyone. I hope uh you are all doing well. We announced our unodited financial results for the first quarter of the financial 2:08 2 minutes, 8 seconds year 2026 earlier this month on 1st August. I trust you have the opportunity to review the arming presentation which 2:16 2 minutes, 16 seconds is also available on our website. Before I move on to the financial and operation highlights, there are a couple of things I would like to specifically highlight. 2:26 2 minutes, 26 seconds During the quarter, we successfully completed a qualified institutional placement raising rupees 2,000 crores in 2:34 2 minutes, 34 seconds primary capital. This was a landmark event for the cap global marking our first VIP in over a decade. The offering 2:42 2 minutes, 42 seconds received a strong and broad-based response from both domestic as a foreign institutional investors which we view as 2:49 2 minutes, 49 seconds a powerful endorsement of our financial performance, governance standards and long-term strategic road map. This capital incision significantly 2:57 2 minutes, 57 seconds strengthens our balance sheet and enhances our ability to scale operations across core lending verticles including 3:04 3 minutes, 4 seconds MSME, affordable housing, gold loan and construction finance. Importantly, it is also provides us with the additional 3:12 3 minutes, 12 seconds flexibility to invest in next generation technology including generative AI and data science capabilities which continue 3:19 3 minutes, 19 seconds to play an instrumental role in sharpening our underwriting, risk management and customer engagement. 3:26 3 minutes, 26 seconds Beyond business expansion, this fund raise opens up new avenues to further diversify our borrowing and deepen our 3:33 3 minutes, 33 seconds liability franchise. As we scale responsibly, we remain focused on improving credit access for underserved customer segment, driving greater 3:41 3 minutes, 41 seconds operating efficiency and building a resilient, well diversified, secured portfolio. Coming to our business and earning performance during the quarter. 3:52 3 minutes, 52 seconds Overall, I would say it is a good start to the year. A good quarter on volume, asset under management, opex, profitability, ro and roe. 4:01 4 minutes, 1 second We commence FI26 with healthy momentum across our lending businesses. As of June 30th, 2025, our consolidated AUM is 4:10 4 minutes, 10 seconds restored at rupees 24754 crores resisting a year-on-year growth of about 42%. This performance was made 4:18 4 minutes, 18 seconds by robust retail AUM growth driven by a 69% year-on-year surge in gold loans and 32% yon-y increase in housing loans. 4:27 4 minutes, 27 seconds Collending AUM reached about 4,681 crores up by 64% yearonear and 4:33 4 minutes, 33 seconds contributing 18.9% of consolidated AUM versus 17.8% in Q4 FI25 underscoring our deeping partnership with leading banks. 4:46 4 minutes, 46 seconds Disbustment for the quarter grew 51% yearonear to rupees 84 uh 8,458 crores 4:52 4 minutes, 52 seconds supported by expanding distribution division improved customer on boarding. 4:57 4 minutes, 57 seconds Growth continues to be granular and well diversified with number of customers surpassing 5 and a half lakhs reinforcing the strength and scalability of our retailled model. 5:08 5 minutes, 8 seconds MSME loan grew to rupes 5,477 crores while our housing branch portfolio stood at rupes 5,490 crores 5:16 5 minutes, 16 seconds translating to robust year-on-year growth about 14% and 32% respectively. 5:21 5 minutes, 21 seconds The MSME business is gaining from our calibrated roll out of uh small ticket size secured business loan called 5:28 5 minutes, 28 seconds microlab now present in over 94 locations helping us reach emerging self-employed borrowers with lower 5:35 5 minutes, 35 seconds ticket size requirement. In housing finance we continue to see resilient borrower demand across the affordable 5:42 5 minutes, 42 seconds segment where rising urbanization income formulization and housing upgrades are driving demand for secured credit. 5:50 5 minutes, 50 seconds Further Aasina subsidy scheme is also fueling the growth. Our gold loan business maintain 5:59 5 minutes, 59 seconds strong momentum in quarter 1 FI26 with AUM rising 69% year on year to rupes 9,15 cr rupes. The 6:08 6 minutes, 8 seconds portfolio is supported by 821 specialized branches with average AUM per branch at rups 11.1 crores. As of 6:17 6 minutes, 17 seconds June 25, 737 branches are operating above the break even of rupees 5 cr aum per branch mark. A fully digitized loan 6:26 6 minutes, 26 seconds journey, AI enabled security system and high customer driven by repeat borrowers of 55% to power this growth with ongoing 6:35 6 minutes, 35 seconds network expansion and the activation of cool lending partnership. Gold loans remains a key growth driver of high yield secured 6:43 6 minutes, 43 seconds growth business model. Our construction finance portfolio grew 61% year to rupes 4,521 cr now funding over 280 active 6:52 6 minutes, 52 seconds residential project with an average sanction of rupees size of rup 41 cr. 6:57 6 minutes, 57 seconds The book remains well diversified in vendor reflecting our focus on working with midsize developer in metro and tier 7:04 7 minutes, 4 seconds 1 cities. We continue to emphasize disciplined underwriting through rigorous due diligence and escro based cash flows management ensuring a risk first approach. 7:16 7 minutes, 16 seconds Demand in the affordable mid-inccome housing segment demands is strong providing a steady pipeline for its gibbon and prudent growth. Chapter 3: Core Earnings 7:29 7 minutes, 29 seconds Now I'm coming to earning performance. 7:32 7 minutes, 32 seconds Let me now provide an update on our core earnings. Our yield and spra net advances remain healthy in the quarter 7:39 7 minutes, 39 seconds at 16.9% and 7.2%. Our net interest income for quarter 1 FI26 reached at 7:46 7 minutes, 46 seconds rupes 416 crores marking a 38% year-on-year increase driven by robust growth in our loan book. We continue to 7:54 7 minutes, 54 seconds strengthen our non-interest income streams in quarter 1 FI26 reinforcing our strategy of building a diversified and resilient earning profile. 8:03 8 minutes, 3 seconds Non-interest income grew 53% yearonear to rupees 166 cront contributing 28.5% of net total income for the quarter 8:12 8 minutes, 12 seconds driven by strong growth in co- lending fee income and insurance distribution. 