AU Small Finance Bank Ltd (NSE: AUFI) Q4 FY22 Earnings Concall dated Apr. 26, 2022
Corporate Participants:
Aseem Pant — Vice President Investor Relations
Sanjay Agarwal — Managing Director and Chief Executive Officer
Uttam Tibrewal — Chief of Strategy for Commercial Banking
Vikrant Jethi — Head of Collections
Rishi Dhariwal — Chief Investment Officer
MS Sriram — Independent Director
Analysts:
Aditya Jain — Citigroup — Analyst
Unidentified Participant — — Analyst
Akshay Jain — JM Financial — Analyst
Nidhesh Jain — Investec — Analyst
Sonal Gandhi — Nirmal Bang — Analyst
Renish Hareshbhai Bhuva — ICICI Securities — Analyst
Pranav Mehta — ValueQuest — Analyst
Bhavik Dave — Nippon India Mutual Fund — Analyst
Jay Mundra — B&K Securities — Analyst
Dipen Sheth — Buoyant Capital — Analyst
Unidentified Speaker —
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q4 FY ’22 Earnings Conference Call of AU Small Finance Bank. [Operator Instructions]
I now hand the conference over to Mr. Aseem Pant, VP Investor Relations. Thank you and over to you, sir.
Aseem Pant — Vice President Investor Relations
Thank you, Margaret, good day to everyone and welcome to AU Bank’s earnings call for the fourth quarter of FY ’22. We thank you all for joining the call today and we hope one for safe and well. So approximately the first 20 minutes of the call we will have brief remarks by few members of our senior management, followed by 30 to 45 minutes of Q&A. Firstly, we will have our MD and CEO Mr. Sanjay Agarwal share his thoughts on the performance and overall outlook for the bank. He will be followed by our Executive Director, Mr. Uttam Tibrewal, who will share his thoughts on business outlook for assets and liabilities. And finally, we will have Mr. Vikrant Jethi – Head of Collections who will discuss asset quality for the bank. Besides them we also have few other members of our senior management to answer any other questions you might have.
For the benefit of everyone, we would humbly request that the number of questions per participant to be restricted to a maximum of two and to join back in the queue or e-mail us in case you have any further questions.
With that I will request our CEO Mr. Sanjay Agarwal to share his thoughts on the bank’s performance and outlook.
Sanjay Agarwal — Managing Director and Chief Executive Officer
Thank you, Aseem. Good evening, everyone. [Foreign Speech] Thank you for joining in. We hope that you and your dear ones are doing well and keeping safe. Quarter four FY ’22 marks the completion of our 20 quarters of our banking operations. I would also like to begin by contributing everyone on completion of five-year as a bank. We have crossed this important milestone with flying colors. In 2017 we had 403 touch points in 10 states, which grew to 919 touch points in 18 states and two UT’s into 2022, from lending to 5.6 lakh customers to serving our 27.5 lakh customers now, grew a family of 8500 people to a winning team of 27,800, good liability franchise, earning a deposit base of 52,500 crores plus, scale the asset book from 10,700 crore to 47,800 crore with superior asset quality, but our state-of-the-art tech ecosystem, established gold standard is governance and this happened in spite of headwinds of demonetization, GST, NBFC crisis, PMC crisis, private sector bank crisis and battling the pandemic have only made us more resilient and confident in our customer and product segment.
The tailwinds of digital adoption gave us this time to venture into a journey of many first like AU 0101, credit card, QR code, video banking etc. The team has shown incredible commitment, ownership, bias for action and intra provision. The story remains very exciting for me personally from the last 27 years. AU is on the track of empowering India financially, digitally and socially. Thanks to your support. We remain one of the most exciting franchise of the country, very grateful to the government, regulators, board, you, the customers, the team, the shareholders for bestowing us with so much love, affection, guidance and trust.
For me personally FY ’22 was year of roller coaster ride, quarter one was down with due to devastating second wave where we lost so much both in terms of lives and livelihood. In quarter two, we faced an unnecessary misunderstanding, as well as baseless rumors around certain personnel movement in our bank. On a personal look, I lost my father, the Founder, Promoter of AU Bank, he was instrumental in shaping the person I am and had laid the foundation of our bank. In the later half of the year, we witnessed a third wave, although turn out to be quite limited in its impact.
Nevertheless, growth came back in the second half of the fiscal. Hope you have seen the recently declared quarter four results, the last quarter remained very high in terms of numbers from deposits, to assets, to payments, to digital, some highlights are reasonable. We launched 32 new touch point in this quarter, we hired 2300 plus people, our deposits grew by 46% and we — our focus remain on low cost stable fund and we reduced our cost by 88 bps in this year and we maintained ample liquidity.
We disbursed around 10,295 crores of loans in this last quarter, the highest ever in the history of AU. Our balance sheet size grew by 35% year-on-year, net worth grew by 20% year-on-year and our capital adequacy is at 21% plus. We also generated the highest ever operating profit in this quarter. Our ROE stood at 1.9 and ROA at 16.4%. Asset quality is getting back to pre-COVID level. Our GNPA reduced to 1.98 from 2.6 quarter-on-quarter, net NPA has reduced from 2.5 from 1.3 quarter-to-quarter. As a bank, the improving operating environment and our strong operating performance and higher resolution in the stat accounts during quarter four gave us some flexibility around our quarter four numbers, but we chose to remain more major to secure our future by putting more money into the provisions and further strengthened our provisioning policy committing us to higher coverage in the future as well.
We have not taken any contingency provisions to P&L rather we have created an additional floating provision of 41 crore. Given the secured and retail nature of our book and our historical experience in my view, we are currently significantly over provided with PCR of 75% plus provisions around restructuring contingency and floating. The main reason we have tightened our provisioning policy is further to structurally create a buffer creation, mechanism as growth picks up, more ground on this. The risk from from geopolitics and macro environment had led to strong inflationary pressures on our operation with costs are going up in everything, from salaries and related expenses to employees to tech and maintenance contracts. I know that opex is high in the current quarter and we hope to go back to normal number in the mid to long-term.
Similarly in the rising interest rate environment, income from treasury operation is also expected to remain subdued in coming quarters. However, our cost of funds continues to decline and we think there is still some room for repricing. Our digital initiatives are progressing well and are providing a visible uplift in our base of customers acquisition. Notably, our 40% of new customers acquired in quarter four were through our recently launched digital channels and products AU 0101, credit card, video banking, UPI, QR. Our five FPUs digital banking, credit card, solution group, reads, home loan has already presented to two AU insight actually in last quarter. I hope you would have gone to know lot more about the business strategy, the team and the outlook in greater detail. The remaining 5 SKUs we would also be presenting in the coming month.
