Aadhar Housing Finance Ltd (NSE: AADHARHFC) Q3 2026 Earnings Call dated Jan. 30, 2026
Corporate Participants:
Rinesh Bhua
Rajesh Viswanathan — Chief Financial Officer
Rishi Anand — Managing Director and Chief Executive Officer
Analysts:
Abhishek Kumar — Analyst
Arun — Analyst
Malik Chaudhary — Analyst
Siraj Khan — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Aadhaar Housing Finance Q3FY26 earnings conference call hosted by ICICI Securities Limited. As a reminder, all participant lines will win the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during this conference call, please signal an operator by pressing10.0 on your Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rinesh Bhua from ICICI Securities Limited. Thank you. And over to you sir.
Rinesh Bhua
Thank you. Hi. Good evening everyone and welcome to Aadhaar housing Q3 app advertising earnings call. On behalf of ICICI Securities, I would like to thank other management team for giving us the opportunity to hold this call today. We have with us the entire top management team of aadhar Represented by Mr. Deshankathy Executive Vice Chairman, Mr. Richie Anand MDM CEO Mr. Rajesh Vishwanathan CFO Mr. Sande Guchandani Head Investor Relations. I will now hand over the call to Mr. Rishishar for his opening remarks and then we’ll open the floor for Q and A. Over to you sir.
Rishi Anand — Managing Director and Chief Executive Officer
Thank you very much Ranish and a very good evening to you all. Thank you for joining us this late evening to discuss Aadhaar Housing finance performance for third quarter and nine months ended December 31, 2025. I would like to begin by wishing all of you a very happy and prosperous new year. The third quarter has been significant for the Indian housing finance sector with RBI reducing policy repo rate by additional 25 bips in December bringing it down to 5.25%. This marks a cumulative easing of 125 basis points in 2025 which has significantly pushed home buying affordability, particularly in the affordable and mid segments where customers are more sensitive to EMI movements.
Furthermore, we are seeing a tangible benefit out of GST 2.0 framework. The reduction in GST on construction inputs like cement and brick is lowering the cost for developers and improving project viability. The combination of lower borrowing cost and resilient buyer sentiment positions the housing finance market on a strong footing for 2026. Overall, the combination of supportive policy measures easing borrowing cost and sustained end user demand provides a constructive backdrop for affordable housing finance sector moving to Aadhaar’s performance for the quarter. I am happy to share that we continue to deliver healthy growth while maintaining strong portfolio quality.
As of 31st December 2025 our AUM stood at 28,790 crores registering a 20% year on year growth. Disbursement for 9 month FY26 stood at 6,469 crores for with a 15% YoY increase and PAT stood at 797 crores registering a growth of 20% reflecting steady lending momentum across our core segments. These numbers reinforces our confidence on the historical guidance that we have given during the last three quarters and further boosts our confidence as we enter quarter four. Our portfolio remains entirely secured with home loans and loan against property continuing to be well balanced within the book.
Asset quality remains well contained. Gross NPAs stood at 1.38% a sequential improvement of 4bps versus last quarter. Collection efficiency remained upward of 99% during the third quarter. Importantly, early bucket delinquencies remain stable and stage two asset continues to show improvement by 20bps compared to the last quarter. One plus BPD also reflects an improvement of 30bps on sequential basis reflecting the effectiveness of our underwriting discipline and field level collection process. Our average ticket size stands at 10.7 lakhs with 60% loan to value ratio reinforcing the resilience of our portfolio. The salaried segment continues to be at 55% of AUM aligning with our focus on borrowers with stable and predictable income profiles.
Balance transfer outflows during the nine month FY26 stood at a comfortable position of 5.6% annualized 50bps improvement on a YOY basis which was supported by focused retention efforts and data driven customer engagement. During the third quarter we continued to expand our physical presence in a calibrated manner. We added 10 new branches taking our total network to 621 branches across 22 states and 552 districts serving over 3.2 lakh live customers. Our geographic diversification remains strong with no single state contributing disproportionality to the AUM which is not greater than 15%. Technology continues to be a key enabler of scale and efficiency.
Our TCS enabled core system and data analytics framework are reducing turnaround times, strengthening governance and improving customer experience across loan lifecycle. We continue to leverage analytics and machine learning tools to sharpen credit assessment, monitor early warning signals and support scalable growth. The Pradhan Mantri Awa Chojna PMAY 2.4 scheme continues to play a supportive role in driving demand across low income and affordable segment. Aadhaar continues to lead from the front on this very important initiative of the Government of India spearheaded by National Housing Bank. 10,000 plus customers have already received first chance of their interest subsidy under this renewed program.
