Suryoday Small Finance Bank Ltd — Q4 FY26

Suryoday Small Finance Bank Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=6ZsfD1gHOjY Published: 5 days ago

0:00 industry. The year was characterized by tighter underwriting, elevated credit costs at the beginning of the year and a sharper focus on portfolio quality 0:08 8 seconds across the sector. While the challenges continued during the years, we have started seeing gradual improvement in collections, borrower behavior and 0:16 16 seconds overall business momentum over the past few months. The fourth quarter in particular has been encouraging for the bank. On the intrusive finance side, 0:23 23 seconds dispersements have largely returned to earlier run rates of rupees 500 crores per month of dispersements while slippages reduced meaningfully to 0:31 31 seconds approximately 74 crores from 116 crores in the previous quarter. Collection efficiency also continue to improve with 0:38 38 seconds the current book for inclusive finance portfolio inching towards 99.7%. 0:43 43 seconds As highlighted earlier, our strategic shift from the JLG model towards individual lending continues to gain traction. Importantly, close to 99% of 0:52 52 seconds the inclusive finance portfolio remains covered under the CGFMU scheme providing strong capital protection during periods 0:59 59 seconds of unforeseen industry stress. The CGFMEU initiative has played a significant role during the stress cycle and has provided mitigation of 1:07 1 minute, 7 seconds approximately rup 650 crores in terms of P&L impact. The car loan dispersements during FI26 remain healthy supported by 1:16 1 minute, 16 seconds continued traction in new to bank customers. On the retail asset frontment, momentum across commercial vehicle and mortgages continue during 1:23 1 minute, 23 seconds the quarter. The commercial vehicles finance portfolio grew from rupees,36 crores in March 2025 to rupees 1,819 1:33 1 minute, 33 seconds crores in March 2026, registering healthy year-on-year growth of 36%. 1:38 1 minute, 38 seconds collection efficiency and asset quality in the portfolio remain stable during the years. Our focus continues to remain on calibrated expansion across secured 1:46 1 minute, 46 seconds retail asset segments while selectively scaling construction equipment financing. Our mortgage book including micro home loan portfolio in expanded 1:54 1 minute, 54 seconds from rupes 2,187 crores in March 2025 to rupees 3,3 crores as of March 26 growing 2:02 2 minutes, 2 seconds by 38% yearonear. The strategy of focusing cash flow based underwriting continues to deliver steady and sustainable growth. Asset quality trends 2:11 2 minutes, 11 seconds are gradually steing. As of March 2026, our G&P ratio stood at 6.5%. The CGFM cover continues to play a critical role 2:20 2 minutes, 20 seconds in safeguarding the bank's balance sheet with the 100% claim success rate from eligible portfolio since inception. As of March 26, GNPA was rupees 864 crores. 2:31 2 minutes, 31 seconds NNPA was rupes 542 crores against which rupes 58 cr is receable from cgfmme. 2:39 2 minutes, 39 seconds On the liability side, our deposits expanded to rups 13,994 crores as of March 2026 reflecting a year-on-year growth of 32.3% from rups 10,580 crores. 2:51 2 minutes, 51 seconds While deposit growth remained below earlier guidance, it remained aligned with the pace of nonp advanc growth. 2:57 2 minutes, 57 seconds Retail deposits continue to strengthen with their share improving to 86%. Our kasa ratios stood at 22.6% 3:05 3 minutes, 5 seconds underscoring improving deposit granularity and franchise depth. Digital continues to be a key growth driver for our bank. Digitally sourced deposit 3:14 3 minutes, 14 seconds continue to contribute meaningfully to incremental deposit accretion and are gaining momentum enabling us to acquire customers at significantly lower 3:22 3 minutes, 22 seconds acquisition costs and with high stability. On the digital asset side, we believe credit on UPA has the potential to become an important customer 3:30 3 minutes, 30 seconds acquiring engine for our bank. We are seeing strong traction in the segment with more than 90% of the customers onboarded through this platform having 3:38 3 minutes, 38 seconds civil scores about 725 reflecting the quality of the customer franchise being built along with the secured credit 3:45 3 minutes, 45 seconds cards, digital MSM loans and digital deposits. These offerings are helping us build a fully integrated digital banking ecosystem. We now have a pre-qualified 3:53 3 minutes, 53 seconds base of customer across these digital products creating a very strong opportunity for future cross-ell and deeper customer engagement. Moving to 4:01 4 minutes, 1 second our financial performance, net total income for FI26 increased by 10.2% yearonear from rups,323 4:09 4 minutes, 9 seconds crores to rupes,458 crores. Profit after tax for the year stood at rupes 152 crores versus rups 4:17 4 minutes, 17 seconds 115 crores last year. Our bank continues to maintain strong capital adequacy ratio of 20.5% well above the regulator 4:24 4 minutes, 24 seconds requirement of 15% providing adequate headroom for future growth overall with a largely CGFM covered and secured book a growing base of granular retail assets 4:33 4 minutes, 33 seconds across EVs mortgages and MHL a strengthening deposit franches and a robust digital infrastructure we believe Suryoda is firmly on the right path to 4:42 4 minutes, 42 seconds building a resilient long-term institution many of the strategic initiatives undertaken over the past few quarters including the Transition from 4:49 4 minutes, 49 seconds JLG to VCAST loans and the buildout of a digital asset ecosystem anchored around products such as credit on UPI, secured 4:56 4 minutes, 56 seconds cards and digital deposits are now beginning to show results. With the growth momentum coupled with reception credit process, improvement in cost 5:03 5 minutes, 3 seconds efficiency and digital uptake, we believe FI27 will be year of building momentum and consistency setting the 5:10 5 minutes, 10 seconds stage for healthier and consistent growth and profitability. Thank you for your time. We'll now be happy to take your questions. Over to you. 5:20 5 minutes, 20 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 5:28 5 minutes, 28 seconds star and then one on the touchstone telephone. 5:32 5 minutes, 32 seconds If you wish to remove yourself from the question queue, you may press star and then two. Participant, you are requested to use handsets while asking a question. 5:43 5 minutes, 43 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 5:51 5 minutes, 51 seconds A reminder to all, you may press star and then one to ask a question. 6:09 6 minutes, 9 seconds We will take the first question from the line of Sukrit D. Patel from Eyesight Fentrate Private Limited. Please go ahead. 6:16 6 minutes, 16 seconds Good morning team. I have two questions. 