Aadhar Housing Finance Ltd (NSE: AADHARHFC) Q4 2025 Earnings Call dated May. 06, 2025
Corporate Participants:
Unidentified Speaker
Rishi Anand — Managing Director and Chief Executive Officer
Rajesh Viswanathan — Chief Financial Officer
Analysts:
Unidentified Participant
Ajit Kumar — Analyst
Yash — Analyst
Sonal — Analyst
Abhishek Jain — Analyst
Nidhesh Jain — Analyst
Shreya Shivani — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Aadhaar Housing Finance Limited Q4 and FY25 analyst conference call hosted by GM Financial Institutional securities Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing then zero on the touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ajit Kumar from GM Financial. Thank you. And over to you sir.
Ajit Kumar — Analyst
Thanks Rubicha. Good evening everyone. On behalf of GM Financial, I welcome everyone to 4Q FY25 earnings conference call of Aadhaar Housing Finance Limited from the management team we have with us today Mr. Devshanka Tripathi, Executive Vice Chairman, Mr. Rishi Anand MD and CEO Mr. Rajesh Viswanathan, Chief Financial Officer and Mr. Sanjay Mulchandani, Head Financial Planning. We will start with opening remarks and then we will open the floor for Q and A. I’ll now hand over the call to MD and CEO sir for his opening remarks. Over to you sir.
Rishi Anand — Managing Director and Chief Executive Officer
Thank you so much Ajit. A very good evening. Ladies and gentlemen, on behalf of Aadhaar Housing Finance, I extend a very warm welcome to all of you. This year has been a landmark in our journey defined by strong performance. We are proud to announce that our AUM has reached an INR of 25,531 crores representing a remarkable year on year growth of 21%. This outstanding milestone not only reflects our continued momentum but also reaffirms our leadership position in the affordable housing finance sector. We have consistently delivered a strong performance in every quarter while maintaining our position in the affordable housing finance industry.
This sector has seen substantial growth this year with strong support from government and rise in demand for affordable housing. We believe affordable housing will continue to be the cornerstone of India’s housing finance industry. Moving on to Aadhaar’s performance for the quarter and for the financial year ended 2025, we clocked an AUM of INR 25,531 crores, crossing a key milestone of 25,000 crores, a significant growth of 21%. YOY. We continue to maintain our position as India’s leading low income housing finance provider. Diversement stood strong at INR 8,192 crores. A growth of 16%. YoYo disbursement. Sorry. Quarter 4 disbursement at 2,556 crores has shown a growth of 18%. YoY and a growth of 21% YoY in Quarter 1 PAT at 245 crores. While maintaining this growth momentum, we continue to focus on maintaining our book quality. Our portfolio continues to be entirely focused on retail secured loans with NIM exposures to corporates and developers. Our GNP is declined by 3 pips to 1.05% on yoy basis supported by a stable collection efficiency of 100% plus. Our average loan to value ratio is at 59% majorly catering to the salaried segment constituting 56% of our portfolio with an average ticket size of 10 lakhs.
Home loans makes up a substantial majority of the AUM accounting for 74% while non home loans is the remaining 26%. Our deeper impact strategy has been instrumental in driving both meaningful outreach and operational efficiency. By focusing on high potential underserved regions, particularly smaller districts and talukas, we have been able to scale our presence effectively while maintaining a lean operational structure. This has translated in aligning our long term objectives of sustainable growth and prudent resource allocation. As highlighted in the last quarter, the strategy has not only strengthened our foothold in these target segments but also laid a strong foundation for our future expansion.
On geographical front Our geographical footprint has shown substantial growth over the past year, now spanning to 21 states and covering 545 districts supported by a robust network of more than 580 branches. In FY25 we added 57 new branches which has significantly enhanced our capacity to serve a wider customer base which has now reached 2.99 lakh live customers. Another milestone we have achieved this quarter is our entry to the Northeast with its first branch in Guwahati marking a pivotal step in our mission to provide home ownership accessible to the underserved communities. Our expansion to Guwahati aligns with NHB’s vision of financial inclusion and government’s housing for all missions.
Our portfolio remains well diversified with no single state accounting for more than 14% of our total AUM. This balanced exposure underscores our prudent risk management approach while supporting our strategic goal of sustainable and inclusive growth. On technology front, we have led from start by leveraging a TCF enabled source system to fully digitized our processes. We have implemented advanced data science solutions to streamline operations end to end. Over the past four years we have focused on expanding data insights across teams, starting with basic reporting and evolving towards advanced analytical support for better decision making. With this strong foundation in place, we are now moving towards deeper insights through AI and machine learning.
