Ladies and gentlemen, good day, and welcome to Repco Home Finance Limited Q1 FY 2027 earnings call, hosted by YES SECURITIES Limited. Please note all participants are currently in listen-only mode. There will be an opportunity for you to ask questions following the conclusion of the management's opening remarks. Please note that this conference is being recorded. I now hand the conference over to Mr. Rajiv Mehta from YES SECURITIES. Thank you, and over to you.
Yeah. Thanks, Swapnil. Good evening, everyone. Thank you for joining this Q1 FY 2027 conference call of Repco Home Finance. From the management team, we have Mr. T Karunakaran, MD and CEO; Mr. P.K. Vaidyanathan, Whole-time Director and Chief Development Officer; Mr. M. Raja, Chief Business Officer; Mr. A. Palpandi, Chief Operating Officer; Mr. Ankush Tiwari, Company Secretary and Compliance Officer; and Ms. Shanthi Srikanth, Chief Financial Officer. With this, I hand over the call to Mr. Karunakaran for the opening remarks, post which we can open the floor for Q&A.
Yeah. Thanks, Mr. Rajiv. Good evening, everyone. I would like to welcome to the earning call of our company for the quarter ended 30th June 2026. First of all, I thank you all for joining in this call. The detailed financial results and operational highlights have already been shared in the investor presentation and published earlier and also available in our website. For the benefit of attendees who have not had the opportunity to review the financials, I will brief the performance of our company before we move into Q&A sessions. Our sanctions stood at INR 938 crores as against INR 907 crore in FY 2026, and disbursements at INR 843 crores as compared to INR 829 crore in Q1 FY 2026. In the month of April, as a routine thing, we have transferred a few branch heads and second time officers.
In the month of May, we have promoted a eligible candidate to next cadre. This is a process every year we used to conduct. This year, this process affected our disbursement in June quarter. Now our people are settled in the new places of posting. Disbursement are happening as per our expectations. July disbursement and disbursement from 1st August to till date are in line with our expectations. Our AUM stands at INR 15,990 crores as end of 30th June 2026. We have seen 8.9% year-on-year growth in the AUM. What I mentioned, the INR 15,990 crores is excluding dispersed check but not realized. Almost 57% of our book is coming from Tamil Nadu. Our book is well-diversified. We have not seen significant shift or changes in salaried and non-salaried class profile of the borrower. The ratio of exposure between non-salaried and salaried segments stood at 53.5% and 46.5%, respectively.
The share of non-HL, that is, home equity loan, stood at 29%, and home loans stood at 71% as end of June 2026. In the aspect of book quality, we continue to maintain a strong focus on asset quality. As end of the June, our GNP in absolute terms stood at INR 427 crores with a GNP ratio of 2.7% compared to INR 405 crores and 2.6% in the previous quarter of the same period. On year-on-year basis, we have seen significant improvement in asset quality. In absolute terms, NPAs declined at the 485 as end of the June. Our gross NPA was 485 as end of the June. June 2025, our gross NPA stood at INR 425 crores. We have seen substantial reduction in NPA on year-on-year basis. In terms of percentage also, we have seen improvement on year-on-year basis.
Our systematic and regular follow-up would result reduction in NPA in going forward. Our NPAs and overdues in new loan book is under control. Coming to the provisions, the ECL provision, the cumulative ECL provision as on 30th June 2026 stood at INR 352 crores. Our PCR, that means Stage 3 provision to Stage 3 gross assets is about 54%. Coming to Stage 2, our Stage 2 numbers are at 7.2%. Broadly stable compared with 7% in the previous quarter and showing a significant improvement from 9.7% a year ago. In Stage 2 and as well as NPA accounts, they are recovering, but the recoveries are not sufficient to upgrade to account as a standard. We are making a substantial recovery in both the Stage 2 as well as Stage 3.
