Repco Home Finance Limited (REPCOHOME) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Repco Home Finance Limited Q4 FY '21 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. Kunal Shah from ICICI Securities Limited. Thank you. And over to you, Mr. Shah.

Thank you, Nirav, and good afternoon, everyone. This is Kunal Shah from ICICI Securities Today, we have with us Mr. Yashpal Gupta, Managing Director and CEO; and the senior management team of Repco Home Finance to discuss their Q4 FY '21 and full year FY '21 earnings. Over to you, sir.

Yes. Welcome to all of you. Welcome to the earning call of our Q4 of [ 2021 ] to all of you. Hope these are different and we know to adjust as the second wave improvement side. So we hope that all of you are and in 26 June, they approved the results for quarter 4 of 2021 and for the whole year of 2021. We also approved the dividend of last year, [ 3 years ] last year, there has been INR 2.5 per share, 28% [indiscernible] by shareholders. Now I'll come to a few important highlights. I know the entire year last year was not good, Q1 and Q2, especially as well. q3, Q4 is good and Q4 could go our disbursement as compared last year by about 16%. But overall, this was low because almost a washup. And that where we as even take a word. As you know, the industrial out there. So they were doing retail could it goes. Large is very technical to all of them. And as a result, what the [indiscernible], both are about 90%. They were while we could deserve 31% of the balance our outstanding, but we could grow our book [ 2% ] 90% which normal is only about 8%, Europe was even. But there were a few good things to notice because especially, we focus on recovery from order and pay accounts. And then all we could bring down the NPL from to March for 8% as much from 4.1 last month to 3.68% this month. First, we've been 7% avenue for retail prosumer, our digital podium was higher by INR 30 crores. And we meet INR 10 crores. Still, compared to last year Q4, the share could increase by 32%, though it was not a by 3%. Now if you look at NIM was 2.8%. We look at end because we could not update our volume, which is decidedly to reduce the NPA. And also margin NIM, spend, ROAs and to reduce whatever cost we could reduce. But the other income we earn not income. But income by the insurance selling that a good deal. Now here, I will just tell you what we got for Q4 and entire year, and then you can ask the question. The total income for the year was INR 1,392 crores, 33% higher than last year. We expect of 3.4%, is 4.7%. That is how for the year. But if you look at Q4, margin 4.85. Our cost of funds has also come from 23% for the March to 7.1% for the March this year. But INR 287 crores, this portion as compared to INR 80 crores last year and ROEs reached 2.4% only on a from the that because we thought that in these trends and of defer, we would maintain lower debt utilizations are normal. -- although you would have seen has come down. Then we have a lot of liquidity or open electricity in the rental, not a ton and on the land itineraries and Ken bank well. Now over to you for any questions.

[Operator Instructions] The first question is from the line of Abhijit Tibrewal from Motilal Oswal.

My first question is around the asset quality. While it's actually happening to see reporting an improvement in asset quality for the last 7 quarters, our headline GNPA numbers used to be sticking in the range of 2% to 4.3% range, actually that happening to see decline to 3.7% in the last quarter. But what I'm trying to understand there is, A, what is it that actually led to this decline? In other words, we are not really taking any write-offs during the quarter. So are these actual resolutions that you saw in your GNPAs or these are just upgrades to Stage 2? That's one. The other thing is while the numbers might look good as on March, I think -- I mean because we are also reporting at the fact of the current quarter, I think it's also important for us to understand what is the stress that you are seeing now as a fallout of the second COVID wave? And potentially, what is the kind of restructuring that we might expect in the current quarter? That's my first question.

Let me answer one by one. First, your question about NPA. So actually, I've been telling for many conferences now that while our trade cost in terms of volume is higher, but because business the loan soon and lesson only against tangible assets. Project credit loss, that is lots of press in last 20 years has been. Actually, we've done all over INR 10 crores to INR 50 crores of waiver. So it is just that we decided to leave higher penalties and also mainly addressing core email special equine, we identified cotenant hotter than who are higher -- And we see some different rations who the in this. And after one month events mean they hurt our recur. There is actual recovery while some of them may be a period or so, but are often a good thing when they are paying overall. We don't mind them paying really the upgrade. Now to actually, there is no manipulation there actually up by it also happens through discovery all -- So exclude the core. Now going the part of course, Q1 of the. I'll answer that, but I would let remind all of you that if we call for Q4 2021. So as you know, future is always uneven. Our or that we sell our customers such that we are mostly now that on, and we are not a bank. -- or the pathogen and generally, property still customer business, you have to meet your resistive on you to do, then as arose gins are clear, which is to when which Cannabinoid without the partner such -- And as you know, April, May was very bad. June was, but started in last week of May. And we are really still lockdown remains partial arena segment that has done is not so good as compared to the Q4. How much is still to a so probably throughout the fair mtpa to tell as to how much we expect the report. But yes, business will not be as a year Q4. But here one thing, that's on the book side. Fortunately, because of the pandemic, come down. So while there was some in the book side, but not major there. Now coming the NPA because we could hear only 15 days -- We are making effort we want Namaste to you. We'll free within customers and collecting the money because we expect -- but we have some term we had last time. we allowed material, the venue was not required. The time on data will require what differ to explain how much you have or how much you collect.

