PNB Housing Finance Limited (PNBHOUSING) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the PNB Housing Finance Limited Q3 and 9 Months FY '20/'21 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Ms. Deepika Gupta Padhi. Thank you, and over to you, ma'am.

Thank you, Karan. Good evening, and welcome, everyone. We are here to discuss PNB Housing Finance Q3 and 9 Months Financial Year 2021 results. You must have seen our business and financial numbers in the presentation and the press release shared with the Indian Stock Exchanges and also available on our website. With me, we have our management team presented by Mr. Hardayal Prasad, Managing Director; and CEO; Mr. Ajay Gupta, Executive Director and Chief Credit Officer; Mr. Kapish Jain, Chief Financial Officer; Mr. Anshul Bhargava, Chief People Officer; Mr. Nitant Desai, Chief Centralized Operation and Technology Officer; Mr. Sanjay Jain, Company Secretary and Head of Compliance; Mr. Rajan Suri, Business Head, Retail; and Mr. Jatul Anand, Credit Head, Retail. We will begin this call with the performance update by the Managing Director and CEO, followed by an interactive Q&A session. Please note, this call may contain forward-looking statements which exemplify our judgment and future expectations concerning the development of our business. These forward-looking statements involve risks and uncertainties that may cause actual developments and results to differ materially from our expectations. PNB Housing Finance undertakes no obligation to publicly revise any forward-looking statements to reflect future events or circumstances. A detailed disclaimer is on Slide 34 of the investor presentation. With that, I will now hand over the call to Mr. Hardayal Prasad. Over to you, sir.

Thank you, Deepika, and thank you, Karan, for bringing all of us together. Good evening, everyone, and welcome to our quarter 3- and 9-month financial results for the financial year 2021. On behalf of the company, I extend a very warm welcome to all of you. Thank you for joining us in the call today, and I hope that all you and your families are safe and healthy and taking due precautions from COVID. Today, before I embark upon the numbers, the financial numbers that you already have, I will start with our strategic priorities journey that we are embarking upon. In this regard, I invoke you to go through our investor presentation that is shared with the stock exchanges and now also uploaded on the company website, which will give clearly the journey that we are setting for ourselves. I now take this opportunity to take you through the new agenda in 3 major areas, which are strengthening the core, driving efficiency and accelerating the growth which are the fulcrum of this new agenda that we are setting for ourselves. The triumvirate consists of 7 focus areas that will help grow business, strengthen risk management, increase profits and create value for all of you as well as the stakeholders. The company over the last few months have added members in its team either through internal movement or external hires and implemented long-term retention program for performers. For capital conservation, we have deleveraged our balance sheet with gearing at 7.33x. We have improved our CRAR to 20.06% as per IndAS as on December '20 and are well above the regulatory capital requirements. Further on the capital raise, while the RBI decision is awaited by the PNB, the company approached its board to maintain optionality and the Board of the company has approved the addition of QIP mode in the capital raise plan in addition to rights and preferential. The company will prepare accordingly by ensuring that we have access to adequate capital within the next few months. PNBHFL with the aid of advanced analytics and new age technologies will further strengthen its underwriting and collection processes and efficiencies. Considering the challenges faced by the real estate sector, we have created a remedial management group to focus upon the corporate accounts. The group actively engages with the developers and works on various resolution plans, including allowing last-mile funding, introducing new developers, inducting new developers, equity partners to complete projects, sale of additional collateral ready inventory to generate liquidity for the projects. While the strengthening of the core is important for the long-term growth of an organization, driving efficiency is critical to get profitability. In the last few months, we have undertaken measures towards cost optimization that helped in reducing our OpEx. With continuous focus on cost control strategies, we expect to maintain our cost-to-income ratio in the range of 15% to 17% and improved profitability. COVID-19 has changed the way we look at technology, and this is expected to stay. Considering the new normal and the feedback from various stakeholders, the company has enhanced its focus on digitization. The company will introduce new age technologies, which are artificial intelligence, machine learning and RPAs to drive volume, growth, and efficiencies. In the last 9 months, we have introduced Ace, our online sales platform and Homie, our sales chat bot to make customer buying journey personalized and engaging. We intend to integrate our applications for end-to-end journey, and we have many applications which are in islands and these applications, once they are integrated, will significantly improve the overall way of -- the way we work. We feel that after strengthening the core and driving efficiency within the system, we will witness accelerated growth. The Indian economy is reviving from the impact of COVID-19 pandemic and several positive steps by the government, which are higher income tax incentives for first-time buyers, reduction in stamp duty by certain state authorities, credit-linked subsidy schemes, allowing extension in project time lines under RERA, et cetera, will fuel the revival of the real estate sector. With our robust sales scalable hub-and-spoke model we will continue to leverage our expertise in the mass housing and merchant category. The company over time has created its niche in merchant categories wherein we hold a competitive edge over other mortgage players. We have also decided to focus on our retail lending, and therefore, we are rebalancing our portfolio mix and push for accelerated growth in profitable sectors where opportunities are many in our view. The company plans to enhance its focus on the affordable housing segment, including high-yielding Unnati segment which helps the yield and profits wherein we have built capabilities. The company has a Board approved policy on co-lending and is in advanced stage to enter co-lending arrangements with bank. To improve revenues, the company is exploring cross-sell and upsell opportunities, all of these will help in improving our revenue mix. The company has also embarked upon a transformational journey with global consulting firm to reengineer end-to-end processes from sourcing to closure, to increase efficiency, improve revenues and to look at all the processes. The measures undertaken by the company under the transformational agenda will help bring efficiency in operations, enhance productivity and augment growth to improve ROA and ROE. We feel that by strengthening our management team, which is pretty strong in terms of the mortgage lending, augmenting our capital base, reducing cost, improved risk management techniques, digitization, will help the company in the growth journey. With renewed focus on affordable housing, in particular, Unnati, high-quality sourcing, we will become competitive and profitable. The company is gearing itself towards profit and growth. You all have already seen the numbers -- the financial numbers, and I would not like to really take you through those numbers, I am sure that many of you would have now lot of questions to us towards that, and I would welcome them. But a few things I would like to actually explain to you what we have -- how the results have panned out. In the 9 months, affordable housing sales segment has contributed 43% of the individual housing loan disbursement and is at 40% of individual housing loans AUM as on December '20. To give the impetus we have added a senior internal resource to focus on affordable housing and created a separate affordable housing vertical within the Chief Sales Officer. The lending in this segment also helped in opening of various low borrowing avenues for the company because there are some advantages when we go out for borrowing. As on December '20, 79% of the corporate book is good, and 62% of out of that book is at 0 DPD. The company has seen recoveries in NPA book and resolution of 3 NPA accounts with 0 haircut. The SWAMIH fund has also recognized the benefits of conservative underwriting by the company in its corporate book due to the net surplus in projects and have identified 12 projects where they intend to fund. And these were recognized in front of the Government of India Secretary where many of the top Indian banks and PNB Housing Finance was also present, and it was recognized that the book was one of the most attractive from the SWAMIH point of view. We are reviewing the accounts and expect few accounts to be resolved through this route. As a prudent measure, we have made adequate provisions in the book and our total provision to total asset is at 3.47%. And the Stage 3 provision coverage ratio at 47% as on December '20. The life-to-date write-off by the company is 12 basis points under cumulative disbursements. The company has also done COVID-related modifications, which are allowed under the Reserve Bank of India regulatory framework of approximately INR 800 crore, which is around 1.25% of the loan assets. The company till date has disbursed around INR 130 crores under the ECLGS scheme in retail segment. These are some of the major steps that the company has taken. It has also done significant amount of looking at this cost of borrowing and have brought down the cost of borrowing significantly in this quarter by repaying the high cost. Let me also share you -- share some of the highlights -- financial highlights. Total revenue for the 9 months in financial year '21 is at INR 5,790 crores as compared to INR 6,358 crores for the 9 months of '20, registering a decline of 11%. The pre-provision operating profit for the 9 months of FY '21 reduced by 6% to INR 1,530 crores from INR 1,635 crore in FY '20. Profit after tax for the period is at INR 803 crore as against INR 888 crore in the 9 months. The return on assets for 9 months FY 2021 is 1.4%, and return on equity for 9 months is 12.8% on annualized basis on average gearing of 7.8x. With this, I would like to open the floor for question and answers. We have the whole management team sitting over there. I'd just like to remind that the management team has significant amount of mortgage experience in terms of what we are looking at and the way we are doing business. Thank you very much. I'm open to all questions and answers.

