Ladies and gentlemen, good day and welcome to Aavas Financiers Limited Q1 FY 2022 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sushil Agarwal, MD and CEO, Aavas Financiers Limited. Thank you, and over to you, sir. Good afternoon, everybody, and thank you for participating on the earnings call to discuss the performance of our company for Q1 FY 2022. With me, I have Ghanshyam Rawat, CFO, Himanshu Agrawal, Investor Relations, and other senior member of the management team, and SGA, our investor relationship advisor. The results and the presentations are available on the stock exchanges as well as our company website. I hope everyone has had a chance to look at it. As you all are aware, the country witnessed a several severe healthcare crisis during the first half of Q1 FY 2022 on account of second wave of COVID-19. While unlike this year, there was no nationwide lockdown announced by the central government, but various state governments imposed localized lockdowns of various degree to contain the spread of the infection. As a result, the business was affected during the first half of the quarter. With the phased reopening of the states after mid-May, the business also started picking up from the second half of the quarter. For Q1 FY 2022, we have disbursed INR 462.5 crore, registering a 117% year-on-year growth. We continue to grow in a calibrated manner and registered AUM growth of 21% year-on-year. All this while, we maintain our operating metrics and delivered profit after tax growth of 20% year-on-year as per Ind AS accounting, and 19% year-on-year as per IFRS accounting for Q1 FY 2022. Last year, after the gradual unlocking the country from the lockdowns imposed to contain the first wave of COVID-19, our exposure under moratorium was at 17.8% as of June 2020. As economic activity picked up in subsequent quarters and the cash flow situation improved for borrowers, their repayment behavior also exhibited a continuous improving trend, 1+ DPD reduced to 8.21% as of December and further reduced to 6.7% as of March. Based on the resilience of our customer displayed last year, our learning from continuous interactions with them, we expected to see similar trend this year as well. This time around, our 1+ DPD is 12.67% as of June 2021. If there is no third wave in the subsequent quarters and economy continues to bounce back, we remain hopeful of gradual reduction in 1+ DPD based on our experience from last year. I would now hand over the line to Ghanshyam-ji, he is CFO, to discuss various business parameters in detail. Thank you, Sushil-ji. Good afternoon, everyone, and a warm welcome to our all earnings call. During the quarter, the company borrowed an incremental amount of INR 6,920 million at 4.62% for 43 months. As of June 2021, our average cost of borrowing stood at 7.25% on an outstanding amount of INR 83,200 million, with an average maturity of 127 months. Our long-term credit rating continues to be AA- with a stable outlook from both ICRA and CARE. Despite the highest short-term rating of A1+, we continue to maintain zero exposure to commercial paper as a prudent borrowing practice. IFRS to Ind AS reconciliation has been explained in detail for profit after tax and net worth on slide number 30 and 32 of the presentation. Key parameters. As on 30th June 2021, total number of live accounts stood at 128,000. That is 20% year-on-year growth. Total number of branches was 284. That is 33 branches added in last 12 months. Employee count, 4,431 as of June 30, 2021. Asset under management grew 21% year-on-year to INR 96,156 million as on 30th June 2021. Product-wise breakup, home loan 72.7%, other mortgage loan 27.3%. Occupation-wise breakup, salaried 39.7%, self-employed 60.3%. Disbursement increased by 117% year-on-year to INR 4,625 million from Q1 FY2022. As of 30th June 2021, average borrowing cost 7.25% against an average portfolio yield of 12.99%, resulted in a spread at 5.74%. Borrowing. Access to diversified cost-effective long-term financing from various lenders. A strong relationship with the development finance institutions. Overall borrowing mix as of 30th June is 33% from term loan, 23.1% from assignment and securitization, 24.4% from National Housing Bank, and 18.75% debt capital market. Asset quality. One-day past due stood at 12.61%. Gross Stage 3 stood at 1.14%. Net Stage 3 stood at 0.86% as of 30th June 2021. During the quarter, the resolution plan has been implemented for certain borrower's accounts as per RBI Resolution Framework 2.0, dated 5th May 2021. Such account with an outstanding amount of INR 1,149 million has been classified as Stage 2 and provided for as per the regulatory guidelines. Provisioning. Our total COVID-19 provision stood at INR 148.2 million as on 30th June 2021. Total ECL provision, including COVID-19 provision and provisioning for Resolution Framework 2.0, stood at INR 662 million as of 30th June 2021. Liquidity of INR 23,550 million as on 30th June 2021. Cash and cash equivalent of INR 11,080 million. Unavailed CC limit of INR 1,320 million. Documented availed sanction from National Housing Bank of INR 4,550 million. Documented availed sanction from other banks of INR 6,660 million. Profitability. Profit after tax increased by 20% year on year to INR 599 million for three months FY 2022 as per the Ind AS accounting. As per IGAAP, PAT registered a year on year growth of 19% to INR 713 million for three months FY 2022. ROA 2.64 and ROE 9.84 for Q1 for FY 2022. As on 30th June 2021, we are well capitalized with a net worth of INR 24,681 million. Our book value per share stood at INR 314.4. With this, I open the floor for Q&A session. Thank you. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, you may press star one to ask the question. The first question is from the line of Abhijit Tibrewal from Motilal Oswal. Please go ahead. Thank you for taking my question. Good afternoon, Sushil-ji. Good afternoon, Vishwajit-ji. Hope both of you are doing well, and the rest of Vishwajit-ji. Hope both of you are doing well, and the rest of the Aavas team are also safe and sound. My first question was around the sharp deterioration that we have seen in your 1+ DPD. I think this looks far more pronounced given that the other peer which reported yesterday, has not reported this kind of a deterioration. Sir, correct me if I'm wrong, but I think this kind of a stress buildup we have seen only during demonetization last time. If you could please guide, what was your experience like during demonetization, and when can we reasonably expect these 1+ DPD numbers to start getting normalized back to 5% levels that you have guided for in the past? Yeah, Abhijit. Abhijit, if we compare, last year when the first lockdown happened, April, May, the moratorium given to the customers was around 24%, and in June it was around 18%. If you will take the similar situation, now this time moratorium has not been given and the restructuring guideline is already open. Out of around 129,000 customers, we have given around 1,400 customers restructuring, and as of June, only 3,000 customers have not paid the June installment. If we take that number, this is around somewhere around 2.5% of the book. In June, almost 97% of the customers have repaid their installments. Now in April and May, when the lockdown happened, certain customers have missed their one installment or two installments. Like in March end, the number was somewhere around 6.5%, 1+. Around 6% of customers missed either one installment or two installments. At the June-end, overall out of 12.37, only 2.5% have not paid the installments. Means from June onward, around 10% of customers have normalized their account. In further July, out of these 3,000, already 2,000 accounts have paid the July installment also. Means things are getting normalized, but one or two installments for some accounts which have been not paid because of the COVID-19 impacts. According to business requirement or maybe salaried customer who has, say, INR 20,000, INR 25,000 salary and INR 7,000, INR 8,000 installment. They might take one quarter, two quarter, or some of the businesses take longer tenure to normalize their one or two installments which are pending. Current month installments, they have already started paying. I don't think so there is much of the stress, but this is the right position of the portfolio at this point in time. Excuse me. If I were to summarize that, given the kind of collections that we are looking at now, if the economy were to actually recover, we can also expect a sharp improvement in the 1+ DPD number in the next two or three quarters. If third wave will not come and economy is on the upscale side, yes, in the next two to three quarters. Customers already started paying the current month installments, there is no further stress which is getting built up in terms of Stage 2, Stage 3. Yes. We have certain more requests which are pending for restructuring. We have restructured around INR 110 crore in first quarter. Certain more requests are there which are pending, our credit team is working with each of the customer. I think it will see our collection efficiency around 98%, 99% in June itself. We think from here onwards, I think this will gradually come down in the next two quarters or three quarters. Okay. Thank you. The last question that I had was on your disbursement. Especially this time, the disbursement mix suggests that they were slightly skewed towards other mortgage loans. I'm thinking in the PPT also you have suggested that about 15% of your other mortgage loan disbursements were towards MSME loans compared to about 7% in Q1 of 2020. Why this is interesting today is, while we did some channel checks for affordable housing financers in May, you always used to hear that a lot of top-up loans are actually happening from the affordable housing financers in May, and there was not a lot of organic housing loan demand. What was our experience like when it comes to, let's say, top-up loans and maybe if you could just give a break-up of your other mortgage loans as well. Abhijit, in our non-housing loan, top-up will be very minuscule. We have not given any top-up to I don't think so it will not be more than even 1% of the disbursement of the total numbers. Second thing is, as soon as the lockdown happened, home loan customer loan got sanctioned, but in disbursement, there is difficulty because of property papers not getting registered and in construction cases, first stage is only 10%, 20%. That gets deferred. If you will see month-on-month number, there was some spillover from last quarter on the non-housing side. Only in April we have more non-housing loan disbursed. May was around 70%, 65%, 35%, June is 70%-28%. June is the normal business month which has happened for us. There our housing loan disbursed. If you will see last Q1 FY 2021 also, housing and non-housing was 70/30%, and it will leave one month aberration. We are on that same track of 73% 27%, 75% 25%. I think going forward, we will have the same kind of disbursement trajectory for all our disbursements. Okay. If I can just squeeze in one last question which has kind of gotten me curious, that you opened one branch in the state of Odisha. If I remember