The availability of interest subsidy under the PMY 2.0 has improved affordability for the first time home buyers particularly in the EWS Lib segments. We expect the scheme to gain further traction as customer awareness improves, supporting disbursement growth in the Affordable segment. Looking ahead, we remain strongly optimistic about operating environment over the coming quarter. With strong fundamentals, a diversified branch network and continued policy support for the Affordable segment, we remain confident of sustaining our growth trajectory and meeting our guidance for FY26 and in the medium term we are driving a key milestone of crossing 30,000 crore AUM by the end of this financial year.
Aadhaar remains steadfast in this mission to enable home ownership for low income families while delivering consistent and sustainable returns for our stakeholders. Before I hand over to Rajesh, our CFO to take you through the financial performance, I would like to reinforce that we have a positive outlook for quarter four FY26 and are very confident of meeting our medium term growth guidance on aum, asset quality and all profitability matrices. Over to you Rajesh.
Rajesh Viswanathan — Chief Financial Officer
Thanks Rishi. Good evening everyone. I would like to take you through some of the financial data. Some of these have already been covered by Rishi but I would like to reiterate some of these numbers. In Q3FY26 our AUM has grown by 20% on a Y on Y basis. Our overall borrowings as at 31st December 2025 stood at 17,500 crores compared to 15,000 crores on 31st December 24th which is a growth of 16% on a Y on Y basis. The borrowing mix at the end of 31st December 25th is 50% from banks, NHP share is 22%, NCDs share is 21% and ECBs and others make up the balance of 7%.
Our incremental borrowing cost for quarter three FY26 stood at 7.5% and was 7.9% for a nine months ended FY26. We have 41 borrowing relationships. In quarter three our NHP borrowings were 299 crores which came in at 6.6% and for the nine month period the NHP borrowing was around 600 crores which came in at a 7.4% cost. The exit cost of funds as at 31st December 2025 stood at 7.74%. In terms of fixed and floating nature of the book we run a very disciplined fixed and floating nature. 74% of our borrowing and assets both are on floating basis.
Undrawn sanctions as at 31st December 25th is 2,400 crores of which we have around 950 crores which is still drawable from NHP. Liquidity. At the end of quarter 3 FY26 stood at 1,435 crores. This is balance sheet liquidity portfolio yield exit is 13.71. At the end of quarter 3FY26 and I’m repeating the exit cost of funds was 7.74%. The exit spread hence stood at 5.97% as compared to 5.93% at the end of quarter 2. Our cost to income ratio for 9 months FY26 stood at 35.4% as compared to 35.9% in 9 months FY25 an improvement of approximately 50bps on a Y on Y basis.
This is in line with our guidance where we had stated that we would like to drop our cost to income by around 50bps for the current financial year. GNPA as Rishi has said has come in at 31st December 25th at 1.38% as compared to 1.36% in quarter 3 FY24 and the NNPA stood at 1% versus 0.9% last time. Same year Capital Adequacy Ratio stood at 43.6% for Tire 1 and 0.5% for Tire 2 for 9 months FY26. The PAT without the impact of the new labor code was 797 crores compared to 667 crores in 9 months FY25 rendering a growth of 20% Y on Y.
The PAC stood at 294 crores for quarter 3 FY26 again without the impact of the new labor code compared to 239 crores in quarter 3 FY25 resulting in a growth of 23%. ROA and ROE were 4.4% and 15.6% respectively. The 15.6% is also impacted also because of the capital raise of 1000 crores that we had done in last May. For quarter three the ROI and ROE were 4.6% and 16.5% as compared to 4.4% and 15.8% in quarter three. FY25 impact of the past service cost due to implementation of the new labor code is 16 crores and in line with the ICAI guidelines we have shown this as an exceptional item.
The number of employees as at 31st December 25th on roles for 5200 employees and off roads were around 3800 employees. We are focusing on maintaining a healthy book and delivering a consistent performance among all matrices whether it’s growth, AUM growth, cost to income, performance of our portfolio as well as profitability metrics. With that we can open up for questions.
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press STAR and two Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Abhishek Kumar Jain from Alpha Accurate. Please go ahead.
Abhishek Kumar — Analyst
Thanks for opportunity and congratulations for strong set of numbers. Sir, you have delivered very strong growth in the disbursement ahead of your peers. We just wanted to understand what gives you confidence in sustaining it in the fourth quarter and FY27 where that most of the peers are struggling on on this parameter.
Rishi Anand — Managing Director and Chief Executive Officer
Thank you Abhishek for the question and thanks for your message and congratulations. What gives us confidence is see we, I, I will not be able to talk about, you know, what others are doing but the way I look at numbers, even for January, they are upward of what we delivered in December. So with the current pace of numbers I foresee that the Quarter 4 is completely protected and the guidance numbers that we’ve been giving is completely protected as we enter 2026. Obviously we’ll bring in on table our core competence has always been the branch network which we are very confident of and we are expanding branch network.
