Questions across 12 calls

Renish Bhuva

ICICI Securities

Aavas Financiers Limited

Aavas Financiers Limited CC-May26.pdf · 2026-05-05

Congrats on a good set of numbers. Sir, just two questions. One on the medium-term strategy. I do understand you might have spent only 10 -15 days , b ut if you can just broadly guide us, how do you think about the sector's medium -term growth and where does Aavas stand in terms of growth the outlook? And maybe what is your aspirational growth target for FY27 and FY28? That's my first question, sir.

Got it. Now, just a follow -up on that . So where do you see ROE settling? I mean, execution obviously is also linked to yields, opex optimization, etc. From an exit 15% ROE, where do you see ROE also moving ahead?

Aavas Financiers Limited CC-Mar25.pdf · 2025-04-24

Hi, Sir. Congrats on a good set of numbers. Sir, I have 2 questions from my side. One on the asset yields. When we look at the asset yields, it has been static around very narrow range between 13.1% to 13.15% for last 10 quarters despite we've been increasing PLR rates, etc. And now since we are entering easing rate cycle and having a 70% floating rate book, how do you see asset yields settling in near term? And also, as you have been highlighting since past many quarters about change in sourcing strategy with more focus on small ticket loan moving to risk -based pricing, etc. When do you see this sort of reflecting in yields and ultimately, we reaching 5% spread?

Okay. So, I mean this is also important from a spread perspective because the 70% floating rate book will continue to impact our yields going ahead. So, strategically, how will you address that?

Aavas Financiers Limited CC-Dec24.pdf · 2025-01-30

Hi, Sir. Congratulations on the good set of numbers. Sir, I have 2 questions. One on the asset quality, though 1+DPD have fallen but at the same time and there is a marginal increase, in the GS3. So just, wanted to understand , this basically implies there is higher default flows in the delinquent buckets. So how is the underlying health of the portfolio looking like and does this pose a risk to our near -term asset quality and credit cost guidance because of higher default flows in this quarter from the delinquent pool?

So, the sequential increase in GS3 is pure seasonal and it will come back in Q4?

Aavas Financiers Limited CC-Sep24.pdf · 2024-11-07

Hi, Sir. Congrats on a good set of numbers. So just two things from my side, one on the spreads. This is the first time spreads fell below 5% and it is due to the combination wherein asset yield continues to moderate and cost of fund continue to rise. And this is despite our range bound disbursement of around Rs. 1,200 crores to Rs.1,300 crores from the past, 4 - 5 quarter except Q4. Sir what is happening on the asset yield side? On cost of borrowing, we all can understand you know the systemic rates are still elevated and banks are looking to pass on. But we just need to understand what is happening on their side, specifically because disbursement is also range bound.

Okay, so 4.8% to 5%, let's say it would be FY'25 or near term?

SBFC Finance Limited

SBFC Finance Limited CC-Mar25.pdf · 2025-04-28

On 2 things. So one, on this 1+ DPD trend, right? So we have been witnessing a steady increase in 1+, but at the same time, of course, we've been also able to contain 90 +. I mean that's what our gross NPA suggest. So just wanted to get a sense, which geography or pocket is sort of driving this higher flows into early buckets. And do you see any risk to the pace of outflows from 1+ to 90+ in coming quarters maybe because of this change or any other macro events that can play?

Okay. Got it. So incremental flows to early buckets is mainly because of Karnataka issue.

SBFC Finance Limited CC-Dec24.pdf · 2025-01-27

Sir my question is on like the current scenario in the small ticket LAP segment. So, of course you were the first one to highlight that there are some sort of stress building up or maybe customers are going through some sort of seasonal cash flow mismatch. So, sir, where do we stand in terms of that cycle? Do you feel that things have started improving? Or it's too early to call that we are at, let's say, peak of the cycle?

So, nothing alarming as of now, at least in terms of cycle?

