Can Fin Homes Limited (511196) Earnings Call Transcript & Summary

Good morning, and a warm welcome to all of you to the 36th Annual General Meeting of Can Fin Homes Limited through video conferencing. [Operator Instructions] Please note that as per the requirements, the proceedings of the Annual General Meeting will be recorded and will be made available on the website of the company. Over to Ms. Veena G Kamath, Company Secretary of Can Fin Homes Limited.

Good morning, ladies and gentlemen. I welcome all the members, our Chairman, Managing Director, Deputy Managing Director and all the Board members, partners from B K Ramadhyani & Co., LLP and B Srinivasa Rao & Co, our statutory auditors, our secretarial auditor, the scrutinizer, our tax consultants, specialty invites and the key managerial personnel of the company to this 36th Annual General Meeting of Can Fin Homes Limited on this, the 19th day of July 2023, Wednesday. Our Chairman, Shri K. Satyanarayana Raju, is the Managing Director and CEO of Canara Bank. He is a nonexecutive Promoter Director on the Board of our company. He is also the Chairman of the Corporate Social Responsibility Committee of the Board. Our Chairman is participating in this meeting from the boardroom of the company. I request our Chairman, Shri K. Satyanarayana Raju to preside over the meeting.

Dear shareholders, I welcome you all to this meeting. This 36th Annual General Meeting of Can Fin Homes Limited is being held through video conferencing in accordance with the circulars and guidelines issued by the Ministry of Corporate Affairs and the Securities and Exchange Board of India. Let me introduce you to the members of the Board of your company participating in this meeting. We have with us Shri Suresh S. Iyer. He is the Managing Director and CEO of the company. He is the Chairman of Management Committee and a member of Stakeholders Relationship Committee, the Risk Management Committee, Corporate Social Responsibility Committee and IT Strategy Committee. He joined this meeting from the boardroom of the company. Shri Ajay Kumar Singh is the Deputy Managing Director of the company. He is the DGM in Canara Bank. He is a member of the Corporate Social Responsibility Committee, the Risk Management Committee, IT Strategy Committee and management committee. He is also joining from the boardroom of the company. Shri Debashish Mukherjee is the Executive Director of the Canara Bank. He is the Chairman of the Risk Management Committee, member of the Audit Committee and the Nomination Remuneration and HR Committee of the company. Due to unavoidable reasons, he could not join us today. Smt. Shubhalakshmi Panse, former Chairperson and Managing Director of Allahabad Bank. She is an independent director. She is the chairperson of Nomination, Remuneration and HR Committee and a member of the Audit Committee, the Risk Management Committee, Stakeholders Relationship Committee and Management Committee. Madam is participating from Pune. Shri Ajai Kumar, former Managing Director and CEO of Corporation Bank. He is an independent director. He is the Chairman of IT Strategy Committee and member of the Audit Committee and Nomination Remuneration and HR Committee. He has joined from Mumbai. Shri Anup Sankar Bhattacharya, he is the former Chairman and Managing Director of Bank of Maharashtra. He is an independent Director. He is a member of the Audit Committee, the Risk Management Committee and Stakeholders' Relationship Committee. He has joined from Bangalore. Shri Arvind Narayan Yennemadi, he is practicing chartered accountant, partner of RAY & RAY, firm of chartered accountants. He is an Independent Director. He is the Chairman of the Audit Committee and a member of IT Strategy Committee and Corporate Social Responsibility Committee. He has joined from Mumbai. Shri Murali Ramaswami is the former Executive Director in Bank of Baroda and also in Vijaya Bank. He is the Chairman of the Stakeholders Relationship Committee and member of the Nomination, Remuneration and HR Committee and Corporate Social Responsibility Committee. He has joined from Chennai. The proposal relating to his appointment as an independent director, is placed before the members. I'm happy to welcome you all once again on behalf of the Board of Directors to this 36th Annual General Meeting of your company on video conferencing. It's now 11:05 and I have been informed that the quorum is present and I call the meeting to order. Participation of members through video conference is being recorded for the purpose of quorum as per Section 103 of the Companies Act 2013 and the circulars issued by MCA. The registrar of directors and key managerial personnel, the registrar of contracts or arrangements have been made available electronically on the e-voting platform of NSDL for inspection by the members during the AGM. The company secretary will now provide general instructions to the members.

Dear members, this meeting is being held through video conferencing, as already mentioned by the Chairman. In accordance with the circulars issued by the Ministry of Corporate Affairs, applicable provisions of Companies Act 2013 and SEBI Listing Obligations and Disclosure Requirement regulations, 2015. The company has made arrangements for the members to participate in this 36th AGM through the video conferencing facility provided by National Securities Depositors Limited, that is NSDL. Facility for joining this meeting through video conference or other audio/visual means is made available for the members on a first come first-serve basis. The proceedings of this meeting are being recorded for compliance purposes. In accordance with the provisions of Companies Act 2013 and SEBI listing regulations, the members have been provided with the facility to exercise their right to vote by electronic means, both through remote e-voting and e-voting during the AGM. Since the AGM is being held through VC, in accordance with the MCA circulars, the facility for appointment of proxies by the members has not been made available. The annual report, AGM notice, instructions for e-voting, instructions for attending the meeting on video conference process to be followed by the members who have not registered their e-mail IDs and also general instructions was sent to all members who have registered their e-mail IDs by way of e-mail through NSDL platform on the 24th day of June 2023. As on the first cutoff date for sending AGM notices and annual report, that's on 16 June 2023, the company had 90,730 shareholders and 85,048 shareholders had registered their e-mail IDs to depository participants and register and transfer agent. There were about 4,816 e-mail bounces and NSDL has confirmed that they have sent males for the second time to the bounce mail ids. E-mails have also been sent to the shareholders who acquired shares after 16th of June 2023 and up to 7th of July 2023. We have received requests from 34 members for physical copies of annual reports, and we have dispatched the same. Members may note that the notice and annual report '22, '23 are also made available on the company's website on the website of NSE and BSE. A copy of the notice is also made available on the website of NSDL. Remote e-voting facility was made available for all the 11 agenda items during the period commencing from 15 July 2023 Saturday, 9 a.m. till 18, July 2023, Tuesday, 5:00 p.m. All the members who are holding shares as on 13 July 2023, the cutoff date are entitled to vote in terms of the applicable rules. Members joining the meeting through video conferencing, who have not cast their vote by using remote e-voting facility may vote today through e-voting facility provided on the NSDL portal. The members who have already cast their vote by remote e-voting prior to this AGM, shall not be entitled to cast their vote again. The Board of Directors has appointed Shri K.N. Nageswara Rao as a scrutinizer for this meeting. Based on the report of the scrutinizer, the combined results of e-voting will be announced and displayed on the website of the company and will also be submitted to the stock exchanges as per the requirements under SEBI listing regulations. Regarding expression of views or questions from members, I wish to inform that the company has received requests from 12 members to register them as speakers at the meeting. Shri Santosh Kumar Saraf, Shri Sadananda Sastry, Shri Ashit Kumar Pathak, Shri Sharadkumar Jivraj Shah, Shri Santosh Chopra, Shri Kankanala Bharat Raj, Shri [ Padmanaba Nias ], Shri N. Prakash Chand Galata, Shri Abhishek Jay, Shri Jaichand B, Shri Manish Sundaram A.V., and Shri Gundluru Reddappa. Accordingly, the moderator will facilitate the speakers one by one to express their views when the Chairman opens the floor for questions and answers. Members can post their views or questions in the communication tab on the video conference screen before 11:30 a.m. It may be noted that the company reserves the right to limit the number of members asking questions depending on the availability of time at the AGM. We request the members who are posting their queries in the communication tap to type their respective e-mail IDs in case of positive of time, the response from management will be sent by e-mails to them. I now request the Chairman to continue with the proceedings of the meeting.