Unlocking smarter, more transformative outcomes. This shift will further enhance data quality, governance and compliance. On the liability side, we continue to focus on our diversification strategy and in the third quarter we have explored ECB as an option. Rajesh will be speaking little more about it. The affordable housing finance sector has witnessed a strong growth momentum in the recent quarter attributed to urbanization and rising demand for housing loans along with significant push given by the government. Union Budget 2025 provides a strong boost to the affordable housing finance sector through measures that directly benefit institutions like us.
Key initiatives such as reduced personal income tax rates, enhanced funding for Prahan Mantri, Awas Yojana, revival of the interest rate subsidy scheme, credit Guarantee Program and allocation to the Swami Fund are designed to increase home loan accessibility and affordability for low and middle income groups. To conclude, I would Bahar Housing Finance stands well positioned to continue its growth journey backed by a strong operational foundation, expanding footprint and robust technology infrastructure. With supportive government policies, rising demand for affordable housing and our inclusion, we are confident in sustaining our leadership in the sector as we move forward.
We remain focused on delivering value to our stakeholders while deepening our impact in underserved communities. I would now like to hand over to our CFO Rajesh Vishwanathan to take you through the financial performance of the quarter and the year.
Rajesh Viswanathan — Chief Financial Officer
Thank you Rishi and good evening everyone. I would like to take you through the financial performance of Q4FY25 and full year 2025. As we exited FY25 our AUM has grown by 21% on a YoY basis and as Rishi said we have crossed the mark of 25,000 crores and we are the first low income housing finance company to do so. Our overall borrowings as of 31st of March 2025 stood at 16,388 crores compared to 13,960 and as at 31st March 24th the borrowings has grown 117% on a buy or buy basis. The borrowing mix as at 31st March 25th is 53% from banks, NHB share is 23%, NCB share is 21% and as Rishi said we have done our first ECB issuance and the ECB share is 3%.
The ECB that we did was for USD 50 million. We did it in quarter 4 FY25 and this is a fully hedged transaction that we have carried out. This is carried out at a SOFR plus 156 VIPS and the full all in hedged cost comes in around 8.1%. Our incremental borrowings for FY25 stood at 5204 crores. We have around 43 borrowing relationship among National Housing bank banks, Housing Finance banks, mutual funds and DFIs. We have drawn 1100 crores 1,100 crores from NHB in FY25 of which the affordable housing fund share is around 16%. The blended cost at which the 1100 crores was borrowed was around 7.9%.
The overall exit cost of funds at FY25 stood at 8.2%. In terms of fixed and floating nature, 79% of our borrowings is floating and 76% of our assets are floating undrawn sanctions asset 31-03-2025 is 891 crores. Liquidity at the end of the year stood at 2,200 crores which is about 10.7% of the loan book. Portfolio yield for the full year as we exited was about 13.9%. In terms of spreads as we exited we have exited a spread of 5.7% is what we had also highlighted in our previous calls. Our cost to income ratio for FY25 stood at 36.4% as compared to 37.5% in FY24.
As we had mentioned in our earlier calls we were looking at reducing our cost to income in the full year on 80 to 100bps and we have shown improvement of 104bps. Further, as you would know there is a movement in the Overall OpEx in quarter four as compared to quarter three. But as we had indicated in prior calls, what we have done is we have tried to spread the OPEX to a great extent among quarter three and quarter four to ensure that there is no lumping up in quarter four. This was as you would remember had happened in last year quarter four compared to that in this year.
The OPEX which is basically the contest which we run from periods of November to March is spread over 2/4. GNP as of 31st of March is 1.05% and this is one of the best performances in terms of GNPA in the last three to four years that the company has demonstrated. There is an improvement of 3bps of GNPA on an AEM basis. The provision coverage ratio on stage three currently stands at 34.5%. Capital adequacy ratio for FY25 is 44.1% and for tier one entire two is 0.5%. For FY25. The overall full year PAT came in at 912 crores compared to 750 crores in FY24.
Overall growth is 22%. PAT for quarter four FY25 stood at 245 crores versus 202 crores in quarter four FY24 which is a growth of 21% on a bio Y basis. We are focusing on maintaining a healthy book and delivering consistent performance on a quarterly basis. With that we can open up for questions.
Questions and Answers:
operator
Thank you very much. We would now like to open the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone 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 Ranish from icici. Please go ahead.
Unidentified Participant
Yeah, hi sir. Congrats on a good set of numbers. So just two things. One on this SAP, you know, so typically in a polling rate cycle there are two three moving parts, one of the BTout rate, then the payload change and also the competitive pressure because generally the prime housing loans will get repriced lower and lower in line with the recorded cut. So if we look at the Our yields in Q4 exit, how do you see yields are settling, let’s say over. Next two to three quarters. Concerning all these two three moving parts.
