Half Year 2022 LIC Housing Finance Ltd Earnings Call Hosted by AXIS Capital Holdings Ltd
Please note that this conference is being recorded.
I now hand the conference over to mr. Praveen agrawal from axiscapital. Thank you and over to you, sir.
Good morning.
Thing Finance limited as you are aware, lhf and declared the Q. Two 522 results yesterday before beginning. I wish you and your near and dear ones, a very, very good health and safety with gradual Improvement in the pandemic situation and increased pressure vaccinations. It is heartening to note that normalcy is returning to our lives, which is also reflective of the pickup in business activity.
But he's on the economic growth with the greater relaxations of restrictions sentiments have also improved very significantly. It is in this backdrop that our business was conducted in the queue to of fi 22, the key highlights of this quarterly results are as follows. The total revenue from operations 4700 crores. Again is forth or 969 crores for the corresponding quarter of the previous year with the decline of five.
125 percent outstanding loan. Portfolio, stood at two.
Black 37,000, 60 crores Agonist to lack 13,000, 349 crowed as on 30 September 20 20. It is reflecting a growth of 11% out of which individual Home Loans have reported growth of 15%. And now it comprises a little more than 79 percent of the total portfolio. It is up from seventy six percent a year ago.
The total displacement for the quarter were 16,000 hundred ten crores, out of that. The disbursements in the individual Home Loans were 14,000 3, 30 crores against 10,000 373 crores, with a growth of 38% This persuasion project loans were 353. Course.
The netted net interest income for the quarter was at 1173 crores. As Agonist 1,000, 238 grows net interest margins for the Q2 f-22s. 2.2 percent as Agonist 2.2 for the Q, one of fi 22.
Profit before tax for the quarters for that three. Not eight point nine five crore as Agonist 1009 Point 2 6 crore profit after tax for the quarter stood at 247 .86 growth as Agonist 790 .90 crore for the same period previous year load dispersements. During the quarter was extremely robust with the total displacement at 16,000 hundred, ten crores recording, a growth of 29%.
The original Home Loans to continue its strong growth and posted 14,313, crores, Agonist 10,000, 373, crores in the Q. Two of a 521, a growth of 38, percent growth was uniformly, spread across all geographies and across both larger and smaller centers, especially Ty. 2. Type 3. It is extremely encouraging to note that we have achieved a hundred and thirty two percent of the precoded levels in terms of our
Q2 disbursements when we compare it with you to of 1920.
Honda.
Portfolio, growth front, the total portfolio regard, a growth of 11% and now it stands at to lack that the 7660 crores with increased focus on the Home Run segment, the growth record in the home loan portfolio, was at 15 percent for the quarter. In terms of asset, quality stays three exposure at default as on 30 September 20, 21 should add five point. One, four percent as against five point, nine three percent as
On June 20 21 in our earlier interaction with you after q and results. We are assured our stakeholders that we strongly believe that the peak has been marked and subsequent asset quality would improve. It is very much hardening to note that stage. Three assets have declined by over 1500 crores from q1 of fi, 22 levels on account of strong effort, put in by all the concerned, we have now, a very strong confidence and conviction that
the coming quarters will show greater improvements.
This quarter, despite the reduction still three assets. The provisions have been increased to reflect higher PCR, total Provisions, has on 30th September, twenty Twenty-One, so that 5354 .9 car or reflecting a provisioning covering ratio of forty three point, seven, two, and stage three. It is up almost all by nine point, seven, two percent, as of June, 20 21,
OTR during this quarter to that mm 141 growth lower than Q1. Figure of 2003, 50 crores. We have been very closely focusing on the collection efficiency. That is also shown Improvement. And now stands at 99% for regular accounts, the highest since the pandemic broke out in Mars 2020, on the funding side. We have witnessed reduction in the overall cost of funds by 12 by 6 points during the acute or 522.
Despite the hardening in the bond yields during the same period incremental cost of funds has come down by 13, basis points on student 4.9%, for Q2 of fi 22 net interest. Margins for the quarters 2.2 percent as against 2.2 percent over the last quarter, the decline being attributable, due to income reversals on OTR accounts.
Then incremental spreads.
Continued to remain at healthy levels and stood at over 200 30 basis points. During the six months, ended, 30 September during this quarter, the company completed the peripheral issue of equity to its promoters, LIC of India amount into to 2035 crows. This will add to the tire one, capital of the company during the quarter. The company also tied up through the India, post and payment bank, for distribution of its home loan products.
