AGM 2021

Sep 3, 2021

Dear shareholders, good afternoon and a warm welcome to you all to the 33rd Annual General Meeting of P&P Housing Finance Limited through videoconferencing or other audiovisual facility. As a reminder, for the smooth conduct of the meeting, the members will be in mute mode, and audio and video will be opened only for the pre registered speakers speak at the AGM as per the pre registration. I now hand over the proceedings to Mr. Sanjay Jain, Company Secretary of P&B Housing Finance Limited. Over to you, sir. Thank you. Welcome to all the shareholders, members of the Board, dear members, Chairman, Board of Directors, and other stakeholders and dignitaries present in the meeting. I, Sanjay Jain, company secretary of your company, welcome you all to the 33rd annual general meeting of the company convened through audio conferencing and other audio video means in accordance with the circulars issued by Ministry of Corporate Affairs NCEBI. We have the Board members, including independent directors, chairperson of audit committee, nomination and remuneration committee, stakeholder relationship committee and statutory auditors and secretarial auditors present in the meeting. Before I begin, I would introduce board members present at the meeting. Mr. CHSS Mallikarjun Rao, Chairman of the company. He is attending the AGM from New Delhi. Thank you, sir. Mr. Hrdyar Prasad, Managing Director and Chief Executive of the company. He is attending the AGM from New Delhi. Kindly greet, sir. Mr. Sunil Kaul, non executive nominee director, he is attending the AGM from Singapore. Mr. Kapil Modi, non executive nominee director. He is attending the AGM from Mumbai. Mr. Rajnish Karnataka, non executive nominee director. He is attending the AGM from New Delhi. Mr. Neeraj Madanviya, non executive director and chairman of Credit Committee of Board, he is attending the AGM from Indore. Mr. Nilesh S. Vikansi, Independent Director and Chairman of Audit Committee. He is attending the AGM from Pune. Mr. Chandrasekaran Ramakrishnan, Independent Director and Chairman of Nomination and Remuneration Committee and IT Strategy Committee, He is attending the AGM from Chennai. Mr. Sudarshan Singh, independent director, he is attending the AGM from Mumbai. Mr. Ashwini Kumar Gupta, independent director and chairman of Stakeholder Relationship Committee, he is attending the AGM from Delhi Doctor. Tejanta Mohan Waseem, Independent Director and Chairman of Corporate Social Responsibility Committee and Risk Management Committee, is attending by AGM from New Delhi. Ms. Geeta Nayar, independent director, she is attending the AGM from New York. Thank you. This is to confirm that the requisite quorum as required under the law is present at the meeting through video conferencing. Participation of members through video conferencing is reckoned for the purpose of COLUM as per the circulars issued by MCA and SAB and Section 103 of Companies at 2013. Therefore, I declare the meeting as validly convened. Members who have pre registered themselves as speaker will be allowed to speak when their names are announced and requested to speak. The audio and video mode will be open for them accordingly. Members may ask their queries during the meeting through a communication box appearing on their screen. Answers to queries will be given suitably in the last. The recorded video of the proceedings of the meeting will be available on the website of the company and NSDL. The transcript of the AGM will be uploaded on the website of the company. General instructions. The Company has sent the annual report and the notice of 33rd AGM to all the shareholders on their registered email addresses available with the company, RTA and depositories and to all other persons who are entitled for the same. The same is also available on the website of the company and stock exchanges, where the securities of the company are listed. Members may note that the facility for joining this meeting through video conference or other audiovideo means is made available for the members on a 1st come, 1st serve basis. The company has received requests from a few members to register them as speakers at the meeting. Accordingly, members who have pre registered themselves as a speaker will be allowed to speak on the announcement of the floor for questions and answers. Also, the members who have missed the opportunity to drop their request at the registered email address as given in the notice earlier or getting themselves registered now may ask their queries During the meeting, through communication box appearing on their screen, answers to the queries will be given suitably. I also draw the attention of the members to the fact that the requisite registers and all other documents as referred in the notice are available for inspection electronically. During the AGM. Members seeking to inspect such documents can also send their request to investor. Servicespnbhousing.com. May I now request Mr. CHSS Mallika Arsinghav, Chairman of the company, to take the proceedings further? Good afternoon and thank you, Mr. Ajay. Dear members, I welcome you all to the 33rd Annual General Meeting of P&B Housing Finance Limited. It is a pleasure to connect with you all, although we are meeting virtually. On behalf of the company's Board of Directors, I would like to thank you for taking time out to join us today. Dear shareholders, it gives me immense pressure to address you as the Chairman of your company and present the 33rd Annual Report and consolidated financial statements of PNB Housing Finance Limited for the financial year ended March 2021. The COVID-nineteen led pandemic which unfolded during the last quarter of financial year 'nineteen-twenty had NPS related impact on the human life as well as economies across the globe. The complete lockdown witnessed during the Q1 had a deep impact on the economy and led to steep foreign domestic output. The series of measures taken following the analog phase helped the economy recover in the second half of the year. However, the pace of recovery was impacted again by the 2nd wave, which resulted in localized restrictions in moment and in economic activities. The health care and the frontline workers have been the pillars of support during these challenging times, and we are forever grateful to them for their unconditional services. At P&P Housing, We have supported the government's initiatives to help individuals and businesses by implementing measures like moratorium, Partial Credit Guarantee Scheme 2.0, Emergency Credit Line Guarantee Scheme and also Anticipating in Special Definance Facility, targeted long term repo operations, deferment of interest of working capital facilities, among others. The RBI took decisive steps to ease the monetary policy to help the economy recover from this unprecedented shock. There have been subsequent threats in the 4 weeks to support liquidity. The RBS was more than 2,700,000 crores through open market operation purchases between February 6 December 4, 2020, targeted long term repo operations of 3 years tenure of a total amount of 1.13 lakh crore for investment in corporate bonds, commercial paper and non convertible NCDs, in addition to injection of 