India Shelter Finance Corporation Ltd — Q4 FY26

India Shelter Finance Corporation Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=sLW3jeABMO4 Published: 9 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to India Shelter Q4 FI26 earnings conference call hosted by ICICA Securities Limited. 0:12 12 seconds As a reminder, all participant lines will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:21 21 seconds Should you need assistance during the conference call, please signal an optator by pressing star then zero on 0:28 28 seconds your touchstone phone. Please note that this conference is being recorded. I now have the conference sen from ICIC 0:37 37 seconds securities limited. Thank you and over to you sir. Hi uh thank you. Good morning everyone. 0:44 44 seconds Welcome to India shelter 426 hall. On behalf of ICSA securities, I would like to thank India shelter 0:52 52 seconds management team for giving us the opportunity to host this call. Today we have with us the entire top management team of India shelter represented by Mr. 1:00 1 minute Rupender Singh MD and CEO Mr. Ashish Gupta CFO Mr. Rahul Gupalan helmet relation. I will now hand over the call 1:08 1 minute, 8 seconds to GI for his opening remarks and then we'll open the floor for Q&A. Over to you sir. Uh thank you Rishi. 1:17 1 minute, 17 seconds Good morning everyone. On behalf of the company, I extend a warm welcome to all of you. Thank you for joining us on our 10th earning call. 1:28 1 minute, 28 seconds Let's last 10 quarters have been satisfying in terms of our journey porting particularly. [clears throat] 1:36 1 minute, 36 seconds Before we discuss our quarterly and annually performance, let me briefly touch upon the broader macroeconomic environment, the operating landscapecape 1:44 1 minute, 44 seconds and some of the strategic priorities shaping our businesses. 1:48 1 minute, 48 seconds For the past year, the Indian economy has continued to demonstrate resilience despite an increasing uncertaintity 1:56 1 minute, 56 seconds globally and domestic backlog. Global markets have been impacted by geopolitical tensions due to the ongoing 2:03 2 minutes, 3 seconds war, supply chain disruptions and slowing growth across develop economy. 2:09 2 minutes, 9 seconds Ongoing ge geopolitical uncertaintity and volatility in commodity markets have also created pressure on household spending patterns and overall consumer sentiments. 2:20 2 minutes, 20 seconds On the domestic side, rural and semi-uropan markets have faced temporary stress from uneven and abnormal monsoon 2:27 2 minutes, 27 seconds patterns across certain regions impacting agriculture cash flows and informal income segments. 2:35 2 minutes, 35 seconds Recent LPG supply disruptions and related availability issues in some markets create short-term operating challenges for households and small businesses. 2:45 2 minutes, 45 seconds That said, India continues to remain one of the fastest growing major economies. 2:49 2 minutes, 49 seconds supported by strong domestic consumption, infrastructure-led growth, formalization of credit and the long-term structural demand for housing. 2:59 2 minutes, 59 seconds At the broader level, several high frequency indicators continue to reflect the underlying strength of the economy. 3:06 3 minutes, 6 seconds Life GST collection have remained robust, consistently averaging around 1.7 to 1.8 lakh crores per month, 3:14 3 minutes, 14 seconds indicating sustained formalization and consumption momentum. 3:19 3 minutes, 19 seconds Digital payment quantitative scale rapidly with UPA transactions now exceeding 18 to 20 lakh codes monthly 3:26 3 minutes, 26 seconds reflecting deepening financial inclusion and formulation across urban as well as semi- urban markets. 3:33 3 minutes, 33 seconds In addition, system credit growth remains healthy supported by demand across the tail segment including housing finance. These trends provide a 3:42 3 minutes, 42 seconds support for sustained economic activities and reinforce confidence in long-term prospects. In such an environment, the key differentiators 3:49 3 minutes, 49 seconds remain prudent underwriting, strong collections, granual market expansion and consistent focus on return ratios rather than growth alone. 4:00 4 minutes I'm pleased to share that we have delivered another year of strong and consistent performance with significant 4:07 4 minutes, 7 seconds milestone in this financial year like we cross rups 10,4 in this financial year. 4:14 4 minutes, 14 seconds We cross 300 plus branches in existing geographies. 4:19 4 minutes, 19 seconds In this year's consistent delivery of ROE above 17%. Annual profitability cost 500 cr for the company. 4:29 4 minutes, 29 seconds For annual growth remains in a guided range with the EM growing at 29% yearon year to rupees 11,044 crores. In quarter 4:37 4 minutes, 37 seconds 4 financial 26 for the first time our dispersement cost 1,000 crores. In this quarter we added six new branches and 4:45 4 minutes, 45 seconds for the year we have added 41 branches in line with our branch expansion strategy of adding 40 to 45 branches each year. 4:54 4 minutes, 54 seconds On asset quality metrics 30 plus has improved by 100 pips quarter of quarter to 4%. Gross stage three improved by 29 5:03 5 minutes, 3 seconds pips quarter of quarter to 1.2% and net stage three improved further by 23 pips to.9%. 5:11 5 minutes, 11 seconds On profitability metrics, bad quarter quarter came at rupees 132 5:18 5 minutes, 18 seconds 138 crores, resisting a growth of 27% yearonear and 11% quarter on quarter. 5:26 5 minutes, 26 seconds Return on equity further improved to 17.6% in this quarter. Our net worth now stands at rupees 3,98 crores. 5:36 5 minutes, 36 seconds On that note, let me share the guidance for coming times. Branch addition of around 40 to 45 year 40 to 45 for the 5:45 5 minutes, 45 seconds year. Maintaining the stretch of more than 6% in the medium pattern. Credit cost to remain between 40 to 50 pips. 5:52 5 minutes, 52 seconds Loan growth of 25 to 30% for next 3 years with a clear goal of reaching rupees 30,000 crores AUM by 2030. Now I 6:02 6 minutes, 2 seconds would like to hand over the call to Ashishi our CFO to take you through the financial metrics. Over to you. Thanks Rupendra G. Good morning friends. 6:11 6 minutes, 11 seconds Let me take you through key financial numbers. We have ended the FI 26 with EUM of more than 11,000 cr. Yearon-year 6:18 6 minutes, 18 seconds growth in EUM is 29% quarteronquarter growth is 7%. Our portfolio yield is 14.8% down by 10 basis point yearon-year 6:26 6 minutes, 26 seconds basis. Our dispersement yield in Cub was 14.6%. Our bucket cost of fund is 8.2% while our marginal cost of fund in Q4 was 7.9%. 6:37 6 minutes, 37 seconds Thus our margin in at bucket level and incremental level are well above our guided level of 6%. We had draw down 378 6:45 6 minutes, 45 seconds cr from national housing bank in Q4 at 7.5%. And still we have a balance of more than 300 cr for draw down in Q1. 6:53 6 minutes, 53 seconds Our borrowing profile continue to be diversified with more than 30 counterparties. Share of NHB funding is stable at 15%. 7:01 7 minutes, 1 second Average average borrowing tener is more than 8 years. 7:06 7 minutes, 6 seconds Net interest income for quarter is up by 31% yearon year on the back of strong growth in our EU and improvement in spreads. 7:14 7 minutes, 14 seconds Coming to OPEX, our yearon-ear growth in OPEX is 26% which is lower than the growth in total EUM. Same is resulting 7:21 7 minutes, 21 seconds in better cost ratios. up to EM for the quarter and year is down by 20 basis point year on year in line with our guidance. Cost to income for the quarter 7:30 7 minutes, 30 seconds and year is is at 36% down by about 100 basis point year on year. On asset quality side stage 3 is 7:38 7 minutes, 38 seconds at 1.2% down by 30 basis point quarteron quarter. 