C.A. Gaurav Kalani · Philip Capital
directStrategy to counter PSU bank competition and product-wise yields.
We take in prime home loan now the competition is going to the PSU rather than the novelty... we are now taking it as a feature rather than an aberration... our disbursement growth in home loan also had been far higher than the industry disbursement growth... The yield product-wise at a portfolio IRR at HL had been at 8.6%, LAP at 10.3%, LRD at close to 8.1%-8.2%, developer finance close to 11.5%.
Veeral Shah · IIFL Capital
directWill margin guidance be beaten given first half performance?
On a full year basis, Veeral, we are expecting to be in this guidance range only because of the compression we are seeing driven by attrition pressure across the portfolio... followed with another rate cut expectation in December is what we are factoring in... our estimate remains, Veeral, in this range.
Veeral Shah · IIFL Capital
directIs affordable housing slowdown due to asset quality issues?
No, this is not leading from any view on the asset quality or any stress what we are seeing or the demand compression. It was just we started this business 15-18 months as practice or the prudent risk management will do. We want to take it slow.
Veeral Shah · IIFL Capital
directWhy did assignment income fall? Is it one-off?
We took a conscious decision in the current year to not do assignment for treasury strategy because as a treasury has a means of fund... The second part of second reason for assignment for us is always that if we are falling short of a PBC... That we will be open even in the second half of the year.
What are BT-in and BT-out rates in home loans?
At an overall home loan acquisition for the company, our BT in is 15% approximately of our overall HL acquisition... BT out is a factor of attrition... At a home loan level, it is a 21-22% kind of an annualized attrition, what we have seen, 20-21%.
How does current attrition compare to last year?
Last year, it would have been in the range of 15-16%.
Siraj Khan · S&N Capital
directIs fee income growth from cross-selling sustainable?
Broadly, this is insurance income which is driving that number apart from other charges... It grows in line with the growth in business. Apart from the non-prime business, which will have higher penetration, but otherwise, overall, it will remain in line with the growth of business.
Siraj Khan · S&N Capital
directYield differential between prime and non-prime books?
On an aggregate level, the yield in, if I collapse the entire non-prime business, including affordable, yield will be a differential of close to 1.25-1.5%. From the pure prime business.
Satinder Bedi · Eon Investments
directWhy do assignments when gearing is below target?
We do assignment because of two factors, not ROA or ROE driven, but one from a treasury strategy from an ALM match perspective... Having said that, last year, since we went long on the bond side and our ALM match was corrected, we called out that in the current year, we are not falling assignment out from a treasury strategy because our leverage is low.
Satinder Bedi · Eon Investments
directWhen will gearing reach 7.5x target?
I think two years is the time frame where we should be. It will depend upon the growth numbers, of course, but when we give a medium-term growth guidance, I think two years to two and a half years is the time frame where we should look at achieving that.
Bobby Jayaraman · Falcon Investment Advisors
directCompetition in LRD and developer loans?
Lease rental discounting, the level of competition would be higher than the home loan as well because these are all, one, the customers are quite evolved... For developer finance, competition is more from some housing finance companies, NBFCs, and in recent parts, what we have seen largely from even some private credit funds through the AIF structure.
Siraj Khan · S&N Capital
directIs there an internal cap on LRD as % of AUM?
No, Siraj, because we have a capping of a 60% residential business, 40% non-residential. This is our opportunity available and the returns available... There is no cap what we have other than the regulatory cap, which is on a non-home loan business.
