Just one question. In your credit cost guidance for FY '25, are you factoring in further reduction in ECL provision in Stage 1, 2, 3 assets in second half? This quarter as well we have seen reduction in ECL provision. That is why I wanted to check on trajectory of ECL provision going forward?
Questions across 8 calls
Ajit Kumar
Nomura
Cholamandalam Investment and Finance Company Limited
Mahindra & Mahindra Financial Services Limited
Thanks for taking my question and good evening, everyone. I had two questions. First what is the reason of sudden steep decline in capital adequacy ratio. It is down 180 bps Q-on-Q. And any plans of capital raise when CAR looks to be very close to minimum regulatory requirement? So that is first question. And second one, on growth again, while you have already given qualitative feedback, what would be your disbursement and loan growth target now for FY '25, especially? You had earlier guided for low-teen disbursement growth in FY '25, which now looks difficult to achieve. So yes, I mean these two questions from my side.
Sure. Thank you everyone. Thanks a lot.
Five-Star Business Finance Limited
Most of my questions have been answered. Just one or two quick questions. First, following up is on your ECL methodology. Just wanted to know how many years of data do you factor in the model and has it changed in recent time? And also, at what frequency do you revise or reassess your model assumptions?
One last question. Harping on this incremental cost of fund, which has gone down sequentially from which stream of funding this decline is coming -- is it majorly from bank funding where pricing has come off or from bond market borrowings?
My first question would be, what is the need to keep 55% provision on your restructured book because I guess most of the restructure d book would be classified under Stage-2 and now we already have 55% provision on GS3, s o what is the requirement of keeping this 55% provision on as the restructured book?
And second question would be, how is balance transfer out trending as of now versus historical level be the out rate?
So, two to three questions from my side. First one is, if I look at your state wise A UM numbers, growth in AP has been quite strong from past five to six quarters , higher than the overall AUM growth. Any specific reason for this and do you expect this trend to continue?
Second question is, how should we look at the branch addition going forward? You had guided earlier 60 to 70 branch addition every year, but this quarter itself we have added roughly 70 branches. So , what will be the momentum going forward as well?
SBI Cards and Payment Services Limited
Thanks for the opportunity. Just wanted to check on your ECL coverage and method to calculate it. If you look at a stage-wise PCR on Stage 1 and Stage 2 asset coverage has been coming down from past few quarters, even on a stage 3 our coverage has come down in this quarter versus last quarter. So why is coverage going down especially on the Stage 1 and 2 assets when it has been going up from a fairly long period of time like from last 8 to 9 quarters. And will you consider ramping up coverage ratios going forward?
Sure. That’s it from my side. Thank you.
CREDITACCESS GRAMEEN LIMITED
So, my first question is the regulator has been instructing MFI lenders to lower growth in Bihar and UP as per various news articles. Is there any communication that is currently going on with the regulator on this and also your portfolio in Bihar and UP has become 3x and 4x respectively between FY22 to FY24, much higher tha n the overall AU M growth. Are you going to intentionally tone down growth in these states that would be my first question.
Sure. And sir in order to achieve this 23 % to 24% AUM growth target in FY 25, what is the disbursement growth target in FY25?
Sir congratulations for a great set of numbers . The first question is on disbursement yield which has increased by another 10 basis points sequentially. Is there any plan or scope of increasing this further from here on?
The s econd question is on the number of employees which has increased substantially in this quarter the increase is by roughly 1 ,800 and which is quite higher than the normal run rate and this is despite the fact that your number of branches has increased by usual roughly 50 branches every quarter so what is the reason for that and which function this hiring has happened?