Thank you very much. We will now begin the question -and-answer session. The first question is from the line of Craig Elliot from NWI Management.

Congratulations, Gagan on the great business results and the success of the rights issue. I wanted to express a few things on NWI's behalf. We've been involved in virtually every external bond issuance. And as you said, the wide p aths for the last several years for the business has been a little up and down, but we really appreciate that you've established your credibility. You always say what you're going to do and you deliver what you're going to say and that's very impeccable business. Number two, you mark -- embarked on a monumental transformation to that asset -light model in a market, which currently still is super focused on balance sheet growth and I think they still really haven't appreciated that, but we're looking forward to the market continuing to appreciate that more and more, and we appreciate that you don't flourish in your transformation and your commitment to that. And then lastly, we really enjoyed the transparency and professionalism. We wish you and other stakeholders the very best of all success. Thank you very much.

Thank you so much, Craig. Between Hari and you, you guys have been like pillars for us, both professionally and personally as -- to get Hari's sound counsel when one is wondering what we're doing in business has been quite remarkable. I am really glad that we are in this position today that we are able to return your monies with all that we contracted for. And I really do hope that in one capacity or the other as a bondholder or whatever capacity it's possible, we continue with our association with NWI. I really, really do appreciate the entire team support there. And my team and I are very grateful for whatever help you have extended to us over the years.

Congratulations for a good set of numbers. Gaganji, I just -- the entire speech that you have given is really emotional and being the -- in this community and tracking the banking sector for 20 years and the kind of journey that you have gone through and your entire team, it is sort of inspiration for all of us to learn from these hard times. And really appreciate the way you have tried to assure all your -- not only the debt holders, but the equity holders is unbelievable. So just to put questions forward. My first question pertains to if you could just glance us through the -- we have already provided somewhat INR800 crores for the AIF thing. And the net worth that we have shown during this quarter, just to glance us the comparison from last quarter to this quarter, how it has come to almost a similar number? And just one more accounting clarification that the ESOPs that have been issued to -- which has been vested and the share capital has gone up. So just the accounting principle that we are following in the books, how that has been accounted for would be really appreciated?

Yes. Thank you for your very kind words. And I'm sorry if the speech was too emotional or something. But the last 2, 3 d ays of the last week has been kind of an emotional joy ride, thankfully, it has end up creating value for most of us and has been an assurance for the team. So thanks from my team and on their behalf to all the stakeholders. The accounting that we did for the AIF, and I just request Ramnath to come in and clarify on the numbers. I don't have the numbers top of my head. I'll just give you the principle. Very regularly as a housing finance company, we make annually reserves, create reserves, which are called additional Section 29 C reserves, which we are allowed to dip in from time to time depending on extraneous situations, which are not in the normal course of business. It's an enabling provision given by the regulator. We have dipped into this 3 or 4 tim es in the past. The first time I remember was after the global credit crisis and thereon. So this was a unique sort of a situation. So we have dipped into it in the ballpark of just under INR700 crores. The exact working of the net worth as well as how it has played out, I believe our profits for the last 9 months would be in the handle of INR800 crores, INR900 crores. And therefore, year-on- year, it would show a growth of a couple of hundred crores since we've dipped in to the tune of about INR700 crores. That's the top of head kind of numbers. Ramnath, if you can just jump in and explain the exact math, please?

So we had -- for the quarter, profits of, as you all can see, about INR303 crores. So net of tax, we have dipped into the additional Section 29C results, as Gagan mentioned, of about INR600- odd crores. There has been addition to the securities premium account, both on account of ESOPs and other items and OCI. All of these put together added another INR175 crores. So the net effect of all of this was a reduction of about INR200 crores. So broadly, hence, the net worth has remained pretty much stable, except for this INR200 crores difference.

Yes. So on -- can you -- on what aspect of the ESOP accounting is your question about, sir? Is it on how it goes into the profits or...

Yes, both profits as well as balance sheet? You have already indicated that INR175 crores ha s been added to securities payment account. And since it is a double entry, where is the second entry that you are putting in?

No, no. So these are new shares that get created and hence, they add to the net worth when they are issued.

No, that I got it. But sir, since we follow the double account -- double entry method.

On the other side, it comes in as cash. On the asset side, it comes in as cash and it adds to the net worth on the liability side.

Okay. So this amount has been received in cash from the ESOP holders. That is what you are trying to...

Yes, yes, it has to be received in cash.

