LIC Housing Finance Ltd — Q4 FY26

LIC Housing Finance Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=wZ5y8mcvnjM Published: 2 hours ago

0:01 1 second Ladies and gentlemen, good day and welcome to the LIC housing finance Q4 FI26 investors conference call hosted by 0:10 10 seconds Access Capital Limited. As a reminder, all participant lines will be in the listen only mode and there will be an 0:17 17 seconds opportunity for you to ask questions after the presentation concludes. 0:22 22 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on 0:29 29 seconds it at stone 4. Please note that this conference has been recorded. I now hand the conference over to Mr. Prainagarwal 0:37 37 seconds from Access Capital Limited. Thank you and over to you sir. 0:41 41 seconds Uh thank you Shiknali. Uh good morning everyone and welcome to this earnings call. Uh today with us we have Mr. 0:48 48 seconds Nadiari MD and CEO and Mr. Lokesh Mundra CFO to discuss the results. I would request Mr. Vikari to share his initial remarks on the results. Uh post which 0:56 56 seconds we'll open the floor for Q&A. Over to you, sir. 0:59 59 seconds Yeah. Thank you, Pravin. Uh good morning and welcome to all of you to the post earnings conference call of LIIC Housing Finance Limited. As you are aware, LIC 1:08 1 minute, 8 seconds HFL declared it Q4 financial year 26 results yesterday. Before I start the highlights of the Q4 results, I would like to outline the few developments in 1:17 1 minute, 17 seconds the economy of the last quarter. Over the past few months, the global global economy has been navigating navigating heightened geopolitical geopolitical 1:25 1 minute, 25 seconds uncertaintity arising from the evolving situation in the Middle East. The conflict has resulted in volatility across global financial and laboratory 1:34 1 minute, 34 seconds markets, particularly in crude oil prices. Concerns around supply distributions and logistic bottlenecks have led to intermittent spikes in crude 1:43 1 minute, 43 seconds prices which have implications for inflationary expectations, currency movements and global interest rate 1:49 1 minute, 49 seconds outlooks. The increase in oil prices has exerted pressure on the Indian GP and could potentially impact imported inflation if the situation persists for 1:58 1 minute, 58 seconds an extended period. However, India's macroeconomic fundamentals continue to remain res relatively resilient 2:05 2 minutes, 5 seconds supported by healthy G healthy GDP growth, stable financial sector conditions, adequate financial ex uh foreign foreign exchange reserves and 2:14 2 minutes, 14 seconds continued government focus on infrastructure and capital expenditure. 2:18 2 minutes, 18 seconds Against this backdrop, the RBI maintained a weight in watch stance in the first NPC for FY27 and flagged further escalation of the 2:27 2 minutes, 27 seconds conflict, elevated energy prices, weather related events, including the emergence of El Nino conditions, 2:34 2 minutes, 34 seconds slowdown in exports and heightened volatility in the global financial markets as a downside risk to domestic growth. While liquidity conditions have 2:43 2 minutes, 43 seconds remained broadly adequate, the RBI continues to closely monitor inflationary trends, global commodity prices and external sector developments 2:52 2 minutes, 52 seconds while balancing the growth inflation dynamics. Coming to the housing finance industry, despite external uncertaintities, domestic mortgage 3:00 3 minutes demand has remained reasonably resilient. structural drivers such as urbanization, favorable demographics, 3:08 3 minutes, 8 seconds rising income levels, increased aspiration for home ownership and continued policy support for housing continues to provide long-term growth 3:16 3 minutes, 16 seconds visibility to the sector. With this, we present the financial highlights of the company for the quarter as follows. 3:22 3 minutes, 22 seconds Total revenue from operations 7194 crores as again 7281 crores for the corresponding quarter of the previous 3:29 3 minutes, 29 seconds year. Outstanding loan portfolio stood at 3 lakh 20,77 crores as on 31st March 2026 as against 3:39 3 minutes, 39 seconds 3 lak 7,732 crores as on 31st March 2025 reflecting a growth of 4%. The 3:47 3 minutes, 47 seconds individual home loan portfolio stood at 2 lak 70,893 crores as on 31st March 2026 3:55 3 minutes, 55 seconds as against 261,562 crores as on 31st March 2025 up by 4% 4:03 4 minutes, 3 seconds and comprising 84% of the total portfolio. Total disbbursements for the quarter were 21,019 4:10 4 minutes, 10 seconds crores as against 19,156 crores for Q4 FY25 up by 10%. Out of that 4:18 4 minutes, 18 seconds disbbursement in the individual disbbursements in the individual housing loans were 16,672 crores for Q4 of FY26 4:28 4 minutes, 28 seconds as again 15,383 cr for Q4 FY25 up by 8%. and non-housing 4:34 4 minutes, 34 seconds individual loan segment were at 3348 crores as against 2676 crores up by 25%. 4:42 4 minutes, 42 seconds Whereas project loans were at 847 crores compared to 875 crores in Q4 financial year 25. On the net interest income 4:52 4 minutes, 52 seconds front, net interest income was 2,222 crores for the quarter as against 2,12 4:58 4 minutes, 58 seconds crores for Q3 of FY26 and 2,165 crores for Q4 of FY25 showing a 5:06 5 minutes, 6 seconds sequential growth of 6% Q and Q and 3% on YI basis. Net interest margin for the 5:14 5 minutes, 14 seconds quarter stood at 2.80% as against 2.69% 69% for Q3 of FY25 26 5:21 5 minutes, 21 seconds and 2.85 for Q4 of FY25 and for the full year it stood at 2.68% as against 2.73% 5:29 5 minutes, 29 seconds which is which was well within the guidance given at the beginning of the year. PBT profit before tax for the quarter stood at 1,934.24 5:38 5 minutes, 38 seconds crores as against 1769.58 crores a growth of 9.31%. 5:44 5 minutes, 44 seconds Profit after tax for the quarter stood at 1497.41 crores as against 1367.96 crores for the same pre per period 5:53 5 minutes, 53 seconds previous year up by 9.46 and PA for FY2526 today at 5595.15 6:01 6 minutes, 1 second crores as against 5429.02 crores for F4 FY2425 showing a growth of 3%. Dividend was declared by the board 6:10 6 minutes, 10 seconds at 500 rupees that is 10 rupees per share. 6:14 6 minutes, 14 seconds In terms of asset quality, the stage 3 exposure default stood at 2.16% as against 2.47% as on 31325 6:23 6 minutes, 23 seconds and 2.45% as on 311225 reflecting a sequential as well as Y on Y yearon year improvement in the sale 6:32 6 minutes, 32 seconds total provisions as on 31st March 26 is 4569 crores with stage three provisioning at cover at 50.08%. 6:42 6 minutes, 42 seconds The credit cost for QY Q4 of FY26 is two basis points and the full year it is 18 6:49 6 minutes, 49 seconds basis points. The company also conducted stress sale of a stress asset through ARC for a cash consideration of 70 crores during Q4 of financial year 26. 6:59 6 minutes, 59 seconds On the funding side, the cumulative cost of funds stood at 7.27% 27% as on 31st 31st March 26 as again 7.73% as on 31st 7:09 7 minutes, 9 seconds March 25 showing a decline of 46 basis points on year-on-year basis incremental 7:16 7 minutes, 16 seconds cost of funds also reduced significantly from 7.73 in financial year 25 to 6.94 in financial year 26 a decline of 79 7:25 7 minutes, 25 seconds basis points and Q4 of FY26 it stood at 6.86 as compared to 7.66 66 for Q4 FY25. 7:34 7 minutes, 34 seconds During March 26, the interest rates were elevated due to the war in West Asia which resulted in a shoot up of wild crude oil prices and the fall of the INR 7:43 7 minutes, 43 seconds at record low levels. However, we managed to reduce an interest expenses by more than 150 crores compared to Q3 7:49 7 minutes, 49 seconds of FI26. We also got repric some of our outstanding bank borrowing during the last financial year. In the last 7:56 7 minutes, 56 seconds financial year 2526, we raised fresh loan from banks and financial institutions amounting to more than 8:03 8 minutes, 3 seconds 45,000 crores and raised more than 10,000 crores for NHB at very competitive rates. Out of the total incremental borrowings of financial year 8:12 8 minutes, 12 seconds 25 to26 around 82% were at floating rates. of the total outstanding borrowings share of the floating rate 8:19 8 minutes, 19 seconds borrowings today stands at 52% as on 31st 326 as compared to 45% as on 31325 8:29 8 minutes, 29 seconds on the technology initiative the company has launched a project uh in February 26 which we called the straight through process this is basically a machine 8:38 8 minutes, 38 seconds enabled credit appraisal process enabling automated underwriting of loans this init this uh initiative is expected 8:46 8 minutes, 46 seconds to significantly reduce manual intervention in the sanction process and over enhance overall uh customer 8:54 8 minutes, 54 seconds experience through uh much reduced turnaround times. With this brief introduction, I would like to invite you for your queries. Thank you. 9:05 9 minutes, 5 seconds Thank you very much. We will now begin with the question and answer session. 