Manappuram Finance Ltd (NSE: MANAPPURAM) Q4 2026 Earnings Call dated May. 04, 2026
Corporate Participants:
V.P. Nandakumar — Chairman and Managing Director
Buvanesh Tharashankar — Chief Financial Officer
Bindu A.L. — Chief Financial Officer
Manoj Pasangha — Co-CEO, Asirvad Microfinance Limited
Rajesh Namboodiripad — Chief Financial Officer of Asirvad Micro Finance Ltd.
Analysts:
Abhijit Tibrewal — Analyst
Piran Engineer — Analyst
Zhixuan Gao — Analyst
Shreepal Doshi — Analyst
Rohit Ahuja — Analyst
Rajiv Mehta — Analyst
Unidentified Participant
Prithviraj Patil — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Manappuram Finance Q4 FY26 Earnings Conference Call hosted by Motilal Oswal Financial Services Limited as a reminder, all participant lines will be in the lesson 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 then zero on a touchstone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Abhijit Tebrewal from Motilalo Swole Financial Services. Thank you. And over to you sir.
Abhijit Tibrewal — Analyst
Yes, thank you Yusuf. Good evening everyone. I am Abhijit Kabrewal from Motilal Oswal and. And it is our pleasure to welcome you all to this earnings call. Thank you very much for joining us for the Mannapuram Finance call to discuss their Q4 FY26 earnings. To discuss the company’s earnings I am pleased to welcome Mr. V.P. Nandakumar Managing Director Dr. Sumita Nandan, Executive Director. Mr. Bhubanesh Tarasankar Group CFO Ms. Bindu El, CFO Mr. Manoj Pasanga Co CEO, Ashurbad Microfinance. Dr. Roy Varghese Co CEO, Ashurbad MicroFinance Mr. Rajesh Nambuddi Path CFO Asherabad MicroFinance. Mr. Kamal Parmar, Head Vehicle and Equipment Finance Mr. Rakesh Sharma, Co CEO, Mannapuram Home Finance. Mr. Suvil P.S. Co CEO, Manapuram Home Finance and. And Mr. Robin Karuvelli CFO, Manapuram Homepanes. On behalf of Motila Loswal we thank the senior management and the investor relations team of Mannapuram Finance for giving us this opportunity to host you today.
I now invite Mr. Nandakumar for his opening remarks. With that, over to you sir.
V.P. Nandakumar — Chairman and Managing Director
Thank you Abhijit. Good evening everyone and thank you for joining us for Vandavaram Binance Q4 and full year FY26 earnings call. I sincerely appreciate your continued engagement and support. Today I’ll briefly share our perspective on the operating environment, key highlights for the quarter and the year and our strategic direction as we enter FY27 in its geopolitical tensions. The fourth quarter of FY26 marked a relatively stable operating environment for the NBSC sector. Though the macroeconomic indicators continue to show resilience supported by speedy consumption trends, improving rural demand and stable credit growth.
It is tempered by the headwinds arising from the geopolitical tensions such as inflationary tendencies, likely fading up of interest rates, weakening of rupee etc. The lending landscape remains competitive with sustained focus on improvements in asset policy and prudent underwriting standards. The sector also continued to witness challenges in certain unsecured segments, particularly microfinance, albeit early signs of recovery, oil prices remain supportive during the contest. The reinforcing demand for secured lending products such as gold loans continue to offer liquidity, flexibility and lower risk.
Against this backdrop, our approach remained consistent protecting asset quality and ensuring sustainable growth during the quarter. We also observed sustainable growth in our hold on portfolio with AEM improving subsequentially after a softer phase period in the year while competition remains elevated. Higher growth, higher economic activities, rural demand shift in the consumer spending pattern as supporters for gold loan disbursements across segments, trends remain divergent. While gold loans is largely instrumental to our growth, Micro finance is still in a recovery phase with modest AEM expansion and improvements in asset quality.
The housing finance business remains stable. The portfolio growth is muted. We remain focused on asset quality, operating efficiency and risk adjusted growth. We are taking a cautious stance in microfinance, aligning expansion with improvements in collections and borrower leverage while continuing to scale other segments and prudently looking ahead. We expect steady momentum in gold loans fueled by consumer demand. Along with this, our diversified portfolio will enable a balanced and resilient growth for Q4.