Rajesh Viswanathan
I think Ranesh, if you look at our overall book yields, it has been quite consistent on a quarterly basis for last three quarters and as we had said, the full year yields are around 30bps lower than the book yield. So in quarter four also we have been quite good at managing to get incremental yields of around 13.5 to 13.55% which is quite similar to what we had in quarter. Yes, bt, as you correctly said, some of the prime housing finance companies obviously do a lot of aggressive BT in the quarter four and the BT out rate as we exited the year we had a 6.5% BT out which was a drop from 6.9% in quarter four of last financial year.
So to that extent some of the steps that we had taken on BT out is something that has helped us to stem the BT route to buy about 50bps on a quarter on quarter basis.
Unidentified Participant
No, but I mean let’s say in a scenario where you know, there could be higher BT out rates going ahead and in order to sustain 20% plus growth, you know obviously we have to get into the price water. So in that scenario, I mean how comfortable or confident we are that we’ll be able to sustain this businessman yield of 13 and a half.
Rishi Anand
So Ranesh, I can come in here. Rishi here. So Ranesh, as Rajesh said, we have taken multiple steps already with a central retention team in place, multiple other measures with respect to data analytics pulling in into the retention team. So all those measures have been taken and we can see initial results at 6.9 to closer to 7% falling towards 6.5. Vision is to take it to an annualized number of 6%. What we have also interestingly done is, and you’re right in the way you’re looking at it, what we have done is to protect ourselves, we have now divided the country into something and that’s effective this financial year.
But I don’t mind speaking about it right now into urban and emerging locations. So you know the top, I would say 15 cities which will contribute about 100 branches is now urban which contributes to my top line. And then in emerging we have three categories of branches which is typically about 400 odd branches. So emerging A, B and C and the strategies for urban and emerging ABCs for all four kinds of different locations is completely different. When I say strategy I mean the ticket size, I mean the yield, I mean you know the BTOUT strategy, the branch strategies, all the strategies for every branch category is different.
Illustratively let’s say emerging C location which will be typically a tier 4 tier 5 location. I have a maximum digit size cap, I have a BT out cap. I have incremental yields which will be much higher than what an urban or an emerging A will be giving to me. So as we move ahead I think this strategy of ours which is going to play a big role in defining how Aadhaar is going to maintain its current levels of spreads or even BT out for that matter.
Unidentified Participant
Got it. Rishi sir, just a request, I mean would you be able to share the yield difference between urban and emerging ABC? I mean there will be 40, 50 basis point of rate difference with each location or how is it?
Rishi Anand
While I will this is as I told you effective first April but I will indicatively give give you the differential in ease overall. Bear with me for a second.
Unidentified Participant
Sure sir.
Rishi Anand
Ranish, we’ll come back to you. We’ll just pull it and we’ll come back to you in a call and pick up the next questions. If you don’t mind. In this call just give give us a moment. We can move to the next question and come back to you. Thanks very much.
Unidentified Participant
So. So the second question again is on the upset quality. So obviously this quarter we have seen a pretty sharp recovery. But when we look at the stage two assets that has been steadily increasing with IT tracking at 4% as of March 25 versus 3.8 December quarter and 3.6 last quarter last year. So is there any specific reason or I mean this is just part of the moment here and there.
Rajesh Viswanathan
I think honestly Ranesh, we should not read too much into the Stage two. Honestly as a company, we have been a company which shows lower NPA and higher Stage two always. There’s also one more thing which is which I which I would want to say because included in Stage two is some of our assets which were one time restructuring we had done at the time of COVID So on this basis, what you call it conservative basis, we provide provision of 10% and we also show them at stage two though they are stage one assets. So the impact of that is anywhere between 0.6 and 0.7%.
So of the total stage two that you are seeing of 4% about 0.6 to 0.7% will pertain to assets which are actually stage one. But we show it under stage two because we carry a stage two provision as per RBI mandate of 10%. It’s about four years since restructuring has happened on account of OTR. So probably somewhere in FY26 we may take a view or a call of moving this back into stage one.
Unidentified Participant
Got it. But all these accounts are regularly paying accounts.
Rajesh Viswanathan
Yeah, this point six percent to 0.7% which I mentioned are actually stage one in terms of actual DPD. But I show it I classified under stage two for the purpose of reporting.
Unidentified Participant
Got it.
Rajesh Viswanathan
Okay. If I can now I have that data on your field that you had required. If I can indicatively tell you your urban locations will be in yield will be in the range of 12%. Your emerging ABC, as I told you will be in the range of 14 to 16% and that’s how the combined 13.5, 13.6 is. And as Rishi said, the reason of us going on the emerging A, B and C is primarily to ensure that our next year yields also fall into the same range as we exited in the current financial year. So we would like to maintain yields at similar levels as we end up maybe up to minus five to six bids is fine, but otherwise you would like to maintain at similar levels.
Unidentified Participant
Got it. Got it. Now this is actually very very helpful and this is what, you know, we wanted to get a sense of yields. Thank you very much sir. And best of luck, sir.
