Q1 2022 LIC Housing Finance Ltd Earnings Call Hosted by AXIS Capital Holdings Ltd
Welcome to q1f, y22 earnings conference call of LIC Housing. Finance please stay online, your confidence will.
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David, good morning, ladies and gentlemen, welcome to LIC Housing Finance limited q..1f y, 22 earnings conference call. As a reminder, all participants will be in listen-only mode and there will be an opportunity for you to ask questions. After the presentation. Concludes should you need assistance during the conference call please signal an operator by pressing star then zero on your touch-tone.
Please note this conference is recorded. I would now like to hand out the flu to mr. Praveen, Agarwal of axiscapital limited. Thank you and over to you soon. Thank you Barbie. Good morning, everyone and welcome to this call. We have Mr. Why we should not God mdhd, you and mr. Shillitoe seal, CFO of Lig Housing Finance, I would request the management to share their initial remarks post, which will open the floor for QA over to you, mr. God
Okay, okay, I feel very good morning to all of you and the thank you predict the outset. I actually had to welcome to everyone of you and invite for this post earnings invest recall of LSU, Housing Finance limited, as we are aware LS H, FL declared q1f 522 results yesterday before beginning, I wish you, and your near and dear ones, very good health and safety, though, the previous Financial year closed on a note of improved economic
Since.
However, the situation changed rapidly with the emergence of the second view of the pandemic, with lockdown and restrictions being imposed across various parts of the country plunging, the economic recovery again into uncertainty, and also affecting our own operations since June. There has been an improvement in economic activities. However, the graph of recovery will continue to hinge on the pace of vaccination and containment of Earth, Revenge to the Future Resurgence of the panda.
The key highlights of the results for the quarter are as follows. Total revenue from operations, 4857 crores, Agonist 5000 crore.
Ivan if I don't foreclose for the corresponding quarter of the previous year, showing a decline of 3% outstanding loan portfolio, that 2 lakhs that in 2005.48 crores again is to not 981.7 crore as on 30th June 2020, reflecting a growth of 11% out of which individual loan portfolio. Indian housing loan portfolio, stood at to lack 16949.
37 crores against 1 lakh, 95,000.176, crores. It is up by 11% individual home. Loan growth reported a growth of 13% are now it comprises a little more than 78% to up from 7 to 6 point 6 a year ago. Total displacement for the quarter word, 8650, to corrode out of that dispersement in the individual home loan, what?
Grow as Agonist 3560 crores in the last quarter, a growth of 1, fifty 2 percent dispersements in Project. Loans, that is adorable loans, were 237 crores. Net, interest income for the quarter.
Gross as Agonist 1202. Regarding a growth of 4.5%, net interest margin, but stood at 2.2 percent as Agonist 2.32 for the q1f, I-20.1 profit before tax for the quarter. So that 1 ninety 2 point 9, 3 crore as Agonist 1,017.00 M, Crow profit after tax for the quarter, stood at 1 fifty, 3 point 4.4 crores.
organist, 817, .48 growth for the same period in the previous year, loan disbursement
During the quarter remain positive though. They are impacted during April May due to the Resurgence of second wave of COVID-19. Geographically. The growth remained evenly distributed across the various regions, with South Eastern Western South and the South leading our mobile platform homie. I have they got a very good pickup accounting for more than 3 thousand 4 hundred crore sanction. During the quarter on the portfolio, front the growth
The total.
Regard a growth of Levin said to lag 30, 2548 grows with increased focus on the home loan segment, the growth record in the home loan. Portfolio was 13% in terms of asset quality stays the exposure at default as on 30th June 2020, 12.5...93 as Agonist 4.12 as on 31st of March 20.21,
Total Provisions, as on 30th June twenty Twenty-One stood at 4727, .02 core reflecting, a provisioning 2%, ecl Provisions to the tune of 830 crows were done during the quarter. Towards the increase in The NPS asset quality continues to be an area of high priority for us. There has been a sharp increase in the delinquencies, mostly due to the economic activities being impacted in q1.
With lockdown and destruction many states because of second way of COVID-19, however with Improvement in economic activities and our increased efforts and Recovery, we are confident of controlling the same believe that this should Mark the peak during the quarter under review have witness collection from accounts which were classified as NPA as on 31st March 20..21 also do the amount, may not be significant. It reflects some
And in sentiments, last week, a resolution has happened in account that was intense elt, which resulted in regard of modern hundred crows odr during the quarter, stood at 2650 crows, we have been very closely focusing on the collection efficiency and it continues to be around 98% for the regular accounts. During the 3 months of the quarter on the funding side, we have witness reduction in overall cost of funds by 5.