6:18 6 minutes, 18 seconds My first question to Mr. uh Ramachandran is in your uh point of view, how is uh the bank preparing to capture evolving 6:26 6 minutes, 26 seconds demand in financial in uh in financial inclusions and retail lending while thoughtfully addressing challenges such 6:34 6 minutes, 34 seconds as regulatory changes, credit risk and uh competitive pressures and what strategic levers uh will you be putting 6:43 6 minutes, 43 seconds into place that would be differentiating the bank in the coming quarters? That's my first question. I'll have a second question after this. Thank you. 6:50 6 minutes, 50 seconds Thank you. So we had built our inclusive finance portfolio around JG earlier and as we saw that the customers are 6:57 6 minutes, 57 seconds graduating and have taken two or three segments which is around 60 70% of the overall customer base of micro finance industry we start we introduced vikas 7:06 7 minutes, 6 seconds loan is an individual loan. What the individual loan does is in terms of an underwriting at the individual level broadly and most importantly in terms of 7:14 7 minutes, 14 seconds having a customer relationship which is dependent on on the customer behavior repayment and their economic growth. So we currently have 75% of our overall 7:22 7 minutes, 22 seconds portfolio in inclusive finance and individual loan and that's growing at a healthy rate of around 40 45% year on year. Th this base foundation which we 7:32 7 minutes, 32 seconds built we have started kind of know buying products I would say rather than selling products to the customer in terms of PMJ PMSPY apart from the usual 7:40 7 minutes, 40 seconds credit life which cover comes with the loan on an optional basis. These customers are not only micr finance customer which would have been the case 7:47 7 minutes, 47 seconds about 10 years back. They are graduating themselves to micro home loans, microlab two wheelers, used cars and we have introduce all these products over a 7:55 7 minutes, 55 seconds period of time and what we really expecting this is not to really do a full-fledged scale immediately but keep introducing and which we're fairly 8:03 8 minutes, 3 seconds confident that we'll guard the customer with multi-products not only on the asset side but also on the liability side. So this is a broadly in terms of 8:10 8 minutes, 10 seconds our inclusiveness and the rest of the portfolio which are also retail which is mortgages and CV as you would see both of Thank you. My my second question to Mr. 8:21 8 minutes, 21 seconds Uh Kaneska is uh as the bank continues to benefit from growth in deposits and lending, how are you prioritizing 8:30 8 minutes, 30 seconds capital allocation between branch expansion, technology investments and shareholder returns and what long-term 8:37 8 minutes, 37 seconds cost efficiencies are being uh put in place to safeguard margins amid rising funding and compliance cost. Thank you. 8:47 8 minutes, 47 seconds Yeah, as you may be aware at this particular point in time our capital adequacy is about 20%. So we have a bit 8:54 8 minutes, 54 seconds of a head room and cushion and that certainly helps us uh in terms of capital allocation. I think um you know 9:02 9 minutes, 2 seconds uh first obviously to the banking book, second uh to the expansion and to ensure that you know we are able to scale from 9:09 9 minutes, 9 seconds here on uh the operating leverage becomes extremely important for us and in the last two years especially we have 9:18 9 minutes, 18 seconds consciously ensured that our corporate headcount and corporate costs are muted and we are not growing the headcount 9:25 9 minutes, 25 seconds there. Most of our headcount additions are on the front line line of business functions and our branch expansions are 9:33 9 minutes, 33 seconds also uh you know extremely rationalized and economical. Uh we uh we focus on 9:41 9 minutes, 41 seconds having branches of uh you know realistic costing and not you know very fashionable costing and that ensures 9:49 9 minutes, 49 seconds that uh we are able to operate you know go live with our branches at the earliest and get working. 9:57 9 minutes, 57 seconds Thank you and best wishes. Thank you. 10:03 10 minutes, 3 seconds Thank you. We will take the next question from the line of Selles Kanani from Asian market securities. Please go ahead. Uh 10:12 10 minutes, 12 seconds good morning everyone and congratulations on good performance sir. 10:15 10 minutes, 15 seconds Uh the slippages numbers were quite heartening in line with what we have been guiding couple of quarters back. Uh so my question is slippages on the RA 10:24 10 minutes, 24 seconds book. Uh that decline in RA bookages seems to little minimal right from 39 crores in the third quarter to 32 10:31 10 minutes, 31 seconds crores. So uh my question is uh even in the strongest of quarter in the year that is fourth quarter uh it is nearing 10:39 10 minutes, 39 seconds 1.8% of our book. So how should we think about this number on a steady state basis or this is the uh uh this is the 10:48 10 minutes, 48 seconds number we should go with given that the yield what we are getting from this book uh I think at this point in time there 10:56 10 minutes, 56 seconds are uh two focus areas for us. So if you look at the commercial vehicle portfolio there is one localized issue in the 11:04 11 minutes, 4 seconds state of Orisa which we are trying to address even as we speak and large part of it is contained. Uh apart from that 11:12 11 minutes, 12 seconds if you look at the CV portfolio X Orisa it's possibly one of the best in the industry far better than the industry standards. When it comes to mortgage 11:21 11 minutes, 21 seconds again uh we now have a mix of uh you know uh deal sizes above 2 crores and uh 11:29 11 minutes, 29 seconds in in deal sizes in the range of 50 lakh to up to 2 crores. There are a couple of slippages on on the high ticket cases 11:37 11 minutes, 37 seconds which we are currently in the process of uh resolving and getting resolutions uh through surface. So over the next two 11:45 11 minutes, 45 seconds quarters we see that uh our PAR numbers for these two headline uh secured asset businesses will come down. 11:56 11 minutes, 56 seconds So how should we think about the steady state number over in this RA book because if I I am incrementally getting from you and from other peer set as well 12:04 12 minutes, 4 seconds that if down so how should we think about RA in terms of second half when the things normalize at CV and mortgage level. 12:16 12 minutes, 16 seconds I I would look at uh anywhere between uh you know uh one and a quarter uh percent 12:24 12 minutes, 24 seconds for the portfolio overall uh put together I the whole book 12:32 12 minutes, 32 seconds yes the retail asset entirely yeah book total book you're saying 12:39 12 minutes, 39 seconds okay very nice uh so my second question was with respect to uh digital liability franchise. So that seems to be 12:48 12 minutes, 48 seconds significant momentum uh incremental deposit shares has been increasing. So how should we anticipate this shift 12:54 12 minutes, 54 seconds towards uh digital sourcing uh to impact our opex and should we give some qualitative benefits coming out of this channel. 13:05 13 minutes, 5 seconds Sorry to interrupt in sorry to interrupt in between sir. Uh sish I was I would request you to kindly self mute your line as there is a background noise. 13:13 13 minutes, 13 seconds Sure. Thank you. 13:17 13 minutes, 17 seconds Digital we focused on digital deposit much much ahead in terms of others coming on board. So we currently see a 13:25 13 minutes, 25 seconds traction which is around closer to 50% of our incremental deposits which is completely granular average ticket size of around 1.25 lakhs constituting at 13:32 13 minutes, 32 seconds least two deposits on an average per customer. So which mean the customer test the platform and see the convenience in terms of both booking as well as in terms of withdrawing. In a 13:40 13 minutes, 40 seconds behavioral pattern what we see is that they come in with a smaller deposit try even pre-closing it and once that experience is comfortable or customer 13:49 13 minutes, 49 seconds experience is good then they start increasing the deposit and what you have seen is an average is around 1.2 lakhs. 