I am satisfied that all the efforts have been made by the company to enable the members to participate and vote on the items being considered at this meeting.

Ladies and gentlemen, Chairman, sir, will now present the statement.

Dear shareholders, I am pleased to extend a warm welcome to all of you on behalf of the esteemed members of the Board to the Annual General Meeting of Can Fin Homes Limited for the financial year 2022 and '23. This year has been a period of significant progress for our company, as it has successfully recorded the highest sanctions, disbursements and net profit in the history of the company. With the legacy spanning 35 years, Can Fin Homes Limited has established itself as a leading housing finance institution empowering countless individuals to achieve their dream of home ownership. The company's vision and mission continue to be centered around increasing the housing stock in the country and enabling more individuals to experience the joy of owning a home. The dedication to empowering communities and driving socioeconomic growth through various housing finance schemes and initiatives that remains steadfast. The Board's report and audited financial statements for the financial year ended March 31, 2023, are already with you and with your kind permission, I take them as read. Looking back at the economy, India's economy has shown remarkable growth in the fiscal year 2022, '23, with the GDP accelerating to 7.3%. The expansion can be attributed to the robust domestic demand and a significant surge in the construction activities. The construction sector has played a crucial role in driving this growth, supported by substantial infrastructure investments by both the central and state governments. These investments have not only bolstered economic development, but have also created numerous employment opportunities on a large scale. The strong performance of the Indian economy in the past fiscal year reflects the resilience and the potential of the country. As we move forward, it is important to sustain this momentum and capitalize on the positive trends. Continued investments in infrastructure, coupled with the favorable government policies will further stimulate economic growth and pave the way for a brighter future for all. Foreign direct investment has played a significant role in accelerating economic development by creating job opportunities, fostering innovation and improving productivity. It has facilitated the establishment of new industries, expansion of existing business and the transfer of knowledge and skills. The presence of multinational corporations have stimulated a competition, encouraged domestic companies to enhance their capabilities and contributed to the overall growth of our economy. While the housing sector is on the rise, the Indian housing industry is witnessing significant growth due to factors such as a young and growing population, a rapid urbanization and a favorable government initiatives. The demand for housing is driven by urban migration increased disposable income and the need for affordable and quality housing. Various housing programs of the government aim to provide affordable housing for all further boosting the sector. With a favorable interest rate environment and easier loan approval processes, individuals have greater access to housing finance, which has fueled the rise of the housing finance industry. Customized loan products and government support in the form of subsidies and tax incentives have made home loans more affordable and accessible for a wider range of buyers. Can Fin riding on industry opportunities. In the fiscal year, 2022, '23, your company has achieved a positive performance across various parameters. There is an impressive 18% increase in assets under management. The loan book portfolio stood at INR 31,563 crore in financial year '23 compared to INR 26,711 crores in financial year '22. Notably, the NPA levels have decreased with the gross NPA reducing from 0.64% to 0.55% and net NPA decreasing from 0.30% to 0.26%. Diligent collections under recovery efforts have yielded fruitful results leading to a significant reduction in NPA figures. Conservative provisioning approach has also strengthened the provision coverage ratio. Although interest rates have increased, their impact on the asset side is yet to be fully reflected in the books. As a result, a marginal improvement in the interest spread is anticipated in the upcoming quarters as the impact of the rate hike unfolds. In order to deliver consistent performance, it is important to address a potential risk to sustain the company's growth trajectory and protect it's price resit quality. The risk of slippage from the restructured book is an area of concern that is being closely monitored and actively mitigated to ensure the stability and resilience of Can Fin's business operations. Your company has a market presence in more than 21 states and union territories. As on March 31, 2023, there are 205 offices spread across the country strengthening ESG endeavors. The company is enthusiastically expanding its ESG, that is environmental, social and governance. Footprint as part of its commitment to sustainability and responsible business practices. Waste reduction and recycling initiatives are prioritized across operations and the strategies are implemented to minimize the environmental impact and promote a circular economy. These efforts will contribute to a cleaner and greener future. At Can Fin Home strong corporate governance to ensure trust, transparency and accountabilities practice, ethical practices are upheld and transparency in operations is maintained. The company has a well-defined organizational structure that promotes accountability at all levels. Its commitment to these principles fosters confidence among the stakeholders and enables it to navigate challenges while creating sustainable value for the customers and the shareholders. During the year, your company's contribution to multiple CSR activities in the field of education, health care, community, development, et cetera, was INR 11.81 crores. By exposing social causes and investing in social well-being, Can Fin strives to create a positive and inclusive environment for its employees and the society in general -- way forward. Going forward, your company looks forward to expanding its operational footprints in key geographies across India, while demonstrating continued growth in the southern part of the country. With the establishment of new branches, Can Fin will target a wider customer base to cater to their evolving needs more effectively. Furthermore, as operations are enhanced, your company is committed to increasing efficiencies, stream learning it's processes and compliance culture. By leveraging technology and implementing innovative solutions, the overall banking experience for the customers will get upscaled. I extend my sincere gratitude to the esteemed members of the Board, the regulators of the company, the National Housing Bank under Reserve Bank of India as well as the sponsor, Canara Bank and the auditors. Their advice, support, encouragement and cooperation have been instrumental in Can Fin's ongoing journey. I would also like to express my appreciation to the shareholders, customers and dedicated employees for their continued faith in your company's capabilities. It is through their trust and support that Can Fin has been able to achieve a remarkable milestones for 3 decades. And looking ahead, Can Fin is committed to work collaboratively for reaching new heights of success. Thank you.

Ladies and gentlemen, our Chairman, sir, will now announce about AGM notice and auditor's report.

As already mentioned by the company's secretary, all the relevant documents like AGM notice, annual report, including financials, necessary e-voting and VC-related instructions, et cetera, have been sent by electronic mode to those members whose e-mail addresses are registered with the company, RTA or depositories. These documents have also been made available on the company's website. Considering the same, I would like to take the notice dated 19th of June 2023 relating to the 36th Annual General Meeting of the company as read. Now I request the company secretary to present the auditor's reports for the financial year 2022 and '23.

