Thank you, Steve. Good evening, everyone.

I am Abhijit Tibrewal from Motilal Oswal, and it is our pleasure to welcome you all to this earnings call. Thank you very much for joining us for Manappuram Finance earnings call to discuss the Q1 FY27 earnings.

To discuss the company's earnings, I am pleased to welcome Mr. V.P.

Nandakumar, Chairman and MD; Dr. Sumitha Nandan, Executive Director; Mr.

Buvanesh Tharashankar, Group CFO and CFO; Mr. Manoj Prasanna, Co-CEO, Asirvad Microfinance; Dr.

Roy Varghese, Co-CEO, Asirvad Microfinance; Mr. Amandeep Singh, CFO, Asirvad Microfinance; Mr.

Kamal Parmar, Head, Vehicle and Equipment Finance; Mr. Rakesh Sharma, Co-CEO, Manappuram Home Finance; Mr.

Suveen P.S., Co-CEO, Manappuram Home Finance; and Mr. Robin Karuvelil, CFO, Manappuram Home Finance.

On behalf of Motilal Oswal, we thank the senior management and the Investor Relations team of Manappuram Finance for giving us this opportunity to host you today. I now invite Mr.

Nandakumar for his opening remarks. With that, over to you, sir.

Thank you. Good evening, everyone, and thank you for joining us for Manappuram Finance Q1 FY27 analyst and investor call.

It's a pleasure to connect with all of you once again as we discuss our performance for the first quarter of FY27 and share our perspective on the opportunities and priorities shaping the year ahead. Operating environment: The first quarter of FY27 witnessed a resilient operating environment for the Indian economy, despite persistent geopolitical uncertainties and volatility in global commodity markets.

India's macroeconomic fundamentals remained strong, supported by healthy domestic consumption, improved rural demand, sustained infrastructure spending, and a stable financial system. Credit demand across the banking and the NBFC sectors continued to remain healthy, while asset quality across secured lending portfolios remained resilient.

Consolidated financial performance overview: Our performance for the quarter reflects the inherent strength of our diversified business model and the resilience of our core gold loan franchise. Consolidated AUM for Q1 FY27 was at ₹69,635 crores, up by 9% QoQ and up by 57% YoY.

Consolidated gold loan AUM for Q1 FY27 was at ₹57,006 crores, ₹57,006 crores, which is 82% of our consolidated AUM versus 80% for Q4 FY26. Consolidated revenue from operations for the quarter stood at ₹3,033 crores, up by 16% QoQ and up by 34% year-on-year.

Profit after tax stood at ₹585 crores, up by 45% QoQ and up by 347% YoY. Coming to gold loan business: The gold loan business continued to be our primary growth engine.

At the same time, we maintain our disciplined approach towards risk management across all businesses with asset quality, liquidity, and capital preservation continuing to remain key priorities. With over four decades of experience in secured lending, Manappuram Finance has built one of the country's most trusted gold loan franchises.

Standalone gold loan AUM for Q1 FY27 was at ₹54,655 crores, up by 12% quarter-on-quarter and up by 97% year-on-year. As guided earlier quarter, our gold loan yield has improved by 59 bps during the quarter.

Coming to microfinance business: Our microfinance business under Asirvad continues to operate in a calibrated manner. As microfinance companies has had witnessed industry-wide stress over the few years, our strategic measures implemented over the last several quarters are beginning to deliver encouraging outcomes.

Our balance sheet remains robust, supported by healthy capital adequacy, a diversified funding sources, and comfortable liquidity buffers. It is provides us with flexibility to pursue growth opportunities while maintaining financial resilience in an evolving operating environment.

Asirvad AUM stands at ₹7,188 crores, up by 5.8% QoQ and up by 7.2% year-on-year. Asirvad has reported a PAT of ₹21 crores in this quarter, up by 58% QoQ and up by 108% year-on-year.