1,250,000 crores through long term repo operations were conducted between February March 2020. Growing opportunities for the housing finance companies While housing demand was deeply impacted during the first half of twenty twenty one, the situation improved in the second half well into the pent up demand, following interest rates and the extension of credit submittal scheme for the substantial scheme for the affordable housing segment. Post pandemic, there has been an incremental need for owning home rather than renting out. The cumulative growth In on book portfolio of HFCs for 9 months in the financial year 2021, that is up to December 'twenty versus March 'twenty stood at 2%. For the month, the second half of the year witnessed recovery in demand leading to a gradual increase in disbursements nearing the pre COVID units. The total housing credit increased from 21.1 lakh crore as on 31st March 2020 to 22.1 lakh crore As of 31 December, 20 30, the disbursements started picking up from Q2 of financial year 2021 onwards. And we were on On book housing loan portfolio of NBFCs, HFCs and banks is estimated to have reached RUB 32.1 trillion as on December 31, 2020, supported by portfolio buyout, banks continue to outpace the disbursement growth. The overall HFC credit In India, it's estimated at 11,300,000 crores as on 31st December 2020 with exposure to home loans, loan and its property, construction finance and lease rental discounting. Driven by robust demand and liquidity support from its bankers, depositors, debenture holders and National Housing Bank, The portfolio growth in the affordable segment remained higher at 8% in 9 months during the financial year 2021. Online growth of 18% in financial year 2020. With unwavering demand, the segment is expected to continue growing at a faster pace than the overall industry. The 2nd wave has slowed down the recovery for the overall economy, including the real estate sector. However, with accelerated vaccination program to inculcate the population in driving the hope for a faster turnaround with major global rating agencies and experts anticipating the double digit growth for this economy evolving with dynamic environment. While we have remained cautious during the year under review in terms of new business, we utilized this time to talk about a new strategic road map, which helped bolster our position in the industry in the coming years. We have accelerated our digital journey and embarked on contactless customer onboarding and disbursal, one of the first in our sector to do so. We have sharpened our focus around the affordable housing segment and created a dedicated product and infrastructure to help strengthen our presence. We are leveraging the power of digital and analytical tools to strengthen our processes, including recovery and risk management and to create a much stronger institution going forward. We will continue to serve our customers and help fulfilling the dreams and aspirations of owning a house for 1,000,000 of Indians, remaining steadfast. Even with the contraction in the economy in the same fiscal year, Your company has focused on business, portfolio quality, recorded a decent income, which translated into 44% year on year growth in profit after tax. This became possible due to the efforts of all the stakeholders and efforts of employees of the company who are working throughout the year in COVID cycle. Distribution strategy, technology, customer centricity and Corporate social responsibility on your company's key strengths, the company has devoted its distribution strategy around an array of products that helps to drive sustainable growth in business. The hallmark of our product bouquet is innovation, affordability and flexibility. With the changing paradigm in the housing sector, our strength lies in our efficiency to underline all categories of customers and nurture strong relationships with our business partners and stakeholders. With our retail focus on this, especially in our floating housing segment, We remain steadfast in supporting P&B's mission of housing for us. The current scenario highlights the urgent need to accelerate a sustainable business environment and P&B Housing Finance is committed and prepared to lead the change and build a healthy and progressive housing finance company. I take this opportunity to thank our fellow Board members for their unflinching support, the leadership team and strong team of employees for their effort to steer through the challenges and create a stronger P&P Housing Finance for tomorrow. I also wish to thank the Reserve Bank of India, the National Housing Finance Bank, the Securities and Exchange Board of India and the Stock Exchanges for their continued support. I have also referred to the shareholders for their co management support during thick and thin. I expect that we are building a stronger P&P Housing Finance, which will add significant value in the coming years. Thank you very much. Now I'd like to request the Managing Director and CEO to apply the shareholders regarding the performance of our company. Thank you, sir. Thank you for the message. Dear shareholders, I hope all of you are healthy and safe. The last few months have witnessed a devastating second wave of pandemic affecting India and many other countries in ways that are more severe than the first. The human cost of last few months is incalculable, and across societies there has been a deep impact. That said, things are improving rapidly with timely restrictions and widespread vaccination leading to a gradual return to normalcy. We all hope that this happens sooner than later. On behalf Of all of us at PNB Housing Finance, I would also like to pay my tribute to all healthcare professionals and frontline workers for the relentless and selfless efforts at this time in service of the nation. Naturally, such a worldwide crisis has seminal economic impact as well, with almost all economies going into decline and recoveries stated to be gradual one. The pandemic and the subsequent lockdowns also posed a new set of challenges for the entire housing finance industry, which was already struggling with liquidity constraints post the NBFC crisis of 2019. Despite these unprecedented challenges, Our people demonstrated exemplary grit and determination and countered their adversity with courage. Collectively, we ensured that the crisis brought out the best we had to offer and were able to protect our businesses During these testing times, we adapted well and responded with a calibrated strategy. Our multi pronged approach began with activating the business continuity plan. We ensured health and well-being of our employees and took steps for continuity and coordination even in a work from home scenario. As new businesses remain muted during the Q1, the teams were mobilized to engage continuously with customers, resolve their queries and address any needs and concerns. We aligned our collections and operational strategy, keeping in view the evolving cash flow situation of our customers through regular follow-up and interaction. As a result, The retail loans under moratorium accounted for only 29% of our loan book. We significantly improved our focus on collection and