Thank you, Sagar. I welcome you all to the Q1 FY '27 earnings call of HDB Financial Services Limited.

We have with us Mr. G.

Ramesh, MD and CEO, along with Mr. Jaykumar Shah, CFO, and the senior management team of the company.

I hope all of you would have had a chance to peruse our financial results, investor presentation, and press release, which has been filed with the stock exchanges earlier today and is also available on our website hdbfs.com. We will start with the management remarks and then open up the call for Q&A.

The audio recording of this call will also be available on our website shortly after the call ends. I would now request our MD and CEO, Mr.

G. Ramesh, for his opening remarks, following which our CFO, Mr.

Jaykumar Shah, will provide a brief on the financial results, and then we open up the call for Q&A.

Thank you, Vishal, and a very good evening to all of you joining in. Starting with the macros, domestic economic activity continues to show resilience despite some of the concerns we had arising out of the West Asia conflict.

While the momentum remained healthy, real GDP growth expectations have moderated down to 6.6% for FY '27, as highlighted by RBI in its monetary policy. Inflation projections have increased to 5.1%, driven by supply-side pressures.

On the policy front, regulator maintained its neutral stance, keeping the repo rate unchanged. Supply chain challenges that might arise from the ongoing West Asia conflict and El Niño-related risks remain a key monitorable.

Coming to vertical-wise commentary, on enterprise lending, Q1 disbursements for the segment grew by 14% year-on-year. Our LAP plus EBL, which is our mortgage book, it expanded by 13.2% year-on-year, and we anticipate this upward trajectory to continue.

Our gold loan disbursements as well as book has doubled over last year. Gold loans is positioned for continued traction, supported by the enablement of close to 500 branches of our existing branches through which we deliver gold loans.

In unsecured business loans, disbursements started to accelerate in the latter part of the quarter, positioning it for improvement going forward. Portfolio quality and collections were healthy for this vertical.

We expect positive momentum to continue in enterprise lending. On asset finance, commercial vehicle book registered a modest growth of 10.10% year-on-year, while construction equipment book grew by 8% in the same period.

Improving sentiments, led by demand around last-mile mobility, bode well for asset finance business, while monsoon remains a key monitorable. We saw continued improvement in asset quality in this segment, with Stage 3 improving sequentially.

With a focused approach in this market across our asset finance businesses, we'll continue to drive growth in our desired product portfolios over the coming quarters. Consumer finance, this segment delivered a strong quarter, with the book growing by 7.5% quarter-on-quarter and 21% year-on-year.

Consumer durables book expanded by over 50%, 50, 50% year-on-year, led by deeper penetration across our extensive distribution network, further supported by seasonal demand for compressor products. Auto loan book grew by 21% year-on-year, both on value and volume growth was healthy.

We expect momentum to continue in consumer finance segment on the back of sustained demand for our products. Overall, Q1 was a quarter marked by disciplined operational execution.

Our customer franchise expanded by 19% year-on-year to 23.9 million. Disbursements grew by 16% year-on-year.

Profit after tax grew by 38% year-on-year, while Stage 3, which seasonally is a weak quarter in Q1, improved to 2.34% of our book as compared to 2.44% as of March 31, 2026, and 2.56% as of June 30, 2025. CRISIL, which is India's largest rating agency, assigned us a strong ESG rating with a score of 68 in our very first evaluation, underscoring our commitment towards sustainable business practices.

On the technology front, we are using artificial intelligence to transform the experience of our customers from a transaction journey into a lifecycle journey. Over the years, we have strategically built a strong product suite designed to fulfill every financial need a borrower might encounter through their life.

With an AI-first design, we are actively shifting the paradigm, ensuring that a specific loan is not viewed as an isolated transaction, but as a critical component of a long-term financial relationship where we support the customer at every milestone. Our transformation plan maps out how we are using AI to manage this entire lifecycle journey from onboarding, faster processing, intelligent customer servicing, collection automation to predictive, hyper-personalized offerings.