7:43 7 minutes, 43 seconds ECR for stage three asset is stable at 25%. Our total ECL is 87 cr against the regulatory threshold of 47 cr. 7:51 7 minutes, 51 seconds Considering overall macroeconomic environment we have applied management overlay of additional 2% provision on staged visits same has impacted our 7:59 7 minutes, 59 seconds guide cost by 5 cr in Q4 including this our guide cost for the quarter and year is 30 basis point and 50 basis point 8:06 8 minutes, 6 seconds respectively in line with our guidance for medium-term BT out for the year is down to 4.5% down 8:14 8 minutes, 14 seconds by about 80 basis point yearon year our focused datadriven approach of customer retention is helping us to contain BT Even in a declining interest rate 8:22 8 minutes, 22 seconds scenario on interest rate risk side we have been able to bring down the percentage of fixed rate portfolio funded by varable rate liabilities from 8:30 8 minutes, 30 seconds about 33% in March 24 to about 8% this year. We are committed to further bring this down to about 5% in FI27. 8:39 8 minutes, 39 seconds On liquidity side we are comfortably placed with liquidity of more than 600 cr and sanction of 1400 cr. Our ALM is 8:47 8 minutes, 47 seconds positive across all the buckets. With this I conclude and now we can open the floor for Q&A. 8:55 8 minutes, 55 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 9:02 9 minutes, 2 seconds star and one on their touchstone telephone. 9:06 9 minutes, 6 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use 9:14 9 minutes, 14 seconds handsets while asking a question. Please note in order to ensure that the management will be able to address questions from all the participants in 9:22 9 minutes, 22 seconds the conference kindly limit your questions to two per participant. Should you have a follow-up question, please rejoin the queue. Ladies and gentlemen, 9:31 9 minutes, 31 seconds we will wait for a moment while the question queue assembles. 9:54 9 minutes, 54 seconds The first question is from the line of Adit Kal from MSA Capital Partners. Please go ahead. Hello. Am I audible? 10:03 10 minutes, 3 seconds Yes, you are. 10:05 10 minutes, 5 seconds Thank you so much. So, uh congratulations, great performance uh delivered whatever you all committed last quarter. Uh just wanted to know uh 10:15 10 minutes, 15 seconds how are we looking at things uh on the ground uh because there's so much news on uh shortages 10:22 10 minutes, 22 seconds uh is it impacting credit behavior because of because of these negative news that is going on. 10:32 10 minutes, 32 seconds So I think last year was a year which started with a war with India Pakistan war and ended with a war again that was again the Middle East which we all knows 10:41 10 minutes, 41 seconds about it and typically Middle East war has uh you know led to the shortage which we all aware of. So keeping those 10:49 10 minutes, 49 seconds things we uh generally observing the trends typically in quite a few market where the restaurant commercial gas 10:57 10 minutes, 57 seconds supply are disrupted which everyone knows around that piece. Now we see for the set of customer which we are there instantly we we don't feel that there is 11:06 11 minutes, 6 seconds any uh you know impact in terms of uh their behavior particularly but still we feel it's a watchful situation basically 11:13 11 minutes, 13 seconds because within a month you can't uh find any particular pattern coming around that piece. So every religion the different set of news which are coming 11:21 11 minutes, 21 seconds from globally and sentiments also keep you know coming up and down government push whatever they are trying to do they are trying to do their bit whatever they 11:29 11 minutes, 29 seconds can do in certain circum circumstances but as of now typically as we close the March month we didn't find much of the 11:36 11 minutes, 36 seconds difficulty in terms of customer but yes it's a cautious environment this quarter is going to play uh give a output in 11:43 11 minutes, 43 seconds terms of that piece so we are constantly uh you know in touch with the ground realities and seeing how the things can uh be taken care of in kind of any such 11:52 11 minutes, 52 seconds situation that is there. uh hopefully uh the the way the news are coming up and down you might have today morning news also where some uh you know proposals 12:01 12 minutes, 1 second are coming on the table if things work out it can be wonderful for everyone around but yes we have to keep our fingers crossed and have a tap on the 12:08 12 minutes, 8 seconds marketing instant if you ask me that there is some uh knee reaction or something happened in terms of delacy I 12:15 12 minutes, 15 seconds would say instantly today we don't have answer for that please things looks okay till month of March all right all Right. Uh the answer and 12:25 12 minutes, 25 seconds sir this quarter this quarter there was a bit of softness in the DA uh draw down during the period uh and Q4 is typically heavy. 12:36 12 minutes, 36 seconds So that is our internal strategy basically that we keep working upon depending upon situation for us VA is majorly for our uh basically PPC 12:44 12 minutes, 44 seconds requirement and I think we are holding at 63 64% of BBC that suffices our requirement. So this is the we want to 12:52 12 minutes, 52 seconds be in a range of 15 to 18%. And we are maintaining that 15 16% that is sufficient for us. 12:58 12 minutes, 58 seconds Okay. All right. No makes sense. Uh thank you so much and wishing you and the team all the very best. Great set of performance sir. 13:08 13 minutes, 8 seconds Thank you. The next question is from the line of Konal Sha from City Group. Please go ahead. 13:16 13 minutes, 16 seconds Yeah. Uh thanks for taking the question. 13:19 13 minutes, 19 seconds So firstly on the guidance so earlier uh we indicated 30 35 odd% uh uh maybe over 13:27 13 minutes, 27 seconds uh over the medium term. Now we are suggesting that it will be 25 to 35 uh 25 to 30 odd% next year with again a 13:35 13 minutes, 35 seconds goal to reach like 30 or thousand crores by 2030 which suggest like another like 28 29% over next uh uh 3 years. So uh in 13:44 13 minutes, 44 seconds this so what is the kind of disbbursement growth that we are looking at how we should see it stacking up maybe last two quarters it's been at 11 13:52 13 minutes, 52 seconds odd percent. Uh so so now what's the outlook on that? 13:57 13 minutes, 57 seconds So the reason for what we are finding the environment to be little cautionary we don't want to play around just simply uh in one more that is a disorment. This 14:06 14 minutes, 6 seconds is a business which is more on the balance side. You have to be optimal on the on our spec basically. But yes, we know uh these times are quite 14:13 14 minutes, 13 seconds temporarily that way. Uh our teams, our energy synergies are lying very well. In fact, our login are increasing day by 14:20 14 minutes, 20 seconds day. But our business rule engine, the credit engine that has to function that has entitled us purposely keeping in mind all the aspects which is happening there. So we've been a little cautious 14:29 14 minutes, 29 seconds in that way. That is why we're talking about in a range form of 20 to 25 to 30. We are not saying it's going to be 25. 