Governance always been the backbone of our growth since the start which has been validated time and again by markets, regulators and rating agencies. Last quarter we were joined by Shri [Indecipherable] ex RBI Deputy on our Board as an Independent Director. And this quarter, I take this opportunity to welcome Shri. Kamlesh Vikamsey on our Board as an Independent Director. I believe Bank will eventually benefit from it’s niche audit experience spanning over four decades and I personally look forward for validation, which is induction the overall board strength has now risen to 10 Directors and eight being independent.
I’m also thankful to the Board for agreeing to reward the shareholders of the Bank as we celebrate completion of five years our banking journey with an approval of issuance of bonus shares in the ratio of 1:1. The bank board also has approved a dividend of 1 per share for FY ’22. Both these measures are subject to shareholder approval.
I’m very happy to share that here I think upgrade our bank’s long term rating to AA stable and retain our short term rating to A1+. This is strong validation of our banking franchise and asset quality despite the pandemic induced challenges. In the end, I would like to say that we are watchful of inflation, interest rate cycles, geopolitical situation and effects of residing pandemic. However, I think that what we have faced in last two years and survived was much more challenging and we are far more hopeful about the coming times.
I’m very excited about the India story one of the world’s fastest growing economy, with the largest youth population in the world, rising global competitiveness, rising economic insurance and the strong Central Bank policies. Although we are cautious in short-term, but very, very, very optimistic in the long run. We understand that being the largest small finance bank of the country put us in the position of a great responsibility. We are always mindful our duty as a credible banker. We promise you gold standards in this management, governance, compliance and integrity.
We remain in-depth credit to our regulators, government and stakeholders and the board to hold our hand and to keep us on the right path. We continue to invest in our 10 strategic business units and shall always be promising and likable franchise to be joined by people. Thank you so much, stay safe and I want to hand over to Uttam for his business outlook and strategy. Thank you, sir.
Uttam Tibrewal — Chief of Strategy for Commercial Banking
Thank you, Sanjay, [Foreign Speech] and good evening everyone. I hope you are happy and healthy. I will now provide you with an update on all our businesses, including assets and liabilities. Unfortunately, even though holding to be a challenging year across economic situation, as well as geopolitics, it has proven to be a year of resurgence for Indian corporates both specified 2021.
Going into FY ’23, Indian businesses seem cautious on the impact of increasing energy prices and uncertain credit environment. However, given our high domestic consumption, improving on ground activity and India’s GDP growth outlook, we are quite positive on the business outlook for the year ahead. At AU Bank, we continue to proactively tackle the challenging, recalibrate our next step with agility and track the market ahead of it’s performance to deliver across the business and financial metrics.
As Sanjay mentioned in our journey of over 27 years of building trust, AU Bank also celebrated its 5th anniversary [Technical Issues] bank and we feel a sense of pride in having weathered tough times in our early years and risen out of it a tremendous strength and character to become India’s largest Small Finance Bank. The infinite passion and hard work of 27,800 plus AU employees, going grand now from customers, confidence of our esteemed shareholders had been the hallmark of these five years of banking for AU Bank. Importantly, our asset growth was complemented with a robust asset quality with our gross NPA coming below 2% at 1.98% and net NPA reducing to 0.5%. This is a remarkable achievement given our GNPA was 4.3 same last year.
Our total collection efficiency for the year stood at 106%. The normalization of our GNPA to pre-COVID levels has been in line with our narrative of deeper ongoing customer engagement and problem solving approach. As [Indecipherable] into the next financial year, we continue to focus our efforts towards building a robust, set let retail franchise in India by building a granular CASA portfolio, drive growth from existing asset products, strengthen the asset quality, investing in technology for AU 0101, innovate across numerous products like cards and QR payments and increase brand equity for AU Bank. Our lease business financed 85,000 plus vehicles during Q4 FY ’22, amounting to a total investment of INR3,667 crores, registering a growth of 25% year-on-year and 20% quarter-on-quarter.
Total AUM of these businesses is now INR17,300 crores, with an average ticket size of INR3 lakhs. At AUM level, 60% of the financing is for new vehicles, 38% is for used and refinance and 2% is for two wheelers. The demand towards light commercial vehicles and passenger vehicles have been stronger than other segments. In agri business demand is gradually coming back with Q4 FY ’22, being disbursement equivalent to same quarter last year at INR2,116 crores. Total AUM of SBL business has now reached to INR16,524 crores across 2 lakh MSMEs, registering a growth of 15% year-on-year.
Our housing finance business we recently presented we have used in the AU site session saw strong margin in Q4 with a total discipline to INR673 crores, registering a growth of 54% year-on-year. Total AUM of housing business is now INR2,654 crores, across 27,000 dwelling units, registering a growth of 19% plus year-on-year. Bulk of this portfolio is also eligible for long-term low cost energy refinance which further helps need to deploy more. Our Commercial Banking businesses like business banking and agri banking continue to do well and gained market positioning and establishing persons. Both of these businesses are granular, working capital term loan finance to MSMEs with average ticket size of sub 1 crore and then again the balance sheet of MSME. In Q4 FY ’22, Commercial Banking business saw a disbursement of INR2,529 crores, a year-on-year growth of 104%, with most of the businesses eligible for low cost refinance. Our digital efforts have shown promising results with almost 40% plus newer customers added to the bank in Q4, coming through AU 0101, video banking, credit cards and UPI QR codes. Looking at our digital banking strategy to complement our physical banking strategy and the physical model allow us to be better positioned for gaining a larger share of overall pie.
To build individual business numbers provide in the IR presentation. Further, the ongoing AU insight session, the leadership of various SBU’s had been presenting their views and outlook and I hope you had a chance to go through the same. I’m quite happy with an exponential growth across our brand metrics, including awareness and consultation with our ongoing campaign. It’s been heartening to know that people have been able to associate the [Foreign Speech] campaign and acknowledge that AU Bank is trying to bring genuine [Foreign Speech] in banking practices.
We will continue to focus on building brand awareness and consideration. In the past few quarters, we have emphasized on growing our CASA balances and pricing our deposits optimally to gradually reduce the overall cost of borrowings. Through targeted efforts, we delivered card deposit growth of 57% year-on-year and 44% quarter-on-quarter and saw deposit growth of 156% year-on-year and 9% quarter-on-quarter. This enabled the Bank to maintain an optimal CASA ratio of 37% compared to 23% in Q4 last year. All these also have to reduce the overall cost of our deposits to 5.8% in FY ’22 from 6.7% in FY ’21.
