Home First Finance Company India Ltd (NSE: HOMEFIRST) Q3 2026 Earnings Call dated Jan. 23, 2026
Corporate Participants:
Sunil Anjana — Home First Finance Company India Ltd
Manoj Viswanathan — Managing Director and Chief Executive Officer
Nutan Gaba Patwari — Chief Financial Officer
Analysts:
Unidentified Participant
Abhijit Tibrewal — Analyst
Sripal Doshi — Analyst
Rajiv Mehta — Analyst
Raghav — Analyst
Aditya Pal — Analyst
Prithviraj Patil — Analyst
Divyansh Gupta — Analyst
Chintan Shah — Analyst
Nidhesh Jain — Analyst
Malik Chaudhary — Analyst
Bunty Chawla — Analyst
Maran — Analyst
Siraj Khan — Analyst
Shubhankar Gupta — Analyst
Ravi Naredi — Analyst
Presentation:
operator
Sam sa. Sam sat. Sat. Foreign. Ladies and gentlemen, good evening and welcome to the Home First Finance Co. India Ltd. Q3FY26 earnings conference call. 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 this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sunil Anjuna, head of treasury and Investor Relations of Home First Finance Co. India Ltd. Thank you.
And over to you sir. Thank you.
Sunil Anjana — Home First Finance Company India Ltd
Sapnali. Good evening ladies and gentlemen. Welcome to Home First Finance Company’s earnings conference call to discuss the financial results for the quarter ended 12-31-2025. We hope you have had the chance to review our investor presentation and press release both of which are available on our website and stock exchanges. As per our practice, we have also uploaded an Excel fact sheet containing historical data on our website for your easy reference from the management we have with us today Mr. Manoj Bheeshpanathan MDN CEO Mr. Nutan Gaba Patwari, CFO. With that I now invite Mr. Manoj Vishwanasan to share his insights on overall performance.
Over to you sir.
Manoj Viswanathan — Managing Director and Chief Executive Officer
Thank you Sunil. Good evening everyone and thank you for joining us today. We are pleased to present the performance for Quarter 3 FY26 which reflects the strong business momentum, robust profitability along along with the stable asset quality and with improving early delinquencies. Let me share the quarter three FY26 highlights. AUM growth remains strong growing at 24.9% year on year and 5.3% quarter on quarter to reach 14,925 crores. In this quarter we added two branches with the latest additions comprising one in Karnataka and one in Madhya Pradesh. We have six to eight branches in the pipeline and at least six branches will be added in quarter four.
Disbursements for the quarter stood at an all time high of 1,318 crores up 10.5% year on year and 2.2% quarter on quarter. Monthly disbursements crossed rupees 500 crores for the first time in December 2025. Our origination yield continues to be healthy at 13.1% with an 83% share of individual housing loans. Asset quality matrices remained healthy and range bound. We continue to focus on early buckets and resolutions. One plus DPD is at 5.3% an improvement of 20 basis points on a quarter on quarter basis. 30 plus DPD remained flat at 3.7% with stage two reducing by 10 basis points gross.
Stage three is at 2%. This has increased by 10 basis points quarter on quarter and we are confident that this will improve going forward as the early delinquencies have shown improvement and overall collection efficiency has also improved. Moving to State specific updates starting with the largest state of Gujarat in quarter one we had flagged off an anticipated impact of tariffs. However, we are pleased to report that Gujarat has successfully overcome this on account of the overall economic vibrancy of the state. We continue to witness strong growth and stable asset quality in Gujarat. In Maharashtra we have successfully re established a strong growth trajectory especially in the larger and more competitive markets of Mumbai and Pune.
This impact can be seen in the strong AUM growth in this state. In Tamil Nadu we faced both tariff related delinquency issues as well as churn in the team. We have made good progress in stabilizing the team and we expect a strong turnaround in the state in FY27. Regarding UP, we have adopted a calibrated approach. We are in the process of setting up a strong team in order to capitalize on the large potential in the state in the coming years. We can expect this state to be a large contributor for us from FY28 onwards. With respect to the other key states, Karnataka is emerging out of the ICATA overhang and has clogged a strong growth this quarter.
Rajasthan, mp, AP and Telangana continue to deliver growth as planned. Technology remains the backbone of our company complemented by a focus on developing in house solutions that drive innovations and operational efficiency. To enhance operational efficiency and reduce cost, we have developed an enterprise grade document management system that enables secure, structured and scalable document management. The system handles high volumes with robust security tracking and safe archival for optimal storage and performance. Digital adoption continues to be strong and a key area of our focus as we grow. 81% of our approvals in quarter three were facilitated via the Account Aggregator framework.
More than 80% of our loans are digitally fulfilled through E agreements and e nudge mandates. 96% of our customers are registered on our mobile app with 85% of the requests now raised digitally. In addition, several AI pilots are in progress and we expect these to deliver results in the coming years. During quarter three we received certification for 70 additional green homes taking the total to 310. The Pradhan Mantri Awas Yojana 2 scheme saw further traction as on date we have received around 4,500 customer applications of these, 103 customers have already received the first tranche of the subsidy with an additional 15 cases approved.
Their subsidy will get credited shortly. We expect the scheme to pick up traction with increase in customer awareness and streamlining of the process. As we move toward FY27, we are positioned to achieve 25% AUM growth driven by enhanced distribution, technology adoption supported by diversified funding and robust risk management. Lastly, I also wanted to address the topic of my continuity at home first. There could be some rumors and speculation on this topic which I want to state are completely baseless. I would like to strongly reiterate that I do not have any plans or intent to move out of home first.
With that, I now hand it over to Nodan to take you through the financials in more detail. Over to you Notan.
Nutan Gaba Patwari — Chief Financial Officer
Thank you Manoj. Thank you for that. Let us start with the key financial metrics. Total interest income for the quarter stood at 429 crores up by 20.5% YoY and 4.8%. QoQ. Portfolio yields held constant at 13.4%. Disbursement yields for the quarter were at 13.1%. With proactive management we were able to contract our cost of borrowing ex co lending by 10 basis points at 8% supporting our ex co lending spread of 5.4%. Net interest margin for the quarter was at 6% up from 5.4% in the previous quarter supported by gearing optimized liquidity position and lower cost of borrowing.
Provisions arising from the implementation of new labor code have been recorded and these one time expenses of 3.3 crores on account of graduating provisions have impacted OPEX and earnings of quarter three FY26 reported cost to income was 32% up by 10 basis points. On a QOQ basis EX D gratuity provision impact it would have been 31%. Reported operating cost to asset was at 2.7% for the quarter ex gratuity provision impact this ratio stands at 2.6 for the quarter. We expect this ratio to remain range bound within 2.6 to 2.7 as we focus on growth and expansion.
Our profit after tax increased to 140 crores up by 44% YoY and 6.3% QoQ, return of assets of 4% and return of equity of 13.7% Ex gratuity provision impact the earnings growth in Q3FY26 has improved by 46.6% YoY and 8.3% QoQ with return on assets of 4.1% and return on equity of 13.9%. We also had a QIP of 1250 crores earlier in April. Pre money adjusted ROE for Q3 stands at 17.1%. Moving to provisions and asset quality credit cost for Q3 stood at 40 basis points. Provision on stage 3 has increased to 22% as on December from 21% in the previous quarter.
We continue to adopt a conservative approach to provisioning maintaining a provision overlay above ECL requirements. As of December 25th our total provision coverage is 40.4%. Moving to balance sheet and capital position. Our funding profile continues to be well diversified and cost effective reflecting our prudent financial management. 57% of the funding comes from public and private sector banks, 16% from NHB, 20% from assignment and co lending and balance from from NCDs, ECB and NBSCs. During Q3 we executed direct assignment transactions of 215 crores. Our disbursement under co lending business increased to 101 crores for Q3 taking co lending book to 585 crores or 3.9% of the total AUM co lending would continue to be an important part of our strategy to strengthen our ability to cater to higher ticket size segments.
