Ladies and gentlemen, good day and welcome to the Indiabulls Housing Finance Q2 FY 2023 Earnings Conference Call. As a reminder, all participant lines 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 this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. From the management team, we have with us Mr. Gagan Banga; Vice Chairman, MD and CEO, Mr. Ashwini Hooda; Deputy Managing Director, Mr. Sachin Chaudhary; Chief Operating Officer, Mr. Mukesh Garg; Chief Financial Officer, Mr. Ashwin Malik; Head Treasury, Mr. Ramnath Shenoy; Head IR and Analytics, Mr. Hemal Zaveri; Head Banking, Mr. Vikesh Gandhi; Head Markets. I now hand the conference over to Mr. Gagan Banga. Thank you, and over to you, sir.
Thank you and a very good day to all of you. Welcome to the quarter 2 of fiscal 2023 earnings call. Before we get into the numbers for the quarter, I will briefly cover the update on macros. The growth trend in the real estate sector continues to be strong. As per a recent Knight Frank report, housing sales in top eight Indian cities recorded a 15% YOY growth in quarter three calendar year 2022, and a 20% growth compared to the quarterly average sales observed during the pre-pandemic times of 2019. Supply has also picked up, growing 18% YOY in quarter three calendar 2022. Units launched have also picked up.
The developers have responded well to the upswing in demand levels over the past year, launching new projects compatible with the current need of home buyers, though they continue to wonder where future capital for construction finance sector is going to come by. That's something that I will ponder upon with you during the course of this call. The commercial real estate market has started showing strong growth momentum after the pandemic. With 16.1 million sq ft getting transacted during quarter 3 fiscal 2022, it represents a 30% year-on-year growth. We also see the likes of the largest commercial real estate investors in what they call a harvesting mood rather than an investing mood.
Therefore, what one has to think of is it an opportunity for an organization such as ours, or should we continue to use this as an avenue to exit whatever loan investments we had made in the past. On the retail side, the repo rate hike has resulted in a pass on in terms of the reference rate hikes from us. That has resulted in our book spreads expanding from 2.3% at the end of the fiscal as of 2.7% a quarter ago. This is transitory but at the same point in time, it indicates our pricing power and the pricing power of NBFCs in general to be a hold on or to be able to hold on to their spreads. I will now quickly cover the headline numbers for the quarter.
The balance sheet, loan book, and AUM has stabilized as I had been promising you for the last three quarters. Now I think we've formed the base. As you may have read from our earnings update, the balance sheet has marginally grown. The AUM and loan book has stabilized. I believe in the second half of this year, we should be able to record conservatively a 10%, optimistically a 15% AUM growth. Hereon, we will track AUM growth only. I promised to you two quarters ago that we will stabilize AUM balance sheet, et c., and then start growing the AUM, which we have achieved. Hereon, the management would like to be tracked on AUM growth. The PBT and the profit after tax has been stable for many, many quarters.
While there has been serious volatility in our peers in terms of various numbers, I think over the last six to seven quarters, we have, while maintaining a picture of absolute stability, been able to manage our transformation. Which is how our retail disbursements have grown not by a small number, but 9x of what we did in H1 of fiscal last year, this year. A 9x is not a joke by any standards. We are firmly back as the third-largest housing finance company in terms of retail disbursements. That too at a for the portion that we are disbursing and holding onto our balance sheet at a 3% RoA. It's a very, very profitable business that we are doing.
In order to continue to enhance on this profitable business, there is a significant investment in people. We've added over 1,500 people this year. We've continued to reward our performing employees. I would imagine that starting fiscal 2024, we should start seeing efficiency gains and a trajectory which is back to a reducing number as far as our cost-to-income is concerned, having made the investments through fiscal 2022 and continuing through fiscal 2023. Our gearing, which makes the company a lot more safer from a debt investor perspective, is now down to 2.5 x, and as I've indicated in the past, this is about the floor that we would hit. We are at our floor. Our balance sheet has stabilized. Our AUM has stabilized.
