Muthoot Finance Limited (NSE: MUTHOOTFIN) Q3 2025 Earnings Call dated Feb. 12, 2025
Corporate Participants:
George Muthoot — Managing Director
Unidentified Speaker
Analysts:
Sanket Chheda — Analyst
Rajiv Mehta — Analyst
Shreya Shivani — Analyst
Vaibhav Badjatya — Analyst
Mona Khetan — Analyst
Shweta Daptardar — Analyst
Kamal Mulchandani — Analyst
Abhijit Tibrewal — Analyst
Shreepal Doshi — Analyst
Raghav Garg — Analyst
Unidentified Participant
Umang Shah — Analyst
Shubhranshu Mishra — Analyst
Bhaskar Basu — Analyst
Kushan Parikh — Analyst
Anuj Singla — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Muthoot Finance Q3 FY ’25 Earnings Conference Call.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr Santeep Chheda from DAM Capital. Thank you, and over to you, sir.
Sanket Chheda — Analyst
Thank you. Yeah, hi, all. Thank you and very warm good evening. We have with us the entire senior management team of Motus Finance to discuss their Q3 results. From the management team, we have Mr George Alexander Motus, who is the Managing Director; Mr Alexander George, who is Whole-Time Director; George M Alexander, Whole-time Director; George M. George, Whole-Time Director; George M. Jacob, Whole-Time Director; and Mr Alexander, who is Executive Director; Mr K.R., who is the Executive Director; and Mr Mament, who is the CFO.
Without further ado, I will hand the call over to the MD, sir for their opening remarks, post which we will follow-up with the question-and-answers. So over to you, sir.
George Muthoot — Managing Director
Thank you and good evening to all. We are pleased to place before you the financial results of it Finance for the quarter. We had a consolidated loan assets under management, which grew by 34% year-on-year to INR1,11,308 crores as of 9th March as against the INR82,773 crores last year.
During this quarter, the consolidated loan assets under management increased by INR7,159 crores, an increase of 7% quarter-on-quarter. The consolidated profit-after-tax for the nine months stood at INR3,908 as against INR3,285 last year, an increase of 19% year-on-Y. The consolidated profit-after-tax for Q3 of this financial year increased by 21% year-on-year to INR1,392 crores as against INR1,145 crores in Q3 of last year. We are pleased to record report another strong quarter building on our robust performance trajectory. In Q3 financial year ’25, our standalone assets under management witnessed a significant growth of INR26,305 crores, driven by a robust 37% year-on-year growth on our core gold loan portfolio.
During nine months, the gold loans increased by INR21,660 crores, registering a growth of 29%. This was in tandem with the accelerated demand for gold loan, especially during the festive season. Our standalone profit-after-tax for the nine months grew by 23% year-on-year, stands at INR3,693 crores. The in gold loan advances reflects not only the trust our customers place in us, but also the resilience of India’s economic momentum. Among our subsidiaries, we have witnessed growth in the housing finance arm disbursing INR880 crores in the nine months from up from INR493 crores last year.
We have tempered disbursements in response to a challenge faced in the microfinance sector and all our focus continues to be on strengthening collections and enhancing quality of the loan book. We are closely monitoring the industry situation and we see this as a transitionary issue and expect it to get resolved in the next couple of quarters. The expansion of our branch network and the increasing adoption of digital platforms have further strengthened customer engagement with a significant portion of transactions now being facilitated through digital channels I think I will leave it there. All the other details etc are there with you in your presentations and I will now wait for the queries and questions from the from the team there.
Questions and Answers:
Operator
Thank you very much. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star in one on stone telephone. If you wish to remove yourself from the question queue, you may press in two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Thank you. We take the first question from the line of Rajiv Mehta from YES Securities. Please go-ahead.
Rajiv Mehta
Yeah, hi. Hi, sir, good evening. Congrats on very strong numbers. Sir, my first question is on, you know, I mean, the employee expenses were higher Q-on-Q and Y-on-Y by a significant extent. But when I look at the employee base, it’s flat. There is 0% growth in employee base. So can you please elaborate on how this growth in employee cost has come about? Maybe if you can slightly elaborate about the variables, the incentives which were there or maybe any new plans or new schemes of variables or incentives which was introduced for growth?
George Muthoot
Yeah. I think there are two things. One, when this is the first-half for the business growth. Second, during the last quarter is the festival quarter, all the owner bonus, the early bonus all-in that period and that would have been the reason for the employee cost to go up. But again, it is in-line with the usual.
Rajiv Mehta
And can you also comment on the growth outlook now because you already achieved your full-year guidance, we are already up 29% in the year. But what is the incremental growth outlook you from a pure volume perspective? Of course, value-wise gold is going up, but from a volume perspective and from competitive — from a competition perspective, do you remain very confident about delivering very similar performance in the coming quarters also.