64% of the saving accounts customers acquired in the year are active on our AU 0101 app and 77% of the current account customers acquired in the year are active on Internet and mobile banking. This also reflects the increasing preference of our tech savy customers to become digitally native. As we have spoken extensively in earlier quarters about the AAEDR framework that the liability franchise follows. AAEDR stand for acquisition, activation, engagement, deepening and retention, as we mature, we prioritize engagement and deepening into AU bank account as a primary account of the customer.
To this end, we have segmented our sales and customer service teams, we paid great attention to customer experience in branches. This has resulted in 71% of CAR [Phonetic] and 55% of SAR customers regularly transact with us. Furthermore, 1.9 lakh unique AU debit-card holders transacted in Q4, our debit card transaction volume has increased significantly crossing 4 lakh times achieved in March ’22 and spends have consistently been INR100 crore plus in the last few months. These value share of the customers and hand back them with the bank, we work on differentiated RM model which aim to fulfill the needs of our customers and maximize lifetime value.
This focused approach has resulted in our product per customer growth of 1.7 for our SAR customers and 1.9 for our card customers. 62% of our current account and 47% of our savings account customers use two or more of our products, the delta generated in customers A&D while these engagement hook is anywhere between two to eight times depending on the hook as compared to a customer who is not engaged. We have expressed earlier that metros and urban markets will drive our liabilities growth.
We currently have 184 branches in urban areas, with 64 of them having opened in FY ’22. 16 of these new branches with an average vintage of six months have already ramped up their deposits to 50 to 100 crores. This reflects the encouraging response we have received in newer urban geographies from high quality retail customers and provides us the confidence to further penetrate and focus on these markets as we look to ramp up our deposit franchise.
We continue to work with our partners to further cross-sell and engage the customers be it ICICI Prudential, Future Generali for life insurance and Aditya Birla Care, Tata and Chola for general and health insurance. On the investment side, our mutual fund AUM crossed 100 crores this quarter and we have close to 60,000 key one trading accounts through our partnership with great Motilal Oswal Financial Services.
In conclusion, I would like to say that these are very exciting time for the bank as we achieve our five-year milestone, knowing fully well that five year this small dot or a blip in the journey of conditions. Our efforts on urban focused branch expansion, customer engagement, people capabilities and constant digital innovations ensure that we are all prepared to scale the business. With comprehensive merchant solutions and a good foundation of current account and heavier customer base, we are working towards getting the current account deposit books sustainably this financial year.
With this now, I hand over to my colleague Vikrant Jethi for an update on collections and asset quality. I will meet you again during the Q&A session. Thank you so very much. Please take good care. Thank you.
Vikrant Jethi — Head of Collections
Thank you, Uttam Ji. Good evening, everyone. I’ll be sharing brief perspective on asset quality, business activity across sector have resumed normalcy, which resulted in better customer cash flows. We saw collection efficiencies north of 100% during the entire quarter. Average collection efficiency in Q4 was 108%, sometimes 106% in quarter three. Our gross NPA reduced by 62 bps from 2.6% in quarter three to 1.98 in quarter four. In absolute value, there was net reduction of 133 crores from 1058 crores in quarter three to 924 in quarter four. Net NPA reduced from 1.3 in quarter thee to 0.5 in quarter four. We saw gross NPA of 329 crores in quarter four from Q3 closing NPA of 1058 crores, resulting in 31% resolution during the quarter, wherein 65% resolution happened through normal collection effort and about 28% resolution happened on account of security enforcement, wherein there was pause loss of approx 38%, another 7% remission was on account of ethical write-off. Similar trends have been observed during FY ’22 and as we had highlighted, said in our last call as well. This clearly illustrates the secured and small ticket nature of our book, as well as the resilience of our borrower base. If we further introspect current GNPA pool of 924 crores, we have enforced security on 8% pool and asset is in banks position. As of date, we have initiated legal recourse either separately or Section 17 on remaining 88% pool, on the balance 4% pool, we will be initiating legal recourse soon.
And that said, all the underlying loans are granular and secure and we expect recoveries or security enforcement in due course of time. As we had communicated in our quarter three commentary basis on ground feedback, we have identified non-variable pool, whereas all collection efforts have been exhausted and bank has done technical write-off of 23 crores in quarter four, here collection efforts are being abandoned and future recovery may happen through ongoing legal proceedings.
We would like to mention that we have so far done recovery of 1.18 crore from technical write-off of 62 crores done during the financial year ’22. We shall continue to evaluate such nonworkable pool in future as well and take appropriate measures. Out of total gross advances of 47,900 [Phonetic] crores as of 31st March, 69% of book has originated after March 2020 and 93% of the book is current with only 0.37% of GNPA. The resilience of this book has validated our approach of underwriting and customer segment we cater. Off these subsidy, as of 31st March ’22, standard COVID restructured book stood at 1180 crores, just 2.5% of gross advances. Delaying has started or 98% of the restructured book and 10% of billed book is NPA as of 31st March.
Asset quality performance in the build pool has been well within expectations. ECLGS gross advances as of 31st March ’22 stood at 866 crores and NPA numbers are in line with overall book. Bank is getting provision of 653 crores against GMV of 924 crore and has created an additional floating provision of INR41 crores in the current quarter, taking PCR to 75% against 51% coverage as of 31st December.
Additionally there is provision of 192 crores against standard restructured book, furthermore Bank continues to carry contingency provision of 157 crores. Against GNPA and restructured book of 2,100 crores, we now have 50% coverage including floating and contingency provision versus 45% as of 31st December. This further strengthened balance sheet and makes us better prepared for any unforeseen events.
Pertaining to loan that bank has further tightened its provisioning policy starting this quarter whereby in our secured book, we will make 25% provision on 91 days, 50% on 181 days, 75% on 366 days and 100% provisioning on 456 days. The policy on unsecured book is even more stringent. This makes us — this makes our provisioning policy one of the most conservative in the industry and will help us maintain higher profits on an ongoing basis as there is absolutely no change in our expected credit loss assumptions. As we head into FY ’23, while we keep our eyes on the risk on the horizon, we continue to remain cautiously optimistic having toward for all the success and some more. Thank you so much for your time and I now hand over to Aseem.
Aseem Pant — Vice President Investor Relations
Thanks, Vikrant Ji. Margaret, we can move to Q&A now.
Questions and Answers:
Operator
Thank you very much. [Operator Instructions] The first question is from the line of Aditya Jain from Citigroup. Please go ahead.
Aditya Jain — Citigroup — Analyst
Thank you. Good to see all the balance sheet strengthening measures. If you could talk about the thought process behind and trade-offs between allocating some provisions as floating and contingent, how do you decide the quantum of them and what are the advantages — disadvantages of one versus the other?
