Thank you very much. We will now begin the question -and-answer session. The first question is from the line of Dhaval from DSP. Please go ahead.

Yes, hi. Thanks for the opportunity. I have a couple of questions on the opening commentary. First is relating to the fair value impact. Just wanted to under stand, versus our last valuation, how much was the cut down in our final realisation. And so just if you can spend a minute more to explain what led to this markdown given that generally real estate market is, doing reasonably well. So just any specific reason for the sort of reduction in the value? So that's the first question. And second is relating to, you know, just given that the bulk of the quarter is behind for 1Q , if you could just update on the liquidity position as well as on the growth across all the three businesses, how do you see that for the rest of the year? And also if you can give some perspective around assignment income, how that is likely to shape up in the current financial year? Yes, thanks.

Thanks, Dhaval. So the markdown has two components. One is AR C, the security receipts that we have. And the second is AIF units that we sold. So in case of ARC, there's a valuation done for SR, there's a fair value which is done every quarter. And so, the real estate market is good. That is a fact and there's no denying that. But this quarter -on-quarter valuation, they basically take the realization, the flow of interest, and many other things. So how rating agencies do this, I also don't have 100% insight into it. But these valuations are done quarter over quarter basis. My perception is that, given that there's general caution with the regulatory stringency that we are seeing, that people are becoming m ore conservative in terms of how they value the SR. But whatever we realize, so we get our component of SR, which is maybe more -- typically is around 85% in the many of the transaction that we have done. So to that extent, this becomes like a temporary th ing. Because ultimately, what we realize the bulk of it comes to you. Most of it comes to you. So the second component is AIF, which is where we have again, real estate assets. So, these units, again, when they are sold to AR C, the typically 85% SR remains with us. And there again, because we had to do this transaction a little quicker in the month of March, and everybody wants to be a little more conservative today when they value these assets. So the fair value was done every quarter, and we could have le t it run the full course till first of June. But there was concern about AIF, which RBI has raised several points in time , that regulated entities should not have their loan accounts or these assets in the AIF. Now, this is a very little bit of a tricky case because RBI regulations said that last 12 months, these assets were transferred three years ago. But when they were transferred 12 months before that, they were on our books. So the AIF also had been transferred at a negotiated value. And in case we realize more that the real estate market is good, then that will come as a gain on the SRs that we hold. The second question about growth. As I said that in the home finance, we are seeing that the growth is, the disbursements has normalized. They are at a level maybe similar to what it was in the first quarter of last year. Maybe, and then going forward in the next few quarters, we'll see growth as the environment also has become positive with Prime Minister announcing the reinstatement of affordable housing scheme and the incentive for the same. And I think the third question was about assignment income. So gold loan assignments have not happened, obviously, because of the RBI embargo. To that extent, assignment income will be impacted incrementally, because whatever we could have got on this and the other income will run down over a period of time. And in Housing Finance, I think assignments will go at normal course. But in any case, if you see our last year's Housing Finance, then there was hardly any incremental assignment income, which is upfront is almost negligible now. It's zero. It's negligible. And therefore, we don't see any Y-o-Y impact there.

Just one follow up on the first point on the AIF unit. Just these were transacted by 36 0 One for us and were largely sold to private investors, because…

No, 360 One is not involved in this at all.

Okay.

So there's no 360 One in this. It was straight away sold to ARC.

Straight away sold to ARC and got it.

In the fund, I think 360 One had a INR1 crores investment originally, but that remains. So there's no change there. But other than that, 360 One has no involvement in this.

And just one final thing on the NSE stake that we bought. Any update on that? Have we monetized that in this quarter?

So I think that has been bought in this quarter, June quarter. And by the end of the quarter, most likely it will be liquidated. And whatever gain or difference will be accrued in this quarter, June quarter.

Thank you. The next question comes from the line of Anusha Raheja. Sorry, that's Deepak Poddar from Sapphire Capital. Please go ahead.

