Ladies and gentlemen, good day and welcome to Manappuram Finance Q2 FY2025 Online Conference Call. As a reminder, all participants' lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Abhijit Tibrewal from Motilal Oswal. Thank you, and over to you, sir. Thanks, Sidhant. Good evening, everyone. Thank you for joining the Q2 and H1 FY25 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 and CEO, Dr. Sumitha Anandan, ED, Ms. Bindu A. L., CFO, Mr. B. N. Raveendra Babu, MD, Asirvad Microfinance, Mr. Rajesh Namboodiripad, CFO, Asirvad Microfinance, Mr. Kamal Parmar, Head of Vehicle and Equipment Finance, Mr. Suvin P. S., CEO, Manappuram Home Finance, and Mr. Robin Karuveli, CFO, Manappuram Home Finance. 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. Thank you, and over to you, sir. 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 FY2025. I thank you all for joining us today, and I trust you have had a bright and joyful day this year. Geopolitical tensions have impacted the international markets, 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. We are pleased to report net profit of INR 572 crore for this quarter on a consolidated basis. Assets under management was INR 45,715 crore at the end of the quarter, achieving a growth of 17.4% year-on-year and 1.7% quarter-on-quarter. I would like to touch upon the recent RBI circular on September 30th 2024 to further streamline the practices and goals. 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. The company is in the process of strengthening the loan-to-value monitoring, renewal of loans after due dates, and monitoring and use of rollouts. We are working with the industry association to adopt uniform practices across the sector and expect full implementation within the timeline of three months as per the circular. As you are aware, an AUM of INR 12,149 crores representing 11 year-over-year growth, as per the earlier year. 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 costs. To address climate-related disruptions affecting certain regions, where we have observed collection delinquencies, we have increased our collection efforts and are implementing advanced tracking systems to improve the recovery rate. These targeted efforts have already shown positive signs of increasing collection efficiency. As reported earlier, RBI has directed their major subsidiary, Asirvad Microfinance, to discontinue disbursements from October 22nd 2024, pointing out deficiencies in pricing policy, assessment of income, and debt of microfinance borrowers, the purity differences at the time of disbursement and option, etc. While our interest rate was comparable, we have proactively decided to reduce the interest rate of the microfinance, which would be one of the lowest in the industry. 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 the details of assets for the borrowers from CSCs etc. Asirvad has submitted a plan for compliance to RBI on October 29th 2024. We are hopeful of lifting the ban on disbursement that we have earlier. These changes may create additional opportunities for growth. Our microfinance business has an AUM of INR 4,848 crores, recording a 6.8% increase quarter-over-quarter, followed by home loans with an AUM of INR 1,691 crores, which is a 29.6% increase year-over-year. Factors like above-normal rates in many states such as Gujarat, Maharashtra, Kerala, Telangana, AP, West Bengal, and MP. Rising price of essentials necessitating migrants having to send higher amounts to home compared to other places. Stagnant prices 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. 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 playing in driving economic growth and innovation. We aspire to offer secured credit lines to the MSME to enhance their business. Also, due to our AUM of secured MSME sector, it is INR 2,443 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 opportunities created by India's economic resilience and the positive reforms. We remain dedicated to our mission of empowering customers and stakeholders alike to broaden sustainable growth and innovation. For a more comprehensive review of our financial performance, I now hand the floor to our CFO, Ms. Bindu A. L. Thank you, sir. Good evening, ladies and gentlemen. Thank you for joining us today. Our consolidated AUM for the quarter stood at ₹45,716 crores, representing 1.7% sequential growth and 17.4% YOY growth. And the consolidated profit after tax was ₹572.1 crores, which was an increase of 2.8% Q on Q and 2% YOY increase. ROE on a consolidated basis was 18.6%, and ROA was 4.4%. Stand-alone GNPA as of 30th September at 2.42% versus 1.96%. Cash and cash equivalents at the end of the quarter were ₹4,939 crores, and undrawn bank line was ₹3,432 crores. Our CP exposure is 2.2%, and the stand-alone borrowing cost has gone up by 8 basis points during the quarter. On gold loan business, which constitutes 53% of consolidated AUM, the AUM stood at ₹24,365 crores, up by 3% Q on Q and 17.1% YOY. During the quarter, we were able to add INR 4.03 lakh new customers, and the outstanding number of customers grew to INR 26.55 lakh from INR 26 lakhs. The online gold loan booked 74% of the total gold loan book as of September 30th, and the standalone profit was INR 475 crores, which is up by 7.8% Q on Q and 13.1% YOY. Coming to microfinance business, the AUM stands at INR 12,149 crores, including gold loan AUM of INR 1,117 crores, down by 1.3% Q on Q and up by 