As I indicated even in the last call, we will keep adding about 40 to 50 branches year on year basis even as we go ahead in the next financial year. Combination of multiple things gives us that confidence that we will be able to deliver our commitments.
Abhishek Kumar — Analyst
So can we expect that 20% kind of the disbursement growth in the next quarter onwards?
Rishi Anand — Managing Director and Chief Executive Officer
I would rather if I were to give a this you’re talking for the next financial year?
Abhishek Kumar — Analyst
Yeah. Yes sir.
Rishi Anand — Managing Director and Chief Executive Officer
Let us look at the current financial year right now, current financial year AUM which should be upward of 20% disbursement will be up of close to about 1616 to 17%. Similarly the similar trends we would want to maintain next year and that’s where the confidence comes from.
Abhishek Kumar — Analyst
Okay sir, and my next question is. Phase two assets where we have seen very good improvement. What future improvement broad based or driven by specific geographic like Surat and the Tamil Nadu?
Rajesh Viswanathan — Chief Financial Officer
I think it’s answering a question was stage two improvement is pretty broad based. We wouldn’t be able to specifically link it to any particular geography. Honestly just preempting a question on this one we are not seeing any specific geographies behaving very very badly or very superbly in the sense that whatever has been our performance of our portfolio for the last three four quarters is sort of showing itself up in this quarter also. So neither has there been any drastic improvement or drastic deterioration. However, we are very happy with the way our stage two has been consist dropping by 20bps consistently for the last two quarters which we believe is a good sign for maintaining the overall health of the portfolio and for stopping slippages into stage three which is a 90 plus portfolio.
Rishi Anand — Managing Director and Chief Executive Officer
Yeah if I can add to that. Rajesh Abhishek, you had a very specific point pointing out a city state called Tamil Nadu. So Tamil Nadu, I can understand where the question is coming from. For us Tamil Nadu we’ve seen I would say substantial improvement on delinquency Trends which is one PL90 plus and if I can give a number 2520 to 25% growth on disbursement and AUM. So for for us Tamil Nadu has been a good location.
Abhishek Kumar — Analyst
Okay sir and my last question on the PMA Y 2.0 incentives. So can you give us a few updates on the approval timeline, disbursement linkage and in the upcoming budget are there any additional policy measures or incentives Housing finance company is touting for or expecting for?
Rishi Anand — Managing Director and Chief Executive Officer
So one is PMI update. I gave in my speech and I told that we are a company which is leading from the front. We are the highest subsidy takers today for our customers. 10,000 plus customers already availed the subsidy. Actually the traction of PMI 2.0 has happened in the last I would say one and a half quarters. The total process starts only when we disburse the loan. And the tat of Bahua which is through nhb the nodal office where the subsidy comes from is anywhere between two to three working days. So it’s not too much of turnaround time as regards expectation from the budget.
I think the previous budget has already put a lot of things on the table. We as an industry will have to first deliver on those. For example PMIY, GST overall, you know, funds for stall projects, etc. What we anticipate this time is maybe a redefinition of the word affordable in terms of ticket size that might just come in.
Abhishek Kumar — Analyst
Got it. Thank you sir. That’s all from my. Sir.
Rishi Anand — Managing Director and Chief Executive Officer
Thank you.
operator
Thank you sir. The next question is from the line of Arun from JM Financial. Please go ahead.
Arun — Analyst
Hi sir. Thank you for the opportunity. Congratulations on a very good set of numbers. Just a couple of questions. One, Credit cost for the quarter have slightly inched up despite the overall stage three PCR coming down. So against this backdrop, what would be your guidance for credit cost for the full year? FY26 does it change? And also where do you see your GNP level settling by the end of the year?
Rajesh Viswanathan — Chief Financial Officer
So so basically credit cost if you look at quarter three, FY26 and 0.28% typically. So we. Because typically as you would be tracking the industry, what happens in quarter four is we typically see an improvement in the overall NPA numbers. I’m just going into a second question which we have. We are currently at about 1.38% and we basically believe that we may end in a Trend line of 1.1 to 1.15%. So if you look at that, typically the credit cost in the last quarter will be very very minimal or sometimes could surprise us with a negative credit cost also.
So typically to that extent. So you can assume that whatever credit cost a YTD basis is that is going to grow very very less. And hence this gives us confidence that our credit cost number for the entire year will be within the 25bps as we had suggested earlier and the guidance that we had given earlier and that still remains our medium term guidance when it comes to credit costs along with our AUM guidance in the range of about 20, 21% we are confident that we should be maintaining year end AUM, sorry year end NPL numbers in the range of 1.1 to 1.15% and CRED in the range of what, 25, 26 bips in the medium term.