George Muthoot
So I wouldn’t want to say exactly that, but certainly, there will be a growth in this quarter also, but I wouldn’t want to commit a number to it. But anyway, we are glad that we were able to grow this much in the nine months. In the net books, we are glad to see the growth there. The next quarter also, we should see some growth, but I don’t want to give a number to it.
Rajiv Mehta
And just one last thing I want to clarify, whether from January, have we made any changes in terms of any practices on-the-ground in any of the aspects because, see, there was a regulatory observation for all the gold loan players and the three months was given for feedback and I’m sure there would have been a two-in-front discussion with the regulator. But post that, were there any conclusive feedback from the regulator, which we had to implement on-the-ground in January and February?
George Muthoot
You are right. There was some communication from the regulator. It is mostly hygiene, hygiene checks which all come — all banks and finance companies need to do and we have proven our comments to them. And to answer your question, we did not have to do any, any changes in the process of situation. It’s mostly a processoriented and it is in-line with what we are doing and there was no changes required in that.
Rajiv Mehta
So no impact on growth as such from those changes.
George Muthoot
Absolutely. No.
Rajiv Mehta
Got it. Thank you, sir and best of luck.
Operator
Thank you, sir, we take the next question from the line of Shivani from CLSA. Please go-ahead.
Shreya Shivani
Yeah. Thank you for the opportunity and congratulations on a good set of numbers. Sir, I have two questions. First is on the borrowing profile. If you can give us a little bit of idea on the cost of fund rate movement that the trend in the cost of fund that we can expect in 4Q and the year to come by, I believe our majority of our bank loans are NCLR linked. Is there some more color you can give in terms of how much is Six-Month MCLR or one year linked? And is any of our borrowing linked to repo rate? Sir, my second question is on the partnership, your PPD talks about partnership with GPay and PhonePay. Can you help us understand how the business dynamics and the sharing of the economics of that partnership will take place? And how much — I mean, yeah, the economics, can you talk about the economics of this year?? Thank you.
George Muthoot
So in terms of borrowings, we have the secured debentures, we have the bank borrowings which constitutes — bank borrowings, we 56% secured borrowings NCDs constitute about 26 percentage. Now we have ventured into the ECB borrowings for the current year again. So that constitutes about 13 percentage. So I think these are the three major avenues where NBFCs can do borrowing. In terms of borrowing cost, I think it’s roughly around 9 percentage of it will be the borrowing cost. Know most of the limits are linked to MCLR and because we have a larger proportion of term loans, most of these term loans are going to reset and then annually. So very few loan limits are less than under the working capital limit. The majority is in the term loans. So that reset is going to happen annually and no loans linked to report, it’s very, very negligible.
Shreya Shivani
Got it. Sir, what would be your lending cost on your ECDs? And this 9% you mentioned, is this incremental cost of borrowings?
George Muthoot
Yeah. Roughly around 9% will be the incremental cost.
Unidentified Speaker
So the next question you asked was about the Google Pay and. Yes, we have some — we have an arrangement with them. Their arrangement is for lead-generation, which will help us in whole loans, personal loans, LAP, etc. So they are generating leads for us. And we just started it. So it’s doing. So going on.
Shreya Shivani
Okay, sir. So it will be on — there’ll be like distributors for you there, you’ll pay this thing for generating leads for you, right?
George Muthoot
That’s how they leads first.
Shreya Shivani
Yeah. Okay, okay. Yeah, thank you so much. Those were my questions and all the best.
Operator
Thank you. We take the next question from the line of from Honesty and Integrity Investment. Please go-ahead.
Vaibhav Badjatya
Yeah. Hi, sir. Thanks for providing me the opportunity. So, sir, you know, in one of the earlier con-calls in the micro for — you specified what the microfinance business. You have customers or you require customers to come to your branches to pay installment versus other companies having field agents who go and collect. So in terms of — so why do you think that this approach is better and where does it reflect in terms of either reducing regulatory risk or better credit cost? How this approach is better.
George Muthoot
See, a good part of our business is from the CSG? Yes, but from the SSG. So they have a connect to the customers even before they take the. So that is one of the main advantages or differentiator with us. The second is, again, the loans, the customers are to come to the branch, branch to pay the money and that is our model. I think it is definitely has helped us. I wouldn’t want to compare it with other models, but probably it is standing us in good step now than it also gives him feel like a bank like environment when they are able to the branch and give the transactions with that doing.
Vaibhav Badjatya
Okay. Okay. Got it. And sir, lastly, you know, up on many con-calls, you have always guided for 4% to 5% long-term ROA. Currently, we are doing much better than that for sure. But for a long-term basis, you’ve always guided for 4% to mostly 4%, 2%, but even if we achieve 4% to 5% on a long-term basis, and your leverage is always less than 3%. So that implies that your ROE will always be around 12%, 13% if we — if we get to our guidance that you always give. So how do you think about the leverage and because we keep generating a lot of profit, keep accumulating this and leverage keeps on reducing, which depresses. So I just want to understand what are your thoughts on that?