increased our tally and field collection efforts without inconveniencing customers. Going to the uncertainty and economic slowdown, disbursement in the Q1 was severely affected, resulting in degrowth of 43.9% compared to FY 'twenty. However, the housing sector received a fresh lease of life through timely interventions from the government and regulatory bodies through steps that benefited both developers and homebuyers. The rationalization of home loan rates for retail customers and builders created an upswing in the last two quarters of the year. This was further aided by reduction of stamp duty, registration cost, Capital gains, tax relief, etcetera, by the government, leading to a sharp increase in disbursement in the second half of the year. Increased digitization at all levels will also be a core differentiator going forward. Our sustained investment in this area, GoldFlu, as we increased digital sourcing to 22% versus 9% a year ago. We also initiated steps to automate underwriting for straight through processes. In these trying times, we launched various initiatives to keep our costs under control and reduced costs borrowing costs in line with general interest rates. Our net interest income stood at INR 2,323 crore for the year as against INR 2,308 crores in FY 'twenty. Operating profit stood at INR 2,069 crores against INR 2,062 crore in FY 'twenty. The profit after tax grew by 44% to INR 9.30 crores as against INR 6.46 crores in FY 'twenty due to cost control, efficiency and productivity improvement measures initiated by the company. Our asset quality is stressed was stressed with a gross NPA of approximately 4.4% on the loan book and approximately 3.9 percent of AUM. As a prudent measure, our total provisions as a percentage of total assets increased from 2.6% a year ago to 4.1% at the end of financial year 'twenty one. Our liquidity is supported by a prudent mix of long term and short term borrowings, and we plan to keep adequate liquidity, liquid investments and unutilized lines to meet the gaps. Cash and cash equivalents were INR6 INR69,969 as on March 31, 2021. Our leverage profile has improved with a gearing of 6.7 times as on March 31, 2021 compared to 8.6 times a year ago. Higher internal accruals and relatively lower risk rates for smaller ticket loans formed a part of our portfolio rebalancing strategy, which led to increase in our capital adequacy ratio. Our CER area is a comfortable yield over regulatory limits at 18.73% with a Tier 1 adequacy of 15.5% as on March 31, 2021 as compared to 17 point 98% and 50.18%, respectively, per year ago. We have realigned our strategy in favor of retail businesses as we have built significant expertise around self employed and salaried customer segments, while reducing our exposure in the corporate segment. Smaller ticket loans today account for 96% of our disbursements. Our Roanati loans are proving to be a niche, powered by a differentiated distribution network, underwriting capabilities and customer service. Our focus is on 3 major areas that comprise strengthening the core, digital drive and accelerated growth. This agenda consists of 7 focus areas around management, capital, risk management, cost optimization, Digital drive, retail focused lending and affordable housing segment growth that will help grow businesses, strengthen risk management, to increase profits and create value for all stakeholders. This, along with our focused approach towards affordable customer segments will be our agenda over the medium term and help the organization become stronger. The company is fast evolving as a technology led company in the housing segment. Digitization and innovation are 2 attributes that are transforming us from being just a vendor to a digital solution provider for customers. With the introduction of new age technologies such as artificial intelligence, machine learning, robotic process automation across the value chain, We are achieving improved process control and efficiency. We have leveraged technology by launching our digital acquisition platform, ACE, our flagship mobile app for contactless application and onboarding. Our customer centricity is a core differentiator and essential to the diverse home and non home loan products portfolio that we offer to our customers. Our value based approach and high governance standards enable us to put customer interest before our own. We continue to sharpen this focus through proactive upscaling initiatives for our workforce. We are leveraging advanced analytics and New Age Technologies to accelerate an organization wide digital transformation with the intent of improving our customer service and value proposition. Apart from our digital onboarding platform, technology has redefined the way our CRM works and has improved that during the year. We provide our customers with an omni channel and seamless experience through branches, customer care centers, mobile application, social media, etcetera. Our efforts are augmented using advanced analytics tools and predictive analysis analytics to forecast customer needs for better customer service. Care for the community is an integral part of our ethos and culture. During the year, our CSR activities saw us contribute INR 22.7 crores to improve the lives of INR 2.5 lakh plus beneficiaries. This contribution extended from skilling programs and for their children to investment in health care and access to formal education. As part of our efforts to facilitate inclusive growth, we work tirelessly with construction workers, an important stakeholder in our ecosystem whose well-being and growth we are committed to. Besides, We also have programs that cover water that cover water conservation, research and innovation for betterment of lives. I am delighted that our CSR, Aam Behl Foundation has commenced a long term infrastructure project for water conservation in water stressed areas of Rajasthan, which is the first of many similar initiatives. During the pandemic, we contributed our efforts to contain the spread of the virus. It included installation of medical equipment such as CT in a box at a major hospital, which helped prevent the spread of viral infection within the hospital, protecting patients and staff. We also extended assistance to leading medical institutions in support, to support their research and development in the areas of reusable PPE materials. Notwithstanding the headwinds caused by the pandemic, I feel The challenges faced by residential real estate in 2020 have, in fact, become the catalyst in providing similar to the industry for sustained growth. The importance of owning a home was underscored from a consumer standpoint and will spur demand. At the same time, the Reserve Bank of India is leading the way to recovery by holding policy rates at historically low levels to initiate a cycle of consumption led growth. The government's impetus on affordable housing and the emergency credit line guarantee scheme will continue to spur demand for home loans. The extension of the co lending model by the RBI will further help expand leverage capacities of the HFCs and create better operating metrics for the sector. We have embarked upon a transformational journey on Project Ignite with a