IIFL Finance Limited (NSE:IIFL)

Q4 19/20

← View all transcripts

May 29, 2020

Good day and welcome to the IRS Finance Limited Q4 FY 2020 on important solids. As a reminder, All participant clients will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the call, please signal an operator that has been star then 0 on a touch tone phone. Please note that this conference is being recorded. I now hand the conference over to the management team for the opening comments. Thank you, and both of you. On behalf of T. Michael, finance, and thank all of you for joining us on this call. And Rajan Sajid, CFO, complete by Nimmal J, our chairman, our internal managing director, Sumeet Bali, CEO, and I'm a head to work CRO. I will now pass the call to our chairman to commence all overview of the group's strategy and plans. Thank you, Raju. Thanks and welcome to all the parties tell investors, and we have a good representative on this call. I think I won't take much time on COVID 19 because everybody has lots more information on this, but one thing is sure that nobody knowing, what's going to happen in future. So the uncertainty was never higher, and nobody was a big, but also what's going to happen. And under these circumstances, we still have a plan for future. And this time, I think we have done a lot of internal brainstorming and a strategy discussion here at both level. So in our presentation, I'll just take you through the few slides which are different and which can be a completely business model, if we can, you know, we can continue, we can be nice to meet you for the, business and, I'll take you through the thought process that we have. And, so if you already have presented with you, the visa, I'll be covering from flight ready to flight services, and even if you don't have it, you'll just listen. So today, in terms of risk, as I said, that the future is so important that everybody has no clue how event cases start out. So on one hand, we have a virus and pandemic, which is in the pan out in a very good movie mostly. And then on the other hand, your response of vomit of India as well as RBI. However, you know, they are provided for some degree. The number of seats have been announced. And many times when announced keys and the way they had executed, uh-uh, you know, there's a lot of lessons in terms of the intent and the way education happens. And at the same time, there is nothing that government has done till now for the to make up for loss of income of MSME or a very small businesses will be impacted. So maybe in terms of risk, if you look at the worst possible or worst case scenario, and then there are 5 managers that we identified. One of the slowdown and the retention or depletion, what do we call it, in the economy, which is quite possible, can cause a significant deterioration in quality of assets. And in terms of business loans on the late kid projects as well as Maybe, you know, to some extent, home loans can get impacted by this. The 2 are areas of liquidity crisis you have been there from our 20 months. Things got a little better in between but they again deteriorated. And today, the banks are his covered, and they perceive that we assist to be his key, business So then the liquidity crisis may not have easy answer or easy solution. Many guys, when garlic pushes liquidity each for a month or 2, and then something can happen. And again, it can get into a crisis. So, you know, we we are in a a sector where regulatory problems can be continued as a perennial, and one has to really take them into account. 1st is a negative sentiment about cancer sector as the stock addition, but obviously, that limits our ability to raise equity. And, you know, the significant dilution within this small equity is almost all the problem. Number 4 is now, it's only on your own brain, sir, because as we have seen that not only in MBS is even the banks, the money and the deposit is flowing into a handful of banks, maybe 1, 2, or 3, or maybe 4, like, in the on the last day, and they're the largest bank. They are most about 35% of the volume if I receive last. There are 800% increase in the month of April. So if this kind of risk, everything will continue, there will be a handful of banks and maybe very few agencies that's how we will have, the liquidity and money. And some of the loans are getting money at very cheap rates. And the many other NPSCs that are finding it difficult to raise any liquidity. So this kind of uneven training field, it can happen. And the 5th is, you know, the lockdown continues for a very long time. People are working from home. There are personal information technology and cybersecurity. For all kinds of things. So in these five risks that are major risks, that we talk about, let's not lose sight of opportunities. And in fact, there's no crisis which, you know, has I mean, if this is a, you know, still maintained, there wouldn't be any crisis, which do not have opportunities in them. And everything, whether it's EK YC or e, or assign e documentation. Now it's getting accelerated. You know, having invested a lot in digital technology and being pioneered in many tech, you know, many of these technologies, you're quite accredited at this. The paperless, physical, presenters, you know, loans, businesses, all those things can bounce as impossible. You know, I don't technically existed, but there was reluctance that are resistance to adopted wholeheartedly, or you are so these things are 2 banks are getting huge liquidity. As you have seen that, you know, a lot of surplus bank money is with they're just earning about 3 or maybe 3 or a quarter percent or 3. So if I go to that, currently, obviously, you know, they can't continue this kind of scenario for too long because their margins have been impacted. And, obviously, they have to find, I because they probably be asking to the wholesale assets, or wholesale projects, you know, asking for funding. And the new detail assets, and you don't have the last line connecting with the customer then, you know, company like us with 2 network, will be there in Dubai. I mean, we can still set it for them. Then, 3rd opportunity, unfamiliar costing the opportunity when people work from home, home, and when we see the last couple of months, you still have cost. People are working sometimes the productivity is higher because 30, 35% of the time they were losing, committing little rules. It also allows you to do a delayering and create a credit organization because in our system, people think that some people may need a fee with it, but when we realize that we're working from home on a remote business, telecommunication, and all those things can save a lot of costs. Our focus is that as I know, the consolidation which will happen because of this kind of, as I spoke about, but I need to know, you know, the front as well as the confidence in the club. And then the Capital 1st 3, which will cause capacity to contract for the many smaller DSPs and many smaller private banks also. May find it difficult to continue the running operations. And therefore, the forces survive, they will have a facility because Now the satellite side, you'll see complexes, whereas the demand side has changed the cover, hopefully expansion against that. Now the first thing is I know people, what we've seen in the last couple of months that he's not a group of me, there's a lot more money aside from any mutual for stock markets and many new customers have started coming to the market. And actually, I do think that people are also in our future. They start sending less than selling more. This is a gift for possible opportunity for, companies like ours where, you know, our branches are also named as Louis And Investment Center, where we get a significant reference fee, from the group companies across selling investment initiative plan. So in this kind of scenario, what do you do? So what, you know, in fact, the new business model does not work on, and it's it's a it's a Spanish, but it's also named that you want to build a COVID organization. And the COVID fewer stands for Capital Optimize and VA stands for value innovation. So it's a capital Optimize Value Innovation General Organization. So let me broadly what it is. We own the customer, but sell the loan. Then we have a revenue model which is right in stream of spread income or the difference between the, you know, the car, the hail that you're sold at it, and the hail that which we charge the customer and also the proper income because we own the customer. In fact, many of you who have been tracking the company would know, that almost 40% of our loan is already sold to banks. And this is something If we work on this business model, we can take it to, you know, what our target would be to 75 80%. And when the remaining money can be funded by general agreement. Now we are here at Portfolio, which is now down to 10%. We have a ring fence that just be the sponsor for the fund or an STB and plan the lease liability. Now this work is standard earlier, but unfortunately, because of the COVID 19 disruption, or, you know, but still as soon as things are normal, we are to complete this project. There are quite a few funds who are interested and we are the executive and of course, I can send you a sponsor for this kind of fund or a student. So, you know, maybe broadly, we target now these are things with but at least we keep a 9 month target to hold by the businesses aligned the workflows into the technology. And work out, you know, the stability during the month. So when you say capital optimize, what does this mean? I've had a bad network of 20,077 branches. 