So I just wanted to understand now, because of this uncertainty, even our cost th is quarter has gone up, right? When the cost-to-income is on a higher note. So how do we see that the cost-to- income in this year, FY '25? I mean, will it normalize, or will it stay at these range?

Yes. I think the cost -to-income also – now, there are two. One is the total absolute cost might come down a little bit because although we have not retrenched or we are not reducing manpower as such, but the variable component may become lesser with the business and whatever cost control measures that we are taking. But cost-to-income ratio may remain a little more elevated because our gold loan book has run down. And obviously, the income that we get, the net interest margin, which we are getting, say, on INR26,000 crores on March and actually would have grown further in the month of March will be significantly lower. But once the ban is lifted, I think it'll take a couple of quarters or a few months for us to try and gain our market share as much as possible. But because the income will be impacted, the total AUM is impacted, cost-to-income will be impacted this year, at least for this year negatively.

So absolute level, I mean, I think this quarter, it was around INR1,060 crores, right? So on an absolute level, going forward, maybe it will be around that range only, right?

It should taper off a little bit with the savings and variable and whatever we are able to achieve. But it won't be significantly different, but it should be a little lower.

Okay. And I got that point. And on the gold loan side…

Our consolidated quarterly operating cost is INR769 crores. INR769 crores that is the number that you're referring to, right?

Yes. This quarter, it was about INR1,060 crores, right, on the operating cost?

No. I don't know which number you're referring to.

Yes. The consolidated operating expenses, right?

Consolidated operating expenses for the quarter is INR769 crores.

No. So it includes those fair value, adjustment as well.

Fair value is one off. So I don't thin k that INR200 crores loss, should not come back. I mean, that is that is not recurring. The operating cost component is INR769 crores, not INR1,000 crores. Fair value as I explained, that is the one-off thing. Yes.

And do we have any kind of understanding on the gold loan side? I mean, will this ban be lifted or how soon we expect it? So any kind of comment would be helpful?

No. Actually, it's all with RBI. So I don't have any more insight into this. We are engaging with the RBI. We are trying to satisfy and make sure that we meet all the requirements that they have.

Correct. Fair enough. And, I mean, do we want to taper off the growth outlook that we had given earlier in terms of this year 25% growth? So what mayb e the range we may look at right now given the consensus?

I don't think, at this point in time, we can give any outlook or guidance on growth. The thing is RBI ban has to be lifted. So, our focus will be in compliance this year and the complia nce, risk management and control. So, there's no guidance for growth that we can give.

That's fair. I think that's it from my side, sir. All the very best. Thank you.

Yes. Good afternoon. Thank you. Sir, first question was on, the SRs. What is the total quantum of SRs that we have on our balance sheet? And against them, what are the provisions that we're holding today?

So SRs are valued at fair value. So every quarter, the ARC basically d o to valuation of them. And so we have SRs for all businesses, in terms of microfinance, SME and construction and real estate finance . So I think on the standalone NBFC it is a little less than INR3,000 crores.

Okay. So in the Standalone of NBFC, we have total quantum of SRs, which are less than 2,000 crores?

Less than 3,000 crores.

INR3,000 crores, okay. And versus this INR3,000 crores of SRs, how much provisions will we be holding on them?

As mentioned, they are marked down. So, depending on the valuation that you get. Yes, so there's a fair value, which is done. So, basically, the provision is taken care of the fair value.

Got it, got it. So, secondly, on gold loan…

So, we have marked them down by almost INR100 crores.

So, secondly on gold loans, I just wanted to understand why you have already said, I mea n, the ball is now in RBI's court. But just wanted to understand, after the special audit was concluded, what kind of conversations we've had with the RBI? And secondly, in gold loans, are we taking any cost rationalization measures?

So, we are having a very positive engagement with RBI. We are taking their guidance and trying to come up , to make sure that there's 100% and highest adherence to the compliance. Cost rationalization measure, I said no, because we have a fairly well-trained team and a business that has been built over the last 14 years assiduously. So, we don't want to do any cost-cutting because customers jewellery is in our custody, and we hope that we should be able to resume business quickly. So, at this point in time, I think we are running the entire infrastructure as is. And we are doing all the necessary steps required to make sure that we retain all our people as much as is possible.