I believe that our gearing here on will remain in the range of 2.5x-3 x. We are very, very comfortable on capital at 34%, of which tier 1 capital is 28%. RoA at a company level has increased marginally, but that is more because of the profitable increase in our retail disbursements. Though it is up all of 10 basis points, the retail disbursements are earning us as much as 300 basis points of RoA, and that is going to continue to add 10-15 basis points every quarter to our company-wide RoA.
Most importantly, our NPAs have been stable, and we've been able to manage our NPAs at both an absolute as well as at a percentage level in a very, very tight range while maintaining a very healthy provision cover, which remains at 3% of our loan book and over 2.6 x of our regulatory requirements. From a long-term strategy perspective, I think, the company has finally achieved a situation which was solved, the situation that it had created for itself back in, around 10 years ago in 2011, 2012, where it had created a serious base of transforming itself from a multi-product NBFC back in 2008, 2009, to a mortgage-focused NBFC by 2011, 2012. The same sort of a base has been created.
We have, much like in the U.S. where the securitization market is extremely streamlined, it's a more multi-marketplace approach. There are standardized loan documents. There is standardized credit appraisal process. There is a standardized servicing process. Your company has been able to achieve that. Today, we have half of the public sector banks in India buying loans from us. One particular public sector bank, a very, very large one, among the largest ones, we've just recently concluded a pilot where the entire buying process of a loan is hands-off. Neither do we nor do they have any sort of a human intervention. It's completely hands-off. Our documents are read by their systems, and then, the loans are purchased, and there's a transaction which happens where we receive funds.
That's the kind of a future which we perceive that we will continue to focus on our distribution, invest in people. As I mentioned earlier, we've invested in 1,500 people. Through the course of the year, we've invested in retention, and it's a very, very profitable business at a 3% RoA. Why banks let us do that is because of the positive credit cycle, cost cycle that we have. We go out there and invest in distribution and place our young boys and girls at various sites, which for various constraints public sector banks cannot and that distribution gets us to this profitable sort of an RoA. Our disbursements under the asset-light models, in the prime segment have been able to get to and scale up to in the first half as high as INR 4,600 crores.
As I had mentioned in the last call, our strategy for this fiscal year would continue to be in retention of our employees, which is reflected in our employee costs. We have just concluded an annual increment, which has averaged at about 16%. Our ESOPs continue to be extremely lucrative. We have repriced some of our ESOPs and made sure that there is a wealth effect coming into our employees. As we work on our retail loans, we are focusing specifically on the affordable segment.
We have already created a book of around $200 million with an average ticket size of about INR 10 lakh , which is focused on what we call Bharat, which is tier 3 sort of locations, and we continue to expand on those locations where we hope to get into a market domination position very, very soon. As we do that, I think the focus of the last four years as the IL&FS crisis worked itself out, the company chose to focus on maintaining a fortress balance sheet through the strong pillars of capital adequacy, low gearing, high liquidity and robust provisioning. All of that has paid out t hat has enabled the management to focus on operational priorities.
The operational priorities remain at unwinding the wholesale book, which is clearly getting tailwinds by the real estate upcycle and enhancing the retail book and specifically the retail disbursal cycle. As we sit today, we are even unwinding our costs on the wholesale side and focusing on building up our retail disbursal, be it branches or people t hat should all play out to us getting to about $2 billion of disbursements in fiscal 2024. Now, let's look at our gross NPAs, i f you look at slide five of the earnings update on the asset quality.
As of the end of September 2022, our gross NPAs stood at INR 2,123 crore, which in absolute value are flattish for the last four-five quarters, which translates to 2.94%, and net NPAs stand at 1.70%. Our Stage 3 provisions stand at 42% of the Stage 3 assets. Our total provisions stand at 3% of loan book, which is, as I mentioned earlier, 2.7 x of our regulatory requirements. The retail collection efficiency stands at as high as 98.8% for quarter two fiscal 2023. Very, very importantly, over the last seven quarters, I have been consistently communicating that we should be able to hold our gross NPA range at between 3%-3.5%.