George Muthoot
I think you start getting now because the last one year increase. Last December it was 2.2%.
Operator
Sorry to interrupt, sir, we are losing your audio.
George Muthoot
So leverage has increased in the last one year. No, last year it was 2.24, now it is 2.75 times leverage. So no, it that along with the borrowings though we are generating capital, I think sooner or later we should be — we should be seeing a better leverage and better utilization of the capital.
Vaibhav Badjatya
But any thoughts on increasing the — I mean, trying to give more dividends in terms to the shareholders and trying to improve the ROE through that.
George Muthoot
We had a Board meeting today also discussions were not there, but I think the businesses are going well. So we feel that maybe no decisions have been taken anyway, but keeping more money in the company definitely helps, I suppose.
Vaibhav Badjatya
Okay, that’s it from my side. Thank you.
Operator
Thank you. We take the next question from the line of Mona Khetan from Dolat Capital. Please go-ahead.
Mona Khetan
Yeah, hi, sir. Good evening and congratulations on a strong quarter. Sir, firstly, if I have to look at NPA in the standalone book, how much would be the non-gold — how much would be coming from non-gold segment versus the gold, if you could help me with that, it was about INR190 crore last quarter, the non-gold NPA.
George Muthoot
So what was your question? I didn’t understand the question here. The NPA, the Stage 3 for this year is 4.22. This quarter is 4.22 versus 4.3 in just immediate quarter. So what is the question, I didn’t understand the question.
Mona Khetan
So this includes gold PL and some SME book as well, right? So I’m just trying to understand how much is from the non-gold segment versus the gold. I think it was INR190 crore as you highlighted last quarter. Where does it stand for this quarter?
George Muthoot
Around INR300 crores.
Mona Khetan
Okay. So we are seeing a significant rise in this segment, which mainly comes from PL. So could we expect this to be the peak or what is the thought process here in the PLNP or the non-gold NPE in the standalone book?
George Muthoot
Non-gold I think this will be the peak, of course, as and when you grow the book, naturally the absolute amount could increase, but with the current non-gold portfolio, I think this should be the peak.
Mona Khetan
Okay, okay. And how about the ERC sale, what is the outstanding and when could we expect, if at all, any benefit to come in the other income.
George Muthoot
So it has already started coming in in terms of booking the income. So we have already received the principal amount of secured assets. We have already started booking income in based on the collections coming from the residual portfolio.
Unidentified Speaker
Probably in the next — this quarter or next quarter, we should see it fully coming back.
Mona Khetan
Okay. So the outstanding is mill all the loans have been sold by the ERC.
George Muthoot
So the loans, no, some more portions are there. What I’ve said is the security receipts, the value has come down little. So we are able to book income from the further collection. And after the income which comes will be booked as in the collections which come will be booked as in finance.
Mona Khetan
Got you, got you. So something substantial could come in the ensuing quarters and there was some small component this quarter as well.
George Muthoot
Yeah, yeah. You’re right. You’re right.
Mona Khetan
Okay. And just finally, on the branches, what kind of approval we have for this year for additional branches? Yeah we, we have approv we had approvals. I think we are again given papers for approval. I think it should come, should come this quarter or so-so right now we don’t have any RJ approval for FY ’25 branches. Is that a fair understanding?
George Muthoot
So this year we focused on expansion of branch network in our wholly-owned subsidiary, Mutur Money. So we have added almost close to about 800 branches during the year. And now we have transformed from a pure finance company to into a gold loan company. So because no, we feel that metal finance business is too competitive and the margins are lower. So we transformed the company into a vehicle loan company. So we focus on adding a gold loan company. We have focused on building the network in that company. So currently it has close to 1,000 branches, the approval for this year from a Mutu Finance, the standalone business, it’s not yet there from RBI. Yeah, the last approval we completed opening of the last approval last quarter — last quarter. This quarter there were no pending approvals.
Mona Khetan
Got it. Thank you so much and all the best.
Operator
Thank you. We take the next question from the line of Shweta from Elara. Please go-ahead.
Shweta Daptardar
Thank you, sir, for the opportunity and congratulations on a good quarter. So I have two questions. One, so the fresh loans to new customers, the quantum has actually remained steady quarter-on-quarter and rather come down from the beginning of the fiscal year. Now I understand that the tonnage growth largely would have been attributable to the gold price, the underlying gold price hike. So how do you see actually the organic growth either from the customer addition or productivity gains through branch network expansion will come through in the next or forthcoming quarters? That’s question number-one. Question number two, so banks and ministry have been highlighting about rising GNPAs in the gold lending segment. Now I completely understand it’s a highly recoverable asset and you have strategy in-place. But given the fact that you also signed customers and sort of take time for auctioning processes, how do you see the gold loan NPA picture going-forward? And are there any as far as lending practices of banks are concerned, wherein has remained? Thank you.
