Ujjivan Small Finance Bank Limited — Q4 FY26

Ujjivan Small Finance Bank Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=TwXVuzKy2MU Published: 5 days ago

0:00 Ladies and gentlemen, good day and welcome to Ojivan Small Finance Bank Limited's Q4 FYI26 earnings conference 0:08 8 seconds call hosted by Ambit Capital Private Limited. As a reminder, all participines will be in the listenon mode and there 0:16 16 seconds will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please 0:23 23 seconds signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. 0:31 31 seconds I now hand the conference over to Mr. 0:33 33 seconds Jign Shial from Ambit Capital. Thank you and over to you Mr. Shia. 0:39 39 seconds Yeah, thank you Michelle and good evening everyone. On behalf of Ambit Capital, I would like you all to 0:50 50 seconds I'm sorry. I'm sorry to interrupt you, sir. Sir sir, can you please start because your voice broke. 0:57 57 seconds Am I audible now? Yes, please. 1:01 1 minute, 1 second Yeah. Okay. So, uh thank you Michelle and good evening everyone. On behalf of Ambit Capital, I would like to welcome 1:08 1 minute, 8 seconds you all to Q4 and folar FI26 earnings call of Udan Small Finance Bank. We have 1:15 1 minute, 15 seconds along with us Mr. Sanjiv Nautal, managing director and CEO, Miss Carol Futadu, executive director and the 1:23 1 minute, 23 seconds senior management team of Ojivan Small Finance Bank. I will now hand over the call to Mr. Sanju Notyal, managing 1:30 1 minute, 30 seconds director and CEO for his opening remarks. Over to you, sir. 1:35 1 minute, 35 seconds Thank you, Jesh. Uh, good evening and thank you all for joining us today for JIAN's SFB's quarter 4 and financial 1:43 1 minute, 43 seconds year 2026 earnings call. Uh please do note I will be referring to year-on-year comparisons with Q4 financial year 25 1:53 1 minute, 53 seconds and quarteron quarter with Q3 financial year 26. 1:58 1 minute, 58 seconds The Indian economy continues to exhibit resilience as reflected in stable GDP growth outlook. This is supported by 2:06 2 minutes, 6 seconds strong domestic fundamentals, government initiatives and interventions supported by adequate liquidity. On the 2:14 2 minutes, 14 seconds industry front, overall bank credit recorded strong growth of 16% reaching 219 lakh crores while deposits 2:22 2 minutes, 22 seconds increased by 13.4 percentages to rupees 268 lakh cr as of March 31st 2026. 2:31 2 minutes, 31 seconds The Reserve Bank of India has kept policy rates unchanged at 5.25%. 2:36 2 minutes, 36 seconds while maintaining a neutral stance reflecting a balanced approach to support growth while retaining flexibility amid evolving risks. CPI 2:46 2 minutes, 46 seconds provisional inflation for March 26 came in at 3.40 percentages, up 19 basis 2:53 2 minutes, 53 seconds points over February 26 and RBI expects headline inflation to average around 4.6 2:59 2 minutes, 59 seconds percentages for financial year 27. We do not expect rates to be increased unless there is a sharp surge in inflation above the RBI target range. 3:11 3 minutes, 11 seconds Real GDP growth for financial year 2627 is expected around 6.9 percentages as 3:17 3 minutes, 17 seconds per RBI. The projection faces downside risks from geopolitical tensions such as the West Asia conflict, oil price 3:26 3 minutes, 26 seconds volatility, supply chain disruptions, and super elino weather phenomenon fueling inflation. 3:33 3 minutes, 33 seconds GDP expansion is likely to be supported by continued government capital expenditure and a recovery in private consumption. 3:42 3 minutes, 42 seconds I will commence with our financial year 2026 journey before I delve into quarterly performance. 3:49 3 minutes, 49 seconds We received communication from the RBI on 13th April on our application for voluntary transition to a universal bank. 3:58 3 minutes, 58 seconds The regulator while returning our application has acknowledged our ongoing efforts towards diversification of our loan portfolio. 4:07 4 minutes, 7 seconds We shall continue to engage with the RBI and reapply as per their constructive guidance at an appropriate time demonstrating a diversified portfolio. 4:19 4 minutes, 19 seconds We remain committed to our universal banking aspirations. 4:23 4 minutes, 23 seconds During the year, we continue to widen and deepen our board and management. At the board, Mr. Anerupt Paul brings 4:31 4 minutes, 31 seconds expertise in complex transformation innovation in AI and data process and technology 4:38 4 minutes, 38 seconds in financial year 26 till December 25 management additions of Mr. Romesh Aurora Mr. Deepak Aagarwal and Mrs. 4:46 4 minutes, 46 seconds Vijay Lakshmi Mudu has strengthened business strategy and audit functions respectively in quarter 4 financial year 4:55 4 minutes, 55 seconds 26 with the appointment of Mr. Pankage Gupta as chief digital officer and Mr. 4:59 4 minutes, 59 seconds Mohammad Shakil Khan as head of collections. Our digital capabilities and collection portfolio are further 5:06 5 minutes, 6 seconds strengthened. Let me now enumerate a few important milestones achieved in financial year 26. Deposits in gross 5:14 5 minutes, 14 seconds loan book each have crossed rupees 40,000 cr. Taking balance sheet across rupees 50,000 cr. Retail deposits 5:22 5 minutes, 22 seconds crossed 30,000 cr and savings accounts cross rs 10,000 crores. Housing vertical comprising of affordable housing and 5:30 5 minutes, 30 seconds micro mortgage crossed rupees 10,000 cr while MSME and FIG crossed rups 3,000 cr each. 5:38 5 minutes, 38 seconds Total secured advances portfolio crossed rups 20,000 cr. Micro banking assets GL 5:44 5 minutes, 44 seconds and IL combined grew past Rs 20,000 cr after large contraction in financial year 25 and also in financial year 24. 5:56 5 minutes, 56 seconds Q4 concludes another important year for JI1 marked by strong execution, improving operating performance and 6:03 6 minutes, 3 seconds continued strategic progress with the outcomes in line with the guidance at the start of financial year 26. 6:12 6 minutes, 12 seconds We continue to see strong momentum in deposits growth. Total deposits stood at rupees 45,668 6:19 6 minutes, 19 seconds crores reflecting YUI growth of 21.4 percentages and 8.2% 2% QoQ while CASSA 6:28 6 minutes, 28 seconds deposits grew higher leading to improvement in CASA ratio to 28.6 percentages retail TD plus CASA stood at rupees 6:37 6 minutes, 37 seconds 31,995 [clears throat] cr contributing 70% of total deposits cost of funds for the quarter stood at 7 percentages and 6:45 6 minutes, 45 seconds for the year stood at 7.2 2 in a period marked with tight liquidity we maintain CD ratio at 89% with comfortable 6:53 6 minutes, 53 seconds liquidity reflected in LCR at 142 percentages as of March 31st 2026 7:00 7 minutes focus remains on strengthening granular and retaildriven deposit franchise and further improve on the tasari iso 7:10 7 minutes, 10 seconds on the gross loan book during the year we continue to progress towards building a more balanced and diversified loan 7:17 7 minutes, 17 seconds portfolio with a clear focus on increasing the share of secured assets. 