Ladies and gentlemen, you are connected to Can Fin Homes Limited. Earnings update is going to call you within shortly. Please stay connected. Ladies and gentlemen, you have been connected to earnings update of Can Fin Homes Limited. Please stay connected. The call will begin shortly. Ladies and gentlemen, good day and welcome to earnings update of Can Fin Homes Limited, owned by Investec India. As a reminder, all participants 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 email our operator by pressing star and zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nidlesh Jain from Investec India. Thank you and over to you, sir. Thank you, Apurav. Good afternoon, everyone. Welcome to the Q1 FY 2026 earnings conference call of Can Fin Homes Limited. To discuss the finance and performance of Can Fin Homes and to address your queries, we have with us Mr. Suresh Iyer, MD and CEO, Mr. Vikram Saha, Deputy MD, Mr. Prakash, General Manager, and Mr. Adhisesh Mishra, CFO of Can Fin Homes Limited. I would now like to hand over the call to Mr. Suresh Iyer for his opening comments. Over to you, sir. Thank you, Nilesh, and welcome to everyone for this earnings call for the first quarter results of Can Fin Homes Limited. As just informed, we want to, first of all, introduce that we have our new CFO, Mr. Adhisesh Mishra, who has joined, and he's also present in this call today. He just joined on the 30th of June, and as you would recollect, in the month of December, we had put up the notice regarding the resignation of our previous CFO, and thereafter, his last day was on the 20th of March. Now we have the new CFO, Mr. Adhisesh Mishra, joining. Now to certain points about the business. For the first time, a few positive points or a few positive things about this quarter. First is that in terms of the disbursement, this is the first time in Can Fin Homes Limited's history that we have in the first quarter crossed the figure of INR 2,000 crore disbursement. It's a 9% growth in terms of disbursement. To break it down further into the zone-wise performance, we have the zones of North, West, and Tamil Nadu, which continue to carry on the momentum from where they left off last year, and they are continuing to be in the positive. North Zone is upwards of 40%+ in Q1 compared to Q1 last year. 35%+ is for Tamil Nadu, and West Zone continues to have 15%. Additionally, we have the East Zone, which was flat last year, which has also this quarter gone into the positive mode and is doing at about more than 40% growth in terms of the disbursement. In terms of the two other major zones and the key areas where we have business, that is Karnataka and Telangana. Telangana, for us, has not shown any major turnaround or anything in terms of business and continues to have a negative growth. Karnataka, on the other side, is almost flat. We are still doing about INR 200 crore of disbursement, mainly because of the E-Khata issues, pertaining to the Punjab areas and development authority areas continue. However, on the positive side, the state government had announced that they would be taking some decisions and would be trying to resolve this issue in July. Just a few days back, there was first an announcement that the state will be allowing the B-Khata properties to be converted to A-Khata. That is one development. The second development is that yesterday itself, just yesterday, for that matter, the state government has released a full-page advertisement wherein they have indicated that customers can get the E-Khata for the properties from the sewa pen drawers by paying INR 45. They've also come out with a self-help app or a tool which people can download, which will help them on the online registration of E-Khata that can be done. The state government is trying to promote and trying to streamline the issues. Hopefully, in this quarter, we should definitely see a positive. In terms of the business in Karnataka, we have had good inquiries, but we are not able to log in because we are not taking issues of E-Khata. Incidentally, in terms of recovery, also, we have had almost close to INR 1.5 crore plus of properties where we have done the surface sale in Karnataka, but we are not able to execute the sale certificate only because of the E-Khata issue. That also is there. Otherwise, additional INR 1.5 crore of collections would have happened. Second, in terms of the second positive in terms of the collection is that the total delinquency that is SMA zero plus SMA one plus SMA two and NPA put together for the two positives here. One is that for the first time, the Q1 results, the delinquency, which normally always goes up, has actually come down from the March number. In fact, last year in Q1, there was an increase in the total delinquency by about INR 360 crore from March 2024 numbers, whereas in this quarter, compared to March 2025 numbers, the total delinquency has come down by INR 280 crore. The second positive in terms of the collections is that this is the lowest delinquency percentage in the last five quarters that the company has registered. These are in terms of this. However, while the total delinquency has come down, there is an increase in the total NPA, which is actually a sequential thing because every year in the first quarter, there is a spike in the total NPA. Last year, in Q1 last year, there was an increase by about INR 39 crore. A year before that, by about INR 32 crore. In this year, it is about INR 45 crore. However, in fact, an additional point this quarter is that we have, as part of our analysis of recovery, identified 96 specific accounts which are very, very sticky and totaling to about INR 13.90 crore, which we have allowed to flow to NPA so that we can recover during the remaining nine months through our SARFAESI action. This is in terms of our disbursement and collections, I'd say. Coming back to the disbursement portion, in the last two years we have opened 29 branches. This year, we are planning to open 15 branches, for which all the 15 branches, the efforts have already been initiated so that in the first half, that is by September 30th, we can open all these 15 branches. The other point in terms of disbursement or the market existing is the sales, which we had started last year with about 39 odd people. During the year, that is effective July 1, we have added or increased the strength of the sales team and taken it to 100 people by adding another 63 people. Therefore, that is a major thing with the additional branches which will be added during the coming quarter, as well as the increase in the sales staff, which is what we expect to help in pushing business in the coming quarter. Already in this quarter, compared to last year where the sales team was contributing to about 4% of the total incremental business, in this quarter, the percentage has increased to 5%. The same team of 37-39 people has been able to contribute a little higher in terms of the business. Now, to other areas of the key aspect, of course, is the cost of borrowing because we've had the three back-to-back reductions in the repo rate. We have already had a reduction in the repo rate, which is visible in our cost of borrowing. However, the actual going forward rate of cost of borrowing is further lower because what has been experienced is what we have experienced for part of the quarter. Going forward, therefore, the incremental cost of borrowing, which was around 7.55%, is closer to 7.3%. We have already announced a further 15 basis points cut in our rate for existing and new housing customers. We had already passed on 10 bps in the month of May. Additionally, from July, we have passed on an additional 15 basis points to our existing and new housing customers, totally taking it up to about 25 basis points of rate cut for our customers. Additionally, going forward, we still have about INR 2,500- INR 3,000 crore worth of bank term loans where we expect a further reduction because we are yet to receive that 50 basis points cut of the repo rate of June in those INR 2,500+ crore of bank borrowings. Plus, NHB also has indicated to us that the regulators will also be reviewing its PLR because it has not done so far in the last six to eight months. We are expecting a rate cut coming from NHB also. Going forward, there will be some impact. Of course, as and when we experience post that, we will be passing on our rate cuts to our customers. In terms of the assets that we have about, because one key aspect is, if you would recollect, we had in January 2024 moved from an annual reset to a quarterly reset. All new customers who are onboarded from 1st of January 2024 are on quarterly reset. We also offered the option to customers to shift from annual to quarterly reset. As of 31st of March, we had