Coming to housing and MSME lending businesses: Our housing finance and MSME lending business continue to focus on profitable growth while maintaining strong credit discipline. Rather than pursuing rapid balance sheet expansion, we remain committed to building sustainable businesses that generate healthy risk-adjusted returns over the long term.

Coming to priorities for Manappuram: It is remaining unchanged. We continue to strengthen our senior leadership team.

Mr. Ashish Soni has been appointed as the MD and CEO and expected to join by January 1st of 2027.

He is a seasoned banker with over 25 years of experience in the retail banking space and his latest experience at the IDFC FIRST Bank as head of retail liabilities and previously as leading rural banking business. Moreover, we continue to maintain our retail leadership in the gold loan business through customer-centric innovation, the digital capabilities, and operational excellence.

Simultaneously, we will focus on growing the performance of our diversified businesses through disciplined underwriting, stronger portfolio quality, and sustainable profitability. Technology, governance, and operational efficiency continue to remain important pillars of our strategy as we build a more agile and future-ready organization.

While the operating environment will continue to evolve, we believe that institutions with strong governance, a disciplined execution, trusted brands, and prudent risk management will emerge stronger over the long term. With our resilient business model, robust capital position, and diversified financial services platform, we are well-positioned to capitalize on the significant opportunities ahead.

With that, I now hand over the call to our President and Group CFO, Mr. Buvanesh Tharashankar, who will take you through that detailed financial and operational performance for the quarter.

We'll then be happy to take your questions. Thank you.

Thank you, Mr. Nandakumar.

Good evening, ladies and gentlemen. Thank you for joining us for a discussion on our financial results for the first quarter ended June 30th, 2026.

In Q1 FY27, performance was driven by a strategic focus on gold loan growth, improved gold loan yields through a greater emphasis on non-gold loan collections and strengthened asset quality. Our consolidated AUM for Q1 FY27 was at ₹69,635 crores, up by 9% sequentially and 57% year-on-year.

Gold loan continued to be our key growth driver with an AUM of ₹57,006 crores, up by almost 12% quarter-on-quarter and by about 98% year-on-year, supported by strong customer demand. Gold loan business constitutes 82% of the consolidated AUM versus 80% in the prior quarter and 65% a year ago.

Consolidated profit after tax before OCI and minority interest was ₹585 crores for Q1 FY27, which sequentially was up 44.5%. Coming to the standalone business: Our standalone AUM for Q1 FY27 was at ₹60,971 crores, up by 9% sequentially and 70.8% year-on-year.

Gold loan AUM in standalone business was ₹54,655 crores, up 12% quarter-on-quarter and 97.4% year-on-year. It constitutes 90% of our standalone AUM versus 87% in the prior quarter and 77% a year ago.

Standalone PAT before OCI was ₹552 crores, up 47% sequentially and 41% year-on-year. Standalone GNPA was at 1.56% versus 1.8% in prior quarter, and credit cost in standalone entity for the quarter was 1%.

The standalone borrowing cost has gone up by about 10 bps in the first quarter of FY27. Coming to the gold loan business: During the quarter, we were able to add about 3.2 lakh new customers, and outstanding number of customers was 26.5 lakhs.

Our average gold loan LTV was at 65.6% in Q1 FY27. Online gold loan book accounts for about 86% of the total gold loan book.

Coming to microfinance business: Asirvad AUM stands at ₹7,188 crores, which includes gold loan AUM of ₹2,344 crores. Overall, the growth was 5.8% quarter- 5.8% quarter-on-quarter and 7.2% year-on-year.

PAT before OCI was ₹21 crores in Q1 FY27 versus ₹13 crores in the prior quarter, and in Q1 FY26, we had a loss of ₹269 crores, essentially a swing of ₹290 crores year-on-year. Net NPA stands at 1.4%, and Asirvad CRAR as of quarter-end was at 31%.