George Muthoot
So many questions,. First question was about the customer addition. New customers. There will be substantial new customer addition this quarter also. So I don’t know from where you said there was a reduction. It’s not a pure — no gold on no gold price function. If you look at slide slide number 44, you can see that the new customers have significantly increased each every quarter. Say first-quarter we added 3.0 first-quarter we added 4.57 lakhs, second-quarter 4.34 lakhs, lakhs 3rd-quarter 4.17 lakhs. All these disbursements adds up to almost like INR15,000 crores. So that is a significant improvement. And now our customer addition net basis, it has increased by during this nine months, it has increased from 87 lakhs to a number of loan accounts has increased from 87 lakhs to 99 lakhs, almost one crore loan accounts. Customers have — net customer-base has increased from 56 lakhs to 62 lakhs. So there is a significant improvement. It is not a pure gold price play in this. When the price of the underlying commodity goes up, we cannot expect, you know people to bring in more-and-more and more jewelry.
Unidentified Speaker
They will bring only the required amount for the required space. They want two lakhs. They will bring only jewel worth two lakhs at this today’s price. So very loan — the older loan when it gets close, the proportion, the LTV there was a bit much lesser. So 20 grams will go when the same amount is taken to another customer, he needs to bring only 18 grams. That’s the difference.
George Muthoot
Can you repeat your second question?
Shweta Daptardar
Yeah. So there has been animal as far as gold lending NPAs are concerned for banks and even Ministry has been highlighting that for now and then. I mean, I understand it’s a highly recoverable asset and JNPA might not be the right parameter to judge a business like yours, but still how are we vis-a-vis the that banks are facing on the gold — in the gold lending segment?
George Muthoot
If you avoid the discussions to bank, I will tell you what is in our — what we do. As a stated policy, we would like to give more time to the customer. We wouldn’t like to auction this goal just at the drop of a hat. So just because it has become NPA, we don’t auction the. If the customer comes back, comes to us and requests the branch for some more time, maybe two months, three months next plus, if we see that we are in-the-money, we would rather give the customer more time than auction is gold just because it is an NPA. That is our stated policy and that is what we do and that is why customers flock back to us again for their next road. So they feel that we are not very harsh in this auction business. So probably we have 4.2% of our NPA, but then this is not — it is 100% principal at interest-rate is safe there or it is secured in our book. So we did not — we don’t mind keeping a part of it as an NPA. Of course, because knowing very well that it will never translate into a loan-loss for us. So over the last decades, we have never had an NPA — because of an NPA, we have a loan-loss. So that is why we try to adjust or do accommodate the customer as far as possible. So in the next two, three months, many of them will pay interest or we will close their account, et-cetera, but then we are saving an auction. We’re actually helping the customer not to option this code. That is our policy.
So we would see — we would like to keep this NPA also around this 4.2%, 4.3 that level going-forward also. If things are up there, we would like to break it down also, but we wouldn’t be concerned even if this is a 4.2% or 4.3%.
Shweta Daptardar
That is well-understood. Second part of the question was there were certain as far as gold lending customer-base is concerned, especially for banks. How is our customer-base and underwriting and vis-a-vis the that have been observed for banks in the gold lending segment.
George Muthoot
I don’t know what are the anomalies seen in the bank. If you can say that anomaly, then I will say whether it is available that normally is there with us.
Shweta Daptardar
So there have been observations on LTV, LTV transparency and renewal of loans without the closure of existing loans. Plus Ministry have also highlighted rising GNPAs in the gold lending segment. So I understood the part, but I’m just talking more because you are the industry veteran. So talking more from the industry perspective on how this customer segment is behaving vis-a-vis gold financiers versus bank-led gold loan customers.
George Muthoot
Okay. Gold loan is one of the best products which a customer can get today. It is a self — it is not a loan which is increasing its leverage. It is the best loan which is available today where customers are not able to get personal loans, they’re not able to get a microfinance loan, they are not able to get other types of loans. The easiest is gold and people are generally very happy taking in hold in that. Yeah. And the customers don’t get into that trap also. So this is something which needs to be encouraged. So if some brands have wrong practices, it is not there in. We are doing what is definitely required and what is in the line and that is what stands for. That is why you see that we have the largest gold loan portfolio among all the other NBFC thoughts. So the practices which we do are definitely good and definitely in-line with what the customer needs and that is what we will be looking at. What banks do, what they don’t do is not for me to come in or what the ministry said also, don’t forget to comment.
Operator
Thank you. The next question is from the line of Kamal Mul Chandani from Investec Capital Services. Please go-ahead.
Kamal Mulchandani
Hello, sir. Thank you for the opportunity. Sir, firstly on the gold loan part, if you could just like give some color like what is the policy on the loan rollover by? Like do we — net of the loan or like the customer pays the loan completely at the maturity and then we like give 100% new loan to the customer. So what is the policy over rollover?