[Operator Instructions] The first question is from the line of Piran Engineer from Motilal Oswal.

Congrats on the quarter. I just want to refer to Slide 25 of your PPT wherein you've given details on yields and cost of funds, et cetera. I'm just trying to figure out how it is possible that our yield is higher in this quarter than it was 2 or 3 quarters back. Considering that none of the HSCs have reported stable or increasing yields and also considering the fact that overall interest rates and the economy has gone down, what really has led to such an outcome?

Kapish?

So Piran, one is that the securitization that we did, Piran, in -- over the last couple of years, in '18 and '19, the MCLR for these securitized books, they've done -- they've been done linked to MCLR, that will actually come down. And it has come down in the entire fiscal by around 61 basis points. That has also helped us in having higher earnings coming into the portfolio. And given that this book is out of that -- that book is not part of my loan book, but the income comes to my P&L has added to the incremental markup in my overall yield.

No, but Kapish, if I look at [Foreign Language], you all have given the spread with and without securitization...

Adjusting for the same, Piran, it's around 10.43.

Correct. And 2 quarters back, it was 10.23. So it's very counterintuitive that versus say 2 or 3 quarters that our yields are actually higher. So have we jacked up our rates in, say, last and...

Piran, if you remember, we did mention when we -- at the end of Q2 or Q1 as well that in the corporate book, somewhere around middle of quarter 1, we have increased our rate of interest on the entire book ranging from 1 to 1.25. The full effect of that, this came subsequently in quarter 1, and that's also added up in the yield going up.

Okay. So how should we think of just the yield number, say, over the next few quarters once the corporate book runs down, shouldn't this repriced maybe sharply to like 8%, 8.5%?

Piran, I would suggest that, obviously, in isolation, one just can't look into yield. What is also important for us to see how do I further also melt down my cost of borrowing to reach to that desired spread that is important for the firm. And that's precisely how we look into the entire portfolio. And we have given in the presentation as well, that we intend to look for a spread of around 2.1% to 2.3% from the retail portfolio.

Okay. Okay. And my next question is, what is our Stage 2 loan number?

What?

Stage 2 loan number.

Stage 2 loan number. We don't disclose Stage 1, 2, 3 separately. We do it annually between retail corporate, Stage 1, 2 and 3. So we will continue with that.

Okay. But any qualitative sort of flavor that you can give on? I mean the increase, would it be similar to the increase in pro forma GNPAs? Just some idea of how that would have trended?

Yes, see the thing is, RBI moratorium ended on 31st August. And thereafter, things are working up, the traction is taking place, but it is too short a period for large corporates and even for retail to recover from the pandemic and get back to original cash flows. So this has impacted both retail as well as corporates. There has been instance of job loss. There has been instance of salary cut in retail, business loss, cash flow impacted for self-employed retail customers and so is your corporate accounts. I would suggest wait for 1 more quarter, let things stabilize, then in March, we will come with a detailed Stage 1, 2, 3 breakup.

The next question is from the line of Kunal Khudania from Mirae Asset.

So sir, my question was on the corporate book front, like in the Slide #8, we have mentioned that around 62% of the book is 0 DPD. So if you could just provide some more color on the remaining book, how that 38% of the book is behaving right now?

So Kunal, 79% book is clean and green book, it is a good book. Out of this 62% is overall book with 0 DPD. Obviously, when there is large loans given and there may be cash mismatch -- temporary cash mismatch, et cetera, so there could be a delinquency, bucket 1, 2, 3, et cetera. So 8% of the book, the residual book I'm talking of after 79%, 8% book, we already know, the risk is certified, and it is sitting in our NPAs. 13% residual book, we are actively managing, monitoring. And some of these accounts have moved into pro forma NPA. And for rest, resolutions and for pro forma also, the resolution activities are going on.

The next question is from the line of Viral Shah from Crédit Suisse.

I have 2 questions. So you have given that basically your pro forma NPAs are 4.47%. Could you break that down into what is your pro forma NPA in the retail segment and on the corporate segment?

See as I mentioned, the retail and corporate breakup we give annually. So we will continue with the same process, and we will embark, we will segregate retail, corporate, Phase I, 2, 3 and come out, open the performance and how the book is stacking up in various stages.

Sir, but you actually gave the retail and the corporate breakup for the Stage 3 loans, which is your GNPA. My question is, you have given the pro forma GNPA on overall basis. If you could help give us the subsegment of the pro forma GNPA would help us to understand where the slippage is and expected losses could be coming from?