global consulting firm to reposition business, strengthen underwriting and collections and optimize cost. The measures undertaken will increase our digital footprints, drive efficiencies, enhance productivity and augment growth to improve ROA and ROE. In the new normal characterized by rapid behavioral changes, we expect significant traction for our business and business model. Over the years, we have continuously evolved to meet the changing profile and needs of our customers, including millennials who are looking to buy homes early in life and believe in empowering customers with better options and choices. We are confident that with our strategic realignment and an experienced team, We are poised for a growth phase in the years to come. On behalf of our employees, the entire management team and the Board, I thank you for your continued and unwavering support. I'm confident that we are positioned to create significant values for all stakeholders in times to come. Thank you very much, and I request Sanjay Jain, company's secretary to further to take to proceed with the agenda. Thank you. Thank you, sir. Thank you, sir. Auditors report, since there were no qualifications, observations, or adverse comments On financial statement and matters which have any material bearing on the functioning of the company, may I, with your permission, Take the auditor's report on financial statements for FY 2021 as read. Thank you. Agenda of the meeting. As the notice is already circulated to all the members, may I, With your permission, take the notice convening the meeting as read. Now, I would like to take up the resolutions as set forth in the notice of 30 3rd Annual General Meeting notice dated August 4, 2021. There are 5 ordinary businesses listed as agenda item number 1 to 5 and 3 special businesses listed at agenda item number 6 to 8. Agenda number 1, for ordinary resolution for adoption of audited stand alone and consolidated financial statements of the company for the financial year ended March 31, 2021, together with reports of the directors and auditors thereto. Agenda number 2, for ordinary resolution, the appointment of director in place of Mr. CHSS Mallika Jhunrau, then 766-7641, who retires by rotation and being eligible offers himself for reappointment. Agenda number 3, for ordinary resolution, appointment of director in place of Mr. Sunil Kaul, then 0510-2910, who retires by rotation and being eligible offers himself a reappointment. Agenda number 4, for ordinary execution, appointment of Mrs. T. Y. Chadda and Company LLP, chartered accountants as joint statutory auditors of the company for a period of 3 years. Agenda number 5, for ordinary resolution, appointment of Mrs. Singh and Company chartered accountants as joint statutory auditors of the company for a period of 3 years. Agenda item number 6 was special resolution to authorize the board of directors to borrow Funds by issue of bonds, non convertible debentures or the face value aggregating up to INR 35,000 crores. Agenda item number 7, for ordinary resolution for approval of material related party transactions with Punjab National Bank being a related party. Agenda item number 8, for ordinary resolution for the payment of commission to independent directors and non executive, non nominee directors of the Company. Before we proceed, I would like to inform the members that In compliance with the provisions of the Companies Act 2013 and SEBI Listing Obligation and Disclosure requirements, Regulation 2015, the Company has provided the facility to pass the votes electronically. On all resolutions set forth in the notice, Members who have not cast their votes electronically and who are participating in this meeting will have an opportunity to cast their votes during the meeting through the e voting system provided by NSDL. Members can click on vote tab on the video conference Screen to avail this feature. Ear voting is active. Members may please note that there will be no voting by show of hands. The Company has appointed Doctor. S. Chandrasekaran, failing him Mr. Rupesh Agarwal, failing him Mr. Shashi Bhandiwari, partners of Mr. Chandrasekaran Associates, company Secretaries New Delhi as scrutinizer for scrutinizing the electronic voting process in a fair and transparent manner. The combined results of remote e voting and e voting at the AGM will be declared after the report of scrutinizer is received. The results declared, along with the scrutinizer's report, shall be placed on company's website, www. Pnphousing.com and on the website of NSDL, www.evoting.ns .com, and communicated to BSE Limited and National Stock Exchange of India Limited. Thank you. Before we go live with the Q and A, here are some points to be noted for your convenience. Kindly turn on your video when you are projected on the broadcast screen and proceed to ask the question. Please mention your name, folio number and the location from where you are joining. Each shareholder will have 3 minutes for their questions. Their audio and video will be opened on the announcement of their names. Over to you, sir. To avoid repetition, the Board will respond to the questions at the end once you have asked your question. You can mute and continue to watch the proceedings. I would like to welcome the members registered themselves as speakers. Thank you. Ladies and gentlemen, we will now begin the question and answer session. We will wait for a moment while we assemble our question queue. We take our first shareholder, Santosh Kumar Saraf. You may go ahead, please. Thank you. Our next shareholder is Yashpal Chopra. You may go ahead, please. Am I unmuted? Am I unmuted? Sir, I see I'm Yashwal Chopra calling from Delhi. Client ID 8257-0454. Sir, I feel it my moral duty, ethical duty just to complement and punctuate the management, Our Chairman, our MD and the financial results, both our directors, our CFO and the company secretary are getting as a grand performance of the company for a period of only 6 to 7 months. The performance was so much I can call it excellent. Yes, I compare it with that previous year because there were ongoing growth in Once at the same time, in spite of all those good numbers, Investors have been deprived of this dividend. That is a point which is pointing to us. So anyhow, That will be the financial strategy and you look at the with our finance department, so you must be knowing it better. Now second point on which I want to congratulate the Mainland is that the controversy caused by our steady On the issue, there are management laws where making all the efforts for the liquidity and Sethi was there to put the hurdles over there. And In that day, in that battle of each and question, And I know I'm very hopeful that even our inventory to win code, we are going to win because here the interest is whether the investors are invest, whether the investors are whether the liquidity for the organization. So that is the main objective. So that is why I'm very much hopeful that we are going to win. Actually, I wanted to raise the query as to what is the present status of that I know the matter of sub duties and I cannot expect the many of the people will buy in that. So that is why your query is not there. No, sir. I