We plan to make every interaction a meaningful long-term engagement, helping us to fulfill not just an immediate need, but to build a lasting financial partnership with our customers. As a part of this journey, we are happy to announce that we'll be bringing all our AI transformation journeys into a single umbrella, Shikhar.

On that note, I hand over to Jaykumar for an update on the financials.

Thank you, Ramesh, and thank you, everybody, for tuning in. Moving on to the financial performance for the quarter, customer franchise grew to 23.9 million, with an increase of 18.6% year-on-year and 4.1% sequentially.

Disbursements for the quarter ended June 30, 2026, was 17,629 crores, up 16.2% year-on-year. Gross loan book as on June 30, 2026, stood at 1,21,846 crores, growing 11.3% year-on-year and 2.8% sequentially.

Secured loans comprised 73.9% of the gross loan book. Profit after tax for the quarter ended June 30, 2026, was 785 crores, our highest ever quarterly profit to date, an increase of 38.3% year-on-year and 4.6% QoQ.

Gross Stage 3 as at June 30, 2026, improved to 2.34%, as against 2.56% as at June 30, 2025, and 2.44% as at March 31, 2026, with a provision coverage of 55.73%. Net interest income for the quarter was 2,509 crores, an increase of 19.9% year-on-year and 4.6% quarter-on-quarter.

Net interest margin for Q1 FY '27 was 8.35% versus 7.74% in Q1 FY '26 and 8.23% in Q4 FY '26. Cost-to-income ratio for our lending business was 39.9% in Q1 FY '27, as compared to 42.7% in Q1 FY '26 and 39.5% in Q4 FY '26.

Pre-provisioning operating profit, PPOP, for the quarter was 1,726 crores, an increase of 24.3% year-on-year and 3% QoQ. Credit cost for the quarter was 2.32%, as against 2.35% for the previous quarter.

Return on asset annualized for the quarter ended June 30, 2026, stood at 2.5%, which is very similar to what we achieved in Q4 FY '26. ROE annualized for the quarter ended June 30, 2026, stood at 15%.

Earnings per share for the quarter ended June 30, 2026, was 9.5 rupees, and book value per share stood at 256.7 rupees. Our borrowing mix remains well-diversified, with a positive cumulative mismatch across all buckets up to 5 years.

We remain well capitalized with total CRAR of 21.29% as at June 30, 2026. We now open for Q&A, and would request Sagar to open the queue for questions.

Hi, sir. Congrats on a good set of numbers.

Sir, just two, three things. One on this asset financing piece, right?

Just wanted to know your outlook on asset financing. When we look at the vertical-wise disbursement, asset financing is the only piece where even disbursement is yet to pick up.

What's your sense why this segment is taking longer to recover? Is this because of some market-related issue or it is just our cautious stance that we are going slow in this business?

Thanks, Renish. Renish, on the asset finance side, as we spoke during the previous quarter, that's something which we built up as a moat in terms of building the used side and working carefully in terms of which products we focus on new.

Large part of that work has been done. We are now at a juncture where you should start to see growth coming through.

Let's wait for the next few quarters for the numbers to show up. That's all that I would say.

Okay.

Is it fair to assume that maybe July onwards, the run rate at least on a monthly basis has started improving?

We should see that happening, Renish. Okay.

Just related to that on the asset quality side, right? Again, when we look at the segment-wise asset quality and sir also mentioned in the opening remarks that this Stage 3 in asset financing also improving since last two, three quarters.

The early indicators also suggest that that kind of stress in that segment, which used to be there earlier, is subsiding. Hence, one should expect a better run rate in asset financing piece going ahead?

It should surely improve is the way I would look at it. If you see overall, generally speaking, Q1 is lighter as compared to Q4 from an asset finance and from an overall book point of view.

Very happy today that not only have we stabbed our Stage 3, we've actually slightly improved it, right? Even on the overall piece, when you look at how Stage 1, Stage 2 moves, generally it's a much larger move.

