Stockrabit · Analysts
Questions across 100 calls

Kunal Shah

Citigroup

Kotak Mahindra Bank Limited

Kotak Mahindra Bank Limited CC-Jun25.pdf · 2025-07-26
So, firstly, particularly on the asset quality side , s o you indicated that the incremental slippages and credit costs coming in from MFI , retail CV as well as some seasonal stress in rural, but if you can quantify with respect to MFI given that the portfolio is maybe at least last quarter was closer to Rs. 6,700 crore, would it have meant that almost like, say, 5%, 7% of that would have been the credit cost on that? Because ideally, when you look at it, like last time, Rs. 900 crore of credit cost also had the impact of Rs. 300 crore on increase in the provisioning coverage from 73 to 78. So, ideally, when we look at like-to-like increase seems to be quite high. So, would MFI would be such a high portion?
But if you can quantify the number of slippage, maybe amount of slippage from MFI, that would be really helpful. Maybe you generally do not do that, but given that it is quite high, particularly MFI slippages would be helpful.
Kotak Mahindra Bank Limited CC-Mar25.pdf · 2025-05-03
So firstly, the question on provisioning coverag e, now it is raised to almost 78%-odd and we are clearly seeing the decline in the slippages as well. So firstly, is this PCR largely the catch-up provisioning on the unsecured wherein maybe the 100% is provided with a lag and not maybe within 90 days? So, is that the fair assumption or this is more like a conservative step to get it in line with the industry average and maybe given this PCR and declining slippages, what would be the outlook on the credit cost?
Yeah, so maybe if you can just guide through in terms of like this kind of a run rate in the provisioning, could there be like, I would say like a broad improvement in the credit cost than what we saw in the second half. Given that you indicated most of the areas are now showing improvement in the slippages and the credit cost trend and secured retail plus corporate and all that is not showing any kind of a stress or incremental delinquencies?

Bajaj Finance Limited

Bajaj Finance Limited CC-Jun25.pdf · 2025-07-24
Yes. Thanks for taking the question. Sorry, again, touching upon the leadership transitioning. You indicated that the Board has indicated that over 6 months, you need to give a detailed succession planning, but at the same point in time, you indicated that to avoid any ambiguity, it will be closer to FY'28 wherein the plans will be rebuild? Is that correct? So maybe over like 2.5 years, it will just be again like preparing the transitioning, but last time, maybe 3 years back we made it public in terms of how it is happening. But I think this time, it will be more internal, and it will not be made public. Is that the correct reading?
No changes in terms of the corporate structure which has been planned or maybe which was indicated over the last couple of years.
Bajaj Finance Limited CC-Dec24.pdf · 2025-01-29
Yes. Congratulations for a good set of numbers. So firstly, maybe again in terms of indicating 2% to 2.05% for credit cost for 4Q. But when we look at maybe both in terms of the Stage 2 as well as Stage 3, there seems to be an increase in which way. So you alluded that at least in terms of the incremental trend, it's improving. But otherwise, any other metrics which is giving you that much of a confidence that we would have picked out in terms of the credit cost? Because you indicated that it will keep on trending lower. And any guidance that you would want to give for FY '26?
Okay. Sure. And secondly...

RBL Bank Limited

RBL Bank Limited CC-Jun25.pdf · 2025-07-19
Hi, thanks for taking the question. So, sorry, just to again touch upon with respect to margins, so you indicated that maybe there could be a marginal improvement of 5, 7 bps and stabilization in 2Q. And then maybe 3Q onwards, so I would tend to believe at least in terms of reduction in yields, that has broadly been -- that will probably be factored into, say, by 2Q. There will be no further pressures. While maybe the cost of deposits advantage will continue to flow through in Q3 as well as Q4. So, looking at maybe overall this kind of profile of assets, where do we actually see in terms of margin stabilizing given that we have largely done the rate cuts on the deposit side as well? And maybe in terms of the portfolio composition also, there coul d be some flip towards secure, but not a significant one. So, what should be the steady state levels of margin? Or maybe Q4 exit, where do we see it?
Okay, so it should get towards 4.8 by Q4.

HDFC Bank Limited

HDFC Bank Limited CC-Jun25.pdf · 2025-07-19
Yes. Hi. Thanks for taking the question. So in annual report also you have indicated that you have been taking singles in FY '25 and now positioned to go for boundaries. So any particular segments, the priorities which have been set out apart from what you have indicated in general, the strategy which has been there, any key segments which you are looking at? And this quarter when we look at the number of employees, they have gone up by almost 4,000. So is it like we have ramped up employee addition or it is to do with the lower attrition rate in the first quarter? Otherwise, in the last full year we have added hardly like 1,000 odd employees and this quarter itself we have added 4,000. So is it like front-loading, lower attrition, what is leading to that, yes? .
Okay, got it. And lastly, with respect to margins, so maybe what would be the average duration of the deposits, maybe in ALM, maybe because of the CASA classification doesn't make it very clear, but if we look at maybe the average duration of deposits, the way wholesale deposits proportion is also inching up now, it's closer to almost 18%-odd. When do we see NIMS, of say, Q4 level getting reached? Would it be by end of this fiscal or would it take time after the repricing is over and we see the benefit on d eposits also flowing through, plus maybe the borrowings also getting repaid over a period?
HDFC Bank Limited CC-Dec24.pdf · 2025-01-22
Yes. So, the first question, again, in terms of the overall provisioning coverage, specific provisioning coverage. No doubt you indicated in terms of on agri, it's been flat on a quarter-on- quarter basis. But otherwise, the trajectory has been downward. So maybe, have we reached the optimal level? Or should we see further, maybe, at least, managing the provisioning coverage slightly lower considering the behaviour of the portfolio that we have? So how should we look at that entire trend because last 5 quarters, it's been coming off?
Okay. Got it. So maybe if we assume that maybe the stress level remains, we are able to manage it well, then should it be managed at the current level? Or we will see the further decline out there because of this movement, which happened in the NPL?