8:17 8 minutes, 17 seconds Our car loan distribution business maintained its steady momentum with originations of rups 2651 cr in quarter 8:24 8 minutes, 24 seconds 1 fi26 up 19% yearonear with a growing footprint and deep relationship across 12 partner banks and finance institutions. We have built a scalable 8:33 8 minutes, 33 seconds and high volume platform in this segment. In insurance distribution, we generated net fee income of rup 28 cr in 8:40 8 minutes, 40 seconds the quarter with partnerships across 18 insurers and increasing penetration across our retail customer base. We 8:47 8 minutes, 47 seconds expect this business to become a meaningful contributor to our overall fee income going forward. Meanwhile, co- 8:54 8 minutes, 54 seconds lending income stood at rupees 73 cr supported by rising dispersal volume with partner banks. 9:01 9 minutes, 1 second Our branch network expanded to 1,138 locations in quarter 1 FI26 with a net 9:08 9 minutes, 8 seconds addition of 26 27 branches. While our employee base remain steady at 11,546. 9:15 9 minutes, 15 seconds Over the past few quarters, we have seen a clear shift in operational efficiency with our cost to income ratio improving 9:21 9 minutes, 21 seconds meaningfully to 55% to 49% in 9:26 9 minutes, 26 seconds uh and in 4q FI25 and 65% 1 Q FI25 during the quarter we had one time 9:35 9 minutes, 35 seconds benefit out of the 15 cr in the operating expenses due to reversal of provisions of account of change in the period policy adjusted for that our cost 9:43 9 minutes, 43 seconds to income ratio would have 49%. The sharp improvement reflects the benefit of our maturing branch network, rising 9:50 9 minutes, 50 seconds productivity due to various AI uh enabled tools and increasing digital enablement. 9:57 9 minutes, 57 seconds Pre-provision operating profit surge 115% yearonear to rupees 312 crores 10:04 10 minutes, 4 seconds during the quarter underscoring the impact of operating leverage and discipline execution. As our network continues to mature and technology 10:12 10 minutes, 12 seconds adoption deepens, we see further headroom to drive productivity gains and sustain this trend of improving operating efficiency. 10:20 10 minutes, 20 seconds We continued our strong profitability momentum in Cuban FY26 delivering a robust profit after tax of rupes 175 cr 10:28 10 minutes, 28 seconds up 131% yearonear. This sharp growth was driven by expanding margins, operating leverage benefits and consistent 10:36 10 minutes, 36 seconds performance across all key business segments. Despite the impact of recent equity fund, return ratios remain 10:44 10 minutes, 44 seconds healthy with ROE of 13% and ROA about 3.2% for the quarter. 10:52 10 minutes, 52 seconds As regard asset quality, our credit cost for the quarter increased to rupees 81 cr in quarter 1 fi 26 from rupes 18 cr 11:00 11 minutes in 4q fi25 or 1.6% of the gross loan book and a provision coverage ratio in stage three 11:07 11 minutes, 7 seconds loans remain at 41% demonstrating our prudent provisioning and conservative approach to risk management. Increase in 11:15 11 minutes, 15 seconds credit cost was on the account of high receal provision or rupees 55 cr mainly driven by increase in stage 1 provision 11:22 11 minutes, 22 seconds of rupes 24 cr. Increase in stage two assets in MSN in housing loan for rupees 71 cr resulting in incremental provision 11:30 11 minutes, 30 seconds of rupes 22 cr. One account in construction finance with out outstanding loan of 16 cr slipping into NPA 11:38 11 minutes, 38 seconds which provisions of rupees 8 cr has been created. However, there was a right back of 7 cr provision due to recovery from the previous accounts. One of provision 11:47 11 minutes, 47 seconds on car loan receivables of rupees 11 cr rupees. Gross stage three assets were at 1.7% marginally higher on a sequential 11:56 11 minutes, 56 seconds basis but improved by 48 basis year on year while net stage three stood at 1% down 19 basis year on year. Collection 12:04 12 minutes, 4 seconds efficiency remained strong reinforcing the resilience of our portfolio. We are further enhancing our risk management framework by leveraging advanced 12:12 12 minutes, 12 seconds analytics and data science to sharpen customer risk profiling and improving underwriting ensuring discipline sustainable growth capital. Chapter 4: Financials 12:24 12 minutes, 24 seconds Following the successful of uh completion uh of rupees 2,000 cr equity raised through QIP during the quarter, our balance sheet is significantly 12:32 12 minutes, 32 seconds stronger providing ample headroom to accelerate growth across businesses while maintaining financial prudence. 12:38 12 minutes, 38 seconds This capital infusion has resulted in a robust standalone credit uh capital 12:45 12 minutes, 45 seconds adequacy ratio of 34% for CGCL supported by a total equity of 6,430 cr while Capital Global Housing Funds Limited 12:54 12 minutes, 54 seconds closed the quarter with a healthy capital education of 29%. 12:58 12 minutes, 58 seconds Liquidity remains comfortable with our rupees 3,700 cr in cash and bank balances investment and undrawn credit lines across CGC and CGF giving us the 13:07 13 minutes, 7 seconds agility to navigate evolving market condition and deploy capital strategically borrowing ste,979 13:16 13 minutes, 16 seconds cr with a debt to equity ratio of 2 and a half times. We continue to diversify our funding mix by tapping capital markets, increasing the share of NCDS 13:25 13 minutes, 25 seconds and commercial papers. During the quarter, we successfully raised rups 150 cr of NCDS at competitive rates between 9 to 9.25%. 13:34 13 minutes, 34 seconds Our board has also approved a public NCD is insurance up to 1,000 cr rupes if you plan to tap opportunist strictly. 13:41 13 minutes, 41 seconds Additionally, the softening interest rate environment driven by reduction in cap rate and subsequent decline in MCLR is expected to further lower our cost of borrowing supporting our profitability. 13:53 13 minutes, 53 seconds Our technology investment remained foundational to our ability to skills securely and efficiently. We invested 14:00 14 minutes rupees 26 cr this quarter in technology, data science and systems reflecting our belief that technology is not a one-time capex but a continuous engine of 14:09 14 minutes, 9 seconds transformation. We are focusing on leveraging generative AI in further enhancing our processes for evaluating 14:17 14 minutes, 17 seconds customer profile collateral and collections. Cyber security and compliance le upgrades remain core priority as you expand our digital footprint. 14:26 14 minutes, 26 seconds I'm also pleased to share that Capri Global has received a strong EG rating of 69 from NSE sustainability rating analytics placing us ahead of the most 14:35 14 minutes, 35 seconds listed NBFC's on the NSE and reflecting our robust governance practices as well as our structured approach to environmental disclosures. 14:44 14 minutes, 44 seconds While we see room to further strengthen the social pillar, this rating is a strong validation of our ESG journey and our commitment to responsible growth. 