I think we are one friend of that. Second question, specific answer. We should be ending the year at NPA levels of between 1.10 and 1.15% on AEM.
Arun — Analyst
Okay, thank you sir.
operator
Thank you sir. The next question is from the line of chintan Shah from ICICI securities Ltd. Please go ahead.
Arun — Analyst
Yeah, congratulations on the quarter first of all and also yeah firstly in terms of the disbursement, the disbursements or growth has been quite robust 14 sequentially. So any specific state which has led to some disbursement and so given that we, we think we have seen many peers have been struggling on that front. So what is leading it to this disbursement and secondly on this disbursement. So this is also without any, without any compression on the margins front. So going ahead also, do we expect this disbursement trend to continue along with stable margin? Yeah, that’s the first question.
Rishi Anand — Managing Director and Chief Executive Officer
Hi Chintan, I, you know I’m while you asking the question I’m struggling because all the states have contributed almost equally. So I don’t want to pick up any particular state which has given me higher growth or lower growth. Everybody’s contributed barring, you know the, barring one state which I can point out, Punjab, which is still struggling from coming out of the flood situation because it takes a little time rest. All those states have equally contributed. So as regards margin, are we confident of maintaining those margins as we go ahead in quarter four and end the year? Yes, we are very confident.
Arun — Analyst
So basically I think there were some states like the Chennai which were probably impacted not for us but for the industry overall. So that those days are also not leading to any. Those sales are also growing at a decent pace I think you already mentioned but just wanted to get something, you.
Rishi Anand — Managing Director and Chief Executive Officer
Know, you’re talking about specific cities which I think I only called out in the last call with regards to the tariff impact, if that is the question. Yeah, I remember. Yeah, yeah I remember calling out textile and gems in these four cities would, would get impacted. But I am also also equally surprised. Looking at our numbers, one is one thing I want to highlight it is on an AUM level these cities don’. Contribute very large. They’re all sub 1% for me. But the good part here is if I look at the last 2/4 movement, last 3/4 movement both on OnePlus and on NPAs, all these states have performed very, very good.
And if I can just indicatively give you one example, you know, one plus drop of about 30bps, sorry 3% has happened in Tirupur and NPA drop of 0.7% has happened in Tirupur and similar is the trend in Surat, Chennai and Coimbatore. So overall a very comfortable zone to be in.
Arun — Analyst
So that’s very pleasant to hear and Also I think on the BT out, if you could just share the number, I think that was 5.4% for H1. So how is the BT out been in this quarter?
Rishi Anand — Managing Director and Chief Executive Officer
So we are in a similar trend. Chintan. 5.5% is what we have recorded which is a drop from a 6.1% yoy basis. So from a 6.1 we have come to 5.5% which is definitely an improvement. And obviously the credit goes to the retention team and the data analytics team.
Arun — Analyst
There is no competition as such coming from the larger players which is likely.
Rishi Anand — Managing Director and Chief Executive Officer
To also impact this pt. I will not say there is no competition. I would want to say that the teams here are doing a better job. If that helps.
Arun — Analyst
Okay. And thank you. I’ll come back in the group. Thank you.
Rishi Anand — Managing Director and Chief Executive Officer
And yeah, thank you.
operator
Thank you. Sir, the next question is from the line of Pritviraj Patil from Investec. Please go ahead.
Arun — Analyst
Hi. Thanks for the opportunity. So I just wanted to know the one plus DPD number for the quarter and how does geography plans to expand it to other geographies and the branch expansion. Just give some details on that.
Rishi Anand — Managing Director and Chief Executive Officer
Hi Prithvi. Thank you for the question. I’ll take the second question first. In terms of plan for expansion into new geographies, I would say that we are available in all the possible geographies of the country. They are available in 22 states. So there is no more state that is getting added. But we will keep adding 40 to 50 branches year on year. Basically in the states that we are present. If you recall last time I spoke about our deeper impact strategy. The strategy continues. 30 branches of ours will keep coming in in the lower category which is deeper impact.
And the balance 20 will keep coming in the urban and emerging A locations. So we’ll keep expanding our network in the geographies that we have present.
Rajesh Viswanathan — Chief Financial Officer
And on the one number, the one plus number as at December end is 6.86% which is a 31bps improvement. On a sequential basis. It was 7.17% at end of September25.
Arun — Analyst
Sure, sir. Thank you. Thanks.
Rishi Anand — Managing Director and Chief Executive Officer
Thank you.
operator
Thank you, sir. The next question is from the line of Siraj Khan from Ascendancy Capital. Please go ahead.
Arun — Analyst
Thank you for the opportunity. Firstly I wanted to know, I mean basis the numbers that I’m seeing in the option. The bio growth in the NHL, NHL divestment is almost 25% and the HL is only 11%. So I mean are we you know, focusing more on NHL or is there like a happening? Because 11% growth in the HL disbursement seems a bit low. So are we seeing a little bit of like going slow for any specific reason or this is by of any disbursements in the coming quarter.