We just be friends auction. I would like to invite you for your queries. Thank you very much. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question. You may press star and one on the Touchstone telephone. If you wish to remove yourself from the question Q, you may press star and doom participants are requested to use handsets. When asking a question ladies and gentlemen, we will wait for a moment while the question Q assembles.
Yes.
The first question is from the line of orbital debris wall from Moodle allows wall, please go ahead. Thank you for taking my question. So I have two questions. The first one is on your nails 20, which is going to do to decline and sir. Also suggested that these were income reversals motr account. So you can kind of briefly explain why these income reversals on OTR accounts. What was the nature of
Means restructuring which warrant and what was the Quantum of income?
Can you come up with your second query so we can address both them together? Yes, sir. The next two weeks. I mean now I mean, I understand the kind of disgusting the last time in college that. I mean, it's really expensive. But what is the nature that we can kind of expect going ahead and lastly on your your provision during the quarter while we highlight that?
State Street numbers are actually kind of improved on the to to visit. But what is it that kind of moral increasing provision covers? I understand. We used to run a high provision cover the in the past quarters, when you kind of ask you. I mean, we typically get to understand that based on your assessment at that point in time, the provisions were adequate.
Do you think that? I mean there is a need to improve the PCR or should we think of that?
No, one thing just I would like to I think your questions were two three questions for their as for the provisioning is concerned. I would like to clarify you that because every quarter of course, last year, or last quarter, the if you see the provisions were higher side will be around more than 800 grows. This quadrant is slightly less to 600 crores here. What happened? No, the OTR, especially with our OTR is nearly 3.5%, Almost all it is more than 3% of for loan books as if you look into that. And mostly now,
This court has happened on the retail segment. So, nearly two thousand one and produce were added this year. After this quarter, compared to lower Lair, Court has come down, but overall the provisioning of free 110 percent minimum required to be made on the whole the OTR thinking more about the state's three hotels were taken care of full. So what what happened? We are adequately provided for. So no need to have any what you call the future, any some sort of body call uncertainty. So our now NPS now we're very comfortable that compared.
To last quarter. The actually what do you call the NPA amounts of come down by more than one ton? Find course if you look at in retail segment itself, and and in the project in the mainly, the developer site, our loan book is only 6% and Dot. So there what happened? More or less know not much of a addition to the NPS up there. So we are very comfortable. Now, as far as the, what you call the aesthetic qualities concerned, laughs a mall. So we told you very clearly that the worst was behind us, the similar way.
It has been proved that. Yes, the recovery. Now we have improved and then our teams are still.
Under what you call improvising our, even all the levels at our collection efficiency. Also, now if you look at the regular cases where our collection efficiency is more than 99% dollars. So I am very sure that the provision what we have made or adequate enough so that what happened the program coordinator. She also will be more than 43 percent now and then as far as the the other two items are concerned, I think CFO will tell you. Yeah. Yeah. Yes.
Actually, two things. Of course, what remedies are mention about the provisioning. Also, if you see there is no secular Improvement in the GNP a, but of course, there's been an increasingly provisioning cover. So as a result of that around 600, close of probation has happened. The other thing is that your query was regarding the margins. See, actually margins. If you look at it, there has been a reversal of Interest. Now, what happens I'll explain to you this at the end of September the
Amount of loans under one time, restructuring one. And one time restructuring to put together is around seven thousand three hundred crores. Now, for that seven thousand three hundred crores OTR because of the, the OTR given there is a recalculation of the irr and the effective interest rate because of which there has to be an interest reversal, which happened. This is a notional entry that has happened because of the OTR impact and that is the reason why as and the impact of it.
To the tune of around 250 crores for the quarter, ended September. The corresponding figure, as of end of June with five thousand three hundred crores of OTR was around hundred and 16 crores. So, 135 or crores of extra reversal of Interest has happened in the queue to itself. Now, what is the impact of it on the margins for every 100 crores of loss of net interest income?
The impact on ni m is to the tune of around 16 to 17 basis points. So for a hundred thirty five crores of such reversal. The in the impact on the net interest margin, in terms of basis points will be clearly in the range of around 20 to 23 basis points. What is also to be noted, very important thing is that sequentially there has been an improvement in spreads as or MD mentioned at the beginning of the discussion that there has been a reduction in the cost of funds. Both X both.
