Questions across 84 calls

Abhijit Tibrewal

Motilal Oswal

LIC Housing Finance Limited

LIC Housing Finance Limited CC-Dec24.pdf · 2025-02-03

Just circling back on growth. Just trying to understand, I mean, if you could help us understand that between December and January, what was your disbursement run rate like? What was it in December and what was it in January?

Got it. And sir, just trying to understand, given that Bangalore is still weak and we are expecting maybe this month, next month, it will get better. But given that it is still not recovered, then being even in a quantum of IHL disbursements that maybe we did in 4Q of last year is unrealistic then, right?

LIC Housing Finance Limited CC-Sep24.pdf · 2024-10-29

Sir, first thing, a couple of times in the call, we shared that while we are focused on growth, there are two things I wanted to bring to your attention. One is where you shared that while growing the book is important, growing the book with better margin is also important. And at the same time, somewhere we also acknowledged the fact that our large balance sheet compared to lot of our peers, and which is where we can't be growing as fast as our peers. So what I'm trying to understand is today, if you look at our margins, they are already at decadal heights, despite an inferior product mix, your loan mix has moved increasingly in favour of individual home loans. Then, I mean, doesn't it merit that -- we focus more on bringing the loan growth, even if it means reducing the margins a little bit because we are already at a higher level than where we used to operate as a business model. And in addition, you have other levers, like the tweaking that you have done on your rate based on CIBIL scores, you're also bringing in the self -employed customer segment -- affordable segment now, self-employed affordable segment. So that is one question that I had. The second question is on the affordable segment itself. While we used to do salaried, affordable loans earlier, fact that we are now venturing into self -employed affordable segment, which in itself is, I would say, a very vulnerable and riskier customer segment. And if you look at, I mean, the smaller affordable HFCs that they have, it's a very, very, I mean, I would say, intensive -- operationally intensive business. So unless we build capabilities there, I mean, I'm sure you're not setting up a whole host of branches in Tier 2, Tier 3 cities. So that is the other thing that I wanted to understand that what was the rationale to venture into a self-employed affordable segment in addition to the fact that it gets you higher yields, 250 basis points higher yields. And the last one is actually a clarification. When we say that our back book yields get repriced on the first of every quarter -- first day of every quarter, am I right in kind of saying that they are not necessarily -- your loans that you've given to your customers are not necessarily linked to your repo rates, but instead because banks have reported home loans and because of competitive pressures, you actually reduce it to the same extent as the repo rate cut.

Yes, yes. You're right, you're right.

LIC Housing Finance Limited CC-Jun24.pdf · 2024-08-05

Three questions. Questions on margins. Sir, I mean, while we have already disclosed in the presentation that the recoveries were lower from NPA accounts Q-on-Q. I mean, just wanted to say that, I mean, if these things can be disclosed, I mean, in the quarter its elf, right, would help all of us. So that was one suggestion that I had. But more importantly, given that you're now working on asset quality resolutions, how should we kind of look at margins in the context that the recoveries actually tend to make it very volatile? That is the first question that I had. The second one was on growth. Sir, you remember, I mean, at the beginning of this year, you had guided for a double -digit loan growth, which I'm assuming was 10% kind of a growing growth versus that, the delivery in 1Q kind of leaves a lot to be desired. So I mean, how are we now kind of going to get to that 10% growth in this year? And lastly, sir, when it comes to asset quality and more particularly the provisioning cover that you have maintained on Stage 1 and Stage 2. Again, a very sharp decline that we are seeing in your Stage 1 and Stage 2 provision cover while I understand that a lot of these things come from the ECL model under IND AS. But I mean, if you can just explain what kind of leads to this volatility in the provisioning cover? So those are my three questions.

Yes, sir. And sir, lastly, if you can just share the Stage 3 numbers across this board.

Poonawalla Fincorp Limited

Poonawalla Fincorp Limited CC-Dec24.pdf · 2025-01-31

So, a lot of discussion has already happened on credit costs. I just wanted to ask the same question again a little differently to see if I can get a different answer. So, until now, from what I understood, we are guiding that credit costs will keep coming down sequentially, which is fair. We did say that we have taken onetime credit costs in STPL last quarter, which is fair. We also said that, I mean, STPL is now well calibrated, and we are confident of growing that book again. I'm just kind of referring to , I mean, if I just go back, while the whole management team itself has changed, we have a new management team in place, if I just go back maybe 3 -4 quarters back and go through transcripts and audio recording, I mean, we used to hear that the new book is very good. GNPAs are as low as 0.1% -0.2%. My one simple question for you, Arvind sir, is out of the ₹27,000 crores of AUM that you inherited, what is the credit cost that you expect on the inherited AUM?

