Q1-FY24 · Tribhuvan Adhikari
We have not been very aggressive on OTS or roping in ARC so far. That is one area we are definitely going to look at this year. We'll also be looking at technical write-offs in the coming quarters.
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Q1-FY24 · Sudipto Sil
On the asset side, almost 95%, 97% is on the floating side. The rate, when the rate hikes were passed on, there was not a commensurate increase in the cost of funds, which we were able to hold back. That actually led to the expansion of margins.
Q1-FY24 · Tribhuvan Adhikari
This technological change which we undertook in the month of March, that did create some technical glitches, as a result of which, our collections from our lenders was slightly hit. In most 85% of our EMIs are collected through ENACH and NACH mode. There were some technical glitches in our software, due to which, the presentment of demands could not happen in the months of April and May.
Q1-FY25 · Tribhuwan Adhikari
We have hit the rock bottom, 2.76. I don't think we're going to go any lower than this, and I expect margins in the coming quarters to strengthen, to be better off than what they are at the end of this quarter.
Q1-FY25 · Tribhuwan Adhikari
There was a certain phase in our business operations where we were very aggressive on the non-housing part and, yeah, we took some wrong decisions, decisions, let me say that. But of late, if you look at the last four years, specifically, I think we are pretty comfortable with what we've done in LAP.
Q1-FY25 · Sudipto Sil
About INR 2,000 crore of such assets, which were already upgraded in the month of March, we were holding some provisions, which was to the tune of around INR 121 crore, which was pertaining to the Stage 2 level of provisioning. Once the curation period of it has been removed, it has been reversed.
Q1-FY26 · Tribhuwan Adhikari
If at all it comes to choosing between growth and margins, I would choose margins.
Q1-FY26 · Tribhuwan Adhikari
I think we were slightly delayed in lowering the rate. That was one of the reasons [for muted disbursement growth].
Q1-FY26 · Tribhuwan Adhikari
Many big cases are in various stages of legal recourse and discussions and negotiation. Hopefully, looking forward, I think we could look forward to resolution of another two big cases which would considerably impact our credit costs.
Q2-FY24 · Tribhuwan Adhikari
Project loan has been our achilles heel, if I may say that, almost 40% NPL in the project loan side.
Q2-FY24 · Tribhuwan Adhikari
The NIM is at 3.04% in the current quarter. Yes, 3.41% in Q1 was the peak... The guidance we had given you was in the region of 2.6%, 2.5%, 2.6%. Yes, I think I still maintain that guidance.
Q2-FY24 · Sudipto Sil
This is a one-time one-off. We don't expect such charges in the subsequent quarters.
Q2-FY25 · Tribhuwan Adhikari
We have hit the bottom. We are pretty sure of that. And in the coming quarter three and quarter four, I expect a 5-10 basis point improvement.
Q2-FY25 · Tribhuwan Adhikari
Growing the book is important, but growing the book with better margins is more important. We cannot junk one for the other. I cannot be saying that I'll be looking only at margins and completely forget about growth, and at the same time, I cannot be saying that I look only at growth and not look at margins.
Q2-FY25 · Sudipto Sil
Our loans are not linked to any external benchmark, but we understand if there is a repo cut, there will be improvement in the cost of fund. To that extent, there could be a situation open for passing on a reduction to the customers, but that is not a one-to-one kind of a correlation.
Q2-FY26 · Tribhuwan Adhikari
This year is going to be a difficult year for us because we would be required to balance our growth of book, growth of disbursement with the NIMs and the spreads. We would prefer to protect my margins and NIMs rather than going for growth of business at which is not very profitable to the company.
Q2-FY26 · Tribhuwan Adhikari
My incremental cost of borrowing is 6.73% for Q2 FY2026. We expect another 5-6 basis points compression in Q3, which will translate into better NIM. I do not see any reason why there should be any compression on NIMs any further. 2.62% is the bottom of the curve.
Q2-FY26 · Tribhuwan Adhikari
The balance transfer challenge is now over. As witnessed in October of Q3, the balance transfers are at lower levels compared to June through September of Q2. At 8% roughly we should be able to retain much, much more as compared to what went out.
Q2-FY26 · Tribhuwan Adhikari
This is one question which has been bothering me. Yes, I do agree that growth of 7-8% is not acceptable at all. We need to look at ways and means of coming to somewhere around probably 13%, 14%, and I think that is doable with a little bit of structural changes.