will just tell you, sir, that I'm very, very much hopeful that the coming times means the current performance of this year is shall be definitely far better because of 2 things. The first is There has been all round increase in the real estate business that The share market data, which is a very neutral at this time that the company says that near the state business is kicking up like anything and that means where indirectly or directly our companies will be gaining on to that. And the second thing is, when the fear of that Because now we have to follow those protocol of production, Turkey. And without the drafting, We will have a economy. We'll just be on the worst. That time of stoppage and that time of halt, that is when and So, Tyler, coming time will be definitely, definitely better. And the third point is that, at the liquidity point, we are very much sure Before I wind up, I must thank the corporate governance under Mr. Sanjay Jain and his team, Madam Bhatia And Mr. Gharav, so they all need to be they are deserved for us because they are maintaining a very, very nice relation with the shareholders. They are the bridge of solid relationship between the management and the shareholder. So that is a matter of pride. And before I wind up, I pray God to restore positivity on you all from the top to the last name in the organization so that if they are healthy, If we are positive, our company revenue will be positive and our company will give the positive results and that will be directly or indirectly Thank you. Our next shareholder is Chetan Chaddha. You may go ahead, please. Thank you, sir. Thank you for giving me the opportunity. Can you hear me, sir? Yes, sir. We can. Yes, we can hear you. Thank you, sir. Thank you, sir. Thank you. Sir, I am really happy to see you. Thank you. Our next shareholder is Aspivisanya. You may go ahead, please. Chairman, sir, directors and Sherwood, I'll take it from Bombay. Sir, welcome Mr. Hardell Pratad as MD and CEO. I hope under him, the company will scale new heights. Sir, I also welcome Mr. Niraj Vyans, Mr. Sudarshan Hain and Mr. Kapil Modi, who were appointed as directors during the year. Sir, is anyone any new director from the so called new promoters? Sir, congratulate the management on With year on year, sir, deposits as of end March were $17,129, where disbursements were only INR 10,445 crores. So what are you done with the balance? You should reduce deposit rates So deposits will reduce or else stop accepting deposits. So loan deposits are loans are 1 3rd of FY 'nineteen, so when do you expect to scale that new highs of FY 'nineteen? Sir, in gross NPS, that's 4.44%. How do you see NPS going forward considering Q1's provision is only The growth was quarter and quarter, it was INR 350 crores. Their focus is on retail. But now NPS have started increasing in retail due to pandemic and loss of jobs. Until economy does not grow, NPS So rather than fighting with SEBI and wasting time, I would recommend that you cancel the previous deal and go for a rights issue. And P&P, our parent, can renounce the rights issue in front in favor of anybody. You and me will dance to participate because earlier we were just forgotten. So thank you and all the best. Thank you. Thank you. Our next shareholder is Rakesh Kumar. You may go ahead, please. Our next shareholder is Gagan Kumar. You may go ahead, please. Good afternoon, Mr. Chairman, Board of Directors and fellow shareholders, My name is 3,000,200,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000 up to 35 lakh rupees with minimum paperwork and formalities. Although I know management next year, I hope in person in next Our next shareholder is Pradeep Sood. You may go ahead, please. Thank you, Chairman sir. Thank you very much. Chairman sir, Mr. Pradeep Sood, Our next shareholder is Raju Varma. You may go ahead, please. Hello? Thank you, sir. It's performance. Thank you so much. Thank you. Thank you very much. Thank you. Our next shareholder is Sarbjit Singh. You may go ahead, please. Hello? Can you hear my voice, sir? Yeah. Yeah. Which one is this company here? Chairman, sir, my name is Saurabhji Singh, and I'm a shareholder of your company. And my client ID is 2090517. Chairman, sir, first of all, good afternoon to you, all the Board of Directors, all the employees of P&B Housing Limited and my co fellow shareholder. Moderators smoothly conduct. Thank you, sir. Thank you. Thank you very much. Thank you. Our next shareholder is on an audio call, Bhupinder Singh. You may go ahead, please. Hello. Hello. Thank you. Our next shareholder is Vimal Jain. You may go ahead, please. Hello. Am I audible? Yes, you're ahead, Mr. Jain. You can go ahead. Okay. Very good evening, respected Chairman, all the Board of Directors and my fellow shareholders attending this e meeting. Sir, I want to tell that I have full faith in the management And I also equally congratulate the management for a good teamwork to bring down the total expenditure as compared to previous year. And I expect that this expenditure will further come down in the coming years. I have a small query that the Board has not recommended any dividend for FY 'twenty one. So in this regard, I would also like to state that with the improved And with the improved expectations in the future regarding home loans, How is our company planning to reward the shareholders? So can we expect an interim dividend in FY 'twenty 2 or something like that? Lastly, I would like to thank the Secretary Department and all the staff for making this good arrangement for the excellent meeting as well as for giving me the opportunity to put up my query. And I hope that the next time when we'll meet, we'll have a much better and good market value of our share price. Thank you. Thank you. Thank you. Our next shareholder is Manjit Singh. You may go ahead, please. Hello? Yes, sir. You are audible. Thank you. Thank you. Our next shareholder is Thank you. Thank you. Our next shareholder is Santosh Puthani. You may go ahead, please. Firstly, I would like to thank all 3 companies, Kathy Sanjay Jainji and Chandra Chandiji, leveraging and helping me in this Sprint talk. Sir, your annual quote and notice was received Number 1, mid term, long term strategy on the challenges. And how you are addressing this issue due to the impact of the pandemic situation of 2nd wave and also the clear out third way at how to help we ready to oversell for any single situation. Sir, we are asking for its launch last year to settle pending disputes. Indication up there that the scheme has been a good success. Your comments on it, Any significant buybacks, can you please your projected cushion as of the 20 July comparing to the corresponding period? Sir, under your leadership and your continuous efforts and customer centric approach and your strong and effective steps towards creating higher benchmark and wealth creation Yes. Sir, we feel that the Company Management is very confident in its approached and achieved a target to achieve systematic in its working and stronger and its commitment and both are the best Thank you. Thank you. Thank you. That was the last shareholder in queue. Over to you, sir. Thank you, sir. With this, we conclude the question