We aim to take co learning contribution to 10% of AUM as we scale coming to capital adequacy and liquidity. Our capital adequacy ratio as of December 25 stands at 49% as compared to 48.4% in Q2. This increase in capital adequacy is due to lower cash held in mutual funds. Our net worth stands at 4180 crores up 73.6% yoyo and 4.1% qoq. Book value per share as of December is 402. With that we conclude our opening remarks and are now happy to take your questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may Press Star and 2. Participants, you 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 Abhijit Debrewal from Motilal Oswal Financial Services. Please go ahead.
Abhijit Tibrewal
Good quarter. First of all, thank you so much for kind of reiterating towards the end of your opening remarks. But you don’t have any plans to move out of home. First, I think that is very, very reassuring. And like you said, I mean, we also kind of used to get questions around the continuity and in your plan. So first things first. Thank you so much for that. Now kind of moving to business very, very clearly. I think disbursements are starting to pick up. But I have two questions here. First thing is, I mean, disbursements, while they have improved sequentially, maybe they’re still a share lower than what we were expecting or penciling in.
So what is it that is leading to this? Is it a higher competitive intensity or was it in nature of, I would say some weakness in asset quality that we were seeing until last quarter, which was making us go a little conservative on more businesses and disbursements. If you could explain that. And the other thing is now that, I mean, asset quality looks like stabilizing. Your OnePlus has actually improved sequentially. 30 plus is now stable. And so to that end, are we getting higher confidence to start accelerating the business from here? And we have already put out in the press release that next year we will look to grow at 25% year over year for the fourth quarter at least, what are the internal targets that we are working with?
Manoj Viswanathan
So the target is to end the year at 25% AUM growth. And again for the next year we are given the guidance of 25% AUM growth on. And as you rightly mentioned, yes, last, the first, first half of this year there were certain issues that we were grappling with, you know, because of the environment. And as I mentioned in my detailed, you know, statewide, you know, discussion, you know, there are certain states where we were going through certain issues, etcetera, which are now gradually stabilizing and which is the reason for the, you can say, renewed confidence in disbursal numbers.
And, you know, some of the overhang which was there, you know, because of the MFI delinquency, etcetera, is also now coming to an end. It’s kind of tapering off, as you can see, you know, in the overall market, you know, environment. So these are all the reasons why we are feeling more confident. And we are also seeing that, you know, uptick in numbers internally, in origination numbers, etc. So which will eventually translate into dispersal. So that is the reason we are feeling more confident about the disbursement numbers for quarter four as well as for next year.
operator
Abhijit, have you completed the question?
Abhijit Tibrewal
Yeah, yeah, I was on mute. Thank you so much for bringing that up. I was just saying that this spillover of MFI Stress like you mentioned, at least in affordable is coming to an end. So just trying to understand, in your detail comments you spoke about maybe three, four states where we are seeing things improve. Gujarat, you mentioned the impact of tariffs which was earlier anticipated. I think Gujarat has successfully managed it. Gujarat being one of our top states. So just trying to understand, I mean at least this increase in bounce rates, that doesn’t bother us.
Right. I mean I think that is little bit more of a behavioral problem. Right. Rather than of an asset quality issue.
Manoj Viswanathan
Correct. So we are gradually seeing that, you know, divergence between bounce rates and actual collections. If you see last quarter also the bounce rates were elevated but then the collection was far better than the previous quarter. So to some extent it is becoming more of a behavioral issue where you know, customers have multiple accounts or they end up, you know, missing the payment in one account then they immediately transfer the payment from some other account. So we have been, we have been talking about this for the last couple of years but I think now that is very, it’s coming out very clearly.
And so collection efficiency is, you know, kind of getting disconnected from the bond state itself.
Abhijit Tibrewal
Got it. And lastly Manoj, I mean on asset quality, again, given that you’ve seen some stability in this quarter, you think 4Q again a seasonally strong quarter. And given where we are, you think we can start looking at an improvement in asset quality even in stage three from this quarter onwards?
Manoj Viswanathan
Yes, we should see that in this quarter. Generally quarter four is in any case good. But what gives us more confidence is that we managed to bring down our early stage delinquency also quite substantially this quarter. So that is giving. Whereas if you see the same quarter last year it actually had got elevated. So better collection efficiencies in Q3 is giving us the confidence that, you know, this thing, you know, the stage also should start moving down.
Abhijit Tibrewal
Got it. And have you made any PLR changes in last quarter or effective January?
Manoj Viswanathan
Yes, effective from the 1st of January. Reduced our PLR by 10 basis points and we have passed on that benefit to customers from 1st of January.
Abhijit Tibrewal
Got it. That’s all from my side. Thank you so much for taking on the questions and I wish you and your team the very best.
Manoj Viswanathan
Thank you.
operator
Thank you. The next question is from the line of Sripal Doshi from Equitas. Please go ahead.
Sripal Doshi
Hi sir. Thank you for giving me the opportunity. My question was on the, on the, on the PLR front. So we’ve already taken 10 basis point. But given the competition in the market and I think even the last quarter the BT outrage had increased. So are we, are we planning or. Is there any plan to further take. A rate cut in the quarter or how is that aspect likely to shape up in the next, let’s say three to four months time period.
Manoj Viswanathan
So the PLR is a function of our own borrowing cost so that will work in sequence. So as our borrowing cost comes off we should be able to pass on the reduction to customers. So as of now, because this decision was actually taken middle of last quarter, so hence the board decided that you know, 10 basis points because based on the reduction that we have and we have experienced we have passed on 10 basis points to the customer. If there’s further reduction, yes, the board will decide, you know, how much to pass on in, in the coming quarter.
So the reduction in PLR is more to be basically fair with the company customer. It is not directly intended to, you know, reduce the btout btouts generally happen when there is a huge difference in the rate which the customer is getting compared to what, what they’re experiencing with us. So minor reduction in PLR is not going to really materially impact the BT out rates.
Sripal Doshi
Okay, so then in that case to Nutana, what is the you know, overall cost benefit that we’ve already seen from. The 125 basis point of rate cut. That we have seen at systemic level. And what is it that is remaining?
Nutan Gaba Patwari
So Sripal, I’ll take you back to the overall benchmark LED rates that we have. So repo link rates are about 15%. External benchmark is about 30% in total. So to that extent we’ve got the benefit out of the 125 basis points points in total we would have now gotten the benefit about 40 to 50 basis points. As we all know that the credit deposit ratio of banks are what they are and the MCL of banks are just about starting to come off. So moving forward we should expect a little bit of a reduction, maybe 5 to 10 basis points every quarter for the next two three quarters is what we expect and basis that we will have to go back from to see how the rates are looking like what we are getting and eventually look at the plr.
I would not, I would think that we will not do any more PLRs in this quarter which is quarter four of this year. Anything from here on will be next year only.
Sripal Doshi
Got it? Got it. The other question ma’, am again was on the liability side only. So on the NHB borrowing, what is the sanction pool that we have there. And what is the borrowing rates that. You’Re seeing from that avenue.
Nutan Gaba Patwari
So we got an approval this year of about 900 crores. We’ve actually put that liquidity position slide last quarter and this quarter also in terms of pricing. Pricing remains pretty comparable to the banks. So we are now in that broad region of seven and a half and it’s a good pool of liquidity for us. And we want to expand on that as well as the banks, both.
Sripal Doshi
So has there been a PLO record. At the NHB level as well or not yet?
Nutan Gaba Patwari
Yes, there has been.
Sripal Doshi
Okay. Okay, got it. Thank you, ma’. Am. Thank you so much. And good luck for the next part of. I’ll come in the queue for more questions.
Nutan Gaba Patwari
Yeah. Thank you.
operator
Thank you. The next question is from the line of Rajiv Mehta from yes, securities. Please go ahead.