Today, we at the end of the first half of fiscal 2023, we stand at 2.94%. For this year, I have communicated that we expect our credit costs to be between 100-150 basis points, w e are trending that. As I said earlier, if after this crisis and the last eight quarters, if one is to believe me, then our credit costs should come down at half of these levels next year onwards. On the liquidity side, we stand comfortable. More importantly, we continue to adopt a very conservative approach. Most of our stakeholders are aware that when it came to a large rupee redemption of a public issue bond that we had done of about $1 billion, we created proactively a reserve for that.
When it came down to paying down mutual funds, we bought back our bonds. Now when it comes to ECB lenders, today our board has approved the creation of a term deposit buffer much in line with the dollar term deposit buffer that we had created, the dollar bond term deposit buffer we had created. More importantly than this near-term payment, which comes due in fiscal 2024, even for the convertible bond due for repayment in fiscal 2024, 2025, we will proactively create a term deposit buffer over four-five quarters for the same. This is going to get triggered in the next seven-eight days as we negotiate with banks and get the best term deposit rates.
We fortunately already gotten the same cleared through our domestic bonds and banks and we are firmly in place to adopt this as a regular operating practice for our ALM management for all of our overseas borrowings, be it our external commercial borrowings as well as our convertible bond borrowings. If they are not to convert, that is time will tell, but at least as management, we will assume that they will not convert to debt and we will have to redeem them and we will create deposit buffers for them. External commercial deposit buffers will start getting created over the next seven-eight days and the FCCB buffers will follow suit. Now, moving on to the regulatory side. There has been a lot of transformation on the regulatory front.
Your company has been classified as an upper-l ayer NBFC, much in line with the large status of NBFCs that it has. We are an incubated company and we are in the process of doing the transformation. The good thing is we did a deep dive into the transformation today in our board meeting, and I am happy to report that there is no significant P&L or balance sheet impact item as a result of the transformation to the upper-l ayer. This is the provisioning or any other requirement or the capital transformation requirement which it has. There will be no P&L or capital charge that you will witness because of our transformation to the upper-l ayer NBFC.
As a stakeholder, it will be heartening for you that we will be regulated and supervised much like a bank, so we become that much more safer. Just as an indication, much like banks, now we also follow LCRs, which is liquidity coverage ratios. As against a minimum prescribed of 50% LCR, we stand at about 200% LCR. We are operating very, very conservatively even this is what RBI has prescribed for NBFCs. On the ALM side, we continue to remain positive. Now with these fixed deposit or term deposit buffers, we will be even more conservative. As we stand today, I believe that we are at a very important transformation point for the company.
The company over the course of the last four years has transformed itself from a business model perspective from a company which was looking at continuously growing its balance sheet. When we touched INR 1 trillion of balance sheet, we thought that we should be guiding the market to when we will touch INR 2 trillion. When we touched 5 x the gearing, we said that we can go as high as 7 x the gearing. The business model has completely transformed t hrough this transformation process, we had to face macro and micro headwinds. The macro headwinds in terms of a full regulatory overhaul as well as a risk off as far as our industry is concerned.
On the micro front, because we were trying to do things very differently, there were all kinds of muck which was thrown on us. The good news is that the company has been able to fairly seamlessly migrate from a near 7 x gearing to a 2.5 x gearing. Over the course of the last seven odd quarters, it has been able to stabilize across all operating parameters. We have said that we will continue to degrowth our balance sheet for some time, and very boldly we did degrowth that. A lot of our stakeholders thought that it was about access to debt capital markets. We said this is just a more conservative and a long-term, more stable way of growing the business. At some point in time, we will stabilize. Over the last three quarters, we've stabilized.