Rishi Anand
Thank you, Ranesh.
operator
Thank you. The next question is from the line of Yash from Citigroup. Please go ahead.
Yash
Hi sir, thanks for taking the question. Sir, on the borrowing side of the almost 79, 80% of the floating rate borrowings, can we get the split on how on like what’s the benchmark they are linked to and what could be the quantum of improvement which we can see in sort of 1Q of FY26.
Rajesh Viswanathan
So if you look at it on the total bank borrowings or even on the total borrowings, if you see about 18% of them will be linked to short term rates like repo or T bill, sort of. For example, let’s take the bank borrowing out of total bank borrowing, approximately 18% is linked to either repos or T bills where obviously the pass on will be almost immediate. For example, out of the total Boeing borrowings, one year MCL is 20% and six month MCLR would be 30% and three months will be a further 30%. So in that sense it is widely distributed and only about 18% is where we get immediate benefit.
The bigger benefit will obviously start coming in, then the MCLR starts moving. And what we have seen is that two rate cuts have happened and we have not seen much movement in the mclr. So honestly I do not see MCLR moving the needle so much at the end of 1Q. Maybe in case in quarter two that we will see some movement in MCLR there will be which will happen as a pass back to us. Maybe MCLR headline of the banks may change, but by the time it gets passed on to us, depending on whether we come into 3, 6 or 12 month MCLR resets, probably we see it happening somewhere in quarter two.
As far as the interest rate drops are concerned, I think a lot of public experts have spoken on that. And as and when the drop happens, approximately 18% benefit comes immediately to us in terms of fixed and floating. As I said, Approximately 74, 75% of my assets are also floating. And we calculate RPLR on a continual basis. And as and when the RPLR gets needs to get passed on, we will, as per the mandate of the Alco and the board, we will pass it on to the customers. So we don’t see much of a benefit on any movement in interest rate because our borrowing floating and our asset floating are more or less on a matched basis.
Yash
Okay, so basically from 2Q onwards you could See some meaningful drop in borrowings but it might get offset with yields.
Rajesh Viswanathan
And yes, to be very honest, you may have a lag effect before we get a benefit and we may pass it on. But beyond that, I don’t think neither we are building anything internally also on that.
Yash
Got it. And second on the asset quality, more from the MFI exposure. I believe in the last call also we have indicated around 9,10,000 customers with MFI overlap. And now with the Tamil Nadu thing coming in. So any risk to the customers, I believe we have around 56 or 57 branches in there. So anything incremental from the states we could see given the MFI exponent.
Rishi Anand
Yes, you’re right. Our numbers were about 9,000 odd customers. 9,096 customers who had MFI exposure. That number has dropped to about 7,077 customers now. So loans have been foreclosed. As regards Tamil Nadu, I think it is too early to read what is going to happen. Yes, we have branches as we speak today. Things are perfectly okay. Our recovery efforts wherever applicable are completely online. The complete support from the government machinery like the DMs or the police, wherever assistant required has been coming in even as as close as today morning. So we don’t see any issue happening as we move ahead.
Yash
Got it? That’s it, sir. Prof. My side, thank you so much.
Rishi Anand
Thank you Yash.
operator
Thank you. Next question is from the line of Sonal formation market securities. Please go ahead.
Sonal
Yeah, thanks for the opportunity sir. And congrats on the quarter. Just to add one question on the yield.
Yash
So when we look at it as percentage of average assets it has come down to 12.8%. So there is some drop. But the reported numbers, they stand pretty much similar. 13.9%. So what kind of experience does difference?
Rajesh Viswanathan
I think to be very honest I would want to see the number that you are quoting. 12.8. I wouldn’t be able to. So if we can take that offline and you can probably share it with us and we’ll be more than happy to help you on that.
Sonal
Sure. Thank you.
operator
Thank you. The next question is from the line of Abhishek Kumar Jain from Alfakirid. Please go ahead.
Abhishek Jain
Thanks for opportunity and boundary. First concept and AM side, what is your growth target for FY26? So Abhishek, in terms of growth targets or you know, guidance. We will maintain our AUM guidance of 2021% disbursement guide growth of about 18 to 19% and a PAT of about 2021%.
Rajesh Viswanathan
And on the NPA front we believe that we should be around 101.10 to 1.15%. That’s right.
Abhishek Jain
And from where you are targeting this. Much of growth basically on the emerging. Market or in your.
Rishi Anand
So our primary growth is going to come from emerging markets. As I explained in in. In the previous caller. During the previous caller I’m emerging is going to contribute higher composition of our growth.
Abhishek Jain
And what is the current. I want a mix of your loan.