FY26 delivered a strong performance with growth anchored by our core golden business and supported by disciplined risk management across portfolios. Consolidated revenue for the quarter stood at 2614 crore reflecting PoI QoQ growth of 10.7% and 11% respectively. Profit after tax stood at 405 crores for the full year FY26. We reported revenue of 9509 crore PAT of 993 crore per capita position liquidity buffers and provisioning coverage remains strong providing resilience and flexibility as we move into next financial year.
Gold on business the course tank for golden segment continue to demonstrate strong momentum in Q4 reaffirming its role as the cornerstone of our business. Golden IAM stood at 50,953 crore registering 99.1% year on year and 31.5% quarter on quarter in the segment continue to contribute to the majority of our consolidated AEM and earnings. Asset quality in this portfolio remains robust supported by conservative LTV norms, frequent monitoring and strong operational controls. Introduction of the new lending against old collateral guidelines of the regulator has enabled us to broaden our product offering in a structured manner.
We have introduced consumption loans catering to the household and personal financing needs and income generating loans designed for small business and livelihood purpose allowing us to serve the differing needs of our borrower base more effectively. Each of these products operate within defined cartrails on LTV tenor and customer eligibility. Either new regulations requiring credit assessment of the borrowers will improve our customer due diligence resulting in lower delinquencies. Cross selling of other products to our customers thereby improving their valid share over lending.
Partnerships provided a further origination channel extending our reach to geographies where we have limited presence. We also continue to invest in digital capabilities, analytics and process efficiencies which are enhancing customer experience, improving turnaround time and driving productivity gains across our branch network. Microfinance continued to operate in a cautious environment during Q4FY26. The strategic actions we initiated over the past few quarters including tighter underwriting, calibrated disbursements, strengthened collections and geographical optimization are beginning to yield gradual improvements.
We expect the business to stabilize progressively with a sharper focus on sustainable growth and improved risk adjusted returns across virtual finance, MSME and allied lending and affordable housing finance, we are pursuing a calibrated growth strategy that prioritizes risk adjusted returns over volumes. Underwriting standards have been tightened, exposure in select segments have been moderated and collection infrastructure have been strengthened. These segments witnessed a moderation in portfolio levels reflecting a calibrated approach that prioritizes portfolio quality and profitability over aggressive expansion.
Asset quality continues to remain the key focus area. Consolidated GNPA stood at 2.14. Percentage provision coverage ratio remained at 27.34%. While stress persists in certain portfolios, our secured book continues to perform strongly. Our balance sheet remains healthy. Capital adequacy at 21.3%, well above regulatory requirements. Strong liquidity position with diversified funding sources across banks, capital markets and securitization, we continue to maintain a conservative positioning stance and closely monitor early warning indications across businesses.
As we enter FY27, our strategic priorities remain clear. Strengthen leadership in gold loans through scale technology and customer centric innovation. Accelerate stabilization of micro plants and other micro lending segments with a strong focus on asset quality. Maintain balance sheet strength with a disciplined capital and liquidity management. Enhance operational efficiency through digital adoption and analytics. Continue proactive regulatory engagement and uphold best in class covenant standards.
While near term challenges persist in certain segments, we remain confident in the long term structural opportunity in secured lending, particularly gonos. With our strong brand, extensive distribution network and disciplined execution, we are well positioned to deliver sustainable growth. I would like to thank our employees for their dedication, our customers for their continued trust and our investors for their unwavering support. We remain focused on building a resilient future ready franchise while delivering long term value to all stakeholders.
With that, I will now hand over the call to Our Group CFO Mr. Bhones Tarages sir for a detail to Financial Performance Statement after which we’ll be happy to take your questions. Thank you.
Buvanesh Tharashankar — Chief Financial Officer
Thank you Ranuvar Sir Good evening everyone. Thank you for joining us for the discussion on our financial results. For the last quarter and year ended 3-31-2026 our consolidated AUM for Q4 was 63,798 crores up 22.4% sequentially and higher by 48.3% year on year. Gold continued to be our key growth driver with an AUM of 50,953 crores up 31.5% quarter on quarter and higher by 99.1% year on year. Supported by the gold price and strong customer demand, Gold loan business constitutes 80% of the consolidated AUM versus 59% in the prior year.
Consolidated PAT before OCI and minority interest was 405 crores for quarter four which was up by almost 70% quarter on quarter. For FY26 our consolidated PAT before OCI and minority leaders was at 993 crores down 17.5% year on year. Coming to the standalone business, our standalone aum MAFL for Q4FY26 was at 55,952 crores, up 26.6% sequentially and 69.4% year on year. Gold on AUM in standalone business was 48,814 crores up 31.4% quarter on quarter and higher by 98% year on year. Gold constitutes 87.2% of our standalone AUM versus 75% in the prior year.
