Stockrabit · Analysts
Questions across 84 calls

Abhijit Tibrewal

Motilal Oswal

PNB Housing Finance Limited

PNB Housing Finance Limited CC-Oct25.pdf · 2025-10-27
Hi, good evening, everyone. Thank you so much. Sir, there's just 2 questions really. First things first, we have taken a PLR cut of 10 basis points until now, while if I look at some of our larger peers, LIC Housing, Bajaj, even a smaller player like Can Fin Homes, they have taken a higher PLR cut than what we have taken. While I appreciate the fact that we have been able to maintain very healthy yields and margins, are we not seeing higher BT outs, particularly in the Prime segment now? And I remember Vinay sir saying that maybe at some point in time, we will look to pass on through some PLR cuts, maybe in the subsequent quarters. So, how are we thinking about that, if you could just explain that? And are there more benefits expected in the cost of borrowings? Why I asked this is I remember sir making that comment that even in the second half, margins will remain between 3.6 % to 3.7 %. So, are there more benefits which will be expected? Because from what I understand, yields will remain und er pressure if we were to pass on more PLR cuts in the coming quarters.
Got it, sir. And then, sir, in the opening remarks, we spoke about this corporate account, which has led to some initial release. So just two subparts, more of a data keeping question. One is, how much exactly was the ECL release on this account? And also, if you can, basically, qualitatively speak a little bit about this corporate account, which corporate account , without naming it, of course , some details about this corporate account, how much was the total exposure?

HDB Financial Services Limited

HDB Financial Services Limited CC-Oct25.pdf · 2025-10-15
Good evening, sirs. Thank you for taking my question. So, a couple of things. In your opening commentary, you spoke about some stress that we saw in CV in 1Q and that continued in 2Q as well. You also spoke about some vehicle idling, which in 2Q was much higher than prior years. Likewise, in the last quarter, you had shared something around MSME that we have seen. If you could just touch upon that. In addition to that, are there any other new er retail stress segments which have emerged within the quarter? That is my first question. The second question was, now that we have practically seen through almost the festive season, maybe another five days to go, what is the view that is emerging? I remember you ended your opening remarks by saying that in the first few days of October, we are seeing a good retail uptick. So, if you could just, for the benefit of all of us, kind of dwell on that, how has the festive season been, both Navratri and what is Deepavali looking like? And lastly, sir, given that you are among the first NBFCs to report in a new season, if you could just kind of speak about some of the trends that you would have seen in the last quarter, that would help all of us? Thank you, sir.
Just a follow-up there, sir. So you spoke about this positivity in the festive season. We have seen that across both auto as well as consumer durables?
HDB Financial Services Limited CC-Jun25.pdf · 2025-07-15
Yes. So, I don't know if you heard me. I was trying to say, first of all, congratulations on your first earnings call. I just had two questions. First is, you put out your disbursement mix in the quarter. So, I was seeing that Asset Finance disbursements were down almost 15% Y-o-Y. So, I was just trying to understand, if I look at the industry numbers, industry volumes, the volumes are not down to that extent. So, what is it that is leading to some weakness in terms of disbursement and growth in our Asset Finance vertical? And second, in terms of asset quality, our 30 + DPD is up almost 90 basis points Q-o-Q. So, some weakness that we are seeing in asset quality. So, if you could just help us understand, this is more in the nature of the seasonality that we see in the first quarter, o r is this more looking like some weakness in macro, which is contributing to it? And also, if you could help us understand, this weakness is more pronounced in vehicle financing or some other customer cohorts in Consumer Finance. So, just these two questions. Thank you so much.
Got it. Just one last thing as a follow up. In terms of provisioning cover, if I am seeing this correctly, our provisionin g covers on Stage 1 and Stage 2 have declined sequentially. So, just trying to understand, is this more a function of the EC L model? Because, I mean, all I'm trying to understand is if the macros are still weak, what is kind of going into the EC L model for it to churn out lower provision covers on your Stage 1 and Stage 2 loans?