13:54 13 minutes, 54 seconds The cost of acquiring is substantial lower than in physical channels. We'll still continue to have lots of physical branches in presence from a tough point 14:02 14 minutes, 2 seconds of view. But the sourcing even organically through our own platform and through other partners' platform will constitute a reasonable portion and as 14:10 14 minutes, 10 seconds long as it is granular and as long as the profile of the customers are good quality which is what we see even from their behavioral pattern we would like 14:17 14 minutes, 17 seconds to focus on it but however what we will take care is not have a dependency on one or two platforms alone. That's why they present now quite a few platforms 14:25 14 minutes, 25 seconds and looks like this will be the way to grow in terms of granular deposits and the next big thing that we need to build on that in terms of what other products 14:33 14 minutes, 33 seconds can we cost the customer buy for the customer that's a phase that we'll be entering into this year and onwards 14:44 14 minutes, 44 seconds anything the savings with respect to opex over here because I'm assuming that this this uh uh this channel should be 14:52 14 minutes, 52 seconds uh cheaper in terms of garnering deposits. 14:57 14 minutes, 57 seconds Yeah, at this particular point in time uh you know the way the arrangements are in place this uh uh this works out to be 15:05 15 minutes, 5 seconds relatively economical. So we will continue to double down on this. I think the digital deposit channel has been one 15:12 15 minutes, 12 seconds of our success stories and uh it will continue to be a you know significant contributor to the deposit inflows. 15:20 15 minutes, 20 seconds Right? If you look at things to as they think stand today about 50% of our net incremental flows are coming from the 15:28 15 minutes, 28 seconds digital channel and that will continue for this year as well. 15:35 15 minutes, 35 seconds Fair enough. Uh just one last question from my side. Uh in terms of CCA new claim uh what can we expect in FI27 uh in first half and second half? 15:46 15 minutes, 46 seconds I think uh for uh this year we will have uh three cohorts which will qualify for claims in this current financial year. 15:56 15 minutes, 56 seconds At this particular point in time, we are looking at the first cohort uh that is to be claimed uh somewhere in Q1. All 16:04 16 minutes, 4 seconds things going well and u overall I think we will be claiming in the region of u you know 450 to 550 crores. 16:18 16 minutes, 18 seconds Thanks a lot. Uh best of luck to the team and uh congratulations. Thanks. Thanks. 16:26 16 minutes, 26 seconds Thank you. We will take the next question from the line of Sla from Paris Investment. Please go ahead. 16:34 16 minutes, 34 seconds Hi Dean, good morning and congrats on a very good set of number. Uh sir, we are guiding for 1.2% ROA for this June 16:43 16 minutes, 43 seconds quarter and then gradually increasing to 1.6% by Q4 of this year. So how confident are we to achieve this target? 16:51 16 minutes, 51 seconds Because Q4 being the strongest quarter, we have done ROI of 1.1%. And now for June, we are guiding for 1.2%. 17:02 17 minutes, 2 seconds Right? So uh I think a couple of things come into play in Q1. So you know the uh first is that the paying book base 17:10 17 minutes, 10 seconds increases for Q1 visa v what we had in Q4, right? 17:15 17 minutes, 15 seconds uh plus also the fact that uh with our hopefully you know all things going well and our CGF paying claim going through 17:23 17 minutes, 23 seconds uh our paying book as a percentage of the total book will increase because the impaired book will go off. So at this 17:30 17 minutes, 30 seconds particular point in time I I think uh 1.2 is quite achievable. Uh you would also need to keep in mind that in Q1 is 17:38 17 minutes, 38 seconds typically the time when you have most of the PSLC sales. So to that extent um you 17:45 17 minutes, 45 seconds know a 1.2 ROA in Q1 visav 1.1 in Q4 this year uh shouldn't be a challenge. 17:54 17 minutes, 54 seconds Okay. Okay. And on the slippages also our slippages have reduced uh from 1 155 18:01 18 minutes, 1 second crores in Q3 to 106 crores in Q4. So how do we see this numbers going forward? 18:07 18 minutes, 7 seconds Can we see further downside in coming quarters? 18:11 18 minutes, 11 seconds Yes. um uh we would be targeting somewhere anywhere between you know u 75 to 90 crores as a whole for the bank um 18:20 18 minutes, 20 seconds on a quarteronquarter basis right so that will be the kind of target that we'll be working on for the entire banking book as a whole 18:28 18 minutes, 28 seconds okay so from 106 crores we are expecting 75 to 90 crores yeah okay 18:37 18 minutes, 37 seconds and on the CGFMU I mean I think you answered to the previous participant. 18:42 18 minutes, 42 seconds But for Q1, how much amount are we going to claim claim for CDFMU we will program that as of now around 18:50 18 minutes, 50 seconds 510 cr is claimable with of which around 28 is claimable only in the next year as we speak. So around 450 cr we will time 18:58 18 minutes, 58 seconds it out likely that quite a bit of that will be in Q1. We are ready to really decide in terms of whether we will claim in Q1 or we'll choose to claim in Q2. 19:05 19 minutes, 5 seconds But as Casey mentioned there are three CO cohorts. So we have the flexibility in terms of choosing which cohort we want to kind of claim during the first quarter. 19:15 19 minutes, 15 seconds Okay. But the major portion would be in Q1 or Q2 one of this. 19:21 19 minutes, 21 seconds Okay. Okay. And uh if may I ask one more question? Sure. 19:27 19 minutes, 27 seconds Yeah. So basically our cost to income uh what would be our guidance because at 73% we are still very high. 19:37 19 minutes, 37 seconds 73% includes the premium which we pay on CGFMU. 19:41 19 minutes, 41 seconds Okay. So that's also computed in the cost. We don't take it separately as a credit cost. The accounting wise you do that or two Casey. 19:49 19 minutes, 49 seconds Yeah. I think uh on a full year basis in the coming year uh we will be targeting somewhere around 67 to 68%. So u the goal is to come below 70 for sure. 20:02 20 minutes, 2 seconds Okay. And towards the uh CGFMU cover, how much are we going to spend for this year? Because I think quarter uh every quarter we are spending around 23 crores as of now. 20:15 20 minutes, 15 seconds Um it will be in the range of around 110 crores. Okay. Okay. Uh that's it from my side. 20:23 20 minutes, 23 seconds Thank you and all the best. 20:28 20 minutes, 28 seconds Thank you. We will take the next participant. We will take the next question from the line of Sabrancho Mishra from Philip Capital. Please go ahead. 20:38 20 minutes, 38 seconds Uh hi, good morning. Uh thank you for the opportunity. Um the uh question is around the credit on UBIA. What is the 20:46 20 minutes, 46 seconds monthly dispersement that we are seeing on this particular uh product and uh 20:52 20 minutes, 52 seconds what are what is the FEMI rate here? uh also uh how do we uh look at this in 21:00 21 minutes terms of asset quality recognition because the product is a short-term product of maybe 30 45 days. Um uh so uh 21:09 21 minutes, 9 seconds and the asset quality recognition is at 90 days. So if someone defaults on the 31st day but somehow gets regular on the 21:16 21 minutes, 16 seconds 35th day uh is he recognized in the Iraq uh norms of uh 30 90 days or uh how do 21:24 21 minutes, 24 seconds we look at this asset quality and if you can speak about the family rates 0 plus uh 30 plus in this particular product. 21:31 21 minutes, 31 seconds Thanks. 