On the incremental side and both on the on the cumulative Side by around 12 to 13 basis points between the 1st, July and 30th of September. Despite. The fact that interest rates have been hardening in the system. Sequentially. There is a drop there in the interest cost, which has resulted in an improvement in spreads. But because of this reversal of interest income. That, that that is the reason why there is a drop in the report.
Net interest margins.
Third question regarding expenses.
Your third question was regarding the expenses. I think expenses there has been a couple of one time which has happened in Q. One last quarter that we had explained because of the payment of areas this time. Also, there is an impact of Actuarial valuation on. Retiree benefits to the tune of around 45, 46 crores. So, if you net, it of, then the normal increment, in the other expenses should be
In the range of around 15 to 20 percent, that should be an ideal run rate.
Got it, sir. This is useful because this increase income they were still on the OTR book. Is notionally nature. Would you say that because impressed kind of continues to accrue? You will maybe see some interesting. Come right back in the coming quarters as well as and when these oats these accounts come out of OTR.
Thank you.
But it is empty. We'll just give me comparatives will request everybody to note so that we don't have to repeat it again. As part of the mission, other end of September is concerned. IHL segment, stays three comes to 2.25 percent. And in the non housing commercial. It is 14.8 3%. Then non-housing individual. It is nine point seven six percent.
So this is as far as individual total is concerned. Then in the project. That is the developer book size. They are the npl levels. Sorry, the Stacy either 23.94.
Then Worrell, if you see our end goal NPA grass in PA compared to last quarter from five point nine three, it has come down to five point one for now.
There are no.
All right. Thank you so much, sir. I will come back into question to you. Thank you. Thank you. The next question is from the line of Aditi. Gene from Citigroup, please go ahead.
Thank you. Could you tell us the current classification of the research? And also, the total outstanding is a children's about 7,300 tours. Where are they classified now? In Phase 1, 2 or 3?
See, most of the most of it is either in stage 1 or stage 2.
because,
When we are doing OTR, when the, the condition of OTR is that they have to be standard assets.
Got it. And is it okay to say that it's largely in stage 1 as you said in the last quarter or is a sizable amount of pitch to here. And so like you've been in this quarter in stage 3, increasing the coverage. Is there a blue one stage two assets? That the coverage there? Is it enough? Or would you take another chance to be set up? Also to create more security question.
No, there'd be in the stage to the this, the provisioning cover. It is adequate. Considering the underlying valuation. It is adequate.
Got it. Thank you.
Thank you. The next question is from the line of zoo. On from point 72, please go ahead.
Thanks so much.
So why any kind of like a commission? And also, you know what accounts for that? You may need to do beeps also of the kind of shock you.
No, I think, Joel what I understand from your observation, this quarter. The Niam is 2%, What it was in June was around 2.20%. And what I mentioned in my earlier discussion is that 435 cores of interest income reversal. The impact is around, 22 to 23 basis points. So that actually takes us, notionally adding back to more than last what it was in the June quarter. Now, what is to be also?
Noted is that the total impact of reversals in totality is 250 crores. The increment is hundred, thirty-five course.
So, if you add back a 250 crores, notionally, then the number actually reaches much higher.
Right. And just
That's what I read is concerned of the 6.6 is an entry-level water offering really going on. Well, think they even the volumes are picking up very well in the last quarter. You can see good growth rate. Is there in the dispersements also, I think we have shown more than nearly already. Where is the pre COVID-19 levels? As far as the court is concerned and that way, good traction. Is there across. And then this 6.6 is also will give because he did into the what we call civil scoring.
So our actually selection will be very, very sound enough to take care of a sick. 66.6 is whatever offering only to the selected customers, the to the best customers for based on a credit score.
Okay, so got it on the cob. Which formation coverage do you think, are we comfortable with calling level of coverage? Or we give it a capital, lease more comfortable to continue to increase the coverage going forward. And if that's the case, do you have like a Target or car number? Right? This car is I think we're now it is full. It is, it is very much adequate.
At this level, going by the valuations it is, I think earlier was only 34 together. Now, it has come to 43 percent. Almost all nine percent increase is there and mainly to take care of fully. What do I know at this level? I think we from our side. It is almost 12 fully provided for because NPS also, you see now they have reduced. Another favorable point is over the last quarter, the volume of even non-performing assets also come down by nearly 1,000, find the crows.
