Regency Fincorp Ltd — Q4 FY26

Regency Fincorp Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=uKkRQyrq1aY Published: 5 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Regency Fin Limited Q4 FI26 earnings conference call. Before we 0:10 10 seconds begin, this conference call may contain forward-looking statements about the company which are based on the beliefs, 0:17 17 seconds opinions, and expectations of the company as on date of this call. These statements are not the guarantees of 0:24 24 seconds future performance and involve risk and uncertainties that are difficult to predict. 0:30 30 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:40 40 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:49 49 seconds Please note that this conference is being recorded. I now hand the conference over to Mr. 0:55 55 seconds Gorav Kumar Abdul managing director for his opening remarks. Thank you and over to you sir. 1:02 1 minute, 2 seconds Thank you. Good morning everyone and a very warm welcome to JC Pink Cop Limited. You made an earning call. I 1:11 1 minute, 11 seconds would like to thank you all for taking the time to join us today. This is a significant milestone for us. 1:19 1 minute, 19 seconds For a long time we have been focused on building the business quietly, strengthening our foundation, defining our model and preparing for scale. 1:30 1 minute, 30 seconds This call marks the beginning of a more open dialogue with the capital market community and we intend to build that engagement consistently from here on. 1:43 1 minute, 43 seconds Since this is our first earning call, let me start by stepping back and taking you all through what we are building. 1:52 1 minute, 52 seconds I'll start with the background in the market of Agency Pink Limited. At its core, Agency Pink is a leading platform 2:00 2 minutes focus segment that are structurally undeserved primarily MSMES and emerging 2:07 2 minutes, 7 seconds retail borrowers. These are segments where demands for credit is strong but access remain inconsistent or inefficient. 2:17 2 minutes, 17 seconds Our approach has been to operate in these spaces with a model that is high 2:24 2 minutes, 24 seconds yield but tightly controlled because in lending growth without discipline does not last. 2:33 2 minutes, 33 seconds If I place in the context of the broader industry, the MSM credit ecosystem in 2:40 2 minutes, 40 seconds India continues to present a large and structurally entrepreneurated opportunity. The market itself is a 2:49 2 minutes, 49 seconds sizable and growing stagnant supported by increasing formalization of 2:56 2 minutes, 56 seconds businesses and rising demand for working capital financing. 3:02 3 minutes, 2 seconds At the same time, a meaningful credit gap still exists, particularly in smaller and informal segments where 3:11 3 minutes, 11 seconds access to timely finance remains limited. 3:15 3 minutes, 15 seconds This creates a strong runway for lenders who can underwrite efficiently and scale responsibly. 3:24 3 minutes, 24 seconds Within this landscape, there is a clear shift towards secured MSME lending driven by better risk adjusted returns and improving borrower quality. 3:36 3 minutes, 36 seconds While unsecure lending although still attractive from a yield perspective is seeing more calibrated given tighter 3:46 3 minutes, 46 seconds regulatory oversight and BC are increasingly playing a critical role here given their ability 3:53 3 minutes, 53 seconds to serve customers beyond traditional banking channels and provide faster more and flexible credit solutions. 4:03 4 minutes, 3 seconds This evolving environment with strong demands and a clear gap in credit availability and a shift towards more 4:10 4 minutes, 10 seconds disciplined lending provide a strong scaling for our business as we scale. 4:17 4 minutes, 17 seconds So coming back to our operating model, we currently have a diversified product mix that include MSMQ loans, unsecured 4:27 4 minutes, 27 seconds business loans and digital personal loans. 4:32 4 minutes, 32 seconds Our average ticket size in MSN lending are in the range of 35 to 35 lakhs with 4:39 4 minutes, 39 seconds loan tenure typically between 12 months to 16 month. 4:44 4 minutes, 44 seconds This allows us to maintain a balance between yield visibility of cash flows and repayment discipline. 4:52 4 minutes, 52 seconds From a scale perspective, we have built a presence across 23 branches with a customer base of over approximately 16,000 plus borrower. 5:03 5 minutes, 3 seconds During the year, we have continue to expand our physical footprint, adding new branches in the key markets, taking our total network to current levels. 5:14 5 minutes, 14 seconds Similarly, our employee base has scaled up meaningfully to support this growth with the additional across sales, credit and operation functions. 5:25 5 minutes, 25 seconds This expansion has been calibrated ensuring that productivity of controls are maintained alongside growth. 5:34 5 minutes, 34 seconds Now geographically we are presently concentrated in north India particularly in the regions such as Punjab, NCR 5:42 5 minutes, 42 seconds uh Uttakran, Uttar Pradesh and surrounding markets. 5:47 5 minutes, 47 seconds These are areas with strong MSME activity and relatively stable credit behavior. 5:55 5 minutes, 55 seconds Our expansion strategy from here is measured. We will continue to deepen our presence in existing markets while 6:03 6 minutes, 3 seconds selectively entering new geographies where we see similar operating conditions and credit culture. 6:11 6 minutes, 11 seconds Over the years, we have evolved significantly. 6:16 6 minutes, 16 seconds So what started as a more traditional lending setup has gradually transformed into the focused NBFC with a clear identity. 6:25 6 minutes, 25 seconds We entered MSME and structured lending segments, expanded our portfolio, 6:32 6 minutes, 32 seconds strengthened our capital base and more importantly built internal capabilities around underwriting and risk. 6:41 6 minutes, 41 seconds Now we are witnessing a delta phase where momentum is expected to grow. 6:50 6 minutes, 50 seconds Until recently the business was largely branchled and people intensive which gave us strong control but also limited scalability. 7:00 7 minutes Now what we are not doing in the coming time is transitioning towards a more technology enabled model where decision 7:09 7 minutes, 9 seconds making is supported by data and a system improving both efficiency and consistency. 7:16 7 minutes, 16 seconds In MSM lending, underwriting can often be slow and dependent on an individual's judgment. We are addressing this by 7:25 7 minutes, 25 seconds using datadriven tools to better assess borrower profiles, focusing on their cash flows, their banking behavior and 7:34 7 minutes, 34 seconds their transaction pattern alongside traditional financial metrics. 7:38 7 minutes, 38 seconds This helps us standardize study decision and improve turnaround time without compromising on risk quality. 7:48 7 minutes, 48 seconds Let me emphasize on few things. At the same time, we are increasingly using data to improve sourcing efficiency. 