LIC Housing Finance Limited (NSE: LICHSGFIN) Q4 2025 Earnings Call dated May. 16, 2025
Corporate Participants:
Tribhuwan Adhikari — Managing Director and Chief Executive Officer
Lokesh Mundhra — Chief Financial Officer
Analysts:
Praveen Agarwal — Analyst
Mahrukh Adajania — Analyst
Sameer Bhise — Analyst
Gaurav Kochar — Analyst
Rajiv Mehta — Analyst
Abhijit Tibrewal — Analyst
Himanshu Taluja — Analyst
Shreya Shivani — Analyst
Kunal Shah — Analyst
Shweta — Analyst
Rajiv Pathak — Analyst
Rakesh Kumar — Analyst
Bhaskar Basu — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the LIC Housing Finance Limited Q4 and FY ’25 Earnings Conference Call, hosted by Axis Capital. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Praveen Agarwal from Axis Capital. Thank you and over to you, sir.
Praveen Agarwal — Analyst
Thank you, Manov. Good day, everyone, and welcome to this earnings call. We have with us from the management team, Mr, our MD and CEO; and Mr Lokesh Mundra, CFO, to take us through the key highlights of the results, post which we’ll open the floor for Q&A. Over to you, Adikari, sir, for your initial remarks, please.
Tribhuwan Adhikari — Managing Director and Chief Executive Officer
Yeah. Thank you, Praveen. Very good morning to all of you, and welcome to the post-earnings conference call of Housing Finance Limited for Q4. As you are aware, LIC Housing Finance Limited declared its Q4 results yesterday. And now before I start the highlights of the Q4 results, I would like to outline a few developments in the economy of the last quarter. The Reserve Bank of India’s MPC enacted two successive 25 basis-point reductions in the repo rate during 2025, lowering it from 6.5 to 6.25 in and further 25 basis-point cut from 6.25 to 6.0 in April. Despite these cuts, liquidity conditions remained constrained in Q4 of financial year ’24-’25, Jan to March, contributing to higher market yields. To address this, the RBI introduced multiple liquidity boosting measures in March ’25, including a $10 billion US dollar INR buy and sell swaps, then there were OMOs worth INR1.8 lakh crores and variable auctions.
The cumulative 50 basis-point rate cut combined with the improved liquidity from these interventions led to a decline in-market yields during Q1 of the current fiscal, that is ’25 ’26. And now due to an increase in the borrowing costs, the company LICHFL increases benchmark lending rate or LHPLR, as we Call-IT by-10 basis-points with from 1st January 2025 and subsequently after the repo rate cut, the PLR was reduced by 25 basis-points with effect from, 28, 2025, which affected the entire portfolio.
With this, we present the financial highlights of the company for the quarter as follows. The total revenue from operations at INR7,283 crores as against INR6,936 crores for the corresponding quarter of the previous year, registering a growth of 5%. The total loan portfolio stood at INR3,732 crores as against INR286,884 crores as on 31st March 2024, reflecting a growth of 7.38%. The individual home loan portfolio stood at INR2,61,562 crores as against INR244,205 crores, up by 7% and this individual home loan portfolio comprises 85% of the total portfolio.
Total disbursements for the quarter were INR19,156 crores as against INR18,232 crores for Q4 of FY ’24 by 5%. Out of that disbursements in the individual home loans, INR15,383 crores were individual, out of this total disburse of INR9156 crore INR15,383 crores was against — as against INR1,4300 crores for Q4 of FY ’24 were individual home loans, which was up by 8%. Project loans were at INR875 crores compared with INR1,501 crores in Q4 of FY ’24. On the net interest income, the NII was INR266 crores for the quarter as against INR2,000 crores for Q3 of FY ’24. So sequentially, there was a growth. But it was INR2,238 crores by FY ’25, so there was a decrease.
Net interest margins for the quarter stood at 2.86% as against 2.70% of Q3 of FY ’25 and 3.15% of Q5 to Q4 — Q4 of FY ’24. PBT stood at — stood at 1769.58 as against INR1476.18 crore, registering a growth of 20%. PAT registered a growth of 25% approximately. It stood at INR167.96 crores as against 109 crore crores and the — for the year, the PAT stood at INR5,429.02 crores as against INR4,765.41 crores, showing a growth of 14%. Dividend declared by the company was 500%. Again, that is INR10 per share face value being INR2. In terms of asset quality, the Stage 3 exposure at default stood at 2.47% as against 3.31% as at the end of 31st March 2024 and 2.75% as on 312, 2024. So the asset quality has been continuously improving.
Total provisions as on 31325 were INR4,899 INR899 crores with Stage 3 PCR, the provision coverage ratio coming up — coming to 51%. On the recovery front, with the continuous and focus efforts, we have witnessed a significant and consistent reduction delinquency levels during the last year. Also, during the year, we have made a technical write-off of INR171 crores during Q4 and INR1,368 crores during the entire financial year. On the funding side, the cumulative cost of funds stood at 7.73% as on 31, 325 as against 7.71 at 7.78% as on 31, 12 ’24. So sequentially, there was a decline of 5 basis-points. And as compared to last year, which was at 7.76%, there was a decline of 3 basis-points. Incremental cost of funds stood at 7.73% for the full-year and 7.66% for the quarter. Net interest margins for the year stood at 2.73% as against 3.08%.
During the last quarter, the interest rates were elevated due to-high tight liquidity conditions. However, we managed to keep our interest-rate expense flat in compared to Q3. We also renegotiate on some of our outstanding borrowings. These were the earning highlights. And with a brief introduction, I would like to invite you for your queries. Thank you.
Questions and Answers:
Operator
Thank you very much, sir. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles hello, we have a first question from the line of Maruk Adajania from Nuvama Wealth. Please go-ahead.
Mahrukh Adajania
Hello. Hi, sir. So I had a couple of questions. You did say that you have changed your PLR as of 1st April by 25 basis-points. So now the entire individual loan book has repriced and is that — is that correct?
Tribhuwan Adhikari
Yes, it is correct,.
Mahrukh Adajania
Okay. And in terms of cost of funds, which was 7.66 incremental in the 4th-quarter, what is it as we speak today?
Tribhuwan Adhikari
Because of funds have come down after the reporate thing 7.3.