As I mentioned that pro forma GNPA is coming from all segments, service, self-employed, HL, LAP, and the retail corporate book. So I would suggest that wait for 2, 3 more months. In March, we will be giving a detailed deliberation on that. And out of INR 1,180 crore, let me also tell you that we have been able to resolve in 24, 25 days about INR 400-odd crores. So these cases have been rolled back, either 1 EMI or completely full amount has been collected. And there are some resolutions, which is taking place by way of COVID moratorium and other resolutions, which is taking place. So it is work in progress. I would suggest that if we wait for 2 more months, 3 more months, and with March numbers, we will be giving a dissected picture.

I think more importantly, if we look at it, 62% of the book with 0 DPD, I think that is very significant, and we have been able to work pretty hard after September after the moratorium was over, working with the builders to see to it that actually everything is repaid. I think that's very, very significant. Now all of us are aware that the industry is going through, and the economy is once in a century kind of an event. And therefore, the restructuring and the regulatory framework came in. So we have almost about 17% of the book where it has been invoked, but we have to complete the restructuring, which will be completed. This is all based on the cash flow and everything is being taken into account straight away, and we are not doing anything other than that. It's not just that it's being transferred. When there was no construction activity happening, there were no revenues that were being generated by any of the builders. And therefore, obviously, an extension of time will be required. The Ministry of Housing also came out with a suo moto decision of requesting all the state governments and the RERA Authority to extend the period by 6 months. All this has resulted into -- actually there is a little modification, then the extension in the time that are happening. In terms of the NPA and in terms of the stress book, we are really -- 9% of our stress book other than the NPA. It's something that we are working very, very hard to see to it that either we resolve them or some of it if it flows into the NPA. This can go either way depending on the way we are working with SWAMIH. We're working with on other fronts to ensure that these are gone. Within the NPA also we are actively working to resolve some accounts, and we are hopeful that the things go as we have planned and as per the discussions that we are having with all other builders and other players over there. We should be in a position to actually improve a little bit. But overall, I'm not giving actually any of the guidance where we will be. But I would like to reassure you that we are working pretty hard in terms of ensuring that the company has a solid handle over the corporate book. Remedial management growth helps tremendously in terms of structuring these kind of deals where you bring in new builders, so that these can be taken over or it moves out of the book, it is down sold and all those steps that are necessary to ensure that the book is improved significantly.

Okay, sir. I had one question. Could you give us an indication of the extent of restructuring?

I did mention to you in my opening remarks on that about INR 800 crores, we said that COVID-related modifications are approximately INR 800 crores, which is 1.25% of the loan assets. And secondly, that we have also disbursed almost about INR 130 crores under the ECLGS, where you can give it up to 20%, and that goes up to INR 100 crores -- to INR 500 crores of projects. There are a lot of things that we have done in terms of ensuring that these are taken care of.

The next question is from the line of Nidhesh Jain from Investec.

Sir, firstly, on the capital raise, if you can indicate some tentative timelines and the possible structure of the capital raise that you have thought about?

On August 19, we had -- the Board had approved that the company will actually explore possibility of raising the capital through rights and preferential. This was before -- and before that the PNB had approached Reserve Bank of India for permission to infuse equity into the company. Since they had actually asked that the equity infusion can take place either through rights issue or a preferential. We were awaiting permission from the Reserve Bank of India. The RBI decision is still awaited. While the PNB remains very, very hopeful that RBI approval in some form will come through. But in order to maintain optionality and ensure timely injection of capital, the Board in its meeting today approved addition of QIP mode in the capital raise plan in addition to rights and preferential subject to PNB's holding remaining above 27%. 26% is a minimum, but we need a little cushion over there. So the company is actually preparing itself accordingly based on today's deliberations to make a final decision on the fund raising mode in the next few months. And we also feel that going forward with this capital through the QIP or any other securities, the more that we would like, the way that we can do it, we definitely wouldn't be able to continue to grow in the medium term. And we also await, we are also very confident, and we are hopeful that PNB would be able to get its approval. Once that approval comes, we still can issue the rights and the preferential. So I think we have started the journey in terms of the fundraise. So all the little bit of doubt that was there, whether the company would be able to raise money, I think they've been reset today. The Board has very, very graciously allowed the company to go ahead with the fund raise. We will be putting in place -- in the next month we will be taking a call very quickly in terms of how we are going to raise it and what amount that we will be raising.

Sure, sir. Second sir, if you can just give some color on the retail book on pro forma basis in terms of GNPA, that would be very useful? We have already made 3.5% of loan asset as provision, which looks -- which may be one of the highest among HFCs. But I see that we don't have any data on the asset quality, then it will be difficult for us to take a call whether those provisions are adequate or we -- how much additional provisions we may require. If you can just give some color on either Stage 2, retail, that would help us.

See, I can give some information, which is basically a flavor of Stage 2. What are the accounts, which is flowing into Stage 2, predominantly accounts and I'm talking only retail since you asked retail, predominantly close to 90%, 95% of pro forma NPA of retail is coming from customers who have availed moratorium on 31st August 2020, right? Now we had a book of INR 18,500 crores, which was there in moratorium, retail moratorium, close to 4% has closed, and close to 68% have paid all 4 EMIs. So there are residual accounts which either are in Stage 2, regular Stage 1, bucket 1, 2 or 3, and some accounts may have flown into provisional NPA. As I mentioned, in retail, customers who were not delinquent as on March 31, close to INR 360 -- INR 361-odd crore are the customers who have moved, slid into pro forma NPA or NPA, right? Pro forma NPA. And the reason was that -- and these customers were nondelinquent as on March 31. The key reason again is because of job loss, salary cuts and cash flow, business loss, they were not able to make the payments. And these are temporary kind of situations. We are working on it.