Basis points during q1 at 5:22 and Iran are by 99 basis points. Incremental cost of funds has come down significantly and stood at 5 point zero, 3 percent for the q1f, i-22 net interest margins for the court has ordered to point to a Zionist 2.32 percent over the same period previous year, incremental spreads clock, 1 of its highest levels and stood at 2 hundred fifty basis points, during q1 fi 21.
So the funding environment and liquidy conditions remain quite favorable for the company. The company's offering Home Loans. Now at 6.6 percent interest rates for a specific limited period. It is the lowest rate ever in the interstate is if the lowest ever interested in our company project re D that is a re-imagined Excellence through digital transformation in association with the BCG group it has also been progressing quite rapidly and some
Adam video game.
Video PD have already been Road.
Which will take shape, probably not in this quadrant and the next quarter to come with this brief introduction. I would like to invite you for your queries. Thank you very much.
Thank you.
Ladies and gentlemen, we will now begin the question-and-answer session. If you have a question, please press star and 1 on your telephone keypad and wait for your turn. To ask the question. If you would like to withdraw your request, you may do so by pressing star and 1 again.
ladies and gentlemen, if you have a question, please press star and 1 on your telephone keypad,
First question comes from maruca janya. From Elara Capital. Please go ahead.
Yeah, I so so can you give the breakdown of in KL into core retail lap and developer? And you can even break down developer into a lot e and others.
Yeah, I'll tell you, I'll tell you this. I HL loans. Indian housing loans. And the stage 3. Now, actually, our list is required for you now correct. It comes to around 2.6 percent.
Which was around 1 point..9 in the fourth vehicle, you're correct.
Then is the Nano zinc commercial if you see that is over ring or 18%..18.9 1%, other thing is a non-housing individual studies.
10.9%.
It's all in the retail segment. Total retail segment overall comes to 4.5.7%.
Of 10.99 that is left, is it? Yeah, correct.
Could you explain the rising employee expenditures Rising employee expenses? Actually everything is normal only because once in 4 years, there will be major revision. So with retrofit effect of 2017, it is given. So now we have created our ears to the tune of nearly a hundred 30 crores.
So that is idea. Someone's are paid. That's why they have been booked in this quarter extended hundred, twenty 4, 2 hundred, 30 crores. That is a 1 of, which has appeared only in q1 of this year, which is towards the area payments of last 4 years. Almost you can say from August 2017,
Oh but you're still going ahead. We continue to expect or and region employee expenses of his 600 crore door. No, no, no, you have to look at it from the point of view that after you remove the 825 outgrows, the number comes to 1992 course so that generally will be a run rate. So your own ear increase, you can take around 15 percent, but Cotton Mather quarterly ammo,
Do that only 80 crores when you are looking in last? But last year, I Was 80 crores, were there? Now it will impact another 15%, that's all we can hundred what happened. No, whereas, for the quarter, this 1 of the amount is only the arrears, which were paid for the past 2. Deuce, that is the thing.
He's our practice normally to give you the wage revision. Once in 4 years that the suit effect density Grazing In Case, these are gone through
See actually on this matter. We would not like to make any comment because as you as you know, that we are working on the, whatever instructions, the stock exchanges have given and you would not like to comment on this matter, right?
After 2T provision that you made in the quarter of which is 830 growth of that. How much has gone towards restructuring? How much has gone through its provision COVID-19? Provision. As far as everything is in the ecl. Yes, everything is in the issue, and for restructuring, under the OTR, you have to create a reserve, not a provision.
That is not a provision.
Right? But all part of ecl, everything is the whatever has happened in the quarter has been reflected in the ecl provisioning in the pnl.
Thanks a lot.
Thank you, ma'am. Next question comes from a vegetable from otello's wall. Please go ahead. Thanks for taking my question. I mean, at least 1 that we have recruited all about. I think 3 point 5 billion in the quarter, I think it higher than what we had guided for during the last remaining school and the other thing is if you could just comment
What has been updated?
The shock, if it's quality to region during the quarter.
Which is first of all, let me tell you that this number that you're talking about is not only for the quarter. It is very in the in the earlier, in the disclosure, it is very clearly mentioned that this is the cumulative is not doing so quarter, right? All right, okay? And out of this about is your Builder, don't ya?
