Thank you. Ladies and gentlemen, we will now begin the question -and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, if you wish to ask a question, please press star and one. We take the first question from the line of Abhijit Tibrewal from Motilal Oswal Financial Services Limited. Please go ahead.

Yes, good morning, sir and thank you for taking my question. First of all, congratulations to Sir Ajai Shukla on assuming the role of M D/CEO at PNB Housing. Sir, first question on the affordable book. You have called out in the presentation and in your opening remarks as well that you have restricted ticket sizes in certain geographies. So, just trying to understand which geographies are these, right, and what are the underlying reasons for restricting ticket sizes, if you could just help us understand that?

Thank you, Abhijit. As far as Affordable book is concerned, we saw some challenges especially in some part of southern market. It was not all across India. So, we recalibrated our strategy in those markets. This was primarily because of some government ordinance and that is already out. I think we will rework and we will come back again on the new methods of defining our affordable strategy for the southern market.

Got it. And sir, this ordinance that you are talking about, is it the MFI ordinance that came in last year, almost a year back?

Yes, it was that, but it impacted the Affordable business also because when any information comes to the market, it impacts the other segments also.

Got it. And these are not geographies or customers which have got impacted by tariffs or anything, right?

So, there was some partial impact on geography also. So, for example, Tamil Nadu, we saw some challenge. Because of that, we decided to re -evaluate our strategy in the TN market. And since the market is again stabilized and the government ordinance is also stabilized now, I think we will be focusing again on those markets.

Got it. So, the second question I had was, I mean, late last night, you declared a corporate account as a fraud account, despite you having called out that you've written out this account back in FY '23. So, just trying to understand, I mean, this come up during any of your RBI or NH B inspections? And a related question here is, I mean, while you've been around here for a little over a month now, have you had a chance to take stock of the loan book? Basically, how is the asset quality and would you need to take any higher provisioning on the book in the coming quarters?

So, as far as this fraud which we reported, as you rightly said that we already written -off this account in 2022-23. And there is no material adverse effect on financial of the company. And we are currently undertaking appropriate legal measures in this case. The amount sanctioned was INR275 crores and the current outstanding is INR237 crores around. And since this is already provisioned, so no financial impact. I don't think…

Noted and sir declaring this account as a fraud now, was there some technical reason behind it?

Yes, it was basically due to some recent developments which have happened in that particular account. And hence, as per the process, after following the due process, you know, of giving principles of natural justice, we have then decided to declare it as a fraud.

Okay. And so, then the last question I had was, I mean, have you made any PLR changes in the last quarter or any changes effective January this year?

No, not yet.

Okay. So, this is all from my side. Maybe I'll come back in the question. Thank you. And I wish you and your team the very best.

Thank you. We take the next question from the line of Vi ral Shah from IIFL Capital. Please go ahead.

Yes. Hi. Thanks for the opportunity and congratulations, Aja i, on the new role. It has been now one month since you joined PNBHF. I just wanted to understand from your perspective, first of all, what is it that you are finding it, say, different versus your expectations when you were joining? And secondly, more importantly, if there is any change or an update to the strategy of, say, growing the share of Affordable, Emerging, any, say, anything within, say, underwriting or the collection practices where you think you can make it more robust, any of those things, what are the – what will be your views on those things?

Thank you, Viral. You know, I think, you know, last 30 days, what I observed that we are on the almost similar kind of path which, you know, any other housing finance company works. And as already said, and I reiterated that we'll continue the guidance which has already been given in the market. We'll focus on our Emerging and Affordable business. So, there will not be much change in the strategy of the organization. We'll continue and we'll further improve and explore the opportunities where we can get the better yield and NIM. I don't see any challenges, as Vinay also confirmed that on the quality of portfolio because even in Affordable also, we are much better than any affordable company in this industry. So, I don't see there is any change as far as the, you know, quality and all those things.

And just as part of this only, so I think earlier guidance with regards to, say, the share of affordable and emerging mix, stated number was 40%. And then I think a couple of quarters back, there was some reclassification in emerging and we had kind of highlighted that we can, that percentage now can look higher. Do you want to give any percentage target over a medium term?

Yes, so currently we are 39% and we are expecting this to grow in the range of 45% to 50%.

Emerging and affordable, yes, put together.

Got it. And just on the question that I asked, sorry if I am repeating, but with regards to the underwriting practices or collection practices, you don't anticipate any change because of which there can be any disruption to our growth or anything?