George Muthoot
Any loan which is given as a new loan or a renewal is only done at the current LTV. In the current LTV 75%, it is done only at 75%. So that is a loan policy we have and that is what we have been doing till now also. Supposedly on the maturity date, if the loan LTV, the value of the gold has increased and I can avail further loan basis the new gold price. So will I be required to repay my earlier loan or you couldn’t give an additional amount over and above or like whatever the difference in the LTV is? So how do we do that? So if the customer requests for that, we can definitely as long as it is within the LTV.
Kamal Mulchandani
Okay, sir. Thank you so much for that. Sir, on the MFI part, can you please help us what is the par zero number?
Unidentified Speaker
We’ll get that number.
George Muthoot
We’ll get that touch. Okay. We’ll get that to you later.
Kamal Mulchandani
Okay. Sure. And do we have some color over what is happening in Karnataka and what is the percentage of portfolio in Karnataka? And are we facing some issues in collection with the government uncertainty going around?
George Muthoot
No, I don’t think there is any problem as yet. Of course, there are some talks about collection Karnataka bringing some room, etcetera and there is also some talk about somebody overriding that or that is staying that hole also, that’s — that’s all there, but I think nothing specific for us there in Karnataka. And the portfolio in Karnata, I don’t know the exact number is very small also.
Kamal Mulchandani
Okay, got it. Thank you so much, sir. It would be great if you could just provide us the party the number. That’s it from my side. Thank you.
Operator
Thank you, sir. Before we take the next question, a reminder to the participants, if you wish to join the question queue, you may press 1 on your touchstone telephone. The next question is from the line of Abhijit Tibarwal from Motilal Oswal. Please go-ahead.
Abhijit Tibrewal
Yeah, good evening, everyone. Thank you for taking my question. So firstly, I mean, congratulations on a good quarter. Sir, we need your help in understanding the scenario.
Operator
So your voice is sounding very muffled, sir. Are you connected on your cellphones? I would request you to please switch to your handset, sir.
Kamal Mulchandani
Is it better now?
Operator
Yes, sir. Please go-ahead.
Kamal Mulchandani
Yeah. Yeah. Sir, what I was saying is we need your help in understanding some of the regulatory developments that some of the other gold loan players, including NBFCs and small finance banks who have spoken about these developments in this quarter. Sir, first thing is, I mean, mean, what some of the other gold loan players are saying is the regulator is asking that LTV instead of being capped at 75% at the time of disbursements should remain at 75% during the entire tenure of the loan. And what this means is that at the time of disbursement, the LTV that one can give out will actually be lower depending on what will be the accrued interest during the tenure of the loan.
And the second thing, sir, I mean, when RBI had come out with guidelines, they had also shown or talked about something around, I would say renewal or rollover of loans at the time of maturity. I’m just trying to understand is the RBI now asking that you start making some additional provisions if you are rolling over loans at the time of maturity. So if you can just help us understand these two developments, if any, on the regulatory side, that will be issue. Thank you so much.
George Muthoot
Actually, no two developments on this. This is RBI has always been saying these things, but there are no new regulatory, no new developments on this and we are doing business-as-usual.
Kamal Mulchandani
Got it, sir. And sir, just last — one last thing, while a lot of discussion has already happened on the level of GNPAs and when you will eventually want to auction the loan all that — all those points are very well-received. I’m just trying to understand, given that now we are in the 4th-quarter, we’ll be closing the March numbers, is there a certain level of GNPA that you will want to be at, right? And because of which you might want to look at some auctioning in the fourth quarters.
George Muthoot
Auction is not to 4th-quarter, 3rd-quarter, et-cetera. Auction is something which we do always. So definitely, wherever we need to do auction, we will do auctions also. So the GNPA, the customers are not forthcoming and we feel that the — they are not going to take-back the gold and they are not going to review — they are not going to close the load, we’ll have to do auctions but that’s not very last. So if there is something to be done, this quarter, we’ll definitely do it. But we’ll try to see that our GNP etc is within this 4.3, 4.2 et-cetera.
Kamal Mulchandani
Got it, sir. This is useful. That’s all from my side. Congratulations and all the very best to be in you. Thank you.
George Muthoot
Thank you, you. Thank you. Thank you.
Unidentified Speaker
There was a question on, I know what is the microfinance exposure in Karnataga that is about INR900 crores. And zero is INR7,850 crores, that is about 90.5% of the total portfolio.
Operator
Abhitik, sir, does that answer your question?
Abhijit Tibrewal
Yeah. Thank you so much.
Operator
Thank you. We take the next question from the line of Shripal Doshi from Equirus. Please go-ahead.
Shreepal Doshi
Hi, sir. Thank you for giving me the opportunity. The first question, sir, was again on the regulatory front. So has there been any communication with the regulator on the bullet repayment as a product and there has been some — I mean, the regulator has in a way highlighted to have an EMI as a — as a product in the gold loan category as well. So is there any communication or has there been any discussion on this particular aspect?
