Q1 21/22

Jul 30, 2021

Ladies and gentlemen, good day, and welcome to Avaz Financiers Limited Q1 FY 'twenty two Earnings Conference Call. This conference call may contain forward looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in a listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Sushil Agarwal, MD and CEO, AVAS Financiers Limited. Thank you, and over to you, sir. Yes. Good afternoon, everybody, and thank you for participating on the earnings call to discuss the performance of our company for Q1 FY 'twenty two. With me, I have Ghansham Ravaji, CFO Himanshu Aggravan, Investor Relations and other senior member of the management team and SGA, our Investor Relationship Advisors. The results and the presentations are available on the stock exchanges as well as our company website. I hope everyone has had a chance to look at it. As you all are aware, the country witnessed a several severe health care crisis during the first half of Q1 FY 'twenty two on account of second wave of COVID-nineteen. While unlike this year, there was no nationwide lockdown announced by the central government, but various state governments imposed localized lockdowns of various degree to contain the spread of the infection. As a result, the business was impacted during the first half of the quarter, but with the phased reopening of the states after mid May, the business also started picking up from the second half of the quarter. For Q1 FY 2022, we have disbursed RMB462.5, registering a 117% year on year growth. We continue to grow in a calibrated manner and registered AUM growth of 21% year on year. As this is why, we maintained our operating metrics and delivered profit after tax growth of 20% year on year as per India's accounting and 19% year on year as per India accounting for Q1 FY 2022. Last year after the gradual unlocking in the country from the lockdowns imposed to contain the 1st wave of COVID-nineteen, our exposure under moratorium was at 17.8% as of June 2020. As economic activity picked up in subsequent quarters and the cash flow situation improved for borrowers, their repayment behavior also exhibited a continuous improving trend and 1 plus GPD reduced to 8.21 percent as of December and further reduced to 6.7% as of March. Based on the resilience of our customer display last year, our learning from continuous interactions with them, we expect to see similar trend this year as well. This time around, our 1 plus GPD is 12.67% as of June 2021. So if there is no third wave in the subsequent quarters and economy continues to bounce back, we remain hopeful of gradual reduction in 1 plus GPD based on our experience from last year. I would now hand over the line to Ganesh Ambji, CFO, to discuss various business parameters in the case. Thank you, Sushil Di. Good afternoon, everyone, and a warm welcome to our all earnings call. During the quarter, the company borrowed an incremental amount of INR 6,920,000,000 at 4.62 percent for 43 months. As of June 21, our average cost of borrowing stood at 7.25 percent on an outstanding amount of INR 83,200,000 with an average maturity of 127 months. Our long term credit rating continues to be AA- with a stable outlook from both ICRA and CARE. Despite the highest short term rating of A1 plus for short term, we continue to maintain 0 exposure to commercial paper as a prudent borrowing practice. IGAAP to India's reconciliation has been explained in detail for profit after tax and the net worth on slide number 3032 of the presentation. Key parameters. As on 30,021, total number of client accounts is 1,128,000 that is 20% year on year growth. Total number of branches were 284 that is 33 branches added in last 12 months. Employee count 4431 as of June 30, 2021. Assets under management grew 21% year on year to INR 96,156,000,000 as of 30 June 2021. For debt wise breakup, home loans 72.7 percent, other mortgage loans 27.3 percent. Occupation wise breakup, salary 39.7 percent, self employed 60.3 percent. Disbursements increased by 117 percent year on year to INR 4625 million from Q1 FY 2022. As on 30 June 2021, average borrowing cost against an average portfolio yield of 12.99 percent resulted in spread at 5.74 percent. Borrowing. Access to diversified cost effective long term financing from various lenders, strong relationship with the development finance institutions. Overall borrowing mix as of this room is 33% from term loan, 23.1 percent from assignment and securitization, 24.4 percent from National RC Bank and 18.7 percent Debt Capital Markets. Asset quality, one day past due stood at 12.67 percent, gross stage 3 stood at 1.14 percent, net stage 3 stood at 0.86 percent as of 30 2,021. During the quarter, reservation plan has been implemented for certain borrowers' accounts as per RBA Resolution Framework 2.0 dated 5th May 2021. Such account with an outstanding amount of rupees RUB119 1,000,000 has been classified as a Stage 2 and provided for as per the regulatory guidelines. Progenics. Our total COVID-nineteen provision stood at 148,200,000 as on 30th June, 2021. Total ECL provision including COVID-nineteen provision and provisioning for the duration of Hamburg 20 stood at 662,000,000 as of 30 June 20 21. Liquidity of 23,550,000,000 as on 30 June 20 21. Cash and cash equivalent of rupees 11,080,000,000, unavailable CC limit of rupees 1320,000,000 documented unavailable sanction from National Housing Bank of rupees 4,550,000,000 documented unaware sanction from other banks of INR6660 million. Profitability. Profit after this increased by 20% year on year to INR 599 million for 3 months FY 2022 as per the India's accounting. As per IGAP, PRAAT registered a year on year growth of 19 percent to INR713 