Rishi Anand
So so current split of the current one is. We don’t do rural. Yes Abhishek, just to clarify we do, you know only, only urban, urban and emerging split I can tell you is about 55% current is from the urban locations and the balance is from the emerging locations. And we would look at maintaining, you know 55% should eventually in couple of years should go to about from emerging and 45% from urban. So it will reverse, you know, as we move ahead. And how is the demand situation urban versus ruler at this point of time in affordable housing.
So demand whether it is urban or whether it is emerging, not rural again is emerging is more or less similar. It is, you know, it is all about how do we reach there? Where where is competition playing a larger role. For example in urban locations competitors will play a larger role. And the moment you move to emerging ABC kind of locations that I just explained, the competitive intensity goes down. Hence you know, the probability of higher conversion ratios applies in emerging locations.
Abhishek Jain
Okay, thank you.
Rishi Anand
Most welcome.
operator
Thank you. The next question is from the line of Siraj Khan from Ascendant Capital. Please go ahead. Yes you are. Please go ahead.
Unidentified Participant
Yeah, thanks for the opportunity and a good set of numbers. So sir, the first question is with regards to the candy cost credit cost for Q4 was elevated. I mean compared Bioeye last year. Last year Q4 we had the recovery negative number. This year we have a positive number. So wanted to know were there any write offs elevated write off, technical write offs of that sort?
Rajesh Viswanathan
No, no. This is not your account of write off. As was asked by one of the analysts. This is primarily because of the movement of one stage two. Because stage two if you look at it on a year on year basis there are more by about 30, 40 bids. And second is basically your standard asset provision would have increased because the AUM increases significantly in quarter four. Last year the stage two improvement was fairly significant in quarter four versus quarter three. That is why there was a reversal of provision in quarter four this year that much benefit didn’t flow through in terms of stage two improvement and that is why we are seeing a small credit cost of over 5, 6 crores going into the PNL.
Unidentified Participant
Okay. So in Q4 we did not have any write offs.
Rajesh Viswanathan
Basically there will be standard write offs which for example if we, if you sell an asset, for example if there’s a haircut of 10% on an asset sale, that 10% write offs will happen. We have not taken any additional provisional write off or potential write off which we take because normally we take credential write off once a year. We have not done anything of that sort in quarter four.
Unidentified Participant
Okay, so I just wanted that number. So what was the Q4 write off and FY25 WROFF.
Rajesh Viswanathan
This would be approximately 8 to 9 crores in quarter four. 89 and full year, full year would 32 cross. Would be the full year 32 cross.
Unidentified Participant
Okay. That’s for the asset quality. One more question. Another had was on the sourcing specifically in the southern region. So many of the peers that I have seen that that is there in the southern market. They have, they have seen that Tamil Nadu market has seen a little bit of a slowdown. Karnataka is also facing some issues. Even Madhuradesh there were some, some, you know NBSC showing that there is some tremors of very very low level thing. There is some asset quality issues. Are we seeing anything in the in these markets? Madhya Pradesh or maybe any anywhere in any across of our state we see some asset quality issues.
Maybe early sign in 30 dpds, 60 dpds anything of that sort.
Rishi Anand
So since you mentioned Siraj, certain states, Tamil Nadu we are not seeing any issue as I see the numbers. Karnataka no issue. Andhra Pradesh on a growth trajectory. Tamil Nadu on a growth trajectory. The states. And if you recall my last in the last quarter also I mentioned this states which historically have been a poor credit behavior continue to be poor credit behavior which is typically east east of the country. You have Kerala, they continue to be that Madhya Pradesh again growth trajectory, complete growth trajectory. No early indications from any of the states that you mentioned.
Neither in bouncing any indication negative indications nor in 1 plus nor in NP.
Unidentified Participant
And finally on the OPEX. So year on year cost to income has also come down. So what are the drivers that we are that we will get this further lower? What is the target with respect to both cost income and opex? Opex to value.
Rajesh Viswanathan
I think when we reduce 120bps of cost to income. I think I had said that we want to reduce 150bps in two years to be very honest. And we already done about 120bps in year one. I think to be very honest, next year we will have around a 30 to 50bps, sort of a drop in cost to income. The driver over here predominantly is that majority of our expansion has already happened. And the incremental expansions that we do, about 50, 60 branches expansion that we do about 60, 65% of the branch expansion will happen in emerging B and C which are smaller offices and where the cost of opex of setting up these offices is predominantly lower.
And the remaining 30, 35% will happen in the bigger offices. And the second thing is obviously since we have invested significantly three, four years back in data analytics as well as in technology, that benefit of that is seen right across the company. Whether it is sourcing, whether it is credit, the number of files that they can handle, technical in terms of turnaround time. So basically the sheer productivity not only of the sales guys but also of the non sales guys has stepped up. So that is the reason that for that incremental 100 rupees of business, the opex that I had to probably put in three years ago is not the same.