14:53 14 minutes, 53 seconds Complementing our EUG progress, we continue to strengthen our brand visibility through impactful campaign like Khark which has significantly 15:02 15 minutes, 2 seconds enhanced awareness and recall across our key markets. Backed by a 360°ree media plan expanding TV, print, digital and 15:09 15 minutes, 9 seconds branch activation. This campaign is helping us to build not just visibility but also a deeper emotional connect with the people we serve. 15:25 15 minutes, 25 seconds Now we would like to open the session for question and answer. 15:31 15 minutes, 31 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 15:38 15 minutes, 38 seconds star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 15:47 15 minutes, 47 seconds requested to use hands while asking a question. 15:50 15 minutes, 50 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 16:04 16 minutes, 4 seconds The first question is from the line of Gorav Puroit from systematics. Please go ahead. 16:11 16 minutes, 11 seconds Uh, hi sir. Am I audible? Yes sir, you're audible. 16:18 16 minutes, 18 seconds Okay. So I have a few questions. Uh I'll start with growth. So growth has been fairly uh robust in the recent quarters 16:25 16 minutes, 25 seconds and given the current momentum that you're seeing, is there a possibility that we exceed the 30% guided growth range for the next few years? 16:36 16 minutes, 36 seconds Uh thank you. I think we we are going to remain on course for a 30% growth and uh that we believe that that is quite 16:45 16 minutes, 45 seconds healthy growth. uh we don't think we are going to exceed that this year. 16:51 16 minutes, 51 seconds Okay. And also sir uh uh on growth what is giving you comfort on you know 16:58 16 minutes, 58 seconds growing progressively? I understand that you are primarily into secured businesses uh and what do you think uh 17:07 17 minutes, 7 seconds can go wrong uh given the current environment because uh some of your peers have started reporting you know 17:13 17 minutes, 13 seconds some stress in MSME segments. So uh do you think that could uh in later on some 17:20 17 minutes, 20 seconds you know result into some delinquencies or are you seeing that sign in your portfolio right now so I think our confidence of 30% growth 17:29 17 minutes, 29 seconds comes that we are as you rightly said we are in a collateralized portfolio so we have ability to recover by uh various 17:38 17 minutes, 38 seconds means including disposing of the property which is mortgaged to us uh out of about 35% portfolio is the 17:47 17 minutes, 47 seconds gold which is uh the asset quality remains in our complete control where we can auction the gold and recover our 17:55 17 minutes, 55 seconds money with regards other segment uh we agree that MSME we have seen some sleeping more particularly from a state 18:03 18 minutes, 3 seconds of Madhya Pradesh where we are already toning down our disbburusments and cautiously we are progressing on that uh 18:13 18 minutes, 13 seconds however other segment of housing finance remain very stable where we have not seen much challenge in 18:21 18 minutes, 21 seconds asset quality and now a chroma credit subsidy coming in the play where the loan to value further goes down giving 18:29 18 minutes, 29 seconds us a higher security margin I think we are going to see the good growth in that segment so while uh this quarter some 18:39 18 minutes, 39 seconds more delinquency have come because of various reason including that first quarter is always we have seen the rise 18:46 18 minutes, 46 seconds in the delinquency either because of seasonality or also Q4 we run lot of campaigns and incentive programs and uh 18:56 18 minutes, 56 seconds uh one of the reason is also that quarter is less than 90 days so some of the slippage because of the furies in 19:02 19 minutes, 2 seconds the 28th month some of the 6190 cases slips on in the month of April because of those two days advantage in the last 19:11 19 minutes, 11 seconds quarter so combination of However, if you see the overall delinquency that is still our GMP is in the range about 1.7%, net NP is about 1%. It is very very healthy and robust. 19:25 19 minutes, 25 seconds Uh and sir uh like the trend we've seen in the last year, do you see the slippages coming down uh significantly in the coming quarters? 19:35 19 minutes, 35 seconds I will say that uh slippages will not be as much as what we have seen. uh you will see that overall asset quality remain in the range we have projected. 19:46 19 minutes, 46 seconds So as a company we are given the guidance that our uh gross NPA will never cross 2%. Net NPA will never cross 19:54 19 minutes, 54 seconds 1.2%. I think we intend to maintain within that range specifically to projects about quarter will will not be 20:02 20 minutes, 2 seconds possible. It can always vary 10 days here and there but overall range will remain the the 20:10 20 minutes, 10 seconds uh fair enough sir. Uh also in one of your recent media interactions after the QIP uh you had mentioned that there's a 20:18 20 minutes, 18 seconds potential of a credit rating upgrade. So any uh progress over there uh if you can share the 20:25 20 minutes, 25 seconds about what uh credit rating uh you had mentioned in one of your media interview is on 20:33 20 minutes, 33 seconds exercise is on we should see the result by uh mid of September. 20:40 20 minutes, 40 seconds Okay. And then uh there's a possibility of a reduction in your cost from third quarter onward. uh yeah I think because 20:48 20 minutes, 48 seconds the as far as the reduction of cost is concerned I think uh for the next 12 months we'll be having a higher 20:56 20 minutes, 56 seconds dependency on NCD commercial paper and also lot of uh loans whose MCLR is going to get reset 21:05 21 minutes, 5 seconds the NCLR have already announced the reduction by various banks and and we see the inflation have also come down so overall interest rates scenario should 21:13 21 minutes, 13 seconds look like the interest rate is going to remain And often that effect will be seen over a period of time next 6 months 21:21 21 minutes, 21 seconds whenever the individual banks MCA get reached we'll get the advantage plus our incremental borrowing 21:28 21 minutes, 28 seconds are going to be at a lower level by at least 30 to 40 basis. So we'll see quarter on quarter our cost of funds 21:35 21 minutes, 35 seconds will come down and by the end of the year uh I think our overall cost of the fund should be at least come down by uh 40 to 50 basis. 21:48 21 minutes, 48 seconds Oh that that was a sizable reduction. Uh okay uh just one specific question on 21:56 21 minutes, 56 seconds your microl because you said that that is helping you scale up your MSME. 22:01 22 minutes, 1 second uh one of your peers has actually uh discontinued the best work in that business specifically in the south India market. 