For the quarter our standalone path before OCI and minority interest was at 376 crores marginally down 1.5% sequentially and what 9.4% year on year. Standalone PAT included impact of a one time write off on vehicle loans amounting to 84 crores for the year. Our standalone pack before OCI was 1,525 crores down 14.5% year on year. Standalone GMPA as on 31st March 2026 was at 1.81% versus 2.61% during the previous quarter and the credit cost in the standalone entity for the quarter was 1.2%. Standalone borrowing cost has gone down by 17bps in Q4 FY26 coming to the gold loan business during the quarter we were able to add 3.16 lakh new customers and outstanding number of customers stood at 25.2 lakhs.
Tonnage grew by 3.82 tonnes in Q4. Our average gold loan LTV was at 57% in Q4FY26 and the online gold loan book accounts for 92% of our total gold loan book. Coming to the microfinance business, Positive Trends emerging in Q4 There was a growth in the MFI EVM of 176 crores during the quarter. Disbursals closed at 1086 crores versus 680 crores in the prior quarter and the new book constitutes approximately 55% of the MFI portfolio. As at March 8th Aseevad Aums stands at 6794 crores which includes gold loan AUM of 2139 crores up 11.9% quarter on quarter and down by about 17% year on year.
Path before OCI was at 13 crores in Q4FY26 versus loss of 156 crores in Q3FY26 adjusted for 1 offs. Losses were flat quarter on quarter. GNPA is at 4.85% with net NPA at 1.6% down sequentially versus the prior quarter. Ashirwad Crar currently stands at 20.2%. Coming to the Vehicle Finance business In vehicle finance business we have reported an AUM of 2991crores down 16.8% quarter on quarter and 37.3% year on year. The focus in the vehicle finance business through several actions including having separate collections teams handling soft and hard buckets, focus on digital reminders to improve match clearance and focus on match bounce collections to improve current market resolutions.
Total GNP showed a slight improvement sequentially. GNPA percentage aum was at 10.4% versus 13.7% in the prior quarter. Loans to MSME and allied businesses stood at 3351 crores with a disbursement of 254 crores in Q4 and GNPA was at 7.1% versus 6.1% in the earlier quarter. The home loan business with a total book of 1852 crores was down 2.6% quarter on quarter but higher year on year by about 1.5%. The board has declared an interim dividend of 50 paise for this quarter. Company is well capitalized With a capital adequacy ratio of 21.32%. And consolidated network stood at 16,051 crores. As at 03-31-2026. Book value per share stood at 170.9%.
We can now go for the Q and A session. 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 the Touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. First question is from the line of engineer from clsa. Please go ahead.
Piran Engineer
Yeah. Hi team. Congratulations on the quarter. My first question is for Bindu. Out of the 215 crore standard standalone provision, how much of a gold versus non gold? Can you break that up please?
Bindu A.L.
Okay, so I’ll share the exact details separately. But majority of it is from non gold only. In that if you see the notes to accounts, almost 136 crore is the the right of the vehicle finance book. So that has elevated the baggage in this quarter.
Piran Engineer
Okay. You said 136 crore write off. 136. Okay. Because I think in the opening Comments I heard 84 crore one time write off. Or was it 84 crore is one time and 50 is business as usual. Is that the interpretation?
Bindu A.L.
Yeah. Out of 136 crore, 84 crore is net of provision.
Piran Engineer
Okay. Okay. Net of provision. Okay. Understood. Secondly, when you’ll disclose your gold loan average ticket size of 1.27 lakhs. That’s on disbursements or on a AUM.
Bindu A.L.
AUM.
Piran Engineer
AUM. Okay, fair enough. And just thirdly, I wanted to understand this LTV thing. Now gold prices are up 8% QoQ. 8. 9%. Your tonnage growth is 6. 7% QoQ. So if my LTV is stable, AUM growth should be 14. 15% QoQ, not 30%. So what am I missing here? Has the LTV gone up or what’s wrong in the calculation here?
Bindu A.L.
So the gold price increase is around 20% during the quarter and 8 percentage 7 percentage tonnage growth. And the total growth is 31%.
Piran Engineer
So you’re saying from the 20th of December. Sorry the 30th, 31st December to the 31st of March. You’re saying 20% gold loan growth.
Bindu A.L.