7:56 7 minutes, 56 seconds Instead of relying entirely on the physical channels, we are working towards more targeted customer 8:03 8 minutes, 3 seconds acquisitions which should help generate better leads, improve conversion rates and optimize acquisition cost over time. 8:13 8 minutes, 13 seconds On the collection side as well, we are moving towards a more proactive approach where a borrower behavior is monitored 8:20 8 minutes, 20 seconds more closely on a daily basis and early signs of stress can be identified well in advance. Alongside this, we are 8:30 8 minutes, 30 seconds building a more integrated digital ecosystem or app. Uh the name of cash by salary is aligned in this strategic direction. 8:40 8 minutes, 40 seconds Over the next 12 months, we plan to launch a digital wallet named Rack Pay, which will enable smoother 8:48 8 minutes, 48 seconds disbburusment, repayments, and customer transactions within our ecosystem over time. This will also give us better 8:57 8 minutes, 57 seconds visibility into customer cash flows and behavior, allowing us to make more informed lending and risk decision. 9:06 9 minutes, 6 seconds On another note, uh we have also received NOOCC from RBI for the PPI license. 9:14 9 minutes, 14 seconds I would also like to highlight that last month we raised approximately 25 cr of equity through CCD compulsory 9:21 9 minutes, 21 seconds convertible venture. This capital will be deployed towards scaling our skewed MSME portfolios 9:30 9 minutes, 30 seconds and supporting our digital lending initiatives. 9:34 9 minutes, 34 seconds From a portfolio strategy standpoint, we are consciously increasing the share of skewed MSME lending. This provides 9:43 9 minutes, 43 seconds better downside protection still allowing us to operate in attractive yield segments. 9:49 9 minutes, 49 seconds At the same time we continue to maintain a diversified mix across products to avoid concentration risk 9:58 9 minutes, 58 seconds risk management like we are into NBS financial industry. It remains a core focus area for us. Our understanding 10:08 10 minutes, 8 seconds framework includes strict credit filters details due diligence and continuous monitoring across the loan life cycles. 10:17 10 minutes, 17 seconds We also maintain conservative leverage and strong capital adequacy which gives us the flexibility to grow in a calibrated manner. 10:28 10 minutes, 28 seconds Now looking ahead our execution will be anchored around three clear priorities. 10:34 10 minutes, 34 seconds Scaling over secured MSME book, strengthening our distribution and operating capabilities and expand 10:42 10 minutes, 42 seconds digital lending progressively integration technology to improve efficiency and control. 10:50 10 minutes, 50 seconds We are building a differentiated lending platform that combines scale, profitability, and discipline risk management to deliver long-term value. 11:01 11 minutes, 1 second With that I will now hand over to our CFO Mr. Bakr Malik to walk through the financial performance of the company. 11:09 11 minutes, 9 seconds Thank you. 11:11 11 minutes, 11 seconds I think thank you very much Borov. I think it's been a good insight for all our investors that what the strategy that we are following from maintaining 11:19 11 minutes, 19 seconds the NSM secured book towards also moving to having AI based digital lending platform which gives the key financial 11:28 11 minutes, 28 seconds indicative values that we will create in the going forward. 11:32 11 minutes, 32 seconds While I would like to share the key financial guides for the quarter and the full year FI 2026, I'm pleased to share 11:39 11 minutes, 39 seconds that our asset under management continue to demonstrate healthy growth increased 11:45 11 minutes, 45 seconds by 45% yearonear to 261.2 crores as on 31st March 2026 11:54 11 minutes, 54 seconds as compared to 170 crores in financial year 2025. 11:59 11 minutes, 59 seconds The growth reflects continued momentum through the year as we expand our client base. 12:07 12 minutes, 7 seconds On the dispersement front, our cumulative disbbursement for the year end March 2026 stood at 142 crores 12:15 12 minutes, 15 seconds reflecting an increase of 43% yearonear compared to financial year FI 2025. 12:23 12 minutes, 23 seconds dispersement growth was healthy even as we were prioritizing asset quality over aggressive expansion. 12:31 12 minutes, 31 seconds A key highlight of the year has been the strong momentum in our secured lending business. A secured disbbursement 12:38 12 minutes, 38 seconds contributed approximately 57% of our total disbbursement in FY2026 compared to 23% in FY 2025. 12:50 12 minutes, 50 seconds As a result, the secured loan group now constitutes around 61% of the total AUM, 12:58 12 minutes, 58 seconds significantly higher than the 18% in our previous year at 2025. 13:05 13 minutes, 5 seconds The shift is deliberate strategy move to build a more resilient and lowrisk portfolio. In line with this, we further 13:14 13 minutes, 14 seconds rationalize unsecured lending across branches, ensuring tighter credit filters and strong portfolio quality going forward. 13:24 13 minutes, 24 seconds Uh moving to the income statement, our total income grew by 85% 13:31 13 minutes, 31 seconds yearonear to 40.1 crores in FI 2026 compared to 21.7 crores in financial year 2025. 13:43 13 minutes, 43 seconds For quarter 4 FI 2026, the total income stood at 12 crores, reflecting a 43% of growth over quarter 4 FI 2025. 13:55 13 minutes, 55 seconds Our net interest income which is income included with fees has doubled more than to 27.6 crores in financial year 2026. 14:06 14 minutes, 6 seconds While that same Q4 financial 2026 came in as 7.5 crores up to 20% on year one year. 14:16 14 minutes, 16 seconds Coming to profitability our profit after tax for financial year 2026 14:22 14 minutes, 22 seconds thanks at 13.4 4 crores compared to 4.9 crores in FI 2025 a growth of 170% which 14:32 14 minutes, 32 seconds is a robust growth that we have catered in the last financial year 14:38 14 minutes, 38 seconds for the quarter grew to 37% of y to 3.5 14:44 14 minutes, 44 seconds crores for finan for the quarter of for fourth quarter fi 2026 14:52 14 minutes, 52 seconds in terms of the yield Our portfolio average yield stood at approximately 15% while spread remained healthy at 7.1%. 15:01 15 minutes, 1 second Reflecting a balanced approach between growth, risk, and profit profitability. 15:07 15 minutes, 7 seconds On assets quality, our net stood at 0.74% in FY 2026 compared to 0.31% FY 2025. 15:19 15 minutes, 19 seconds far better than what the market is performing on the asset content. 15:29 15 minutes, 29 seconds Ladies and gentlemen, the line for Mr. 15:31 15 minutes, 31 seconds Surat has been disconnected. Please stay connected while we join them back. 15:41 15 minutes, 41 seconds Importantly, 16:14 16 minutes, 14 seconds Ladies and gentlemen, the line for Mr. 16:16 16 minutes, 16 seconds Suras has been connected. Over to you, sir. 16:19 16 minutes, 19 seconds Thank you very much. Uh I think sorry for the disruption. Importantly, our credit matrix continues to remain 16:27 16 minutes, 27 seconds significantly strong than typical micro finance benchmark or reinforcing our different positioning. 