22:10 22 minutes, 10 seconds So any comment on that and how you I understand it is a very uh 22:17 22 minutes, 17 seconds recent uh venture and the book is not yet seasoned but any sign of stress that you're seeing there. So I think we are Chapter 5: Loan Book 22:25 22 minutes, 25 seconds also growing that book very cautious cautiously depending on the various feedback and observation that 22:32 22 minutes, 32 seconds delinquency have risen in microlab segment. However, we are creating a differentiation by using the technology 22:40 22 minutes, 40 seconds and also data science capability where various risk triggers are being built and uh we have gone a little slow till 22:49 22 minutes, 49 seconds our full stack of technology get rolled out which should be happen by end of September. So we are cautiously trading there and we are confident that uh given 22:58 22 minutes, 58 seconds our experience in the collateralized lending we'll be quite cautious the way we do the collateralization legal title 23:06 23 minutes, 6 seconds search any case going bad you can your ability to recover comes from the confidence the right valuation and the 23:14 23 minutes, 14 seconds right title. So we are quite confident that uh we'll be doing better than the competition that this is back that by 23:22 23 minutes, 22 seconds our technology and data science capabilities and sir one last relating question. So in case 23:29 23 minutes, 29 seconds sir please I'll come back question thank you the next question is from the line of shwa padhi from SBS securities please go ahead. 23:41 23 minutes, 41 seconds Hello sir, thank you for the opportunity as long as in the late set of numbers. 23:46 23 minutes, 46 seconds So um in this photo we have a slight increase in the G&P in the construction finance uh segment right on the se on 23:54 23 minutes, 54 seconds that on that and uh second question is on the cost to income ratio. The performance has been very good on the cost to income. So where do we expect 24:02 24 minutes, 2 seconds this cost to income to settle by FY26 exit? 24:09 24 minutes, 9 seconds I think our cost to income ratio on the increased scale of operation it should uh come 24:18 24 minutes, 18 seconds down. However, we are going to add another 150 to 100 branches this year. 24:23 24 minutes, 23 seconds So we expect this cost to income ratio to remain in the range about 50% throughout the year. 24:32 24 minutes, 32 seconds If we if we remove the impact of the addition of the branches then cost of uh 24:39 24 minutes, 39 seconds income ratio in real terms will be in the range about 46 to 47%. But we assume that because of those branches the 24:46 24 minutes, 46 seconds impact will be there. So still it will be much lower than the last year and if you are able to do even the cost income ratio in the range of 50%. 24:56 24 minutes, 56 seconds uh we are on the track to deliver ROA in the range about 3 and a half%. 25:05 25 minutes, 5 seconds Yes sir. And on the construction the finance part the site interest in the G&PA. 25:11 25 minutes, 11 seconds So there's a one account which has uh slipped into the NPA and uh on account of that the value of that account was 16 25:20 25 minutes, 20 seconds cr 8 cr rupees uh provision have been uh provided for but already for that 25:27 25 minutes, 27 seconds account as you do if you see the last last quarter the recovery has also happened in this on account of one of 25:34 25 minutes, 34 seconds the NP about 7 cr this is constant phenomena further there are lot of developer who are coming forward to take 25:41 25 minutes, 41 seconds over that account. So this remains in a consistent basis that whenever NP happens through the surface other means 25:49 25 minutes, 49 seconds you are able to attract other developer to take over the account and and recover amount. 25:59 25 minutes, 59 seconds Thank you sir. 26:01 26 minutes, 1 second Thank you. Our next question is from the line of Chintan Sha from ICICI securities. Please go ahead. 26:11 26 minutes, 11 seconds Uh yeah uh thank you for the opportunity uh and uh congratulations on a great set of numbers. Uh so this uh firstly uh on 26:19 26 minutes, 19 seconds this uh um basically after as you mentioned the GMP is likely to be uh below 2% and NPA below 1.2%age. 26:28 26 minutes, 28 seconds Uh so like uh given that some lenders have already flagged some risk on the MSNA portfolio. So what gives us the 26:34 26 minutes, 34 seconds confidence of what how are how are we getting that confidence uh and uh if you could just throw some light on the collections part as well how the 26:42 26 minutes, 42 seconds collections panning out. Yeah that's the first question please. 26:46 26 minutes, 46 seconds So yes uh as regard the collection is concerned I think we have about 520 26:55 26 minutes, 55 seconds people's very strong team and we have a very good uh analytics on the collection the processes automation is in place 27:03 27 minutes, 3 seconds here we are able to track actively our collection agent performance and drive them we are attractive incentive plan to 27:10 27 minutes, 10 seconds push them higher having said that yes we have seen some of the slippages happening in MSME we more cautious for our incremental 27:19 27 minutes, 19 seconds underwriting and taking uh the right measures. Currently our collection efficiency in the range about 97% upward Chapter 6: Collection Efficiency 27:28 27 minutes, 28 seconds uh in the segment. So we are quite confident that uh our focus will be to 27:34 27 minutes, 34 seconds resolve the old NPA faster by doing lot of settlement and other things and we see that uh while our MSM is 100% 27:43 27 minutes, 43 seconds collateralized not like many other where they are giving unsecured business loan they are collateralized where we LTV 27:50 27 minutes, 50 seconds cushion about 55% is LTV there so with that cushion in place uh even though the 27:57 27 minutes, 57 seconds accounts uh slip into NPA we are quite confident to auction those properties or recover back of those property by mutual negotiation and recover those amount. 