Sanjay Agarwal — Managing Director and Chief Executive Officer
So — hi, Aditya, thank you for your kind words. So, as you know as per law also we can’t keep contingent provisions as an open item, right? We need to use it in somehow. So what we have decided that that strengthen our NPA provisioning policy and we will — out of the that contingent provisions to the normal provision. So that is one thing which we have decided from this quarter. And we just do not want to use any of the slower in P&L, right? So the balancing amount, if you see the overall provision for last quarter to this quarter, we really want to — similar that amount which is 1043.
So the balancing amount we have built in the floating provisions, right and floating provision is again to cover any kind of future possibilities and floating provision can’t be used on the basis of management, it has to be — with RBI. So that is why we really want to be more sure about our whole consistency there. And so that’s it, right? So we have actually reduced our overall NPA overall risk weighted asset considerably, but the provision amount remain same.
Aditya Jain — Citigroup — Analyst
Got it. So there might be certain rules based on which contingent you might choose to reverse, but floating you will retain on a longer basis and when if you choose to reverse it will have to give with RBI approval?
Sanjay Agarwal — Managing Director and Chief Executive Officer
Correct, absolutely.
Aditya Jain — Citigroup — Analyst
Got it. Thank you. On the liability side, so we’ve continued to see a steady reduction in cost of funds, from a spread perspective going into next year, could you talk about the share of floating-rate loans, I think a large part might be for exit, but just share of floating-rate loans today on the book? And on the average cost of saving deposits and would you be open to increasing that saving deposit rate if needed? And that’s your overall outlook on margins for next year? Thank you.
Uttam Tibrewal — Chief of Strategy for Commercial Banking
These are the two things we — I already quoted in my statement that inflation and of course the interest rate cycle looks tough in this year and we do not know how it will span out in current year, but as far as we are floating versus fixed is to be seen. It is around 25% is our floating, 75% is fixed, but tenure is very low and generally retail assets like we as we are generally done on the basis of flex because we also charge on a higher rate, the rate is 15% plus, right? So and of course as we move forward, we really want to build more and more flexible floating rate book, but we like the housing one and the commercial banking space.
So once that share will go up, you will see our floating rate — we will also go up, right? So that’s the way we want to manage it. And what was other question around saving account, sorry?
Aditya Jain — Citigroup — Analyst
Yeah, the saving account, the average cost of SAR today and would you be open to think about increasing that SAR rate going forward, the CASA accretion has been really phenomenal so far going into next year maybe other banks start to increase the SAR rate, we have seen some cuts through COVID, so what increasing the part?
Sanjay Agarwal — Managing Director and Chief Executive Officer
This is a question as of now, but CASA already pricing around 7% on our higher bucket, right? And so as a CEO, I don’t want to get into that level of higher rate, but if market forces us, we will see at that time.
Aditya Jain — Citigroup — Analyst
All right. Thank you.
Uttam Tibrewal — Chief of Strategy for Commercial Banking
Aditya, our current cost of site 5.5%.
Aditya Jain — Citigroup — Analyst
Got it. Thank you.
Operator
Thank you. The next question is from the line of Pratik [Phonetic] Gupta from Guardian Capital. Please go ahead.
Unidentified Participant — — Analyst
Hello?
Operator
Yes, Mr. Gupta, we can hear you. Please go ahead with your question.
Unidentified Participant — — Analyst
Yeah, I just wanted to highlight towards the treasury question. We can see that the revenue is growing at 10%, while the expenses have grown at a huge level in this quarter. So can you highlight on the same because we are trying to understand what could be the treasury operation that is yielding to high expenses in this quarter?
Vikrant Jethi — Head of Collections
[Speech Overlap] Hi, Ratik, so the question is that treasury expenses?
Unidentified Participant — — Analyst
Yeah, the treasury expensive and towards the profit.
Vikrant Jethi — Head of Collections
Treasury expenses, this is you’re talking about segmental results that we would have put out in the financial?
Unidentified Participant — — Analyst
Exactly, yeah. So we are seeing that profit has grown only by 2% towards this quarter and revenue has grown by approximately 10%. And actually I wanted to understand what could be the reason that we are seeing a very less growth and what could be the major impact towards the treasury in the rising interest rate scenario?
Vikrant Jethi — Head of Collections
So, Aditya, if you see the interest rate in the last quarter kind of moved very sharply especially towards the later half of the quarter, right? And we are just coming out of a very low interest rate regime. So as we move forward, there will definitely be and that’s what we have articulated in our presentation as well and in Sanjay’s ji speech that there will be some amount, we’ll have to watch how the interest rate cycle plays out from here on, right?
There could be — while we have — we don’t really have a large MTM impact this quarter unlike some of the other bank, but we’ll have to see how it behaves going forward. So honestly at this stage difficult to comment.
Unidentified Participant — — Analyst
My second question is, how will the interest rate impact on the NIM over the going quarter in the upcoming like three, four?
Sanjay Agarwal — Managing Director and Chief Executive Officer
So no, we have — we are starting our cost of money around 5.6 and last year we had a cost of fund overall basis was 5.9. So, still we have some room available with us to manage even a cost cycle up by maybe 50 or maybe 75 basis point, that’s point number one. And second, we have the ability to transfer this price to the end customer because my end customer is not rate sensitive, right? And we have also reduced over the year.
So the kind of customer we did in is a poor market right and the interest taxes goes up, the entire NBFC, entire that segment will also go up. So I strongly believe that we can protect our NIMs as we move forward in the range bound interest rate cycle upward.
Unidentified Participant — — Analyst
Okay, that’s it from my side. Thank you.
Operator
Thank you. The next question is from the line of Murali from Hkcillin. Please go ahead. Murali, your line has been unmuted. Please go ahead with your question.
Unidentified Participant — — Analyst
Yeah, good evening one and all, actually someone asked my question previously. So I don’t want any questions.
Operator
Thank you. The next question is from the line of Akshay Jain from JM Financial. Please go ahead.
Akshay Jain — JM Financial — Analyst
Hello? Yeah, sir. This is Akshay from JM. So, sir, I have two questions, one is on the CAR growth. So CAR has seen a sharp increase on a Q-o-Q basis. So, any color on that, plus you know, is this is a sticky CAR or and what are the levels we are seeing in April, there is a CAR run down or how is it? First question.
Sanjay Agarwal — Managing Director and Chief Executive Officer
Rishi, can you answer this?