450 were, settled in last 1 year, which again throughout the year, we have degree problem, but we are convinced about the retail president in this country, and we kept growing. In 35 States, 600 cities and towns covered. We can visit our network. To source the retail assets and then get relatively security method, not only because of our network, but because of our expertise and understanding of the business. And a private sector email assets also. So it's within the ring when you're using it, and there is something that we can do with multiple times. So it's a capitalized NPSC that owns the customer. And we get to rapid technology integration because all banks have technology systems which are taken from large technology companies or some of them are property component, our advantage is that we are seeing that we will team in all our technologies in house, and therefore, it gives us an advantage to integrate and be flexible. Now, you know, when banks are acquiring access, UNBAC, you know, they're very they're seen in the last 18, 30 months, that, you know, there's a really bar of assets all the time. Because they they are not response and they don't have video like it. So they will direct the phone with the wrong message. I'll be in touch on all these schemes where they just found out that they didn't try to check it for them. We delete we originally assist in due to them. There was a refinancing earlier from ISB. It should be a number. And also call any business not taken off, but another model, which is you know, and the original itself, you can give to the bank. So in a way, it acts like an agent, but it's not a legit agent, but it's not more than that. Because what you're doing is that you have been credit underwriting as well as guidelines and make parameters, but also you service the customers, you do the collection, and throughout the life cycle of the customer you are engaged with the customer. And of course, we're really going to meet the requirements of each and every part of the bank. So this is the capital optimize model that I was talking about. In terms of value innovation, you know, we just put up a few products that I have called Home And Businesses of Zulu, We already have 49 or 4,000,000 customers. If you focus on this, then we are seeing scale. Now, also, we are seeing that the flexible staffing work from home can save cost. We have invested a lot in digital technology and operating the processes so that gives us the cost advantage. From customer's point of view, we become one stop shop. We can offer him all the loan products in the best way because we are releasing it to the bank where we can get them, for a high credit score customer, the best possible way. We have a lifelong commitment to the customer in terms of managing them. And as I said, the lessons on that expertise is there in the group. We have a unique role in recognizing his own connection as well. Many status should have come and thought about the business model. But we have been there for more than 2 decades in industry. And our physical network of such large number of branches gives us direct contact with the customer and understanding of how actually the credit unionizing standards have been implemented. Our digital presence website and app is also very strong. There are millions of people who are you, you know, who use our app and website. We have a propriety technology which is tablet which works and gives a very high level of security advantages we invested over the last 3 years. So even our building branches, is there any PCs or cable to buy it? People work on mobile, but they are very well controlled delivery. And then they are centralized legal assistance. So this is the hope that we have a room, origination, collection, you know, all that we can do. Mairo, this business model is very ambitious. It's something which is in a real industry. And what is that dream and how ambitious this is if I can I can summarize what I've been getting here for years time? It may sound very ambitious for you know, but, if it works really well, then we can become a debt free NPSC. So even if you don't assume 100 percent, of our agreement, we won't get to 80% 50%. We would have, you know, created a completely different business model. And which is so capitalized. And I started my career in Nissan Zebra, and I can really now I can understand that I appreciate the and some you're working in a business where you don't need capital to grow the business. So that's the business model that you're going to work on. Well, very quick. Can you take us through the liquidity where let me look at it. Okay. Okay. One more second that we are added because there's a lot of concerns about the real estate project that we have. So we are called a JL and PwC to do a dividend quarter on each energy project, and we have ordered 2 more agencies to do them on a continuous basis. And we have included certain analysis based on schedule project completion, the target segment, whether it's affordable, good income, or high income, the geography distribution, the developer track record, And also, sensitivity to price fall, this can happen because of, COVID and the real time the storm in the economy. So if you really look at it, very broadly, I think you can go through the slides. I won't take much of a time, but 92% of projects that you fill us are eligible. And, therefore, our vulnerability to commercial price fall, which is now cured more is much better. 60% of our projects are in advanced season solution. And, these are the project by project details that you ordered. 76% of the projects are affordable. Where the unit value is less than rupee like rupees in most of the cities like Bangalore and Alibaba, less than a one sort of rupees in Delhi and Bengal, but in other cities, there's like, and we bundle that into the. So there's a classifications of of of of of of of of Mumbai and we came in high account for 52% of our funded credits. All ninety three percent of the other calls that we funded are more than 10 years of successful track record. And 97% of 100 projects, you're gonna be employed for, say, 25% fall in real estate sizes of Mumbai or in a commercial side, you know, for fall by 20% or, you know, you know, like this, then also there's a lot of power of more than one time for our loan in interest level. So this was a little bit dive into the rest of the project that we have. I'll hand it over to Rajesh, our CFO to take you through Let me know, send me the details of our financials, and then we can open it for you. Thank you. I'll just give you all a brief update on the business, liquidity and the COVID impact another section. On the business side, I have a plan. Net profit was at least 116 goal in the 4th quarter, up 16% quarter on quarter. And flat for a year on year basis. Net profit for the year was 756 crores, up 8% year on year. Which was excluding one time impact of COVID 19 provision of INR211 crores, net of tax. The deferred tax reversal of 50 crores and gain 1 divestment of the divestment of CV business over the 94 crores in the previous year. Loan AUM grew 9% year on year and 5% quarter on quarter to 37,951 gold rupees. Old segment view passer at 12% year on year to 32,773 crores. Retail loans, including consumer loans and small business finance considered 88% of our loan book. A tier 1 capital adequacy standard 13.6 and total capital adequacy standard 18.2%. Primary drivers of our UN growth are more loans included at 47% and micro finance loans included 49% year on year. On the other hand, construction and real estate finance and capital market finance declined on your annual basis. In home loans, our focus remains primarily on small ticket loans with salary and self employed sections. The fastest growing segment in home loans is the affordable home loan segment for overall loans with average ticket size over the 14 lakhs. Iper loan finance has been a significant here in the program, ma'am. See, it has approved benefits to 38,300 customers. And reverse subsidiaries of nearly rupees 900 crores. Another strong characteristic of our loan book is the large proportion of loans that are compliant with RPI PSL loans, about 63% of our home loans or 68% of business loans and 91% of micro finance loans or PSL compliance. In aggregate, nearly 43% of our loans are PSL compliant. The large share of retail and POC compliant loans are of significant value in the current environment where we can sell down these loans today's long term resources. Average cost of borrowings at 9.4 percent for the quarter remained flat Q on Q and for the year, those are approximately 40 basis points. We added 430 new branches during the year, taking the total to 2377 branches. So Consolidated gross NPLs and net NPLs recognized as per RBS potential loans and provisioned as per TCL network described in India's stood at 2.31% and 0.97% as of 31st March. This was against 1.96 percent and 0.63% as of 31st March 2019. Provision coverage, including standard assets provision under India pounds on stage 3 assets was 128 percent for the quarter. Coverage excluding the additional provision made for COVID impacts to standard 88%. Return on assets for the year was 2.2% and ROE was 16.9%, excluding impact of one off items. A brief update on liquidity. Access long term funding has, sorry, we raised rupees 1169 crores term loans, and refinance from banks. During the quarter, we also raised $400,000,000 or rupees 2855 crores through our maiden medium term note issued. We continue to have no exposure to commercial paper. Our funding mix is well diversified including 28% from NCVs. It includes subordinated debt and NPM issue, 35% from bank, term loans, refinance, and LHP refinance, and for working capital finance, and 33% from securitization and assignments. We completed securitization and assignment transactions amounting to rupees 2308 crores and quarter 4 compared to 2382 crores in quarter 3, 3721 crores in quarter 2 and 4595 crores in quarter 1. We hold down both PSL and 1 PSL loans in 5 product categories including home loan, lab, SME code and microfinance to public sector, Trivex, and foreign banks during the year. A brief update of COVID impact As of 25th, May, 58 percent of our consular consolidated book was under moratorium. An additional provision of rupees 200 and 82 crores was made based on increasing probability of default by 20 to 25 percent depending on the product for all retail products. For wholesale products, we have increased BD and HDV across all customers based on a detailed case by case analysis. As lockdown start to lift, and as in the RBN government measures start reaching end customers, we expect things to start improving. Brief update on digital. We have continued our focus on digitization in encompassing every aspect of the customer loan journey. During the quarter, we launched 1 click digital personal loans to help customers with a good track record with their short term funding needs. We are also offering our existing home and gold loan customer's top up loans through an end to end digital process. I Loan's app has been increasingly used for various transactions by customers and has been especially beneficial during the lockdown, giving customers ease and convenience of access. We have about 150,000 average monthly active users on the app and have maintained ratings of 4 plus on Android and iOS app stores. Analytics, analytics, we