Today with a small movement, which would have largely caused in the beginning of April rather than June, quite pleased to say that we're moving in the right direction in terms of asset quality across the board.

Got it. Again, sir, just the last thing on the credit cost side.

As you rightly mentioned that generally sequentially from Q4 to Q1, the Stage 2 increases roughly 60, 70 basis point. Now this quarter, that has been restricted to only 40 basis point.

Also in Q1, despite several industry-level headwinds because of this war and all, we've been able to keep credit cost flat sequentially. Now, keeping this thing in mind, lower Stage 2 accretion in first quarter and also the early bucket, I'm sure is behaving well despite this headwinds, what should be the full-year credit cost guidance in FY '27?

Logically, it should be lower than '26, just wanted to get your sense on this.

Renish, we don't go with guidance. I think we've stated it earlier that we look at credit cost overall to be in the range of 2.3%.

Nothing's changed from there at this point in time. If economic circumstances and are better, then obviously it will come through.

As we've said earlier, ours is a very simplistic model. It's a multiplication from what book we have.

It'll come through. At this point in time, our biggest focus really is making sure the growth comes in in a big way, and that's what we're really focused on all metric across the board, comfortable in terms of where we've reached in Q1.

Got it. Any color you want to give, let us say, in terms of check bounce rate for June, July, whatever data trend you can just share to have some comfort on asset quality piece?

We've started off fine. Nothing to worry is the way I would put it as of now.

You don't know what happens overnight, right? Nowadays, things change overnight only.

No.

Sure, Jay. Yeah.

Okay. That's it from my side, and best of luck.

Thank you.

Good evening, everyone, and thank you for taking my questions.

Is it better now? Yeah.

Better now,

Abhijit. Thank you for taking my question.

My question to the management team is that while we have seen disbursements beginning to pick up now, if I look at the momentum in the last three quarters, disbursements have clearly started picking up. However, as you also covered in the first participant's question is this asset finance business momentum has remained weak and large part of the growth is still being driven by consumer finance.

Just now you said that there's a lot of work that has gone into asset finance, and we should start seeing this business momentum improve. If you could just help us understand, delve a little deeper into what all work has gone at least in that segment, vehicle financing segment?

Also a related question here is that I think in opening remarks, Ramesh sir said that you're continuing to see a lot of strength in the consumer durable business. What is it that is leading to this strength?

Are there any particular product segments, or is it more broad-based?

I'll have Jay add on to the response to your question, Abhijit. When we look at our business, and we have yes stated that we want to be a company that works through a customer through their lifecycle.

Our whole thought process is that what's it that a customer wants through their lifecycle and how can credit help that customer achieve a better quality of life and meet their goals and aspirations and help with the economic growth of the country. That's been our thought process, and that's how we introduce products.

Our product development strategy has centered around aspirational India's segment. I think consumer finance is a business we started last, right?

That is sometime in 2016, '17. That business has much more opportunities to sell with far greater frequency than the other two businesses which we started earlier.

Now, the idea of a multi-product company was also that we will be able to handle seasonality better and also seize the opportunities around seasonalities much better than what a single-product company can do. I think typically Q1 as a period bodes well for the consumer finance business.

We have extensive distribution presence. We have presence in about 160,000 outlets across the country.

We have presence in about 1,200 plus cities in India, and I'm sure you can imagine what the 1,200-city looks like. These are places where we have a boot on the ground, which means that we know what's happening on the ground and we can make sure that we are tailoring our acquisition and our credit strategies around what product is selling, what's not selling, how's the market behaving, how are our customers behaving.

We can really fine-tune our strategy right down to the last pin code that we work with. That's the scale of distribution that we have and presence that we have.

We work with 150 plus manufacturers in the consumer finance space, and we help them sell more of their products. We work with them on seasonal schemes.

We work with them on schemes through the year. A lot of investment has gone into that business, and which is what reflecting in the Q1 numbers of consumer business.

As regards asset finance, we've been very focused on making sure that our product mix reflects a certain risk-return equation that the market expects. To that extent, we have pretty much rejigged our customer acquisition strategy to focus on businesses and products that help us deliver the return on asset that we as a company aspire to deliver, that the market expects.

