CREDITACCESS GRAMEEN LIMITED (NSE: CREDITACC) Q3 2025 Earnings Call dated Jan. 24, 2025
Corporate Participants:
Krishnan ASV — Senior Vice President at HDFC securities
Udaya Kumar Hebbar — Managing Director
Ganesh Narayanan — Chief Executive Officer
Nilesh Dalvi — Chief Financial Officer
Analysts:
Shreepal Doshi — Analyst
Nithu Dharakanth — Analyst
Shreya Shivani — Analyst
Sanket Chheda — Analyst
Rajiv Mehta — Analyst
Renish Bhuva — Analyst
Bhavik Dave — Analyst
Arjun Bhatia — Analyst
Abhijit Tibrewal — Analyst
Parth Shah — Analyst
Kamal Mulchandani — Analyst
Ashlesh Sonje — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q3 FY ’25 Results Conference Call of CreditAccess Grameen hosted by HDFC Securities Limited. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Krishnan ASV from HDFC Securities Limited. Thank you, and over to you, sir.
Krishnan ASV — Senior Vice President at HDFC securities
Yeah, hi, a very good evening, everyone, and welcome to the Credit Axis Q3 FY ’25 earnings call. On behalf of HDFC Securities, I’m Krishnan ASC. And I’d like to thank the CreditAccess Grameen management team for giving us this opportunity to host the call.
Today, we have with us the senior management team of CreditAccess Grameen, represented by Mr Uday Kumar; the MD; Mr Ganesh Narayanan, the CEO; and Mr Niresh, the CFO. Without further ado, I’ll now hand over the call to Mr Uday Kumar Hebar for his opening remarks and then we’ll open up the floor for Q&A.
Yeah. Over to you, sir.
Udaya Kumar Hebbar — Managing Director
Thank you. Thank you, Kristian. Good evening everyone and wishing you all a happy and New Year. Thank you for joining today’s conference call to discuss the performance of CA for the third quarter and the first-nine months of financial year ’25. Thank. The resilience of megawatt industry has been directed and validated multiple times in the past and both business operations and asset quality were affected by various external and internal factors. Today, the industry is matured and capable of productivity take corrective measures to navigate any. The guard rates introduced by industries have the purpose of and other rating standards which will not only protect the customer interest, but also help in maintaining stable asset quality.
While there has been a transient increase in the delinquency trend due to various reasons since Q1 FY ’25 and resultant tighter underwriting norms, we believe that these measures will make the industry more robust and drive balanced growth in the future. Has consistently demonstrated superior cycle performance in the back of our customer-centric and employe approach, which have not only shaped our day-to-day operations, but also served as a the pillars of our resilience.
We — the recent increase in the industry delinquencies have again the strength of our business model and we have been able to emerge stronger given our enduring fundamentals and agility in responding to evolving subscriptions. Our initial assessment of the current delinquency cycle being transitory in nature has come true as we see the new delinquency addition rate slowing down across various geographies since mid-November 2024.
While we had initially estimated the delinquency trend to peak in — peak out in September, the actual peak out was seen in October and until mid-November due to the temporary impact of festivities, heavy rains, cyclones and localized disruptions. The new trend reversal was materially visible across various markets beginning mid-November, getting further stronger in December and continuing in January also.
However, while Tamil Nadu also has been showing an improving trend, there was minor increase of park 15% in January was due to lagged impact of heavy range and sex loans in November and December. However, we expect this also to normalize since there are large number of borrowers paying partially, but still in-part 15%.
Overall, we believe that new delinquency addition should normalize by Q4 FY ’25 on-Q1 FY ’26. We have also seen roll-forward rates having reduced in par 1 to 60 bucket driven by over 40% of borrowers making partial. This improvement is due to experienced employees who are deployed to support collections in critical locations. With delinquency trends showing the signing of improvement, growth has regained our focus, reflected by AUM growth in December after eight months of contraction.
Our monthly disbursement rate, which was at 50%, 60% of the normal trend over July to November, crossed 80% in December and expecting 90% in January. Similarly, trend is also reflected in our new borrower addition, which also saw share of new to trade customers increasing from 30% 35% to 42% in Q3 FY ’25.
Our retail financing division centers central to our evaluing with customer strategy also experienced significant growth with disbursement increasing by 51% Q-o-Q, reflecting our ability to deliver tailored solutions. The retail finance now accounts for 5% of our AUM amounting to INR1,245 crores at the end of Q3 FY ’25 compared to 2.1% a year-ago.
So in the light of the current industry scenario, it is important to quantify the current impact of existing switching 1 and potential impact of Guardrail 2 applicable from Q1 FY ’26. We’d like to draw your attention to Slide 10 briefing about the current impact. Notably, there has been a significant deleveraging on both customer-base and the loan portfolio. So in the more than plus 3 over plus three lenders cohort, the GLP share decreased to 18.8% in December ’24 compared to 25.3% in August ’24. There is this improvement over almost 7%.
Additionally, in terms of customer-base, the share dropped by 500 basis-points to 23.6% at the end of December ’24. Furthermore, deleveraging trend is clearly evident in the cohort of borrowers who is unsecured over INR2 lakh, which includes microfinance and unsecured retail loans.
The AUM has decreased significantly from 19.1% in August to 13.3% in December, reflecting a sharp reduction in exposure to this segment. At the same time, the share of borrowers in this category has declined to 11.6% in December compared to 15.5% in. Kindly note that the unsecured refers to both MFI loans and unsecured loans as defined by the by MP Guard II 28.
Now coming to a delinquency portion on Slide number 11. The impact of tighter underwriting standards has largely been realized. Par 15 plus in case of borrowers in Plus three lenders or and three and above lenders increased from 6.1% in Q2 FY ’25 to 10.1% in Q3 FY ’25. Similarly part 15% in the case of borrowers with more than three lenders stood at 22.1% in Q3 FY ’25 versus 12.2% in Q3 FY ’25. Out of overall Part 15 of 6.3%, 2.9% was on account of borrowers in four or more lenders.
Similarly, part 15 on account of borrowers is unsecured indebt business over INR2 lakh was 1.3%. So we have also analysed the loan performance of MSI borrowers with active retail finance loans and found that the delinquency rates for both segments are not significant — significantly different. The 15 for borrowers with retail loans is 7% compared to 6% for those with only MFI loans. This is an encouraging sign given our strong underwriting standard and the fact that majority of retail exposure is in the form of gold loans where par is technically in nature, par is the technical in nature.
The assessment of potential impact of guardrails in the coming quarters is captured in Slide number 12. And out-of-the 23.6% borrowers with more than plus free lenders, 84% are promptly paying as of 21st March, 31st December 2024. This will help them in gradual reduction of leverage in and multiple loans, making them eligible for future loans. Further, only 30% of these cohorts have unsecured injured basis exceeding INR2 lakh.