reading one Experian data, it suggested that only about 2% of the total outstanding housing loans in the INR 5 lakh-INR 10 lakh ticket size used to come from Odisha. In the overall pie of 100, just 2% was contributed by Odisha. While I understand that the competition there is low and while you might have a first-mover kind of an advantage there, if you could just briefly tell us what was your thought process in entering, let's say, Odisha, where I think the per capita income is low and maybe from what I gather, it is also a difficult market. If you could just share some thoughts around our strategy of entering Odisha. Abhijit, we are consistent in our branch opening approach and state penetration approach. As we have done in last 10 years, every five years bracket, we open three to four new states and then go penetration in the taluka level, and that's the way we do the business. When we select the branches in the state, we do it on the two basis. One is we have plenty of data, so state, country level, district level, taluka level, population, number of families living there, different income groups, what are the number of housing loan exists. Housing loan penetration less than 5%-7%, 1+ DPD less than our benchmark number, 90+ DPD less than our benchmark number. Those areas or market we open so that our branches can sustain for next 10-15 years for the business in that. Now we have completed two block of five years. In the first year, we opened Rajasthan, Gujarat, Maharashtra, MP. Second block, we opened Haryana, Uttar Pradesh, Chhattisgarh, and Uttarakhand. Now in next five years, again, we intend to open threee to four states. In the first year, we are opening Karnataka and Odisha. Odisha, again, we will open five to seven branches. First branch opened in Q1. In Karnataka also, one portion of our branches are very much near to Maharashtra, so it's a contiguous distribution, Hubli belt. The rest branches we will open as per our program. There is no change in our penetration policy as per state in the district level, tehsil level branches. We will keep on same with our analytics numbers and the ground level experience. I think wherever housing penetration is low and the market is upswing, we want to capture that market because we are in the affordable housing segment, and where there is less penetration, we see more scope. Yes, on asset quality side, our practices, we are confident now after running 11 years and 280 branches that our processes are well-versed. Still, in new branches, as we have already disclosed in our last conversation also, we go very slow. First three years, there's no sales target. We learn from the cash flows, feasibility, and how the market behave, and then we go deeper. We will continue our same approach of being more risk-averse in the new market. Again, in this new five-year track, we will open three to four new states. Overall branches, like we open 30-40 branches every year, so it will open around 100 branches in next four to five years. 60%-70% branches will be in existing states, which are eight to nine states existing, and 20%-30% branches will be in new states where we go slow for first three years. Hope I have reiterated the entire branch opening process and policy which we are following last 10 years. Yes, Sushil. Thank you for patiently answering my questions, and I wish you and the Aavas team the very best for the next quarters. Thank you. The next question is from the line of Udit from Ambit Capital. Please go ahead. Hello. Am I audible? Yeah, Udit. Yeah. Thank you for the opportunity. My questions were, what is the provisioning policy around restructured assets? Are you following a 10% provisioning norm, or are you prudently providing a little more as per the ECL model? We've seen some of the peers doing that. That's my first question. The second question I had was, if you could spell out the amount of interest rate or interest reversals during the quarter, the absolute amount, and if you could tell us the assets held for sale number as of June 21. Thanks, Udit. Yeah, first I'm just taking the first question on the prudent policy around the restructured account. We adopted more prudent policy towards the ECL guideline. For whatever restructured account we had done during this quarter, we have provided around 14% provisioning on that asset. Okay. I think that is. Your second question was around. Interest reversal. I think we could not able to understand, as I think last time at annual closure, I think I explained this thing in detail. We have adopted a more prudent policy around interest recognition. We don't recognize any interest income on the Stage 3 assets. Correct. In this quarter, whatever new assets have been slipped, so there's no reversal then in that case you're saying? Yeah. We didn't book the income. Okay. Last year, we changed, I think our prudent policy. Earlier we used to do like that, but under Ind AS, we changed that policy, but after we again moved back to our original policy. We are not recognizing any income on the Stage 3 assets. The decline in yield in this quarter from if I just take calculate not the reported yield, is it only because of the direct assignment not being there? No. Two things. Udit, there are two things. First, we have dropped our base rate by 15 basis point from 1st of April, which we announced in last quarter. 