Rajiv Mehta
Yeah. Hi. Good evening. Congrats on good performance. So my first question is on Tamil Nadu. I think you spoke in the initial. Remarks that the team is in place now. So when you expect the productivity from. The team to come through. And can you also comment about the. Competitive intensity impacting the volume recovery out there? And are you also projecting that in FY27 disbursement in Tamil Nadu would outgrow that of the company?
Manoj Viswanathan
I think the recovery should. It will. Recovery will take probably another two quarters, Rajiv. So probably from quarter two of this year we should expect the turnaround in Tamil Nadu, I mean, the coming year.
Rajiv Mehta
Okay. And Manoj, was there any underwriting changes done across markets because of the difficult macro that we saw? And can such changes be released giving. You better approval rates or helping you in recovering your disbursement volumes in FY27?
Manoj Viswanathan
Not really. So underwriting changes, since it’s a home loan product, generally the impact of your underwriting is visible after maybe 18 to 24 months. So when the. And generally these things become more visible when there is some stress in the economy like what we saw over the last 12 to 18 months. So when we realize that this is likely to happen to a specific cohort of customers, then, you know, generally you do not reverse those changes. I mean, to give you an example of, let us say, you know, customers with, let’s say a certain type of bureau score are going to default in a certain situation.
So then you would not reverse that going forward. I mean, unless there’s something really, really changes in the environment. And these are ongoing changes. And as we keep discovering, let’s say, new cohorts which may be defaulting, it can happen on both sides, positive as well as Negative. So when we realize there are certain cohorts which are behaving well, we kind of double down on those. Certain cohorts which are, which are not doing well, we kind of restrict those profiles. So this is an ongoing process and there is no immediate knee jerk reversal that we are going to carry out.
Rajiv Mehta
Understood. And the last thing is on the origination yield, the origination yield has actually come down by 20 basis points in. Q on Q basis. Now is this largely a function of. We incrementally doing, you know, higher tickets. In our own books as well or. Is it also the thought process that. You know, whatever decline we are seeing in the marginal cost of funds, we are concurrently passing it on the new lake.
Manoj Viswanathan
Yeah, so it is more of the latter. So, you know, because the marginal cost of funds has dropped by about 30, 40 basis points. So that is likely to reflect in, you know, new origination rate as well.
Rajiv Mehta
So broadly our book spreads should kind of stabilize, I mean around 5.2, 5.4. And you would want to kind of. Prioritize growth and push volumes for any.
Manoj Viswanathan
Yeah, we have always maintained that three book spreads. Spreads will be 5 to 520 is what we have always.
Rajiv Mehta
That’s a long term number.
Manoj Viswanathan
Yeah, anything, anything more than that, we will basically follow a fair practice of passing that on to the customer.
Rajiv Mehta
Got it. Thank you so much. Thank you.
operator
Thank you. We have the next question from the line of Raghav from Ambit Capital. Please go ahead.
Raghav
Thanks for the opportunity and congrats on this quarter. I just have two questions. One, I wanted to ask, what will be your disbursement target for FY27? I am estimating somewhere around 64 to 6,500 crores. Is that a fair estimate? That’s about 18% higher versus FY26.
Manoj Viswanathan
So Raghav, we are not giving a specific number for dispersal for next year because there are multiple levers by which we can reach our AEUM growth target. So we are not giving a specific disposal number.
Raghav
But you would have done your budgeting or some sort of numbers. Right. For FY27. So is that a fair estimate of around 6,500 crores for next year or do you think that.
Nutan Gaba Patwari
Yeah, Raghav, when you do the budgeting there are multiple scenarios and multiple scenarios involving a lot of business factors. There could be more than 20 factors contributing to the AUM final growth number. We want to keep those variables flexible and under control. And what we want to guide the market is to AUM number and then deliver that number so that’s how we are thinking.
Raghav
Sure, fair enough. Will reducing the repayment rates, you know, be one of be under consideration? You know, say for example, if you want to deliver a 25% growth on the AUM front, then do you also have some strategies around reducing your repayment rates next year?
Nutan Gaba Patwari
Yes, it will be one of those many variables.
Raghav
Yes, understood. So fair to say that what you’re looking at is probably the FY25 repayment rate, you know, the way that we calculate should be lower compared to FY26. Right. That, that’s a fair assumption to make.
Nutan Gaba Patwari
I can separately run the model discussion with you. But like I said, we want to stick to the AUM guidance of 25%.
Raghav
Understood. And then you know, besides this 10 bit CLR card, I think you partly answered that you any, any further PLR. Cuts will be considered only from next. Quarter onwards, if at all. Right. But, but, but, but do you think that there will be a requirement for you to cut the plr given the comparative intensity in the affordable home loan segment, the you know, moderation and volume growth and you know, in this slide, do you think that you’ll be, you’ll be required to take a PLR cut further?
Nutan Gaba Patwari
The business is now becoming, you have to react much faster. Therefore it will be very difficult to say what could be reality on the ground four, six, eight months down the line. So, and hence, you know, the whole spread guidance of 5 to 525, the whole AUM growth guidance as well, we want to stick to that and then, you know, let the rest of the interplaying forces be with the internal teams and then deliver on the guidance. So today it will be very hard to say what could competitive pressure look like in July or in October and how we choose to react to that.
Raghav
Understood. On another aspect, see I saw your employee number that’s down quarter on quarter. Is that because of, you know, high attrition that’s continuing for the larger industry as well as for you and you know, what are you doing to control that? That’s my last question.
Nutan Gaba Patwari
Yeah, so attrition has remained in that broad 35% range, what we are seeing. Yes, you’re right, the overall number quarter on quarter is down. We actually have about 250 people who are joining us. It just got delayed between December and Jan. So we expect that number should increase in March. When you see the numbers next time.
Raghav
And sorry, one more related question to this. See generally you know, out of the 1700 crore, sorry, 1700 employees that you have there would Be, you know, different cohorts wherein there is going to be a set of people which is highly productive and then there is another set of people which is not as productive. Is it usually the ones which are less productive, you know, getting weeded out or are leaving to join other companies and therefore you’re left with the, the more productive ones. And that’s something that’s going to be an input to your AUM growth or disbursement growth next year.
Is that the right way to think about this or not really?
Manoj Viswanathan
Yeah, that’s how we think about it. And that the aim is to retain the more productive, more productive salespeople. And so you know, all our efforts in terms of reward, recognition, etc. You know, work towards that, retaining the more productive people. But some of them also do, you know, because of various other reasons, you know, some of them want to go to a larger brand or you know, they want to take up a more senior role or some other kind of role, etc. So those factors are also at play. But yeah, of course internally the efforts are on to maintain the, I mean retain the more productive employees.
Raghav
Understood. Thanks a lot. And that was all from my side. Thanks.
operator
Thank you. We have the next question from the line of Aditya Pal from MSC Capital Partners. Please go ahead.
Nutan Gaba Patwari
Yes, how are you?
Aditya Pal
I’m good. All well. Thank you so much and good performance. Just a couple of questions to you and Manoj. So over the last couple of quarters we’ve gone from saying 27 to 30% AUM grow to 26. And now today we are saying 25% odd AUM growth for 26 as well as 27. Now this is the guidance. I agree. And the branch additions are also not keeping up the pace to what we had said a couple of quarters back. What are we seeing on the ground? As in is there any change? Because now the entire the cycle has turned somewhat the credit cycle.
So do you see any green shoots now going forward, maybe say exiting December.
Nutan Gaba Patwari
So let me just straightaway take the question on the guidance that you referred to. So the guidance we had given was 20,000 crores by March 27th with 25% next year we will hit about 19,600 to 700 crores. So essentially the overall impact in a medium term is about 300 crores of AUM. And you know, we all know how the credit cycle has been in the last 12 months. So it would not be very fair to say that we are dropping numbers quarter on quarter. I think we need to look at numbers in the medium term and whether the business is geared to take on challenges and do the right things when the cycle is difficult.
