India Shelter Finance Corporation Limited ($INDIASHLTR)

Ladies and gentlemen, good day, and welcome to India Shelter Q4 FY '26 Earnings Conference Call hosted by ICICI Securities Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Renish Bhuva from ICICI Securities Limited. Thank you, and over to you, sir.

Thank you, [ Brad ]. Good morning, everyone. Welcome to India Shelter Q4 FY '26 Earnings Call. On behalf of ICICI Securities, I would like to thank India Shelter management team for giving us the opportunity to hold this call. Today, we have with us the entire top management team of the India Shelter, represented by Mr. Rupinder Singh MD and CEO; Mr. Ashish Gupta, CFO; Mr. Rahul Rajagopalan, Head, Investor Relations. I will now hand over the call to Rupinderji for his opening remarks, and then we'll open the floor for Q&A. Over to you, sir.

Thank you, Rajeshji. Good morning, everyone. On behalf of the company, I extend a warm welcome to all of you. Thank you for joining us on our tenth earnings call. Yes, last 10 quarters have been satisfying in terms of our journey or testing particularly. Before we discuss our quarterly and annual performance, let me briefly touch upon the broader macroeconomic environment, the operating landscape and certain of the strategic parties shaping our businesses. For the past year, the Indian economy has colored to demonstrate resilient despite an increasing uncertainity globally and domestic backlog. Global markets have been impacted by geological tensions due to the ongoing war, supply chain disruptions and slowing growth across other technology. Ongoing geopolitical uncertainty and volatility in commodity markets have also taken pressure on household spending factors and overall consumer sentiments. On the domestic side, rural and sent urban markets have faced temporary state from uneven and a normal monsoon patents across other regions, impacting agriculture cash flows and informal income segments. Recent LPG supply disruptions and related availability issues in some markets created short-term operating challenges for households and small businesses. That said, India continues to remain one of the fastest-growing major economies supported by strong domestic consumption, infrastructure network, formulation of credit and the long-term structural demand for housing. At a border level, several high-frequency indicators continue to reflect the underlying strength of the economy. Life GST collection has remained robust, consistently averaging around INR 1.7 lakh crores to INR 1.8 lakh crores per month, indicating sustained formalization and consumption momentum. Digital payment quantitute scale rapidly with U.K. transactions now exceeding INR 18 lakh crores to INR 20 lakh crores monthly, reflecting deepening financial inclusion and formulation across urban as well as semi open markets. In addition system, plate growth remains healthy, supported by demand across the retail segment, including housing fracs. These trends provide a support for sustained economic activities and reinforce confidence in long-term prospects. In certain environment, the key differentiators remain prudent underwriting, strong collections, granule market expansions and consistent focus on return ratios rather than growth alone. I'm pleased to share that we have delivered another year of strong and consistent performance with significant milestone in this financial year. Like we crossed [ INR 10,000 crores ] a year in this financial year. We crossed 300 branches in existing geographies. And this year's consistent delivery of ROE above 17%, annual profitability gross INR 500 crores for the company. [indiscernible] growth remains in a guided region with the EM growth growing at 29% year-on-year to INR 11,044 crores in quarter 4 financial '26 for the first time our disbursement cross INR 1,000 crores. In this quarter, we added 6 new branches. And for the year, we have added 41 branches in line with our branch expansion strategy operating 40 to 45 branches each year. On asset quality metrics, [indiscernible] has improved by 100 bps quarter-on-quarter to 4%. Gross Stage 3 improved by 29 bps quarter-on-quarter to 1.2% and net Stage 3 improved further by 23 bps to 0.9%. On profitability metrics, PAT for the quarter came at INR 138 crores, registering a growth of 27% year-on-year and 11% quarter-on-quarter. Return on equity further improved to 17.6% in this quarter. Our network now stands at INR 3,198 crores. On that note, let me share the guidance for coming times. Branch addition of around 40 to 45 for the year, maintaining the spread of more than 6% in the medium pattern. Credit costs will remain between 4 to 50 bps, loan growth of 25% to 30% for next 3 years with a clear goal of reaching INR 30,000 crores AUM by 2030. Now I would like to hand over the call to Ashishji, our CFO, who'll take you through the financial metrics. Over to you.

