{"id":176845,"date":"2026-01-22T14:35:27","date_gmt":"2026-01-22T19:35:27","guid":{"rendered":"https:\/\/alphastreet.com\/india\/manappuram-finance-ltd-manappuram-q2-2025-earnings-call-transcript\/"},"modified":"2026-01-22T14:35:27","modified_gmt":"2026-01-22T19:35:27","slug":"manappuram-finance-ltd-manappuram-q2-2025-earnings-call-transcript","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/manappuram-finance-ltd-manappuram-q2-2025-earnings-call-transcript\/","title":{"rendered":"Manappuram Finance Ltd (MANAPPURAM) Q2 2025 Earnings Call Transcript"},"content":{"rendered":"

Manappuram Finance Ltd (NSE: MANAPPURAM) Q2 2025 Earnings Call dated Nov. 05, 2024<\/span><\/strong><\/p>\n

Corporate Participants:<\/h2>\n

V.P. Nandakumar<\/strong> \u2014 Managing Director & Chief Executive Officer<\/em><\/p>\n

Bindu A.L<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

Rajesh K R N Namboodiripad<\/strong> \u2014 Chief Financial Officer at Asirvad Micro Finance Limited<\/em><\/p>\n

Unidentified Speaker<\/strong><\/p>\n

Analysts:<\/h2>\n

Abhijit Tibrewal<\/strong> \u2014 Analyst<\/em><\/p>\n

Piran Engineer<\/strong> \u2014 Analyst<\/em><\/p>\n

Kushan Parikh<\/strong> \u2014 Analyst<\/em><\/p>\n

Rajiv Mehta<\/strong> \u2014 Analyst<\/em><\/p>\n

Bhaskar Basu<\/strong> \u2014 Analyst<\/em><\/p>\n

Sanket Chheda<\/strong> \u2014 Analyst<\/em><\/p>\n

Shreepal Doshi<\/strong> \u2014 Analyst<\/em><\/p>\n

Nidhesh Jain<\/strong> \u2014 Analyst<\/em><\/p>\n

Raghav Garg<\/strong> \u2014 Analyst<\/em><\/p>\n

Nischint Chawathe<\/strong> \u2014 Analyst<\/em><\/p>\n

Shubhranshu Mishra<\/strong> \u2014 Analyst<\/em><\/p>\n

Mohit Jain<\/strong> \u2014 Analyst<\/em><\/p>\n

Rishabh Gang<\/strong> \u2014 Analyst<\/em><\/p>\n

Tanuj Kyal<\/strong> \u2014 Analyst<\/em><\/p>\n

Love Sharma<\/strong> \u2014 Analyst<\/em><\/p>\n

Bunty Chawla<\/strong> \u2014 Analyst<\/em><\/p>\n

Gaurav<\/strong> \u2014 Analyst<\/em><\/p>\n

Rishikesh Oza<\/strong> \u2014 Analyst<\/em><\/p>\n

Vatsal Parag Shah<\/strong> \u2014 Analyst<\/em><\/p>\n

Presentation:<\/h2>\n

Operator<\/strong><\/p>\n

Ladies and gentlemen, good day and welcome to Manappuram Finance Q2 FY ’25 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded.<\/p>\n

Now hand the conference over to Mr. Abhijit Tibrewal from Motilal Oswal. Thank you. And over to you, sir.<\/p>\n

Abhijit Tibrewal<\/strong> \u2014 Analyst<\/em><\/p>\n

Thanks, Siddhant. Good evening, everyone. Thank you for joining the Q2 and H1 FY ’25 earnings conference call of Manappuram Finance. We have with us today the senior management team of Manappuram Finance and some of its subsidiaries represented by Mr. V.P. Nandakumar, MD & CEO; Dr. Sumitha Nandan, ED; Ms. Bindu A.L., CFO; Mr. B.N. Raveendra Babu, MD, Asirvad Microfinance; Mr. Rajesh Namboodiripad, CFO Asirvad Microfinance; Mr. Kamal Parmar, Head Vehicle and Equipment Finance; Mr. Suveen P.S., CEO, Manappuram Home Finance; and Mr. Robin Karuvely, CFO, Manappuram Home Finance.<\/p>\n

Now I hand over the call to Mr. Nandakumar and other members of the senior management for their opening remarks post which we will open the floor for an interactive Q&A.<\/p>\n

Thank you. And over to you, sir.<\/p>\n

V.P. Nandakumar<\/strong> \u2014 Managing Director & Chief Executive Officer<\/em><\/p>\n

Thank you. Good evening, ladies and gentlemen. It’s a pleasure to be with you as we present the financial results for the second quarter of FY ’25. I thank you all for joining us today and I trust you have had a bright and joyful Diwali.<\/p>\n

This year, the geopolitical tensions have impacted the international market, disrupted supply chains and increased the cost of essential goods worldwide. However, India shines through as a stable and growth-focused economy with projections for 7.2% real GDP growth in the current fiscal. Against this backdrop, our company has demonstrated resilience and adaptability.<\/p>\n

I am pleased to report a net profit of INR572 crores in this quarter. Our consolidated assets under management was INR45,716 crores at the end of the quarter achieving a growth of 17.4% year-on-year and 1.7% quarter-on-quarter.<\/p>\n

I would like to touch upon the recent RBI circular on 30th of September ’24, to further streamline the practices on gold loan. Lenders have been instructed to review their policies and practices in this regard to identify gaps and implement corrective measures. We see these as good measures from the perspective of systemic stability and operational efficiency.<\/p>\n

The company is in the process of strengthening the loan to value monitoring, renewal of loans after due dates, and monitoring and use of gold loans. We are working with industry association to adopt uniform practices across the sector and accept full implementation within the timeline of these months, as per the circular.<\/p>\n

Asirvad recorded an AUM of INR12,149 crores, representing 11% year-over-year growth as guided earlier. And as in the case of other players as well, Asirvad’s profitability has been affected by the decline in collection from certain geographies resulting in higher credit cost. To address climate-related disruptions affecting certain regions where we have observed collection challenges, we have increased our collection efforts and are implementing advanced tracking systems to improve the recovery rates. These targeted efforts have already shown positive signs of increasing collection efficiency.<\/p>\n

As reported earlier, RBI has directed our major subsidiary Asirvad Microfinance to desist from disbursement from 22nd October ’24, pointing out deficiencies in pricing policy, assessment of income and that of microfinance borrowers, the purity differences at the time of disbursement and auction etc. While our interest rate was comparable, we have proactively decided to reduce the interest rate for the microfinance which would be one of the lowest in the industry.<\/p>\n