15 paisa rate. Rest is normal business. Rest is a normal business. Those decline is a normal cycle. Okay. If you could tell us the number on asset sales for self. Yeah. It is INR 18.6 crore. Okay. Thank you so much. Thank you. The next question is from the line of Kunal Shah from ICICI Securities. Please go ahead. Yeah. Thanks for taking my question. Firstly, in terms of the overall ECL provisions at 85 odd basis points, how comfortable we would be? Obviously, there would be rollbacks and upgrades, which would happen from 1+ DPD. If you overall look at it, maybe in 31-90 day bucket, does it seem sufficient or maybe the policy would be the way we are seeing 70 basis points kind of a credit cost? Compared to earlier years' average, could it be higher this particular fiscal and will keep on inching up the provisioning? Yeah. Thanks, Kunal. As we adopted very consistent and prudent policy around ECL team. During this quarter, as I explained earlier questions, we have recognized certain assets are restructured, where we have created that asset sit under the Stage 2, where we have provided higher provision at 14%. At Stage 3, we provide a provision of around 22% as per the ECL calculations. We are quite confident. I think we are ECL provision at 0.85% and we don't think any further, I think, major change will happen towards the overall ECL provision rate. Okay. Given this kind of a situation overall, we should see the credit cost settling down and normalizing to where it was earlier in terms of pre-COVID level. Yeah. Apart from that, I just want to update one more thing here. Like total ECL provision is INR 66 crore as per the, if you refer the presentation. This INR 66 crore also include INR 31 crore provision we have created on account of COVID phase one and recent restructured account. Sure. There would be pipeline as well of restructuring, wherein some further provisioning would be needed because I think we would not be done. INR 31 crore already we have created on account of stress. Okay. Further pipeline which could be there, that we will have to again create more provisioning. Whatever, maybe 10%, 14% odd. Yeah. That will just get added. Yeah, Kunal, that will depend. We will do reassess of earlier accounts also, how they are performing in the next quarter. If there fresh addition will be there, accordingly, that provision will be created. Sure. In terms of the nature of restructuring, if you can highlight how it has been given to the customers? Kunal, government announced this around 5th of May. We got the board policy approved. Interimly, because customers were having the moratorium experience, so as soon as lockdown happened, we started receiving applications around it. As per the board approved policy and as per the RBI guideline, we created a proper setup. We have given customers option to apply for that through various modes of communication. As soon as we were getting the communication, initially, I think for some 20, 25 days, it was difficult to go to customer, assess the business at its business place. We did the virtual kind of assessment. Once the lockdowns started opening up, we started visiting the customer place, looking at business, looking at cash flow, GST returns. Wherever even salaried customer also they said that their salary is coming less, we check the bank statement. We completed the entire process. All those cases based on the credit consideration went to committee. Wherever committee was convinced that, yes, restructuring is in the right mode and customer, this restructuring will get success, only we have given these restructuring approvals. Still, we are working on some of the more applications. We were not able to process 100% of the applications because of the time lag and accessibility. Certain customers have not given the documentation. Looking at the current numbers, I think some customer has withdrawn their even restructuring applications also because now the business has come down to normalcy very fast. Some of the customers, in the earlier we have said that there might be 2%-2.5% kind of restructuring which can come on board, I think now the number will be lesser than that number. Moratorium would be for one year? How would this be? No, it's as per customer requirement. Certain time three months, certain time six months, nine months, according to customer requirement. The assessment of the credit team, both the things matching, accordingly we have created the thing. Sure. Last question, in terms of securitization, what would be the overall view for the full year? Maybe this quarter we had not done anything as such. Otherwise, in terms of the securitization, how should we expect it going forward for next nine months? Kunal, as we articulated our management thesis around the assignment transactions, we take assignments as our funding tool. Depend upon the business growth and depending upon the pool of price availability in the market, we do the assignment transactions. It purely depend upon that. Like last year also, quarter one was we didn't done any assignment transactions. Similarly, this quarter also, we didn't done any because other funds are available at a very competitive price. We didn't do any assignment transaction during this quarter. Overall basis, you can refer to the last fiscal trend. Similar trend will be maintained for this year also. Okay. Yeah. Thanks a lot. Thank you. The next question is from the line of Bharat Shah from ASK Investment Managers. Please go ahead. Hi, Sushil-ji and Ghanshyam-ji. Namaskar. Just one question. Numbers apart and technical provisioning apart, are these, in your opinion, more than probably likely to be incurred or reflects your good judgment as to where the cost should be, and that is how it is provided? Good afternoon, Bharat Shah. Actually, with auditors, every six months, we do the reassessment on loss given default