Coming to vehicle finance business: In the vehicle finance business, we have reported an AUM of ₹2,562 crores, down 14.3% quarter-on-quarter and 43% year-on-year. Focus is now on collections as GNPA continues to be elevated at 13.3% versus 10.4% in prior quarter.

Loans to MSME and allied was at ₹3,303 crores with a disbursement of ₹191 crores, and GNPA was at 5.9% versus 7.1% in the prior quarter. Home loan business had a total book of ₹1,847 crores, flat QoQ and down by about 3% year-on-year.

The board has declared an interim dividend of ₹1 for this quarter. Our capital position is strong and company is well-capitalized with a capital adequacy ratio of 21.29%.

The company's consolidated net worth stands at ₹16,552 crores as of June 30th, 2026, and book value per share stood at ₹176.20. We can go now for the Q&A session.

Thank you.

Hi, sir. Thank you for giving me the opportunity, and congrats on a good set of numbers.

My question was firstly on the the the recent implementation of RBI's new framework on the LTV side. What all changes have we made in terms of product tenure, and have we launched income-generating products as well during the quarter?

If yes, what could you please give us some you know could you please throw some light in terms of the interest rate as well as tenure and and the underwriting practice that we have in that category? Thank you.

On the recently RBI circular guideline issued from 1st April onwards, we implemented in the letter and spirit by considering the interest also while calculating that. That is a major change happened, and also the ticket size also came into picture like up to 2.5 lakh, 2.5 to 5 lakh, and above 5 lakh.

That is implemented from 1st onwards. According to the new circular and guideline, and RBI given some options or some various different kinds of product offering options also given.

According to customer requirement and request and all, some of the products like monthly interest payment or monthly EMI scheme category products also we launched as a part of that. There are some acceptance from the customer also, earlier also requests were there, now we got that option.

These are all the changes done, and some of the customer segment like business class customer or business segment is there, those who are regularly getting income on their business and related operations. In that also, a small segment of income-generating loan also started after this April.

Sir,

how is this income-generating loan different from the consumer gold loan that we were doing, except for the bullet repayment part? Is there any other difference apart from having the option of bullet repayment in consumer loan versus in the income-generating loan we have the EMI option, apart from these two, is there any other difference?

The income-generating gold loan is given based on the cash flows, assess the cash flow. We are for that processing the cash flow, etc., whether it is EMI product or quarterly EMI product, interest installment is based on the cash flow.

LTV is also based on that. If it is an equated monthly installment, the LTV is higher.

This gives us an option if overdue, then we can send the due notices, and the recovery process can start as specified by the regulator. Here of course the interest rate on this scheme ranges from 14% to 16%.

14% to 16%, okay.

Got it. Got it, sir.

Got it. Sir, when you say income evaluation or cash flow evaluation is must when you're doing income-generating loan, we have created bandwidth there in terms of hiring staff over the last three, six months?

Or how is it?

We have hired staff and also now we have our own people in the cash flow based products like MSME and vehicle loan, etc., who have the capacity or the knowledge of assessing the cash flow of the customer, etc., visiting borrower, etc. The sufficient training has been given at various levels.

We started this training much before implementation. We started this training at least three months prior to the implementation on April 1st.

These income-generating schemes were implemented subsequently only, we had that time to train our staff for six months. They are adequately trained now.

Got it, sir. Just one follow-up there.

Even in the income-generating What is the earlier Can you repeat on the gold loan, right?

I'm sorry to interrupt, Mr. Shreepal, could you please repeat your question?

You are not audible.

My question was that even in the income-generating loan, we follow the similar LTV norms as we follow in the consumer loans, right?

No. Income-generating loan based on the cash flow, we go up to 85% if it is monthly EMI, 85%, and this is strictly up to that.

The LTV is higher, but at the same time, I can tell you the overall average LTV remains at 64%. This is the last week's price.

Now the average LTV would have come down further because the price has gone up during the last one week.

Got it. Got it, sir.

Got it, sir. Thank you so much for answering my questions.