Rishi Anand — Managing Director and Chief Executive Officer
Thank you Siraj for the question. In fact, if you look at our quarter on quarter performance, our home loan has grown by about 14, 14 and a half percent and non housing has grown by 9%. So it’s the other way around and it’s an impact of the refocus that we did post, the tariff issues, etc. Slight refocus has been done and this is interim. So will I go back and start doing a little more of NHL as we go ahead? Yes, we will. But for the time being we kind of, I would say kind of cautioned our teams and that’s how the output is.
Home loan has again I’ll give the numbers. Home loan has grown at 14% on a quarter or quarter basis and non housing has grown at 9%. On a yoy 9 month basis. Home loan has grown by 11 and a half percent and non housing by about 24%.
Arun — Analyst
Correct. So I was referring to that, I was referring to that itself because in the PPD it’s the nine months nine month comparison where it is 24.5. So, so this is by design, that we are.
Rishi Anand — Managing Director and Chief Executive Officer
Completely by design. You know, 70, 30 is, is the number that the regulator allows us to do and that’s where we want to be. We don’t want to breach that point. So at any given point in time on an AUM basis we will be today at about 27% if I’m not mistaken, as you can correct me, 27 NHL we still have some room so we’re going to be maintaining a 30 bracket on that.
Arun — Analyst
This is not a reflection on anything with respect to the slowdown in the demand in the affordable segment or anything just to understand. Okay, so now because we are going slightly higher on the, you know, NHL side are and just to just to confirm, we have not taken any PLR cuts and with respect to an outlook on that, because we have held the yields at a good, good place for the last 4, 5/4. That 125 basis report that you had mentioned and it happened on the ground, we are seeing that there is a lot of competition so overall yields on onboarding must be lower.
Where does the yield trajectory go and what is the timeline that you see with respect to the plr PLR cut and how much would be transmitted by.
Rajesh Viswanathan — Chief Financial Officer
So as we had, as we had explained in the past two calls. In the case of downward trajectory of interest rates we are also morally and regulatory required to pass on the interest rate benefit to the to our customers who are on a floating rate basis and as you would know we are 75% of our book is broadly on a floating rate basis in today’s alcohol the Alco has decided to drop our rates by 15bps from February 2026. It could be applied between 10th and 15th of February 2026 a 15bps drop which will be impacting 75% or benefiting 75% of the customers.
So technically that pass through will be to the range of approximately 12 bips which will happen from February. And as has been our basis, what will happen is the last three months of business will be will get this benefit over the next three months. For example January business will get the benefit in May, December business will get the benefit in in April and the last benefit will get in the month of March. So basically that’s the way we have taken on the way up, on the way down we will be doing it in this way we believe on the cost of funds basis we are currently at 7.74%.
Maybe as we enter quarter four we may have a 2.3bps improvement in our cost of funds. Beyond that I don’t think because we have already to a great extent maxed out on the pass through. If the banks have decided to pass through more MCLR cuts probably we may be benefited but otherwise we broadly believe that another 3, 4 bips may come through. So anyhow, I think as we end the year we probably will end the year. We currently are at about 5.95% plus on spread. I think as we end the year we may end in a range of approximately 5.8% spread which importantly is about 10 to 11 bips better than the exit spread as at March 31, 2025.
So typically for the whole year we are protected and the exit SP spread that we would have in March is projected to be at least 10 to 11 bips better than when we entered the current financial year.
Arun — Analyst
Thank you. I’ll bend back in.
operator
Thank you sir. Ladies and gentlemen, to ask a question please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Malik Chaudhary from Monarch Net Worth Capital Ltd. Please go ahead.
Malik Chaudhary — Analyst
Hello sir. Am I audible?
operator
Yes sir.
Rishi Anand — Managing Director and Chief Executive Officer
Yes very much. Walik.
Malik Chaudhary — Analyst
Yes. Yeah, congrats on the good result. So I just have one question just Wanted to get your perspective on the competition. Like there is a broader narrative that the competition is rising. So just wanted to know your take on this.
Rishi Anand — Managing Director and Chief Executive Officer
So Malik, you know when we talk about competition it’s a broad based word. We will have to look at various segments. For example, you know there is competition in the prime segment and there is affordable segment and then there is low income segment and we operate in the low income segment where our ticket size and low income segment is typically those companies which operate in average ticket size below 15 lakhs. That’s where we operate. Are we seeing any big traction here? I would defer and I would say no we are not seeing any big traction here.