Based on our internal evaluation, we are confident that we can retain more than 80% of borrowers in the four and five lenders cohort also. This analysis clearly shows that will not have any major negative impact on our customer retention in the — and the future growth.
Now I will request Ganesh to brief you on financial new initiatives undertaken and performance guidance. Over to you, Ganesh.
Ganesh Narayanan — Chief Executive Officer
Thank you a very good evening to everyone on the call. I start by wishing you all a very Happy New Year. Thank you, for the detailed rates. While we are anticipating the new delinquency accretion rates to normalize over the coming months, it is imperative for us to complete the accounting journey for the existing delinquent book.
Our early risk acquisition and conservative provisioning policy have been key drivers in maintaining financial stability and ensuring that we are well-positioned for the future. Further, our approach to take accelerated write-off over the 3/4 starting from Q3 FY ’25 is an effort to early recognize the impact on our financials by end of Q1 FY ’26.
Accordingly, we took an accelerated write-off of our loan accounts with 180 plus DPD not paying amounting to INR229 crore this quarter, resulting in an additional credit cost of INR73 crores. The total write-off for Q3 FY ’25 stood at INR376 crores and for Nine-Month FY ’25 at INR606 crores. Overall, we continue to hold INR134 crore higher provisions compared to the NBFC industry, 243 bps or INR587.5 crore higher provisions over par 90 and 412 bps or INR1,010 crore higher provisions compared to IRAC prudential.
The credit cost stood at INR750 crores for Q3 FY ’25. Our collection efficiency excluding stood at 93.3% and collection efficiency including RUS at 94.1% for Q3 FY ’25. PAR-90 stood at 2.64%, at 3.99% net NPA at 1.28%, both predominantly measured at 160. The collection efficiency ex-bucket was over 99.20 for December.
The net interest income grew by 7.4% year-on-year to INR862 crores with portfolio yield at 20.2%, an interest-rate of 10.4%. We’ve been able to maintain our average cost of borrowing at 9.8% for last six quarters despite the prevailing scenario.
In Q3 FY ’25, we raised EUR3,862 crores, including EUR25 million from German Investment Corporation and INR170 crores from co-financing facility. With BG on-board, we now have six international DFIs in our leader profile. These strategic partnerships are crucial in diversifying our funding sources and been providing access to long-term cost-detective capital.
NIM slightly declined to 12.5% for Q3 FY ’25 due to interest reversal of INR75 crores, while nine-month FY ’25 NIM stood about 30%. Cost-to-income ratio was at 31.3%, while PPOP stood at INR623 crore in Q3 FY ’25 and INR2,004 crores in nine months FY ’25.
While conservative provisioning and accelerated write-offs impacted Q3 FY ’25 profits, it will safeguard our profitability over the coming quarters with growth rate getting normalized. Overall, despite elevated credit costs, we estimate to deliver 2.3% ROE and 19.2% ROE in nine months FY ’25.
We are maintaining healthy liquidity levels with cash-and-cash equivalents of INR3,22 crores amounting to 11.7% of the total assets. Additionally, we have sanctions in-hand of INR4,071 crores, backed by both domestic and foreign lenders and another INR6,733 crore was sanctioned in the pipeline. The capital adequacy remained high at 25.9%.
As a part of our strategic initiatives, we are pleased to introduce two new applications, designed for employees, which is a comprehensive platform that manages the entire customer lifecycle from onboarding to dropout. It streamlines branch operations by enabling all tasks to be performed within a single unified system.
On the customer side, Mahi, our customer digital handle has been launched to offer convenient access to individual and group loan products, requests for additional loans receiving remainders and make repayments through. With over 2 lakh resistor users so-far, the app is available in 10 languages across our operational. To the latest technology stack, it integrates all necessary digital APIs and interfaces, ensuring a seamless user experience. This is the conduction history that app will offer varied features, experiences to the customer.
Now in reference to the past crisis like and COVID, we witnessed normalization in profitability over 3/4. Considering the current scenario, we are aiming for an AUM growth of 7% to 8%, NIM of 12.8% to 13%, credit cost of 6.7% to 6.9%, ROA of 2.3% to 2.4% and an ROE of 9.5% to 10% in FY ’25. The preliminary outlook for FY ’26 projects healthy 18% to 20% AUM growth, 4.2% to 4.5% ROA and 17% to 9% ROE. We shall come up with a detailed FY ’26 guidance in May along with our FY ’25 financial performance.
We thank you for your time, interest and continued support. We look-forward to addressing your queries as we open the forum for questions-and-answers. Thank you.
Questions and Answers:
Operator
Operator: Thank you. We will now begin with the question-and-answer session. [Operator Instructions] The first question is from the line of Shreepal Doshi from Equirus. Please go-ahead.
Shreepal Doshi
Hi, sir. Good evening and thank you for giving me the opportunity. Sir, my question was firstly on this accelerated write-off during the quarter. So what was exactly the profile of these customers in terms of there being more than 2 lakh ticket size or they being credit plus 3, credit plus four, if you could just give some color on that.
Ganesh Narayanan
Sorry, Shreepal, this is more based on the repayment profile because these customers are already more than 1H days and there is no repayment coming from them achieved from 90 days. So that is where we thought it to write-off. We have not gone through that kind of detail, which we can analyst and share you privately on average.
Shreepal Doshi
Got it. Okay. Sir, second question was on ex-bucket collection efficiency trend from September to Jan ’25, if you could provide, you know, that would be really helpful.
Ganesh Narayanan
For the month of December, it is 99.2% actually. So I think it’s more relevant is what is latest, which will continue and we expect generally also continue in the same level. And as of now, it is equal to 99.2% level. November and December I’ll tell you, November and December it was around 98.8% and 98.7% between October and November.
Shreepal Doshi
Okay. October and November.
Ganesh Narayanan
And for the month of December 99.2%, generally experienced similar performance.
Shreepal Doshi
Got it.
Udaya Kumar Hebbar
It’s available in your presentation actually in the slide number 6.
Ganesh Narayanan
Six, it’s available. It’s March 15, but I think more or less you can see that because already available that I actually expected, right?
Shreepal Doshi
Right, right, right. Got it. And sir, one last question was on the industry side. So with Garden 2.0 being implemented from April and while we are — while we are seeing positive trends on asset quality side and also on the disbursement trend that as highlighted in one of your slides, in Jan, but how do you see things shaping up for us and for industry in FY ’26 in terms of trends on growth as well as on sustainable growth rather? Yes.