We have also rectified all the deficiencies in our system to ensure correctly assessing the income of the borrowers, capturing and reporting of income and indebtedness for the borrowers from PAC reservoir [Phonetic]. Asirvad has submitted a plan for compliance to RBI on 29th of October ’24. We are hopeful of lifting the bans on disbursement at the earliest. These changes may create additional opportunities for prudent growth.<\/p>\n

Our vehicle finance business has AUM of INR4,848 crores, recording a 6.8% increase quarter-over quarter followed by home loans with AUM of INR1,691 crores, which is 29.6% increase year-over-year. Factors like above normal rates in many states such as Gujarat, Maharashtra, Kerala, Telangana, AP, West Bengal, and the MP. Rising price of essential necessity migrates having to send higher amounts to home from their workplaces, stagnant freight rates, and fewer trips due to reduced demand coupled with highly leveraged farmers and self-employed have resulted in even prompt paying customers defaulting for the first time.<\/p>\n

The impact is seen higher in rural areas which accounts for a sizable portion of our portfolio. We expect the repayments to improve from Q4 onwards as green shoots of improvement are starting to show in Q3. We recognize the crucial role of micro, small and medium enterprises play in driving economic growth and innovation. We aspire to offer secured credit lines to MSME to enhance their business.<\/p>\n

Also in Q2, our AUM of secured MSME sector is INR2,443 crores. Thank you all for your continued support and interest. Our focus will be on fortifying our core gold loan business, continued growth on all our secured lending business as we see the opportunity created by India’s economic resilience and the positive reforms. We remain dedicated to our vision of empowering customers and stakeholders alike to broaden sustainable growth and innovation.<\/p>\n

For a more comprehensive review of our financial performance, I now hand the floor to our CFO, Mrs. Bindu A.L.<\/p>\n

Bindu A.L<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

Thank you, sir. Good evening, ladies and gentlemen. Thank you for joining us today. Our consolidated AUM for the quarter stood at INR45,716 crore, representing 1.7% sequential growth and 17.4% Y-o-Y growth. And the consolidated profit after tax was INR572.1 crore, which was an increase of 2.8% Q-on-Q and 2% Y-o-Y increase.<\/p>\n

ROE on a consolidated basis was 18.6% and ROA was 4.4%. Standalone GNPA as on 30th September at 2.42% versus 1.96%. Cash-on-cash equivalents at the end of the quarter INR4,939 crores, and undrawn bank line was INR3,432 crore. Our CP exposure is 2.2%, and the standalone borrowing cost has gone up by 8 basis points during the quarter.<\/p>\n

On gold loan business which is — which constitutes 53% of consolidated AUM. The AUM stood at INR24,365 crore, up by 3% Q-on-Q and 17.1% Y-o-Y. During the quarter, we were able to add 4.03 lakh new customers, and the outstanding number of customers gone to 26.55 lakhs from 26 lakhs. The online gold loan booked 74% of the total gold loan book as on 30th September, and the standalone profit was INR475 crore which is up by 7.8% Q-on-Q and 13.1% Y-o-Y.<\/p>\n

Coming to microfinance business, the AUM stands at INR12,149 crore, including gold on AUM of INR1,117 crores, down by 1.3% Q-on-Q and up by 11% Y-o-Y. PAT was INR75 crore versus INR100 crore in Q1 FY ’25, which is down by 25% sequentially and down by 36% Y-o-Y, mainly due to higher credit cost. Net NPA at 1.99,%. CRAR at 21.48%.<\/p>\n

Vehicle finance, the book at INR4,848 crore which is 6.8% Q-on-Q growth and 54% Y-o-Y growth. Collection efficiency 95%, and GNPA slightly gone up during the quarter at 4.2%, and vehicle finance AUM comprises CV 49%, and passenger vehicles 29%, two wheeler 16%, and farm equipment is around 6% of the total vehicle finance book.<\/p>\n

Home loan, the book INR1,692 crore, Q-on-Q growth of 6.6%, and 29.6% Y-o-Y growth. And the company reported a profit of INR6 crore during the quarter, GNPA at 3.28%, and the collection efficiency of 96%. Loan to MSME and allied activities stood at INR2,963 crores, with a disbursement of INR373 crore during the quarter. GNPA at 3.8%, and the mix of secured book is increasing considering the higher collection secured book.<\/p>\n

Our on lending AUM at INR816 crore, and during the quarter, the disbursement is INR78 crore. The Board has declared an interim dividend of INR1 for the quarter. Capital position remains strong with a CRAR of 29.22%, and the consol net worth at INR12,529 crores, and the book value of INR148.<\/p>\n

Thanks. We can now go for the Q&A session.<\/p>\n

Questions and Answers:<\/h2>\n

Operator<\/strong><\/p>\n

Thank you very much, ma’am. We’ll now begin the question-and-answer session. [Operator Instructions] Our first question is from the line of Piran Engineer from CLSA. Please go ahead.<\/p>\n

Piran Engineer<\/strong><\/p>\n

Yeah. Hi team, congrats on the quarter. A few questions. Firstly on Asirvad, what is the interest rate we are offering now? Sir, you mentioned you have reduced it, so from what to what?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Yeah. So, Asirvad is stopped from lending from 22nd of this month. But — yeah, we have decided to reduce the rate as we are not lending. We can’t say that we are lending at this rate. But we have given the assurance to RBI that our rate would be one of the lowest in the industry. And all other requirements what was highlighted by the RBI has been fully complied, and we have submitted the report to RBI and we are expecting their inspection.<\/p>\n

Piran Engineer<\/strong><\/p>\n

Okay. Okay, fair enough. And sir, also this sharp jump in the number of loan officers Q-on-Q, you’ve added about 5,000, all that is essentially for collections, is it?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Yeah, yeah. As you are aware, the sector faces challenges in such a — particularly in certain geographies. So, the collection of the — our industry see a greater degree of the need of collection at the borrower — individual borrower center. That is the industry scenario. So in this scenario, we need to increase, and we believe that all the companies, the sector itself is now very keenly organizing group-level meetings, which has been disbanded after this COVID, etc., etc. So, everybody is encouraging. Yeah. So for the time being, we need more people for collection.<\/p>\n

Piran Engineer<\/strong><\/p>\n

Okay. So then when we put this together, NIMs will go down a bit, opex goes up. What sort of ROA are you planning for — or in your business model, what sort of ROA do you have for Asirvad?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

See, this business was running at a net interest margin of 10%, and making ROA of over 4%. So then the recovery was over 99% — 99.5%. And now there is a change in the outlook of the lenders that has happened, and as the report said, for some lenders, there were as many as the 15, 20 letters. So SROs have taken the lead role in containing the total number of lenders, etc.<\/p>\n

