IIFL Finance Limited analyst Q&A

Thank you. Ladies and gentlemen, we will now begin the question -and-answer session. We'll take our first question from the line of Sukriti Jiwarajka from Laburnum Capital.

My question is on this MSME unsecured book that you're doing in the standalone entity. Now, I'm sorry if you've covered this before in previous con-calls, and I'm seeing the book has grown at 3x over the last two years, 21% yield, 8 lakh ticket size. I'm just not able to understand this category of loans. These are MFI yields almost. What sort of MSM E is taking these loans and why?

Yes, so these are the MUDRA loan for which government is also pushing banks to meet their target. And then there is insurance coverage on these kind of loans also. And our insurance coverage is effective from last quarter. Now, coming back, I mean, maybe coming sharply to your question, which is that what is the profile of these customers? So these are typically small shopkeepers, ancillary units, you know, who borrow at these levels. So normally the higher working capital banks will be willing to consider application, but normally these small customers get ignored. So they are typically sho pkeepers, traders, freight operators, small service providers, like professionals also. So these are the kind of customers.

Are these working capital loans? What is the tenure?

Okay. And a couple of follow -ups on this, right? Are you doing this from your own balance sheet or because you said banks have a requirement, is this a sell-down for PSL?

So we have been -- so as you rightly said, this is a relatively new portfolio and has accelerated in the last couple of years a lot. So banks have a good appetite for this. And we've been talking to various banks. They've been, you know, integrating our fl ow as well as basically we are negotiating with several banks. So maybe this year probably we'll see that there's a significant co-lending and DA in the year.

Today that INR4,500 crores is on your balance sheet.

Sorry, what did you say?

Today this MSME unsecured is on your balance sheet, right?

MSME unsecured is largely on our balance sheet.

Got it. And how big, like you're saying you want to grow overall MSME at 25%, 30%. Honestly, this book is looking very risky to me. I just want to know if I'm not understanding this properly, because it's a little long for working capital, the tenure. And is this something that you want to grow at 30% as part of your MSME? How big can you take this?

Our growth will be in the secured part of portfolio, which we had guided last year also, so our secured portfolio has been much smaller. And that is where we intend to grow faster. And so the unsecured growth will be primarily more driven by bank partnership. And if you really see, then in terms of target, we'll probably bring down our unsecured portfolio and focus more on secured.

Any early warning signals in this portfolio? Because I think you've slightly reduced growth in the last two quarters.

Can you please repeat?

Sorry, any early warning signals in this portfolio that you're seeing, because I've seen that you've sort of flattened growth in this book in the last two quarters? So any early signs, early warning signals that you're seeing?

So what has happened is, as I said, that unsecured is what we are slowing down. So if you would have seen that our unsecured portfolio is basically going down or not growing, or maybe will grow at a slower pace. Secured infrastructure, the team that we are putting in place for the last few months. So for secured portfolio, typically it's a LAP product for which you have a different set of people. Then you build your network for title verification, technical, as well as sort of valuations, all those things. We were also doing -- some of these were also sourced by the microfinance company that also has slowed down in last year significantly. So we'l l see a big, or maybe a significant ramp up in the secured portfolio in the next few quarters.

Primarily MSME is more of a LAP or loan against property product. Average ticket size will go up over the next year, yes.

Got it. And the insurance coverage, is it similar to how that CGFMU coverage works for MFI? For this?

Yes. So there are two schemes which government has, but broadly similar. So in one scheme…

So you get it after two years.

Hello, sorry -- about 3%. So basically, but at least a significant coverage which government now provides for MSME.

We'll take our next question from the line of Niharika Karnani from Capgrow Capital.

My question is also on the MSME sector . So we have highlighted that we'll be growing our MSMEs by 25% to 30% and ROE from the current overall 3.4% to 16%. So just wanted to have an idea as to focus would be around what parameter? Would it be on growth or credit quality? What would be your focus?

Credit quality is the focus , but also the gold loan growth, because we are getting our lost business. So last quarter, technically, we have grown by 40 % quarter-over-quarter, but it's mostly we are trying to recoup and regain the lost customers. So gold loan will be a significant contributor to our profitability as well as growth, where we expect, you know, that we'll probably get back our earlier level and also exceed that and getting back on the trend line growth. MSME is a new segment, for which, again, we will leverage our gold loan branches. We've been working on this segment for quite some time. Our distribution capacity is significantly higher. But last year, because of the gold loan and after that MFI and then certain other things, you know, we had held back. But on the low base, given our distribution capability, so you see the growth appears higher. But it's something which is within our capacity.