Yes, it has to be received in cash before the shares have to be -- before the shares are issued.

Okay. Okay. Because some amount has already passed through P&L also in a couple of cases. So that is why I just wanted to...

No, no, that ESOP accounting through the P& L as a completely different concept. But if someone is exercising investing in a stock and is receiving stock, they have to obviously pay cash. There's nothing else. The ESOP accounting is on the basis of the option valuation, which is getting created because the employee has that option and the price moves up and down. And therefore, the option valuation goes up and down. And therefore, it under Ind AS has to get accounted for in the P&L. That has nothing to do with the cash flow of it. If anyone is getting 1 share, he has to pay for that 1 share. He or she has to pay for that 1 share.

Got it. Got it. Thank you very much a nd all the very best that we come back on the growth trajectory from -- probably from FY '25 onwards, and all the good wishes to all of you.

The next question is from the line of Pradyumna from Flute Aura.

Good evening everyone and thank you for taking my question. Gagan ji and team, many congratulations on the rights issue and the success. I just have a couple of questions that pertain to and I'm just touching u pon the previous participant's question and 1 more. Obviously, we've come a long way from the last 5 years like you mentioned in your opening remarks. . Gagan ji I had one question regarding the net worth. So obviously, our net worth, and as you mentioned, our CRAR requirements, etcetera, already quite on the higher side. If you could just shed a little bit more light in terms of the rationale and the usage for the funds from the rights issue because obviously, that's going to further pad up the networth . But if you could just shed some more light in terms of the timing of the requirement right now would be very, very useful.

Yes, that's a great question and I should have actually addressed it in my comments. So if you have to really restart the growth trajectory, I am firmly convinced of the fact that on a long-term durable basis, we have to leverage on our distribution on our credit appraisal capabilities, and we have to leverage on our relationship with banks and their ability to hold loans on a long-term basis versus our ability, which is when we are funded wholesale, we can't really hold anything long term. The company came all of this way because, thankfully, amongst the many mistakes that we made, we did not make one mistake, which was borrow short, lend long. So we -- our ALM was matched, which it continues to be. If we have to really continue with a robust balance sheet and a quality focused business, we need to make sure that we have the ammunition of being able to cover the entire play field a nd not just be restricted to priority sector loans because we are so focused on asset light. Asset light under the co -lending structure is a recent creation and a forbearance of the RBI. And we are grateful that the RBI has done this for us. If you look at the last 15, 20 years of Indiabulls' existence, always close to about 15% to 20% of our assets used to be assets that we would securitize -- originate and securitize. So that's a business that we would like to get back to. And -- but for doing that, we have to hold on to assets that we create for 6 to 8 months and eventually securitize them, unlike an on -tap arrangement, which is there under the co -lending scheme where you can kind of receive the liquidity for the asset in 30 to 45 days itself. So we ne eded to get capital to be able to break this logjam, start this process where we are holding on to assets, originating and holding them on. And subsequently, the cycle will begin where banks are churning these assets for us. And we did not necessarily want to pad up on our leverage at this time. We continue to remain extremely mindful for leverage. In due course, willy -nilly out of our business model leverage from 1.5x will grow to 2, 2.25x, not more than that. But that's a gradual and slow increase that w e would like to see versus an immediate increase. But to grow our disbursals from INR800 crores - INR900 crores a month to INR2,000 crores a month, we needed this injection. So that's the general utilization of the liquidity that we shall receive. We've transit out basis what the requirement of liquidity will be. And therefore, we've not fall for the entire sum upfront because we will need it in due course. We can't -- even if you want, we can't disburse INR3,700 crores tomorrow or over the next month or 2. So we've tried to be extremely transparent and fair in how we are trying to draw up this liquidity. There would also be other strategic and tactical utilization of this capital, which will facilitate both a cost of fund reduction in due course of time a nd improving cost income ratio over the next 12 months and acceleration of recoveries through this capital by our ability to provide over the next 12 to 24 months. So all in all, my sense is that whether it is a contribution to earnings compounding or red uction of cost of funds or accelerated recoveries, the benefit of this INR3,700 crores, which in the short term will accrue to investors, will be in the quantum of -- will be to the quantum of INR10,000 crores, which was our market cap when we started with this entire thing. So through this INR3,700 crores, the intention of management is by using this money from a liquidity perspective to also achieve certain strategic objectives as well as to use it tactically between the 3, create cash of approximately INR10,000 crores and that's what we're out to do.