28:08 28 minutes, 8 seconds Focus during the next 9 months will be that old NPA pool we are able to resolve faster by settling those accounts by 28:16 28 minutes, 16 seconds selling those properties faster. uh and I think with that pace coming back uh our NPA overall will remain in 28:25 28 minutes, 25 seconds rangebound as I said our GMPPA will not cross uh more than 2% our net NP will not cross more than 1.25% to 5% within that framework will work. 28:38 28 minutes, 38 seconds Sure. Uh this quite helpful and also sir secondly on this AUM growth so we have guided for around 30% AUM growth for 28:46 28 minutes, 46 seconds FI26 but on a steady state basis probably over the next 2 three years could we assume a similar trajectory or 28:52 28 minutes, 52 seconds are we looking to mod the growth post 26 on the growth front how we should how should we look at it? Yeah. So I would 29:00 29 minutes like to say that if you observe that we are a well diversified uh company in secured segment. We have currently five 29:08 29 minutes, 8 seconds products. So we have ability to change the levers and increase one product which is doing better and reduce the 29:16 29 minutes, 16 seconds other product which is doing not that well given the macro environment in in in some of the segment or some of the 29:23 29 minutes, 23 seconds geography with that capability in place I think we are quite confident to achieve the 30% growth for next few 29:30 29 minutes, 30 seconds years by targeting the EUM2D 50,000 cr by FI 2028 and maintaining our ROA 29:39 29 minutes, 39 seconds uh at 3.5% upwards. So uh with those two uh metrics 29:47 29 minutes, 47 seconds in place uh we are quite confident to continue on that path and uh I think 29:54 29 minutes, 54 seconds gold loan uh we have done well where uh the yield is very good. Uh similarly our uh retail construction finance segment 30:02 30 minutes, 2 seconds is also doing quite well giving the housing demand on rise and lot of traction we are seeing rea in place 30:09 30 minutes, 9 seconds security structures are good uh again the housing loan remains the very high very good growth driver so with all 30:17 30 minutes, 17 seconds combination of this I think we are well placed to achieve a 30% growth for next three years 30:25 30 minutes, 25 seconds sure and also just lastly on the uh OPEC front uh so I think our opex is relatively elevated like around 6%age or 30:32 30 minutes, 32 seconds so do we see this modeling like if the ROA is set a to improve from year on so what could be the key drivers other 30:40 30 minutes, 40 seconds interest income opex or margins or credit cost yeah some thoughts on that please thank you that's the last question thank you so if you see our 30:48 30 minutes, 48 seconds cost income ratio uh if you look at last quarter Q1 FY25 30:55 30 minutes, 55 seconds it was about 65% % constantly by our golden branches delivering higher margins and skills overall scale is also 31:05 31 minutes, 5 seconds going up the cost to income ratio have this quarter come below 50%. And as I 31:12 31 minutes, 12 seconds said earlier if uh overall basis we intend to maintain our cost cost to income ratio in the range about 50%. 31:21 31 minutes, 21 seconds Given that we are going to add another 200 to 250 branches this year had not been that done then our cost to income ratio would have been in the range about 47%. 31:32 31 minutes, 32 seconds Sure sir this is very helpful thank you and that's it from my friend and all the best for the future quarters. Thank you. 31:40 31 minutes, 40 seconds Thank you. Our next question is from the line of Sag Sha from Spark Capital. Please go ahead. 31:48 31 minutes, 48 seconds Uh uh first of all uh congratulations sir for excellent set of numbers. I had around uh three questions. Uh my first 31:57 31 minutes, 57 seconds question was rel to do credit cost. Uh this quarter we saw the highest uh almost credit cost in this compared to the last few quarters and you said you 32:07 32 minutes, 7 seconds given the clarification that was regarding the one account construction finance and some stress in MSN. So uh 32:14 32 minutes, 14 seconds looking at the picture and uh looking like the Q2 will follow will follow and will see a kind of a mirror to Q1. So Chapter 7: Credit Cost 32:23 32 minutes, 23 seconds what kind of credit cost should we build in for the entire ESF for FI26 per se? That's my first question. 32:33 32 minutes, 33 seconds Thank you. So I think uh overall basis if you look at our credit cost have been 32:40 32 minutes, 40 seconds in the range about 60 basis and uh we don't see that much elevation uh at the 32:47 32 minutes, 47 seconds most credit cost will not go beyond 70 basis is too early to say because we are we have seen the seasonality that every 32:54 32 minutes, 54 seconds year Q1 is little higher so this year is slightly more higher than the previous average but Q2 to Q4 between that we see 33:04 33 minutes, 4 seconds the remarkable recovery in terms of our old NPS and by that we will be able to 33:10 33 minutes, 10 seconds bring uh overall credit cost down. Uh even though on a conservative side we say this year if the credit cost goes up 33:19 33 minutes, 19 seconds by 10 basis it will not cross more than 70 basis for overall year wages. 33:26 33 minutes, 26 seconds Okay. Okay. Fine sir. Uh my second question was related to our growth uh growth uh in this quarter is way above 33:35 33 minutes, 35 seconds the industry average and you know one of the best quarters for you in in term growth. So even sequentially you the em has grown by almost a moderate percent. 33:47 33 minutes, 47 seconds So I wanted to understand which geographies are you exactly targeting. 33:51 33 minutes, 51 seconds Is there any geographies that you particularly that you're targeting that you are getting such a robust growth and that in such a period. 34:07 34 minutes, 7 seconds M so I think we we are going to add second half the year southern India market uh which will be Tamil Nadu, 34:15 34 minutes, 15 seconds Andra, Karnataka and uh Udisa also we are going to add as 34:23 34 minutes, 23 seconds far as the gold is concerned. So these states we are going Andra, Telangana, Tamil Nadu, Karnataka and Urisa. These 34:32 34 minutes, 32 seconds are the five state we are going to add gradually and uh we'll roll out the branches in the last quarter of this year. 34:40 34 minutes, 40 seconds Okay. So basically uh is it fair to assume that this growth has been from the non-sn region means in the western as well as the northern region. 34:50 34 minutes, 50 seconds Yes. 34:53 34 minutes, 53 seconds Okay. Okay. Thank you sir. Uh my third question was last question was related to the golding medium. The coal ending 35:00 35 minutes for this quarter was at around 19%. So going ahead for the entire year what kind of how much percentage should 35:06 35 minutes, 6 seconds assume for the coending am and uh to be on books coending coending amum we we intend to 35:14 35 minutes, 14 seconds project in the range of anything between 18 to 20% range uh and this range only we intend to maintain this. 35:26 35 minutes, 26 seconds Okay. Okay. Fine sir. Thank you so much and always for your questions. 35:31 35 minutes, 31 seconds Thank you. Next question is from the line of Ashoto from Ashika Stock Broking. Please go ahead. 35:40 35 minutes, 40 seconds Thank you sir for the opportunity and congratulation for both set of numbers. 35:44 35 minutes, 44 seconds So sir sir I like to uh know understand uh fee income front. So currently we are appro 35:52 35 minutes, 52 seconds uh net revenue is coming from the field income side of it. So what is our strategy gain about investment? 