Good luck. Thank you.

Hi. Good evening.

Congratulations on good numbers. Sir, firstly I want to understand this movement of 60 basis points improvement in the portfolio yield.

What drove this? Is it the new products which you introduced under the new regulations, since your portfolio tenure is generally short, is that helping you in maintaining now the yield at a much better level than the earlier products?

Or has there been any underlying shift in the customer segment mix, meaning that more high-ticket customers or has there been any change in the customer mix as well? If you can just answer and whether are we able to maintain the same yield in July, August as well with the same momentum of business?

Hi, this is Buvanesh here. The yield movement is largely, last quarter I think I yielded to the point that we had overcorrected in terms of the pricing that we had, and we were taking some pricing actions to ensure that we are able to enhance the yield.

In Q1, essentially we had taken some pricing actions which are beginning to kind of yield results to us, which is what you see in the Q1 numbers. We see similar trends going forward as well.

From a pricing perspective, we'll probably be in this broad band around the 18% handle. Basically that's where we will be.

It's not on account of any shift in terms of a dispersal mix or any segmentation mix. It's basically what set of actions that we had taken from a pricing perspective to be in line with our peer group, and we continue to monitor that pretty closely.

Okay.

With this, holding on to the yields of around 18 odd percent, have we seen the velocity of business in terms of tonnage growth, customer growth continuing in July and August as well?

Q1, if you look at the growth in one year back, I think it was from a tonnage perspective and a customer perspective, it was a bit weak. In fact, on the tonnage side, I think we had gone down last year first quarter.

This first quarter, despite seasonally being slow, we had a good momentum, and we continue to build on that momentum in July and August as well, both from a customer perspective and from a tonnage perspective as well. Okay.

Just one clarification: when you report LTV as of June end at 65.6 and as of March end at 57.3, this June LTV will also have LTV defined as per the RBI's new regulation, or is it like-to-like comparable? It's not including interest?

No. To some extent, it will include interest, but in terms of largely the LTV movement that you see from 57 to 64 is driven by the price of gold.

If you see that the price of gold has dropped by about 8.5%, consequently, you see a similar movement on the LTV side. It's more of a denominator effect, I would say.

There is no numerator change you are saying. Numerator computation change,

it's

not there. Okay.

No.

Got it. I'll come back in the queue.

Thank

you.

Hi, team.

Is it audible now?

Yeah. No, just going back on the earlier question, where can LTV settle assuming gold prices are stable here?

On an average, this will be like 64, 65, even 66 level only. Like March end, 57 came mainly because of the price only.

₹14,161 was the price. Now, 30th June, that price is at ₹12,954.

That is why this is coming at 66%. Normally in this level if it is continuing, 64 to 67 is the average LTV range in the normal scenario.

Understood. LTV should be range bound out here.

Average this range will be there. If price increases there, because this is on the last day price we are calculating according to the calculations.

That is what is everywhere following that, last base price.

Understood. Understood.

Just secondly, we are seeing a lot of competition on the ground in gold loan, but you all have done pretty well. Just wanted to understand conceptually, if competitive intensity remains strong or even rises, what would you prefer: holding on to margins or sacrificing margins but pushing growth?

See, we will maintain a balance. Currently our pricing is one of at the lowest range in the NBFC industry.

With the market, we cannot be totally away from the market. We have to move according to the market, but I hope we'll be reasonably balanced in that.

Okay.

Okay. Lastly, just a question for Bindu if she's there: this net loss on derecognition of financial instruments of ₹30 crores, just can you explain what exactly that is?

Is that a write-off?

Yes, it's a right-off. We can get back on more specifics on that.

Okay. It's a loan write-off, basically.

Yeah.

Understood. Understood.

Okay. That's it from my end.

Thanks, and wish you all the best.

Thank you.

Hi. Thanks for the opportunity.