Gold price.
Piran Engineer
Gold price. Yeah. Or are you taking an average of some periods?
Bindu A.L.
This is on an actual basis average. The Actual Go loan price has gone up by 20%.
Piran Engineer
Okay. Okay. Yeah. Okay. That’s it from my end. Thanks and wish you all the best. Yeah, I’m done.
Operator
Yeah. Next question is from the line on Sizhwan Gao from Schonfield. Please go ahead.
Zhixuan Gao
Hey, am I audible?
Operator
Yes. Please go ahead.
Zhixuan Gao
Yeah, thank you for the opportunity. Just want to understand how should we look at profitability versus growth? You know, because if I look at either Q on Q or year on year our AUM on a standalone basis of grand maturity but then the profit is down. So despite 70% year on year AUM growth. So how should we think about, you know, the trade of growth and profitability going forward?
Bindu A.L.
If you see the cmd, the NIMS improved during the quarter but the main impact is on account of higher provisions, especially from the non gold portfolio that impacts profitability. Otherwise if we adjust this one time write off, our profit would have been 430 crores.
Zhixuan Gao
And on the Ashabad this quarter our credit cost is almost minimal. What’s the contributing of our credit cost here for FY27?
Manoj Pasangha
So the credit cost has improved primarily on account of enhanced collection efficiencies and it also been complemented with an increase in our book as in the opening remarks you would have heard that the rundown is reduced from how it was going in the previous three quarters and last quarter we’ve increased our book and simultaneously increased our collection efficiencies that we’ve had our credit cost in control.
Zhixuan Gao
I don’t know whether the fourth quarter credit cards is your sustainable level because it’s almost close to zero.
Manoj Pasangha
Yeah, completely sustainable.
Zhixuan Gao
Okay. And so I just want to understand why is there positive EPL ECL division change in the fourth quarter for Ashenrade? You know, given that generally in the industry we see negative ECL valuation model change because of the tougher environment in the trading 12 months.
Manoj Pasangha
So I’ll take that. So Ashira Q4 profit of, I mean the provision was about 9 crores was largely on account of certain MTM credits that we got on the security receipts and the change in terms of the ECL provisioning that we took on the new pool because the new pool is performing significantly better than our best performing cohorts that we had in our portfolio. And basically therefore we took a write back on the provisions, especially on the new pool. So the impact of the MTM change and the ECL contributed to a much lower provisioning in the fourth quarter.
Zhixuan Gao
How much is the MTM change plus ECR provision works gathered?
V.P. Nandakumar
So MTM plus the ECL change on a pre tax basis is about 128 crores. Post tax it would be about 96 crores. So sequentially if you look at quarter three versus quarter four and given that there was some noise in Q3 as well, adjusted pack for Ashirwad Q3 versus Q4 was approximately around 100 crores loss sequentially Q on Q.
Zhixuan Gao
That’s very clear. And so just one last question on that. On the previous quarter, third quarter slide your impairment of financial instruments or the provision cost on Ashrad was 214 crores. Sorry, 217 crores. It seems to become one of the denials on the slide for the fourth quarter.
Bindu A.L.
We will get back to you offline.
Manoj Pasangha
Yeah, you, you just to clarify your question, you wanted to know if there was a reduced provision being taken in the fourth quarter.
Zhixuan Gao
No, no. Third quarter impairment of financial instruments. So credit cost was 249 crores. Right. I’m looking at the fourth quarter slides but then in the previous quarter slide that number was 217 to one seller. Just want to understand what’s the difference.
Bindu A.L.
Yeah, we will get back to you.
Zhixuan Gao
Thank you so much.
Operator
Thank you. Next question is from the line of Sripal Doshi from Equida Securities. Please proceed.
Shreepal Doshi
Hi sir. Thank you for giving me the opportunity and congrats on a good quarter. My question firstly was on the MFI portfolio. So in that segment what is the current bucket collection efficiency and also wanted to understand what is the ECL 1, 2 and 3. While we do give gross stage 1, 2, 3 for that for that franchise but also wanted to know the ECL 1, 2, 3 percentages.
V.P. Nandakumar
For the stage one the E is at 1.47 percentage. For stage two it is 19.24 and for stage three it is 68.50.
Shreepal Doshi
Okay, got it. And what is the ex bucket collection or current bucket collection efficiency for the franchise or for the microfinance portfolio?