1,000,000 for 3 months FY 2022. ROE INR 2.64 and ROE INR 9.84 for Q1 for FY 2022. As on 30 June 2021, we are well capitalized with a net worth of INR 24,681,000,000 Our book value per share stood at INR 314.4. Now with this, I open the floor for Q and A session. Thank you. Thank you very much. We will now begin the question and answer session. The first question is from the line of Abhijit Abhaywal from Motilal Oswal. Please go ahead. Thank you for taking my question. Good afternoon, Sashilji. Good afternoon, Madhyamji. Hope both of you are doing well and the rest of the team are also safe and sound. My first question was around the sharp deterioration that we have seen in your Valtas TPG. And I think this looks far more pronounced given that the other peer, which reported yesterday, has not kind of reported this kind of a deterioration. And Esther, correct me if I'm wrong, but I think this kind of a stress buildup we have seen only during the month last time. So if you could please guide what was your experience like during demonetization? And when can we reasonably expect these 1 plus DBT numbers to start getting normalized at this 5% level that you have guided for in the past? Yes, Abhijit. So Abhijit, it will compare like last year when the first lockdown happened, April, my moratorium given to them, customer was around 24% and in June it was around 18%. If you will take the similar situation, now the same moratorium has not been given and restructuring guideline is already opened. So after around 1,000,000,000 customers, we have given around 1400 customers restructuring. And as of June, only 3,000 customers have not paid the June installment. So should we take that number? This is around somewhere around 2.5% of the book. So in June, almost 97% of the customer has repaid their installments. So now in April May when this lockdown happened, so certain customer has missed 1 installment or 2 installments. So like in March end it was number was somewhere around 6%, 6.5% one plus. So around 6% customer missed either 1 stomach or 2 stomachs. But at the June end overall after 12.37%, only 2.5% has not been stomachs. So means from June onward, around 10% customer has normalized their account. And in further July, after this 3,000, already 2,000 account has paid the July installment also. So means things are getting normalized. But 1 or 2 installment for some account which has been not paid because of the COVID impacts. So according to business requirement or maybe salaried customer who has, say, INR 20,000, INR 25,000 salary and INR 7,000, INR 8,000 installment. So they may take 1 quarter, 2 quarter or some of the businesses take longer tenure to normalize their 1 or 2 installment spending. But current month installment, they have already started paying. So I don't think so that is much of this trend, but this is the right position of the portfolio at this point of time. Excuse me, I mean, if I were to just summarize that given the kind of collections that we are looking at now, if the economy were to actually recover, we can also expect a sharp improvement in the 1 plus EBT number in the next 2 or 3 quarters? Yes. So if 3rd wave will not come and economy is on the upscale side, yes, in next 2 to 3 quarters because customers already started paying return month installment. So there is no further stress which is getting built up in terms of Stage 2, Stage 3. Yes, we have certain more requests which is pending for restructuring. We have restructured around INR 100 and INR 110 crores in the Q1. Certain more requests are there, which is pending and we are operating with working with each of the customer. But I think it will be like collection efficiency around 98%, 99% in June itself. And we think from here onwards, I think this will gradually come down in next 2 quarters or 3 quarters. Okay. Thank you. And the last question that I had was on your disbursement. Especially this time, the disbursement mix suggests that they were slightly skewed towards other mortgage loans. I think in your PPT also, you have suggested that about 15% of your other mortgage loan disbursements were towards MSME loans compared to about 7% in Q1 of 2020. So why this is interesting today is, I mean, while we did some channel checks for affordable housing financials in May, you always used to hear that a lot of top up loans are actually happening from the affordable housing financials in May, then there was not a lot of organic housing loan demand. So what was our experience like when it comes to let's say top up loans? And maybe if you could just give a breakup of your other mortgage loans as well? So, Bijit, in our non housing loan, top up will be very miniscule. We have not given any top up to I don't think that it will not be more than even 1% of the disbursement or the total numbers. Second thing is as soon as the lockdown happens, the homegrown customer loan got sanctioned, but in disbursement there is difficulty because of property people not getting registered. And in construction cases, 1st stage is only 10%, 20%. So that gets deferred. And if you will see month on month number, and there was some spillover from last quarter on the non housing side. So only in April, we have more non housing loan discussed. May was around 70%, 65%, 35% and June is 70% to 28%. So June is the normal business month which has happened for us. And there our housing loan disbursed. So if you will see last quarter Q1 FY 2021 also, so housing and non housing was 70%, 30%. And it will leave 1 month operation. We are on that same track of 73%, 27%, 75%, 25%. And I think going forward, we will have the same kind of disbursement trajectory for all our disbursements. Okay. Vishnu, if