Obviously we are seeing benefits of productivity and that is a driver that we constantly work on whether it is frontline sales productivity or productivity right across all the business support functions.
Unidentified Participant
Understood. Just a few statistics. If you could provide what was the login to sanction and the sanction to disbursement ratio for the year and the files were the files per officer.
Rishi Anand
Files per officer, A volume per officer. That’s the third number I will try and pick up. But login to sanction for the year was once again. Just give me a moment. Yes. Okay. So login to sanction was 60% and sanction to disbursement was 62%.
Unidentified Participant
Again the corresponding number that is readily available.
Ajit Kumar
The previous year it was the login to Banker was 61.8 in FY24. In FY25 it is 60. Sanction to disbursement was 62. Sorry, 62.5 and now and in 2562. So more or less similar in terms of numbers. Yeah.
Unidentified Participant
And the volume per employee, the officer.
Rishi Anand
The file number for the sales. Right. For the sales it is 1.15 per sales officer.
Unidentified Participant
That was very helpful.
Rishi Anand
This is, this is for the frontline sales.
Unidentified Participant
So you are speaking about.
Rishi Anand
Yeah, yeah, that’s right, that’s right. You got it right here.
Unidentified Participant
Okay, thank you.
operator
Thank you. The next question is from the line of Nadesh Jain from Investec. Please go ahead.
Nidhesh Jain
Thanks for the opportunities as on credit rating, how is the conversation with the credit agencies on possibility of crediting upgrades? That is my first question and then I have some data keeping questions.
Rishi Anand
Okay. So credit rating as also informed earlier we are engaged, we are already engaged with both the credit rating agencies and I, I don’t foresee that this, this rating upgrade should be prolonged for too long while obviously it is a decision that will be taken at their management level or the rating rating committee level. But we’ve had good rounds of meetings even as last, as last 15 days. So that’s the update.
Nidhesh Jain
Sure. Because in terms of size and other financial metrics we are doing quite well and we have also reached across 25,000 crore of size.
Rishi Anand
So think that’s what, that’s what both the rating agencies also tell us here. So meaning, you know, I will leave it up to their judgment.
Nidhesh Jain
Secondary if you can share incremental yields and incremental ticket size, loan size for the Q4, Q4 incremental yields and incremental loan size.
Rajesh Viswanathan
Incremental yields has come in around 13.45 and incremental ticket size on a blended basis is 13 lakhs. HL is about 15 lakhs and 9 lakhs is non home loan.
Nidhesh Jain
In terms of sourcing mix for the full year or for the quarter, if you can share the sourcing between in house, DSA and connectors.
Rishi Anand
The split I will pull out. But broadly if I can tell you in house which used to be 59% last year has dropped to. Sorry, the 54% which was 54% last year has grown to 59%. So almost 60% is now in house and the balance is external between DSS and connectors there.
Rajesh Viswanathan
So, so of the of the 41% your corporate DSA would be in the range of about 25%. The balance would be what we call connectors retail DSA. A point that we wanted to mention over here is our Aadhaar Mitra program which if you remember we have been always talking about it for the last three, four years. We have seen good traction in our Aadhar Mitra offtake and the disbursement contribution by Adar Mitra now is almost touching 30% for FY25. To put it into perspective, in FY22 it was about 22% and FY24 it was again about 22%.
So there has been a significant movement both in the number of Aadhar Mitras that we have and the contribution that Aadhar Mitras are making to the overall Disbursement mix. As you would know, Aadhaar Mitra is only a referral model where the case is actually closed by my internal sales team. And hence these are all counted as internal businesses.
Nidhesh Jain
Okay, so 60, 69 internal includes Adamitra.
Rishi Anand
Yeah. Is a referral program of providing leads to my internal channel. It is just a lead provider.
Nidhesh Jain
Sure, sure. And the last question is that if you look at one 1.15 per sales officer, what are the steps we are taking to improve this? Because this, this productivity, I think for industry level it’s also the productivity is broadly here only. So but when let’s say we want to build a 50,000 crore book etc, this could become a bit of a constraint for reaching that particular scale because then we will require thousands of employees. So how, how are we thinking about improving this productivity?
Rishi Anand
See this, the direct Correlation of this 1.5, 1.1 file per sales officer is linked to the attrition date of the company. So and we realize that and we understand the data, we understand the psyche of our front end employees. We have launched multiple programs, right from handholding to internal schemes of their growth trajectory etc. Just to ensure. And we’ve seen early results, early positive results. At least in the last three quarters that we’ve been doing this, you know, our attrition rates have dropped. The moment the attrition rates dropped, drop. And if I were to look at numbers in the current quarter or the last month for example, they have gone up, I will not say substantially, but you can see a trajectory moving northwards.
So it is directly correlated to attrition. We have, we have started adjusting attrition which will, you know, eventually lead to a higher file per ro.