Mahrukh Adajania
So the increase was 7.3, so basically 7.66% has gone down to 7.3 and the yield has gone down on the individual home loans by 25 basis-points. And so I just wanted to understand, I know you had explained even on the last call that how soon do you pass-on the repo rate cuts? What’s the pricing mechanism?
Tribhuwan Adhikari
Yeah.
Mahrukh Adajania
So you passed on the previous 25 basis-points, but there was one more 25 basis-points, when will that be passed on to existing customers?.
Tribhuwan Adhikari
No, Mahruk are like banks, many of the banks, the housing room rates are linked to the repo rate. And so automatically wherever there is a repo rate cut, the benefits are automatically passed on to the borrowers. But in our case, we don’t have that. We have something called the NHPLR or something, a PLR we can Call-IT. So we do assess our — we do assess our because ultimately the — how much we are able to pass-on relies primarily on our borrowing costs, right? So if we see that the borrowing costs are transmitted, the reduction in repo rates are also transmitted to us in the form of lower borrowing costs, we do take a call and pass-on the reduced borrowing costs to the borrowers.
So that is a call we take from time-to-time. So it is not automatically linked to the repo rate that as soon as the repo rate comes down, we have to bring down our ELR.
Lokesh Mundhra
Good morning, Mahruk. I am Mundra, CFO. I mean this year only. I understood your question that this reduction in lending rate or so that will be effective on quarterly basis. So this quarter it will not be affected and next one from 1st of July, the will come.
Mahrukh Adajania
Okay. So the next repo rate, so there were two, one has been passed on and one will be passed on in July.
Tribhuwan Adhikari
No, no, we are not — we are not confirming that. We’ll take a call-in July as to the — how our borrowing rates have sort of leverage as compared to the rate cut because in June — again, in June there is an MPC in June we are — I’m personally expecting a rate cut of another 25 basis-points. So we’ll take a call-in June. We’ll take a call-in the month of June. This rate cut, which we have effected in April, this will automatically be passed on from the 1st of July.
Lokesh Mundhra
Correct.
Tribhuwan Adhikari
Because many of the loans get reset every quarter. There are some loans which get reset every month. So that is a slightly lesser, smaller percentage. So that those loans would have already been reset. A majority of the loans get reset quarterly, so those would be reset on the 1st of July.
Lokesh Mundhra
Correct.
Mahrukh Adajania
Got it, sir. Very clear. But just historically if you see in the earlier rate cut cycles, of course, we did not have repo linkage then even for banks. How long does it take to transmit cuts? So if, say, RBI is cutting rates today by 25 basis-points historically, how long has it taken before that reflects in your cost of fully reflects in your cost of funds and is then fully passed on to borrowers? Any such data you could share?
Tribhuwan Adhikari
I don’t have any specific data as to when we have passed on the rate cuts in the earlier cycles, etc. But usually, I would say it would be, I would think a Three-Month — three-month cycle because as it is, the reset is quarterly in most of the loans, almost majority of the loans, loans the reset is quarterly. So normally it takes about three months-to pass-on the rate cut to the borrower and rate to get affected for the borrower to feel the effect of the rate cut.
Mahrukh Adajania
Okay, sir. Thanks a lot. Thank you. That was my only question related to. Thank you so much.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to take questions from all participants in the conference, please restrict yourself to only two questions per participant. Should you have a follow-up question, we request you to rejoin the queue. We have our next question from the line of Sameer from Asia. Please go-ahead.
Sameer Bhise
Yeah, hi. Thanks for the opportunity and congrats on a good set of numbers. Sir, just kind of probing on the whole interest-rate things again. Given that we have partly passed on the rate cut on the asset side right now, do you think there is a case that as we go down the rate cycle, there could be a period when in the — in the term or at least in first-half of F ’26, we could have a bit of a compression on spreads, which is probably more pronounced than before and then hopefully be recover towards the end-of-the year. Is this the right way to think about it?
Tribhuwan Adhikari
Yeah. Well, Sameer, yeah, the interest-rate scenario right now is very, very volatile with rate cuts happening and transformation of the rate cuts to the borrowers and again transmission of the rate cuts in the form of borrowing costs. It’s all very, very, I would say, murky right now. But yes, the trend has clearly seen from the actions of RBI and from the market expectations that the trends are for a lower revision — a lower revision in the repo rates. What we are looking at how it gets transmitted to the borrowing costs.
As I said, the borrowing costs right now at 7.3 down from around about 7.66%, so almost 30 basis-points out of that 50 basis-point rate cut has been passed on to us. We’ll have to take a call. Yes, margins are going to be under pressure. I’m very aware of this and it will require very deft handling on our part of managing — in managing the, I would say, the interest-rate scenario so that we do not lose out on the spreads and the margins. I feel we should be able to handle that. We have ended the year with a NIM of 2.72. I think we should be in that region. So my guidance for the year —
Sameer Bhise
On a full-year.
Tribhuwan Adhikari
Pardon?
Sameer Bhise
So this is on a full-year basis. We ended at 2.7273. How should we look at probably, if you could give some sense on how the transition could be through the year.
Tribhuwan Adhikari
Through the year, my sense would be worst-case scenario would be probably at 2.6 best-case scenario, probably at 2.9. So my guidance will be between 2.6 and sorry, 2.6 and 2.8, not 2.9.
Sameer Bhise
Okay, sir. Okay. This is helpful. Thank you and all the best.
Tribhuwan Adhikari
Thank you.
Operator
Thank you. We have our next question from the line of Gaurav Kocher from Mary Assets. Please go-ahead.
Gaurav Kochar
Yeah, hi, sir. Good morning. Sir, again, probing a little bit more on margins. So you called out that there has been a PLR reset of 25 basis-points. And you also mentioned that the — that the incremental cost of fund, which was 7.66% in Q4 has come down to 7.3. So is it fair to believe or is it — is it correct way to look at it that whatever benefit you get on your cost of funds, only that will be transmitted on the PLR. So let’s say, if you take a call on the further PLR rate cuts that you’ll be doing, that will be solely dependent on how much funding cost-benefit you’re getting.