14:35 14 minutes, 35 seconds we may look forward that it should be touching around whatever way around to 30% on that piece. So that is our thought process particularly but seeing 14:43 14 minutes, 43 seconds the environment we don't want to be something ignoring those aspects that is the way having said so as we progress in 14:50 14 minutes, 50 seconds our journey so as the time came back in a conducive form I think we should pick up quickly our branch model branch 14:57 14 minutes, 57 seconds expansion model that to remain that piece uh our objective of uh getting a productivity that has to be remain continuous in that piece and our focus 15:05 15 minutes, 5 seconds into these two product that continue to remain that piece. So we are positive what in long run that we will be able to maintain this 30,000 cr. So even if we 15:13 15 minutes, 13 seconds maintain this 27 28% of growth for next 3 4 years we'll be able to achieve the 30,000 cr just to give an idea of that side. 15:19 15 minutes, 19 seconds Yeah. Yeah. It's like almost yeah 27 to 28 odd% ker suggest that we can reach 30 or thousand criter 15:28 15 minutes, 28 seconds and that is exactly we uh you know two years back we came with a strategy where where you want to be 2030 that looks very well in align even in today's 15:36 15 minutes, 36 seconds market environment also and we are quite confident about that please. 15:40 15 minutes, 40 seconds Yeah. So in terms of rejection rates if you can highlight uh uh how much could be the uh in terms of rejection how much 15:47 15 minutes, 47 seconds it would have gone uh maybe gone up uh compared to that of maybe login. Uh so overall maybe disbbursements to login ratio how it would have changed that 15:56 15 minutes, 56 seconds would also be helpful and overall any any particular number of disersment growth that we are targeting uh over maybe in the medium-term next uh 12 to 24 months. 16:06 16 minutes, 6 seconds Absolutely. So uh if you talk about login to sanction ratio uh during normal days it used to be around 55 58% that 16:15 16 minutes, 15 seconds should the range around depends upon seasonality qual quarter and the how the business is prospecting in that form 16:22 16 minutes, 22 seconds today that is less than 50%. It is uh it has even bottomed down to the level of 42 43%. But that's all what the B works 16:30 16 minutes, 30 seconds around give the right input instead of having any uh you know bias towards the human uh understanding. So that is the 16:37 16 minutes, 37 seconds which we rely on. Uh so with respect to those those login are going up we we curtail that piece to be little conservative on that side. So that 43 16:46 16 minutes, 46 seconds 45% which has end month of this quarter particularly has slightly inch up to 45 47%. this is the internal piece what we 16:54 16 minutes, 54 seconds got it but in the normal circumstances it should be around 55%. So I think uh uh even if we are able to disperse uh 17:03 17 minutes, 3 seconds say 20% of growth in terms of disbbursement year we'll be able to achieve the numbers what we talking about in terms of 258% growth. 17:13 17 minutes, 13 seconds Got it. Perfect. And uh other question is on uh coal ending. Uh so I believe because of the uh change in the regulations we have hardly seen any coal 17:21 17 minutes, 21 seconds ending but uh uh how how do we pursue it now? When do we uh see it coming back? 17:26 17 minutes, 26 seconds how long would it take because again like co-ending uh uh growth was maybe that's something which we were uh targeting to scale it up. Uh so if you can just provide the outlook on that. 17:37 17 minutes, 37 seconds Yeah. 17:38 17 minutes, 38 seconds We from beginning we never had a very clearcut focus on a poll lending particularly in two two and a half years of our business around co lending uh we 17:47 17 minutes, 47 seconds created a book size of around 450 460 cr of uh overall over overall uh piece what we have it which is around approximately 17:55 17 minutes, 55 seconds 4% of our business and the purpose was basically just to try and test a new uh set of uh uh product what we can do that 18:03 18 minutes, 3 seconds piece and we felt that this is also with changing time we should be very well adapted to those accepted to that piece. 18:10 18 minutes, 10 seconds But uh in typical this scenario what we see that between CLM 1 CM2 models we adopted CLM2 to try that piece. For CLA1 I think we have to wait some more time. 18:20 18 minutes, 20 seconds Uh if you ask me exact timelines it will be difficult at this juncture but we are you know closely discussing with few of 18:27 18 minutes, 27 seconds the institution uh banks around that side uh how it can be taken to the next level. In our plan in our budget we have not including included any of the 18:36 18 minutes, 36 seconds numbers which is around the coing. It is again going to be a testing piece for some time before we uh you know come through to the uh real directional 18:43 18 minutes, 43 seconds system for us particularly. So uh uh basically for us it is not something which we have to worry at all. 18:52 18 minutes, 52 seconds Got it. Perfect. Yeah. Thanks. Thanks a lot. 18:58 18 minutes, 58 seconds Thank you. The next question is from the line of Shrancha Mishra from Philip Capital. Please go ahead. 19:08 19 minutes, 8 seconds Mr. Mishtra, your line is unmuted. Please proceed. 19:11 19 minutes, 11 seconds Uh, hi, good morning. Uh, thank you for the opportunity. So, the first question is, uh, what are the split of the, uh, 19:19 19 minutes, 19 seconds dispersement in FY uh, 26 between LAP and home loans and how do we see it 19:26 19 minutes, 26 seconds growing in 27 each if we can speak about each of the parts. Second is that when I look at the lap proportion it's gone up 19:36 19 minutes, 36 seconds from say 43 to 44% versus home loans although the home loans which is on book is much higher um I think that is more 19:45 19 minutes, 45 seconds to do with the uh PBC um however how are we looking at the demand in and if you 19:53 19 minutes, 53 seconds can split this into two or three parts first is the policy help from CLSS2 20:00 20 minutes uh second is the actual demand, the actual down payment capability of the demographics of the customers that we uh 20:08 20 minutes, 8 seconds cater to and uh the supply from various developers if they still find enough 20:16 20 minutes, 16 seconds margins to build uh uh these kind of affordable houses. Thanks. 20:22 20 minutes, 22 seconds Yeah, thank you Shrai G. uh for our business uh we first and foremost see 20:29 20 minutes, 29 seconds our PBC requirement and as we met fully PBC requirement then we also realized that we have to maintain other optics 20:37 20 minutes, 37 seconds which is including your yield your output your productivity so 56 57% of 1% here there is nothing something which we 20:46 20 minutes, 46 seconds can be we can read between the lines that there's some certain change which has come up around that piece so for us the basic principle criteria remain 20:55 20 minutes, 55 seconds important and that is why we our focus remains particularly first thing that has to work on. So as in earlier question someone asked why you reduce 21:02 21 minutes, 2 seconds the DA that has been the case also and particularly here if it is 57 56% it doesn't matter in much of the way till the time we are maintaining all the 21:10 21 minutes, 10 seconds optics because same market same same way of sourcing it almost same kind of customer will not worry in that terms 21:17 21 minutes, 17 seconds and it doesn't give an idea that there's some out trend in terms of a housing uptake or housing coming down particularly that is not the case at all 21:26 21 minutes, 26 seconds uh our priority is largely in a self- construction and purchase base cases which we focus on. uh we don't have a a 21:33 21 minutes, 33 seconds tie with the builders in terms of that affordable segment builders are something you know unless if they are not uh