I can just squeeze in one last question, which has kind of gotten curious that we opened one branch in the state of Odisha. And if I remember reading one expedient data, it suggested that only about 2% of the total outstanding housing loans in the 5 to 10 lakhs ticket size used to come from Odisha. In the overall buyer of 100, just 2% was contributed by Odisha. So I understand that the competition there is low and while you might have a 1st mover kind of an advantage there. But if you could just briefly tell us what was your thought process in entering, let's say, Odisha, where I think the 1st capita income is low and maybe from what I gather, it is also a difficult market. So if you could just share some thoughts around our strategy of entering Odisha. So Abhijit, we are conscious and in our branch opening approach, the end state penetration approach. So as we have done in last 10 years, every 5 years bracket, we open 3 to 4 new states and then go penetration in the taluka level and that's the way we do the business. When we select the branches in the state, we do it on the 2 basis. 1 is we have many data, so state country level, state level, district level, taluka level, population, number of families living there, different income groups, what are the number of housing loan exists. So housing loan penetration less than 5% to 7%, 1 plus less than our benchmark number, 90 plus less than our benchmark number. So those areas or market we open so that our branches can sustain for next 10 to 15 years for the business in that. So now we have completed 2 block of 5 years. In the 1st year, we opened Rajan, Gujarat, Maharashtra MP. 2nd block, we opened Haryana, Uttar Pradesh, Chhattisgarh and Uttarakhand. So now in next 5 years, again, we intend to open 3 to 4 states. So in the 1st year, we are opening Karnataka and Orissa. So Orissa, again, we will open 5 to 7 branches. 1st branch opened in Q1. And in Karnataka also, one portion of our branches are very much near to Maharashtra. So it's a contiguous distribution, Hubli Bank. And the rest branches, we will open as per our program. So there is no change in our penetration policy as per state in the district level, TESI level branches. And we will keep on saying with our analytics numbers and ground level experience. So I think wherever housing penetration is low and the market is upswing, we want to capture that market because we are in the affordable housing segment and where there is less penetration, we see more scope. But yes, on asset quality side, our practices, we are confident now after running 11 years and 2 80 branches that our processes are well worse. But still, in new branches, as we have already disclosed in our last conversation also, we go very slow. 1st 3 years, there is no sales target. We learn from the cash flow, feasibility, how the market behave, and then we go deeper. So we'll continue our same approach, bring more risk averse in the new market. But again, in this new 5 year stack, we will open 3 to 4 new states. But overall, 1 place, like we open 30 to 40 branches every year. So if we open around 100 branches next 4 to 5 years, 60%, 70% branches will be in existing states which are 8 to 9 states existing and 20, 30 percent branches will be in new states where we go slow for the past 3 years. Hope I have reiterated the entire branch opening process and policy which we are following last 10 years. Yes. So Shubhri, thank you for patiently answering my questions. And I wish you and the Avast team the very best for the next quarters. Thank you. The next question is from the line of Uddit from Ambat Capital. Please go ahead. Hello. Am I audible? Yes, Uddit. Yes. Thank you for the opportunity. My questions were, what is the provisioning policy around restructured assets? So are you following a 10% provisioning norm? Or are you prudently providing a little more as per the ECL model? Because we've seen some of the peers doing that. So that's my first question. The second question I had was if you could spell out the amount of interest rate or interest reversals during the quarter, the absolute amount. And if you could tell us the assets held for sale number as of June 'twenty one? [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Thanks, Ujjit. Yes, first, I'm just taking a first question on the prudent policy around the restructured account. We adopted more prudent policy towards the ECL guideline. So for what the restructured accounts we have done during this quarter, we have provided around 14% provisioning on that asset. I think that is your second question was around interest reversal. I think we could not able to understand, but as I think last time at annual closure, I think I explained this thing in detail. We have adopted more prudent policy around interest recognition. We don't recognize any interest income on the Phase III assets. Correct. So in this quarter, whatever new assets have been slipped, so there's no reversal then in that, you're saying? Yes. We didn't book income that. Because last year, we changed, I think, prudent, we adopted our prudent policy. Earlier, we used to do like that, but under India, we changed that policy. But after we again move back to our original policy, we are not recognizing any income on the State 3 assets. So the decline in yield in this quarter from an if I just calculate not the reported yield, is it only because of the direct assignment not being there? No. 2 things. Udi, there are 2 things. First, we have dropped our base rate by 15 basis points from 1st April, which we announced in last quarter. So 15 pesa rate, wase, kamhua and Rest is normal. And then rest is a normal decline. Those decline is a normal