Thanks, Rupinderji. Good morning, friends. Let me take you through key financial numbers. We have ended FY '26 with AUM of more than INR 11,000 crores. Year-on-year growth in EU 9% quarter-on-quarter growth is 7%. Our portfolio yield is 14.8%, down by 10 basis points year-on-year basis. Our disbursement yield in Q4 was 14.6%. Our bucket cost of fund is 8.2%, while our marginal core fund in Q4 was 7.9%. Thus our margin at bucket level and incremental level are well above our guided level of 6%. We had a [indiscernible] INR 378 crores from National Housing in Q4 at 7.5%. And still, we have a balance of more than INR 300 crores for drawdown in Q1. Our borrowing profile continued to be diversified with more than 30 counterparties. Share of NHB funding is stable at 15%. Average borrowing tenure is more than 8 years. Net interest income per quarter is up by 31% year-on-year on the back of strong growth in our AUM and improvement in spreads. Coming to OpEx. Our year-on-year growth in OpEx is 26%, which is lower than the growth in total. Same is resulting in better cost ratios. OpEx to EM for the quarter and year is down by 20 basis points year-on-year, in line with our guidance. Cost to income for the quarter and year is at 36%, down by about 100 basis points year-on-year. On asset quality side, Stage 3 is at 1.2%, down by [indiscernible] basis point quarter-on-quarter. ECR for Stage 3 asset is stable at 25%. Our total ECL is INR 87 crores against the [indiscernible]. Considering overall macroeconomic environment, we have operate management overlay of additional 2% provision on stage sets. Same has impacted our cost [indiscernible] Q4. Including this are costs for the quarter and year is 30 basis points and 50 basis points, respectively, in line with our guidance for medium term. BT out for the year is down to 4.5%, down by about 80 basis points year-on-year. Our focus data-driven approach of customer retention is helping us to contain PT even in a declining interest scenario. On interest rate, we have been able to bring down the percentage of fixed rate folded by real rate liabilities from about 33% in March '24 to about 8% this year. We are committed to further bring this down to about 5% in FY '27. On liquidity side, we are comfortably placed in liquidity of more than INR 600 crores and undrawn sanction INR 1,400 crores. Our ALM is positive across all the buckets. With this, I conclude, and now we can open the floor for Q&A.

[Operator Instructions] The first question is from the line of Adityapal from MSA Capital Partners.

Congratulations, great performance, delivered whatever all commented last quarter. Just wanted to know how are we looking at things on the ground because there's so much news on shortages. Is it impacting credit behavior because of the negative news that is going on?

So I think last year was the year we started with the a war, with India, Pakistan war and ended with a war again, that was again in the Middle East, which we all know, has aborted. And typically Middle East war has led to the shortage, which we're all aware of. So keeping those things, we [indiscernible] observing the trends typically in quite a few markets. with the restaurant commercial air supply is are disrupted, which everyone knows around that piece. Now we see for the set of customers we are there, instantly, we don't feel that there is any impact in terms of the various particularly. But still we feel it's a watch for situation basically. Because within a month, you can't find any particular pattern coming around that. So a different set of news which are coming from globally and sim also keep coming up and government push whatever they are trying to do, they are trying to do whatever they can do in certain circumstances. But as of now, typically, as we close the March month, we didn't find much of the difficulty in terms of customers. But yes, it's a cautious environment. This quarter is going to play out in terms of that piece. So we are constantly in touch with the ground and seeing how the things can be taken care of in kind of any situation that is there. Hopefully, the way the news are coming up and down, you might have today morning news also where some proposals are coming on the table. If things work out, it can be wonderful for everyone around. But yes, we have to keep our fingers crossed and have a on the market.

if you ask me that there is some [indiscernible] or something happened in terms of delinquency, I would say in today, we don't have answer for that piece. Things look okay month of March.

[indiscernible].

[indiscernible].

The next question is from the line of Kunal Shah from Citigroup.

It will be 25 to 25 to 30-odd percent next year. with again a goal to reach like INR 300-odd crores to INR 1,000, that suggest like another like 28%, 29% over the next 3 years. So in this, what is the kind of disbursement growth that we are looking at how we should see it stacking up in the last 2 quarters, it's been at 11-odd percent. So now what's the outlook on that?