7:22 7 minutes, 22 seconds The secured portfolio now contributes 49.4% of the overall book up from 43.5% 7:29 7 minutes, 29 seconds YUI and 48.1% QoQ. This transition positions us well 7:36 7 minutes, 36 seconds for more stable and sustainable growth going forward. Disbburments during Q4 FY26 were the highest ever at rupees 7:45 7 minutes, 45 seconds 9,811 crores up 32.1 percentages YUI and 18.3 percentages QQ reflecting strong 7:54 7 minutes, 54 seconds demand across segments. The gross loan book reached Rs 40,655 crores growing 8:00 8 minutes 26.6 percentages YI and 9.7 percentages QQ. The secured portfolio scaled 8:08 8 minutes, 8 seconds meaningfully to rupees 20,79 crores up 43.5 percentages YUI and 12.6 8:15 8 minutes, 15 seconds percentages QQ. Within secured segments, housing portfolio continued to demonstrate strong traction with growth 8:22 8 minutes, 22 seconds of 43.4 percentages YI and 9.6 percentages Qoq. While the MSME portfolio witnessed robust growth of 8:31 8 minutes, 31 seconds 57.9% YUI and 12.8% eight person Qoq driven by strong execution on the formal 8:38 8 minutes, 38 seconds and semiformal focused MSME strategy. We also saw strong momentum across newer business lines with gold loans, vehicle 8:47 8 minutes, 47 seconds finance and agri banking scaling up rapidly by 292 percentages, 101 percentages and 126 percentages YI 8:56 8 minutes, 56 seconds respectively. I am pleased to note these three newer lines now contribute around 6% of our loan mix against 3% in financial year 2025. 9:07 9 minutes, 7 seconds In micro banking as guided earlier, we witnessed healthy disbbursement growth of 11.9% QQ to an all-time high of 9:16 9 minutes, 16 seconds rupees 5,245 crores. During the quarter, MB portfolio grew to rupes 20,79 9:23 9 minutes, 23 seconds cr up 6.9%. Implementation of guardrails has stabilized portfolio and durable demand returned. The individual loan 9:32 9 minutes, 32 seconds portfolio continued to grow steadily while group loan growth remained calibrated. The new customer addition for financial year 26 was at 5.4 lakhs. 9:44 9 minutes, 44 seconds Coming to bank level asset quality, we have seen stable performance with improving trends across portfolios during the quarter. At a bank level, 9:53 9 minutes, 53 seconds GNPA stood at 2.27 27 percentages with sequential moderation in par reflecting improved improving borrower behavior and 10:02 10 minutes, 2 seconds the effectiveness of our collection efforts. Overall, portfolio quality remained robust with credit cost 10:09 10 minutes, 9 seconds improving to 2.2 percentages of average gross loan book for financial year 26 10:16 10 minutes, 16 seconds down by 20 basis points YUI and a visible moderation in slippages during the period. PCR improved to 81 percentages providing adequate buffer. 10:26 10 minutes, 26 seconds Pocketex collection efficiency in microbanking remained strong at 99.8 percentages in March 26 and above 99.7 10:34 10 minutes, 34 seconds percentages across Q4, underscoring disciplined execution on the ground. 10:40 10 minutes, 40 seconds Within the secured portfolio, asset quality continues to remain robust with housing and MSME portfolios showing healthy performance and improving 10:48 10 minutes, 48 seconds delinquency trends. Our financial outcome for Q4 reflects near-normal portfolio and operational performance. 10:57 10 minutes, 57 seconds Total income for FY26 stood at 8,39 crores up 11.6 percentages YUI while 11:06 11 minutes, 6 seconds quarterly total income came in at rupees 2,186 crores up 18.6 percentages YUI reflecting continued momentum. 11:16 11 minutes, 16 seconds We delivered strong NI growth of 26.4 4 percentages YUI and 9.2 percentages Q to 11:24 11 minutes, 24 seconds rupees 1,92 cr driven by a robust loan growth and a stable product yield. Net 11:31 11 minutes, 31 seconds interest margin for the quarter improved further to 8.5 percentages. This was largely [clears throat] due to reducing cost of funds, stable 11:40 11 minutes, 40 seconds yields and optimal liquidity utilization. 11:44 11 minutes, 44 seconds Other income remained healthy driven by processing fee and insurance income. 11:48 11 minutes, 48 seconds Other income to ATA for FY26 is at 2.2 percentages. Interest expenses were well managed through active liability 11:57 11 minutes, 57 seconds management while OPEX to ATA for financial year 26 came in at 6.4 percentages and cost to income for financial year 26 at 65.6 percentages. 12:09 12 minutes, 9 seconds Net profit for financial year 26 came in at rupees 693 cr with ROA and ROE at 1.4 12:17 12 minutes, 17 seconds and 4 percentages and 10.9 percentages respectively. The exit quarter pat stood 12:23 12 minutes, 23 seconds at rupees 282 cr and roe were at 2.1 percentages and 17.2 percentages respectively. 12:32 12 minutes, 32 seconds Future FY27 and beyond for FY27 we plan to accelerate both branch and digital 12:40 12 minutes, 40 seconds infrastructure in line with set growth objective of around 25%. Current financial year will focus on branch 12:47 12 minutes, 47 seconds addition of about 20% keeping with our growth plans for the current financial year. Our digital and AI and analytics 12:54 12 minutes, 54 seconds investments will continue to better align with our existing and new customer needs. Strengthening our data foundation through cloudlet platform integrated 13:03 13 minutes, 3 seconds architecture will ensure we deliver on a truly connected bank. Thus augmenting our customer acquisition and retention through their life cycle. 13:14 13 minutes, 14 seconds Guidance FY27 grow the advances by around 25%. 13:20 13 minutes, 20 seconds Expect credit costs to moderate to 1.4 percentages to 1.5 percentages of the average GB. 13:28 13 minutes, 28 seconds Reach ROA of around 1.6 percentages. 13:32 13 minutes, 32 seconds As I conclude, we remain committed to profitable growth with focus on investments in distribution, technology, risk and multi-product infrastructure. 13:42 13 minutes, 42 seconds Additionally, to maintain adequate buffer over the regulatory capital threshold, our board has approved raising of equity capital for an 13:50 13 minutes, 50 seconds aggregate amount not exceeding rupees 2,000 cr. This capital infusion would propel growth for the medium term. I now 13:59 13 minutes, 59 seconds hand the call to the moderator to commence the Q&A. Thank you. Thank you very much. 14:07 14 minutes, 7 seconds Thank you very much, sir. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask questions may please press star and one on their touchstone phone. 14:17 14 minutes, 17 seconds If you wish to withdraw yourself from the question, you may press star and two. Participants are requested to use only handsets while asking a question. 14:26 14 minutes, 26 seconds Ladies and gentlemen, we will wait for a moment while the question assembles. 14:45 14 minutes, 45 seconds The first question is from the line of Dantara from Green Edge Wells. Please go ahead. 14:52 14 minutes, 52 seconds Yeah. Hi. Uh thank you for the opportunity. Uh congrats on a good set of numbers. My first question is that see we have an exit ROI of more than 2%. 15:00 15 minutes And you know for the next year we are guiding an ROI of around 1.6. So is it because you know you said that we'll open more branches that is fine but will 15:09 15 minutes, 9 seconds it be like our opex grows at 40 50% because that's the only line item which will probably increase and you know pressurize our ROS. My that's my first question. 