the normalcy. Okay. Okay. And on the if you could tell us the number on asset sales for sales? Yes. It is INR 18.6 crore. Okay. Thank you so much. Thank you. The next question is from the line of Kunal Shah from ICICI Securities. Please go ahead. Yes. Thanks for taking my question. So firstly, in terms of the overall ECL provisions at 85 odd basis points, so how comfortable we would be? So obviously, there would be rollbacks and upgrades, which would happen from 1 plus DPD. But if you overall look at it maybe in 31 to 90 day bucket, then does it seem sufficient or maybe the policy would be the way we have seen 70 bps kind of a credit cost compared to earlier years average, could it be higher this particular fiscal and we'll keep on inching up the provisioning? Yes, thanks Kunal. As we adopted very consistent and prudent policy around ACL thing. During this quarter, as I explained earlier questions, we have recognized certain asset risk structure where we have created we fit that asset sheet under the Stage 2 where we have provided higher provision at 14%. And at Stage 3, we provide a provision of around 22% as per the ECL calculations. But we are quite confident. I think we are ECL provision at 0.85%. And we don't think any further, I think, major change will happen towards the overall ECL provision rate. Okay. So then given this kind of a situation overall, we should see the credit cost settling down and normalizing to where it was earlier in terms of pre COVID level. Yes. Apart from that, I will just I want to update one more thing here. Like total ECL posted at INR66 crores as per the if you refer the presentation, This INR66 crores also include INR31 crores provision we have created on account of COVID Phase 1 and recent restructured account. Sure. And there will be pipeline as well of restructuring wherein some further provisioning would be needed because I think that we would not be done. But INR 31 crores already we have created on account of interest. Okay. And further pipeline which could be there that we will have to again create more provisioning. So whatever may be 10%, 14%, that will just get added. Yes, Puna, that will be pained. We will do reassess of earlier accounts also, how they are performing in the next quarter. As well as if there is fresh addition will be there, so accordingly that provision will be created. Sure. And in terms of the nature of restructuring, if you can highlight how it has been given to the customers? Yes. So Kunal, government announced this around 5th May. We got the board policy approved, but interimly, because customer are having the moratorium experience, so as soon as lockdown happened, we started receiving applications around it. And as per the Board approved policy and as per the RWA guidelines, we created a proper setup. We have given customers option to apply for that through various modes of communication. And as soon as we were getting that communication, initially, I think for some 20, 25 days, it was difficult to go to customer, assess the business at his business place. So we did the virtual kind of assessment. And once the lockdowns started opening up, we started visiting the customer place, looking at business, looking at cash flow, GST returns, wherever even selling customers. So they said that their salary is coming less. We take the bank statement. And so we completed the entire process. And then all those cases based on the credit credit rating went to committee. And wherever committee was convinced that, yes, restructuring is in the right mode and customer this restructuring will get success. Then only we have given this restructuring approval. Still, we are working on some of the more applications. We were not able to process 100% of the applications because of the time lag and accessibility. Certain time customers have not given the documentation. But looking at the current numbers, I think some customer has withdrawn their even researching applications also because now the business has come down to normalcy very fast. And some of the customers, so in the earlier, we have said that there might be 2% to 2.5% kind of restructuring, which can come on board. But I don't I think now the number will be lesser than that number. And moratorium would be for 1 year? How would this be? No. So as per customer requirement, certain time, 3 months, certain time, 6 months, 9 months according to customer requirement. And assessment of the credit team, both the things matching, accordingly, we have created the same. Sure. And last question, in terms of securitization, what would be the overall view for the full year? Maybe this quarter, we had not done anything as such, but otherwise in terms of the securitization. How should we expect it going forward for next 9 months? Kunal, as we articulated our management thesis around the assignment transactions, we take assignment as our funding tool Depending upon the business growth and depending upon the price available in the market, we do the assignment transactions. So it's purely dependent upon that. Like last year also, quarter 1 was that we didn't done any assignment transactions. Similarly, this quarter also, we didn't done any because other funds are available at a very competitive price. Like you referred, we mentioned in our call, I think the fresh fund we raised during this quarter is a much competitive price. So we didn't done any assignment transaction during this quarter. But overall basis, we can you can refer, keep last year trend, similar trend will be maintained for this year also. Okay. Yes. Thanks a lot. Thank you. The next question is from the line of Bharat Shah from ASK Investment Managers. Please go