9:10 9 minutes, 10 seconds Anyone who wishes to ask a question may press star then one on the touchstone telephone. If you wish to remove 9:18 9 minutes, 18 seconds yourself from the question queue, you may press star and two. Participants, you are requested to use handsets while 9:25 9 minutes, 25 seconds asking a question. Ladies and gentlemen, we will wait for a moment while the question is. 9:34 9 minutes, 34 seconds A reminder to all, you may press star and one to ask a question. 9:42 9 minutes, 42 seconds We will take the first question from the line of Maruk from Tara Capital. Please go ahead. 9:48 9 minutes, 48 seconds Yeah, sir. So, can you talk about your growth outlook uh in terms of what disbburment growth in individual home 9:55 9 minutes, 55 seconds loans you expect next year and even your margin outlook? Your margins did expand in FQ but from here on and then uh your 10:06 10 minutes, 6 seconds stage three ECL has gone down. So if you could comment on what level you would like to keep it at. 10:13 10 minutes, 13 seconds Okay. Thank you. Thank you Maru for your question. We are coming to the first thing regarding the growth estimates. 10:18 10 minutes, 18 seconds Well honestly Maruk right at the moment we are sitting in a very volatile geopolitical situation. Right. West Asia 10:24 10 minutes, 24 seconds crisis going on. Uh nothing seems to be moving as such. Of course a lot of uh initiatives ceasefire and all that have 10:33 10 minutes, 33 seconds been taken. On top of that uh India itself is being impacted the energy crisis as we may call it the uh sort of 10:42 10 minutes, 42 seconds pressure inflationary pressure on the all the other things. So honestly growth will depend on the geopolitical situation and the economic situation. 10:52 10 minutes, 52 seconds Yes growth in last year has been muted. 10:54 10 minutes, 54 seconds 4.4% was the growth for the full financial year largely contributed by intense pressure in the housing finance 11:01 11 minutes, 1 second industry. As you are aware, Alexi housing finance basically we are into the individual home loan segment where 11:09 11 minutes, 9 seconds we are competing with banks and uh with the uh repo rate cut uh of 100 basis 11:17 11 minutes, 17 seconds points by RPI RBI the banks repo rate was immediately reset because their 11:23 11 minutes, 23 seconds rates are linked to the repo. We had to frantically take a call on reducing our rates also. That did impact. Of course, 11:32 11 minutes, 32 seconds there was a time lag, a delay in us reducing rates. So there was the the impact was felt in the business uh 11:39 11 minutes, 39 seconds inflow into the company. So it was a very competitive uh year uh last year which and the competition did impact uh 11:47 11 minutes, 47 seconds the I would say the growth which uh we received 4.4% 4% as against a double digit growth which we were alluding to 11:56 11 minutes, 56 seconds in the beginning of the year. Uh but yes that is the way it is going to be and in the beginning of last year I clearly said that given a choice between 12:04 12 minutes, 4 seconds protecting margins and uh going for growth I would prefer to protect my margins than really go health for 12:13 12 minutes, 13 seconds growth. So that is we have been able to protect our margins going forward. Uh honestly speaking yes uh what we are uh 12:21 12 minutes, 21 seconds I right at the moment uh difficult to hazard a guess what the situation is going to play out uh 12:28 12 minutes, 28 seconds throughout the year uh Q1 definitely we are targeting a 15% growth for Q1 uh 12:35 12 minutes, 35 seconds going forward uh definitely if the conditions are what they are a 10 to 12% growth is what I I'm expecting this year 12:43 12 minutes, 43 seconds and I'm pretty sure we'll get there get there this year uh on the margins front uh 2.80 was the name for the quarter 12:53 12 minutes, 53 seconds 2.68 was the name for the entire financial year well within the guidance of 2.6 to 2 uh8 which we had given in 13:02 13 minutes, 2 seconds the beginning of the year uh February and March were reasonable months yeah February I would say January and February were good months for us where 13:09 13 minutes, 9 seconds we were able to borrow at very competitive rates of almost 6.8% 8% but thereafter February and March especially 13:17 13 minutes, 17 seconds March with the West Asia crisis uh evolving and growing there was a pressure on the borrowing costs the 13:25 13 minutes, 25 seconds costs are still I feel elevated but I think in Q1 we would be able to mar we will be able to maintain a margin 13:32 13 minutes, 32 seconds of 2.6 6 to 2.7 uh for the year uh difficult to predict right now but assuming that things 13:40 13 minutes, 40 seconds remain uh normal I would say for the year uh a margin growth sorry name of 13:48 13 minutes, 48 seconds 2.5 to 2.7 is what we are aiming to achieve on the ECL front yes on the asset 13:57 13 minutes, 57 seconds quality front asset quality has been improving quarteron quarter uh our G&P ratio has come down from 2.47 at the end of 14:05 14 minutes, 5 seconds last year to 2.15 at the end of FY2 526 and NNPA is down from 1.22 to 1.08. 14:16 14 minutes, 16 seconds Uh the provisioning requirements are reducing uh as regards settlement no major big 14:23 14 minutes, 23 seconds settlement uh was witnessed except for this one settlement of 70 crores uh which we could do uh do in the month of 14:31 14 minutes, 31 seconds March. So the big ticket settlements are still uh in various stages of uh negotiation 14:38 14 minutes, 38 seconds expecting uh yes uh advanced information there is one big account which has been resolved 14:45 14 minutes, 45 seconds but as per the uh guide guidelines of RBI uh we have to wait for one full year 14:53 14 minutes, 53 seconds before the uh uh let us call it the resolution or the settlement can take effect in our books. That settlement 15:01 15 minutes, 1 second happened in the month of May of last year. So this year in the month of May current year the effect of that 15:08 15 minutes, 8 seconds settlement will be felt in our books. So asset quality is uh definitely going to improve much much uh further in the 15:16 15 minutes, 16 seconds coming financial year better than what we witnessed last year. 15:24 15 minutes, 24 seconds Okay sir. And I just have one question. 15:26 15 minutes, 26 seconds Uh so uh may I please ask if your successor has been identified? Uh yes my successor has been identified. 15:35 15 minutes, 35 seconds In fact very unfortunate incident took place. The successor who was identified earlier passed away on the 9th of uh 15:44 15 minutes, 44 seconds yes sir May 9th of May Mr. Sanjay Deal who was the appointed EO and designated to take over from me 15:53 15 minutes, 53 seconds on the 9th of May and passed away. Now we have uh another successor in place Mr. Sepkumar. He has joined us just 16:00 16 minutes yesterday and he will be taking over from me uh on 31st of August 2026. 16:08 16 minutes, 8 seconds Okay sir. Thank you so much. Thanks a lot. 16:13 16 minutes, 13 seconds Thank you. We will take the next question from the line of Kunal Sha from City Globe. Please go ahead. 16:21 16 minutes, 21 seconds Yeah. Uh thanks for taking the question. 16:23 16 minutes, 23 seconds So firstly uh when we look at it in terms of the overall uh repayment and prepayment rate during the quarter it's 16:30 16 minutes, 30 seconds been slightly higher outside of the uh HL uh uh loans particularly on the left side. uh uh so if you can just highlight 16:39 16 minutes, 39 seconds in terms of how the trends have been in BT out how has been the uh repayment rates in uh uh the home loan and u why 16:47 16 minutes, 47 seconds the prepayment or runoff rates were quite high in Q4 uh despite I I would believe like there would have been some improvement on PT out during the quarter as you indicated last quarter. Yeah. 17:00 17 minutes Uh well Kunal. Yeah. Uh good morning. Uh yeah if I talk about the prepayment. 