On the credit cost side, I know we are slowing down looking at what's happening around, but given the ECL coverage that we are sitting right now, which is closer to 1.6%, do you think it is required that we kind of just inch it up a little bit and build a little bit of a buffer, let's say that something that you would have done during COVID or any of the stress periods?
And are there any covenants with banks on net NPA or any of that?
So, this is on the interest rate of around 50-75 basis points. So, from when are we really affecting it? And I believe this is again only for new loans.
And is there a particular plan or a thought process in place, maybe for next year or something in terms of saying that you would want to sort of take it down every year by a couple of basis points and sort of move up the quality curve?
You know, this is actually on the IFRS part, on the discounting aspect, impact in IFRS, as and when it gets implemented, how do you think the industry takes it? Does it get translated into higher payouts or does it get translated into tariffs or how does it play out?
Because if you are going to price a product, I mean very, very conceptually based on an ROE basis and then probably there is some release that happens. Competitive dynamics will kind of mean that it goes on to either the distributor or the customer.
This is essentially on a little bit understanding of the surplus capital or surplus cash that we have versus the deployment that we are looking at over the next couple of quarters, so if you could just help us sort of understand that. I believe you said somewhere closer to around INR3,500 crores of surplus cash are what we are sitting with, and maybe if you could help in terms of how that is getting deployed in various business?
And very rough ballpark, the investments that we're looking at in health and AMC, I mean, if any number that you could give?
First, I think on the life side, we're trying to sort of translate the margins and looking at a reasonably high increase in unit-linked and Par business, taking away from non-Par. Just curious how the margin stacks up, given the fact that there was a pretty small compression in margins on a year-on-year basis. So, is it something that margins at product levels have changed?
Sir, just a related question. On the agency side, growth this time was around 15%. I guess we have been stepping up a little bit more now. So, is this kind of a mid-teens agency growth that we're looking at?
On the motor insurance business, just trying to understand your view in terms of sustainability of the improvement in claims ratio on the OD side. Obviously, there was a big fall in the fourth quarter. But if I look at the full year basis, there has been a fair amount of improvement. So, do you see this sustaining, especially given the fact that you mentioned that you've seen the transportation activity picking up again?
But fair to say that you have seen competitive intensity being lower because of which I think we are able to achieve?
Hi. Thanks for taking my question. You reported a fairly strong growth in non-par, in fact, much higher than ULIP. It's a little counterintuitive in t he current regime. And I remember you mentioned that you're not going to engage in flash sales towards the end of t he quarter. So , I was just curious what happened? Is there a specific variant or something that was especially pushed in this quarter or is it something that the delay in re -pricing actually helped in selling these products?
Sure. And just again, going ba ck to the sharing burden of surrender penalty guidelines. Somewhere the smaller agents would probably be at some kind of a risk because they may not have cash flows when commissions go down to support their earnings. There is s ome risk of people at a margi n kind of exiting the industry. So, what is it that you are thinking to kind of support the sma ller agents and kind of ensure that the industry continues to grow because there's always this kind of a debate, right ? When you cut down commissions, some of th e weaker agents tend to be weeded out of the market?
How much was the growth from HDFC Bank this year on a year-on-year basis?
And you said that counter share increased to around 65 from 55 on year-on-year basis?
How much was the growth from HDFC Bank this year on a year-on-year basis?
And you said that counter share increased to around 65 from 55 on year-on-year basis?
Hi, Thanks for taking my question. Again, going back to the sam e point on the margin change in the book. So what I understand is that the change that we ca n see on the PAR side was not because of benefit enhancements. So I think in your VNB walk, you've sort of cited two reasons for change in margins. One is impact of product benefits and the other is impact of assumptions. And I think what you seem to be now saying is that the PAR book is affected purely by impact of assumptions, is it?
So because if I look at it, now this year onwards, you have alm ost 10% sort of economic share and shareholders have almost 10% economic share in the par book . And if we had kind of sustained it at 5%, what we had during IPO probably margins wou ld have been around 4%. So does RFR have so much of an impact? I think is what my question is. And kind of coming back to the broader question on margins, I understand that at this stage, it's a little challenging to sort of give an outlook on margins. Obv iously, a product mix shift is definitely helping you. But at the product level for par or non-par, is there a particular threshold margin below which you would probably not want to go and then s ay, or probably on a risk adjusted basis, it doesn't make sense. And you would then say that look, beyond this, all of it is something that we'll pass on to our -- either our customers or distributors. So if you could give us something in your mind saying that we can't go below a parti cular percentage, whether it's a 5% or 7% or whatever and beyond that, we will pass on.