So the reason for what we are finding the environment to be at portion, we don't want to play on the simply into 1 more that is the disbursement. This is a business which is more on the balance side, you have to be optimal although all aseptically. But yes, as we know these times are quite temporary, that's great. Our teams, our energy synergies are lying very well. In fact, our logs are increasingly rate. But our business rule Indian, the credit India, that has to function that hasn't tightened up purposely keeping mind all the specs there. So we've been a little caution in that way. That is why we are talking about in a range bound of 25 to 30. We are not saying it's going to 25. We only look forward that it should be cutting the wrong whatever around the tone on that piece. So that is our thought process particularly. But in the environment, we don't want to be something ignoring those aspects. That is the way. Having said so, as we progress in our journey. So as the time came back in the conducive or, I think we should pick up focus our branch brand expansion model that follow to remain that piece our objective of getting a productivity that has to be remained continue in that piece and our focus into these 2 products that's contributing in that piece. So we are positive that in the long run that we will be able to maintain this INR 30,000 crores. So even if we maintain this 27%, 28% of growth for the next 3, 4 years, we'll be able to achieve that INR 30,000 crores, just to give an idea of that side......

Yes, 27 to 28-odd percent [indiscernible] suggest that we can reach [ INR 30,000-odd crores ].

And that is early the 2 years back, we came with the strategy, why were we want to be 2030. That looks very well aligned even in today's and also, and we are quite confident about that.

Yes. Sir, in terms of region rates, if you can highlight how much could be the -- in terms of rejection, how much it would have gone -- maybe gone up compared to that of maybe log-in. So overall, maybe disbursements to log-in ratio, how it would have changed that would also be helpful. And overall, any particular number of disbursement growth that we are targeting over maybe in the medium term? Next 12 to 4 months.

Absolutely. So if you talk about log in to [ Sensia ] ratio, during normal days, it used to be around 55%, 50-ish. That the range depends upon seasonal collate and how the business is prospecting in that front. Today, that is less than 5%. It is -- it has even bottomed down to the level of 40% to 43%. But that's all what the PRE works around give the right input into having any toward a given understanding. That is the business we rely on. So it is that those loans are going up, we curtail that piece to be a little conservative on that side. So that 43%, 45%, which has in month of this quarter particularly has slightly each to 45%, 47%. This is an internal piece what we ported. But in a novel comstaces,it should be around -- so I think even if we are able to disburse say, 20% of growth in terms of disbursement year, we'll be able to achieve the numbers that we are talking about in terms of 8% growth.

Got it. Perfect. And the other question is on co-lending. So I believe, because of the change in the regulations, we have hardly seen any co-lending, but how do we pursue it now? When do we coming back, how long would it take? Because again, like coal lending growth was so maybe that's something which we were targeting to scale it up. So if you can just provide the outlook on that, yes.

Kunalji, we -- from beginning, we never had a very clear focus on a co-lending particularly. In 2, 2.5 years of our business around co-lending, we created a book size of around INR 450 crores, [ INR 460 crores ] of overall piece that we have it, which is down approximately 4% of our business. And the purpose was basically just to try to test a new set of products, what we can do that piece. And we felt that this is also with Kenyan time, we should be very well adapted to acceptive to that piece. But in typical this scenario, what we see that between CLM 1, 2 models, we are adopted CRM2 to try that piece. For CLM, I think we have to wait some more time -- if you ask me the time lines, it will be difficult at this culture. But we are closely discussing with few of the institution bank on that side, how it can be taken to the next level. in our plan, in our budget, we are not including -- included any of the numbers, which is around the co-lending. It is again going to be a testing piece for some time before we conclude to the real directional business particularly. So basically for it is not something which we are too earlier on at all.

The next question is from the line of Shubhranshu Mishra from PhillipCapital.

So the first question is, what is the split of the disbursement in FY '26 between LAP and home loan? And how do we see it growing in 27 each if we can speak about each of the parts. Second is that when I look at the LAP proportion that's gone up from, say, 43% to 44% versus home loans. Although the home loans, which is on book is much higher. I think that has more to do with the [ PBC ]. How are you looking at the demand in the -- and if you can split this into 2 or 3 parts versus the policy help from CMS [indiscernible]. Second is the actual demand, the actual containment capability of the demographics of the customers that we cater to. And as the supply from various developers, if they still find enough margins to build these kind of affordable houses?