Sure, sir. That is useful. The other question that I had is in your opening remarks itself, you kind of admitted that we understand that we cannot be competing on volumes. So what is it? I mean, internally, what is it that we are working with? I mean, in terms of disbursement, in terms of the growth targets? What is it that we are working on internally? And another thing that we keep sharing on and off, sir, is that you are investing significantly in technology and digitization. So if you can just give us some color around what is the impact we are doing there. Are we working in all of sourcing, underwriting and collections? Or is it typically restricted only to sourcing or only to, let's say, collections?

No. Actually, it is -- please let me answer your second question first. We have already appointed for that and as of KPMG as our adviser is a listed. In the sense that we are bringing our hardware or software, comporting software, but we are clearer, then we have the entire lever system loan manual systems that come lead-generation to the and system was making and it of the accounting and plus a inspection order are going to there. And we are hoping that there'll be inventories for December. We are already starting the vision. We INR 40 crores to INR 50 crores, okay? The community or bring another system. After all, it will be for the senior the lead, what the second, was the turn for the GST as new automotive. Okay? Now that first question, you asked about targets? Now we -- when I told you that we have we can compete on the volume gains, there, it is a curtain that the mine, can as of demand going down, bank, not finding enough lenders in the -- in a borrower in the corporate event and restricted and all that. But I'm sure that will not remain so. Maybe next year, we'll continue to improve. And when we give target over what we are looking with what were the best out of them. When in this market, even those things are bad, what you were working in a so INR 3,000 crore because if you give high are, maybe we'll end up the scoring -- So targets activity, and we always tend to achieve that. But here, I'm giving a net investors that what is atlas -- But at secure. If the things we go well and to fit out of that. And here, for the June month, we were not on any or the magnate for previous one December, any manipulation openly that other regions are doing that.

[Operator Instructions] The next question is from the line of Mr. Viraj Mehta from Equirus Portfolio Management Service.

Sir, my first question is that capital adequacy is already 29%. If our growth will continue to remain low, then are there any plans of increasing the dividend or diversifying into some other form of lending? Because the -- if you keep increasing the capital adequacy, it will keep dragging down the ROE.

Yes. Any other questions?

So this is the first question. Sir, I have one more, if you can answer this first.

Okay. See, you are right, our capital will be higher at 28.5. But we also must aware exactly at our ways have grow our home were the arbiter that it, in the sense that we are only the capital adequacy on capital banks and there's on the arc of operating yes. That has a current feature. And already CR has been extended by when they were to 15%. So it is higher. You are right. But it gives some cushion, 15%. We need to have some cushion. And the second comment to the side, the growth has been out in the last 2, 3 years, but you should not look at only 2, 3 years. We always have at 10 year. If we look at 10 years, we have seen the growth of 20 what, 20% or so. And there is no reason to believe that I believe I said to all my colleagues, all my trend that according to me, the houses is turn will be the turnaround Indian was the growth of recovery. While right now, it had value, but you are always metal. It time may come, and we don't see that will way, that's where we can again we are exiting by intact by other cases that I told you in last time. With this, we are ready to bound the whole and got the ores come -- And I believe that pain in 1 year or so this arena will come over as much as a way that we don't know this invitation 11, [ Q3 ]. But I'm looking at a businessman. As a businessman, thank before, I expect that by July, the market will open market on, and we have the that.

Sure. And sir, did I hear you right when you said that you have target of INR 700 crore of -- sorry, a INR 3,000 crores of disbursement this year?