supplying in market so our demand 21:40 21 minutes, 40 seconds is going to affect for me the markets of tier three tier four are extremely important whether construction self construction self purchase that happens 21:49 21 minutes, 49 seconds that is my major portfolio in fact most of the portfolio and talk about the housing per se so that still is going as 21:56 21 minutes, 56 seconds for the uh normal standards that what we see in the last few years obvious Obviously we have taken up the notch that may be the other aspect but we 22:04 22 minutes, 4 seconds don't find the things around that side reason example if you see the login ratio the login numbers that is to pick 22:12 22 minutes, 12 seconds up basically otherwise they should be little dried up along that side and those those are factors to keep in mind so I don't think that because of those 22:19 22 minutes, 19 seconds factors that builder is not supplying or something that that is not the case in our kind of yes I heard keep looking for 22:26 22 minutes, 26 seconds hearing those things particularly that because of uh builder supplier. There may be some disruption in some of the markets but we are not available to 22:34 22 minutes, 34 seconds those large markets of tier one or tier two with a tupa for the builder particularly we are very well segregated focused into those annual markets where 22:43 22 minutes, 43 seconds self construction and u you know purchase cases are dominating it right did you give the split of the 22:51 22 minutes, 51 seconds dispersement for lap and in 26 and how do we reach each portion growing in 27 23:00 23 minutes in In actual percentage has slightly gone up because in quarter two quarter three we were a little more focused on 23:07 23 minutes, 7 seconds the HL keeping in mind again the PBCPS and going forward we we continue to feel that there should not be much of difference between LP and HL in financial year 27 also that's going to 23:15 23 minutes, 15 seconds remain the same ratio what is the ratio is what I'm trying to ask what that's possibly not in the PPT 23:24 23 minutes, 24 seconds hence I'm asking what is the ratio between LAP and HL dispersement it's 56 57% for HL and remaining is left that is going to be the same rainfall. 23:34 23 minutes, 34 seconds Understood. Understood. Thank you so much. This was very helpful and best of luck for next few quarters. Thank you so much. 23:43 23 minutes, 43 seconds Thank you. The next question is from the line of May from Antic Stock Broking. Please go ahead. 23:51 23 minutes, 51 seconds Yeah. Hi sir. Uh congrats on a good quarter. Uh sir, I have two questions. 23:55 23 minutes, 55 seconds Uh first of all as you already guided for 40 to 45 branches each year and uh your opex to AUM currently lies at 24:04 24 minutes, 4 seconds around 3.9 to 4%. So what is the normal run rate we can expect and what are the efforts you are currently putting in 24:12 24 minutes, 12 seconds because across the it seems like a higher number and secondly uh on the asset quality front uh yeah so the 24:21 24 minutes, 21 seconds outcome during the quarter was significantly better. So in last quarter we had led few slippages to take suffice 24:29 24 minutes, 29 seconds action on few of the accounts. So this quarter seems like good improvement over that and even with the better credit cost this time. So where is this 24:37 24 minutes, 37 seconds improvement come from? Has the uh recoveries come organically from these accounts once they moved into stage 24:44 24 minutes, 44 seconds three or or uh any other you know or maybe some write offs from uh there. So yeah so these are my two questions. 24:52 24 minutes, 52 seconds Thanks. So there are two set of questions you ask me. Uh first is um uh 24:59 24 minutes, 59 seconds office to AUM particularly. So uh we feel there is always a scope of improvement and last four to five years 25:07 25 minutes, 7 seconds we trend improving year on year. So uh the first progative which everyone was asking when you are to going to bring 25:15 25 minutes, 15 seconds back less than 4% that this this year we are tracking that piece. Uh what is our audit? Every year it should come down by 15 to 20 pips and things look very well 25:23 25 minutes, 23 seconds on track. So earlier the 40 45 branches we were opening on a smaller base. Now on the base of 307 branches which we 25:31 25 minutes, 31 seconds exist today the 45 is hardly 13 14% which is to be say 18 20% a few years back basically. So this is one of the 25:38 25 minutes, 38 seconds aspect which is going to support in our journey typically on this side. Yes, automatically productivity also kicks up 25:45 25 minutes, 45 seconds as your AM is going keep going on and I believe that getting to 15 to 20 zips uh reduction in of opex to AM is not a 25:55 25 minutes, 55 seconds three task which we have to uh think twice around that that's bound to happen particularly uh second question which was more on a 26:03 26 minutes, 3 seconds uh credit cost largely and now the G&P has come down uh so I think uh structurally when uh your NP levels goes 26:10 26 minutes, 10 seconds up at certain level which in our case which was in quarter two particularly your surfacy action starts coming into 26:18 26 minutes, 18 seconds picture and that is a sometime 6 to 8 months and as that reach that level then you'll realize that your reduction 26:26 26 minutes, 26 seconds starts happening that is a good part be duty of this product which is a mortgage product and housing finance product particularly the tool which has been 26:33 26 minutes, 33 seconds given provided by the ecosystem the government that helps very well into that side so most of these resolutions that is purely on basis of that piece 26:41 26 minutes, 41 seconds and organic form 26:44 26 minutes, 44 seconds [clears throat] 26:45 26 minutes, 45 seconds Okay sir sir and uh one more question which I think that was partially answered um that the disbburments growth 26:54 26 minutes, 54 seconds rate of uh you know what is disbbursement growth rate that we expect but uh if we even consider you know 27:01 27 minutes, 1 second around 15 to 20% of disbburment growth then your prepayment rate will uh move up sign uh will have to go down 27:08 27 minutes, 8 seconds significantly right so how are you planning to you know grow at uh 5 to 7% on a sequential basis that you guide uh 27:17 27 minutes, 17 seconds or quarterly and I mean u on the disbburusments uh I would just like to know your uh 27:26 27 minutes, 26 seconds strategy on how to how do you plan to you know uh retain your customers and 27:33 27 minutes, 33 seconds you know lower your BT out so that your prepayment rate goes down. 27:38 27 minutes, 38 seconds Thankfully our PT out is reducing year on year that's been a trend as in uh uh early commentary uh our CFO mentioned 27:46 27 minutes, 46 seconds that BT out has been a lowest among last three four years. Uh so our system what we have created on this set of customer that's working well for us and that's 27:55 27 minutes, 55 seconds going to continue work in that direction. uh in particular time when uh situation is always alarming and cautionary which we can see across 28:04 28 minutes, 4 seconds market you always find for everyone BT is also BT out is always norm normally on a lower side basically that is also the case because every uh businesses 28:13 28 minutes, 13 seconds every companies they try to be little focused more on the uh non BT cases this has been a trend what we have observed it basically but having said so uh the 28:22 28 minutes, 22 seconds system that we have created we feel that effective enough to curtail the customer in terms of engage ing and ensuring that customer remains with us as far as 28:30 28 minutes, 30 seconds possible. That is one piece. In terms of dispersement, I feel that this year even we cross 20% of dispersement number which we are quite confident of and we'll do anyways beyond that piece. 