And one more question here on the MSME part. What kind of ROEs expected here given will be going this book?

So ROEs, we have given our guidance on an overall basis. And that also assumes that our co - lending and DA will continue at a level which historically has been there prior to ban and it can accelerate, or decelerate. So that's one. But it's primarily, you know, many of our overheads and costs are also combined. Because we use the same infrastructure, our HO and technology and many other functions are combined. So we're not done the allocation to figure out ROE separately. Also the cost infrastructure is together. So we look at it holistically.

No, first one was - we focus on which part?

Cost. So it's kind of cost versus reach in case of MSME?

No, in case of MSME, we leverage our infrastructure and also the DSA channel for that. But cost we are conscious of. But our advantage is that we already have infrastructure of branches across the country which we can leverage. So we don't have any plans to aggressively increase our cost base at this point in time.

We'll take our next question from the line of Deepak Poddar from Sapphire Capital.

So just wanted to understand, how are we looking at ROA for this year, FY26?

Closer to 3%.

Closer to 3%. And I mean, because you are still guiding for a credit cost of 2.5 to 2.7%, right? Is that right? I mean, so at that level of credit cost, how are we maintaining still ROA of 3%? I mean, what will drive that? Because on your normal level of credit cost, it's little on the higher level?

No. So last year, credit cost was 3.1. Our NIM will also improve because we see that the interest rate cost seems to have peaked down. And maybe, you know, in a liquidity type situation, we've paid higher price. And also, in the mix, when the gold loan is the significant driver, we'll see the NIM improvement. And -- Sorry?

Yes, please continue. Please continue, sir.

Yes. So I think there's a NIM improvement, there's a volume growth, and continued co-lending and partnership with the banks. So these are the three drivers.

Cost to income also improve?

Cost to income. You know, cost to income will also improve with the volume. But okay, we also have plans to make certain aggressive investment in AI and technology benefits of which will accrue over a period of time. But yes, cost to income will improve definitely compared to last year. But if we can bring it to FY24 level, I think that should be a good target.

Thank you. We'll take our next question from the line of Anusha Raheja from Dalal & Broacha.

Yes, congratulations, sir. On a good set of numbers. So yes, I want to understand on the strategy, you know, what will be on the gold loan side. Both, I think you have recouped the previous levels closer on, it used to be 24,000 odd, you are closer to 21,000 odd crore s now. So how do we see the loan book growth over the next two years’ time? Also on the branch expansion side and the changes that you have done at the NBFC levels so that we are complying with the RBI norms, if you can highlight some of the important ones. And also the last quarter you had said that you are being competitive in terms of pricing the gold loans in order to attract the customers. So how is the scenario right now? And at the margin level, how do we see, you know, margin spanning out for the gold loan?

Yes. So gold loan growth will be fairly strong this year as well as next year. But underlying assumption is that the gold prices will remain firm. A significant part of gold loan industry growth is also driven by a significant increase in gold prices, which obviously increases your loanability against the same collateral. That is one. So our margins will be inching up, we'll get back to our normal margins, you know, quarter after quarter this year as well as next year. We are competitive and market is very competitive, there's no questions about it. And you have to really make sure that operationally you are efficient and use technology to save costs to make sure that you make up for the competitive pressure on the margins. So I believe that gold loan this year, next year will do well because for two, three reasons. One is gold prices are firm. Two, unsecured lending has become difficult and more expensive. So many a times if the, you know, gold loan NBFCs are lending at 18%, 19%, 20% and you have very aggressive set of unsecured lenders, sometimes FinTech, sometimes new NBFCs, then customers always get respected. So I think that will also be one of the factors. And third is obviously the economic growth and the credit under penetration. So all these factors drive growth and if the growth is there, the margins are maintained.

Okay. And so in terms of branch expansion?

Branch expansion, see, at this point in time, we want to shut our existing branches and get them to productivity level, which is comparable with the best in class. So that's still some time away. But, you know, branch expansion still requires RBI's approval. And what we probably, you know, that has to be evaluated and how quickly we regain our lost business and start growth path from there. But we are open to branch expansion, if not in the first half, then second half for next year. Maybe it's going to happen in the next six months, but if things go as planned, then we'll start expanding from, say, you know, later part of this financial year or next year.

Okay. And so how much is the LTV now in the gold loans incrementally?

Maximum is 75 and average is 66.

At the origination?

At the origination, it's around 70. Between 70 and 75.