Yes. Thank you, Shubhranshuji. For our business, we first and foremost our PBC requirement and as we met fully PD requirement, then we also realize that we have to maintain other optics, which is including your yields, your output, your productivity. So 56%, 57% or 1% at sales. There's nothing something which we can -- we can read between the lines that there's some certain changes which has come up around that piece. So for us, the basic principal remains same, important. And that is why we -- our focus remains particularly for the thing that has to work on. So as an earlier question, someone asked why we that, that has been the case also. And particularly here, is 59%, 56%. It doesn't matter in much of the way till the time we are maintaining all the optics because the market same way of sourcing it, almost same kind of customer will not worry in that town, and it doesn't give an idea that there is some out trend in terms of housing uptake or housing coming in particular. That is not the case at all. Our proactive is largely in a self construction and purchase cases, which we focus on. We don't have a tie to the builders in terms of that affordable segment builders are something unless if they are not supplying in markets, so our demand is going to affect. For me, the markets of PSD extremely important, whether construction, self-construction, sale purchase that happens. That is my major portfolio in that most of the portfolio into 1 housing. So that still is in cash for the normal standards than what we see in the last few years. Obviously, we have an another may be the other aspects, but we don't find things around that side. example, you see the log-in ratio, the log-in numbers that is continue to pick up basically. Otherwise, we should be a little right across that side. And those factors to keep in mind. So I don't think that because of those factors that person is not supplying or something that is not a case in part side of it.

Yes, I do keep looking for clearing those things, particularly that because of builder supplier, there may be some disruption in some of the markets, but we are not available to those large markets of Tier 1 or Tier 2 because I had a builder particularly. We are very well segregated focus into those renal markets where cell construction and purchase it is a cumulating it.

Right. Did you tempt straight of the disbursement for LAP and [indiscernible] how do you see each portion growing in '27?

[indiscernible] slightly gone up because in quarter 2, quarter 3, we were a little more focused on the keeping in mind again -- and going forward, we continue to feel that there should not be much of a difference between LAP and all in financial year '27 also. That's going to remain the same ratio.

What is the ratio is what I'm trying to ask? What that's possibly not in -- and I'm asking what is the mature between LAP and HL disbursement?

56%, 57% is HL and remaining is LAP.

The next question is from the line of Mayank Mistry from Antique Stockbroking.

Congrats on a good quarter. Sir, I have 2 questions. First of all, as you already guided for 40 to 45 branches each year, And your CapEx to AUM currently lies at around 3.9%. So what is the normal run rate we can expect? I mean what are the efforts you are currently putting because across the prior it seems like a higher number? And secondly, on the asset positive front, Yes. So the outcome maingate was significantly better. So in last quarter, we had led few slippages to take surprise action on CMB accounts. So this quarter seems a good improvement over that. And even will be by the credit cost this time. So where is this improvement come from? Has the recoveries come organically from these accounts once they moved into Stage 3? Or any other -- or maybe some write-offs from debt these [indiscernible].

So there are 2 set of questions you're asking. The first is of OpEx to AUM particularly. So we feel there is always a scope of improvement. And last 4 to 5 years, we've this trend improving year-on-year. So the first productive, which everyone was asking, when you were going to build that less than 4%. This year, we are tracking that piece. What is average every year, it should come down by 15 to 20 bps and things look very well on track. So early in the 40, 45 branches, we were opening on a smaller base. Now on the base of 37 cases which we exist today, the 45% is hardly 13%, 14%, which is to be 18,3% a few years back, basically. So that is 1 of the aspects which is going to support in our journey typically on the site. Yes, automotive productivity also picks up as your AUM is quickly going on. And I believe that getting those 15 to 20 bps reduction in OpEx to AUM is not a traded dark if we have to think to iron that is. That's a bound to happen particularly. Second question, which was more on a credit cost and how does E&Ps not come off. So I think stutter NPA level goes up at certain level, which in rich was in quarter 2 particularly. Your at actual start coming into picture, and that is some time of 6 to 8 months. And as that reach that level, then you will realize that your reduction are happening. That is a good part duty of this product, which is a mortgage product and housing product particularly. The tool which has been given, provided by the ecosystem to government that helps very well into that side. So most of these resorts that is purely on basis of that piece and our organic form.

Okay, sir. And one more question. I think this was partially answered on the disbursement growth rate of what is disbursement growth rate that we expect. But if we even consider around 15% to 20% of the nursing then if prepayment will move have to go down significantly, right? So how are you planning to grow at 5% to 7% sequentially we get obi quarterly? And timing on the disbursements, I would just like to know your strategy on how do you want to retain your customers and lower your BPO so that are proven [indiscernible].

Thankfully, our [indiscernible] 3, 4 years. [indiscernible]. That is also the case because business they try to be focused more on [indiscernible] basically. But having said so, the system that we feel that effective enough to curtail the customer in terms of engaging and ensuring customer remain [indiscernible].