continue to drive the use of credit decisioning engine, artificial intelligence, and machine learning through behavioral collection and fraud profiles. This is continued focus on cross sell and win back. Which are analytically driven gold loans, win backs, generating strong volume for both gold business as well as blue pie products. During the quarter, we also increased our efforts to on campaigns related to promoting digital collections and digital endorsements. That brings an end to the update. We'll now open the floor for question and answers. Thank you very much. We will now begin with the question and answer session. Metric star and one on the back phone telephone. Participants are requested to use handsets for asking questions. Also before we begin, we like to inform participants that in all of the management tables that get questions from all participants in the conference. Please limit your questions to 3 for participants. Ladies and gentlemen, we will wait for a moment while the The first question is from the line of Prashish Shah from Capital Capital. Please go ahead. Hi. Could you provide on, how you how you reached the best COVID provisions opportunity to close? And some stress testing that you would have done for your, for the business segment apart from the interstate. So, when we when we did our COVID provision, we did a detailed analysis of our retail portfolio. So in the in the retail portfolio, we increased our PDs by about 20 to 25%. And when we when we looked at our wholesale portfolio, we did a case by case to analysis. And there, again, the CDs and HDDs were increased, to give it back to, the amount of stress in which could slightly rise to the quality. And and and what about your, your business loan? The small business loans? So within the small business loans, we'll increase the period by, 25% for the, unsecured rate. To factor in perhaps increased, in our future for regulatory purposes. Okay. And could you also Some of the, I mean, what's the center of your business loans or microcinance would be in the essential services And then could you give us some some idea of what kind of loan we have given in the business loans and on micro payments? So these loans are pretty granular. So these are mostly sub 15 lakh loan. And these are, also covered under the CG payment, CGP Energy scheme from Sydney. And the yields are close to about 19 to 20%. Overall, the book comprises 2 thirds of loan against property and 1 third against the business loan. Your second part of the question was on the microfinance. That's largely for income generation activity for the creditor groups combining of the mail. Okay. Okay. Alright. And and I have a question on liquidity front. So on your slide number 3, you have said that you have Bank with the balance of 1900 crores and undrawn credit lines of 45100 crores. Yeah. So, the 35100 closed, you know, 31st March. That slide explains that. And the 2200 crores in flight number, 29. Okay. Okay. Alright. Okay. So they send me just a timeline. Timeline is different. Yeah. That one. And also, 25th May and number for today. With Risavanyan for further questions. Thank you. Thank you very much. The next question is from the line of Marun Adalar from Bank of America. Please go ahead. Hi. Thanks a lot for for your time on this call. Again, I wanted to take it back to slide 29. Can you please run us, through to the various potential scenarios in it in this with respect to both, both the the MS insurance and the bank how do you see this standing out? And in addition, to this, would also be useful to get some scenarios from you on the asset side. So I'm basically looking at your net funding situation. And, how do you see that panning out given, the the moratorium which is there in the book? Again, nobody has full visibility on vendor lockdowns, etcetera. And but what are you seeing and how are you sort of looking at it? Thank you. So there will be a lot of uncertainty about where MDSB has been involved with him or not. So the HDFC has a representative to augment as well as RTI several representative that happened because it becomes very unfair that, until I make the dragon announcements from the dollar not can take more to him, but and VSPs do get more payments from their principal lender at night. But most of the nights now, I think have, looking at North Koreans. Some of the banks are, you know, in the process. So what we've done is the charges that we have we have separated the gold which are due to banks and when I say a 5 year distribution like LSV, who will also follow from the same pattern. And then, there are rules, the repairs, and we can find an insurance, companies that are bought and they give you the public issue, to public. The bottom blue chart is something where we can't see any monetary opportunity, but the upper part is basically a load. It's a beautiful bag of where I think most likely scenario is always that the mortuary will be, given. So if you look at it for July, for instance, we have 2.86 calls due to the mutual fund insurance company. And we have 1271. So maybe 27,000,000 minus 36 is what is due to that, it's, that is where we are like to get more serious. So you get through the debit fee, get a more to them from the bank, then our liquidity will be on December 20. If you don't get any more experience, it might be up to September 10 or whatever we have or anything in between. So details are just how to start it. But, obviously, this assumes, 0 inflows from the asset side. Right? Okay. I and also we are operating cost for running the business. But then, you know, with the year, but, you know, we also have a joint concern. So we are also continue to do some new roles But for hypothetically, if we stop discussing it, and the key only connect EMI, And your ongoing cost, sir, per month? So fixed cost is around $78. Maybe the doctor doesn't let me know. Okay. So that's very useful The other question that I had is with respect to the various schemes that the government has announced, it was starting with the TLTRO, etcetera, which which didn't really have the desired impact, and then they have announced subsequent schemes. So can you give us some sense, what could be the impact on you as an MBS fee. I'm not talking about, your eventual customers, but as you as MBS fee, how are you looking at it? Thank you. No. I think, they're all negative schemes and, we are doing this year. It will be very difficult. You know, the 1, a scheme is only for AA and, lesser or not particularly So we have double a stable rate. So, you know, we obviously tend to, you know, evaluate from that. So there are a number of teams. So there's a PSCI 30,000 car would be, liquidity enhanced for NDFCs for female that might get extended. Why are they giving a female? Because we need the moratorium excellent. And then there's a 45,000 rupees of, another scheme that is partially guaranteed in a different format where Adia Park will guarantee you an only for the, pool or where you're selling 7 assets to bank, but the same year for bonds or security issued by GST. And on top of that, there will be a result for MSME, working capital loan, this will be guaranteed. So that also are existing. That was where we do an initially loan. We didn't hear them from the thing, because an additional loan, and that is, that cover loan or the last time loan is guaranteed by the woman. So the current scheme, the final guidance are coming. And then, of course, you have the the more TLTRO, what do you think to do today? And I think, when, you know, ferry and there's there's a very positive, like, the next few days or next few weeks, this is, like, I'm calling you from these, you know, from banks and some other institutions. Do you have some sort of, like, very rough ballpark numbers. I'm not tying you to any particular number, but just like you have, very nicely looks different in the chart 29 about various liabilities. Is there any sort of range you can give us on what additional sort of direct benefit you can get from this. I'm excluding the 3 lakh crore, MSME working capital guarantee scheme because that that probably goes to a miscellaneous directly. But as far as you are concerned, is there any scenarios you can give us? Thank you. Yeah. So from all these things, we can get it depends. It's not gonna be the whole bank and the process that we get. And on top of that, we also have a normal application which are, about, you know, on lending as well as, in our term lending, which is, in the normal course. So now I think our target will be greater than 5 to 6 times in the 12 to 6 weeks. And keep that kind of buffer in case, you know, I mean, there's a of a scenario that we're trying in the low workforce so that we can tell you to go your book and, you know, feel comfortable with that. Sorry. Just to understand that, what you mean is that this cash and undrawn line cushion that you have 2200 crores, you would you would hope to get it up to 5 to 6000 crores in the coming weeks. Am I am I right to, understand it? Yes. Thank you so much. Thank you. Next. Thank you. The next question is from the line of Anika Raman from HSBC Asset Management. Please go ahead. Yeah. Hi. Just a few questions here. As I saw, you said that 58% of your, customers have a moratorium. So once the moratorium is off, by when you expect that, you know, 100% will be restored, say, between August to December or this August to March. When do you expect it to be restored? Hello? I think we reach out to our customers specifically. I think they are working on liquidity, but they want some kind of opening up. So I think once you see that it is the end customer, you will see that number of customers who are available in will reduce, we've already started seen activity, which is, you know, both now, the NTP is quite low. We take more than probably after 3 months. Pretty close to normal. Microfinance will take anywhere around 3 to 5 months deducted. So my sense, I think there are two quarters from now. We should be, of 80 or percent of policy returning, on the collection side. Okay. And, you spoke or that you also have to do some kind of disbursement. So is that, like, a part of your contractual obligation for the the money which you have to disburse, or it is, like, even, like, you know, normal course of disbursements. Now given that the process will be delayed, that also would get delayed. And if we don't have too much of on this person or on this person. Right? There may be some in the real estate, but very insignificant. That'd