28:40 28 minutes, 40 seconds We'll be easily achieving 27 28% of Asian growth and our thought is to continuously uh you know u ensure that 28:48 28 minutes, 48 seconds numbers are very well around that piece and we are quality around that piece. We have delivered in the past and there's not something abrasion on that piece. 28:54 28 minutes, 54 seconds Obviously environment to keep in mind because of that business. 29:01 29 minutes, 1 second Okay sir. Thanks sir. That answers my question and uh all the best for the coming year. 29:09 29 minutes, 9 seconds Thank you. 29:10 29 minutes, 10 seconds Thank you. The next question is from the line of Wun Wun Palacharala from Kek securities. Please go ahead. 29:19 29 minutes, 19 seconds Uh hi sir. Congrats on a good set of members. Uh just had two questions. 29:24 29 minutes, 24 seconds first Ramadan the long-term growth guidance that you have given. 29:28 29 minutes, 28 seconds So are you seeing any uh I'm sorry to interrupt Vun your voice is muffled. We are losing your voice. Can you use your handset mode please? 29:39 29 minutes, 39 seconds This is better. Yeah please proceed. Thank you. 29:42 29 minutes, 42 seconds Yeah I was just asking regarding the long-term growth guidance that is given. 29:45 29 minutes, 45 seconds So that 30,000 cr number it's almost higher than what the largest affordable housing companies today stand at. So are 29:53 29 minutes, 53 seconds we finding any pockets of or geographies where there's lower competition where we are expecting to grow faster or is there 30:02 30 minutes, 2 seconds some like other than the branch expansion 40 50 branches which have already been doing something which drives this growth like shift in ticket 30:11 30 minutes, 11 seconds sizes anything else which can explain this another thing was regards so we've seen I think a slight expansion of 30:18 30 minutes, 18 seconds margins largely it's cost of burnings may not explain the full extent of Is there any difference in yields as well 30:25 30 minutes, 25 seconds that you're seeing that so recipe around in terms of your for market how you have to grow up it cannot 30:33 30 minutes, 33 seconds be one single direction particular uh like in terms of opening branches or meeting the competition uh we exist into 30:41 30 minutes, 41 seconds the same market where the rest of the folks are doing it our largest market continue to remain Rajasthan and they're the most of the competition everyone 30:50 30 minutes, 50 seconds knows relies in term of affordable housing And we are uh very diligently strongly maintaining our numbers around that piece. Uh thankfully our 30:58 30 minutes, 58 seconds distribution is spread across 15 states uh at this scale at this level. Uh very few companies have experimented to go 31:06 31 minutes, 6 seconds into those markets and all with time the maturity is coming that is coming in terms of underwriting as we keep uh you 31:13 31 minutes, 13 seconds know uh creating our own vintage in these kind of states. So today uh if there is some kind of disruption for 31:20 31 minutes, 20 seconds example if Karnataka is disruption in south then definitely AP Telangana and Tamil Nadu is going to support same way if there is some error which happened in 31:29 31 minutes, 29 seconds some markets like MP then Rajasthan UP and Gujarat is there to support so that distribution is very well spread and 31:36 31 minutes, 36 seconds that's firing well for us basically so that's not the case additionally the factors which are going to support one 31:43 31 minutes, 43 seconds is definitely branch opening of 40 45 branches Secondly, the portfolio drive on which we want to focus on per case 31:50 31 minutes, 50 seconds per employee number of cases that has to keep improving on that the focus around that piece in the same set of geographies they do exist. Thirdly, we 31:58 31 minutes, 58 seconds started with our digital journey uh say year back that is also showing a good positive u uh you know returns in terms of that piece. So year or year and a 32:07 32 minutes, 7 seconds half back we we were dispersing those numbers in a single digit. Today we are discussing some 20 20 to 30 codes out of digital alone basically uh in India 32:16 32 minutes, 16 seconds shelter we always believe into this uh you know technology and digital piece I think this is something which is again going to fire positively in that sense so all these three three four items 32:25 32 minutes, 25 seconds which you among together that is a right recipe to come out with the output in terms of dispersement thankfully the team strength of 4500 with a strong 32:33 32 minutes, 33 seconds collection the quarter on that piece network in a market which is distributed in terms of 307 branches which is going to reach by 2030 up to 500 branches 32:42 32 minutes, 42 seconds eventually and the kind of technology process improvement has been done and we wanted to do in that piece. These all things are going to help in improving 32:50 32 minutes, 50 seconds the dispersement and this journey going forward. So the strategy very well laid out with all the aspects very clearly broken between the three four items which is going to help us out. 33:05 33 minutes, 5 seconds Von does that answer your question? 33:07 33 minutes, 7 seconds Yeah, but on the margins like if look at the reported margin number it's 33:14 33 minutes, 14 seconds uh kind of expanded from 9.1 to 9.5 and cost of bondings is up is down maybe about 10 to 15 basis points. So the other delta where is it coming from? 33:24 33 minutes, 24 seconds So so um uh our first priority on the field to talk is always to maintain the spread which is beyond 6%. Thankfully 33:33 33 minutes, 33 seconds this isn't a great year in terms of your cost of funding uh because of market uh slashing down in terms of cost and we 33:40 33 minutes, 40 seconds get a benefit on that piece but given any circumstances we are uh you know committed to maintain the 6% of uh uh 33:48 33 minutes, 48 seconds spread this further populated to uh you know decent margins that we look into that and uh continue to maintain the 33:55 33 minutes, 55 seconds journey for next few years. Obviously this uh cut into rates that help us out to maintain those margins which you're talking about in the last previous year 34:03 34 minutes, 3 seconds and Von you know just to add here you know in Q4 generally lot of NPA resolution also happen so you know while uh while doing the resolution of these 34:11 34 minutes, 11 seconds NPA we end up recovering a portion of uh interest which which we you know which we had not acred earlier. So this is 34:18 34 minutes, 18 seconds this is also you know contributing to increase in the NIM growth from 9% to 9.5%. Hope this explain. Yeah sure. 34:26 34 minutes, 26 seconds Thanks. Thank you. The next question is from the 34:34 34 minutes, 34 seconds line of Magna Lutra from Inquired Equities. Please go ahead. 34:39 34 minutes, 39 seconds Yeah. Hi, thank you sir for the opportunity on the good side of numbers. 34:43 34 minutes, 43 seconds So while you've indicated that we expect F to remain stable and growth to remain strong. There are a lot of conversations around the sharp rise in competition uh 34:51 34 minutes, 51 seconds and specifically uh is there any state or any pockets that we are seeing a sharp rise in competition and can you give some color which which can impact 35:00 35 minutes our e or growth and which kind of lenders are these private banks banks finance companies can be achieved. 