So in that scenario, if that is the case, one, in that scenario, what is the spread that you’re looking at that you would like to maintain on a going-forward basis, maybe if not quarterly, maybe from 1H and 2H, taking these two separately, where do you think your spreads would likely bottom out?,
Tribhuwan Adhikari
Quite naturally. I think I would — I hate taking money out of my pocket. So asking me to take money out of my pocket and giving it to my borrowers and thereby increasing my margins and spreads. So that’s not the right way to do it. Yes, we would be looking at on whatever sort of rate concessions we get-in our borrowings onto the borrowers. We’ve done 25 basis-points. Yes, as I said, said 2.66 to 7.66 to 7.3 that means almost 3636 basis-points is what the borrowing cost has reduced by. We’ll look in the coming days, let’s see what happens in the June MPC. In the coming days, we’ll see if we can pass-on this to the borrowers as well.
So definitely, whatever benefit we get-in lower borrowing cost as a result of the repo rate reduction will be passed on to the borrowers. And what was the second part of the question, Gaurav, if you can just —
Gaurav Kochar
Yeah, any spread that you would like to maintain? Today, let’s say you’re doing 2% spread about the difference between your yield and cost of funds. Would you like to say that probably maybe 190 or any number that you’d like to call-out, we would like to maintain that kind of right now.
Lokesh Mundhra
We are at 2.06.
Tribhuwan Adhikari
We are at 2.03. We’d like to maintain that. For that two things need to be done. Yes, we’ve got to be aggressive as far as borrowing is concerned, but of course, borrowing depends on-market conditions and T-bill rates and a lot, many other things which are not in my control. So that would be market-driven. Still there since we are the biggest HFC, we have a AAA-rated status, we would try to negotiate with our borrowers for better rates, number-one. And on the other part, as far as the lending cost is concerned, yes, I do agree that we are a company which is mostly focused on individual home loans.
Our competition is mostly with the banks. The banks have an advantage of lower-cost of funds because of the CASA deposits they hold, which are very low-cost funds. So competition in the individual home loan sector is very, very intense. The rates, they’re already down to 8% for new loans, right? Being a big player in the market, we cannot afford to set our rates higher than what is there in the competition because then we lose business, we lose growth. So it has got to be a very tight balancing act.
But what we need to do, I believe, as a company, we need to sort of enlarge the sales of whatever we are selling into more margin-accretive segments like IHL, as I said, is very, very competitive. Yields — the margins are very low in IHL. But there are other segments like if I talk about the LRD and the lab part of it where yields are much, much better, project finance is one sector where the yields are much, much better. Affordable housing is another segments where the yield is much, much better. We have done it last year and we have seen some traction.
For example, if I talk of project finance, last year, my loan growth was almost 47.5%. If I talk of the LAP and the LRD book, my growth was almost 20%. So we have been focusing there. But again, this book is small — small in size, comprising about 15% of my total book because 85% is housing loans. So we have to diversify into that segment and at the same time aim for lower borrowing costs so that my spreads which are at 2.06 remain at that level. So I would say spreads would — we would keep the spreads in the region of about 2%? Yeah.
Gaurav Kochar
Okay, sure. And sir, just last on the funding cost, the incremental cost, as you mentioned has come down to 7.3. But by when do you think the stock cost will also start sliding down towards that 7.3 mark or how much — how long will it take for your stock cost of funds also to kind of get a — get-in line with the incremental cost of funds?
Tribhuwan Adhikari
Yeah, I think that will take time. See, my entire borrowing book, if you see, my borrowing book is over, what INR3 lakh crores, approximately. Yeah. Borrowing book is INR270 quite a lot of it is on term loans, which are linked to repo rates, but quite a lot — a lot of it is NT is NCD NCDs which are more or less fixed in nature. So the repo rate cuts or the would be impacting my borrowings of term loans from banks immediately. But in the NCD, I would have to wait. And then, of course, there are some borrowings which we have done in the past at higher rates. We need to retire those borrowings and churn the portfolio so that we get fresh borrowing at lower rates. So all these things need to be done so that we are able to maintain our spreads and our NIMs.
Lokesh Mundhra
Yes, Sameer, I want to add something. So we have 45% of our borrowing is on floating-rate and that cost is gradually coming down. So ultimately impact would be if you consider yield rate and the borrowing cost impact would be in our favor on this.
Gaurav Kochar
Understood. Understood. Thank you so much, sir. That’s it from my side. All the very best.
Operator
Thank you. We have our next question from the line of Rajiv Mehta from Yes Securities. Please go-ahead.
Rajiv Mehta
Yeah, hi. Congratulations on a good performance. Sir, firstly, need some color on growth because in this quarter, our disbursement growth rate was healthy. So which market drove home loan disbursement growth in the 4th-quarter? And how was the performance of Hyderabad and Bangalore versus previous quarter wherein we had an issue. And if you can also comment about whether the traction in growth is kind of sustaining in April and May and what kind of disbursement loan growth are we targeting for the current year?
Tribhuwan Adhikari
Okay. Yeah, Rajeev, yeah, because Q4 was good as far as the disbursement was concerned, a 24% growth in disbursements overall. Coming to Hyderabad and Bangalore, yeah, these were two geographical territories which were impacted in Q3 for two different reasons altogether. Hyderabad has come back on-track, 100% back on-track and has delivered excellent results for us in Q4. Bangalore is now, I would say, if I were to put it on a scale, I would say 95% back on-track, track 5% pain we are still experiencing because of piling up of a large number of registrations, which has gone online or electronic in Q3 and Q4.
So I say as of now, I think both these regions are back on-track as far as what contributed to this 24% growth. I think overall, everyone has done well except my east. East is slightly expectations, I would say, East by East, I mean West Bengal, SAM and those seven sister states. But of course, they are a very small part of my overall book and the overall share of disbursements. But otherwise, by and large, all regions have done well. This year, I’m pretty optimistic. All regions would fire. There is nothing to hold us back. The trend of Q4 gives us a lot of hope that things would continue.
April has been satisfactory, I would say. Of course, not too much of growth. That is expected after a big month — in the month of March, it is traditionally expected April month is usually slow. May is booking put up is picking-up. So this year, I’m very optimistic that we would not face any problems in registering growth quarter-after-quarter. And I am aiming for a business growth that means a disbursement growth of at least 10% to 12% and an AUM growth also of double-digits.
Rajiv Mehta
Okay, great. Sir, PSU banks have been very swift in cutting new-home loan pricing. They have cut it by 50 basis-points in the last three months. So now is this starting to impact our BT request and BT out rates in April, May? And hence, can that also drive you know, more upfronting of a decision with regards to cutting rates? I know that a large bulk of the decision-making is rest with how the funding cost should move. But because of this competition, you know, downing their rates pretty fast. Is the BP pressure increasing and hence would we need to move slightly in an accelerated fashion in cutting our PLR and new-home loan pricing?