George Muthoot
No, sir. No. No discussion.
Shreepal Doshi
Okay. Okay. And sir, secondly, just, I mean touching again on the earlier participants’ question on 75% LTV throughout the tenure and at the time — or at the time of disbursement. So we are following the policy of 75% LTV at the time of disbursement and then we do not really look at how it is moving throughout the tenure.
George Muthoot
No, we have not made any change there and we have not heard anything for the regulators.
Shreepal Doshi
Got it, sir. Sir, the third question was on the instant personal loan category. So there, as you highlighted from INR190 crore, I mean, the non-gold NP has increased to almost INR300 crore. So is it predominantly coming from this particular like segment or is it some other segment also?
Operator
INR10 to the only set-up, sir, we are losing your audio. We are not able to hear you clearly.
George Muthoot
That INR300 crores is from personal loans, from business loans from that stuff. And staff all put together and the portfolio has also grown sir.
Shreepal Doshi
Okay. Okay. So sir, how is this the particular instant personal loan portfolio in terms of GNPA, particularly for this segment and credit cost here, sir?
George Muthoot
No, it is, I think quite — quite good — quite nice because it is given to customers who are known to move it already…
Shreepal Doshi
So this would be predominantly…
Unidentified Speaker
Provided for all NPA accounts or under non-gold, no, no, no, we are providing 100.
Shreepal Doshi
Right. Sir, just one aspect there. So this instant PL would be to our captive gold customers only, right?
George Muthoot
Not captive gold customers. Customers who have had business with.
Shreepal Doshi
All right. All right. And sir, just last question. What would be the auction during the quarter?
George Muthoot
It’s around INR60 crores.
Unidentified Speaker
60 crores
Shreepal Doshi
And for nine months, sir, like the whole Nine-Month FY ’25
George Muthoot
Get back to you, not a big number.
Shreepal Doshi
Sure, sir. Thank you so much, sir and good luck for the next quarter.
Operator
Thank you. We take the next question from the line of Raghav Garg from Ambit Capital. Please go-ahead.
Raghav Garg
Sir, thanks. None of my questions have been answered. My other question is, what is the interest accrued outstanding as of December on the books?
Unidentified Participant
INR1,850 odd crores.
Raghav Garg
Sorry, 1,851, is that correct?
George Muthoot
Correct.
Raghav Garg
Okay, I’m not able to hear you properly. I’m sorry.
Operator
I’m sorry to interrupt you, sir. We are losing the audio. Participants, please stay connected. I will reconnect the management line. We have the line for the management reconnected. Please go-ahead, sir.
Raghav Garg
Thanks. Sir, my other question was, I wanted to understand your rationale behind transforming money into gold loan business. Why is it that you cannot absorb those branches into the standalone business. Why do you have to do it as a separate business even though the nature of the business is same as a standalone entity or the parent entity?
Unidentified Speaker
That’s why it’s called transformation. We were doing vehicle loan business on for doing vehicle loan business. It is doing vehicle loan business. Initially, the vehicle loan portfolio is running down.
George Muthoot
It’s still some — some vehicle loans are still there. So it was not making money. So that is why we started the cold loan business there. That’s why we started the whole loan business.
Raghav Garg
Okay. So do you plan to absorb this entity at some point in the future into the parent entity?
George Muthoot
That’s your decision make? I think we have not disclosed that at all.
Raghav Garg
Understood. And do you see any regulatory risk here? Because I think for gold loan branch expansion, you have to take the RBI’s approval, will that apply in this case as well in case of money once you transform it completely.
George Muthoot
So money once it crosses 1,000 regulations will apply.
Raghav Garg
Understood. That’s all from my side then. Understood. Thank you.
Unidentified Speaker
Earlier, there was a question on auctions. So now the nine months auctions is around 382 crores.
George Muthoot
382 crores is a full year’s auction. Somebody else for it. Hello?
Operator
Sir, does that answers your question?
Raghav Garg
Yes, yes, I’m good. Thank you.
Operator
Thank you, sir. Thank you. We take the next question from the line of Umang Shah from Kotak Mutual Fund. Please go-ahead.
Umang Shah
Yeah, hi. Good evening. Thanks for taking my question, sir. I just wanted one clarification. So the non-gold loan portfolio where these customers who are — is it fair to assume all of these are like active Moothood customers or these could possibly be customers who have been customers in the past?
George Muthoot
There are customers of Mutu, there are non-customers of also. It’s not that they are fully customers of existing or past customers. There are entirely new customers have no business with finance also are coming there.
Umang Shah
Sure. And sir, typically, out of this INR4,500 crore worth of loans, what proportion of loans or customers would also have active gold loan at this point of time with us.