Dear members, B Srinivasa Rao & Co and B K Ramadhyani & Co., LLP, the joint central statutory auditors of the company have given their unqualified auditor's report for the financial year ended 31st March 2023. There are no qualifications, observations or comments on the financial transactions or matters which have any adverse effect on the functioning of the company. Independent auditors report on audit of India's financial statements, together with Annexure A and B, relating to report on other legal and regulatory requirements, including report on the internal financial controls are placed at Page # 167 to 177 of the annual report. Shri S. Vishwanathan, Practicing Company Secretary, was appointed as a secretarial auditor as per Section 204 of the Companies Act 2013 for the financial year '22, '23. The report submitted by the secretarial auditor is placed as Annexure 1 to the report of Directors at Page # 64 to 70 of the annual report. There are no qualifications, observations or other remarks made by the auditor. Hence, the auditor's reports are being taken as read. Thank you.

Ladies and gentlemen, Chairman, sir, will now take up the resolutions as set forth in the notice.

We now take up the resolutions set forth in the notice of the 36th Annual General Meeting. I request the company secretary to take us through the business that has to be considered at this...

The ordinary business place for consideration before the members are resolution #1, adoption of accounts. To receive, consider and adopt the audited financial statements, including balance sheet as at 31 March 2023 and statement of profit and loss account of the company for the year ended that day, together with the reports of directors and auditors thereon. The complete financial statements with all annexures thereto, the report of directors and auditors' report are already provided to the members in the annual report circulated on 24, June 2023 and copies are made available on the websites of the company, NSDL, NSE and BSE, and also made available for the inspection at the registered office of the company. Resolution #2, to confirm payment of interim dividend and declaration of final dividend. To confirm the payment of interim dividend of INR 1.50 per equity share of face value of INR 2 each, and to declare a final dividend of INR 2 per equity share of face value of INR 2 each for the financial year ended March 31, 2023. The Board had paid an interim dividend of INR 1.50 that is 75% on the 26th December 2022, and recommended a final dividend of INR 2 that is another 100% for the year ended 31st March 2023. Total dividend of INR 3.50 per share, which is 175% as against INR 3 per share, which was 150% that was recommended last year. Resolution #3, to reappoint Shri Debashish Mukherjee, Director, who retires by rotation and being eligible, offered himself for reappointment. This proposal is as per the requirement under Section 152 of the Companies Act 2013, and the company has complied with the provisions of Section 152. Brief profile and all relevant particulars of Shri Debashish Mukherjee are provided in an explanatory statement at Page # 16 to 18 of the notice and Page # 298 to 299 of the annual report. The Board has recommended for passing of this resolution. Resolution #4, appointment of Shri K. Satyanarayana Raju as a Director. The Board of Directors has appointed Shri K. Satyanarayana Raju, as an additional director with effect from April 26, 2023, on the recommendations of Nomination, Remuneration and HR Committee, and in terms of the notification dated 6th April 2023 issued by the Minister of Finance. Approval is sought from the members for his appointment as a director. Brief profile and complete particulars relating to Shri K. Satyanarayana Raju are provided in the explanatory statement at Page # 18 to 20 of the notice and Page # 300 to 302 of the annual report. The Board has recommended forecasting of this resolution. Resolution #5, appointment of Shri Ajay Kumar Singh, as a Director and whole time Director. The Board of Directors has appointed Shri Ajay Kumar Singh, as an additional Director and the whole time Director and designated him as Deputy Managing Director of the company with effect from June 19, 2023 on the recommendations of the Nomination, Remuneration and HR Committee. The proposal has been placed before the members seeking approval. Brief profile and complete particulars relating to Shri Ajay Kumar Singh are provided in the explanatory statement at Page # 20 to 22 of the notice and Page # 302 to 304 of the annual report. The Board has recommended for passing of this resolution. Resolution #6, related party transactions. The company had obtained in prior approval of the members for entering into or continuing with the transactions, arrangements or contracts with related parties, namely Canara Bank and its subsidiaries and other group companies exceeding the threshold limits described in the Section 188 of the Companies Act 2013 and related rules and regulation 23 of the SEBI Listing Regulations 2015, and approval will be valid until the conclusion of this meeting. In terms of the SEBI circular, dated 8th April 2022, approval is requested from the members for the related party transactions on the same terms and conditions after the conclusion of the next annual general meeting. The aggregate related party transactions as of March 31, 2023, was INR 1,958 crores. The complete particulars of related party transactions are provided in Note #44 in Page # 243 to 248 of the annual report and in the explanatory statement in Page # 22 to 25 of the AGM notice. The Board has recommended for passing of this resolution. Resolution #7, reappointment of Smt. Shubhalakshmi Panse, as an independent director. Smt. Shubhalakshmi Panse was appointed as an Independent Director of the company by the members at the AGM held on August 26, 2020, after the conclusion of the Annual General Meeting of the company of the year 2022, '23. The tenure of her appointment comes to an end on the conclusion of this AGM. The NRC has determined fit in proper criteria, and the Board has recommended for her the appointment for a further tenure of 3 years. Brief profile and complete particular relating to Smt. Shubhalakshmi Panse, including the terms and conditions of appointment are provided in the explanatory statement at Page # 25 to 27 of the notice and Page # 307 to 309 of the annual report. The Board has recommended for passing of this resolution. Resolution #8, appointment of Shri Murali Ramaswami, as an Independent Director. The Board of Directors has appointed Shri Murali Ramaswami, as an additional director with effect from June 19, 2023. Brief profile in complete particulars relating to Shri Murali Ramaswami, including the terms and conditions of appointment are provided in the explanatory statement at Page # 27 to 29 of the notice and Page # 309 to 311 of the annual report. The Board has recommended for his appointment as an independent Director of the company for a tenure of 3 years. Resolution #9, offer or invitation for subscription of nonconvertible debentures of any nature up to an amount of amount not exceeding INR 4,000 crores on private placement. Keeping in view the expected increase in business of the company, alternative sources of funds, cost of each of the sources and to comply with the regulatory requirements, the company intends to offer our invite subscription of bonds or NCDs or Tier 2 bonds up to an amount of INR 4,000 crores in one or more branches on private placement basis during the period of 1 year from the conclusion of this meeting until the conclusion of the next AGM. However, it will be ensured that the NCDs together with all other existing and future borrowings would be within the limits specified by the members under Section 181C of the Companies Act 2013. Complete particular on the subject are provided in the explanatory statement forming part of the notice of this meeting at Page # 30 and Page 312 of the annual report. The Board has recommended for passing of this resolution. Resolution #10, further issue of shares not exceeding INR 1,000 crores as a special resolution. The company focuses on 4 key parameters, namely growth, asset quality, liquidity and profitability. The company expects to grow at an average rate of 18% to 20% over the next 5 years. The expected growth rate necessitates inclusion of fresh capital to build an adequate cushion in the borrowing capacity of the company for the next 3 to 4 years and to keep the capital adequacy ratio as well as leverage ratio at comfortable levels. The capital adequacy ratio of the company as on March 31, 2023, was 23.07% which was well above the regulatory requirement of 15%. However, the leverage ratio was expected to remain around 8x. Generally, lenders are comfortable with a [ EDAR ] of about 7x. And hence, there is a need to infuse 31 capital. The Board seeks authorization for taking a decision on the time of issue, type of issue, number of shares to be issued, mode of issue, terms of offer, including the class of investors to whom the securities are to be allotted, et cetera, considering the market scenario, cost, benefits and other parameters. Complete particulars in this regard are provided in the explanatory statement and next to the notice from Page # 31 to 32 of the AGM notice and Page #312 to #313 of the annual report. The Board has recommended for passing of this resolution. Resolution #11 to alter the Articles of Association. The SEBI has amended the issue and listing of nonconvertible securities regulations on February 2, 2023. And one of the requirements there in for listed entities is to ensure that its articles of association contains a provision for enabling the Board of Directors to appoint the person nominated by the debenture trustee in terms of SEBI Debenture Trustee Regulations 1993, as a Director on the Board of Directors in the event of 2 consecutive defaults in payment of interest with debenture holders or default in creation of security for debentures or default in redemption of debentures. This requirement needs to be compliant before September 30, 2023. Hence, it is proposed to alter the existing articles of association of the company by inserting Article 25.3A after Article 25.3 as an enabling clause which gives authority to the Board of Directors to appoint a director, if any nominated by the debenture trustee. Also in the section 14 of the Companies Act 2013, the [indiscernible] can be affected only with the approval of the shareholders by passing a special resolution. Complete particulars of Resolution #11 are provided in Page 22 of the AGM notice, which is Page #314 of the annual report, seeking approval of members. The Board has recommended for passing of the Resolution #11 by the members. So approvals of all the resolution #1 to #11 are very important for the company to carry on its business smoothly during the year. I mean, up to the next Annual General Meeting. Hence, we request for support from the members and request the members to cast their votes today before the voting window closes. Thank you.