That is correct. I mean if you look at our GNP a which, which I think he suggested is 18.9 percent, something back and if we overlay this 4700 Crews of restructuring in the balloon. I think compared to an overall, big size of about 11,000.12,000 throws. I think doesn't seem a little too high. In other words, I would say 50% of the machine under stress. Now,
1 thing I would like to tell you what happened, people are taken. Agree this? What you call this OTR and odd, but some of the clients with whom you are in touch, even, they may even what you call Freedom, the auction also, even the well, now what the situation improves certainly they will be once again, they can anytime they can cause a restructuring know. So there are looking into that all of our even the developer loan book is size, is very small for us and wherever would be our second guest, it is all what you call know. They are in a capable position, not that way, they're totally
The slipping and Iain Pearce like the tender. So that way I think there will be forward. Look
The downside in this thing is almost all ruled out. That is the thing. Okay, what was your sheets to number systems developer book? If you see at stage 2 as far as the project is concerned, 2490
This is your stage 2 in the developer book.
You have hard to increase in your interest expenses by your incremental cost of worrying can actually come down. So to what has led to this entry. I mean explain why I mean he's coming off in your book and dingy place by which is actually the down sequentially also does come down both on the incremental as well as on the
Cumulative.
if you see there has been a reduction in the interest expense zero near also, by almost I think 5%
Piper in 7%.
And give you some numbers interest expense. In the June quarter was of previous year, was 3,000.764 as against that. It is 3000..549 this there in the publish numbers, okay? Okay. All right, all right.
So that's number, what is reduction on, a full year basis. Also, there will be reduction
So which which what you're trying to say is there's no point looking at a cube correct? Thanks.
Thank you, sir. Next question comes from Aditya, Jane from Citigroup. Please go ahead.
Yeah. You feel you have total total retail dispersement. Actually sanctioned amount of 65 grows in this quarter to 1
And then this person took place around 8 crores. So you won't exactly the total figure of ecl. Jess displacement during the quarter.
Outstanding ecl gate or disbursement, which to date has 140 crores a total put together?
Yeah, 140 crores. Unreasonably of in the quarter 1.2022.
What element has come to 140 crores? It's dispersement, cecl region. Yeah, I think so.
And this time, I'll tell you that for the first of all the impairment Reserve is not a provision. It is an appropriation.
So please do not mix it up with the provision. It is a it is a different thing altogether. It is an appropriation out of the P and L that is the amount of reserve on which you cannot service dividends
Right. And that would tear that impairment appropriation will be done in the second quarter. That is in the junior, September quarter, where balance sheets are actually required to be published.
It does not have any impact on the P, and L. It is an appropriation. Once again, I'm clarifying is an appropriation. It is not a provision.
I just know the way I should look at it in that context and then just lastly on the increase in India. If you could call it ratably, tell us, which sort of customers
No normally if you are speaking, especially in Tire 2 types, the cities and all know what happened where our good friends were very high last year. Also we got more than 50% of business from there. So there what happened to some delinquencies to are there may not be a the high ticket size in the Indian housing loan, even the small tickets here and there was some sleep, but mostly they are in the default for now. So, what happened? Now in the month?
Under the good recovery in the line, the second for end of June. So we are very confident going forward. I think in individual housing, loan segment, there will be sustainable and very durable, recovery henceforth, that's what I do.
Thank you.
Next question. Comes from India infoline. Please go ahead.
Can you please repeat your question? You're all very much.
Bond financial instruments to the provisioning know. There has been an increase in the MPS.
None.
no, I'm a bitch currently we standard 5 point 9, 3 overall,
Stage 2 to stage 3 stage 2 to stage 3. If you know, look at overall, at least some improvement.
So this is how much, okay?
Okay, thank you.
Thank you. Thank you. Thank you, Mom.
Next question, comes from srinivas Rao from HDFC. Mutual fund. Please go ahead.
Hello, hello. Hello yeah.
Yeah, this is a little, I just tried a couple of questions. When was that? So last quarter, the restructured book was 2009..70 colors? And now it is 5353 corrosion, is it correct? Hotel is 5000.350.
This this corner is thousand..350. Correct, correct. So incrementally goes 2353. If you were to see in what stage is it categorized right now. Stage 2 or stage 3? And
3.
Okay. But between stage 1 and stage 2, where it would be sitting majorly.