about 72% of the customers who were still on annual resets. By the end of this quarter, that is on 30th June, we have about 67%. Only 5% of the customers, including the new customers, have actually moved from annual to quarterly. As of 30th of June, we still have about 67% or two-thirds of our portfolio, which still continues to be at annual reset. We are sending customers an intimation about this shift. As and when they come, they will be able to do it. However, those who remain on annual reset will continue to get the benefit as and when their reset dates are approaching. There could be some, this 15 and 10 risks also that we have passed on. There could be some lag in the way it is passed on to our customers. Now coming to the cost-to-income ratio, the other two major aspects during the financial performance is the cost-to-income ratio. There are basically two reasons why, compared to this, the cost-to-income ratio is slightly elevated. One is because we opted to for a salary division for our staff to align with the market salary packages. That is one thing which we came at a very sad end of the quarter, but we have given an impact from 1st of April. That is one of the reasons. Because of this one-time change, there is an impact of about INR 4.5 crore in the actuarial valuation also, actuarial calculation also that has come here. Going forward, since no further increase is obviously there, this actuarial valuation is pricing even out and may not be as much in the coming quarter. Therefore, this cost-to-income ratio on that aspect will get evened out. As compared to the first quarter results, there is also a 16.5% increase in the staff count because of which some of the increase is there. However, if you compare the cost, the salary cost compared to our March numbers or the Q4 numbers of last year, the increase is not as much. It is mainly because of the salary hike that is there. The second aspect on cost where the increase is witnessed is the rent and taxes, mainly because of the 25 branches we opened last year and the six zonal offices. Last year, you would recollect, we had added an extra layer to improve the monitoring and oversight of the branches, which is the zonal offices with adequate staff. We fixed zonal offices were also opened after June of last year, which the entire impact is witnessed. We also expanded the office space in our corporate office. Mainly the reasons for rent and tax increases are because of this. Going forward in terms of credit cost, the guidance of 15 basis points will continue. We have had a credit cost of the ACL calculation for this quarter. The way we are looking at the reduction in our overall delinquency going forward, we feel there would be a further reduction expected in the overall delinquency, even in the second quarter. Therefore, credit cost impact will not be as much. Going forward, our guidance for credit cost is to continue with 15 basis points. Last year, excluding the management overage, it was 13 basis points only. We continue to give a guidance of 15 basis points, whereas actually, it could be lower than that. Disbursement-wise, in Q2, with Karnataka showing some improvement and other zones also doing there, we expect that internally, we are pushing for INR 2,600 crore plus disbursement in Q2. However, as a guidance, we would say it could be around INR 2,500 crore plus in terms of Q2 disbursement. NIM and spread, the guidance continues at 3.5% for NIM and 2.5% for spread. ROA, ROE also of 2.2% and 17%. Overall, in terms of the overall disbursement, we are quite confident about the INR 10,500 crore disbursement figure for FY 2026 that we have been guiding. We feel in the second quarter onward, the disbursement will further pick up. In short, that's the summary of all the exercise. I hope I have covered everything. I now throw it open for any queries. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, request share and mark on the touch-tone telephone. If you wish to remove your screen from the question queue, you must restart and do. Participants that request your queue answered will ask you a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Param Vora from Trienetra Asset Managers. Please go ahead. Good afternoon, sir. One thing I wanted to ask was what is the progress on the planned, you described the progress on the planned 15 new branch openings? What are the geographical focus on these expansions? What is the target number of branches by financial year 2028? Okay. Yeah, for this current year, we are looking at additional 15 branches. We have 234 branches as of 31st March, and we are looking at 15 branches, majorly in the West and North geographies. That will take our strength to 249 by the end of FY 2026. For FY 2028, we have a number of 300 branches that we have targeted. Okay, sir. One more thing I wanted to ask was, are you planning to enter any entirely new state or union territory, or will the expansion focus be on the geographies which you already have present? We are already present in 21 states. By and large, we have at least a small presence or a larger presence depending on the state. We are already there. We are not planning to open in any new geography or a new state, but existing states, we will definitely be expanding only there. Okay, okay, sir. Understood. Thank you. Thank you. Thank you. The next question is from the line of Siddharth from Goodfell Capital. Please go ahead. Hello. Yeah, go ahead. Hi. I wanted to know about the competition we are seeing from PSU banks. Is that in a sense intensified or is it at similar levels? Are our customers looking for EPLR? To Siddharth, so basically from PSU banks, we are having, obviously, they have reduced their rates and passed on the entire 1% repo rate cut to all the customers. However, most of the PSU banks which you see are in the higher ticket size segment, that is the active ones like SBI and Bank of Baroda and all. We are not facing so much in case of our segment, which is mainly below INR 2.5 million. Our average ticket size is INR 2.4 million for housing and INR 1.4 million for non-housing. We are so far facing. Anyway, what is happening is the rate cut also has put a lot of pressure on the margins. The aggression, which is otherwise there, is not coming more. In fact, the inquiries are coming more from the customers, not from the banks actually pushing it on the ground. That is there. Second, as regards to customers asking for EDLR, first of all, there is no requirement of EDLR. Customers are asking for a rate cut. They are not much aware of what EDLR or this or that. They are generally looking at repo rate and saying, "You also passed on some benefits to us." As mentioned, we have passed on 25 bps to our customers. Just to give you an idea, today, I believe there is only LIC Housing Finance and us who have actually passed on some rate benefits to our existing and new customers. LIC also, if my knowledge goes right, is about 25 basis points at CMSR. Other players in the housing finance segment or NBFCs have not reduced it for existing customers, nor have the private sector banks for existing customers. Okay. When do you think we'll be open to pass on? As I said, we have already passed on 25 basis points. 25. We've already done 10 basis points effective May and an additional 15 basis points effective July. As I explained in my initial message, this will pass on to the customers as per their quarterly or annual reset plan and also as per the month in which they have taken the disbursement. Okay. What would be our average sales score for our customers just to get an idea? Today, about 80%+ of our customers are paying a CIBIL score of 700+. About 9% of our customers are new to credit. Okay. That's great. Which quarter are we going to have our tech update? You know, is it in Q2 as planned? Q3? Sorry, I didn't get you. In which quarter? The tech upgrade. The tech upgrade. Yes. The tech upgrade is planned in two phases. The first one will be in August and September, where we'll be moving the borrowings and ALM, and that's planned because that is something which is not currently linked to our normal LOF/LMS. We'll be moving our ALM borrowings and that planned treasury module in the month of August and September. The core, which is the LOF, LMS, the DMS, and the deposits, will move in the month of November, which is in Q3. Okay. Just the last question is, our dividend policy, is it going to be around 10%? Last year, our average dividend payout was around 18% or something. I guess 20% is something we would be in the range of about 18%, 20% is what we would be maintaining. Continuing. Okay. Perfect. Thank you. The next question is from the line of Shweta Daptardar from Elara Capital. Please go ahead. Thank you, sir, for the opportunity. A