So that’s, I think that’s how I would like to address the first part of your question. The second part, you talked about the branch additions. Branch additions again take place on a regular basis. Yes. This particular quarter we had two branch additions, but come March we are expecting six to eight branch additions. So again, it’s not a linear number. I would request you to, you know, consider that.
Manoj Viswanathan
Last part. I think you were saying about talking about green shoots. Yes, I think the, you know, aim is to convey that, yes, we are seeing those green shoots. We have got over some of the challenges that we had in some of the markets and we are seeing green shoots. We are seeing, we are find. I mean we are feeling more positive about our, you know, origination as well as disbursal numbers for the coming quarters. So definitely wanted, want to put it out there and convey that.
Aditya Pal
Understood, understood. Thank you so much for this detailed answer. The other part is asset quality. So I definitely understand that. Last quarter we tightened our credit filters. Even after tightening a credit filter which would have definitely led to higher ejection rates, we posted this good disbursement growth now because of a tightening of credit filter. Do you see that this is the peak in terms of OnePlus DPD as well as the GNP?
Manoj Viswanathan
Yes. So OnePlus DPD already has turned around and you know, the GNP also should start moving down in the coming quarters.
Aditya Pal
Perfect. Perfect. Wishing you and the team all the very best. Again, great set of performance. Congratulations.
Rajiv Mehta
Thank you.
operator
Thank you. We have the next question from the line of Prithviraj Patil from investech. Please go ahead.
Prithviraj Patil
Hi. Thanks for the opportunity. So I just wanted one clarification. The given the cost of borrowing X of co lending, so I just wanted to know what that metric is and how you calculate.
Nutan Gaba Patwari
So we give two lines quickly. One is the total cost of borrowing includes the total bank borrowings, the assignment transactions, the whole lending transaction. Because the optical spread in a co lending book is low, we started giving the cost of borrowing excluding co lending and a spread excluding co lending as well. So what we basically do for that 530 crore pool, whatever the cost of borrowing is, we take that out and recompute the cost of borrowing and we put it in a separate line for full disclosure.
operator
Thank you. We have the next question from the line of Divyansh Gupta from latent pms. Please go ahead.
Divyansh Gupta
Hello. Yeah, I’m Audible yes. Yeah. Hey hi Nutan and Manoj, couple of data keeping questions. What will be our lab AUM mix and what would be the NPA for the two respective line of businesses?
Nutan Gaba Patwari
Sorry, your question is lab 15% what. Is your second question?
Divyansh Gupta
The NPA mix between the HL NP and lab NPA.
Nutan Gaba Patwari
So lab will be about 1.4. It will be about 2. Slightly above 2 just because it’s a higher book.
Divyansh Gupta
Sorry, higher book as in 6 is higher. Sorry I didn’t get. Can you repeat.
Manoj Viswanathan
So basically to answer your question, LAB NPA will be slightly lower than the HLNP.
Divyansh Gupta
Understood. And the second question was any early read on the CLM1 how is it impacting us or the customer experience? And any from our industry as well as home.
Nutan Gaba Patwari
For specific, you are referring to the new CO lending guidelines if I’m right.
Divyansh Gupta
Yeah, yeah.
Nutan Gaba Patwari
The CO lending guidelines have become effective 1st January 2026. We are in this transition mode as we speak. So some banks are ahead, some banks are taking some time. In my view we will take another two weeks to fully settle the process but it is a matter of transition and we will be rather be done with it quickly. As we speak today we are still undergoing conversations with some banks. We do expect that one out of the three banks we will do a transaction this month as well.
Divyansh Gupta
So does it mean that let’s say this at least the period, at least in the first month our CO lending dispersal is a bit slower and we expect to ramp it up in the next two months.
Nutan Gaba Patwari
Yeah, but I also have to add that some variations on a month to month basic basis are normal.
Divyansh Gupta
But understood, understood this helpful and the next question was that if I remember last con call only we said that up there are four or five big cities and like Mota Mota the market is not as big. But in the opening remarks we mentioned that we expect up to. We want. We expect to make up a big chunk by big business by FY28. So has there been a change in strategy or product or anything like some light if you can shed on that? No.
Manoj Viswanathan
So UP was part of our plan. If you see last two years ago when we started our expansion into North, UP was part of our plan but some of our early experience in UP was not so good and hence we kind of decided to take a more careful approach in terms of size of the market. It is large and yes as you are mentioning it is right now, you know there are three or four large cities which have, you know, larger, larger amount of business and Then it is more fragmented. But however that will not deter us from going into up.
It is one the of of our key markets which we have for future. It’s just that by the time we kind of, you know, put together the team and you know, create the foundation for expansion to up, it could take us another few quarters. So which is why we have mentioned in the call that in FY28 it would, it would start becoming a large contributor.
Divyansh Gupta
Got it. And just two more questions. So first is I think in the deck we mentioned that our Sibyl average Sibyl is around 750 747. This is origination at the time of origination or after because once someone takes a home loan then sibyl score anyways goes up.
Manoj Viswanathan
Origination at the time of origination.
Divyansh Gupta
Got it. Understood. And the last question was that the increase in GNPA, let’s say looking at the stage 3 absolute growth year on year has been faster than the increase in the aum, which is also therefore reflecting in the higher NPA percentage. Now given that, let’s say some green shoots and let’s say overall, let’s say pain being done, how should we expect, let’s say in the next few quarters this ratio, should we expect GNPA to come down with some flowbacks or it’s just that the growth of the book will more or less make the denominator big and therefore the percentage will come down?
Manoj Viswanathan
No, both will happen. So the absolute value should also come down and because of the denominator going up there will be some impact on that as well.
Divyansh Gupta
Got it. And is it through any specific collection effort or just generally reduction in stress and therefore people will, people are expected to pay back and expecting it to revert or we are doing much more for collections.
Manoj Viswanathan
So in some markets where you know, delinquencies are elevated, you know, obviously there is greater collection effort. But for us, you know, collection is. The entire team is tasked on collection. So it is kind of part and parcel of the day to day activity for every branch, every employee in the branches and also to some extent because of the, you can say green shoots in the economy and you know, the overhang of all this delinquency going away. Some customers also kind of proactively come forward to settle their accounts and you know, repay and come back to normal.
Divyansh Gupta
Got it. I’ll join back the queue for any further questions. Thank you and all the best.
operator
Thank you. We have the next question from the line of Chintan Shah from ICC Securities. Please go ahead.
Chintan Shah
Hello yeah, thank you for the opportunity. So I had a question on this AUM growth. So now on the disbursements, we have clocked around 500 crore disbursements per month. Also. I just wanted to understand. But in terms of the tariff impacted states, which was Tamil Nadu and Gujarat. So had we tightened our underwriting filters or had we done any changes to our underwriting policy or due to the, due to the problem related to tariff. And now having the filters also, what is, what is the kind of, what is actually driving this find the growth and makes us confident that this will be sustainable.
Yeah.
Manoj Viswanathan
So as I mentioned, you know, the tightening of filters is an ongoing process. You know, it’s just that when there is a, you know, event in the environment, economy not doing well, some of these trends emerge much faster and it helps us to take those decisions on which segments to tighten and so on. So which we did over the last few quarters. So the growth is not coming from relaxing those, you know, relaxing those norms. The growth is coming from increased distribution and you know, maybe just a bit of better momentum in the, in the environment.
So not from relaxing of credit filters.
Chintan Shah
Sure. So in case. But are we also planning to relax those filters and if we do, then could it further accelerate the growth then?
Manoj Viswanathan
No, we are not looking to relax those credit filters because the credit filters, as I mentioned, you know, these, the, the impact of the credit filter comes only after 18 to 24 months. So we have already realized, once we already realized that a certain cohort will not behave, then there is no, it doesn’t make sense to kind of, you know, relax the criteria on that cohort.
Chintan Shah
Sure. And do we have any limit on a maximum exposure to a single state? Any internal ceiling or limit?