We will go back to what was the scenario before liberalization that will bring down the credit cost, etc. to the previous level. At that level, we will be able to reduce our opex because then the group level meetings, the collections — if the group level meetings are reestablished that is what the industry is trying to do. The opex will come down because loan officers, credit — the accounts load will increase.<\/p>\n

So this will bring down the opex to a level which was there before the liberalization, etc., etc., bring lot of credit discipline. So with this, we hope that the ROA reported for those days was around — over 4%. We’ll be able to go to that level in a few quarters.<\/p>\n

Piran Engineer<\/strong><\/p>\n

Understood, understood. And sir, just lastly on — you briefly touched upon the RBI guidelines regarding streamlining gold loan processes. So, any sort of — maybe you can just highlight what sort of an impact it has on your business in terms of maybe lower competitive intensity from fintechs, or how should we think about that? Thanks.<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

See, now the fintechs have many restrictions. Yeah. So, the fintechs which was earlier enjoying some benefits will go and all the lenders will have to follow the same guidelines whether you are a bank or non-bank. So, this will definitely create a level playing field for the players. So, we believe that will be — that will turn out to be an advantage for us and we’ll be able to grow at the rate what we used to project as 12% to 15% annually. So, earlier the case of some of the banks were lending at 90% LTV because — etc. etc., and some non-banks also were lending indiscriminately. So, when the uniformity comes, the opportunities will be available — almost fairly distributed.<\/p>\n

Piran Engineer<\/strong><\/p>\n

Understood. Okay. Thank you, sir, and wish you all the best.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Kushan Parikh from Morgan Stanley. Please go ahead.<\/p>\n

Kushan Parikh<\/strong><\/p>\n

Hi, sir. Thanks for taking my question. I just had two data-keeping questions. One was, if you could share the standalone as well as Asirvad total ECL numbers for 1Q as well as 2Q. And second question was on the write-offs. If you could share the write-off in standalone as well as for Asirvad for this quarter as well as Q-o-Q and Y-o-Y numbers? That’s all, sir.<\/p>\n

Bindu A.L<\/strong><\/p>\n

Yeah. So in the — it is given in the presentation so the P&L breakup show — you are talking about the impairment, the total for the quarter consolidated is INR260 crore, referring Page number 10 [Speech Overlap].<\/p>\n

Kushan Parikh<\/strong><\/p>\n

Yeah I was — Yeah, thanks ma’am. ma’am, I was asking for the stock of provisions, Stage 1, 2, and 3 stock up provisions for standalone as well as Asirvad for 2Q as well as 1Q?<\/p>\n

Bindu A.L<\/strong><\/p>\n

Okay, I will come back to you later.<\/p>\n

Kushan Parikh<\/strong><\/p>\n

Sure. Sure.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Rajiv Mehta from YES Securities. Please go ahead.<\/p>\n

Rajiv Mehta<\/strong><\/p>\n

Yeah. Hi. Good evening. Congrats on a good quarter. Sir, I have a few questions. Sir, you spoke about the September 30 circular of RBI. Now post that, have we changed any practice on the ground with regard to our operations in gold loans, say in particular the practice of rolling over loans at the end of the tenor with only part payment, or even renewing the overdue loans, or issuing a fresh loan to overdue clients? Has there been any change in any practice on the ground since that circular?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

See, if you are asking me about gold loan, we have [Indecipherable] timeline up to December for ensuring compliance of whatever has been asked by the regulator for compliance. So we are fully geared off the matter and we have set our machinery right in implementing all these well on time. So whatever the practices the regulator wanted — the regulatory entities want to follow, we’ll be fully complying with that well before that deadline.<\/p>\n

Rajiv Mehta<\/strong><\/p>\n

Okay. Okay. And incrementally, for fresh gold loans or even in case of renewals, are we offering or going up to 75% LTVs, or are we calibrating LTVs because the gold has run up pretty sharply? So are we trying to build in more margin of safety in the new LTVs in case of fresh loans or in case of renewals? Or we are still comfortable going up to 75% LTV on the current price?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

The industry association is taking up the matter with the regulator and they have sought the appointment with the Deputy Governor and the senior supervisory officials at the RBI. And we will hear and implement understanding. We will try to embrace upon them with some practical challenges etc., etc. We hope they will appreciate whatever is the — whichever is the practical challenges. Then upon hearing them, the industry will take a call, yeah, based on the comfort of the regulator to implement this. So it will be uniform.<\/p>\n

Rajiv Mehta<\/strong><\/p>\n

Yeah. Just one last question on customer base growth sir. The customer base growth has been pretty healthy in recent quarters. The customer acquisition has also been running at a good pace. And now with IFL coming back since September end; now in October, have we seen any change in the customer acquisition run rate or in the customer base growth because of IFL’s return?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

So IFLs return is only a welcome feature because, yeah, the industry should have a sufficient number of players to replace the unorganized lenders whom control around 65% of the gold loan AUM. So, what is most important is uniform fair practices. So that is what we look forward. As they have come with the policies as mandated by the regulation, we don’t see much challenge with regard to — as far as competition is concerned. Even then — even when there is a level playing field, there are opportunities for growth.<\/p>\n

Rajiv Mehta<\/strong><\/p>\n

Okay, thank you, and best of luck.<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you.<\/p>\n

Bindu A.L<\/strong><\/p>\n

Yeah. So, before moving to the next question, to answer the earlier participant’s question on the provision. In MAFIL, the provision at INR91 crore and Asirvad INR270 crore is the outstanding provision as on 30th September.<\/p>\n

Operator<\/strong><\/p>\n

Thank you, ma’am. Our next question is from the line of Bhaskar Basu from Jefferies. Please go ahead.<\/p>\n

Bhaskar Basu<\/strong><\/p>\n

Yeah, thanks. I had a couple of questions. So firstly, what is the Tier 1 capital at Asirvad?<\/p>\n

Bindu A.L<\/strong><\/p>\n

INR2,250 crore. INR2,250 crore.<\/p>\n

Bhaskar Basu<\/strong><\/p>\n

And just what would this be in terms of percentage of risk-weight assets?<\/p>\n

Rajesh K R N Namboodiripad<\/strong><\/p>\n

That is 16.5%. 17%, yeah.<\/p>\n

Bindu A.L<\/strong><\/p>\n

17%.<\/p>\n

Bhaskar Basu<\/strong><\/p>\n

So what levels of capital Tier 1 would you think of a capital call from the parent in case you have — you continue to see stress in that?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

We’ll be maintaining Tier 1 somewhere around this level, 15% to 18%.<\/p>\n

Bhaskar Basu<\/strong><\/p>\n

And what has been the response of lenders to this whole ban? Are they asking you to put capital?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