be like, you know, your disperse which is, like, you know, you have to, like, do it, especially when it comes to construction finance per month? Uh-huh. Then with every installment that you pay for the. Okay. Okay. And, just one more. Out of this 100,115 crores, which of refinance refinance in Q4, how much would be, like, a refinance of, like, say, you know, once the existing term loans are over and you, get that substitute to the new loaner working capital refinance, and how much would be new fresh sanctions of the new bank or completely new term loan. I get your question. Are you asking how much is the newest and, how much? How much is fresh loans? Yes. Yeah. I don't have that information right now. Okay. Okay. I just want final question. What are your thoughts on securitizations? Like, you know, because you have been doing securitization in a very robust manner until Q3. So, I mean, what are your thoughts there? Because Q4, you haven't been able to do because of COVID situation and so on. So most of the sector is considered in the towards the end of the month. Unfortunately, in Q4, suddenly came this time still on the 30th March. I think now most of the banks are trying to work completely digitally and even without physical music, but I can give it a game, welcome at this. Now we are having the potential benefits that are reading sometimes sometimes we have our auditors, you know, basically audit. So sometimes we began checking a QIT file and the borrower So all these processes, they work in a normal manner, but their program because of the lockdown. Okay. Alright. Yeah. Thank you. Thank you. The next question is from the line of Silok Kumar Care from Unify Capital. Please go ahead. Yeah. Thanks for the opportunity. With respect to the home loan statement, what would be the salary and self employed, bifurcation? So, 58% of the yield is salary. 42% is right. Okay. And so in business loans, you said Is that right? Yeah. That's right. Okay. So what is the rationale for giving a a monitoring by default? Because seems to be the reason why we are seeing the higher number or higher percentage of the AM getting into a moratorium. And, have you extended this moderator in the office again by default? So we have asked the customers for opting in. So we have given them a choice. So that's the protocol we are following. And, the number we accept 8% as of May end for the next quarter, we get to know in in about 2 weeks time. Okay. And at between business loans, is the moratorium higher in the unsecured part, or is it equally distributed between secured and unsecured? Slightly higher on the unsecured part. Okay, okay. And we see that in terms of GMPA business loans has again spiked this quarter. It's just structurally, worrying you in terms of, how the asset quality has been performing over the last few quarters, business loans? So, you look at it, if there has been, even before the COVID economy was the soft post that it has been, further impact. Now given that 2 third of the book is a collateral bag which roughly runs at about 60 odd percent of MTV. And we assess cash flows on the customer by giving loan. Though it is on the, past situation. And again, the one part business is a business, only the highest margin business. So this is a business where there will be something time to come because these are loans given for generation of income. So last 2, 4 months of the year of business activity would result in some paid in this segment. But we are also watching it closely. This 3 lakh crore, which is roughly 20 of the entire outstanding, once it reaches the customer, it will help them in restarting the business, and ease the cash flow, for them because it has a staggered, repayment schedule. So we'll have to get a more sense to how things open up how much time it takes to get to normalcy. But, sir, given that we are 2 thirds of the most secure, 1 third, having higher margin, We are not unduly worried on this payment. Okay. And the entire premium of business funds will qualify for this Kror, Steve? Yeah. Got it. And, finally, one question on the transaction finance book. We see that it has increased by 2% on a sequential basis, but the understanding was that, we would actually, bring it down over the next 6 months. Should we actually expect, increase in the construction finance book going forward? No. There are some business that happened based on the where the part the pending approval amount is there, and the business was handled in the approval and with, even the progress. But I hope that the correction was impacted in last 10 days. And many of these, you know, installments become due in the last 10 days, and that is what has impacted them. But it is unlikely to rise actually with some resolution of some project getting try and a move. I could have followed, but for 7, a lockdown in the state that we understand still. On the normal standard census, we start every month. What do we yield for the gold loan book? Okay. Thank you. The next question is from the line of Johan Srivastava from Niobi Capital Markets. Please go ahead. Hi. Thank you. Some of my questions have been answered. My question is about the loan. Have we offered moratorium to our ma'am. Even the customer also paid it digitally, but he was doing that and he's getting a driver back here. So, all the, you know, then they are in the virtual here. But as the time is open, now last one week, last week, last week, I think a lot of taxes on this, almost 90% of our branches are open. Customers are coming back and hopefully, we'll moderate it. It will go down now, actually. And many customers will just, you know, pay the interest or, you know, believe the. No. My only question here is how can we offer moratorium on gold loan because moratorium is only to be extended on term loans and not on bullet loans. What is the monthly payment loan? So is that good? Uh-uh, for the RBL regulation, we can offer more than a month gold bonus. Has multiple products. It's not necessary to the customer, would have been able to repeat in a monthly installment also? And, in this case, I think I've been restriction on the. And most of our gaming customers are also small business. They basically take, a loan. I just wanted to know. No. I understand that, but go long the understanding is that it's a bullet loan. Now we are clearly mentioned that, sir, the monotoren must to be extended for a term loan. I'm not too a bulletproof. I don't think bulletproof is too exclusion of term loan. So that one can be taken in a bullet or can be paid by EMI installment. So will it come to the public terminal? Okay, sure. And, sure. And what is the look on the gold loans, to go forward in the 521, what kind of This policy gold price are holding up high end. I think I'm going to start the businesses because they impacted, but I think Google outlook is very good. So any, uh-uh, would you see a volume net growth or a value net growth? Both. Sure. Thank you. The next question is from the line of Lisinia Hu from Allianz Global Investors. Please go ahead. Hi. Thank you for the presentation. So my question is, please, similar to I mean, some of it has been answered previously on go loan. Just on the line to understand also the percentage on of AUM under Motorola for this goal loan is that can be pretty high as compared to, one of your peers who have already announced results can I understand why is there more or rather less people paying via, online ads or How how could you call me today? They mentioned that, go loans on the monitor, there's a lot. I I mean, it was a article on Google, and then they mentioned that more people are willing to pay go loans because it's, so they do other loans as well. Right? But more people are willing to pay for loans than other loans because, the LTV ratio is pretty low and confirmed that, they do not want that interest to go on as well. No. So what you're saying is right, but This is called a moratorium in the period where the branches were closed. Branches were shut. So by default, they got into moratorium. And also what happens is in market, most of the loads we collect interest on a monthly basis. So we have to put them in moratorium, and most of the customers would electronically agree for that. But as as I said that since last one, the executive started working all over the country again, and we are already seeing there's a football of customers coming back and saying chess and paying, you know, as maybe next few months, you'll see that the, monitoring percentage in Google will go down significantly. Okay. Okay. Well, my next question is regarding your cost of funding. I know you mentioned about the cost of funding at the end of March. In the last few months on this type of worsening of the COVID situation, we've also seen, you know, some onshore funds being closed. So, can can you get a sense of how it's affected cost of funding and also, in terms of the ability to access the market. So cost of funding has remained stable. In fact, it's larger than 9.4%. So when we get refinanced from LSB and insurance you, we get them in a very good way. Banks also also they've been doing. So there's a bit of, you know, the entire decision making process has been started. So most of the banks have been waiting for, you know, the clear education from government and RBA about who's gonna override the risk. So it's not that they said no, but second of the matter is that, new roles are in very slow in last 2 months. We raised some money, but not, you know, but as we speak, and what we are seeing is that, since last 2 days last 1 week on a little more than that. Most of the banks have become positive. They started looking at the proposal. They started sending queries to us. And it looks like, it appears that the next couple of weeks is a good flow of money coming as an email. Just to add to that, last quarter, 9.4 also includes the cost of funding for the NPN program, which was the higher and that is an important diversification into the main issue. So overall, as Biance constitute larger and larger funding portion, the rates would be going down, going forward. Thank you. The next question is from the line of Navej Ramazhikanth from DSC Mutual. Please go ahead. Good afternoon. Very good presentation. I also have a strategic question, in terms of origination, whether it's, Automation Institute, do you feel that you face any resistance because banks have already put in their infrastructure, and they have the political infrastructure. And so there's getting a product