Along with the penal interest, other charges we are recovering, but the recoveries are not sufficient to upgrade to assets to next, I mean, higher category. Coming to the borrowing side, the cost of funds of the company stood at 8.3%. The borrowing mix remains at 86% from banking system and 6.2% from NHB and 4.8% from Repco Bank. Out of total borrowings, NCD contribution is about 1% and about 0.5% from CP and PTC. During the current financial year, we have received a refinance support from National Housing Bank to the extent of INR 600 crores. Out of INR 600 crores, we already availed INR 106 crores during the first week of August. Remaining amount will be utilized shortly as and when we need funds. Coming to the profitability, our net interest income increased to INR 216 crores as against INR 207 crores in last June. NIM for current quarter stood at 5.4%.
We are able to maintain a 3.4% spread for quarter ended June 2026. Our net profit stood at INR 114 crores as against INR 108 crores in the previous year. Our ROE and ROA stood at 12.7% and 2.9% respectively. We have taken various steps to reduce our cost. If you see the numbers, we have seen reduction in cost year-on-year basis as well as sequentially. Our cost to income ratio stood at about 26%. At end of June, our credit cost stood at 0.2%. During the current quarter, we have not opened any new branches. Our branch count stood at 242 branches. Out of 242 branches, about 32 satellite centers we are adding. For current financial year, we want to open another 12 to 13 branches, and the majority of the branches will be in places like AP, Telangana, and Karnataka and this side of our country.
This is our performance of our June quarter. Going forward, our priorities will be accelerate the disbursements. Our transfers and promotion exercise slightly affected our disbursements. Now our people are settled, so we will accelerate our disbursement. While growing, we want to maintain the quality in the asset. We do not want dilution or compromise in the quality of asset for the sake of growth. We will improve our operating efficiency. We want to diversify our liability side. We got INR 600 crores refinance. With that, we are negotiating with our bankers for reducing our rate of interest. This is our plan for this current quarter. Guidance. In respect of guidance, I stick on guidance of what I have given in my last conference call. That is INR 5,000 crores disbursements and 13%-14% growth in the AUM, and reducing NPA by INR 40 crores.
This is a guidance, what I have given in last conference call. We are sticking on the guidance whole year. For current quarter, we are targeting INR 1,200-INR 1,250 crores disbursements, and we set a target of bring it down June NPA to last March NPA level. That means our June NPA was about close to INR 427 crores. This number we want to brought it down to around INR 405 crores. This is the spot we want to do it in current quarter. We thank each one of you for showing interest in our company. Now I open the floor for Q&A. Over to Swapnil .
Thank you so much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may click on the raise hand icon from the participants tab on your screen. We request participants to restrict to two questions each and then return to the queue for more questions. To rejoin the queue, you may click on the raise hand icon again. We will wait for a few minutes until the question queue assembles. Ladies and gentlemen, please remain connected. We will take the first question from Gurumurthy of HNI. Please unmute your connection and go ahead. Yes, hi. Can you hear us? Gurumurthy, can you please go ahead? Would you like to try it one more time? Can you unmute your microphone once?
Yeah. I am audible now?
Yes, please.
Okay. I just wanted to know, if I check the long-term growth of Repco Home Finance, I find it disappointing because the starting rate of interest of Repco Home Finance is something like 11% for a lender. Am I right or wrong?
Sir, by lender you mean the rate that we give to our customers or?
Correct. Customers.
Sir, we start from 8.75%, and our average is at 10.5%, sir, for housing loans.
But you know what I find out across the home finance companies, some banks are giving an average rate of interest on home loans is something like 8.5% - 8.75%. And with respect to Repco Home Finance, I find it.
It's purely based on cost of funds, sir. It's purely based on cost of funds.
Agree. No, I'm not connecting the cost of funds at all.
Yes.
I am just saying that let's take, for example, if I am a customer, I come to Repco Home Finance, I may end up paying 10.75%, 11% also in certain cases. But if I go to a general home finance company, I will definitely get lower rate of interest.