So — yeah, lenders have not shown any discomfort because they understand what is sought for etc. etc. So — and they are hopeful about we meeting their regulatory expectations etc. etc. And they understand the — our company has sufficient liquidity, etc. etc., and the — as and when required they know that it is backed by its parent which has got sufficient liquidity, strength, etc. etc. So lenders don’t show any discomfort.<\/p>\n

Bhaskar Basu<\/strong><\/p>\n

Especially given that the MFI book will continue to run down and these are unsecured loans.<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Yeah, yeah, absolutely. We’ll be able to meet all the repayment obligations on time.<\/p>\n

Bhaskar Basu<\/strong><\/p>\n

Okay. The second question was on the RBI circular. So, basically, what are the key areas where you think changes may be needed? And specifically on the issue of rollover of gold loans before maturity, is that something which you think RBI is concerned about? Obviously, they’ve kind of talked about it?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Yeah, yeah. They have issued a few guidelines, etc. etc. So the association is taking up with regulators next week. We are meeting Deputy Governor etc. etc. In some of the areas, there are some practical challenges which we will bring to the attention of the authorities, of the RBI, and whatever they want after the discussion they insist upon is the entire sector will comply with and that will make the sector only healthy. It’s not going to destroy the sector. Confidence of the stakeholders will increase and I firmly believe that it will turn out to be good for the industry.<\/p>\n

Bhaskar Basu<\/strong><\/p>\n

Understood. So just a clarification. I mean, I’ve seen the circular. So, while the rollover issue seems to be more at maturity, but are you also kind of saying that rollover before maturity, which is generally done is also an issue which RBI is kind of looking at?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Yeah, yeah. These are the areas we seek clarity from the RBI. We will bring to their attention about the challenges faced by the poor customers at the field level, customers difficulty etc. etc. These are mostly from the lower end of the pyramid to the bottom of the pyramid. So there are difficulties and how emotionally they are connected etc. etc. This will be brought to the notice of the regulator etc. and the association is hopeful some of the practical challenges seen in the directions will be addressed.<\/p>\n

Bhaskar Basu<\/strong><\/p>\n

Thanks. And just a clarification on the proposed MFI yield or the reduction. I missed that number. I mean what was it earlier and what will be [Speech Overlap]?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Yeah, it was 24%. So we are meeting RBI and — we have met RBI and given assurance because we are not lending as we are asked to stop lending from 22nd of October onwards. And we have told them that number which is very comfortable as we feel it before the RBI, and we believe that will be comfortable to the regulator. It will be the lowest in the industry — one of the lowest in the industry.<\/p>\n

Bhaskar Basu<\/strong><\/p>\n

Okay. And did you quantify the number? I mean, I just wanted to clarify. I mean in initial comments you mentioned something, or…?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Yeah, yeah, yeah. What I told is, it will be one of the lowest in the industry.<\/p>\n

Bhaskar Basu<\/strong><\/p>\n

Okay, okay. Okay. Thanks. Thanks.<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Yeah. Welcome.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from line of Sanket Chheda from DAM Capital. Please go ahead.<\/p>\n

Sanket Chheda<\/strong><\/p>\n

Yeah. Hi. My question was to Bindu ma’am regarding one earlier question. So the data point that I wanted to know is that in case of MFI, what was the overall provisioning that is, Stage 1, 2, 3 put together? And at the consolidated level, what was the overall ECL provisioning this quarter versus last quarter?<\/p>\n

Bindu A.L<\/strong><\/p>\n

So our LGD is around 50%. So on the Stage 3 which is given, it is 50% of the provision. So, as on date, it is INR270 crore. This is only for — this is the total provision outstanding in the books. This includes all three; Stage 1, 2…<\/p>\n

Sanket Chheda<\/strong><\/p>\n

Stage 1, 2, and 3 is?<\/p>\n

Bindu A.L<\/strong><\/p>\n

INR270 crore is Stage 3. That is…<\/p>\n

Rajesh K R N Namboodiripad<\/strong><\/p>\n

Total is INR392 crore. Yeah, total provision is INR392 crores.<\/p>\n

Sanket Chheda<\/strong><\/p>\n

And this was last quarter?<\/p>\n

Rajesh K R N Namboodiripad<\/strong><\/p>\n

I’ll just come back.<\/p>\n

Sanket Chheda<\/strong><\/p>\n

Okay. But this is MFI you said, right?<\/p>\n

Rajesh K R N Namboodiripad<\/strong><\/p>\n

Yeah, yeah. That is for the whole of Asirvad.<\/p>\n

Sanket Chheda<\/strong><\/p>\n

Okay. And just wanted to know on the console basis also when and where you can place that number during the quarter, that would be helpful. And the second is how is MFI Stage 2 mood in this quarter, the total Stage 2?<\/p>\n

Rajesh K R N Namboodiripad<\/strong><\/p>\n

It was not clear. Hello?<\/p>\n

Operator<\/strong><\/p>\n

Hello, Mr. Sanket, your voice is not audible.<\/p>\n

Sanket Chheda<\/strong><\/p>\n

Is it better?<\/p>\n

Operator<\/strong><\/p>\n

Yes sir, please go ahead. Yeah.<\/p>\n

Sanket Chheda<\/strong><\/p>\n

Yeah. Just wanted to know…<\/p>\n

Operator<\/strong><\/p>\n

Sorry to interrupt, Mr. Sanket, your voice is still not audible.<\/p>\n

Sanket Chheda<\/strong><\/p>\n

Is it better?<\/p>\n

Operator<\/strong><\/p>\n

Yeah, it’s better. Just that if you can get to a place with a better network reception, that would be great.<\/p>\n

Sanket Chheda<\/strong><\/p>\n

Yeah. So, I’ll just try one last time. So just wanted to know MFI Stage 2 in percentage terms this quarter versus last quarter?<\/p>\n

Rajesh K R N Namboodiripad<\/strong><\/p>\n

So, it was 2.6% this quarter. Earlier it was 1.7%.<\/p>\n

Sanket Chheda<\/strong><\/p>\n

Okay. Sure, sir. And overall ECL provisioning number would be helpful whenever you can provide that.<\/p>\n

Rajesh K R N Namboodiripad<\/strong><\/p>\n

It was INR302 crore. Now it is INR390 crore.<\/p>\n

Sanket Chheda<\/strong><\/p>\n

Okay. Sure, sir. Thanks.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from line of Shreepal Doshi from Equirus. Please go ahead.<\/p>\n

Shreepal Doshi<\/strong><\/p>\n

Hi, sir. Good evening, and thank you for giving me the opportunity. Sir, my first question was on microfinance. So, could you please share the par zero number and also a data point wherein Asirvad plus 4 lender sort of a number for us in the book?<\/p>\n