Okay, sir. So basically, all that I was trying to understand is that I mean, while you said in your first earnings call that ₹6,000 crores worth of book was the extent of the problem, what was the quantum of the problem? All I was trying to understand is what was the extent of the problem in that ₹6,000 crores book? Essentially, I mean, out of that ₹6,000 crores, how much do you expect to be eventually written off?

Aavas Financiers Limited

Aavas Financiers Limited CC-Dec24.pdf · 2025-01-30

So, the first thing is, again, coming back to provisioning and asset quality while Ghanshyamji did explain about the change in ECL model that we have done and which is there, maybe it could have led to a onetime change in the PCRs across these 3 stages. What I wanted to understand is if I look at the last 10 quarter data, our Stage 3 provision cover has very slowly and gradually been inching up. So , while I understand this is an outcome of the ECL model that we have, but inherently, what is it kind of telling us about the risk metrics?

Got it, Ghanshyamji. The second question that I had was obviously around the demand environment while you did say that looking at trends in 3Q and Jan, it gives us that confidence that maybe we can be at the lower end of our guided range of the AUM growth? But I'm just trying to understand more and more NBFCs and HFCs as the report, they have been talking about a weak macro environment and given the fact that we also have a presence in the MSME segment? I'm just trying to understand how you are looking at basically, the risk environment today. When I recall you and Ashutosh sir, have called out that at least looking 1+DPD in GS3, you’re not seeing any significant increase in risk . But how are you looking at the broader macro environment today?

Aavas Financiers Limited CC-Sep24.pdf · 2024-11-07

Yeah, good evening, everyone. And thank you for taking my question. Sachinder sir again, kind of labouring on the spreads, compression that we've seen partly explained in the prior question. But we're trying to understand our earlier long - term guidance used to be spreads of 5%. For this year, we guided for 4.8% to 5%. Now, I mean, with a declining interest rate cycle ahead, although transitory, but the spread could be in further pressure going ahead. Plus, if we recall, sometime in March, we had taken a retail PLR increase of 25 bps. So, if you look at our yields that has not really kind of translated into AUM or portfolio yields. From that level, our yields are down. So now, if we are going to take another 25 bps increase in retail PLR, what is the confidence that we have with regards to this translating into improvement in portfolio yields is something I wanted to understand.

Got it, Ghanshyamji. Just one follow-up question to that. Sachinder sir, I'm just thinking a loud, please correct me if I'm wrong, while our BT outs at 5.2% annualised is indeed very good. I mean, in the last one year or so, given that our disbursement engine has not fired as what we would have liked, given that we are retaining customers and which is reflecting in lower BT outs, is that also one of the reasons why, I mean, our yields have been under pressure? I'm just kind of trying to understand, when we look at you at your size and scale and compare it with a whole host of smaller HFCs today, we have not seen that yield pressure for them. Is it about your size and scale, which is a little bit of a problem or how should we interpret that?

Aavas Financiers Limited CC-Jun24.pdf · 2024-07-25

Good evening, everyone. Thank you for taking my question. Sir first things first. I mean you spoke about disbursal yields earlier what were the disbursal yields in 1Q?

Got it. This is fair. Thank you. Sir, the other question that I had w as on spreads already a lot of questions have come your way on spreads. But given our guidance of 5% and now that we are eventually here, just trying to understand given the competitive intensity which is not allowing you to transmit higher cost of borrowings to customers? Are we also doing something on the mix side to ensure that even if cost of borrowing stabilizes and the competitive intensity remains this way which will mean continued pressure on yields? Are we doing something about mix as well to see to ensure that the spreads can at least be maintained at 5% kind of levels?