No, I don't see that there will be any, disruption because I think things are going very well as far as underwriting and collections are concern.

Got it. And my second question, Vinay, was to you. How soon can we get to, say or converge our overall cost of funds to now the incremental cost of funds of 7.2%? And what would, we are, say medium term now, NIM trajectory guidance, if you could help us with that?

We will, so this NIM as of now, due to pressure on account of runoff and the new disbursement yields already running lower than our portfolio yields, so that pressure is going to continue. We are offsetting it with the reduction in cost of borrowing. So we continue to maintain the guidance of NIM between 3.6% to 3.7%. Post Q4, we will recalibrate, looking at, once the stability happens on repo, how it is going to play out in the next year. And once we launch CF, once we launch this Developer Finance, I think these will obviously add on to our overall yield profile. So next year, probably we might see, some expansion once these new segments start delivering.

Got it. I think this was last question from my end. Thank you so much and all the very best.

Thank you.

Thank you. We take the next question from the line of Kunal Shah from Citigroup. Please go ahead.

Continuing on the question with respect to, say, under the new management, just wanted to understand any key priorities that would be there, or maybe it's the business as usual, any key priorities from your end. And in terms of the ROA, we are still guiding for 3.6 % to 3.7% ROA. We still have the benefit of, say the recoveries, which is there. So maybe in terms of picking the ROAs up, and what would be the aspirational ROA target over next 3 years?

So, thank you, Kunal. So let me, slightly correct here. I think you're talking about, NIM or you're talking about ROA?

No, no. So I was saying, like, margins, we are guiding for 3.6 % to 3.7%. And we still have the benefit of the recoveries, which would eventually go away over the medium term. So then maybe in that scenario of steady margins and maybe some normalization of credit cost, how do we see the ROA spanning out over 2 to 3 years?

Just to add on, Kunal, there are three levers, as MD sir also mentioned. We are starting CF, so that will definitely support us on the NIM. Secondly, we are also starting a small developer finance, which is also going to be a new vertical, where average ticket size will range between 25% to 30% and yields will be in the range of 11% to 12%. So that will also be NIM accretive. And on cost of borrowing, again, we have few levers like, if the rating upgrade happens in a quarter or two, that will also lead to substantial benefits on our cost of borrowing. So these factors, apart from shift that we are making towards emerging and af fordable, it will be somewhere around 50%, let's say by end of next year. So by then, we would have some benefits on credit cost. And after that, these things will definitely support the current NIM profile. Actually, it will help in improving the NIM profile.

Yes, and in terms of this small developer and CF, we had gone through that cycle and we had run down this entire portfolio. So maybe learning from the past experiences, any differences in the business model that we would now incrementally cater to? And how much would it scale up to? Maybe is there any gap in terms of the proportion we would want to or maybe can it get towards like 3%- 5% of the AUM over a 3 year period or no, we'll not be so aggressive?

Yes, so Kunal, I think what we have planned is that we will be having almost 8% to 10% of my total book as our exposure in Construction Finance and Emerging Developer portfolio. Any given point of time, it would be in the range of 8% to 10% only. That's the maximum exposure we want to keep. That all will remain the retail business. As far as policy is concerned, so Emerging Developer and Construction Finance both will have a separate policy. Okay, there will be a difference between both the policies. Because where the Emerging Developer Financing will end, the Construction Finance will start. So we are in the process of designing Emerging Developer policy, the construction policy is already in place. And, that's how we have started, sourcing business also, but soon you will see that possible we'll start in Q4 or maybe first quarter of Q1.

Sure. And one last question, if I can squeeze in, that's with respect to affordable again. So you are maybe when you mentioned like you have recalibrated the growth in some geographies and ticket size cap in select geographies. Overall, when we look at it, it's like still the ticket size of more than 15 lakhs is something which is coming up, which is coming down, actually. So is that maybe in terms of the ticket size capping or this is something similar to what indicated challeng es in the southern market. And even in terms of the repayment rates in affordable housing, when we look at it with the disbursements, which have been there of INR 786 crores, we are still seeing almost INR 600 crores of addition. So there's hardly been any rundown, which has been there in that portfolio. So maybe what could be the reason for that? So, the repayment prepayment run-rate still appears to be quite low in the affordable housing. Yes. And where should we aim this segment to grow over the next 12 months in terms of the growth ratios?