17:03 17 minutes, 3 seconds India prepayment is a natural uh natural phenomena in the housing finance industry right along with every EMI some amount of principle does come in and 17:12 17 minutes, 12 seconds then people having extra cash or extra money to spare they do try to pair pay off pay off their uh outstanding loans. 17:20 17 minutes, 20 seconds So if I talk about the last quarter uh the prepayment has basically been see on an average in the company the uh 17:28 17 minutes, 28 seconds prepayment uh is about uh what uh uh 2,000 odd crores every month right 17:36 17 minutes, 36 seconds yeah yeah just I want to supplement uh for the last quarter the net uh net uh 17:41 17 minutes, 41 seconds BT was around around 1,250 only uh prepayment by of lumpsum payment to the customer it is normal phenomen of the uh 17:50 17 minutes, 50 seconds industry. So important is what BT or exactly VFP we have faced. So that is uh it's not in an alarming situation. Uh 17:59 17 minutes, 59 seconds this was quite normal during this quarter. 18:01 18 minutes, 1 second So this compares with Q3 yeah 1150 if I have to compare it with Q3 how much was that net BT? 18:07 18 minutes, 7 seconds If I compare BT of Q3 in Q3 BT 8,916 loans went out of our books amounting to 18:14 18 minutes, 14 seconds 2,157.29 crores. Right? And in Q4 this figure came down to 6480 and 1,187.71 18:24 18 minutes, 24 seconds crores. So approximately near about a,000 cr reduction in BT out in Q4. It is not that BT out has increased in Q. 18:33 18 minutes, 33 seconds In Q2 and Q3 the BT out was significantly higher. Q2 it was 2,838 crores. Q3 it was 2157. 18:41 18 minutes, 41 seconds Uh Q1 was 1341 and uh Q4 was 1187. So BT is more or less settled at about what 18:49 18 minutes, 49 seconds approximately if I round it up to about 1,200 crores uh in a quarter and you know Kunan uh for repricing uh repricing 18:59 18 minutes, 59 seconds of our this uh uh instructions we have issued somewhere in uh last week of October. So after October BTO is uh checked checked to a great extent. Yeah. 19:10 19 minutes, 10 seconds So in the last Q4 it is not so much material. 19:15 19 minutes, 15 seconds Uh got it. So when we uh when we are looking at say 10 12% uh dispersement growth for the uh full year. So in fact 19:24 19 minutes, 24 seconds u uh you are suggesting closer to almost like say uh 73 to 75 or thousand crores of uh disbbursements for next year. And 19:33 19 minutes, 33 seconds looking at the current uh uh run rate in fact uh still uh the loan growth uh would appear to be in a mid single digit 19:41 19 minutes, 41 seconds or so maybe earlier you have been guiding for taking it towards 8 to 10 odd percent but is there any possibility would there be any levers are there any 19:49 19 minutes, 49 seconds initiatives which you are taking in order to uh pull that up or we should uh uh see nearly like a mids singledigit growth continuing for a while given this geopolitical situation. 20:01 20 minutes, 1 second Yeah, Kunar, if I talk about the book growth and the disbbursement growth, yeah, disbbursement growth was impacted in Q1, Q2 and Q3 of last year, right? If 20:09 20 minutes, 9 seconds you look at Q4, our disbbursement growth is 10%. 20:13 20 minutes, 13 seconds So, this was where we wanted to be for the full financial year, but somehow it happened in Q4 only and uh this has 20:20 20 minutes, 20 seconds continued in the April of uh Q Q1 of this year. In April, I have a disbburment growth of almost uh 20.87%. 20:29 20 minutes, 29 seconds So the the growth is picking up. Yes. As regarding the levers, yes, we have looked at what we really need to do to 20:36 20 minutes, 36 seconds really achieve this so-called elusive double-digit growth which we have been alluding to in the past 2 three years. 20:43 20 minutes, 43 seconds Now two three things uh we have identified this year which is going to be totally different from what we have been doing in the previous years. Number 20:49 20 minutes, 49 seconds one is uh all this while 36 37 years of our history we have always been uh 20:56 20 minutes, 56 seconds focused on sourcing uh housing loan assets or rather the organic uh uh 21:02 21 minutes, 2 seconds method of uh doing business right uh for the first time uh since last quarter of uh last we spent the last last quarter 21:10 21 minutes, 10 seconds of last year in uh formulating a co-ending and a DA policy direct assignment policy which is now ready. So this year we are going to go in for coal 21:18 21 minutes, 18 seconds lending more so in the retail segment and partially in the uh partially and cautiously in the project finance segment. So this is one uh initiative or 21:28 21 minutes, 28 seconds one step which I think would help us grow our business as well as our book. 21:32 21 minutes, 32 seconds Number one. Number two is what we are look what we are looking at. 21:36 21 minutes, 36 seconds Traditionally we have been sourcing business through our agents right 90% of my business comes in through them. We apart from them we have just two 21:45 21 minutes, 45 seconds corporate agents. One is our own subsidiary financial services limited which approximately does about 10% of the 21:52 21 minutes, 52 seconds total business of the company and the other is an individual entity or a or a company called SP Enterprises. 22:01 22 minutes, 1 second this year. This year what we are looking at uh there are a lot of business aggregators available in the market. 22:07 22 minutes, 7 seconds People like Andromeda and others we are consciously going to engage with them and try to uh engage them uh to source 22:16 22 minutes, 16 seconds business for us. So that would probably give us uh some volume of business 4,000 5,000 crores is what I'm looking for in 22:23 22 minutes, 23 seconds the first year. That is one. And number three is uh we have uh been focused we have been trying to do affordable 22:32 22 minutes, 32 seconds business but it has not taken off in any in any big way. Yes, we were cautious about it consciously we were going slow 22:39 22 minutes, 39 seconds because we were aware of the high risk in this segment and the other thing was that since in the last 36 37 years we've 22:46 22 minutes, 46 seconds never done affordable the true meaning of affordable we mostly been comfortable doing uh uh IHL individual home loans to 22:53 22 minutes, 53 seconds the salaried and the self-employed class so this year uh a decision has been taken uh that we need to set up a 23:01 23 minutes, 1 second separate affordable vertical something like what PNB has done the Rashni vertical of PNB we'll be setting up a 23:09 23 minutes, 9 seconds similar vertical the process will start uh very shortly uh we'll be it'll be completely new and totally people will 23:16 23 minutes, 16 seconds be onboarded from outside because I believe people in the in our company we are not attuned for that so we'll be hiring people from outside it will be a 23:24 23 minutes, 24 seconds complete separate vertical wherein the entire sourcing the entire uh credit appraisal the entire recovery the entire 23:31 23 minutes, 31 seconds collection machinery will be handled by people who are uh attuned with who are uh experienced in doing affordable 23:38 23 minutes, 38 seconds business. So that is another and the fourth is uh we are increasing our uh uh feet on the street or resources in the marketing side. We have achieved uh we 23:47 23 minutes, 47 seconds have received an approval of onboarding about 200 uh people for the marketing vertical. 23:54 23 minutes, 54 seconds The process will be completed by the end of Q1. uh these 200 people are are about what 6% 7% of my the total employees I have a total employee strength of 2,500. 24:04 24 minutes, 4 seconds So this 200 will be about uh 78% of the total employee strength. So this also will add to my feet on the street and 24:11 24 minutes, 11 seconds actually my uh business push which I intend to have. So these four five things which I talked about should give me at least a double digit growth in the current financial year. 24:22 24 minutes, 22 seconds So this is on disbbursements. 