Aavas Financiers Limited

Aavas Financiers Limited CC-Jun25.pdf · 2025-08-12
Sir, 2 things. Sir, first thing is just trying to understand from what you have reported in terms of yields, it looks like we have not done any PLR changes during the quarter. So just trying to understand in July and August, have we made any PLR changes?
Got it. And what's the thought process like now? I mean we will also be reviewing sometime in the third quarter is what most of your peers have shared. Is that the same thought process we also have that PLRs will be reviewed sometime in the third quarter?
Aavas Financiers Limited CC-Mar25.pdf · 2025-04-24
Yeah. Good evening and thank you for taking my question. So, I mean just kind of circling back to the provision cover that we have increased in this quarter for a long time, I mean, this number used to be in that range of, I would say, 27% to 30%, thereabouts, right? And we did share that we have changed the methodology. But my question here is today, when we look at the large housing finance companies who are predominantly operating in the prime segment, they are all maintaining provision covers of, I would say, 40% to 55%, some of them even 60%. But if I look at all the affordable housing finance companies, most of them have until, let's say, last quarter, even you had a provision cover of about 30%. So today, I mean, I see provision cover of about 25% to 30%. And now with this change in methodology, it's increased to about 32%. Do you think there is a case that over a course of time, you as well as all your affordable housing finance peers will have to increase their provision covers towards that 40%, 45% to 50%.
Got it. Thank you. The second question that I had that the runoff in the book looks slightly elevated while you did acknowledge that there is an endeavour to maintain the disbursement yields by strategizing on the product type and the product segment. Just trying to understand, I mean, we have seen already 2 rate cuts, maybe a third one in the offering in the near term, has anything changed in terms of aggression of your HFC peers or PSU banks, which would warrant that maybe going forward, that could be either higher BT pressure or pressure on yields to retain customers?

Manappuram Finance Limited

Manappuram Finance Limited CC-Jun25.pdf · 2025-08-08
Bindu ma'am, you just said gold loan yields of 20.7% in 1Q. If you could also remind us what was the yield in the fourth quarter? And the related question here, so while Nandakumar sir said that the idea is to bring down the gold lending rates to be on par with the leading gold NBFC players, right? So I think today, the leading gold NBFC players are all at around 17.5%, 18%. So are we saying that over a period of t ime, our gold loan yields will also gravitate towards 18%? If the answer is, yes, over what period, over how many quarters can we expect this gold loan yield to gravitate towards that 18%?
Got it. And sir, just a related question -- yes, ma'am, please go ahead.

REC Limited

REC Limited CC-Jun25.pdf · 2025-07-31
Sir, two questions from my side as well. So first thing is, I mean, this quarter, we have done distribution capex of almost finance and distribution capex of almost INR18,500 crores. So typically, in the past, I mean, sanctions or disbursements towards this segment used to be very low. So what is it exactly, if you can just help us understand, please?
Got it. And sir, are we referring to that same split that we gave in the sanctions and disbursements, what we call as distribution capex. So are these working capital loans, which you explained is 35% of the revenue of the preceding year, basically within the limit of 35% revenue of the preceding year.
REC Limited CC-Mar25.pdf · 2025-05-14
So first thing, just trying to understand, out of these 12 projects that we now have under NPA, I mean, have we shared some projects which are in advanced stages of resolution and which could potentially get resolved in this year? Why I ask is during your opening remarks, you also shared the fact that we would look to get to net zero NPA by the end of this fiscal year. So if you could just help us understand some of the projects which are in advanced stages of resolution, and what is the progress in each of those projects?
Got it, sir. And sir, the other thing I wanted to understand is while we've spoken a lot about these prepayments and the fact that some of these happened in the normal course, but in a declining rate environment, I think banks will be much more aggressive in kind of trying to get some of these projects that you have financed today. So I mean, what are we trying to do around it? Basically, I think you spoke about some retention schemes or retention policies that you have in place. But I mean, beyond the RBPF, I think in a declining rate environment, otherwise also, there is going to be that pressure which will be there on the rundown in the book, the prepayments. So what are we kind of trying to do to address that? And the last question that I had was again on the RE side. Sir, obviously, I mean I think Gensol was a one-off example of maybe misgovernance. But just trying to understand, on the RE side, how are you looking at things? Is there a case to believe that maybe in the next 12 to 18 months, we could see more such issues coming out of the RE sector? And sir, I also explain why I am kind of questioning that, in the past, whenever we spoke about stressed assets in the thermal sector, we have always prided that there were no stressed assets in the state sector. Large part of it were in private. But if you look at the RE side today, right, large part of the financing that has happened on the RE side is predominantly private in nature. So what are your views on the RE financing and how asset quality could evolve over the next 12 to 18 months?
REC Limited CC-Dec24.pdf · 2025-02-10
Sir, first things first, I mean, while in your opening remarks, you've already spelled out the 4 projects. But if you could also give the breakup of this INR2,2 00 crores that we spoke about just once again, for the benefit of everyone. That is my first question. The second thing is, sir, this 9 months of this fiscal year, if you could also give the spli t of disbursements and sanctions between private and public. The thi rd and the related question to RE again is, sir, this time, we spoke about prepayments that we got from ACME and you also explained that they went for a public IPO and subsequently, it was part of their mandate to repay REC. If you could just help us understand how should we look at prepayments now from the REC -- from the RE book? Is it going to be elevated going ahead as well?
Got it. Sir, and just one small follow-up on that. Sir, while w e kind of keep saying that RE majority of it is private sector projects, I mean, is the under standing correct that, I mean, despite they being private, what still gives us a lot of confid ence of doing private in RE is because all of it or most of it is PPA backed? Or they have PPAs?