I just had one question on the new draft guidelines that RBI the draft guidelines about revolving facility. I just wanted to know is there any such facility in our online gold portfolio currently?

Can you repeat the question? Yes.

Yeah. There is a new draft guidelines on the revolving facility, I just wanted to know is there any such facility in the online gold portfolio currently?

Online gold loan doesn't come under the overdraft. It is normal loan only, which has been vetted in the regular inspections.

Okay. How does the functioning of this loan work once the principle is run down with the customer or how does it work?

When the principle is run down, if the LTV permits, he has the facility in the online gold loan to repledge that at the LTV he wants within the range permissible. That's all.

Okay. Not an overdraft.

It is not an overdraft. He has

the facility to repledge at the prevailing LTV within that prevailing LTV, he has the option. All right.

Thank you.

Mr. Prithviraj, does

that answer your question? That does.

Thank you.

Good evening. I had a few questions.

Firstly, on the LTVs again, how are the origination LTVs? Do you have any loan which are originated at around 85% LTVs post the new norms?

I can say we are working within the regulations. If customer loan is up to 2.5 lakhs, there is a regulation.

Beyond that also, there are certain caveats. The interest also is factored while calculating that.

Having

said that, for income-generating assets, we go up to 85% is the maximum, 85%. These are EMI products or daily products.

Here, even though we have the gold collateral with us, more thrust is given to assess his cash flow. These are all for the business people.

Who are even otherwise qualifies for EMI products based on the cash flow, based on whatever security is later insisted upon.

That income-generating gold product actually my understanding is there's no required LTV cap for that, right? With

the regulation, there is no LTV cap, but internally we have fixed that cap to be 85% maximum. That's the maximum.

Got it. What proportion of your book will be say originated at that 75% to 85% band?

What proportion would be the income-generating loan in the book?

That data can be shared separately. We have to take that data.

That's right, yeah.

Okay. What would be your branch expansion plans for this year, and any acceleration expected?

Now, one good news for us is the requirement of prior approval from RBI has been removed. This facilitates the opening of the branches.

We have the plan to open around 500 branches now. Already progressing in that stream.

Sorry, 500 branches for this year?

That is what is planned.

Would this all be in standalone, or would this also include Asirvad?

No, this is for Manappuram. For other businesses like home finance or MFI, they have their own plans.

90% of these would be gold loan branches.

Yes,

yes, yes. Asirvad gold loan branch expansion will be on top of this, or this is part of that 500 for the group?

Manappuram Finance and Asirvad, all these will come under this 500. This is the plan.

Got it. On the cost of funds For gold loan,

yeah.

Yeah. Got it.

My last question is on the cost of fund. We've seen about 20 bps increase in standalone.

Where do you see this settling? Does it go up further in the next quarter?

Buvanesh here. In terms of cost of fund, given the overall environment where we have seen spikes in terms of the rates in the shorter end, we've seen a spike in the rates, we've seen MIFOR also all-time high levels.

Despite that, first quarter we've been able to manage from a cost of fund perspective, we've been able to keep it fairly under control. We continue to monitor and see in terms of opportunities that will arise in future, and we'll work on that.

It's very difficult to put a number on in terms of where this will settle in, but having seen that these are elevated currently, we could expect some of this coming into our cost of fund as well, but it's very difficult to predict where this will be.

Some sense on where your marginal funding cost is versus the average of about 8.8? Incremental basis?

On an incremental basis, I would say, we will be around the 8.8, 8.9 handle is what I would look at.

Okay. Thank you.

That's all from my side.

Thank you for taking my questions. My first set of questions is on the gold loan space.

Going forward, we have the branch addition plan for gold loans, but gold prices have been pretty muted in this year. Keeping that in mind, what is the gold loan growth guidance that you would like to give for FY27?

Also on the yields, we have seen yields declining consistently, but this quarter, they have come back up. What is the steady-state gold loan yields that we should think about going forward from here on?

Those are my two questions on the gold loan.