16:34 16 minutes, 34 seconds From a balance sheet perspective, our net worth is increased to 106 crores as of March 2026 supported by internal 16:43 16 minutes, 43 seconds approvals capital infusion during the year. We maintain a healthy CR ratio of 57.6% 6% 16:52 16 minutes, 52 seconds providing sufficient headroom for further growth. 16:56 16 minutes, 56 seconds Overall, our financial performance of the year reflects a balanced approach towards growth, focusing on scaling the 17:03 17 minutes, 3 seconds business while maintaining asset quality, improving portfolio mix and preserving strong capital adequacy. 17:13 17 minutes, 13 seconds As we move forward, we will continue to prioritize discipline growth, optimize our cost of funds, and further 17:21 17 minutes, 21 seconds strengthen our liability franchises to support the next phase of expansion. 17:27 17 minutes, 27 seconds With that, we conclude our opening remarks and would like to open the floor for question answers. 17:36 17 minutes, 36 seconds Thank you very much. We will now begin with a question and answer session. 17:40 17 minutes, 40 seconds Anyone who wishes to ask a question may press star and then one on the touchstone tele. 17:48 17 minutes, 48 seconds If you wish to remove yourself from the question cube, you may press star and then two. 17:54 17 minutes, 54 seconds Participant, you are requested to use handsets while asking a question. 17:59 17 minutes, 59 seconds Ladies and gentlemen, we will wait for a moment while the question to assembles. 18:08 18 minutes, 8 seconds A reminder to all the participants, you may press star and then one on your touchstone telephone to ask a question. 18:27 18 minutes, 27 seconds We will take the first question from the line of Chen from Shagun Capital. Please go ahead. 18:39 18 minutes, 39 seconds Yeah. Hello. Uh good morning. Uh yes you are. 18:45 18 minutes, 45 seconds Yeah. So my first question is like uh what is the collateral that is uh we against the NS that we 18:53 18 minutes, 53 seconds Okay. And any other questions you have or shall we answer this? Uh we can go one by one. Okay. So basically we take 19:02 19 minutes, 2 seconds an LTV value of between 50 to 60% of a collateral value towards the loan value. 19:08 19 minutes, 8 seconds So technically in a tier 2 city we look at doing a ticket size between 30 to 40 lakhs. So average if I have to give you 19:16 19 minutes, 16 seconds my collateral security value will be anything from a 65 lakhs to 75 lakhs kind of a range. Uh the collateral here is a property. 19:25 19 minutes, 25 seconds It is a residential or commercial property. We do not take anything which is a land or industrial land or no agree land nothing. It is just a constructed 19:33 19 minutes, 33 seconds property. Preference from a customer base is a residential property where we offer a incentive to a customer. We 19:41 19 minutes, 41 seconds lower their interest rate and reduce the PF if we get a residential property as a collateral versus a commercial property 19:48 19 minutes, 48 seconds which is their shop or their whether it is their industrial uh workout place XYZ whatever is available into it. Again are we you know there is a surveacy act. 20:00 20 minutes So have we you know uh recovered any property through that? 20:04 20 minutes, 4 seconds So as is now we are not in any recovery mode. Fortunately our loan book of 90 20:12 20 minutes, 12 seconds days per ratio from a secured loan is about just one loan ticket size which we have already applied. We have already 20:21 20 minutes, 21 seconds taken all legal matters to it. I think so we should be able to liquidate that in the coming next in this coming quarter that just one more 20:29 20 minutes, 29 seconds so that so that is done inhouse or that we out outsource to some lawyers or something so so so we have in-house lawyers as 20:37 20 minutes, 37 seconds well plus we have outsource lawyers as well so when we do a legal technical evaluation is done through a third party no in-house is involved let's say that 20:46 20 minutes, 46 seconds we have to issue any legal notices of nonreayment of these loans that is happening through our in-house loyalty And now let's say for recovery we are 20:55 20 minutes, 55 seconds using our third party agencies as well to help us to recover that amount. 21:01 21 minutes, 1 second Okay sir. And uh the uh you know I saw your PPD and it is mentioning like JG and uh digital loans. So it is I think 21:09 21 minutes, 9 seconds uh micro finance and personal loans only. Yes. 21:14 21 minutes, 14 seconds Yeah. So uh uh what percentage of do you think you will uh take it up to? So we are reducing our entire GLV book. So 21:24 21 minutes, 24 seconds today if I had to give you the percentage point of view 10.5% is my GLV book that consists today from a total 21:31 21 minutes, 31 seconds age of 261 crores. From November month onwards we have stopped dispersing into this into this venture because we are 21:39 21 minutes, 39 seconds focusing on moving our entire books towards MSME secured loan. Apart from that we will have a digital lending 21:46 21 minutes, 46 seconds platform for salaried people. So while a GLV is a woman borrower, we have an 21:53 21 minutes, 53 seconds unorganized borrower versus an organized or a sellite borrower which makes more sense from a risk adequate rational 22:01 22 minutes, 1 second point of view. So the book is getting run down even in GG. So by end of the coming financial year we should have 22:10 22 minutes, 10 seconds around 70% of the book rundown. By end of the next calendar year the 100% GG book would be zero. We will only have 22:17 22 minutes, 17 seconds two products which have been focused of our company which is MS secured lending and digital lending part of it. 22:26 22 minutes, 26 seconds And what percentage of AM will be digital lending? 22:29 22 minutes, 29 seconds 80% of my lending will be in MSN secured% between 15 to 20% will be my digital lending. 22:39 22 minutes, 39 seconds Okay. And uh what what all do we you know require from the customer when we lend through our digital lending platform? I think uh is it is it the 22:46 22 minutes, 46 seconds cash my salary app that you are referring to? 22:50 22 minutes, 50 seconds Cash my salary app is our digital lending platform. Okay. So people can just download this app and fill in all 22:57 22 minutes, 57 seconds the details. It has to be a salary guy with more than 45,000 salary. The verification of that is through an AI 23:04 23 minutes, 4 seconds application which help us to take out their bank statement to review their salaries that is getting credited. Plus 23:12 23 minutes, 12 seconds all of that happens through technology based lending and within it's about in half an hour to 45 minutes with the approval has been passed on to the borrowers. 