21:33 21 minutes, 33 seconds This is a new product. So currently what we are seeing is that closer to 97 98% of that gets paid not necessarily on the 21:40 21 minutes, 40 seconds exact due date it's a very small ticket currently the average ticket size we discussed by the limit is approximately 21:48 21 minutes, 48 seconds around less than 10 grand so the only there's a large scaling of product in terms of customer the risk that we take is very limited and the customer 21:56 21 minutes, 56 seconds behavior is known on the 30th day as you see 30 to 45th day currently the way we're running is that it is the delinquency generated out of every 22:04 22 minutes, 4 seconds The non-paying beyond 30 days is less than the overall fee income that we generate. We keep watching for it while it's a scalable product. This is one of 22:12 22 minutes, 12 seconds the industry first. We'll be very very careful in terms of monitoring on a month-on-month basis. There is a possibility that we will be introducing 22:19 22 minutes, 19 seconds certainly we'll be introducing the EMI product for seasoned customers. So in which case probably part of the portfolio EM as of now it is like a 22:26 22 minutes, 26 seconds charge card. Entire thing is paid at the end of the due date along with the grace period. Currently we see no closer to around one and a half% in the 90 plus 22:35 22 minutes, 35 seconds and it's a not a product which builds up on AM on a month on month because it gets repaid and restarts currently on approximately 200 course is what we have 22:43 22 minutes, 43 seconds as an outstanding at the end of the billing cycle last month and every month it is moving up in terms of IRA recognition overcra 22:52 22 minutes, 52 seconds recognition is just like a term loan right so you will have the 90-day uh non-pay paying criteria for determination of NPA Okay. 23:03 23 minutes, 3 seconds Right. Uh and what is the utilization of this particular credit line? How many percent what percentage of customers are 23:10 23 minutes, 10 seconds utilizing it and of the total limit how much is getting utilized and uh who owns 23:16 23 minutes, 16 seconds this customer? Do we own it or does uh 197 communication owns this? Can we do any kind of cross sale of our own asset 23:24 23 minutes, 24 seconds liability uh products to this particular customer? 23:28 23 minutes, 28 seconds As you know the regulations insist that the customers be owned by the bank. The entire VKYC is done through our platform. The customer is technically 23:37 23 minutes, 37 seconds owned by us. So obviously we will not crossell CLOU again to this customer or any of those products. But on a broad basis we are the ownership is with us. 23:47 23 minutes, 47 seconds The customer relationship buying experience is owned by obviously 197 because is one of the products that they cater to the customer that is across all 23:55 23 minutes, 55 seconds the platforms whether it's a digital that is while the customer is owned there are no restrictions in terms of crossellair we would not cross-ell on 24:02 24 minutes, 2 seconds the similar product that you have sourced from the customer 30% of the customers so for instance like as of say sometime back we had 10 lakh customers 24:11 24 minutes, 11 seconds who are pre-qualified or on five of lakh who have taken the sanction which means that they have done mean they have accepted the terms and conditions of 24:18 24 minutes, 18 seconds which approximately three lakh customers have utilized and the average utilization while keeps moving up on term of the new product currently it's 24:25 24 minutes, 25 seconds around 30% of the sanction of the people who have the limit at least once right right however there was something 24:34 24 minutes, 34 seconds contrary which was said on the call they said that they own the customer however uh right now what you said is that they 24:41 24 minutes, 41 seconds you own the customer u uh so I think I'll have to take this particular part offline. Thank you so much for answering my question. Thank you. 24:50 24 minutes, 50 seconds Sure. In a partnership of both own Thank you. We will take the next 24:59 24 minutes, 59 seconds question from the line of Ankor Kumar from Alpha Capital. Please go ahead. 25:07 25 minutes, 7 seconds Hello sir, thank you for taking my question. So my question is is a repeat of a previous participant. 25:13 25 minutes, 13 seconds You said Q4 as in Q4 is generally the best part and still you are expecting 1 Q RO8 to be better than this number. 25:21 25 minutes, 21 seconds So I couldn't understand that part. Can you please explain that? 25:26 25 minutes, 26 seconds No. Uh as we exit Q4 and move to Q1, my uh paying book in Q1 will be much higher 25:34 25 minutes, 34 seconds uh than Q4. And the second thing is that uh Q1 is also typically when most of the PSL sales occur and that will provide a 25:43 25 minutes, 43 seconds uptick to the income and which is the reason why uh we expect that we will have a higher ROA in Q1 visa VQ Q4. 25:52 25 minutes, 52 seconds Got it sir. And sir in in terms of e economy there are some headwinds in terms of as in monsoon also and this war 26:00 26 minutes related crude hike. So how are we seeing our book behaving in April and March May? 26:08 26 minutes, 8 seconds As of now we don't see a impact for two reasons. One most of the customers we cater to or low-inccome households who are into service of servance of 26:17 26 minutes, 17 seconds day-to-day products. The impact of that happens is obviously with a lag on both sides even if the good times turn and then they where the growth is high that 26:26 26 minutes, 26 seconds there is always a lag impact in terms of the low-inccome households. The only segment which can get impacted which will be the commercial vehicle if 26:33 26 minutes, 33 seconds there's an increase in diesel prices substantially beyond 10 or 15%. likely that there could be an impact which we have not seen whatever experience we had 26:42 26 minutes, 42 seconds around 5 to 10% is taken and beyond that it does really impact specifically in terms of large fleet operators in terms of mortgages there are quite a few 26:51 26 minutes, 51 seconds customers who are MSME do not into real large manufacturing that could be impact on them on the indirect basis as we speak today well we do not see much of 26:58 26 minutes, 58 seconds an impact we will be cautious about it in terms of watching out for the impact of the war if any 27:06 27 minutes, 6 seconds sure sir and on and on on this year we have good enough growth expectations. So when can we expect a fund raise only 27:13 27 minutes, 13 seconds it's like not going to come in coming one month one to two years? 27:19 27 minutes, 19 seconds Uh fund raise I think um yes is something that we are constantly evaluating um and given that at this 27:27 27 minutes, 27 seconds particular point in time we continue to see ourselves growing at 30% plus and our CRA at around 20%. 27:35 27 minutes, 35 seconds uh which is our internal uh you know comfort zone. Uh we would look to uh raise funds at a particular point in 27:43 27 minutes, 43 seconds time in course of the year as things stand now. Hello. 