We expect the yield to be somewhere around 18%. May go down by 25 basis points or go up by 25 basis points.

Beyond that, we don't expect anything. It will be around 18%.

The branch expansion plan and price remain stagnant. The price is not a factor which is determining branch expansion.

Branch expansion the scope is there because there are many places we are not represented and we have a potential for growth. Those places are identified, and selected for branch opening.

Understood, sir. What is the gold loan growth guidance that you would like to give for FY27?

We have grown around 12% nearly 12% in Q1. Our expectation for growth of gold loan this year is some around 30% because some quarters are seasons, some quarters are off seasons.

We expect that to be some between 25% to 30%.

Understood, sir. Thanks.

Just one more question on the non-gold businesses: the vehicle finance, MSME, and home loan businesses have been in a growth moderation phase for a few quarters now. When should we expect them to turn towards growth, and what are our plans for those segments?

We have temporarily stopped the vehicle finance, and we are focusing on collection. Our collections are improving because of the improved focus, etc.

The other businesses like mortgage-based loans, etc., yes, it has started picking up, and the asset quality is the more focus. Microfinance also, our focus is on the quality.

Yes, we are complying with our SRO norms, etc., and so it remained with that a level of I think 400 to 500 crores disbursement in MFI.

Understood. Thank you, sir.

Just one last data keeping question: if you could provide the gold loans by ticket size, that would be helpful. I'll just stop here.

Up to 1 lakh, it is 21%. 1 to 3 lakh, it is 30.

Above 3 lakh, it is 49%.

Thank you, sir.

Hi. Thanks for the opportunity.

I have questions on two one on the gold loan segment and another one on the microfinance. On the gold loan, if I heard correctly, we are expecting to open 500 new branches during FY27.

Is that the correct statement?

Yes.

Okay. When I was going through the presentation, I noticed that I think in Q1, we have added 10 branches, if I'm not wrong.

Considering that 10 branches in Q1, is the remaining 490 branches across three quarters, is it operationally feasible, or am I reading something wrong?

After the circular removing the prior approval requirement, we initiated the process. During the initial months, it will be low, but it is steadily picking up.

You will see a good improvement during the second quarter. We are confident of reaching that target of 500 branches, gold loan branches.

That's great. So 500 branches is a feasible number for this financial

year.

That's great. On the microfinance side, when we look at the quarter-on-quarter numbers, right, Q4 of FY26 versus Q1 of FY27, I hope I'm audible, right?

Audible. Audible.

It seems that again losses and provisions have increased, right, in Q1 of FY27 versus Q4 of FY26. Any specific reason why again the provisions have increased in microfinance or I would say Asirvad Microfinance?

Buvanesh here. In Q4, there were one-timers in terms of releases.

I think Q1 is more representative of a normalized provision cycle. This would be where the provisions are.

Q4 had a one-timer, obviously. It was in single digits, I think 9 crores or something.

There were some one-off credits that we had, which is why the Q1 is a more normalized number that you see.

That's great. Within microfinance or I would say Asirvad, the cost of borrowing seems to be on a little bit on a higher side vis-a-vis the cost of borrowing that we have in Manappuram as a standalone entity.

Now considering that the kind of loan book or I would say the asset side that we have that is drastically changed. Now we have almost 30% plus in the gold loan in Asirvad Microfinance, right?

Is there any opportunity that we can further negotiate with our lenders or there is a scope of a reduction in cost of borrowing considering our lending profile in Asirvad now onwards?

Yeah. Certainly there is a window of opportunity.

You rightly pointed out, when you have over 30% of our book in the secured gold loan, it gives us definitely an opportunity to go back to our lenders and negotiate prices for a better cost of borrowing, which we are actively in touch.

All right. If you allow me one more question: in presentation, you have mentioned that in Q1 you have started lending in Manappuram Housing Finance also, right?