and PD ratios. Same thing we will do in June, 30th September, every six months we do. Accordingly, whatever ratios come, we provide that. The earlier basis, it is 21.4%, which has entirely seen the COVID first wave also. COVID second wave is not much that severe like the COVID wave one, because I have told earlier it was 17% moratorium, and now in June, only 2.5% customers have not given the installment. I think more or less, we will go by that model. On that, Stage 3 comes around 22%. This restructuring guideline, we have followed, but here also we have provided as per the ECL model. Over and above, restructuring and COVID provisioning is somewhere around INR 133 crore. I think that is sufficient. Going forward also, even if portfolio behaves very well, we intend to keep this as a buffer in the balance sheet and we'll try to strengthen balance sheet further, so that we benchmark ourselves against the best practices, maybe going in a way where we can provide maybe Stage 3 as most of the provision. Technically, you are right. Right now, it's a technical provision. Hope so if COVID three will not be there, we will have much better results than this. Sushil-ji, INR 33 crore is buffer and entirely futuristic kind of conservative provision after the. 31 crore. Sorry? 31 crore. The INR 31 crore is entirely buffer provision over and above specifically identified and likely credit cost. INR 31 is entirely additional contingent amount sitting there. Bharat Shah, total provision is INR 66 crore. It includes INR 31 crore additional provision we made on account of COVID phase one and COVID phase two. Right. It's a buffer provision. There is no direct identified and likely cost, but a risk view precaution. Yes. Good. Thank you. Thank you. The next question is from the line of Nishant Chhabra from Kotak Securities. Please go ahead. Sure. Hi. My question actually pertains to your incremental funding cost. I think somebody mentioned that you raised money at something like 4.62% this quarter. I just wanted to understand, A, which are the sources from which you are raising money, and B, how sustainable do you think such low cost of funding would be? Nishant, Ghanshyam-ji will revert, but I will say, when we raise money overall every year, there are different instruments. NHB funding, long-term bank borrowing, assignments, NCD. At different parts, different time of market, different money is available at competitive prices. In Q1, we have raised most of the money from NHB. In overall, if you see, NHB money is raised every year around same costing. Last year also, I think it was around same costing. Rest of the money from different instruments maybe we'll raise in different parts of quarter. First, NHB money is available around at that price. Rest of the instrument, anyway, the price which is prevailing in market, we are able to reduce, but it will not go further below INR 7-5. Next six to nine months, that is our foreseeable future. Yes, we will keep on borrowing at very competitive prices in the going forward also. Ghanshyam. No, Sushil-ji has very well covered. If you have further more question around the cost of borrowing, I will try to answer. Yeah. See, if I recollect rightly, I think NHB refinancing used to be like 6%-7%, right? 4.6. Yes. It used to be rather a low number. Yeah. NHB has a different product, which starts from sub 3% to somewhere 6% or 7%. Certain products are a fixed rate product, which is given to everyone the same rate. Certain products they give link to the HFC rating framework, which they have internally. It starts from 3% to, it can go up to, let's say, 6%-7% or 8% also, depending upon the HFCs. As Sushil-ji mentioned, we are at 7.25% at June end. It looks so, we are now almost has become very competitive as overall cost of borrowing, looking in the current interest rate and likely in coming quarter scenario. This 4.62% facility, do you think such low sub 5% facilities for NHB will continue? Again, let me again elaborate. Today, we have around remaining borrowing sanction INR 455 crore. We mentioned in one of another 24 slide number. Out of INR 455 crore, there may be certain some components they can give us a lesser price. Certain amount may come at a higher price, because they have their own mechanism to give a different product to different institutions. Okay. It is better to just benchmark with the 7%-7.2% number what you have. Yeah, that's it. Okay. Perfect. Thank you very much, and all the best. Thank you. The next question is from the line of Kartik Chalathan from Buena Vista Fund. Please go ahead. Yeah. Thank you very much for the opportunity. Am I audible? Yes. Kartik-ji, good afternoon. Good afternoon, sir. Thank you very much, Sushil-ji and Ghanshyam-ji, for the opportunity. I have three questions. The first one is, if we were to look at our NPA in the other mortgage loan segments, possibly about three years back, this was in the region of about 0.25%, 0.26%. This has now crossed about 1%, which is almost a four-fold increase, and is now almost equal to the home loan gross NPA. What is it about this segment that the deterioration has been far sharper than home loans? Kartik-ji, as you know, the different business segments have got impacted because of COVID. Again, when we started this business, it was initial stage. We lend this portfolio around 14%-16% rate. At that rate, we presumed that there might be 1%-1.5% kind of NPA. Even after COVID, this portfolio is showing into that acceptable trajectory. Nevertheless, we assume that this portfolio will behave much better once the COVID impact will be lessened. Okay. Got it. Sushil-ji, the 12.7% of one DPD, will that get split between self-employed and salaries, and which are the states that are above this average? Kartik, can we get back to you on this? Himanshu will give the number. Right now, Ranjit is not available with me. Okay. Not a problem. I will get later. The last question, Sushil-ji. Our question is. If we were to look at the. Sorry. to look at the. Sorry. 