The next question is from the line of Varun Palacharla from Kotak Securities.

Long-term growth guidance that you have given. So are you seeing any.....

I'm sorry to interrupt, Varun. Your voice is muffled. We are losing your voice. Can you use your handset mode, please?

I was just asking regarding the long-term growth that you've given. So at INR 30,000 crore number, it's almost higher than what the largest affordable housing companies today stand at. So are we finding any pockets of geographies where there's lower competition where we are expecting to grow faster? Or is there some thing like other than the branch expansion, 40, 50 branches which have already been doing, something which drives this growth, like shift in ticket sizes, anything else which can explain this? Another thing was regarding. So we've seen, I think, a slight expansion of margins, largely cost of borrowings may not explain the full extent of it. Is there any difference in yields as well that we are seeing.

So recipe around in terms of your market, how you to grow. It cannot be one single direction, particularly in terms of opening branches or meeting the competition. We exist into the same market where the rest of the folks are doing it. Our largest market continue to remain Rajasthan and most of our competition, everyone knows relies in terms of affordable housing. And we are very diligently strongly maintaining our numbers around that. is spread across 15 states. At this scale, at this level, very few companies have experimented to go into those markets at all. With the maturity is coming, that prudency is coming in terms of underwriting as we keep creating our own in these kind of states. So today, if there is some kind of disruption, for example, if Karnataka is disruption in South, then definitely AP, Telangana and Tamil Nadu is there to support. Same way, if there is some error which happen in some markets like MP, Rajasthan, UP and Gujarat is there to support. So that distribution is very well spread and that's 4 branches. Second on which we want to focus on employees that has to keep improving on a focus around that same set of [indiscernible], disbursing those numbers in single digit. Today, we are disbursing some INR 20 crores to INR 30 crores of digital. we believe this digital piece. I think this is something which is again going to that to come out in terms of [indiscernible], which is going to reach by 2030 up to 50 branches and kind of [indiscernible].

Yes. But on the margins, if you look at the reported number, it's kind of expand 10 to 15 basis points. So where is it [indiscernible].

So first is always to maintain the spread which is beyond 6%. Thankfully, this is in terms of your cost of [indiscernible], are committed to maintain the spread to decent margins that we look into that and to maintain the journey for next few years. Obviously, to maintain those margins you're talking about [indiscernible].

[indiscernible].

The next question is from the line of Meghna Luthra from InCred Equities.

[indiscernible] indicated that we expect to remain stable and growth to remain strong, there are a lot of conversations around the sharp rise in competition. And specifically, is there any state or any pockets that we are seeing a sharp rise in competition? And can you give some color which can impact our growth and which kind of lenders are private banks, NBFC.

Yes. Every market kind of competition, not now but from basically. So -- but the players remain serious. If you see irrespective competition going and coming and going back basically, the number of set of players who are consistent and remain there from the last 5, 7, -- so any new player which is entering, they have their own hurdles around that piece to that market. There may be a small temporary which someone may get because of the other. But otherwise, I don't think this kind of business, which is considered to be very bold but very complex in that terms has to get impact because of some competition. We are operating in all the competitive markets, which is considered to be competitive, not now but from last many years particularly and performance coming around. That is not a point of concern. It is only your ability to execute in those markets that matters. And I think not only us but any serious player, they know their way how to play in those markets in terms of competition also. So it is not a point of concern at all. Every market, every region have a certain set of dominating players here and there. But that is always which is [indiscernible] not a point of worry.

The next question is from the line of Miten Lathia from Fractal Capital.

We have grown almost 3x in the last 4 years, yet our [indiscernible] continues to be 30-plus. Is that a very conscious thing? Or how should one really think about it going forward?

So going forward, Rajasthan concentration is going down by virtue of other geographies mean than [indiscernible], line, maybe 25%, 26% what we look for. And other states [indiscernible]

Commendable on the specific measures that you...

I think the team is able to put together in engaging the customer. Today, we have a strong digital presence connect with the customer and [indiscernible] using their understanding whether they are looking out for any fresh loan or some reduction, that engagement is helping us out. The app, the app customer app, which have now almost all the customers which is on our board are available on this application. The engagement, the notifications as well as central team, which is very well working with engaging with this customer that is helping us out.

Next question is from the line of Prithviraj Patel from Investec.

I just had one question on the PVC level because what I see is the home loan share [indiscernible].

[indiscernible].

The next question is from the line of [indiscernible].