That's the way we think about these businesses. Again, on asset finance, we have extensive distribution.

We work with all the top manufacturers. We help them sell more of their products.

Virtually every large manufacturer in India, we have a tie-up with them. We would do loan programs with them, promotional events so that we can help sell more of their product.

I think the whole focus has been on making sure that the mix that we deliver is both useful for the manufacturer and relevant to the consumer and make sure that we deliver a certain risk-adjusted return. Jay, anything else you want to add?

Yeah. Just one or two more things to add, Abhijit.

One of the things, carrying on from what Ramesh said, we've actually reduced some of the very high value, low return kind of products. If you look at tractor trailers or high-end HCVs, etc.

On account of that, some amount of value may be reduced, but our volumes have actually gone up. If you ask me, are we doing more volumes?

Answer is yes. Are we really focused on the products that we want to expand in?

The answer is yes. Today, the numbers we've achieved and rejigged, actually in a running train kind of a thing, we've changed the bogies and we're at the same pace.

Right? Having done that, our ability now to accelerate from here in the products that we wish to is much better.

On-the-ground presence in terms of our dealers, our manufacturers whom we're working with to expand from here for the next three to four quarters, not just one quarter, is also a lot more poised. That gives us relative confidence that we should be able to pick up from here.

As I said to the previous speaker, I think let us deliver on our numbers, and we'll discuss in a few months of how we're getting along. We should be able to grow from here on and with reasonable confidence.

Got it. Thank you so much for that.

The second question I had was around the asset quality discussed with the first participant as well. At least we, the analyst community, have been positively surprised with the asset quality that most of the NBFCs are talking about.

Two parts to this question here. One is were you also positively surprised with the kind of asset quality strength that we saw in this quarter because despite the weak seasonality and this US-Iran war raging for most of 1Q, I think things have held up really well.

Do you think, and like you mentioned, do you see this trend continuing or is 2Q going to be a little bit tricky because it's still see some after-impact? I think earlier in the opening remarks, we acknowledged that monsoons because of El Niño are expected to be weaker and below normal, and that remains a monitorable.

How are you thinking about the next 3, 6 months?

Thanks for that, Abhijit. The way I would put it is a lot of work which we do is very granular, and a lot of actions we take provide us with desired results only in a few months after those actions are taken.

A lot of actions specifically taken on the ground in asset finance, and we've been speaking about it for almost three to four quarters, we've been speaking about unsecured business loans for almost a year, and we've been speaking about the rest of the businesses as well. There we took specific initiatives towards January to make sure that when we enter April, at that point in time we absolutely had no inclination or understanding that a West Asia crisis could even occur, was to make sure that our collections which happen in the first cycle, second cycle go down well, how we collect, how we go back in, and we spoke a bit about the AI initiatives that were taken in collections in the last quarter.

A lot of those small, small initiatives on the ground cumulatively have actually helped us in making sure how the bounce really improves and how we go back to the customer in a much shorter span of time and are able to collect. That's one.

Second, West Asia crisis, while it impacts global and impacts a lot of factors, it did not stop people from moving on the ground, and that is a very important factor for us. The reason why Ramesh also called out potential monitorable as monsoon stroke El Niño is because that affects the man on the ground if they cannot move, if they cannot ply, if they cannot run their business, if they cannot get customers, if they can't collect.

That hasn't really happened, and we didn't really expect it to happen in a big way. I would say there is obviously a lot of design that went in, and I'm sure fate has it that things improved.

It is a combination of two that we are where we are in terms of the asset quality is the way I would put it.

Got it. Thank you so much, and then the last question that I had

I can come back. No problem.

Yeah. Hi.

Thank you for the opportunity, and congrats on good set of numbers, especially on the profitability front there. I had basically two questions.