Rishi Dhariwal — Chief Investment Officer
Yeah, yeah I’ll take this, one second. So, see the CAR book, it is — the March quarter is always a high profit CAR book. And if I were to give you a flavor, the 20, about 27,000 of our customers contributed to the growth of balances in the CAR book in the month of March, right? And many of these are — almost 19,000 of these customers are small businesses and proprietorships. So typically what we have seen is that average customers actually the balances in CAR go up every year end like for example, last year also the CAR A&B was 1164 crores and the UP was 1632 crores. And the same thing holds true for this year also where we have grown subsequently to 1600 crores of A&B types.
So there is no hot money sort of, if that was the question that we sort of cave in the business and a good amount of money actually came from the Contractor segments, so around 140 crores came from contractors who are typically NHAI contractors and the government releases money to them in the year-end. So money comes from them and that is how this continues. I do expect that our Q1 overall CAR balances, we should be able to be close to the Q4 numbers by the time we end Q1 of this year. We substantially ramped up our overall CAR acquisition like what Uttam had highlighted. We acquire something like 6,500 to 7,000 customers every month and along with our FBL business, we are very strongly positioned to address the merchant segment in the industry and build upon that.
So that is the way we are looking at and we believe that we will be able to grow it significantly in the years to come.
Unidentified Participant — — Analyst
So, what percentage of the CAR customers will have asset relationships with you?
Rishi Dhariwal — Chief Investment Officer
Currently about 15% of the customer have asset relationship, but that is something that we are ramping up significantly like I think small merchant. We have a large issuer base, right? So 62% of our QR is active, 90% of post QR customers actually have front count with us and that really comes into our bank account. So that actually helps us in a big way to build our CAR balances.
And so the strategy going forward is that very clearly looking at the manufacturing segment customers, manufacturing and services customer separately from the merchant segment customer. And the merchant segment customers are the one where AU have a very strong franchise and capability and which is where we are building our digital lending capabilities, as well as the QR and pause related payment solutions, so which is where I think our volumes will go up significantly.
Even today more than 80% of our CAR book is actually sold crop and small businesses.
Unidentified Participant — — Analyst
Understood. And lastly on the AUM side. So there is an item others with an AUM of around 3,000 odd crores. So what are the components of this others?
Rishi Dhariwal — Chief Investment Officer
So sorry, Akshay, that is mentioned in the footnote on slide number 37, 36 this is predominantly FD against OE and treasury lending. So those things are included to manage the day-to-day liquidity.
Akshay Jain — JM Financial — Analyst
Understood. Okay, thank you.
Operator
Thank you. The next question is from the line of Nidhesh Jain from Investec. Please go ahead.
Nidhesh Jain — Investec — Analyst
Thanks for the opportunity, sir. Sir, firstly on the growth, how should we think about growth in FY ’23, ’24 in last two quarters despite our cautious commentary we have grown quite well at 14% Q-on-Q. So how should we think about growth in next two years?
Sanjay Agarwal — Managing Director and Chief Executive Officer
Next two years is difficult to comment as of now, but I think this year the challenge remains to which is the interface cycles and of course we have inflation, but as you already commented that you know what we faced in last two years was more what we would have — we put phase now. So I strongly believe that our deposit should grow in the range of maybe 30%, 35% and asset in the range of 25%, 30%. And it’s coming up lot these challenges, if the challenges never exist and come in time then the growth can be more. But the kind of demand you’re seeing in our wing, SBL, housing and across spectrum right, credit card, the commercial banking. And so we are quite hopeful that this year the growth can be as pre-COVID levels.
Nidhesh Jain — Investec — Analyst
Secondly, how is the experience that we have outside of Rajasthan in terms of asset quality and growth and just a question in extension of that is that, assuming that we have same product — products that we are operating over next four to five years and same geographies we are operating, how large loan book we can scale up over next five years on [Indecipherable]. the same geography?
Sanjay Agarwal — Managing Director and Chief Executive Officer
I think this is now old question that EU has the ability to grow beyond Rajasthan. We already demonstrated that in liability Rajasthan is not leading the pack right is rather Maharashtra and then led by Delhi and of course Rajasthan right? So and the new book also like the credit cards, the merchant banking solution is very well diversified across states. And even in our V business as we — which remains the oldest business, we are seeing not much growth coming from the other states and that is the advantage of a bank right because banks generally don’t does not get challenged because of geographies and all those things because generally people come and join and people have customers, a lot of respect for the bank as a franchise right?
So I mean we are not now very much worried about where we stand on kind of our institution, in coming time you will see us in pan India operating for liability for digital, for lot many things, right? So I think the whole data metrics show that we are on track.
Nidhesh Jain — Investec — Analyst
Sure.
Operator
Any other question Mr. Jain?
Nidhesh Jain — Investec — Analyst
No, that’s it from my side. Thank you.
Operator
Thank you. The next question is from the line of Sonal Gandhi from Nirmal Bang Institutional Research. Please go ahead.
Sonal Gandhi — Nirmal Bang — Analyst
Hi, yeah, thanks for the opportunity sir. Most of the questions have been answered.
Operator
Ma’am, sorry to interrupt you, Ms. Gandhi, I’m sorry Ms. Gandhi, you are not very clear, may I request you to come on the handset mode?
Sonal Gandhi — Nirmal Bang — Analyst
This is better enough?
Operator
Not very clear, ma’am, if you are on speaker please come on the handset mode.
Sonal Gandhi — Nirmal Bang — Analyst
I am on the handset.
Operator
Thank you. This is better now. Thank you.
Sonal Gandhi — Nirmal Bang — Analyst
Okay. So, sir just one question I had, if I heard you correct, I mean 69% of our book is kind of AU is coming post March ’20 and the GNPA in that book is just 0.3%? So I wanted to understand what kind of credit costs should we expect in FY ’23, FY ’24 since the incremental GNPA — GNPA incremental book is very, very low?
Sanjay Agarwal — Managing Director and Chief Executive Officer
So difficult to comment, honestly so difficult, but I would only assume that the pre-COVID level, the — our goal GNP was around less than 3% maybe around 1.5, 1.3 kind of thing and net NPA was around 0.5, but I think now the whole provisioning policy has been changed. So difficult to comment as of now because it’s very early days.
Sonal Gandhi — Nirmal Bang — Analyst
Sure, sure sir. That’s it from my side.
Operator
Thank you. The next question is from the line of Renish Hareshbhai Bhuva from ICICI Securities, please go ahead.
Renish Hareshbhai Bhuva — ICICI Securities — Analyst
Yeah, hi, sir and congrats on a great set of — so, sir just a couple of questions on the restructured book and the CMBS pool, okay? So we did highlighted that the overall book performance is in line with the overall book. But if you can provide some more color, let’s say, in terms of, is there any geographical concentration which is not behaving as per the mark or let’s say the collection efficiency in some of the pocket seem still lower than the pan India average would be helpful, sir?