George Muthoot
We wouldn’t have looked at that number. We wouldn’t have looked because it is not on active gold loan customer, we are giving the loan — raising the loan based on the underwriting for the personal loan. Gold loan is not a criter in there at all.
Umang Shah
Sure, but it’s a possibility that they might also have a gold loan, which is which is probably active.
George Muthoot
Definitely, definitely. Somebody who has taken a personal loan from other NBFCs also will have a gold loan with probably.
Umang Shah
Understood it. Okay, understood. Sure. That was my question. Thank you.
Operator
Thank you. The next question is from the line of Ranshu Mishra from PhillipCapital. Please go-ahead.
Shubhranshu Mishra
Hi. I just wanted to understand the total number of customers only bank on a monthly basis. Of them the number of customers who have got two gold loans with us, the number of customers who’ve got three gold loans and the number of customers who’ve got four-plus gold loans with us. Thanks.
George Muthoot
So Sukh, your voice was not clear. Can you repeat — you repeat that once more?
Shubhranshu Mishra
Hi, hi. I hope my voice is clear now. I wanted to understand the total number of customers we bank on a monthly basis, the number of match accounts we have — we bank on a monthly basis. The second part of these, how many customers have four gold loans with us? How many customers have three gold loans with us and how many customers have four-plus gold loans with them?
Unidentified Speaker
So Subransh, there is a slide — slide number 44, which talks about the customers — new customers we onboard. I know you can take that as a number of new customers onboarded because now the other portfolio is negligible. So you can simply ignore those non-gold customers getting added.
Shubhranshu Mishra
No, I’m not asking for non-gold customers. I’m asking for the number of gold loan customers we bank on a monthly basis.
Unidentified Speaker
So I don’t have the monthly numbers. Quarterly it is around roughly around 4.1 lakh or 4.3 lakh customers.
Shubhranshu Mishra
Okay. Of these, how many customers would have two gold loads, three gold loans and four-plus gold loans.
George Muthoot
That number we don’t have somebody having more than some customers with two gold loads, customers with three gold loans, customers with four. We haven’t — we haven’t — we don’t have that on that sir.
Unidentified Speaker
So now if you simply add no INR1 crore by 60 lakhs, every customer will have about 1.25, 1.3 crores is the average 1.5 no 1.5 no, no one comes from digital are there more questions?
Shubhranshu Mishra
No, there are no more questions. I’ll take this offline. Thanks.
Unidentified Speaker
Yeah.
Operator
Thank you. The question is from the line of Baskar Basu from Jefferies. Please go-ahead.
Bhaskar Basu
Thanks. I just had one question. When I look at your ALM for the last couple of years, almost 40% of your borrowings ex NCDs mature in the first-six months and around another 30% in the remaining six months. So almost 70% matures. And just wanted to clarify, I mean, there was a question earlier also. These are all one-year MCLR linked or do you have shorter MCLR as well because these seem to be shorter maturity loans.
Unidentified Speaker
So no, I think I answered this question earlier. We have roughly around roughly around 20% of the bank loans which are short-term. Our rest are all long-term loans. So this short-term loans, the reset happens on maturity long-term loans, it’s mostly it is annual reset. Yeah, but every year almost like 70% matures within the year. So which is why when you say long-term loans, what would be the tenure for these loans? No. So when you look at the ALM, you might be seeing the installments also, because term loans now are quarterly installments there’s no reset happening that’s why that payment is shown in the LM statement okay so basically 20% is shorter tenure of these shorter tenure, the rest will be term loans where the reset happens annually, whatever is the residual balance in outstanding as on that date.
Bhaskar Basu
Okay. Okay. No, thanks. That was my only question.
Operator
Thank you. The next question is from the line of Adity Vikra from DigitalBeast. Please go-ahead.
Unidentified Participant
Hi, thank you very much for allowing me to ask the questions. So, sir, you had revised the guidance last quarter. Are we sticking to the same guidance for this year as well? Apologies if you have already answered this.
Unidentified Speaker
Yeah. So last quarter we revised the guidance from 15% to 24 percentage for the whole year. But no, in the 3rd-quarter, we overachieved it. We have reached 29 percentage. Certainly we are not again raising the number. No, certainly we are expecting a growth to happen in the 4th-quarter.
Unidentified Participant
Okay, sir, just a follow-up. Somewhere in your presentation, I read that you have written that there is a cautious approach. So is that only for microfinance business or that is for the entire firm at a consolidated level?
George Muthoot
Yeah, mainly for the microfinance business.
Unidentified Participant
Okay. My second question, sir then is your GNPA and net NPA has come down primarily because, of course, your — the AUM has increased. But on a net basis, do you see any stress overall in the economy or you think that we are sticking to the number which we have.
George Muthoot
There definitely can be stress in the economy. That’s what I am hearing. We don’t see any but I’m reading everywhere there is stress in their first stress in the economy but then that is helping in the gold loan business because people are not getting money elsewhere, they are coming for gold loan. That’s what we can understand in this.