Sir, the rate of interest fixed based on your income, rating, CIBIL score, and everything. So many factors are there. It depends on the customer. Sir, first of all, the rate of interest fixed on onward customers depends on the cost of borrowing of each institution.
Okay.
Banks cost of fund is entirely different. They are having a free. They are having a CASA for which they are paying around 3%, 3.5% or something like that. For our company, it is not like that. I am borrowing from the banking system.
Yeah.
I am borrowing from National Housing Bank and lending. My average cost itself is around 8.3% to 8.35%. In this scenario, lending at PSU rate, it is not at all possible for me. It is not at all viable business for the company, number one.
Okay.
Number two, my set of target customer is not like PSU set kind of target customer. PSU set of customer is entirely salary, pure salary class customer. My set of target customer is not like that. They are working in unorganized sector. They are working in the business, doing the business. They will not have a sufficient income proof to show their cash flows and the income. That kind of borrowers I am targeting, number two. Number three, the ultimate pricing is depends on the profile of the customer on risk basis. I am ascertaining the risk of the borrower based on 16, 17 parameters. Based on that, price will be fixed. This is the system what we are following. Even some of the housing finance companies, NBFCs are offering at 17%, 18%, people are going.
That is actually because I have taught economics degree in post-graduation. I find it amusing to hear this, that people are going for this. That is again, just like an unregistered money lender. One more thing I wanted to ask. If Repco Home Finance is not able to give returns to its shareholders, why is there any restriction on you to diversify your business? I'll give you an example.
If a shareholder has subscribed to IPO of Repco in 2013, and you compare the current market price, he has hardly made any money. With respect to myself, I am one of the top 100 shareholders in the company. I hold a very high quantity of shares in Repco Home Finance because I believe that Repco may also diversify into other lines of business, which I find it could not do so. It is following the same old system of taking from banking system and giving a passing it on with a margin of 2%-3%. As a customer, I am the biggest shareholder amongst individual shareholders in Repco, because I hold more than 225,000 shares.
But I find it amusing that tomorrow if I have to buy a huge house, I may not be able to take the loan from Repco as a genuine customer, but I will be going to banking system because they are flush with funds and their average rate of return is 8% - 8.5%.
Right, sir. As a policy, as a principle, I will not make any comment on our share price in the market.
Agreed. My question again remains, since your system is fixed, are you going to diversify into other lines of business?
Right now, we don't have any ideas. We are expert and we are in the field for 25 years. We know only housing finance business right now.
Okay.
We don't have expert and expertise in other business. Let's see. Let's examine. Right now, we don't have a plan to diversify our business. We want aggressive. Though we don't want diversify our business, we will be very aggressive in business disbursements going forward.
Aggressiveness at a higher rate of interest is difficult.
No.see as Mr. Raja said my initial rate is, the beginning rate is 8.75%. Yes with that rate.
Sir, as such, there is a market segment in this rate also, sir. Sir, what you are talking about is a vanilla product or what we call as a primary housing loan market, where it is at 7.5% and 8%. But there is also a market in our country for our kind of products, and many players are there in that market. We are trying to garner our own market share, increase our disbursement, and bring in more profit shares. We are working towards that, but we will be more aggressive from now on, sir. That's what we have planned also, and our plan is in place, sir.
If you look at our disbursement number for last eight, nine quarters, we have seen increasing trend now that everything is settled. We have done IT revamping. So many structural changes we have done. All the things are stabilized. Now we shifted to aggressive mode. Going forward, you can see a substantial improvement in the disbursement, as well as growth in the AUM.
Also, sir, we have an HFC license, sir. So diversification is not going to be an off-the-cuff for us because for an HFC license, we are allowed to do only housing loans or mortgage loans, if I can say that.
Of course, we people only know housing finance.
What I meant was if you are flush.
Sorry. Mr. Gurumurthy, would you like to rejoin the queue? We have other participants as well.
All right.
Sure. Please. Thank you.
Thank you.
We will take the next question now from Prithviraj Patil of Investec. Prithviraj, please unmute your microphone and go ahead.