23:22 23 minutes, 22 seconds Okay. The answer is what will be the you know recovery process in that uh connection process in that because the you are you are doing small ticket 23:30 23 minutes, 30 seconds lending so the recovery will be you know very hard and no so this is this is so so so what we have done is that we have already run 23:38 23 minutes, 38 seconds through this pilot and we see quite a good recovery happening to a sellite customer when we if we have to bifrocate 23:46 23 minutes, 46 seconds today two products which is my JV which is my group lending program versus my 23:53 23 minutes, 53 seconds digital lending program. Here my borrower is more of a salaried guy who is working for any MNC, any bank or any 24:00 24 minutes reputed institution. We have already given a list of institutions that they are working into it. Okay. So majorly it is a proper salaried guy. So we don't 24:09 24 minutes, 9 seconds see a challenge in recovering from that amount because this is far easily available. 24:16 24 minutes, 16 seconds So there is no challenge on that and everything is happening digitally. There is no human intervention. There is a soft collection team that we have 24:23 24 minutes, 23 seconds already hired. When it comes to uh in terms of uh collection there is an overdue account. So we see very recovery 24:31 24 minutes, 31 seconds at very good space. So there is no challenge on that. 24:36 24 minutes, 36 seconds Okay sir. And if I may ask what is the current 0 plus DPD the overall area. 24:42 24 minutes, 42 seconds So if I have to give my 0 plus DPT we stand about close to 2.2 2 of my total area which stand with my 0 plus GPT and 24:50 24 minutes, 50 seconds same by if I reach to 90 days ratio I'm at about close to 65 70 okay last question like what is the 24:59 24 minutes, 59 seconds average tenure in the secure growing book and the 10 average that we derive from 25:06 25 minutes, 6 seconds so average tenure is 48 months to 16 months that is our average tenure of lending and in terms of ROI it's a reducing ROI 25:15 25 minutes, 15 seconds from or 20% to 24% subject to the cash flow, subject to the collateral security value, subject to the kind of an inflow that is there of the borrowers. 25:27 25 minutes, 27 seconds Okay. Thank you. That's it. Thank you very much. 25:32 25 minutes, 32 seconds Thank you. We will take the next question from the line of Dianu from Bank of America Securities. Please go ahead. 25:47 25 minutes, 47 seconds We have lost the current participant. 25:50 25 minutes, 50 seconds Moving to the next participant, we have the question from Akash Sharma, an individual investor. Please go ahead. 25:57 25 minutes, 57 seconds Yeah. Hi sir. Congratulations and good set of numbers. Thank you very much. 26:01 26 minutes, 1 second Uh so I have a few few questions. First of all, um I was seeing that your AUM has increased from 170 crores to around 26:09 26 minutes, 9 seconds 261 crores and we are targeting for 500 and then for 3,000 crores. So just wanted to know like uh how we are planning to achieve that. 26:18 26 minutes, 18 seconds So there are two set of strategy which are happening. First set of strategy if you see my annual disable number for this financial year out has been 147 26:27 26 minutes, 27 seconds crores. Okay, we were earlier having some portion of book and unsecured which we are running down. So it was on 104 26:34 26 minutes, 34 seconds cror book. Today we run down that to 60 crores. Okay. So idea is that we will run down our entire MSN unsecured book and move into MSN secured portfolio. 26:46 26 minutes, 46 seconds Today our branches have the capacity to disbirth on an average per month basis about close to 2 to 2 to 2.5 crores. 26:56 26 minutes, 56 seconds Okay. Since we are in the growth trajectory and we are raising funds through banks and NBFCs, our raw 27:03 27 minutes, 3 seconds material is money. All right. And we see a strong pipeline for this year where we are raising money through lenders about close to 400 to 450 crores. All right. 27:15 27 minutes, 15 seconds And this entire money will be used towards scaling up the business on the borrower side. Right? So our cost to 27:22 27 minutes, 22 seconds efficiencies if I have to give you that number I would let's say that my OPEX cost would be going forward at around 27:31 27 minutes, 31 seconds 2.5 to 2.75 rest is my margin plus my spread that I will make out of my lending borrowers. 27:38 27 minutes, 38 seconds So keeping that in mind in context we are deeply going to penetrate Punjab, Triana, Uttraand and UP northern part of 27:46 27 minutes, 46 seconds Syria have a branch spread of about close to 50 branches by for the year end uh financial year end next year and mid 27:55 27 minutes, 55 seconds of calendar year next year. So we will double our branch numbers that is how we'll penetrate further more into this segment. 28:04 28 minutes, 4 seconds That's that's that's that's what we plan for the current financial year and keeping that registry in mind we see that by FY13 we should touch our 3,000 K of golden AUM number. 28:17 28 minutes, 17 seconds Okay. Uh that helps and uh sir what would be the average AUM per branch? 28:24 28 minutes, 24 seconds So that depends upon the location wise. 28:26 28 minutes, 26 seconds So if I have to give you average amum of any branch will be anything between 10 to 12 crores. So some branches are even lower about let's say that we have 28:35 28 minutes, 35 seconds restricted on the borrower side as well right some branch which is closer to my other larger branch might have a smaller 28:42 28 minutes, 42 seconds AUM right my Vanasi has an AU of 10 crores my go has an AUM of 3 crores it's just 40 kilometers away from the the 28:51 28 minutes, 51 seconds main branch right okay so we've spread out in this way that the collection should not be a challenge what happens 28:57 28 minutes, 57 seconds in a MSN secured loan right people appoint collection agencies or hire collection 29:04 29 minutes, 4 seconds team separately to collect PMIs. While we have moved further of creating a robustic way of collecting money is 29:12 29 minutes, 12 seconds through not only through Natch but allowing our customers once we have our PPI license in place to use our QR code 29:20 29 minutes, 20 seconds to make payments just like payment wallets you see what Google pay and phone pay is today. This gives me access 29:27 29 minutes, 27 seconds towards their bank statements and also gives me to read through how the behavior of a customer is right. So this 29:36 29 minutes, 36 seconds will enhance further for me to make sure the collections efficiency is further more improvised as compared to today. 29:44 29 minutes, 44 seconds Got it. Got it. So and uh you know our average ticket size lies between 35 to 40 lakhs. I believe that it is a very I 29:52 29 minutes, 52 seconds mean good set of numbers compared to other um uh you know small size lenders. 29:58 29 minutes, 58 seconds So just want to know like uh to which kind of businesses are we lending uh to so we are we are lending to a hardware 30:06 30 minutes, 6 seconds guy we are lending to somebody who's running a smaller restaurant who's running a smaller 10 10 rooms hotel we are running to somebody who is onto the 30:15 30 minutes, 15 seconds any kind of an MSE segment he's applying to. There are few lenders which are into the smaller manufacturing of water bottles. They're into manufacturing of 30:24 30 minutes, 24 seconds new small units of you know shampoo sachets in PFT or two cities. So there is immense value over there. 