Majority will be in stage 1 only that's what the even last but also we had the same experience. What happened know what do you do? Always now started under OTR 1 which ended in the month of by end of June. So both put together stage 1 and Stage 2. It came to I thought Jared.
Because the restructuring is still going on right after the end of September right now, but generally picks up towards the end of the year about the closing date and amount will be less than 50 crores.
That night? No tier 2 is about 50 girls, only.
Not about it.
And is there any interest reversal that you are to take during the quarter because you're in, I mean, interest income is also, you know, down, 1 person qoq. So this is normal reprising of the book or this is a has an impact of you know hide in PH. Also know, it will be obviously interest income to some extent will also be impacted by the NPA increase, but it is also due to the fact of reduction in the eels in the on the portfolio.
But you still interested, what's in a very large number or something like that, something you can really do. It is not, this is not actually under India's, you are allowed to accrue in Delhi,
That industry industry versus are not generally. Yeah.
Okay, okay, I understand, thanks, thanks a lot.
Next question comes from amid preemption Danny from UTI. Mutual fund please go ahead.
Yeah, surely under the under, the 1 second, I'm telling you key under the OTR regime as per the RBI circular. Now what we have to provide is a blanket, 10% on the outstanding amount, right? Yes. So that is something which is compliant. Now what happens to the difference between the ecl provisioning? And de-provisioning under this Iraq Noms is under the Iraq gnomes and under the RBI prescription so it is not under the ecl computation that that balance gets moved in.
Appropriation of out of the P and L which is called the impairment reserve the balance, right. But for to to answer your question, fully pit has been provided as per the RBI Norms, that is 10%. So
Okay, that is a separate separate treatment. These are separate treatment. Ultimately, you have to report the numbers under ecl. This provisioning is also created and the balance is reflected as a appropriation of results. Now, if you look at as of March, that Reserve was around, say 280 or something. So that reflects the difference in the provisioning which is taken out of Reserve.
JP.
Yeah. What's this is? Yeah, this is a reserve, not a provision Reserve, not a provision.
Okay.
Yeah.
Thank you, sir.
Next question, comes from Shawshank. Verma from access. Mutual fund. Please go ahead.
Mr. Session. Please. Go ahead with your question. Hello would be.
How much on an absolute basis or as a percentage of our entire developer book today you're talking to stop still developer accounts or top 10 in PhD but developers in the NPA in the portfolio. Let us look at it. This way will be around 2,000 volts.
Okay, that's it.
Thank you, sir. Next question comes from piron engineer from CLS. A, please go ahead.
Yeah. Hi. I just have a couple of questions for SLI individual segments. In the second phase of restructuring. We've done only 40 crores or so. Like, why did we let slip into npl? And not restructure them. It is not allowing them to sleep. This time is still there. They have to be eligible. There are certain eligibility criteria.
Go to satisfy that and all they have to come under their, the even ratings Also may be required and say, you are a silly little marital. The rating is not required, but there are certain eligibility criteria.
But those were just be ticket size, basic eligibility criteria, right? They have to be, they have to be a performing account now.
I know. So as of March, they would have been performing, okay? And then we have the option to restructure but we didn't and then they slipped in this quarter. Are you think they slipped in the month of April before the circular scheme? Okay.
That is number 1. Number please, that not everybody is appearing after playing for because many people are paying intermittently. It is not there. Sucking, default completely they're paying intermittently also.
Scottish retail segment around the 1050 said numbers are accounted for
And so know, if you can, just give us those broad picture. We've got almost 9,000 crores of loans under npl in the individual segments. Now, what percentage of this end L would be customers who are paying, but just that they are more than 90 days overdue. So they're paying, but they're being with the lag and what percentage would be, those who are not paying at all, if you can give some color on this, that would be really helpful because our collection efficiency always look strong.
But then quarter after quarter or until the rising even in the retail segment and you know investors are just not able to understand how those 2 can coexist. So if you can give us a sense of you know what percentage of your npl book is paying that would give a lot of clarity to investors.
See if you have enough that number of time. So I just share some exact numbers to share, whatever numbers, see their number. The regular up-to-date, the regular collection efficiency on a month on 1 misses that is on the regular accounts that is more than 95% that is around..90%, there is consistently been there in in terms of total number of customers who have actually made some payments.
1 minute. No, I meant how many npl.
If I have planned Monday, April May there is movement was restricted. But you want or telephone and also hollow-point happening in the month of June. So 15%, we can take as it is a benchmark. It is happening now going forward. Definitely it will be more than even 30..35 %. Going to come up. No, that's what
We are looking at, you know so you know which means they've been upgraded back to standard. I'm asking, you know, there will be a lot of customers who are paying, but they are still 90 days overdue and there are they still remain as npl and don't care.