15:23 15 minutes, 23 seconds So I think uh Dant as I said uh we would be uh entailing uh investments on the 15:31 15 minutes, 31 seconds lines that I indicated which is on tech, digital, AI uh branch expansion. So all 15:38 15 minutes, 38 seconds these uh uh expenses or investments uh would actually uh lead to an ROA which I 15:45 15 minutes, 45 seconds indicated uh and therefore I would not see anything unusual about our numbers. 15:52 15 minutes, 52 seconds Okay. Okay. Okay. Yeah. Because see the exit uh you know the credit cost at the this quarter rate is around 1.1. We are 15:59 15 minutes, 59 seconds guiding for around 1.4. So so like you what what is so you don't see anything adverse there as well right? It's just the higher investment which is pushing 16:07 16 minutes, 7 seconds the ROA down next year in our uh guidance. 16:15 16 minutes, 15 seconds This is Sat here. Uh the uh credit cost you're referring to is on dupoint. what we are reporting is on a average GB. So that's the only difference but uh I Mr. 16:26 16 minutes, 26 seconds Niel will uh give the further expl uh response to your question. 16:34 16 minutes, 34 seconds So uh uh Dant uh you know we have uh got the guidance of Reserve Bank of India. 16:42 16 minutes, 42 seconds So obviously gradually we will be scaling up the secured book also and therefore uh the configuration will 16:50 16 minutes, 50 seconds alter and change and that would also have a bearing on the return on the assets. 16:57 16 minutes, 57 seconds Okay, perfect, perfect, perfect. I understand that just 200 see like we are at 51% in micro banking. Uh we will not 17:04 17 minutes, 4 seconds you know like we not deratively slow it down right we may increase the other part faster or you know how are we thinking about this particular to get 17:14 17 minutes, 14 seconds absolutely absolutely we continue to do the micro uh finance business as we do 17:20 17 minutes, 20 seconds and all also see that the ratio of the secured book grows faster. So that is how we are going to calibrate the two sides of the loan books. 17:31 17 minutes, 31 seconds Okay. Okay. Perfect. Thank you. Thank you so much for the clarifications and wish you best of luck. 17:37 17 minutes, 37 seconds Thank you. A request to all the participants that you may kindly limit your questions to only two per participant. Should you have a follow-up 17:45 17 minutes, 45 seconds question, please rejoin the queue. We'll take the next question from Shrial Dshi from Equirus. Please go ahead. 17:53 17 minutes, 53 seconds Hi sir, thank you for giving me the opportunity and congrats on a great set of numbers. Uh my first question was on the growth front. So while we have 18:00 18 minutes highlighted 25% growth on the overall book, what would be the segmental growth aspiration uh in segments like micro 18:09 18 minutes, 9 seconds banking as well as home loan and and the other segments that we have launched recently. That is my question number one. And the other question is on the 18:17 18 minutes, 17 seconds margin front. So I think the earlier participant highlighted OPEX being one of the aspects but would it also be margins 18:25 18 minutes, 25 seconds given that we are focus we would be focusing more on secured side and therefore from our exit margin of 4Q we 18:34 18 minutes, 34 seconds would see whole year FI27 margin coming down. So these are my two questions sir. 18:41 18 minutes, 41 seconds So uh as far as the uh the micro banking business is concerned we would be 18:49 18 minutes, 49 seconds growing it at uh a less than 10% I would say a higher singledigit number and 18:56 18 minutes, 56 seconds correspondingly the uh the uh secured book would grow at a much faster pace and this combination is going to lead to 19:06 19 minutes, 6 seconds the return on assets that we have given as a guidance at uh 1.6 and six percentages. 19:17 19 minutes, 17 seconds Anything on the margin or name? 19:19 19 minutes, 19 seconds Nim. Uh I think the second question of yours was on the NIM side. Right. Right. 19:25 19 minutes, 25 seconds All right. So uh what we are saying is the uh nymph for the for this year would 19:32 19 minutes, 32 seconds be at the same level of the uh exiting uh quarter right close to that number. 19:43 19 minutes, 43 seconds Okay. Uh okay. So we will be at closer to 8.4 8.5% you got riding. Yes. Yes please. 19:51 19 minutes, 51 seconds Got it sir. Got it. All right. Thank you. I'll come in the queue for more questions. Thank you and good luck with the next quarter. 19:58 19 minutes, 58 seconds Thank you. The next question is from the line of Serves Gupta from Maximal Capital. Please go ahead. 20:08 20 minutes, 8 seconds Um good afternoon sir and congratulations on a good set of number. 20:12 20 minutes, 12 seconds Uh sir just to understand this guidance little bit better you are saying that the names would remain at the same level 20:20 20 minutes, 20 seconds as exit quarter which is Q4. So what kind of OPEX growth are we investaging in this year? 20:34 20 minutes, 34 seconds Hello. Our cost to income, our cost to income ratio despite the investments that we are going to do will continue to 20:42 20 minutes, 42 seconds remain at the same uh percentages as we had in the preceding financial year which is 24 uh 25 26. So you would 20:52 20 minutes, 52 seconds expect to see the same cost to income ratio uh presiding as at 31st March 2027. 21:00 21 minutes Okay. So sir in the absence of uh not much of an increase in cost to income also. So uh you know just wanted to 21:10 21 minutes, 10 seconds understand like this 50 basis point compression in ROA that would be caused by which particular line item in your P&L. 21:24 21 minutes, 24 seconds So uh the uh the investments and new projects would be on branches on efficiency 21:33 21 minutes, 33 seconds enhancements and the others which are you know about marketing and new training programs efficiency would be on 21:41 21 minutes, 41 seconds IT projects AI investments lowcost channels and branches about infrastructure and uh staff costs. 21:51 21 minutes, 51 seconds Okay. Okay sir. I'll maybe take it offline to understand a little bit better. Uh sure. 21:58 21 minutes, 58 seconds Just secondly on the on the um you know like on the u on the uh secured side. So 22:06 22 minutes, 6 seconds you have um you know uh we have seen a higher yield for the overall book of the 22:14 22 minutes, 14 seconds on the secured side. So uh given the plans for next year, how are we seeing 22:21 22 minutes, 21 seconds this book behaving in terms of the secured book yield and what would be the main drivers here? 22:33 22 minutes, 33 seconds Uh this would remain more or less same as uh we have uh seen in the uh financial year 2526. 22:44 22 minutes, 44 seconds Okay. So this year we have seen a steady sort of a increase in the uh the secured 22:50 22 minutes, 50 seconds book yield. So do we expect now to stabilize it at this level or uh how do you see it? 22:59 22 minutes, 59 seconds Yes. Yes. Uh we we seem to be having the capacity to stabilize them at the same level as you have seen uh in the last 23:08 23 minutes, 8 seconds quarter, right? the that the the in fact uh in the third and the fourth quarter the enhancement in the yield which we 23:15 23 minutes, 15 seconds have seen generally would continue in the financial year 2627 as well. 23:22 23 minutes, 22 seconds Okay. Okay. And finally sir on the this fundraising when do you plan to do it? 23:27 23 minutes, 27 seconds Is it will it happen this quarter itself or what is the plan there? 