30:31 30 minutes, 31 seconds So mostly I believe that with a 35 to 40 lakh kind of an average ticket size mostly manufacturers or any kind of uh 30:38 30 minutes, 38 seconds we are not doing any lending to any trading company. No real estate no trading. 30:44 30 minutes, 44 seconds Okay got it. And sir you know loan tenure has a huge gap of around one year to around five years. So you know I just 30:53 30 minutes, 53 seconds want to know is there one year you know relevant for the unsecured loans and something like that. 31:00 31 minutes I'll tell you the break up to this is that my MSM secured loans stand between four to five years. If somebody's ready to give me a collateral security worth 31:08 31 minutes, 8 seconds of 100% and I'm giving him LT value of 50 to 60%. So that guy is looking for three, four, five years of a loan take 31:15 31 minutes, 15 seconds obviously right when I say 12 months 12 months whatever we had unsecured loans in the past and to keep the maintaining 31:22 31 minutes, 22 seconds the healthiness of the of the book we keep doing some part of disbburment over there just to maintain the cash flows and collection efficiencies over there 31:30 31 minutes, 30 seconds that is that 12 month segment otherwise from a secured point of view it is always between four to five years you are not going be your beyond 16 months 31:39 31 minutes, 39 seconds at Makes sense sir. And uh sir we have around nine plus lenders. Can you highlight that um some of the name of the lenders if that's fine? 31:49 31 minutes, 49 seconds So we have ICC bank, we have access bank, we have uh you know bank, we have 31:57 31 minutes, 57 seconds LC LC venture debt that has given us money. We have uh lighthouse which has helped us to become cities. We have entity raised through bricks. We have 32:05 32 minutes, 5 seconds entered race through uh incred and few in additional individuals as well. Then we have USA finance, we have 32:12 32 minutes, 12 seconds RA, we have UC finance and there are further more to get onboarded in this coming quarter. 32:20 32 minutes, 20 seconds Got it. Got it sir. And um you know we have uh hefty presence in the northern side which is you know kind of known for 32:28 32 minutes, 28 seconds delinquacies. So just want to know when we are expanding uh so we'll be focused on the northern side only or we will expand towards west and the southern side also. 32:38 32 minutes, 38 seconds So we will not go southern sides very soon. Our focus is that because we belong our head office is based out of zerapur and we both promoters come from 32:48 32 minutes, 48 seconds our north India background right. So we understand the versatility and diversification available over there. 32:54 32 minutes, 54 seconds Right. There are regions which are negative which are negative for our NBSC as well. Okay. So we are not going and focusing on those cities for for 33:03 33 minutes, 3 seconds obviously that is part A. Part B to it is that from north India we would like to expand to the west of India. We are not going to the south so soon. Maybe 33:12 33 minutes, 12 seconds down the line two three years we can think of south but we feel that there is immense uh business which is available and while 33:20 33 minutes, 20 seconds before we go out of our region why not just concentrate itself our own region. 33:26 33 minutes, 26 seconds Got it. Thank you sir. That helps. Thank you very much. Thank you. 33:32 33 minutes, 32 seconds Thank you. A reminder to all the participants, you may press star and then one to ask a question. 33:39 33 minutes, 39 seconds We will take the next question from the line of TPal Singh from Mantan Capital. Please go ahead. Hello sir, I'm audible. 33:48 33 minutes, 48 seconds Yes, you are audible. 33:49 33 minutes, 49 seconds Uh so good afternoon sir. Uh my question is that given the increasing competition in the Indian landing space, what 33:57 33 minutes, 57 seconds differentiate your uh our company from other player in the market, what are the key standard strategic initiative that 34:04 34 minutes, 4 seconds you believe will drive a sustainable uh value creation for shareholders? 34:10 34 minutes, 10 seconds Absolutely. So take us just to answer this question. I think Gorov in his speech mentioned very very categorized 34:17 34 minutes, 17 seconds that we are focusing our focus is not on the race our focus is on the quality right if our focus is on the quality we 34:24 34 minutes, 24 seconds will make sure that we might take time to build a quality book but we will not miss the bus that's the first answer to your question second far most important 34:33 34 minutes, 33 seconds thing is that we have invested uh in technology and getting technology on 34:39 34 minutes, 39 seconds board in an NBSC is far itself a very success story whether you talk about LNG finance you talk about today any of 34:48 34 minutes, 48 seconds these lenders right you see their AI technology whether it's in paj how their approach is and how you are able to make 34:55 34 minutes, 55 seconds sure that your is growing keeping quality and risking parameters in line right so while we should be in the 35:03 35 minutes, 3 seconds coming financial year itself or in the coming quarter we should get the approval for our PPI license right this 35:09 35 minutes, 9 seconds will give edge over all the NBS who are doing traditional lending. 35:15 35 minutes, 15 seconds Why will give an edge for us? Because this will give an access for us to reach out a customer from looking at his bank behavior statement or borrowing 35:24 35 minutes, 24 seconds statement. Right? So that gives me a real sign of risk to be mitigated if there I find if if we found to be having 35:32 35 minutes, 32 seconds some kind of a risk parameters available over there. Second important thing is that that it AI will help me to engage 35:39 35 minutes, 39 seconds further more customer with you know what banks have been doing using today we are sourcing 100% leads from our in-house we 35:47 35 minutes, 47 seconds don't have a DSA model we have not implemented a single DSA till date today rather we don't have opportunity available for any DSA to work around on 35:56 35 minutes, 56 seconds this it is the sales guy now see to go get out and go out in a market and 36:03 36 minutes, 3 seconds acquire a customer right once AI is they are enable to get the PPI uh license my 36:11 36 minutes, 11 seconds AI will give access to all his suppliers all his customer base so the database itself will generate lot of leads in 36:19 36 minutes, 19 seconds house right so that will help why we can grow on the faster mode as compared to our traditional NBFC 36:27 36 minutes, 27 seconds further to it is that we are investing our money in technology to 36:34 36 minutes, 34 seconds make sure my MSE lending also reach to a digital lending platform sooner or later. So yes, that is where we are 36:41 36 minutes, 41 seconds approaching out of it. So this gives a edge over against all other NBFCs or the competitive uh comparatives in the NBC 36:51 36 minutes, 51 seconds side and secondly is that slowly gradually once we are in the low cost of funds that will reflect in our customer 36:59 36 minutes, 59 seconds base as well. So we are not adamant that we'll be uh you know running at a 20 or 37:06 37 minutes, 6 seconds 22% of an ROI. Once we have cheaper funds available which we expect by the end of the financial our cost of will to go drastically down we will have a 37:15 37 minutes, 15 seconds customer base which will be sticky customer base. 37:21 37 minutes, 21 seconds Okay. Okay. Great to hear. You have mentioned that uh your cost of borrowing is going to reduce significantly for the 37:27 37 minutes, 27 seconds in the next uh to next few u few next financial year. So can you define can 37:35 37 minutes, 35 seconds you quantify that how much is going to uh going to reduce and and what is the next three year trajectory. 