Bindu A.L<\/strong><\/p>\n

So, in Page 23, Stage 1 is 93.3%, and Stage 2 is 2.6%, and Stage 3, 4.5% as on 30th September.<\/p>\n

Shreepal Doshi<\/strong><\/p>\n

Sorry ma’am, I didn’t get it.<\/p>\n

Bindu A.L<\/strong><\/p>\n

So in Page 23 of the slide, we have given the Stage 1 at 93.3%, and Stage 2 2.6%.<\/p>\n

Shreepal Doshi<\/strong><\/p>\n

Right. But par zero would be like what?<\/p>\n

Bindu A.L<\/strong><\/p>\n

Par zero will be 90% — 92%.<\/p>\n

Shreepal Doshi<\/strong><\/p>\n

I’ll take this up question — I’ll take up this question later on ma’am, in the separated. The other question was on the LTV. So this quarter we have seen that the gold LTV has come off to 58%. And in one of the diversified lenders who is also into gold finance had highlighted that the regulator has asked them to maintain 75% throughout the loan tenure. So is this 58% or decline from 62% is in that direction, or are you also trying to deploy the same strategy?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

No, no, it is not because of that. The gold price has gone up and many customers have not taken the whole LTV of 75%. Regarding the other thing, as I told earlier, the association is meeting the RBI at the top level, Deputy Governor and others to discuss some of the practical issues, etc. etc., and we want to seek clarity and bring to their attention the difficulties that would be faced by the poor customers, when we implement some of these directions, etc. etc. We hope that they would understand that and made it little more practical. And whatever the regulatory requirements, we are committed for full compliance of that the industry itself.<\/p>\n

Shreepal Doshi<\/strong><\/p>\n

Got it, sir. Go it. Thank you.<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Welcome.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Nidhesh Jain from Investec. Please go ahead.<\/p>\n

Nidhesh Jain<\/strong><\/p>\n

Sir, in the gold loan business, this quarter the growth was a bit soft, given that gold price has been pretty strong. What is the reason for softer growth in this quarter on a Q-on-Q basis in gold loan? And what is the guidance for gold loan growth for the full year?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

It’s a seasonal effect. So, there were events, many festivals, and the requirement during this period used to be little dull compared to the other peak seasons. So we have already given the guidance of 10% to 15% growth in gold loan, and we are hopeful of achieving that anyway.<\/p>\n

Nidhesh Jain<\/strong><\/p>\n

Okay. And sir, secondly, on the microfinance side, how are the collection trends in the month of October versus quarter two? And how — what is the guidance on credit cost for the full year?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

So, it will be similar to the industry. So, there is some stress in some geographies and added to that some festivals, then in some natural disasters in some states, etc. etc. This has its impact. This is the industry scenario and we are not different with regard to the collection of the industry. So it will be going as per the industry.<\/p>\n

Nidhesh Jain<\/strong><\/p>\n

So, if you can quantify the number, what is the collection efficiency, let’s say on X bucket in Q2, and what was that number for October? That would be useful.<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

So that has to be worked out.<\/p>\n

Nidhesh Jain<\/strong><\/p>\n

Okay. And sir, guidance for the credit cost for the full year in microfinance?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Yeah. It should be a little on the higher side because now we are not able to fully estimate, why? Because many of these things the industry has come out of that the natural disasters like heat waves, then above normal monsoon and the festivals etc. etc., these are all cooled down. We hope things will improve going forward.<\/p>\n

Nidhesh Jain<\/strong><\/p>\n

Okay sir. That’s it from my side. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Raghav Garg from Ambit Capital. Please go ahead.<\/p>\n

Raghav Garg<\/strong><\/p>\n

Hi. Good evening, and thanks for the opportunity. I just have a few questions on your digital personal loans. I was reading through the presentation. It’s mainly given to the existing gold loan customers. So I wanted to understand what is the overlap between the digital PL customers and the gold loan customers?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

See, we have decided not to grant any digital personal loan to gold loan customers until they close the loan. So there is enough system control.<\/p>\n

Raghav Garg<\/strong><\/p>\n

Okay. And this is — or this is applicable since when? Or it has been the policy since we start whenever you initiated this business?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

This was raised by the regulator in their inspection. Immediately thereafter we have stopped it.<\/p>\n

Raghav Garg<\/strong><\/p>\n

Sir, when was that?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

So this is during the last inspection which has concluded in September.<\/p>\n

Raghav Garg<\/strong><\/p>\n

Understood sir. Sir, that’s all from my side. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Nischint Chawathe from Kotak Institutional Equities. Please go ahead.<\/p>\n

Nischint Chawathe<\/strong><\/p>\n

Hi. Thanks for taking my question. It’s actually on RBI observations. If you could just kind of clarify and help us understand what were the observations made by RBI in the microfinance business as well as what was the commentary for the gold business?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

See, I have already mentioned about that in my opening remarks. One was the pricing policy. The second was assessment of income and debt of microfinance borrowers. Third, the purity difference of gold at the time of disbursement and auction. These were — now these are fully controlled in the system. This will not recur.<\/p>\n

Good pricing also we understand the requirement. So we understand we cannot be an outlier in fixing the net interest market. We have committed that we address that in all future disbursements, which are the system controls put in place etc. etc. We have submitted our reply to RBI and we are awaiting for their inspection.<\/p>\n

Nischint Chawathe<\/strong><\/p>\n

And for the parent gold loan company?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

For our gold loan company, gold loan also they’ve have issued certain guidelines, etc. etc. As I mentioned to the message with the earlier speakers, the industry has some concerns about some practical challenges in implementation which are affecting the customers at the bottom line very much. So, we have sought and got the appointment with Deputy Governor and others. The association is meeting them next week. Based on that, association will take a call on all these points and the association, and in particularly, we are committed in implementing that.<\/p>\n

Nischint Chawathe<\/strong><\/p>\n

And this is essentially all the microfinance — sorry, all the gold loan — gold lenders.<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

No. So this is to all the players including banks [Indecipherable]. As per the gold loan, anybody is doing gold loan whether it is a bank or a non-bank.<\/p>\n

Nischint Chawathe<\/strong><\/p>\n

Okay. And any specific observations relating to Manappuram on gold in the RBI audit?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

No. Other than the guidelines given the other points at-all they have observed in the past and all those issues are addressed.<\/p>\n

Nischint Chawathe<\/strong><\/p>\n

Got it, got it. And just one small one. You raised some ECB during the quarter. So you know any color in terms of the rate of interest or terms on that?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Which one?<\/p>\n