Mahindra & Mahindra Financial Services Limited

Mahindra & Mahindra Financial Services Limited CC-Dec24.pdf · 2025-01-28

Sir, first things first, I would say congratulations on a good quarter. But there are 2 things I wanted to understand. First thing is, we have been for the last couple of quarters, been talking about this benefit from ECL model to say, a provision release, which we have seen in this quarter and has resulted in a decline in provision releases . Just trying to understand what about benefit, which had to come from this ECL model, refresh, which we were expecting for the last few quarters? Are they already there? Or is there room for further releases in provisions for the next couple of quarters? That's my first question.

Got it. And just a follow -up on that. So, suffice to say that provision covers across Stage-1, Stage-2, Stage-3 that we are carrying today are largely going to be steady state from here on?

Can Fin Homes Limited

Can Fin Homes Limited CC-Dec24.pdf · 2025-01-20

Sir, just 1 question. If I look at the provisioning cover for our Stage 3 loans or NPA loans, last 4 quarters, they've been coming down from almost 48. 6% to 45% now. While if I look at our standard loans cover, which is our Stage 1 and Stage 2 loans, last 4 quarters, they've been inching up from 0.45% to almost 0.56% now. So how to read this? And why is it happening?

Got it, sir. And just one follow-up on that and then the next question. So sir going forward, what is that provision cover that we have on mind on Stage 3, a more stable and normalized kind of a number? And the other thing is, I mean, earlier in the call you suggested that things are improving in Karnataka and the resolution should not take very long given that it's more of an operational issue. Things get better during the course of this quarter. And let's say by March, April, when we get there, if things have been addressed then next year what is the run rate that we have in mind in terms of disbursements?

Can Fin Homes Limited CC-Sep24.pdf · 2024-10-23

Just 2-3 things first. First, just trying to understand while this has been a good quarter , I'm just trying to understand how should we look at the industry in general? Why I ask this is today if you look at the small ticket size or what we call as the affordable housing segment where we are seeing growth sustained. But if on the other side we look at some of the large HFCs who are slightly higher ticket sizes , there is indeed tightness in terms of growth. So , if you could just explain this dichotomy which is there from an industry per spective and then a related question that while for the full year FY25 you guided for 13%-14% kind of a loan growth, how is it going to translate into disbursement momentum for the next two quarters and then will we be running for higher loan growth from next year onwards?

First of all , as to your first question regarding the segment that affordable housing companies are doing better, and higher ticket loan companies are having an issue. Actually , if you look at our quarterly performance, in fact that same trend which we had in the first quarter is continuing wherein our (+20) lakh segment is where we are seeing the growth. And even if you look at the simple fact that the cost of construction also today even in the smaller Tier II towns, the property values are not anywhere below 25 lakhs. So, an affordable segment it's a different segment that you have a segment of unbanked or maybe all those kinds of appraised income where formal income segment is not there and all. But in our case in fact, it is a (+20) lakh segment where we are seeing the growth. So , I don't see any issue in that and as I also mentioned in the first part itself in the opening remarks , that our growth is in fact we have witnessed across geographies except for the state of Telangana. So, even Andhra Pradesh we have seen the same trend that across the board we are seeing the growth has come from the (+20) lakh segment. Maybe it could be some other reason, and we don't see that kind of a thing. Even in terms of sanctions if you see, our growth has been very strong in the Q2 compared to Q1. That's the reason we believe that there is a good amount of scope, and we don't expect the thing to come down. That is the first part. And in terms of your guidance that we are talking about 13% to 14%. See normally first half it's 45% and second half we witness normally 55% of the disbursements happening. That's the general trend. The second half is always better. Now if you go by that we have already done about 4 ,500 crores close to that we have done in the first half. Going by that argument another 5,500 is anyway is what it should happen even if you go by the past cyclical trend. That plus whatever extra push that we are making is what we believe will bring us to something more than 10,000 crores by the end of the year which is what should get us the 13 %-14% kind of a growth. I hope I have answered your question, Abhijit?

Five-Star Business Finance Limited

Five-Star Business Finance Limited CC-Sep24.pdf · 2024-10-29

Srikanth Sir, firstly I just wanted to understand, I am seeing on our slide 6, NIMs have expanded by almost 20 basis points QoQ. Is that the right observation?

I mean, how should we understand this, because I mean, all along what our understanding is there are no yield increases that you are taking, on top of that. I mean I would say cost of borrowings what you've reported is also largely stable and leverage is indeed going up. What explains this NIM expansion?