Completely approximately about 30 percent of the customers have been making some kind of payment number of ice.
Okay, some kind of supplement they've been making, but obviously, this is not equal. I mean adequate enough to pull them out of red, upgrade to the standard. So my next question is out of the restructured book incorporate, which is almost 4 and a half thousand or crows, how much of that is lrd or is it all Builder, loans?
Miss pentos, which 1?
The restructured book in corporate. How much of that is lease rental discounting because they are all. So we have 3.4 percent times. Because if I recall correctly there also there is only on the energy. Also, there is a restructuring, which is that a lot of the structures, for example.
Q4 it is it has been received. Yeah.
Okay. Okay. And just at the risk of reputation, sir, if you could explain exactly. Now, last quarter are impairment, Reserve was 284 crores as of March 31st, this 284 crows had been passed through the pnl of fi 21. Say again, I believe you again, it is not a provision, it is an appropriation, it is an appropriation of the p&l account.
Television is an appropriation.
Okay. My question is, what is that number as of June and this is yeah.
Yeah.
350.
The difference is part of a cecl or 4700 floors. Is that correct and incorrect? Yes, that is right.
Understood fine. Ticket. Thank you so much, sir.
That's all from mine.
Next question, comes from some plug-in Stanley. Please go ahead. Yeah, thanks for the opportunity. So I just had a follow-up question on that. So when you say appropriation so you mean that it's from an accounting perspective, it's part of the shareholders equity in. So I mean, it's not like a second. Yeah. Yeah. So it's, it's still a part of Tier 1. It's not like a separate loan loss reserves on the balance sheet for servicing.
And just a question. So this quarter, you have 800 crores of provisions and your and your net, net change in the in the industry. So this balance 250 crores, should I assume it as a write off?
No, I'm not getting you somewhere. There are some missing anything or anyone, the the provisions through your PL, are about 800 crores. And then the net increase in your totally CL which which which are reported in your PL, in your PPD is about 550 crows. So their difference between the 2 that is of 250 grams because ideally your provisioning to the panel, should have a say, add it to your ecl, right? So, the difference between
This to 250 crores is that Cheryl? Should I consider it as a Rite of
So this is not a write off.
So, so I mean, what is it? Sitting in someone under some other head. Yeah.
Okay. So so under what head is that sitting? Then that to 50 groups. I mean
the, the totally CL that you have the last quarter, it was
I think you are not able to connect the correct figures. Okay, fine, I will get back to you separately. Thank you.
Zeus, please go ahead.
Thank you.
My questions on video answers, you can thank you.
Next question. Comes from ICICI Securities, please. Go ahead.
Yeah, most of the questions are answered in terms of the behavior of this. And so maybe, maybe.
To understand the space and this coming into PN. What could be what could be? The let me clarify, the provisioning is already done. It is only the difference between the I get provisioning under the Iraq and the ecl provisioning, which is to be reflected to a reserve, which is to be created as an impairment Reserve.
So, as I mentioned in earlier, I, as I mentioned earlier, is that right now, the provisioning is made at the rate of 10% as under the RBI circular the moment, it becomes an NPA, it will become 15%. So that will happen. After the end of the restructuring, period somewhere. It is a one-month moratorium somewhere. It is a one-year moratorium somewhere. It is a two-year moratorium to answer your query right now. The provisioning is made at the rate of
percent as or The Reserve Bank,
Guidelines. But, you know, that generally in the, the required provisioning for an NP account is 15% so that balance 5% that balance has been given in most of the 90% cases,
Has we have given only principal moratorium, so the customer continues to service the interest. So that is 1 thing that we have to ensure so that there is some regularity in terms of the financial discipline. Now, I mean coming to your points, what happens if at the end of the moratorium, the customer is not able to service the principal or in the interim of. So he fails. So even in the interim, if he fails then the moratorium covers it thereafter after the closure of the completion of the moratorium period, if the
Customer is not able to pay. He will be do, he will be deemed to be an NPA from on that day at that point in time. Whatever is the provisioning requirement under the Iraq norms and also the ecl will be compared and whichever is is required, whatever. Provision is required, will be made.
and that is,
Think how much about 3700 Plus?