Again, first is on the growth front. I understand you have explained a lot on the asset finance side, but just wanted to check some of the specific sub-segments when I look at, say, the business loans, even the MFI, two-wheeler on a sequential front, the book is actually marginally shrinking even on a sequential basis.

Is there anything more to read over there? Would you be able to just throw some light on that?

Thanks for that, Viral. On MFI, as I had mentioned, it's more of a small pilot kind of a thing which we run.

I wouldn't read too much into it. That's how I would put it on MFI.

Business loans obviously is a very critical deliverable for us, and we have to grow that business. We have taken a lot of initiatives towards the end of March.

Those initiatives, as we spread across our entire network, sometimes takes time in terms of picking up and going with the flow. We today believe that a lot of actions that we've taken are all embedded into our network and very hopeful that that book starts to turn positive from Q2 onwards and then shows growth.

If you remember when we spoke in April, on April 15th, I think we said that we should start to see growth coming into that book from Q3 onwards, and at this point in time we're holding on to a similar thought process in terms of where we see it. Disbursements should start to see growth, and book growth coming in Q3 onwards.

Got it. Just more so from, say, the structural point of view, Jay, when should we start expecting the growth to move closer to the trajectory that we have been guiding and indicating of closer to, say, at least an 18% kind of a growth?

Would that be plausible by, say, the end of this year or, say, first half of next year?

I'm very hopeful, Viral. That hope has underlying numbers to it.

Let me come back to you more closer to dates rather than preemptive. At this point in time, I am relatively confident that Q2 should be positive, in the right direction, leading towards what we've discussed.

Got it. Jay, the second question was with regards to if I look on the profitability front, yields have actually shown a marked improvement.

Of course, there is a mix change plus within the existing product and segments, as you highlighted, you are making some of those changes. How should we think about, say, the margins and the trajectory from here on, given the fact that you are also accreting capital and that will also have a positive benefit?

Viral, overall two numbers which we've been discussing is 8% plus, we hold on to it. The focus clearly is to be at 2.5% ROA.

There will be some amount of mix change quarter-on-quarter that might affect gross yield, but there will be other places where we have advantages even come through things like other income, etc., which will net set it off. At this point in time, we would like to make sure that we're able to deliver on the ROA front on a fairly consistent basis.

Got it. Can I ask a last question?

Quick one, yes. Otherwise you come back, yeah, if that's okay.

Sure. Just a quick one on some of the product segments that you mentioned within the asset finance, you have been consciously vacating some of that.

Would you be able to throw light on who's taking up that part of the business in terms of competition?

Don't think it's my space to comment, honestly.

Got it. Yeah.

Thank you.

Thank you.

Yeah. Hi.

Thank you for the opportunity. I have two questions.

First is on the cost of fund trajectory and how do we look at what is the current scenario in terms of our dealings with the banks? What kind of other liability lines can we dip into for the rest of the third three quarters and on full-year basis, will there be any change in strategy on what kind of liquidity levels you will maintain, etc.?

Second is on asset financing, your gross Stage 3 over here has come down to about 3.6% or so. 3.6%, right?

In some of your peers in good times have seen this come all the way down to 3%. We only have limited historical data for y'all, is that a range that we have historically achieved?

Will that be something which we'll be targeting towards? Thank you so much.

Thanks a lot, Shreya. On cost of funds, as we've said last quarter, we were fine with Q1.

We'd be very well within a range-bound number. Even for Q2 today, we should be fairly range-bound.

Obviously, there's a number of days impact and all of you all are far bigger experts in terms of calculation than I am. We will be very, very range-bound within a narrow range.

For Q2 at least, Q3, while I have obviously my numbers and estimates, etc., if it's okay, I'd rather wait for a little bit of the quarter to go because while I would have been very, very confident on Thursday evening last week or Friday morning, things seem to change faster than I can think sometimes. We're fairly fine at this point in time.

In terms of availability and options for us, they're fairly broad. One number being very old-school that I like to follow is keeping a positive current ratio.

Today I have a almost 1.3 current ratio where I have a lot of flexibility to do short-term. If there is any need, we are able to intra-month, intra-quarter, or even across quarter, go in and make sure we make changes.