That also added to this is a very good positive trend. So, further provisioning may not be much on the higher side.
We are educating cover and I'm sorry. Just come back to the question. Maybe I'm missing something. I don't really understand this. Well, but if I look at the increasing OTR, so now, I think one percentage point or so of the book and this quarter we have about 80 and increasing OTR.
Why won't the income Universal this quarter be higher than Oscar?
The reason is that the tutor, the the income reversal is on the total outstanding OTR, which was, which has increased by 50%,
So earlier the the interest, the interest was only for three months on 5300 tools. Now it is for the six months and for the six months it is seven thousand three hundred crores.
I see car so that the income, the income.
No, they the OTR.
Kim has now ended.
No. More additions will be there, one thing. Secondly, the OTR things also may be coming out of that because we are have now what you call we are after this all the borrower's so that what happened, people can Avail, then who are now actually the income levels are better off. Now the what you call people are getting service in time, but definitely when our book is kill, our portfolio is mostly on the solid structure. We're very, very sure that many borrowers will come out of the OTR in this quarter. Certainly because there are in that stage 2.
Anastasia Alpha, definitely come to Stage 1 that way, there'll be an improvement. I think we don't see much of the vertical requirement of the reversal on the higher side.
Tall account in the OTR. It will still come out. Yeah, I think see what we mentioned is that there will be no further addition to the OTR pool. It is actually coming down.
Thank you so much.
Thank you. Thank you. The next question is from the line of subbaraju. Mishra from systematics, please. Go ahead.
All right.
Yeah.
But that is India's only of India's, only okay.
This is happened. This is not because of a stage three impact, but it has happened because of the fact that the effective interest rate has changed.
Because of the implication of the term.
Got it. Got it.
See.
Well, that's not very clear. Just giving you there are 85 officers in the top Seven Cities and hundred ninety seven offices. In the other cities. Top. Seven cities are the Mumbai. Metropolitan that NCR.
Actually, if you look at the, the way the OTR has happened majority of the corporate account that happened in the fourth quarter of last year, in the first quarter of this year. Whereas in the second quarter, the large ticket project known cases were very, very small, hardly some for five cases at come. Whereas good amount of retail loans had come for OTR in Q2.
in the under, under the OTR, to
Shelter.
Thank you. The next question is from the line of canal. Mara from MLB, please go ahead.
Good afternoon. Gentlemen, thank you for the opportunity. One question, given the incredible step up in here, too. Would you be willing to share with us how the OTR to N1 book split between the individual housing? Commercial, own individual non-housing?
See. I have we have got the details of the individual and the project. I do not have the IH individual home loans, non-housing corporates and other break out break down just to give you. If you want quarter ways. I can give you cauterise first quarter about 2,000 70 crores was under the Builder, loan category.
and,
275 crores, goes under the retail category, which comprised mostly of the, the non-housing corporate, and the non-housing individual and Home Loans. These are the three categories there in the second quarter. The project one was only sixty two crores. Whereas 2078 crows, that is 2078 crores, was in the individual category, comprised of all the three sub segments. That is NHC, not housing commercial in nature.
By non-housing individual and IHL, which is individual home loans.
And that's really helpful. Thank you. And if I was to qualitatively ask you about this 2078 cross, but in the individuals between the non housing commercial on housing, individual and individual housing directionally, which one would be the largest contributed. And the reason I'd be transparent. The reason I'm asking, is I'm trying to handicap the odds that were forward and we have another one of these, you know.
Slip on account of the nature of the underlying asset versus the stress. They are experiencing in the real economy. This is mainly due to the radial only, all our 2078 course, what you mentioned. Now, the OTR to the last court is only from the retail segment. The ticket says, maybe around 25 to 30 lakhs. I doubt that whatever age size.
Got it. And therefore the sir given that the dominant car shed is retail. It is 25 lakhs. It is arguably, you know, non-salaried retail, when you re structure is not only because the bill based all things are there. So on then, moreover our teams are working.
Bring out these people also out of aadya. So with the facility of this, some conditions given and then going forward. Actually. These numbers will come out of the OTR suddenly will give out of Philip. If you look into the collection efficiency. Also, now for the regular accounts already did 99% the best, we have seen in the I think even pre-code level like that. So I mean, just just to give some a little bit more color there, your query with that.