Will be quite High because BMI component housing loan has been released. And then people tend to respect any expectations in terms of. How much will you share with you whatever? Has been the restructuring waterwise, under both OTR 1 and OTR to, on the retail. So that will give some indication of what is coming up or what we can be expected. Say for example, in the fourth quarter that is March ending quarter that time there was no OTR to that time. It was OTR 1. So under
Irr under that OTR 1. In Q4, we had restructure 1200 crores approximately 1,196 something. So 1200 close, you can roughly take, whereas in the first quarter of this financial year, the number came down significantly. It came down to only 2 hundred, thirty 4 crores under OTR 1 and there are some around 45 clothes or 40 crores, under OTR to so that number and come down to 300 crores in queue.
1 of this year. Generally what we have observed is that
Towards the end of the OTR window. The number of customers who come that increases. Same thing happened in Q4. Also, all through the initial months of OTR, they were hardly any applicants towards the close. The number of applicants increase at significant game,
So, I think we can take an outside because what happened?
That is also an advantage.
Sure, considering the fact that for the non little segment, there are also eligibility criteria regarding getting the rp4 rating from the from the rating agencies that also in many cases, it is not. I mean, the obtain that
And W will get back onto the growth. And this is just a temporary kind of motivation which is there. Yeah, sure sure. I will tell you actually, as far as the growth is concerned, this, this q1 really was a good 1 compared to earlier already got more than 150 percent growth and even if we do activities, are in full swing from June onwards, then going forward. Now, this Q2. We are expecting almost all the same turnaround of Q4 of last year. We're looking at that.
So with that, what happened out, there should be good. Actually even the current June, which has recently gone. He 1 of the best in our of any Court in the past June month, in terms of dispersement. So, the next quarter, and also, even the Q3 also, we expect excellent business, especially for Q2. We are aiming at repeating the whatever we did in last year's you for. So that what happened? We can take a Quantum jump with a great bounce back.
Sure. Well, thank you and all the best. Thank you. Next question comes from the Shan cha from Mercury. Please go ahead. So just 1 off all the home loans and the lab loan and be else that we have is that we are standing at a very comfortable.
Great.
Only question is whether the individual loans or the lap loans? What percentage of those npls would pertain to projects? Which are like you know still under construction like we would have valued the say flat at say 1 car or but that is assuming that the property gets completed. If the project is stuck then there is nothing no collateral really to sell. So what percentage of our like you know, npl cases would be such where the collateral probably is not currently in existence, it is stuck because the
Object is stuck or something like that because otherwise would they really be of big worry in terms of write-offs or crystallized credit losses in the at least in the individual kind of portfolio. That's my question.
Yeah, individual individual a LTV to 3 different categories. Are there. I'm talking of most of all individual Home Loans, the ATVs around 44% that is on the book, right? For the non-housing individual, which is basically the lap there, the ltvs around 33%, and in the non housing commercial the until TVs 34% select that is, as far as the ltvs.
Irr concern. Now, for not housing individual and not housing commercial, the there is no execution risk because these are normally regiment and I mean readily available or income earning properties. The question, what you have raised is relevant only to the individual home loan segment. And here in knows, I've been please understand that our disbursement will also be vis-à-vis stage of construction.
LTV it is an interview on the book. It means that if the construction is 60%, then my X, my disbursement to that customer will also not exceed 60% current. That is a rule. So the LTV will will hold, it is not that, I mean our exposure is more than the stage of construction, so if the stage of construction is not considered then my my disbursement would have also not proceeded and whatever.
It happened. The example that you have taken that the value is considered, as the time of selling, it is not. So the value is considered the time and to the stage to which construction is preceded, and we are to value at every stage for now, as it is now, the total valuation of the book also is always, would be more than 1 to end of times will be there, like in Project here, also, so that that is taken care of all. It is not a problem understood. So, so just to get this, right? So in a case where you have,
They given a home loan, where the LTV is say, 50 percent, right. Under stage of construction is done about 60 odd percent, the V, the value over there in this LTV ratio is not the final selling price. So it is only the construction stage of construction because my will depend upon the stage of construction and the valuation done at this particular stage current guide. Okay no. So I am
Trying to. Okay, fair enough.
So just again to just like understand this a little bit better on the 10th floor and the building is now completed the up to the fifth floor. In this case, how do you, how do you assign a value to the flag? Which is not even in existence yet.
you know, in the case of a home loan,
That particular property will not have proceeded to that extent. Correct. Understood. So in this case, when you disclose the Van Andel TV of 44 percent in case of a home loan where the disbursement or sorry, where the project has not been completed. The value considered is the proportionate stake of land or whatever, it's not the selling ultimate selling price.