from another institution is something that has the internal assistance, and that's why it's not taking off. And related to that is in terms of the home loan business, is it and it's a long term loan. And and do you see that when we're not able to get to a 3 year, so he has a very best. Is it best that this business moves to to play native organizations and the banks. What? Tell again, what is home loan you're saying? It's a it's a long term mean, when you give a home loan, it's a 15 year loan or a 20 year loan. And then we, you know, typically don't get that kind of kinda emergency unless we need to answer none of its regulatory bodies. So if the business actually moves, more to take the organization advice you know, especially if you want more of hormones and keep it on the books. Okay. So let me answer both parts of your question. First is, that banks are expanding their infrastructure to give loans to SME and they can source on their own. If they could, the year and a half record, which is a hell of money for banks to have a negative carry and put it back with RBI in a remote report. Also, the short term GSEG rate has fallen below your 0% rate now, the 6 months GSEK. So the fact of the matter is that So now that we'd like to carry liquidity and earn less than their cost of funds, obviously, if they could lend. So, you know, of this this country, they land. And the last mile connectivity, number of people, like, couple like us, and there are 18,000 people. So if somebody has to replicate that kind of no more information, probably they need as many people. And even if it's 5% more or less, like you said, but we need 18,000 people to replicate what we do. You know, because I'll see you in a city and locations all in the country, obviously, you know, so the fact of the matter is that the network, whatever banks have, and this is have, and this is alone, in the system, it's 25 lakh crore, which almost like, you know, we are talking about, you know, $30,000,000,000 So and your fees as a network is very large. And, also, bank airline network, but they can't reach out to everything. And but it's not going to be willing to buy assets from NPS. You should be able to admit as they can. But imagine, they they obviously can't double or triple their mental health center overnight. And, so very well, secondly, how do you pronounce this differently? No country, no economy, no system, you can have a different day because It has to be a normal call because the country, there are different types of risk assets and everything needs to be financed. So imagine So here in the bank, that's what I'm saying. There will be a coronavirus in 700, only 2, 3, 4 entities remain. A country has because there's that can guarantee a 0,000,000,000 dollars, $5,000,000,000 economy. Also, I have that most of the customers want to qualify for this. So the 90% of borrowers, I just won't be different in terms of their credit score or whatever. Most of them still repair the roof and they need, but you say that whether it's a, so let's start from the profit borrower. Then you do want to have funds for projects and expenses, then you want to talk about MSMEs. You want to borrow for the businesses, or individuals you wanna borrow for personal needs. If you respect the triple a, that gives you some data points out of 15, 10,000 rated companies, only 1.5% are triple a. 98.5% beneficiary. Other than, I think, it will be the last decision for the company. No. I no. So I won't deliver this point. What you're saying is logical in the sense that, you know, if you could even pay off of a of a bank in in terms of its NDC loan. So it's really nice to hear that. Oh, sorry. In terms of it, sir, as I said, it is for a private a bank or an increase. It's much lower. It's a logical progression, but somehow, you know, I hope that that's all. This is an home called what I meant was you know, this search for liquidity. I mean, it's good because we were in a situation of, you know, engaged in getting up on the quality and for the story of the moment. But, I like your current salary, which, makes it a capitalized bond. But, I know the next question in terms of the liquidity from NSE, whether, you know, like, it takes the refinancing from NSE because we take it we get it at the same rate. If there's an online placement, it's not based on the rating of the housing plan or something. That's right. So, you know, there's a Our output is pretty affordable. Some of the laws we have wanted to find out this method also based on the online portfolio. No. I I I agree. So in the sense that there will be that com that content of the cancer. In fact, in in Kelsey also, we believe that, you know, the regulators, if you immediately should be kind of going to play a bigger role than anything else. But I, you know, more or less, I'm like, I just want to hear your thoughts on that. In in terms of home loans, as well as microphone and phone, it's been a jump in glass and peels. So I wanted to ask whether, you know, is it is a very interested in salvage and downside in segment and urban and rural markets, ma'am? So I think that is the industry wide impact. 1 is that the 30 days or 60 days are deleted assets from 1st March, what classified is with many of them, and the normal circumstances will not resolve. So the concierge and I mean, this is how investors evolve. That people know that to 90 days. It's not in tears in the night sales in 80, 90 days kind of a thing. Secondly, you know, before COVID, my daughter has been a bit of a slowdown on her liquidity, consent all over. So what you're seeing is the history right to them, you know, but having said this, we plan far better than the industry, evolutions of the peers. So if you put in a Tableau format and look at the history and quality of assets to happen in the earlier days, you'll find it even much better. Like, in MSN ER, he is a vulnerable citizen, but the banking sector is around 15% from the mobile room in more than 20%. And if I look at the other ticket size of our room, it's more comfortable with it. Mudar was 4.5 packages, basically. The video side is the one I'm talking about. So, again, it's a process which is the credit and banking process and also your correction infrastructure. Then our branches, you know, your young people will go and collect one of the new checks also follow-up and your digital infrastructure in terms of how do you digitally engage customers and make sure that, connections happen your American Standards, which is one of analytics. On a micro plan. So micro plan, he increased primarily is accounted by what happened in our plan. So we, stop doing business there. We have a intake in significant about 2% for you again, but there is a there was an issue there. And, also, it's in Bangalore region in Karnataka. So those 2 impacted, this quarter. And based on most of the book is for income generation. Rural customers. So, therefore, we are fairly confident that this set of customer, all of that had very good intention to pay. And, they're they're very educated, even in the face of, flood, the cyclones, they come back in this time around the on the economic side is not too severe, in the rural area. So we are fairly confident that as I mentioned, teams can operate with customers. This segment will also recover pretty quickly. Thank you so much. That was, very useful. The last question since your COVID strategy is, kind of as kicking, putting it like a disc group and cricket, Let me ask you a question. In terms of, you know, are there common support of banks in a big deal in in one bank face problem, kettol, please don't take it according to other than your private sector banks. But in case he's another god of kind of support, is it possible that also that you know, you might look at a banking strategy going forward. So you've said that, of course, only a few banks have gotten deposits, but by and large, it seems more stable than the end of this model. No. Now the market actually. So, you know, this is better. We always do a bank, and, I'm also going to be there. We have a very new age, moving our bank. We simply find more digital, far more customer centric and, much more lighter, not only on capital, but on cost control. And, similarly, there are we can, you know, buy in a very if we if our business policy is not very close to the bank, and meet the bank, credit standard, the bank services, then the platform is going to be here for us. Perfect. Thank you very much. It was a very good presentation and good luck. The next question is from the line of. Please go ahead. Yeah. Hi. Thanks for the opportunity. Two quick questions. So, firstly, just to reconfirm, ISN Home Finance, announced 15 rupee divided in there. Yeah. So so just wanted to understand that Rashmi Allen, it was improving everything. No. Right. To the, you know, the dividend comes to the parent company, the parent company, or you're not giving the month of March. No. Right. So so my concern so I just want to understand the rationale of first, including equity into home finance business, and then taking out 35 percent of the equity the next year in dividends. So just wanted to understand the rationale. Okay. I do. I well, I I'm not really sure of the numbers that I have written because the dividend payout is around 15 to 35% as per our dividend policy, ma'am. 2 was a track record of dividends also help, you know, I mean, this is now what you're saying is a logical question, but the way it happens is that when you go to banks and you go to LIT, then you go to LSB, so in that application, there were these comments regarding years ago, they're looking at a record of a profit and dividend. Mhmm. Okay. That is us. Secondly, holding us more than 50% of our business. So in the parent company, whatever dividend they will give you or review it, so, you know, it's better that we get dividends from the subsidiary company in the proportion of profit made. Rather than, the entire building from the stand alone, which actually now is one of the business in the entire group. Right. No. So, my concern was, in a 5 18, as well as in a 5 19, we had nothing. So I sent home, I think, have we announced anything? I didn't have a fine 19 itself. I think we also I can No. It's a good observation, but as you can, I'll take 10 minutes of concern. The dividend is given by a finance method. And is there any way that can be given out of a dividend receipt from a or out of standalone profitability. But as we have seen that, the subsidiary business is like microfinance