In your opening remarks, you suggested right that gold loans are a little less than INR16,000 crores. Now, this is as of May or as of date?

As of date.

And so, I mean, has gold loans seen, especially employees in gold loans, have we seen any significant attrition, especially the front-line staff?

There's normal attrition, which has been there historically, but there's no additional attrition that we have seen. So, in the entire crisis, we 've been able to hold back our people and make sure that the customers are not inconvenienced, and they're serviced properly. Actually, it's just coincidental that last year we had announced a golden ESOP scheme where many of our old employees were given three-year bullet-resting ESOPs at INR10, regardless of the stock price. Obviously, those stocks are significantly in the money and people expect to build their wealth and that has been a good retention tool. But other than that, we are engaging with our people and most of them are old, loyal, trusted people and they have full confidence and faith in the company's business and our ability to steer clear of this.

And so, my last question is, again, kind of circling back on liquidity and cost of borrowings. Understandably, you might not have had to borrow a lot incrementally after the gold loan ban, but how is it the engagement with banks or that market participants going on after the ban? And I think in your commentary or the press release, we said that we are now kind of thinking about more controlled AUM growth. So, understandably, until the time this ban gets lifted it's difficult to really guide on AUM growth targets but at least are we kind of looking at more moderated growth going ahead given that you spoke about gold loans will start going only after the ban gets revoked. In microfinance, we are again kind of looking at some calibration. So, other than maybe digital loans and housing finance, we are seeing some moderation going ahead.

I think I don't want to speculate about growth, and I don't think that it would be right to say it will moderate or not moderate. But what I'm trying to say is that we don't want to give any guidance on growth. And this year, primarily we want to make sure that our assurance functions, which comprise of risk management, audit, and compliance they should become full proof. They should become something like industry benchmark. And in terms of the organizational goals, growth becomes secondary. But that doesn't mean that there's any guidance of a slowdown or acceleration of growth. But the best is that there's no guidance for growth. That is what I would like to put it. Secondly, in terms of liquidity, we have INR6,559 crores of liquidity as of March end which is fairly comfortable. Even today, our liquidity is quite comfortable. And even before the crisis we had always been conservative and kept our liquidity which is enough to cover the contractual liabilities for the 6 to 12 months in the fores eeable period. So, we have not faced any liquidity issue as such. And even continuing, I think liquidity is not the challenge right now. But what we need to put together is that once RBI's positive action is there then we can resume our business.

Just to sum that up, I mean suffice to say that if at all we see any controlled growth going ahead, that will not be because liquidity is something that is constraining. This is all that I was kind of trying to understand.

I mean, I won't put an adjective of controlled growth, but yes, liquidity is not a constraint for whatever growth you have to achieve.

Thank you. The next question is from the line of Pranay Jhaveri from JNJ Holdings Private Limited. Please go ahead.

Good afternoon, sir. Thank you for this opportunity. This is just one question from my side. Can you just elaborate on your comment earlier which you made on microfinance? Thank you.

In terms of what, what was the comment about microfinance?

Basically, you will see in the book, degrowth or basically the disbursements are quite slow.

Yes, basically, microfinance growth has been slower in this quarter , in the current quarter that we are seeing. So, microfinance business, historically, last year has grown much faster. Now, you know, actually, when we talk about growth, growth is neither a problem or a solution, but when there's a growth that can be a source of the problem. So what I'm saying is that we don't have growth as primary objective this year. Our primary objective is to make sure that our assurance functions are robust, our systems and processes are such that they're completely fail-proof and they meet in absolutely 100% the regulations in letter and spirit. So that is what the objective is. Now, in microfinance, there are two things that have happened. One is we are trying to make sure that our compliance is strengthened further there. And two is that after the RBI embargo, the banks have been cautious in lending incremental credit to this business, microfinance. And we also see that as an opportunity to make sure that we m ake our systems and processes more robust and make sure that there's a reassessment of our control system. So one or two quarters of microfinance will remain slow. And that actually gives us an opportunity to make sure that our house is fully robust and pr operly in order. But that is what I got in my commentary on microfinance.