11% YOY. That was INR 75 crores versus INR 100 crores in Q1 FY25, which is down by 25% sequentially and down by 36% YOY, mainly due to higher credit costs. Net NPA at 1.99%, CRAR at 21.48%. Vehicle finance, the book at INR 4,848 crores, which is 6.8% Q on Q growth and 54% YOY growth. Collection efficiency 95%, and GNPA slightly gone up during the quarter at 4.2%. Vehicle finance AUM compares with CV 49% and passenger vehicles 29%, two-wheelers 16%, and farm equipment is around 6% of the total vehicle finance book. Home loans, the book INR 1,692 crores, Q on Q growth of 6.6% and 29.6% YOY growth. And the company reported a profit of INR 6 crores during the quarter, GNPA at 3.28%, and the collection efficiency of 96%. Loan to MSME and allied activities stood at INR 2,963 crores, and with a disbursement of INR 373 crores during the quarter. GNPA at 3.8%, and the mix of secured book is increasing, considering the higher collections of secured books. Our on-lending AUM at INR 816 crores, and during the quarter, the disbursement is INR 78 crores. The board has declared an interim dividend of INR 1 for the quarter. Capital positions remain strong with a CRAR of 29.22%, and the core net worth at INR 12,529 crores, and the book value of INR 140. Thanks. We can now go for the Q&A session. Thank you very much, ma'am. We'll now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touch-tone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. Our first question is from the line of Piran Engineer from CLSA. Please go ahead. 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? 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 that were highlighted by the RBI have been fully complied. And we have submitted the report to RBI, and we are expecting their inspection. Okay. Okay. Fair enough. And so also this sharp jump in the number of loan officers, Q of Q, you've added about 5,000. All that is essentially for collections, is it? Yeah, yeah. As you are aware, the sector faces challenges in certain particularly in certain geographies, so the collection, the industry see a greater degree of the need of collection at the borrowers and individual borrowers and 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 over a period of after this COVID, etc., etc., so everybody is encouraging. Yeah, so for the time being, we need more people for collection. 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 in your business model? What sort of ROA do you have for Asirvad? If this business was running at a net interest margin of 10% and making it ROA of over 4%. Then the recovery was over 99%, 99.5%. There is a change in the outlook of the lenders that has happened. As the report said, for some lenders, there were as many as 15-20 lenders. The SROs have taken the lead role in containing the total number of lenders, etc. We'll 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'll 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, the accounts load will increase. So this will bring down the OpEx to a level which was there before the liberalization, etc., etc., bringing a lot of credit disbursements. 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. Understood. Understood. And so just lastly, 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. 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 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%-15% annually. So earlier, the case of some of the banks were lending at 90% LTV because, etc., etc. Some non-banks also were lending indiscriminately. So when the uniformity comes, the opportunities will be available almost fairly distributed. Understood. Okay. Thank you, sir, and wish you all the best. Thank you. Our next question is from the line of Prashant Parekh from Morgan Stanley. Please go ahead. Hi, sir. Thanks for taking my question. I just had two data-seeking questions. One was if you could share the standalone as well as Asirvad total ECL numbers for 1Q as well as 2Q, and the second question was on the write-off, if you could share the write-off in standalone as well as for Asirvad for this quarter as well as QOQ and YOY numbers. That's all. Yeah. So in the just-given presentation to the P&L breakup, you are talking about the impairment total for the quarter consolidated is INR 260 crores. The current GNPA number 1.0. I was 28. Yeah. Thanks, ma'am. Ma'am, I was asking for the stock of provisions, phase one, two, and three stock of provisions for stand-alone as well as Asirvad for 2Q as well as 1Q. Okay. I will come back to you later. Sure. Sure. Thank you. Our next question is from the line of Rajiv Mehta from YES Securities. Please go ahead. Yeah. Hi, good evening. Congrats on a good quarter. Sir, I have a few questions. Sir, you spoke about the September 30th 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 valuing 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? See, if you're asking me about gold loan, we have the RBI timeline up to December for ensuring compliance of whatever has been asked by the regulator for compliance. So we are fully seized of 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 were to follow, we'll be fully complying with that well before the deadline. 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? 