ahead. Hi, Sushilji and Ganshamji Namaskar. Just one question. Numbers apart and technical provisioning apart, are these in your opinion more than probably likely to be incurred or reflects your good judgment as to where the cost should be and that is how it is provided? Good afternoon, Barasat. Actually, with auditors, every 6 months, we do the reassessment on loss given default and PD ratios. And same thing we will do in so it's during 30th September, every 6 months we do. And accordingly, whatever ratios come, we provide that. So earlier basis, it is 21.4%, which has entirely seen the COVID first wave also. COVID second wave is not much that severe like the COVID-one because I've told earlier it was a 17% moratorium and now in June only 2.5% customer has not given the installment. So I think more or less we will go by that model and on that Stage 3 comes around 22%. This restructuring guideline, we have followed, but here also we have provided as per the Eastern model. And over and above, we have so restructuring and COVID provisioning is somewhere around INR 33 crores. I think that is sufficient. And going forward also, even if portfolio behaves very well, we intend to keep this as a buffer in the balance sheet. And we try to we'll try to strengthen the balance sheet further so that we benchmark ourselves against the best practices maybe going in a way where we can provide maybe most of the Stage 3 as most of the provision. But technically, you are right. Right now, it's a technical provision. And hope so if COVID-three will not be there, we will have much better results than this. So, Social Security, INR 33 crores is buffer an entirely futuristic kind of conservative provision. INR 31 crore, please. So the 31 close is intermediate block oil provision over and above 50 feet identified and likely credit cost. 31 is entirely additional contingent amount within the business. Barasat, total provision is INR66 crores. It includes INR31 crores. Additional provision we made on account of COVID Phase 1 and COVID Phase 2. Right. So it's a buffer provision. There is no we didn't identify the new likely cost, but it is through precaution? Yes, yes. Thank you. Thank you. The next question is from the line of Neesin Chawatth from Kodak Securities. Please go ahead. Yes, hi. My question actually pertains to your incremental funding cost. I think somebody mentioned that you raised money at something like 4.60% this quarter. I just wanted to understand, a, which are the sources from you from which you're raising money? And b, how sustainable do you think such low cost of funding would be? So, yes, Nishan, Jamsi will revert. But I will say, when we raise money overall every year, so there are different instruments, so NSB funding, long term bank borrowing, assignment and LCD. And at different time of market, different money is available at competitive prices. So in Q1, we have raised most of the money from NHB, which was but in overall, if we'll see, energy money is there every year around same costing. Last year also, I think it was around same costing. And rest of the money from defense remained maybe will be in different parts of quarter. So first, energy money is available around at net price. And rest of the instrument, anyway, the price which is prevailing in market, we are able to do, but it will not go further below 7 to 5 next 6 to 9 months. That is our foreseeable future. But yes, we will keep on borrowing at very competitive prices in that going forward also. Sushil, I think Sushil is very well covered. If you have further more cushion around the cost of Burinto, then I will try to answer. Yes. So see, if I recollect rightly, I think NHB refinancing used to be like 6% to 7%, right? Yes. Yes. Yes. So NHV has a different product, which starts from sub-three percent to from there 6% or 7%. All these lending certain products are a fixed rate product, which give to everyone the same rate. Certain products, they give link to the and HFC relating framework, which they have internally. So it starts from 3% to it can go up to, let's say, 6% to 7% or 8% also depending upon the HFCs. But as Sushilji mentioned, we are at 7.25% at June end. So we are accrue so. We are now almost as we become very competitive as overall cost of borrowing, looking in the current interest rate and likely in your coming quarter scenario. But this INR 4.62 facility, do you think such low subtype of facilities for MSP will continue? Again, let me again elaborate. Like today, we have around the remaining borrowing sanction INR INR455 crores. We mentioned in one of the other 24 slide number. So out of INR455 crores, there may be certain some components. They can give us a lesser price. Certain amount may come at a higher price because they have their own mechanism to give a different product to different institutions. Okay. So it is better to just benchmark with the 7% to 7.2% of what you have achieved. Okay, perfect. Thank you very much and all the best. Thank you. The next question is from the line of Kartik Chalapa from Bina Vistafan. Please go ahead. Yes. Thank you very much for the opportunity. Am I audible? Yes, Kartik. Good afternoon. Good afternoon, sir. Thank you very much, Sushiji and Ganzal Ji for the opportunity. So I have three questions. The first one is, if we were to look at our NPA in the other mortgage loan segments, possibly about 3 years back, this was in the region of about 0.25%, 0.26%. And this has now crossed about 1%, which is almost a fourfold increase and is now almost equal to the home loan gross NPA. So what is it about the segment that the deterioration has been far sharper than home loans? Yes. So, Gautam, as you know, the different business