SBFC Finance Limited CC-Jun24.pdf · 2024-07-29

Sir, just 2 -3 questions from my side. One on this ticket size. So, when we look at the disbursement ticket size, it is falling consistently from the last 3 -4 quarters and now s itting at about 9.2 lakhs. So, what is happening there? I mean, essentially with inflation, this ideally should go up. I'm just wondering, are we changing customer segment or what is happening there?

So, sir, I mean, if we go by what you've just said that the ticket size will remain between 9 -11 lakhs. We are already at 9.2. So, going ahead, do you feel this ticket size will remain where it is currently? Or it should further go down?

SBFC Finance Limited CC-Mar24.pdf · 2024-04-29

Sir, just two questions from my side. One on the asset quality, so when we look at the gross NPA ratio, of course, it is range bound, but on sequential basis it went up by 4 -5 basis point, despite the high denominator wherein we saw the AUM growth growing by 9 %, so which essentially reflects that the forward flows are still high. So, could you please throw some light on what is happening at the underlying ground situation?

And secondly, on the secured MSME disburse ment side, so when we look at the ticket si ze, it went up pretty sharply on sequential basis and similarly the volume sort of has moderated plus when we look at, let us say the AUM vintage wise on the branch between 12 months to 36 months, again, there is a sharp fall from 43 to 31, so I mean what is happening at those branches? I mean ideally the branches with more than 12 months of vintage , AUM should keep on increasing, why there is a sharp fall on sequential basis?

SBFC Finance Limited CC-Dec23.pdf · 2024-01-29

Congratulations on a good set of numbers. Just two qu estions from my side. One on the asset yield expansion which stood at almost more than 30 basis points on sequential basis so can you please throw some light what is happening on the asset yield side Sir?

But Sir I mean see that will be only on incremental basis but when we look at the book yield it is sharp 30 basis points so?

CREDITACCESS GRAMEEN LIMITED

CREDITACCESS GRAMEEN LIMITED CC-Dec24.pdf · 2025-01-24

Sir, just two questions from my side, one on this PAR team plus accretion, so when we look at the state wise numbers, of course there is an improvement across states except Tamil Nadu. And when we look at the Karnataka specifically, though there is an improvement in January, but there are lot of news flows which sort of keeps on coming over last month or so wherein some district, some pockets, some external events are happening. So, how confident we are that the kind of improvement we have seen in Karnataka maybe over the last 2 months, from a peak of 1%, we are now down to 60 basis points that will sustain?

At this point in time, is it fair to assume that you don't foresee any risk to the sort of improvement what we are expecting in Karnataka?

Five-Star Business Finance Limited

Five-Star Business Finance Limited CC-Jun24.pdf · 2024-08-01

Sir, just two things. One on the disbursement growth run rate side, which has been falling since Q2, which has been now accelerated to 16% Y -o-Y. I can understand that it is a seasonally but still we are looking at the Y-o-Y growth and not the sequential growth. And also, when I look at the disbursement per branch on a two quarters like this, just to eliminate the impact of new branch opening, the run rate is now fallen to 2.7 crore in Q1 FY '25 from the peak of 3 crore in FY '24. So, how one should read this data, I mean, a fall in disbursement per branch also, this is decrease in the disbursement growth run rate.

My question is on the disbursement growth side. It has been running at some 40 %-50% Y-o-Y growth. Then it fell to 33% in Q3. Then it fell to 20% in Q4 and now it is at 16%. So, I can totally understand the branch metrics, which you just highlighted. But then the deceleration in disbursement growth rate, what it explains that?

Home First Finance Company India Limited

Home First Finance Company India Limited CC-Sep23.pdf · 2023-10-27

Circling back to BT out rate. Despite the higher BT out rate, our growth has been quite steady at around 8% sequentially. Once we restrict the BT out as you highlighted that we have initiated in several steps. What kind of AUM growth we target in near term?

Got it. Again, just to understand a bit more on the BT out. Most of this BT out is due to the rate, there is no other thing which can sort of restrict or result in a higher BT. So, when you say that we have taken an initiative, could you highlight what kind of initiatives we have taken to restrict BT outs? I mean, apart from rates, and if we sort of get into the rate would you assume any margin compression going ahead?