Manoj Pasangha
So overall for the both the new book and the old book put together it’s it stands at 95%. That’s for the, you know, that’s for the old and the new book put together. If you look at the new book collection efficiency alone which in the opening remarks it was said it was at 59% which is the current old book. We have an astounding percentage of 99.41% which is the collection efficiency in the new book
Shreepal Doshi
And new book Q size closer to 59% of the portfolio.
Manoj Pasangha
That is right.
Shreepal Doshi
Got it, got it.
Manoj Pasangha
New book is 59% and old book is 41%.
Shreepal Doshi
Got it, Got it sir. The other question sir was on the gold portfolio. So in that now we have this LTV monitoring as a new regulation as required under the new regulation. So what are the changes have been made or to adhere to that guideline.
Bindu A.L.
The new regulation applicable from 1st April 2026 and we are adhering to the regulation based on ticket size, interest accrued for the contracted period will also be added that will be the loan amount and there are two types of launch consumption, consumption loans and income generating. And there will be a credit assessment in case of high value for our. So we have implemented first April 2020
Shreepal Doshi
And for further for the customer who is, you know who is highlighting that he will be making a bullet repayment in that case what is the LTV that we are sort of giving at the time of disbursement
Bindu A.L.
There will be reduction in the LTV because in, in the new, under the new regulation we have to factor the interest accrued and it is his option to choose the tenure. If his preference is a better LTV he can choose shorter tenor products also.
Shreepal Doshi
So he can choose the last part
Bindu A.L.
3 month team or 6 months scheme is also available.
Shreepal Doshi
Okay, okay, got it, got it. And what is the incremental yield for the portfolio for the gold business? Because we continue to see that the net yield for the portfolio for the standalone business has been coming off. So have we further taken a price change in price strategy downward?
Bindu A.L.
The last quarter there was a dip of almost 100 basis points. But with that we I think it is the bottom and this quarter it will be similar or slightly better.
Shreepal Doshi
All right. So incrementally we have not taken any policies, any, any price strategy change. But at a book level that is where we are in terms of reduction.
Bindu A.L.
Yeah.
Shreepal Doshi
Got it. Thank you ma’, am. Thank you so much for answering my question and good luck for the next quarter.
Operator
Thank you. Next question is from the line of Rohit Ahuja from Lotus Leon Venture. Please go ahead.
Rohit Ahuja
Hi sir. Thanks for the opportunity. So could you clarify what’s the quarterly profit or loss number for Asirwa?
Bindu A.L.
Q3 Asher was reported 156 crore loss and Q4 it is 13 crore profit. And I think the one time adjustments all bonus are already explained. The new portfolio behavior is much better and the ECL is adjusted accordingly. And there was a write back from the ARC valuation. So against 249 crore Q3 impairment of financial instruments this quarter stands at rupees nine crore. So that helps to report a profit of 13 crore for Ashirwad in Q4.
Rohit Ahuja
Okay. And if you could help us understand how much of this improvement is driven by structural factors like, you know, new book mix and collection efficiency versus any one off reversals and how confident you are in sustaining profitability over the next few quarters.
Manoj Pasangha
As I explained, I’ll just once again give you a brief. I think this question will come up again. Our new book stands at 59% of our overall book and our old book is at 41%. The overall collection efficiency for the total book stands at 95%. And if I were to look at the old book separately and the new book separately in my X bucket for the old book which is 41% in the old book itself, in my X bucket is 98.65% and in my new book which is 59%, my X bucket collection efficiency stands at 99.83%. If I were to take the overall collection efficiency for my new book and the reason I want to talk about this new book again is because as I’m talking to you at every quarter my increase in the new book is going to go such that by the beginning of the third quarter I would have got rid of almost the entire set of old book, say for about 10% which might be remaining.
So from the third quarter you are looking at an entire pristine book governed entirely with the MFUN guardrails and the collection efficiencies standing at. If I am standing at about 99.4% in the overall new book, this will reflect something similar in the Entire book post 2/4 as well. So these are things which is going to be helping us in ensuring that our profits can be maintained whilst ensuring that our disbursements also keep moving up our disbursements both in MFI and our AUM increase in gold.
Because that’s something which we tend to forget quite often because we have also a very good performing gold loan book in the Ashrad books. More than 2000 crores of my book is actually gold as well. So those upsides in my business in both gold and MFI will continue to help us in ensuring that our profits are maintained with regards to our liquidity to ensure fund flows there. Because now the problem is not about building a book. The problem is also not about ensuring our collection efficiencies.