session from all the shareholders. I now request the Chairman and MD and CEO of P&P Housing to address the queries raised by the members. Thank you, sir. Chairman, sir? No, these are all questions from the shareholders. I would now request to MD, Mr. So, Lalit, in response to Mr. Satosh Kumar Saraf, who had raised some issues and asked questions on the average cost of our borrowings and other things. The cost of borrowings for FY 'twenty one actually stood at 7.9%, and it actually declined by 34 basis point on y o y basis. Similarly, the cost, We expected the cost of borrowing to reduce going forward. And if you really look at it in this quarter of June, the cost of incremental cost of borrowing came down to 5.74%. This is the first time that the company was able to reduce its cost of borrowings below 7% below 6%, though it is for short term. But the company remains steadfast in its approach. It's been negotiating with all the borrowers in terms of all banks and others to reduce the interest rates as much as possible. Though the interest rates have come down significantly And our spreads, we have been able to negotiate also. However, we continue to be very, very Beat in terms of reducing our cost and we expect that we will continue to negotiate with everybody. In fact, one of the, city borrowings that we did, in actually, I think it was in June that we did, We were able to get interest rate at a rate which was very, very low and we continue to remain engaged with everybody. In terms of the vaccination, there was another question on the vaccination of employees. So almost about 95% of our employees are vaccinated at least once. And this number is actually as on about 10 days old, but the company has engaged with one of the leading hospital chains for inoculating all our employees. And we Expect that by 31st August, all employees will be inoculated. And we are now working on the second inoculation, which is very, very important from our perspective. So that when they interact, when they go out, not only are they safe, but they are also they also ensure that The numbers that they interact with, they are also safe. There was another query on the rainwater harvesting And what we are doing, the company has only one property, which has enough, you know, a multi storey building. So there, the water harvesting, the harvesting and all other things are managed by the the facilities team of that building. Otherwise, all our properties, whether the rent basis and our property owners whether they have. And as many of you would be aware, presently, I think when the approvals are given for construction of properties, rainwater harvesting is one of the most important thing that is always insisted. And therefore, we assume that these things are taken care by the property owners. I think this is very important and we also mentioned to you in my address The company is working in Rajasthan for rainwater harvesting. We remain very, very, I mean, conscious of the fact that it is important that we maintain the ecology balance and we take care of the environment. And with the same principle, in our offices, we have in most of our offices, we have removed about plastic bottles that used to be consumed. And we provide, you know, standard bottles, the water is provided, And we see to it that there are hygiene is maintained. So the plastic and other waste are minimized to whatever extent possible. There was another question on the women empowerment and on the women's percentage. It has gone down to some extent this year. However, the company had a policy of maintaining almost about 17% And going forward, we are increasing those numbers. We are slightly ahead at 17.98. But it has more to do with the COVID and other impacts where we have seen large number of women employees leaving and taking care of other things. However, as a policy, we remain very, very committed towards the diversity angle. And we will see to it that the numbers go up. In fact, one of the directors in the company, miss Gita Nayar, who's sitting here since she has joined, She has always been asking on these things that the company must do something about it. So the company is conscious about these things. On the dividend payout, there was a question that the why the company did not pay the dividend. The reason is that we were in the midst of raising capital. And on the one hand, capital was a constraint and there was this, there could have been some more time that would have been required. The board decided that we need to conserve capital, and that is one of the reasons that the dividend was not declared. However, in terms of the second query that was there for the interim dividend, I think that's a call that the board will take keeping in view What is actually the capital position? What is the profitability? And at the appropriate juncture, that decision will be taken by the Board whether these things can be done. In terms of our yield on advances is another question That was there on the yield of advances, the company has a yield of advance of 10.4. The interest rates have been falling. However, we have been able to protect to some extent, despite the fact that there have been some amount of regulatory Policy changes that have been brought in when we offer interest rates and we offer interest rates, which is lower to retain the customer, those are The changes that have been done despite that the company has been able to keep the yield on advances at 10.4 percentages. These are some of the questions that came from mister Santosh Sarav. If I missed out on something, I will if I'm not able to cover it in the next questions, I will it can be pointed out or I will what we'll do is that we will send responses. By the way, Mr. Ishpal, Chopra mentioned about non payment of dividend, which I have already covered and why we were not able to not pay. In terms of SEBI, case on preferential present status that was asked for, Many of you would be aware that post multiple hearings, SARS had pronounced a judgment on the 9th August. The sad judgment was a split verdict with the presiding officer favoring coming out in our favor while the other justice had dismissed the appeal. In view of the conflict, the presiding judge had also mentioned that there he will the registry will put up the order for appropriate action. So that was one which has which has still awaited. Meanwhile, the company has been interacting very, very closely with the promoters, other shareholders in terms of the future course of action. And meanwhile, On 31st, SEBI has gone and filed an appeal with the Supreme Court. We are Looking at it, the board is meeting to review it. And hopefully, we will have a very clear picture on what exactly needs to be done. There's also a question on the liquidity of the company. The company remains extremely liquid. We are very comfortably placed liquidity, there is enough liquidity and pipeline of borrowing to address any commitment over the 3 months at the at at at the minimum level. It's been about one and a half years that the company has maintained slightly higher liquidity because of the COVID and other other problems that are in. And during 20 of FY 'twenty one, the company has incrementally borrowed