37:43 37 minutes, 43 seconds So techology we see that we should be able to borrow our net cost of funds anything between 10.5 to 10.25. 25 37:52 37 minutes, 52 seconds right as we mentioned that going forward our office will be between two two and a half so we have a net spread to be maintained and we can lend at 15 16 15% 38:01 38 minutes, 1 second of our customer base and which is a very good credit quality customer base okay okay so great to hear and how do 38:10 38 minutes, 10 seconds you see the and and we don't want to do a transaction more than five years we don't want any mismatch on our balance 38:17 38 minutes, 17 seconds sheet so comparatively other NBSC's which are acquiring customer for 15 years, have money for four years and 38:24 38 minutes, 24 seconds five years and eventually you land up you know further more to raise money because your ALM mismatch is a bigger 38:31 38 minutes, 31 seconds mismatch because the tenure of the loan for the initial customer base is 10 years 12 years 14 years versus what you 38:38 38 minutes, 38 seconds have borrowed at four or five years. So we are strictly going to follow this rule of not going with beyond 16 months. 38:47 38 minutes, 47 seconds This not only help us to reduce the ALM mismatch but also help us to reduce the risk on the longer tenure side. 38:56 38 minutes, 56 seconds Okay. Okay. Great to hear. And one more question sir. How do you see the cost of borrowing in the next two three years? 39:03 39 minutes, 3 seconds Can we see more significant reduction in the cost of borrowing like 8%. Absolutely. 39:08 39 minutes, 8 seconds So so 8% while I may not want to comment right now but yeah we will have significant reduce on the cost of Okay. Okay. It's a great to and best of 39:17 39 minutes, 17 seconds luck for the next financial year. Thank you. 39:22 39 minutes, 22 seconds Thank you. We will take the next question from the line of Disha from Sappire Capital. Please go ahead. 39:30 39 minutes, 30 seconds Hello. Hi Disha. Very good afternoon to you. 39:34 39 minutes, 34 seconds Yes, very good afternoon. Thank you so much for this opportunity sir. So I just want to understand a bit on your side. 39:39 39 minutes, 39 seconds So I I have significantly to 10.3% this year but because we're shifting to around I think 75% plus to the MHME 39:47 39 minutes, 47 seconds secure portfolio. How do we manage to protect our NIMs and what's your guidance for NIMs for this year? 39:55 39 minutes, 55 seconds So there are two ways to look at this number right we have given the mix of basket of product will be one is are my 40:03 40 minutes, 3 seconds digital lending platform which generates about close to 25 24% of an ROI over there and I have a reducing ROI in my uh 40:13 40 minutes, 13 seconds MSN segment right so to our NIM today stands at 10.75% around close to 11% 40:20 40 minutes, 20 seconds right now net interest margin okay if we maintain our 75 to 80% book in my secured lending and my average cost P 40:28 40 minutes, 28 seconds borrowing goes down I keep maintaining my name at the level that we are today I would not say that we'll enhance this to further limit but we'll be able to 40:36 40 minutes, 36 seconds maintain my digital lending platform is today at about close to 24% flat 40:43 40 minutes, 43 seconds interesting okay and that's a shorter 10 year of 6 months right so I have further ahead uh on my limb to make sure that 40:53 40 minutes, 53 seconds both combined average value that I'll be able to create. So this year if we are projected to projections about let's to 41:02 41 minutes, 2 seconds reach about 500 cr of an aum or 550 cr and I double the numbers from here and if I see that 80% is my secured lending 41:10 41 minutes, 10 seconds I'm talking about 400 crores of lending in my secured book about close to 75 to 80 cr 100 crores lending in my unsecured 41:18 41 minutes, 18 seconds book which is basically my digital lending platform. 41:22 41 minutes, 22 seconds So if we maintain this numbers I think so we should be able to average out our name to the numbers that we have today and maybe we could further enhance 41:30 41 minutes, 30 seconds depending upon our cost of fund going further down and any so what sort of cost of fund are you trying for this year? 41:41 41 minutes, 41 seconds So our current cost of fund is right now about close to 13 to 14%. Right? We want to take down to between 11 to 12%. 41:52 41 minutes, 52 seconds to 11 to 12%. Yes, that's what we want to. 41:58 41 minutes, 58 seconds Okay. And we have we once we have public sector banks also onboarded, we should get an access of a 10% kind of an RO as well. 42:06 42 minutes, 6 seconds Okay. Okay. That's good to hear sir. And so this 75% of your loan book and 15 to 20% digital lending this is like a sustainable mix going. 42:15 42 minutes, 15 seconds Yeah, absolutely sustainable. We find the credit quality and the credit requirements in our country growing. Our country is absolutely focusing on MSN as 42:23 42 minutes, 23 seconds a segment. This year also our finance minister has budgeted about five lakhs towards towards MSM lending. Right? So 42:31 42 minutes, 31 seconds that means there is immense value that a medium borrower still is alive and is wanting to do business in our country. 42:38 42 minutes, 38 seconds Right? Further to it, there is also a change in the borrower happening in the digital lending platform. Today nobody 42:46 42 minutes, 46 seconds wants to go back to a bank go to a branch and apply for a loan of one lakh two lakh rupees. You might want to just go and take open one of the apps that 42:54 42 minutes, 54 seconds are available and uh just go for a digital borrow without any hassle. In 10 15 minutes we receive an approval. The entire signing happens digitally. 43:04 43 minutes, 4 seconds Everything is happening digitally. So so as in India we are moving to a digital India. So today if you go to a vendor 43:12 43 minutes, 12 seconds you see there is a QR code available. If you go to anar panala today even he has a QR code which we never thought in year 43:18 43 minutes, 18 seconds 2020 right. So that means there is change which is happening robustly and we find this change is a very good 43:26 43 minutes, 26 seconds change from a salite personal race that we want to focus on the digital lending part 43:33 43 minutes, 33 seconds and salite customer majorly is a guy who would have a house will have a car and will definitely would won't wouldn't 43:41 43 minutes, 41 seconds want to have any credit impact of towards any non-payment of his loan. 43:46 43 minutes, 46 seconds Right? So keeping that in mind that's how we focused on moving on to that digital part also very strongly. 