Manoj Viswanathan
No, at the moment we have not set any limit for a particular state because if you see our market share in each state, it is still in low single digits. So which is why we have not set any cap, you know, cap for any state. So you know, in any state where we are present, there is obviously other players, there are obviously other players who have much larger share, including banks. So which is why we have not at this point put any cap on any state.
Chintan Shah
Sure. And one last question. In future or in the coming years, or do we intend to further, do we intend to reduce ticket size in any point of time to just get out into a higher yielding segment, like 6 to 8 lakh ticket size, or this is the current ticket size will only continue?
Manoj Viswanathan
No. So, you know, our, you know, proposal always has been that, you know, as the country grows and you know, incomes grow in most of these states. The availability of housing in this lower ticket sizes is, is shrinking. So we have always said that you know, every year the ticket sizes will grow by 3 to 5%, you know, as a natural progression. And so we will be continue on that path. We are not going into lower ticket sizes.
Chintan Shah
So. Got it. Got it. Thank you. And all the very best for the future quarters. Thank you.
operator
Thank you. We have the next question from the line of Midhesh Jain from investech. Please go ahead.
Nidhesh Jain
Thanks for the opportunity and thanks for the clarification on rumors around management changes. So first question is on management change only that to Manoj that you will be continuing it as executive role as MDNCo going forward as well. Right?
Manoj Viswanathan
Absolutely.
Nidhesh Jain
Thank you. Thank you for that. Second is how is the approval rate has changed, let’s say last year to this year. Has there is, is there a drop in approval rates that we have witnessed?
Manoj Viswanathan
Not, not significantly because you know the way we operate is that if you know any credit screens which have to be implemented, new credit screens have to be implemented. We convey that to the front end teams and a lot of that, you know, you can say elimination happens in the front end itself. So by the time the proposal comes, you know, for underwriting, it’s. It’s already gone through those screens. So at the head office level there is no significant change in approval. Approval levels.
Nidhesh Jain
Sure. And what are the plans to branch for branch addition in FY27 and which are the states which you are looking to add branches?
Manoj Viswanathan
So we have about six to eight branches in pipeline. It’s kind of spread across, you know, several states. So you know, so I think there are a couple of branches coming up in the north, Uttarakhand, Delhi. I mean I think, you know, they are basically split across the various states. So I think one or two branches in, you know, four, five across four, five states.
Nidhesh Jain
Yes. I think that is for Q4. Any planned addition for FY27.
Manoj Viswanathan
FY27 again we are looking to add about 25 to 30 branches. It will again follow the same path, you know, where we are concentrating. So MP will be one of the states. Mp Andhra Pradesh, Madhya Pradesh, Tamil Nadu, Maharashtra. I think these would be frontrunners next year in terms of branch additions.
Nidhesh Jain
Sure. And up will pick up in FY28 is the plan.
Manoj Viswanathan
That’s right. That’s right.
Nidhesh Jain
And lastly a data keeping question on what is the count of active connectors for the quarter?
Manoj Viswanathan
Count of active connectors around 3600 600.
Nidhesh Jain
Okay, that’s it for my side. Thank you.
Manoj Viswanathan
Thank you.
operator
Thank you. Ladies and gentlemen. In order to ensure that the management will be able to address all the questions from the participants and in the conference call, we request you to kindly limit your questions to two per participant. If you have a follow up question, please rejoin the queue. Again we have the next question from the line of Malik Chaudhary from Monarch Network Capital limited. Please go ahead.
Malik Chaudhary
Hello sir. Am I audible?
Manoj Viswanathan
Yes, yes.
Malik Chaudhary
So I just have one broad question. So there was an article in Economic Times four days ago stating that sales in affordable housing declined. So just wanted to know your take on the overall loan demand momentum.
Manoj Viswanathan
Yeah, so the affordable housing, you know, we love to, you know, kind of narrow down the definition to understand, you know, where it is shrinking and where it is growing. So as we have always said, the lower ticket sizes in affordable housing. So if you look at you know, ticket sizes less than 10 lakhs, there are marketplace that is shrinking and you know the, and the growth has moved to you know, the ticket sizes between 10 to 40 lakhs which is a natural progression of, you know, country progressing, incomes increasing and so on. But of course different states are in different stages of this evolution.
There are some states where they are already at, you know, average ticket size of if 15 or 20 lakh plus. In some states there are still properties available between 10 to 15 lakhs. So that is the, you know, statewise there are, statewise there are differences. But yes, if you were to make an, if you were to look at an overall, you know, commentary, the ticket sizes below 10 lakhs are shrinking. You know, that’s because of the income increase in incomes and you know, most of the pockets in the country. So I think we, you know, in order to keep track of affordable housing we will have to index the ticket size by about 3 to 5% every year to account for inflation.
Malik Chaudhary
Okay. Okay, thank you. Thank you so much. That is all.
Manoj Viswanathan
Thank you.
Nutan Gaba Patwari
Thank you.
operator
Thank you. We have the next question from the line of Bunty Chawla from asking wealth. Please go ahead.
Bunty Chawla
Thank you sir. Thank you for giving me the opportunity. Actually I have joined late if I am repetitive. Sorry for that. What is the situation in Tamil Nadu as such as we have seen, one of your peer has said that there has been some issue from the ordinance point of view how you are seeing the situation currently and any changes in terms of disbursement and all we have taken there.
Manoj Viswanathan
Yes, the ordinance issue is several months old now and of course it has it had some temporary impact on collections, you know, besides various other issues, you know, which Tamil Nadu was going through besides, you know, including tariff or some overhang of micro finance, delinquency, etc. But as I mentioned in my opening speech, we have stabilized the team which we had a challenge with last year. And now gradually we are building the portfolio over there. So we should start seeing good traction in Tamil nadu from quarter two of FY27.
Bunty Chawla
Okay. So during this quarter, how was the growth in Tamil Nadu? If you can say stabilizing down, up, something like that.
Manoj Viswanathan
Tamil Nadu is still growing, but obviously not at a pace that to grow earlier. So growth has been very muted.
Bunty Chawla
Okay, okay, okay. So now situation has been under control. Means has changed from last year.
Manoj Viswanathan
That is right. That is from last year. There is a, you know, you can say substantial difference in terms of, at least in terms of stabilizing the teams.
Bunty Chawla
Okay. And any change in terms of focusing on different ticket size or in different areas in Tamil Nadu we are, the situation is much better. Is it a way thought process or is it completely on that? Now the team is stable, now we can grow again.
Manoj Viswanathan
Yeah, it’s, you know, now that the team is stable, we are, you know, looking to again re establish our growth ticket sizes. In any case, we were not focusing too much on, you know, the lower ticket sizes, you know, below 10 lakhs. So largely the focus will be on core affordable housing the way we see it, which is between 10 to 40 lakhs.
Bunty Chawla
Okay, okay, okay. That was very helpful, sir. Thank you. Thank you very much.
operator
Thank you. We have the next question from the line of Maran from Money Stories Asset Management. Please go ahead.
Maran
Yeah. So hi team. I have two questions. The first was that recently the bounce rates on gross NPS and net NPS have seen a marginal increase. So I wanted to understand what’s the core reason for that. And my second question is regarding the loan book and the borrowings. Percentage of fixed and floating population. So because in the, in this falling interest rate environment, I wanted to understand if the yield of the borrowing versus the yield of the loan book, is it an advantageous question or not?
Manoj Viswanathan
So bounce rates, you know. Yeah. If you see last 2, 3, 4 quarters, they have moved up by about 1 1.5%. But we have not, you know, at least last quarter we had the collection efficiency was much better. So that is why we are slowly starting to see divergence in the bond street versus the actual collection efficiency. So customers have other accounts where the money is parked. So they end up bouncing the payment, but then they pay up immediately. So you know, bounce rate is not, it’s no longer a strong reflection of how the collection is going to go in that particular month.
As far as fixed versus floating is concerned, our entire book is floating rate. We don’t have fixed rate loans for the customer.
Maran
Okay, so how will it affect in terms of our borrowing and lending.