couple of questions. For Telangana in particular, we have mentioned that positive cues are emerging, and now we are seeing no major turnaround. What has changed between Q4 and Q1? That's question number one. Second is, our BSA dependence reduction strategy has not yet met up a reasonable success, right? How is the kind of day forward there? Lastly, while you did mention that sizable amount of translation on the east branch has already happened, and maybe around 15 bps or 10 to 15 bps is around the corner, any scope of further improvement of margin to beyond 3.5%? Those are the three questions. Sure. See, in Telangana, as I was saying, this quarter, we have not seen much of a change. However, the overall reduction in delinquency that we have seen has been witnessed across the board in all the six zones. It is not lagging on some zones. That is one thing where the pressure of the, so delinquency is one positive. Second thing is that in Telangana, we have also made some changes in the teams and also in terms of the micro-focus and micro-analysis also we have done. I think we should now start seeing something going forward in terms of disbursement. We have already started witnessing and getting in in terms of our delinquencies. As regards to the main reason why Telangana was not doing well was the Hydra project. Of late, the demolitions, as I had mentioned in the last quarter also, somewhere in Q4, the government came out with an announcement that they will not make any further demolitions. At least, I believe, now for the last six months or something, there have been no demolitions under this Hydra. The confidence is also building up in the developer segment and in the people also. Therefore, this is one thing which is slowly now kind of changing things. Because once a demolition happens or all those things, it also affects the price. Now that there is no risk of demolition and all, slowly the prices also are kind of stabilizing, and therefore, the customer confidence is also improving. Basically, that is what has changed in Telangana. Second, as regards the BSA dependence, it has marginally further come down. We were at 85% in, if I were to say, in Q4 of FY 2023. From there, it has consistently reduced to 82% last year to 80%. In this quarter, it has reduced to 79%. As I mentioned earlier, two things. One, this additional sales staff that we are doing, that is something which is going to bring in more direct business and will slowly help in reducing the BSA's cover. Second impact, which I missed to mention, is that we have had last year 80 ACF proposals. This year also, we've added additional ACF proposals. Now, initially, it was more of enrolling the ACF proposals or just getting ourselves enrolled as an approved lender. Now, with regular contacts and everything, we have started getting good inquiries from the ACF projects also, directly from the builders or from the sales teams of the project sites. Basically, these are the two reasons why this would slowly emerge. As long as the BSAs are there, it's not that we want to reduce the amount of dependence or we want to reduce the BSA number or we want to stop doing BSA business. It is just that our direct business, as it increases, the percentage of BSA business has slowly come down. The last point as regards margins, I guess we are already at 3.64%, which is above our guidance that we have been consistently giving of 3.5%. We have maintained that we will be above 3.5%, and in this quarter also, from 3.57%, it has increased to 3.64%. I guess that is what will continue, that we will continue to keep it above 3.5%. Now, 4% and all, I am not sure if it's possible any time now. I think we also have to be cognizant that we have to offer attractive rates to get a better quality customer. That is one thing. That's about it. Thank you, sir. Very useful. Thanks, Siddharth. Thank you. The next question is from the line of Shubhranshu Mishra from Phillip Capital. Please go ahead. I have to say, top four questions. Given the fact that we are facing the issues in growth, are we thinking of having any co-lending arrangements with other HFCs or banks? Second is, I see a housing CRE segmentation around 11% of our AUM. Is that the construction finance, or is it the LRD sales? Related to this, do we have any plans to have a construction finance vertical, LRD vertical to probably grow? Given the fact that we are optimistic about the second quarter and second half in general, what is the number of home loan contracts we would onboard on a monthly basis? What are we budgeting for? Most of the HFCs have a separate subsidiary for cost measure to onboard the sales staff. I'm sure you'll be aware of it from the HDFC sales group there. Do we have plans to have a similar subsidiary? Thanks. Good afternoon, Shubhranshu. Thank you. I'll just respond one by one. As regards co-lending and everything, we are not, I mean, definitely not with the banks because today we don't have any pressure, you know, because we will actually have to be the majority of the primary lender. The 80% has to come to us if it is there. Obviously, we cannot have a co-lending arrangement with banks because they would want to be the major partner. Here, we will have to, if at all, do it with the smaller players where we can get 80% of the portfolio or the pool, and the origination happens at the other end. As of now, we don't have any policy for, you know, PA or for, you know, portfolio buying or co-lending. We are actually open to it, but we will take it as we once, you know, this forces IT implementation or something, we will take it because right now, one after the other, we are handling other issues. We will be taking it up probably after that. As for CF, currently, we don't have a CF position, and we don't intend to also start a direct lending to developers. We will be more reserved. We are only into the retail segment only as of the moment. The next question is, because the number of contracts, we are doing approximately about 4,000 to 4,200 contracts a month, which is approximately around 48,000 to 50,000 in a year is what we are doing. In fact, this number has been a little kind of very steady for the last few years, and the growth, whatever has come, has mainly come from the ticket size increase because we were about INR 2 million and moved to INR 2.2 million, and now it's around INR 2.4 million- INR 2.5 million. Basically, the number of contracts per month has remained the same, which is something we know with direct sourcing will be expected to increase. Third, as regards sales staff, there are two points. One, definitely not a subsidiary. We already are, you know, have a lot of reporting that the corporate is as part of the conglomerate and Canara Bank Group entities. We don't intend to have any other subsidiary under us for this one. As regards the sales staff, I think you also mentioned there is a cost angle to the sales staff. You are right in one sense. There is one option where most players are going for a DST route or DME route, whatever, where the fixed cost is just about INR 15,000- INR 18,000, and the remaining is entirely on a variable pay. That to be explored rather than, we said it is still okay from the cost point to take people on roll rather than take it on this kind of a model because when people are taken on the INR 15,000, INR 18,000, the attrition rate is very, very high. In fact, the minimum rate that we understand prevailing in the market for these kind of arrangements is about 65%- 65%. That is the minimum attrition rate. There are players who are even experiencing 100% attrition in this kind of a model. We chose to have a model where we will have them on the full on the roll, and they will be coming with whatever lowest, even if they come at the lowest entry level. It will be around INR 35,000, INR 38,000 salaries. That's the kind of structure we are opting for. I hope I've answered your queries. Just one part, please. Just housing, CRE, this is what APS sales on, what is this? Sorry, I didn't understand. Can you come again? On slide number 19, we've got housing CRE. These are the APS sales, is it? No, no, no. CRE, that is different. If it is a third house of a person, a person buying a third housing, and they are already having two residential units, then the third will not enjoy the same kind of a risk weightage as the first two. Those will be classified as a CRE, the third and subsequently. In Karnataka, there is a particular trend that people may put a house with two floors, and they give the first and second floor on rent, and there are three kitchens. Those also technically are qualified as CRE because there is also a part element of income generation from this asset. This is basically CRE housing only. It is a dwelling unit only, but they classify for a different risk category, risk weightage. That's the CRE. The housing, as I mentioned, we don't have a developer finance, and whatever we get from the APS projects, they are normal housing. If it is a third house of a person, it will be classified as a CRE. Okay. What is the risk rate on this? The risk weightage is higher. I'll share the exact risk weightage for CRE separately. I'm immediately not sure. Sure, sure. Thank you so much. That's a plus point to inform. Thank you. Thank you. The next question is from the line of Anushya Raheja from Dalal and Rocha. Please go ahead. Yeah, am I audible? Yeah, yeah, you're audible. Please go ahead. Yeah. From the spread side, sorry for being repetitive. You said that from the time it gets affected with the customers who are on an annual reset, and that share is closer to around 72%. Can we expect in the near term, margins of the space to increase? Yeah, currently it's at 67%. 