When I say make changes, today with a CP book of less than 2%, hardly any short-term loans, ability to go in and out when required is fairly high, and that gives us the ability to make sure that cost of funds is within a tight range. With regard to asset finance and Stage 3, as Ramesh mentioned, I also mentioned earlier, we have worked very hard to make sure we put a lot of boxes in place with regard to our base number in terms of growth, in terms of focus, in terms of what we would do.

Now what you are seeing as a number reduction is actually on a flat book. Now if you just take it slightly differently and the book starts growing, this number will actually start moving down.

That's the first focus that we have to make sure the risk-adjusted return that the book gives is a lot healthier. If things improve in the economy, pretty much hope that this number of Stage 3 also starts moving southwards.

Right. Just a follow-up on the asset finance book, for your customer base, all the fuel supply shock, all the fuel price hike, etc., is there any particular segment where you are still concerned or you feel the fleet operators are in a decent position at current levels?

As at last week, we were good. I think let's wait and watch again as I said what events happen.

Yeah?

All right. Okay.

That's useful. Thank you so much, and all the best.

Thank you.

Hi, sir. Congrats on a good number.

I just had one question, which is pertaining to the segments that we have vacated or where we are focusing less. Is it purely because these segments are low yielding or is it also that you're seeing there is heightened competition there or there is emerging stress there?

Shreepal, it's a combination. As Ramesh mentioned, the focus is really risk-adjusted return.

It's not looking at just the yield or just the competition. At the end of the day, if we believe that we can make our ROA from a particular product, we will double down on it.

If we believe at some points in time that these products won't fetch us the desired ROA over a period of time, then no point trying to put our energies more into it, right? That's the reorg that Ramesh also mentioned that we've largely gone through.

It's now time to double down on what we're good at and where the risk-adjusted return is more healthier.

Got it. In that case, at some point, would we look to shut down microfinance?

Because that we've been doing for quite some time, and we've not really scaled up. Maybe it is positioned that way or maybe it is strategized that way.

Then, would we look to shut it down or something like that?

I don't think at this point in time we'd want to even comment on it. Today it gives us a great moat in terms of understanding the rural market, right?

Without really stressing out on P&L, if somebody allows me through a couple of hundred branches to go into rural, understand the local markets, see how we can serve our customers better, I think it's a great thing and it also makes me positive P&L, then why worry too much? Right?

It's not something which stresses out on P&L or credit cost beyond a point.

Got it, sir. Thank you.

Most of my other questions have been answered. Good luck, sir, for the next quarter.

Thank you so much.

Yeah. Hi, team.

Thanks for taking my question, and congrats on the quarter. I just wanted to understand how freight rates have moved in the last 2 months for CV operators, especially your segment of CV operators.

Piran, it's been fairly stable is our understanding for our customer base. In case if you're seeing something different on the ground, then happy to hear and we can have a conversation later as well to understand better.

For us, it's been fairly stable over the last couple of months.

I'm just trying to think then what is the tipping point because you've seen fuel [unclear] percent and while freight demand has been okay, at what point would they need to raise freight rates to sort of maintain the same profitability level?

Piran, we as a company don't have a large exposure to fleets. Their financial requirements are much larger on an annual basis.

If you have seen our commentary, our top 20 customers account for just about 0.3% of our assets under management. We're a retail company as retail as it can be.

Our focus is really on customers who are the small fleet operators and individual buyers and captive users. In a lot of these segments, transport is not linked to distance traveled.

It's more a per-day rate for hiring a vehicle. Think of the last time you or somebody in your family rented a truck to move from place A to place B within Mumbai.

The contract was not that the distance from place A to place B is 20 km, but it's a per-day rate. When you look at constructs like that, the fuel cost is a relatively small proportion of the total bill that you end up paying to the transporter.