Manoj Viswanathan
So on the borrowing side also we have everything. We are floating rate borrowing. So it’s a back to back floating only.
Maran
Okay, got it. Thank you.
operator
Thank you. The next question is from the line of Siraj Khan from Ascendancy Capital. Please go ahead.
Siraj Khan
Hi Tim, thank you for the question. Just a clarification. Can you call out the log logins growth also the number of logins that you clocked during this quarter because there has been a little bit of a noise. I mean yes, you said that the affordable housing piece is starting to, you know, come out of the woods. But what was the login group, if that number could be called out?
Manoj Viswanathan
Login group origination. Yes, origination has also been growing. So we don’t normally mention that number in, in the discussions. But yeah, I mean ultimately the dispersal there is a certain disposal rate. If you know, hundred cases get logged in or originated, there is a certain disposal rate which is kind of constant. So it’s a function of. So if the disposal goes up, that means origination also has gone up.
Siraj Khan
Okay, so if you could give me like the funnel, then what will be the login to dispersal funnel? So like if 100 were logged in, what would be the dispersal rate just.
Manoj Viswanathan
To get us the dispersal rate? Typically 80% is the disposal rate at disbursal to origination. We are not talking about logins, so we are talking about origination. But the loans, the number of loans that get sanctioned or approved.
Siraj Khan
Understood. And the 215 number of employees that was being mentioned that are going to join in Q4, which particular seg like cohort of this like mostly sales collection? What, what is this? What I was trying to understand is over the last three four quarters, what we’ve seen is the per employee disbursement number has been around the 30 million mark. If the number will number will add up, that will get impacted. But is the 30 million number like the peak number or is there aspirational something higher that we target for employee disbursement?
Manoj Viswanathan
Yeah, the aim is always to, you know, improve on that number. But it has been static at least last, you know, five to six quarters. But of course last five, six quarters have Also been difficult from an environment perspective. So definitely I think if there are tailwinds and you know, the environment improves, that number can also improve. But as of now we are budgeting on the basis of the 30 million number.
Siraj Khan
And just a final quick one with respect to the growth that we are seeing in mp. I mean this is being one of our fastest growing states. Tamil Nadu is, Tamil Nadu is coming, coming out of as you are saying from the MFI issue and other states are also recurring from coming out of the icata thing. The 25 that you’re looking at is like a conservative piece. Because what I want to understand is in the, in the growth wave, are we entering towards the top of the wave at the bottom of the wave or we are coming out of the trough and going up towards, up off the growth wave? I’m trying to understand how the, how the swing might happen.
Manoj Viswanathan
So we are basically see we are giving a projection or a guidance based on how we are seeing it today. You know, and of course if let’s say six months down the line we are, you know, there is more bullishness in the market and you know, there is a greater momentum then of course we will revise our guidance at that point of time.
Siraj Khan
And quick one, we have seen approximately like a 2.1% drop in our, like approximately 3% drop in our less than 15 lakh portfolio on ticket size basis which has correspondingly increased in more than 20, 20, 20 lakh. So is this like more so driven by on the ground or part of it is down to the natural inflation because the 25% growth rate that we’re targeting, I think you said 5% would be from ATF. Then what will be the balance 20% coming from in respect to this whole.
Manoj Viswanathan
See we are, we are open to, you know, we are open to customers coming in all of these segments. Right? We are not declining customers from any of these segments. So this is a more of a natural phenomenon that we are observing in the market. So as you see across the years, you know, the lower ticket sizes, the proportions are reducing and you know it’s increasing in the higher, in the medium or higher ticket sizes. So it’s more of a natural phenomenon of what is coming through the door. We don’t have any particular policy which says that you know, below a certain ticket size you have to decline the loan, etc.
Etc. So it is like I mentioned, you know, natural progression. So in some states, you know, incomes have arisen so customers are aspiring for larger ticket size or larger homes. So it’s just what is coming through the door.
Siraj Khan
I was not saying that you are declining, but you are not categorically pushing for a higher ticket size. It is just whatever is on the merit if it is. Even though if it is higher ticket size, you are going with it.
Manoj Viswanathan
Absolutely. So you know, we are open to, you know, see, we obviously don’t, we are not competitive in the extremely high ticket sizes where you know, banks are active. So we don’t actively pursue those ticket sizes. But what is broadly, you know, let’s say if we go by the RBI definition of affordable housing, which is, you know, all the way up to 55 lakhs in metros, we are open to customers in that entire range. Right. So customers who are facing a difficulty in getting loans from larger lenders is whom we are facilitating. So we are open to all of those customers.
And so typically now the customers are coming from slightly higher ticket sizes. Lower ticket sizes, the market is shrinking.
Siraj Khan
Understood. Just you. I’ll come back in the queue. But your outlook on the yields, how do you see the yields moving? Thank you very much.
Manoj Viswanathan
So yields, as you mentioned, we should be able to maintain the spreads at between 5 to 5.2%. So I mean will move depending upon the rates in the market but spreads we should be able to maintain between 5 and 5.2%.
Siraj Khan
Oh, okay. Okay.
operator
Thank you. A reminder to all to restrict your questions to two per participant. If you have a follow up question, please rejoin the queue. Again we have the next question from the line of Shubhankar Gupta from Equity Capital. Please go ahead.
Shubhankar Gupta
Hi, am I audible?
Manoj Viswanathan
Yes.
Shubhankar Gupta
Yeah, sure. So I’ll continue. So I think two, three questions from mine. I’ll make it quick. Just want to understand, NP actually has gained a lot of share nearing 10% of overall gross loan book. So just want to understand what is enabling this sort of growth in MP and is it a model which we can learn from and apply to let’s say states like up.
Nutan Gaba Patwari
Sorry, which state did you refer to? We could not hear you properly. MP.
Shubhankar Gupta
You mean MP. MP, yes. MP has gone to around 10% now. 9.6, 9.7%.
Manoj Viswanathan
Yes. So see these are, this is, you know, you know, when we are operating in multiple states we always have certain, you know, growth drivers, you know, certain markets are going through some challenges. So I mean, so which is the, the whole advantage of diversification and which is why we are present in 13 states and other than Gujarat in most of the states are kind of equal contributors to our business. So this is the Diversification. So we find that, you know, certain states, you know, there is more industrialization or, you know, urbanization happening at a rapid pace.
Incomes are going up rapidly. Overall law and order situation is improving more rapidly. So the demand for affordable housing also, you know, kind of goes, goes up fast. And it also to some extent depends upon the team. You may have a stronger team in one state whereas versus another state. So, you know, the things go better in a particular state. So it will, I mean, there will be a state, you know, there will be a few states which are firing this year, some state is firing next year. So that’s the whole advantage of diversification.
Shubhankar Gupta
Actually, I get your point. I just want to understand. So one of the external elements which is. Which are not in our control. I was talking more from the internal elements with that. Okay. Internal stronger teams is deployed in the state or some other factors which have contributed to, let’s say this state gaining more than others was my key question.
Manoj Viswanathan
Yeah, but what we have realized over time is that, you know, each state has its own characteristics. So when we try to kind of, you know, cut pair something that has happened in one state into another state, it never works.
Shubhankar Gupta
Okay. Okay, got it. So that’s fair. That’s helpful. A second question is on the lead generation strategy bit. So I saw that builder ecosystem has gained a bit there. So I just wanted to understand is there some coating within the, like the Pareto of lead generation, which is connectors and how do you strategically look at cohorting within this and then kind of using it to increase lead generation?
Manoj Viswanathan
So our aim is to have a very granular connector network. So when we are analyzing connectors, our main focus is to drive two particular two metrics, which is that the number of connectors which are handled by relationship, relationship manager, can we drive that number up? And the number of active connectors. So these are two metrics that we drive actively. So we are not really interested in trying to maximize the business from a connector because then that leads to, you know, aggregation and you know, a different model, which is an aggregation model. So we try to increase the number of connectors which are handled by relationship capacity of a relationship manager to handle more connectors and the number of active connectors, overall number of active connectors.