Yes, hi, this is Valli Sekar. See, regarding this, you know, disbursement, which you are asking about in Q4, the ticket size will slightly go down, because now there is a slighter concentration towards the PM AY as well. So, the ticket size from the last year has slightly come down also. And this recalibration is particularly in the southern markets. As you all are aware that Tamil Nadu used to be our number one contributor in terms of the business. So, when we faced that, you know, ordinance issue in the first quarter, end first quarter, by second quarter, we had recalibrated certain policies in certain branches and on the ticket size also. So, the effect has come as a spiral effect on the quarter three. But now in quarter three, since the ordinance, you know, has been retaken back, now we have again come back with the policies. And by Q4, we will be coming back again, as usual in those markets. And the guidance remains the same, we will be growing quarter on quarter in the, you know, in 25% to 30% is the level of growth, which we are expecting.

Okay. Yes. That’s helpful. Yes. Thank you. Thank you and all the best.

Thank you.

Thank you. We take the next question from the line of Nischint Chawathe from Kotak. Please go ahead.

Yes, hi most of my questions have been answered, just a small one on competition. On the affordable side, you have kept the incremental rates stable sequentially. Do you see competition in the sector? And do you see these rates going down? And likewise in the prime side given the fact that we are probably towards the fag end of rate cuts, do you see the intensity of competition to reduce?

So Nischint, I think the competition is all across in this industry. So I think it's a very competitive industry. In Affordable also, there is enough and good competition as we see in Prime business. But just that competition is there, you know, there will not be much impact on the pricing because the range wherein we are operating is already very competitive pricing in the market. So I don't see there would be much more price drop in the market, especially in Affordable segment. I think this will remain as it is. And as far as Prime is concerned, there is definitely is, you know, because of recent repo rate cut, there is a challenge in the market from the nationalized banks and the private sector banks. But we have segmentized ourselves in a very different way. So close to 45% of my portfolio is self-employed and 55% salaried. So, we get better margin in self-employment. That is why we are able to maintain our margin and NIM.

Have you called out a difference in rates between salaried and self-employed?

Got it. And you're increasing the share of construction finance and emerging developers, sort of technically increasing the risk profile of the company to some extent. In this backdrop do we really see a rating upgrade given the fact that the risk will incrementally be slightly higher?

So, yes, definitely the construction finance business is always a riskier business in the market. But I think the kind of policy and underwriting standard we have set, I think we will be sail through easily…

Nischint, also there is a cap on the overall growth. We are not going to grow very aggressively here. It will remain range bound between 5% to 7% in the next two to three years. So it will not grow so aggressively. And large part is still retail. So that is not going to be a challenge.

And you're expecting an upgrade probably next one or two quarters, right?

Yes, I mean, we are hoping for it.

Sure. Thank you very much. And all the best. Thank you.

Thank you. We take the next question from the line of Nidhesh from Investec. Please go ahead.

Thanks for the opportunity. And good morning. So first question is on yield. There is a 25-basis point decline in yields in this quarter. So if I look at the share of corporate that has slightly gone up, and I think share of emerging plus affordable has also been going up. So what explains the sharp drop in yield? Have we taken a price reduction on our back book? Because I see incremental yields are also broadly stable. So what is driving this sharp yield reduction and how you see yields going forward?

Yes, see, Ni dhesh, as I mentioned, out of this 25 or 23 bps, 10 bps is on account of one large corporate account, which got foreclosed at the end of previous quarter. So ,since the book mix between retail and corporate has gone down, and that was a large account of around INR 340 crores. So that got foreclosed. So that has impacted my yield mix for this particular quarter specifically by 10 bps. Rest 12 to 15 bps is on account of disbursement yield being lower than the book yield. And the higher runoff pressure which entire industry is going through on the Prime and Emerging segment.

And how do you see yields going forward?

Going forward, So this 10 b ps obviously is one -off of this quarter. Unless we see more run off happening on the corporate side, this should not impact again. Then the next 10 bps to 12 bps is something which will remain and that is what we are trying to offset through the reduction in cost of borrowing.

Sure. And secondly, the runoff rate has also increased. You also mentioned that. But if I look at the calculated repayment rate was around 15% till Q1 and it has now increased to almost 19% in this quarter. So how much is balance transfer of out of it and how do you see what we are doing to arrest this?

So, as you rightly mentioned, yes it has gone up from 15, 16 to around 19 now. And large part of this is on account of BT outs. The increase is actually on account of BT outs. And this is true because of the current rate cycle we are trying to manage. But I think it will remain somewhere around 18% to 19% till the rate stabilizes.