I think what really worked well was that the fuel price hikes were done in small doses, which meant that people found ways of absorbing that cost. I think the tipping point might happen if there's a sudden steep 3 to 5% increase in a single overnight because that means that there's a certain amount of lag that transporters will have before they reprice and they're able to renegotiate long-term contracts that they have.

This is primarily for fleets and people who work with large goods movers. It's really an inexact science.

I hope you get the drift of what I'm saying in terms of how small the doses are and what kind of contracts you have and what kind of repricing frequency that you have in the contracts. There are, for example, construction equipment.

There are contracts where the person has to, let's say, ply an equipment in a mine, but the fuel is supplied by the principal. In such contracts, the contractor is fuel price agnostic.

Understood. I take it that most of our customer segment does not deal in long-haul operations.

That's right. Large fleets which have fixed-price contracts, which probably can get renegotiated only once in 3 months or once in 6 months, we don't have large exposure to that segment.

Got it. Okay.

Just secondly, wanted to get a sense of the ECLGS requests or sanctions by y'all so far.

It's work in progress, Piran. Don't have a large number yet.

The real challenge is that ECLGS is specifically around working capital. We have to establish end use.

Somebody can't use ECLGS to, let's say, buy a new commercial vehicle or to buy a new asset. We have to be able to demonstrate that there is a working capital gap that needs to be filled in because of specific challenges that the borrower is facing around, let's say, collections because of his exports getting delayed and things like that.

That process is little more involved than what the previous ECLGS frameworks were. We're making sure that we're working through that.

It is coming through, but not in great numbers.

Understood. Just to be clear, while the gap in the cash flow of the borrower could be working capital related, if your loan is a term loan, it still qualifies for ECLGS, right?

Provided the end use is for working capital.

Got it. Okay.

That's clear. That's it from my end.

Thanks and thanks for answering the questions, and wish you all the best.

Thank you so much.

Yeah. Hi.

Good evening. Congrats on strong asset quality and profitability performance.

I've got two questions. First is on credit cost.

I think somewhere in the opening commentary, you said about 2.3% credit cost for the whole year. When I look at your Q1 run rate, it's already 2.3%.

When I look at the flow rates, the flow rates are nearly half of the last year. Even the write-offs have stabilized.

Are there any risks or trends that you are building when you speak about 2.3% credit cost for the whole year and not declining from where we are?

Rajiv, thanks for that question. I think what we said was 2.3% is what we look at as a steady-state credit cost.

We don't really guide for the year, and I think there was another question which said could we expect it to be lower. As the markets develop, right, in terms of the broader economy, if the economy is better, then the number will be lower, right?

It's something which we're closely monitoring. One of the key things that has impacted us in the past has been a El Niño kind of an impact because of monsoons.

We're watching it very closely. We're monitoring it daily, weekly basis to make sure if there are any signs that we need to pick up, we need to go in and have different approaches, a plan A, plan B, plan C, etc.

All of that's in place. At this point in time, from where we stand, we believe we should be able to work on things and improve.

Let's see how we get along. On an overall basis, I think the way we've looked at it, a trajectory over a 3-year CAGR, etc., we believe a 2.3% is a fair number.

If things change over the next few quarters, then we will look at it.

As we speak, the risk matrices across products are moving fine, right?

Yes.

Okay. The second is on growth.

See, completely appreciate the strong intent of growth, but wanted to understand some specific actions that you've taken in some of the key products like LAP, CV, maybe unsecured business loans, to augment growth, sourcing, productivity. If you can just kind of give us some, it'll give us more clarity about how the growth will play out in these products.

Because right now, the growth there is sub-optimal at this point in time, yeah.

Let me pick it up at a higher level, and then we can have conversations in a different forums. I'll try and do a quick 2, 3-minute on it.

If you look at enterprise lending as a whole, on the LAP front, if you see the trajectory, we have been improving over the last three quarters, right? The growth has steadied around a 3 to 4% kind of a number.

We're pushing hard on it. We've done a few more actions in terms of geographies, in terms of markets, where it should help us take it a little up from there and when it comes into a reasonable state where it delivers to the overall objective.