36:00 36 minutes Our free income is mainly coming from lending from car loan and from insurance distribution 36:08 36 minutes, 8 seconds and uh our our fee income we intend to maintain 36:16 36 minutes, 16 seconds in the range of about 25 to 27% throughout the year. forward quarter can be up and down by 2% but overall yearly 36:25 36 minutes, 25 seconds basis our our plan is to maintain it in that range and and within these three segment which we have discussed which is a major 36:33 36 minutes, 33 seconds contributor and uh like know what are our strateging 36:40 36 minutes, 40 seconds and also uh income from loan and insurance 36:48 36 minutes, 48 seconds okay second question is on the uh like know uh cost of fund front like how much of our borrowing is knowity is fixed 36:56 36 minutes, 56 seconds versus floating and how we see things moving forward from here on that front. 37:05 37 minutes, 5 seconds So I think next 12 months we are going to keep a major reliance on 37:11 37 minutes, 11 seconds uh raising the commercial paper and NCD to meet some of our requirement and those will be at a low cost. uh our 37:21 37 minutes, 21 seconds lending uh side we are going to remain more on the now given the few regulatory changes we might shift our some of the Chapter 8: Loan Cost 37:30 37 minutes, 30 seconds loan to the fixed basis because we see that interest rate are going to be remained softer going forward yeah 37:39 37 minutes, 39 seconds that would be our policy and and um like know benefit and all those how much uh cost of bank cost of 37:48 37 minutes, 48 seconds fund benefit you are expecting in this whole year mean uh from the current uh rate do you expect it to come by 30 40 basis point for this whole year 37:57 37 minutes, 57 seconds something like that but there are two element to it one is incremental borrowing incremental borrowing already 38:03 38 minutes, 3 seconds started coming down by 20 to 25 basis uh hoping that we'll get some rating 38:10 38 minutes, 10 seconds upgrade that will further go down by 25 second point is that all the MCLR rates 38:17 38 minutes, 17 seconds are getting reset on the due of their one year and 6 month negotiation done during the time of drawing that it's a 38:25 38 minutes, 25 seconds great manner those banks and rate reduction benefit will acrew so by the on every quarter we see some benefit 38:34 38 minutes, 34 seconds keep coming in overall basis I think we should be able to get the benefit of reduction by 30 basis 38:42 38 minutes, 42 seconds depending on bank to bank got that and s on this uh cost to income uh IT expenditure is also one of the uh 38:51 38 minutes, 51 seconds know area which we are focusing on. So can you give something uh like what we are doing what type of expense you continue to incur in that area? 39:00 39 minutes First quarter we spend so 26 cr rupees on various initiative software technology data science and now this 39:08 39 minutes, 8 seconds year we are actively uh enhancing our team on the data science and generative AI side. We 39:16 39 minutes, 16 seconds already deployed few to tools on the AI transformation which are going to drive the productivity and uh impacting uh the 39:24 39 minutes, 24 seconds reducing our cost to income. So I think this uh in the spend on the it is going to be permanent feature. This is not 39:33 39 minutes, 33 seconds going to be something that we'll achieve some milestone. It will come down. Uh and but this is a futuristic investment which will continue to we have currently 39:41 39 minutes, 41 seconds about 200 people team uh in the technology infra and data science. 39:50 39 minutes, 50 seconds Okay. Got that sir. And last question geographical uh concern. So any uh changes that in the opening of the new 39:57 39 minutes, 57 seconds branches or something like that you want to highlight to investor on that front? 40:03 40 minutes, 3 seconds No, I think we are going to as I said we are going to add 200 batches this year combination of the gold MSN home loan 40:13 40 minutes, 13 seconds etc. And uh this space will remain for next year we are going to eight about 7 to 800 branches and that is important 40:21 40 minutes, 21 seconds because we need to plan 30% growth for the next year you need to plan at least at least 6 9 month in advance. 40:29 40 minutes, 29 seconds These new branches will come in new geography or existing geography only. 40:34 40 minutes, 34 seconds So most of the new branches will come in the new geography. some of the existing geography where see the potential to increase but majority expansion will happen certain in the eyes here. 40:45 40 minutes, 45 seconds Okay. Okay. Thank you sir. 40:50 40 minutes, 50 seconds Thank you. Our next question is from the line of Nina Jadha from LKP securities. Please go ahead. 40:58 40 minutes, 58 seconds Yeah. Uh good afternoon. Thank you for the question. So my question is on the uh side. So you have mentioned that the 41:06 41 minutes, 6 seconds borrowing costs are expected to bring down the positive effective basis point for this year. So how are we looking at 41:13 41 minutes, 13 seconds age? Uh like uh are we going to pass on the benefit to our customers earlier and if you could quantify how much? 41:27 41 minutes, 27 seconds So there are where I think we have to say that overall if the interest rate goes down for everybody that that at 41:34 41 minutes, 34 seconds least cost advant benefit will get passed on to the customer because of that intense competition in the retail segment. However, whatever cost benefit 41:43 41 minutes, 43 seconds and risk spread going down because of the uh our negotiation and also the rating potential upgrade, that benefit 41:52 41 minutes, 52 seconds will be able to uh acrew to our P&L. 42:00 42 minutes Okay. Um so any any uh uh specific points it could go down by 42:11 42 minutes, 11 seconds I think our current spread is in the range about 7%. 42:16 42 minutes, 16 seconds We we intend to maintain that spread 10%, it can slightly be better because 42:23 42 minutes, 23 seconds uh goldon composition is slightly improving another by so current composition it will add another 3 to 4%. 42:32 42 minutes, 32 seconds And which is high yield product and for which all the infrastructure cost and operation cost is already in place. So 42:40 42 minutes, 40 seconds that is going to improve our overall spread. Uh as regards the interest rate benefit 42:48 42 minutes, 48 seconds which comes to because of the potential rating upgrade that additional benefit will happen as far as the MCLR reduction 42:55 42 minutes, 55 seconds is concerned because of the competition that benefit as I said will get passed on to the customers. 43:04 43 minutes, 4 seconds Sure. So my second question is around the uh recent announcement that we have made. Uh so we have incorporated two new 43:11 43 minutes, 11 seconds companies uh one is financial service uh and other is wealth management company. 