Shubhankar Gupta
And what will be the key, let’s say steps or acquisition strategies to increase the number of active connectors or even connectors.
Manoj Viswanathan
So one is that just addition of the denominator itself, which is just adding the total number of connectors. And the second part is the activation so activation is a process of, you know, identifying which connector can be, you know, who’s dormant. So somebody was given us a loan or you know, referred a loan to us in the past, but you know, has gone dormant. So how do we activate that person? What has stopped him from referring cases later on? So that is the whole science.
Shubhankar Gupta
You are saying that there is a full funnel for connectors, acquisition, activation and probably retention. Also what I’m asking is within the acquisition funnel or the bucket coating, how do you, what is the strategies or the ways you’re looking to acquire these connectors? Is it digital mediums, physical mediums? And within that also there’s further segmentation. What is acting?
Manoj Viswanathan
Well, here the acquisition is largely physical. So this, each relationship manager is tasked with acquiring connectors. And that has been, that is something that we have found to be more most effective at this point, at this stage. At some point, you know, if there is a digital or, you know, centralized process, we will adopt that. I mean, some pilots are going on, but at the moment, physical acquisition by the relationship manager is the most active channel, most active method of getting connectors.
Shubhankar Gupta
Got it. But one last question for you, sir. So there is a change in the early delinquencies as mentioned. Just want to understand what are the major steps you have taken over the last 2, 3/4 which have left led to this change in early delinquencies?
Manoj Viswanathan
Steps is we try to, I mean, when the environment is tough, we basically try to increase the collection intensity, we increase the step of the monitoring at a relationship manager level, number of visits and so on and so forth. So some of those steps are paid off. And you know, improvement is also a reflection of how they environment is easing off. I mean, our efforts kind of, yes, our efforts were elevated for a couple of quarters. But then the environment easing off combined with our efforts has helped to reduce the early delinquency.
Shubhankar Gupta
All right, thank you so much, sir. Thank you for answering the patient.
Nutan Gaba Patwari
Thank you.
Manoj Viswanathan
Thank you.
operator
Thank you. We have the next question from the line of Ravi Naridi from Naridi Investments. Please go ahead.
Ravi Naredi
Thank you very much. To give me opportunity. Mr. Manoj and Nukan Gabaji, your entire team is doing fantastic work. And your confirmation you will remain with company will play a new confidence in company. Sir, my only question is there can you Give figure in December 25th quarter how much money we write off completely in auction house property to conversation and can you give this figure for nine months also?
Nutan Gaba Patwari
So for the quarter of December, we have not done any write off which Is a complete write off for the first two quarters. We have done. My sense is in the range of 4 to 5 crores. But allow me a minute and I will confirm that number to you.
Ravi Naredi
Okay.
Manoj Viswanathan
3.3 crores in quarter one.
Ravi Naredi
Total is.
Manoj Viswanathan
Yeah. Total 10 crore for the year.
Ravi Naredi
Okay. Okay. Thank you very much and all the best.
Manoj Viswanathan
Thank you.
operator
Thank you. We have the next question from the line of Rohit from an individual investor. Please go ahead.
Unidentified Participant
Hello.
Manoj Viswanathan
Yes.
Nutan Gaba Patwari
Yes sir, we can hear you sir.
Unidentified Participant
What are the dis dispersal trend in January month?
Nutan Gaba Patwari
The January is still not closed.
Unidentified Participant
Current to 20 days. Trend
Unidentified Participant
strong, sir. Okay, thank you. And are there any specific states which are contributing for the NPA and gnpa?
Manoj Viswanathan
Yes. So you know as we discussed in the past Tamil Nadu has been one of the more difficult states for us last year. Other than that at a state level we don’t have any, you know, any challenges. There would be obviously specific branches where there are challenges in some states. But as a whole, you know the. We are facing a. We faced a challenge last year in some.
Unidentified Participant
No, this quarter only GNPAs are increased from last quarter. And in this quarter which state are having a higher stress?
Manoj Viswanathan
The stress continues in Tamil Nadu. The you know, stress that we had which was building up. So the higher delinquency is. Some of it is coming from Tamil Nadu.
Unidentified Participant
Is. Is the stress due to tariff issues?
Nutan Gaba Patwari
Yes.
Manoj Viswanathan
Yes. Tariff issues have also contributed to it.
Unidentified Participant
Okay, that’s it from my side.
Nutan Gaba Patwari
Thank you.
Manoj Viswanathan
Thank you.
operator
Thank you. We have the next question from the line of deviance. Gupta from latent pms. Please go ahead.
Divyansh Gupta
Hi. Thanks for allowing me another question. Just one question. I had my. Let me know if my understanding is not correct. Typically home loans will have a higher LTV compared to a lab. Given our NPAs are higher in home loans on a. Let’s say even historically as well as let’s say as the stock right now. The simple mathematical assumption would be that the stage 3 LGD or ECL number should go up.
Nutan Gaba Patwari
Yes. But what we will have to do is not look at a single year. We will have to look at a one cycle trend which is at least seven years. And when you look at that ultimately it depends on what the equity of the customer is. So it’s not a very mathematical formula on one year basis or a one quarter basis.
Manoj Viswanathan
Also within housing loans, you know there are different products which are a different LTVs. So LTVs are high in you know, certain apartment products. But then in a discount comes to resale or self construction. The LTVs are actually low. I mean they would be. They could be as low as a lab itself.
Divyansh Gupta
Yep. Let’s say if you are doing a PPC plot purchase plus construction or construction on plot. But my understanding was that we had more or less exited from the apartment led credit. Right. We were not doing apartment led.
Manoj Viswanathan
The entire Gujarat is largely apartment led only.
Divyansh Gupta
Got it. But so then understood. So what? So basically there is no change in ECL model or any assumptions which might be leading is just pure, purely driven by various factors of the loan proper loan characteristics. Is then that understanding all of that.
Manoj Viswanathan
Gets reflected in the ECL model?
Nutan Gaba Patwari
Absolutely.
Manoj Viswanathan
The changes in the portfolio, the changes in the LGDs, you know, from time to time, all of it gets reflected in the ECL model.
Divyansh Gupta
Got it. And just one last question. What would be a GNPA as a GNP on a managed book? Because the GNP that we report is more on the on book GNP
Nutan Gaba Patwari
1.8. 1.8. 1.8,
Divyansh Gupta
1.1.8. Which means that then it’s a fair assumption that mostly home loans are taken away in da and also probably more creamier or better profile customers are in the management.
Manoj Viswanathan
It’s a vintage issue also. So what happens is the lower vintages go off in the assignments and higher vintages remain with us. So that difference also comes through.
Divyansh Gupta
Got you are saying new fresh vintages goes away. Yeah, the old vintage. But over a period of time though it will equalize. Only you are also da it away.
Manoj Viswanathan
Take some time. Because the assignment, you know, the assignment started you know, after Covid so probably it should get normalized in maybe next two years.
Divyansh Gupta
And then ideally one point, then we should see a 1.8 kind of number. Is, is that the current understanding or.
Manoj Viswanathan
Is 1.8 will become true at some point there should be a convergence. I mean there will still be some difference because of the quality of the book. Because by definition the assignment book is taken away after a certain seasoning. Right. So in that seasoning, you know, the quality is already checked in that seasoning and then the book is then assigned. So that difference will still remain. But yes, there will be a greater convergence in a couple of years.
Divyansh Gupta
Thank you.
operator
Thank you. We have the next follow up question from Siraj Khan from Ascendancy Capital. Please go ahead.
Siraj Khan
Thank you for the follow up. Can. Can you just give me a breakup of the AUM with respect to apartment how much is apartment? How much is P? How much is self construction? Would that be possible to provide?
Manoj Viswanathan
Sure, sure, sure. We can give you that, so apartments on AUM is around 16%. Okay. Right. Self construction is around 26% and yeah. Anything else you wanted to know?