24:24 24 minutes, 24 seconds This is on disbbursement. Yes. Yeah. On the book growth side, on the book growth side, yes, one area we are looking at or one area we had not been very focused on 24:32 24 minutes, 32 seconds was on the BT out, right? People moving out last year. BT out for the company as 24:39 24 minutes, 39 seconds a whole was uh about uh what 12,200 uh 12,778 24:46 24 minutes, 46 seconds crores. So that's approximately a rundown of almost 1,000 crores per month. This is one area which we need to focus. We have set up a separate uh I 24:56 24 minutes, 56 seconds would say department which we are calling business retention department this year people have been put in put in place and they will be completely 25:04 25 minutes, 4 seconds focused on the BT out any case going out we'll have to go through this particular the people in this department and we 25:12 25 minutes, 12 seconds will try whatever is possible on our part including compromising on the rates we offer uh to uh hold back uh business 25:21 25 minutes, 21 seconds or retain the business which we have Because retaining business is always profitable because people going out are 25:28 25 minutes, 28 seconds not only a drain on the the income of the company but also sourcing new people is slightly more costly proposition as 25:35 25 minutes, 35 seconds compared to retaining existing customers and kuna net net business transfer is around 7,000 cr only looking to the size 25:42 25 minutes, 42 seconds of me port is more than three 20,000 cr net BT out of 7,000 around 7,000 is very 25:50 25 minutes, 50 seconds normal I think uh looking to the industry uh practices. 25:55 25 minutes, 55 seconds Got it. Got it. Yeah. Thank you. Thanks a lot. Uh uh and patiently answering all the questions. Thank you. 26:04 26 minutes, 4 seconds Thank you. We will take the next question from the line of Sankit Shira from Dan Capital. Please go ahead. 26:12 26 minutes, 12 seconds Yeah. Hi sir. Uh just wanted to check uh the 10 to 12% guidance that you gave is on a loan growth, right? Uh 26:21 26 minutes, 21 seconds yeah 10 to 12% is on the book on the book. Okay. 26:26 26 minutes, 26 seconds Yeah. Like like was 73,000 crores uh disbbursement is what we are targeting 26:33 26 minutes, 33 seconds in retail. 4,500 cr disersment is what we are targeting. That is the budgeted uh disbbursement which the board has 26:40 26 minutes, 40 seconds given us. 73,000 crores in the 4,500 crores in construction finance or the wholesale book. So total taken together 26:48 26 minutes, 48 seconds is about what uh 70 near about 78,000 crores is that is what the budget of the company is this year. So if we get that 26:56 26 minutes, 56 seconds if we get that uh that will give us near about a 15% business growth and that would definitely translate uh with all 27:04 27 minutes, 4 seconds the uh steps we are taking including uh retention of portfolio department which you have opened. uh we expect that the 27:11 27 minutes, 11 seconds BT out uh 1,000 crores per month should come down significantly and that should give me a loan book growth of uh double 27:18 27 minutes, 18 seconds dates 10 to 12% what I'm talking about in in yeah so since we are out of the rate 27:25 27 minutes, 25 seconds cycle you expect the BTO will to come down and hang uh uh uh the bargains of 10 12% is it fair to say right 27:35 27 minutes, 35 seconds no can you can you come again Sankit no since since we are now at at the back end was out of the rate cut cycle 27:42 27 minutes, 42 seconds wherein usually during the rate cut cycle we face a lot of BT outs and now you expect that to come down uh the 27:50 27 minutes, 50 seconds pressure of BT outs. Uh is is that the right assumption for next year? 27:54 27 minutes, 54 seconds Yeah, at the at the moment I think the rates are more or less fixed. I think there's not going to be I'm pretty sure there is not going to be any more rate 28:01 28 minutes, 1 second cut in the fibing circumstances. I don't think RBI has any leeway to that. On the contrary, there is a possibility if 28:10 28 minutes, 10 seconds things go, if the situation turns from bad to worse and this West Asia crisis prolongs for another two to three months, you may I see I see there could be a possibility of a rate hike, right? 28:21 28 minutes, 21 seconds Uh increase in so again uh this rate war is see the problem with us now we are competing 28:28 28 minutes, 28 seconds with banks. My IHL IHL portfolio is 82%, we have brought it down from 85 to 82 at the end of this year. We are trying 28:36 28 minutes, 36 seconds diversification into the LAP and LRD segment. Uh but uh yes we are still 82% 28:43 28 minutes, 43 seconds IHL and IHL also it is a prime segment basically civil score 750 and above. So that is exactly the uh I would say the 28:51 28 minutes, 51 seconds domain the territory of banks. So competing with them on the rate front is proving to be very very difficult uh on 28:59 28 minutes, 59 seconds our part. Banks have an inherent advantage of cost of funds. their cost of funds are slightly lower and uh 29:06 29 minutes, 6 seconds rightly slightly thing is that we borrow from banks right so basically we are competing with our lenders which is a 29:14 29 minutes, 14 seconds difficult proposition uh so hopefully yes hopefully uh I think uh the rates are settled and going forward 29:22 29 minutes, 22 seconds let us see what the RBI does and we will have to match see the problem is our banks are to totally repor rate linked 29:29 29 minutes, 29 seconds right so there's an advantage for us in increasing rate cycle. The moment report rate goes up, bank rates will immediately go up. Uh we do have some 29:38 29 minutes, 38 seconds opportunity probably month, one month and a half time frame where we can uh sit back and probably not immediately hike the rates and probably going for a 29:47 29 minutes, 47 seconds rate height rate hike at a slightly later stage which can give us this one month one and a half month advantage over the banks. So let us see how it 29:55 29 minutes, 55 seconds plays out and we'll be waiting for an opportunity and try to cash in on that. 30:00 30 minutes And I want to add one more thing the BT out for the month of is negligible the BT out uh BT out net BT out so BT out 30:09 30 minutes, 9 seconds was 1100 uh somewhere in the retail segment and the BT in was,1 so net BT hardly 100 crores. So looking at the 30:16 30 minutes, 16 seconds size of this company 100 crores BT out net PT out is insignificant for the company. 30:24 30 minutes, 24 seconds This was approved you saying? 30:28 30 minutes, 28 seconds Yeah. Yeah. What voice is not very clear? 30:32 30 minutes, 32 seconds Yeah. I was saying uh relatively you are right that banks will always be more uh competitive on cost of funds. uh but but 30:40 30 minutes, 40 seconds within our peers or the NBSC set of uh uh uh companies uh since we have a higher share of uh same capital market 30:48 30 minutes, 48 seconds borrowings uh our cost of fund income will be relatively slower right uh in in rising interest rate scenario. 30:56 30 minutes, 56 seconds Uh yes yes yes our cost of funds is definitely much much uh uh less than that of NBFCs. We are AAA rated which is 31:04 31 minutes, 4 seconds the highest rating uh you can get uh in the industry right so our cost uh cost cost on borrowing cost for the year was 31:12 31 minutes, 12 seconds 7.27 cumulative and 6.94 incremental this is the overall rate at which we borrowed in the uh last financial year. 31:23 31 minutes, 23 seconds So we expect yes as far as the thing is concerned we will definitely be getting lower rates uh as compared to NBFCs and other HFCs. 31:32 31 minutes, 32 seconds Uh so we'll try to take it at an advantage but again the problem as I said now we are competing with banks. So even a borrowing cost of uh incremental 31:40 31 minutes, 40 seconds borrowing cost of 6.94 as compared to the borrowing cost of a bank including kasa which probably would be five and a half five and it is still on the higher side. 31:51 31 minutes, 51 seconds So we have a little bit of more tight rope walking to do as compared to banks. 