Probably you would like to know why there has been so much of people going in for OTR to. Now, let us look at the bank backdrop on, which the OTR 2 was announced. It was at the time of the second surge second wave of the COVID-19 and that point in time. It's something which we had shared earlier. Also, at certain times. It is from the customer individual customer, or even for the commercial customers. What is more important at that point in time is to preserve cash, so
Then when and OTR offer has come from the government that through there.
Regulator there opted for it. Now. What is the probability that they will come out? If you look at the earlier year, last year, the moratorium now, 80% plus of people who had opted for moratorium of do at that point in time have come back on full recovery. I mean on full updated more. So as, and when the external situation improves, and it has already started improving more and more people generally come out of these kind of
What kind of OTR Zone you and if you look at the Q, one Q, two movement?
Got it, and and and off those accounts that came out between q1 Q2 from the OTR. Was there any accompanying right back of the notional income reversal? Or if you if you look at the statutory disclosures that we have made total amount of exposure. There was out of 7,000 398 right now, because the OTR to was mostly mostly invoke towards the
Of the quarter there has not been much scope for people to come out of the OTR to implement it as of 30th September. Only the implementation was going on. Now progressively. We will see the outstanding as compared to the invocation coming down.
Slapping Motion in the individual segments, it'll happen. Definitely there is a positive on that. Okay. Thank you. Again. Thank you. Thank you. Before we take the next question, a reminder to the participants. Please limit, your questions to one participant. Should you have any follow-up? May be requested to rejoin the queue? The next question is from the line of Kenosha from ICICI Securities, please, go ahead. Yeah. Hi. So the question is with respect.
Don't know the Stitch to break up. Last time we highlighted in be comfortable. Upper. It was 2,400 order close out of ten thousand problems in stage 2 between the comfort and the non-corporate. And also if you can share the non individual non-housing breakup of 35,000 crows. How it has moved on this point.
see, first of all, the commercial
Housing commercial and non housing, individual was 20,500 1 crore. So it was around 35,000 Cruz, Thirty thirty, four thousand eight hundred crores. As of September, the non-housing commercially. 13,600 growth rate has come down by 700 crores. Whereas the non-housing individual has remained more or less at that level slight, increase of 200 crores 20500. See,
700 ghost.
And total, if you see there has been a decline.
The non-housing commercial and between June and September.
Then switch to break up. It is to break up for. I'll give you a comparable State. First of all, is that in stage, one, in the non-housing commercial model is it has remained the same in stage 3. There has been a decline as we mentioned in the beginning and Stage 2. Also, there has been a decline from 13,000. Sorry, 1362 crores. It has come down to 1292, crores, in stage 2. I'm talking to June to September figure and from
1927 course, it has come down to 1507 course. So there is a 400 Cole reduction in the stage to also and consequent increase in stage 1.
Sorry, sorry asked each to, there was a decrease. It was decreased by 400 crores in the non-housing individuals.
Non-housing individual. Okay. Okay, and the corporate Housing Development is also, there has been a reduction by almost 70, 80 crores in stage 2 itself.
Okay, so that's it on the 17th. So stage 3, and Stage 2, both have come down in both these categories.
And just to clarify in terms of this restructuring. So now the provisioning on this restart.
Reading space to on the corporate developer. Yeah. Okay. Okay. And order to Wishing on the restructure is routed to impairment allowance. Even in this quarter. Yeah. As you yeah, okay.
I'm just trying to reconcile the absolute for non-commercial and illusion.
Take three from 2.6. It has come down to 2.25 absolute absolutely possible or I'll take it offline. That's okay because we have already given all these numbers for many times. Yeah.
Okay.
We'll get so, so on Monday from next quarter, based on the reverse. And so, how should one thing about underlying margins? Next quarter? Underlying margins. What is more important is to see the trend in spreads? Because that is what will be reflective of the overall efficiency in in profitability spreads have increased sequentially.
There could be some notional entries of reversal of interest. But if you see the operating spreads of improved sequentially,
Right. So my question is, when should we see margins to normalized to, you know, like three, four to 21 levels if you re sorry 3, March 21 devil.
So we should be the supply of quarter. Certainly see those never come back and this is perfect. Thank you, stability in spreads and Improvement in spreads to the extent of the interest rate movements, but overall, they will be stability of spirits. Understood. Thanks. Thank you. Thank you.
I know, it will come down see because outstanding loan of the OTR, also going to come down the slowly.