12.6 between salaried and self-employed. Yeah? Yes, salaried and self-employed, and which are the states that are actually above this average? Okay. We will give this data, try to give this data by end of call, or maybe we will publish in transcript of the meeting. Okay. Not a problem, Sushil-ji. The last question is, if I were to look at the restructuring book of about INR 115 crore, which you have done, and looking at the number of customers of about 1,400, I get an average size of about INR 8.2 lakhs, which is almost equal to basically the ticket size of our loan. Does this mean this restructuring portfolio is typically very early vintage customers, and what would explain this phenomenon, if true? No, I don't think so. No. No, Kartik. I think there is nothing as early vintage. If we plot this 1,400 customer on average ticket size versus our pool average ticket size, entire home loan, we don't see any aberration in the ticket size who sought this restructuring. These are not very typical early vintage one, two year old kind of customers. It is a mix. It is just that the average is closer to INR 8.2 lakhs. I think last 10 years, our average ticket size is somewhere around this number. Book on statistics. I don't think so. Just give me one minute. Sure. Two years or above Kartik, almost 75%-80% of the portfolio is more than two years vintage. Okay. Of the restructured book. About 75% of the restructured book is more than two-year vintage, is it? Yeah. Okay. Got it. Thank you very much, Sushil-ji and Ghanshyam-ji, and wish you and the team all the very best for the remaining quarters. That's all from my side. Thank you. Thank you, Kartik. Thank you. The next question is from the line of Piran Engineer from CLSA. Please go ahead. Good afternoon, sir, and congrats on the quarter. I just had a couple of questions. Firstly, on slide 24, can you just explain to us when you say that the outstanding tenure of borrowings is 125, 130 months, but on the left-hand side, when we look at the ALM, there are no borrowings above 10 years. I understand ALM is for residual maturity and not from the start. Still, only 20% of it is more than five years. How do we exactly reconcile this data of length of the borrowings? If I understood your question correctly, so let me explain your weighted average tenure of the borrowing. Weighted tenure is a borrowing, is when we source a loan less of 10 years, so it gets counted for the 10 years. If we take a loan from National Housing Bank over 15 years, so the tenure is counted as a 15 years. Similarly, if assignment transition happen door-to-door maturity, so that also comes- 16-17. That also gets a door-to-door maturity around that basically. If we take, let's say, we took NCD certain with a multilateral institution like ADB, DEG, IFC, CDC around seven year, eight years. That get counted as actual maturity of seven years bullet repayment. Accordingly, the average maturity gets computed on the borrowing side. Similarly, this ALM comes out of the remaining assets, remaining liability tenure, basically. That's my question, sir, that in that case, intuitively in the ALM chart, most of your borrowings, like right now, if I see out of INR 6,600 crores of borrowings, INR 5,200 is less than five years residual maturity. Only about INR 1,400 crores is more than five years, only about 20%. That's my point. If the borrowing tenure is so long, why is it like this? Yeah. Piran, I think if you will see the breakup of our borrowing, around 23% is from NHB. That is mostly long tenure borrowings. Around 22% from assignments, which is around, again, 16-17 years. Most of the term loan borrowing from the bankers, which is around 10 years. That should be commensurate with the loan tenure. That is around that. We have around 15% borrowing from NCD and all those things where average tenure is from five to seven years. If you take this weighted average of borrowing into what is the door-to-door maturity of the loan. Right side table is as per that, and the left side table is the residual maturity. Okay. Sorry to harp on this, but now, for example, this quarter, we raised INR 400 odd crores or something from NHB. As you're saying, it is 15-year money. No, it is not 15-year money. We have mentioned 45 months. This year, this is average maturity of 44 months. Okay. I mean, in the last couple of quarters, you all would have raised up money which is more than 10 years maturity, right? Yeah. In the ALM, there is nothing which is more than 10 years remaining. Very less which is between 5 and 10 years also. Piran, I think some confusion. Am I understanding incorrect? Yeah. I think there's some confusion at your end. This left side is a residual maturity. Left side is a table is made of the on-book balance sheet, basically. Assignment is not there because that become off-book item on the balance sheet date, basically. When the right side you see, it's the entire borrowing, including assignment and PTC assignment, securitization, everything is there. Those two things are different when you see. Okay. If you want to separately connect with Himanshu, he will explain you in detail. Yeah, I'll do. Just one other question. How much ECLGS have we done till date? 14.6 crore. Okay, great. Thank you so much, and all the best. Thank you. The next question is from the line of Nidhesh Jain from Investec. Please go ahead. Thanks for the opportunity, sir. Firstly, I missed the ECLGS number. What is the ECLGS number that we did in Q1, and what is the cumulative ECLGS disbursement that we did till now? ECLGS is INR 14.6. Total disbursement INR 16 crore. Current outstanding is INR 14.6. 