Ganesh Narayanan
So maybe I will be able to give trend for us actually, the industry because we need to see exactly for the industry after getting more balance sheets and publications by others. So for us, we are clearly seeing visible improvement. Two, for new customers, largely, we already implemented that. We feel that it’s very important for new customers, though it is deferred to April 1st.
And also we put a trend there in our presentation that even if it is implemented from 1st April, the implication is quite low because that set of cohort already 84% are paying and we — our internal assessment clearly show that we’ll be able to retain more than 80% of customers in that bucket also.
Shreepal Doshi
All right. So growth — I mean, I know you highlighted that the growth percentage guidance would be given later on, but would — will it be like structurally coming off at closer to 15% or would it — or there is a possibility of even better trends on the growth front.
Ganesh Narayanan
No, I think industry definitely difficult to say right now because it depends on how long it will go to. We have actually estimated, if you see the slide number, which we talked about the — as our guidance, we said 18% to 20% growth is estimated primely by us actually for the next FY ’25, ’26. And for current year, we are talking about 7% to 8% growth.
Shreepal Doshi
Got it, sir, got it. Got it, sir. Thank you so much. I’ll come in the queue, sir, no more questions. Thank you.
Ganesh Narayanan
Thank you.
Shreepal Doshi
Good luck for the next quarter.
Operator
Thank you. The next question is from the line of Nithu Dharakanth [Phonetic] from MFO. Please go ahead. Nitu, please go-ahead and unmute your handset in case if you in case if you are on mute.
Nithu Dharakanth
Hello, can you hear me?
Operator
Yes. Please go ahead.
Ganesh Narayanan
Yeah, we can. Thank you.
Nithu Dharakanth
Yeah, yeah. Yeah. So yeah, I — Mr. Ganesh, I didn’t get the presentation. So maybe some of my questions is because I don’t have a physical — not able to see the PPT. But I’m just curious, we see the trend of delinquencies across the industry, but when do — when can we expect a normal figures coming in, maybe like what the Q1 of FY next year or it might take more than that or what is the — what is the yeah.
Ganesh Narayanan
So I think I think we did that initial remark. I think between Q4 this year and Q1, that mean next year, between that we should be getting into a normal zone to.
Nithu Dharakanth
Okay. And just because I don’t have a PPT, what is your — what is the loan portfolio size right now? Have you seen a decrease or an increase from last quarter?
Operator
Ladies and gentlemen, the management line has been disconnected. Please stay online while I get them reconnected. Thank you. Ladies and gentlemen, we now have the management on the call. Please go-ahead sir.
Ganesh Narayanan
We were able to hear first question. Was there any follow-up question to that?
Nithu Dharakanth
Sir, I was just asking what is the loan portfolio size now compared to last quarter and I heard that you are seeing a positive trend. So I’m expecting it to grow the next few quarters, but right now, I don’t have the figures for the — for this quarter.
Ganesh Narayanan
Okay. Okay. So as of December, the AUM of the company stood at INR24,810. As of January 20th, it is at INR25,125 crores.
Nithu Dharakanth
Okay.
Ganesh Narayanan
So year-on-year, we’ve grown. Quarter-on-quarter we have degrown because of accelerated write-off.
Nithu Dharakanth
Okay. Yeah, yes, sir, that’s it.
Ganesh Narayanan
Thank you.
Operator
Thank you. The next question is from the line of Shreya Shivani from CLSA. Please go ahead.
Shreya Shivani
Hi, thanks for the opportunity. Can you hear me? Hello?
Ganesh Narayanan
Yes.
Shreya Shivani
Yeah, okay. Thank you for the opportunity. Sir, my question is more around the business operations on the field. We had heard about loan officer attrition being high in the — across MFI players and probably that number is north of 50% for the industry. Where would we stand? Can you help us understand what are the key concerns the loan officers have currently.
And we’d also picked-up from some industry interaction that there is a peculiar case in the MFI industry that many of the loan officers who quit their jobs in the past couple of months, they actually quit and never — and did not join any other formal sector. So can you help us understand what’s exactly going on at the branch level amongst the loan officers and at the operational level, not so much to do with what’s happening with the customers over here? That’s my question.
Ganesh Narayanan
Normally experience of elevated stress, the attrition does moderately go up, same for us. But however, for us differently, during this cycle, we’ve got roughly around 3,000 employees requesting to with. So I think we will be able to manage even if the attrition goes up slightly, but right now it’s not a big challenge for us.
Shreya Shivani
Is your attrition rate higher than 50% or lower than at 50%? Is there some number you can help us with?
Ganesh Narayanan
It is lower than 50%.
Shreya Shivani
It is lower than 50%, right. And sir, sir, this is not just specifically about you, but if you could just help us understand, yes, in times of stress, the loan offices do exit, but is there a trend where they exit and they do not take-up jobs in the formal market because we picked-up this in some of our conversation with some other industry experts. So is there a…
Ganesh Narayanan
It’s a combination — yeah, it’s a combination, some of them do, some of them don’t, right? So it can be probably equal in numbers. A lot of young guys who join, young guys and girls who join test the waters and if it doesn’t suit them, they leave the industry. And if it doesn’t suit the automation, they hold some of the companies.
Shreya Shivani
Got it. And sir, will the — in times of stress, does the attrition rate pick-up more in loan officers who have joined within the past one year or with more than two years or three years or was there a change in the way hiring was done that did you pick-up — did the industry hire people with low expertise or something like that? Had something changed in the last two years that led to much worse behavior and attrition trends currently or this is just normal trend that has gone on…
Ganesh Narayanan
It is a normal phenomenon under stress. Like I said, because a lot of pressure doesn’t come in, they will not be able to kind of handle the situation. But once employee normally costs six months or one year, they don’t have all these issues.
Shreya Shivani
Got it. Got it. And sir, my last question, just one follow-up over here. Have we changed any requirements in our hiring process for these loan officers? Have we tweaked it upside or downside?
Ganesh Narayanan
No. So we — you would know that we always hire only freshers and we stick to our clarity. And there is no new process.
Shreya Shivani
Got it. Got it. This is useful. Thank you so much, sir.
Operator
Thank you. The next question is from the line of Sanket Chheda from DAM Capital. Please go ahead.
Sanket Chheda
Yeah, hi, sir. Very good evening. So sir, my question was on our guidance. Particularly this year, we have been stretched on our credit cost guidance as we move quarter after quarter. And now as there was earlier question that from April, the Guard 2 will be in the effect and we have a decent share in terms of excess plus 3, 3 plus and 4 plus.
So what makes us so confident it to give this guidance of 18% to 20% growth plus ROEs also almost in the range of normalized levels and ROEs, while it’s been a turbulent last few months, November was just the peak. After that, it’s just one month, one and a half months that we have seen some improvement, but we have yet to solidify those trends. So what gives us that confidence to be so early in terms of guiding, say, mostly a normal life year, which is FY ’26.