27:49 27 minutes, 49 seconds Yes sir. Given our price may may I speak sir? Given our price to book also is less than one. So I think that will be 27:56 27 minutes, 56 seconds not good enough for current shareholders. So given if we want to raise right now we obviously we're fully conscious in 28:04 28 minutes, 4 seconds terms of the shareholders resolution and impact here with but however as you know in any financial institution one of the core for it to grow on a sustainable 28:13 28 minutes, 13 seconds business is to really have adequate capital than required which we have demonstrated right from the time we were five capital liquidity higher than 28:20 28 minutes, 20 seconds required liquidity higher than required all of this really shows up when there are testing times we are we always fortify ourselves that's the first priority 28:28 28 minutes, 28 seconds And we are not going to be obviously raising money which is dilutive for the existing shareholders but this will all be enabling but we have space for tier 2 28:36 28 minutes, 36 seconds or in intent would be to kind of know do both of that parallelly and the markets are markets which we will not be able to guess what it is but if you're 28:44 28 minutes, 44 seconds sustaining the performance as is I'm sure you'll be able to raise money at a decent price which will be only beneficial for the existing shareholders and also for the new incoming 28:53 28 minutes, 53 seconds shareholders. is a little question for ahead but I think what we are really focused in terms of delivering what we are fairly confident in terms of Q1 29:01 29 minutes, 1 second entering into Q2 we did not burn all the candles in Q4 we kind of made sure that we are able in a position that we are 29:08 29 minutes, 8 seconds able to sustain the performance of Q4 quite a bit of that into Q1 and start building up for the remaining quarters 29:16 29 minutes, 16 seconds of the year thank you Sure sir thank you for the good years thank 29:25 29 minutes, 25 seconds Thank you. We will take the next question from the line of Daril Javi from Crown Capital. Please go ahead. 29:37 29 minutes, 37 seconds Yes. Uh hello good morning sir. Thank you so much for taking my question. 29:40 29 minutes, 40 seconds Firstly congratulations on a great set of results sir. Hopefully I'm audible. Thank you. Yes you are. 29:46 29 minutes, 46 seconds Yeah. Yeah. Hi sir. So just wanted to uh harp upon a bit about our asset quality. 29:52 29 minutes, 52 seconds So we guiding for around 3% GNPA right that would be a significant reduction 29:58 29 minutes, 58 seconds from our Q4 GNPA right so would that be that our exit run rate in terms of Q4 30:05 30 minutes, 5 seconds G&PA FI27 would be significantly lower than 3% would it be around 2% 1% how would the movement be sir if you could 30:13 30 minutes, 13 seconds help us explain that sir yeah so one element of that will obviously uh the claims that we will be 30:21 30 minutes, 21 seconds making in course of the year and those claims once realized will help us write off our NPS right and the second is 30:30 30 minutes, 30 seconds obviously you know the uh incremental NPS uh that uh we have in mind for the 30:36 30 minutes, 36 seconds year where we are as we said earlier we are targeting not to be in the range of 75 to 90 crores in a quarter. 30:45 30 minutes, 45 seconds Okay, fair enough. And just wanted to know in terms of the claims, so how quick is the government in giving us the claim, right? If just example just like 30:54 30 minutes, 54 seconds if you make it in end of quarter one, then uh what is the timeline that government does? Because getting money 31:02 31 minutes, 2 seconds from government sometimes becomes a very tedious process. So I just wanted to know in your experience how fast have been claims been processed and uh the 31:10 31 minutes, 10 seconds money hits us. Sir, it's a great guarantee trust. So we are not claiming directly from the government. It's a fully funded trust. 31:18 31 minutes, 18 seconds It's free guaranteed trust. So our experience fairly has been good. We will not they will have obviously their own internal turnar around times for making 31:26 31 minutes, 26 seconds the claim which I presume will be around 60 days. So our experience has been well within the turnar around time and we do not really expect anything to be 31:34 31 minutes, 34 seconds substantially different than what it was in the past. 31:38 31 minutes, 38 seconds Oh uh okay. Uh fair fair enough sir. And so just uh we have mentioned 2x PAT in our presentation. So uh does that mean 31:47 31 minutes, 47 seconds that you're targeting more than three around 300 crores of PAD in FI27? 31:52 31 minutes, 52 seconds Uh I just wanted to confirm that. So yeah, I mean that's the kind of a target that we have in mind. Uh so with the 32:00 32 minutes credit cycle in the MFI industry uh behind our back, I think that's the kind of number that we are targeting as a 32:07 32 minutes, 7 seconds bank for 2027. That that's great to sir and just I was attending another call. 32:13 32 minutes, 13 seconds So I just want to know they were speaking about like pressure in terms of you know cost of deposits increasing and yields also bit decreasing. So what do 32:21 32 minutes, 21 seconds you see the competitive environment right now in both of these aspect? Do do we feel there could be any pressure in either you know cost of funds or in terms of our yields getting lower sir? 32:34 32 minutes, 34 seconds Uh cost of funds have definitely hardened. it's becoming becoming increasingly difficult to raise money. 32:40 32 minutes, 40 seconds Uh we have uh noticed that you know the elevated rates of Q4 haven't quite come down uh the way they typically come down 32:49 32 minutes, 49 seconds in the earlier previous years. So there is a rush for deposits especially among the uh small finance bank and the 32:56 32 minutes, 56 seconds midsize banks as well. So uh that's I think a part of our you know deposit raising life in a bank these days uh 33:05 33 minutes, 5 seconds that's likely to continue. So for us as a bank what accordingly we have done is that uh from a funding point of view uh 33:14 33 minutes, 14 seconds we use a mix of deposits and refinancing. We are possibly one of the uh few small finance banks that actively 33:22 33 minutes, 22 seconds utilize our refinancing lines and we shall continue to do so. 33:29 33 minutes, 29 seconds Oh okay. Okay. Fine. So basically we can continue our nims right what we've done in FI26 sir. 33:36 33 minutes, 36 seconds Yeah. So uh I think given the kind of mix that we have at this particular point in time it's unlikely to change in a big way. So so I think the names uh will be maintained at this level. 33:47 33 minutes, 47 seconds Okay. Fair fair enough. That's it from my side. Thank you so much sir. Yeah. 33:54 33 minutes, 54 seconds Thank you. We will take the next question from the line of Rahul Kumar from Vikaria P. Please go ahead. 34:02 34 minutes, 2 seconds Yeah. Hi. Uh just one question. Uh basis your uh learnings from the past uh what has been the impact of the farm loan 34:11 34 minutes, 11 seconds wavers uh you know on the asset quality for a business. 34:19 34 minutes, 19 seconds Oh, that's a part of the cycle that we all grown up with and customers also have really seen the promises versus 34:26 34 minutes, 26 seconds what gets achieved. So overall, I think there has been a fair amount of maturity where even pre-elections if there are any waiverss which are announced at 34:34 34 minutes, 34 seconds least the industry has not seen any impact in Karnataka has not seen any of the states where it has even gone to elections including VR. So we'll have to 34:42 34 minutes, 42 seconds this part of the cycle sometimes it gets aggravated in specific pockets in terms of loan waiverss and so on. Even Connecticut as you would see across the board it has come back in six months 34:51 34 minutes, 51 seconds time as people realize that the waiver discussions are good for a couple of weeks but doesn't really help them in terms of sustaining the access to 34:59 34 minutes, 59 seconds credit. So while it is a challenge and we can't really wish it away but the fact is that at least all of us are mature enough to handle those cycles as in they come. 35:09 35 minutes, 9 seconds Okay. But let's say uh during the past uh Palmoon River in Maharashtra what was 35:15 35 minutes, 15 seconds your experience on the asset quality pockets in some pockets the colola poor nonpor we would have seen the impact but 35:23 35 minutes, 23 seconds is it really widespread it would broadly put probably see the impact on around 10% of it wherever there are local uh heavy campaigns which go on or kind of 35:32 35 minutes, 32 seconds miss campaigns I would say rather so that what you will see an impact but usually they all come back Okay. 35:40 35 minutes, 40 seconds Industry has not seen any huge impact in the last two cycles of the last six years whether it was a demon whether it was a covid or whether even today's 35:48 35 minutes, 48 seconds micro finance crisis while it happened because of various reasons which the industry is still figuring it out but it specifically I don't think there's any pointer to it in terms of any political intervention. 