Yes. What we done, if you see last year, we did INR 3,200 crores. And you may it was about INR 800 crore per quarter. I do that the -- how we are turning up the turn, I'll tell you that also. That assuming that everything was == only from 2, 2, then we have 3 whole quarters in to the 400. And plus, we got down to INR 1-odd crore. Plus there was an fees, in Q2, Q3, Q4, all 3 quarters remain at, we don't see a problem in that.

And how much is the run rate for bank takeover? What was it in the first quarter? And what was in the Q4? And what is the current run rate looking like?

See current rate is very low. It is only about 3% to 4%. But in Q4, it was 12% per annum.

12% of -- so can you roughly around INR 350 crores, INR 400 crores. Is that correct?

It's 12% of the beginning loan amount. What the sales last year was say roughly INR 11,800 crores. Multiple 12% to INR 1,400 crore takeover by our -- from last year.

Right. But that is for the full year, right?

Full year, yes. But as you look to have been lower last year results in cold trim also can go because they want to have a food store in the house, take care of revenues, they don't look at other things. Motor has happened in the last 2 quarter only.

Right. And in terms of our cost of borrowing, it is now around 7.1%. Is there any more juice left that we can take out of this by taking our mix? Or anything else in your view?

So there is some new juice left. But I tell you what is juice left. One is the as work at 5.0-odd percent. That will reduce some of our costs. But -- As you know, these CPs we are now raising over the last almost 8 to 9 months, we can be some decrease also that will come at, but they're at from. And ultimately, I think left juice is 0.2%, 0.3%. But argumentation arguing whether the because ethanol the is going up, we do not ever increase before or not. If we keep the reform, then we expect 7.1 should fall down to about by the end of June, at the end of June [ year ].

The next question is from the line of Ojha from Robo Capital Limited.

Just one question from my side. For the next 2 years, if you could share the loan book growth and the credit cost guidance, that would be great.

See it all depends on COVID impact. So I can give you a number, but I must say a away it is assuming more COVID impact, all that. I'm in your opening, I suppose everybody, we expect growth of [ 26% ] esteemed group side. is assuming everything good, is back as you know of COVID last year, as we follow of each of the profile and the liquidity to come invested -- So as you again. we don't see problem out. Now I Credit cost come we are following now the sale model. Last 2 years, we have been making acres volume because of the premium situation. But if we go on and -- We have also find monitor no who is our adviser. But I don't -- as you everything when no surprise element is there, the credit costs will be over INR 40 crores to INR 50 crores at bank.

Credit was INR 40 crores to INR 50 crores, you say, sir?

Pardon?

Sir, can you repeat credit cost? I missed that?

it's per annum.

I think your voice is breaking, sir.

INR 40 crores to INR 50 crores per annum.

The next question is from the line of Mr. Sarvesh Gupta from Maximal Capital.

Sir, before I ask my question, sir, any particular reason why there was so much of delay in publishing our results? Probably, we will be the last BFSI company to report the results in this season.

The particular reason, but what on we have a say company call core macro finance, where unlined. And generally, they take time because the it doesn't mature only punish, and we can be premieres on an economy cardio. -- vehicle seat these results only that number.

Okay. So sir, last year, you had given a guidance of around 4% gross NPA. And it's heartening to see that you have stuck to that guidance. In fact, by 4Q exit, we got a lower figure than that. Now assuming, of course, that the COVID ends with this wave and July starts normal, what should be our end FY '22 sort of gross NPA number that should be reflecting on the?

I think you with 100% an catering as well, that is -- there is no total, which should be below 3.25 as on March.

Below 3.25, is it?

Yes. But this is assuming no further disturbance.

Okay. Okay. And sir, the second question was pertaining to one of the previous participant's question. So what you were saying that we are targeting, let's say, around INR 3,000 crores of disbursement. Now of that, you also mentioned that around 12% is your annual runoff from BT. So that itself can be, let's say, around INR 1,400 crores. So that leaves us with around 15 -- INR 1,600-odd crores of ...

I'm not think about 19%. 12% is prefund normal. If you look at nongeneration crores. And assuming that we defer a core to tell on from other efforts and on it, where you can hours INR 13,000 crore as our margin.

Yes, yes. So I was just doing that math, that if you have INR 3,000 crore disbursements, around -- the runoff at a 3% quarterly run rate or maybe even if you take 10% of your loan book of INR 12,000 crore, so around INR 1,200 crores goes off. So you are left with around INR 1,800 crore. Plus, you will also have some repayments, assuming that 7, 8 years is your average tenure, you will have another INR 1,000 crore of repayment, sir?

Sorry, 14 years average tenure.