Ganesh Narayanan
Right. So if you look at our earlier guidance about peaking out and how we will normalize. We are more or less there. We’ve got a four-week delay. But otherwise, we are already seeing that pattern emerge both in December as well as January, and we are confident that we should sustain it during the year, right? And like we shared earlier, all our internal analysis, we’ve done a full-year of our customers, etc.
This is our internal analysis, it gives us enough confidence that the next year growth also irrespective of the new coming in. We should be able to meet it and we have our strategies around it, Krishan.
Udaya Kumar Hebbar
Sanket, I’ll add here. So, see, one thing is that if you see always a majority of our growth has come from customer retention. Historically, 60% growth has been from retention of customers. So as we have shared data, we have a fair visibility on retaining the customer cohorts who have, say, more than three or four loans because a majority, more than 80% of those customers have been paid. So the fact as a result of that, there has been a normative deleveraging which has happened over the last six months and which will continue to happen over next three to four months as well.
So in a normative fashion, they will become eligible to avail future looks. So that’s where it gives us visibility to retain our customers. And second is the addition of new customers. So like in month of December, we have added 70,000 customers, the current run-rate in Jan suggests that we’ll cross 80,000. And in a normal period, we have been typically adding around 1 lakh customers a month. So adding the lakh customers a month-in next year should be achievable for us, which will give us a high single-digit growth in borrower base and overall microfinance portfolio will be maybe around 15% 16% and on-top of it, we will also be getting growth from a retail finance, which has been demonstrating healthy growth.
So like as you see over last one year, retail finance has grown from 2% to 5% and largely, it is behaving very well from the asset quality point-of-view as well. And it is a step towards retaining our high vintage customers. So a combination of all these factors gives us the confidence to deliver that growth in the next year?
Sanket Chheda
And in our ROA guidance, what have we assumed in terms of the credit cost on?
Ganesh Narayanan
So Sanket, like if you see our guidance this year, we had earlier guided around 5%, now we have revised it to 6.7% to 6.9%. So basically the 1.2% to 1.4% delta, it is on account of a month of delay in the improvement of the — I mean the reversal in the delinquency cycle. That’s where 1% has added to this year’s credit cost. And now through the — as we said, we are going to take accelerated write-off over Q3, Q4 and Q1.
So that will help us to absorb more than 80% of the current year’s impact in the current year itself. So, from that perspective, maybe in a normative year, if our credit cost is around, say, 2, 2.5, on-top of it, maybe another 75 to 100 bps might get added into the next financial year. So that’s where for next financial year, we — as of now, the estimation is we should have a credit cost of 3, 3.5, which would give us a ROA of 4.2 to 4.5 with actually from a ROA point-of-view, the current year, our ROA will be less by 3%, 4% to 3% ROA he will take this year and 1% ROA heat will take next year. So net-net, overall, the delta of ROA to us because of this event in both years together it’s only 4%. 3% this year, that means we will be delivering around 2.5% to almost 4% to 5%. Next year we will be able to deliver ROA is about 4.5%.
Sanket Chheda
Sure, sir. Those were my questions.
Operator
Thank you. The next question is from the line of Rajiv Mehta from YES Securities. Please go-ahead.
Rajiv Mehta
Yeah, hi, sir. Good evening. Sir, my first question is, sir, while the new car addition is now lessening, any improvement is also seen in resolutions across SMO buckets? Can you comment on that? Is the NPL recoveries also improving along which the new car getting less added, are you seeing improvements there also in the bucket resolutions and NPAs?
And one more thing, sorry, please complete yeah.
Udaya Kumar Hebbar
Maybe I’ll respond first. I’m actually have a question, Rajiv. See, I think it’s an improvement in both phase. One is the reduction in new power accrual. Second is the improvement in the forward. Powerward is actually reducing and the increase in the momentum. So all three are combination actually, Rajiv.
Rajiv Mehta
Got it.
Udaya Kumar Hebbar
You see about say two bucket already in a partly payment stage. And the reduction is already now and rich has the X bucket, the collection is more than 99% now.
Rajiv Mehta
So sir, what do you attribute this to? I mean this improvement in collection across buckets because as I see you haven’t added employee or collection team like so many peers and because your employee base is actually flat. So what do you attribute this improvement in collections to? Is it attributed to any improvement in-center meeting attendance, better customer reach-out and how have you done it?
Udaya Kumar Hebbar
No, I think we anticipate early also, it is more of a transient nature. And I think we estimated that this will pick out and start coming down the new part. I think it happened in October — from November. Seven days, we are also able to deploy more people, experienced people in the pockets of collections to work on that. Then the underwriting qualities change for at least new customers and new disbursements.
So all these are a combination of the things. And then we didn’t have so much of attrition also. If you compare to attrition, it is not very large deviation from the normal. That also helped us. All these together in a combination effort, I think that where the customer who are defaulting largely were all the defaulted. I think there’s no more new customer defaulting, very less new customer. That also is a trend we are seeing now.
So overall, there is a good improvement in terms of both the sides, improvement in terms of collection, improvement in terms of disbursement, improvement in terms of lesser forwarding, all these are happening together.
Ganesh Narayanan
Also in times of such, all our — all our controlling also support us with collection disruption.
Rajiv Mehta
Okay, okay, okay, okay. And any revision in lending rates that we are planning,
Udaya Kumar Hebbar
Sorry, as you the head, so I also wanted to add, Rajiv, as a demonstration to the field team, so almost all the employees in the management space. And there top management has adopted zones. And all of us have traveled extensively over the last few months, including power customer selection more towards the demonstration to the vehicles, right?
So everybody is in the front. So I think the biggest difference in such scenarios may be your team supervisors, your seniors are getting involved in solving the problem. And like I said, we also have an additional workforce with very-high number of control teams. So they also contribute in such times of stress to support the field teams to come back to normalcy.
And you would know about our people’s strategy, how we play on hiring only pressures and retaining them. A lot of our seniors have seen multiple cycles, right? So they also know to know exactly how to navigate the scenarios. It takes some patience and hard work, but it’s something that we have done well so-far.
Rajiv Mehta
Just one last thing, any revision in lending rates that we are evaluating in the light of increased credit cost and maybe even opex. Because when I look at your NIM guidance for the whole year, it implies that in Q4, your NIM has to improve by 30 40 basis-points over Q3. So what will drive this NIM improvement? Because you will still have higher interest reversals in this quarter. So what will cover-up for it? Have we taken any rate hikes?