23:33 23 minutes, 33 seconds uh our plan is to do it in the second half of uh the current financial year depending on the uh depending on the suitability of the circumstances. 23:45 23 minutes, 45 seconds Okay. Uh okay sir final one question if I may. Uh so given this RBI guidance uh 23:53 23 minutes, 53 seconds is there any specific number in terms of the secure book mix that we would want 23:58 23 minutes, 58 seconds to uh reach uh to because uh you know generally I think a lot of u you know 24:06 24 minutes, 6 seconds given the degrowth in the micro finance industry that we have seen I think normal micro finance growth could be 24:13 24 minutes, 13 seconds higher than a singledigit number. So are we sort of uh you know do we have a plan 24:20 24 minutes, 20 seconds let's say by when we want to reapply and hence we want to sort of uh you know not grow that book at a normative uh number 24:30 24 minutes, 30 seconds uh and grow only at a singledigit number or do we have a mixin plan uh uh for the next year that we want to read this mix 24:39 24 minutes, 39 seconds in secure. So if you can throw some more color on how are you thinking given that you guys want to reapply. 24:49 24 minutes, 49 seconds So RBI uh does not uh share or direct or guide a particular ratio. 24:56 24 minutes, 56 seconds uh uh we will have to devise our own uh means of arriving at a particular ratio 25:04 25 minutes, 4 seconds by an appropriate time before we you know contemplate uh applying to the Reserve Bank of India for transition to universal banking license. 25:15 25 minutes, 15 seconds Uh so we will continue to uh strengthen and enhance the secured book in a manner 25:22 25 minutes, 22 seconds that the journey is palatable uh maintaining the profitability underpinnings and to also ensure that 25:30 25 minutes, 30 seconds the ratio is uh better than what we had shown to the Reserve Bank of India. 25:38 25 minutes, 38 seconds So this will be a self-discovery I would say but certainly uh we will calibrate 25:44 25 minutes, 44 seconds and decide at what ratio by what time uh we need to abide by so that we are in a position to apply to reserve bank of 25:52 25 minutes, 52 seconds India for this year uh I can only guide that our uh secured portfolio would be a little upwards of 56 percentages. 26:03 26 minutes, 3 seconds Okay. Okay. Thank you sir and all the best. 26:07 26 minutes, 7 seconds Thank you. A reminder to all the part participants to kindly restrict their questions to only two. We'll take the 26:15 26 minutes, 15 seconds next question from the line of Abhishek M from HSBC. Please go ahead. 26:22 26 minutes, 22 seconds Yeah. Hi. Uh thank you for taking my question. So um so two questions. One is 26:29 26 minutes, 29 seconds your guidance on margins. So when you say margins will be stable from here uh and uh the secured book would reach 56% 26:38 26 minutes, 38 seconds from 49% uh from 49 uh 49%. Yeah. 26:44 26 minutes, 44 seconds If I look at the yields most of the secured book yields are lower I mean I understand you have some pricing power 26:51 26 minutes, 51 seconds in with your customer set but still most of the secured book yields are lower than your MFI and individual loan. Uh so 26:58 26 minutes, 58 seconds how do you plan to protect your uh margin with such a sharp change in loan 27:05 27 minutes, 5 seconds mix and at the same time uh do you see any further cuts in your TDS? Do you think you have room or you are actually 27:13 27 minutes, 13 seconds going to have to increase it a bit because of the competitive scenario. So just wanted to understand your margin guidance in the context of these two things. The second question is on opex. 27:26 27 minutes, 26 seconds Uh so if I split your opex into business costs where you are pushing up your secure book and trying to change your mix versus any kind of technology 27:34 27 minutes, 34 seconds upgrade or system upgrade or anything else that the RBI may have asked you to do as part of your conversion into a 27:42 27 minutes, 42 seconds bank. Uh how would you split it like the kind of opex growth you're uh seeing this year? What would it be driven by? 27:50 27 minutes, 50 seconds Yeah, those are the two questions. 27:55 27 minutes, 55 seconds So uh I think on the margin side uh we will uh continue to see uh some release 28:03 28 minutes, 3 seconds of the on the cost of deposit side. So we will benefit on the cost of fund side that uh also needs to be factored in and 28:12 28 minutes, 12 seconds uh also because of the health of the micro finance portfolio now in its prim shape the reversals of the uh of the 28:20 28 minutes, 20 seconds interest on on account of the NPS would also be lessened much lessened. So that uh is an area where uh we would also and 28:29 28 minutes, 29 seconds uh the release of the cost of funds or the cost of deposits is also what we are 28:35 28 minutes, 35 seconds going to witness. So these would be the if your in in terms of your cost of deposit coming off how much more repricing would be left? 28:46 28 minutes, 46 seconds Uh a benefit of a benefit of around 30 basis points is still still left. 28:53 28 minutes, 53 seconds Yeah. Yeah. to occur. Okay. And uh in terms the interest reversal uh now I 29:00 29 minutes guess that would already be there in the 4Q numbers right because now your power has gone down quite substantially. So do 29:07 29 minutes, 7 seconds you see further you know sharp improvements over there or how not not sharp improvements not sharp improvements but at least uh the new 29:16 29 minutes, 16 seconds book or the new exposure will behave very uh properly and therefore we'll not have any uh stress on that account. 29:23 29 minutes, 23 seconds Yes sir. But that would be in your forq numbers. In your forq numbers you're already reporting a 22 and a half maybe closer by 10 20%. 29:31 29 minutes, 31 seconds So on the mix change impact still remains the main issue. Right. Right. Okay. 29:39 29 minutes, 39 seconds So how will your nim be stable? That's again maybe 20 30 bit uh improvement from the cost of fund side that will be enough to offset the mix changes. Right. 29:51 29 minutes, 51 seconds We uh also have the uh two-wheeler and the proposed uh used car uh product that 29:59 29 minutes, 59 seconds we are going to launch. The two-heer has a substantive uh yield sitting on it. 30:05 30 minutes, 5 seconds Then we also have the uh gold loan which is you know upward of 14 percentages uh and and micro mortgages which are you 30:14 30 minutes, 14 seconds know at 19.8 percentages. So these three uh uh business verticals would continue 30:21 30 minutes, 21 seconds to support us uh on the yield side and the other uh secured businesses which are the housing and the MSME would 30:30 30 minutes, 30 seconds continue to maintain the yields that they have shown and uh basically uh help us to uh maintain the NIM overall with 30:38 30 minutes, 38 seconds the support of reduced cost of funds uh that I spoke about. 30:44 30 minutes, 44 seconds Got it. Got it. And the opex question uh on the OPEX I would uh request you if 30:51 30 minutes, 51 seconds you can uh get in touch offline to have more details about it. 30:56 30 minutes, 56 seconds Okay. Sure. Sure. Got it. Thank you. 31:02 31 minutes, 2 seconds Thank you. The next question is from the line of Koshik Agarwal from H Highong Security. Please go ahead. 