Sanjay Agarwal — Managing Director and Chief Executive Officer
Sriram, can you answer it?
MS Sriram — Independent Director
So probably this question was asked earlier as well. We have not seen any things which are in particular to early stake, against something [Indecipherable] is around 2%, plus-minus [Technical Issues].
Renish Hareshbhai Bhuva — ICICI Securities — Analyst
Sorry, sir. I’m not able to hear you properly, sir.
MS Sriram — Independent Director
Is is better now?
Renish Hareshbhai Bhuva — ICICI Securities — Analyst
Yes, sir.
MS Sriram — Independent Director
So probably the earlier question was also in terms of, are you seeing any I mean those case specific trends? There are no case specific trend which are emerging, I guess 35 to 30 bps here and there to define it, I guess most of the states are in pillar rate. On the restructuring book also I guess we are seeing rates which are similar across rates.
Renish Hareshbhai Bhuva — ICICI Securities — Analyst
Okay. So there is no geographical bias towards that?
MS Sriram — Independent Director
Yeah.
Renish Hareshbhai Bhuva — ICICI Securities — Analyst
Okay, thank you. And sir last question from my side to Sanjay sir. So with this the 2 million plus of impact 2.5 million plus customer base, what sort of data analytics we run since we have a 30 plus products now, trend product per customer and what is let’s say our plan to take it to maybe 2.5 to 3. What we are doing on that front sir, on the customer leverage side?
Sanjay Agarwal — Managing Director and Chief Executive Officer
I’m good, our CIO will answer this.
Rishi Dhariwal — Chief Investment Officer
So, on data analytics platform, we have now that let’s say minimum quantity of data to analyze on when we have built some models was that matter all our new businesses like credit card is largely working on scorecard model in terms of origination. Similarly on our QR book, the way we are getting transactions we have started lending to the customers which is their transaction data. So all those things are getting built from a score cutting model. Second aspect which you asked about product per customer. This number at this point in time is somewhere in the range of 1.3, 1.4 and with digital channels coming in and some of the digital-only products going — getting adopted within our customer segment quite well in last statements of operations. We see significant uptick coming in the current financial year or the upcoming financial year.
Having said that, we are investing in our data and analytics practice in terms of building data-leak and corresponding models further and and we’ll continue to update in the due course of past communications.
Renish Hareshbhai Bhuva — ICICI Securities — Analyst
So, sir any target we have in mind let’s say to take this 1.0, 1.4 to 2 or 2.5 within two years, three years or whatever?
Rishi Dhariwal — Chief Investment Officer
I mean that would be too early to comment considering all those investments are currently being made, but we should be able to give some guidance in probably…
Renish Hareshbhai Bhuva — ICICI Securities — Analyst
Okay. Okay. Thank you, sir. That’s it from my side, sir.
Operator
Thank you. The next question is from the line of Pranav Mehta from ValueQuest. Please go ahead.
Pranav Mehta — ValueQuest — Analyst
Yeah, thank you sir for taking my question and congratulations on very good set of numbers. Sir, first question is on cost to income trajectory. So in this year, we have seen almost find it, we have seen increase in the cost to income ratio and one of the reasons we’re in that — we are investing in digital and other initiatives. I just wanted to get a sense on that how will this ratio now and going forward or the next one or two, three year period? That is one.
And secondly, if you can just give some sense on the timelines for this application of universal banking license and how are you thinking about going forward, these are the two questions.
Sanjay Agarwal — Managing Director and Chief Executive Officer
Yeah, thank you so much, Pranav, yeah. So I think the first, we’re also facing challenge on our opex because everything has gone to a next level because of this inflation right whether it’s salary, self-related expenses, traveling, conveyance, phone. And also the generally we are seeing lot much cost around our opex now, but we believe that it is more of a supply issue and which will get adjusted as we’ve got the scale and you will also agree that we really work only for 10 month this year, right? So we had excess of 10 months, we have expense of 12 months, but working up 10 months. So that has also impacted our opex.
So for us comfortable level is around 50%, 52% on an ongoing basis and plus 5%, 6% on our investment side, which we have shown in your presentation also. And so this time which is more shooted by 4%, 5% and is got 60%. So it is above our comfortable level, but we will do lot many things this year to really back on our the comfortable level, which is around 55%, 57% put together both put together. So — but this remains a challenging work for us because we’ve being a retailer franchise, we need to do lot much things on the ground, so sometime it’s in your hands and that is not, but I’m not too worried honestly on it on a relatively high level because we have a better yield on our assets and our cost of fund is also is in manageable level.
So, but we have to live with this and I hope that we manage opex in our stated number for this year. Your other question is regarding the universal license. So we are happy what we are doing as of now, we became largest SMB. And our job as executive is to really play whatever is given to us and presently we are playing on SMB platform and it’s up to there, we sort of decide that whether they really want to make us universal or not, but of course the we had become eligible because the five year has gone on ’19. So we hope that we perform like that that you know regulators allow us to become universal, but we are very happy the way we are doing as of now and in way which it happens, it will be bonanza for us.
Pranav Mehta — ValueQuest — Analyst
Sure. Thanks. Thanks a lot.
Operator
Thank you. The next question is from the line of Bhavik Dave from Nippon India Mutual Fund. Please go ahead.
Bhavik Dave — Nippon India Mutual Fund — Analyst
Yeah, hi, sir. I’m audible?
Operator
You’re not very clear, Mr. Bhavik?
Bhavik Dave — Nippon India Mutual Fund — Analyst
Is it better now?
Operator
Yes it is. Thank you.
Bhavik Dave — Nippon India Mutual Fund — Analyst
Okay. Yeah. Congratulations sir for a good year. Couple of questions, sir. One, again, similar to the previous participant on the cost. Just want to understand how and I understand 40%, 50% of our cost is variable and the remaining fixed. How do we control the cost when if growth slows down a little like you mentioned, how do we focus our attention to controlling that cost because around 10% of our cost is towards newer investments, which I think we will want to continue, but how do we control cost on the BIU when growth is bit challenging on the ground if at all?
Sanjay Agarwal — Managing Director and Chief Executive Officer
Bhavik, if you didn’t have the — because we already faced that last year, right, because like of 12 months, our execution on business happen only for 10 months right and we have booked expenses for 12 months right? And the way the whole scenario is being built, especially in our market, which is product which is around wheels, SB, we are now commercial, credit card, everything is firing so well. So there might be a slowdown, but I think our size is also not that much that it should affect us near term.