Thank you. Ladies and gentlemen, Chairman, sir, will now announce about discussions on annual accounts.

Before commencing discussions on annual accounts, I would like to inform a few points. All the resolutions are put to vote through remote e-voting. Hence, in terms of secretarial standards, there will be no proposing or second thing required for any resolutions at the meeting. And also, there will be no show of hands. All resolutions are required to be voted electronically. The e-voting facility will now be activated for members who are participating in this meeting, and who have not already voted through remote e-voting. The voting facility will remain active till 30 minutes after conclusion of the meeting. We will open the floor for expression of views or any questions on the financial statements for the year ended 31st March 2023 and other resolutions moved at the meeting. We will adhere to some basic guidelines for a smooth question-and-answer session. Before raising questions or seeking clarifications, I request the speaker members to mention their name, folio number and the location from where they are joining. Members are also requested to restrict their questions to 2 minutes so that the other speakers also will get an opportunity to share their views. It may be noted that the company reserves the right to limit the number of members asking questions depending on the availability of time at the AGM. To avoid repetition, we will respond to all the questions at the end. I now request the moderator to enable our speaker shareholders one by one to express their views. Thank you.

Thank you sir. Ladies and gentlemen, we will now begin the question-and-answer session. Request everyone to please remain connected while the speaker shareholders assemble. We now invite our first speaker member, Mr. Santosh Kumar Saraf to accept the prompt on your screen, unmute your audio and video, and proceed with your question.

Hello?

Yes, sir, you're audible. Please proceed with your question.

[Foreign Language]

Thank you. We now invite our next speaker member, Mr. Sadananda Sastry to accept the prompt on his screen, unmute your audio and video, and proceed with your question.

Am I audible?

Yes, sir.

Are you seeing me? Hello?

Yes, sir, you're visible.

Yes. Good morning. I am Sadananda Sastry from Bangalore. My number is 11702201. Sir, I will go through only your reports. And not other than that I may steal a minute more. Please bear with me. First of all, I thank that the company being one of the subsidiaries of Canara Bank has occupied the first place in the list of other subsidiaries with an excellent growth. You have also shared a good profit with your parent bank, Canara Bank. I have highlighted this in the AGM of Canara Bank recently held on 28th June. Your company secretary, Veena G Kamath, is very cordial, cooperative and helpful to shareholders expecting minimum requirements of shareholders like sending physical annual reports and other entitled information. Thank you, Veena, keep it up. Report Page #5. Cancer Home is in Karnataka, is Karnataka base. You have 16 branches in Karnataka, but 23 in Tamil Nadu, what potentiality you find in Tamil Nadu. Page #10, financial highlights. You have said that through [indiscernible] 2032, in Page 6, but here, you have shown 193 branches. What is this difference? Do you consider satellite and HO officers as branches where banking business now dealt with? Page #14, performance. The graph level in all segments, except if you are showing a steady and uniform growth, I hope you will continue the same trend in the coming year also. Page #44, asset quality. It is an alarming stage in the case of increased gross NPA and also net NPA compared to the last year, what assets you will take to control these? Page #97, employees training, you have considered only female for health and safety training, leaving male employees, are they not eligible? You know sound wind in a sound body. Healthy employees may give good contribution to the company. Page #108, it is worth to see the nil in all categories, which are very important column, shareholders wish to see nil in these categories keep it up fast. Page #142, generally, -- you are conducting AGM during August, September. But this time, it is in mid of July, what is the reason? Page #157, share value is somehow sinking despite good performance. Required vitamin to be injected to increase the value to save the image. Page #178, balance sheet. In loans, impairments, unsecured, loss assets are being kept [ crept in ]. Over dues are aged or overaged are not mentioned. It may affect the profit of current year. How do you monitor itself? Borrowings are increasing, deposits are coming down, why can't the company increase rate of interest on deposits to attract depositors and reduce borrowings and expensive finance cost. Alternatively, other equities are highly inflated. Company can issue bonus shares and increase the capital to minimize borrowings and interest cost. Lastly, in other expenses, insurance cost has come down by INR 7,500,000 compared to the last year. Generally, insurance expenditure would be higher year-on-year. In case of certain eventualities contingencies will array, may I know the reason for the reduction? Thank you very much, sir. See you personally at the next year meeting. Thank you very much.

Thank you. We now move to our next speaker member. Mr. Ashit Kumar Pathak, please accept the prompt on your screen, unmute your audio and video, and you can proceed with your question.

Am I audible?

Yes, you're audible.