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 an understanding. We will try to impress upon them some practical challenges, etc., etc. We hope they will appreciate whatever 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. Yeah. Just one last question on customer-based growth, sir. The customer-based growth has been pretty healthy in recent quarters. The customer acquisition has also been running at a good pace. And now with IIFL coming back since September end, in October, have we seen any change in the customer acquisition run rate or in the customer-based growth because of IIFL's return? IIFL's return is only a welcome feature because, yeah, the industry should have a sufficient number of players to replace the unorganized lenders who control around 65% of the gold loan market. What is most important is uniform fair practices. That's 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. Okay. Thank you and best of luck. Thank you. Thank you. Before moving to the next question, to answer the earlier participants' question on the provision, in Manappuram, the provision as of today is INR 91 crore, and Asirvad 270 crore is the outstanding provision as of 30th September. Thank you, ma'am. Our next question is from the line of Bhaskar Basu from Jefferies. Please go ahead. Yeah. Thanks. I had a couple of questions. So firstly, what is the Tier 1 capital at Asirvad? 2250 crore. And what? 2250 crore. Just what would this be in terms of percentage of this weight effect? In your looks? That is 16.6, 17%. 17. So what levels of Tier 1 capital would you think of a capital call from the parent in case you continue to see stress in? Yeah. We'll be maintaining Tier 1 somewhere around this level, 15%-18%. What has been the response of lenders to this whole ban? Are they asking you to put capital? Lenders are not showing any discomfort because they understand what is sort of work, etc., etc., and they are hopeful about we meeting their regulatory expectations, etc., etc., and they understand the company has sufficient liquidity, etc., etc. The assignment require, they know it is backed by its parent which has got sufficient liquidity strength, etc., etc., so lenders don't show any discomfort. Especially given that the MFI book will continue to run down and these are unsecured loans. Yeah, yeah. Absolutely. We'll be able to meet all the repayment obligations on time. 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. Yeah, yeah. They have issued a few guidelines, etc., etc., so the association is taking up with the regulator. Next week, we are meeting Deputy Governor, etc., etc. In some of the areas, there are some practical challenges which will bring to the attention of the authorities of the RBI, and whatever they want after the discussion, they insist upon that 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. 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 seeing that rollover before maturity, which is generally done, is also an issue which RBI is kind of looking at? Yeah, yeah. These are the areas we see clarity from the RBI 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's the 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. 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? 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 a number which is very comfortable as we feel it before the RBI. And we believe that will be comfortable to a regulator. It will be the lowest in the industry, not the lowest in the industry. Okay. And did you quantify the number? I mean, I just wanted to clarify. I mean, in the initial comments, you mentioned something or? Yeah, yeah, yeah. What I told is it will be one of the lowest in the industry. Okay. Thanks. Okay. Thank you. Our next question is from the line of Sanket Chheda from DAM Capital. Please go ahead. Yeah. Hi. My question was to Bindu A. L. regarding one earlier question. So the data point that I wanted to know is that in case of MFI, what was the overall provision that is Stage 1, Stage 2, Stage 3 put together? And at the consolidated level, what was the overall ECL provision this quarter versus last quarter? Our LGD is around 50%. On the Stage 3, which is given, it is 50% of the provision. As of date, it is 270 crore. This is only for the total provision outstanding in the books. This includes all three, Stage 1, 2. Stage one, two, and three? 270 Stage 3. That is. Total 392. Yeah. Total provision is INR 392 crore. This was last quarter? I'll just come back. Okay, but this is MFI inside, right? Yeah, yeah. That is for the whole of Asirvad. Okay. And just wanted to know on the consolidated basis also, whenever you can share the numbers in the consolidated, that would be helpful. And the technical, how has MFI Stage 2 moved in this quarter? The Stage 2? It was not here. Hello, Mr. Sanket, your voice is not audible. Is it better? Yes, sir. Please go ahead. Yeah. Just wanted to know. Stage two. Sorry to interrupt, Mr. Sanket. Your voice is still not audible. Is it better? Yeah, it's better. Just that if you can get to a place with a better network reception, that would be great. 