We also indicated that the business for NBFCs, especially NBFCs which lent to sectors where the borrowing is long, is not about keeping assets on balance sheet. It is about originating assets and becoming a lean and mean origination machine. I think we've managed that fairly successfully. Compared to our peers who are holding assets on their balance sheet, we are actually, for the capital that we put on our balance sheet, earning 2x of the return on assets. In absolute value terms, it will take us another 12-18 months to grow this in absolute profitability. From a RoA perspective, it is already very healthy at 3% for incremental disbursements, which has started now trickling in ters of book RoA as well.
There has been a ten basis points increase t hat 10 basis points will continue to increase at a steady pace over the next few quarters and should settle at about 200-250 basis points of RoA, which would mean that the company will settle in at around 14%-15% RoE by middle of fiscal 2024 or so. That's the goal that we've been trending towards. We don't want to be a company or a management team which is known to shock or surprise. We would like to state things upfront. We said upfront that we would like to degrowth, we degrowth. Sometimes in life when you have to transform, you have to dig deep. We dug deep. I think we're now at a stage where we can stabilize, and that is the act that we've been following. We have stabilized.
From here on you will see not a 9x type of a disbursement growth that you've seen in the last one year, but at least a 2x type of a disbursement growth for the next two years, year-over-year, which should get us to a level where we are disbursing like $300 million-$350 million of absolute retail granular loans a month. That is a very, very unique franchise where you are adding something like 20,000 customers a month, and these are very prime mortgage customers which stay with you and have a life cycle of seven-eight years, where you can sell multiple products.
On pure capital allocated basis, you make 3%, and then if you add other sources of income, you make 3%+ RoA from these borrowers, and these are prime borrowers. That's the business model that we will follow. We will continue to unwind our wholesale book. The real estate business is doing extremely well in terms of the wider industry, and that is benefiting us because the projects that we have mortgaged are selling and selling very well. On the NBFC balance sheet, we will continue to unwind. As a result, we also would tweak the team and focus more on growing the retail team, and for cost rationalization, we will see how we have to best utilize our wholesale team. Our AIF platform is also growing slowly.
It is already at about INR 3,500 crores, and it should get to about INR 5,000 crores by the end of this fiscal t hat's the other area of focus. From next year onwards, the AIF platform should start contributing to our profitability t hat's a key metric that I would like to keep for fiscal 2024. For fiscal 2023, I would just request all of you to measure our success on growing our AUM by 10% and managing to maintain our delinquencies, our Stage 2, et c.. Incidentally, our Stage 2 is down almost 30% since the start of the year and almost 50% from the end of fiscal 2021. We are trending extremely well t his is the real estate cycle. I assume that this is the numbers that come in front of me.
We should be down another 30% by the end of this fiscal year. All in all, the business is in a very, very stable position. Several of our stakeholders have continued to support us. We've brought down our leverage, given exit to several of our other stakeholders. We have covered our ECB lenders by creating this term deposit. We are committing to cover our FCCB lenders by following suit on the term deposits. This is the best foot forward that the management can put forth. I would like to end my comments with the request of your continuing support. We're open to questions now and thank you.
Thank you very much Sir. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question at this time may press star and one on their touchtone phones. If your questions are answered, you may withdraw yourself from the question queue by pressing star then two. Participants are requested to please use handsets only while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question is from the line of Abhiram Iyer from Deutsche Bank. Please go ahead.
Hi, t hank you for taking my questions. Sir, given you know the importance of AUM, could you please let us know what the number is for at the end of the September quarter? That's question one. Question two is, could you also elaborate a bit more on the higher provisioning costs that have been taken this quarter as well?
When we have a high PPOP, we will continue to take higher provisioning and make sure that we continue to be better placed than having a volatile picture.
Just one.