and housing finance and become larger. So we'll upstream the dividend so that we can maintain our dividends like record at the parent level to the extent of the shareholders. Okay. Thanks. And, next one, for the audi book, so what I understand is around 61% of, of our book has opted for moratorium. So just wanted to understand, I mean, what percentage of the balance, 39% will be in natural, moratorium? No. Because if you don't have a call for both of you. And, you know, so how the whole prices are unfolding. So, actually, on 31st month, we'll be not too much for more help. Yeah. So just to answer that, good time. So that continues to be good for the talent book. The next question is from the line of Hi. I just wanted to know what would be the person to get digital collections you had to cover and what is it now? So, typically, nothing I'm working in there from my country at night and, really recently. I'm proud to call it. You know, our direct line transfer from the customer. Very small part of the cash collection. We can connecting that. So 20% of Zulu is diesel and 60% is physical. But we are very, very concentrated effort to increase the 20% to a significant higher number. Okay. Thank you. The next question is from the line of Ashwin Balaji from HSBC. Please go ahead. Yeah. Hi. I just wanted to understand the difference, in my first question on the liquidity slides. There's, that two slides, which is your 2930. One of them, best repayment should be on, yeah, based on AMN. Sony, I'm just looking at the outflow, numbers in the AMN slide versus the, retail and number which I mentioned on, in the slide on the 29. So I I'm I'm not able to understand the difference between the previous flight is up to December 20. It's just about 6 to 7 months. And the airline is for 5 years and longer. Right. But, I mean, if I look at, let's say, outflow, in the next 6 months, that shows us about 63100 crore will be, in the, slide 30. And then slide 29, if I look at let's say, the number, 20, it's showing 30. So that will be that obligation. So that doesn't take care of any operational costs and other cash flows that we have. Okay. So then it is what this is there, but I think the the 5 year, most likely you take look at only the 6 month component. There is maybe more corresponding than the other client, which is at the December 30 20. Okay. But the It's only that payment. So it won't take into account dividend expenses, operating costs, and other things. Okay. This outflow which you have mentioned, does that include the, securitization also? Of yeah. That's right. So the the full liquidity slide will allow us to collect the device that we collect from the customer and give it kind of a thing. So let me Alright. And, I just want to understand, on this particular position, please, like, given the customers are opted for moratorium and let's say, I mean, particularly in some of the shops and our loans, like, goal, knowing this this exercise, I mean, like, how how does it work? I mean, because should do you have to repay the, the the bank or, the owners of the Yeah. Absolutely. No. Because when you are trying to do a sacrifice, cash flows, whatever we get from the customer, that will be nice and good. And, so there are a bit of a confusion on this in terms of how the pools will get rated or whatever. With the study because the sector is counted as early as the per view. So there are some clarifications, but as far as we are concerned, Okay. Okay. Got it. My other question was on the capital. So the overall capital adequacy has, come down to about 18% earlier this exist 20%. So, any events or staff decline in the past quarter? Yes. Now what are the kind of things that have happened? One is that the few declaration policies also got, delayed postponed. So you see a sudden increase in the year and the loan on the balance sheet. Secondly, the investment is actually has knocked off. So we can, you know, we have some room to recognize and optimize there. Whether it's, you know, the the equity debt or, you know, the guarantee is 0. So we'll be One is that with the business going to come down and the dividend payout also happens in the last quarter. And also, there's a huge So the normal surplus will get added is not so low. So all these things together are impacted the so the profitability for the you know, after for the quarterly review, because of the COVID function, and there are a dividend outflow. And, on top of that, the degradation of it got delayed. So all these things are combined for, you know, the it used to come down 18 from 2%. Okay. Got it. But it will improve, like, it will improve it between the whole, this, now, class and target It should move up as me and I think that number. Okay. But, like, I mean, why would that be? Because my for this. So you have internal approach again as a detail between March quarter, then the technical division package still persists in yeah, I will process that this really will take certain assets of balance sheet. And as I said, there's a certificate of investment also with clients that can remember the capital, you know, when you, as I said, the last part of the lecture, we were still in discussion, but we'll So the internal accrual, the synchronization, and rationalization, all these things will help us, improve the capability. But, again, just, again, on security reason, do you wanna understand, like, like, going for the, expect banks to, or, like, back to another place apart state? Interestically because, I mean, given the moratorium and, you know, while you're on the underlying, you know, I said, it seems, in terms of making payments, would there be more will there be more comfortable lending on balance sheet as compared to, in taking the, post? If you look at two things, one is that they're not able to adequately land on balance sheet. And today, they have a huge surplus liability and shortfall of assets because, you know, that's why they put So glad you wanna believe the idea is surplus, and you will say for you. The whole track record in collection critical is not so good. Particularly for the smaller loans and the entire hand in the industry. 3, this is not one who applies at one size fits all because they are tell us this is that they have a tech record and then they have comfort. I I would like to believe that this is what I need to If you look at our last APS track record of assignment and securitization, then our losses have been lower than what typically crystal or any reading agency you'll estimate, or where banks will directly estimated to get the account in the pricing. So, again, question of, it's a rolling thing. We will build support and cover the period of time in the business. So our current strategy is that rather than bring it more sector, We'll get into some alliances with the bank where we do it simultaneously as we always have loans and don't have even wait for you know, the the assets and senate. So with Alimac credit policies, processes as we are working from the bank, and we'll remain only asset will then sadly to take so that 100% of assets can be given to them. And we can, you know, hopefully, that's what we're negotiating with a few banks work out in the husband where, with a clear understanding of the time of originating itself, that this loan is to be given to that bank. Okay. That is not really happy. It's very profitable for them. She's gonna have to get Casa and cost her for delivery, though. Today, they don't have much appetite, to do wholesale profit lending. So how would they build assets when they're getting deposits? So they need retail assets. They're doing the best, but they can't go on their own much. So it's a premium proposal that way. Yeah. Thank you. I I understand that my only concern was given the current situation that, that is more appropriate to be given on these loans, I mean, given that scenario, then they might go cautious probably for, you know Yeah. I think so this is the thing that normalize me, maybe, you know, the things may not take off so quickly. And, to that extent, you know, as as, you know, work gets normal, this will actually be we can expedite this. Okay. Thank you. Thank you. Thank you. The next question is from Rana Vasini Agarwal from Ashburn Investment Management. Please go ahead. Hi. Hi, everyone. Thank you for, a very, very detailed presentation. I have three questions. One is the Tier 1 capital. I mean, I know you said in your opening remarks that, you know, right now, even if you do a very large dilution, we'll be able to raise a very small amount of taxes. So I'm assuming that raising equities out of protection, But if you do stress testing and you look at your current capital at 13.6%, I mean, you have very little room for error. So have you had conversations with your large institutions, shareholders, activity, or the others, often, probably a convertible structure or something, which might give you access to Tier 1 Capital, maybe not at the current best prices, but if need be, you might have access to it. Have you had some think about that? Yeah. So Fairfax and CDC, both, we are in negative touch with. Right. And, so, you know, that is there on my mind. But as I said that the last quarter was in production in terms of a CRM going down in this manner for the reason which I said in my response to the earlier question, but, okay, 10% of the threshold. And instead of the, we don't keep at least still of safety of 13, 13 a half percent time. So you're right that we don't have much room here, so we're very consistent with all the options that can be comfortable. It can be perpetual, but it can be, you know, managed to qualify in the vehicle, or it can be, you know, all of the options and as well as, you know, structuring your mailer that we can assign more and, reduce the capital. But, I agree with you, actually, that we are very mindful of this. So we have very carefully. Okay. And second question is the moratorium, which was a very small number as a crisis market for obvious reasons, is now growing to 58% But what was the progression? I mean, has has time has progressed and lockdown has gotten extended? Are more and more people opting for moratorium or Do you I think that's the yeah. As you know, we're getting extended. See, most of my customers, small businesses Right. So, you know, initially, they were not many customers who want to say, okay, a couple of weeks has managed it, nothing on the way. But I've got lockdown school, logged on 3, logged on 4, then the motor please. And