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. It was 2.6% this quarter. Earlier, it was 1.7%. Okay. Sure, sir. And overall, each provision number would be helpful whenever you can provide that. It was 302. Now it is 390. Okay. Sure, sir. Thank you. Our next question is from the line of Sripal Doshi from Equirus. Please go ahead. Hi, sir. Good evening and thank you for giving me the opportunity. So my first question was on microfinance. So could you please share the PAR zero number and also a data point wherein Asirvad plus four lenders sort of a number for us in the book? Sure. So on page 23, Stage one is 93.3% and Stage two is 2.6%, and Stage three is 4.5% as of September 30th. Sorry, ma'am. I didn't get it. In page 23 of the slide, we have given the stage one at 93.3% and stage two 2.6%. Right. But PAR zero would be like what? PAR zero will be 92. I'll take this up question. I'll take up this question later on, ma'am, in the subsequent. The other question was on the LTV. So this quarter, 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% decline from 62% in that direction? Are you also trying to deploy the same strategy? No, no. It is not because of that. The gold price has gone up, and many customers have not taken the whole LTV of 72%. 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. We hope that they would understand that and make it a little more practical, and whatever the regulatory requirements, we are committed for full compliance of that to the industry itself. Got it. Got it. Thank you, sir. Okay. Thank you. Our next question is from the line of Nitesh from Investec. Please go ahead. So 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&Q basis in gold loan? And what is the guidance for gold loan growth for the full year? It's a seasonal effect. There were events, many festivals. And the requirement during this period used to be a little dull compared to the other peak seasons. So we have already given the guidance of 10%-15% growth in gold loan. And we are hopeful of achieving that anyway. Okay. And the second is on the microfinance side, how are the collection trends in the month of October versus quarter two? And what is the guidance on credit cost for the full year? So it will be similar to the industry. So there is some stress in some geographies. And added to that, there are some festivals, then some natural disasters in some states, etc., etc. This has its impact. Yeah, this is the industry scenario. And yeah, we are not different with regard to the collection of the industry. So it will be going as per the industry. And sir, 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. So that has to be worked out. Okay. And the guidance for the credit cost for the full year in microfinance? It should be a little on the higher side because now we are not able to fully estimate. 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., these have all cooled down. We hope things will improve going forward. Okay. That's it from my side. Thank you. Thank you. Our next question is from the line of Raghav Garg from Ambit Capital. Please go ahead. 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? 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. Okay. And this is applicable since when? Or it has been the policy since we start whenever we initiated the business? This was raised by the regulator in their inspection. Immediately thereafter, we have stopped it. When was this? So this is during the last inspection which was concluded in September. They said yes. Understood. So that's all from my side. Thank you. Thank you. Our next question is from the line of Nischint Chawathe from Kotak Institutional Equities. Please go ahead. Thanks for taking my question. It was 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? See, I have already mentioned about that in my opening remarks. One was the pricing policy. The second was assessment of income and debts of microfinance borrowers. Third, the purity difference of gold at the time of disbursement and auction. These were now effectively controlled in the system. This will not recur. But pricing also, we understand the requirement. We understand we cannot be an outlier in fixing the net interest margin. We have committed that we address that in all future disbursements because the system controls put in place, etc., etc. We have submitted our reply to RBI, and we are awaiting their inspection. For the parent gold loan company? Parent gold loan company, gold loan also issuing certain guidance, etc., guidelines. As I mentioned to 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 appointment with Deputy Governor and others. Association is meeting them next week. Based on that, the association will take a call on all these points. And the association, in particular, we are committed to implementing that. This is essentially all the microfinance sorry, all the gold lenders? This is to all the players, including banks. Okay. For the gold loan, anybody doing gold loan, whether it is a bank or any or contact. Okay. And any specific observations relating to Manappuram on gold in the audit? No. Other than the guidelines given, the other points, they have observed in the past, all those issues are addressed. Got it. Got it. And just one small one. You raised some ECB during the quarter. So any color in terms of the rate of interest or terms on that? It's what? ECBs. Hi, ECBs. Yeah, so the all-inclusive below 9. How long is this? It's three years. Sure. And just one small one. On the bank loans, these are all linked to Repo, MCLR? What are these linked to? MCLR. All are MCLR? ECB is also linked. The banks are all MCLR linked. Got it. Thank you very much. Thank you very much. Thank you. Our next question is from the line of Shubhranshu Mishra from PhillipCapital. Please go ahead. Hi. Thanks for the opportunity. The first one is a data keeping question on 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 one lakh, one to five lakh, and more than five lakh? The auction number is INR 360 crore. Yes. Gold price is INR 780. Average LTV is 58%. Accrued interest? 