So just one clarification here that will be helpful. So is this because of the embargo of RBI for the gold loan business or there is something…?

What hap pens is that, yes, embargo of RBI for gold loan business, the banks have become cautious about lending to all the businesses. But in case of housing finance, we have raised equity capital, and we have a fairly robust capital adequacy that you see there. And also, it's an entity which is regulated by NHB as well. And in terms, so all the businesses work differently and separately, but microfinance credit lines have been impacted more.

So this would be on the liability side. Because we are hearing some noise of RBI in terms of higher interest being charged. Is there something to do with that?

In the entire microfinance sector, actually. So yes, there has been RBI concern about these things. And everybody, I think, the associatio n is also looking at it about the interest rates and many other things about the industry. See, this industry long term has tremendous potential, and it serves a very good social cause because people at the bottom of the pyramid, even if they borrow at 22% or 24%, what is the current rate typically in the microfinance industry, this is my understanding, but obviously and I don't have any authentic research in my hand, but obviously, with our people, with our branches and whatever feedback we get from our cu stomers, the alternative cost of funding for these customers at the bottom of the pyramid would be significantly higher or complete non -availability of capital. And even by paying this kind of interest rate, most of them see significant improvement in their living standards. They are like handicraft or people who are vegetable vendor or those who are in certain cottage industry. For them, capital is such a constraint that if some small amount of capital also can basically change their lives. So the industry has a good purpose and a good cause, but there are certain regulatory practices which may get tightened and obviously, industry and regulators will work together for that.

Great. So to sum it up, do we see AUM degrowth?

In this quarter?

No, for this whole year.

I don't think so. I think we should be able to catch up over a period of time, over the rest of the year.

So, like a flattish year for microfinance this year?

I'm saying it's difficult to give guidance, but what we have to do is that, if there's enough, the industry will grow, we'll participate in that. This quarter may be slow, but in next quarter, as we get very confident about our assurance, we might be in line with the industry. So it's very difficult to give guidance, but we really have to see how things evolve from here.

Fair enough. Thank you so much, sir. Thank you.

The next question is from the line of Anand Laddha, from HDFC Mutual Fund. Please go ahead.

Hello, sir. Sir, if you can give some more clarification on the value of SR. So what is the gross value of SR at the console level we are holding? And what is the current markdown value of those SR?

I don't have these numbers readily with me, but we can figure out. So what happens in case of SR is, I don't think that the concept, the way it works, the accounting and the INDAS, is that they're valued every quarter and they're just like in all the stocks or any other asset for that matter and then you take the value. So many times, the value goes up with the accrued interest as well as the gain that is there, but I don't have those gross value markdown number, but we value at the basis, the fair value, what we get from the ARC, so.

Okay. But, sir, we would at least have the markdown value of those SR we are holding today?

Well, I'll tell you why it becomes very difficult to do that. Because once you have SR and whatever repayment has come, that basically keeps adjusting the value. So the value , the gross value, supposing two years ago or three years ago, we had issued certain SR, there have been quite a few repayments done over a period of time. There may be small, small repayments, but every quarter they come, they also keep adjusting the valu e. Plus, there's a pool which keeps changing over a period of time. So it is not an instrument which is static because if there's a repayment, NAV goes down and then there's the mark-to-market up or down, so it keeps changing every quarter. And it's a pool, so some of the SRs would have been issued last quarter, some of the SRs would have been issued two quarters, three quarters, one year, two year back, so it's all, to segregate and find out gross value will be very difficult. It will be very different for every SR.

Okay. So I'll take that offline. Sir, if you can give some clarification on the NSE transaction we did, sir. It's not a usual business transaction. So at one instance, we are taking a liquidity support from Fairfax, one of our large stakeholder, and at the end of the transaction, we are buying some equity from them. So if you can give some rationale for this NSE transaction.