because, you know, I'll have my social income, my accountant, you know, so I think they're forced to take this. Because, you know, the reason I'm asking this is that when you look at many of the commercial banks who also reported over the last few weeks, they've kind of given out more numbers for April and they're in the ballpark of 30% even either from 25 35% for end of April. But in the conversations we've had with them, most of them are saying that they haven't seen any increasing incidence of moratorium, principally because, you know, people don't want to incur this interest cost. And especially, you know, in the case of a bank where they may they feel that they may be treated, you know, slightly differently as compared to a well behaving loan. You've not seen that. You've seen a continuous increase in more asset requests. You see the 2 components of our businesses, Golo, and microfinance, they have printed the balance. And that's why, what is applicable for banks? They don't be applicable to us because these two businesses account for us. Almost around 35, thirty seven percent of our total portfolio. And here's the more accurate. It's not quite high. It wouldn't be Yeah. I see it's something of, microfinancing. So if you look at it, just any microfinance companies and you understand the microfinance component about. So, you know, I mean, we don't have customers like money and all the reliance or contacts or whatever. So our customers are so the microphone has the 98% gold over 80% of which it ever looks tilted. But at this open up, these are also segments which get, you know, the the bounce back fairly quickly. Okay. And last question I wanted to I got confused. Right. Right. So I'd like to draw, you know, I have a question relating to slide 34. So there are two tables there. Right, micro market prices and project mix. Now on the top table suggests that, you know, bulk of your, flow outstanding in your real estate is towards affordable projects. But if I look at the bottom table, You have 11 projects, where the micro market prices are in excess of 21,000 rupees a square foot. Which account for almost about, whatever, 1500 crores, of of principal outstanding. Which is 39%. So how the 2 people don't seem to tell you, or at least I can't understand what they need. Yeah. I I can do that. So it's the very simple in the explanation for that is that we may give on something first is on cap rate. It is one of the Mumbai. They're essentially, you know, these models on DSP kind of units and so on. So therefore, in Mumbai, everything, which is under So therefore, the qualify over there in Bombay. Alright. We do have about 2 or 3 projects with our with a, you know, we've already established something like an 80% sale. So we've got a written on the higher side, but then the supplier agreement has been sent in the Okay. And lastly, as you know, the last, people weeks with this whole migrant labor, reverse through accelerating in such a big way. Do you think the stress on your, residential projects, your electric projects will get worse? Well, I will say that there would probably be a temporary shift and why I pay that through the itself. Ultimately, the vitamin labor is coming because of want the opportunity to earn money and give us that opportunity very limited in the places where they come from. It's a question of time that they have to come back. Because, I don't want to receive the government as well. I'm a manager and all that. The amount of money we can make is, you know, a fraction of what they would get here. And also, one thing, what I see also, what is happening on the ground is, like, the other terms are providing for accommodation and labor comes with a car to give you right than that. So I see that, concluded with last thing, not more than maybe about 3 to 4 months. But you are right there for 3 to 4 months impact will be there. Okay. Okay. Can you pull the password on if if you take the password, we're gonna all escalate to that. Yeah. Thank you. Thank you and all the best. Before we take the next question, we'd like to inform participants, please limit your questions. The next question is from the line of Hal Salvador from Deutsche Bank. Please go ahead. Hi. Thanks for the call. And, again, I think a very good presentation and thanks for the transparency and being, so upfront in numbers. So appreciate that. Two questions for me. One was, can you get a sense of how many chocolate bank loans you've been able to get moratorium since the RDI direction came out. Just sort of sense would be helpful, I think. And so in the, you know, your cash and undrawn lines have declined a fair bit from 31st March to May, so I mean, just curious to get a sense, is that mainly because the bank loans were not in the moratorium when you were likely repaying the bank loans or what else, if anything, let us in the cash and underlines, in the Cuemath? Thanks. No, you're right. So the earlier model, it was not there. We have a debate. We almost ended up in 2004, we have, bank loans and boss due, till the but only very recently, like, the money that I do, last 2 years of this month, like, 2 years ago, we have started getting some confirmation of Motorola. So Motorola was a lot of it, and we did not take any charge in terms of, gating because, banks are not confirming what you have. We don't pay, and somebody can send me the report as a default, which can cause a lot of problems. Until we are already in touch with the bank. So this, you know, this clarity has emerged in only about a week ago when it came back. And the news article came that okay, and they're now agreed to be involved in the LDSCs. This is a little vague, but at least what was the circumstances in March and, you know, they have a large agreement, uh-uh, which, you know, so till about 15th May, for sure, there was no more variable there. After that, now I think, Motorola is, is not a blanket and there's a decrease, but still I think most of the banks are now considerably more curious. And, hopefully, more are almost automated hourly, and that is why we are preparing the outstanding which are likely to get motivated and not motivated both, in our debt obligations. Okay. Got it. Thank you. No. I had to add to that, a lot of the lines and cash has been used to pay off, NCDs during April and May. For which obligation is not applicable. Those are to the tune of approximately 800 crore. So those are repaid. All time during April, up to now. Okay. Makes sense. Alright. Thank you so much. So we have just to make it liquidity and just to open because the manager is so, fluid and volatile. So we thought that, like, yeah, you know, that we keep investors The next question is from the line of Ahmed from 2.2 classes. Please go ahead. Yeah. Hi. There is a announcement about the auditors intention of resignation. Can you provide a bit more color on that? Like, whether the Ultra has already resigned or this is something that will be discussed in the next board meeting. And whether it's preferable to have a change in auditor at, at this current point of time, even more uncertainties in the market, Thank you. Thanks, sir. So, in yesterday's board meeting, Deloitte has, like, given the intention to resign because they feel that of a fee that has been paid and supported by all these companies who are not administrator, and the expectations will not increase in certain percentage, but many full increase. Now while I'm learning, official document reading on this, but it looks like that most of these reports, and, you know, last year, I think I didn't put the admissions and, the credit will continue to make it a problem. So they are basically directed by their global, parent. You know, the including fees, they need for They're trying to add the risk premium into it. And, some of these reports have been involved in some of the entities, in the financial sector and we have these banks that came under, boot up a lot of stress and, you know, default and things like that. And I am feeling that they're trying to restrict or, you know, relatively balanced And therefore, downside, the package of BFSI space and, you know, balance it because I feel, all period of time, years ago, became very large component. This took us to be large component of their, audit practice. So these are circumstances under ideal circumstances. You're gonna have done this. But now we are currently trying to put a lot of pressure on continuing cost optimization, cost containment, 7000 cuts including me and all senior people have taken it. We don't want to have something which is, how do you find this, you know, the increase in the fee? Which will be, like, very exhaustive. So we've never seen it with the vehicle. Let me see what we've done, but it looks like that, you know, the the the expectations are great to high, you know, they're not probably, we can, regularly meet. So the board will, take it up and, on 5th, we will call for the meeting. When we look at all the proposals, everything, and then, but, you know, the the this last year's balance sheet, everything, that's already downloaded with the signing within the completion and no more confusion and no doubt about that. So even if you pass it, it'll be really amicable. And, you know, we can reengage it. The second step will be for the time being. It looks like that the fees are not eligible. Okay. Thank you very much. But this is a call that Thank you. Thank you. Next question is from Aman Shop from G. A. Investment. Please go ahead. Okay. Thanks for your disclosures. So I have one question on, accelerating some previous participant's question on when you compare to, a South based PR, the goal loan is, like, some 90% of the customers are opted not to take moratorium while you're between, like, 90% have opted for moratorium. So what the numbers look at when you explain, ma'am, is it able to actually explain, what would be the reason for this? So once I hear you, you know, I'm just gonna explain what it is in the computer. So Sorry. Our understanding is, sorry, every goal and we'll see, run different key in terms of, you know, attracting customers. So, one of the popular screens, which, a lot of other, NPSPs ramping around We did keep it essentially in that you have a you have a voluntary payment and, it's towards, you know, perhaps a 11 month or a 12 month tenure. And then as someone starts paying earlier, you can do a restarting the rebates on the road. So, essentially, those are things that were eventually, No. Customer repayment is an elongated