14 Years. So you will have another 7% of the book going away, which is another INR 1,000-odd crores, sir, INR 800-odd crores. So net-net, you will be getting INR 1,000 crore increase in the loan book on INR 12,000 crore base, which is 5%, 6%, 6%, 7% growth rate. Is that the right way of looking at things, sir?

I could not hear.

No. So on that INR 3,000 crores disbursement, sir, if you deduct around INR 1,200 crores, INR 1,300 crores of BT, then we are left with INR 1,700 crores. And then your repayments on your remaining loan book will be another INR 700 crores, INR 800 crores. So you are left with around INR 1,000 crore increase in the loan book on a base of INR 12,000 crore, which is a 8% sort of a growth rate, not like a 12% to 15% growth rate that you said is possible if the year is normal.

Correct. But it is all 3 quarters, not the fourth quarter, #1, those. There can be see, when we everything normal, we look at it this INR 4,000 crores. We have 2 years back, we increased around 200. So 10%, you see auto this quarter. Okay. I'll look at for number. #2, renewing the core will also be too accretive as they are. we have a housing loans only last 3 years, not at the core, but not regularly, then at radiator, which is 12% with so development. So that will give us 18% over it. So one, we can disburse INR 4,000 crores. Second, go down.

Sure. Sure. I can understand that. And sir, that on your core segment of customers. Now obviously, because of COVID, what we are seeing is the higher segments are not impacted that much. So even the higher segment of apartments, houses are seeming to have a lot of traction. But maybe the informal segment has got impacted much. So any data that you can share on how the real estate is sort of progressing in the segments that you target because we do have a data for the normal organized segment, but don't have so much of a feel of how much it is happening in the segments that you are focusing and in the states that you're mostly targeting?

As you the parent is being better. They don't have much problem. But at lower end, especially when the customized it cash or as far of basically, he wants to capture 60%, I think I told you in one of the meetings, the 60% loans are trustor loans. They are not reenactment, and of course, from where we get the main dollar content. So that segment has been split in last one, especially in dentate Gas a Market, where major is come from. The upper and by apartment has not offered his efforts. That is -- But we hope that the return will improve and we'll not have to raise that.

Okay. And the share of wallet moving towards real estate in that customer segment that you are targeting, is that sort of helping the growth in that market in a way, or is it not?

See as of now, we don't -- to be frank, we don't collect the data, but we've got in formal briefings that we get. Apparently, we say is always the last rig. So they are code, then the getting the contactor. Actually, the worse motor that segment is reducing -- Now just in.

Next question is from the line of Mr. from Triconex.

My question is actually on pricing of credit risk. The kind of NPAs that you have, obviously, I'm not comparing you to the mainstream banks, but to an HFC, which is not based and also listed. So if I compare your NPAs, they're like 3x and your lending yields are at least 3% to 4% lower. So do you think that there is a disconnect in our strategy that we are not pricing as credit risk appropriately. It's also reflected in your ECL. If you see Stage 3 assets, it's based on a very scientific calculation, the cover that your auditors also would have gone through and recommended, it's 40%, whereas other HFCs, 28%. So technically speaking, the segments that you are catering to, your core price possibly 2.5%, 3% higher and also better manage the credit cost to give better returns. I'm not able to place of this return, risk-adjusted returns. And also the NPAs in LAP are rather high. And do you do actually segmentize profitability to see if you're making any money in LAP, in self-employed, home loans where NPS against Sinha. So if you can throw some color on that.

Yes. See one is that I do not agree with you that we do not charge a degree ROI to ...

[Operator Instructions] Ladies and gentlemen, the management reconnected to the call. Sir, you may go ahead. Yes.

Okay. So what I'm the ROI that we charge from our customers. As you might note that we are all retail, so charge [ 18%, 14% ] carrying from the use know what on with. Could I know that ...

I'm not comparing you to the builder loans. I'm comparing you to the retail only.

Just retail only. If you look at retail loans, there are some wording 14%, 15%. But you know to very low like -- those were. We are not doing well, we service charge. But generally militant who can innate impacting you. So I just Ben. But in case attainers -- We have not where certain of the rig that we operate. What we do is that we -- we have identified about me. They are whether the sell or not, the civil core, the iterating whether the loan tags on adjusting parts all that in is on when we work on a minimum lending rate of our borrowing. Based on that, we charge -- So if you ask animatesome players who are Avinash, if we look at the nano I don't think we need to have widening and that especially earlier player.