Proof of the pudding. You’ve seen it already. Liquidity is by and large something which the industry would be talking about. The recently announced CGFMU scheme. We have banks chasing us, asking us how much do you want us to lend to you in that particular CGFMU scheme. So at this moment, yes, point for choice we’ll be choosing two, three banks that we will want to ensure our liquidity is taken care of as well. Well
Rohit Ahuja
Thanks. So last follow up on this. So do we expect on a consolidated basis our ROE is improving to 13 to 14% over the next two years.
Manoj Pasangha
If you look at the way the business is growing, I wouldn’t be, you know, I wouldn’t be able to give you a spot on answer for that. But the trends definitely show good results.
V.P. Nandakumar
So we are expecting the consolidated ROE to improve because of gold we are growing. Our OPEX through the last one year has come down by 2 percentage opex to a year. So the borrowing costs, yes, at this stage is as you have heard the last quarter it has come down by 17 basis points. Yeah. So we don’t expect any increase much increase in the overall borrowing costs and the yield is expected to remain at this level of 17.5 to 18%. So the NIM we expect to be maintained at this level will definitely improve the profitability and gold we are continue to grow at a more or less at the pace of better than the last year now. So things are we expect to stabilize somewhere around 13 to 16% in the next one or two years time.
Rohit Ahuja
Thank you sir for this. All the best.
Operator
Thank you. Next question is from the line of Rajiv Mehta from yes, securities. Please proceed.
Rajiv Mehta
Yeah, hi, good evening. Thank you for good numbers. Sir, any thoughts or any steps taken to pull back the bond loan yield? Because I think we have seen a consistent fall in this quarter also we saw further fall. So have we taken any corrective actions in terms of, you know, slightly adjusting pricing from March, April onwards. And second is the mix of the gold loan book in terms of ticket size. Can we control the mix so that we don’t have further dilution of the yield? Can we have that control over how the growth, incremental growth will come about in terms of the ticket size mix? So I’m just wanting to understand how the yield will play out, the actions that you’re taking on the ground.
V.P. Nandakumar
We expect the yield to remain between 17.5 to 18%. We believe that it will not go down. So the strategies are taken shaped in such a way that to maintain at this level it will not go down. You are getting a lot of growth from the higher ticket sizes at the lower rate.
Rajiv Mehta
So if you don’t control that growth on the ground or if you don’t rate increase Rates, how would the yield say at the current level?
V.P. Nandakumar
We are targeting the lower ticket size also it is improving. So the trends are even in the coming quarters we will see that the trend remains at this level. And what I can tell you what our expectation is the yield somewhere stabilizing between this 17.5 to 18 percentage.
Rajiv Mehta
Okay. And on the asset quality in the non gold businesses. Just wanted to understand where are we in terms of the cleanup cycle and are we seeing structural improvements now in especially in the vital finance book, if I were to remove, you know, the write off of 136 crore and still there is a reduction of gross NPA. So I mean so can you just give some color about, you know, over and above right off the NPM reduction that we have seen, have you taken control of NPL resolution? Have the flows stopped from the intermediate bucket into npa?
Can you give that confidence? And second is also in case of housing, we have seen a reduction in NPAs. Is there any structural factor there? And third is MSME in allied portfolios we have seen an NP increase. So how are we controlling the situation there? And would we need to do some write off one time in the coming quarters in MSSB and allied portfolio? Just like what we did in vehicle finance in this quarter?
Buvanesh Tharashankar
I’ll take that. So as far as vehicle was concerned, we had taken the one time write off in this quarter. There are a number of steps that we have taken in the vehicle finance business in terms of, you know, focusing on collections. So one is in terms of the enhancements of the teams into soft bucket and hard bucket. There is, as I covered earlier, also there is a lot of focus on the digital route, especially on the follow ups on the natch collections and in terms of focus on the natch bounce cases.
So there is a lot of focus around that. Due to all these actions which were initiated sometime in Q3 of last year, we’ve seen a sustained improved trend. We see both in terms of the collection efficiencies and the collections on the Natch bounce cases going up from 75% to 90%. So overall as you said, adjusting for the write off also there is a marginal decline as far as the GNPA is concerned by about 15 crores. So as far as flow into NPA is concerned, what we have observed in the last few months is broadly flat.
Our NPA GNPA is broadly flat in terms of the overall stock. Yes. You know, from a percentage standpoint, obviously there is amplification because my overall AUM is coming down. But the Stock of NPA is essentially, you know, flat. There are further actions that we will take and that will kind of play itself out in the coming quarters. So that’s as far as the vehicle finance is concerned on the home portfolio. Rafish.