Tribhuwan Adhikari
Yeah,, you’re right. Yes, there is some BT pressure witnessed in Q4, especially for our existing — existing loans because banks have been very aggressive in cutting their rates and the rates they offer to existing customers moving out of other institutions is almost equivalent to the new-home loan rates, which is closer to 8%. So that is one issue which needs to be tackled and are BT out or rather, if I may Call-IT in general retention of portfolio is a major concern.
Yes, we are trying to address that by being sort of by offering on a selective basis by offering rates to our customers who want to move-out. So we’ve been doing that. But yes, it’s a very tight tightrope walk for HFCs as compared to banks. Banks do have the advantage of CASA deposits and slightly lower-cost of borrowings and of course, the banks have an advantage of having other products to sell like MSME or personal loans and other loans where they charge high rates and overall their NIMs don’t get impacted. For companies like LACHFL, which is a single-product company as we deal only in-housing loans and home loans, for us, it becomes very difficult competing with these banks.
Lokesh Mundhra
So this is a conscious call. We need to take.
Tribhuwan Adhikari
Yes, we want our book to grow, we want our disbursements to grow, but at the same time — at the same time, we cannot throw margin to the wins, right? We also need margins. We also need margins. So there’s going to be a tightrop, we have to walk all through. And I believe we would be successful in doing that. At the end-of-the year, I think we would have a disbursement growth of double-digits, loan book growth of double-digits. And I think we would be able to maintain our margins and NIMs at 2.6 to 2.8 clear.
Rajiv Mehta
Sir. Thank you so much and best of luck.
Tribhuwan Adhikari
Thank you, Rajiv. Thank you.
Operator
Thank you. A reminder to all participants, please restrict yourself to only two questions. We have our next question from the line of Abhiji Tibrewal from Motilal Oswal Financial Services. Please go-ahead.
Abhijit Tibrewal
Yeah. Good morning, everyone, and thank you for taking my question. Sir, just three questions while you have kind of articulated a lot around how you’re looking to grow what margins you’re wanting to maintain this year. First thing is first, sir, just trying to understand, I mean, first of all, I mean, congratulations to Mr Mundra for assuming this role of CFO. And that’s where my question was around what has prompted this change in the CFO?
I mean the CFO that we had earlier, right, know that he has resigned or moved on, he’s still with us in the company. So A, what is the thought process around this change at the CXO level? That’s the first question I had. And the other thing that I wanted to understand is, I think, I mean, last year, if I look at FY ’25, I personally take a lot of heart from the improvement in asset quality that you have demonstrated, which led to benign credit costs. We also know that you’ve been working a lot on resolutions on some of the exposures.
And I think I remember somewhere in media, maybe you appeared earlier in media earlier where you guided for some recoveries in project loans this year. So just trying to understand, I mean, A, how should we look at asset quality going ahead? And what is your assessment of credit cost for this year?
Tribhuwan Adhikari
Yeah. So let me answer why CFO change. Yeah. I think coming to your first question regarding change in CFO, this was a routine affair, not driven by anything special or anything of that sort. Still our previous CFO, he had been with us for a long, long, long-time, I think nine, 10 years, right. The management felt that — still has some time to go in the company. So maybe the management felt that needed some exposure in other verticals or other lines of business also. So just to give you an exposure, there was this change. Was moved into marketing and Mr Mundra, who is an old experienced and a chartered accountant at LIC, having worked in the investment department, all the three sections, the front-office, the back-office and the mid office, a good experience of finance and investment and borrowings.
So we decided to bring in. So that was all. There was no specific — any other reason other than that. As regard asset quality, yes, we’ve been working on asset quality for the past two years and there has been an improvement in quarter-to-quarter consistently. If I remember correctly, two years back, our GNPA was 4.41%. Last year we brought it down to 3.31. This year, we have ended at 2.46. I am pretty sure the asset quality will continue to improve. The provisioning requirements would continue to come down. There will be release of provisions. Yes, legacy wise, we still have a lot of about INR8,000 crore INR9,000 crores of outstanding portfolio in default about the project takes up almost about what 21% of — or 21% to 24% of that. There are some big sticky, lumpy loans with us at various stages of resolution.
Last Q — in Q3, we were able to resolve one big loan through ARC say INR250 crores, etc approximately. There are others which are, I would say at various stages of settlement, negotiations going on, some big loans being restructured very recently the executive committee of the Board has agreed to restructure one big loan of an outstanding portfolio of INR450 crores. Restructuring comes into effect in May. Of course, as per IBI guidance guidelines, it would continue to be in NBA for NPA for one more year and after one year, it would get-out of NPA. So May 26 is when this big loan would probably get-out of NPA. And we are also ARC sales, we have just done one. We have just done one but we are approaching ARCs talking in discussion with them, talking to them to offload some other loans as well.
We had offloaded a basket of loans, probably made a mistake there because not — we did not get any expression of interest as far as that basket was concerned. Probably I personally feel that rather than offloading baskets of loans to ARCs, we need to be — need to offer, I would say, break-up the basket into smaller, smaller, smaller chunks, which the NBFCs are able to assess and appraise quickly and probably come back with a positive reply. That is that, plus many cases in DRT and CLT and, etc., etc, etc at a various stages of, I would say that legal decision-making process, which as you all know takes time.
But overall, I’m very optimistic about the asset quality. We are aiming for our GNP right now at 2.46, aiming to bring it down to less than 2.2. Credit cost is as low as we can get 9 basis-points of the credit cost as on 31st of March. I’m looking to keep it there, worst-case scenario, restricting it to by nine to 15, whatever it is. So the asset scenario, the asset quality scenario looks good.
Abhijit Tibrewal
Got it, sir. And just one last datakeeping question. In every earnings call, we shared the segment-wise Stage 3 numbers. So if you can just share that.
Tribhuwan Adhikari
Okay. Abhijit, yeah. You usually ask for this every time. So I have it ready with me. Use to answer this. Yeah. So in the individual home loan, what do you want, you want the EAD and the EAD percentage?
Abhijit Tibrewal
Yes, sir. I mean both of the things work. If you can just share that segment-wise.