72% was in March. I said only 5% have moved. Actually, what we have seen as improvement in margin is mainly because of the delay or the lag effect of the PLR benefit going to the customers. After we experienced, say, when we experienced 10 basis points, we took out after the February rate cut. When we experienced it by March 31, we had in the April ELCO, which is different as a 10 basis point, which we passed on effective May. Obviously, now we have already experienced it on our liability side, and then when it goes to the customers, it will pass in maybe next month or two months later or six months later or eight months, depending on the thing. That is where this increase in spread has slightly happened. Going forward, also the 15 basis points plus any subsequent rate cut that we offer will also go with a slight lag effect. It can be possible that a little bit of increase in spread might be there going forward also. I'll not be able to quantify it, but I guess it is possible. Yeah, you're right. What is the incremental cost of borrowing currently? Assuming that if there is any further reduction, it's effective over the next six months' time, will that also be passed on to the customer? See, incremental costs for different, different, you know, products have a difference. It depends on which segment you would want to go to. For example, we are getting bank borrowings at around 7.25, anywhere between 7% to 7.25%. NCD rates are also at the same rate. CPs are below 7%, below 6% for us, actually. In fact, today only we've raised at around 5.92%. That is a 90-day CP. NFC, as I said, going forward, where the reduction is expected is that, one, we have certain term loans where that 50 basis point reduction, which happened in June, is yet to be passed on. That amount is around INR 2,500- INR 3,000 crore between that. That's term loans will experience a reduction in the coming couple of weeks. Another thing is NHB, which is about 15%- 17% of our entire borrowing pool, there no reduction has happened, and the regulator has not announced any reduction in the PLR. As and when that is announced, we will also start getting that benefit. There is some further reduction possible in our borrowing cost. As I mentioned today, the mix is such that today we are right now taking mainly from the banks and also, you know, a little bit of there. NCDs we will mostly take after August because we have also extinguished our, you know, approval limits within that our shareholders have given for the last year, about INR 4,000 crore. When we get a new limit, we'll again go for NCDs, which again could be a little lower than banks also possibly. What can be the quantum of benefit that we might get in terms of on the term loans and NHB? You said that there can be rate benefits. Both put together, if I can quantify on this. See, our total NHB borrowing is already given in our presentation. On that, we don't know how much is the rate cut that NHB will announce and what are the terms, whether that will be immediate, whether that will be on a quarterly basis, or whether they will immediately impact it because already it's been more than six months that the rate cuts have started, but they have not done anything. I'm not able to quantify as of the moment. It all depends on how much NHB passes on and on what terms it passes on to us. If at all it comes, today 50% of the NHB or I think about 40%, 45% of the NHB borrowings are on fixed rate because these are under the special AHF line of funding where the rate is fixed. Even if at all we get, it will be again on the balance, about INR 3,500 crore kind of thing that we will get. Currently, our NHB refinance is INR 5,800 crore. About 40% of this, as I said, is fixed as an AHF. The remaining 60%, which is around INR 3,000 crore, INR 3,200 crore or something, is where we will get the rate benefit when NHB passes the AHF. Just to clarify my purposes, I mean, your purpose here is that we will continue to have a 3.5% margin. Irrespective, if we get a higher benefit, that will be passed on to the customers. Is that the purpose? Yes, I mean, we have been very transparent in that sense that whenever we experience a benefit, we do pass on to our customers. Of course, when it increases, also we are passing on to it. That is the. Sir, going on the IT transformation, what is the status currently? Where are we? In the IT transformation project, as I mentioned, there are two phases in which we are going to be implementing. On both the things, we have our governance structure where we have a daily stand-up meeting, weekly and quarterly meetings, and once in 45 days, a meeting for update to our IT strategy committee. As of now, the project schedules are going as per the timelines which were given or drawn up at the beginning. We are very much on course for August and implementation of our ALM and the treasury module and borrowing module, and November last week for our LOS, LMS, DMS, and everything. If I'm not mistaken, the quantum is around INR 35 crore projected per year, right? Hello. Hello, sir. I'm audible. Looks like we have the management line disconnected. Please say enter while we reconnect the management. We have the management line reconnected. Ms. Anusha, please go ahead. We had a small issue here. I guess I was just mentioning that to your last question, the CRE risk weightage is 100%. Hello? Anusha, please go ahead with your question. Just one last thing from my end. Sir, can you extend the access throughout to pick up the sales? Or Or we can put the vendor there, maybe when the ID documentation is done. I hope I'm audible. Sure. Please disconnect it. We have the management line disconnected. Hello? Yes, sir. Please go ahead. Yeah. Yeah, AUM growth, I think you were asking for. Going forward, definitely with the increase in our growth, disbursement growth, the AUM growth should also pick up. Normally, it comes with a lag. This year, if you are doing about INR 10,500 crores at the current rate, we should be able to add about INR 5,000 crores to the AUM, which should be around 12%- 13% approximately growth in the AUM. With the same kind of growth in the coming year in terms of disbursement, the next year growth should actually increase or move up to around 15%. Okay, sir. Thanks. Thank you. The next question is from the line of Arvind Kumar from Riverside Dialysis. Please go ahead. One thing I wanted to check was non-employee expenses. There has been almost like a INR 10 crore decrease. I just wanted to understand what is this and is that sustainable. Secondly, what are the kind of growth drivers we are looking at going forward? What will it take for us to actually achieve this particular growth? Because yeah. As I mentioned, I think other than the salary cost, the major area where the cost has gone up is mainly the rent and the taxes because last year, whatever we added, just the 25 branches as well as the six zonal offices and the extra space that we have taken or increase in our head office, all that has come post-June. In the first quarter, all these expenses are not there. That is actually quite a large component. The second component is about INR 1 crore additional in improvisation we made for our CSR expenses because with the increase last year, we had a CSR target or budget of INR 15.12 crore. This year, it is INR 19 crore plus. Therefore, about INR 0.75 crore is the extra CSR apportioning that has happened in this quarter. These are the two major expenses on the expense side. As regards growth drivers, one, of course, is the branch expansion that we are doing. The last impact, 29 that we have opened in the last two years, in fact, they have also started contributing. Last year, the total additional business that these 29 branches brought was about INR 101 crore, mainly from the 14 