Bindu A.L<\/strong><\/p>\n

ECB.<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

ECB.<\/p>\n

Bindu A.L<\/strong><\/p>\n

Yeah. So the all-inclusive below 9%.<\/p>\n

Nischint Chawathe<\/strong><\/p>\n

And how long is this?<\/p>\n

Bindu A.L<\/strong><\/p>\n

It’s three years.<\/p>\n

Nischint Chawathe<\/strong><\/p>\n

Sure. And just one small one. On the bank loans, these are all linked to repo MCLR, what are these linked to?<\/p>\n

Bindu A.L<\/strong><\/p>\n

MCLR.<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

All are MCLR.<\/p>\n

Bindu A.L<\/strong><\/p>\n

ECB are linked to the bank [Indecipherable] MCLR-linked.<\/p>\n

Nischint Chawathe<\/strong><\/p>\n

Got it. Thank you very much. Thank you very much.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from line of Shubhranshu Mishra from PhillipCapital. Please go ahead.<\/p>\n

Shubhranshu Mishra<\/strong><\/p>\n

Hi, thanks for the opportunity. The first one is data seeking question. What were the auction levels in this quarter? The weighted average LTV which is — sorry, the gold price per gram and the accrued interest. And what would be the proportion of the book below INR1 lakh, INR1 lakh to INR5 lakh, and more than INR5 lakh?<\/p>\n

Unidentified Speaker<\/strong><\/p>\n

The auction number is INR360 crore. Gold price is INR7,080. Average LTV is 58%.<\/p>\n

Shubhranshu Mishra<\/strong><\/p>\n

Accrued interest?<\/p>\n

Bindu A.L<\/strong><\/p>\n

INR1,095 crore.<\/p>\n

Shubhranshu Mishra<\/strong><\/p>\n

Okay. And…<\/p>\n

Unidentified Speaker<\/strong><\/p>\n

Up to INR1 lakh — on INR1 lakh 42.3%; INR1 lakh to INR3 lakh, 34%, balance in above INR3 lakh, 24%.<\/p>\n

Shubhranshu Mishra<\/strong><\/p>\n

Okay, sure. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Mohit Jain from Tara Capital. Please go ahead.<\/p>\n

Mohit Jain<\/strong><\/p>\n

Hello?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Yes.<\/p>\n

Mohit Jain<\/strong><\/p>\n

Yeah. Hi. Good evening, sir. Sir, just wanted to have a review further on the question that was asked regarding the credit cost. So we — I think in Q2, we have already touched somewhere around 7% for Asirvad. And now the disbursement has been stopped by RBI and it may continue for some period of time. And in case of MFI, once the disbursement stops, the credit cost deteriorates further because the collection also becomes difficult going by the nature of the business. So where do you see — is it fair to say that the credit cost may touch double digit in next couple of quarters for Asirvad?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

See, one advantage is now the entire focus is in collection. So we are implementing many things like — to motivate the customers to make online payments etc., and so many — and for the employees also collections in due then meetings etc. etc. So post this issue, we have not seen any impact so far. Whatever is there, what was there before that, so that continues.<\/p>\n

And we are hopeful that with all these things employees motivating as well as the incentives, plus wherever the people are available, wherever weekly collections are needed, that also is being facilitated. So this way we hope that we’ll be — our collections will not be worse than other players and the regulatory action will not impact us as far as collection is concerned.<\/p>\n

Mohit Jain<\/strong><\/p>\n

Okay, sir. And sir, one more question. Has there been any communication from any of the lenders so far as regards to the early repayment of any loans? And then talking from the viewpoint of the borrowings, whether any banks or any other financial institutions have asked for the repayment of the borrowings from Asirvad post this plan?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

No, we don’t expect that. Why? because the Manappuram has a very good connection with the lenders for a long time and Asirvad also has sufficient liquidity to meet the obligations. Also, we had called the important lenders meet, etc. etc. and shown them the what will be our ALM, etc. etc. And nobody has raised any serious concerns about that, and nobody has recalled any loan, and we don’t expect that.<\/p>\n

Mohit Jain<\/strong><\/p>\n

Okay, sir. Okay. Thank you, sir.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Rishabh Gang from Sacheti Family Office. Please go ahead.<\/p>\n

Rishabh Gang<\/strong><\/p>\n

Yeah. Hello, sir. Thank you for the opportunity. You know, sir, in addition to microfinance, I read that Asirvad housed 15 [Phonetic] gold loan branches which will be impacted because of this ban. So, if you can just tell about what were the — like how Asirvad and gold loan is related and any impact on the gold loan operations?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

So, in Asirvad, all the lending operations are put into a halt from 22nd of October. So all the concerns raised by the regulator we have addressed that. So we have given our reply etc. And we have requested the regulator to commence their — to remove the ban etc. etc. We hope that they will follow their usual practice of conducting inspection very soon. And as the issues are not too many, we hope within a reasonable time the ban will be lifted. Until then, all the lending including gold loan are — new disbursements are stopped there.<\/p>\n

Rishabh Gang<\/strong><\/p>\n

Sir, what kind of, you know disbursements of gold loan was happening from these Asirvad branches?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

So it was — the AUM was INR1,100 crores.<\/p>\n

Bindu A.L<\/strong><\/p>\n

Yes.<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Yes.<\/p>\n

Rishabh Gang<\/strong><\/p>\n

Of gold loan in Asirvad, correct?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Yeah.<\/p>\n

Bindu A.L<\/strong><\/p>\n

Yes.<\/p>\n

Rishabh Gang<\/strong><\/p>\n

Okay. AUM was INR1,100 crore, and per month the disbursal?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

INR1,100 crores, which was around 9% of the book, right? Yes, 9% of the AUM.<\/p>\n

Rishabh Gang<\/strong><\/p>\n

All right. Also, do we have risk -based pricing right now, or like have we started it for the MFI?<\/p>\n

Bindu A.L<\/strong><\/p>\n

MFI, it is uniform pricing.<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Yeah.<\/p>\n

Rishabh Gang<\/strong><\/p>\n

So like any rationale like why don’t we have risk-based pricing and what do we think about it? Yeah.<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

See, we had a discussion at the Board level. We felt like yeah, that is not a good idea because in some areas some customers are bad and their load should not be pushed to the other good customers in that region. So ultimately, we thought we’ll have a uniform pricing policy.<\/p>\n

Rishabh Gang<\/strong><\/p>\n

All right. But do we want to go to a risk-based pricing later on, or we will continue with the uniform?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

No, no. See, our logic is simple. So, some customers are bad in a particular group or geography, why the other customers take the load of that bad customer? So, now in these areas what we will do, we will have our own risk management plan there by restricting lenders to a very low level and also higher bureau score etc. etc., rather than pricing high in these geographies.<\/p>\n