Five-Star Business Finance Limited CC-Jun24.pdf · 2024-08-01

Congratulations on again a good quarter and crossing that important milestone of 10,000 crores in AUM. Sir, first things first, I wanted to understand this very good improvement in the cash proportion in collections which has declined to 35% now . For the full year, you are still waiting for cash collections to decline to 30%. Just trying to understand what are those e fforts that have gone into this to kind of get here? Because like you recall , right, this was also something which was very widely debated cash proportion being high in the past . Sometime last year this used to be as high as 60 %. So, just trying to understand what changes have you done ? And do you now expect these things to be permanent and structur al in terms of change in employee , in terms of changing customer behavior?

So, effectively speaking now , I mean, from March onwards, all disbursements that we will be doing will have a free condition of an UPI auto pay.

Cholamandalam Investment and Finance Company Limited

Cholamandalam Investment and Finance Company Limited CC-Sep24.pdf · 2024-10-28

I had 2 questions. First thing, please, I mean, if you could comment a little bit on our view on the auto cycle. Sir, if you look at the last 4 quarters, vehicle finance disbursements have been in a tight range to INR12,500 crores to INR13,000 crores. And given that we are already talking about some slowdown that is being seen in PVs. How should we look at the auto cycle going ahead? This is something I want that Ravi sir to comment on. And the other thing is, maybe a related question here is, I mean, while you said October disbursements are looking better than September. If you could also comment a little bit on the festive season demand because from what we are able to gather, I mean, f estive season is not very good this time around. And sir, the second question that I had is Ravi sir, said, that in the month -- in the last quarter, we saw that CV delinquencies were higher, small CVs last month transportation has got impacted, both on the demand side as well as the delinquency side. So just wanted to understand, I mean, if you can throw some nuance around new and used CVs. Is there a significant difference in behavior that you are seeing between new and used CVs. Those are the 2 questions I have.

Got it, sir. And sir, just one more question that I wanted to squeeze in here. In addition to, I mean, this festive season demand, how is the festive period panning out? Sir, I think, I mean, somewhere you said that manpower increase is there across businesses and will continue in the foreseeable future. I just wanted to understand for how long do you expect this to continue? And at what point we will start focusing on improvements in productivity?

CREDITACCESS GRAMEEN LIMITED

CREDITACCESS GRAMEEN LIMITED CC-Sep24.pdf · 2024-10-25

Two things I want to understand . The f irst thing is in the slide and even in your opening commentary, when you call this a transitory or temporary increase in delinquencies, I think what we are wanting to communicate is that maybe this credit cycle that we have seen in the MFI sector today that could be more short-lived, could get over in this year rather than transitory in the sense that these are temporary operational difficulties and will get course corrected in the coming quarter. Is my kind of understanding correct when we use a word transient or temporary?

PNB Housing Finance Limited

PNB Housing Finance Limited CC-Sep24.pdf · 2024-10-24

First of all, congratulations on a good quarter and again, congratulations to Girish sir for recently completing two years at PNB Housing. First of all, thank you for, very enhanced disclosures that you are giving in the presentation. I think we also started to note incremental yields. So, I think that's where my first question also was, that in terms of incremental yields that we have given out in Prime, Emerging and Affordable, what proportion of this increase in incremental yields that we have seen over the last two quarters has come from our product mix change and what percentage has come from an increase in yields that you have been able to take in home loans?

And sir, I mean, just a related question on yields again. Emerging, Affordable, we can understand. But the fact that you are also able to take yield improvements in Prime is just commendable, given the kind of competitive landscape that we have in the country. So, what is allowing us to improve yields even in Prime?

PNB Housing Finance Limited CC-Jun24.pdf · 2024-07-25

First of all, I mean congratulations on a good quarter. So, first thing I wanted to understand is, I mean, this Fair Practices Code for Lenders charging of interest in the circular that came out from RBI on 29th April. How have we handled this circular? Ba sically, this circular talked about recognizing interest income only after a DD or Cheque was handed over to the customer. So, I mean, the disbursements and the loan advances that we are showing today and the recognition of interest income. Is there any component of interest income reversal in our interest income that you have reported?

I think my question was around, I mean, recognition of interest income after that 29th April circular, which talked about recognizing interest income only after a Cheque or a DD was handed over to a customer.