From the home loan portfolio should be near zero, right, because then LTV of 44 is super comfortable. Then should be timing difference. Yeah, I will.
Share some numbers, which will give you some comfort right off. That is Ultimate loss. See, 2 years cumulative in the home loan segment, we have done, less than 300 crores, net and bottle amount of disbursement that we have done is more than 4 lakh crores. So that way if you look at it ultimate loan losses will be in single digit basis points. But yes, there is a time which is required for Recovery, okay?
And when we do the recovery, the interest accumulated is also recovered, right? It's not just the principal amount. Mostly it is, it is also has not waived some penal interest in certain cases. We have to take a look out not the exact amount.
Yeah, but yeah that's that's all I was trying to get to. Yeah. Thank you so much.
Thank you, sir. Next question comes from agni's Chauhan from the lanes newborn life. Please go ahead.
Thank you so much for taking my question. I want you to understand that we have filed an appeal with the sat on the capital raised receives, what is the status of the status of that.
Please note it very clearly, we have not filed any appeals with the SAT I repeat we have not filed any appeal with the SAT we are only in touch with the exchanges, whatever. We have also not received any instruction from CB only the stock exchanges have been formed and you can refer to the disclosures that we make on the stock exchange. I would feel that you should look at the disclosure that we have made to Stock Exchange stock-exchange have asked us to win.
All the result of the e-voting and exactly. That is what we have done. We are waiting for the instruction further for the instructor is awaited, you have not filed any appeals with the SAT. Yes, that is so cliche. But there are some media articles which we have, no, we are
No. See exchangers are actually asked us for certain place in the disclosure disclosure. I would request you kindly go through the discussion. We have given very clear explanation Etc. Has been put in place with the stock exchange and said is available. You can look into that. Yes okay so thank you so much.
DSP, mutual fund. Thank you.
Property and they cover the money and because that always has his negative customer impact. And so on. That's the only question sir, thank you and normally what you do when the people fail and all there will be lot of article. Follow-up will be made to people. Once, again, regularize account. And all in case it is almost had become, default NPA. Then again, Anika long time. Then people also try for all OTS and all you do not over then what happened on the surfaces of the proceed. And as for that all the we take is
opposition conduct auction, all these things are there that have followed themselves and the only normal procedure
Yes, I do. Do you have any idea Quantum of sales of properties that have done to recover monies? You said 3 nickels is right off? So equivalent and I are like that, what do you want? Actually, you could give like a 1/2 year. History. Also would be very good sir, because the recent, the recent past to because of code and all surfaces, and all we're not in the sense, not in the actually on the, on the level.
Run. And then you really are out of our
NPS which are Gandhi and PS. You could have seen at least question, suddenly will be the achievement level as far as the record, is unconcerned by selling the properties apart from selling properties also, just issuance of surface. You notice also in many cases evoke some action in the Boer War.
Sure, I understand it. Thank you very much.
Thank you, sir.
Next question, comes from a kit Agarwal, from a low Stone Equity. Please go ahead.
Yeah, I just wanted to be on the the employee expenses. I understand it's about 125 on time but could you give some more like what is it about?
Out, that the salary amount, you're asking. Yeah. See what happened in our company. We have got 1 policy wage policy, we revised. We don't reverse held every year here. Once in 4 years, hopefully will give escalation salary so that was due in the from the year 2070 to 2021 it has been done now in the month of June. So the arrears are to be paid from 2017 onwards to 2021 that has come to 125 crores of more than anything. So henceforth what happened only?
regular salary will be paid computer layer quarters, there may be an increase of 15% overall as for other pure distance and for centuries every quarter every month like this,
And given that we will do every 4 years. It's kind of given that there will be some expansion and accrual basis. By the way takes like a one-time hit, why this accounting policy earlier there is nobody called know that will be rude or something.
But going forward, what we have decided is there an amount of next cycle whenever it will be do that is maybe in a couple of years. From now from that time onwards, every quarter and somehow, small amount might be because if it comes every quarter, then the amount will be in just maybe a few will not even touch double-digit force. Yes, very small amount of very small amount every quarter. It will be Prudence some 10% are that you can take and provide for that 1 dilute, right?
