Questions across 54 calls

Nischint Chawathe

Kotak Institutional Equities

Aavas Financiers Limited

Aavas Financiers Limited CC-Mar24.pdf · 2024-04-25

Thanks for taking my questions, just two. One is, I ’ve been going back to the point of spreads. This year we have clearly seen some compression in spreads and your NII growth is clearly lower than the loan growth that you ’ve reported. Next year do we really see some kind of a reversion and NII growth being higher than loan growth? Or is it equal to loan growth? Or would you kind of say that maybe there is some more pressure to go? And are you seeing any incremental pressure of higher BT-outs, because you’d probably be the only player who would have raised the benchmark rates in the last quarter?

And just one last one in terms of expense growth, do we see the improvement to kind of 3% sort of playing out in this year, or two years out, what is the plan for that?

Aavas Financiers Limited CC-Dec23.pdf · 2024-02-02

Just two questions. One is on the spread side if I look at your spreads closer to around 5% now and what is the broad thought process where can you go up to and what is the range that you would want to maintain through the years?

Sure. It is a little strange you said that your incremental cost of borrowing was 8% this quarter and 8.3 % in the previous quarter incremental cost is going up for all the other players so how come it is coming down for you?

Aavas Financiers Limited CC-Sep23.pdf · 2023-10-27

Just one on the liability side. What would be your book cost of funding as on September 30th ?

Okay. And so incrementally, you're borrowing at 8.2%. So should we sort of assume tha t your cost of funding kind of inches up by maybe another 35 basis points from here?

Life Insurance Corporation Of India

Life Insurance Corporation Of India CC-Dec23.pdf · 2024-02-09

I'm looking at your VNB Walk, and this is slide 18. And what it suggests is that the impact of product benefits over a 9-month period, and I know it's not directly comparable, but it's actually down minus 3.6%. And I know we've seen margin expansion, but it's kind of -- I'm just trying to understand as to why it is negative at this current time?

Particularly in product mix, yes.

Life Insurance Corporation Of India CC-Sep23.pdf · 2023-11-10

Hi, thanks for taking my question. You know, the first one is really on the embedded value. We have seen a significant increase in the first six months. Would you kind of say that the large part of it is because of, capital market movement?

The next question is on your APE disclosure, and thanks for this. At the time of IPO, we said that the focus will be to kind of increase non-par savings and that kind of improves margins over time. But I think almost like a year down the line, we are still at just -- I mean, barely not even INR400 crores of non-par business. So I was curious whether there is any marketing or any active marketing of these products done at all? And even on the protection side, I know you have changed your pricing, but all that we are doing is something like just around INR80 crores of protection. So I mean, are these products actively marketed by the marketing team? Such a large army but the numbers are one year down -- or in fact, more than one year down the IPO and the numbers are still negligible.

Five-Star Business Finance Limited

Five-Star Business Finance Limited CC-Dec23.pdf · 2024-02-02

I just wanted to get a sense if you would want to guide anything on normalized Stage 2 levels in terms of where do you think is a more optimum level that you are comfortable with? I know there has been a steady improvement over time, but what do you think is a more normal as well for you?

Sure. And on ECL coverage on balance sheet, do you think that -- I mean, I know you kind of run down some of the excess coverage that you have. But just as a mark of maybe caution or prudence you've given the fact that we're doing very well on the operational side, do you think that you would want to kind of create a little bit of buffer at this point of time.

Muthoot Finance Limited

Muthoot Finance Limited CC-Sep23.pdf · 2023-11-09

Just serious on the ARC sale, how much would you have sold? And what would be the financial implication of this?

This, I think, helps actually to understand why you did it. But just a very simple point, I think I'm asking is what is the financial implication, is it kind of leading to some x crores of interest reversal because you mentioned that somewhere you got was subdued. Out of the INR700 crores, how much capacity do you have? Are they included in the loans under management? I think just basic accounting, which sort of helps us understand the financial implication of the transaction.

Max Financial Services Limited

Max Financial Services Limited CC-Sep23.pdf · 2023-11-01

Going back to the growth argument, looking at your performance for the last 2 quarters, doesn't it look like your guidance for sort of 10% APE growth for the year is a little conservative? I mean your ask rate for second half is not very high, even if I sort of exclude the one-offs that you did in the month of March.

Sure. And on the Banca side, what would be your growth in Axis Bank on a year - on-year basis?

Star Health and Allied Insurance Company Limited

Star Health and Allied Insurance Company Limited CC-Sep23.pdf · 2023-10-31

Just a small one, how far do you think we are from another tariff hike, I believe if your claims ratio remains like this. And you are guiding that, this year could be a little tough year. Are we sort of looking at another hike in the later part of the year?

So, that’s what my question is that would you want to wait for the entire impact or given the fact that probably it l ooks like that things are a little tough to kind of go ahead and do a hike sooner than that?

SBI Life Insurance Company Limited

SBI Life Insurance Company Limited CC-Sep23.pdf · 2023-10-27

My question actually pertains to channel-wise business. We have seen that agency has grown quite impressively this quarter. And there is a fair bit of increase or almost doubling of business of ULIP business from the agency channel. Now when you speak to some of your peers, their argument typically is that the persistency of agency may be somewhat lower than the bancassurance channel and which is the reason they would and ULIP being a product which is extremely sensitive to persistency, they would probably resist or pushing ULIPs through the agency channel. And I think you've grown ULIPs pretty aggressively through agency. So I was just trying to understand how are your persistency ratios in ULIPs versus banca? And how comfortable are you with this kind of growth of ULIPs through agency?

The 13-month persistency on agency versus banca?

IIFL Finance Limited

IIFL Finance Limited CC-Sep23.pdf · 2023-10-19

See first question is on the operating expenses line, if I really look at your loan growth you have been growing fastest in microfinance and probably followed by gold loans. Now both these businesses have lower tickets and, in that sense, tend to be sort of slightly more OPEX intensive and probably home loans and the wholesale business have lowest OPEX, but I think despite that your OPEX growth is lower than the loan growth. So, you seem to be kind of getting some benefit somewhere, so just trying to understand what's happening here?

But microfinance, I mean, practically, I guess the geographies would be different so you can't share branches gold loan again sort of?

Can Fin Homes Limited

Can Fin Homes Limited CC-Sep23.pdf · 2023-10-18

Just one or two clarifications. You will still have around INR280-odd crores of loans which come out of restructuring or which have probably come out of restructuring, but we don't know if they are standard or NPAs. And I think against that, what you mentioned is that you have around INR34.28 crores of overlay and around INR68 crores of provisions on restructured loans.

My reading is also -- all this around INR100-odd crores is available for this INR300-odd crores of loans, which we'll have to see whether -- how much of it can turn back.

HDFC Life Insurance Company Limited

HDFC Life Insurance Company Limited CC-Sep23.pdf · 2023-10-13

Thanks for taking my question. The growth in bancassurance seems to be coming up nicely with around 20% and it looks like this is slightly ULIP heavy. But in other channels, probably ULIP is not picking up as much. So , when we are looking at higher growth in other channels in H2, do we envisage ULIP to pick up? Or will it still be non-par heavy? In that sense, how do you see the product mix for the year evolving?

ICICI Lombard General Insurance Company Limited

ICICI Lombard General Insurance Company Limited CC-Sep23.pdf · 2023-09-30

Just a small one. When I look at the monthly figures for Motor TP business, did you do any transaction in the last month just as something that you had done probably in Feb or March last year?