segments have got impacted because of COVID. And again, when we started this business, it was initial sale, we land this portfolio around 14% to 16% rate. And at that rate, we presume that there will be there might be 1% to 1.5% kind of NPA. And even after COVID, this portfolio is showing into that acceptable trajectory. But nevertheless, we assume that this portfolio will be much better once the COVID impact will be lesser. Okay, okay, got it. And Sushil, the 12.7% of 1 DPD, will that get split between self employed and salaried and which are the states that are above this average? So Kartik, can we get back to you on this? Himanshu will give the number. Right now, Dredgen is not available with me. Okay. Not a problem. I'll answer it later. The last question, Sujiji, is The question is If you were to look at salary, I'm sorry. Between salaried and self employed. Yes, the family and self employed and which are the states that are actually above this average. Okay. So we will give this data, try to give this data by end of call or maybe we will publish a script transcript of the meeting. Okay. Not a problem, Sushigi. The last question is, if I were to look at the restructuring book of about INR 115 crores, which you have done and looking at the number of customers of about 14 100, I get an average size of about INR 8.2 lakhs, which is almost equal to basically the ticket size of our loan. So does this mean this restructuring portfolio is typically very, very early vintage customers? And No. No. No, Kartik, I think there's nothing as early vintage. But if we see this 1400 customer slot on where is every ticket size versus our pool every ticket size entire home loan. We don't see any abrasion in the ticket size who sought this restructuring. P. Vijay Kumar:] So these are not like very typical early vintage 1, 2 year kind of customers. It is a mix, but it is just that the average is closer to 8.2 lakhs. I think last 10 years, our average ticket size is somewhere around this number. So I don't think so. So Cartag, almost 75% to 80% of the portfolio is more than 2 years vintage. Okay. After restructure book, about 75% of the restructure book is more than 2 year vintage, is it? Yes. Okay. Got it. Thank you very much, Ushilhi and Ganjali and wish you and the team all the very best for the remaining quarters. That's all from my side. Thank you. Thank you, Kartik. The next question is from the line of Piran Anjaniya from CLSA. I just had a couple of questions. Firstly, on Slide 24, can you just explain to us when you said that the outstanding tenure of borrowings is 125, 130 months, but on the left hand side, when we look at the ALM, there are no borrowings above 10 years. And I understand ALM is for residual maturity and not from the start, but still. And only 20% of it is more than 5 years. So how do we exactly reconcile this data of length of the borrowing? If I understood your question correctly, so let me explain your weighted average tenure of the borrowing. Better tenure is a borrowing. When we source a loan less of 10 years, so it gets counted for the 10 years. If you take a loan from National Housing Bank of 15 years, so the tenure is counted as 15 years. Similarly, if assignment transaction happen door to door maturity, so that also comes because that also gets a door to door maturity around that basically. If we take, let's say, we took NCD certain with a multi led institution like ADB, IFC, NCTC around 7 year, 8 year. So that get counted as actual maturity of 7 year bullet repayment. So accordingly, that average maturity gets computed on the borrowing side. Similarly, this ALM comes out of the remaining assets, remaining liability tenure basically. But that's my question, sir. In that case, intuitively, in the ALM chart, most of your borrowings, like right now, if I see out of INR 6,600 crores of borrowings, INR 5,200 is less than 5 years residuals maturity. Only about INR 14 100 crores is more than 5 years, only about 20%. So that's my point. If the borrowing tenure is so long, why is it like this? Yes. So Piran, I think if you will see the breakup of our borrowing, around 23% is from NHP that is mostly long tenure borrowing. Then around 22% from assignments, which is around again 16 to 17 years. Then most of the term loan borrowing from the bankers, which is around 10 years. That should be commensurate with the loan tenure, so that is around that. And then we have around 15% borrowing from NCED and all those things where average tenure is from 5 to 7 years. So when so if you take this average, this weighted average of borrowing into how what is the door to door maturity of the loan, so right side table is as per that. And the left side table is residual maturity. Is the residual maturity. Okay. But now sorry to harp on this, but now for example, this quarter we raised 400 and odd crores or something from NHP. And as you're saying, it is 15 year money. No, it is not 15. We mentioned 45 months. This year, this is average, which is 44 months. Okay, okay. But I mean in the last couple of quarters, you all would have raised up money which is more than 10 years maturity, right? And but in the ALM, there is nothing which is more than 10 years remaining and very less, which is between 5 10 years also. I think some confusion I'm standing incorrect. Yes. I think there's some confusion at your end. This left side is a residual maturity. Left side is a table is made only on the on book balance sheet basically. Assignment is not there because that become off book item on the balance sheet date basically. But when the right side you see is the entire borrowing including assignment and PTC assignment, liquidation everything is there. So