The higher buckets actually are directly correlated with the legal processes also. You are aware that then actually, for a long time, these things will continue. And therefore, the higher buckets are just to pick up, there is no doubt about it. But in the absence of a very clear direction from the Supreme Court and the accounts continue to remain frozen. And there's very little support that you get on the ground from either the judiciary or from the administration, it becomes extremely difficult for us to go ahead and do the recovery. So those are some of the things. However, I still would like to tell you that the company is fully aware, and it knows how to do the collection, which is maintained, lower NPA continuously for a long time. The soft buckets are showing good traction. It's only the higher bucket, and we need to immediately put in place the moment we have clarity from the Reserve Bank of India in terms of what we want to do. These are accounts -- some of these accounts are to second and third-generation kind of businessmen, bigger accounts, the ones which are probably showing a little stress are in jewelry segment, automobile segment, garment sector segment, which were badly hurt by COVID. And it is not that it is really huge. What we have done is that we have been able to -- still able to recover significant amount as Ajay mentioned, that from INR 18,000 crores, which was a residual book that was there on the morat book on August 31, we have been able to recover amounts either 1, 2, 3, 4. It's only the residual book where we have not been able to recover is the stretch book that we are looking at it. And this is where the provisioning has also been done. Second thing is that because of the lack of very clear direction from the judiciary, the normalization may take some time. It's not that anybody has a magic wand and they can do it very quickly. Normalization will take time. And the moment the SARFAESI and other things are open, we are back on track in terms of our ability to go and recover the money.

Mr. Jain, do you have any more questions?

No, no. I am done.

The next question is from the line of Anuj Singla from Bank of America.

So first question for Mr. Prasad. Sir, you mentioned that you have received INR 800 crores of COVID-related restructuring request. Is the number correct? And is that the total amount or that is only in the retail portfolio?

Mr. Singla, sorry to interrupt you. Ladies and gentlemen, the line for the management is disconnected. Please hold while we reconnect them. [Operator Instructions] The line for the management is reconnected.

This is Anuj from Bank of America. Sir, one question on the restructuring request. You mentioned you have got INR 800 crores to cumulative restructuring request under the COVID-related scheme. Sir, does it include the total retail plus corporate? Is that the correct understanding?

Yes.

Okay. Okay. Understood. And sir, secondly, you mentioned about 12 projects being recognized by SWAMIH for last-mile funding. Sir would you be able to share some more color, what is the total quantum of exposure we have to on these projects? And secondly, one of the key inhibition going for SWAMIH fund was always that these accounts will automatically become GNPA. And the IRR for SWAMIH was very high, and they are the last in first out. So has it -- had the modalities changed for us in terms of favorably considering the SWAMIH fund? Sir, these are the questions.

Yes. So on the SWAMIH fund, I'd like to answer that. What we were trying to show that SWAMIH recognizes that there is a lot of opportunity for them to resolve a lot of assets of us because there is considerable net surplus available in them. So they have identified 12 assets, wherein the developers have directly applied to them. And these are assets worth INR 1,200 crores from the stressed part of the book, basically, the NPA book. What we are keen of, and you are right that they are last in and first out. So we are very cautious in using this mechanism also. So we don't want to overdo it. There is -- only when there is merit, and we see that this is probably a last-mile kind of a funding where in the project gets delivered very quickly, and we are back on track, and we can recover our money quickly we are looking at this opportunity. If it's a nascent stage project, we are not interested. So we've identified around 3 assets worth INR 350 crores where we are actively engaging among these 12 projects to look at SWAMIH, where we think that we can both quickly resolve those assets, though they may have identified more, and they are more keen to work with us. But considering what we are keen on, we are working as of now on 3 assets, worth INR 350 crores. And this is mainly from the NPA, per forma NPA book. So the risk is already enumerated.

The next question is from the line of [ Onkar Ghugardare from Sri Consultancy ].

Yes. Can you please highlight the new strategy you have talked about? Like what kind of ROE, ROA you are targeting. You haven't given any specific about it. So what would be the growth you are targeting of loan book or, say, margins or ROE or ROA?

Like what we mentioned, the new strategy would be of course to build up our franchise in the retail segment and taking the opportunity of the affordable strength that we hold, where our book is already at around 41% at the AUM level, we would leverage that further and focus a little more on the high-yielding Unnati segment that we have to get up the upliftment in our yield. We already mentioned in the presentation that we are looking that the retail book should be able to give us a spread of around 2.1% to 2.3%. And cost-to-income, we said that we are currently at around sub-15%, there would be some investments, which might just come in on the technology front, on the development that M.D. talked about with regard to AI, ML and RPA. But we want to segregate the cost of investments towards technology and keep the BAU completely tight to ensure that the cost-to-income on an aggregate basis remains in the range of 15% to 17%. And then, therefore, with focus on the retail side, we are looking for ROA, which should be in the range of around 1.6% to 1.7%. And the growth would be little muted for now -- sorry, 1.4% to 1.6% on the ROE side. And from a growth perspective, we would be looking for a muted growth of single-digit for FY '22 with rather focus on retail.

Okay. And for the next...

The growth will come. It's just a matter of time if we have all these things that I spoke about initially. And at some point of time, not today, we can go ahead on a little granular scale of what exactly we will do in terms of time line, in terms of what will be a milestone under the each focus area that we have enumerated. Obviously, the growth will come. We are rebalancing our portfolio. We are looking at areas which are -- which will provide higher yields. We are looking at affordable housing, as I mentioned to you earlier. Within the affordable housing, we feel that there is a very big opportunity under the Unnati segment. Now these are very, very important areas. And if you really look at the report that came by one of the rating agencies, a few days back, it very clearly points to a higher single-digit growth that the industry and the mortgage industry will grow. We are also looking at it, that if we have everything in place, with capital also, good liquidity position, control over the -- of our book, we should be in a position to start on our journey of growth. I think that's more important for us because at the end of the day, it is with profit with growth. We will also grow, and we will ensure that the portfolio is well managed. It is profitable. And it is rebalanced, is balanced properly. So it doesn't undergo vagaries of economic cycles.

So I would like to just clarify what I mentioned earlier, the ROA that we gave as the guidelines to the market in the month of July was around 1.4% to 1.6%. We stick to that guidance. We are talking about a 1.4% ROA as of December 9 months as well. And for next year, with all the improvement that we talked about with additional opportunity, which would come in through the process, we are looking for an ROA, which should be in the range of 1.6% to 1.8%.

Okay. Sir, the second question is on the trajectory of NPAs. How do you see trajectory of NPAs in upcoming quarters, now the revival has taken -- started taking place?