Unfortunately, I'm not in Bombay, I'm traveling, so I don't have the specific number. My ir team can give you the specific number in terms of provisioning. As far as AUM is concerned, we are pretty much flattish to where we were last quarter. This is despite an INR 2,000-odd crore inflow, gross inflow from our wholesale book. I expect, and then we would have disbursed another INR 600 crores-INR 700 crores on the wholesale book to get projects completed. I would like to draw your attention to some of our key projects in the city of Mumbai. A 25 South, which is one of our large exposures, which is opposite the famous temple in the Prabhadevi area. That has achieved occupancy certificate.
In the racecourse area, another large exposure which was to what is the tallest building in India, which is called Minerva. That has applied for occupancy certificate. It has achieved all the preliminary certifications required for that. I would imagine that by November the occupancy certificate would come in. All of our NCR exposures are seeing extremely robust growth. A few of our stressed loans in the southern part of India as well as the northern part of India because of steep appreciation in land prices are today actually seeing bids at under $0 .20 , where we would have imagined based on the provisions that we had created that we will actually recover $0.80-$0.90 t hat's a pretty good situation to be in.
All in all, the AUM on the wholesale side will have a little bit of a pressure at the rate where we will receive INR 2,000-odd crore a quarter back. Sorry, a quarter back. Our retail disbursements are growing rapidly, and I imagine that we should be doing about INR 4,000-odd crore of retail disbursements, plus around INR 700 crore-INR 800 crore of wholesale disbursements. All in all, AUM, as I said, should be growing at about 10%. As we speak, quarter-on-quarter it is flattish.
Got it Sir, t hank you.
Thank you very much. Our next question is from the line of Raunak Patni, Individual Investor. Please go ahead.
Yeah. Hi, good evening and thanks for giving the opportunity. Last quarter you had a return of INR 500 crore against your general reserve. Is it good to assume that this year also you will not be giving any dividends to your shareholders?
It'll be very sad if we don't give dividends because we gave dividends all of our listed history since 2005. We listed in September 2004, f rom March of 2005 onwards, aside from last year, we've given dividends. There is no reason why we should not be giving dividends. As we speak, back of envelope, I think we are technically enabled at least as of the end of half year to give dividends. That said, I don't want to be that management which gives a commitment. It shall be my endeavor to propose to the board to give dividend, but we will see. We have a tricky second half with the geopolitical situation being where it is.
With inflation being where it is, with interest rates being where they are. We've seen a very hectic credit growth in the first half. Now deposit rates are increasing, so we could even have a very, very rapid increase in input costs. Given all of that, I will not make a firm commitment. The firm commitment that I'll make today is that the retail AUM will grow, retail dispersals will grow. As far as dividend is concerned, it is clearly the management intention. Much like you, we are all shareholders, so we would love to get some dividends from the company. But the more important thing for the company is to be financially strong and regulatory compliant. Within the compliance perspective, as we speak, we should be able to give.
We will take this decision, or rather the board will take this decision towards the end of the year. It shall be my personal endeavor to make sure that shareholders get dividend this year.
Okay. Thanks S ir. Just one more question.
Sir, I'm sorry m aybe the question returns to the question queue. We have several participants waiting. Thank you. Our next question is from the line of Craig Elliott from NWI Management. Please go ahead.
Good evening, t hank you for taking my call. Congratulations on your great success completing the transformation which you nicely went through. We've been here with you the whole time. You know, and I think importantly, the base that you've set for growth is one for very high quality growth with your new business model. My question is, what do you think and when will it take the general equities market participants, those who don't know you as well as we do, we on this call do, to really appreciate what they're missing about how great this business is?
Craig, like you rightly said, NWI is one of our most incredible investors, which has held faith in the management despite all our odds. Firstly, thanks to you and the rest of the investment team at NWI for continuing to support us. I believe now that with three quarters, four quarters of stability around AUM, balance sheet, et cetera. Now that the process of degrowth has kind of stalled. Over the next quarter or so, the process of growth would take place and would accelerate. As that happens, with the limited experience and knowledge of the capital markets that I have and my interaction with investors, I believe that should be 50% of, so to say, the problem getting unraveled for equity investors.