branches that we opened in FY 2024 because the FY 2025 branches were mostly opened in the last quarter, therefore could not actually have contributed much last year. This year, again, all these 29 branches will be there. This year, we are front-ending the branch expansion, and by 30th September, we plan to open all the additional 15 branches operational. Branch expansion is one area which will bring growth. The second growth driver, of course, is the sales team. Last year, we got about 39 odd people to work in the sales team, and they were able to contribute in Q4 about 4% of the incremental business. This quarter, the same team has done about 5% of the incremental business. Effective 1st of July, we have increased the strength from 37, 2 people left, so 37 plus we have added 63 people. As of now, we have 63 plus 37, that is 100, and we plan to add a few more in the coming weeks. These are the two major drivers for growth. There will be a little bit of increase in the ticket size. Actually, Karnataka and Telangana both are zones where our ticket sizes are a little higher than our overall company average, and these two markets are presently also slightly weak for us. As and when they pick up, the ticket size over there will also pick up. Basically, it is the branch expansion and our sales team. Can you also just give me an idea of what do you expect the cost of the quarters will be this year and next year? See, this year, it will be, as I mentioned, there is an actuarial impact, which is entirely in the Q1. In the next three years, the quarter's actuarial impact may be a little more subdued. Therefore, by the end of the year, I guess our cost-to-income ratio should stabilize around 18%. Okay. With the IT cost coming in, I think it will be around closer to 19% because earlier we had expected it to be 17% and 18%. With the salary hike, which is almost impacted by 1%, we revised our targets to 18% for the current year and 19% for next year. Okay. Thank you. Sure. The next question is from the line of Siddharth Gand from Accidents Gap. Please go ahead. Hello. Am I audible? Yes, you're audible. Please go ahead. Thank you very much. Just a couple of clarifications before I ask my question. For FY 2028, target for branches was 300 branches. Was that right? Yeah, that is fair. INR 300 billion by FY 2028. Okay. The 80th that you mentioned too, referring to the previous question, for HL, it is INR 2.4 million and NFL, it is INR 1.4 million. Was that correct? Yeah, average ticket size is INR 24 lakh for home loans and INR 14 lakh for non-home loans. Yes, thank you. Now, coming to the questions, firstly, I'm just seeing that there is a trend of increasing share in the more than INR 3 million ticket size in our AUM. That is coming at the cost of the INR 2 million and lower taking a back seat. The question here is, are we seeing a higher demand or a better demand in the upper bracket and/or more competition in the lower bracket and therefore it's not being that attractive? How is that dynamic in these ticket size brackets? See, actually, in the less than INR 2 million or larger, less than INR 1.5 million, which was mainly a large jump for us earlier, there are definitely, you know, the supply issues are there. I've been saying that affordable housing is safely, you know, going down. Now, in fact, it is also reflected in all the numbers. That is definitely there. Yes, this INR 2 million- INR 3 million segment is something which, you know, this quarter we have gone down is something which has worried for us. We will work on it this quarter. Definitely, we will be working on that because that is definitely now the increase in our average, you know, our core constituencies are definitely INR 2 million or INR 1.5 million- INR 3 million. This INR 2 million- INR 3 million segment, which has gone tightly, you know, been affected, that we will correct going forward. I think that is where we will get the better yields. That's what I'm saying from that. Yeah, coming to your question, it is not because of any demand issue or something. I think we have this ATF and all the focus has slightly shifted the focus. I think we would like to also kind of also focus on this 20 to 30. We will definitely see the correction in the coming quarter. Understood. What is the average LTV of the portfolio as a whole, just as a statistic? Average rating? LTV. LTV. Loan to LTV. LTV ours is roughly, if you look at the, you know, we give up to 80% of the cost. We also have a decision of taking a valuation at the time of the loan. Obviously, the realizable value and market values are higher. If you look at the realizable value, it would be somewhere closer to 60%. Understood. Now, coming to the login growth. Our approvals have been kind of 4.5, 4.6% growth year over year to 2016, and the disbursement ratio, approvals to the disbursement ratio, is 98%. It's at one of the highest levels. Wanted to know with respect to the logins, what is the login number and how is that improving? Are we seeing better traction in the logins? See, firstly, one thing I would like to share is that in the logins, we have a 30-day validity for the sanctions. Automatically, the sanctions which are done, if they are not disbursed in the 30-day period, then the sanctions lapse. That is one thing. The second thing is particularly now in the recent couple of quarters, because of this Karnataka issue, our logins slightly in Karnataka, we have not been logging in because unless we get the E-Khata, otherwise, it is only unnecessarily taking the processing fee from the customer. We have not been logging in. These are the two issues I would say. Other issues, generally, because our 80% business comes from a DSA, I would say the actual percentage that we have calculated will not be a correct representation because many cases which the DSAs bring, if they are not doable, they are not logged in also because the DSAs already know what kind of cases are doable. Therefore, we don't get all the inquiries that are coming, are actually not logged in also. That is one small thing which, once the IT team comes in and we come up with a CRM module, we will be changing that. That would, I think, give a better and more clearer picture. I would assume that in the industry, the login to sanction and sanction to disbursement, the funnel, that should be at least a 20% fallout in the login to sanction, which is not reflected in our numbers because of the DSA focus. Understood. Sir, I was actually looking at the NFP data. I was just wanting to understand the statistics with respect to the individual housing loan book, what is our individual housing loan outstanding as a second boon? If that could be served. Individual housing loan? Yes, individual housing loan book because the NHB publishes the data once. I was just wanting to know what is our specific number. I'll give you the breakup of your housing loan. Okay. I will be able to give you the breakup separately, but if you look at it, CRE today is 74% is our housing. Okay. Sir, of the total, what would be the approximate percentage ballpark number of individual housing loans? A ballpark would also apply. No, see, I'll give you the breakup of housing, non-housing, everything separately. Today, first of all, we don't have any corporate books. Everything is retail. Understood. Non-housing, I will give you the separate numbers. Just give me. No worries. No, thank you. Just finally, on the year-to-book rundown, we've been under 4% for the last five quarters, and annualized it comes around to 15% odd. What would be BT out of this? What would be the annualized BT out that we are targeting and the overall annualized rundown rate for the year? Sure. See, annually, if you look at it, the 15% that you're talking about, 15%- 15.5%, out of that, less than 4% is the BT out because we have about 3.75% is the amortization. We have a huge amount of part payment coming in, which is almost around 8% or thereabouts, where people only make part payment, but the place is still live, which is basically just to reduce their liability or reduce their EMI. They just look at it. Our actual BT out or loan closures is only about 4% out of the total. Okay. Thank you. I'll run back and ask you. Thank you. The next question is from the line of Shreepal Doshi from Equirus. Please go ahead. Hi, sir. Thank you for giving me the opportunity. Our first question was on what percentage of our borrowing line borrowing is linked to T-bills and repo? Sorry, can you repeat again? What is the? What percentage of the line borrowing is linked to key bills and repo? Approximately 20%. 