So obviously, the economy is opening up, the COVID vaccine is also launched. There are various segments, which is basically coming to the normalcy, and this will have -- this will give positive impact on the portfolio performance for sure. If you look at retail, we are already seeing the uptick, and we just mentioned in the softer buckets, we are close to pre-COVID level resolutions. And the hard bucket is once the legal options are open, SARFAESI is open, we will see the resolutions coming from there as well. For corporate loans also, we mentioned that there is some green shoots which are visible; the demand side of the economy, we see that there is demand for housing from various segments of late. This may be an initial trend, but affluent segment, and the premium segment is also -- there is a demand coming in that particular segment also. With all these things, the resolution rate coming back to COVID, et cetera, the numbers should be moderate, but immediately, 1 or 2 quarters, there may be some forward flow, but we expect that in mid-term, it will normalize.

The next question is from the line of Vishnu Soni from Bharti AXA Life Insurance.

Sir, I just have 2 questions. One is on liquidity. So how much liquidity we have as in quarter end as of 31st of December?

As of 31st of December, we had a liquidity in the range of INR 7,000 crores to INR 8,000 crores. And -- but then we are working to bring it down. We have -- as of now, we've brought it down by around INR 3,000 crores, INR 2,000 crores. And with the way the situation has been improving and the comfort is getting built in, we are bringing it down further. And we will get -- will be getting up to a range where the liquidity is there for around 30 to 45 days in the near future and then talking to around maybe 30 to 45 days liquidity in the mid- to long term.

There's a huge amount of efforts to actually bring down. We were -- we definitely because of COVID, disbursements were not there, the liquidity position had improved or you would say, we were slightly higher on the liquidity side. The last 3 months itself, we have repaid all the cost of -- high-cost borrowings. We are continuously talking to our bank to ensure that the high cost is either replaced with the low cost or we will repay. But at the end of the day, as Kapish mentioned, we will ensure that 45 to 60 days is a liquidity that we will maintain, and we will be clearing off all high-cost borrowing that we have. I think in the long run, it is going to help the company significantly. Even in this quarter, if you look at the incremental borrowing, it is down significantly to, I think, 6.7%?

6.71%.

6.71%, it is down to, which is in our opinion, that given where we have given our rating and everything, we have been able to bring it down, and we will continue to strive to bring it down.

Okay. So this INR 700 crores to INR 800 crores includes both -- if this is includes undrawn credit lines also?

Yes, it does. Yes. Yes.

Okay, sir. One more thing, sir, just I wanted to ask, how much percentage you have the wholesale developer as of 31st of December?

How much what?

It's 17%.

The percentage of wholesale developer book?

Wholesale book. 17% of the [indiscernible]

17%?

Yes.

This is despite the fact that -- I mean, this is -- 17% is the book. But if you look at from the March, we have brought it down by 9% by repaying -- by either down selling it or by accelerated repayment and other things of almost about INR 1,000 crores. And we continue to work with a lot of builders to see to it that whatever is in case -- and because our [indiscernible] very clear mandate that we are going to not get into the corporate book, corporate, financial, construction financing. So these are some things that we will continue to see that they keep on coming down.

So any target you have for this corporate book in terms of percentage?

We have earlier given 1,500 target to bring it down. I think we have already done 1,000 for this quarter. We will ensure that, yes, it is -- going forward, it is a retail, which is going to be the engine of the growth. And retail, will be -- whole focus will be. If you really look at it in this quarter, 97% of our sourcing has been purely from the retail. And the retail will continue to be a major source of the growth. The revenue stream, the yields and everything that we have want to work is going to be -- is going to come back by looking at the revenue streams, increasing our revenue stream as cross-sell, up-sell, by increasing the yield in areas where there are opportunities, where we are better yielding, where the credit cost is low, the credit default premiums are low. I think everything we are going to look at it, so that the pressure -- so retail becomes the engine of growth for this company.

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

My first question is, what's the quantum of liabilities coming up for repricing in the fourth quarter? And the incremental bank liabilities that we are sourcing, how are they priced at? Is it priced at T-Bill or repo? And what is the premium on each of them? That's my first question.

None of them is a T-Bill.

Sorry. I missed your second part of the question. First, part, I'll just tell you.

If there are treasury bills or repo or the borrowing or it is only on the MCLR?

Okay. So we are gradually moving towards repo-linked borrowing. If you will notice, then you would have known that public sector banks have still not moved into a repo-linked lending for institutional. They're doing it for the home loan and the retail segment but not for the corporates. So therefore, there, nobody is having that success. Some minor success is coming in, in the form of ceases and some of -- and then from the private sector banks, yes, they are repo-linked borrowing, which is coming in.

In terms of when we had started the repo-linked to corporates, but then they had withdrawn it. So there is no other -- treasury-related option is still there, and we are working it. On the last week, SBI was with us, and there are other private sector banks which are lending at repo-link, and we are aggressively interacting and bringing -- and talking to them to bring down the cost of borrowings.

Right. What is the premium on the repo that we are getting charged?

Could you repeat, sorry?

Premium on repo, how much are they quoting? That depends on the rating and other things. But...

Premium on the repo ranges between 150 to 200 basis points.

Right, sir. And what are the FOIRs that we have on the outstanding HL portfolio and the outstanding LAP portfolio, sir? FOIR, fixed income to obligation ratio.

See, how we monitor is that we monitor the FOIR which we get today for the incremental portfolio. Because on the existing book, of course, it is not possible to monitor on the portfolio basis. FOIR at the time of sanction is sure something which we can look at. And just to give you an idea that post COVID once we reopen, so we realigned all our internal credit guidelines with respect to keeping this unprecedented time and the lockdown staff into mind. And so FOIR et cetera, have been tightened. So giving you a number on portfolio will not be possible.

Sir, how much was from the incremental there?

Sorry, incrementally, it depends upon between salaried and self-employed. So just to give you an idea, around 50% to 60% of the salary income is what is allowed today.

Got it, sir. Sure. And sir, what has been the quantum of balance transfers? And what is our strategy to slow down the attrition, sir?

So what are you talking -- you're talking about balance transfers in or are you talking about balance transfers out? You're talking about attrition?

yes, sir, net balance transfer, which will be out in my sense, if it is...

Yes. So we are seeing attrition because, obviously, there is attrition which is happening in our portfolio, but we are aggressively monitoring that, and we are -- we have given a lot of empowerment to the people in the ground to take decision and retain the customers. So that is one that is happening. And secondly, we have, again, repriced our -- the book, which is there, and we have given the existing customers the benefit of whatever that is I think is that is happening on the -- sorry, on the liability side. So that is also happening. And we're giving -- we are passing on that benefit to the customers. Going forward also, we -- and going forward also, we'll maintain the strategy, and we will be able to control this attrition, which is happening in the book.