both those two things are different when you see. So once separately connect with Himanshu, he will explain you in detail. Yes, I'll do. And just one other question, how much ECLGS have been done per day? RMB 14.6 crores. Okay, great. Thank you so much and all the best. Thank you. The next question is from the line of Nitesh Shane from Investec. Please go ahead. Thanks for the opportunity. Firstly, I missed the ECZRAS number. What is the ECZRAS number Okay. And similarly, what is the current total outstanding of the restructure book? We have given that number We have given that number. INR 114.96 crores. INR 114.96 crores. In Q4, there was no restructuring. Sorry? No, no. No, we have not done any restructuring in the past now. Yes, sure. And then lastly, if I look at the AUM mix, the share of housing loan in last 3 years has reduced from 80% to 83%, from 80% to 83% to around 73%. So going forward, how do we see this AUM mix? And at the same time, the share of salaried customers has gone up in our mix? No, only that. I think first I need to correct that they were never 82018. Last 3 years data 75.1 to 24.9 and today it is 7327. Percent. And year end, it was 73.5 percent to 26.5 percent. And we want to remain in the same bracket. It was never 80% to 18%. Okay, understood. Understood. Sure, sir. That's it for myself. Thank you. The next question is from the line of Vikas Kasturi from Focus Capital. Please go ahead. Hello, sir. Sir, I had 3 questions related to your business. Vikas, sorry to interrupt you, your voice is coming muffled and a bit of an echo. Can I request you a recap? Yes, sorry. Is it better now? Yes. Yes, sorry. So I had three questions. So the first one is why is turnaround time so important for the borrower? And the reason I ask is that for a lot of borrowers, you are probably the only lender. So why is the turnaround time so important, sir? So I think we have explained in maybe in our processes, we want to be best on our best practices and we want to give our customer best experiences and all the processes which we have built in the company is around how we can improve our customer experiences because in the long term for company survival customer experience is the key. And there's where we have invested in technology, digital processes, analytics and revamping our processes in the new technology. 3 year, 4 year back, we were somewhere around 22 days and now we have come around 12 days. But as a company, we want to reduce it to maybe 1 or 2 days, though it will take time. But certain portion of the customer, we are able to do that in this space. So any repeat customer and any existing customer which is asking for a pending disbursement, now we have come down to one day time also. So it will be our company's continuous process improvement and pursuit that we remain competitive, relevant and give our customer best experience by reducing the turnaround time of all our processes that is very much needed in our business. Thank you, Suraj Shuljeet. But I have read all your documents. And the point that I'm still I'm unable to understand is that for a lot of borrowers, right, they do not get loans from banks and other institutions. And that is why they come to Havas, right? And even amongst out of 100 applications, I think you reject nearly 70% of those applications. So my question is like for a lot of them, you are the only lender. So the fact simple fact that you are lending to them itself would be a big thing for them. So but I'm positively surprised and I appreciate what you're doing here, sir. But I'm just trying to understand that you have laid a lot of emphasis on turnaround time all your annual reports also you mentioned this. So I was just trying to understand that for a borrower, why is it so important? So take me in the right state. My son got 18, 6, 3 months back, and he was a new customer to the bank. But when he entered into the bank and asked, I want to open a current savings account with you, And banker asked him, can you sit down for 15 minutes and I will try to open and it will take one day. And then he asked, nowadays bank is publishing, they can open the account in 5 minutes' time. So it doesn't necessarily that it's a client who is unbanked or who is coming to formal lending system first day and that he don't want his processes to be on time and he is not dealing with a credible lender or banker. So I think on that side, we don't differentiate between a customer who is coming for the first time, who is first time borrower, who is first time coming to the normal lending system and somebody who has 750 CBield score, we want to give her same kind of experience. And as I've told you, as a management, we think that is the most important aspect of survival for company in affordable housing segment and kind of lender we are. That is of the prime importance of customer experience. And we continue to focus on this, and we will try to even better this going forward. So this is a key attribute of our company's deliverables and we don't differentiate between experienced customer from the banking and non experienced customer for the banking. Thank you, Sushil ji. One more question. So could you just provide some estimates of your business per branch for your mature branches and newer branches? Some rough numbers would also be helpful. Yes. So we have, as earlier explained in different forums and calls, we have 4 categories of branches, A, B, C, D. The branch classification depends on the population of the town, number of families living there and how we see the potential of that branch over a period of next 15 years. So like if some town has population of 4 lakhs divided by 4 or 5, you have 80,000 to 1 lakh families. And if we try to consider that next 15 years we will try to maintain 5% of the customer base. So we need to do 5,000 home loans in 15 years. So divide by 180 months in 15 years, we need to do 20 to 25 files per month. So 20 to 25 files per month with our ticket size of 8, 9, 10 lakh rupees, it comes around 2 crores of the business. So when a new branch starts, it works around 70% to 60% efficiency and gradually within 3 years, 90% plus branches come on 90% to 100% capacity. So that's how our business model works. And I hope I have answered your question. Yes, yes. One last question, sir, Sohail ji. What is the average tenure of the loan? So we give 3 to 4 kind of loans. 