14.6 crore. Okay. Similarly, what is the current total outstanding of the restructured book? [Foreign language] restructure as of 30 June? We have given that number. 114 crore. 114.96 crore. Till Q4, there was no restructuring. No. Sorry? No. No. No, we have not done any restructuring in the past. No. Yeah, sure. Lastly, if I look at the AUM mix, the share of housing loan in last three years has reduced from 80%- 83% to around 73%. Going forward, how do we see this AUM mix? At the same time, the share of salaried customer has gone up in our mix. No. I think first I need to correct that we were never 82 and 18. Last three years data, 75.1 to 24.9, and as today it is 73/27. Year-end it was 73.5 to 26.5. We want to remain in the same bracket. It was never 82/18. Okay, understood. Sure, Sir. That's it from my side. Thank you. The next question is from the line of Vikas Kasturi from Focus Capital. Please go ahead. Hello, sir. Sir, Sir, I have three questions related to your business. Vikas, sorry to interrupt, your voice is coming muffled and a bit of an echo. Can I request? Yes, sorry. Is it better now? Yes. Yeah. Sorry. I had three questions. The first one is, why is turnaround time so important for the borrower? The reason I ask is that for a lot of borrowers, you are probably the only lender. Why is turnaround time so important, sir? I think we have explained in maybe in our processes. We want to adopt best practices, and we want to give our customer best experiences and all the processes which we have built in the company is around how we can improve our customer experiences. Because in the long term, for company survival, customer experience is the key. That's where we have invested in technology, digital processes, analytics, and revamping our processes in view of new technology. Three year, four year back, we were somewhere around 22 days, and now we have come around 12 days. As a company, we want to reduce it to maybe one or two days, though it will take time. Certain portion of the customer, we are able to do that in this phase. Any repeat customer and any existing customer which is asking for a pending disbursement, now we have come down to one day time also. It will be our company's continuous process improvement and pursue that we remain competitive, relevant, and give our customer best experience by reducing the turnaround time of all our processes. That is very much needed in our business. Thank you, Sushil. I have read all your documents, and the point that I'm unable to understand is that for a lot of borrowers, they do not get loans from banks and other institutions, and that is why they come to Aavas. Even amongst out of 100 applications, I think you reject nearly 70% of those applications. My question is, for a lot of them, you are the only lender. The simple fact that you are lending to them itself would be a big thing for them. I'm positively surprised, and I appreciate what you are doing here, sir. I'm just trying to understand that you have laid a lot of emphasis on turnaround time, in all your annual reports also, you mentioned this. I was just trying to understand that for a borrower, why is it so important? Let me in the right spirit. My son got 18 three months back, and he was a new customer to the bank. When he entered into the bank and asked, "I want to open a current saving account with you." Banker asked him, "Can you sit down for 15 minutes and I will try to open and it will take one day." He asked, "Nowadays, bank is publishing they can open the account in five minutes time." It doesn't necessary that it's a client who is unbanked or who is coming to formal lending system first day, and that he don't want his processes to be on time, and he is not dealing with a credible lender or banker. I think on that side, we don't differentiate between a customer who is coming for the first time, who is first-time borrower, who is first time coming to the normal lending system, and somebody who has 750 CIBIL score. We want to give same kind of experience. As I told you, as a management, we think that is the most important aspect of survival for company in affordable housing segment and kind of lender we are. That is of the prime importance of customer experience, and we continue to focus on this and we will try to even better this going forward. This is a key attribute of our company's deliverables, and we don't differentiate between a experienced customer from the banking and non-experienced customer for the banking. Thank you, Sushil- ji. One more question. Could you just provide some estimates of your business per branch for your mature branches and newer branches? Some rough numbers would also be helpful. Yeah. We have, as earlier explained in different forums and calls, we have four categories of branches: A, B, C, and D. D. The branch classification depends on the population of the town, number of families living there, and how we see the potential of that branch over a period of next 15 years. Like, if some town has population of four lakh, divide by four or five, you have 80,000 to one lakh families. If we try to consider that next 15 years, we will try to penetrate five% of the customer base. We need to do 5,000 home loans in 15 years. Divide by 180 months in 15 years, we need to do 20 to 25 files per month. 