INR 29,000, primarily through various long term instruments, which is bank term loans, deposits, NHP refinance and other things. We have maintained a liquidity of almost about 6,005 crore of cash and liquid investments as on 31st March 2021 along with undrawn and sanctioned lines of over INR 3,000 crores which we have and which we can use any time. This was a query from Mr. Yashpal Chopra and Mr. So Chetan Chetan had mentioned about the preferential allotment of it. I did mention to you that, as I said, it is subcutis. The Board is going to take up this matter, And we will come out with a very clear cut view in terms of how we are going to come out, what is How we are going to address some of the queries that have been raised, the split verdict and what is the way forward for the company. It remains a fact that the company needs capital and the capital is required if in whichever way it is possible. So that is that was one query from mister Chetan. And then we had a query on the deposit, the 17,000 crores of deposits and disbursements of 10,000 crores. Actually, the disbursements and deposits have nothing to do other than the fact So the incremental deposit go towards the disbursements. So the incremental deposits were there. There was a 6% growth in the deposits last year. But only that incremental goal deposit goes towards that. Otherwise, the overall deposit that remains is part of the overall liquidity and the borrowing that the commitment and the and then the company already has a very large pool of assets which are funded through various means. So that is one thing that is there. So there's a little understanding. There's a little I would like to bring that clarification in it. In terms of the NPAs, the company has seen a little inflated NPAs. The reason was that the company had built strong skills in the self employed sector. And the self employed sector was one which was badly affected in COVID. And that's one of the reasons that the customers or the or the borrowers Oh, in that sector, definitely, we had some issues on the on the NPA. So the increase in the GNPA PIA is primarily on account of COVID-nineteen. It's a recognized fact that it is COVID-nineteen. However, we had a little higher The number is more because of the profile of our customers. If you are if you and many of you have mentioned that you have been a shareholder since, the IPO, You would know that for the same portfolio was behaving extremely favorably and normally till about 2019 And even for some extent in 2020, and it's only after and it had withstood all kinds of vagaries of changes, Whether it was GST, whether it was demonetization, whether it was ILFS crisis, the NBFC crisis, But the COVID has impacted the company significantly. I think that is there. What the company did to respond to it that adequate ECL provisions were created. Both in retail and corporate book to absorb any unexpected shock from our foreseeable future and corresponding risk trajectory. INR778 crore provision was created in FY 21 in addition to write off of around INR 83 crores, primarily towards a vintage book of 3 years in retail. So I think we are what we have done is that our resale provisions are quite adequate, and they will take care of the queries. Even if and then we have factored in that in case The, you know, the delta variant strikes India once again. Last few days, we have seen very high numbers in Kerala. And if that also happens, we have taken into account that we are little conservative in terms of the way the the provisions are built. So hopefully, going forward and the kind of data analytics that we have brought in into our collection machinery, we have seen The return of normalcy both in the collection efficiency, the tele calling efficiency, only in the last month we have increased it by 3% on the daily calling just to see to it that it doesn't go. I think those are some of the things that the company is doing to ensure Sir, the numbers remain strong. So Rajesh Kumar had actually I raised a question on the higher deposit rates or lower lower interest rates for shareholders. I think that's a suggestion that keeps on coming in many of the shareholder meetings. And that's one thing that We still think about it and see if that can be brought in. We definitely have higher interest rates for the senior citizens. As a practice, most of the financial institutions have special interest rates on the deposit for senior citizens. So that's one thing that we do. Anshina, while during campaign, we definitely look at coming out with some attractive offers, whether it is a processing fee or some interest rate, And these are usually done during the period of festivals and others. The company remains Committed towards coming out with attractive offers whenever it is possible, keeping in view the profitability. At the end of the day, many of you have recognized that the profit increased by almost 44%. So we will ensure that we do not sacrifice those things. At the end of the day, the bottom line is important. The top line is equally important for the growth story and other things to continue. So, Jagadish Kumar from Delhi, he mentioned about Unnati, for Closure and other things, loans are due and processing charges. Actually processing charges are something that we I mentioned to you that it's only one offer once Now why is that? Prosthetic charges are important because by the time a loan is sanctioned, it is significant amount of expenditure that is done on the acquisition side, underwriting side, the the disbursement and other things. There are expenses involved. And the company is not doesn't make lot of profit out of it. It's just, ensuring that the expenditures are met. In terms So the foreclosure and other things, the Reserve Bank of India has already come out in February for not charging of the foreclosure. So there are no foreclosure Charges right now. In certain categories and certain categories which are allowable by the Supreme by the Reserve Bank of India, We go ahead and do it. Hello, Pradeep. Pradeep, sir Pradeep, Sumo and Mr. Ajay Purana from Delhi. They mentioned about the good results and other things. Also about the company's secretary and team, I would like to thank you for that. We will continue to work hard. For you, we will see to it that value is created not only for shareholders but all stakeholders. And it is important The company remains strategically positioned despite all challenges so that we create value out of it which will benefit. And you already have seen that from about INR157 share price, it had shot up to almost about 400, 500 till March, April, and then it has gone up to almost 900 crores. I think that's one thing that we have done it. So I think Mr. Pradeep mentioned and also Mr. Sarabjeet mentioned about the returns and other things, so I'd like to thank Mr. Sarabjeet also on this issue. So, Vimal Jain, I think you said that there's a full faith in the management. Thank you very much. The management continues to work hard. The governance structure is strong of the company. It continues to actually take guidance from the Board of Directors who continue to guide the company in terms of the Strategy and other things on the operational part, the