HDB Financial Services Limited CC-Jan26.pdf · 2026-01-14
I'll try and address them, Abhijit. So first one being weakness in CV and CE. So this was something that Ramesh mentioned at the beginning. That is something we called out in Q1 and Q2. And we had mentioned that we expect it to stabilize in the current quarter, which is Q3 and we have actually seen t hat. So it's a part of two stages, kind of two stories. One is on the 90 +, where we have seen it stabilize. There is some more work to be done, where we bring that down further. And that's one of the reasons why you see the Gross Stage 3 at 2.8%. What has been very positive in the current quarter is that we have managed to pull back from the delinquent book into Stage 1 , and our 0 DPDs across all products actually inching up in a good way. So that's been the positive side for us. With the unsecured SME pain that was there for the last five to six quarters, if I can put it that way, that has clearly started easing off. The book, as you would have seen in the investor deck, has actually reduced slightly by almost 1%. But there, the health of the book has actually improved. So we're seeing it very positively. We need to start pushing hard into that space and growing from here on. It will take some time as we've taken five – six quarters to really make sure a lot of things fall in place. In a couple of quart ers, we should see growth come back on that. In terms of vehicle financing value vs average ticket size, as you put it, there has been a slight reduction in the ticket size of approximately 5%, if I can put it that way. And the balance has really been growth on the business front. And October especially, if I could call out in specific as the festive season, really covered up for a lot of September gaps and then it has been positive since. So we expect that to range in the positive territory and grow from here on.
So on the disbursement to book, the way I would look at it, Viral, is that look at it in the context of how we've grown, right? So we've actually grown 15% Q-o-Q on disbursements, and that's the most positive thing. On the book, the way it ranges is as you've seen, we've held on to our yields. And as we've held on to our yields in certain businesses, prepayments also happen. Plus, the whole pullback that we've done in terms of recoveries, which has been very positive on the stage 2 book, right, or the stage 1+ book, that has also gone into this calculation. So the way I look at it is we're fairly confident in terms of how we'd grow from here on. In terms of 18% to 20%, the way we've always looked at it, Viral, is the nominal GDP plus 6 to 7. And overall, the thought process does not change. We believe growth will start kicking in from here on, and it should be in more positive range from where we stand today. Second one…