Okay, okay.
So on the expensive side, you know, if there are other stuff expenses of around 140 thousand courses that have enough over there. There is a wonderful round 47 crores which has happened because of the Actuarial evaluation of the retiree benefits. Total of 47 closed. Eyes is the amount, which is there.
And a hundred or close establishment expenses. I think that sort of will remain between 9200 will be the ballpark.
What the <expletive>? Thank you very much. And thank you. Thank you. The next question is from the line of weed. Elijah from Credit, Suisse, please go ahead.
Will come. It will keep on coming down. Yeah.
Okay.
Thank you. The next question is from the line of grand engineer from clac, please. Go ahead. Yeah. Hi. Thanks for taking my question. I just wanted to understand why would be effective? You will change because of the elongation of the term of the loan in restructuring because of the change in error.
No, no, but extended by the same irr for that is based on effective interest rate. No II get that. But in that sense, if you are extending lecture for three months for an OTR, it would not be an interest-free extension of treatment would it?
No, it does not interest free but there's no cash flow run and there is an extension of term. So the term is for 17 years will become 19 years or term, which was five years, will become 7 years like that. So, it's sort of a loss of interest on interest in a way, because of those. No cash flow. Okay, 135 crores. This quarter hundred and fifteen was the thumb of for Q and 1q.
You almost because the OTR started actually it was the end of one Cube.
Okay, okay, but what about then, the interest right back from the reduction in? Npl? That would have actually positively helped our interest income line. It doesn't matter. No, sir.
Technical discussion. If there is any specific you can,
Okay. Okay. That's that's I know that. That was all I had. Thank you. Thank you. The next question is from the line of sight from JP Morgan, please, go ahead. Okay, so that developer is about
Sorry, this W is 2078 Cruise.
Okay, and in q1, it was very low, right? So, yeah, so
Under OTR Cube.
Plus Q. Okay. Okay. Alright. And okay. Bye. You will find the disclosure given in the printer in the publish numbers. Very clearly. It is mentioned the category wise.
It is there any notes, the notes to the results when number 6 C.
Pool table is given.
Thank you. The next question is from the line of among Shaw from go Tech mutual fund, please go ahead.
Yeah, thank you. The next question is from the line of social media management, please. Go ahead.
Hi, good morning. You can speak a little bit about the comparative.
Ladies and gentlemen, the line for the management is reconnected. Just about to do, you may please proceed with your question?
Yeah, hi. Good afternoon. I wanted to know the competitive scenario. And are you seeing balance transfer out? I just wanted to understand. How is it looking? Is that a lot of BT out that's happening or
I'll be David earlier, Trend. What are you also? Our traction is very good, especially in the dispersements in Hindi girl. Home, loan segment. We have shown tremendous growth, nearly 16,000 crores have been the displacement in this quarter itself and showing a growth rate of almost all hundred. Thirty two percent over the vertical. Last one. We already reached the pre-code level there. Also.
Then again, if the if you look at the portfolio, also, there is a 15% addition. That growth rate is very good. It is a very good, especially in the Indian Ocean growing segment on the way forward. Actually. Now the rates are at the lowest level six point six percent, and even the offers given by some Builders here. And there in some states are too. That even the property rates also more or less maintained. And then, with all these things, now, the introduced by the government. For vaccination Drive, they only have
A lot of people are now in a position to move very freely. Then select the
Parties after visiting them, especially on weekends. And all we are having a lot of what we call positive moral. So we are highly hopeful that the next quarter will be the best one are far, far better than his quarter. Of course. The last quarter's has been the best in the history of our company. That also was there as for the disbursement for concern.
How much balance transfer of you had in the last six months? If I may ask?
Progress on the Swami. It's now been nearly three to four quarters. Where is it? What is the status?
Dad more or less? Same stage. Only. There is not much of a fraction of s in there. Okay? Okay. Okay. So thank you and all the best.
From HSBC Securities, please. Go ahead.
I understand what the outstanding the provisions are there, currently on the restructuring group of seven thousand crores and what could be the incremental Provisions coming over there, as well as what, what how are we looking at overall credit costs going forward. So what all credit cost last year was around.
Basis points here before that was around 48 basis points, current year. It is more than a hundred basis points. But what we believe is that with the further reduction in expected reduction in The NPS, going forward in the next two quarters. It should again, rationalize and we should reach somewhere where we were towards the end of. I mean, it was the end of this year to where ever it was by and large last year.