one. They shouldn't have come. So that's why I perhaps tomorrow, but I'm looking at the low. Most of our portfolios under monthly repayment schemes. So you know, based on that, you see a larger number of customer and different branches also on the lockdown until about a couple of weeks back. You know, that's why the numbers are higher, but now I've branches are open. A lot more customers are coming forward, to retail as you you should see this number trending downwards. So, you know, if you connect monthly, the advantages and the, disadvantages, but the advantage is all that credit discipline is maintained. Secondly, the loans become assignable because, as soon as you're gonna assign will be if you collected 3 installment for a short tenure and longer assist for a long tenure, and they will develop. And I think we're in a family of good news so, you know, in a timely, significant manner. And secondly, in case of a political issue, but obviously, unless the bullet is falling in the time period, you really don't have to do anything because we are doing a policy. So for now, yearly scheme or 2 year 15, then we don't need our data science certificate. We call you in the year. You know, Thank you. The next question is from the line of Rocky and Naya from Klein Derby. Please go ahead. Hello. Yeah. Thanks for the very informative, presentation. So just two questions. First one is, given the moratorium that you need to grant to your customers, how is impact the ALM situation because you're a positive ALM. Right? So for the next, maybe 6 months, what's the ALM situation? With the moratorium that you're granting to your customers. And the next question is, I think you bought 15,000,000 of the dollar bonds, on April. So is there a plan to increase more or to to buy more, $1 a month, halfway forward, or do you have any approvals from from RBA to to do such thing. Yeah, I think that's all for me. No. We just have a proof of RBA. So I think as to, yeah, before I hear, we really can't, you know, do any buyback mode, but particularly within the month of month. And into the monitoring of the market. In fact, we'll be so if you're getting, say, you know, money from the module of 9, then obviously, you know, the, you know, the, so if you look at the time that we're given, the years we don't get more durable than that, then I'm sorry. And then for next few months, you can take care of. I'm obviously gonna take your time and read more funds. But if the monitoring is transported from the bank, then AML is not impacted as much. Okay. So just to clarify, if you don't get moratorium from the banks, you will have basically negative, But, yeah, so that is that is different to our liquidity on the resources with you, but we're worried for that. So there is a go get more than some days. Because the thing, our office is a liquidity, you know, for next 6 months at least. Okay. Yeah. Thank you. The next question is from the line of Rajeev on the line from Google Ads Advisors. Please go ahead. Yeah. Hi. My first question is on the good loan segment. You seem to be quite bullish about it. And some of your peers who have reported, The number has also seemed to be any bullish about it. Are you seeing increased competitive intensity in that space and how is that impacting the business? Confirmation, I think, has an In terms of together, we write, you know, from testing the goal to get, like, kind of a story, security and getting the product user So, actually, we've been waiting for a bit of time. Also, the business traditionally has been done, like, a consumer business in the human marketing. So if you see, found this golden computer always, use celebrity models to create the brand awareness. I don't really notice, and we also signed up and, wrote them all in the ticket and because of. And because, like, the current business that in local area, you create the brand awareness. So it's covered. And, I think But, if you would like to believe that this is a 10 year, so we have much higher value in terms of understanding, this is a relieving body. So, you know, I it's it's complicated there, but we are not overly conservative. Got it. The second thing is, can you talk a little bit about, total amount of disbursement you would have done from end of March in sort of the May 15th where you have reported your ALM because I still have the question around, you know, how the ALM or The total cash and bank clients have come down from more than 5000 crores to 2200. So just wanna see how much of that is given by the disbursements that we have done. Yes. So we are I don't have the 2 1004 bank, knows where it is. But most It's so sorry. So how much was the Okay. So while you're taking that one more question from my side, and that is, if I look at your assignment income, the timing income seems to be it goes around 5% amount of time. Can you repeat the assignment income? The percent of I'm not getting from the percentage of assigned assets and on five person class. And I something that is sustainably? Yeah. That's quite sustainably because, like, going over our business and business and all the high operating costs and higher margin. So this is the facility. The problem is that that's what I will do. That's about a 100 crores and a crores in the last one and a half months. Yeah. Okay. One more question. Thank you. The next question is from the line of Avir Khan from Deutsche CIT Center. Go ahead. Yeah. Hi. Thank you for taking the question. My query actually starting with expecting the the loan increase that you were talking about, you mentioned that you are targeting to date around 4,005,000 crores in the next, 4 to 5 it's a 2 to 3000 crores in next 5 weeks. Do you have any sanctions which have been, like, granted, or are we still in preliminary fields in terms of everything funds? So there are various stages, actually. I will say that there are, like, So they're very serious. So the whole banking system, you have and maybe I would like to believe that this is settled on us alone, but, they were waiting for a clarity on guidance from government and among the credit guarantee risks that we can keep the servicing. This is just a very recent piece of the I think that we make sure it's received good demand on the website, but nothing much will happen last month. Got it. Then coming to the liquidity, are there any cost rationalization for the company's planning? Like, Is there any cost cutting measure or is there any branch pressure measures that the company is thinking about? Cost cutting, yes. So we have the high and we also have not reviewed a number of people or so, and more of our employees spend in Martin and sending maybe 1% or 1.5% difference. So, the the high cost people are taking a salary care. We are trying to rationalize advances, and we need the cost including travel that we are trying to come down on the marketing activity with pictures and local, uh-uh, so, you know, the salary bill has been brought on the 10th and operating costs. We're targeting bringing down the 30% credit by 30%. So as a lot of work is happening on that front also, the great opportunity to recognize cost in this kind of environment and the new revolution that I happened about how much people need to travel and how less people can work from. And what kind of productivity we can target to. I think a lot of effort is happening with cost personnel. Got it. And, the last question is actually pertaining to the assigned assets. I'm sorry. I'm not just, is there a way that I can see with respect to the previous years, how the assigned office work and how the program works. Because, that I see that there is a chat, so and the income that has been divided up. So if the assets are not repaid, then we'll have it based on the assets. Okay. So this this other understanding, the 575 crore that is being mentioned, and the 5.8. That is being mentioned. That is on the date of the 97 93700 crores that is being arranged. Actually, right. Okay. And that 500 course will, it's just a time that if you need something that 500 close also, when you come in at 5 100 close, you'll come in at the year. Absolutely right. Alright. Thank you. Thank you Okay. I'm looking at what? Can you tell me what the in terms of the bank balances, how much of them have, you know, sent to them? So you mentioned that there are 2400 crores of the cash and income lines. Are any of them gain mark? No. Okay. Got it. Thank you very much. Thank you. The next question is from Ana Prameshaveri from DNB Holdings. Please go ahead. Good afternoon, sir. Thank you for the opportunity. Can you just throw some light on the the gold loan PTC, which are not to the banks, but to the retail and, retail customers. So how is the yield over there for our company. Since you offer, some higher, buffer in terms of security as a leasing person, the motor guarantee also, I'm just trying to understand this product. No. Not a loan of insurance. It's a loan PTC. Oh. Go loan, pass through certificates and referring to. Yeah. Yeah. Tell me. Yeah. So in that, basically, how are the yields compared to the assignments that you've given to the bank? So going to receive a slightly higher But as a part of 70 to diversify, I have a different sets of investors, and the providers of money we have agreed on this. So, you know, here, we end up doing about 10%, plus, you know, maybe around that way. But the bank probably be involved in 9%. And how big is that, in the total assignment? Not too much. Will it be? Yeah. Not very significant. I mean, maybe it's not even 4, 5% also of our total incentive agreement. I don't have numbers, but not reverse. So just one question over there. Suppose this, there is some, in this specific instrument of a PTC, if there is some higher delinquencies, would that affect the rating of that pool and internal effect, would that affect the whole whole pool. Right? So it's going to be unlikely to happen because targically, delinquency will go. You already have option to option the hold and retain them also. The deposit deliveries are very few and fine with me. Thank you very much. That was the last question in queue. I would now like to have the contact back to the management team for closing comments. Thank you so much. We can email it to our investor relations manager who got assist and she'll be very happy to respond and so take care. Thanks. On behalf of IIFO Finance Limited that concludes this conference. Thank you for joining us, ladies and gentlemen. You may now disconnect your lines.

• Quarterly report
• Slides