So as per our internal treasury policy, out of the liquidity that we have, a small percentag e can be put into, say, such as equity, IPO, or other equity -related instruments, but with a short -term objective. Now, this transaction was contracted before the RBI order, which is before 4th of March. But I don't know, as a group, we have more than 2% o f NSE in various funds of our 360One and others. And therefore, the approval process is a little longer. And NSE took more than a couple of months to approve the transaction. But obviously, Fairfax had contracted the trade before the order, and the approval came later, but both the parties committed to honour the contract. And that's how the transaction culminated after the order. And that is when it came to the public as well as the limelight, in terms of discussion. But having said that, as I said, that as per our treasury policy basically , these equity instruments are only for short duration. So they'll be liquidated during this quarter. And so I think, I mean, does that answer your question?

Perfect, sir. So lastly, on the NPA, we have seen some increase in gross NPA in the Gold Loan as well as developer loans. So if you can give some colour on the same.

So I think I explained in my preamble that with Gold Loan, there are rollover cases where earlier we took a view that if the loans are less than 75%, we can take it as a new loan or we can deem it as a new loan. But auditors have taken a view that that is not the case. And these have to be treated as NPA. But then we have rolled over for the customer, we can't really press the customer for repayment faster. So we'll wait for the rollover period to get over. So in this quarter, next quarter, they'll come back to normalcy. But as I said, in our Gold Loan portfolio, almost the book has reduced by 40%. But we did not have any case of a customer complaint or a loss or any other problem for that matter, so this is about the Gold Loan rollover. In case of construction loan, there's one case, one loan of around INR50-60 crores or so, where there is a one-quarter delay in the payment. But we have a fairly strong quality cover there. But that has to be classified as NPA because there's more than 90 -day delay there. I don't expect any loss there, but it has spiked the CRE GNPA for the quarter. Because now the book also has become smaller a fter the ARC transfer. So on the smaller book, that INR50-60 crores also becomes significant.

Perfect, sir. And lastly, sir, on the housing finance business, at least you don't have any liquidity challenge in that business and that business can continue to grow.

Yes, Monu is here with me. Maybe he can talk, share his thoughts on this.

Yes, hi, Anand. So in housing finance, usually, as you know, the Q1s are a bit muted because a lot of changes happen. But keeping that i n light, we are very much the way Q1s are. And our disbursements of housing finance business are as usual as they would be in a quarter one. So this was as per our annual plan as well. So we are doing pretty fine there.

Perfect, sir. That's from my side, sir. Thank you.

Thank you. The next question is from the line of Anusha Raheja from the Dalal & Broacha. Please go ahead.

Yes, thanks for taking my question. So you had AIF exposure amounting to around INR1,200- odd crores, which was supposed to get matured. So, I mean, the loss rate is notional, or you have booked it? It's a realized one?

No, it is not. So this loss can be recouped if these assets basically reali ze, although 85% of loss can be recouped because if there's a higher realization, then this SR, 85% share comes to us.

Okay. And so in Q1, so can we expect normalization in the gold loan entries, or do we expect the rise in the NPA and the gold loans to continue in the Q1 as well?

No, I think NPA in gold loans will get normalized partly this quarter, partly next quarter. But hopefully next, by next quarter, more or less, they will be in line with the historical normal trend.

And what's the resulting rise in commercial real estate loans NPA?

there's one loan where the instalment was not paid and it became over 90 BPD, so it had to be classified as NPA.

Okay, sir. Thank you.

The next question is from the line of Abhishek Murarka from HSBC. Please go ahead.

So my question's on the standalone business. So in the period where there's a contraction in gold loans and you can't disburse, you'll still be maintaining the infrastructure, the people, branches, all of that. So that cost will obviously stay on the book. So is there any alternate business that you are planning to do in the meanwhile? Or just how do you plan to use that infrastructure? Or did you just maintain it and wait for the approval from the RBI? What's the strategy there?