No. I see. If you are charging -- if you are doing such better screening and lending to better segment than your NPA should be actually much lower. So I'm comparing you to others, which is completely retail, they get better yields and their NPAs are possibly maybe 20%, 25% of yours?

Yes. I recognize, but I am at as I told, NPA not those Pioneer. -- if they recover that the byways and you look at ROE 2.4%. Or I don't want to compare with us, obviously, on skilling on in presales are tango on. We have limitation we have to work with. So they are outside of instead fully in the Jenkinson. -- there are all terms of a ...

Are you making money in all your segments, say, in -- if you were to compare your self-employed home loans on risk-adjusted basis, what kind of ROEs are you generating there, and also in, say, LAP?

In our case, because the source of borrowing is common, the cost of funds where we give from, whether we give, one. That's the way we look at it. We are wanting to for it. But on the household and modular, then there less colon and the but and all that. But there are some being -- We look at overall customers on 1 or malaise that takes into account all our other costs. And then all that will just some market on the Currently, we are making profit terms all being on -- And then those who have to recur later on.

[Operator Instructions] The next question is from the line of Tibrewal from Motilal Oswal Financial Service.

Mr. Gupta. My question was around, I think, for long, we've been saying that a large part of our state fee assets are because of some of the legacy NDAs that we have. What I'm trying to understand here is, I mean, the resolution that you are seeing now I mean, how aged are they? I mean are they 2, 3 years old? Because I recall at the beginning of this financial year, let's say, say something, it was 2 or 3 year holds. I remember was in the ballpark of about INR 150 crores out of that NPA fell of about INR 500 crores. So I mean, what I'm trying to understand here is how long is it going to take to resolve some of these legacy NPAs, which have led to our headline GS3, GoPro sticky? And are they typically in some of the high ticket LAP that we have done in the past? If you can just give some color around product or maybe geography, where you have seen where there you have the legacy NPAs? And what's the thought process around this getting resolved in the next, let's say, 6 to 12 months?

Okay. So when I told you that there were many of the legacy NPAs, they were legacy NPA. But what has happened, as you are aware, in the last couple of years is the COVID, and especially our segment, people do not have money to reach, how will be really. That is -- we are -- it is the -- So as well, many of the NPAs which are not defer it is [ June, ] you'll find, net could not be because we can contact them, then we had normal. So happen. But good thing for us is the NPAs are disclosable because. In fact, in March this year, being the core loan it because of reused were 5 to 10 years old. So it is down at are not done, but now I would say there's not a argon. We can be or become antibias of this cost and other products. first and you that woes on thing, but economy is in door much lower cold. So it is also the income growth has everything. -- and that's why we are going to in we are going to have in recovery. Last year, as we announced the margin aware. Nobody thought to post over in March. But just the versus this March, we did in 0.3%, but if you reduce the NPAs would to this level.

Sure, sir. And the last question that I had was around the provisions that you have taken in the quarter. Obviously, I mean, the gross stage 3 assets have declined during the quarter. You might have had some write-backs from the GMP as well. If I look at your standard as it is Stage 1 and Stage 2, you have had no increase in the restructured pool. We had already taken provisions on your restructured pool in the last quarter itself. So there was no incremental restructuring provisions during the quarter, which is -- I mean, if I can just conclude that, I mean, largely, you have taken these provisions to increase the provisioning cover on your Stage 1 and Stage 2 at. So would it be fair to say that some part of this INR 29 crores that you have taken during the quarter is also in anticipation of the kind of restructuring that you might see in the current quarter?

Yes, you are right.

The next question is from the line of Sandra Sagari from Fidelity International.

Yes. I just wanted to know what percentage of your book has been repriced lower so far. And is something else going to happen again in the future in -- over the course of this year to sort of reduce the amount of balance transfers out? That's question #1. And the second question is 10% of our cost of -- 10% of our borrowings come from Repco Bank, and it is actually our highest cost source of borrowing. And -- while from the other banks, actually, cost of funds have come down pretty substantially from Repco Bank are actually cost of funds -- cost of borrowing has actually come down not too much. So just your thoughts on why do we want to maintain even 10% of our borrowing [indiscernible].