31:56 31 minutes, 56 seconds But yes uh we have to be competitive as I said because it's because of the line of business the segment in which we operate IHS we have to be compet 32:05 32 minutes, 5 seconds competitive we have to compete with banks and we'll do that this year our maximum borrowing is from banks and 32:13 32 minutes, 13 seconds at floating rates only. So almost 82% we have borrowed uh at floating rates especially from banks there is a there 32:21 32 minutes, 21 seconds is a reduction substantial reduction in rate of interest on incremental basis here banks borrowing at 7.85% 85% this 32:28 32 minutes, 28 seconds year is 6.90% only so uh lot of uh cost benefit we got in 32:35 32 minutes, 35 seconds the current year that is correct you know what I was alluding to is since we have lot of NCDs NCDS typically have a 3 32:43 32 minutes, 43 seconds years 5 years uh maturity so in that context also our rate even if the rate increases our rate increase will be 32:52 32 minutes, 52 seconds relatively slower uh the last question I wanted to have is Sir uh uh if you can uh tell us 32:59 32 minutes, 59 seconds something about the April dispersements uh in terms of how it is versus last April uh any sense if you can give 33:07 33 minutes, 7 seconds no disbbursements in terms of what sank April uh disbbursements in the month of April uh how they have fared with last 33:15 33 minutes, 15 seconds year like uh for uh quarter you were saying 15% but April to April the disbbursement growth would be uh what 33:23 33 minutes, 23 seconds I told you April to April my disbbursement growth is 20.8 87%. 33:28 33 minutes, 28 seconds Oh okay. Okay. Okay. Sure sir. Those were my questions. Thank you. Thank you. Thank you. 33:36 33 minutes, 36 seconds Thank you. We will take the next question from the line of Abijit Draal from Motila Rose Financial Services. 33:44 33 minutes, 44 seconds Please go ahead. Yeah. Okay. Am I audible? Yeah. Audible. 33:50 33 minutes, 50 seconds Please use your handset mode. Yeah. Is this better now? Yeah. 33:57 33 minutes, 57 seconds Yeah. Uh good afternoon sir. Uh thanks for taking my question. Uh so two things. One is uh during your opening 34:03 34 minutes, 3 seconds remarks you have shared that uh domestic mortgage demand has remained reasonably resilient. Uh and then you also shared 34:12 34 minutes, 12 seconds that almost uh 20 21% kind of a growth in disbburments that we see in April this year. just trying to understand I 34:21 34 minutes, 21 seconds mean out of few uh real estate companies developers who've reported we have started seeing some acknowledgement that 34:28 34 minutes, 28 seconds footfalls have moderated a little bit conversions are now taking longer uh customers are taking longer to make a 34:36 34 minutes, 36 seconds purchase decision. Uh so just trying to understand have you started seeing any of that in April and May because your 34:44 34 minutes, 44 seconds growth in April tells a very different story. So just trying to understand I mean what is your view on this? 34:52 34 minutes, 52 seconds Yeah abjit yes uh uh last quarter also we grew by 20 uh 10% yeah which was significantly higher than the growth in 35:00 35 minutes Q1 Q2 Q3 and and uh then carrying it forward in April we have shown a growth 35:06 35 minutes, 6 seconds of almost 21%. So right now the impact of either the West Asia crisis or the uh 35:14 35 minutes, 14 seconds the I would say slightly um reduced outlook for the economy has not yet played out in us and I think 35:22 35 minutes, 22 seconds typically the reason is uh because of the segment we operate in right we are mostly into IHL salaried class mostly 35:30 35 minutes, 30 seconds and number two we are basically our ticket size is on about 32 lakhs of rupees per loan. So basically we are operating in the middle class segment. 35:40 35 minutes, 40 seconds So right now in this segment not seeing too much of an impact but if this crisis continues the energy crisis continues 35:48 35 minutes, 48 seconds inflation goes up uh definitely there will there will be an impact and the other part of it is which has me worried 35:56 35 minutes, 56 seconds also to some extent is the impact of AI right in India we we've been hearing about a lot about AI and uh especially 36:04 36 minutes, 4 seconds in the western world uh right now the impact yes there have been layoffs in India But not to that extent. So going 36:12 36 minutes, 12 seconds forward we'll have to be very very cautious and uh I would say on our feet and toes in assessing the impact on AI 36:21 36 minutes, 21 seconds because some of the large centers where I do business lic does business are basically centers which revolve around 36:29 36 minutes, 29 seconds the IT industry. Centers like Bangalore centers like Chennai centers like Hyderabad, Gura, Pune. So these are 36:37 36 minutes, 37 seconds centers where a big chunk of my business comes in from and these are centers which are totally I would say revolved 36:44 36 minutes, 44 seconds around or evolved around the IT industry. So if AI uh the impact of AI 36:51 36 minutes, 51 seconds uh does impact these centers it is definitely going to impact my business also. So that is the uh worry for me. 36:59 36 minutes, 59 seconds Yes, basic west Asia crisis is a worry because basically if you look at the housing thing especially the segment ideally in the middle class segment it 37:07 37 minutes, 7 seconds is all sentiment based right if I go to buy a house being a middle-ass man I would first need to be very sure about 37:15 37 minutes, 15 seconds my future my future earnings my capacity to repay so if there is any doubt any 37:22 37 minutes, 22 seconds hesitancy I would defer the decision to uh uh purchase a house or take a loan etc etc so That could play out that 37:30 37 minutes, 30 seconds could be maybe what is playing out in when the developers are saying that we we are seeing witnessing slightly lesser footfalls or lesser interest and the 37:39 37 minutes, 39 seconds other part of it is most of the developers at least the big developers if you see they are into the semi semi- luxury and the luxury segment of the market. This is an area where we don't 37:47 37 minutes, 47 seconds operate in so there also the sentiment plays a big hand. uh if a person or a businessman or anybody with money sees that my future income is protected he's 37:56 37 minutes, 56 seconds definitely going to go for a 3 cr 5 crore 10 cr or even a 100 cr chamilia so that could probably be the reasons right 38:04 38 minutes, 4 seconds now touchwood we have not been able we have not felt the impact as such going 38:11 38 minutes, 11 seconds forward keeping our fingers crossed hopefully nothing happens got it sir that seems cool so the the 38:19 38 minutes, 19 seconds other question I had is um I am hoping we've not made any PLR changes in this quarter which is yet to reflect in the reported years right? 38:28 38 minutes, 28 seconds No, no, we have not made any PLR changes as yet. Uh but yes, uh considering our cost of borrowing which has increased uh 38:37 38 minutes, 37 seconds in the months of March and April also uh probably in the month of June, we will have to take a call on what we need to 38:45 38 minutes, 45 seconds do. uh definitely uh at these rate at these levels of borrowing costs will be difficult to 38:54 38 minutes, 54 seconds maintain the PLR at the rate at which we are maintaining. 38:59 38 minutes, 59 seconds Got it. But sir just just on that I mean from what I understand mostly in the HFC 39:05 39 minutes, 5 seconds space we are price takers uh in the mortgage segment from banks. So unless there is a repo rate increase, do you 39:13 39 minutes, 13 seconds think a PLR increase can be pushed through to customers? 39:18 39 minutes, 18 seconds Well, if you if you're analyzing the banks, at least the quarterly results of banks, the NIMs of all banks are under pressure, right? 39:25 39 minutes, 25 seconds Uh liquidity situation tightening although right now I have said that it is more or less adequate but I think in 39:32 39 minutes, 32 seconds the coming times unless RBI intervenes in a big way the liquidity situation is going to be tighter. So again I think 39:39 39 minutes, 39 seconds banks also need to take a call as what they need to do with their names. Uh and similarly if uh they increase uh then 39:48 39 minutes, 48 seconds being in a competitive segment uh yes as I said we have a le a leeway of probably a month a month and a half uh but uh 39:56 39 minutes, 56 seconds within a month a month and a half we'll also have to increase if you want to protect our margins. 