1,095 crore. Okay. And? Up to 1 lakh, 142.3%. 1 to 3 lakh, 34%. Balance in about 3 lakh. Okay. Sure. Thank you. Thank you. Our next question is from the line of Mohit Jain from Tara Capital. Please go ahead. Hello. Yes. Yeah. Hi. Good evening, sir. So I just wanted to have a review further on the question that was asked regarding the credit cost. So 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 connection 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 a couple of quarters for Asirvad? See, one advantage is now that their focus is in collection. So we are implementing many things like to motivate the customers to make online payments, etc. And for the employees also, collection incentives, then meetings, etc., etc. So post this issue, we have not seen any impact so far. Whatever is there, what was there before that, that continues. 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 our collections will not be worse than other players. And the regulatory action will not impact us as far as collections are concerned. Okay, sir. And one more question. Has there been any communication from any of the lenders so far as regards to the early repayment of the loans? And talking from the viewpoint of the borrowings, were there any banks or any other financial institutions that asked for the repayment of the borrowings from Asirvad to assist them? No, we don't expect that. Why? Because Manappuram has very good connection with the lenders for a long time. And Asirvad also has sufficient liquidity to meet the obligations also. We have called the important lenders, etc., etc., and shown them what will be our ALM, etc., etc. And nobody has raised any serious concern about that. And nobody has recalled any loan. And we don't expect that. Okay, sir. Okay. Thank you, sir. Thank you. Our next question is from the line of Rishabh Gang from Sajivi Family Office. Please go ahead. Yeah. Hello, sir. Thank you for the opportunity. So in addition to microfinance, I read that Asirvad housed 15 gold loan branches which will be impacted because of this ban. So if you can just tell about what were the how Asirvad and gold loan is related and any impact on the gold loan operations? In Asirvad, all the lending operations are put into a halt from 22nd of October. All the concerns raised by the regulator, we have addressed that. We have given our reply, etc. We have requested the regulator to remove the ban, etc., etc. We hope that they will follow their usual practice of conducting inspection very soon. If 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, new disbursements are stopped with us. So what kind of disbursement of gold loan was happening from these Asirvad branches? The AUM was INR 1,100 crores. Yes. Yeah. Of gold loan in Asirvad, correct? Yeah. Yes. Okay. AUM was INR 1,100 crore. And per month disbursement? 1,100 crores, which was around 9% of the book rate. Yes. 9% of the AUM. All right. Also, do we have risk-based pricing right now? Have we started it for the MFI? MFI is a uniform pricing. So any rationale why don't we have risk-based pricing and what do we think about it here? 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'd have a uniform pricing policy. All right. But do we want to go to a risk-based pricing later on or we will continue with the uniform policy? See, our logic is simple. So some customers are bad in 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. Also, just the last question. 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? How many months? Our entire machinery is ready with full compliance of whatever has been sought for. And this has been informed to the regulator. And we prayed 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. So as per your management estimate and industry knowledge, in how many months it should get resolved? The ban being taken off? 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. Also, your housing finance portfolio yields are, I think, also on a little higher side. So what do you think about that? Can RBI also take action for that? So in all these areas, we have made changes to ensure the concerns raised by the regulator from time to time are fully addressed. Sorry, pardon? All these are whatever concerns raised by the regulator in the past are fully addressed. Whatever in the NHB inspection, whatever was raised, all these are addressed now. All right. Got it. Thank you so much, sir. Best of luck. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants, please limit your questions to one per participant. For any follow-up questions, you can rejoin the queue. Our next question is from the line of Clerk from DSC. Please go ahead. Hi sir. So even on the non-MFI businesses, 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? See, just 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. Okay. And any growth slowdown you envisage in these segments? 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. Sure. Thank you, sir. Thank you. Our next question is from the line of Lav Sharma from J.P. Morgan. Please go ahead. 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 highlight for the next three months, and the repayments which you have there on a monthly basis. And second would be, I think Asirvad's numbers statements highlighted some covenant features. If you could just indicate what kind of covenant features are these and what kind of amount of loans under those features. Thanks. So I think Asirvad, so we have a steady collection as per the I mean, based on the collection efficiency, we have all the ALMs are positive across the bucket. 