Rajesh Namboodiripad
Hi. See we continue to monitor the portfolio closely leveraging on early warning system data analytics. We are identifying stress accounts sooner and we are taking corrective steps to curtail that. And we have intensified recovery efforts through dedicated team. We have also hired collection agencies in few locations and faster legal escalation, structured one time settlement in difficult accounts wherever so appropriate. We expect slippages to moderate over coming quarter with gradual improvement in overall efficiency, collect asset quality.
Buvanesh Tharashankar
So on the MSME and Allied portfolio also, you know, similar kind of actions are being initiated. So we will see the results, the improvement in the, in the numbers in the subsequent quarters again you know, in terms of enhanced, you know, collections team. So there’s a lot of focus in the non gold portfolio with regards, you know, the enhancement of the collection team and leveraging of you know, the digital means to improve collection efficiencies. But the trends will play out early reads on these trends are very encouraging. They’re moving in the right direction. So we will see sequential improvement as we, as we see in the coming quarters.
Rajiv Mehta
So then I mean if I were to look at this quarter’s absolute credit cost, I mean you had a benefit of, you had a one time impact of 84 crores because of the write off in the vehicle finance portfolio but you also had the benefit of SR write backs and some other kind of writeback in the Ashid portfolio which was about 120 odd crore. But if I were to eliminate both then would it mean that the current run rate of credit cost should be maintained in Q1 Q2 and then of course the growth of the book will obviously have its impact but otherwise on a collection and recovery effort basis the current run rate of credit cost should be maintained.
V.P. Nandakumar
The way I would look at it, I mean if it depends on whether you’re looking at Consol or you know, a standalone Mafil.
Rajiv Mehta
No. Console console method of number. Yeah of all the ones.
V.P. Nandakumar
So for Q4 consol number, if you look at you know, yes there were you know, credits that we got on the Ashabad side offset by the build on the one time write off on the vehicle finance largely cancelled out each other. So if you were to back out these two elements adjusted PAT we still had an improvement in our adjusted pat by approximately 50 crores quarter on quarter and that was largely on account of the volume growth that we saw on massive coming quarters. One thing as Manoj had just alluded on in terms of the improved numbers and the change in the portfolio mix on old versus new on mafl we will see continued improvement on the Ashirwat portfolio and we will see continued improvement in the non gold portfolios as well.
So overall if we see sequentially I think the cost of credit we will see an improvement in the subsequent quarters and that will basically help in terms of accretion as far as Pat is concerned.
Rajiv Mehta
Thank you. Thank you. And that’s it.
Operator
Thank you. Next question is from the line of Kamal from Jeffries. Please go ahead.
Unidentified Participant
Hello sir. Thank you for the opportunity. I just wanted to confirm that is there any restatement done in the interest income line? Because if I’m comparing the same with the release of December I can see some hundred crore restatement done for Q3. So could you please advise on the same?
Bindu A.L.
So you’re talking about console financials?
Unidentified Participant
Yes, Consol financials. So in the Q4 release I’m able to see the interest income as 2304 crores but in the last quarter’s release it’s roughly 2244 crores. So there is some difference which I’m able to see. So is there some restatement being done?
Bindu A.L.
Yeah, I will share the exact details offline but there is some regrouping.
Unidentified Participant
Okay cool, thanks. And secondly like if you could just guide on the overall console growth which we are planning for FY27 and how much would be driven by different segments like how much should we expect from Gold loan and how should we see the Ashirwad AUM growth for FY27.
V.P. Nandakumar
So we are seeing good opportunities to grow Gold loan because now with the new regulation two types of products consumption loan as well as income generating gold loan Income generating gold loans are targeted towards some other means etc. So which gives a good opportunity where there is no LTV cap for good customers with good underwriting, higher score etc etc. We’ll be able to offer slightly higher LTV. And another scope for this year would be to expand our branch network we planned because recently the regulation has removed the requirement of prior approval Regulatory approval for opening new branches that has been removed now.
So we plan to open some 500 to 550 branches during this year so that the places have been identified where the growth prospects are good. So this also will be a boost for the gold loan growth. Regarding our other portfolios already the CEOs have already explained the growth in microfinance. Already it has been mentioned by Manoj the dispersals quality dispersals with the guardrails it is steadily improving where the asset quality collection for the this new book is steadily increasing which has come to now 59%.