43:57 43 minutes, 57 seconds Okay that's very clear sir and so on this geographical expansion you mentioned we want to uh deepen our presence in existing markets but you're 44:04 44 minutes, 4 seconds also looking at some new marks. So could you elaborate a bit more on what markets are you targeting and will we get the similar competitive edge that we have in 44:11 44 minutes, 11 seconds these markets vis the new markets that will enter? So if I have to give you a number uh tier 2 city today contributes 44:21 44 minutes, 21 seconds to the very larger growth of the retail uh growth story of our India if I have to give you okay tier 2 city still 44:29 44 minutes, 29 seconds contributes about 60 to 64% of my retail growth in our country right now clearly city comprises of what manufacturer a 44:38 44 minutes, 38 seconds trader agriculturalist a farmer or a small MSE segment borrower 44:45 44 minutes, 45 seconds or SN segment borrowers right so if we keep focusing on these parameters we are very very sure that market is immense 44:53 44 minutes, 53 seconds available everybody is expanding but it is the way that you want to expand in region of Punjab Hana and Uttan this 45:02 45 minutes, 2 seconds is our hometown we are just let's say 400 kilometers within our radius to eat anywhere right so our approach is that 45:09 45 minutes, 9 seconds if we are able to penetrate further and have better branch location as compared to our competitive is NBSC's or banks we 45:17 45 minutes, 17 seconds should have an edge over on this. Now second part and most important to answer is that which other region do you say? 45:23 45 minutes, 23 seconds We see there is a good belt of UP and people eastern part of it where there are small small manufacturers 45:31 45 minutes, 31 seconds and we have visited those places personally and uh did a due diligence and we find that going forward this 45:38 45 minutes, 38 seconds should be our region of penetration when it come to a customer base acquisition and the quality of employment that we 45:48 45 minutes, 48 seconds can create is always win-win situation to create a qualitative and quantitative numbers, right? If we are able to create 45:56 45 minutes, 56 seconds a qualitative number, we will have quantitive number following the truth as well. 46:04 46 minutes, 4 seconds Yes, that's very clear. Thank you so much and wishing you all the best. Thank you. Thank you very much. 46:10 46 minutes, 10 seconds Thank you. A reminder to all the participants, you may press star and then one to ask a question. 46:17 46 minutes, 17 seconds We will take the next question from the line of Sha from Money Wises. Please go ahead. Yeah. Hi, am I audible? 46:26 46 minutes, 26 seconds Yes, you are amazing. 46:27 46 minutes, 27 seconds Yeah. So, I just had one question on the asset quality. If we compare FY25 and FYI 26, we can see NCA is swelling a 46:36 46 minutes, 36 seconds bit. So, if you could throw some color on that and also on the capital adequacy on similar lines, we have had a 46:42 46 minutes, 42 seconds decrease. So, if you could just throw some color on that sir. 46:46 46 minutes, 46 seconds So, I'll give you the perspective. So if you see the standard gross NPA and net 46:53 46 minutes, 53 seconds NPA in the uh parameters that we were working earlier versus now. Okay. When we working last year, these were all majorly loans between 12 to 18 months. 47:03 47 minutes, 3 seconds The maturity was shorter durations and there was the impact of having certain portion of micr finance lending as well which is a GLG right. Okay. 47:14 47 minutes, 14 seconds going forward since now we are moving to a secured kind of a lending right my 90 days par is about close to 40 50 lakh 50 47:22 47 minutes, 22 seconds 60 lakhs I think so probably and my uh 0 to 30-day par is about close to 22 2.2 2 crores. Okay. 47:30 47 minutes, 30 seconds Okay. 47:30 47 minutes, 30 seconds Which is just a just just less than a 1% of my total AM today. So there are two 47:37 47 minutes, 37 seconds things to it. Right. Till there was a kisan you know there was a micro finance there was a kjami which happened in 47:46 47 minutes, 46 seconds Punjab in Hana. There were other issues which happened in Indana. So there was a bit which NK that rose in our book as well which is witnesses in our balance sheet as well. 47:56 47 minutes, 56 seconds Right. Okay. Keeping that context in mind is then when this second financial year onwards if the half year onwards 48:02 48 minutes, 2 seconds after the September meet we decided that we are not going further of dispersing anything into GG department rather we 48:10 48 minutes, 10 seconds turn down this book and move into a credit rated better borrower is a sell right borrow so we are discontinuing JG 48:18 48 minutes, 18 seconds is it no we are not we discontinuing completely JG absolutely we have not done a single dispersion from the month of November onwards 48:26 48 minutes, 26 seconds And we don't do we don't intend to do a single penny dispersion over this. There is only collection happening right now. Okay. 48:33 48 minutes, 33 seconds So second far more important thing is that if you look at the average industry data right with the segment as an AM we 48:42 48 minutes, 42 seconds will see is around you know 1.5 1.6 kind of a number. We are far better at 76. So we have an edge over into it. 48:51 48 minutes, 51 seconds Right. Right. Plus major portfolio now is MSM secured. Right. 48:56 48 minutes, 56 seconds So there is further more comfort that the recovery of that any particular loan is easily available since our LT value is 50%. 49:06 49 minutes, 6 seconds If you have given you a loan of 40 lakh rupees and taken a one crown property of yours right you will make sure any dead end to 49:14 49 minutes, 14 seconds you know all the unstone terms well making sure that you can repay us back whether through a sale of a property or sale of any other asset. Right. 49:24 49 minutes, 24 seconds Correct. Yeah. 49:25 49 minutes, 25 seconds So, so this will improvise or maybe within this range which is very very healthy. So at 75.8 eight and are kind 49:32 49 minutes, 32 seconds of an opex and everything it is a very healthy healthy number maybe compared to last year it might be increased but if you look at to the volume of it as well 49:41 49 minutes, 41 seconds why I asked this because it was.3 and from.3 to 7 so it's more than a 50% jump 49:50 49 minutes, 50 seconds absolutely it is only because when we realized and we demonstrated that this is a segment that we want to move away and let's just focus on a secured 49:57 49 minutes, 57 seconds segment and as well as secured on a digital lending see the borrow borrower over there is a salary borrower as I already explained earlier right the guy 50:05 50 minutes, 5 seconds will have a housing loan he'll have a car loan he will never want to default your 10,000 8,000 5,000 of EMI to screw up his any credibility so that 50:14 50 minutes, 14 seconds he cannot borrow further or he has impact on his credit score for his existing loans but a salaried guy always has a salary 50:23 50 minutes, 23 seconds to pay your dues right and not uncertain than just like a GLG book or a or a self-employed book right 50:32 50 minutes, 32 seconds a self-employed borrower has no may have a deeper pockets at point in time but at point in time may not even have a money to pay your EMI right that's the over 50:41 50 minutes, 41 seconds there right right so keeping that in mind we are only working with sell right customers okay and these are our our pilot has been 50:50 50 minutes, 50 seconds very good we are doing digitally very well and we find that the kind of borrower getting on board is very very 50:57 50 minutes, 57 seconds good we have somebody who's working with MNC from the pharmacies. 