Okay. Sir, I'll answer both of your question. One is about the, how much book there are [ 2 ] in possible in all of side. I see what we do every [ month ] able reduction or revision, it can cost [ month ] go up they go up for hemostat Ramos. -- that we around to all the user all consortia. Secondly, the peer in order to reduce the customers from being kick over, we do reduce the rate, but we cannot go beyond the men. So I would say over 80% could have reduced. But in a very high and some cases, we could have won additional cases we would have talked about the revenue, but it could have on if you're asking, it would be around [ 10% ]. Secondly, about the bank offer. So here, I would only say we are not a business in buses to year reason for trailing year. If you look at we are the highest cost, but at 1 time, if you go back 2 years or 3 years back, we were probably divert many of these places, the users for masses when collections that happened by in because we cannot do -- on limited that we deposit -- And then we bentonite we have is always there when if the back helped. Let when you are aware that the sale allergen as the prices happened, the banker reaction if you wanted to miserly to at our ingot money bank. That can reflect the Well, as any criteria. But we have requested the trying to reduce the rate from 8.1% to 7.9%. And going forward, we'll see -- So I think with equate bank, also the cost that or you should take on well managed with you from Magnus or -- So we look at 2 things.

Understood. Just then another one, can you please help us with what percentage of the LAP book is above INR 1 crore at this point?

It's what parcel books are ...

Around INR 1 crore.

Around INR 180 crores.

Multicore is why we had [ at least ] 2%.

[Operator Instructions] The next question is from the line of Mr. Rajiv Mehta from Equirus Portfolio Management Service.

My question has been answered.

[Operator Instructions] As there are no further questions, I will now hand the conference over to Mr. Kunal Shah for closing comments.

Sorry, we have one more question, Nirav, if you want to take that, yes.

Sure. The next question is from the line of Mr. Sanket Chedda from B&K Securities.

So sir, my question was on margins are still at 4.8. If we see that the BT outside from in Q3, Q4 than goes from that despite growing disbursement by 16%, we reported of like AUM. So don't we intend to maybe cut down on margin where we can have about 4% NIM, which might give us about 2% ROA, but we would be able to put some growth in last 4 years since FY '18. I guess we have posted a double-digit growth in just one year. Other than that, we have been struggling to that some road. So what is the strategy that you would like to adopt any new that you intend to implement to pursue growth in the coming time?

Okay. So I must tell you that in the last 4 years or 3 years [indiscernible] while our books are growing by 33% from around [indiscernible]. But at the same time, then he corporate by almost 60%, 70%, from INR [indiscernible] crores to INR 287 crores. Now that is one part for us as we are. But your point mentioned where we told earlier even partially, we do come on the rig. We could reduce the rate. But we don't want to we know that we cannot -- our cost on a is now in tumor. As we go lower, how can we compare it with them. So we don't want to compare every quarter. That is very clear. We can reduce the cost, if the customer comes Taasinge that we do are okay. The overall numbers were does not being that we always do for inversion [ 1% to 8% ] In terms of many customers, we just we on cost, but the about cost of both. So we look at cause they are mining some cultures are there. I mean we ignore which are only [ 0.2% ] higher rate than the cost on is G&A portfolio mix across states, across customers, of course, geographies were going to say that we decide for any no. The judge it is of the outcome. But we don't on the rate I will angle [ to 5 ] customers at 9% on customer INR 1 crore, 7.2%.

Okay, sir. So my question was that while our margins are still 4.8, and you rightly said that if delta technical on at about 7%, 7.5%, we come so I was just the margins are still high. Are we optimizing that grade of enough where we are trying to keep what we can see.

No really, we are doing. I must say we are doing.

The next question is from the line of Mr. Ashish from Robo Capital Limited.

Sir, my question was regarding your network expansion. So how many branches are we looking to add in the next year?

We see not much because we still do want to know or you in about [ 10 ] budgets every year. this last year, we have a COVID this would not know what will happen for the. This year, we're not selling anything. Maybe some faster, we can take the plane but not we are not looking at this year.

Okay. And also, I had a small query. So Ecobank as a candidate for nurses license. So is there any impact on us, any kind of just wanted to know about this.

See it is too early. It is the play to be a wild and that they become then what action they take -- We are not discussing retail bank.

The next question is from the line of Mr. Vikram Subramanian from Spark Capital Advisors.

Congrats on a good set of number. I'm sorry, I got cut off a bit. Did you give a guide?

Sir, the line for the participant dropped?

Can you tell again?

Sir, the line for the participant drop, sir. Due to time constraint, that was the last question. I will now hand the conference over to Mr. Kunal Shah for closing comments.

Yes. Thank you, Mr. Gupta, for such an extensive reply to all the questions and all the best for the future quarters. And thanks all the participants for participating on the call. Thank you.

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