The reduction in the cost of borrowing has helped us tremendously in terms of aligning our interest rates. In the last quarter, there were 3 occasions when we brought down our lending rates. And now we stand almost at about anything from 40, 45 to about 60, 65 basis point differential from the best in the market. This is a time when everybody has become very aggressive because there is no corporate lending that is taking place from any of the bank. I think with this last reduction in the interest rates on 24th, in some of the areas, we are quite close to our pre-COVID level when we used to quote about 30% to about 45% differential, and we are almost over there in some of the buckets that we are lending. We feel that in case the interest rates will go up, I don't think that we will get affected. But because the interest rates are being quoted at repo-linked rate by the banks, they will have to increase the interest rate, and it is going to help us significantly in getting back their zing and they're getting back the business with a differential of about, say, 20, 25, 35 basis points. I think that's what we are doing, but very importantly, I also want to bring your attention that our sourcing quality has improved significantly. We are concentrating very, very continuously by upgrading, improving, and we have tightened our underwriting standards. And despite the underwriting standards being tightened, we still see good growth that is coming in because of the overall market, the way it is shaping up. The log-ins have improved. The disbursements will follow. The sanctions have almost moved up. I think those are very good green shoots that one would look at it. And that is important from any of the company's perspective that whether it is still despite the fact that it goes a little higher interest rate, whether it attracts at a fantastic TAT of almost 2, 2.5 days for a salary and almost about 4 days for us -- for a self-employed. I think that sets us apart completely.

Sure, sir. And my last question is, how do we look at the cost of collections in FY '21 and FY '22, sir? What will be the absolute number?

So FY '21, which is the next quarter, I think we will be maintaining the same trajectory to be conservative, and the risk is not completely over. So the similar kind of trajectory a little moderate, maybe there. But in FY '22, we expect the credit cost to come down because we have begun the provisions, which is 3-point...

Sir, I'm not talking about the credit cost.

He's talking about cost of collection.

Sir, I'm talking about the cost of collection, not the credit cost, sir. What is the cost of collection and absolute number for FY '21? And what do you think it will be in FY '22, sir?

We can come back on these numbers. We don't have right now.

So there's very important thing that has happened on the -- I mean, as a summary, we will actually take out those numbers, and we'll give it to you. But the collection efficiency has gone up to almost about 95% to 96%, which is a pre-COVID number. I think that is very, very significant, with especially the lower -- the soft buckets, showing very good traction in terms of the recoveries that we are able to resolve. And in the soft bucket, the resolution percentage are also completely pre-COVID levels.

I have been able to get the numbers. If I got your question right, the recovery cost has been around INR 4.5 crores for FY '22.

No, no, I think that -- we'll come back to you, Shubhranshu.

[Operator Instructions] The next question is from the line of Nishant Shah from Macquarie.

Sorry, just one question and one follow-up from my side. So in the first -- in one of the replies to the earlier questions, you said you're considering only about INR 350 crores of being referred to the SWAMIH Fund, out of a total identified pool of INR 1,200 crores. Could you just elaborate on the [Technical Difficulty] again?

So what we referred is that of all the projects that SWAMIH had given a prelim approval on, we have deciding to move ahead on 3 transactions of INR 350 crores for final sanctions and resolution through the SWAMIH mode, is what we were mentioning.

Yes. So right. So why not going for the entire [Technical Difficulty]. Like, if these are all NPLs already, and if this fund is giving us last mile funding to go and complete them and get them sold, what's the reluctance here? Should we, like, believe that probably the salability or the likelihood of completion here is going to be low? Or how should we interpret this?

No, so it's not plug and play like that. What happens is basically, we look at several other resolution mechanisms, including joint development agreements, project takeovers, wherein we look at an outright solution there. So if -- I'll give you an example that if there is a project and a stronger developer comes in and takes over that project and resolves the account, that is a much cleaner and faster way of resolution than a SWAMIH. And it ensures that going forward also, I will say there's no issue because that's a stronger developer, has the ability to quickly monetize the asset and at the same time, has a balance sheet to service my loan in a very, very smooth basis. So SWAMIH is one kind of a solution, but it has pit falls because it puts the existing lender at an inferior position for probably a different duration of time. And SWAMIH is ideal only for assets, which are very, very near completion so that they can just come in, make sure that the project gets completed and exit quickly. If they happen to disburse a large line for a project and they take, let's say, 2 years to exit out themselves, I will be in a position to -- with an inferior position for next 2 years. So that is something that I'm not looking at. We are looking at how to quickly and best way of coming out of the NPA position.

Nishant, long and short is that we look at all options. This is what actually, they have said that this is what they would like to look at it. But from the company's perspective, it is important that we ensure that we get the best out of that account. And therefore, we'll will exercise all options and see that whether the option that we have in terms of JDA and anything else that we can actually work shifting it from one builder to another. If they are attractive option, there is no reason that I would do. So it is one of the resolution mechanism, but there are other resolution mechanisms that we have. And we will continue to explore those resolution mechanism because we have had some successes also in the other resolution mechanism, which gives us very, very clear and clean way of getting the money back. I think that's what is the ethos under which we are working on the SWAMIH front, on the resolution front and on the JDA. So everything is being looked at to ensure that the portfolio is much better as we go forward, despite whatever is happening on the real estate side.

Perfect. And just one quick follow-up. On Slide 20, you've given a list of, like, developers [Technical Difficulty] Anything outside of this, which has not yet [Technical Difficulty] Could you give any, like, color on [Technical Difficulty] anything like qualitatively, just describing where you are seeing some tractions?

Your voice is.

You're not clear and audible, Nishant.

Sorry, let me repeat that. So on Slide 20, you've given a list of developers, which are NPL resolved and NPL, which are still under progress. Anything apart from this, like, in your currently standard pool where you are still eyeing them closely monitoring the stress? Could you give any kind of color on those funds?

The remedial management group is continuously looking at the portfolio. Anything that has come up -- because you don't know today the account is good; it may actually, suddenly, there could be some issues or if there is a stress and it suddenly becomes. So these are some of the large accounts that we have given to give a flavor of what is happening. We are looking at the complete book to ensure that the book becomes much more vibrant and much better in terms of the way we are looking at it. So there are accounts which are resolved, we wanted to send that message across that the remedial action -- the revenue management group has been able to resolve the account. Simultaneously, there are resolutions that are underway. These are resolutions which probably the lines are rectified in this quarter or in the next quarter, hopefully. I mean, something can go wrong also. But the way we are proceeding with them and the way we are engaging with not only these accounts but with other parties also which are coming on board to bring in a certain amount of either equity capital, taking over JDs and everything possible under the sun. So these are the ones that we showed it to you. There may be small accounts also which are being looked at. So keeping in view the space, the time and everything, we have given you these accounts.