Good morning, respected Chairman, MD and CEO, Board of Directors, Company Secretary, 12 members joining at 36th AGM of Can Fin's Homes Limited. My name is Ashit Kumar Pathak, joining from Kolkata. My esteemed data issued to DGM and Company Secretary, Smt. Veena G Kamath and secretarial teams are excellent corporation to me, for sending notice of the 36th AGM and annual report financial year '23 by email, very well in advance and allow to me to speak. Sir, excellent opening remarks from my respected Chairman, and he made many of my views clear. Apart from this, I have some brief views which I'd like to share. At first, congratulations to my company's management team for excellent financial performance where net profit achieved INR 622.61 crores, and GNPA decreased to 0.55% from 0.64 and also cost of income ratio reduced to 16.93% from 18.32%, excellent performance. But sir, I noticed that capital adequate ratio reduced if possible for some highlights from 23.15% to 23.07%. And average cost of borrowings is 6.5% against 5.56 previous financial year and what my company management keeps taking for cost controlling because other expenditure is [ INR 48 crores ] against [ INR 41 crores. ] And also finance cost is very high at, INR 1,701 crores against INR 1,153 crores, if possible for some highlights. I noticed in annual report, it mentioned that at began situation, housing finance company facing significant competition from banks, where HDFC Limited, Mort Group HDFC Bank and also Bandhan Bank taking Guru Finance, which is only subsidiary. So any future chance, my company will march with sponsors bank, Canara Bank, if possible, for some highlights. And any future plans, business prospectives in Tire 1 city and other zones, apart from concentrating zone business, South zone. And sir, my previous speaker also mentioned about bonus share. If possible, I also eager for bonus share. And today, the stock price is INR 809 and more and any future chance to split my company share from INR 2 to INR 1 for enhanced market share. Sir, after repo rate increased to 6.50%, any impact in our business operation in current financial year apart from EMI, and also, government in current financial budget 2023-'24, allocated INR 48,000 crores in PMAY. So I think how my company management team is taking this opportunity and also if possible throw some highlights the borrowing cost from NHB. If possible for some highlights. And finally, this is -- we are completing 35 years long journey with prospective financial performance and uninterrupted dividend paying strategies. So if possible, in the eve of 35 years, get together with attending speakers and members, if possible and if the situation permits.

We now invite our next speaker member. Mr. Sharadkumar Shah, please accept the prompt on the screen, unmute your audio and video, and you may proceed with your question. Mr. Sharadkumar Shah, please accept the prompt on the screen unmute the audio and video, and you may proceed with your question.

Can you hear me now?

Yes, sir.

Sir, I have received a call from -- first thing, it is still good morning because it is not 12 o' clock. And I received a call from your side on 14th and asking me to take the -- my view immediately, I've sent, my thinking was whatever mail I've seen, I'll give the reply because it is 5 days back, I have given.

Sorry to interrupt, Mr. Shah. Could you please hold the mic a little bit closer to your mouth?

Okay. Now can you hear me?

Yes, sir.

Another thing sir, if I'm not wrong, our CEO and MD has joined around 4, 5 months back, and I welcome him to this Can Fin Home, sir. And now by earlier speakers, speaker #2 said our NPAs are increased, second -- third speaker said, it is decreased. And what I feel -- what is correct is see our NPA gross or NPA is reduced, so it is a good sign. Another thing that these two speakers asked for bonus. I'm against bonus because bonus doesn't make any change. I'll prefer this company final cost is increasing or something like that, and in that case, our price is good and we can go for a price issue and company will get a good amount of money. At the same time, nowadays, price issues are also listed in the market. So even if shareholders wants to sell them, right, they can also get some money. So that is my big idea. Another thing, sir, as in price, you see that I will only talk on financial. So financial last 6 years, I'm seeing that this is increasing, it is ascending year by year. And particular this '22, '23 year is much better than the previous year. And if I see particularly earning per share is 46.52. And the dividend is around INR 3 or INR 4 something like that. So what I feel it is not justified. And whether any banking rules are applicable to us not to give more dividend or something like that. That I don't know. So basically, if the earning per share is good, like Hindustan Lever try to give as smooth as possible to the EPS, and Hindustan Lever gives dividend close to earning per share. So looking to this aspect, whether we have got definitely any restriction. And what I observed sir, our bills are good, performance is good, what happened year '22, '23 share price has pared down. I don't see as per balance sheet. But again, it has picked up to now 800 and the present ratio is around 15 or 16.48, whether it's a good ratio or it is high or low -- or if it is low then the chances of increasing share prices are really good, sir. And so that it means that we should definitely retain this share for future gain. Another thing, the finance cost is our raw material. So if we -- even if it is increased, I'm not bothered because it means that we are getting more clients, we are financing more people, we are increasing our business, right. Sir, what I found that in any business, if you maintain the expenses as low as possible, definitely we'll get good back, good earning per share. And our key employment cost, we have maintained just 15% of our pack. So it is a good sign. Another thing, somebody talked about the bank and the NBFC, whether we fall in the NBFC category, that I want to like to know? And what is my observation, HDFC, what HDFC, it's -- there share [indiscernible] with the HDFC bank. So that particular section of NBFC is reduced, so what is the total NBFC share at present and what is our percentage in that, that I would like to know. And another thing what I realized that Jio Finance is also coming into market. So with its share, it is matched with the HDFC, and again, the HDFC share will increase in the market. NBFC is better or banks are better to take a loan or home loan, or any loan that I would like to know. Thank you very much for giving the opportunity and once again, I thank to everybody and if possible, you can reply me, I must look for a right decision, sir. Thank you very much, sir.

We now invite our next speaker member, Mr. Santosh Chopra. Please accept the prompt on your screen, unmute your audio and video, and you may proceed with your question. We will wait for a moment while Mr. Santosh Chopra unmute their audio and video.

Am I audible, sir?

Yes.

Thanks for giving me the opportunity to speak at this AGM. I'm from Delhi NCR. Sir, as reported in the press and management at this meeting, I'm satisfied with the progress of the company, especially dividend, but I request, as the previous speakers have requested for bonus as the company's performance permit, as most of the queries have already been covered by the previous speakers, I would not like to waste your value time for any further questions. I support all the resolutions proposed by the Board of Directors and wish my best wishes for the further growth of the...

Sorry to interrupt, Santosh, sir, you are not audible. Could you hold the mic a little closer to your mouth?

Should I start from the very beginning?

Yes, sir.

Thanks for giving me the opportunity to speak at this AGM. I am from Delhi NCR. Sir, as reported by the management at this meeting, I'm satisfied with the performance of the company, especially dividend announcement by you. But I request as previous speakers have requested for a split of the share as well as for bonus issue to enhance our share value. As most of the queries have already been covered by the management, previous speakers, I would not like to ask any further questions. I support all the resolutions proposed by the Board of Directors and wish my good luck for the future growth of the company. Thank you very much, sir.

Thank you. We now move to our next speaker member. Mr. K. Bharat Raj. Please accept the prompt on your screen, unmute your audio and video, and you may proceed with your question. We'll wait for a moment while Mr. Bharat Raj unmute their audio and video connection.

Hello?

Yes, sir, you may proceed with your question.