31:11 31 minutes, 11 seconds Yeah. Hi sir. uh thank you for the opportunity and uh congratulations on a good set of numbers. So my first question is on the deposit front. So see 31:19 31 minutes, 19 seconds broadly uh your deposit growth has been slightly lagging the overall advances growth. However the kasa ratio has been 31:26 31 minutes, 26 seconds improving consistently. So broadly how do you see your kasa ratio for the next year? number one and uh is there any 31:33 31 minutes, 33 seconds possibility or you have taken any price hike on the TD side because lot of competitors have indicated that uh they 31:41 31 minutes, 41 seconds have taken some price hike on the term deposit side that is question number one number two is on the gold portfolio so 31:48 31 minutes, 48 seconds gold I was just checking the average ticket size on a Y basis for your book has gone up by 60% and but the eels are 31:57 31 minutes, 57 seconds also inching up marginally so I have seen there is a 30 basis point increase in the gold loan portfolio yield on a Q1Q basis. So can you just help us 32:05 32 minutes, 5 seconds understand what what is your strategy with respect to the gold loan book and the last is broadly on the asset quality piece. Is there anything which you can 32:13 32 minutes, 13 seconds indicate on the qualitative basis or for your customer segment uh uh in terms of any uh uh issues they're they are facing 32:22 32 minutes, 22 seconds from this uh West Asia conflict or any sort of uh early warning indicators that you are noticing in your portfolio. So yeah these were the three questions from my side. 32:37 32 minutes, 37 seconds So uh uh hi Hitendra. So if you look at our kasa ratio has improved by y y 1.75% and kok 1.28%. We at 28.6%. 32:49 32 minutes, 49 seconds We expect it to increase further. Uh it's very difficult to give exact number but it will be around 30% will be the 32:55 32 minutes, 55 seconds kasa ratio. Our focus will continue to be kasa but yes overall book will continue to grow. 33:03 33 minutes, 3 seconds Uh hi Kosik this is Vbhas. Uh on gold loan you're right our ticket size has uh you know increased during the financial 33:12 33 minutes, 12 seconds year. Uh at the same time our yields have also increased. Um you know ticket size naturally has increased because when we started gold loan initially we 33:20 33 minutes, 20 seconds were experimenting and working with mostly micro finance customers but today uh you know as gradually we have increased focus on open market and leads 33:28 33 minutes, 28 seconds from other verticles as well leading to higher ticket size. At the same time during the year we have also adjusted uh 33:35 33 minutes, 35 seconds interest rates for lower ticket size loans positively that has impacted yield positively. 33:44 33 minutes, 44 seconds Uh on your question about uh it was about CD ratio. So we have uh we have uh 33:52 33 minutes, 52 seconds basically tried to pivot ourselves around 88 to 89% CD ratio which helps us to manage with a uh with a lower uh 34:01 34 minutes, 1 second lower deposit growth that came in in the last year. uh and uh the CASA ratio is 34:08 34 minutes, 8 seconds what we are going to achieve is somewhere around 29 percentage 29 to 30 percentages. The 34:16 34 minutes, 16 seconds CASA ratio would be around 29 to 30 percentages. 34:21 34 minutes, 21 seconds Okay. So sir, so just continuing on this sorry uh sir just checking that uh are you building in any price or have you taken anything on the deposit front? 34:32 34 minutes, 32 seconds As of now, we are not contemplating any change in the deposit rate. We'll continue. We'll we'll watch this space closely and if anything happens, we'll 34:40 34 minutes, 40 seconds we'll calibrate accordingly. Uh as far as the risks to the various uh businesses on account of the Middle East 34:48 34 minutes, 48 seconds uh crisis, uh what we would like to say is that our uh portfolio is uh overwhelmingly domestic, granular and 34:57 34 minutes, 57 seconds retail in nature and we do not have any foreign currency lending exposure, no exposure to oil, gas, defense, aviation 35:05 35 minutes, 5 seconds and therefore our customer segment is uh more or less insulated from first order geopolitic political disruption. Uh but 35:13 35 minutes, 13 seconds we are mindful of the situation and therefore uh we have taken steps to ensure that we refresh our scenario 35:21 35 minutes, 21 seconds framework frameworks across all major verticals. We have stress tested our portfolio. Uh origination posture is 35:28 35 minutes, 28 seconds calibrated geography by geography and we have a heightened monitoring system in place. uh for example for two wheelers 35:37 35 minutes, 37 seconds used vehicle MSN working capital and uh monitoring has been tightened tighten and uh with strong provisioning and 35:45 35 minutes, 45 seconds capital buffer uh this provides us uh a very meaningful absorption capacity for any second order impacts. 35:56 35 minutes, 56 seconds Okay. Okay. Thank you sir. That's it from my side. 35:59 35 minutes, 59 seconds Thank you. The next question is from the line of Jark Sha from Union Mutual Fund. Please go ahead. 36:07 36 minutes, 7 seconds Hi. Uh thank you for the opportunity. Uh am I audible? Yes sir. Yes sir. Please proceed. 36:14 36 minutes, 14 seconds Yeah. Okay. Uh so sir uh uh I just have uh two three questions. So first on the ROA uh front uh so I understand uh what 36:22 36 minutes, 22 seconds you're trying to say is that since secure book will grow at a much faster pace there could be some uh pressure on the yields but at the same time it will 36:29 36 minutes, 29 seconds be likely compensated by the cost of funds and that's why the margins are going to remain steady state. Is that the correct understanding? 36:37 36 minutes, 37 seconds Yes. Yes please. 36:39 36 minutes, 39 seconds So then on what uh which are the levers where from current state of 2% ROA you are guiding for about 1.6% 6% ROA for by 36:48 36 minutes, 48 seconds 20 cent. So what could really uh drive ROA compression from the current exit ROA? So that's my first question. And uh 36:57 36 minutes, 57 seconds second question is uh uh since earlier you had guided uh for a uh 7030 mix between secured and unsecured piece uh 37:05 37 minutes, 5 seconds over the next 5 years uh with almost 55%age of change. So now will there be any change in that uh timelines 37:12 37 minutes, 12 seconds considering the re uh RBI's decision uh and uh will there be any change in strategy in that and lastly uh from the 37:20 37 minutes, 20 seconds 2,000 cr capital capric front uh would you have uh I mean could any uh sort of inorganic acquisition of uh uh secured 37:29 37 minutes, 29 seconds book uh be on the cards. So these are my three questions sir. 37:36 37 minutes, 36 seconds Excuse me, sir. Sir, if you're speaking, I suppose you're on mute. 37:48 37 minutes, 48 seconds Yeah. Yeah. Yeah, I can I can hear you. 37:50 37 minutes, 50 seconds So, uh we have no plans at this point in time for any inorganic uh acquisition 37:58 37 minutes, 58 seconds and uh we are maintaining the uh 1.6% at this point in time. uh uh these are the 38:07 38 minutes, 7 seconds numbers that we have worked out uh if there is any you know upside uh uh that could be possible. 