The balance 50% is around governance perception, which is a topic which is uncomfortable. It's basically the elephant in the room, and it should be addressed squarely. The fact of the matter is that the company suffered a hell of a lot for folks who were trying to shock the company and trying to take advantage, because we were vulnerable, because we were so widely held. We've come through that, and we've come through that with fire. You know, we just in India had this festival of Diwali where, you know, we celebrate Lord Ram's return. When I was celebrating Diwali, I was thinking that this is almost like the Diwali for Indiabulls, right? We have returned, and we've returned with glory.
We were put through a test through fire, and we've come through that, t he courts have upheld us, t he various regulators have upheld us. As we speak today, we have perhaps one of the strongest boards in the country amongst financial institutions. I just come through a board meeting which lasted 3 hours to just discuss regular quarterly results. The audit committee lasted for 2.5 hours. We have a regulatory measures oversight committee, which convened on Saturday and lasted for 3 hours. Before we come in front of you with the numbers that we come in front of you, there has been 8.5 hour discussion at the board level.
That is, with people who are deputy governors and bank MDs and Supreme Court judges and audit partners and what have you. With this kind of governance and with the kind of come through that we've seen, there is, and with growth returning, I see no reason why in a quarter or two we would not start trading at par and then perhaps beyond our book value. I needed to give a growth indication to our stakeholders. I think today I am firmly in a position to give that growth indication, and there is no reason why book value and par, past book value should not get achieved over the next two to three quarters. That said, the management team is not taking any pressure, and we are being abundantly honest about this, about the market cap, et c..
We are going about our job. We want to be focusing on investing enough capital in technology and being the best-in-class as far as technology is concerned, so that by fiscal 2025, that starts reflecting in our cost-to-income. We continue to invest in our people so that through fiscal 2025, 2026, we have single-digit attrition numbers on our employees. If all of this interests the stock market, it is very good for us. If it does not, as a management team, we will still be very happy creating a massive retail franchise which is creating half a million customers or so on an annualized basis. These are the most timeless customers that you can get in India. That's the way that we are approaching this whole issue. I'm quite sure with my experience that there is no reason why the capital markets would not value us appropriately.
Thank you.
Thank you. Our next question is from the line of Keyur Ashar from PNB MetLife. Please go ahead. Mr. Ashar, your line has been unmuted. Please proceed with your question.
Yeah, t hank you for this opportunity. Sir, if you could kindly share the data on the developer loan book. You mentioned about the benign trends that we are seeing. If you could mention what is the outstanding book as of September 2022? And what is our guidance as to where would we look to see this book by the end of FY 2023?
Sir, as I said, the book is static to last quarter. I believe the AUM would be in the handle of INR 70-odd thousand crore, as was the number last quarter. As far as balance sheet is concerned, we have reported that to have also stabilized. For the guidance, we have formally guided. If you go through the earnings update, the first page itself says that we look to grow our AUM by 10-odd% in the second half of this year, and that's the AUM growth number. Hereon, we will talk only AUM growth, and I'm quite sure that we'll grow 10%, hereon.
My question was specifically regarding the developer loan book. What is our guidance for that and what is the current size of the developer loan book?
That will degrowth by about 20% in the second half of this year.
Sir, any absolute numbers you would like to quote here?
D egrowth by about INR 2,000 crore.
Understood, sir. Yeah thanks th at was my only question.
Thank you. We will take one more question from the line of Chandrashekhar, I ndividual Investor. Please go ahead.
Hi Mr. Gagan Banga, t hanks for giving me the opportunity. You know, I just would like to ask on the last commitments, right? After Mr. Sameer Gehlaut took the exit. Is that exit approved by all the authorities? Then the updates on the PIL in Delhi High Court and then the ED cases in Supreme Court as well as the NCLT cases. I can see, you know, lot of NCLT cases pending in NCLT and your earlier commitments of NSE Prime, AIF partners, name change, offering the board seats to the PE investors, and all this.