No, it's a good question, Abhishek. So we thought and internally we deliberated and debated a lot on this. So one is that the people are still in gold loan while we have tried to train them in unsecured business loan as well as LAP. And also, they're cross-selling insurance and other products. But because the core is gold and as we expect that maybe in a short time, we should be able to resume our business, based on that premise, we have not disturbed that infrastructure. But what we have done is that we have told our people to engage with customers and track them carefully, service them properly, so that whenever business resumes, we can get back our old loyal customers as quickly as possible. So that's a call one has to take. And so in terms of -- I don't think we'll diversify in terms of strategic focus but the product that in any case we've been doing where we have the core competency that is where we ca n use the branches more intensively. Because what happens is that it's just a matter of a few months and any new business product matter will take a few years to stabilize go up the learning curve and get critical mass. So we thought that we'll stay put. W e'll do certain cross-sell and mitigate the damage. But other than that, we'll wait for the gold loan business to resume.

I was thinking of something like sourcing the gold loan for a bank where you can keep using your customer and you're not deploying anything to the bank.

I think we can become a business correspondent and source 100% for the bank. That is not something which is prohibited. Now the challenge is that every integration in terms of process , technology is fairly long particularly with banks. Because even in co-lending, it takes six to nine months because almost in the real time KYC check and a credit underwriting is done. So what is happening is that we tried to pilot this, but we realized that if the normal business operations will resume say in a short time, say a few weeks then it may not be worth the effort to change the course because it's a huge effort. And then when the colending starts then we are already tried and tested for colending. So we can do all ou r other activities quicker if we don't digress. That is what the thought is. But we have piloted, we have talked to a few banks, and we are still working on it. We are keeping it ready as a backup emergency plan in case there's an inordinate delay. There the margins are also different and there are many other implications in terms of process flow , technology and integration.

And in terms of the RBI conversation, while I understand there won't be any timeline, yourself might be a little unsure of the timeline but after the RBI comes back then how long does it take for you to restart? Let's say whenever they come back.

We have been engaging with RBI they've been supportive, and they've been helping us understand the issues and how to navigate. But whenever the ban is lifted, we can come back quickly because immediately the next day we can start the business. Now the question is that the bank credit lines, typically banks also take some time to process the application, which can take about a month to month and a half, but we already have liquidity cushion. So the colending and many other of these transitions can start very quickly immediately, maybe on the next day or within a week, if I had to be maybe a little more conservative but I think the business will start immediately. And it gathers momentum as we go along. Within a month or two months, we'll try and get back to the disbursement level that we were. And within a few months maybe six months, we'll try and get back, we'll hope to or look forward to get significant part of the market share back.

And just lastly, in terms of MFI, so till the time the ban lasts, you expect some liquidity tightness to continue, or can that be independent of the ban and slowly lenders get comfortable and start lending more? How do you see?

In microfinance, Venkat has joined the Board and we also got very marquee people on the board. And the business model is also under review and we are making sure that it is robust from long term point of view. So hopefully, that business , in terms of the disbursement, pace should pick up from next quarter and we'll accelerate from there.

Okay, thank you, Nirmal, all the best.

Thanks, Abhishek. Thanks a lot.

Thank you. The next question is from the line of Dhaval from DSP. Please go ahead.

Thanks for the follow up. Just a few more questions. First is on this running cost of the gold loan business now. Nirmal, if you can just give some perspective on it. And also, what's the potential runoff that we expect in the next couple of months? So that's one part. And the second is on the NPA in the digital PL book, while the book is small . But just any thoughts of seasonally 4Q is normally a good quarter. So any specific reason? And are you seeing some bit of pullback in 1Q or it's?

I think your voice is getting a little muffled. Your first question was, what is the running cost of gold loan?

Yes, running cost of gold loan. And the runoff that is expected in the next couple of months in the book. And the second question was relating to the digital PL book. We've seen a spike in the NPA in the fourth quarter, which is a seasonally good quarter. Just is that getting arrested in 1Q or is it likely to deteriorate further? And what's the course direction that we're taking in that portfolio?