Udaya Kumar Hebbar
Yeah. So Rajiv, our pricing policy is very clear and based on certain databased actually. So based on the variation whether in opex cost or the credit cost or the borrowing cost. So it will change to some extent every quarter being reviewed. I think there is a small review happened in Q3 where certain basis-points the change was there. Similarly, as and when there is a change, every quarter there will be changed. So there may be small variation because of that. But the — because of the higher interest reversal, the NIM is actually moderated back to same level.
Ganesh Narayanan
And to a certain extent, the buying policy does not change much because it’s a long-term average that you take. You take a few quarters average and keep repricing as and when. So there is a Board approved policy for this. And every quarter, if the credit cost is for the next four to eight quarters, then it will gradually get back. So right now, we don’t see a big movement in pricing, but we should come back to normal sequent.
Rajiv Mehta
Got it. Thank you and best of sir.
Operator
Thank you. The next question is from the line of Renish Bhuva from ICICI Securities. Please go ahead.
Renish Bhuva
Yeah, hi. Hi, sir. Thanks for the opportunity. Sir, just two questions from my side. One on this bar 15 plus accretion. So when we look at the state-wise numbers, of course, there is an improvement across states except Tamil Nadu. And when we look at the Karnatak specifically, though there is an improvement in Jan, but there are lot of news flows which sort of keeps on coming over last month or so, wherein some district some pockets, there is some external events are happening. So, how confident we are that the kind of improvement we have seen in maybe over the last two months you know from a peak of 1%, we are now down to 60 basis-point that will sustain? That’s my question number-one.
Ganesh Narayanan
Yeah, I think you’re right, there are some negative news around microfinance in. But this was actually happening from last two months from was in and districts. There was some impact we saw in the last month there also. That despite that, we are actually able to show better performance in Karnataka. So the recently there are more news in the media, a lot of news in the recent days. There have been few local third-party interventions, particularly our organization, Ram Nagar, districts.
Our members and industry bodies fully addressed and appreciated to the administration of respective districts as well as the government of Karnataka on the governance of microfinance, practices core, regular entities like RBI and SROs governing these REs. So these are to them and how these are handled well. Based on various publications, I think the of Karnatak also called a meeting tomorrow with some stakeholders, including the — was including members and including the RBI is a lot of them transport discussion actually.
I think this our platform to discuss the role of institutions, which contributed to the state economy, how the are actually running with the practicing of third-parties court, the regulations and the governance and the RB and sort of suffer to explain what they are supporting and handling. I think this will help us to build a strong connect as far as you know, this meeting will be — will be our meeting will be more productive and step forward for us.
I think the situation is not that much efficient good on-the-ground, there is no such issue, corrections, everything is going on smoothly, no problem. But there are some news, particularly what we observed is from a non-regulated entry. There are — this is one-off difficult to identify and inform, but wherever further reinforming the police also, I think we will be able to highlight these issues to the administration and the government tomorrow. So we definitely believe that this will be able to step forward for getting resolved each other.
Renish Bhuva
So at this point in time, I mean, is it fair to assume that you guys don’t foresee any risk to the sort of improvement what you are expecting in Karnatak.
Udaya Kumar Hebbar
Now we don’t see actually even if you see worst scenario in the even October norm the ex-bucket collection is more than 98.5% right. So right now it is almost 99.4% kind of thing. So therefore, we do not see any major in.
Renish Bhuva
Got it. And sir, again, second question is related to that in Tamil Nadu, though there has been an improvement in December, but then again there is a very, very sharp deterioration in Jan. Of course, we did mention that these are the transitory and many things should improve in Feb. But is there any lead indicators in place wherein we’ll sort of we are expecting things to bounce-back in Feb.
Udaya Kumar Hebbar
Actually Tamil Nadu, again, it is more of a lag impact of December months, rain and cyclone. There’s a small — a small increase in the par 15 because par zero still it is normal right now. Par 15 because a lag impact, but most of these customers also participating to pay all four is — all four is a previous. That is why it’s still there. So therefore, we don’t see some major issues in the a temporary, maybe this month-by month-end, most of things will sort out. So therefore, we don’t see too much of issues in coming.
Renish Bhuva
Got it. And sir, my last question again on the guidance side. So now sort of when we look at our FY ’25 performance versus the guidance, you know a couple of times we have been forced to change our guidance. Of course, I do understand because of the on-ground situation wherein industry is so dynamic you know every two months, things might change. And again, hence, you know what sort of confidence you guys have that whatever guidance we are sharing for FY ’26 that will hold to?
Udaya Kumar Hebbar
Yeah, this is an extraordinary three years,. Otherwise probably chances to really change the guidance actually. But it’s important to inform you upfront about what we can do is most important. Actually that’s what we are doing now also. If you see that…
Operator
Ladies and gentlemen, the management has got disconnected. I would request you all to stay online while I reconnect with the management. Thank you ladies and gentlemen, we have the management back on the line, so we may continue.
Renish Bhuva
Yeah.
Udaya Kumar Hebbar
Sorry, yes, Renesh. When we compare to the revised guidelines, we are actually up there only. Even we are saying that we are achieving between seven to despite we are taking the write-offs — extraordinary write-off. Therefore, we are actually not raising the guidance actually.
While the changing guidance is a kind of credit cost, it’s again because of the extraordinary write-off we took, plus the smart delay in our estimation. We estimated to be peaked out in September, October, but unfortunately to now — sorry, in September, delayed one month. That us about 100 bps additional cost. Otherwise, they are also there in the guidance, that’s not too much change the guidance.
And for the next year guidance, we have calculated carefully. It’s the preliminary estimation, but largely we should be there. So that’s what we estimate and internal confidence we have against that. But definitely we’ll come back to the full guidance in the month of May after our annual performance.
Renish Bhuva
Got it. Maybe let me put it this way. So what are the risks which can lead to sort of we revising this guidance or we revisiting this guidance? I mean, internally, do you foresee any risk to this guidance or maybe the parameters which you attract very closely? Of course, collection is one number, but anything apart from this in terms of, let’s say, the district which are in stress currently because of external events or maybe some particular event happening in some states, et-cetera? I mean what are the key things which you guys would be watching very carefully to ensure that guidance remains.
Udaya Kumar Hebbar
So I think we are clearly seeing the improvement is visible for last — I can say two months from mid now to almost mid-January launch. We have seen the change in terms of a reversal of trend in terms of delinquency, in terms of disbursement and in terms of new customer addition, we’re able to see all the unless drastic change in this trend, no that. Otherwise, we don’t see any other reason for failure in this guidance.
Renish Bhuva
Got it. Got it. Okay. That’s it from my side, sir. Thank you and best of the teams.