AU Small Finance Bank Limited

AU Small Finance Bank Limited CC-Jul25.pdf · 2025-07-19
Yeah, thanks for taking the question. So, firstly, maybe what changed post maybe the commentary in the last earnings call? Maybe wasn't it very visible with respect to the stress in MFI? Or were there any incremental stress pockets which came in after the last earnings call? And even this entire stress on the Southern book, okay, maybe how big was that element in the overall slippage and the credit cost? And what actually led to that? Maybe because generally like mortgages tend to behave quite well. So, you indicated a bit, but maybe is it maybe what happened between maybe the earnings call of last quarter and maybe the results for this period?
Okay.
AU Small Finance Bank Limited CC-Mar25.pdf · 2025-04-22
Thanks for taking the question. Firstly, sorry, again, on credit cost front, so when we look at the accelerated provisioning that seems to have been done largely towards the GNPAs and making 100% provisioning on the unsecured. But when we look at it overall in terms of the SMA pool as well as when you indicated that MFIN2.0 guardrail is also getting implemented, and there is a proportion of book which is linked to it. So would that mean that credit cost over the next couple of quarters will still continue to be elevated? I think you made that comment in Q4 post the Q3 earnings on that credit costs will be elevated in MFI for almost like 3-odd quarters. So any change in that guidance post this accelerated provisioning?
Yes. Got it. So when we look at it for full year, maybe the MFI credit cost was almost 7.75% and credit card was almost 11%, and now we know that SMA pool is 3.7%, maybe almost like, say, 70 basis points improvement compared to that of Q3, but this SMA pool will still flow through. And if we look at maybe the collection efficiency from the SMA bucket, what is the kind of slippage and if we have to particularly touch upon these two particular segments, not the overall credit cost, then how would it pan out maybe compared to 7.75% and 11%?

Bandhan Bank Limited

Bandhan Bank Limited CC-Jul25.pdf · 2025-07-18
Yes. So firstly, with respect to disbursements, maybe of almost like INR10,000-odd crores, which is down. If you can highlight in terms of how much is on account of implementation of Guardrail 2.0 and how the rejection rates have moved? And any particular geographical trends, if you can just indicate that? And how much was because of maybe the conservative approach towards growing the EEB portfolio? So that's the first question. And second question, when we look at it in terms of the vintage analysis, which you provide on the disbursements, which is on Slide 21. So when we look at it, like even say, disbursements of Q1FY25 and Q2FY25, that's rising compared to what we have disclos ed maybe over a period that's now crossing almost like 4-odd percent. So in fact, it seems like after maybe 12 months kind of a vintage, we still see 4% slipping into NPA across the pools, okay, right, from 3Q to maybe almost like Q1 of 3QFY24 to Q1 FY25. So is that like this is like the general nature wherein we will keep seeing like 4%, 5% of NPAs even from the recently written pools or maybe there was anything specific to read into this year?
Sorry, just on this part -- sorry, on just this part, if you can highlight rejection rate trends as well that would really help.

Axis Bank Limited

Axis Bank Limited CC-Jun25.pdf · 2025-07-17
Hi. Thanks for taking the questions. Firstly, if you can explain slightly in detail in terms of what has happened with the policies and what actually led to this change. Is it more of a prudent measure? Was it identified during any kind of regulatory insp ections or audit and we had to do this? Maybe within that in terms of the slippages, I didn't get if you clarified in the opening remarks, but were there a few accounts wherein the borrower-wise classification would have led to higher slippages just because something getting classified due to this change in the upgrade policy? So that's the first question?
Sorry, if you can just give one example as to what has happened. Maybe one couple of examples would really help to clarify in terms of what is leading to almost INR2,900 crores of addition.

LIC Housing Finance Limited

LIC Housing Finance Limited CC-Mar25.pdf · 2025-05-16
So firstly, if you can highlight out of 32% bank loans, how much is repo linked and out of 55% NCD, how much would be coming up for maturity or refinancing this year? Just to gauge how much of a benefit we can see in the funding cost over the next 12 months?
I was saying out of -- sorry, the first question itself is out of 32% bank borrowing, how much is repo linked? And out of NCDs, how much would be coming up for refinancing or maturity in this year?

