Muthoot Microfin · tone and specificity signals across the available quarters.
Language signals
Out of the total 230 crores, 132 crores of the management overlay has been used for writing off which was the intended purpose. We knew that certain portfolio from Karnataka will flow into NPA and that would be slightly difficult to redeem.
We have seen that in the vintage curves the loans that we have originated in October-November onwards their data quality is much better, repayment quality as compared to the loans prior to that. So post guard rail, the recovery quality has been much better.
For each customer there is a UCI which will be there for whatever has come through Microfin that will remain throughout the journey of the customer within the system.
I can firmly say that we are back on the path. It's definitely a turnaround from the last financial year. Last year we had taken a management overlay of ₹230 crores. So we have absorbed everything. We don't require... credit cost is coming down and it'll continue to be on that trend and income is improving.
The 30% rejection ratio in individual loans even though having a 700 score—that is the strategy that we have adopted for the industry. We are using AI and credit bureau scorecard for underwriting while technology handles collections. This will rationalize the cost of operation.
For a short term... people would need to protect that database and those loyal and good repaying customer and continue to cater to them. Once there is a little bit of consolidation in the industry then you might see again people going back to acquiring more new customers and forming new JLGs.