40:01 40 minutes, 1 second Got thank you thing our cumulative cost on 31st Mar was 7.27 27 but as of now there 40:09 40 minutes, 9 seconds is no not a not an increase in that cumulative cost otherwise it's there is a dip of at least two two bits in that 40:16 40 minutes, 16 seconds cumulative cost of borrowing as of now I don't think uh there is any need of increasing PL or any rates let's see first quarter then then definitely we'll 40:25 40 minutes, 25 seconds review it and then then accordingly take it all got it sir got it and then the last question that I had is u I mean have you 40:33 40 minutes, 33 seconds taken any technical write offs or sorry to interrupt in Dwayne Abijit I would request you to kindly rejoin the queue again for more questions. 40:41 40 minutes, 41 seconds Thank you. 40:44 40 minutes, 44 seconds Before we take the next question ladies and gentlemen in order to ensure that the management will be able to address all the questions from the participants 40:52 40 minutes, 52 seconds in the question queue we request you to kindly limit your questions to two per participant. If you have a follow-up question please rejoin the queue again. 41:03 41 minutes, 3 seconds We will take the next question from the line of Renesh from IC Asia. Please go ahead. 41:08 41 minutes, 8 seconds Yeah. Yeah. Hi sir. Uh sir my first question is on the name right. So when we look at the spreads actually it fell 41:15 41 minutes, 15 seconds sequentially and largely due to uh you know continuous asset in contraction. So just wanted to understand uh how do you 41:23 41 minutes, 23 seconds see asset yields uh you know moving going ahead uh also considering you know we want to restrict BT out and also at 41:33 41 minutes, 33 seconds the same time we are thinking to uh modify Taylor uh you know in next couple of months uh so yeah anything on the 41:42 41 minutes, 42 seconds asset kill what what do you see let's say near yeah around talking of spreads uh we 41:50 41 minutes, 50 seconds ended the year with a spread of 1.94 and when compared to last year the spread was 2.06. So yes definitely there was a 41:57 41 minutes, 57 seconds 12 basis point compression in the spreads but this was expected we we were expecting this because uh of our competition with banks the low lending 42:06 42 minutes, 6 seconds rates the BT outs the rewriting and rewriting happens when uh customer 42:13 42 minutes, 13 seconds applies for rewriting at a lower rate as compared to his existing rate. So rewriting 42:20 42 minutes, 20 seconds almost 40,000 crores of business got rewritten where the rates got reset and we had to reduce our rewriting rates 42:28 42 minutes, 28 seconds also to keep them in line with in line with the market. 42:32 42 minutes, 32 seconds Yeah. So, so it's going to be it's going to be a challenge maintaining names I'm telling you. Yeah. But what we are trying to do cautiously uh for the past 42:40 42 minutes, 40 seconds two years we've been trying to diversify our business from the predominantly IHL segment into the LAP and the LRD and I 42:49 42 minutes, 49 seconds would say I am reasonably satisfied in two years we've been able to increase the proportion of our LAP and LRT 42:56 42 minutes, 56 seconds business to around about 15%. Last year it was at about 12% so this year there's a 3% increase. Yes, nothing great if you 43:04 43 minutes, 4 seconds talk about the percentage increase but definitely a directional and if you realize if you understand right see changing you can change 43:13 43 minutes, 13 seconds products you can change everything but changing cultures is very very difficult so a predominantly IHL domin culture and moving it to LAP and LRD is going to 43:22 43 minutes, 22 seconds take some time is going to take some time but we are definitely there we would ideally like to have at least 25% of our business in the coming two years 43:30 43 minutes, 30 seconds from LAP and LRD which are margin creative segments. Uh so that is the way forward and the other thing the affordable of course it'll take time 43:38 43 minutes, 38 seconds because we setting up the vertical this year. So I expect another two to three years where we can get into the affordable and the third part is uh our 43:47 43 minutes, 47 seconds uh the construction finance right last year was not a very good year for us. uh there was a negative growth in the 43:54 43 minutes, 54 seconds wholesale book uh largely because of our restriction imposed by the board on uh 44:02 44 minutes, 2 seconds processing uh wholesale loans where the de developers are late rated triple B and above 44:10 44 minutes, 10 seconds right so uh that we have addressed we have now come out with our own credit uh 44:16 44 minutes, 16 seconds rating model wherein this tip of tripleB will be removed And uh I think in the next month onwards 44:24 44 minutes, 24 seconds I think we should have a fairly level playing field for construction finance also. 44:30 44 minutes, 30 seconds So that will give us uh some because construction finance are uh uh lending rates are slightly higher in 44:37 44 minutes, 37 seconds construction finance. I think it's more about 11 near about 11%. Right. 44:43 44 minutes, 43 seconds So I that should help me protect my margins. 44:47 44 minutes, 47 seconds Got it sir. But if I recall see LRD and IHL yields would be very similar, right? 44:56 44 minutes, 56 seconds No, LRD is slightly higher than IHL. We do not uh if if my IHL starts at 7.15 of course that is for the uh top bracket 45:05 45 minutes, 5 seconds top notch 800 plus cibil my LRD would be starting at 7 9.25 25 45:12 45 minutes, 12 seconds right so there there is a big difference and that would be what uh closer to 10 45:20 45 minutes, 20 seconds starts at 9.25 average I would say would be around about 9.75 on an average I think LRD would be at 9.75 45:27 45 minutes, 27 seconds and lap uh lap would be at 9 average would be about 9.3 9.4 four lower than LRD. 45:39 45 minutes, 39 seconds Oh, L is lower than LRD. Yeah. Okay. Okay. How it is for this company? Yeah. 45:47 45 minutes, 47 seconds Got it. And just lastly on this affordable piece, is there any target in our mind that you know let us say by 45:54 45 minutes, 54 seconds 28th uh we want to scale this book to this level or something? Uh 46:01 46 minutes, 1 second Ran no right now no target right now we are planning for the baby to be born now whether he becomes an is officer or 46:10 46 minutes, 10 seconds a pilot or an astronaut we'll see after he's okay okay sir thank you and best of luck 46:18 46 minutes, 18 seconds thank you thank you we will take the next question from the line of sranchu Mishra from 46:25 46 minutes, 25 seconds Philip capital please go ahead Um hi sir good afternoon. So this groups 46:31 46 minutes, 31 seconds that we are uh targeting of 10 to 12% how do we decompose that segment wise and as uh how much are we expecting for 46:40 46 minutes, 40 seconds individual home loans how much for uh lab how much for construction finance also if you can give me uh segment wise 46:49 46 minutes, 49 seconds yield on books and segment wise GS3 numbers. Thanks. 46:55 46 minutes, 55 seconds segment wise yield on books and uh numbers and cross three numbers for segment wise 47:03 47 minutes, 3 seconds let's see and look at just look at the segment wise yeah talking about this uh 10 to 12% uh growth in the book as I 47:10 47 minutes, 10 seconds said uh yes retail retail we will be targeting about uh near about I think 47:16 47 minutes, 16 seconds 15% right that is what the budget is for the budget of 73,000 crores last year we had done 66,000 crores So the budget is 47:25 47 minutes, 25 seconds around about 15% for retail. Uh project finance we have reduced our budget from 10,000 crores because last year we just 47:32 47 minutes, 32 seconds did about 2,000 odd crores. We have reduced it from 10,000 crores to 4,500 crores. But honestly 47:39 47 minutes, 39 seconds u my heart says that we should be able to do more because now as I said we have come out with a new credit uh rating 47:46 47 minutes, 46 seconds model which does not uh put this uh obstacle or limitation of tripleB rated companies. So I should be able to get a 47:54 47 minutes, 54 seconds fairly wider pool uh to source my business from though we have set it at uh 4,500. I expect at least uh 6,000 to 48:04 48 minutes, 4 seconds 7,000 crores from my project uh team to come put together LRD. Last year we have witnessed a growth of LD and uh lab we 48:13 48 minutes, 13 seconds have witnessed a 25% growth that is not contributing to too much of uh thing of 48:19 48 minutes, 19 seconds my uh book right now but LRD and u lap I would expect this 25% growth rate to 48:26 48 minutes, 26 seconds continue in fact I would expect it to accelerate because slowly slowly as we've been doing it for the past two years there has been a visible momentum 48:34 48 minutes, 34 seconds uh shift change in the mindset change in the culture confidence level of people in writing if LRD and uh LP uh loans has increased. 