Rishabh Gang<\/strong><\/p>\n

Also just a last question like the actions which we have thought about for rectifying these violations by when will this rectification happen? In case you have already mentioned, can you just repeat that like how many months?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Yeah. Our entire missionary is ready with full compliance of whatever has been sought for, and this has been informed to the regulator and we pray too for the removal of the ban and we hope they will speed up their procedures like whatever inspection or whatever they wanted to do, they would do and we hope it will not get too much delayed.<\/p>\n

Rishabh Gang<\/strong><\/p>\n

So, as per your management estimate and industry knowledge, in how many months it should get resolved, like the ban be taken off?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

See, usually, they take some time. Usually, minimum they take three to four months, and that is our expectation also even when we are fully geared up.<\/p>\n

Rishabh Gang<\/strong><\/p>\n

Also, you know your housing finance portfolio yields are I think also on a little higher side. So what do you think about that? Like can RBI also take action for that?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

So, in all these areas, we have made changes to ensure the concerns raised by the regulator from time to time are fully addressed.<\/p>\n

Rishabh Gang<\/strong><\/p>\n

Sorry, pardon?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

All these are — whatever concerns raised by the regulator in the past are fully addressed. Whatever the — in the NHV inspection, whatever was raised, all these are addressed now.<\/p>\n

Rishabh Gang<\/strong><\/p>\n

All right. Got it. Thank you so much, sir. Best of luck.<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Welcome.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. [Operator Instructions] Our next question is from the line of Tanuj from DSP. Please go ahead.<\/p>\n

Tanuj Kyal<\/strong><\/p>\n

Hi, sir. So even on the non-MFI businesses like for the past two quarters, we have seen some increase in NPAs. So what’s driving this? And given that these are higher growth businesses, should one expect lower growth even in these businesses going ahead given the NPA increase?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

See, the industry faced — the economy faced many challenges, right. So heat waves then natural calamities, etc., etc. So this has a general impact in the credit cost for the lending industry as a whole, and that is what has impacted us also. So it is similar to the other players in the industry where we are in.<\/p>\n

Tanuj Kyal<\/strong><\/p>\n

Okay. And any growth slowdown you envisage in these segments?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

We feel like the growth will continue. There will be some seasonal impact. Other than that, we don’t expect any slowdown as far as growth is concerned.<\/p>\n

Tanuj Kyal<\/strong><\/p>\n

Sure. Thanks, sir.<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Welcome.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Love Sharma from J.P. Morgan. Please go ahead.<\/p>\n

Love Sharma<\/strong><\/p>\n

Hi. Thank you management for the time. Just a couple of questions. I think, first one, if you could just highlight what would be the monthly collections for Asirvad for the next quarter, if you could have it for the next three months, and the repayments which you have there on a monthly basis?<\/p>\n

And second would be, I think Asirvad’s numbers really — statements highlighted some covenant breaches. If you could just indicate what kind of covenant breaches are these and what kind of — what is the amount of loans under those breaches? Thanks.<\/p>\n

Rajesh K R N Namboodiripad<\/strong><\/p>\n

I think, Asirvad, so we have a steady collection as per the — I mean based on the collection efficiency we have the — all the ALMs are positive across the buckets. So there is no ALM mismatch in any of these. So, our collections are adequate to meet our operations as well as our repayments of the loans.<\/p>\n

Bindu A.L<\/strong><\/p>\n

And we have included the details in Page number 26.<\/p>\n

Love Sharma<\/strong><\/p>\n

Thanks. On the covering breaches, could you just indicate what is the quantum of loans?<\/p>\n

Bindu A.L<\/strong><\/p>\n

Covenant breach.<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

So — covenant breach, there is only one covenant breach on a NCD, which is a very small amount so that is on the GNPA. So other than that, there are term loans which we are in discussions, I mean — but we don’t think any serious impact on that.<\/p>\n

Love Sharma<\/strong><\/p>\n

Sorry. Just to repeat myself again. What is the amount of these two NCD plus term loan?<\/p>\n

Bindu A.L<\/strong><\/p>\n

So NCD, it is very small amount only. I think it’s around — less than 50INR50 crores. For the bank covenant breach, we are discussing with them.<\/p>\n

Love Sharma<\/strong><\/p>\n

Okay. Would it be possible to quantify what — just even if it is a rough estimate?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

We can share that.<\/p>\n

Bindu A.L<\/strong><\/p>\n

Yeah, we will share it separately.<\/p>\n

Love Sharma<\/strong><\/p>\n

Okay, sure. Thanks. And both of these have the same GNPA-related covenant breach.<\/p>\n

Bindu A.L<\/strong><\/p>\n

Yeah.<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Yeah. Yes.<\/p>\n

Love Sharma<\/strong><\/p>\n

Okay. Understood. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is on the line of Bunty Chawla from IDBI. Please go ahead.<\/p>\n

Bunty Chawla<\/strong><\/p>\n

Thank you, sir. Thank you for giving me the opportunity. As you said, there has been changes in the MFI portfolio which you are expecting to be in next three to four months. So my question is, if we put the changes in the gold loan and now MFI portfolio all done and well by March. So, on a long-term basis or from FY ’26 onwards, how these changes will impact our growth trajectory on an overall basis? And ROA if you can share that on a longer-term basis, how one should see the AUM growth as well as the ROA?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Yeah. It will do better only, you know, C1 [Phonetic] gold loan if you think. Yes. So all the players will come into the same plane with regard to compliance. So there will be — is definitely, a level playing field, which will help the leading industry players. Regarding the other segments of the secured loans, vehicle loans, etc., etc., there are the challenges like natural calamities etc., etc. is over. Now, certain geographies we had problems, the elections etc., etc. So these are getting somewhat moderated with a few elections going to come. So regarding MFI, we are expecting a moderate growth thereafter some 15%, 20%. But our focus will be more on the credit quality, credit discipline etc., etc. So more prudence etc. So what I hope is a secured segment in our consolidated book will outgrow unsecured.<\/p>\n

Bunty Chawla<\/strong><\/p>\n

So, on an overall basis, can we say 12% to 15% growth on an overall basis can we consider for a long-term per se?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Yeah, yeah. So we are targeting around 15% to 18% growth — 15% to 18% growth with more focus in the growth of a secure loan portfolio including gold loan.<\/p>\n

Bunty Chawla<\/strong><\/p>\n

Okay. Okay. Thank you. Thank you very much, sir.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Gaurav [Phonetic] from Capital Farming Consultants. Please go ahead.<\/p>\n

Gaurav<\/strong><\/p>\n

Hi. Thanks for taking up my question. I hope my voice is audible.<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Yes.<\/p>\n