Operator
Thank you. The next question is from the line of Bhavik Dave from Nippon Mutual Funds. Please go ahead.
Bhavik Dave
Yeah, hi. Sir, am I audible?
Udaya Kumar Hebbar
Yes. Hi.
Bhavik Dave
Hi. Sir, just a couple of points, right. One is again on the guidance bit, we’ve missed our guidance like two, three quarters in a row. I think it would be good to maybe wait out for the end-of-the year before giving guidance on growth because my question comes back to growth, right? And when I look at your numbers, we’ve been adding 1,50,000 customers per quarter. You mentioned that you will add 1 lakh per month.
And even if we do that and when I do the math, the 15% to 20% growth seems to be a bit of a stretch. And in that context, it will be great if you could just maybe give us a sense that why will customers after the three guardrails stick to us versus going to someone else who might give a higher loan, considering the customer segment we’ve seen has behaved very similarly for all lenders, right? It’s not that customers are paid ex-lender and not like default into the Y. Unfortunately, over-leveraged borrowers have default — behaved in a similar way.
And second is on the retail finance as well, we’ve majority mined our existing customers and given upgraded them to retail financing. So a lot — large part of our customers also be upgraded in that sense, right, the 70%, 80% of the customers that stay back after this washout. It seems that the customer that we’ll be able to lend in the existing format and also the new customer addition seems to be a bit of a stretch is my number that I’m working around with.
So if you could just like explain us how this 15% to 20% growth will come through because I’m a little — I’m unable to maybe do the math in terms of the customer and the ticket size that we are working with. Thank you.
Udaya Kumar Hebbar
I think broadly what we’ve guided, the growth will come from both retail and microfinance, right? So we’ve always been saying that as we grow bigger and bigger, the growth rate of microfinance will slow-down. You’ve already seen that our sale of retail has moved from 2% to 5%. So with every year moving by, the contribution of retail will continue to grow. And again, we always that microfinance will be an entry point for the customers and only a certain profile of customers will be able to upgrade, not necessarily that everybody will move towards retail.
People will have to have certain demonstrated history, certain amount of cash-flow to demand for them to move towards retail, right? So I think there is enough room in whichever markets we are. If you look at any of our normal markets, we are still very, very small. And I think there is enough room for us to grow both in microfinance and retail, but increasingly the growth in microfinance will take a step-down and retail will catch-up. So for the combination, we are looking at delivering this kind of growth.
Bhavik Dave
And also, sir, when I look at your Bihar Par zero, right, I think that outside the three, four strong states of ours, our performance has been quite poor because we’ve heard other lenders talking about we are recovering quite well for them. In that context, is — how has our experience been both in microfinance and retail when it comes to the non-core geographies, like in a sense, Karnataka, Maharashtra, seems to be our strong point. Apart from that, how has our experience been in terms of retail and MFI in this cycle? Has it been far worse or how are you thinking about those on those lines?
Udaya Kumar Hebbar
Right. So today we do — we operate retail only your core geographies, which is, Karnataka, Maharashtra and MD. And we are not there in other geographies because our strategy around retail is to bring in customers, season them to a certain extent and then offer retail finance. So probably we will take a few more years to reach our non-core geographies. Once we become a certain size in each of these geographies is when we will roll our retail finance strategy. With respect to our retail finance portfolio, it has been absolutely good even in the first times of stress, we are going through a very-high credit cycle. However, the retail finance book has held really good asset quality. I think 30 plus as of December, even for our unsecured graduated business loans is in the range of 70 basis-points. This is…
Bhavik Dave
Thank you. Sure, because unfortunately, sir, what we’ve seen is most of these MFI customers have other retail loans and that’s what is causing the as well. We are just like other industry, we are just looking at maybe borrowers who have three or four lenders to them, but other than that, they have other retail loans and that — that cohort has done even worse than of our loans. So that’s the reason I’m trying to maybe drill down a little more.
And last question is, sir, or not a question, but just to understand why did…
Udaya Kumar Hebbar
One comment on your — sorry, one comment on your last statement. So even in our presentation, we highlighted in even the numbers that in our case, while it could be some numbers published by different agencies, our case, what we see is that there is no difference in credit cost between customers who are only microfinance customers as well as microfinance customers will retain overlap based on the so in microfinance customer’s case, the bar is around 6% and in this case, we have created around — I mean, sorry, 7% and 6%.
Ganesh Narayanan
You can refer to Slide 11 for this on that.
Udaya Kumar Hebbar
And also in all our retail finance journeys, we have consistently. We are not in a group. We will test it. We piloted each of the businesses for enough time, tested results against these pilots and only we scaled-up. So there is clear strategy around whom we will offer retail, be it secured or unsecured. And what is the market pace? What is the base at which we want to grow? So it will be a natural progression over a period of time. And we are very mindful about keeping this quality intact.
Bhavik Dave
Sure. All right. Thank you.
Operator
Thank you. The next question is from the line of Arjun Bhatia from Bowhead. Please go-ahead.
Arjun Bhatia
So thank you for giving us the opportunity. Can you hear us?
Ganesh Narayanan
Yes, sir. We can hear you.
Arjun Bhatia
Thank you for disclosures. I just wanted to understand, you know, do you also get data for…
Operator
Interrupt. Arjun, can you come in? Arjun, can you please come a little closer to the microphone?
Arjun Bhatia
Yeah, just one second. Am I audible now?
Udaya Kumar Hebbar
Yes. Much better.
Arjun Bhatia
So sir, we wanted to understand, do you — by any chance get disclosures about loan prepayment schedules of your existing customers to other microfinance companies as well. Schedules like you know, like if you have a c you know a customer let’s say you know he’s got loans with three other people or four other people, do they disclose with you the repayment schedules like you know, when is a repayment when is the loan getting foreclosed from the other..
Udaya Kumar Hebbar
It is available in the view? It is available in the viewer audibles.
Arjun Bhatia
So you have entire access to the data?
Udaya Kumar Hebbar
Yes. So we may not have the entire repayment schedule, but we will know when was the loan disbursed and when is the closure.
Arjun Bhatia
Okay. And have you used that modeling somewhere in your analysis?
Udaya Kumar Hebbar
Yes, you have to use it for even calculation right. So the whole fundament new regulations is that you have to calculate their overall liability, what is the repayments they make as a family every month and then they out of it.
Arjun Bhatia
Understood. So broadly what you’re saying is that you have mapped already which customer is going to — loan is getting foreclosed and therefore, how many loans will get foreclosed at your end versus others? What I understand from guardrail 1 and 2 is that loan has to be repaid, first, that loan cannot be renewed, you know, if he is more than five, then it has to come down to four. And in the second guardrail if it’s four, it has to come down to three and so forth. Is my understanding very true?