company remains strong with people with large experiences And they continue to handle, the functions in one of the best possible way. We also asked about the dividend, but we have covered about the dividend part. And the second question was on the how the company is planning So to reward the shareholders, I think I mentioned to you at some stage if it is if we feel that there is a or if the performance is good, We will take guidance from the board. We seek approval from the board for interim dividend and other things. So, Manjit mentioned about increasing the revenues and other things. Actually, we have a little depleting book and that's one of the reasons because of the depleting book. Our cost of funds are a little higher than banks, which I have a Casa, which is current around and Savings Bank, where the interest rates are very low and they are able to actually quote very, very low interest rate. So the attrition of the book remains a challenge for the company. Despite that, the company not only did disbursements of INR 10,000 crores last year, but this year has plans to increase it by almost about 40 to 50%. So that once the disbursements are increased, once this, attrition of the book reduces, We are very sure that the revenues and other interest and others will continue to will improve. And we remain The budget, the environment and overall conditions that are there, We hope that they become favorable and we are able to make higher disbursement. There's one more thing I would like to point out and that is That the company has, and I mentioned it in my opening remark, that we have decided that we are going to be a retail focused company With lot of emphasis on the affordable housing, I think that remains a very good sweet spot. We already have a presence Almost about INR 3,000 crores in that in that area. And we are building new business models to enter those areas which are which are going to be higher yields. And that those are some of the steps that we are going to take. In terms of bringing in productivity improvement, those are, again, some of the things that will help the company to increase its either protect the cost or increase revenues. But in a in respect of tie up with developers and other things, We had, we have tie ups with developers. We finance stores. We have limits over there up to 15% up to which we go to it. There are, we'll continue to look at good opportunities where the record is good. The delivery of the proper delivery of the housing It is on time. Those are some of the things that the company keeps on looking at it. And we will continue to look at that. There was one more question on the tie up with banks and other things. I think we have already entered into a co lending model with one of the leading banks, private sector banks in India. We are working with many other banks, both public and private sector to enter into some more co lending model. I think co lending is also in a will give us not only better interest rate for the customers, but it will also help in terms of improvement of other income and the revenues will improve. Those are some of the important things that we are doing. Last year, we had this is last financial year, we had also given some support to 1 para Olympic. There's a girl from, I think, Northeast or, I think, Uttarakhand, I that is where we had also given some Support to them, we remain committed. We do not have a very clear, you know, CSR in terms of the Support to the fore because as a housing finance company, we have always concentrated on working with builders, improving skill sets, creating economic assets and all those things. But I think this is a good suggestion, and we will discuss it with the CSR committee to see if we can come out with a CSR initiative of supporting prospective Olympic, Paralympic for a championship sportsman who can be actually supported by the company as part of the CSR. Ajay Kumar, Jain, I think thanks for the wishes. We appreciate that. We recognize that you all have stood by the company. We would like that you stand by the company. We definitely are going through a COVID time. The whole economy is suffering. We'll see to it that we come out as a much stronger company with a change in the retail strategy, With the change in the overall book that we are looking at it and the model change, I did mention to you that we have a consultants it was an international consultancy company which is working on it towards the underwriting piece, towards the sourcing acquisition piece on the cost side and the collection. And these are measures or some which will help us significantly. So Santosh Prathani was he mentioned about Strategy on challenges of COVID. I think what we have done is that, first of all, the biggest challenge was to protect We are our employees because you start, they are the first customers. So first of all, we had started this work From home, we protected our customers significantly in terms of ensuring that they do not have COVID, But when they go out to meet, they do not actually transmit them. I think that's one of them. The second one was on the, inoculation also that we did. This is on the customer on the employee front, which is very, very critical from it. In terms of our strategy for growth and other things, The company has, you know, the skill sets, which is very, very good and strong on the underwriting piece on the on the salaried And self employed. I think what we are looking at is that self employed is one where there is a possibility of improvement on the yield and other things. So the company is working on changing a little bit of mix of the business that it does. We have already exited. Well, the biggest challenge was on the NPA from the corporate side. The company has already decided to move away from the corporate funding. So we have become retail focused. And with this change in the strategy in terms of affordable where the yield is higher, I think we are going to respond to it very, very strongly. We have created a we are creating not exactly created, but we are bringing up a vertical for affordable housing. Those are some of the things that come straight away from the challenge from the government of India, which says that they want housing for all. The prime minister Sales that's a housing for all. And I think that challenge we are we are we are meeting it. So those are solved. And NPA remains a cause of concern for us. And we are looking at it very, very closely. We have brought in many changes in the collection. Some of them have immediate results, Some of them are work in progress, and we'll see to it that this NPA increases immediately pulled back. I think that's one of the most important challenge that remains at the company to ensure that we bring in capital, we ensure that the growth remains, to ensure that the profitability is strong, cost control measures are there, and overall productivity and efficiency parameters improve. I think these are some of the things that the company has been doing. So Yes. Please go ahead. So I think we have all the questions we have responded. Now I would like to take the opportunity to thank all of you who have supported us during this virtual meeting and participated in the best