36:00 36 minutes Okay. 36:02 36 minutes, 2 seconds The second question which I had was uh I think if I see the retail uh you know 30 to 90 bucket that has uh increase pretty 36:10 36 minutes, 10 seconds sharply versus quarter three. So which are the segments where where you are seeing the stress uh you know 36:21 36 minutes, 21 seconds just sorry so retail effects uh the way we need to look at is we did a large uh uh uh uh 36:30 36 minutes, 30 seconds write off of ARC in the uh uh last year uh Q4. So the numbers were abysmally low. So that that's where it looks 36:39 36 minutes, 39 seconds little inflated.1 and uh overall the market uh uh is uh highly elevated on CV though our our metrics are significantly lower 2x lower 36:48 36 minutes, 48 seconds than the market uh uh CV stress but uh that is one pocket and uh mortgages for the old portfolio of mortgages and ML ML 36:56 36 minutes, 56 seconds Karnataka definitely there was a hit for us about uh 4% of the portfolio got uh elevated stress in Karnataka but again 37:04 37 minutes, 4 seconds it's now back now even 90 plus customers nearly 40% % of them are paying regularly. 37:10 37 minutes, 10 seconds So the so these are the pockets of uh stress. 37:13 37 minutes, 13 seconds Yeah. I actually uh asking about the stage 2 assets versus Q3 not SL versus last year. 37:22 37 minutes, 22 seconds So yeah, so you [clears throat] have to see like Shashi was mentioning one was so 37:30 37 minutes, 30 seconds just there are three three things. One is CV the uh little bit of uh stress that we have seen in last quarter. Uh 37:37 37 minutes, 37 seconds the MHL part which we have seen in Karnataka but what you have to see is a credit loss. So create loss nowhere uh in all the portfolio it doesn't it won't 37:46 37 minutes, 46 seconds exceed in CV not more than 0.75 and not in mortgage or MHL also it won't in mortgage at least it won't be more than 37:54 37 minutes, 54 seconds 0 5%. And in MHL it can be maximum 1 to 1.5%. So there's a elevation but I think rate loss will be under control. 38:05 38 minutes, 5 seconds Okay. Okay. So you do expect this stage two to gradually improve? Yeah. 38:14 38 minutes, 14 seconds Yeah. We will be able to Yeah. 38:17 38 minutes, 17 seconds Yes. Yeah. Our 61 to 90 bucket collection efficiency has actually significantly improved last uh uh two uh months. So that is also one of the reason why stage two is little elevated. 38:26 38 minutes, 26 seconds We need to now do roll back. Instead of collecting one EMA, we need to start collecting two and three. 38:34 38 minutes, 34 seconds Okay. Okay. Uh third question. uh I think uh what would be the quantum of 38:40 38 minutes, 40 seconds this CVFM you claim in the quarter one as you mentioned that we have to decide in terms of timing whether it's a Q1 or 38:48 38 minutes, 48 seconds Q2 but likely that majority of the eligible claims will be claimed within these two quarters 38:55 38 minutes, 55 seconds okay okay and total quantum would be somewhere around 500 is that correct 39:02 39 minutes, 2 seconds 75 would be the eligible one so depending on when we make a claim suppose We make one cohort eligible claim is next number and we choose to do 39:10 39 minutes, 10 seconds it in Q1. The remaining which we are not eligible we are not claiming can be claimed only in the subsequent year time I think of cons on a very prudent basis 39:19 39 minutes, 19 seconds you can say 450 as a number and max it can go up to 5 475. 39:25 39 minutes, 25 seconds Okay, got understood. And the last question, uh I think the our yields has also uh increased pretty sharply uh 39:33 39 minutes, 33 seconds versus Q quarter 3 by 50 bibs. Uh so is there any one-off in the interest income? 39:43 39 minutes, 43 seconds No. So uh you will notice that uh the there has been a significant increase in our paying book and and that that 39:50 39 minutes, 50 seconds reflects in the yield uh that you see Q4 versus Q3. 39:55 39 minutes, 55 seconds But if I see the GPA ratio for quarter three and quarter four it's pretty flat actually 40:04 40 minutes, 4 seconds mix up high for me. So the mix of uh inclusive finance vicas loan mix have also shot up that's primary reason if you see the contributing money paying 40:13 40 minutes, 13 seconds book has grown and within the paying book the higher yield paying book has also the fact that there has been an 40:20 40 minutes, 20 seconds uptick in terms of the NPA collections it has now moved to around it was what was around 56 crores that has moved to 40:26 40 minutes, 26 seconds around 15 crores during the last quarter will broadly sustain at around 12 crores part of that what we collect is also 40:34 40 minutes, 34 seconds interest component so that would have added a little bit in terms of the increase in yields which is now as you know it's a larger 40:42 40 minutes, 42 seconds book we keep collecting at least through the year we see at least collecting closer to 150 to 180 crores out of that and a reasonable portion of that would 40:49 40 minutes, 49 seconds be the interest income can I take the last can I do a last 40:57 40 minutes, 57 seconds question also sure please so uh just on credit cost uh two parts a 41:05 41 minutes, 5 seconds I think our slippages have declined pretty sharply 40% versus quarter three right but the crate cost continues to be 41:14 41 minutes, 14 seconds uh flat on a quarteronquarter basis so apart from this floating provision what 41:21 41 minutes, 21 seconds else actually led to this and two uh yes please carry on 41:28 41 minutes, 28 seconds yeah and two I think for let's say fi27 versus uh 1.4% 4% crate cost in the quarter four. Uh what is the level of credit cost which we are targeting? 41:41 41 minutes, 41 seconds So uh primarily for Q4 it's uh floating provisions and nothing else. Uh which is the reason why you see floating 41:48 41 minutes, 48 seconds provision uh grade cost to be flat quarteron quarter and I think for whole of next year I am looking at somewhere around 1% of credit cost. 42:02 42 minutes, 2 seconds Okay. 42:04 42 minutes, 4 seconds Okay. So then in that context do you think this target of 1.2% ROA is a bit more conservative uh in your view? 42:15 42 minutes, 15 seconds See we just coming out of the cycle where one of the key assumptions is that broadly the asset quality carries through and as one of the previous 42:23 42 minutes, 23 seconds speakers asked is it to the impact of the war is to really be seen including in our segment. So I would I would say that it is a little more realistic. If 42:31 42 minutes, 31 seconds there's any upside it'll be good. But I think I wanted to be clear that what we are reasonably certain within conference level of 95% is what we really projected. 42:41 42 minutes, 41 seconds Okay. Okay. Understood. Thank you. 42:46 42 minutes, 46 seconds Thank you. We will take the next question from the line of Harshett Ka from Robo Capital. Please go ahead. 42:57 42 minutes, 57 seconds Hello. Yes, please. I'm now audible sir. 43:04 43 minutes, 4 seconds Yes. Thank you for the opportunity. I just wanted to understand that the three crores of PAT that we are guiding and 43:11 43 minutes, 11 seconds the 450 crores of CG FMU claim that we are uh you know seeing. So how much of the three crores of PAT is affected by that claim? 