Is it a pure play like it will be sitting on the books of Manappuram Housing Finance, or it is again kind of a co-lending model like you have between Manappuram Finance and Asirvad Microfinance? What would be the target of having the gold loan book in Manappuram Housing Finance going forward?

It will certainly be within the limit of qualifying assets here. Qualifying assets will always be maintained.

Will it be kind of a co-lending model, or you will be underwriting on the books of Manappuram Housing Finance only?

We will resort to co-lending model also, not only with the parent company, with the banks also. We approached the banks also in Manappuram Home Finance also for co-lending with the banks.

Thanks a lot. Thank you.

Hi, sir. Thanks for the opportunity.

I have one question that what is the new management's long-term strategy with respect to microfinance business? Do we intend to grow its share of the portfolio like it was a few years earlier or to maintain at the current levels or do we have any strategy or any thinking to reduce its exposure going forward?

What is the long-term strategy for microfinance business? Sir,

I tell at the group level, we want to contain microfinance at below 10% at a consolidated level. We want to grow that along with our overall growth, but in a stable manner where the asset quality is the prime concern.

We stick to asset quality, and we always wanted to have a prudent growth in MFI portfolio.

Understood. Thank you.

Hi. Good evening, and thanks for the opportunity.

I have two questions. One is on the branch opening.

I think in the past, we have seen branches has been one of the big levers of volume growth. With 500 branches, if you can share some color on in terms of where these branches will open and any view on branch opening possibility in the next 1-2 years, that will be the first question.

The second is on the strategic priorities which was set like 2-3 quarters back. If you can give us any progress that has been done till now, I'm sure there will be having lots of work which has done, but some discussion around that will be very helpful.

Thank you.

The branch opening we have assessed where are the growth possibilities higher. I can say yes, around 60% will be in south and central India, that is five states of South India plus Maharashtra.

Say some 28% would be in eastern states like Bihar, West Bengal, Odisha, etc., where we have seen good potential, and the balance in the rest of India.

Sir, on anything beyond that 500, is it a 1-2 year thing you expect more branches to continue to open?

Yeah. Our present target is around 500 branches, and after that we'll examine and proceed.

Thanks. On the second question?

What is your second question?

My question was on the strategic priorities. I think we set some priorities, and you already mentioned that MFI business being less than 10%, that was one of the things.

Yeah. I'm happy to say that our focus will be more on gold loan.

We want to maintain over 75% to around 75% to 80% of the consolidated AUM in gold, and our prime thrust would be secured lending like mortgage-based MSME lending plus affordable housing. This will be.

Yes. We are not giving any priority during this year.

We don't want to disperse any more vehicle loans during this year. After one year, probably in FY28, etc., we may consider whether to restart or not.

As I said, the microfinance will be contained between 8% to 10%. That will be the cap.

On a consolidated basis, we'll put.

Sir, on the opex efficiency, you also had some I think digital activities in opex. Do we expect some efficiency on those front?

Surely, because our AUM per branch is growing. It has grown considerably, right.

You can see the opex also, opex to AUM is also steadily coming down. We hope to improve that going forward.

Great, sir. Thank you.

Thank you so much. I'll get back in the queue.

Hi, sir. Congratulations on good set of numbers.

I have a couple of questions. One, as we have seen, the gold loan market has evolved many fold over the last 4-5 years.

Have you seen any change or drastic change in the customer profile? Like earlier, you used to comment that about one-third business are used to come for emergency use, one-third for agri, and one-third for business.

Are you seeing any change in that end-use proportion? Because what we have seen is proportion of higher ticket size customers have increased significantly, not only for us, but for the industry as a whole.

First question on that. Yeah.

Earlier, this was seen as a distressed product. Now, with the publicity given by all institutions, including banks, more and more business people for particularly MSME, they are availing the loan.

The government's intention and also regulator's intention is to encourage MSME lending using gold as collateral because otherwise the gold is lying idle with them in their lockers, etc., etc. To bring that idle gold into the MSME funding is a priority of the policymakers.