Tribhuwan Adhikari
Okay. In the individual IHL, the individual home loan is VAD is INR2852 crores and the EAD percentage is 1.09%. Right. In the NHC and projects, this is EAD is INR3,523 crores and the EAD percentage is 24.52%. In the NHI, the non-housing — non-housing individual, it is — the EAD is 1225 and the EAD percentage is 3.85. And overall, the EAD is 7600 and EAD percentage is 2.47. Correct.
Abhijit Tibrewal
Got it, sir. This is useful and I wish you and wish you and your team the very best. Thank you so much.
Operator
Thank you. We have our next question from the line of Himanshu Taluja from Aditya Life AMC. Please go-ahead.
Himanshu Taluja
Thanks for the opportunity. Most of the questions have been answered. Just check my end. Sir, can you just throw out in the year-end interest income of the margins of 2.72%, how much of the NII get support of the — of the resolutions of the bad assets? How much is there and potentially is there still a good pipeline which is there for this year? And can we expect some bit of interest income recovery from those — from those stress assets as well? So that’s my first question.
Tribhuwan Adhikari
Yeah, Himanshu, according to your the asset part of it or the recovery part of it. Yes, we still have a total EAD of what INR7,600 odd crores, right? And in project it is 3,523 and the other is almost — almost near that, almost near that or a little bit more than that. So we are working on both the fronts. The retail piece are loans, again, we have divide into two-parts, the small loans and the big loans. Project, of course, most of it is these big-ticket projects, loans we have given which are lying in default upwards of INR50 crores and all.
So the project part is slightly tricky because these are big loans, many of these are in litigation in various courts such as ERT, NCA and CLT and, etc., etc., et-cetera, that it takes its own course, its own time. But at the same time though we are in the courts, we are extending offers to these delinquent borrowers to come up and settle and settlement also the basic thing what we are saying, we are not going to settle before below principle for the outstanding principal, okay, we are willing to take a hit on the accrued interest and the interest and other recoveries, etc., etc.
So there also some progress is being made in some cases. In some cases, it is out only on the courts. On the retail front, the collection efficiency has been holding up. It is good. Not too much of a change in DPD — the DPD delinquency is being noticed. All-in on looks — all-in all looks good from the recovery percentage or the, I would say asset piece is concerned and what is the first part of the question?
Himanshu Taluja
Sir, just a first question which I have, how much of the interest income recovery or you can say the margin support that you accrued during the year because of some of the resolutions which has happened during the — during FY ’25?
Lokesh Mundhra
Yeah, yeah, Himashu, yeah. So per recovery from NPA, that is created to my interest income. For the financial, it was around INR400 crores.
Himanshu Taluja
Okay, which has been passed to the NII.
Lokesh Mundhra
Yeah, yeah. It’s a part of NIA only.
Himanshu Taluja
Okay, got it, got it, got it. Got it. Fair. Thanks, sir. And sir, secondly, just wanted to understand because if we look at your project financing book has been on a continuous pace on a declining trend and this quarter we have seen some how do you expect over the course of this project financing book to grow from here? And also if you can through from the non-HL also, currently your non-HL book is growing at 11.5%, how do you expect this growth run-rate to be during the course of the coming fiscal year? Thanks.
Tribhuwan Adhikari
Yeah, the project finance book has seen a shrinkage and that is basically because — not because of any lack of focus or anything. Most of it is some of these big project finance loans which we had given in the past three years, four years back at higher rates of interest, 11.5%, et-cetera, they have gone out of our books. Therein, of course, we had to take a call whether they were — these — most of these builders were expecting rates between 8.5 and 9.5, which we felt was not tenable for us, right, because you have to take a call between the margins and the lendings that you do.
So we did try to hold-on to them, but again, the rates they were asking were in our opinion and not tenable. So we had to let them go, of course, with a very heavy heart. But as far as the book is concerned, the disbursements have been good. Project finance last year has shown a disbursement growth of almost 47.5%. But again, while saying that, this is a very small part of my book, right? Project finance is only 3% — 3% of my portfolio. Last year, we have disbursed about INR4,200 crores in project finance. There again there are two things which are driving us.
Number-one is of course the rate at which these builders are demanding. Let me tell you, this is one space where a builders, at least the top-rated builders, the showbars, the prestige, the Lodhas, they are asking for rates which are almost equivalent to IHL rates, 8.5%, 8.25 and surprisingly, some of the banks are willing to offer them that. So we are not going into that. So we are trying to make sure that we get some decent rates, which are beneficial for us. But we are focused on project in a limit — in I would say, not in a very aggressive way, but we want to grow this book.
This year, we have taken our target of doing INR10,000 crores through project finance as against INR4,200 crore of last year. So we would be looking to grow this book selectively by looking at builders with reputation, with pedigree, with sort of the ability to deliver projects in time and at the same time, willing to give us some margins which are sustainable.
Himanshu Taluja
Sure, sir. Thanks. Thanks. Thank you very much.
Tribhuwan Adhikari
Thank you.
Operator
Thank you. A reminder to all participants, please restrict yourself to only two questions per participant. Should you have a follow-up question, we request you to rejoin the queue. We have our next question from the line of Sheya Shivani from CLSA. Please go-ahead.
Shreya Shivani
Yeah. Thank you for the opportunity. I have just two questions. First, just wanted this clarity on the on the project resolution that you spoke about. Last quarter, you said there are four to five more assets getting resolved in NCLT. So the negative net slippage that we have this quarter, how many projects got resolved over there? I mean just some color on that. And second is on affordable housing. Now that you are closer like you must-have — you’ve already launched some products, et-cetera, how many branches would — would affordable housing product be available in FY ’26 and ’27? Some guidance over there would be useful. Thank you.
Tribhuwan Adhikari
Coming to project loan resolutions, right, in Q4, there were no big project loans which were resolved. Q3, there was one big case, which went to ARC, as I said, INR250 crores. In Q4, we could not get a resolution on any of the big project loans, so I have to say. So that was slightly disappointing. But again, that was expected because all these big project loans are in on legal dispute, lots of disputes going on in CLT and, DRT, we get some order from somewhere and the borrower runs to DRT and gets our things stayed, we try to auction something and then and there are cases filed in court. So these are difficult loans. I think what is left now are the difficult loans.
But still we are optimistic of resolution, as I said to an earlier question that we are exploring both ways. It is not that we want to take them to court and hang them. They are open and amenable to settlement if they are coming to us and offering some reasonable settlement. And when I say settlement, I say we have a policy here at and in-principle. So the project loan, there was no big resolution last quarter. But again, these are all big cases where you never know what may turn, what may happen, whatnot, what thing, who might come up for settlement.