The next question is from the line of Nischint Chawathe from Kotak Securities.

Just 2 questions. One was on the assignment income of INR 35 crores. Just trying to check, this is the entire income that you booked on the assets that have been sold during the quarter?

Assignment income of INR 35 crores.

Yes.

Sure. And I think what you said is the benefit that you got because of decline in MCLR, that flows through the interest income line item?

Yes. Benefit is because of the MCLR.

Spread widening in the similar portfolio.

Sure. And just if you could give some color in terms of the NPLs of 4.47% in the pro forma numbers? Does this all pertain to the retail book? Or has there been any increase on the developer side as well?

So as I mentioned, this comprises both retail and cost rates. Within retail, it comprises of HL and LAP salary segment. So COVID has impacted one and all. And this pro forma NPA is also comprising of retail and corporate. I can further mention that for corporate accounts, there are few accounts with [indiscernible] but all these accounts were pre-identified. Either we have placed them in SICR or they were in Stage 2 earlier adequately provided for. Retail increase, as I mentioned, is from the portfolio, which was in moratorium, predominantly from there.

We're just trying to kind of get a broad sense in terms of how much has actually been the rise on the retail side. I guess, on the wholesale side or the developer side, we have discussed some very specific names in the past. So assuming that we can take those -- just trying to understand on a like-to-like basis, how much is the increase?

This is -- my suggestion and request would be wait for another 2 months, 3 months' time, give us time for these things to settle down. As we speak and I mentioned that we are able to recover and cure close to 200, 250-odd retail customers, which were in pro forma NPA. So things are shaping up. To draw any conclusion from this quarter number, I would say that it will be premature and very early.

Sure. Just one last question. What is your yield on retail home loans?

Our yield on retail home loan -- sorry, on a blended basis -- retail home loan you are saying?

Sir, I think on a blended basis, it's 10.62%. I'm just trying to understand how much is it on retail home loans?

On AUM basis, it is 9.82%, retail home loan yields.

On a weighted average. And incremental?

Yes. Yes, it's on weighted -- it's on the weighted average.

Yes. And incremental?

Incremental, it is 9.09% -- it is 9.43%.

No, no for the retail book?

Yes, retail.

Yes, for retail only, he is saying, 9.6%.

I'm saying retail on AUM basis, it is 9.82% and on incremental, it is 9.43%.

Okay. So 9.43% is the retail yield for the home loans that you saw during the quarter?

Not for the home loans. You said overall. So it will -- so for only home loans, it is 9.09%.

Okay. And incremental is?

That is incremental, 9.09%. For the home loan, it is 9.09%.

The next question is from the line of Anuj Sharma, individual investor.

My question is that when you talked about the INR 800 crores of restructuring related to the COVID, so is there any color -- can you show any -- can you tell us if -- how much it pertains to retail and how much it pertains to corporate side?

So corporates, we have done restructuring in 2 accounts, which is about INR 146-odd crores. And retail is close to INR 660 crores, INR 661-odd crores.

Okay, sir. So another question would be when we talk about the liquidity, the INR 7,000 crores to INR 8,000 crores that we have, it includes undrawn lines. So how much will it be the cash and cash equivalents of the investment? And how much of it will be the undrawn line?

See the undrawn lines, including the ODs and all that I hold, would be in the range of around INR 1,500 crores to INR 1,800 crores, and the rest would be liquidity.

Okay. Sure, sir. And my another question is, can you tell us like what would be the write-off figures that -- the write-off that we have done during the 9 months?

12 bps.

During the 9 months.

INR 34 crores.

Yes. So the write-off for the first 9 months is INR 34 crores.

Okay. Okay, sir. Sir, last question would be, can you tell us, like, how much incremental borrowing that you have raised during these 9 months and like the sources of it?

So the incremental borrowing that we raised in the first 9 months if I had to say from pure -- not talking about the term that comes in the short-term borrowing, but really on a long-term borrowing perspective, we would have churned around INR 16,000 crore of our borrowings. And the incremental borrowing has come at a blended cost for at around 6.91% for the first 9 months. And, like, what I said earlier for the quarter, it is 6.71%. So incremental borrowing every quarter is coming down.

Okay. So one more thing, like the last quarter, we showed an income of INR 105 crore because of the security because of the reduction in the buying bank's MCLR. And this -- what was the number this quarter in accordance with that?

Okay. So this quarter because of MCLR movement, this amount is around INR 50 crores.

Sir, when --

[indiscernible]

Sir, when you say the INR 50 crores because of the decrease in the buying banks' MCLR, now when we say it's a quarterly income and if we brought it down to the yearly income -- suppose yearly, it will be like, roughly around INR 200 crores. On a securitization, pool of around [ 120-odd billion ]. So it comes amount to around 2%, 2.5% of change in MCLR. So is it entirely because of that? Is my calculation correct? Or is there something that I'm missing in it?

No, no. So if you -- as you know, under IndAS, I am -- we have to do a -- we need to reset the spread and the profit from securitization portfolio. So as on 31st of December, [Technical Difficulty] portfolio I have and with the expansion in the spread, I wouldn't do a benefit because of that for the future income that I'm going to get. And at the present value, that number comes around INR 50 crore for the quarter. Yes. And but the net effect of that because there's unwinding negative impact which comes because of runoff as well is around INR 32 crores for the quarter as an absolute amount.

Okay. So we'll say the income is -- INR 32 crores is the negative impact of them?

Yes, yes.

The next question is from the line of SimranJeet Singh Bhatia from SMC.

Sir, I want to understand that you have said that you are going to raise the capital and you're waiting for the RBI formation. What is the motive behind raising the capital going forward? Is it for the provisioning purposes or for the growth purposes? Can you throw some light on that? And secondly, I was seeing your net interest margins. You have reported 3.18% from 3.50% from Q-o-Q, and -- which I believe that -- can you give some guidance on that? And what's the reason for this low NIM percentage in this quarter, when all other financial players are at least giving very strong sort of NIM percentage even in Q3 also? And what is the percentage of the total corporate book as a percentage of your total loan? Means, out of INR 100 -- means, out of 100%, what is the percentage of the corporate book you have right now and at this present time?