Understood, sir. Very, very helpful, thank you for elaborating. Sir, just one more small question. Just touching upon what my previous participant had mentioned. If I'm – it’s more of a clarification, actually, if I remember correctly, in our FY '23 annual report, we had mentioned somewhere that the investments in the AIF units by our company somewhere to the tune of INR3,000 crores to INR3,500 crores. My apologies...

No, it was a little over INR4,000 crores, if I'm not mistaken, stand -alone was INR3,000 - something crores. Ramnath, can you please take that? You will have the granular data on how it has been processed. It has largely been run down. So that is one thing. There will be a some impact on capital adequacy in due course, which we have more than compensated through this capital raise. And we have created provisions, but Ramnath can perhaps run you through the exact drill down of what's happened there.

Yes. So that has been unwound. We had AIF investments in some of these structures where we had moved our -- few of our developer loan exposures. And hence, pursuant to this circular, we had to make the provisions that we have.

So are we looking to -- will we be providing for the balance INR3,000 crores...

No, no, we have taken care of that. So whatever take compliance we needed to do from a provision perspective of the December, 18 circular, that's been completely done.

Okay. So no residual impact, we are expecting as of now...

From the December 18 circular, no.

Thank you, so much sir. Very, very useful and all the best to you and the team.

I'll just take one more question and then we'll -- you can obviously all ask us anything one -on- one. I'll just take one more question on this platform.

We have the next question from the line of Rishikesh from Robo Capital.

It's not a very large sum of money. Yes, just jump in and clarify this INR45 crores, please?

Yes. So this has mostly come from an income tax refund that was due, which has now been received and hence the interest and interest on the refund.

Okay. Secondly, most of the p rovisions this quarter were, I believe, taken for AIF other than which provisions were not much. So how should we see the net provisions going ahead in Q4 and for the next 2 years, as FY '25 and FY'26?

Yes. So provisions will be a matter of -- will be a matter of strategy. We are discussing that internally to see how do we accelerate the rundown of the wholesale book in a systematic manner. And we have the requisite capital buffer. So we have to basically look at what is tactically the right th ing to do. I don't wish to, at this stage, give a guidance on credit costs because we are in the midst of taking this decision. All I can say is that whatever we do over the course of the next 24 months, we should be able to, between recoveries from past write-offs, etcetera, bring back cash to the tune of INR7,000 crores to INR10,000 crores, which is what I mentioned too, in the previous question as well. So that's the goal. We will just look at provisions and NPAs and write -offs and accelerated recoveri es and what kind of litigation cost do we wish to pay and so on and so forth and take a very tactical decision around it. But much as we have been able to recover very successfully, as I mentioned, we sold down -- of what we sold down to ARCs, we've already recovered over 75%. We will be nimble footed, stay on our toes and continue with this process of recovery as incrementally, we focus on two things. One is the retail disbursal growth and the franchise creation around that, where clearly, the goal is over the next 12 months to double the disbursals. And then also use the wide opportunity which has gotten created for getting back to wholesale lending, but not on our balance sheet, not using our capital. Much like we are using our distribution and credit appraisal abilities on retail, we would like to utilize our experience of managing the life cycle of a real estate loan without really putting our capital to risk in a very transparent structure in partnership with the global fund. I've been talking about this for the last 6 months, and that should be the other area of focus. On credit costs, perhaps along with our quarter 4 earnings, we would have internally decided as to what should be the trajectory of that, and we'll certainly guide all stakeholders on that.

Okay. Lastly, so the 15% ROE that we expect, is that after factoring write-backs or no?

It is after factoring everything. So the net worth, in my sense -- in my opinion, between now and then will grow by close to about INR6,000 crores to INR7,000 crores.

Mr. Banga, that was the last question.

Thank you so much, guys, and thank you so much, everyone. And again, I apologize if my comments were more emotional than extremely data -based as they should be in no rmal course of business. But perhaps some of you may appreciate that after having done these calls for the last 10, 11 years, and bored you with the same data, data, data for the last 40, 45 quarters, this may be just an interesting break where I get emoti onal. Thank you so much for your support, and I look forward to speaking with all of you again along with the annual results. Thank you.

Thank you, members of the management. On behalf of Indiabulls Housing Finance Limited, that concludes this c onference. Thank you all for joining us, ladies and gentlemen. You may now disconnect your lines.