Yes, very good entire Board of Directors. I'm Bharat Raj calling from Hyderabad. Sir, first of all, my warm welcome to our Chairman, Mr. Satyanarayana Raju, our MD and CEO, Mr. Suresh and entire Board of Directors, my Company Secretary, Ms. Veena, wonderful arrangement of the VC. Thank you very much, ma'am. I received my Annual Report, Chairman sir, in time -- thank you very much. First of all, sir, wonderful performance in this financial year under the leadership of our Chairman. Mr. Suresh is doing wonderfully, sir. He's make my NPA come down 0.26% compared to last year, sir, wonderful, sir. My net profit has increased very good, sir. Chairman sir, as per the last questions also, -- regarding this Northeastern states, there is no branches In Jammu and Kashmir also, there is no branches. So what is your future plan in the Northeastern states at Jammu and Kashmir? At present, we are 172 branches. What is your target in next 5 years? I want to know the future plan to how to increase 250 branches all over India, please give me the road map. Sir wonderful CSR, there is no question to point out the CSR. Sir, dividend payout is wonderful. I request the management look into to the bonus shares. In the next year, physical AGM, try to connect physical AGM. Because physical AGM create lot impact. We used to come from Hyderabad to Bangalore, attend the AGM, sir. It is like a family get together. We used to enjoy very lot. So Chairman sir, next year, physical AGM is a must, sir. Video conference creates there is no impact for the management and the shareholders. Sir, first of all, a warm welcome Ajay Kumar, Joint Managing Director. I thank Mr. Amitabh for his wonderful services and happy retirement life. I also -- my best wishes to Shamila, GM Madam for retiring, happy retiring life. Once again Chairman sir, my best wishes to you in the coming years. Sir, Chairman sir, please humble request sir, please arrange dry fruit sweets, please inform to our company secretary to arrange sweet box, sir. This is something for the shareholders who are attending this AGM. So that you inform our counter part in Hyderabad will -- they'll arrange sir. So please arrange a dry fruit sweet box, sir. Once again, Mr. Chairman and MD and entire Board of Directors, my best wishes to you. In coming years, I hope we will be more and more in great ahead, sir. Thank you very much for giving this opportunity.

Thank you. Our next speaker member is S. Padmanabhan, who has registered, however, she has not joined. So we'll move on with the next speaker member, N. Prakash Chand Galata, Please accept the prompt on your screen, unmute your audio and video, and you may proceed with your question. We will wait for a moment while Mr. Prakash unmutes their audio video connections. Mr. Prakash, please unmute your audio and video. And you may proceed with your question.

Can you hear me?

Sir, we can hear you.

I'm Prakash Galata, and my details of holding is, I'm with [ Chandra ] Bank Securities DP, client ID number 40064545, having -- having demat account with them and with you as a shareholder also. I find a few points because all have been covered by my [indiscernible] -- other core speakers quite before. I'll just speak a few points. We have a [ really ] market share price is [indiscernible]. Shareholders also has a 10% of the NCD so that if it is attractive, and we can also contribute as well as have our money safe with you. So that should be taken without any [indiscernible] [ e-voting ] is having 30 minutes.

[ check tag ] ... I'm sorry to interrupt, there's a lot of disturbance Prakash. Could you adjust your mic? And repeat the last sentence if possible. I'm sorry, we are unable to hear you due to some possible network issue. We will contact you and if your connectivity improves, we will announce your turn again. Thank you. Meanwhile, we'll move on with our next speaker member, Mr. Abhishek [ Jain ]. Please accept the prompt on your screen, unmute your audio and video, and you may proceed with your question. We'll wait for a moment while Mr. Abhishek unmutes their audio and video connection. Mr. Abhishek, may we request you to unmute your microphone.

Sir, I'm audible, sir?

Yes, sir.

Abhishek, shareholder of the company. My DP [indiscernible]. So first of all, I congratulate the management on the annual general body meeting. I trust all is well with you at a family in this challenging situation. The company deserves much more respect than the current market [ cap ] after completing a decade of successful operations and profitability, and becoming one of the strongest brand in your respective segment. And I would like to know how our business was being affected in the past COVID time, past 3 to 4 years, all the companies have struggled. So how -- what's the -- what are the steps being taken by the management to reduce the [indiscernible] legal professional charges and the audit fees.

Sorry to interrupt, Abhishek. We hear lots of disturbance. There's a background noise.

What are the steps being taken by the management to reduce the other expenses, legal professional charges and the audit fee. Then we have some -- how much of NPA is pending as of date? What steps have been taken by the management to recover the same, I would like to know because [indiscernible] company is doing very well. We really appreciate the management for the sincere efforts in bringing the company to this particular extent and rewarding the minority shareholders in large number. [indiscernible] expecting a bonus issue in the upcoming year. I hope that the management will consider the same and reward the minority shareholders in large numbers [indiscernible] nothing much to ask, sir. I wish the company and the Board of Directors, a great success and prosperity in the coming future. I thank the Company Secretary and the entire team for sending us the link well in advance and making this annual general body meeting a grand success. [indiscernible] shareholder, [ Mr. P. Jochen ], he's also joined. He's my father. So kindly allow him to join from the same device rather than -- in order to [indiscernible] question. Because of technical issues, he is not able to join from a separate device. He is the subsequent speaker. Kindly allow him from the same device [indiscernible].

Thank you. We now invite our next speaker member, Mr. P. Jochen.

I'm P. Jochen, shareholder from Chennai, sir. Good morning, respected Chairman, Board of Directors, Secretary and his team, my fellow shareholders. First of all, I congratulate all for this AGM. We are proud shareholders of our company. All the only general grievance of all shareholders is they expect better dividend and bonus, which is an undisputed [ fact ]. The effort of the management is wonderful in sustaining the pandemic period. The management should reduce expenditures and maximum profits to be declared as dividends and of taking them into reserves. I request the management to conduct the AGM in physical in coming years soon. Everybody has suffered during pandemic especially the minority shareholders, and I support all the resolutions. I wish our company all success in coming future. I wish our company to touch sky high. I thank the management for giving me the opportunity.

We now move to our next speaker member, Mr. Mani Sundaram. Please accept the problem on your screen, unmute your audio and video, and go ahead with your question.

I'm shareholder, AV Mani Sundaram. Welcome, 36th annual general body meeting, Director, Chairman. Board of the Directors and executives and also DGMs, analysts. Very happy to attend this meeting. Annual general body meeting. Annual report is very good. And also thanks to Shri Suresh Iyer, MD and CEO, Director, Key Managerial [ and ] Personnel. And the [ additional ] Company Secretary, Veena G Kamath, and the DGM and Cluster Heads. Welcome to some few words -- few points to mention Page #6, wonderful diagram in 1987-2023, 26 years, INR 30 crores has been reached at the target. And Page #14, the NPA is 0.26, it's a very good one. And also Page #18, CSR, [indiscernible] have a very good. Page #48, [indiscernible] 46.65, it is also very good. And comparing last year, 35.38. Dividend, you have given [ INR 2 ] with 100%. And Page #126, the Board of Director and [ Hainan ], Mr. Shri Suresh Srinivasan Iyer have [ executive ] 100 shares only. Other than 10 executives, shares have no -- nil, shareholder is nil. What is the reason, why they are not a shareholder. Please [ enroll ]. And also we will like to inform by means of -- in future, what is the future plan to expand. And also housing finance is very good. Page #134, board meeting [indiscernible] has been -- last year has been conducted, what is the resolution you have passed there? Page #173, disputes [ incurred ] by the GST, Income Tax 1961, Uttar Pradesh GST dues. What is the necessary [indiscernible] to solve this, to avoid a penalty to the government to the bank's management. On Page #179, [indiscernible] income, please explain. Other expenses very high comparing last year. Total expense also nearly 60 [indiscernible] of excess. Page [ #16 ], [ check indiscernible] received. What is the reason? Please take necessary steps to avoid that [indiscernible]. Page [ #217 ], other expense is legal. I will make it as very minimum in future years. The [ necessary activities ] and miscellaneous expenses, please make the necessary steps to minimize expenses and also give cost account to them [indiscernible] AGM by video conference makes physical meeting with all the shareholders. Very happy to attend the meeting. Please arrange some refreshments or sweet box or fruits to the shareholders. Thank you. Thanks a lot. Please make arrangement next year to attend physically [ and before that ].