38:18 38 minutes, 18 seconds Okay. Okay. So basically uh if I understand correctly so uh margins are going to remain steady state and uh uh 38:26 38 minutes, 26 seconds so you are just guiding it on a on on your estimates uh the 1.6% 6% but uh uh the current uh uh OPEX and the credit 38:34 38 minutes, 34 seconds costs also you don't see any material deterioration uh that could lead to any compression at an ROA level right? No. Would that be the right understanding? 38:43 38 minutes, 43 seconds Yes please. Yes. 38:44 38 minutes, 44 seconds Okay. Okay. And uh sorry sir I just missed uh this part on uh your timelines about the u 7030 mix between secure and 38:53 38 minutes, 53 seconds unsecured. If you could just repeat that. So uh we have broadly constructed 38:59 38 minutes, 59 seconds our secured and unsecured ratio for this year. Uh for the remaining years which 39:06 39 minutes, 6 seconds is uh 27 28 29 we are still in the process of uh deciding the configuration 39:13 39 minutes, 13 seconds and we would perhaps come back to you uh after a short uh period. 39:19 39 minutes, 19 seconds Sure. Got it. And sir so just understand trying to understand this one thing. So you already have a significant car on 39:26 39 minutes, 26 seconds your book. So you are fairly well capitalized. Uh then what would be the rational behind uh having uh you know 39:33 39 minutes, 33 seconds fresh cap raise uh since you are already well capitalized and you are grow you can grow organically also this well. So just trying to understand the logic behind that. 39:44 39 minutes, 44 seconds So we have uh we have already guided for a 25% uh growth on the asset side uh per year 39:53 39 minutes, 53 seconds and uh our board mandated uh threshold is 20%. We also need growth capital to 40:02 40 minutes, 2 seconds uh fund our appetite for the next three years. And therefore we think uh this would be the right time to fund 40:10 40 minutes, 10 seconds ourselves and to be uh to be replete with the capital that we would need for our fueling our growths for the future. 40:19 40 minutes, 19 seconds Understood sir. This is very very helpful. Thank you so much. Thank you. Thank you. 40:25 40 minutes, 25 seconds The next question is from the line of Ashesh Sunj from Kotek securities. Please go ahead. 40:31 40 minutes, 31 seconds Hi team, good evening. Uh two or three questions from my side. Firstly on the kasa deposit poke good to see the progress there uh in spite of cutting 40:40 40 minutes, 40 seconds rates. Uh the question is do you see any further scope to cut the pricing on TDS as well as SAR deposits uh and getting 40:49 40 minutes, 49 seconds them closer to where the midtier banks are? That is one. Secondly on the MFI book is there room to uh increase the 40:57 40 minutes, 57 seconds pricing there because we are uh still let's say at the lower end of the pricing of the market in general and 41:04 41 minutes, 4 seconds last one is a data keeping one if you can share the MFI slippage for the quarter. 41:10 41 minutes, 10 seconds Hi this is Hendra so on a saving account side we have re uh we have changed some uh rates interest rate on a higher uh 41:18 41 minutes, 18 seconds higher buckets. Okay. So we expecting close to 25 to 30 bits reduction on S cost of fund. We have no plan as of now 41:25 41 minutes, 25 seconds to repric our retail TD or bulk TD. We we'll wait and watch this space and we'll be competitive in the market. If anything happens to the market we'll 41:33 41 minutes, 33 seconds recalibrate but as of now we have no plan to change our interest rate on se on deposits. 41:40 41 minutes, 40 seconds Hi Liz. Um this is Vhas. On similar lines as itendri mentioned in my MFI book also we are not thinking of 41:47 41 minutes, 47 seconds changing interest rates at this point of time. We want to hold on to what we are charging at this point of time. 41:58 41 minutes, 58 seconds Understood sir. Thank you. And if you can share the slippages number for MFI for the quarter. 42:05 42 minutes, 5 seconds Uh slippages for MFI. Uh hi this is Gorum. slippages for MFI regard around group loan individual and put together would be in the range of 130 crores. 42:17 42 minutes, 17 seconds Okay, thank you. Those are all the questions ahead. 42:20 42 minutes, 20 seconds Thank you. The next question is from the line of Rajiv Ma from Yes Securities. Please go ahead. 42:28 42 minutes, 28 seconds Yeah. Hi, good evening. Very good numbers. I just have one question on this overall, you know, makes changing 42:35 42 minutes, 35 seconds into the current year. Uh so we we demonstrated pretty strong recovery in micr finance business in recent 42:42 42 minutes, 42 seconds quarters. Now we're talking about growing the book by 8 to 9% in the next year FI 27. So how would you restrain 42:49 42 minutes, 49 seconds growth? I mean we have a season leadership team who has navigated the cycle very well and you also have a large onground team uh you know in MFR. 42:58 42 minutes, 58 seconds So then would you just limit customer acquisition to pull down growth or or to pull down the current momentum and if 43:06 43 minutes, 6 seconds you do that uh wouldn't it be difficult to retain good people uh in the micro finance business. 43:16 43 minutes, 16 seconds Hi Rajie. Uh so you know we were slow actually we were degrowing our micro 43:23 43 minutes, 23 seconds finance book postg guardrail 1.0 even after guardrail 2.0 zero we start we our customer base was degrowing. 43:32 43 minutes, 32 seconds So the growth of this year would have two components. One the new customer acquisition and the second is the repeat 43:40 43 minutes, 40 seconds loans. Now most of the repeat loans that uh most of the customer acquisition that we have done would not be eligible for 43:48 43 minutes, 48 seconds repeat loans which is why you will see a slightly lesser growth this year as compared to the last uh as compared to what it could have been if we had done customer acquisition in the last cycle. 44:00 44 minutes So that is the reason why you will see a slightly lower growth. it may not uh 44:06 44 minutes, 6 seconds cross maybe 10 10 11%, single digit a higher single digit means around 9 10%. 44:13 44 minutes, 13 seconds So it is on account of the repeat loans that this is happening. 44:18 44 minutes, 18 seconds No but Ashish you will also have a lot of place or space for acquiring new customers as uh you know the guardra's 44:26 44 minutes, 26 seconds impact has got you know kind of is is going behind us and the eligibility of the customer pool who were restricted by the guard range in the industry once 44:35 44 minutes, 35 seconds they come out of that eligibility you [clears throat] know become eligible uh for for loans uh then I mean the obvious 44:44 44 minutes, 44 seconds uh you know uh lever to kind of to not grow faster is to limit the new customer acquisition. 44:51 44 minutes, 51 seconds So you know Rajie the way we've been looking at our growing our business is uh you know approximately 25 odd% new to 44:59 44 minutes, 59 seconds bank customers and 75% repeat. Uh we don't see a very big swing there in favor of the new to bank in the coming 45:06 45 minutes, 6 seconds financial year. Uh a a higher growth would mean that we may have to actually cross 40 45% new to bank. That's 45:14 45 minutes, 14 seconds something that we will be a little cautious about doing. Uh maybe 25 could go up to 30 but certainly not more than that. 45:23 45 minutes, 23 seconds Got it. Uh thank you. Best of luck. 45:26 45 minutes, 26 seconds Thank you. The next question is from the line of Sesh Kanani from MC. Please go ahead. 