Udaya Kumar Hebbar
Very true. Would you like to join a strategy team?
Arjun Bhatia
So in that — so in that sense, sir, I wanted to understand that how do you get the comfort that is paying you now, you know, after the tour is his — he gets choked in terms of further supply, you know he will end-up paying to you because he’s not going to get a repayment. And just wanted to get some perspective on that. And whether — and you have modeled all that in your forecast for growth, all of these like whole get first at your end versus the others because foreclosed first, the customer can’t come again.
Udaya Kumar Hebbar
Yes. So we’ve taken everything into our model and that is also reason for our confidence. And again, taking a loan is a customer’s choice. Not everybody closing the loan asks for a ticket loan. So that is why you need to continuously run for new customer acquisition also, right? So it takes care of many things.
Arjun Bhatia
Understood. Secondly, sir, I wanted to understand, based on discussions other players, we are told that there is a possibility of new regulations on capping the NIMs directly and directly through various ways. Additional top-up loans, one, one could give — you know, like we understand you give some top-up loans. What are your thoughts on that? And do you expect any further regulations at some point of time in next six months, one year which may lead to further consolidation in the industry? Thank you.
Udaya Kumar Hebbar
Right now, we are not bringing to any such information. I don’t think we should speak to any board.
Arjun Bhatia
Great. Thank you so much for clarifying. And thank you once again for excellent disclosures.
Ganesh Narayanan
Thank you.
Operator
Thank you. The next question is from the line of Abhijit Tibrewal from Motilal Oswal. Please go-ahead.
Abhijit Tibrewal
Yeah. Thank you and good evening, everyone. So the first thing that I wanted to understand is what are the covenants that we have in-place from our lenders and what is the GNP or GST threshold in our covenants and what are the thresholds in profitability, quarterly profitability?
Nilesh Dalvi
Hi, Abhijit, Nilesh here. So there is a wide range of covenants. We have more than 70 lenders and covenant levels will obviously keep varying from lender to lenders. So we have a good amount of comfort that usually typically in the industry, you will see the GNBAs, if they cross, say 4% to 5%, then there can be some kind of a challenge. So as of now we have no such issues or…
Abhijit Tibrewal
Got it. So I mean, basically whatever thresholds are there on NPH AS 3, we are at least, I mean, much lower than whatever those thresholds are, is it?
Nilesh Dalvi
Yes, yes. As of now, we are not facing any issues. That’s the reason why the access to fund deal is continued for us. And as we reported even in third quarter, we have drawn close to INR4,000 crore from more than 17 institutions. And in the — our borrowing cost, there has not been any change. Our marginal borrowing cost continues to stay at 9.4%. And at the same time, we are — I mean, there is a continued confidence what we are able to maintain with our lending.
Abhijit Tibrewal
Got it. And, also remind us while we took accelerated write-offs in this quarter and we spoke about taking some accelerated write-offs in the next quarter as well. What is our usual write-off policy? Just trying to understand this accretion that we are seeing in GS3 right now at what point in time they start getting written-off.
Nilesh Dalvi
So in our normal policy, we write-off after 270 days and during even COVID, we had taken some accelerated write-offs. Similarly, now we’ve taken write-off for two years, we’ve not been paying like Unai for the last three months at 190 days. 180 days plus.
Ganesh Narayanan
It’s actually less than 1% of portfolio we took it off, which are with your number for three-plus three months and which are already crossed for.
Abhijit Tibrewal
Got it. Got it. And sir, lastly, just trying to understand, I mean, while we did speak about Karnataka, whatever is happening there and you also spoke about that despite all that, we’ve managed a good collection efficiency. Let’s say, when you look at your ex-bucket collection efficiency on a national basis and when you look at Karnataka, how lower is Karnataka from the national average?
Udaya Kumar Hebbar
It is by the economy is better than national average.
Nilesh Dalvi
Yeah. So Abhijit, if you see Karnataka, it’s around 20 bps better than higher overall.
Abhijit Tibrewal
Got it. Got it. And just one last question then. I mean, of all the collections that are happening, I mean what proportion is kind of getting collected in a center meeting and what collection — what portion of collections are happening through door knocks?
Udaya Kumar Hebbar
See, predominantly it will continue to happen in center locations. Sometimes what happens if the field officer is delayed for the second meeting and the customers don’t like. So there they won’t collect from the Kindra leaders. And some of them which they don’t pay. That is when we go for loan-to-loan collections, but that is supported, like I said, by a massive team including controlled fees for other than the loans. Probably as an indication, will be the same.
Abhijit Tibrewal
Got it. Got it. Great. Thank you so much. This is useful and I wish you and your team very best. Thanks so much.
Udaya Kumar Hebbar
Thank you.
Operator
Thank you. The next question is from the line of Parth from Nomura. Please go ahead.
Parth Shah
Good evening, everyone, and sir, thank you for taking the question. My question is a bit broad-based. So sir, you mentioned that the delinquency trends are transitory in nature and we have been seeing reversing trends since November or December onwards. So sir, what has changed on-ground that makes you confident that this is just transitory and in nature and the reversal trends will sustain going ahead?
And sir, another question is that on the new borrower addition rates, we have seen a significant uptick in December ’24. So, sir, what has changed on your underwriting process or your onboarding process which will gain — give us some confidence on the fact that…
Udaya Kumar Hebbar
Sorry, can you come close-up your mic and repeat your question again, please?
Parth Shah
Sorry, am I audible now?
Udaya Kumar Hebbar
Much better.
Parth Shah
Yeah. So sir, on the delinquency trends, you mentioned that they are transitory in nature and you have been seeing reversing trends since November and December, mid-November. So on this, sir, what gives — what has changed on-ground that gives you confidence that this will stay at — this is just transitory in nature and the incremental reversals on the delinquencies would sustain going ahead?
And sir, on the next part, the new borrower addition rate has seen a significant uptick during the month. So sir, what has changed on your onboarding processes or your underwriting processes, which gives us the confidence that these borrowers would be better in nature than the previous borrowers.
Udaya Kumar Hebbar
See, on the first question, I think the whole percentage demonstrating with sufficient data as to why we think this is sustainable. However, we’ll have to see how it goes for Jan-March, right? So we are reasonably confident we picked out. We are showing as on-date whatever is happening in December and Jan. We’ve also demonstrated that overall, we are able to see leverage coming down. And we’ve also demonstrated in our presentation how the previous cycles were and in how much time we’ve come back, right? So you would see in our presentation what we did in COVID, what we did in on. So overall, roughly a 3/4 disruption is what happens for us to come back to normalcy. And we believe it is similar in nature now that we’ve started showing performance in the last two months.