1 is home loan for construction, 1 is home loan for 1st year, MSME loans, lab loans, then there is a differentiation between customers who are self employed. So according to cash flow judgment, we provide tenure from mostly 3 to 20 years. Average tenure of our portfolio is somewhere around 14 years, go to growth maturity. On behavioral terms, our portfolio tenure is 7.5 to 8 years. Okay. Thank you, Sushilvi. Thank you for all your answers. Thank you. The next question is from the line of Anand Bhavanani from White Oak. Please go ahead. Thank you for the opportunity, sir. Two questions. I said that funding that you raised at 4.6%, does it come with any kind of cap because the funding is at a lower rate, so that's any kind of cap the rate that you can further charge and in this particular case does it apply? Yes. In terms of the supply. Yes. There is one funding which comes from the NHB, which has interest cost around 3%, where they put a cap of onward lending also, which is around 6% between the onward cap come between 6% to 7% depending upon the GSA rate prevailing in that period. Does the cap apply to this funding, 4.6%? No. For that, there is no cap. Okay. Cap comes only on particular borrowing. Sure, sir, sure. And if you think we said, our overall structured book is 114 crores and the provision for restructured book is INR 31 crores. Did I get the numbers correct? No, no. INR 31 crores will be this COVID provision plus restructuring provision. The expecting Providance would be around INR 14, INR 15 crores because we are looking for provision, right? So then INR 15 crores might be around INR 15 crores. Yes, yes, yes. ,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000, Hello, sir. Thank you for giving me the opportunity. So my question was with respect to the 1 plus CPD number that we have got. So what would that number be for states like Maharashtra and that one? Yes. Give us some time. So there is only difference of 2.5% between Aasthan and Maharashtra, not much of a difference. Okay. So sir, if you can give any one of the two numbers that will be So Rajasthan is around 13%. Okay. Okay. And so what has been our bounce rate for June 2020, March 21 June 21? Right now, I don't have. Hello? Yes. Tell me which date you require? So, sir, as on June 20, March 21 June 21. March 24 and June. So I can tell you June 21, it is around 18%, 19% with the COVID impact there. Last two numbers not readily available with me at this point of time. No, Jirair. I'll collect it later. So just one understanding I wanted. So when we have given a home loan to a customer and he's been paying on time and after a year or 2, if he wants additional money and if he give a top up loan. So in that context, how does the loan then get classified? Does it still remain as a home loan or does it get classified as a land? So there are 3 scenarios. If the extra loan, top up loan is required to construct the further home. So say first, he has taken a loan for ground floor. Now he wants to construct 1st floor, then this will be classified under home loan for construction. And if the top up loan is required for his business, personal purposes, daughters, marriage or some other things, then it will be classified in non home loan category. So then the entire amount so for example, if earlier we've taken a loan of INR 10 lakh rupees, now that got run down and outstanding is 5x. And if it takes additional 2.5 for business purpose, then the entire 7.5 gets less than 5 lakhs. 5 lakhs is considered home loans. 2.5 lakhs is considered no home loans. Okay. Okay. Got it. Got it. And sir, the restructuring that we have already done, so how do you see I mean, incrementally, do you think the percentage like right now it is 1.2%, how do you see that number eventually closing? Initially, we started and we told that it can be around 2% to 2.5%. But after Q1 experience, I think this number will be lesser than that number. Okay. Okay. Got it. Is there one last question? Like, since I will, you know, one Shripal, can you hear us? So the line for the participant dropped. Ladies and gentlemen, that was the last question for today. I'm now hand the conference over to the management for closing comments. Yes. Thank you all for attending the call. I hope we have reverted most of your questions and queries. To summarize, we continue to focus on improving customer service and being transparent with our customers. As mentioned in the last earnings call, we have reduced our financials limited time lending rate by 15 basis points with the effect from our profit zone 21. So that got affected this quarter. And thank you so much for all your time. For any further information, we request you to get in touch with Himanshu in our Investor Relations team or SGM, our Investor Relationship Advisors. They would be happy to help you. And thank you very much for patience, listening and COVID-nineteen. Thank you. Thank you very much. On behalf of Avar Financiers Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.