Okay. And on the asset quality side, you said that I just want to understand how the asset quality behavior is panning out across the segment in the MFI, home loans and on the gold loan side as well. And related question is the credit cost estimate is 2.5 to 2.7, right? So previously, it used to be close to around 200 basis points. Is it that you're assuming a pain in MFI to continue in this fiscal, in this entire fiscal? So I just want to understand the broad rationale for a higher credit cost estimate.

Okay. There's some bit of pain in MFI that may linger on and unsecured MSME portfolio also can have, you know, I mean, because the high yielding portfolio, so it can always have slightly higher credit losses also. So these two factors are there primarily f or the estimation of credit losses this year.

And do we expect, normalisation in FY ‘27 on the credit cost side?

Yes.. As our MSME portfolio mix will also change in this year, we'll see that next year probably credit cost will get back to our earlier levels.

Okay. And so lastly, on the off book assets, so we have seen a good growth on the co -lending side. Can you just help us understand, it used to be closer to 40% of the total AUM. So how do we expect the, co -lending and assignments to happen in the FY26 and I think that will definitely have a good impact on the P&L.

So I think we are right now at 30%. Our endeavor will be to go back to 40%.

In FY26, you say?

That's right. So by the end of FY26, I can say.

And within that, the share of co-lending will be higher.

Yes, now RBI has come up with a new draft guidelines for co -lending, for which they invited for comments till, I think, 12th May, which is Monday. So let's see the final set of guidelines and then we'll know how co-lending will evolve.

So model one is, that is not workable as per the new RBI guidelines. So you are on that model, right?

See the -- it's like a little more complicated than that, but the thing is that for gold loans, you know, what happens for home loan mortgages, there's no problem because you have enough time. Gold loans are small loan products which are instant. So I'm sure that al l gold loan companies will have submitted their feedback to RBI and also the industry association. So let's see the final guideline and then we'll figure out what will be the DA versus co-lending target for this year.

Okay, fine. Got it. Thank you.

Thank you. We'll take our next question from the line of Abhijit Tibrewal from Motilal Oswal. Please go ahead.

Yes, good afternoon, sir. Thank you for taking my question. So first thing is, again, on this FY26 guidance that you have put out in the presentation, I just wanted to understand when we are guiding for interest spreads of 6.9% to 7% versus 6.7% in FY25, I mean, what are the underlying drivers for that? Basically, what I'm trying to understand is earlier during the call, we spoke about doing more secured. We have also given a guidance that MFI is not going to grow very highly this year. You've guided for 5% to 10% growth. So is it coming from a change in product mix or is it some benefit of cost of borrowings that you are making in for a higher guidance on interest rates? That's the first question.

That's a good question. So last year, because of gold loan ban, the relative share of gold loan has been significantly lower in the average assets as compared to the year before. We ended at 24%, but if you take the year average, then it was even lower because all the growth has come in last six months. So the first six months of the declining trend and we had come down to almost 10,000, which is about maybe 12%, 14%. So the mix of FY25 is little skewed with much lesser share of gold loan than normal. So if you fix that, then also you see a slight improvement or like reasonable improvement in the margins. That is one. Secondly, also we see that the interest rates have peaked up . In last quarter and after the gold loan ban was lifted, we have paid much higher interest costs because the liquidity requirement was faster as we are recouping our business than what we could really get from our usual traditional sources. Also, till recently, now RBI has improved liquidity in the system very significantly, but still a couple of months back, liquidity was tight, NBFC money, cost of funds had gone up. So these factors played last year. Also, when we did the dollar bond issue, which was a significantly higher cost fully hedged, so if you adjust for that, then you see this improvement.

Okay, sir. Thank you. So the second question that I had was for Manu sir, more particularly on the housing finance business. If you could just share two things. One is, what is the one plus DPD that we are seeing today in the housing business? And so I mean, last year, arguably was a very tight year, particularly for unsecured, but of late, we've been seeing some tightness in collections in the affordable housing side as well. While we do a very wide spectrum of products, in the fourth quarter, we've reported a minor asset quality deterioration, which again, by any width of imagination is not bad. But I mean, what is your view? I mean, are we seeing early signs of some spillover from unsecured into the affordable housing segment now? Or is it just some seasonality, some weakness in government spending, which is leading into lower earnings in the hands of customers? And which is why some tightness in collections that we are seeing today?