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. We have included the details in page number 26. Yes. Thanks. On the covenant features, could you just indicate what is the quantum of loans? So. Covenant breach. Covenant breach, there is only one covenant breach on 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 it. Sorry, just to repeat, Michael Kalbi, what is the amount of these two NCD plus term loans? NCD is a very small amount only. I think it's around less than INR 50 crores. Less than INR 50 crores. For the bank covenant breach, we are discussing with them. Okay. Would it be possible to quantify just to even if there are 50 there? We can share that. Yeah. We will share it separately. Okay. Sure. Thanks. And both of these have the same GNPA related covenant breach? Yeah. Yeah. Yes. Okay. Understood. Thank you. Thank you. Our next question is from the line of Bunty Chawla from IDBI Capital. Please go ahead. Thank you, sir. Thank you for giving me the opportunity. As you said, there have been changes in the MFI portfolio which we 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 ROI, if you can share that on a longer-term basis, how one should see the AUM growth as well as the ROI? It will do better only if we want gold loan, if you can. Yes. All the players will come into the same plane with regard to compliance. So there is definitely a level playing field to help the leading industry players. Regarding the other segments, other secured loans, vehicle loans, etc., etc., the challenges like the natural calamities, heat waves, etc., etc., is over. Now, different geographies, we have 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 with a secured segment in our consolidated book will outgrow the unsecured. On an overall basis, can we say 12%-15% growth on an overall basis can we consider for a long-term perspective? We are targeting around 15%-18% growth, 15%-18% growth with more focus on the growth of secured loan portfolio, including gold loan. Okay. Thank you very much. Thank you. Our next question is from the line of Gaurav from Capital Farming Consultants. Please go ahead. Hi. Thanks for taking up my question. I hope my voice is audible. Yes. Yeah. Thanks. My first, just a clarification, are we still looking for IPO placement of Asirvad or it has been completely taken off from the shelf? See, it is too early to tell anything about that. We have time up to, yeah, April. So we have not taken a call on anything now. We have the time. We'll 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'll take a call on that. Okay. So question to the Asirvad team specifically that 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 INR 11,880 crore. So if you can quantify it in product segments. I know that to one of the earlier participants, you have mentioned that overall 9% is gold loan. So remaining what? There are only three segments there. Microfinance is over 90% and 9% gold loan in the AUM. A small amount of 40 crores in MSME, secured MSME. What would be the minimum and maximum tenure of the loan that we extend in the MFI? MFI, we extend up to 24 months, but the average tenure remains around 18 months. Sure. V. P. Nandakumar was highlighting slide 26 of the presentation that we have uploaded on the website. I requested you to join the question queue for any follow-up questions. Our next question is from the line of Rishikesh from RoboCapital. Please go ahead. Yeah. Hi. Thank you for the opportunity. So I've heard AUM is going 17% on the other line. Question for Mr. Rishikesh. Can you please switch to a hands-up mode? Is it better now? Yes, sir. Yeah. I heard. Okay. 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 price increase? And would also like to know what tonnage growth do we see going ahead? Not worried about tonnage growth. We are concerned only about two things: how the AUM is growing, what is the accretion in the number of customers. In both these, we have grown. The other thing is, yeah, 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, 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 88%. So if the price goes, he takes the advantage by bringing smaller quantity. If the price goes down, the reverse is happening. So what steady-state Gold Loan growth do you foresee? So as I told, we expect the gold loan to grow at 10%-15% annually. Now, yeah, we see the opportunities for a sustained growth with the changes and bringing level playing field to all the players by the regular changes. Okay. Okay. Okay. Thank you. Thank you. Our next question is from the line of Vatsal Parekh from Negen Capital. Please go ahead. 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? It's not very clear. Hello? I'm audible now? Yes, Mr. Watson. Please go ahead with the question. 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? 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 we are not changing the estimates. It has stayed 2%, right? Yes. Okay. Thank you. 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. Thank you all. Thank you. Thank you for your good questions. We hope that we have answered that all the information that I have. Thank you. On behalf of Motilal Oswal, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.