Nidhesh Jain
Thank you.
Yash
So that’s it from my side. Thank you sir.
operator
Thank you. The next question is from the 9 of Abhishek M from HSBC. Please go ahead.
Unidentified Participant
Yeah, hello. Hello. Audible.
Rishi Anand
You are audible. Yeah, please.
Unidentified Participant
Yeah, hi. Thank you. So thanks for taking my question. Can you give a sense of the balance transfer that you are seeing? So how much is getting out right now and has that increased or remained the same over the last say one year?
Rishi Anand
So Abhishek, our balance transfer out annualized for March is 6.49% which has dropped from a previous year. Previous year it was 6.93%. So from a 6.93% it has dropped to 6.493.
Unidentified Participant
This is not the number of files. So if you are holding hundred files, 6.9 are getting BT’d out or 6.4 or is it from value?
Rishi Anand
This is AUM value, AUM basis. Right.
Unidentified Participant
So see as per my understanding, a lot of larger HFCs are trying to build an affordable housing book and they are trying to approach customers who have been with you and you know, your peers for two, three years, good track record and they are able to offer lower rates, you know, given their own lower cost of funds and OPEX and all that. So is that not increasing in instance and that is why your BT outrage is coming down or is it some calculation thing that is contributing to this? I just wanted to understand how you able retain these many customers, you know, when competition from large peers is increasing.
Rishi Anand
Yeah. So there are multiple things abhishek that you know, plays around when btout is spoken about. One is internally we have taken multiple measures, right? From having a centralized retention team to data analytics contributing towards, you know, highlighting the consumer as red, yellow, red, green and amber, et cetera. So there are multiple things from a data analytics perspective that has gone to the retention team. It’s a centralized retention team operating out of Mumbai. So any customer across 500, across the 600 branches approaches a branch for a btout is immediately redirected. We understand the reason of btout if it is yield good customer, green, green tag customer.
We look at our own spreads and accordingly maybe you know, look at the customer if you need stop up based on our policy, we look at top up. That is one second is while you mentioned large housing finance companies, etc. Everybody has a certain risk appetite as we understand. There are certain large companies who are not very comfortable with a certain risk score. There are companies which are not comfortable with self employed, no income proof underwriting. There are certain large housing company is not comfortable with the kind of properties my consumer buys. It is a mix of a lot of things.
You know a generic statement that one large company can come and take a bit of bt. No it’s not, it doesn’t work like this. It is a combination of all these three things. Third, you know, when we talk about larger companies looking at our consumers, this is primarily going to happen only or is happening I would say primarily in the emerging A and urban location. And that’s why our shift in strategy emerging B.C. you know, so that is going to balance out completely. And that is actually already you can see the numbers, you know, panning out.
For example, you know, versus the last year as I quoted, almost a 7% of our VT out has fallen to about 6%, 6.5% today.
Unidentified Participant
Sure, thank you for that. That was very comprehensive and that’s all.
Rishi Anand
Yeah.
Unidentified Participant
So another quick question on your source mix. So you explained that almost 59, 60 internal and the best is you know, through your channel partners. Even in an internal you have, you know, these Aadhar Mitras. Can you, can you sort of pinpoint which is the fastest growing channel? Is it Aadhar Mitras? And that’s good. And that is helping the growth of 54 going to 59 entirely driven by that, you know, to rely more on your internal teams as well.
Rishi Anand
Yeah, my fastest growing two channels, Abhishekar, Aadhaar, Mitra and my direct sourcing, both of them combined are the fastest growing channels for me today.
Unidentified Participant
Understood. Thank you so much for, for those two answers. Thank you. And all the best.
operator
Thank you. The next question. Thank you. Thank you. The next question is from the line of power from Nomura. Please go ahead.
Unidentified Participant
Hi. So congratulations on a good quarter, sir. So just two basic questions. You mentioned that the share of emerging markets is going to improve going ahead to 55% from the current levels of 45% and we also see good traction in the non home loan segment. So do you see any incrementally improving impact on the yields with growth in these two segments and geographies? And apart from that, since you’ll be growing in the emerging market segment, can we expect some improvement in the share of self employed customers and EWS LIG customers and whether this will have any detrimental impact on the credit cost? That would be yes.
Rajesh Viswanathan
I think as we explained overall the strategy of moving into or splitting the business into emerging and sorry urban and emerging 1, 2, 3 is to maintain the healthy yields that we currently have. So I think the idea is to maintain the yields that we currently have. To be very honest, we don’t expect the yields to grow significantly from where we are currently. Maintenance of the zeals itself is a fair achievement. Whatever benefit we get from emerging B and C is where the yields will be slightly more stronger. If the business of that starts growing significantly in year one end and year two, that is where you may see some traction.