And of course there is a variable cost along with the fixed cost that can be manageable, right? And we have shown in last maybe in 2021 in the year one pandemic and last year through that we can manage our costs. This time it is because of inflation, right, which has really created something extraordinary on the balance sheet, which I personally see that as maybe next one to two years, it will down right or it will get some kind of transformation in overall yield.
So we have to wait for that. Otherwise, I strongly believe that AU is in good position in terms of managing any upward of interest rate I think and approaches elevated cost of operations for next one to two years.
Bhavik Dave — Nippon India Mutual Fund — Analyst
Sure. So, sir, is it fair to assume that like the 51 or sorry 57% for the year cost to income and this quarter was a little elevated, do you think that the guidance that we have a flex up 55%. Is that possible in FY ’23 or will it be like 57, will come to 56 and then maybe slow down or like come down is that, is that a fair way to go?
Sanjay Agarwal — Managing Director and Chief Executive Officer
I believe so, I believe so.
Bhavik Dave — Nippon India Mutual Fund — Analyst
Okay. Understood. And sir second question is a little long-term ish in the sense, which are the products that you’re most excited about like going ahead next two years where we have like incrementally our cost of funds are coming down and should be somewhere around this range or marginally higher interest rate cycle is turning, which are the products that you think can scale up and you’re excited about and any specific geographies where you’re thinking that we are like generating or creating a right to win like we have done for like two, three geographies where we were historically present including Rajasthan, any other geographies which you’re excited about more than more in for the next couple of years and the product that you’re excited about?
Sanjay Agarwal — Managing Director and Chief Executive Officer
I’m actually [Indecipherable] is there, but I can speak on his behalf that makes me most exciting product because the overall the pent-up demand and of course the overall change in fuel, how the Indian story is being built around the manufacturing all those things. So and our size is very, very amazingly small, we are just around 17,000 crore of asset, right? So I strongly believe that that book and grow north of 25% for next 5 years, that’s my own take. Other than that I think I’m also bullish about housing, very small base. We have started that two years back in spite of pandemic, in spite of so much of lockdowns, that includes also going well.
So that is and I think the most important book and can surprise us is our all commercial banking which is around SMEs and MSMEs. I think that scale can help those businesses much more. So and of course the credit card, all those businesses. So honestly I believe that we have lot much on flatter right, hard to pick one or two, but whatever asset is four, five right, generally I believe that all our asset the size, the market the way we operate and we hope seasonality around it is helping us to grow much better than the other competitors, right?
In terms of geographies, I would say we are well settled in around now in new states, but if we typically if you ask me one state for next 5, 10 years I would pick UP.
Bhavik Dave — Nippon India Mutual Fund — Analyst
UP, okay interesting. Thanks. Correct. And sir, last question is on the asset quality. Is there like generally RBI does a yearly review, is that done, any outcomes anything to — anything worth noting or it was business as usual?
Sanjay Agarwal — Managing Director and Chief Executive Officer
Sorry, sorry. I’m not able to understand your question.
Bhavik Dave — Nippon India Mutual Fund — Analyst
Sorry, sir. So what happens is, like in banks like there is an asset quality review that happens yearly which RBI generally takes like undertakes. Just wanted to understand is that done for the bank because you’ve not mentioned anything, that means that there is nothing to report right like there is no divergence or anything major that RBI has come out with, when it comes to asset quality. Is that a fair assumption?
Sanjay Agarwal — Managing Director and Chief Executive Officer
Yeah, I understand. So we — our inspection has been done up to March 20. No, nothing, nothing about positive now till that time and now we are on the automated process. So 99.9% of assets get classified on a real time basis through an automated application, right? And that has been certified by current account, by the auditors, the external auditors and that has also been verified by regulators.
Bhavik Dave — Nippon India Mutual Fund — Analyst
Okay. Okay, perfect. All right, that’s helpful sir, thank you so much. All the best. Thank you.
Sanjay Agarwal — Managing Director and Chief Executive Officer
Yeah, thanks, Bhavik.
Operator
Thank you. The next question is from the line of Jay Mundra from B&K Securities. Please go ahead.
Jay Mundra — B&K Securities — Analyst
Yeah, hi, good evening and thanks for the opportunity and congratulations on your fifth anniversary, sir, of the bank. I have two questions, one is if you can tell us the gross slippages without inter-quarter netting off for fourth quarter and maybe for FY ’22?
Rishi Dhariwal — Chief Investment Officer
For the quarter, that number is 292 crore.
Jay Mundra — B&K Securities — Analyst
Sure. And if you have the number, sir, for financial year?
Rishi Dhariwal — Chief Investment Officer
So that I think that would be around 1440 crore, that will be also there in our Pillar 3 disclosures, but I think that number is around 1440 crore.
Jay Mundra — B&K Securities — Analyst
And secondly, sir, on your…
Rishi Dhariwal — Chief Investment Officer
It’s 1442.
Jay Mundra — B&K Securities — Analyst
Sure, okay, sir. Secondly, on your segment, if you can bifurcate into maybe top four, five kind of product, if it’s possible that would be very helpful. And then I have a follow-up question on that.
Rishi Dhariwal — Chief Investment Officer
Sorry, your voice is a little patchy, can you just repeat that question?
Jay Mundra — B&K Securities — Analyst
Yeah, so sir I was saying, if you…
Operator
We seem to have lost his line, so we’ll move to the next question in the meanwhile. The next question is from the line of Heath Kamawath [Phonetic] from Emkay Global. Please go ahead.
Unidentified Participant — — Analyst
Hi, sir. Thank you for the opportunity. Just one question relating to the tax expenses in the quarter. So the tax rate, if I calculate for the quarter it is around 11%, which has been around 25% in the previous quarters. So what could be the reason for the low tax expenses in the quarter?
Sanjay Agarwal — Managing Director and Chief Executive Officer
Hi, Heath. So we got around INR45 crores refund, which was adjusted in this quarter. This was mainly against ESOP cost, which we consider while I leave it alone. So it’s related to previous year.
Unidentified Participant — — Analyst
The tax rate for the full year is?
Sanjay Agarwal — Managing Director and Chief Executive Officer
For the full-year, tax rate is around 22% and for this quarter this is a difference because it is refundable.
Unidentified Participant — — Analyst
Okay. Okay, got it sir, thank you so much.
Operator
Thank you. The next question is from the line of Dipen Sheth from Buoyant Capital. Please go ahead.
Dipen Sheth — Buoyant Capital — Analyst
Hi, thanks for the opportunity. Can you hear me?
Operator
You’re not very clear Dipen, if you can come on the handset mode and closer to the phone?