51:03 51 minutes, 3 seconds uh how do we do is that a borrower has to put his official email id okay will go to his official email id which will 51:10 51 minutes, 10 seconds verify which will do a verification right right quality of borrower is improvising so it's far better than 51:19 51 minutes, 19 seconds okay okay sir sir uh if you could just uh you know help me with the collection efficiencies and if you could also just help me whether there has been any 51:28 51 minutes, 28 seconds scenario wherein someone has defaulted and how are we mitigating ourselves from Right. 51:33 51 minutes, 33 seconds So from a collection efficiency point of view we are around today 95 to 96% of collection efficiency if a zero month is 51:41 51 minutes, 41 seconds considered. If a zero plus month is considered I'm at 97 98%. 51:46 51 minutes, 46 seconds That is my collection efficiency from a collection efficiency point of view across segments from a across segments across segments. Right? 51:53 51 minutes, 53 seconds Okay. Now if I have to give you that uh how do uh what has impacted somebody who's not paid right obviously there are 52:01 52 minutes, 1 second only two ways that you can recover one is obviously through a legal mode or through a recovery mode right right 52:08 52 minutes, 8 seconds legal inhouse we have as I already explained we have in-house lawyers so we are not out any lawyers we have rather kept in house so that things are in our 52:16 52 minutes, 16 seconds control from that point and when it comes to when it comes to uh selection collection will happen at the branch 52:24 52 minutes, 24 seconds level. The sales guy himself is responsible for that collection. Okay. Have we faced such a situation? 52:30 52 minutes, 30 seconds Are we you know pursuing any legal action against the default or are we you know there are two cases that we are following. So there is a liquidation of 52:39 52 minutes, 39 seconds assets on them in next maybe 50 to 60 days in this quarter itself. Okay. Okay. 52:45 52 minutes, 45 seconds But then liquidation is happening. the client is trying to make sure that he's able to sell the property or else comes standard and we can go ahead and uh you 52:53 52 minutes, 53 seconds know liquidate that right so I see what happens in a in a tier 2 borrow still today there is a social impact 53:01 53 minutes, 1 second pressure on a borrowers yes I'll give an example today we are working around let's say 53:10 53 minutes, 10 seconds right now the city has harmony it has about what 800 900 people let's say Right and among that 8 900 people if you 53:19 53 minutes, 19 seconds have a liquidation right then there is a social impact as well that you have not paid your EMI there's somebody coming to collect your EMI so that social impact 53:27 53 minutes, 27 seconds is still available in a tier 2 city versus a tier one but tier one guy is less bothered he said okay I defaulted 5 doesn't matter I'll default further 53:36 53 minutes, 36 seconds three cr it's okay to me I always have to go to NC what I can do right a year two borrower he thinks that okay 53:44 53 minutes, 44 seconds if I lose my assets is the comes today and BFC comes in and liquidate my assets. So one is that obviously I lose 53:51 53 minutes, 51 seconds my assets. Second is that I lose my social impact you know right within the vicinity. 53:57 53 minutes, 57 seconds So so as I mentioned we are always focusing on having a residential as the primary collateral unless an under 54:05 54 minutes, 5 seconds we give benefits to the customer of having 50% reduce on charges reducing ROI for that guy. So because that is more comforting from a lender's point of 54:14 54 minutes, 14 seconds view, right? Okay. Yeah. 54:17 54 minutes, 17 seconds So I just missed your answer on cost of funds. If uh you could just come. 54:22 54 minutes, 22 seconds So currently it is between 13 to 14% is our cost of funds. 54:26 54 minutes, 26 seconds Okay. Okay. And it can be uh it can have a impact of coming down also or are we comfortable with? Obviously we are we 54:34 54 minutes, 34 seconds are no no we are we are wanting to see our idea is that if today my borrower is giving me 20% ROI I'm borrowing at 12 or 54:42 54 minutes, 42 seconds 13 and I having a 2% or 2 and a half% of I'm still making my spread of three three and a half watches right right yeah 54:49 54 minutes, 49 seconds what we want to do is that we want to reach to a stage where my borrowing goes to 10 10 and a half or 11%. 54:55 54 minutes, 55 seconds This 2% arbitrage that I want to pass on to the customer. 55:00 55 minutes Okay. So your quality customer can get onboarded rather than you having any risk on that. Right. 55:08 55 minutes, 8 seconds So that is ourmental decision on that. 55:10 55 minutes, 10 seconds So in I mean obviously as a ballpark in how many years do you plan to achieve that since because you are moving 55:17 55 minutes, 17 seconds complete to a secured this thing. So not more than 12 months. Not not more than okay sir. Thank you. I'll join that. 55:27 55 minutes, 27 seconds Thank you. Yeah. Thank you very much. Pleasure. 55:34 55 minutes, 34 seconds Thank you very much ladies and gentlemen. That was the last question for today and with that concludes the question and answer session. I now hand 55:43 55 minutes, 43 seconds the conference over to Mr. Gor Kumar Abroad for the closing comments. Thank you and over to you sir. 55:51 55 minutes, 51 seconds Yeah, thank you very much for such a nice interactive question and answer session. At the closing, I would like to 55:59 55 minutes, 59 seconds emphasize that the market opportunity is immense and we are well positioned to leverage our strength 56:09 56 minutes, 9 seconds to capitalize on those opportunity. Our PT key focus area will be expanding the digital landing and secured MS portfolio 56:17 56 minutes, 17 seconds while using AI and technology to make process more efficient. 56:23 56 minutes, 23 seconds We remain focused on generating sustainable value for all these stakeholders who are already existing stakeholders and who are our projected 56:32 56 minutes, 32 seconds stakeholders and once again thank you for taking the time to join us in the call today and look forward to interacting with you all in the future again. Thanks Lord. Thank you very much. 56:44 56 minutes, 44 seconds Thank you members of the management on behalf of Regency Limited that concludes this conference. Thank you all for 56:51 56 minutes, 51 seconds joining with us today and you may now disconnect your lights. Thank you.