35:09 35 minutes, 9 seconds Yeah, thank you. Uh every market is being uh you know plundered by all kind of competition not now but from 35:16 35 minutes, 16 seconds beginning basically. So but the serious players remain a serious uh if you see irrespective competition going and 35:23 35 minutes, 23 seconds coming and going back basically the number of set of players who are consistent and continuous that piece that remain there from last five seven 35:30 35 minutes, 30 seconds eight years at least basically so uh any new player which is entering they have their own hurdles around that piece to 35:37 35 minutes, 37 seconds venture that market there may be a small temporary j which someone may get because of the other but otherwise I don't see uh this kind of business which 35:46 35 minutes, 46 seconds is considered to be very bored but very complex in that terms has to get impeached because of some competition. 35:52 35 minutes, 52 seconds We are operating in all the competitive markets which is considered to be competitive not now but from last many years particularly and performance 35:59 35 minutes, 59 seconds coming around that is not a point of concern very it is only your ability to execute in those market that matters and I and I think not only us but any 36:07 36 minutes, 7 seconds serious player they know their way how to play around in those markets in terms of competition also. So it is not a point of concern at all. Every market, 36:16 36 minutes, 16 seconds every region have a certain set of uh you know dominating player here and there. But uh that is always which is available and that's a business expertise you built with the time. So 36:24 36 minutes, 24 seconds it's not a point of worry that is that is only I can assure you got thank you so much. That's it. 36:35 36 minutes, 35 seconds Thank you. The next question is from the line of mitten latia from Fractal Capital Investment. Please go ahead. 36:44 36 minutes, 44 seconds Uh thank you sir. Uh so we've grown almost 3.5x in the last 4 years and yet 36:51 36 minutes, 51 seconds our concentration of Rajasthan continues to be 30 plus%. Is that a very conscious 36:58 36 minutes, 58 seconds thing or you know how should one really think about it going forward? 37:05 37 minutes, 5 seconds So going forward Rajasthan conc concentration is going to ease down by virtue of other geographies their delivery mechanis are going to go up 37:14 37 minutes, 14 seconds basically uh though Rajasthan country remained the flagship zone for us and their dispersion wanted to grow but thankfully the trend what we are seeing 37:22 37 minutes, 22 seconds the other geographies that is giving little more in terms of a percentage growth higher growth so today Rajasthan which contributes say 30% will be say 5 37:31 37 minutes, 31 seconds years down the line maybe 25 26%. that what you look forward and other states like for certain states in south or up 37:38 37 minutes, 38 seconds you'll find a better trends compared to in terms of uh percentage of AM going up particular in that cases basically this is I look if you talk about the 37:46 37 minutes, 46 seconds long-term uh uh aspects in terms of AM ratios between the various states particularly 37:54 37 minutes, 54 seconds sure and very commendable performance on the reduction in the BTO do you want to call out any specific measures that you might have taken to achieve that. 38:04 38 minutes, 4 seconds I think the strategy which uh team is able to uh put all together in engaging the customer. Today we have a uh strong 38:12 38 minutes, 12 seconds digital presence connect with the customer and continue to engage uh using their uh understanding whether they are looking out for any fresh loan or PT 38:21 38 minutes, 21 seconds loan or some rate deduction that engagement is helping us out. the uh uh application the app customer app which 38:28 38 minutes, 28 seconds have now almost all the customers which which is on our board are available on this application the engagement the notifications as well as centralized 38:36 38 minutes, 36 seconds team which is very well working with engaging this customer that is helping us out into this piece 38:43 38 minutes, 43 seconds sure thank you that was your thank you next question is from the line 38:51 38 minutes, 51 seconds of prital from inverse tech please go ahead it. Yeah. Uh, thanks for the opportunity. 38:59 38 minutes, 59 seconds So, yeah. Sorry. Thank you. Please proceed. 39:04 39 minutes, 4 seconds Yeah. So, uh, thanks for the opportunity. So, I just had one question on the PBC level that we're operating on because what I see is the home loan 39:12 39 minutes, 12 seconds share has already reached around dropped to around 57%. So, I just want to know what's the PBC level there. Right. 39:19 39 minutes, 19 seconds On the PBC front, you know, we are comfortably placed at about 64%. though we have a you know u at a EUM level uh 39:26 39 minutes, 26 seconds our home loan ratio is close to 56% but we have a strategy to you know uh doing a lot of direct assignment transaction we were you know we were having about 5% 39:35 39 minutes, 35 seconds of the book in form of cool lending which is primarily pertained to lap only so all these you know measures to take lap off book helping us to maintain a uh 39:43 39 minutes, 43 seconds you know fairly uh fairly high higher PBC which is uh so like you know regulatory threshold is 60% and we are currently at 64% 39:54 39 minutes, 54 seconds Okay. Thank you, sir. 40:01 40 minutes, 1 second Thank you. The next question is from the line of Adit Tal from MSA Capital Partners. Please go ahead. 40:08 40 minutes, 8 seconds Hello. Uh thank you so much for the followup. So, two questions. Uh one is a bookkeeping one and one is a more strategic question. So you highlighted 40:18 40 minutes, 18 seconds that you want to grow in the vicinity of 25 to 30%, let's let's work with 27 28 40:24 40 minutes, 24 seconds 28 odd%. And today we are sitting at roughly uh 55 odd uh% of capital 40:33 40 minutes, 33 seconds adequacy and we are doing an doing a return equity of uh 40:39 40 minutes, 39 seconds 18 17 and a half%. And because we are in the secured asset class the the total 40:47 40 minutes, 47 seconds assets uh risk assets is lower. So how do you think in terms of consuming this capital 40:55 40 minutes, 55 seconds over the next say till FI30 your 30,000 emb 41:02 41 minutes, 2 seconds leverage is three times I think uh we would like to go to the level of free which four four and a half uh times 41:10 41 minutes, 10 seconds basically before thinking upon what to take a next course on that piece. So journey remains in that direction 41:18 41 minutes, 18 seconds particularly and uh our objective is today this times may be looking little conservative in terms of the cautionary 41:26 41 minutes, 26 seconds environment but as the things comes in a better form we have to take it up very fast in this set that is always our 41:33 41 minutes, 33 seconds thought so I think uh as we reach around four and a half times in terms of leverage we'll be then thinking about 41:41 41 minutes, 41 seconds how to take it to the next level whether to raise the funds QIP or something that will work around 41:48 41 minutes, 48 seconds understood and s uh this this quarter uh Q4 or I would say even for that the entirety of FI26 41:57 41 minutes, 57 seconds we've seen a good growth in a in the 25 plus lakh uh bucket and I would also say uh 15 to 42:07 42 minutes, 7 seconds 25 lakh bucket in in terms of ticket size but uh yet our average ticket size 42:13 42 minutes, 13 seconds that we show on show in our presentation that has not budged above 10 lakhs over the last say four five quarters. 