IIFL Finance Limited

IIFL Finance Limited CC-Jun25.pdf · 2025-07-31
Yes. Good afternoon, sir. Thank you for taking my question. Just two questions. I do not know if they have been covered earlier. I joined a little late. First thing is this micro LAP portfolio that we have in our housing finance subsidiary, we should be able to leverage SARFAESI, right?
I was trying to understand is if we can leverage SARFAESI for this micro LAP portfolio and also is the quality of collateral and the size of the loan good enough to really leverage S ARFAESI and try for recoveries? That was my first question. The second question is for Nirmal sir. So, just trying to understand what happened in gold loans in this quarter. Very, very strong growth. So, compliments to you for that. But what I am trying to understand is usually the gold loan growth that one usually targets in a year has come in the 1st Quarter itself and we are seeing very, very strong growth in gold loans in this quarter across the industry. So, what really happened in this quarter which has led to such a high spurt in gold loans?
IIFL Finance Limited CC-Mar25.pdf · 2025-05-09
Yes, good afternoon, sir. Thank you for taking my question. So first thing is, again, on this FY26 guidance that you have put out in the presentation, I just wanted to understand when we are guiding for interest spreads of 6.9% to 7% versus 6.7% in FY25, I mean, what are the underlying drivers for that? Basically, what I'm trying to understand is earlier during the call, we spoke about doing more secured. We have also given a guidance that MFI is not going to grow very highly this year. You've guided for 5% to 10% growth. So is it coming from a change in product mix or is it some benefit of cost of borrowings that you are making in for a higher guidance on interest rates? That's the first question.
Okay, sir. Thank you. So the second question that I had was for Manu sir, more particularly on the housing finance business. If you could just share two things. One is, what is the one plus DPD that we are seeing today in the housing business? And so I mean, last year, arguably was a very tight year, particularly for unsecured, but of late, we've been seeing some tightness in collections in the affordable housing side as well. While we do a very wide spectrum of products, in the fourth quarter, we've reported a minor asset quality deterioration, which again, by any width of imagination is not bad. But I mean, what is your view? I mean, are we seeing early signs of some spillover from unsecured into the affordable housing segment now? Or is it just some seasonality, some weakness in government spending, which is leading into lower earnings in the hands of customers? And which is why some tightness in collections that we are seeing today?
IIFL Finance Limited CC-Dec24.pdf · 2025-02-13
Sir, t wo questions really. First one on your gold loan business. I think we saw some good momentum during this quarter, almost 39%, 40% up Q -o-Q. Just trying to understand somewhere I think we have also guided that by the end of this year, we want to get closer to where we were prior to the bank. So I mean, what progress are you making in that direction? Is the demand strong enough for us to get us there? And then in your press release, you've also spoken about some pressure on gold loan yields since you've been trying to regain customers. So just trying to understand again what is it that you are doing there and what impact it could have on your gold loan deals going forward? And the second question I had, again, was on the MFI business. Undoubtedly, the sector is going through its share of pain. We have seen that in other MFIs as well. For us, in our assessment, what is the extent of the pain? And is there any ballpark credit cost guidance you can give out? And for us, by when do we expect things to start improving maybe 1, 2, 3 quarters from here? Those are the 2 questions.
And sir, I mean, there are other MFIs also who have started now reporting their current bucket collection efficiencies just to kind of impress upon us that maybe December, January things have gotten better versus October and November. Is this something that we have also seen and/or for us, I mean, things are still where we were in October and November?

Bajaj Finance Limited

Bajaj Finance Limited CC-Jun25.pdf · 2025-07-24
I stepped away from my desk for a couple of minutes. So let me know if any of my questions is a repetition. I can look up the record. So 2 things I want to understand first a clarification. Rajeev sir, you said AUM growth guidance of 23% - 24% versus 24%, 25% that we guided last quarter. So is it factoring in the lower guidance given by Bajaj Housing Finance yesterday.
Got it. Look, sir, the reason -- the only reason why I was asking is -- in the past, we have seen that whenever certain segments have shown stress like what you're seeing in the MSME and two-wheeler, we have consciously slowed down, which we have shared -- so I mean, are there other levers in other product segments that we can flex to deliver on the assessment that we made in the last quarter?