Q3-FY24 · Tribhuwan Adhikari
This has been a year of consolidation for LIC Housing Finance, honestly. So we have consolidated our position with a marginal growth of 5% in the books so far. Q4 is going to be certainly much, much, much better. And in the next year...it will be the year when LIC HFL will start delivering.
Q3-FY24 · Tribhuwan Adhikari
Right now, the market as it is very, very, very competitive, especially on the rate front. Individual home loan rates for prime borrowers is as low as 8.3, 8.35. It's tough for an HFC where my cost of borrowing is 7.70% to compete with a bank with probably an average cost of somewhere about 5-5.5%.
Q3-FY24 · Tribhuwan Adhikari
There are no unsecured exposures or unsecured book. Having said that, the fact is that we are expecting a lot of recoveries, including ARC sales. So probably 50% [PCR] is kind of an optimal number.
Q3-FY25 · Tribhuwan Adhikari
We are very conscious about getting into it slowly and steadily because we believe this is going to be the segment in the coming years which is really going to grow. The Prime or the salaried class segment, there's going to be tremendous competition.
Q3-FY25 · Tribhuwan Adhikari
Do we really need to grow our books, construction finance books with a rate of 8.5%, 8.6%, 8.7%, which some of the banks are willing to offer? Or do we do a trade-off that grows slightly slower but try to get margin-accretive business?
Q3-FY25 · Sudipto Sil
The focus is obviously on the large ticket cases. We have identified the large ticket cases as the ones that we will tackle first. We've already demonstrated with one such ARC sale, and various other types of resolutions are also on track. Some of them are at quite advanced stage, and we hope that there will be a positive surprise.
Q3-FY26 · Tribhuwan Adhikari
We are caught in a sort of a trap. We are mostly into the individual home loan segment, not to the salaried segment. And there, honestly, with so many players, especially the banks being so aggressive in the market right now, that is not where the growth is going to come from.
Q3-FY26 · Tribhuwan Adhikari
The dichotomy is that we are borrowing from banks and competing against them also. So this quarter particularly, with the RBI cutting rates, there's an intense rate war in the market, and that probably led to a little bit lesser disbursement than we anticipated.
Q3-FY26 · Tribhuwan Adhikari
We are very open and very keen to adopt practices which will help us grow, get out of this, let me call it, Hindu Rate of Growth.
Q4-FY24 · Sudipto Sil
This is the fifth quarter in a row, back to back, that we have delivered margins at 3% or around 3%. So this is not a one-off. It has been happening for the last five quarters.
Q4-FY24 · Sudipto Sil
We are now in the territory that 2.7%-2.9% band can be delivered. That is certainly the outlook. Comfortably, that should come through.
Q4-FY24 · Sudipto Sil
As far as the margin is concerned, you asked about the margin, right? Margin, I think we are now in the territory that 2.7%-2.9% band can be delivered, I would say. That is certainly the outlook. Comfortably, that should come through.
Q4-FY24 · Tribhuwan Adhikari
The write-off is on all loans, builder as well as IHL, which are provided for 100%. That means wherever there is a provision of 100%, these loans are eligible for write-off. So it would be a mix of both, not specifically builder loans.
Q4-FY25 · Tribhuwan Das Adhikari
I feel we should be able to handle that. We have ended the year with a NIM of 2.72. I think we should be in that region. So my guidance for the year.
Q4-FY25 · Tribhuwan Das Adhikari
We have to diversify into that segment. At the same time, aim for lower borrowing costs so that my spreads, which are at 2.06%, remain at that level. I would say spreads would, we would keep the spreads in the region of about 2%.
Q4-FY25 · Tribhuwan Das Adhikari
This is going to be a tightrope walk for us. I realize that. As a company, we have to be on our toes, keep eyes here, everything open, noses to the ground, feet on the street.
Q4-FY26 · Tribhuwan Adhikari
Given a choice between protecting margins and going for growth, I would prefer to protect my margins than really go helter-skelter for growth.
Q4-FY26 · Tribhuwan Adhikari
The baby has not yet been born. We are first looking at getting the baby born and then seeing whether it is healthy or not, how it shapes up. Honestly, right now we have no targets in mind for the first year.
Q4-FY26 · Tribhuwan Adhikari
We are competing with banks. My IHL portfolio is 82%. This is exactly the domain, I would say, the territory of banks. Competing with them on the rate front is proving to be very, very difficult on our part.