IIFL Finance Limited

IIFL Finance Limited CC-Sep24.pdf · 2024-10-24

Just again circling back to the gold loan business, we have also seen a management change in our gold loan business; Mr. Saurabh Kumar has moved to a group role now. So, are we now looking to appoint someone internally to lead this business or are we looking for an external hire? Also, I mean earlier in the question when Dhaval asked about your outlook on gold loan business, we shared that we are looking for normalcy to come back by March quarter end and maybe go back to where we used to be prior to the ban. But are we working with some loan growth targets now in mind if not for this year, at least from next year onwards? That is my first question.

So, the question is, while we said that by March quarter end, we are expecting that we will be where we used to be prior to the ban in the gold lending business, not in terms of loan book, but in terms of momentum. So, I mean if not for this year at least from next year onwards, are we thinking about how we want to grow in terms of some loan growth targets for the gold loan business?

IIFL Finance Limited CC-Jun24.pdf · 2024-08-07

I had three questions , first one on gold loans. Nirmal sir, you had shared in the last Quarter’s Earnings Call that in case we do not get RBI's approval, or the ban is not lifted, then maybe we will look at sourcing loans for other banks acting as BCs. So, just wanted to check, I mean, while you have already said in your opening remarks that we are very confident that this ban should be revoked sometime soon, are there other proposals also which have been evaluated? That is on gold loans. The second one again a related question, I mean , gold loan, while there is a ban, we are also seeing slower disbursements in LAP as well as MFI. MFI you said there is some liquidity problems which are there after there was a ban, so just trying to understand, because when we talk about MFI, the kind or the extent of stress or pain that we are seeing in the sector for some of the other listed MFI players has not shown that kind of a stress on our balance sheet as yet . So, if Venkatesh sir can comment on different states, some color there on the MFI business. And lastly, in terms of the ARC transactions that we have done during this quarter, if you can just kind of throw some light on that from the CRE book? And out of the total quantum of SRs that we have on the balance sheet , what is the provision cover that we have on the S R? Those are a few questions.

Sir, just wanted to have some more color from Venkatesh sir as well in terms of the sectoral stress which is there in the MFI space today. I mean , not quite seeing that same stress in our book as yet. So, what is the view which is there? I mean , yesterday also there numbers were reported and they talked about very high leverage building up at customers ’ end, customers having more than five lenders lending to them. And that proportion of such customers were more than four, five lenders has actually shot up significantly in the last 12 months. So, what is our view on this? Thanks.

Manappuram Finance Limited

Manappuram Finance Limited CC-Jun24.pdf · 2024-08-13

The first question is more of a data question. What was the gold loan disbursements in this quarter? And what proportion of those gold loan disbursements were top up loans?

Sure, sir. The second question, again, on gold loans was, sir, in the last question itself, you kind of referred to seasonality, which is typically there. So from what we understand, typically 4Q, 1Q -- 4Q and 1Q tend to be seasonally stronger quarters because of reasons that you yourself have explained multiple times on these earnings calls. Now 2Q, 3Q, I mean, just trying to understand, are we kind of heading into slower growth for the next two quarters before it kind of picks up again in 4Q?

Home First Finance Company India Limited

Home First Finance Company India Limited CC-Jun24.pdf · 2024-07-26

Congratulations Manoj & Nutan. I think I mean the way in which we kind of keep improving our disbursements, delivery, healthy AUM growth without any significant impact on the margins, and our BT outs in particular, is really commendable and which is there I mean my question revolves, when we look at peers, the broader affordable housing sector, everyone talks about very high competitive intensity which is not allowing them to really pass on PLR hikes. There are players who have taken PLR hikes, but it's not really reflecting in their yields because it's not been absorbed. You partly answered this question in the first question that was posed to you. Just trying to understand what is it that will help us kind of take this PLR hike, maintaining yields at similar levels or like Manoj said can improve by 10- 15 basis points from here and yet keep our BT Out at these good levels?

The last question that I had was again on the liabilities. Nutan, just wanted to understand, maybe couple of quarters back we were saying that maybe one more quarter from now you are expecting the cost of borrowings to start stabilizing. Now that the spreads are very close to 5%. How we're looking at our cost of borrowing stabilizing and what could that translate into spreads and margins?