Parth Shah
Okay. Okay. Thank you. That hits. Okay. And…
Udaya Kumar Hebbar
New customer additions, we are little mindful. We have tightened, like say, in the car rails, we have been already doing motor ideal validations. The field verification processes have been strengthened in geographies where we are seeing certain higher delinquency, we moved house verification one-level up. We’ve also used quality-control teams to vet in customers joining us new in all geographies where we have elevated credit cost. It’s a continuous process.
Yeah. And in some places, we’ve also made it string wins and where we limited the overall maximum outstanding to INR150,000 and also the maximum number of lenders to be not more than two and one in different locations. So based on that district behavior, we follow a district model. Depending on how we stress in each district, we keep moderating our operating procedures.
Ganesh Narayanan
So our business rule engine gives us the flexibility to adopt a differentiated underwriting process at the district level.
Parth Shah
Okay. Okay. I think that is helpful. And just one more question. So I understand Bihar and UP are your non-core geographies, but some of your peers have highlighted some collection efficiency issues in those two segment geographies. And while on the power accretion part, you have shown some improvement in the December and Jan ’25 numbers. So what are you doing differently in Bihar and UP where you have seen better collection efficiencies or improving trends there?
Udaya Kumar Hebbar
Yeah. See, I think overall like you said, different people have different geographies, depending on which district they present, which part of the space they are presenting. However, Bihar also we’ve demonstrated that we significantly come back-in the last two months. So we hope this will continue in the next two months in the quarter also.
Ganesh Narayanan
We just add here so that whatever increase we have seen in July, August, September. As we said earlier, it was kind of an accelerated increase because the underwriting got tighter in the industry. And now because of the deleveraging happening, we see it — I mean, we are of a view that the customers who were not in position to honor their repayments or where — wherever they were not able to handle multiple loans or they were only. Those customers have kind of gone into higher buckets par.
But the other customers, they have continued to repay on a prompt basis. So as we have provided in our presentation, even customers with multiple loans or higher leakage, 80% of those customers have been able to pay us on a prompt basis and overall Bihar and UP, it is around…
Operator
Ladies and gentlemen, the management has got disconnected. Please stay online while I get them connected. Thank you. Ladies and gentlemen, we have the management back with us. Please go-ahead.
Ganesh Narayanan
Yeah, Parth. So UP and Bihar, it’s close to 6%, 6.5% of the overall portfolio. So even there, larger delinquencies kind of have played out in month of October, November, and that is where we are seeing the new delinquency addition rates slowing down at a faster pace in December and Jan. So our approach has been consistent across all the markets, but yes, different markets are behaving or kind of reversing at a different rate. Like if you see in Maharashtra, in Madhya Pradesh, our portfolio quality has been much, much superior to the…
Parth Shah
Got it. This was very helpful. Thank you and this will be great. So best of luck going ahead. Thank you.
Operator
Thank you. The next question is from the line of Kamal Mulchandani from Investec Capital Services. Please go-ahead.
Kamal Mulchandani
Hello, sir. Thank you for the opportunity. Firstly, like if you could just let us know that if you are facing some attrition at the branch manager level as well? And if yes, like what would be that number for us?
Udaya Kumar Hebbar
No, not very different from the earlier time. So we have been range-bound and we remain there.
Kamal Mulchandani
So what is that number?
Udaya Kumar Hebbar
Around 30%?
Kamal Mulchandani
Okay. And this is as usual.
Udaya Kumar Hebbar
Yes.
Ganesh Narayanan
Like normal, there is no extra attrition we saw in this period. We saw little — whatever change is slightly variation only in 711 where we always keep recruiting and having sufficient backup actually. So that manager at attrition is quite stable.
Udaya Kumar Hebbar
And again, branch manager and above because we only do internal promotions, there is always the bench which is ready to become branch manager in case attrition goes out. And also, like I told earlier, because it’s a tough time, people who joined different institutions or have left the credit access has also placed the request to join back. So we roughly have around 2,900 requests to join my credit access.
Kamal Mulchandani
Okay. Got it, sir. Also, I would like to know that what is our net forward flow rate from 1 to 30 and to 31 to 60 bucket? And like and what was it earlier versus the current year.
Udaya Kumar Hebbar
So the flow forward temporarily had increased, I don’t have the numbers yeah. So, yeah, typically in normative times, we have seen that around 50% to 60% of customers in zero to 30 bucket, they do roll-back and the balance goes forward, post which as you see, our provisioning rates, typically we provide 70% in the Stage 3, which means that the roll rates are in that rate and in around that in the normative times. During last four to five months, we had seen the roll forwards were higher by 10% to 15%, but now it is kind of again reverting to the earlier in month of Jan. So we are seeing a reversion in the roll-forward rates.
Kamal Mulchandani
Okay. Got it. And lastly, if you could just help me what were the interest reversals during this quarter and during Q2?
Nilesh Dalvi
In Q2, we had around INR35 crores of reversal and now in Q3, we have around INR75 crore of reversal. So in this around close to INR18 crores is on account of the — sorry, around close to INR25 crore is on account of the write-off. Overall INR376 crore whatever we have written-off and balance INR50 crores is on account of Stage 3 accretion.
Kamal Mulchandani
Okay. Got it. Got it, sir. Thank you so much for this. That said, I don’t have any other questions. All the best.
Ganesh Narayanan
Thank you.
Operator
Thank you. Thank you. The next question is from the line of Ashlesh Sonje from Kotak Securities. Please go-ahead.
Ashlesh Sonje
Hi, team. Good evening. One qualitative question from my side and apologies if you have answered this in some form before because I joined a bit late. Sir, in the past few months, we heard of several lenders narrating unpleasant anecdotes, for example, instances when several lenders were queuing outside the doors of delinquent borrowers to collect their respective installments and that resulting in tensions at the local level. Are those kind of issues now largely behind, largely sorted declining meaningfully?
Udaya Kumar Hebbar
Yeah. See, as we stated a little earlier, our — probably our door-to-door collection is under 2%, right? And I think because we have a weekly model, rural model and we also have a larger understanding of how to navigate such issues? We don’t see much of an issue around this space, the point that you’re making right now.
Ashlesh Sonje
Okay, perfect. Those are all the — that was the only question I had. Thank you.
Operator
Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for the closing comments.
Udaya Kumar Hebbar
Okay. So I take this opportunity to thank all of you for your patience and time in joining this call and for very interesting questions. I hope we’ve answered all your questions. And in case there are any further questions, don’t write to us to reach-out to us. We’ll be happy to clarify them. Thank you so much.
Operator
Thank you. Ladies and gentlemen, on behalf of HDFC Securities, that concludes this conference. Thank you for joining us and you may now disconnect your lines.