But for that we also have urban locations where competition will be high. So it’s a sort of a set off that we have. That’s why I’m saying holding yields is a fair assumption. The second question that you had was on consumer profile. See consumer profile. What is going to happen is as we move ahead in this strategy, our self construction business will go up, our self employed business will go up. Because the more you focus on emerging B and C locations that these are smaller district Centers where more of Silverbride customers are available. Which gives us an upside on managing. So what are we trying to protect by doing broadly? If I can give you a couple of points. One is we are trying to protect our ticket size, you know, emerging locations, sorry, urban locations where the ticket size moved northward, cost of construction is high, cost of labor is high, so on, so forth.
And the emerging locations, the cost of construction is comparatively lower. So I will be able to manage my ticket size. And as Rajesh explained, urban locations you will have, you know, slight contraction on each yields on spreads. Whereas in emerging locations that’s where you will be able to manage. So a complete balance on ticket size and complete balance on spread is what urban and emoji is going to give me.
Unidentified Participant
That is helpful. Sir, just another question was on the fact that since you will be growing the emerging segments, will you see a rise in the EWS and LIG income group and will it impact on having an impact on the credit cost side?
Rishi Anand
First let me clarify to everybody on the call, including part you, that we are already in these locations. We are not going to these locations. What I have done is I have split my 600 branches where I am available today into two categories. So I am not that I am going to venture out into new locations from a pure strategic and control perspective, ticket size, perspective, yield perspective. I have just distributed not only the branches but even my teams. You know, I’m trying to put the best and the strongest team on the emerging side because urban locations are more, more or less on, on auto mode right now.
So that’s what I’m doing. So will my credit cost enhance because of this? No, it will not. Because this is the business that I’ve already been doing.
Unidentified Participant
That is helpful. And just one last question. So your top states like Rajasthan, UP, Maharashtra and even Madhya Pradesh is now at 11%. Sorry, not Gujarat. So do you plan to change your threshold of maintaining just 14% to a bit of a higher threshold once you start seeing improved growth in the states?
Rishi Anand
No, we will. We have as management we have strategically decided that whether it is distribution, whether it is incremental disbursement or whether it is AUM, we will not breach the 14 mark.
Unidentified Participant
Okay.
Rishi Anand
You know, 50 bits here and there, 14, 14 and a half. But that’s, that’s the range we will be around.
Unidentified Participant
Thank you. This is very helpful. Congratulations.
Rishi Anand
Yeah, thanks.
operator
Thank you. Ladies and gentlemen, this will be the last question for today which is from the line of Shreya Shivani from clsa. Please go ahead.
Shreya Shivani
Yeah, thank you for the opportunity. Apologies, I joined in late, so I’m not sure if this has been discussed already. I wanted to understand how much liquidity are you holding on balance sheet right now in terms of three months, six months? What it, what is it right now? What Was it in FY24? Where would we want to keep it and if any benefit can come through or from reducing this, on our spread, sorry, on our margins, etc.
So some commentary on that, please. Thank you.
Rajesh Viswanathan
So our overall liquidity that we had at the year end stood at about 2200 crores, which is approximately 10% of the loan book. And if you look at it at March and last year, it would have been on similar lines. So typically what happens is in intervening quarters, this typically is in the range of about 8 to 9% and at the end of the year it becomes 10% because there are significant drought which happen at the end of the quarter which gets utilized in the start of the next quarter. Typically. What we would like to keep it is we would like to keep this in the levels of about 8% to be very one and to be very honest, we would like to measure that more as a percentage of borrowing mix.
So we would like to keep somewhere about 8 to 9% of the borrowing mix. Obviously this gets decided by the Alco in terms of the liquidity in the market. If the liquidity becomes tight, we would like to keep it at a higher percentage. Otherwise 8 to 9% is balance sheet liquidity. On top of that we will always have undrawn lines. For example, on balance sheet liquidity was 2200 crores. We also had undrawn lines of about 900 crores.
Shreya Shivani
Got it, got it. So broadly then you are pretty much in range and this will not really dramatically shift from where we are right now. Right.
Rajesh Viswanathan
This will give you a release of about 1, 2% to be very significant.
Shreya Shivani
Got it. This is very useful. Thank you so much and all the best.
operator
Thank you ladies and gentlemen. As this was the last question for today, I would now like to hand the conference over to the management for closing comments.
Rishi Anand
Thanks a lot. I think I thank all the participants for joining in and I would like to apologize also for uploading the presentation a bit late. We had some problems at the site for upload. So we will ensure that next time at least we give you a slightly more clear lead time for reading the presentation. I hope all the questions have got answered. If there are any unanswered questions, you can always reach out to the investor relations website. Sorry, mail ID and we will be happy to answer questions. Thanks a lot and have a good day.
Rajesh Viswanathan
Thank you so much.
operator
Thank you. On behalf of JM Financial, Institutional Lease Securities Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.