So we are optimistic. This year also, we would see a few resolutions. We expect at least two, three resolutions this year also. Let’s see how it goes. But of course, you cannot give a guarantee that these are going to be resolved, right? You can only be hopeful and move-in the right direction. Both it is the legal part of it and the carrit is the settlement part of it. So we are exploring all options. Ultimately, we want this portfolio to go out of our books so that provisioning requirements do come down. And as regards affordable, yes, this was one segment which was missing from our portfolio.
We were not into the affordable segment as such. We had primarily been focused on individual housing loans to the prime segment. Last year towards the end of August, we came up with this affordable segment product. We have been slow and it is deliberate. We have been slow in expanding into this area because we do realize it’s an area where we do not have any past experience or expertise. So — or and plus this is an area where there is every possibility of higher delinquencies, if not handled correctly, if the credit appraisal and the marketing teams are not properly trained.
So we are going at it slowly. Last year in the affordable segment, we could disburse INR432 crores. Yes, slightly lower-than-expected. We were expecting at least INR1,000 crores of disbursement to come through because we had lost in August, so we had almost one-half year. This year also, we would be focusing more on the infrastructure and the kind of support and training experience we are able to give to people, the comfort level in handling such cases so that delinquencies don’t rise. We have set ourselves a target of INR2,000 crores this year. We are very clear that this is going to take two to three years for this segment to build-up. And we are also convinced that this is the segment where we have to be and this is a segment where everybody in the NBFC and the HFC space is entering. There is going to be competition, yes, but of but of course, this is one segment which is going to give me margins.
So if I’m going to hold-on to my margins or increase my margins, I have to be in this segment. So INR200 crores is what we are looking at this year.
Shreya Shivani
Got it, sir. Sir, just a follow-up on the first question. Then what is the recovery that has come in this quarter in the Stage 3? I know you’ve said write-off is there of INR171 crore. But there are some recoveries also, right?
Tribhuwan Adhikari
There are recoveries. For the year, the total net recovery is around about INR1,800 crores. In Q4 — Q4 it is INR650 crores, right. INR615 crores INR615 crores, I’m told. So for the year, INR1,800 crores of net recovery, net recovery means recovery plus creations. So 1,800 for the year and 615 net recovery for the quarter.
Lokesh Mundhra
If you want to cost recovery, it is INR4 than INR1,000 crore. Gross recovery is more than INR1,000 crore for this quarter.
Tribhuwan Adhikari
Definitely to be more than net is INR1,800 crores. Yeah. Gross will be much, much higher.
Shreya Shivani
Okay, sir. Thank you so much.
Operator
Okay. Thank you. We have our next question from the line of Kunal Shah from Citigroup. Please go-ahead.
Kunal Shah
Yes, thanks for taking the question. So firstly, if you can highlight out of 32% bank loans, how much is repo linked and out of 55% NCD, how much would be coming up for maturity or refinancing this year? Just to gauge how much of a benefit we can see in the funding cost over next 12 months.
Tribhuwan Adhikari
No, overall, if I say my borrowing book, it’s 55% fixed, 45% floating linked to the repo rate right so that is the thing and okay she want to take-over what is the what was the second question?
Kunal Shah
Sorry, the first question itself is out of 32% bank borrowing, how much is repolling? And out of NCDs, how much would be coming up for refinancing or maturity in this year?
Tribhuwan Adhikari
So for, out of 32% of our total bank borrowing, so that is all, mostly is linked borrowings, very few — very few cases is MCL linked.
Kunal Shah
Okay. MCL is not much largely EBLR and yeah so repoint C moved, yeah.
Tribhuwan Adhikari
Mostly it belongs to EBLR only.
Kunal Shah
Okay and now just to get the sense to get the benefit on the NCI side on the refinancing, how much of this 55% would be coming up for maturity in FY ’24? Okay.
Tribhuwan Adhikari
Sir, almost INR30,000 crores entities are going to mature. So in that INR30,000 crores will be repriced. And so rates are now coming down, so definitely will borrow money on lower rates.
Kunal Shah
Yeah, that’s what. Yeah. So almost 30,000 entities will get repriced over the year and no chunkiness in the first-half or something of that sort. It should be evenly spread across the year.
Tribhuwan Adhikari
Across the — across 30,000 across the year, 45.
Kunal Shah
Okay, got it. Perfect. And just a clarification, this PLR, you said the entire effect will play through by 1st of July. It’s not like the pass-on or maybe the effectiveness will start from 1st of July. 99% of home loan portfolio will be at the 25 basis-points lower rate by 1st of July. I think generally three months for the entire reset. Is that correct in terms of the understanding?
Tribhuwan Adhikari
And our portfolio, we are not — we are not saying that entire portfolio we repriced at lower PLR from 1, but in most of the cases and the major part of our portfolio will be repriced from 1st of July. In some cases, it will have a monthly reset.
Kunal Shah
Okay. But majorly it will happen from 1st of July. So it will be effective from 1st of July, even though like we have reduced the rates from April, but in terms of the transitioning to the customer, it would take effect from 1st of July.
Tribhuwan Adhikari
Yeah. Correct.
Kunal Shah
Okay. Okay. So if you had to look at next quarter, maybe only a part which you mentioned might get repriced, it would not be a substantial one, but maybe for 1Q it will be a relatively lower proportion.
Tribhuwan Adhikari
No, Kunal, we couldn’t get you clearly. Can you now.
Kunal Shah
So we have cut PLR by 25 basis-points with effect from April. I am saying in terms of passing it on to the borrower, okay. It happens now so the entire 99% of our floating-rate book on the individual side will entirely be repriced 25 basis-points lower over next three months by July or maybe this pass-on actually will take effect on a quarterly basis.
Tribhuwan Adhikari
No, it’s Kunal, it’s like this. My entire loan book is divered into two-parts. There are a small portion of loans which are having a monthly reset. So those loans where the reset is monthly, the rate — the reduction in the PLR has already been passed on from 1st of. Yeah, but a major chunk of the book, the reset is quarterly, right? So all those which quarterly reset would experience the lower rates or from 1st of July.
Kunal Shah
Perfect. Got it. Yeah, got it. Yeah. So this quarter is that major portion starts from 1st of July.
Tribhuwan Adhikari
Correct. Yeah.