48:45 48 minutes, 45 seconds So approximately about a 25% growth in LRD and lab this year continuation from where we left last year. Uh 10 to 10% 48:53 48 minutes, 53 seconds growth in retail. Uh no 15% growth in retail and uh approximately at least uh 49:00 49 minutes more than 100% growth in project because 2,000 is what we did last year. 4,500 is the minimum target which we have to 49:07 49 minutes, 7 seconds achieve this year. uh Sudashu just I want to add you wanted to know the segment wise yield so just uh in just 49:16 49 minutes, 16 seconds cumulative on the IHL is around 9.03% for the cumulative wheel and for non-housing individuals it is 10.05% 49:25 49 minutes, 25 seconds and for others corporate loans and project loans it is 10.56% on cumulative basis and in totality it is 9.21% 21% 49:33 49 minutes, 33 seconds our criminal for the uh 31st March 26 49:41 49 minutes, 41 seconds what rate of phase three segment wise yeah IHL is 9.03% 03% cumulative wheel 49:50 49 minutes, 50 seconds as of 31st March 26 no stage three 49:58 49 minutes, 58 seconds stage three yes sir yes block stage three segment wise stage three segment wise 50:05 50 minutes, 5 seconds uh you mean stage three stage three you mean correct yes sir yes sir yes sir 50:13 50 minutes, 13 seconds just segment wise so stage Three 50:20 50 minutes, 20 seconds for individual for individual loan uh it is 1.03 only is three individual 50:28 50 minutes, 28 seconds individual loans and for NSC and for it is 20% 20% plus 21.02%. 50:35 50 minutes, 35 seconds Or NH right yeah and sir if I can just squeeze 50:41 50 minutes, 41 seconds them one last yes sir 3.02% 02% 3 3.51 NHI is it 3.51% and 50:51 50 minutes, 51 seconds non individual this is basically your lap and LR this is 3.5 and in totality stage three is 2.15%. 50:59 50 minutes, 59 seconds Understood sir. And if I can just squeeze in one last question sir. Uh so LIC holds a large stake in IDBI bank and 51:08 51 minutes, 8 seconds of course it holds us as well. Is there any discussion at the board level of a merger then we get that cost of fund advantage as well right? So so uh we 51:16 51 minutes, 16 seconds don't have to compete with the bank anymore. Uh so no no no that has I think u your ecom has already 51:25 51 minutes, 25 seconds done with no merger of IDFC no sorry ID ID IDBI with LIC they're not allowing that 51:33 51 minutes, 33 seconds though is that logical s this will this will you know reduce our pressure of funds sir 51:42 51 minutes, 42 seconds agree if you have some lobbying skills you can lobby with RBI and tell them to permit Regulator 51:50 51 minutes, 50 seconds has to permit the right person to answer this basically belongs to because the regulator has to 51:59 51 minutes, 59 seconds the regulator is not permitting neither RBI nor IRD. 52:05 52 minutes, 5 seconds Understood sir. Understood. This is very helpful sir. Thank you so much. 52:10 52 minutes, 10 seconds Thank you. Before we take the next question, a reminder to all the participants. Kindly restrict your question to one per participant. 52:20 52 minutes, 20 seconds We have the next question from the line of Korab Kadilwal from JP Morgan. Please go ahead. 52:27 52 minutes, 27 seconds Hi, good morning. Thanks for taking my questions. I've actually got two questions. One on uh the corporate NPA 52:34 52 minutes, 34 seconds resolution. How much is the amount pending? Uh what is the size of the resolution that you expect to book in 52:40 52 minutes, 40 seconds May? And uh any more clarity on when can we expect rest of the resolutions to take place sir? 52:48 52 minutes, 48 seconds Uh well uh if you look at the corporate NPA our stage three now just a minute uh where is this 52:57 52 minutes, 57 seconds figure now that is 20.91%. He's wanting the 53:08 53 minutes, 8 seconds volume volume volume of total NPA break up. Yes. For 53:15 53 minutes, 15 seconds for that cost of our NPA exposure default phase under stage three is 2837 cr. 53:25 53 minutes, 25 seconds Okay. and uh any timeline now corporate NP goro as I've been 53:32 53 minutes, 32 seconds saying uh corporate MPs these are a difficult piece to resolve because uh most of these are companies and they 53:39 53 minutes, 39 seconds have their own legal teams they're are very adept in putting a spanner in the works yeah but then a lot of work has gone in last year especially the big uh 53:48 53 minutes, 48 seconds NPAs in the corporate uh sector which we have and uh we have we did resolve 170 crores through arc sale in March of last 53:57 53 minutes, 57 seconds year. There are others lined up and I believe touchwood for Q1 of the current financial year should be good. Another 54:06 54 minutes, 6 seconds piece of news in advance is that uh uh we have gone in for a resolution in one 54:13 54 minutes, 13 seconds of the big uh corporate NPA where uh the resolution has been finalized in May of 54:21 54 minutes, 21 seconds 2025 as per RBI directives and guidelines. 54:25 54 minutes, 25 seconds uh the effect of that resolution can only be taken after a curing period of one year. So May 2026 is when that 54:34 54 minutes, 34 seconds resolution the effect of that resolution goes into my books. So that would uh uh reduce my NPA as well as reduce my 54:43 54 minutes, 43 seconds provisioning significantly. I cannot give you the exact figures right now. Uh but uh overall I think corporate NPA are 54:51 54 minutes, 51 seconds well on their way. uh just keeping our fingers crossed lots of cases in the DRTs and the NCTs which usually takes time as you know but again uh many of 55:00 55 minutes the people who whom we have taken to NLT and DRT are wanting to settle of course uh the moment we get a proper 55:08 55 minutes, 8 seconds settlement price which is uh I would say acceptable to both then the resolution does happen and on top of that ARC's yes 55:17 55 minutes, 17 seconds we are pursuing ARC's there have been just uh two ARC sales so far but we We are trying to rework uh our ARC policy, 55:26 55 minutes, 26 seconds try to be slightly more accommodative if possible and try to offload offload bigger chunks of our retail NPA 55:35 55 minutes, 35 seconds especially in the retail segment and specified NPA or difficult NPA in the corporate segment. So all put together 55:44 55 minutes, 44 seconds all these three efforts would result in a significant uh improvement in my asset quality provisioning 55:50 55 minutes, 50 seconds requirements and uh the overall uh improvement in asset quality. 55:57 55 minutes, 57 seconds Got it. No, thanks for that. That's very helpful. But if I just look at the at the bigger the larger picture uh how you 56:04 56 minutes, 4 seconds internally thinking about the ROA in FI27. So we ended the year at 1.78 in FI26. 56:12 56 minutes, 12 seconds uh from your comments margins likely NIM is going to go down you're going to do more of uh third party distribution so 56:20 56 minutes, 20 seconds that's uh an addition on the cost DA loans would cost anywhere between 50 to 100 basis points uh on dispersements as 56:28 56 minutes, 28 seconds a percentage of the dispersement amount uh credit costs at best stays flat in FI27 or potentially moves up uh in that 56:38 56 minutes, 38 seconds context how shall we think about ROA for FI27 No credit cost see as far as NIS are 56:46 56 minutes, 46 seconds concerned yes we have given you a slightly lower guidance but we would be looking at maintaining the NIS at this level because again you'll have to see yes cost of borrowing is up but then as 56:54 56 minutes, 54 seconds I said we'll have to take a call on the cost of lending also and that should happen quickly number one uh number two 57:01 57 minutes, 1 second ROA 1.78 for the year right uh this year what guidance should I give you 1.75 57:09 57 minutes, 9 seconds to 1.80 80 in the ROA under the existing circumstances if things uh improve or think better we'll be looking the target 57:17 57 minutes, 17 seconds given by the board is two target given by the board is two right 57:24 57 minutes, 24 seconds got it sir okay and any plans on uh increasing dividends well dividends we maintained it last 57:32 57 minutes, 32 seconds year uh we had increased it from from 450 to 500 right 10 rupees per share yeah but going forward any any 57:39 57 minutes, 39 seconds discussions at the board level because if ROA well if ROA let's say is flat in FI27 57:47 57 minutes, 47 seconds ROI have been declining so has there been any discussion on whether you want to increase uh payout to hit that 15 16% 57:56 57 minutes, 56 seconds ROE mark well there was a there was a discussion in the board yesterday on this yes certain board members were of the 58:03 58 minutes, 3 seconds opinion that we should increase dividend payout and other opinion board members were of the opinion that maybe we could 58:10 58 minutes, 10 seconds find other ways of uh let me say rewarding investors but uh nothing no 58:18 58 minutes, 18 seconds decision has been taken but let's see going forward uh how it goes how it goes because this is a call called call to be 58:24 58 minutes, 24 seconds taken by the collective board altogether perfect sir thank you so much 58:32 58 minutes, 32 seconds thank you we will take the next question from the line of Rakkesh Kumar from Valentis advisor Please go ahead. 