So, what is the yield on book for home loans, LAP and MSME? And what are the onboarding yields for these products?
So, what is the home loan yield?
Questions across 8 calls
Shubranshu Mishra
Phillip Capital
Aavas Financiers Limited
Good morning Sir. Thank you for the opportunity. My first one is on the LOS and LMS, so are we running it on an opex model or a capex model, is it cash based, how are we running LOS and LMS and any specific reason that we did not opt for Nucleus lead software because that has pretty much been used by rest of the industry so we have gone to some other vend or so just want to understand the reason for that and when we speak about 25% provision cover on th e stage 3 this is larg ely to do with the LAP or HL what is causing this 25% stage 3 provision and the third question is we are speaking about a growth rate of almost 23 % to 24% because we are speaking of doubling of the loan book in three years so how do we decompose this 24%, what would be driven by ticket size increase, what would be driven by productivity increase and if there is something else you can add on to the growth decomposition?
Understood Sir and if I could just squeeze in one odd question more Sir what is our premium that the banks charges above the EBLR and MCLR?
Can Fin Homes Limited
Two questions. The first one is on our sourcing. If I do a reverse calculation of our expected disbursements, which is roughly around INR2,500 crores in second quarter and with the average ticket size, we're doing close to 10,000 loan account disbursements in a quarter, of which roughly around 80% or 8,000 is from the active DSA. So again, when I do it on a per month basis, one DSA is doing close to two loans per month. And as per our discussions, I think there is one marketing guy in almost every plant. So ballpark each guy, each internal employee loan close to three loans per month. So this boils down to maybe 0.5 or maybe 1 loan per week, also is that supposed to increase this productivity to maybe 2 loans per week, which should itself give us a big runway for growth? That's the first question for both DSAs as well as our own employees. The second is on CLSS. Of course, we ha ve discussed quite a bit on the CLSS, but like you rightly pointed out this, a problem will be supply itself because CLSS got knocked off some time back. And the supply itself would take some time to fructify it before we actually see the disbursements taking off because the developers themselves will have to align to the new CLSS scheme or whatever it is called. And then the supply will come in and then we'll see the fructification in terms of disbursements. Is that a fair assessment on both?
Just one follow-up question on th e construction part. So given the fact that you agree that the construction will take some bit of time for the alignment of the developers. In that case, the fructification of disbursement for this new affordable housing fund would be really marginal to this disbursement that we are really calling out, which is INR10,500 crores. It would be really marginal if we are only going to rely on the self-construction part of CLSS because we don't get a huge numbers in that case.
So I think we've answered this question a bit before. So I just want to check, the average 55% increased roughly around 10% when we decompose the disbursement of which license is almost 57% would be a natural inflation which happens annually. And when we look at the number of loans, how many number of loans do we do on a quarterly basis now? And what are we thinking of doing on a quarterly run rate in '25 and '26 as well if you can spell that out? That's on the disbursement. Second is, what are the reasons that we are facing in terms of reducing our DSA sourcing versus own sourcing? Third is, is there a board approved set parameter that we can't do much of construction finance? Is that an impediment to have more builder tie -ups? Because my sense is that the builders would really like construction finance, which later on gets knocked off with the home loan, making camping homes a preferential lender in that particular project. So these are my three questions.
SBFC Finance Limited
Two or three questions, the first one is on the co-origination, what is the unit economics here in terms of cost of funds sharing, OPEX sharing and credit cost sharing and where do we think we will end up in terms of percentage of AUM in the next 2-3 years? Second is on the ALM, given the fact that we lend long, would we want to match the ALM and borrow long, which will have a detrimental impact on our spreads as and how we borrow long, so that is the second? Third is on the PCR at Stage-3, so in India the PCR or Stage-3 is closer to the LGD given the fact that we have largely secured assets, this seems a high LGD if my interpretation is correct? These are my three questions?
Just to slip in one last question, this increased PCR, is it a posturing for the credit rating agencies for a better rating?
LIC Housing Finance Limited
Only two questions. The first one is on the Stage 3 PCR. We've been running an upwards of...Sir, the first one is on PCR. So we have Stage 3 PCR upwards of 45%, 46% for quite some time and we are running a secured book. So 45%, 46% or even 50% PCR guidance gene rally tends to indicate that it's -- we are either running an unsecured book or that is the kind of LGD we're expecting on our loans. So if you can clari fy on that. Second is that almost 99% of our assets are floating rate and 52% of the borrowings as NCD. So as in how the rates come off in the near to medium term, would we see our NIMs compressed?
Sure, sir. And if I can just squeeze in one last question. Sir, how many builder loans are there in this Stage 3 numbers, sir? What's the value? And how many?
Aptus Value Housing Finance India Limited
I have two questions actually. So, the first one is about the insurance loans, which is around 2% of the AUM, just wanted to understand what these insurance loans are? Second is, what is zero- plus, this quarter and maybe a year back? P. Balaji First, let me answer on the insurance loan. These are the loans which are given to our customers for getting their lives covered under the credit shield insurance arrangement with an insurance company. The premium for this is paid by the customer one time at the time of disbu rsement and the premium paid is for the entire tenor of the loan. This premium works out to 2% to 3% of the sanction amount which is getting funded by us to our customers.
What is the zero-plus on this quarter and a year ago, sir? P. Balaji If you look at the last quarter, one-plus was 8.5%. Now it is reduced to 8%. And it was almost 10% last year at the same time.
Home First Finance Company India Limited
First one is on the regulations and the collateral and the documents that need to be given back to the customer in a time that's been stipulated. How does that change our opex? Second is why are we not looking at or why are we not making any kind of representations to the rating agencies for a rating upgrade despite having a strong asset quality number? Third is if we can talk on the cost of acquisition for our home loan customers across markets and the cost connectors?
Sure. And if I can just squeeze in two more questions. The first one is, if you can decompose the 30% growth guidance that you're giving, how much would come from the ticket size increase, how much would come from productivity increase and how much would come from volume increase? That is first. Second is, you're talking about BT out, however, given the ticket sizes that we deal with and across lenders, the affordable housing comes at a higher yield. And the fee is barely anything in it f or someone to really churn a customer -- for a connector to churn the customer. So why should we have BT out in the first place?