Yes, hi. So I'll answer them. So I'll go one by one. Yes, there has been -- unsecured has gone through a cycle of the pain. And we did see that in our secured small ticket loans, the micro lap loan, we did see some spill coming out there. So that's why you see relatively, our growth in the secured MSME has been pretty flattish. So we were cognizant of that. And I think we proactively looked at it to be more watchful of that portfolio is concerned. But I'm sure as things even out, we should start doing that business again, in a slightly different, moderate, slightly increasing the average ticket size, and maybe lead yield expectations to soften. Barring that, as far as the overall asset quality is concerned, I think it's holding on well, except this micro lap segment, which we saw in the home finance business. And if I see this, our performance of our ex the secured micro lap business, actually, o ur asset quality is improved from the previous year as well. So I think the pain is behind us. And now we can expect a pretty consistent growth from here on. And we have become a sizable AUM of nearly 40,000 crores now.

Got it, sir. Thank you for that. The last question, rather two last questions that I had was one, again, for Nirmal sir. Just wanted to understand, I mean, who's heading our gold loan business now? And in gold loans, again, these draft guidelines that came out on gold loans, I just wanted to understand how are we positioned with regards to the LTV, more importantly, the LTV guideline, draft guideline that came out that the 75% LTV has to be maintained throughout the tenure of the loan. So, A, what is our readiness? And if at all there is any impact that you see here. And lastly, for Venkatesh sir, just trying to understand, I mean, last quarter, Q3, we had taken very high credit costs in the microfinance business. This quarter, again, I mean, while the credit costs h ave come down, how should we look at the credit cost trajectory from here on? How are we looking at credit costs for the full year FY26 in the microfinance business? Thank you so much.

So, Abhiram is heading the gold loan business. And what was the other question? LTV, yes, actually gold prices are up significantly. So, instead of 75, say, you bring it down to 70 or whatever, then more or less will be covered throughout. But then that just will recalibrate the loanable value if these guidelines become effective. And, to my mind, you assume that, okay, gold prices are not INR1 lakh, but say INR90,000 or INR95,000 which they were just a few days back. And of course, the business at that level was also healthy. So, I think the gold prices are firm, strong. So, that probably will allow the industry to mitigate this change in the LTV competition process.

Got it.

With regard to the microfinance credit cost for the FY '26, the guardrails one was implemented in July 1st and the guardrails two came in on April 1st. I mean, if you look at the present book has been performing well. So, hopefully, most of the things would be done and dusted by this quarter. And we are looking on an average credit cost of around 5% for the FY '26.

We got it. And lastly, this Tamil Nadu bill that came out, TN bill, are you seeing any early impact? Just like we saw maybe in Karnataka earlier when that ordinance came out, while I appreciate it is not applicable to registered and regulated entities. But anything that you're seeing some disruptions in Tamil Nadu because of this being that was passed recently in Tamil Nadu?

Yes, vis-a-vis Karnataka to Tamil Nadu, there was a huge buildup in the media with respect to this. And post that the bill was introduced in the assembly and it happened. But abruptly, the bill was in, I think in the Tamil Nadu, which even many of us were not even aware of it. By vis-a- vis to Karnataka, we had a lot of preliminary discussions with the various government departments and all those things. But nothing has played out so far in the Tamil Nadu case vis - a-vis what we saw in Karnataka. So Tamil Nadu has remained status quo.

Got it. So it's fair to say that Tamil Nadu collection is still holding up well. Nothing outright alarming that we're seeing in Tamil Nadu just yet.

Yes, that's right. It's holding up well.

Great, sir. Thank you so much. And I wish the team at IIFL the very best.

Thank you.

Thank you. We'll take our next question from the line of Harshit Khadka from RoboCapital. Please go ahead.

My question is already answered. Thank you.

Thank you. We'll take our next question from the line of Abhishek M from HSBC. Please go ahead.

Hi. Good afternoon, everyone. So, Nirmal, one question on this gold loan. Now, last couple of quarters, we've ramped it up back to INR21,000, INR22,000 crores. And on a quarter-on-quarter basis, are we likely to see this kind of a ramp up now? Or are we back to a level where we are comfortable and we can grow more at a, you know, equal pace or even pace rather than, you know, just trying to recover lost ground?

Yes, actually, the market seems good. And we'll have a growth momentum continuing. Even after we have recovered our lost ground. So, I think the momentum seems good in this year.

Okay. And then, you know, following up from that. So, if you look at your Tier 1 and then, you know, parent entity, it has come down very sharply last couple of quarters because, you know, you've ramped up the portfolio. And you saw this reverse effect last year when, you know, the portfolio ramped down, your Tier 1 went up. But if you continue this kind of growth momentum, this 13.8 can fall pretty sharply. So, at what level do you, you know, do you say that now it's urgent to raise capital or infuse capital at the parent level?