Is there competition in the affordable space? Today the affordable definition goes up to loans. Up to priority sector definition goes up to 50 lakh rupees of loans. So yes, there is some traction happening there and there will always be a 5, 7% overlap in the low income space that we operate. We are not seeing big traction. Point number two here is to be noted is that we keep talking about 620 branches. Out of the 620 odd branches about 150 branches happen to be in the urban locations for us and rest 450plus branches happen to be the emerging locations.
So as we go down into deeper impact locations and emerging locations the competitive intensity definitely goes down, you know. So that’s how we will have to look at it.
Malik Chaudhary — Analyst
Okay sir, thank you. Thank you for the answer.
Rishi Anand — Managing Director and Chief Executive Officer
So basically you know when I say no traction means it is competition is less. Yeah. Okay.
operator
Thank you sir. The next question is from the line of Siraj Khan from Ascendancy Capital. Please go ahead.
Siraj Khan — Analyst
Thank you for following. Sir. You were mentioning that if the MCLR cuts happen it is also benefit of the total total book, not the bank total book. How much is NCLR linked?
Rajesh Viswanathan — Chief Financial Officer
The total total banks is about 50% and of the banks approximately 23 is MCLR linked.
Siraj Khan — Analyst
Okay. So approximately 12% of. So 12%.
Rajesh Viswanathan — Chief Financial Officer
One second, I’ll just get the number. Just, just hold on for one second.
Siraj Khan — Analyst
I’ll, I’ll move on to the next question while we get back. So with respect to the.
Rajesh Viswanathan — Chief Financial Officer
Number 67% of bank borrowings is MCNR linked. So almost 30% of the total. Okay.
Siraj Khan — Analyst
Yes. So on the quality, I mean we are, we are holding up, holding up quite good. And as you said that in some of the states that you had earlier called out with respect to tariffs could have, could become an issue but it is positively surprising us. So on, on. With respect to the, you know Acceleration for growth. You are, you are saying that at 20 is what you’re aspiring. But say in say what would be the conditions with respect to some of the states MP or a Tamil Nadu or some of the other states where you see there is good growth, how much can the growth accelerate to? I mean given that you are already going to cross the 30,000 crore mark, what is, what is on the upside that you see that good growth could go to and will the asset quality remain sustainable in that range? Because you might, you might, you know, see a few of the delinquencies coming here and there.
Rishi Anand — Managing Director and Chief Executive Officer
Okay, Siraj, you know the way we look at our businesses, there will be, since we are in 22 states, there will be certain states will give us higher double digit growth. There will be certain states which will give us lower double digit growth. There will be certain states and I can call out states whenever you want. There will be certain states where I as an organization don’t want to grow beyond single digit. And there are multiple reasons around it. So it’s, it is a combination. Since you called out Madhya Pradesh, my, the way we look at Madhya Pradesh, it should give me a YUI growth upward of 25%.
You know, similarly a Maharashtra will give me a close to about 25, 30%. So that’s how you know, the dynamic works. There will be states where, for example, where I have low legal support, I might want to grow only single digit because I still have to. So it’s a combination of multiple things. But overall as we indicated multiple times on this call, we are very comfortable with a 20% AUM growth in the current financial year. And as we enter the next financial year.
Siraj Khan — Analyst
A quick statistic. So what is your funnel with respect to the login to sanction and sanction to disbursement?
Rishi Anand — Managing Director and Chief Executive Officer
See our, our current login to sanction ratio would stand anywhere between 65 to 66% and our login to disbursement would range at about 39 to 40% today.
Siraj Khan — Analyst
This is on count, I believe.
Rishi Anand — Managing Director and Chief Executive Officer
That that’s on volumes count is more or less similar, 1% here and there. So count is more or less similar.
Siraj Khan — Analyst
Understood, Understood. And because why am I, why I’m asking. This is because as you say that you, you try to maintain 20, 20% growth sustainably over the next medium or the medium term period. But 20 growth breakdown would be what I mean how much of it would be ATS led, how much of it would be say your branch expansion or something. So how, so how much will be this? What will Be the breakdown for this 20% or whatever.
Rajesh Viswanathan — Chief Financial Officer
Yeah, I think broadly to look at it is 5 to 6% will be typically linked to inflation. And broadly the balance would be a combination of productivity improvements which will happen with our existing mature branches. And 5 to 6% will be the incremental business which the branches set up in the last 18 months which start providing in the next financial. Right. So that’s a broad way of looking at 6% productivity gains, 6% inflation related and 6% impact of new branches providing more.
Rishi Anand — Managing Director and Chief Executive Officer
If I can add to that Siraj, the branches that I will add next year will not give me traction for next year. They will give me year after that. So that’s how the model works. So for example, the branches, 40 or 40, 50 branches that I would have said this year will start giving me numbers next year. So that’s the combination of the three things.
Siraj Khan — Analyst
General decision period is what, 15 to 18 months I believe.