Yeah. Hi, sir. Thanks for the opportunity. I just had one question. This quarter disbursement impacted by the check issue. So ex of that, what is the gross level disbursements that you have done? Because the sanction also seems sort of low. If you can give that bookkeeping. Yeah.
On a monthly basis, my month-end disbursement, which will be at around INR 35 crores - INR 40 crores month-on-month, would be carry forward. That is cyclical for me. Except for that, there won't be much of an operation, sir, in the numbers whatever we have reported. That's business as usual for us every month, every year. Yes.
Okay. The first quarter disbursements, they have been impacted by the check?
Yes, sir. My June month number, which is part of the first quarter, my June month number would have that operation, sir. Yes.
Okay. Thank you.
Thank you. Requesting participants to please click on the Raise Hand icon if you wish to ask a question. We will take a question from Mr. Rajiv Mehta of YES SECURITIES. Rajiv, please go ahead.
Yeah. Hi. Sir, just to have the visibility clear about the growth that you are talking that you will do, can you tell us some business numbers for June, July? Whether the momentum is back to the normal levels, what is the monthly disbursement run rate you are exhibiting in August? Because you are talking about INR 1,200 crore and INR 1,250 odd crore from straight away INR 840 crore. So can you give us more confidence about how June and July has been in terms of numbers?
Yeah, Rajiv, on the June month and July month disbursement has been on track. As whatever commitment we have given of INR 1,200 crore per month, per quarter, sorry, we are on track. First quarter as usual, every month that is a trend for us. Whether we like it or not, that's a trend for us. But this quarter is looking good. Even in the first quarter, my June month numbers has been good. My July is even better, and August, hopefully, I am looking at crossing more than whatever we have done. So my numbers are on track. And for the year, yes, we are on track for INR 5,000 crore.
So you are pretty sure that we are sitting on?
Yeah. I am pretty sure and confident that we will be in a position to achieve INR 1,200 crores disbursement.
In the quarter.
Since this is a price sensitive information, as per our own policy, I am not supposed to disclose numbers right now. But the disbursement what has happened in July and from August till date in line with our expectations, and I am sure based on that only we have arrived at INR 1,200 crores of disbursements.
Between what you did and what you missed in first quarter and now the second quarter, the momentum is pretty much very good. Have you changed any of your policy with regard to pricing, with regard to customer selection, or it is with the same policy, same pricing that you have been able to get there?
Rajiv, as you are aware, we have not made any major changes either in our policy nor in our organization setup. But in the sourcing, we have brought in more focus on sourcing channels. There is a small alignment change in our sourcing channel from DSA to otherwise and all those things. But those are very marginal. And now the focus is more, the pressure is more, the team has been set in place now. So the clock has started ticking, that is all.
In connection with interest rate, as end of the June, we are maintaining about 3.4% spread. We want to grow, want to show aggressiveness in the disbursements. Maintaining this level of spread will be really challenging. Though we have not changed the policy level changes in the pricing system. Case by case, I may need to sacrifice some portion in the part of fixing the rate of interest. So spread may slightly come down going forward.
Okay. And that is essentially from the fact that you want to be slightly aggressive on disbursement and even the cost of fund will increase.
I am not foreseeing any increase in the cost of fund because NHB sanctioned INR 600 crores refinance facility. Of course, I have undertaken INR 100 crores. With that, I will compensate whatever increase in cost of funds. The cost of funds will stay put at the present level.
Sir, I also see this elevation in your runoff of the book, right? Even in Q1, the runoff of the book is higher than Q4. Meaning that there is a significant indirect competition through BT outs. Is the reading right that the BT out would have been higher in Q1 versus Q4? If the BT out is going up, what are we doing to ensure that wherever prudent we can retain good quality customers by offering good rates or offering a top-up loan?
Yeah. We already decided. We have seen a spike in BT out in the June quarter compared with March. Yes, we decided to retain the good customer, those who are having a good track record of 24 months and a good source of income and good LTV and having a CIBIL score and all we decided to offer some good concession to retain the customer to avoid the BT outs.