45:35 45 minutes, 35 seconds Yeah, good evening everyone. Uh thanks for the opportunity. Is my voice audible? 45:42 45 minutes, 42 seconds Yeah. So just my first question one more clarification on the ROA guidance. uh are we building in any contingency 45:49 45 minutes, 49 seconds buffer uh to be built up next year that is FI27 uh so that uh when ECL implements happen 45:57 45 minutes, 57 seconds we can kind of apply reapply for the universal banking license uh by contingency buffer you would say 46:04 46 minutes, 4 seconds additional provisions shish yes yeah strengthening the balance sheet more uh no we don't have a plan uh to that 46:11 46 minutes, 11 seconds effect shish for the next next financial year okay okay Uh okay the second second question was with respect to SA buckets. 46:20 46 minutes, 20 seconds So uh I remember Jan you had indicated that we had taken uh cuts in the SA bucket and you uh uh alluded to that as 46:28 46 minutes, 28 seconds well right but when I see the cost of points uh the cost of SA remains to be uh quarteron quarter at 5.2%. uh so just 46:37 46 minutes, 37 seconds wanted to understand that part I guess even in chapter we have taken one more star rate cut right so uh why it is not 46:44 46 minutes, 44 seconds getting reflected in the number so our uh am I audible hi yeah 46:52 46 minutes, 52 seconds so our cost of s exit march was 5.21% 21%. Okay. And what rate we have changed in April, we'll see a impact coming now. 47:02 47 minutes, 2 seconds So around 25 to 30 this reduction will happen as we go along from here. 47:08 47 minutes, 8 seconds So we had taken one in the month of Jan as well, right? If my memory serves right. 47:12 47 minutes, 12 seconds No no this rate this rate cut what we have taken I'm talking April. 47:17 47 minutes, 17 seconds Okay. In Jan we had not taken the star rate cut. 47:20 47 minutes, 20 seconds Yes. So we had taken that co advantage came if you look at January cost of fund was around five 47:28 47 minutes, 28 seconds sorry it was 5.25 which came down to 5.20 two. 47:33 47 minutes, 33 seconds Okay. Okay. So it's five five bits five bit minimal impact over there. That is an impact. That's right. Okay. Okay. Fair. 47:40 47 minutes, 40 seconds So this time this time we have taken rate cut on a MI book where my maximum book lies close to 33% of my book lies 47:48 47 minutes, 48 seconds in 10 lakhs to 10 crores. There we have reducer rate. So we'll see higher impact this time. 47:56 47 minutes, 56 seconds That's all from my side. Best of luck. Thank you. Thank you. 48:00 48 minutes The next question is from the line of Mahul Pani from 40 cents. Please go ahead. 48:07 48 minutes, 7 seconds Hello sir, thank you so much for the opportunity. 48:10 48 minutes, 10 seconds Uh most of my questions have been answered but I just one uh correction I mean one confirmation because I may have missed something. Uh so can a secured 48:20 48 minutes, 20 seconds lending continue to go at 35 to 45% while maintaining uh a low G&P. 48:30 48 minutes, 30 seconds Hi Mo. So you know the growth of our secured book is coming from both our established 48:38 48 minutes, 38 seconds products which is uh affordable housing and MSNE and new businesses which we 48:45 48 minutes, 45 seconds have started in the last 3 years micro mortgages gold loans two-wheeler agriculture loans 48:53 48 minutes, 53 seconds we've also initiated you know we've also built a book on working capital that's about 600 700 cr already. So when we are 49:03 49 minutes, 3 seconds building our book, the newer customer acquisition is a very diversified uh income profile. Working capital book for 49:11 49 minutes, 11 seconds us is about a cr average ticket size lap is about 60 65 lakhs. Uh and then there are the other businesses two-wheeler 49:19 49 minutes, 19 seconds micro mortgages which are at the lower end. So on the secured side as far as 49:26 49 minutes, 26 seconds G&P is concerned uh while the book is now seasoning but at the same time we've put an adequate guardrails around 49:35 49 minutes, 35 seconds maintaining our uh collection efficiencies. So micro mortgages, two-wheeler all of them are above 99.5% 49:42 49 minutes, 42 seconds on bucket X affordable housing MSME they are all at 99.77 99.75. 49:49 49 minutes, 49 seconds So in terms of GMPP I think we are broadly uh maintaining the asset quality uh as far as the secured benchmarks are concerned. 50:00 50 minutes Uh sir so uh uh can we uh expect to grow it uh in that range 34 to 45%. 50:08 50 minutes, 8 seconds Yes 40% is something that we have already planned. So 10% on unsecured, 40% on secured and therefore uh 25% average. 50:18 50 minutes, 18 seconds All right. And sir, my next question around the timeline for re uh for going back to RBI on the banking license. Uh 50:26 50 minutes, 26 seconds do we have any I mean I may miss the commentary but uh if you can help anything 50:33 50 minutes, 33 seconds as uh you know uh uh in the initial part I had uh enumerated that uh Reserve Bank 50:40 50 minutes, 40 seconds of India has only given us the guidance to uh improve further the secured unsecured ratio. Uh and that uh is is not a number that RBI guides or directs. 50:53 50 minutes, 53 seconds Uh so we will have to uh see how much this ratio can be delivered uh and what 51:01 51 minutes, 1 second is the appropriate time. We will have to sit down and decide and build a plan and uh based on an appropriate ratio being 51:10 51 minutes, 10 seconds achieved by us with a further guidance in the next few years we'll be in a position to take the call. Uh obviously that's not going to happen immediately. 51:23 51 minutes, 23 seconds And sir, how what what does this do to our uh you know two to three years uh road map because you know we may have 51:30 51 minutes, 30 seconds some road map based on the license being granted and now that you know I'm not saying it's a setback but I'm just trying to understand that how what have 51:38 51 minutes, 38 seconds what will be a changing strategy for the next 3 years 51:45 51 minutes, 45 seconds for 27 uh we have given the guidance and as I said we are in the process of 51:52 51 minutes, 52 seconds building the plan for the next 2 three years and uh we would then after finalization of our plan we would uh 52:00 52 minutes certainly be sharing that with you all uh in some at some point in time in the very near future 52:08 52 minutes, 8 seconds right sir so can can we expect in the next couple to interrupt you sir sir I would request you to kindly rejoin the queue for follow-ups please there are others 52:16 52 minutes, 16 seconds waiting for their thank thank you so much thank you sir we'll take the next question from the line of Saga Sha from Spark PWM. Please go ahead. 