So gold loan, our standalone running cost is around the INR360 crores in a quarter, which is around INR120 crores per month. But that includes the top management cost as well as business loan. And significant part of that cost is difficult to separate. So that is one thing. Second thing is about digital finance. That book has a higher yield and slightly higher losses also. But over medium to long term, I think business still is profitable and generates the required RO A. Now in that business, what has happened is that we have in terms of small ticket business loan, what we're doi ng is smaller and smaller. As you become granular, your yield goes up or yield is maintained at a higher level. And your NPAs may go up a little bit. So, I think that's the character of that business. But what we have done in that business also is that th ere are certain changes that we have done in terms of the credit underwriting process as well as the ticket size. So, what you will see in this year is that ticket size might improve a little bit and the GNPAs will fall. So, if you say from FY’24 and FY’2 5 end, then our internal business strategic plan is basically to bring down the GNPAs which are between 3% and 4% to closer or maybe less than 3% or more closer to that. And that might impact yield a little bit, but broadly, I think that we should be aligned with that. And the business will have robust growth this year also.

And sorry, let me just comment, runoff in the gold book, that's roughly about INR3,000 crores kind of number per month?

So, runoff in the gold book is almost about 10% per month.

10% per month. And does it accelerate in the rest of the year because of the residual maturity being now relatively lower compared to when we started? So, does the principal runoff accelerate as we progress month after month?

Not really, because at any point in time, you have a book which has different residual maturity. So like, supposing March, when we had a pause, so there would have been loads of Feb, Jan, December, and going back. So broadly, there won't be any acceleration in the runoff. But as the book goes down, the absolute amount of runoff will also go down.

And just to the question that Abhishek asked around this alternate option, including the BC one that you talked about, at what point dot we decide to sort of move in that direction. Is there a particular timeline that you have in mind around which we think of this INR120 crores fixed cost that we have largely to re-utilize that in other ways?

So I think, by September, hopefully . When we've been engaging with RBI and we are taking their guidance, and they're very supportive in making us understand, and they're also understand the problems and the issues that we are going through. So, I think what they want is also the compliance is done, then they also want the business to resume and support. So, there's no reason to be really pessimistic about this business as such. But still to answer your question, if these things continue for three more months, then obviously we'll look for, or maybe two months to three months more, then we'll look for alternate plans, which is, maybe a significant cut in cost, or the other businesses as such.

And our audit for FY’24 will be starting anytime, or it’s already underway, the RBI audit?

So, the audit cycle has started, so maybe the next year, FY’24 audit will start anytime. I really have no idea on that, but that can start at any point in time now. I think it starts from July, if I'm not mistaken, I think. there are many NBFCs, so they take it up from July onwards.

Thank you. The next question is from the line of Gokul Raj from Bavaria Industries Group. Please go ahead.

Hi, Nirmal. Any updates on the business…

Yes, I was wanting an update on the business loan because all the other three segments have been updated, so any update on the business loans?

Business loan has many segment s. One is unsecured business loan, the second is supply chain financing, and the third is loan against property. On a smaller base, that business has been growing at a normal pace as it was growing in the last quarter. So that business on a relatively smaller base will continue to grow this year.

Because of the business loan in the standalone NBFC, has that had a huge impact or that is continuing as per your plan?

No, the standalone NBFC, the business continues in standalone NBFC, and so the disbursements are at normal pace.

Thank you. Best wishes.

Thank you. That was the last question, ladies and gentlemen. I would now like to hand the conference over to the management for closing comments. Over to you, gentlemen.

Thank you very much, ladies and gentlemen, for joining this call and for your patience hearing. For any further queries, you may reach out to the investor relations team, and we'll be happy to address any query that you might have any further. Thank you very much and connect back with you soon. Yes, thank you so much. Thank you all the investors for being on the call and your support. Thank you.

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