Rajiv, this is the other side of my coin of being aggressive because when I am being aggressive in the market with my marketing activities, I become visible to all my competitors and they start targeting me. It happens. We are geared up and we have stepped up our retention efforts. There is a bit of sacrifice on the rate of interest for BT out also, where we are working on it.
Of course, we have also rolled out a new incentive schemes for BT outs, those who are putting efforts and convincing the borrower and retaining the customer. We have introduced new incentive schemes. Definitely, I hope it will work. Going forward, we can see a reduction in BT outs.
One thing I have to sacrifice, I have to sacrifice my spreads. Maintaining the spreads and controlling BT outs, aggressive disbursements will be difficult.
Got it.
Aggressive disbursement and controlling BT out, I need to sacrifice some portion on spread.
Understood. Yeah. I will step back and Swapnil can go back to the queue. Yeah.
Thank you, Rajiv. Requesting participants to please click on the raise hand icon if you wish to ask a question. We will wait for the question queue to assemble. Participants are requested to click on the raise hand icon. Ladies and gentlemen, please stay connected. I will take a question now from Sanjana Sivaram of DAM Capital. Sanjana, please unmute your microphone and go ahead.
Yeah. Hi. Am I audible?
Yes, please.
Yeah. Thank you for taking my question. There has been some asset quality deterioration across Stage 2, Stage 3. Is there any color you can give us on was this business as usual or is there something to call out over here? And maybe what if there was any geography specific asset quality issue?
Sure. [inaudible] do you want to take this?
As I have already told, this marginal increase in the gross NPA only because of the strike disturbed because of the transfers and the promotions. They were settled in June itself. In June, we have shown a very good figure. These price slippages are only because of these transfers and the promotions in two months, and that is also a very marginal increase. If you compare with last year, last year also first quarter, we have shown marginal increase. That will be settled down in the coming quarters. Definitely in the second quarter itself, it will bring down to March year.
In addition to that, yes, recoveries are happening in NPA accounts, recoveries are happening in Stage 2 accounts, even along with the penal interest and other charges we are collecting. But the amount what we collected from the borrower is not sufficient to upgrade to next category of asset.
Okay. Going forward, can we expect recoveries to outpace the provisions?
Yeah, recoveries will improve. Yeah, recoveries will improve. In opening remarks, I told we want to reduce our NPA by INR 40 crores for current financial year and by September end, we want to bring it down from NPA level of INR 425 crores as end of June to around INR 400 crores. That is what our target. I am sure and confident we will achieve what are the numbers right now I have given the guidance.
In addition to that, we have already bifurcated this NPA into two divisions. Number one, soft NPA, another one is chronic NPA. Soft NPA is the slippages from April 2025 to June 2026. We are monitoring those cases through separate vertical called regional vertical managers. We have allocated around 40 accounts to each RVM, sir. Total accounts we are having is around 1,000, 1,100 cases.
Around 40 to 45 accounts allocated to each RVMs. We are expecting even if we reduce at least 50%, we can easily reduce around INR 70 crores-INR 75 crores. On the other side, we are also targeting the chronic NPA also. We have strengthened our recovery agencies. We have also revised the timeline and pay structure for them. On the other side, we are vigorously taking the legal actions on the submersed. Simultaneously, we are attacking both soft NPA as well as the chronic NPA. With these steps, we are easily achieve our target of less than 2% NPA by the end of March 2027.
Okay. I have one more question. We have already seen a little bit of spread compression this year. As you do call out a little bit more further, how much do you think further this year we could see? Do you see that effect? You have been doing around ballpark of 3% ROA for a bit. Do you see the spread compression to overall affect how we see our ROA going ahead?