So till quarter one, you know, Nidhesh the BT involves higher than the BT out. After the softening of rate of -- and repo rate cut by the RBI, the trend of BT in has changed. So if I talk about this quarter, earlier the story was whatever was the BT in, approximately same was the BT out. But now there is a difference between BT in and BT out of almost 2%, month-on-month. So quarter 3, there was a difference of almost 2% because the rates have softened. So customers are looking for better prospects or maybe where they can get a better rate. So this challenge is not with us. I think this is the industry challenge which industry is facing. Whenever there is a sharp rate cut, you will see this trend.

Sure. And lastly, if you can also speak about the yields in the corporate, in the construction finance book. So on the Emerging Developer, you mentioned yield of around 11%. What will be the yield in the Construction Finance book of ticket size of more than INR30 crores?

So yield, I think it would be in the range of around you can safely say between 12 % to 12.5%. That would be the range in construction finance.

Because in the Emerging segment, you mentioned yield of 11%. So I thought the...

No, so emerging it will start from 11% because this Emerging Developer will have a combination of cities like Delhi and all those. So the prime, the super prime developer of this segment will definitely look for a better rate. So it will start from 11%, but it will go up to 13% and 14% also. So overall, we'll maintain in the range of 12.5 % to 12.75%. So largely the corridor would be between 12% to 12.5%.

Sure. Thank you, sir. That's it from my side.

Thank you, Nidhesh.

Thank you. We take the next question from the line of Bunty Chawla from ASK Investment Managers. Please go ahead.

Thank you, sir. Thank you for giving me the opportunity. Firstly, on this, as you said that you have reported the frauds, which is already written off. So any internal implications or any steps needs to be taken internally in the system because of this, if you can highlight on that?

Thank you Bunty for first of all for the question. I don't think there is any internal implication because there's a process which have to be followed . And already legal measures are going on. So I don't think there is any internal implication of this.

Okay, that was very helpful, sir. And secondly, as you mentioned that you will be able to sustain the 17% growth for retail segment for this year also. So that gives a -- if you see the Q4 number in terms of disbursement slightly higher on a sequential basis like 45%, 50%. Is it possible after you have you already said that we are now moving to normalization in terms of affordable. So this gives a large task in terms of disbursement in Q4?

Yes, so always in the industry, th e Q4 disbursal is always high. So currently on Y-o-Y basis, we are at 16%. So 18% should not be a challenge because that's how it’s historically you see the data talks about. So I think we would be able to achieve those numbers.

Okay. And sir lastly, you said we will be able to maintain the margin 3.6 to 3.7, along with the stability in ROA of 2.5 % to 2.6%. But as we see currently, we are in the end of cycle of the negative provisioning. Next year, it should be normalization of credit cards and all. So what drives you to give the confidence of ROA remaining stable at this level?

So – see there are two aspects of this. First of all, I think we have a pool there in, at least in four to five quarters, we will have a recovery from our write-off pool. So that's the first confidence. The second confidence is that once we will improve over this Affordable business and Emerging business from the level of 39% to 45% to 50%, that will give us better yield as well as since we are going to start our Corporate Construction Finance and the Emerging Developer Finance. That will also give us edge to maintain the higher business volume and the higher yield. So this will maybe, if at all, we don't get much relief from after five -- four to five, six quarters, then I think by the time this business will build and will compensate from the scale of business and the margin.

Okay. So you are saying that the recovery will continue still for next four to five quarters. So on that what should be the normalized credit cost for FY27?

So FY27, I think it would be. we are expecting if I talk about next year from FY27-28 onward, it would be in the range of 20 to 25 bps credit cost.

Okay. That was very helpful, sir. Thank you and congratulations Ajai sir.

Thank you.

Thank you. We take the next question from the line of Avinash Singh from Emkay Global Financial Services Limited. Please go ahead.