Siraj Khan
Plot. Plot plus construction and.
Manoj Viswanathan
Construction will be part of the self construction group, which is 26%. Yeah.
Siraj Khan
Plot or only construction?
Manoj Viswanathan
Only plot will be very small. It is about 1% of the pool.
Siraj Khan
Okay. And just a quick one on the BT outreach. So QoQ, we can see that the number has fallen. I mean last quarter it was 7.6, now it is 6.6. What do you look at the number with respect to the BT out overall runoff? Because what I see, what, what I’ve seen on the ground, speaking with some of the, you know, people on the ground, some of the affordable housing and some housing finance companies are doing, you know, 12% or sub 12% rates in the, in the, in this quarter and even parts of, and you know, a little bit in last, last end of the last quarter.
So I mean the yield outlook question was, was purely because of that. Because if you’re seeing less than 15 lakhs or less than 20 lakh customers being offered 12, maybe even sub 12 rates, then that, you know, creates a question mark with respect to the whole spread and the entire ro.
Manoj Viswanathan
Yeah, so this is something that we have been also flagging off since last several quarters that there are, you know, the balance transfers are fairly aggressive, even in the affordable segment now and the rates being offered by various affordable housing players are also fairly aggressive is something that we had flagged off. However, we have also read, you know, you can say reinforced or renewed our efforts for retention in order to, you know, prevent balance transfers. So hopefully, I mean, at least in this quarter it has yielded some results and we have managed to, you know, reduce the balance transfer.
So this report will be on to, you know, speak and counsel the customers and you know, reduce the balance transfers.
Siraj Khan
So a steady state BT out rate that you feel, say.
Manoj Viswanathan
Yeah, our aim is to, you know, kind of continue this success that we have had in this quarter. So if the effort that we have put in this quarter continue to give us results, then it will, yes, double as a radar. Six, six and a half.
Siraj Khan
Okay. And finally an aspirational overall thing like we’ve seen some of our peers, you know, slowing down post the post. There is a 20,000 crore mark. You’re saying that you will be reaching the 20,000 crore mark in a couple years time? Yes, because the base is higher, the growth rates moderate. But what do you think is a sustainable steady state growth for, for you and what you are Looking like a long, longer term frame. This is a question like where do you see the book and what is the sustainable growth rate and like the sustainable roas that you, that you see.
Just a big picture. Big picture question.
Manoj Viswanathan
Yes. So as we had mentioned, you know, the 20,000 crore number by March of 27 and as we discussed earlier in the call, we may only miss it by maybe one or two months. Similarly we, our, you can say guidance or our you know, vision or you know, projection for the 2030 is 35,000 crores. So that is where we want to get to. That will be in the region of around 20 to 23% growth year on year. If you have to get to 35,000 crores.
Siraj Khan
Understood, understood. Thank you very much. This is great. A couple of suggestions on the fact sheet. I mean if you could start giving the, you know, statistics with respect to those numbers of the sanction ratios and it’s a very useful number that you generally as analysts, if you could add that number into the fact sheet would be good. Yes, the approval ratio like login to sanction or sanction to disbursement, that that ratio would be really helpful. Thank you very much.
Nutan Gaba Patwari
Thank you.
Manoj Viswanathan
Thank you sir.
operator
Thank you. We have the next question from the line of Aditya Pal from MSA Capital Partners. Please go ahead.
Aditya Pal
Just wanted to understand the color qualitative aspects of OnePlus DPD as well as GNPA. So you answered a few data points to previous participants. The nature of these customers. Is there any commonality between these customers that are not paying? It can be either vintage, it can be income profile, it can be state level.
Manoj Viswanathan
See most of the customers, you know, default because of some unforeseen event in the family. Okay. It could be largely medical events, accidents, some major illness. So that is a big contributor. Another contributor is of course losses in business, loss of job and so on. So these are the key contributors to the, to the default. And if this is combined with let us say some weakness in the property value, that’s where the NPA and you know, losses take place. If the property is strong and there is a lot of equity for the customer in the property, then they typically either sell the property or you know, settle and you know, square off the loan.
But if there is a weakness in the property as plus there is obviously the, you know, weakness in the income, then we end up with npa. So.
Aditya Pal
But the reason, and that is something which is business as usual. But my, my question is more to do with, if you look at from a one year One year basis. Obviously there has been a macroeconomic issue and we all knew that the country went through a rough economic or credit patch over the last 18 to 24 months. Over the last 15 to 18 months. But is there as in the company for the company for home first now our One Plus DBD over the last 12 months went from four and a half percent in FY25Q1 to 5.5% last quarter and 5.3% this quarter.
Who are these customers? And when the. What is it, what is it that the economy or the customer profile that need to turn for you to come back to say a closer to a 5% or sub 5% that we were doing historically and same color for NP NPA there’s been a 30 basis points jump over the last 12 months, I think. So a large part of that chunk would be Tamil Nadu. If I’m not wrong, you can, you can correct me if my understanding is wrong. So that is what I want to understand. I completely agree on the, on the, that there would be family issues, there would be medical emergencies, there would be decrease in house prices.
But those are business as usual and that is something that all the affordable housing finance across cycles will go through. But this cycle was a bit different. So that is why I wanted to know the color.
Manoj Viswanathan
So what will change things is basically one important thing is easy availability of credit. Right. So which is important for you know, a customer at the lower, in the lower income segments. So typically when there is a stress in the family, like somebody has lost the job or you know, there is a sudden medical expense that has come up, they need immediate cash flow from some other source. I mean if they, if you expect, if you, if you are expecting them to continue to pay the home loan emi, then you know, in order to, you can say attend to their other problem, they will have to get immediate cash flow from somewhere.
So which was earlier available because you know, there were a lot of companies providing, you know, quick, quick personal loans and so on. But that dried up over the last 12 to 18 months and as a result of which, you know, some of these customers were kind of left high and dry, you can say. So when there is a sudden crisis, they don’t have anywhere to turn, anywhere to go to. So they had to then, you know, stop their home loan payment and you know, kind of dip into that as a, as a last resort for their emergency needs.
So that is something that when it changes, and we know that it has changed over the last three, four months, customers find it a little Easier to kind of, you know, tide over that, tide over that phase, you know, two, three months when there is a liquidity problem for them. So that is one of the important things that can change in the economy. I mean what can obviously change on at a macro level is obviously there is more job creation. There is, you know, in higher income or wage inflation or income inflation. So that then helps the customer to, you know, create a financial cushion for, you know, difficult situation.
Aditya Pal
Understood, Understood. And out of this 255crores of gross NPA that we have, how much would be because of Tamil Nadu or for that matter because of tariff related stress? We already commented that we are seeing a good turnaround in Gujarat. So now Tamil Nadu and the city in Tamil Nadu district in Tamil Nadu is the only pain point. Triple.
Manoj Viswanathan
Yeah. So see Tamil Nadu is, you know, as a percentage of the AUM, it is about 12%. So the ratio of NPA will be slightly higher, probably around 15, 15 to 18, 18% of the NPA cohort. And at least in some pockets it’s largely because of the tariffs. So for example, Tirupur has a much higher NPA ratio because you know, the economy there has been under stress.
Aditya Pal
Understood. Understood. Thank you so much and wishing you all the very best again.
Manoj Viswanathan
Thank you.
operator
Thank you very much. As there are no further questions from the participants, that concludes the question and answer session. I now hand the conference over to Mr. Manoj Vishwanathan for the closing comments. Thank you. And over to you sir.
Manoj Viswanathan
Thank you everyone for participating and engaging in the call. We hope we have been able to answer the questions to your satisfaction. In case you want to reach out for further questions, you can always reach out to Sunil Anjana or write to us@investor.relationshomefirstindia.com thank you so much.
operator
Thank you very much. On behalf of Home First Finance Co. India Ltd. That concludes this conference. Thank you for joining with us today. And you may now disconnect your lines. Thank you. Sopnali. Thank you. Welcome ma’. Am.