In another one quarter the expectation is that 78%. So in that the collection efficiency stands about 99 percentage and hope to maintain that with the guardrails etc. Etc. This definitely gives scope for improving that. As Ragesh also has said some actions have been taken for the shifting from the micro home to the slightly larger ticket affordable housing. The team has. Teams have been onboarded also with a shift in the focus area of lending where the asset quality is expected to be good. So with all these we expect the overconsold AEM to grow at a reasonably good level. We expect that to be maintained much more than during the current year with regard to volume. That is our expectation.
Unidentified Participant
Okay sir, thank you so much for that and I’ll take the details of the restatement offline from you. Thank you so much.
Operator
Thank you. Next question is from the line of Hardik Dara from Grow More Credit Advisor. Please go ahead.
Unidentified Participant
Yeah, good evening sir and thank you for taking my question. Just wanted to you know understand going forward guidances in terms of AUM growth, AUM mix and you know what are the ROA ROE profiles that we are targeting for the next two years.
V.P. Nandakumar
So that is already told with the opportunities, with the new gold lending norms etc. New products are coming in so we will place our products. We are offering branches also about microfinance also it has the asset quality is steadily improving. There is a golden portfolio is also improving. They are also targeting more and more quality. Similarly with the product shift etc. Governance also is expected to fare well. So the SSA said this year’s volume growth in gold loan will be is expected to be more than what we have achieved during last year.
And for other products also the new phase has come. A new leadership has taken the charge so who have the expertise for a quite a long number of years in leading large companies etc. So we expect that growth to be good. We don’t give any number but we expect that to be good.
Unidentified Participant
Got it. Okay. Thank you so much. And sir, any number for the you know FY28 roar that we are targeting.
V.P. Nandakumar
We are targeting over 15%.
Unidentified Participant
Okay, sure. Thank you so much.
Operator
Thank you. Next question is from the line of Prithviraj Patel from Investec. Yes, please proceed.
Prithviraj Patil
I just had one question I just wanted to know the option number for this particular quarter.
V.P. Nandakumar
15 crore during the quarter.
Prithviraj Patil
Okay, thank you.
Operator
Thank you. Next question is from the line of AGAM from AGAM Investments. Please go ahead
Unidentified Participant
And Congress and a good set of numbers. So you mentioned one point that the new leadership has come in so can you talk about that which areas as we have may present staff comments and also the second question was is on the status of deeper ready. Is he planning to join in earlier or how is it if we can just you know on that also two things
V.P. Nandakumar
Undergoing treatment in Singapore. So we are not very sure when he will join but his health is improving but we are not able to say when the exact time of his joining Regarding the leadership, new leadership etc in microfinance Manoj Pasanga has taken the charge as the CEO. Similarly in my webinars Mr. Rakesh has taken the charge so they have long experience in running large portfolios etc. The actions taken by Manoji the positive results are already evident and he has taken the charge three months back. So in the next one year you can expect dramatic change. Similar is the case with targets also to in needing.
Unidentified Participant
Any anyone else Are we also considering if people.
V.P. Nandakumar
At the group level we Monish has joined this group cfo. Similarly Ashish has joined as the group or CCU Then there is a Sanchez group Legal counsel then CEO and we expect more some more leadership to join about the positions of HIA and head of rules etc. Collection. Of Home finance and CTU also have joined. So these are all senior leadership who has proven their capabilities leadership in their previous organizations.
Unidentified Participant
Okay, just the last question. So if deeper ready appointment gets you know come back gets delayed. So are we looking at anyone else fulfilling the role or something like that? Or we’ll just break it through?
V.P. Nandakumar
No, we will wait for his to see his health is improving and also he’ll be able to take maybe are hopeful that he’ll have the healthy situation to take on the charge of the company.
Unidentified Participant
Okay. Okay. Thank you.
V.P. Nandakumar
Yeah.
Operator
Thank you. Next question is from the line of Yash Bandari from Neo Markets. Please go ahead. The line from the current question got disconnected. Ladies and gentlemen, with that we will end the question and answer session. I now hand the conference over to the management for the closing comments.
V.P. Nandakumar
Thank you for your questions. I hope we have answered your questions. Any details required so we are available. Thank you.
Operator
Thank you sir. On behalf of Manapuram Finance and Motilal OSWAL Financial Services Ltd. That concludes this conference. Thank you all for joining us and you may now disconnect your lines.
V.P. Nandakumar
Thank you. Thank you.