So, Abhishek, you know, this, I think we'll focus on one is that the portfolio sell down, which is DA, as well as colending, which, you know, because of the RBI guideline, most of the banks have put on hold. And other than that, we should also look at subordinate bond. But for Tier 1 also, we are open. Let's, you know, at appropriate time, we can look at it for sure. That's something which the board and shareholders have to make an assessment. And we will do that every quarter to see where we stand.

Right. Because if with this kind of growth and maybe even 1.5% percent depletion, you're back to 12.5, 12.4 kind of level where you were earlier before the ban. And that is also...

So, that's what I said in my opening remarks that we are conscious of that. So, we have to work on. So, if you look at our historical trend and our current off balance sheet asset, they are significantly lower. So, the real question that I said first is that if we get back to that level, then we should be safe.

Fair enough. Okay

Now, this question arises, if you are not able to sell down the assets or get the colending partners for the growth. So, I believe that we should be able to do that. And that is what our first priority is.

Okay. And in gold now, you know, we've started off with slightly lower yields than earlier, basically, again, to recover the ground. But now, do we see that normalizing? Now, should we incrementally do we do business at higher yields just to -- just from a profitability perspective? You know, now that we are back to INR21,000, INR22,000 crores.

So, yield has started improving. If you see this quarter is up by 20 basis points on the portfolio level. And it's okay. There are competitive pressures which we cannot ignore. So, it might improve at a slow pace, but still, it has some more room to improve.

So, at the ground level, have you increased deals? That's the question. Or will you increase deals? Or will you keep it where it is and just run?

We have. So, we don't, as of now, we don't have any product or any scheme less than 1.2% per month, which typically, most of the gold companies will have 99% paisa or 83% paisa also, which is equivalent to 9 %, 10% or 12%. As of now, we are not doing new loan s of less than around 15% or so. We can look at the reduction on a tactical or a strategic basis. But the boarding itself is higher at this point in time.

Okay, okay, okay. The other question is on microfinance. In 4Q, is there any kind of write back? Because when I see the provision number, it's actually quite low Q oQ.I don't know, maybe I missed something.

No, what you said is right. So, there are a couple of things. One is that we had a sell down to ARC in which there are some gains or a write back. Two is, we also reduced our stage 3 coverage from, I think, 88 to 70. And trying to bring it to more realistic levels. So, these are things that I had.

How much would have been the write back due to the ARC sale?

INR50, INRR60, okay.

Yes, I don't know. And if I see, it should be in that range, yes.

Okay, okay. And even if I, on your stage 3...

So Q3, on stage 3 is 87.9%. We have brought it down to 70.5%.

Yes, correct. So, around 18. So, that would be around INR60 crores, you know, if you were back at 87-88. And another INR60 crores here, so, INR120 crores. You would still be lower than your 3Q provisions. Whereas, you know, most of the MFIs, if I see, the 4Q provision is pretty much similar to 3Q. So, it's because of better experience, better recovery. Can you, you know, throw some light on that?

Yes. I mean, if you look at how it's spanned out and post -October, how the collection things have improved, we have -- that's what -- whatever the management overlay we had, we have actually, that rollback is based on that. And that's the reason you can see the change in the provisions, what we have done.

Okay. So how much is the…

So, our management. INR125 crores.

Overlay, which was...

Which has been released, yes.

Okay, okay. So, around INR125 crores. That's what you said, right? Just to get the number.

Yes, that's right.

Okay, understood.

Yes, you're right.

Yes, yes, exactly. So, now it is pretty much similar to last quarter, which, yes, that's fair. Okay. And in 1Q, do you expect, like 1Q, 2Q, how do you expect this credit cost to trend in MFI?

The credit cost, if you look at it, I mean, actually, if you look at it, as I explained earlier, whatever the lending, post the guardrails, the things have improved, the asset quality has improved. So, we are almost seeing -- we are at the fag end of it. If you look at our zero bucket collection percentage, also, it's increased. And we are seeing the forward flow has decreased considerably. So, we are going to see an improvement in -- I mean, quarter 2 will be much better. Quarter 1, we may have slight thing, and quarter 2 from onwards, we'll have a better trajectory.