43:22 43 minutes, 22 seconds 300 crores of sorry no so this is a more a balance sheet impact right uh because the claim that 43:31 43 minutes, 31 seconds is realized essentially helps us write off our NPS so every claim that you make 43:39 43 minutes, 39 seconds results in the reduction of your headline GNP number but it is unlikely to impact your uh P&L 43:48 43 minutes, 48 seconds okay so thank Thank you. We will take the next 43:55 43 minutes, 55 seconds question from the line of Aulkarni from Canor Asset Management LLP. Please go ahead. 44:08 44 minutes, 8 seconds Am I please proceed with a question? 44:16 44 minutes, 16 seconds Yeah, sorry. Can you hear me? Good morning. Yes, your honor. Yes. Hello. Please. 44:21 44 minutes, 21 seconds Yeah. Yeah. Congratulations to the entire team for making steady progress over the last uh four to six quarters. I 44:27 44 minutes, 27 seconds had two questions. Uh one is uh have we already submitted our claim for CGFMU in 44:33 44 minutes, 33 seconds April for one of the cohorts? Uh and uh if not, what is preventing us from uh 44:41 44 minutes, 41 seconds claiming at least one of the cohorts immediately uh in April itself? 44:46 44 minutes, 46 seconds And the second question is uh why have we postponed uh raising of funds? We could have at least raised tire two immediately, right? 44:56 44 minutes, 56 seconds Yeah. On the CJ from I think it's a pretty detailed kind of the workings of CJFU that an account we can claim only 45:04 45 minutes, 4 seconds after the base one plus base year. First year is called the base year, second year is called the crystization year and third year is becomes this in the end 6 45:12 45 minutes, 12 seconds months that account should have been an NPA for us to make a claim. So given all of that we kind of do that exercise in terms of what is very optimal and also 45:20 45 minutes, 20 seconds the timing. So currently we are in a reasonably kind of comfortable situation that we will figure it out whether it has to be Q1 or Q2 where we can get a 45:28 45 minutes, 28 seconds reasonably higher claim because the claim is only once in a year for a particular cohort and likely that the the highest claim for us will be the 45:36 45 minutes, 36 seconds cohort of FI25. So which which FI24 will be lower and FI23 will be significantly lower. So if you have to choose to claim 45:44 45 minutes, 44 seconds FI25, we would like to at least time it that whatever has become GNPSA till February or March we have to claim it. 45:50 45 minutes, 50 seconds We can make the claim only in the month of September. So we will figure it out as of now whether it's April we have not 45:57 45 minutes, 57 seconds made a claim we can say that in May not likely whether it will make in June or whether it will make in the subsequent quarter and which month we really yet to decide. Any other question? 46:07 46 minutes, 7 seconds Yeah. On the funding question, uh like yeah, like you said, yes. Uh having regard and being cognizant to the price 46:14 46 minutes, 14 seconds to book, our preference will be for tier 2 to begin with and and that's something uh that is most likely to happen first. 46:23 46 minutes, 23 seconds Uh but in so far as equity raise is concerned, it'll be a you know more detailed discussion and deliberation 46:30 46 minutes, 30 seconds because we need to take care of our incumbent shareholders. At the same time, it has not been deferred. Just to clarify we the board said that can we 46:38 46 minutes, 38 seconds have a far more in terms of how much can we tier two how much yeah thanks so just to confirm right now we haven't 46:45 46 minutes, 45 seconds submitted any CGFO claim right now we will decide in due course maybe in 1 to 3 months we'll decide yes please 46:53 46 minutes, 53 seconds okay yeah thank you all the best okay 47:00 47 minutes thank you we will take the next question from the line of Arvin Cha from Rapid please go ahead. 47:09 47 minutes, 9 seconds Yeah, especially on the name that we expect to achieve over the course of this financial year. So given that the 47:18 47 minutes, 18 seconds share of the paying book is going to increase significantly as we as we go through the various cohorts through the 47:25 47 minutes, 25 seconds year and we think this remaining flat is a very conservative estimate because whatever income we make on that will be 47:32 47 minutes, 32 seconds an additional addition to the net interest income right so from that perspective what is it that has been 47:38 47 minutes, 38 seconds existing some increase in cost of funds to offset all that 47:46 47 minutes, 46 seconds uh No, I I don't think that is likely. I think uh our nymphs will be rangebound between 8 to 9%. 47:53 47 minutes, 53 seconds um uh because uh one the paying book will now continue to increase uh since the credit cycle in MFI is behind us and 48:02 48 minutes, 2 seconds we will be able to protect that amount of that kind of a NIM because if you look in at our mix as well uh we are 48:10 48 minutes, 10 seconds more or less uh there we don't see further significant changes in our mix between uh MFI and non-MFI. 48:20 48 minutes, 20 seconds So no my simple question is mathematically if your if 5% of your book is NPA right 48:27 48 minutes, 27 seconds and that's not nonpaying if over the course of this year that 5% gets added to your paying book against which you 48:34 48 minutes, 34 seconds don't have any incremental uh cost of funding then your should disproportionately increase right I mean mathematically speaking 48:43 48 minutes, 43 seconds yes you are right there will be an uptick uh in NIMS because if you look at NIMS as they are Today uh they are 48:51 48 minutes, 51 seconds around uh uh suppressed by around 50 peso or thereabouts. 48:59 48 minutes, 59 seconds Next question is yes please because we have seen an update. 49:07 49 minutes, 7 seconds Sorry it interrupted between your voice is not audible. Hello. Oh yes. 49:15 49 minutes, 15 seconds Yeah. My second question is what is your typical the secured uh book because you've seen as as some of the other callers have 49:23 49 minutes, 23 seconds pointed out there's been an uptick in the uh 31 to 260 and the 90 plus markets. 49:32 49 minutes, 32 seconds So just wanted to understand the loss given default only see the mortgages you know the credit cost ultimately will come out it's much lower 49:41 49 minutes, 41 seconds than the GMPA so may not necessarily be in commercial vehicle if the customer slips into even a repossession or the 49:48 49 minutes, 48 seconds lack of tracing of the vehicle I would say that while there has been a we would love to at the max we would like to 49:55 49 minutes, 55 seconds maintain this and focus in terms of resolving some of the mortgage cases which are in PNPA using surface In terms of the reserve we have strengthened over 50:03 50 minutes, 3 seconds the last year because it was a new portfolio in the last couple of years. 50:07 50 minutes, 7 seconds The legal thing has been strengthened and if we're able to do a D1 recover within the 6 to 9 months time given that know we fund the micro home loans which 50:14 50 minutes, 14 seconds is around 600 cr portfolio. We do not take surface and repossess and sale as the first option at all. So we have the very fact that we funded likely to be 50:23 50 minutes, 23 seconds the first home of a low-inccome household. There is the nudge is in terms of making them come back to the regular thing rather than in terms of using surface as a one click button. So 50:32 50 minutes, 32 seconds for this other model which is lap case you mentioned there are a couple of high ticket not really high ticket within 50:40 50 minutes, 40 seconds three cr plus couple of cases which are fairly confident in terms of resolving and the net slipes may be much much lower and overall what we are looking at 50:48 50 minutes, 48 seconds as a bank is in terms of not to exceed around 90 crores in terms of on a month quarteron quarter basis in terms of risky pages. 