That is as far as the the credit cost Outlook is concerned, as far as the provisioning is concerned. This provision is on the igap as per the Iraq Norms of The Reserve Bank. 10% has to be provided on restructured book. Fully it has been made.
And a further provision on restructuring book. We should have assumed is not come in unless the asset clips into lower bucket. So as of now, as of now, since there is no change in the the NPA position. They will not be any further instruction required on that book. Voter. OTR is now ended. No we did not operate. You focus. Okay understood and if you put this, let us know. Is there any
Level of prepayment on the lap book in this quarter. And any particular reason for that.
There is no such any pronounced Trend only in the lap book or anything of that sort.
Okay, that that that particular line of business is disbursement is not happening as it was as it used to happen earlier.
Okay, so okay. I understand. I understand, and are we looking at any so any further Improvement, in incremental cost of borrowing from coming coming in quicker, quarters, or they should be the bottom, pretty much the current quarter. See, overall. If you look at the interest rate scenarios in the country, then you will note that the ills of already started bottoming out and bond yield ecgls.
Those actually gonna but despite that we have been able to show some improvement. Some little bit of Elbow Room is still left and and of course depends upon the stance taken by the Central Bank on the interest rate scenarios.
Short. Sure understood. That's it. That's all.
Thank you. The next question is from the line of hit agility from hi, Tom Securities, please go ahead. He said, thank you for taking my question. So kotr book thrilled to have person that you mentioned. So, is there any overlap with the stage three assets?
That's all it is. Not three and a half percent. It is 7300 code. So it will be around three point one percent. Number one number two is that there could be some overlaps, but it is generally a on the Lower Side. Most of it will be in stage 1 of 2.
Okay, and since last quote, is the result time you've mentioned that there was some resolution of hundred crores in July in some developer book search as that being taken care of when you mentioned, there are some small resolutions or what is this?
Okay, okay, very small, very small accounts are. They're very insignificant. Very small two digit account to, the two-digit amount will be resolution. Okay, so, thank you. Thank you.
Most questions have been answered.
As of now no capital is adequate after the profile, the promoter infusion as of now, the capital is adequate. Okay, so we don't believe there's going to be any need for God.
Okay, and this one additional question on the employee exchange part, right? So you said there's some incurable impact of 4546 roads, that is there. And so this will continue for the
thank you.
Yeah, hi, but if you look at your interests, emotional of 250 Clover on a book or 7300 then is roughly Will shout. Your voice is breaking.
Are you able to hear us?
No, as there is no response from the current participant. We move to the next question, from the line of the shank Verma from access mutual fund, please go ahead. I had one pair you on this cumulative number of provisioning. This 5354 corrodes. Does it include the provisioning on restructure book of approximately 700 throat as well as COVID-19 related 300 Euros, provision that we have made the COVID-19 related provisioning is there, 340 course, is included in.
CEO provisioning. OTR OTR provision is made under eye Gap. Under Iraq Norms of Reserve Bank of India. Under I am
Okay, so it will not be included in this 5300 water or some book. It is there it is. It is reflected there. And the balance is transferred to the, the impairment Reserve, as an appropriation. What it was, what it was. Thank you. Thank you. Thank you. We take the next question from the line of generation cash reader from Fidelity in international, please. Go ahead.
Hi, this is Julie complete. I think I'm a question. So if you look at the interest, it would work for us to analyze because you know, interest which is have you given like a one-year waiver. There is no waiver. There is a moratorium. What do you mean? Waivers are completely different things.
Right.
Okay, so then that is precisely what we have saying.
Okay, there is no way, but please make it very clear. There is a difference between moratorium and Weaver.
Right.
Not able to hear. Can you please repeat it over the next 12 months? The bomb book, which is approximately around 20 22, 23 thousand crores.
Requirement. Redemption repayment.
Yes.
Thank you. Ladies and gentlemen, due to time constraint. We take one last question from the line of Margaret's. Anya from Alara Capital, please go ahead.
Yeah, hi. Sorry.
Interest rate.
Thank you. Thank you for having me. Thank you for arranging, the calls, and our best wishes to all of you looking forward for a great innings in the days to come on, the trail in this quarter. And I also wish all the members on our view of people, all a very, very happy Diwali to all of you.
Thank you. Ladies and gentlemen on behalf of axiscapital limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.