42:24 42 minutes, 24 seconds So we were not doing at all earlier these above 25 lakhs and all we try to test these markets and that's working decently well because you see the growth 42:33 42 minutes, 33 seconds on a very very low base almost negligible base negligible base and that's why look growth on that piece but 42:40 42 minutes, 40 seconds if you see on these particular uh ticket size we have done the handful of cases particularly which we initial was fully 42:48 42 minutes, 48 seconds stocked around that side so uh our large aum our large disbursement still continue to remain a ticket size that we 42:55 42 minutes, 55 seconds are into basically. So there may be a uh slight improvement of some uh 10 15 bits in terms of uh average output in terms of ATS what you're talking about. 43:06 43 minutes, 6 seconds So that's what I'm saying that the the ATS should start looking closer to 10.2 10.5 types. Uh 43:13 43 minutes, 13 seconds so probably probably this is something which will slightly go up in a coming days basically maybe coming quarters not instantly now basically. So if they'll 43:22 43 minutes, 22 seconds be uh maybe consistent in these term of volume we talking about 25 which we have an intent to do basically because that's giving a decent confidence and decent 43:30 43 minutes, 30 seconds output in that term. So if that happens maintaining all the optics this is slightly inch up. So what you're showing seeing 10 today that maybe 10 and a half 43:40 43 minutes, 40 seconds in two three four quarters beyond understood underserved. No this this was about it. This is about it. Thank you so much. 43:51 43 minutes, 51 seconds Thank you. The next question is from the line of Satyam Kumar from JM Group. Please go ahead. 43:59 43 minutes, 59 seconds Uh hi, good morning everyone. Uh I'm sorry Mr. Kumar, we are not able to hear you. 44:12 44 minutes, 12 seconds Hello Satam Kumar. Yes, I'm audible. 44:16 44 minutes, 16 seconds Yes, you are audible now. Please proceed. Thank you. Couple of questions. 44:20 44 minutes, 20 seconds First is a bookkeeping question. Just wanted to understand like what percentage of your lab book is like backed by sorp kind of collateral. 44:30 44 minutes, 30 seconds Number one and number two just wanted to understand uh like as you added uh anum 44:37 44 minutes, 37 seconds growth of around 25 to 30% going forward and this you said it will be anywhere around 20%. So just wanted to understand 44:45 44 minutes, 45 seconds how this gap really bridged like what will be the BT out ratio or or close-ups and how these numbers have historically 44:52 44 minutes, 52 seconds been. So if you can throw some color on it. 44:58 44 minutes, 58 seconds So lab we have uh almost 98% of uh sorp self occupied residential property where 45:05 45 minutes, 5 seconds the where we do the lab and this is improving uh as we progress in time basically that is all about the lab book 45:13 45 minutes, 13 seconds uh 25 to 30% is the growth on am that we expect and in current scenario we expect 20% and beyond in terms of the 45:20 45 minutes, 20 seconds dispersement but that doesn't mean this 20% is going to remain 20% forever that that is a lot of scope of improvement ment even in future that we are quite uh 45:30 45 minutes, 30 seconds optimist about seeing our uh past trend as well as the seeing kind of uh you know scenaries that we are building in 45:36 45 minutes, 36 seconds terms of uh uh digital productivity and branch opening basically so this is a cost per environment that we are talking little conservative on that piece but as 45:45 45 minutes, 45 seconds the things progress then we have to open it up great because 30,000 cr is a target even if you run at 26 27% of em 45:54 45 minutes, 54 seconds growth we'll be able to achieve that piece but our thought this this this personal growth which is running around 20 around 20% of growth that actually look forward should 46:03 46 minutes, 3 seconds automatically pick up as the time progress in terms of 25 and beyond basically no I completely understand going around 46:10 46 minutes, 10 seconds 26 27 46:21 46 minutes, 21 seconds hello is cracking can you please Am I audible? 46:29 46 minutes, 29 seconds Yes, but your voice is such okay. 46:36 46 minutes, 36 seconds I'm sorry, we are not able to hear you. Okay. Uh still I'm not able. 46:44 46 minutes, 44 seconds Yeah, right now we can hear you. Please proceed. 46:46 46 minutes, 46 seconds Sure. Sure. So just uh a followup uh is like just for FI27 if I'm look at just wanted to understand the gap between 46:55 46 minutes, 55 seconds dispersement and growth just for FYI 27 if we look say for example our book is growing around 25 27 28% whatever it is and dispersement is growing at 20 odd%. 47:07 47 minutes, 7 seconds So how this gap between dispersement and growth will be brided like new is growing at 20%. How book will grow at 27 47:15 47 minutes, 15 seconds just wanted to understand from you how how this will be brided basically. 47:28 47 minutes, 28 seconds So first and foremost the BP of percentage which used to be higher earlier that has coming down thanks to 47:34 47 minutes, 34 seconds the EMF trader number one that works around that piece and over the mechanism which has worked around that piece and particularly when you are talking about 47:43 47 minutes, 43 seconds 20% of dispersement go anything above 20% on that piece is going to fetch the positivity in that particularly but this 47:51 47 minutes, 51 seconds is something what we easily finding out on that piece so that number works on Excel we can give it to Just got it. Got it. Thanks. 48:04 48 minutes, 4 seconds Thank you. The next question is from the line of Sonel Randi from Asian Market Securities. Please go ahead. 48:12 48 minutes, 12 seconds Uh hey, thanks for the opportunity. Uh just two questions. I think the department has to ask maybe you know if you could just help with those numbers 48:20 48 minutes, 20 seconds like uh you know in your detail what is that like uh section you know what is the mode and what is the normal 48:28 48 minutes, 28 seconds I'm sorry can you please use your handset mode 48:34 48 minutes, 34 seconds uh is my voice better now hello uh let me try otherwise I'll take it 48:43 48 minutes, 43 seconds offline um So just wanted to check uh you know your retaining rates uh you know what is it that you're including as PT out uh normal turnout and 48:52 48 minutes, 52 seconds pre-tainment and second is uh you know if you could just help us s with uh you know what of your book is on 68 currently what is semi variable and 49:00 49 minutes variable use and is it that because of the fixed book you know we are seeing lower BT outs or in general the environment you know has become a more conducive. 49:12 49 minutes, 12 seconds So if you talk about uh today we have around 13 14% of book which is on floating rest into fixed or semi-fixed 49:20 49 minutes, 20 seconds kind of product where the fixation is for 3 years technically and that book is again now around 10 12%. which means 49:27 49 minutes, 27 seconds approximately 70% 65 to 70% poke that volume remain on the fix particularly and that is again one of the good factor 49:35 49 minutes, 35 seconds which support us in terms of BT out thankfully conservative environment also supports you uh typically when the environment is very cautionary so BT 49:44 49 minutes, 44 seconds trends normally goes down basically so these are the two factor definitely which is helping us out and third important aspect engagement of customer 49:52 49 minutes, 52 seconds which we put a unit around a year back that is also giving a good output in terms of cutting in 50:00 50 minutes Got it. As for the detail part or else I can do it offline. 50:14 50 minutes, 14 seconds Uh miss can you repeat your question please? 