Yeah. See, end of June, my return on assets stood at about 11.75%, and cost of funds is about 8.31%, and we are maintaining a spread of 3.44%. Of course, we got a refinance from National Housing Bank to the extent of INR 600 crores. INR 100 crores I already availed. The refinance with what I have already availed and what I am going to avail from NHB in another two or three months, which will help me to reduce my cost of funds, number one. I am also putting a lot of pressures to existing bankers to reduce the interest rate. We will be aggressive in the growth going forward. Our BT outs in first quarter are slightly higher compared with March.
To arrest the BT out, to improve the disbursement, we need to sacrifice some portion, some basis points yield on advances. Ultimately, my spread going forward may come down by maximum of 10 basis points in next coming quarters.
Post which you are expecting it to be largely stable.
Yeah.
Okay. Any impact on the?
Sorry. Sanjana, please would you like to rejoin the queue?
Yes.
Thank you so much. We are taking the next question now from Pulavarthi Kiran of Pulavarthi Finserv LLP. Pulavarthi, please go ahead. Yes, you have unmuted. Please go ahead. We can hear you then. Do you want to try it one more time? Please unmute your microphone.
Yes. Am I audible now?
Yes, please.
Yeah, great. Sir, just in the last couple of years, you had what I can say, spent a lot of time in improving the technology, upgrading the technology, and also increasing the branch network. Also, you have hired a lot of people. If you can just take a step back and then guide us through what you have done, and then where do you stand in this transformation journey, how it could help the company for the next couple of years in terms of the growth and bringing in the consistency. That will be really helpful, sir.
Yeah. Growth. IT transformation, yes, we have carried out the entire IT transformation in two phases. All the two phases we have implemented successfully. Mobile applications we have rolled out. Really, this is helping us to improve our turnaround time in sanctioning of the loan. We have done a lot of API in last three, four months, like linking with other applications like Perfios, CERSAI and CIBIL. We have done a lot of integrations, which is helping us to improve our turnaround time, number one. Number two, the biggest structural changes what we have done is verticalization. Earlier, our branch head is responsible for all the activities from marketing, sourcing the proposal to recovering NPA, initiating SARFAESI, so many things he have to handle.
That model is okay for particular size of the book. We want to take the company to next level. We felt that verticalization or specialization is needed. We have done verticalizations. We established a separate vertical for recovery selections. Even NPA management for SARFAESI. We are having a separate vertical to take care of initiating SARFAESI. Selling of the properties. To monitor SARFAESI , we are having a separate vertical. For older NPA accounts, we put a separate vertical. To monitor new NPA accounts, which are the accounts slipped in very recent past, we have put a separate verticals. All those things really helping us for sales. Earlier, branch head is responsible for sales.
Now we are having a separate sales verticals there. We have had arrangement tie-ups with few DSAs, market leading DSAs. We have recruited DFCs. Now we are having connectors also. So this structure change is really helping us, the company, to improve the performance, which is evident from the disbursement numbers quarter on quarter. Barring June quarter on quarter our disbursements are going up. Now that settlement case is gone. Now we shifted to aggressive mode. Going forward, we will be more aggressive in the disbursement growth in the AUM. From the numbers, you can see our aggressiveness forward.
And sir, just my earlier question as well. In certain geographies you added people. Even if I look at now the AUM by state, Telangana is doing well, Tamil Nadu is probably in the double digit, but the rest of the states, there is some uneven growth. Would you like to look at the business from the geography standpoint, or you are more comfortable looking at the overall NBFC level, how the growth is coming in?
Yeah, Kiran. See, last year we took a holistic approach and across the country we were recruiting sales team. Bringing in verticalization, all those things has been done, and now we have got a consistency of number overall. But this year, we have started concentrating on non-TN states. To start with the southern non-TN states like Andhra, Telangana, Karnataka, we want to do good. Then we already have in pipe of Maharashtra, Rajasthan, Gujarat and of course MP. There also, we are putting a very strong team in place. So by this year and by the next year, we should see very considerable traction and growth in those areas also. That is what we are planning because Tamil Nadu, we know we are already there, and our numbers are good in Tamil Nadu.