43:17 43 minutes, 17 seconds So if you can tell us on how we are looking to scale these businesses you know on what kind of customers we are looking to target and with the cost for 43:25 43 minutes, 25 seconds setting up these businesses will affect our uh cost income balance for this year or for next year as well. 43:36 43 minutes, 36 seconds There are two companies we have incorporated. One is going to carry out the investment banking activities only 43:44 43 minutes, 44 seconds for the debt capital market and another uh company is a securities company which are going to engage in the sales and 43:52 43 minutes, 52 seconds distribution of the debt uh placement at institutional level online bond platform and exchange 44:00 44 minutes trading. Both of these will not consume much capital and they will be from the year one that will be accurative to the 44:08 44 minutes, 8 seconds profit rather than taking any uh dent on the cost income side. On a full scale operation we expect that this will also 44:18 44 minutes, 18 seconds enhance our fee income for that by the end of the year we will use exact projection for the coming year. This 44:24 44 minutes, 24 seconds year it is in the setup mode. However, whatever the cost they will be able to make that that kind of money. So that 44:31 44 minutes, 31 seconds will be cost neutral and and uh no impact on the cost income side. 44:39 44 minutes, 39 seconds Sure. Are there any probable uh customers we are looking to target? Any set of customers? 44:49 44 minutes, 49 seconds Sorry, can you come again on the question probable set of customers for which segment? for these companies which we have incorporated 44:58 44 minutes, 58 seconds this will be we have a team about 10 people we are going to add more people there they we are that team 45:07 45 minutes, 7 seconds is specialized in understanding the need of the bond market see the price trend 45:15 45 minutes, 15 seconds and we have large treasury book within that we use those funds to buy the bond and do the buying and selling of the 45:23 45 minutes, 23 seconds bond bond plus we hold them for a short term 15 to 30 days. We help the corporates to come out with the issuance 45:31 45 minutes, 31 seconds of the bond is a machine banker. So these are the feebased activity we are going to do. These clients can be uh 45:41 45 minutes, 41 seconds corporates midsize the larger side and it is similar to various bond issuance uh bankers. You would have observed that 45:50 45 minutes, 50 seconds they are associated with such bond issuance. 45:54 45 minutes, 54 seconds Further, this team will also help us to reduce our cost of fund because of their access to the capital market and their 46:02 46 minutes, 2 seconds uh connect and understanding of the bond market. Sure. Thank you. 46:10 46 minutes, 10 seconds Thank you. Our next question is from the line of Daril Javi from Crown. 46:20 46 minutes, 20 seconds hold. 46:23 46 minutes, 23 seconds Sorry the current the participant is not connected right now. The next question is from the line of Akash Ja from AG Gulf. Please go ahead. 46:36 46 minutes, 36 seconds Hello. Hi sir. Uh yeah. 46:42 46 minutes, 42 seconds Yeah. So uh first of all congratulations for great set of numbers. Uh most of my questions I uh have already been answered. So thanks to the previous 46:50 46 minutes, 50 seconds participant. Uh one question related to your business model. Uh sir I mean we are fully secured and have high yielding 46:57 46 minutes, 57 seconds book. Uh but macroeconomic cycles I mean can pressure demand collections and uh risk appetite. So how resilient are our 47:04 47 minutes, 4 seconds areas down cycles especially in MSN and construction and finance uh I mean where borrow cash flows can be volatile. 47:14 47 minutes, 14 seconds So construction finance we have seen that there are two three important thing have happened. One that after VAR coming in there is a designated construction Chapter 9: Construction Finance 47:22 47 minutes, 22 seconds account is a receivable account of the customer where the all the money comes in and we see it it works is a very very 47:31 47 minutes, 31 seconds strong monitoring tool as well as the security structure. So having seen the good demand in the construction finance 47:40 47 minutes, 40 seconds side we don't see any such challenges and even uh out of the 280 account every year one or two account which which 47:48 47 minutes, 48 seconds slips into NPA for uh one or other region our team have shown the capability to find another developer 47:55 47 minutes, 55 seconds take over that account in the surface and recover the entire amount. So we are quite confident that even the risk adjusted return with the low opex and 48:04 48 minutes, 4 seconds the secure nature backed by the strong cash flow of the sale of those apartments we don't see any problem 48:11 48 minutes, 11 seconds there. So we are quite confident and this business we are doing since last almost 12 years we built a very niche very good monitoring tools and we don't 48:21 48 minutes, 21 seconds see any surprises coming in that segment at all. 48:26 48 minutes, 26 seconds Okay. Okay sir. And one last question I mean uh post this fund raise of 2,000 cr 48:34 48 minutes, 34 seconds uh how soon can we expect return ratios to normalize? 48:41 48 minutes, 41 seconds So uh I will say this year uh we we are confident to deliver roe in the range of about 13 and a half to 14%. 48:54 48 minutes, 54 seconds and uh ROA will not be uh less than 3 and a half%. 48:59 48 minutes, 59 seconds Uh next year onwards uh our strong fee income and coupled with our cost income 49:08 49 minutes, 8 seconds ratio further coming down because now leverage of operating skill is so then our RO will improve to about 4% and RO 49:17 49 minutes, 17 seconds should be in the range about 16 to 17%. 49:22 49 minutes, 22 seconds Okay. So ro 13 to 14 this year and 15 to 16% in fi 27 no 49:29 49 minutes, 29 seconds fi 27 roa will be about 4% ro will be in the range about 16 to 17%. 49:36 49 minutes, 36 seconds 16 to 17. Okay. Okay, sir. Thank you. All the best. 49:41 49 minutes, 41 seconds Thank you. Our next question is from the line of sil Jen from Lucky. Please go ahead. 49:48 49 minutes, 48 seconds Hi. Uh thank you for the opportunity sir. Congratulations on good set of numbers. Uh on the 30% AUM growth 49:55 49 minutes, 55 seconds guidance um can you uh talk a little bit about what the mix will look like between the segments? Do you expect momentum in gold to continue and the softness in MSME to continue? 50:08 50 minutes, 8 seconds So we see that gold will continue to grow even we are adding more branches in that segment because we see the strong 50:15 50 minutes, 15 seconds traction and demand and now our distribution team is all in place. So gold should be in the range about 37 to 50:24 50 minutes, 24 seconds 40% kind of thing. MSME will remain in the range about 20 22%. Housing will 50:31 50 minutes, 31 seconds remain in about 20 22%. Construction finance will remain in the range about 17 18%. 