Based on this encouragement, that's why the RBI has gone with liberal in permitting the gold loan companies to open more branches without any prior approval which was the case earlier, etc., and also promoting income-generating gold loan, where there is no LTV, even though we have capped at 85% based on cash flow, etc., etc. All these initiatives are from the regulator, on the regulator's side.

Yes, slowly the profile of the customer is moving to the business class.

Does that mean that since about 49% of the proportion is into more than 3 lakh ticket size, what will be the yield difference between say in that segment say about 3 lakh ticket size customers and say in 1 to 3 lakh ticket size? Because I'm assuming that this higher 3 lakh plus ticket size would be largely business use, right?

The mix remained more or less the same. Considering the mix only, we expect the yield to be around 18%.

Okay.

We know that trend. We know the mix also.

With the evolving mix also, this is our expectation at least for the next one year.

Secondly, as the competition has increased many fold, are we facing any challenges on the employee side? Has the attrition increased or how that has moved over the last 2-3 years, some color on that?

We are not facing challenges in the recent times. Actually the attrition has come down now because of many policy changes we made, etc., the attrition has certainly come down.

We have not seen any attrition at a top level who are handling gold loans.

Any number you would like to give at the branch level?

Our attrition level remained around 2% to 2.5% per month. It has not crossed even now.

Okay. Lastly, any guidance you would like to give in terms of ROA and ROE, where do you see once our business stabilizes on the yield side, it has largely stabilized, where do you see your ROA, ROE stabilizing say over the course of next few years?

We are targeting an ROA of around 3.54 5% to 4%, and targeting an ROE of 15% to 15% to 18%. This is our ROE target.

Okay. Any time frame you would like to give by when you

We expect the ROAs and ROEs to consistently improve, and in 3 years, our expectation is to take that to ROE to around 18%.

Okay. Good to hear that, yeah.

That's it from my side. Thank you so much and best of luck for the next quarter.

Yeah.

Hi, sir. Thank you for giving me the opportunity again.

Sir, I just had a question that what is the yield differential at blended level for income-generating loans and for the consumer gold loan?

The income-generating ticket-wise,

50 to 75 bps higher in income-generating loan.

Okay. It's higher versus the consumer loan, right, the income-generating loan, 50 to 75 basis points.

Yeah.

Is there

any thought process like what percentage of our portfolio would we want to have this coming from income-generating loan as a segment that's in the next one-year time period as the new segment is scaling up?

All depends on the comfort we are getting. We are continuously watching this portfolio.

Now whatever we have given, the experience is very good. In spite of that, we have not gone beyond 85%, even though we have seen some lending institutions lending even more than that.

We have stick to that. The LTV there also ranges from 75 to 85 based on the assessment of the party and the cash flow, his creditworthiness, everything, just like any other loan which are granted based on the cash flow.

Sir, as a proportion, we don't have any clear thought process as yet on what

could be the mix. Because these products are just started.

We are continuously watching. Our experience remains very good.

We are not strictly fixed anything. The portfolio is still very small compared to the overall portfolio.

Got it. Sir.

Thank you so much for answering my questions, sir.

Hi, sir. Congrats on good set of numbers.

I just wanted to check on the new CEO, if you can just elaborate on which all segments he has looked after in his last 10 to 15 years, or the 10 years of stint at IDFC Bank. We understand he is a retail liability head, but what we found common or suitable experience in the candidate that could really help us?

Just wanted to get a sense on which all segments he has looked after in his previous stints.

He has wide experience, 25 years with multiple lending institutions. He has both worked on the liability side as well as retail lending side.

Experience is good. He has worked in Fullerton India in the NBFC.

He has worked in the other NBFCs and banks. His experience in retail lending is good.

Sure.

Thank you so much. You have asked many relevant questions, which we tried to answer with the data we have.

Those who wanted more details, you can remain in touch with us. Thank you.