Okay. Venkatesh, one more question. Sorry, just squeezing it in. In Karnataka, 4Q saw a very quick recovery, right, especially in March. How have April, and so far may have been, have collection efficiencies fallen below levels which you would expect normally, or they have just fallen in line with seasonality, or they are stable? How has that moved?

No, there's not much of anything fallen. We are maintaining, and in some states, we are seeing improvements. Karnataka fell down to whatever we had in the month of March.

Okay. April is similar to March.

Yes.

And how much would that be, the number? Which would have been how much?

Both, we would have hit around 96% in collection efficiency in Karnataka.

Understood. Right. Thank you so much, everyone. Thank you, Nirmal.

Thank you. We'll take our next question from the line of Hitaindra Pradhan from Maximal Capital. Please go ahead. Hitaindra, can you please unmute your line and go ahead with your question, please?

Yes. So for the microfinance business, can you give us your SMA 1 and 2 numbers for quarter 3 and quarter 4? And also your gross and net slippages for quarter 3 and quarter 4…

There are there on slide 19, Hitaindra.

Okay. I'll have a look. And also, you know, in terms of your overall OPEX, do you have any guidance of how, this should trend in the first half and the second half as we sort of, grow our...

Overall what did you say, capex?…

Opex. The C/I ratio in the first half and second half, are they going to be meaningfully different given that you also mentioned some investments that you are planning in the next side?

It will not be materially different , because we'll have some other cost savings also and these expenditures will be spread out.

Okay. And for the new proposed gold loan regulations, so in case we have a sort of falling gold prices scenario, then do you see that as a big sort of an impact on your gold loan business?

So if the gold loan prices fall significantly, I think there'll be impact on the industry as a whole.

Okay, sir. That's all from my side. Thank you.

We'll take our next question from the line of Mohit Jain from Tara Capital. Please go ahead.

No. I mean, if you look at the things we have, we have a thing of around 70 %-odd right now. And given the historical things, we are still much ahead. We have around 7% overlay over there.

So because my understanding was that ECL is based on the recent data. And if I am reducing the rate last year, the rates, the losses on the ECL rate would have been much higher. So it's very surprising to see, because if it is an overlay, we could use it. But it's very surprising to see the model throwing a lower loss rate, for this year?

We had taken conservatively up significantly last year. They were increased. So now they ar e brought back to normal level.

And this is done for both Stage 2 and Stage 3, because in stage 2 also we are seeing a lower rate as compared to previous quarter?

Yes, there's a slight lower rate for Stage 2 also.

Okay, sir. And just one thing on the home loan part, you said the increases in the NPA in stage three is because of the micro -lap. How much of our home loan portfolio, in the home loan portfolio, how much proportion is the micro-lap out there? What is the share?

Yes, Mohit, out of this total book which we have, it's about INR2,400 crores.

Yes, okay. Thank you, sir.

Thank you. We'll take our next question from the line of Aswin Balasubramanian from Franklin Templeton Mutual Fund. Please go ahead.

So I just wanted to check in terms of the standalone balance sheet, your borrowing mix has moved much more towards, the market borrowing. I just wanted to just understand the last 3 months, what would have been th e [inaudible 51:05] beyond March we are [ inaudible 51:15] bank borrowing with them?

Ashwin, your voice is a little not audible, but if I understand then you're saying that the borrowing mix has changed. Yes, so we are trying to reduce our dependence on the term loans which are primarily from banks. Going forward, we'll try to make it more and more balanced.

In terms of the liquidity on the balance sheet would you be sort of increasing that especially on the standalone book considering that the mixes were to move over to market borrowings?

Yes, in standalone probably we'll increase our liquidity a little more from current levels.

Okay. So just to understand with regard to my first question, would we be, I mean, in this quarter would we have got till [inaudible 52:20]?

I can't hear you?

Yes, okay. Of course, we got -- we're getting new bank lines and I think we've given some data in the press release also. So there's a continuous process. April is generally a slack month. Normally people wait for the full year results, which is today. But there are quite a few things in pipeline. The bank liquidity has improved and there's a really positive response from the ban k to all our loan applications.

Thank you. We'll take our next question from the line of Gokul Raj from Bavaira Industries Group. Please go ahead.

Hello.

Please go ahead. I'm sorry, the participant's line is disconnected. As there are no further questions, I now hand over the call to the management team for closing comments. Over to you, sir.

Thank you very much for all the participants and their active participation during the call. For any further questions, please reach out to our Investor Relations team and we'll be happy to address all your further queries in case anything is remaining. Thank you very much.

Thank you. On behalf of IIFL Finance Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.