80% is linked to repo and 20% linked to T-bills. Okay. We do not have anything like we do not have NCLA linked. The entire bank borrowing is stretched towards T-bills and record books? Yes, yes, yes. Okay. Okay. Sir, you were highlighting about NCB borrowing. What was our incremental borrowing rate during the quarter for NCB? During the quarter, just a second, I'll listen. NCDs actually, we raised one NCD around 7.24%. That was the rate at which we raised for the NCDs. What's the point? 7%? 7.24% was what we raised the NCD. Okay. Got it. Last quarter, it would be higher, right? Like. Sorry? In last quarter, I'm talking about last quarter. As I said, after that, we have exhausted our limit of INR 4,000 crore from our NCD borrowing from the addition. We have not done for the last one and a half months or something. Okay. Got it. The market after the ATM. Now we will do that in August as you want. Is what you highlighted, right? Yes, yes. Correct. Okay. Sir, just wanted to understand, you know, this, I mean, the PMAY 2.0. How is the momentum there for us, and how are you seeing that benefiting the industry at large? See, this interest subsidy is PMAY 2.0. It is definitely nowhere close to the kind of euphoria that we saw in PMAY 1. In fact, we are very clear so far, only 70 applicants. Of course, we've received many inquiries for the PMAY 2.0, but the number of cities that are eligible for the PMAY 2.0 is substantially reduced compared to PMAY 1. The second thing is, the requirements in terms of the customer credentials, like the Aadhar of all the family members, and all those details are such that there is a huge amount of data entry and data capture that is required. Basically, it is so that the government can, based on all that data, do an elimination so that customers don't take benefit under multiple schemes of the government. Because of that, there's a huge amount of elimination which is happening where customers apply for PMAY, but because they are already, say, not qualifying in one of the 1,100 towns or under the selected PIN code, or because some family member, a brother or a father, has already taken a benefit under some other scheme of the government, the eliminations are very high. As of today, only 70 applications in our case have become eligible after all these clearances for PMAY 2.0, and out of that 70 cases, as of today, only 7 cases we have actually got the claim subsidy from the government. Okay. This is since, I think, September. Sorry? This is since September last year, right? September 2023, when it got implemented, basically. Yes, actually, they implemented it from September, but by the time the portal was ready and everything, it was almost November. Anyway, the point is from September to today, only 70 applications have come. That is, in about 10 months from 1st September to today, only about 70 applications have cleared and are eligible. Now, out of this also, customers, some of them could drop out and may not avail the loan. In only 7 cases, we have got the subsidy. Okay. Okay. The ticket size here, I mean, of course, it will be the maximum that is linked. The ticket size of the customers will be what? I will have to check up for these 7 customers. I am not. Okay. Okay. Got it, sir. Also, just the last part was on something that you highlighted that for us, the number of contracts have not seen significant rise in the last few years. The growth has been driven by ticket size broadly. You also alluded that, you know, at system level, growth in affordable housing is seeing some slowdown. Just wanting to get some more sense on the slowdown in the affordable housing too. Is it very geographic-centric or is it any, you know, ticket size-centric or customer profile-centric or at broad level you are seeing these trends? It's more of a broad level kind of a thing because incentivization, which was, I mean, incentives which are there for developers to bring in the supply under this affordable segment, has not there. Like this particular PMAY thing, which was a very major, you know, boost for the affordable segment earlier, now is not so very attractive because the customers cannot claim the entire subsidy upfront. The subsidy will, and secondly, as I said, the number of cities are introduced. The elimination criteria is also there. In fact, the actual trickle, whatever inquiries are there, it becomes quite a bit of a trickle subsequently by the time it is converted. Therefore, the incentive for the developers to come in and construct low-cost housing is not there. Obviously, you know, compared to premium housing or mid-segment housing, affordable housing is a slower-moving product. Unless the incentives are there, this segment will not see the supply coming in. That is one of the major reasons I strongly believe that the affordable housing is slowing down across the board. Of course, I want to say, you know, earlier, if you look at PMAY, the round of PMAY, the maximum, you know, the states which we are doing, where obviously there were telling five or seven states who are doing more under PMAY, so there the slowdown would be more pronounced because they were also more active and the supply and the quantum was also much higher in those states. These states were broadly, I think, Gujarat, or if you can say just name like the Gujarat-Karnataka, right? That is the same, you know, Gujarat, Maharashtra, Tamil Nadu, Karnataka, MP. MP was also quite strong in this thing, PMAY-wise. These are the states where, you know, the slowdown will definitely be there in affordable. Got it, sir. Got it. This is very helpful, sir. Thank you so much, sir, and good luck with the next one. Thank you. The next question is from the line of Rishad from Bandhan Nasir Vanikwan. Please go ahead. All right. Thank you for the opportunity. Sir, a couple of questions. Would it be fair to assume that the 25% rate cut that is currently that you've implemented, that is practically availed by less than one-third of the borrowers? Approximately about one-third of the borrowers would have availed it. You're right because at least that 10 basis points of May would have happened in May, June, and July, almost from July to at least some raised benefits for all the quarterly customers would definitely have been translated. For the annual customers also, some of them who have probably fallen, whose rate refresh clause has fallen in the month of May, June, or July, they also would have experienced it. By and large, we can say that at least one-third of the customers have got this benefit. The remaining two-thirds have not, yet to experience that. Fair enough. On the liability side, could you give us a perspective on what is the kind of decline in cost of funds that you would see, say, by September quarter or by December quarter? What would the, if you could say in terms of basis points or whichever metrics you find suitable? See, at least as of the moment, I can definitely say that a 50 basis point cut in approximately INR 3,000 crore of book liability book is definitely, you know, on the card because that is the one portion of the bank portfolio where we have not experienced the rate cut. Other than that, in terms of the entire CP portfolio, which was there in the last quarter or in the last financial year or in the last quarter or Q1 of this year, that anything is getting repriced as it is, and the entire impact has already come into the CP portfolio. NCDs are fixed, so that is not a question. Probably, you know, our NCD overall, we had a, you know, cost has not changed much. In fact, it has only increased because one of our very low-cost, INR 750 crore of low-cost NCD, which has matured in Q1. That is not actually majorly impacting in NCD cost. Going forward also with the kind of rates that we are seeing, I think it has kind of stabilized unless there's another rate cut. 7.24 is what we will probably get today also. 7.27, 7.24 is what we might get today if we go to the market. That is what is the rate cut. NCDs, I don't expect any further rate cut. As I explained earlier, NFB is definitely likely, but I cannot quantify. If at all it comes, it will come on approximately INR 3,000- INR 3,200 crore of portfolio of NFB, which is under fixed floating rate. There some reduction is possible, but that depends on how much NFB reduces. As of the moment, the only thing I can say with confidence is that approximately INR 300 crore of bank borrowings, a 50 basis point cut is definitely pending in a couple of quarters, a couple of weeks. Sir, I mean, looking at 53% of our borrowing is from banks, and 80% of that is linked to repo. The quantum of decline that we should see should be much higher, right? I don't know if I'm missing something. Actually, today, if you see the cost of borrowing, which is there in Q1, is 7.42%. That is because some of the rates we got the benefit in April, some we got in May, some we got in June. Effectively, the 7.42% is what