Okay. And then just, but on the other hand,
And the other 1 is as per I am, right? The RBI provision is cetera. Has to be created as per the I guess which is being done. Only the balance between in days and I guess has to be reflected to Creation when deserve. So please do not confuse a creation of a reserve with an OT a they're completely different things.
Or they are also what happened people, they should be eligible. Know first of all to be able to work well with the are then unless they're eligible, please don't confuse the provisioning that I whatever is required is being done appropriately and correctly. Under the 2 different guidelines that is the RBI guidelines of temperature that also is being done.
Hey, we have we have been tracking for it.
Do you have to here? Also, you have to note that whatever, Pro-V whatever collection happens, What that particular month, we considered for the regular accounts, only that much of connection because if you add the collections of previous month's, then sometimes the number maybe even exceed a hundred. So only for the accounts which are due for that particular month. Get reflected to the NPA numbers.
And this number has been consistently.
No, that is not to be given to 1 corporate corporate corporate.
Corporate. Okay.
In the September numbers but it has, it is a progress. So that's why we thought that it will be shared with stakeholders, understand understand. Okay. Thank you so much. Thank you.
Thank you, sir. Next question comes from a be shaking from HSBC. Please go ahead.
Yeah.
76, in the interest of time. I read out the numbers. You can note it down. Okay. Okay. You can just note it down. This is as per the in their soul will not talk of this is stage 3 that we are selling assets. Total assets are also on India's wishes, right? Sure do. So I'll just tell you the numbers with request you to kindly note down.
Quickly right? Yeah, it individual Home Loans, the stage 3 is 2.6 percent if you want, number the knuckles, 4727. So then in non-housing commercial, the stage 3 is 18.9 percent.
The, the state, the amount in terms of amounts of 2707. Course, 2807.2707 got it in non-housing individual, which is mostly the lab except ra. Their the stage 3 is 10 point 9..9 percent who can take 11 percent and the amount is 225.3 crores 2253, okay? And the project, the NBN number is 20.
4.4%. And the amount is 388.9.
He 889. Okay, so if I add up all, this is in the book, right? So it
Okay. Okay. Okay, what? What is this - kitchen? Can you give you total put together the lrd book will be around 9,000 crores?
And how to share separately. Okay. This is this is fine. Yeah, thank you. Yeah.
Thank you, sir. Next question comes from raghav Sony from Brand Capital, please go ahead.
Next question. Comes from mr. Rago, Sunni from Brand Capital. So please go ahead with your question, sir? Hello? Yeah. Yes sir. I was just
About dependencies 34%.
PCI.
Okay, thank you, sir.
Thank you, thank you. Thank you, sir.
Next question comes from Surat Kumar from JPMorgan. Please go ahead.
Mr. Souder please, go ahead with your question.
Mr. Souder Kumar from JPMorgan, you can go ahead with your question.
There is no response. Sir. Next question. Comes from mr. Parameshwara. Yes, from Jeffries. Please go ahead.
So if you look at slide 20 you said that ecl provision in stage 1 and 2, total is about hundred and 1314 crows. Now the restructuring side, I guess or on a 10% basis, you need 550 growth. So, if the balance 420.430 is that the impairment Reserve, Andrew has that 280 growth. And let me tell you again, I think you are getting confused. Please understand.
Bling, which is done for the OTR that is under the RBI Iraq Norms. What you're talking about is the provisioning under ecl? They are completely different thing is really the difference. You said indifference is routed through impairment. No stage 1 and Stage 2, the total you code is different
It may or may not contain. They're completely different things. The pope has moved up in this quarter impairment Reserve that you work. Only, as of last quarter here, it has moved up as it moved up this water. Yes, it has, it has. So what is that number outstanding now around 350?
350 is that I learn number. Okay. Okay, thank you.
Thank you, sir.
Ladies and gentlemen, that would be the last question for the day. Now, I hand the float to the management for closing comments.
I thank you, everyone.
Looking forward. Now, the next quarter.
We then have a great bones back and we are also very much very much confident that the disbursement especially between higher scale across. Then once again, I will again reassure all our stakeholders that were fully
Committed to address all the concerns and I also thank you for your continued support looking forward for a very good and also more than expected growth in this quarter across all the regions with a very good rate of interest, whatever, having, with involvement of all our team members, we are looking for repetition of what we did in the last year, Q4 in this Q2. Now. Thank you once again.
Thank you, sir. Thank you, everyone. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation. And for using dudes about conference call service, you may disconnect your lines now. Thank you and have a pleasant evening.
Your conference is no longer being recorded.
David.