Questions. One is a bookkeeping one and one is a more strategic question. So you want to grow in the vicinity of 25% to 30%...

I think we would like to go to the level of around 4.5x basically be thinking on that piece. So journeys part. And our objective is to be looking a little conservative in terms of the cautionary. But as the things in a form, we have to take it up very fast. That is always our thought. So I think as we reach around 4.5x in terms of leverage, we'll be thinking about how to take it to the next level, whether to raise [indiscernible].

[indiscernible] I would say the entirety of FY '26, we've seen a good growth in the 5 lakh bucket, and I would say 5 lakh bucket in terms of ticket size. But yet our average ticket size that we show in our presentation that has not budged above INR 10 lakhs over the last, say, [indiscernible].

The next question is from the line of [ Satyam Kumar ] from JM Group.

Bookkeeping question. Just wanted to understand like what percentage of your LAP book is backed by SORP kind of coal, number one? And number two, just wanted to understand like as you guided an AUM growth of around 25% to 30% going forward. And you said it will be anywhere around 20%. So just wanted to understand how this gap will bridge like what will be the ratio or how these numbers have historically been. So if you can throw some color on...

Is all about the book [indiscernible]. But that doesn't mean 20% forever. That is a lot of scope of improvement in that we are quite optimist in terms of product and branch. So this is a cost that we are talking a little conservative that piece. But as we [indiscernible].

So .just a follow-up just for FY '27, if I look at, just wanted to understand the gap between disbursement and AUM growth. Just for FY '27, if we look, say, for example, our book is growing around 25%, 27%, 28%, whatever it is and disbursement is growing at 20-odd percent. So how this gap between disbursement and AUM growth will be bridged new loans is growing at 20% book will grow at 27%. Just wanted to understand from you how this will be bridged...

So first and foremost, the percent used [indiscernible].

The next question is from the line of Sonal Gandhi from Asian Market Securities.

[indiscernible].

[indiscernible].

The next question is from the line of Kunal Shah from Citigroup.

[indiscernible] There and the entire [indiscernible] moving up from INR 10 crores to INR 15 crores. That's primarily the management overlay?

On the overall macro, and we have also gone through the [indiscernible] 1.5% for home loan and 25% for LAP loan should be the minimum threshold for [indiscernible] 2, Tier 3 geographies, it is good to keep a good buffer on Stage 2 assets.

Okay. So this was only in Stage 2?

Yes. Yes.

Okay. And do we plan to create further overlay we are maybe given that now it's almost like more than 5% coverage on this. So would there be some increase or catch-up in the overlay getting into FY '27 and your guidance of 40 to 50-odd basis points, does it take into account the overlay buffer?

So frankly, we have reached a stage where we were waiting for the RBI guidelines on PC. So we have got those though they are not applicable to us. And we have created a [indiscernible] kept that kind of threshold historically. So now we have built those buffers in case future allow us credit regime -- but frankly, at this point of time, we don't have any plans to further stack up the buffers.

Sure, sure. And just one more clarification on the asset and on the liability side in terms of the mix of fixed and floating. So last quarter, I think you indicated 84% of the borrowing was floating. This time, I heard maybe you mentioned like fixed rate has come down to 8-odd percent and you plan to bring it down to 5-odd percent. Was that related to the borrowing. And last time you indicated like almost 85% of the AUM was fixed. I think this time you commented almost like 65% to 70-odd percent is fixed. So if you can just clarify in terms of both on the asset and on the liability side, how much is the fixed versus floating, yes?

Sure. Let me reiterate how the overall AUM stacked up in terms of interest rate reset. So about 15% of the AUM is there, which is variable rate there, which is where the interest rate is [indiscernible] years and variable subsequently. Then about 48% of the book is there, which is the fixed rate book altogether. So if you look at how we are funding this fixed rate book of 48% out of 48%, about 25% is getting funded through our equity and remaining 17% is getting funded through our fixed rate borrowings that we have on our book. Then remaining percentage is at about 7%, 8%, which is fixed rate book, which is funded by variable rate [indiscernible].

That was the last question for today. I would now like to hand the conference over to the management for closing remarks.

Thank you, everyone, for taking your valuable time for attending our earnings call. An audio recording and the transcript of this call will be uploaded on our website in due course. Looking forward to host you all in the next quarter. If you have any further questions or require additional information, please feel free to reach us out. Thank you so much, and have a great day. Thank you.

Thank you very much. On behalf of ICICI Securities Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.