In terms of gold, the question is not a percentage. It is how many multiples and how fast can we do.

Today we have 500 plus branches enabled on gold with the portfolio size that we have. Even in our current branch network, we have the capacity and the network and the systems to probably double it over a period of time, right?

The only question is really the period of time, which we're working on very closely internally. Then when you look at the unsecured business loan side of it, as we mentioned, a lot of focus has gone in in terms of on the ground within branches, a few hundred branches really focused on it where we believe we can double down and now start growing, where asset quality has become fairly standard over the last four to five quarters.

The confidence is there to be able to grow that book, and that's something we believe as we go through the current quarter and the next quarter, you should see that as an outcome rather than me speak as to what we would do. I'd rather have the outcome speak and then we have a conversation.

That's on the enterprise lending side. On the asset finance side, over the last half an hour plus, we've stressed upon the fact that how we've gone into and zeroed in all the products that we want to do.

I can tell you today on all the products that we wish to focus on, we are focusing on across CV and CE, our volumes are actually higher than what we were doing before. May was our highest ever volume for a large number of products that we want to do more of.

That gives me a lot more confidence of our ability, of our strength on the ground to be able to double down and do more of. As far as tractor goes, it's a small book.

We are making sure we focus on it and grow. That we'll talk about more as things crystallize.

On the consumer side, you've seen the numbers. The only place we need to do more of is auto.

Again, there very similar to how we've focused on the other asset products, we have a plan, we have a focus. That is something that we're going to work through and make sure a few percentages go up there.

On the consumer side and our relationship PL, we're doing well and we want to do a lot more of. In that business, if you see in our pack, we've put down an entire focus around Shikhar that Ramesh spoke about.

How do we really use the intelligence that we have, how do we really use AI to get in, become a lot more nimble in terms of the TAT that we deliver at, in terms of the quality that we deliver at, in terms of the customers that we choose. There's a huge amount of focus going there.

Obviously, everything takes a little more than hours in terms of putting these practices into place. It will take a few days, a few weeks, few months in terms of the initiatives that we've taken.

As we start to deliver them, you will see that growth actually becoming a part of the bloodstream and becoming a lot more consistent as well. That's a round-up on all of our businesses and why we have the confidence that from where we stand today, we believe it's more of a constant journey.

As we've said, towards the Shikhar in terms of where we're landing towards.

Thank you. That's clear.

Thanks. Best.

Thank you.

Yeah. Thank you for allowing a follow-up.

Just to understand, is there some seasonality around the yields and the repayments that we report in 1Q? Because if you look at last quarter as well, from 4Q to 1Q, the yields had moved up [unclear].

Is it better now, Sagar?

No, Abhijit. Can't hear you.

No problem. If it's not good, then maybe I'll take it offline.

Can you try once more?

Sir. All I was just trying to understand is, is there some seasonality to the yields and the repayments, the book rundown in 1Q?

Because yields tend to expand in 1Q, and then the repayments also basically the rundown in the book tends to be lower in the first quarter and then picks up in the remaining three quarters. Is there any way to explain that or that is something which cannot be explained?

No, it's purely product mix. On an individual product-wise, there is no real difference there.

Our yields have been fairly constant, and the business has done a really great job in terms of holding onto the yields in terms of challenging market and competition and pushing hard on stuff. I think there they've done well.

Obviously if you see, our consumer book has grown higher in the current quarter, which is the season that we have in terms of the compressor products and the next big season comes really Dussehra, Diwali. Right?

There is some amount of seasonality because of which yields go up a little bit, they moderate, and then they again go up. There is that amount of seasonality purely on account of product mix, nothing more than that.

Got it. That answers my question.

Thank you, and I wish you and the team the very best.

Thank you so much.

Thank you, Sagar. Thank you very much, everybody, for joining in.

I'm aware it was a very busy afternoon and evening for most of you. If you have any further questions, please feel free to contact our investor relations team, and we'll be very happy to engage with you and answer all your questions.

Thank you so much. Have a great evening.