Rishi Anand — Managing Director and Chief Executive Officer
Depends on the size of the branch. We have four, five categories of branches. Starts with sales office, goes up to large setups. So anywhere between 12 to 18 months depending on the type of branch is where it breaks.
Siraj Khan — Analyst
Even with your experience to say if you set up a sales office in say 18 months time it would reach up to say the medium middle level, the small banana.
Rishi Anand — Managing Director and Chief Executive Officer
I’ll tell you how the way we look at it. If I set up a sales office within nine months, exactly nine months it has, it should break even and after that it should all be adding to.
Rajesh Viswanathan — Chief Financial Officer
The bottom line what Rishi was alluding to.
Rishi Anand — Managing Director and Chief Executive Officer
What Rishi was alluding to.
Rajesh Viswanathan — Chief Financial Officer
Sales office is the lowest branch category of that will take nine months. And the highest branch which will be a city branch and urban branch may take anywhere between 15 to 18 months because obviously the target for him is also higher compared to a, to a sales office.
Siraj Khan — Analyst
Thank you very much. Thank you.
operator
Thank you sir. The next question is from the line of Sonal from Asian Market Securities. Please go ahead.
Siraj Khan — Analyst
Hi, thanks for the opportunity and congrats on the quote talk. So I have three, four questions. One is on the code ending part. So if I look at the numbers, co lending seems to be a little low this quarter. So if you could just you know, give us some guidance on how do you see co loan lending, you know, piece moving from here on any targets that you have on the disbursements or on the AUM from the core lending pack. Second is if you could just let us know what are the incremental deals for the, for the quarter.
And also if you could give us some sense on how your non homeload book is behaving because is you slow down on disforcement. So any, any signs that you’re seeing of stress over there or is that more you know precautionary wherein you know you’ve decided to go slow. Some, some trend, you know how is it currently in terms of delinquencies and how it was like a year back and the fourth one is on the attrition rate. You know if you could just let us know how the attrition rates are and whether it has improved or you know you’re seeing some, some you know increase in attrition currently.
Those are my.
Rajesh Viswanathan — Chief Financial Officer
Yeah. So if we remember the four questions we will answer we have forgotten the second question but the CO lending that we did. Co lending is a small piece for us. We did only 26 crores of co lending in the current quarter. Previous quarter was approximately 97 crores. So coal ending is a smaller piece for us. We did direct assignment of approximately 440 crores in the. In the current financial year. Sorry, current quarter. And if you look at it the way we are looking at co lending and assignment combination this year is that we have tempered the proportion of CO lending and assignment.
And if you look at the income growth the. The. If you look at the growth in the PNL which is a line item of. Which is a line item of upward initial recognition of income that has grown only by 11% whereas my AUM has grown by 20%. Another point which I think all of you analysts do understand is what you see on the face of the P and L is only the up. The initial recognition we do on new assignment that we do of the assignments that we have done on the past there is also an unwinding of upfront profit.
So the net impact for the nine month period is to the total of approximately 22 to 23 crores which is a net impact on the nine months profit. So I think from that perspective this is a very important number. So on the full nine month pat the impact on the nine month path of the overall securitization and CO lending is only to the extent. The net extent of 28 crores it was not 2325, it was 28 crores. So on the total profit of for the 9 month period only a net income of 28 crores has come from co lending net of what has been unwound out of previous years co lending that we did.
Second question if I was not mistaken was on or third question was on non home loans. And are you seeing the performance and behavior of non home loan portfolio?
Rishi Anand — Managing Director and Chief Executive Officer
Okay. So on, on non home loan. Let me give you a few numbers. One is on an overall basis Y O Y home loan has grown close to about 18%. Non home loan close to about 25%. In terms of yields, you know there is a differential of about. So in terms of NPA there is a differential about 65 to 70 pips. But incrementally if you look at, you should also look at in correlation with the yields. Risk adjusted yields are upward of 300 bps. So that’s, that’s how you will look at NHL versus HL. What was the next question? Sorry Sonal.
If you want to employee attrition. So employee attrition at the company level, if I, if I remove regret, attrition is about close, about 22%.
Siraj Khan — Analyst
What was this number? A year back.
Rishi Anand — Managing Director and Chief Executive Officer
Year back. I’ll come back to you. Sorry about that.
Siraj Khan — Analyst
My question. No worries. On non old loans. So basically you just wanted to understand how it’s behaving. I mean is it similar or you know, is it improving or you know, because you kind of tightened the credit filters over there. So generally what we hear commentary from others is you know, there’s more, some stress over there. Just wanted to know.
Rishi Anand — Managing Director and Chief Executive Officer
So if I were to talk of behavior in the last, let’s say four or five quarters since the time we’ve also gone ahead and given a caution remark toward our teams, the behavior has in fact bettered by about 20bps.