we have experienced in the book. However, going forward, if you look at my liability profile, my current coupon rate would be around 7.3%. Going forward, my cost would be 7.3%. Same way, however, on my asset side, what is 7.09%, it will see a reduction. Again, it will not go in a point below 2.6%. That's the point. I hope I explained, you know, the difference between what it experienced in. What are the coupon on the spread? Fair enough. I understand that there's a difference between stock and flow and your focus on the spread. My question was more from the cost of fund. I mean, looking at the way rate cuts have happened and all that, and your exposure on the LIBOR side, it seemed like the 7.4% instead of 7.3%, it could be slightly lower than that as well. For 7.3%, we should get by December or that's? No, no. 7.3 is what we are already having in the books right now. Of course, incrementally, the cost of borrowing will be, as I said, NCDs are at 7.24, bank borrowings are all coming at 7.25 and below. NHB, if at all it comes, it will be in fact sub 7 because last time when we got it, it was at around 6.5 or something was the average rate. 6.5 or something was the total blended cost of the NHB borrowing. CPs, of course, are coming at sub 6. Effectively, my incremental borrowing cost is definitely below 7.3. Plus the fact that on my 7.3 is considering that my INR 3,000 crore of bank borrowing is still at a higher rate and 50 basis points is yet to be translated. I guess once that INR 3,000 crore portfolio also gets repriced by 50 basis points, my cost of borrowing would be around 7.25 or 7.26, which will be in line with what the incremental bank borrowing or incremental NCD I might be raising. Okay. Okay. My last question is on the growth funds. I mean, when you say that we will be... May I request a question queue for a follow-up question? I've got several participants waiting for the turn. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Kushan Parikh from Morgan Stanley. Please go ahead. Thank you for taking my question. I have two questions. One is on the OpEx side. If you could just help us understand the differentiation between the recurring and the non-recurring part of the employee cost. Out of the INR 42 crore, how much would we expect to recur in the next quarter given the several changes that we have in terms of team size, etc.? The second question is around the asset quality. Could we maintain our 15 basis point sales cost? If you could just elaborate on that as in where do you see the GNPA ending up at exit FY 2026 and what is the provision coverage that we would like to maintain? Also, on the sticky accounts that we are allowed to split to NPA, what is the current provisioning against those accounts? Sure. Yeah, sure. In terms of the OpEx cost, the INR 42 crore that you have mentioned, as I said, there's about INR 4.5 crore approximately or INR 4.5 to 5 crore, which is mainly on account of the actuarial cost, which is almost one time, we can say. Going forward, that may not be there. Around INR 36, 37 crore is the cost, which is the, you know, continuous cost which will be there on the existing because approximately INR 12.2 crore or something is the annual salary expense that is coming out for us. In a quarter, that would be around INR 36, 37 crore. That is the one which will continue in the remaining three quarters as well, barring, of course, the additional which will be for whatever additional staff we will be taking. By and large, it will be around INR 37 crore as the actual fixed cost, which will now continue in the remaining three quarters as well. Second is aggregate 15 basis points credit cost guidance that we have given. Last year, when we had about a total of about INR 75 crore of total provisioning that we did for NPAs and everything, that was approximately working out around 13 basis points. In this quarter, as you have already seen, we have a INR 280 crore reduction in our gross carrying currency in absolute value also, INR 280 crore. Going forward, also, the amount of steps that we have taken and some of the, you know, things that the way that we are experiencing even in this fund, we expect that to further come down a little bit. That is in terms of the overall delinquency. Particularly in terms of the NPA, which is around INR 378 crore, we expect it to go somewhere around 0.80% by the end of the year because, you know, assuming around INR 42,000, 43,000 crore of book that will be there, in which case, 0.80% would work out around INR 340 crore of NPA, which is another INR 38 crore reduction that we have seen in the remaining three quarters. This particular INR 13.9 crore of sticky accounts that we classified as which we are allowed to flow, obviously, as per the ETL model, the working is there. We have to follow the ETL model. Based on that, the provisioning is coming. Overall, as you know, for, say, three-hour provisioning, roughly around 47, 48% is what is our normal, you know, provisioning percentage. Got it. We should not expect any additional provisions coming in for these specific sticky accounts going forward? As per the ETL model, whatever will be the calculation, because if you work on a scientific five-year trend of the analysis and all, if the NPAs are coming down, obviously, there will be some reduction in the provisioning. Like we had last year in Q4, there was about INR 10 crore of reversal. If actually we are able to bring it down to INR 330, 340 crore kind of an NPA by the end of the year, there will be quite a bit of the provisioning that will get released in Q3, Q4. Understood. Understood. This is clear. Yeah, thank you. The next question is from the line of Samutran Kosi from Acquisitive Capitals. Could you go ahead? Yeah. Hello. Thank you for the opportunity. Just one question from my side. On disbursements, can you break out the impact of Karnataka and Telangana in this quarter in terms of the decline in percentage and the contribution to the overall disbursement? Thanks. Sure. See, in terms of disbursements, Karnataka for us is about INR 600 crore of disbursements. We could be around 30% more consistently. Telangana is much less. In fact, the negative over there has been quite high, closer to 30% like last year. Telangana has been that much, whereas Karnataka has been almost close to INR 600 crore as a disbursement in this thing. About 30% business is from this, whereas Telangana contributes just about, I don't know, one third of it. It's just about INR 225 crore or something is the disbursement there. Sure. In terms of percentage decline for? As I said, 29% is the decline for Telangana. Karnataka in this percentage terms is around, you know, 12%. Sure. Thank you. That's all from my side. Thank you. The next question is from the line of Abhijit Tibrewal from Motilal Oswal. Please go ahead. Thank you for taking my question. Just two clarifications. First thing is, you said that 67% of the customers are still on an annual refund. How is it to say, right, that in the next maybe nine months or so, on a rolling basis, all the customers will get benefited to the extent that we are taking the PLR recur? Correct. That is correct. That will be a flow. As I mentioned, about 5%, we were 72% around annual as on 31st March, and now it is around 67%. There is a 5% reduction, yes, more and more customers will now, in fact, I was expecting a higher flow from annual to quarterly because the repo rate cut has been quite substantial at 1%. I was expecting it to be higher, but only 5% have converted. Going forward, this entire portfolio will also shift, should shift. Got it. In fact, the other thing I was trying to understand, just referring to slide 25 of your presentation where you did the rundown ratios every quarter, right? While I understand we are in a very different rate cut cycle, we are in a declining rate cut cycle now. Typically, if you look at that slide, every one quarter, there used to be a dip in the rundown rates compared to 40. We've seen that consistently for the last three years. This year, it has marginally inched up, right? Basically, all I'm trying to understand is, is there a risk for balance transfers here? Earlier in the call, you had shared that out of the total rundown of 15%, 15.5%, just about 4% is due to out. What I was just trying to understand is that 100 basis points repo rate cut has really happened. Most of the PSU banks, at least from the bank book, have passed on 100 basis points and are also doing similar or a slightly lower cut in the newer disbursement that they are doing. Despite that, I mean, across the industry, I'm talking about the HFC industry, like you had mentioned earlier, except for LIC, none of the other HFCs have taken that kind of a PLR cut as yet. Despite that, the