Thank you. We now invite our next speaker member, Mr. [ Gundaluru Redeppa ]. Please accept the prompt on your screen, unmute your audio and video, and proceed with the question. We will wait for a moment while Mr. Gundaluru Redeppa accept the prompt and joins the meeting.

Yes. Mr. Chairman, K. [ Satran ] Raju, welcoming, sir. And dynamic MD and CEO, Suresh Srinivasan Iyer. And also Debashish Mukherjee, Shubhalakshmi ma'am. Ajay Kumar Singh, new [ independent ], welcoming you, sir. Arvind Narayan, sir. Shri Anup Sankar Bhattacharya, Murali Ramaswami, welcoming you, sir. Apur Agarwal, CFO, KMP. Also my Company Secretary, DGM, Veena ma'am. And other Directors and Executive Directors, Scrutinizer, Auditors, and my fellow [indiscernible] of VCs. I'm from Hyderabad. My name is Redeppa Gundaluru. My [indiscernible] number is -- last digits is 840, [indiscernible]. Sir, congratulations for having completed 35 years -- successful years in this housing finance [ area now ]. Since -- from 1987 to 2023, wonderful journey, wonderful pan-India presence with more than 200 branches. Welcoming our new MD and CEO, Shri Suresh Srinivasan Iyer, it is a very good personnel personality, very experienced person, earlier banks and also this housing and financial sector, sir. We know you are [indiscernible] and welcoming you under the leadership [indiscernible]. Mr. Suresh, all the best, you are the experienced leader. As a shareholder, I'm very happy about the company performance of this financial '23, wonderful information in the annual report and also in your speech, I came to know lot of information. Sir, I had received the annual report within a short time, immediately [ next ] day [indiscernible] I receive, which is a request. And also I have gone through all the annual reports. Nice annual report with colorful photographs with the detail info. And also, sir, you have given -- my company has given very good returns. Today, the market price is all time high. Nice and happy, sir. And also, I would like to appreciate all the -- this corporate governance is very wonderful, expenses. And also the [indiscernible] accountability, transparency, felt very happy. So who is preparing the annual report and also maintaining the corporate governance, so I'm expressing special kudos to them. All the best, keep it up, sir. Financial strength also very good, sir. Thanks for dividend. As for dividend consistent performance. Company made in sales in 10 years, recorded growth, more than 18%, wonderful growth, sir, consistent performance. And also, sir, our loan book crossed over INR 30,000 crores, it shows my company is at very good right -- path. [indiscernible] this wonderful words and recognition. CSR, sir, in annual report, in every page, CSR with the proofs you have printed [indiscernible] quality, I felt very happy. I don't want to ask any [indiscernible] this CSR area. Chairman, sir, my observation is -- so what is the -- company's -- [ 30 years ] completed and also good revenue, good loan book, very wonderful. Now what is your next target? What is your next mission, vision, I would like to know from you, Mr. Chairman, MD. And our second question is please look into to branch in this AP, new states, new district has allocated now, especially in this -- my personal [indiscernible] Annamayya district. District headquarter, Rayachoti. Earlier, it was in Kadapa. Now you are separately headquarter -- district headquarter, Rayachoti growing now, sir. So infrastructure is now growing, and also [ share ] are growing. So here, my question is -- is it -- please initiate a branch over there. Please look into that, sir. And also, sir, another question is -- any new branch is planned in -- like my [ affiliate ] shareholder, [ Mr. Bharat Raj ] asked the [indiscernible], especially Jammu and Kashmir, much of it is like that. So I would like to know from you, sir. Another question is the traveling [indiscernible] is steeply increased it. INR 414 lakhs versus INR 283 lakhs. So what is this steep increase, I would like to know. And also, I'm also expecting the bonus. I'm also proposing the bonus [indiscernible]. Please consider aboard. No need [indiscernible]. Also consider good loans to any interested in the shareholders with the minimum interest to shareholders. And also, I'm looking for physical annual meeting in coming financials. It's get very impact as my [indiscernible] share salary provide. And also in festival season, please distribute the compliment to the shareholders who is attending this AGM. It creates a lot of bonding in the company. It's very small, but it's a feeling where it's good. Okay -- sir, in my -- I have received the annual -- this AGM link, but have not mentioned the speaker number. Next time, please give me the speaker number so that no need to wait. Sir, my observation only. Please give a separate investor relationship to improve the relationships with shareholders. Other [indiscernible] banks are -- personally, they're calling and giving the very good respect to the shareholders and also the -- before AGM, it's create a lot of positive towards our company. This is my observation. I would like to thank, Ms. Veena [ Garu ] -- is a nice person, nice humility person, very cooperation, especially a nice woman, helpful person, don't react [indiscernible]. God bless you, ma'am. I wish all the best in further financial [ year ] Company Secretary. I am expecting the call from Company Secretary ma'am, but nobody is calling no -- you're DGM, I know that. But you should take care of shareholders, investors, [ the dividends ] also, please take care of that. Thanks to Mr. Chairman by giving this opportunity. Mr. Iyer, under your leadership, we will achieve very more higher -- or [ underlevered ] leadership with support of all the Board, Board and Chairman. Thank you so much, and I wish a good health to you, wish to you. God bless to you.

That was the last question. I now hand over the meeting to the Chairman for further proceedings. Over to you, sir.

Thank you for all the questions. Now I request to see Suresh Iyer, MD and CEO, to respond to all the questions on operations.