Two questions from my side. First is, if you could give some color on the loan sanctions that have happened this quarter, is the growth rate similar to loan disbursements? Just give us a sense in terms of the way momentum is heading? The second is on competitive intensity that you have seen in the last 3 months in the retail home loan business, whether it has increased or decreased? And sorry, one more question is, how is the incremental cost of funds trending or expected to trend in the next 1 or 2 quarters?
30% is in the individual business or it includes all the businesses?
Thanks for taking my question. Just curious, you started off citing 3 reasons for some sort of weakness in disbursements this quarter. I want to sit in the lower end of your guidance. Just curious, how do we see the next 3 quarters? And more specifically, if you could spell out the contribution of the RTGS rule change, basically, the RTGS disbursements rule. And how much would that have contributed? And let's hypothetically say that if that were not the case this quarter, how much growth could have been?
But ticket sizes moving, does it sort of enrich the yield mix?
Over the last one year, we have seen sort of pressure on yield despite the fact that cost of borrowing has been going up and this is true for all the players in the industry. Now over the next one year, we're probably looking at interest rate sort of that going out or maybe, maybe coming off. What gives us comfort that yields will not come down further or probably yield will not come down faster than the cost of borrowing, leading to further pressure on core spreads and especially in the backdrop of some of the larger players getting into the smaller ticket businesses?
And over the next four quarters, let's say, if I look at your ticket size breakup of book, given the fact that you're going into lower tickets, should it remain similar or would you kind of expect a trend where the larger tickets, Rs. 15 lakhs, Rs. 20 lakhs and Rs. 25 lakhs plus grow at a faster pace in the overall company growth?
Three small questions. One is, where do you account for recovery from written-off loans?
So, this is adjusted with the credit cost?
Just two questions from my side. One was the -- you revisit the ECL and LGD model typically once a year or twice a year, I mean how often do we kind of see these ratios changing? That is one. The second is on the PPOP growth this quarter, which was closer to around 14-odd percent. Given the clear lag between disbursements and loan growth, I think -- and I think based on your guidance of around INR1.2 lakh -- sorry, you have INR120,000 crores kind of loan growth by the end of the day. But it is fair to assume that loan growth comes down. So, what kind of PPOP growth are we really looking at for the year? And second point also, I think a related point over here is that if I look at the margin, your margin actually -- or your yield on loans have declined on a year-on-year basis. I'm looking at total loan income on average business assets. So, I was just curious as to why we -- I think in our ROE walk, we are looking at around 25 basis points sort of an expansion in yields at least in the first quarter, we seem to have almost like a 20- basis points kind of a decline. So how do we really expect to catch up over year? And considering a, weakness in margins and b, sort of growth coming down, how do we really look at PPOP growth for the year?
Because your growth itself could be somewhere closer to 20s or thereabouts, given the lead lag in disbursement growth...
If I you look at Slide 10, you know, which is essentially the channel wise breakup, partnership distribution is around 11.5% and in the call you mentioned that partnership as in multi- insurance partnership is around 23%. So, that effectively means that the balance sits in bancassurance.
Which is essentially other than ICICI Bank and to some extent Stan C Bank.
Can you share the auction number for the quarter?
Got it. Got it. And just on -- again, sorry, going back to the margins question. Do you see that with kind of competition reducing a bit. There is slightly more pricing power for you.
In terms of more medium term spreads, now if I look at FY '21 to '24, your spreads have gone up by almost 120 basis points from 5 to 6.2. So for this business, 75-25 kind of a business mix of mortgages and non -mortgages, what kind of a spread guidance would you want to give or what kind of a spread you would want to maintain? And the rate hike that we have done now, is it in anticipation of further increase in cost of borrowings?
What is the incremental cost of borrowing versus the weighted average cost of 7.7? 8.36?
I have two questions. One was on the group protect side; will you slow down consciously this quarter?
The overall group protection this particularly.
You have added around 100-odd employees in the last one year in the collections field. So, I was wondering whether we should read anything in this front?
Just one final data keeping question. If you could share the yield on loans across segments for home loan, LAP, business loans, if you can.