The Federal Bank Limited CC-Jun25.pdf · 2025-08-02
Great. Thanks for this. I would also request if it is possible not to do a briefing on Saturday. That would be a huge help.
Coming to the questions. On the mid -yield, what I am trying to understand is where is the risk of higher credit issues coming in with higher yield because it is difficult to see a scenario where credit spreads have gone up, but credit risk has not gone up. So, for example, if I want to understand the nature of collateral, let us say for SME and the business loans, are these still the real estate kind of hard collateral or have you moved to collaterals where probably the loss-given default is higher while they are still secured, but probably the loss-given default may be higher? So, could you explain a bit, what are the potential risks that come with higher credit spread? And I have a follow-up question on that?