58:43 58 minutes, 43 seconds Hello. Hello. Yes, you're audible. Please proceed. 58:47 58 minutes, 47 seconds Yeah. Yeah. Thank you. Uh so firstly the question with respect to affordable housing. Uh so what is the credit composition that we are looking at like 58:56 58 minutes, 56 seconds so like you referred the name of PNB housing like where we have seen uh composition rising from 2.7 to 9.4 for from uh like year 24 to year 26 March. 59:08 59 minutes, 8 seconds So how do we see uh affordable housing mix changing or like you know increasing because it is not there right now. So how it will look like maybe one year 59:16 59 minutes, 16 seconds down the line uh Rakkesh honestly speaking see the baby has not yet been born so we first 59:25 59 minutes, 25 seconds looking getting the baby born and then seeing whether it is healthy or not how it shapes up. So honestly speaking right 59:31 59 minutes, 31 seconds now we have no targets in mind for the first year. Yes, eventually we do realize this is a segment as a company 59:39 59 minutes, 39 seconds we have to be in. We also realize that this is a segment which is completely new to us. Uh and so we are cautious 59:46 59 minutes, 46 seconds that we should not jump into it uh head first and burn our fingers or burn our heads if I may say so. So we will be 59:54 59 minutes, 54 seconds taking a thing we'll be setting up the vertical and I said this vertical has to be run by people who are experts or who 1:00:02 1 hour, 2 seconds have experience in uh running or working in the affordable segment uh uh vertical 1:00:08 1 hour, 8 seconds right affordable segment. So honestly speaking yes on the long run in the long run we would expect this segment to contribute significantly to the business 1:00:17 1 hour, 17 seconds of the company but right now we have no targets. We have not set any targets. 1:00:21 1 hour, 21 seconds Got it. Got it. Just one small question like you know if you look at like in the declining interest uh like you know 1:00:29 1 hour, 29 seconds phase we have seen like our funding cost you know going down by 46 bits and 1:00:35 1 hour, 35 seconds credit going down by around 58 bits. So assuming like you know from the next year onwards if we see rising interest 1:00:42 1 hour, 42 seconds rate scenario so would we see the reverse uh like and to what extent possibly? 1:00:51 1 hour, 51 seconds No looking into the very competitive scenario which we are in right competing with banks. So I do not see a major reversal happening with the interest 1:00:58 1 hour, 58 seconds rates going up because uh yes interest rates going up it does give the uh housing finance companies the uh benefit 1:01:06 1 hour, 1 minute, 6 seconds of uh slightly higher rates or higher spreads or higher margins and but then again if you have to compete with uh 1:01:14 1 hour, 1 minute, 14 seconds your competitors uh you cannot do things uh which are completely different from what they are doing until and unless you are going to you are able to enter into 1:01:21 1 hour, 1 minute, 21 seconds segment segments into which your competitors are not very comfortable with or not very I would say focused on. 1:01:29 1 hour, 1 minute, 29 seconds So that is precisely what we are trying to address it from the two front. Number one knowing very well that IHL is our forte. We are not going to I would say 1:01:39 1 hour, 1 minute, 39 seconds dissuade people from doing IHL rather we would say we would try to encourage people to get get into LAP and LRD more. 1:01:48 1 hour, 1 minute, 48 seconds uh we have done that the different the rate of commission we are paying on lap and is slightly higher differential as compared to IHL and there has been a 1:01:56 1 hour, 1 minute, 56 seconds visible shift as I said about 15% business coming in from there as compared to 12% of last year so 3% increase in one year going forward as 1:02:04 1 hour, 2 minutes, 4 seconds this momentum picks on people become more comfortable with selling lap and ld I expect this uh uh percentage share to 1:02:13 1 hour, 2 minutes, 13 seconds increase further so that these are these are margin these are margin creative right as compared to IHL because IHL is uh something which is giving me the 1:02:21 1 hour, 2 minutes, 21 seconds lowest margins and lowest spreads. So these are margin creatives so that is the segment we trying to focus on but but cannot happen overnight. Yeah, a 1:02:29 1 hour, 2 minutes, 29 seconds company for 36 years being IHL we cannot suddenly expect them to suddenly shift to whole hog to lap and all it's going to be gradual but uh definitely that 1:02:38 1 hour, 2 minutes, 38 seconds directionally we are there uh we would like to increase the pace of course so that will probably uh give me a slightly 1:02:47 1 hour, 2 minutes, 47 seconds better spread and maybe uh they help me to maintain my margins which I have declared this year uh my names 1:02:54 1 hour, 2 minutes, 54 seconds Rakkesh I want to add one more thing you know our spread our spread is 1.94%. 1:03:00 1 hour, 3 minutes If you see the industry average, it is it is on a better side. So if we are if we are able to maintain this similar 1:03:08 1 hour, 3 minutes, 8 seconds spread, then I I think that definitely our our margins are would be better in the current coming year. 1:03:17 1 hour, 3 minutes, 17 seconds Thank you very much ladies and gentlemen. We will take that as the last question and with that concludes the question and answer session. I now hand 1:03:25 1 hour, 3 minutes, 25 seconds the conference back to the management for closing comments. Thank you and over to you sir. 1:03:30 1 hour, 3 minutes, 30 seconds Yeah, thank you friends. Thank you for joining us on this conference call. We have outlined what we feel are going to be our strategy or our thought process 1:03:38 1 hour, 3 minutes, 38 seconds in the coming financial year. And as I said in the very beginning with the volatile uh situation, the geopolitical 1:03:45 1 hour, 3 minutes, 45 seconds uncertainty in the markets right now uh we are keeping our fingers crossed. uh we are uh looking at whatever is 1:03:53 1 hour, 3 minutes, 53 seconds happening in the geopolitical world and also on the economic front uh in the country. Hopefully things should turn out for the better because again we are 1:04:00 1 hour, 4 minutes a global this is a global this crisis affects the entire world. I'm sure the world leaders would get together and try to get out of this crisis rather than 1:04:09 1 hour, 4 minutes, 9 seconds sticking on to their egos. So hopefully the uh started the year well. We started the year well and we are uh hopeful not 1:04:18 1 hour, 4 minutes, 18 seconds only hopeful I think we are positive that this year is going to be a better year than that of last year. Uh looking forward to meeting you at the end of Q1 and discussing and analyzing the 1:04:26 1 hour, 4 minutes, 26 seconds situation further. Thank you all. Thank you for participating in this. Thank you conference call. 1:04:33 1 hour, 4 minutes, 33 seconds Thank you members of the management. On behalf of Access Capital Limited, we conclude this conference. Thank you all for joining with us today and you may now disconnect your line. Thank you.