But other than Tamil Nadu, we want to grow, and we are already on the track for it.
Sir, one last question from my side. How do you look at the competition at this point of time? Because we are seeing more HFCs coming in and then also we hear that there is a lot of competition on the ground. What is your take on the competition, sir?
Yeah, Kiran. See, looking at the vintage of 25 years for us, there has always been competition either in one way or the other. We have thrived with competition, and I don't think that is going to stop us going forward. Yes, competition will be there, should be there, and we will grow. Yes.
Thanks a lot, sir. This is really helpful.
Thank you.
Thank you so much, Kiran. We'll move to our next speaker. We have Nidhesh Jain of Investec. Nidhesh, please go ahead.
Am I audible?
Yeah.
Yes, Nidhesh Jain.
What is the target for disbursement for FY 2027, and what are the reasons why the disbursement growth in Q1 is flat year-over-year? We were doing quite well on disbursement last year, but Q1 is flat year-over-year. So what is the reason for that? [inaudible]
As briefed by my MD in the opening comments, our guidance for this year, FY 2027, is INR 5,000 crores. Q1, by our DNA, by our practice, has always been slow for us because we will have all promotions and transfers in April and May. So that unsettles a lot of our branches and teams. Now it has settled down. We had the same this year also. Now it has been settled down. My June figures, that is June month figures, have gone up. My July is very good. August is also showing up. This is the usual for us. We will make up whatever backlog is there in the Q1. For the year, we are confident about achieving INR 5,000 crores of disbursements.
For current quarter, yes, we set a target of doing INR 1,200 crores -INR 1,250 crores for disbursements. That is our guidance.
Nidhesh, would you have any other question?
No, that's it from my side. Thank you.
Thank you, Nidhesh. We'll wait for a few moments until the question queue assembles. We have Abhijit here, with his question from Motilal Oswal. Abhijit, please go ahead.
Yeah. Thank you. Sir, just one question. I joined in a bit late, so not sure if you already addressed this. If you have, let me know. I will look through the transcript. But a lot of housing finance companies this quarter have moved to encashment basis of accounting when it comes to disbursements and AUM growth. Have you done something similar this quarter or any plans to do that?
Sir, from last two, three quarters itself, we have moved to check handover date. That is, as per our guidelines, we start booking the interest only from the date of check handover.
Right.
We are following up the same, and we are in line with the regulation on that.
No, which is great, sir. But what I am trying to understand here is, the regulations, like you rightly said, are saying that start accruing interest income from the date of handover of check. But what we have seen of late in the last maybe one quarter to two quarters, most of the other housing finance companies have gone one step forward, and they have started booking interest incomes. They have started showing that loan as a disbursement and as part of their loan book only after the amount given to the customer gets encashed?
Yes, sir. We are always checking only after the encashment into the AUM, not just by issuing a check we won't take it into the AUM account. So we have been doing this only on encashment from the beginning.
Excuse me, just for the benefit of everyone on the call, you are saying that we account for interest income as well as we show it as a disbursement or as part of the loan book only after the check gets encashed.
Yes.
Yes. Okay.
That is our practice.
Since how long has this practice been there, that account for interest income and account for that amount as disbursement only after the check gets encashed? For how long this practice has been there?
For three to four quarters now.
All right, sir. That is all I had. Thank you so much for answering my question.
Thank you so much, Abhijit. Participants, if you wish to ask any more questions, please click on the Raise Hand icon on your participant's app. We will wait until we have any questions in the queue. Requesting participants to please click on the Raise Hand icon. It seems we do not have any more questions. I will now hand it back to Mr. Karunakaran for his closing comments. Over to you, sir.
Yeah. Thank you for all the participants for actively participating in this call. We will meet post-September results again. Thank you.
Thank you so much. Ladies and gentlemen, on behalf of Repco Home Finance Limited, this concludes today's conference call. Thank you all for joining us, and you can now click on the leave icon to exit the meeting. Thank you all for your participation.