52:28 52 minutes, 28 seconds Yeah. Uh first of all, congratulations to the entire team of UG1 for posting excellent set of earnings. Actually uh 52:36 52 minutes, 36 seconds now my uh sir first question was related to our OPEX. uh uh you highlighted in your opening commentary that we are 52:46 52 minutes, 46 seconds guiding for around 20% increase in the branches actually as on March 26 we are 52:52 52 minutes, 52 seconds at around 776 branches so uh is safe to assume that uh we are likely to open at 53:00 53 minutes around 140 branches in the uh in next year or maybe in the next two years. Can you please clarify that broadly? Yes. 53:10 53 minutes, 10 seconds So I mean in FI27 we are going to open 140 branches. Yes please. 53:18 53 minutes, 18 seconds Okay fine. And uh my second question sir was related to our deposit growth. 53:24 53 minutes, 24 seconds Deposit growth has lagged in this quarter by around 200 bits actually as compared to our advances growth. Now uh 53:32 53 minutes, 32 seconds going ahead your guiding even for a very uh your guidance for kasa is at 53:39 53 minutes, 39 seconds around 30%. So we are not assuming very strong growth in kasa even though this quarter has been actually very good on 53:46 53 minutes, 46 seconds the number front. Now my question was related to that that how are we seeing 53:54 53 minutes, 54 seconds basically on the TD growth are you assuming at least a 25% plus growth in this quarter and what exactly measures 54:01 54 minutes, 1 second have you taken are you are you banking on some new geographies for such kind of healthy growth what is your strategy 54:09 54 minutes, 9 seconds going on this on the liability front yeah hi saga uh so first this 30% what we said was a kasa ratio not a kasa growth rate. 54:19 54 minutes, 19 seconds Yes. Casar Asian. Yes. 54:21 54 minutes, 21 seconds Okay. So, uh say our deposit book will grow in the line of our credit growth. 54:26 54 minutes, 26 seconds Okay. We will not lack here. And if you look at our uh growth in deposit has been steady since July August. Okay. We 54:33 54 minutes, 33 seconds had deliberately slowed down on deposit for 3 months because we had some excess liquidity. Thereafter we are seeing a a very healthy growth of deposit and our 54:42 54 minutes, 42 seconds focus will continue to book a retail TD book than a B side. I hope I can answer the query. 54:50 54 minutes, 50 seconds Yes. Yes. Yes sir. Certainly. Uh now my uh last question sir was related to asset quality. Asset quality in terms of 54:59 54 minutes, 59 seconds uh GL. Now the entire micro finance segment is doing well and it's actually 55:05 55 minutes, 5 seconds rebounding and I hope J1 also does well as especially in the loan. So uh is it 55:12 55 minutes, 12 seconds safe to assume that the last two years the kind of growth that we got got in the secured fund and that is why our 55:20 55 minutes, 20 seconds ratio between secured to unsecured were relatively went very quickly as comp towards secured growth. So now uh over 55:29 55 minutes, 29 seconds the next two years till FI28 is this is it safe to assume that it will be our book will look like a 55 45 55 towards 55:37 55 minutes, 37 seconds the uh secured and 45 towards unsecured what can be the ratio that you can write for sir 55:47 55 minutes, 47 seconds so uh as Mr. Nautial had initially uh in his initial comment said uh we will end March 27 somewhere in the range of 5644. 55:59 55 minutes, 59 seconds So yes while you said 5545 that is roughly the number that uh uh that was suggested earlier. 56:08 56 minutes, 8 seconds Okay. Okay. Thank you sir. Thank you and all the best. I'll return it offline for you. Thank you so much. 56:14 56 minutes, 14 seconds Ladies and gentlemen, this will be the last question for today which is from the line of Daril Zedi from Crown Capital. Please go ahead. 56:25 56 minutes, 25 seconds Hello. Uh sir, thank you so much for taking my question. 56:28 56 minutes, 28 seconds I'm sorry to interrupt you, sir. Sir, there is a lot of background noise at your Hi. Hi. Hi. Is this better? Hello. Yeah. 56:36 56 minutes, 36 seconds Hi. Uh first firstly, congratulations on a great set of results, sir. So sorry to har upon the question that a lot of people have asked but we are saying our 56:44 56 minutes, 44 seconds nim growth nims will be around the same level our opex will be around the same level and our credit cost is similar to Q4 then why will our ROA decrease from 2 56:54 56 minutes, 54 seconds to 1.6 six. I am just trying to find that a bit like hard to reconcile right 57:02 57 minutes, 2 seconds so like if everything is same then ROA should be similar to Q4 right like can is there anything wrong with that 57:08 57 minutes, 8 seconds assumption sir hello 57:18 57 minutes, 18 seconds hello here yeah 57:24 57 minutes, 24 seconds as Mr. Niel has uh you rightly said this is the fourth or fifth time we've got this question on the call uh what you 57:32 57 minutes, 32 seconds are not uh catching right now is the fact that uh we are being conservative 57:38 57 minutes, 38 seconds on both our opex and our credit cost and our guidance is coming from that place. 57:47 57 minutes, 47 seconds We do appreciate there are certain uh dynamics which may play out on couple of 57:54 57 minutes, 54 seconds our key products and covering for eventualities is where you're seeing the ROA at the guided level. Uh we will 58:03 58 minutes, 3 seconds certainly update you as we see any meaningful change in this particular number. We appreciate the sensitivity of 58:12 58 minutes, 12 seconds the same and uh that's where we would like to leave it for now. Uh fair fair enough sir and sir just wanted to 58:19 58 minutes, 19 seconds understand like uh a few of your peers were saying that they are seeing some kind of intense compens uh you know competition in terms of deposits. So do 58:28 58 minutes, 28 seconds we feel that you know there might like the 30 basis points improvement that we are hoping for they can come under some kind of pressure because like the 58:36 58 minutes, 36 seconds deposit uh you know deposits are just a bit hard to get right now. What are your comments on that sir? Uh hi Hendra as of 58:45 58 minutes, 45 seconds now we don't see any stress on deposit side this is it growing as per our expectation and going forward we maintain we we will maintaining the same 58:54 58 minutes, 54 seconds level of growth okay fair enough okay yeah that's it from my side thank you so much all the best thank you as that was the last question 59:03 59 minutes, 3 seconds for today I would now like to hand the conference over to Mr. Sanjie Nautil MGN CEO for closing comments. Thank you and over to you sir. 59:11 59 minutes, 11 seconds Uh I once again thank all the participants for their time and interest. Uh we at OG SFB we remain focused on delivering on profitable 59:20 59 minutes, 20 seconds growth while we build an enduring institution. Uh please reach out to our IR team for any queries that you may 59:27 59 minutes, 27 seconds have. Uh I would finally like to give the guidance of NIM around 8.5 59:33 59 minutes, 33 seconds percentages. The OPEX to ATO AT ratio would be uh 20 to 30 basis points above 59:41 59 minutes, 41 seconds financial year 26 due to the investments that we are making for the future growth and thereafter this these would decrease 59:50 59 minutes, 50 seconds uh hence the base case ROA of 1.6 percentages. Thank you. Thank you very much. 59:57 59 minutes, 57 seconds Thank you members of the management. On behalf of Ambbit Capital Private Limited that concludes this conference. We thank you for joining us and you may now disconnect your lines.