Gaurav<\/strong><\/p>\n

Yeah. Thanks. So my first, just a clarification that are we still looking for IPO placement of Asirvad, or it has been completely taken off from the shelf?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

See, it is too early to tell anything about that. We have time up till April. So we are not taking a call on anything now. We have the time. We will see the market, how the market, etc. etc. How fast the ban is going to be removed, etc. etc. So based on market conditions, we will take a call on that.<\/p>\n

Gaurav<\/strong><\/p>\n

Okay. So question to the Asirvad team specifically that like in standalone books of Manappuram, we quantify our overall AUM in various products like gold loan, vehicle finance, SME, on lending, etc., etc. So I hope there will be different product segments. So, can we quantify that which product segment is up to what percentage in overall book of Asirvad microfinance? I think our overall AUM is approximately INR11,880 crore. So, if you can quantify in product segments. I know that to one of the earlier participants you have mentioned that overall 9% is a gold loan so remaining what [Speech Overlap].<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Sure. There are only three segments there. So, microfinance is over 90%, and 9% gold loan in the AUM, and a small amount of some INR40 crores in MSME — secured MSME. [Indecipherable].<\/p>\n

Gaurav<\/strong><\/p>\n

And what would be the minimum and maximum tenure of the loans that we extend in the MFI?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

MFI, we extend up to eight to 24 months, but the normal — but average tenure remains around 18 months.<\/p>\n

Gaurav<\/strong><\/p>\n

Sure. So Bindu ma’am was highlighting Slide 26 of the presentation that we have uploaded in the website.<\/p>\n

Operator<\/strong><\/p>\n

Sorry to interrupt, Mr. Gaurav. I request you to join the question queue for any follow-up questions. [Operator Instructions] Our next question is from the line of Rishikesh from RoboCapital. Please go ahead.<\/p>\n

Rishikesh Oza<\/strong><\/p>\n

Yeah. Hi. Thank you for the opportunity. Sir, our gold AUM has grown 17% year-on-year…<\/p>\n

Operator<\/strong><\/p>\n

Sorry to interrupt, Mr. Rishikesh. Can you please switch to handset mode?<\/p>\n

Rishikesh Oza<\/strong><\/p>\n

Is it better now?<\/p>\n

Operator<\/strong><\/p>\n

Yes, sir.<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Yeah, yeah.<\/p>\n

Rishikesh Oza<\/strong><\/p>\n

Perfect. Yeah. Hi. Thank you for the opportunity. Sir, our gold loan AUM has grown 17% year-on-year, while if I see the tonnage, it is flat on a year-on-year basis. So is it all led by a price increase? And would also like to know what tonnage growth do we see going ahead.<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

See, we’re not worried about tonnage growth. We are concerned only about two things, how the AUM is growing, what is the acquisition in the number of customers. In both these, we have grown. The other thing is, if the price has gone up, the customer will not borrow more other than his requirements. As I used to tell in my earlier occasions also is that — when the customer borrows, he intends to redeem that within the shortest time. That’s why the average life of gold loan is around 100 days. When the gold price has gone up, the LTV — average LTV has come down to 58%. So, if the price goes, he takes the advantage by bringing smaller quantity. If the price goes down, the reverse is happening.<\/p>\n

Rishikesh Oza<\/strong><\/p>\n

So, what steady state gold loan growth do you foresee?<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

So, as I told, we expect the gold loan to grow at 10% to 15% annually. Now — yeah, we see the opportunities for a sustained growth with changes and bringing a level playing field to all the players by the regulatory changes.<\/p>\n

Rishikesh Oza<\/strong><\/p>\n

Perfect. Got it. Perfect. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Vatsal Parag Shah from Knightstone Capital. Please go ahead.<\/p>\n

Vatsal Parag Shah<\/strong><\/p>\n

Yeah. Thank you for taking my question. So, just one clarification. So in the earlier quarter, we gave a consolidated credit cost guidance of 2%. So does it still stand, or we are changing it?<\/p>\n

Bindu A.L<\/strong><\/p>\n

It’s not very clear.<\/p>\n

Vatsal Parag Shah<\/strong><\/p>\n

Hello? Am I audible now?<\/p>\n

Operator<\/strong><\/p>\n

Yes, Mr. Vatsal. Please go ahead with your question.<\/p>\n

Vatsal Parag Shah<\/strong><\/p>\n

Yeah. So, I was saying that in the earlier quarter, we gave a credit cost guidance of 2% on a consolidated level. So, does it still stand or we are changing it?<\/p>\n

Bindu A.L<\/strong><\/p>\n

We have not changed it. So we will see the progress in collection because whatever climatic conditions, etc., the team is confident of improving that. So as it, we have not changed the estimates.<\/p>\n

Vatsal Parag Shah<\/strong><\/p>\n

So it is still 2%, right?<\/p>\n

Bindu A.L<\/strong><\/p>\n

Yes.<\/p>\n

Vatsal Parag Shah<\/strong><\/p>\n

Okay. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Ladies and gentlemen, that was our last question for the day. I would now like to hand the conference over to the management for closing comments.<\/p>\n

Bindu A.L<\/strong><\/p>\n

Thank you, all.<\/p>\n

V.P. Nandakumar<\/strong><\/p>\n

Thank you. Thank you for your good questions. We hope that we have answered that with all the information at-hand. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

[Operator Closing Remarks]<\/p>\n","protected":false},"excerpt":{"rendered":"

Manappuram Finance Ltd (NSE: MANAPPURAM) Q2 2025 Earnings Call dated Nov. 05, 2024 Corporate Participants: V.P. Nandakumar \u2014 Managing Director & Chief Executive Officer Bindu A.L \u2014 Chief Financial Officer Rajesh K R N Namboodiripad \u2014 Chief Financial Officer at Asirvad Micro Finance Limited Unidentified Speaker Analysts: Abhijit Tibrewal \u2014 Analyst Piran Engineer \u2014 Analyst […]<\/p>\n","protected":false},"author":2377,"featured_media":147581,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[6349],"tags":[10169,9175,9104,9092,14492,10089],"class_list":["post-176845","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-transcripts","tag-earnings","tag-earnings-call","tag-earnings-conference","tag-earnings-transcripts","tag-financial-results","tag-quarterly-earnings"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":125775,"url":"https:\/\/alphastreet.com\/india\/earnings-highlights-of-manappuram-finance-for-q2-2022\/","url_meta":{"origin":176845,"position":0},"title":"Earnings highlights of Manappuram Finance for Q2 2022","author":"Nishad","date":"November 15, 2021","format":false,"excerpt":"Manappuram Finance Ltd (NSE: MANAPPURAM) posted its second-quarter 2022 earnings results. 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