Muthoot Finance Limited

Muthoot Finance Limited CC-Mar25.pdf · 2025-05-14
Yes, hi. So g etting on to the draft regulations , based on your assessment, if you have to look at it here maybe on the LTV side, have you done any analysis in terms of where actually we would have been breaching this norms of interest accrual plus the principal at 75 %-odd given th e draft guidelines, are there, no doubt it is still draft, but any internal assessment being done ? And given your experience, is it like customers take a particular value of money whatever they need, and they would be more willing to come and pledge the gold further rather than lowering the quantum of money required, would that be the case based on your experience over so many years? And the second question again is on the operationa l part of it, maybe in terms of the customer assessment, which I do not think we have done till date, maybe in terms of analyzing the repayment capability of the customers and even the documents with respect to the end use of the gold loans . So operationally, how would these things pan out -- would it be more like mere documentation and the self-declaration that would be required or we would have a separate procedure to assess the customers as well?
That is not the question was . Maybe average is 62 %, but if we look at it maybe any particular proportion of customers who would be -?

Punjab National Bank

Punjab National Bank CC-Mar25.pdf · 2025-05-07
Hi. Sorry. So again to clarify on this SRs, this 182 which is the profit on revaluation of investments, that is the net amount which is getting reflected after 30 crores of credit coming from the government guaranteed SRs. So there would have been some knockoff Rs. 1,100 odd crores which would have been taken , Rs. 1,150 odd crores on MTM on other SRs. So that ’s right?
Okay, perfect. Got it. And secondly, coming on to this deposit question again, so you mentioned like this were largely the special deposit schemes which have now been withdrawn. But what was the tenure of these deposits? And I think maybe just prior to the rat e cut, have contracted them at a very high rate. So what is the average tenure of particularly the special deposit rates, which were referred?

The Federal Bank Limited

The Federal Bank Limited CC-Mar25.pdf · 2025-04-30
So questions are f irstly on the ROA levers. W hen you look at it maybe because of EB LR, we will see compression on margins. Opex also you indicated it might not come off, credit cost also to remain broadly in a similar range. So would fee income maybe the only lever in the near term to manage the ROAs. And when we look at it particularly on the credit RWA, in fact, that's going up because of our focus on the mid-yielding segment. So if I -- if we have to look at it in terms of return on risk-weighted assets then that seems to be still lower. So what initiatives are we taking to manage that? And secondly, on your EBLR. So EBLR, we cou ld say one daily set, what is the kind of proportion if you look at because of changes which we are making up maybe based on the T-bills and moving more towards the fixed rate. So should we assume that EBLR on one day, in fact, would be broadly at a similar r ange or it might come up as the proportion of the overall book?
Okay.

IDFC First Bank Limited

IDFC First Bank Limited CC-Mar25.pdf · 2025-04-26
So firstly, I think on the growth side, you said like the overall capital raise would be more towards the growth. So if you can suggest maybe with CD ratio of 94%, LCR at 107% and even like PSL requirements to be met. Now maybe how are we looking at the overall growth? Would we see some lag up on the growth side? Or can it still continue to be in this high teens to 20-odd percent kind of a range?
So not changing much post the capital raise. I think still in terms of the growth, I think earlier also, we have been getting 20-odd percent. We still continue to maintain that trajectory, yes.

Shriram Finance Limited

Shriram Finance Limited CC-Mar25.pdf · 2025-04-25
Yes, a couple of questions. So firstly, on the overall post the write offs, now coverage is almost 43% odd. So how we would like to maintain maybe we would like to maintain it around these levels or would there be any plan to take it any further? How we would look at it on the next stage? And related question is on the tax benefit. Has there been the tax benefit? Has it entirely accrued in this quarter or we will see tax benefit in the coming quarter?
It has already come through in this quarter?

IndusInd Bank Limited

IndusInd Bank Limited CC-Dec24.pdf · 2025-01-31
I just missed out in terms of the utilization of the contingency buffer was that towards the corporate account or it was towards the MFI?
Going forward, as you mentioned, slippages might remain elevated in 4Q as well. There are various cuts which have been given, there are additional disclosures on the MFI front. But looking at it in terms of what could be the overall stress, which we are seeing because on the x bucket, we have already seen 99.5% collection efficiency now. So we would be having the good handle in terms of what is the level of stress. So how much could be the slippage? What could be the provisioning against it? And would there be further utilization of contingency buffer in 4Q?

SBFC Finance Limited

SBFC Finance Limited CC-Dec24.pdf · 2025-01-27
Sir, I joined the call late, so sorry if I am being repetitive. But just one thing in terms of any of the segments wherein you would have made the credit filters slightly stronger, no doubt it's evolving based on the macro and the operating environment, b ut any changes either on the credit side, on the underwriting side, on the collection side that maybe you would have done over past three to six months looking at the environment?
And should that reflect in terms of the overall approval rates what we are disbursing and the files which we are evaluating or logging in, so is it like very well reflective of that? And would it mean that maybe either we need to strive more to get a similar disbursement run rate or maybe we should be satisfied with a slightly lower growth?