50:18 50 minutes, 18 seconds after uh the uh unit payment case what would be proportion of BT out normal out and PT means that you're building in 50:26 50 minutes, 26 seconds your exp uh so out of the total prepayment 2/3 you know goes in the form of BT out and 50:34 50 minutes, 34 seconds rest is own fund prepayment and uh you know answering to your previous question that you know whether it is coming from variable rate book or fixed rate book uh 50:43 50 minutes, 43 seconds you know variable rate book is hardly about 2 and a half three year old so it is you know too early to do that kind of analysis. So once the book will start 50:51 50 minutes, 51 seconds seasoning and it will be you know significant proportion of the total EU probably we'll be able to do that analysis at that point of time. 50:59 50 minutes, 59 seconds Thank you. The next question is from the line of Dan Dea from Invest Group. Please go ahead. 51:07 51 minutes, 7 seconds Yeah, thank you for the opportunity. Uh just wanted to uh recheck uh what the management said. So to hit this uh 51:15 51 minutes, 15 seconds 30,000 uh cr target uh we will be uh uh sort of uh uh 51:24 51 minutes, 24 seconds targeting a disbbursement of disbursement growth of about 20%. Is that what I heard? 51:30 51 minutes, 30 seconds That is for the first years particularly this can't be the sustainable for long term. We have to definitely pull it up. 51:36 51 minutes, 36 seconds Basically when someone asked me how you want to deal with this cautionary environment and this is something that we want to maintain as of now. But as time progress that has to go up. 51:45 51 minutes, 45 seconds So are we saying that Q4 FI26 was sort of the bottom in terms of the dispersement growth? I think this 51:53 51 minutes, 53 seconds quarter it was around 11%. and uh uh yeah I am talking about this year we have to show the disbburment beyond 20% which we 52:02 52 minutes, 2 seconds are positive about basically that is what I'm saying it right if you start we please don't allow me to compare between 52:09 52 minutes, 9 seconds Q4 and how the Q1 has to work on basically that will give you some kind of forward looking but yes this is something what you we are looking in 52:16 52 minutes, 16 seconds terms of long-term got it got it thank you and are you seeing the environment change enough because I believe that uh some part of 52:24 52 minutes, 24 seconds the disbbursement growth was curtailed intentionally in you know because of uh the macro environment. So have you seen 52:31 52 minutes, 31 seconds the environment change enough? Yeah, absolutely and that's what we are watching it very clearly and we have prepared very well as the environment 52:39 52 minutes, 39 seconds changes we should be ready to take it off to the next level. 52:43 52 minutes, 43 seconds Okay, appreciate that. Thank you and all the best. 52:48 52 minutes, 48 seconds Thank you. The next question is from the line of Konal Sha from City Group. Please go ahead. 52:55 52 minutes, 55 seconds Yeah. Uh thanks for the followup. Uh just wanted to uh reconfirm. You indicated that u the increase in stage two which is there and uh the entire 53:03 53 minutes, 3 seconds provisioning that is more of a management overlay buffer of uh five odd crores maybe the provisioning in stage 53:10 53 minutes, 10 seconds two is moving up from 10 to 15 odd crores. That's primarily the management overlay. 53:17 53 minutes, 17 seconds Yes. you know considering the overall macro macro environment and we have you know also gone through the RBA circular which says that you know there is there 53:25 53 minutes, 25 seconds should be minimum 1.5% for home loan and 2.5% for lab loan uh should be the minimum base threshold for EC and 53:33 53 minutes, 33 seconds considering the fact that we are you know primarily cutting to self-employed people tier 2 tier three geographies it is good to keep a good buffer on stage 53:41 53 minutes, 41 seconds two okay so this overlay was only in stage two yes Yes. 53:48 53 minutes, 48 seconds Okay. And uh do we plan to create further overlay or we are uh maybe given that now it's almost like more than 5% 53:55 53 minutes, 55 seconds uh coverage on this uh so would there be some increase or catch up in the overlay getting into FI27 and your guidance of 54:04 54 minutes, 4 seconds 40 to 50 odd basis points does it take into account uh the overlay buffer as well? 54:11 54 minutes, 11 seconds So frankly you know we have reached to a stage wherein now we have we were waiting for the RBA guidelines on ECLS. 54:17 54 minutes, 17 seconds So we have got those guidelines though they are not applicable to us and we have created a briefly 2x buffer of what the regulatory threshold and we have 54:25 54 minutes, 25 seconds always you know kept that kind of threshold historically. So now we have built those uh built those buffer and in 54:32 54 minutes, 32 seconds case uh in case future you know like allow us a low credit uh low credit cost regime is there probably we may further 54:40 54 minutes, 40 seconds uh take up our buffers but frankly uh at this point of time we don't have any plans to you know further stack up the buffers. 54:48 54 minutes, 48 seconds Sure. Sure. And just uh one more clarification both on the asset and on the liability side in terms of the mix of fixed and floating. So last quarter I 54:58 54 minutes, 58 seconds think you indicated 84% of the borrowing was floating. This time I heard maybe you mentioned like fixed rate has come down to 8 odd% and you plan to bring it 55:06 55 minutes, 6 seconds down to 5 odd% was it that related to uh the borrowing and last time you indicated like almost 85% of the AUM was 55:14 55 minutes, 14 seconds fixed. I think this time you commented almost like 65 to 70 odd% is fixed. So if you can just clarify in terms of both on the asset and on the liability side how much is the fixed versus floating. 55:24 55 minutes, 24 seconds Yeah sure. uh let me you know reiterate uh the how the overall u em stacked up in terms of interest rate 55:32 55 minutes, 32 seconds reset. So about 15% of the amum is there which is variable rate then about 37% of the em is there which is wherein the 55:41 55 minutes, 41 seconds interest rate is like semivariable structure fixed for initial 3 years and uh variable subsequently then about 48% of the book is there 55:50 55 minutes, 50 seconds which is a uh fixed rate book altogether. So if you look at how we are funding this fixed rate book of 48%. Uh 55:56 55 minutes, 56 seconds so out of this 48% about uh 25% is getting funded through um funded through 56:03 56 minutes, 3 seconds our equity and remaining about uh uh 17% is getting funded through our fixed rate borrowings that we have on our book. 56:11 56 minutes, 11 seconds Then remaining uh is percentage is at about 7 8% which is um you know fixed rate book which is funded by variable rate liabilities. 56:22 56 minutes, 22 seconds Okay, perfect. Yeah, this is helpful. Yeah, thank you. 56:27 56 minutes, 27 seconds Thank you. That was the last question for today. I would now like to hand the conference over to the management for closing remarks. 56:38 56 minutes, 38 seconds Thank you everyone for taking your valuable time for attending a learning call. An audio recording and the transcript of this call will be uploaded on our website in due course. 56:48 56 minutes, 48 seconds Looking forward to hosting you all in the next quarter. 56:51 56 minutes, 51 seconds If you have any further questions or require additional information, please feel free to reach us out. Thank you so much and have a great day. Thank you. 57:01 57 minutes, 1 second Thank you very much. On behalf of ICICA Securities Limited, that concludes this conference. Thank you als for joining us and you may now disconnect your light.