Unidentified Participant
Okay. So what is your net increase for like-to-like basis between the quarters in the AU and for the NPA side?
George Muthoot
So on the NPAs, September quarter it was INR3,880 crores. December it is INR4,17. So there is a increase of around INR230 crores quarter-on-quarter.
Unidentified Participant
And what was September to July quarter, sorry if you can answer that one. September to June, apologies.
Unidentified Speaker
June it was INR3,353 crores. That is about INR450 — INR530 crores increase.
Unidentified Participant
Okay. Thank you very much, sir. Appreciate it.
George Muthoot
I think the NPA numbers to come down by March, late March, but no, in gold business.
Operator
I’m sorry, sir, we are unable to hear you clearly.
George Muthoot
The gold business, NP numbers don’t. Okay. There is not much answer to there also. The question is over.
Operator
We take the next question from the line of Kushant Parik from Morgan Stanley. Please go-ahead.
Kushan Parikh
Hi, sir. Thanks for taking my question. I had three questions. The first on the loan growth guidance. We understand your guidance for F ’25, but if you could also refresh your guidance for F ’26 in terms of loan growth? My second question is around the credit cost. On the credit cost, basically we are looking for maybe stable or slightly better asset quality GNPA in the next quarter. Does that mean that credit cost for 4th-quarter will remain broadly in the same range as 2Q and 3Q? And if you could also given the share — I mean, given the non-gold portfolio is growing faster at the standalone level, if you could give some credit cost guidance going-forward as well for — for the standalone book? And lastly, just one data keeping question, if you could give the loan book split by ticket for the gold loans sorry, one-by-one.
George Muthoot
The guidance for 2026, as usual, we are giving you only the usual 15% guidance for 2026 also. We will revisit it after next quarter. So that is the first part of the question. The second was the credit cost, if you are saying credit cost or GNP, credit cost is — so credit cost primarily comes from one from the loan growth. If there is a loan growth, we have to mark 1% with the current ECL provision percent 1% credit.
Unidentified Speaker
Can you hear?
George Muthoot
Yeah. Yeah. So 1% provisioning we have to do. Any NPA increase roughly around 10% provisioning we have to do. So to the extent that increase will happen to the extent of NPA reduction happening, you know, we’ll get some benefit on credit understood. Okay. That’s quite clear.
Kushan Parikh
And going-forward with the share of non-gold loans rising in the standalone book, if you could give some guidance around that. I mean, do we provide a higher percentage to the standard asset for the non-gold loan book versus the gold loan book or it’s the same 1%.
George Muthoot
The non-gold loan book today is INR4,500 crores only and the gold loan book is 90 crores of crores. Sold loan — both will be growing. So it is not that one is growing faster than the other, both will be growing.
Kushan Parikh
Understood. Understood. And sir, the last — on the last question on the loan book split.
Unidentified Speaker
So up to-1 lakh it is 30% is 32 I mean up to-1 lakh it is 30% 1 lakh to 3 lakhs it is 32 percentage and above 3 lakhs is the rest. I think it’s around 34 percentage.
Kushan Parikh
Understood. That’s all from my side. Thank you.
Operator
Thank you. We take the next question from the line of Anuj Singla from Bank of America. Please go-ahead.
Anuj Singla
Yeah, good evening, sir, and thanks for the opportunity. Sir, on the ECL, which you’ve given on Slide number 48, just one question. We have seen an improvement in Stage 2 and 3 on a sequential basis. But when I look at the total ECL, it’s gone up by around 8 basis-points on a Q-Q basis. So my assessment is that the PCR, you have increased our coverage across various stages. And can you verify that and also give us a sense for why — what is driving that?
George Muthoot
Yeah. So we explained this earlier, no. So in terms of non-bold portfolio, no, the NPA book, we make a 100%. So in the next RPL loan, there is a slight increase in the NPA. So that is the reason why that portion has increased.
Anuj Singla
Okay. So the composition of the GNPA is now has significantly higher non-gold portfolio. That is what you’re saying and that’s why the PCR has gone up.
Unidentified Speaker
The non-gold NPA is only around INR300 croress out of INR4,17 crores.
Anuj Singla
Got it. Got it, sir. Got it. Thank you.
Operator
Ladies and gentlemen, we take that as the last question for today. I would now like to hand the conference over to the management for closing comments.
George Muthoot
Yeah. We are quite happy that we had some lively discussions here. As usual, we remain committed to the company. We remain committed to serving the interest of all our stakeholders, the investors, the lenders, the regulators and definitely our customers. So we will do all what is required to see that every — all our stakeholders adequately looked after and we stay committed to growth to do good and quality business in coming days also. Again, once again, thanking you all for an lively participation. We look-forward to in the next quarter to meeting you again. Thank you and goodbye.
Operator
Thank you, members of the management. On behalf of DAM Capital, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.