50:59 50 minutes, 59 seconds Okay. 51:01 51 minutes, 1 second Yeah, thank you. 51:06 51 minutes, 6 seconds Thank you. We will take the next question from the line of Faraj Deep, an individual investor. Please go ahead. 51:19 51 minutes, 19 seconds Faraj, please proceed with a question. 51:28 51 minutes, 28 seconds Due to no response, we'll take the next participant. 51:32 51 minutes, 32 seconds We have the next follow-up question from the line of Rahul Kumar from Varia. Please go ahead. 51:43 51 minutes, 43 seconds Hello. Am I audible? Yes sir. Yes, you're audible. 51:47 51 minutes, 47 seconds The previous comment you made, was that regarding on the loan farm loan? Was that regarding farm loan wavers impact 51:54 51 minutes, 54 seconds on your MFI book or it was regarding MFI loan wavers gets uh promised but uh don't necessarily impact your overall 52:02 52 minutes, 2 seconds business in pocket they do so is it around farm loan wavers or NFI loan w sometimes the spill over happens the 52:11 52 minutes, 11 seconds farm loan anything announced gets kind of as an MF loan which has happened at least in one state so other than that I think in the state which has in micro 52:20 52 minutes, 20 seconds finance presence for longer had not had a significant not saying not many impact not any significant impact to derail their business in a particular 52:28 52 minutes, 28 seconds state in pockets they sometimes become aggravated we saw in Hamraati we saw in Kola during the demon and subsequently 52:35 52 minutes, 35 seconds in some of these markets so otherwise the industry has become reasonably mature not to really kind of including 52:43 52 minutes, 43 seconds the customers take the serious have Have they made any impress so far? 52:52 52 minutes, 52 seconds Any in any pocket? 52:54 52 minutes, 54 seconds Not in the industry. I can talk about broadly even the industry figure is available and hence obviously not on us as well when I say across the industry. 53:01 53 minutes, 1 second So we haven't seen any impact and hopefully will not. 53:04 53 minutes, 4 seconds Great. So so far no impact on you or industry you you know of as you understand. Absolutely. Thank you. 53:13 53 minutes, 13 seconds Thank you much. 53:18 53 minutes, 18 seconds Thank you. We will take the next question from the line of Jakti Singh, an individual investor. Please go ahead. 53:27 53 minutes, 27 seconds Good morning. Morning sir. 53:30 53 minutes, 30 seconds Good morning sir. Uh very good set of numbers and thank you for sharing uh the guidance in a granular way sir. I wanted 53:37 53 minutes, 37 seconds to ask you uh do we have leverage to increase the uh ticket size for the uh customers? 53:48 53 minutes, 48 seconds We do sir we do it has to be done on a reasonably calibrated manage. So we have certainly increased to a period of time. 53:55 53 minutes, 55 seconds The intent is since we are dealing with individual customers as you already referred to there is always this possibility but it can't really operate on the same mold as earlier which is one 54:04 54 minutes, 4 seconds year loan two year loan customers are really confident at the time of taking a loan and then even one EMI slip it becomes a stress. So we are really 54:12 54 minutes, 12 seconds focusing in terms of is moving towards three year for high ticket loans. We'll selectively introduce and as we gain experience in the next two quarters we 54:19 54 minutes, 19 seconds look at a at least a portion of our portfolio which is above one lakh of this loan. Okay. 54:24 54 minutes, 24 seconds We not used that lever as a simple one cost remaining the same higher the interest ticket size higher the profit. 54:30 54 minutes, 30 seconds We haven't really played that need lever at all. We would do it very very cautiously. 54:36 54 minutes, 36 seconds Okay. Okay. And sir in the in one of the calls uh we were listening to another industry uh company and they had 54:44 54 minutes, 44 seconds indicated that there is lot of unmet demand. It seems that uh some few players have exited or uh they are not 54:53 54 minutes, 53 seconds growing aggressively because of funds or god knows what. So do we have liver to go further in our dispersements 55:04 55 minutes, 4 seconds which all of this put together is what we have done our guidance. So we have I think a consistent growth is our focus. 55:11 55 minutes, 11 seconds So we will grow we're targeting to grow at around close to 30% of our asset size which obviously means that we'll grow on the inclusive finance side as well. So 55:19 55 minutes, 19 seconds other than that we are not and as you know that all the large as we know the large MFIs and is have access to all the liquidity that they can fund as per 55:28 55 minutes, 28 seconds their risk rate it is a smaller MF which would have got impacted which is the top 10 or 15 have around 90% market share. 55:35 55 minutes, 35 seconds So given that the demand unmet demand being huge is not something we have not seen at this point of time. 55:43 55 minutes, 43 seconds Okay. Right sir. Thank you sir. Thank you sir. 55:48 55 minutes, 48 seconds Thank you. We will take the next follow-up question from the line of Harshett Kadka from Robo Capital. Please go ahead. 55:58 55 minutes, 58 seconds Uh hi. Uh thank you again for the opportunity. I just wanted to understand that what kind of credit cost are you looking at for FI 27 and 28? 56:12 56 minutes, 12 seconds I think uh for the next coming year uh our credit cost will be somewhere in the region of uh 70 to 80 bits. Um and and 56:21 56 minutes, 21 seconds that's what we have in mind at this particular point in time. 56:26 56 minutes, 26 seconds Okay sir. And uh we were also looking at some fund raise right so like are we going to do it? Are we planning it in FI 56:34 56 minutes, 34 seconds 27? Like what exactly are we looking at it? 56:39 56 minutes, 39 seconds So uh there are a couple of factors uh one is obviously our internal threshold when we start looking 56:51 56 minutes, 51 seconds uh and that's about 20% of CR we we are somewhere there uh the second is obviously taking care of our incumbent 57:00 57 minutes shareholders uh and we are cognizant of the fact that currently we are trading at a discount to the book uh the third 57:07 57 minutes, 7 seconds is you know all options available to us and and like I said a while before uh tier 2 will be pos the most likely 57:15 57 minutes, 15 seconds option that we trigger uh when we go for a fund raise as as a first step 57:24 57 minutes, 24 seconds okay sir and thank you thank you very much thank you very much 57:32 57 minutes, 32 seconds ladies and gentlemen that was the last question for today and with that concludes the question and answer session. I now hand the conference over to Miss Ju Manwani for closing comments. 57:43 57 minutes, 43 seconds Thank you and over to you ma'am. 57:49 57 minutes, 49 seconds Thank you. On behalf of Farhas Capital, I thank you all for joining this call. I now hand over the call to the management for their closing remarks. 58:00 58 minutes Thank you all for taking time out and participating in our call. Look forward to continuous engagement. Thank you very much. 58:06 58 minutes, 6 seconds Thank you members of the management. On behalf of Arian Capital Markets Limited, we conclude this conference. Thank you all for joining us and you may not disconnect your lights. Thank you.