Kunal Shah
Okay. Okay. Yeah. Thanks. Thanks, yeah.
Operator
Thank you, sir. We have our next question from the line of Shweta from Elara Capital. Please go-ahead.
Shweta
Thank you, sir for the opportunity. Sir, couple of questions. The first one, sir, with your increased vigilance now on the affordable portfolio, wherein we have seen regional sort of delinquencies flaring up. And also given the rate we’re now coming to four even on the project loan side, so where do you see the levers to this 12% growth target? That’s the first question.
Second question, just taking queues from the previous participant. So given the fact that the rate transmission will be largely effective July 1 onwards, so do we see net interest margins at least in the interim quarters to sort of exceed 2.6%, 2.7% target, which we are sort of highlighting? Thank you.
Tribhuwan Adhikari
Ashwitza, coming to levers for 12% growth. Yes, I do agree that the home loan market is getting very, very competitive with banks also in the fray, banks having the advantage of slightly lower-cost of funds as compared to NBFCs and HFCs, yes, it’s a very, very murky world there and a very, I would say a cutthroat world there. But yes, but there is the potential — if you talk about the potential, if you talk of demand, the demand is there. And it is not that everybody wants it at 8%. There are segments of society who are willing to pay slightly higher also.
So I believe the challenge for us is how do we approach those people who are going to pay us at slightly higher rates. And just to sort of clarify, there are lenders in this segment of having NIMs of almost 5%, 6%, 7% also. So there is a market. Of course, they are small in size as compared to ours. They are there. But there is a market there. So we’ll have to find our way into the market. Yes, it’s going to be a tight trope, as I said earlier, right? We have to be selective at what sort of cost we want to lend the loans. That would largely depend on our cost of borrowing, how much we are able to leverage our size or leverage our rating to get lower-cost of funds.
So I don’t see any reason why we should not — because we are not abandoning the path of growth. And because there were two — there are two routes we can take. We can say that, okay, we will not look at growth, we will look at margins only. Or the other, we can say that we will not look at margins, we’ll look at growth only. We are not doing that. We are trying to balance both of them together so that we get growth on the loan book and the disbursement book.
And at the same time, we are able to maintain our margins. Our margins are 2.72%, NIM at 2.72% as at the end of 31st March 2025. I don’t see any major shrinkage in the NIMs. Worst-case scenario, I feel that we should be able to maintain it at some around about 2.6 to 2.8., does that answer your query?
Shweta
Yes, sir, fairly answered. Thank you.
Operator
Thank you. We have our next question from the line of Rajiv Pathak from GC Holdings. Please go-ahead.
Rajiv Pathak
Good afternoon, sir. Sir, out of this INR9,000 crore of the defaulter loan portfolio that you said you are carrying, what is the recovery targets that you would have for this year and the next year?
Tribhuwan Adhikari
This year and the next year.
Rajiv Pathak
Yeah. Well, FY ’23 FY ’25 on-going to next year and rather focus on this year.
Tribhuwan Adhikari
Okay. And then last year Rajiv, last year, as I said for the full-year, my net recoveries were about INR1,800 crores, right? So this year also we’ll be targeting a similar amount, upwards of INR1,500 crores.
Rajiv Pathak
So this INR1,800 would be like fully written-off accounts or how would this be?
Tribhuwan Adhikari
No, no, no. This would be a mix of both. There would be some accounts which we would write-up because we have a write-off — technical write-off policy. As per the technical write-off policy, any loans where the provisioning has reached 100%, they need to be written-off. So don’t do any pick and choose that I’m going to write-off X loan and not y loan that is guided by the — it is a mathematical formula. So I have no leverage or leeway in saying that I would write-off this and not write-off that. So there will be some write-offs coming off. And other than that, there would be recoveries also. So net-to-net, I’m targeting anything upwards of INR1,500 crores this year.
Rajiv Pathak
So then basically then anywhere between INR800 crore to INR1,000 crores of recoveries can flow-through the P&L in terms of the recoveries or the write-back of provisions. Would that be a fair thing to see?
Tribhuwan Adhikari
If that would be a fair sense. That would be.
Rajiv Pathak
Okay. And sir, the next question is on the yield. So how much would be the yields on our affordable housing and the retail lab portfolio?
Tribhuwan Adhikari
Well, for affordable housing, our yields are upwards of 11%, right? We have been conscious in not pricing it too high to 13% to 14% because we do not want to the borrowers also. So yields in affordable housing would be 11% to 12%. And on our lap, there would be upwards of 10.5% to 11%.
Rajiv Pathak
Okay. Thank you so much and wish you all the best, sir.
Tribhuwan Adhikari
Thank you, Rajiv.
Operator
Thank you. We have our next question from the line of Siraj Khan from Ascendant Capital. Please go-ahead. Hello Siraj. Saj, are you there? I think we have lost. Yes. Yes, Siraj. Siraj, we can’t hear you. Can you please rejoin the queue? We’ll move on to the next participant. We have our next question from the line of Rakesh Kapoor, Rakesh Kumar from Valentis Advisors. Please go-ahead.
Rakesh Kumar
Hello. Can you hear me, sir?
Tribhuwan Adhikari
Rakesh, I can hear. I can hear.
Rakesh Kumar
Yeah. Just slightly taking this query of margin better structurally. So I was just you know, because banks loan — housing loan basically individual housing loans are completely EBLR linked. And till the time we have a trajectory of repo rate cut may be happening for maybe another 50 or 75 bps, but they will keep on passing on, right? Banks will keep on passing. And we are directly competing with them in terms of ticket size, individual housing loan ticket size that we have.
So considering that, so either we take a hit on the disbursement pace or we take a hit on the credit yield. So just I was thinking that, so like the option that we have that we do the repricing as and when our funding cost is coming down, would that logic remain valid considering the way competition will pan-out.
Tribhuwan Adhikari
Well, Rakesh, to be very honest, yes, we are — we are competing. Yes, I did make a statement that we would link our rate cuts to our cost of borrowing. Yes, that is true, very much true. Then we will also be reviewing the competition in terms of what the competition is doing and what we need to stay competitive, because I cannot say I will run away from the market and not be competitive and expect to grow at what we are trying to grow — trying to grow at double-digit. So we have to be, I would say, willing to flexible in the sense that, yes, if it comes to that, if it push comes to a shove, we should be able to take a call.