Thank you to all the shareholders, first of all, for the kind words that all of you have expressed and for the support that you have shown to the management and to the Board and to the company all these years. I'll take one by one the questions that are there, and some of them are repeat. So we will not repeat -- I'll not repeat the answers to each question every time. The first question was from Mr. Santosh Kumar Saraf, [Foreign Language] your first question was on CSR expenses and why it has not been completely utilized? So we have about INR 1.17 crore out of the last year's expenses which has not been utilized because these projects are ongoing projects that which have been sanctioned. And as and when the progress happens in these projects, we will be sanctioning them. So there is a small amount of INR 1.17 crores left as of now. which also will be completely released before 30th of September. So we are on course for that. And as per the guidelines also, we have a 3-year tenure up to which we can complete the expenses after the -- from the date of the sanction. You have also asked for the details of the growth. It is already mentioned that our growth has -- we have had a growth of -- in a loan book of 18% last year. And in a year, normally, we are disbursing about 51,000 additional loans that we are disbursing in a year. So that is the second question that you have mentioned. You have also mentioned about the female staff trend, which is 24%, which also we are looking into. Next question was from Mr. Shastri, Sir, you had mentioned about the number of branches being higher in Tamil Nadu mind First of all, let me just clarify that we have 32 branches in the state of Karnataka as against the 23 that you mentioned. So actually, we have a higher number of branches in Karnataka. As for the growth that you mentioned, in fact, both the states are very high-growth states and among the -- and are in the top 5 states in terms of the growth potential that the country is seeing in terms of housing. So we have a good presence, both in Tamil Nadu as well as Karnataka. And about 27% of the company's business is coming from the state of Karnataka. So out of the total loan book, if you see 27% is coming from Karnataka, and we have 32 branches in Karnataka. You also sought an explanation regarding what is the difference between the satellite offices. Actually, 193 are the number of branches where we have a full-fledged team and the sanctioning of loans also happens. The satellite office is additional 12 that we are having. Our one-man branch is from where the business is sourced, but the loans are eventually booked in the system in the parent branch, which is a part of the 193. You had also mentioned about the NPA. Sir, I would like to clarify that the NPA has actually gone down. It has gone down from 0.64% to 0.55% in the last year. So I think that was also clarified by the next shareholder speaker that actually, the NPA percentage has gone down from 0.64% to 0.55%, it is not an increase actually in the gross NPA level. And the net NPA has also come down from 0.30% to 0.26%. Sir, you had also mentioned about the deposit raising. Presently, if you would be aware that the deposit rates last year actually on the higher side, and we had other opportunities to raise lower-cost borrowing from the NHB and from the -- from the banks. That is why we have slightly tried to keep the cost -- interest costs low. The third speaker. Sir Pathak, you had a lot -- some questions about the capital adequacy has gone down. Cost of borrowing has gone up, finance cost is higher. Sir, basically, it's -- we are in the finance business so obviously, our raw material is financed. It is the -- the money itself. So we have to keep on borrowing so that we can lend also further. So to that extent, on the absolute value, it will always keep going up. However, what is more important is that we maintain the spread, and we maintained that the net interest income and the net interest margin also is steady and keeps growing. And that you would see, it has happened. And that is why the profits have also been going up. So just a clarification on that. You have suggested about growth in other states. We are definitely looking at growth in terms of our branch -- branch network. We are presently having 205 branches. So we are looking at about 15 branches in the current year. You had also sought about the -- you had also mentioned about the opportunities that are there in the Pradhan Mantri Awas Yojana and the CLSS. We are very much part of this. In fact, we have been a very large contributor or beneficiary of these 2 schemes, and we have a lot of customers that benefited from this. And wherever possible, as long as the CLSS scheme was on, we have tried to give the benefit to the maximum number of customers under this scheme. The next speaker, sir -- Mr. [ Shah ]. Sir, thank you for all for the detailed analysis that you did on the financials. We thank you for taking so much interest in the financials, sir. You have mentioned about the difference between NBFCs and banks. Obviously, sir, the NBFCs also have a large role to play, and the banks are the primary lenders and the NBFCs also have a large role to play. So that is there. And thank you for all the analysis and the detailed feedback given, sir. Chopra jee, your questions -- thank you for joining from Ghaziabad, sir. Your questions, you had mentioned all of them have been taken care. So no additional questions. I think all of them are answered. Bharat Raj jee, you had asked about the expansion in the Northeastern states in Jammu and Kashmir. Sir, we are looking at 15 additional branches during the year, of which we are looking at 2 branches in the East to start with. Instead of going on a hop and skip kind of a model, we will be going on a [ contiguous ] growth model. So once we establish ourselves in the East in Bengal and all, then we'll look at taking a step further to the Northeast, but we do have plans to add a couple of branches in the East also this year. Mr. Galata jee, I'm sorry, we could not entirely hear through your questions. But the first question was clear, and you suggested about NCDs for retail investors as well. We have taken note of that, sir. Abhishek jee and Mr. Jochen, thank you for your feedback. You had inquired about the how the business has been affected during the COVID period. So there were some impact during the COVID period where business was impacted and movement and construction activities were impacted. But now everything has come back to normal. In fact, the housing market has started growing and is back to the pre-COVID levels now. We do have a small portfolio of restructured book, which was also mentioned during -- and which is also covered there which is [ now ] coming out of the restructured. So the government-sponsored COVID restructuring program was also offered to our customers, and we tried to help our customers as much as possible to go through this COVID period. Mr. Mani Sundaram, sir, thank you for your compliments on the annual report. You have also asked about the expansion plan. I think that is already covered. We are looking at an expansion of 15 branches during the year. And we've also taken note of your other suggestions and points about the expenses and all those things. We are working on it. Incidentally, I'd just like to share that the cost to income ratio has actually come down during the year. So while the absolute cost, which will, as an inflationary trend keep going up, the cost-to-income ratio has come down to below 17% during the year. The last speaker, Mr. Gundaluru Redeppa jee, you did mention Andhra Pradesh being a new state and the possibilities out there. We would like to just share that we do have about 10 branches there in -- we have in Andhra Pradesh. And we have taken [ note ] of this new additional district that has been created, and we will definitely look at the opportunity to consider that. So I think those are the things. Other things about the expenses, costs coming down and all, we have taken note of this thing. And as management, we will definitely try to work on the -- on continuing this growth trajectory and keeping our expenses low and our NPAs also low. So I think I have covered most of the questions.

Over to Chairman, sir, for his closing note.

All the items of business as per the notice of 36th Annual General Meeting have been duly discussed. As mentioned earlier, the e-voting facility will continue to be available for 30 minutes after the conclusion of the meeting. Shri K N Nagesha Rao, scrutinizer will provide his report within the prescribed period. And I hereby authorize the Managing Director to declare the results of voting and place the results on the website of the company. The resolutions as set forth in the notice shall be deemed to be passed today subject to receipt of requisite number of votes. I now declare the proceedings of the Annual General Meeting as completed. On behalf of the Board of Directors and management of Can Fin Homes Limited, I convey our sincere thanks to all the members for participating in this meeting. Please stay healthy, stay safe and take care. Thank you very much. Have a good day.

I request the members who have not yet cast their votes to exercise your votes now by using remote e-voting facility through NSDL, CDSL or through your DP within the next 30 minutes. Thank you. [Voting]

The time for e-voting has elapsed. And members who are participating in the Annual General Meeting have been given adequate time and opportunity to vote at the AGM. And this concludes the proceedings of the AGM. Thank you all for participating in the AGM and e-voting.