Yes. Good morning. Thanks for the opportunity. Again, a bit kind of continuing on that ROA and NIM question. So, I mean, currently that NIM is like 3.6, 3.7 that you kind of reaffirmed. And if we were to look at NIM plus fee, probably close to 4.1%-odd. Now, I mean, beyond this four, five quarters where you have this benefit of provision reversal, a normalized credit cost, if it is going to be within a 20 basis point, assuming that, okay, anyway, you are going into construction and development finance. Probably, basically this is a kind of a reversal of nearly a 40-odd basis points in terms of where the credit cost is. So mathematically speaking, to maintain ROA and also with your kind of, you know, growing book, the financial leverage will mathematically work against that NIM plus fee. Now, so when you are looking, say, FY28 or even beyond two points, kind of a current level of ROA, basically that requires a NIM plus fee to go up mathematically by nearly 50 basis points. So, I mean, of course there are push and pull factors, but are you sort of confident because we have very limited scope in opex, what I understand. And of course, credit cost side as like 40 basis point kind of a reversal. So do you see mathematically spea king that the 50 basis point is pull and pull factors taking this, let's put NIM and fee to 4.5%-odd, because that will be kind of a required level to deliver this 2.5%, 2.6% ROA. Thanks.

So, yes, Avinash, I think you rightly said that there would be impact of almost 40 to 50 bps to get that kind of ROA. I think we are very pretty much confident that we'll be able to do it because the kind of yield and the NIM, you know, we'll get in my construction finance and my small emerging developer funding. I think this will help us. Plus scale up business will also help us because once the business scales up, you know, your cost always goes down because it gives, you know, benefit of your book also. So, I don't think there will be any challenge on that.

So, yes, thanks. So, beyond FY 26, I mean, what is kind of further now you are going to start sort of a new segments and all. So, medium term growth guidance or aspiration, what's that level?

So, we are working on that. We'll come back on that, you know.

Got it. Thank you. All the best.

Thank you.

Thank you. We take the next question from the line of Himanshu Taluja from Aditya Birla Sunlife AMC Limited. Please go ahead.

Hi, sir. Thanks for the opportunity. Just a couple of questions at my end. Can you just, given you in your opening remarks, you called out certain with respect to few challenges in the Southern market related to the MFI ordinance, which triggered some calibration. Is there anything apart from this? Is there any other, basically, any other challenges with respect to overheating of these geographies? Because we are seeing various players operating in the southern markets are seeing some slowdown. Can you just call out if there is any, apart from this, and how do you plan to react to this situation? Second is on the affordable housing . We are seeing some of the industry, bureau data, which suggests that there is volume softness in the ticket size of up to 25 lakhs for the industry. How do you plan to deliver growth if the industry volumes remains on a muted? If you can just help us, how do you plan to deliver growth in the affordable? Or can we see some bit of calibration in the growth for next few quarters as well in the affordable housing? Thanks. And then I have one more question.

Yes, Himanshu, hi. So, this, as far as this, you know, ordinance issue was there, it was an issue that came up in the end of Q1, where the spiral effects continued in Q2 also. In our collections, we found some heat coming in the delinquency, early delinquenci es were coming. So, we immediately took a proactive action. And because that being our biggest contributor of the business numbers, we immediately got into ticket size. And we have already given in one or two of our meetings that we, you know, converted the country as Tier 1, 2, 3, 4, and we bifurcated the ticket s ize as per the Tier 3 and Tier 4 markets as well. So, now, by, you know, by end of October, November, around the festivities, the ordinance circular has again come from the government and we find the situation normalized. And by end of December, we are finding even the collections strategy become, becomin g normal. So, now, again, we will go back into our original policies, because we had, we had completely slowed down there. Now, we will come back to the original policy. And secondly, regarding up to 25 lakh cases, see, I would have slightly deviated, you know, statement on this, because with PMAY coming in, all the players are getting into more into EWS and LIG. So, it might be a very temporary slowdown, but I would not s ay because the PMAY everybody is getting into it, because it is until 5 years, the customer cannot leave out of doing a BT out, it is a very good proposition, which is come, which is given by the government. So, everybody is following that. So, taking that in queue, you know, we will be in the same level of growth, which we were posting in the previous quarters. Yes, we were growing very rapidly in the first 2 years, because we were a startup mode. But now we will come as per the industry standard to 20% to 25% quarter-on-quarter growth ongoing, Himanshu.

Yes, sure. Just the last question, what proportion of the PMAY, what proportion of the PMAY is in the total disbursement currently? So, probably, what proportion that will be in terms of the total disbursement, PMAY contribution?

So, PMAY 2.0 is not, see, it is just started. So, because the pool is building up now, till now. If I say the ballpark number, it would be the subsidy, which we customer have got is around in the range of INR 7 crores to INR 8 crores, which subsidy has been given. I think there were some challenges in teething trouble in initial days when the program was launched on technical challenges, which has been sorted now. The process is also smooth ened, because NHB and government has taken, you know, different measure for that, and they sorted it out. Now, I think this will scale up and it will move very fast in terms of getting subsidy to the customer. But as of now, if you talk about the contribution is very low, because the process was slightly cumbersome.