50:39 50 minutes, 39 seconds Okay. Gold you mentioned 37 to 40%. Yes. 50:43 50 minutes, 43 seconds Okay. And uh secondly on branch uh addition guidance I think you mentioned 200 branches right? 50:52 50 minutes, 52 seconds Yeah 200 to 250 branches will add this year. 50:55 50 minutes, 55 seconds Okay. And this will be uh any mix on gold non gold. So I think gold will be in the range of about 100 branches and 51:04 51 minutes, 4 seconds rest will be uh between housing and MSME. 51:10 51 minutes, 10 seconds Okay. Okay. And finally on the 16 17% ROE sort of expectation for next year 51:19 51 minutes, 19 seconds what is the credit cost that you've built in? 51:23 51 minutes, 23 seconds So credit cash on a long term we are we are built in about 70 basis. 51:31 51 minutes, 31 seconds 70 days. 51:35 51 minutes, 35 seconds If you look at last few years credit cost except barring the COVID year, the credit cost has remained more or less in this range. 51:46 51 minutes, 46 seconds Mhm. 51:50 51 minutes, 50 seconds Right. And the quarter one opex uh you mentioned will uh stabilize for the year because you're going to add more branches correct. 52:00 52 minutes So I think operating cost keeping in mind our branch expansion uh will be in the range about 50%. 52:11 52 minutes, 11 seconds Cost income ratio. Yeah. Okay. Thank you sir. That is it. 52:17 52 minutes, 17 seconds Thank you. Our next question is from the line of Lalit Kumar an investor. Please go ahead. Chapter 10: Investor Questions 52:28 52 minutes, 28 seconds Hello. Hello. Yes sir. Please go ahead. Yes sir. You audible please go ahead. 52:46 52 minutes, 46 seconds Your voice is not audible. Hello. Hello. Are you audible? 52:54 52 minutes, 54 seconds Yes. Are you audible? 52:58 52 minutes, 58 seconds I'm saying that my question has already answered. Okay sir. 53:07 53 minutes, 7 seconds According to the listener his question has already be answered. We'll move to the next question. The next question is 53:15 53 minutes, 15 seconds from the line of Goravit from systematics. Please go ahead. It's a follow-up question. Please go ahead Gorov sir. 53:22 53 minutes, 22 seconds Hi sir. Thank you for allowing this followup. Uh I just have one question on the microl book. Uh I understand it is a 53:30 53 minutes, 30 seconds very new business but in case there is a default in future uh what is the legal recourse we have given that uh the 53:38 53 minutes, 38 seconds ticket size is uh around 10 lakh and not eligible for suff. 53:45 53 minutes, 45 seconds So the eligible recourse uh ideally the major effort is by negotiation we make 53:53 53 minutes, 53 seconds borrower to agree to come forward and uh sell his property or find uh his uh 54:01 54 minutes, 1 second inner ecosystem to give him the money so that they don't uh we need not to sell the property is much discounted rate and 54:09 54 minutes, 9 seconds another option is section 138 to build the pressure and initiate the arbitration proceedings 54:16 54 minutes, 16 seconds and within that these tools are affected. The combination of bilateral negotiation or using these section 138 54:24 54 minutes, 24 seconds filing uh to build the pressure as we move to the arbitration to build the order and then send the property and 54:31 54 minutes, 31 seconds rely your money and what would be the typical timeline for this when you're successful. 54:39 54 minutes, 39 seconds So uh if we bilateral negotiation you can yield the results case to case basis within less than a year. But cases which 54:48 54 minutes, 48 seconds are not solved by bilateral negotiation if you go for arbitration then it takes a period of effective realization of 54:56 54 minutes, 56 seconds money uh anything between two to two and a half years. 55:01 55 minutes, 1 second Uh got it sir very clear. Uh and last question I have on the competition intensity. So uh gold loan as sector is 55:11 55 minutes, 11 seconds seeing phenomenal growth. Uh everyone is focusing on either growth or uh affordable housing. So what is the kind 55:19 55 minutes, 19 seconds of intensity you are seeing here given that you know we have a steep target of going 30%. 55:26 55 minutes, 26 seconds So just wanted to your take on that. 55:29 55 minutes, 29 seconds So I think our all the segment which are collateralized but if you talk about competition it is it is very intense 55:37 55 minutes, 37 seconds competitive your right to win has to be the how you use your technology automation and ability to turn around the sanction 55:46 55 minutes, 46 seconds faster and do a better customer service in terms of how you handle them. how seamless your journey are, how less the 55:54 55 minutes, 54 seconds paperwork you seek without compromising on the asset quality. So I think uh amid the intensity, it is the turnaround 56:03 56 minutes, 3 seconds time, it is the approach you take it simplified approach to carry out the whole process makes a difference. Uh the 56:12 56 minutes, 12 seconds landing doesn't have a quality other than the service. 56:17 56 minutes, 17 seconds Fair enough. Thank you so much for patiently answering all my questions. 56:23 56 minutes, 23 seconds Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to the management for closing comments. Over to you sir. 56:33 56 minutes, 33 seconds Yes. So I think uh I would like to say that our Q have set a solid tone for FI26. 56:44 56 minutes, 44 seconds uh the addition of 2,000 cr capital raise give us the financial strength to accelerate the growth across 56:52 56 minutes, 52 seconds lending and new verticals backed by a secured book healthy asset quality and solid technology infrastructure we 56:58 56 minutes, 58 seconds remain on track to grow 30% annually and deliver sustainable roe of between 16 to 57:04 57 minutes, 4 seconds 18% ROI um in a medium-term to four to even growing up to 4 and a half% 57:14 57 minutes, 14 seconds There will be constant endeavor to bring our cost of fund down and you will see by the end of the year there's significant reductions in the cost of 57:21 57 minutes, 21 seconds fund. We we will be quite conscious of bringing our operating cost in control Chapter 11: Conclusion 57:28 57 minutes, 28 seconds by using technology and various other intervention of um artificial intelligence. If we have asset quality 57:36 57 minutes, 36 seconds there are enhanced um effort on the collection side and monetizing the NP uh 57:43 57 minutes, 43 seconds disposing of those pes rep assets to bring the overall net 57:49 57 minutes, 49 seconds NPA in the check. So overall basis we are on a quite good growth trajectory 57:56 57 minutes, 56 seconds and u we are all thankful for the support shareholder and other stakeholders are offering to us. Thank you. 58:08 58 minutes, 8 seconds Thank you on behalf of Go India Advisor. 58:11 58 minutes, 11 seconds That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.