One concern actually, you know, not disclosing all this to the exchanges and we being the retail investors actually, you know, finding very hard time, you know. Because we are a very long-term investors and then our capital eroded after, you know, almost half of it actually. Could you please kindly help on this? You know, I would really appreciate that. Thanks in advance, t hank you.
Sir, I'm sorry that your capital eroded, and it's beyond my control in terms of how capital markets move. I would kind of disagree as to that we are not reporting anything to the stock exchanges. Whatever we communicate with you either here or we put it in writing in our earnings update is all uploaded on our website and on our stock exchange disclosure section. Everything is up there and we are not, like, trying to do anything which is off the record on such a formal sort of a platform. Mr. Gehlaut's, and I'll deal with each of these points, and if I leave any of them feel free to kind of say that you did not answer this. Mr. Gehlaut's stake sale happened to the world's largest financial institutions.
His stake fell down to 9.5%. We have formally approached the various relevant authorities as well as stakeholders for his de-promoterization. I would say 80%-90% of the stakeholders have approved. The balance 10%-20% should approve, fingers crossed, through the course of the next 30 days. As they approve, the de-promoterization would happen. Once that happens, we will logically move away from the Indiabulls brand and rebrand ourselves. It has to be a step-by-step thing. The Indiabulls brand has a large brand recall, and it will be a massive investment in rebranding ourselves. Before that, we have to take a step-by-step logical path to it, and we are on that path.
The most important step in that was in the context of India, where de-promoterization is a rare sort of a thing. We must salute the founder to say that, you know, the institution is more important than him and for him to have taken this initiative. I believe that he will continue to make sure that the organization and the institution, over the weeks and months to come, becomes more and more independent. He's anyways not on the board. The board is completely independent of him, and the board is led by Mr. Mundra for the last two years or so. It's well on course.
As far as the PIL is concerned, to the best of my understanding, for one reason or the other, and the legal luminaries are better placed to elaborate on this. Despite our best efforts to get the PIL listed, it does not get listed. If it does not get listed, how do we get it dismissed? The prayer of the folks who came on the PIL when they filed it against us was that someone should look into our books. They prayed someone should look into our books. What happened was that everyone looked into our books. When everyone looked into our books and filed affidavits saying that their books seem okay and there's nothing out of the ordinary in their books, they never came back. Right? After this, what else can management do?
I do not know. As far as the ED matter is concerned, we've already filed with the stock exchanges Sir, that first, the Honorable Bombay High Court quashed the underlying predicate offense, as they call it in the ED terminology, and then the Honorable Delhi High Court quashed the ED proceedings itself. As we speak, there are no proceedings against the company. Both the division benches have noted that there has been a grave abuse of law against the company, which has resulted in all stakeholders getting harmed. Your capital is harmed. My blood pressure has increased b oth of us are sufferers. Today, I'm quite sure that the management team will focus on execution and recoup your capital. Slowly, my blood pressure will also get okay.
We are, as far as that proceeding is concerned, also on a strong wicket. All in all, I think we are in a pretty good place where we are today. We have to focus on execution. We have to focus on building our retail disbursal franchise. We have to transform our wholesale business from the NBFC balance sheet to the platform. For that, we have to rightsize the organization, move people, do all of that, which is hardcore execution. Fortunately, we finally have the management bandwidth to focus on execution versus focusing on fighting these, very, very motivated battles. Having done that, there is no reason why we will not be able to excel on execution and create value for all of you.
That's where I would like to end this call, unless I've not answered someone's question which was already asked. If there are any further questions, please feel free to email them to us, and we shall certainly reply. We shall connect sometime in towards the end of January 5th with our quarter three earnings, which I hope will be as stable as the first half earnings. Thank you so much, and I look forward to speaking with you in the new year. Goodbye.
Thank you very much Sir. Ladies and gentlemen with that, we conclude this conference call. Thank you for joining us and you may now disconnect your lines.