balance transfers are not inching up. How should we read these two things is what I was trying to understand? I would not say that the balance transfers have not inched up. Probably they have. If I look at the number of customer requests that are coming for rate reduction, the customer, the brand feedback that I'm taking is regularly, there is a slight increase or a definite increase in the number of customers who are asking for a rate cut. There could be, I've seen definitely a slight segment where they would have already moved more than the normal. It would be more to the PSU banks. Coming back to the PSU banks, as I mentioned, their margins are also now getting squeezed. The pressure would be more from the customers wanting to shift away rather than the banks trying to pull the customers away. The pressure is more from the customer who definitely doesn't want to continue here. He will go to a bank and make an application rather than a bank now aggressively coming and doing campaigns to push customers from PSUs, I mean, from NBFCs and HFCs. That is what it is. I guess this is one of the reasons why we have not, because we have at least been able to pass on 25 bps. In fact, we have seen that many customers are out to understand that we are the only ones who have at least passed on. That transparency has helped to some extent in doing it. Maybe if you have to have an aggressive DT in strategy, you might probably have been able to pull from other NBFCs and HFCs also, but we don't have any major such strategy. Got it. Got it. Lastly, just trying to understand, you guided for INR 10,500 crore in disbursements, 12%-13% kind of a growth. That would mean, like you said, right, INR 2,500-INR 2,600 crore of disbursements in this quarter. Just trying to understand from almost INR 2,000 crore in this quarter, how do we see this run rate improving to INR 2,500 crore in the second quarter? I acknowledge you spoke about adding another 67, thereabout, barristers, staff. You spoke about APX, right? Are those things, and branch expansions, I think I recall you said, will be front-ended until December. Are those things you're saying will help you get through that INR 2,500 crore disbursements in the second quarter, or are there other things beyond what I just mentioned? Just one other thing I would mention is that, you know, April month particularly is one month where we always see a huge drop. Okay. So roughly like around INR 800 crore if we are doing it. In the month of April, we had less than INR 500 crore of disbursement. It's only in May and June that we have picked up and we have done it. This is a normal thing which happens every year in the month of April. There is a huge drop. Effectively, if you look at what we have done in the month of June also, it is almost around INR 800 crore. It is INR 800 crore. Therefore, you know, that 800 into 3 would tell the 2,400 is something which is built in. We just have to avoid that, you know, that April is one thing which always is there where the drop happens. That is why, you know, INR 2,500+ is what we are targeting for this particular quarter. Got it. Just one last clarification given your opening remarks. May we request that you return to the best view for a follow-up question? Yeah, sure. Thank you so much. Thank you. The next question is from the line of Chirag Khan from Accidents and Capitals. Please go ahead. Hello. Thank you for the follow-up. Two quick ones. One with respect to the loan asset bifurcation with respect to fixed and floating. How much of the total portfolio is fixed, fixed rated, and what are the kind of products? Like, are we doing also home loans at fixed rate, or is it primarily the personal loan and other, non-home loan products? Currently, only 1.3% of our portfolio is fixed, which could be mostly our stock loans and stuff like that. Other than that, practically nothing is fixed. We have the breakup where, as I said, 67% is approximately annual refit, and 32% is 31 point something percent is quarterly refit. The remaining 1.3% is the one which is not under floating. Understood. Within the AUM share, with respect to the purpose, the slide that is shared on slide number 19, the mortgage LAP and top-up has gone up by 2%. Are we trying to increase that? What is the general rate of interest that we get in this product? See, actually, we have a strategy where we had in the vision, I mean, a Pfizer strategy paper said that by FY 2028, we want to increase the non-housing, which was at that point in time around 11%, to take it up to 20%. 89% was, at that point in time in FY 2023, housing, including CRE. 79% was core housing, 10% was CRE, and the remaining 11% only was non-housing. By FY 2028, we have taken a leap and we would be open to taking it up to 20%, that 11% to increase to 20%. That's why our conscious decision to slightly increase our top-up and LAP. Understood. What would the general interest rate in these LAP and top-up? You asked that. I missed that. We have about 1% higher than we charge in case of our, you know, in case of our LAP. Our LAP charge rate starts from about 10.75%. 10.7? 10.4. Understood. Just a final one on the branch expansion. In the West, I believe you said the branch expansion will be focused more on the West and the North regions. Any specific state are we targeting? You have a lot of other affordable players and also your other normal HFCs and NBFCs also present in those regions. Any specific state and are we going to try with any differentiated product strategy or any color with respect to how are we looking to expand in these specific regions and the name of the state if it is possible? No, we don't have any specific state. It will be spread across all the states. In fact, in North, we are there in Punjab, we are there in Haryana, Delhi, and UP. We will be opening a couple of branches, one, one, two, two branches in all these states. It is not there any specific. Same also for the West, if you see, we have Gujarat, Maharashtra, MP, and Rajasthan. All the states, we will be opening branches, maybe one or two in every state. That's how it is. There is no specific focus on anything. As for the product strategy, no, we don't have any exclusive new branch we are going to focus on any new thing. The same product line will be there. Yes, North and West generally have a slightly tendency to have, and Tamil Nadu for that matter, have a slight tendency to have a higher SCNP category. That would probably be one of the things which would emerge. Otherwise, no specific product that we are going to launch or any special offering we are going to give. Understood. Thank you very much. Congratulations on the good share numbers. Thank you. Thank you. The next question is from the line of Rakesh Kumar from Valentine Advisors. Please go ahead. Hi. Just one small question. After those days, 17% of common SV, and you said the rate has not been revised there. That is firstly quite surprising that RBI is pushing so much effort in terms of liquidity to reduce the short-term rates. Still, the thing is, we're trying to understand that, as a term for business, do we have any obligation that if the NSV is reducing the rate, we also have to pass on it in the same proportion as much as possible? Not in that sense, but there are certain lines of refinance where there is a cap on the spread that we can maintain, something like 4.5% spread above what rate they have lent. If it is within that spread margin, then we don't need to pass on, or it is our policy to, or how much we pass on or things like that. Otherwise, there is no such back-to-back kind of arrangement or a compulsion or anything. Having said that, in fact, NHB has not reduced. We have actually gone ahead and reduced 25 basis points for our customers. Even the customers whose loans have been financed by NHB refinance or back-to-back refinance has been taken away from NHB for those loans, those customers have already got the rate reduction, whereas the borrowing for those specific loans from NHB has not come down. Got it. Got it. Thank you, sir. Thank you. All right. As there are no further questions, I would now like to hand the conference over to the management for closing comments. Yeah. Thank you to everyone and to Investing India for organizing this earnings call and to all the participants for very detailed questions and taking interest. Thank you very much. In case there are any follow-up questions, you can always contact Investor Relations, that is either to Adhisesh Mishra, who's the CFO, or to any of the other members who are present here, the DMD, the DM, or myself. Thank you so much. Thank you. On behalf of Investing India, that concludes this conference. Thank you for joining us. You may now disconnect the line. Thank you.