I think we gave you earlier 17% is the book. Coming back to the raising of capital, it's obviously for the growth. It's very, very important that the company, the growth has to be there, we will require capital. It also helps us significantly in terms of improving our rating, which is very, very critical. And the moment the rating and the other thing goes up, we should be in a position to raise above -- bring down the borrowing cost. Now all these things are related to one of the most important things for the company, to raise the capital. So these are the most significant things, which is important for us as a company when it actually really starts growing in, it has the required capital, it has the required wherewithal to withstand and especially when we are going to rebalance the portfolio, the growth opportunities that are there in terms of the affordable housing, the changes that the government -- various governments are bringing in, in terms of the affordable housing. One of the state governments has increased the overall area for development from 10 acres to 30 acres. They have made from 4% to 8% is what you can actually build on the commercial side, the car parking now is being allowed. This gives a huge opportunity to a lot of people to start owning these kind of homes. And therefore, the growth opportunities will come up. We have the underwriting capabilities. We have -- we know the business. We have a sound book, which we have built in the last few years. These are very, very ominous signs for us to have the right capital over there to ensure that the company grows very, very profitably. Profit will remain the most important thing that one -- I mean, I would like to bring it to attention continuously that we will bring in efficiency of operations, we will reduce costs, we will increase the revenue stream, we will rebalance the portfolio, and we'll see to it that actually, the company is -- it's quite robust in terms of the way it is performing.

Great, sir.

Another question was on NIM.

Yes, yes, NIM percentage movement.

Yes. So the NIM that you see in the presentation on Slide 25, and you talk about 3.5% to moving to 3.18%, you will notice that we also talk about spread with and excluding securitization. So the last quarter was a revelation where we got upfronting income because of MCLR movement, which all came in, in the third -- in the second quarter. And therefore, we showed spread with and without securitization. If you revoke that number, the NIM for quarter 2 is actually 2.96%, and the NIM for this quarter is 3.01%. So -- and historically, if you noticed Q3 last year, it was at 2.98%. So our NIMs have been in the range of around 3%. And we see this potentially moving up by the additional effort that we are putting in regard to cross-sell and upsell and other elements of fees. But the NIM is fairly stable at around 3-odd percent range.

What was the question?

The NIM is 3.18%, while it was 3.50%.

Okay.

Great, great. Sir, and my last question is, can you tell me what is the percentage of the developer's loan you have in the portfolio at the present time in the real estate side?

We'll give it to you. 17 is overall the corporate book. This is something that we have it but right now, it's not there with me. I'll give it to you. It's all developer's loan actually.

Yes, it's all developer loan.

It is either construction finance or it is corporate term loan. Basically, there's nothing but that. But I think something specific, you can have a look at that, if there is any portfolio that's sitting over there, which is not developers. It is all developers.

It is all developers. We don't do anything apart from developers.

The next question is from the line of Radhika Lohia from Mirae Asset.

Sir, a few questions on my end. First on the follow-up question. So you have said that INR 18,000 crore of moratorium, which was there in the retail side. So 68% had paid the EMI. So the remaining INR 6,000 crores, which you're looking at is in Stage 1, 2 and 3, is that what you had mentioned?

No. I also mentioned INR 3.75 crores have preclosed. So the residual accounts are accounts where either 1 EMI, 2 EMI, 3 EMI are overdue, which is close to INR 4,400-odd crores.

So INR 4,400 crores is the residual, which you're looking at, might be in Stage 1, 2 and 3, right?

Yes. Stage 1 and 2 because we can't classify these accounts into Stage 3. What I said is bucket 1, 2 or 3.

Okay. Okay. Got it. And also on the loan book side, so there has been a de-growth of like 4% on a Q-o-Q basis. And we're seeing an interest income down by 10%. So could you please explain on this?

See, as we were talking about, the loan book has degrown majorly because there has been some accretion in the book, though. And we are growing very, very cautiously. And that's what route that we have taken as of now. But going forward, yes, when we are talking about accelerating the growth, this piece will be covered, and we will grow very smartly from here. Yes, currently, the book has degrown. But like I said, will grow very smartly from there.

We actually clarified to your second part of your question, where the interest income is down by around 9% on a sequential quarter-on-quarter. So last quarter, as we mentioned, we had the impact of the entire NCLR movement which happened across bank for our securitization portfolio, which has come as upfronting of income for the additional spread that came in for the remaining portfolio in its maturity, because of which the yield was added and therefore, the yield was showing at 11.30% in our presentation, as you noticed, on Page #25. So that's one reason why the yield showed a sharp increase and the interest income showed a sharp increase between quarter 3 and quarter 2. Adjusted for that, our yields are very smart, both for quarter 2 and quarter 3, and there's not been any downward movement.

Okay, sir. And just on the last question. So what is the amount of payment that you're expecting 1 year from now? Like, a little light on your ALM profile, yes.

Yes. So the repayment that we expect from now. So on the deposit side, it's around INR 18,000 crores -- on the deposit side, it's around INR 18,000 crores, that is there coming for repayment -- sorry, not deposit, including on borrowing, it's around INR 18,000 crores. And then there's around ECB payment, which is also coming in up around INR 4,000 crores.

Ladies and gentlemen, we will take the last question from the line of Viral Shah from Crédit Suisse.

Just one last question. How much have you reduced your benchmark rates over the course of last 6 to 9 months, both on the retail -- within home loans and LAP?

65 bps. We have -- so we are not -- we have reduced our rates by 65 bps in -- over the last 6 months or lower last 9 months. So that's what we have done.

This would be the benchmark reduction, right?

Yes, yes. 65 bps.

New acquisition.

New acquisition, I'm talking about.

Okay. And have we reduced them anytime in the last quarter?

Yes, in the last quarter also, we have reduced the new acquisition rates that we have reduced by almost 45 bps.

But sir, this would be new acquisitions. Have we reduced the benchmark to which all the existing loans are benchmarked to?

So that we have not done in last quarter. But yes, in the last 9 months, we have again reduced by almost some 30, 35 bps in 9 months.

As there are no further questions from the participants, I now hand the conference over to Ms. Deepika Gupta Padhi for closing comments.

Thank you, everyone, for joining us on the call. If you have any questions unanswered, please feel free to get in touch with Investor Relations. The transcript of this call will be uploaded on our website, that is www.pnbhousing.com. Thank you, and good evening.

Thank you very much.

Thank you. Ladies and gentlemen, on behalf of PNB Housing Finance Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.