Dipen Sheth — Buoyant Capital — Analyst
Okay. So I hope you can hear me now?
Operator
Yes, this is better. Please go ahead.
Dipen Sheth — Buoyant Capital — Analyst
Thank you. So I just wanted to reconcile a couple of numbers if you come to slide 35 and if I try to reconcile that with slide 6 okay? So that’s on the liability side, obviously. So if you look at the lower left part of slide 6, it says that 66% of our total deposits are retail deposits, right? And if we check at slide 35, it says that 49% is the retail in the TD mix, not in the total deposits. Am I reading this correctly?
Uttam Tibrewal — Chief of Strategy for Commercial Banking
So when you look at the TD mix, it’s 49% in the TD is retail.
Dipen Sheth — Buoyant Capital — Analyst
Right, so the TD is at 31,470 at the year end, correct and this 49.51 is the break out of that 31,470?
Uttam Tibrewal — Chief of Strategy for Commercial Banking
Yeah, so Dipen, it’s a data keeping question, can you please email to us and we’ll get back to you.
Dipen Sheth — Buoyant Capital — Analyst
Yeah, sure. The reason I’m asking this, yeah, so the reason I’m asking this is that again on the slide 35 on the upper left side, the total deposit is 52,585. So if I — so the remaining bit there is certificates of deposits, correct?
Uttam Tibrewal — Chief of Strategy for Commercial Banking
No, no, no, so the first table on your I mean slide 34 actually you are referring it 35, the first table is total deposit, the second table is the branch banking deposit, so it exclude the TD which is 1500 odd crores, we have given it earlier. And the last chart on that, the average monthly balance. So one, the first is end of period balance the middle chart and the last chart is average period balance for the month.
Dipen Sheth — Buoyant Capital — Analyst
Okay. I’m here it through. All right. And within the entire deposit mix if I may ask, is there you used to call or I don’t know what the term to use it, non-callable?
Uttam Tibrewal — Chief of Strategy for Commercial Banking
Yeah, so non-callable is on term deposit and while I don’t have the exact number for March, but on an average it is about 60%. [Speech Overlap] So on average it is 60%.
Vikrant Jethi — Head of Collections
I won’t have it handy right now.
Dipen Sheth — Buoyant Capital — Analyst
That’s okay. I’ll follow this up of the P&L. No problem, sir. Thanks.
Operator
Thank you. The next question is from the line of Manish Shukla from Axis Capital. Please go ahead.
Unidentified Participant — — Analyst
Good evening and thank you for the opportunity. Firstly on floating provision, just wanted to get your thoughts on under what circumstances will you continue making it and when and how do you intend to dip into these provisions that all?
Sanjay Agarwal — Managing Director and Chief Executive Officer
So I think now it’s very clearly written by RBI regulation that in the event of something which is very uncertain. And you know which is there to really manage the balance sheet at that point of time because it’s not in our hand now, it is in the hand of regulator who decide us that when can we use that, but of course the situation like pandemic, situation like which is one of its own kind, we want to use that, but it’s actually submit to regulator.
Unidentified Participant — — Analyst
And incrementally will I mean under what situation would you want to create more of floating provisions if at all?
Sanjay Agarwal — Managing Director and Chief Executive Officer
So I think every quarter we will take the call that you know how the whole scenario is being built around the businesses and we really want to make our balance sheet more and more stronger and we have the contingency provision of 157 crores as of now, we have a coverage of 75% in terms of PCR. So I think we need to see the whole calculation and of course we hold to see asset around us. So based on that every quarter we’ll take the call, I thought it would be help of both, right? So but yes of course the endeavor is to really build more and more there.
Unidentified Participant — — Analyst
And the next question is on spreads.
Sanjay Agarwal — Managing Director and Chief Executive Officer
And the overall provision on the balance sheet.
Unidentified Participant — — Analyst
Understood, understood. Yeah, the next question is on spread, the incremental spread have come down quite meaningfully for the quarter and there is a large gap of almost 90 basis points within outstanding spreads and incremental spread, but you think the incremental basis spreads have narrowed or bottomed out and it can improve from here on or we see spread staying where they are right now, I’m talking about incremental spreads now?
Rishi Dhariwal — Chief Investment Officer
Manish, so basically as the situation has improved in the — on the ground, the demand is also picking up. So initial demand definitely coming from the commercial banking sector, which obviously gets where we directly compete with the larger private sector banks and hence it’s a price sensitive segment. But as we move forward definitely as SBL also more and more demand comes up, we will and the interest rate cycle start going up, we have the ability to pass back that to our customers. So we’ll start doing that going forward.
What you have to also understand is the entire commercial banking book or at least most part of it is also eligible for some low-cost refinance which kind of helps us to maintain our margins.
Unidentified Participant — — Analyst
Okay. Last question, what part of your book is floating rate in nature on the asset price?
Rishi Dhariwal — Chief Investment Officer
So I think Sanjay ji answered that in the first question, the book is about 25% on the floating side and predominantly consist of the commercial banking and housing loan book.
Unidentified Participant — — Analyst
Got it. Thank you. Those were my questions. Thank you.
Operator
Thank you. We’ll take one last question, which is from the line of Jay Mundra from B&K Securities. Please go ahead.
Jay Mundra — B&K Securities — Analyst
Yeah, hi thanks again. Sir, if you can bifurcate the top five product in the wheels 17,000 crores scope for you?
Unidentified Speaker —
Hi, Baskar here, you want to know from a manufacturer point of view or you’re talking about then it is in the line of Mahindra?
Jay Mundra — B&K Securities — Analyst
No, no, not from manufacturing but from functional view maybe taxi, UV or as you have…
Unidentified Speaker —
So we have close to 45% of our application is in personal segment. So that is essentially cars and then we have about 10% of tractor, we have 5%, 4% of backhoe loader and then between small commercial vehicle, light commercial vehicle we have that spread out between themselves upwards of about 27%. So it goes in that order M&HCV is less than 15%, project passenger also a consensus of cars like about close to 14%, 15%.
Rishi Dhariwal — Chief Investment Officer
So this data is already there, Jay, in the public domain, in our AU insight session, it’s available on our website.
Jay Mundra — B&K Securities — Analyst
Sorry I missed that. Yeah, so that’s it sir, thank you.
Rishi Dhariwal — Chief Investment Officer
Thanks, Jay.
Operator
Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Aseem Pant VP, Investor Relations for closing comments.
Aseem Pant — Vice President Investor Relations
Thanks, Margaret and thanks everyone for joining us and your support. Please reach out to the IR team for any further questions. Thank you.
Operator
[Operator Closing Comments]