20 to 25 files per month with our ticket size of INR eight lakh, INR nine lakh, INR 10 lakh, it comes around INR 2 crore of the business. When a new branch starts, it works around 50%- 60% efficiency, and gradually within three years, 90% + branches come on 90%- 100% capacity. That's how our business model works, and I hope I have answered your question. Yes. One last question, Sushil- ji. What is the average tenure of the loan? We give a three to four kind of loan. One is home loan for construction, one is home loan for purchase, MSME loan, LAP loan. There is a differentiation between customers who are salaried, who are self-employed. According to cash flow judgment, we provide tenure from mostly three to 20 years. Average tenure of our portfolio is somewhere around 14 years door-to-door maturity. On behavioral term, our portfolio tenure is seven and a half to eight years. Okay. Thank you, Sushil- ji. Thank you for all your answers. Thank you. The next question is from the line of Anand Bhavnani from White Oak. Please go ahead. Thank you for the opportunity, sir. Two questions. You said that funding that you raised at 4.6%, does it come with any kind of cap? Because the funding is at a lower rate so does NHB kind of cap the rates that you can further charge, and in this particular case, does it apply? Yeah, in some cases it applies. Yeah. There is one funding which comes from the NHB, which has an interest cost around 3%, where they put a cap of onward lending also, which is around between the onward cap come between 6%- 7%, depending upon the G-Sec rates prevailing in that period. Does cap apply to this funding, 4.6%? No, for that there is no cap. Okay. Cap comes only on one particular borrowing. Sure. Secondly, sir, our overall restructured book is INR 114 crore and the provision for restructured book is INR 31 crore. Did I get the numbers correct? No. INR 31 crore is COVID provision plus restructuring provision. Restructuring provision should be around INR 14 crore-INR 15 crore because we are doing 14% provision, right? INR 114 crore, it might be around INR 15 crore. Yeah. Got it, sir. Thank you very much. I'll come back in the queue for anything else. Thank you. The next question is from the line of Shreepal Doshi from Equirus. Please go ahead. Hello, sir. Thank you for giving me the opportunity. My question was with respect to the 1+ DPD number that we have got. What would that number be for states like Maharashtra and Rajasthan? Sorry there. Yeah. Give us some time. Yeah. There is only difference of 2.5% between Rajasthan and Maharashtra. Not much of a difference. Okay. Sir, if you can give any one of the two's number that we will have. Rajasthan is around 13%. Okay. Sir, what has been our bounce rate for June 2020, March 2021, and June 2021? Right now, I don't have. Yeah. Tell me which date you require. Sir, as on June 2020, March 2021, and June 2021. March 2021 and June. I can tell you June 2021, it is around 18%, 19% with the COVID impact there. Right. Last two numbers not readily available with me at this point of time. No, sir. I'll collect it later. Just one understanding I wanted. When we have given a home loan to a customer and he's been paying on time and after a year or two, if he wants additional money and if we give a top-up loan. In that context, how does the loan then get classified? Does it still remain as a home loan, or does it get classified as a LAP? There are three scenarios. If the extra loan, top-up loan is required to construct the further home. Say first, he has taken a loan for ground floor, now he wants to construct first floor, then this will be classified under home loan for construction. If the top-up loan is required for his business, personal purposes, daughter's marriage, or some other thing, then it will be classified in non-home loan category. The entire amount So for example, earlier he'd taken a loan of INR 1,000,000. Now that got run down and outstanding it's INR 500,000. If he takes additional 2.5 for business purpose, then the entire 7.5 gets classified as. No. INR 500,000 is considered home loan, INR 250,000 is considered non-home loan. Okay. Got it. Sir, the restructuring that we have already done. How do you see, I mean, incrementally, do you think the percentage, like right now it is 1.2%, how do you see that number eventually closing? Initially, we started and we told that it can be around 2%-2.5%. After Q1 experience, I think this number will be lesser than that number. Okay. Got it. Sir, one last question. Like since our one- Shreepal, can you hear us? The line for the participant dropped. Ladies and gentlemen, that was the last question for today. I will now hand the conference over to the management for closing comments. Yeah. Thank you all for attending the call. I hope we have reverted most of your questions and queries. To summarize, we continue to focus on improving customer service and being transparent with our customers. As mentioned in the last earnings call, we have reduced Aavas Financiers Limited prime lending rate by 15 basis point with effect from 1st of April 2021. That got affected this quarter. Thank you so much for all your time. For any further information, we request you to get in touch with Himanshu in our investor relation team or SGA, our investor relationship advisor. They would be happy to help you. Thank you very much for patience, listening, and cooperating. Thank you. Thank you very much. On behalf of Aavas Financiers Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.