Siraj Khan — Analyst
And also incremental yields for the quarter.
Rishi Anand — Managing Director and Chief Executive Officer
Incremental yield of the quarter for the quarter is 13.1.
Siraj Khan — Analyst
Okay, that’s it from my side. Thank you.
Rishi Anand — Managing Director and Chief Executive Officer
Thank you.
operator
Thank you ma’.
Rishi Anand — Managing Director and Chief Executive Officer
Am.
operator
Ladies and gentlemen, to ask question please press star and 1. Now. Participants who wish to ask question may please press star and one at this time. The next question is from the line of Siraj Khan from Ascendancy Capital. Please go ahead.
Siraj Khan — Analyst
Thank you. Again, is there any material change in the repayment behavior? Not the btout the prepayment repayment page. I mean one of our peers, one of our peers was including that they are seeing elevated repayments prepayments in their, in their book. So basically it’s a good thing if we are also seeing that because that means the, our book is book is strong. But are we seeing normal retirement behavior or people are coming to you with, you know, cash and trying to repay and prepay at a much faster rate that you have generally seen?
Rajesh Viswanathan — Chief Financial Officer
No, I think Siraj, thanks For the question, I think if you take the overall AUM runoff for the nine months, FY25 was 17.5%. And if you look at nine months, FY26 is only 16.8%. So on an overall basis, our runoff of our opening AUM is lower. Obviously it was aided by a combination of two factors. One is the lower BTout which has happened. Second, more importantly, the specific question of repayment behavior triggered by the customer. We are not seeing any material differentiation between the two periods of the customer coming and doing either a part prepayment or a full foreclosure of the loans.
It is behaving quite similar to the trend that we had in the last financial year. We are very happy with the runoff of our portfolio. In fact, if you remember, we have always been saying that the runoff of the portfolio will, will be in the range of about 17 to 18%. And we have entered FY26, nine months, that is December 25th. We have ended at a runoff of about 16.8% on the opening AEM, which we believe is a, which is a very robust number which helps into maintaining.
Siraj Khan — Analyst
And maintaining our overall amount of the BT that is that we have, we have saved it. But what was the btout request for? I mean was it purely for the rate or what was the composition for the request? People are, people are asking, going to BTR for more top ups, more rate, what was it and how much of it was retained? So like we got 100 requests for BT, how much were retained and what was the composition of the 100 requests?
Rishi Anand — Managing Director and Chief Executive Officer
So Siraj, if I can take that question. See, BT request is very hard to say. You know, sometimes it’s a combination of require request for rate and top up. Sometimes it is only top up. Sometimes it is only rate. We as an organization, we generally avoid doing top ups in till about 18 months of disbursement of the loan because we don’t want to revaluate the property. So that’s where if the customer still wants to revaluate the property and go, we would allow him to go. But it’s a combination of multiple things. Sometimes it just comes for, comes for a rate.
And the moment you say okay, fair, I can still look at this rate, he would say give me some top up also. So it’s a combination very difficult to point out, but approximately, I would say 25 to 30% would come for rate requirements.
Siraj Khan — Analyst
Okay, and like, so what was the number of requests? If you can give or if, or, or you could give me like a percentage Of. Of how many requests that had come for bt? How much did you retain?
Rishi Anand — Managing Director and Chief Executive Officer
Apologies here, Siraj. I am not having that number ready with me. But I will ensure that Sanjay gives that number to you.
Siraj Khan — Analyst
Sure, sure, sure. Thank you. Thank you. Thank you, sir.
operator
Thank you, sir. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to management for closing comments.
Rajesh Viswanathan — Chief Financial Officer
Thank you. Thank you friends for joining us. Call on a Friday evening. I hope we have been able to answer all your questions. Again, as you would reiterate, we believe as management we have delivered consistently not only this quarter but the full financial year. And whether on our guidance that we had set out at the start of the year in terms of AUM growth, disbursement, profitability, cost to income, I think both for the three months period as well as for nine months period, we have achieved that. And as Rishi has alluded during the call, we are quite confident of achieving that both in quarter four and the near term future.
So we look really forward for the closure of quarter four and as we get into FY27. And we will be happy to take any further questions. If anyone has, they can get in touch with our investor relations team and happy to take those questions. And as one of the questioners said, we would also like to see a good budget and budget supports the low income and affordable housing industry. With that words, I think we can get the call to the end. Thank you from the management side.
Rishi Anand — Managing Director and Chief Executive Officer
Thank you everyone. Thank you so much.
operator
Thank you sir.
Rishi Anand — Managing Director and Chief Executive Officer
Hello.
operator
On behalf of ICICI Securities Limited that concludes this conference call. Thank you for joining us and you may now disconnect your lines.