Bajaj Housing Finance Limited

Can Fin Homes Limited

Can Fin Homes Limited CC-Mar25.pdf · 2025-07-21
Yes. Thank you, sir, for taking my question. Sir, just two clarifications. First thing is, as you said that 67% of the customers are still on an annual reset. Suffice to say, right, that in the next maybe nine months or so, I mean, on a rolling basis, all the customers will get benefited to the extent that we have taken the PLR rate cuts.
Got it. And sir, the other thing I was just trying to understand, just referring to Slide 25 of your presentations, where -- presentation where you did the rundo wn ratios every quarter, right? So while I understand we are in a very different rate cut cycle, we are declining rate cut cycle now. But typically, if you look at that slide, if every Q1, there used to be a dip in the rundown rate compared to Q4. We've seen that consistently for the last three years. This year, it has marginally inched up. So basically, all I'm trying to understand is, is there a rate queue for balance transfers here, because earlier in the call you had shared that out-of-the total rundown of 15%, 15.5%, just about 4% is weekly out. So what I was just trying to understand i s that, sir, 100 basis points repo rate cut has already happened. Most of the PSU banks, right, at least from the bank book has passed on 100 basis points and are also doing similar or a slightly lower cut in the newer disbursements that they are doing. And despite that, I mean, across the industry, I'm talking about the HFC industry, A, like you had mentioned earlier, except we and LIC, none of the other HFCs have taken that kind of a PLR cut as yet. And despite that, the balance transfers are not inching up. So how should we read these two things is what I was trying to understand?

CREDITACCESS GRAMEEN LIMITED

CREDITACCESS GRAMEEN LIMITED CC-Mar25.pdf · 2025-05-16
Good evening, sir. Thank you for taking the question. First thing is just trying to understand in our FY26 guidance, we spoke about this 8 -12% kind of growth in the group lending business, the JLG business. And you also highlighted this is because of some accelerated write-offs which are expected in H1 FY26. I am just trying to understand why this year the growth is low? What credit can we start seeing the group lending business growing, maybe from FY'27 onwards? So asking this because, I mean, we understand what the industry has gone through. And to that extent now, I mean, after some of this stress from over -leveraging is behind, then at what rate can the industry be growing and within that what could our growth look like in the group lending business?
Got it. This is useful. And then the second question that I had was, I joined a little late. Have you already covered what we are seeing in Tamil Nadu after the introduction of the bill? Now, why I ask this is that very often we try to understand that, I mean, what we saw in Karnataka, we saw some bit of it growing in media, whether we talk about some news flow around suicides in Karnataka and then the Karnataka ordinance. But I think from what I gathered by speaking to a few other MFIs, i s also the fact that no one saw this Tamil Nadu bill coming while everyone acknowledges it is not really applicable to regulated entities or MFIs for that matter. So the related question is A, what is happening in Tamil Nadu today? What is it that you seeing? And the other thing is, are there any other states except let's say Karnataka or Tamil Nadu, where there are some problems today and going forward, there could be some such ordinances or ordinances to get passed?

Cholamandalam Investment and Finance Company Limited

Cholamandalam Investment and Finance Company Limited CC-Mar25.pdf · 2025-04-28
Yes. Good morning, everyone and thank you for taking my questions. Just two questions trying to understand first thing from Arul sir. Sir, this year, how are we looking at our cost of borrowings getting repriced ? With the assumption of maybe one or two more rate cuts in the coming quarters, how would you look at cost of borrowings coming down? And to that end, given our home loan, LAP and SME book, our floating rate, what proportion of it will be passed on eventually? What margin expansion can one build in this fiscal year? And the second question is for Ravi sir. Sir, just trying to understand, I mean, very clearly, there is a tightness in terms of collections, which is evident also showing up in credit costs. This year, all 4 quarters, credit costs in absolute terms, all were in a very tight range. So, when we say next year, the credit costs will be lower, what has to change from where we are today, what we saw last year? And what has led us to where we are today? So, from here, what has to change for the environment to improve and credit costs to come down next year? These are the two things I wanted to understand. And I will just squeeze in one last question. We have already announced the launch of our gold loan business. If you can give some colour around, how are we approaching the gold loan businesses, which geographies we will target and the ticket sizes that we will be looking at? And eventually in the next 1 or 2 years, what proportion of the loan mix can gold loans become?
Got it, sir. This is all from my side. Thank you and wish you all the very best.

Muthoot Finance Limited