Yes, so no, it may not be a very high game changer, I would say, but definitely it will be a game changer, because there is enough push from the government and the National Housing Bank also to promote this. And, that is how I think this again, some meeting is going to happen in few part of country, where a few of the, further deliberation will happen. And I think government focus is clearly on to improve this because the overall amount which they have allocated is substantial to facilitate to the underprivileged customers.

Okay, sure. Sir, just a small, if you can just provide even if Valli ma'am can provide this data point for the affordable housing, how is the 6 MOB and 12 MOB put for vintage portfolio for the affordable housing, how these numbers are trend and yes, thanks.

We will get back to you separately.

Sure. Thank you.

Yes, thank you.

Thank you. We take the next question from the line of Harshit Toshnival from Premji Investment. Please go ahead.

Hi, sir. Am I audible?

Yes, sure, you are audible.

Sir, the question was related to the 10 basis point impact, which you mentioned because of the corporate move, one of the account run down. When I look at the corporate developer loan movement this quarter, from I think INR 319 to INR250 crores, since we haven't done any disbursement, I think everything that re payments are not very high. It is to the tune of INR 70- INR 80 crores itself. So, actually, if you can help me tie up that 10 basis point impact on the yield seems too large for a run-down of INR 70 crores number itself. How should we look at that 10 basis points? And you mentioned that next quarter onwards, the reversal will happen for that 10 basis points. So, should we expect that the yields of 9.55, which we have come to normalize number would be 9.72 number, a normalized number would be 9.85 to look at from the next quarter?

Yes, Harshit, as you mentioned, so it should not be compared with the, you know, this run -off happened at the end of previous quarter. So, the run-off happened on 30th of September. So, the 30th September book was already lower by INR 350 crores. So, it has actually run down at the end of Q2. So, hence it is not showing in the run-off. But if you see Q2 beginning book, and then compare, you will be able to see the difference.

Got it, got it. So, in that case, then my 9.72% reported yield this quarter, shouldn't this be the normalized base rather than, why would that 10 basis points normalize?

Okay, got it, got it.

Thank you, Harshit.

Thank you. We take the next question from the line of Praful Kumar from Dymon Asia. Please go ahead. Praful, please unmute your line and proceed with your question. Since there is no response, we will move on to the next question, which is from the line of Prithviraj Patil from Investec. Please go ahead.

Most of my questions have been answered. I just had one question on the disclosures that were given. So, affordable, prime and emerging, have we changed any classification there? Because I see that the Q3 FY 25 numbers are different from the ones that were reported earlier. So, I just wanted to know if there is any classification change there. Thank you.

So, Prithvi, there is no change of classification. The classification as it is, the geography, the segment is, there is a difference of only segment of the geography. So, what we were following, we are following still. So, there is no classification change, rather we will increase our footprint in emerging and affordable segment.

Okay. Thank you.

Thank you. We take the next question from the line of Umesh Jain from Kotak Life Insurance. Please go ahead. Umesh, please unmute your line and proceed with your question.

Yes. Thank you for the opportunity. Have you answered the reason for no change in the branch addition? If I look at the branch addition in the affordable and emerging market, we have not seen sequential change while from last couple of quarters, there was a very strong healthy branch expansion. And how should we see this number going forward in Q4 and FY 27?

So, Umesh, I think the practice which we are following is that at the end of last quarter, we add new branches. If you see, why it has not happened sequentially in Q3, because this quarter, we will add some 35 to 40 branches, which will reflect and will be operational in Q1 of next year.

Sure. And what will be net branch addition in FY27?

In FY27, we are expecting 50 branches almost.

Oh, 50 branches put together and what will be the affordable make into this?

No, so 50 branches, if I take about end of FY27, it would be around 75 to 80 branches, but because these branches which will come up in Q4 will actually reflect in FY27, plus branches will also be working on that. So, the total number of branches put together for this year and next year would be around 70 to 80 branches.

And majority would be affordable?

Thank you. Ladies and gentlemen, with that, we conclude the question-and-answer session. I now hand the conference over to the management for their closing comments.

Thank you, everyone, for joining us on the call. If you have any questions unanswered, please feel free to get in touch with Investor Relations. The transcript of this call will be uploaded on our website, that is www.pnbhousing.com. Thank you for your participation. Thank you.

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