But my guidance is that, yes, we would be careful while passing on the repo rate cuts on to the borrowers. So as to say that we have the best of both worlds, we do — we do not compromise on growth and at the same time, we do not lose out on margins also. So as I said, it’s going to be tough, it’s going to be very, very tough. It’s going to be a tight rope walk for us. I realize that as a company, we have to be on our toes, keep eyes ears, everything open, noses to the ground, a feet-on-the-street. But we’ll have to take a call, we’ll have to be flexible and not say that, no, I’m going to do — I’m going to pass-on rates only when my borrowing costs come down?
Rakesh Kumar
Got it. And sir, just second question with respect to initially borrowings. So the number like as the composition remains at around 4% of the total borrowing that we have. So what is the scope of raising that competition further from here?
Tribhuwan Adhikari
Yeah. NHB borrowings, Rakesh, let me be very honest, there are — yes, NHB offers us two types of borrowings. One is for the marginal segments, the tribals, for the Northeast, for women, for affordable. That is very competitive. We get it around about 5.5 to 6%, right. But the rest of the borrowing is at rates which are higher than what we can get from the open-market. So it’s a really, I would say a catch ’22 situation for us and NHB being the, what you call our supervisor and it does not offer us the benefit of 90, you take only the low-cost ones and don’t take the high-cost ones. It is usually offered in a basket where they mix-up the low-cost along with the high-cost and we try to see that the average works out to at least my average borrowing cost from the market.
So right now, there is not too much of scope. We have been in discussion with Chairman NHB and the refinancing team of NHB that they need to be competitive. If we can — NHB is a government entity, if we can get it at 7.7 why should they get it at 8%? They should be able to get it government backing and government guarantees, they should be able to get it at lower rates. So let’s see how it pans out. But this year, I’m hopeful that from what I hear, what I — what I’ve talked to the Chairman or what we’ve discussed. This year, I’m hopeful that NHB will be able to give us now NHB has come out with a formula.
They are not sort of picking and choosing that, no, I like LHC housing finance, I give it more. I don’t like Punjab bowsing, I give it less. They have come out with a specified formula. So I believe the transmission of whatever lending which LIC does will be fair and equitable. And all that we are asking them that we need the rates also to be fair and equitable for all. So let’s see how it goes.
Rakesh Kumar
Got it. All right. Thank you. Thank you so much.
Operator
Thank you. The next question is from the line of Baskar Vasu from Jefferies. Please go-ahead.
Bhaskar Basu
Yeah. Thank you. Just had a clarification. So of the INR450 crore of income NPA recovery which is in which is part of the NII, how much of it came in this quarter? And secondly, the increase in other income this quarter seems to be quite sharp, so what is driving that?
Lokesh Mundhra
Yeah. So for this quarter, NPA recovery is around INR16 croress which is — which is — which we are creating to interest income.
Bhaskar Basu
And for the full-year, this number is?
Tribhuwan Adhikari
615. Quarter NPA recovery is INR615 crores.
Bhaskar Basu
INR615 crores. Okay.
Tribhuwan Adhikari
Impact on interest income would have been INR16 crores, 16 impact on it.
Bhaskar Basu
And for the full-year, the credit on the interest income?
Tribhuwan Adhikari
INR16 crores is credit or
Bhaskar Basu
Full-year.
Tribhuwan Adhikari
Full-year it is crores. So around INR400 crores.
Bhaskar Basu
And the increase in other income this quarter is due to?
Tribhuwan Adhikari
Other income other than?
Bhaskar Basu
INR96 crores are going to one —
Lokesh Mundhra
Recovery from write-off cases for this quarter it is INR100 crores, INR100 odd crores and for the full-year, it is more than INR200 crores.
Bhaskar Basu
So just to be clear, the recoveries from right of your — I mean is part of the other income. And in addition, there is about INR16 crore of recoveries.
Tribhuwan Adhikari
And other income from written-off cases, it is more than INR100 crores for this quarter.
Bhaskar Basu
Understood. And secondly, just on the opex side, there is a bump-up in the opex. We see this seasonally in the 4th-quarter. So what — is it mostly commissions or what’s driving that?
Tribhuwan Adhikari
Just as well. Anyway, every 4th-quarter, you normally see a bump-up in your opex right mostly it is due to advertisement publicity, whatever is unspent or committed is booked, then you have CSR, CSR also contributes to a big chunk of this OpEx. Competition contest for — because Q4 normally is a business quarter, so to boost the sales, we do give contests and competitions are not only our people in the field side, then you have fees and commissions because business increases on actually fees and commission also goes up.
Apart from that, this year, there are two others. One is in the month of February, we just concluded our wage revision for all the 2,500-odd employees of the company. And this happens once in five years. So of course, we provide for these wage revisions on a quarterly basis, but the provision is normally at 15% and this year we have concluded the revisions at 17%. So that 2% gap would also have come into — into the opex. And one more thing, one change we’ve made this year is our hardware, computer, hardware, etc., whatever we buy, until last year, it was under the capex model, whether we were purchasing them and capitalizing it, which would be we form — which would form a part of balance sheet.
This year we have decided not to spend too much of money on the hardware, but since we need it, we are going to — we have gone into an opex model, right, in the sense that we are leasing. So if I need a server costing some around about INR30 crore INR40 crores, earlier I would have paid the full INR40 crores to the vendor and owned the server. This year, we are taking it on lease for the normal SLA the service-level agreement is for three years, extendable by two more years. So I’m taking it on lease. So I don’t have to capitalize it. So it is coming into expenses. So these are major reasons for this increase in expenses.
Bhaskar Basu
Okay. Okay. Understood. Thanks a lot.
Operator
Thank you. Ladies and gentlemen, this would be the last question for today. And I now hand the conference over to the management for closing comments.
Tribhuwan Adhikari
Well, thank you, friends for all the queries. I think very pertinent and to the point and yes, thank you for giving us an opportunity to explain our views, our guidance, what we are thinking of for the company in the financial year ’25, ’26. Let me assure you that the company is poised to deliver an excellent performance, both in terms of our disbursements, that is sales, both in terms of the loan book growth and also in terms of margin. So basic the focus of the company will be on growth and margins. And the third-part will be the asset quality, which has been improving and which we expect to improve further. Thank you. Thank you so much for your support.
Lokesh Mundhra
Thank you,.
Praveen Agarwal
Thank you, sir. On behalf of Axis Capital, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.