Thank you, Bharti. Good morning, everyone, and welcome to this call. We have with us Mr. Y. Viswanatha Gowd, MD and CEO, and Mr. Sudipto Sil, CFO of LIC Housing Finance. I would request the management to share their initial remarks, post which we'll open the floor for Q&A. Over to you, Mr. Gowd. Okay. Actually, a very good morning to all of you, and thank you, Pradeep. At the outset, I actually hearty welcome to every one of you, and invite for this post-earnings investor call of LIC Housing Finance Limited. As you are aware, LIC HFL declared Q1 FY 2022 results yesterday. Before beginning, I wish you and your near and dear ones very good health and safety. Though the previous financial year closed on a note of improved economic activity, since April, however, the situation changed rapidly with the emergence of the second wave of the pandemic, with lockdown and restrictions being imposed across various parts of the country, plunging the economic recovery again into uncertainty and also affecting our own operations. Since June, there has been improvement in economic activities. However, the graph of recovery will continue to hinge on the pace of vaccination and containment for prevention of the future resurgence of the pandemic. The key highlights of the results for the quarter are as follows. Total revenue from operations, INR 4,857 crore against INR 5,004 crore for the corresponding quarter of the previous year, showing a decline of 3%. Outstanding loan portfolio stood at INR 2,02,548 crore against INR 2,09,817 crore as on 30th June 2020, reflecting a growth of 11%, out of which individual loan portfolio, individual housing loan portfolio stood at INR 2,16,947 crore against INR 1,95,176 crore is up by 11%. Individual home loan growth reported a growth of 13%. Now it comprises a little more than 78%, up from 76.6% a year ago. Total disbursements for the quarter were INR 8,652 crore. Out of that, disbursement in the individual home loan was INR 7,650 crore as against INR 3,560 crore in the last quarter, a growth of 152%. Disbursement in project loans, that is the developer loans, were INR 237 crore. Net interest income for the quarter, crores, as against INR 1,202 crore, recording a growth of 4.5%. Net interest margin stood at 2.2% as against 2.32% for the Q1 FY 2021. Profit before tax for the quarter stood at INR 192.93 crore as against INR 1,017.67 crore. Profit after tax for the quarter stood at INR 153.44 crore as against INR 817.48 crore for the same period in the previous year. Loan disbursements during the quarter remained positive, though they were impacted during April, May due to the resurgence of the second wave of COVID-19. Geographically, the growth remained evenly distributed across the various regions, with southeastern, western, south, and the south leading. Our mobile platform, HOMY App, recorded very good pickup accounting for more than INR 3,400 crores sanctioned during the quarter. On the portfolio front, the total portfolio recorded growth of 11% at INR 2,32,548 crores. With increased focus on the home loan segment, the growth recorded in the home loan portfolio was 13%. In terms of asset quality, stage 3 exposure at default as on 30th June 2021 stood at 5.93% as against 4.12% as on 31st March 2021. Total provisions as on 30th June 2021 stood at INR 4,727.02 crore, reflecting a provisioning 4%. ECL provisions to the tune of INR 830 crores were done during the quarter towards the increase in the NPAs. Asset quality continues to be an area of high priority for us. There has been a sharp increase in the delinquencies, mostly due to the economic activities being impacted in Q1 with lockdown and restriction in many states because of second wave of COVID-19. However, with improvement in economic activities and our increased efforts on recovery, we are confident of controlling the same and believe that we should mark the peak. During the quarter under review, we have witnessed collections from accounts which were classified as NPA as on 31st March 2021 also. Though the amount may not be significant, it reflects some improvement in sentiments. Last week, a resolution has happened in account that was in NCLT, which resulted in recovery of more than INR 100 crores. OTR during the quarter stood at INR 2,350 crores. We have been very closely focusing on the collection efficiency, and it continues to be around 98% for the regular accounts during the three months of the quarter. On the funding side, we have witnessed a reduction in overall cost of funds by 5 basis points during Q1 FY 2022 and year-on-year by 99 basis points. Incremental cost of funds has come down significantly and stood at 5.03% for the Q1 FY 2022. Net interest margin for the quarter stood at 2.2%, as against 2.32% over the same period previous year. Incremental spreads dropped one of its highest levels and stood at 250 basis points during Q1 FY 2021. The funding environment and liquidity conditions remain quite favorable for the company. The company is offering home loans now at 6.66% interest rate for a specific limited period. It is the lowest ever interest rate in our company. Project RED, that is Reimagine Excellence through Digital Transformation, in association with the BCG group, it has also been progressing quite rapidly and some projects, CRM, video KYC, video PD, have already been rolled, which will take shape probably in this quarter and the next quarter to come. With this brief introduction, I would like to invite you for your queries. Thank you very much. Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and one on your telephone keypad and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing star and one again. Ladies and gentlemen, if you have a question, please press star and one on your telephone keypad. First question comes from Mahrukh Adajania from Elara Capital. Please go ahead. Yeah. Hi, sir. Sir, can you give the breakdown of NPLs into core retail, LAP and developer? Yeah. If you can even break down developer into LRD and others. I'll tell you. These IHL loans, individual housing loans. Under stage 3, now actually only stage 3 required for you, correct? Yes, sir. Stage 3 comes to around 2.6% of the. Which was 1.9 in fourth quarter? Which was around 1.9 in the fourth. Yeah, correct. You are correct. Okay. sir- Is the non-housing commercial. If you see, that is hovering around 18%, 18.91%. Other thing is non-housing individual, that is 10.99%. It's all in the retail segment, total retail segment. Overall comes to 4.57%. Right, sir. Sir, this non-individual of 10.99%, that is LAP, is it? Yeah, correct. The other. It is non-housing individual. Got it. Sir, could you explain the rise in employee expenses? Rise in employee expenses, actually everything normal only because once in four years there will be wage revision. With retrospective effect of 2017, it is given. Now we have paid the arrears to the tune of nearly INR 130 crores. That is arrears amounts were paid, that's why they have been booked in this quarter. Mahrukh, to that extent, that INR 124 crore-INR 130 crore, that is a one-off, which has appeared only in Q1 of this year. Got it. Which is towards the arrear payments of last four years, from August 2017. Got it. Just going ahead, could we continue to expect run rate in employee expenses of say INR 600 crore odd or? No. The INR 600 crores, actually you have to look at it from the point of view that after you remove that INR 125 odd crores, the number comes to around INR 1,992 crores. That generally will be a run rate. Year-on-year increase, you can take around 15%. Got it. Now the quarterly amounts is around INR 80 crores only. You are looking in last, but last year also INR 80 crores was there. No, it will include What happened now, it will go up by another 15%. That is the raise we are given. Forward looking, this much only the figure, 80 plus another 15%, that's all, within INR 100 crore. What happened now. Whereas for the quarter, this one-off amount is only the arrears which are paid for the past dues. That is the thing. It is our practice normally to give the wage revision once in four years. Retrospective effect. That's it. Got it, sir. Sir, in terms of capital, would you have any alternate plan of raising in case this doesn't go through? See, actually on this matter, we would not like to make any comment because as you know that we are working on the whatever instructions the stock exchanges have given, and we would not like to comment on this matter. Got it. Fair enough. Once anything comes, obviously it will be. Yeah. We have compiled everything in full. We are in touch with the stock exchanges, we are waiting for their, what you call, further instructions. Correct. Fair enough. Just one last question. The COVID provision is where? Of the total provision that you made in the quarter, which is INR 830 crore, of that, how much has gone towards restructuring, how much has gone towards COVID provision? See, as far as the restructuring- That is all within the ECL? Yes. Everything is in the ECL. Yes. Everything is in the ECL. For restructuring under the OTR, you have to create a reserve, not a provision. Correct. That can't be used for any other purpose. That reserve is basically an appropriation, and it is not a provision. Right. All part of ECL? Everything is there. Whatever provision has happened in the quarter has been reflected in the ECL provisioning in the P&L. Okay. Thanks a lot. Thank you, ma'am. Next question comes from Abhijit Tibrewal from Motilal Oswal. Please go ahead. Yeah. Thanks for taking my question. First thing, I think the restructure scheme that you have reported of about I think INR 53.5 billion during the quarter, I think is higher than what we had guided for during the last earnings call. The other thing is, if you could just comment on what has kind of led to the sharp asset quality deterioration during the quarter. Abhijit, first of all, let me tell you that this number that you're talking about is not only for the quarter. In the disclosure, it is very clearly mentioned that this is the cumulative. It's not during the quarter. Right. Okay. Out of this, about INR 47 billion is your builder loans. Yeah. Correct. That is correct. That is correct. Sir, if I look at our GNPA, which I think we suggested is 18%-9% some time back, if we overlay this INR 4,700 crore of restructuring in the builder loans, I think compared to an overall book size of about INR 11,000 crore-INR 12,000 crore, I think doesn't that seem a little too high? In other words, I would say, a good 45%-50% of the book is under stress now. No. Here, one thing I'd like to tell you, what happened, people have taken, I agree, this what you call this OTR and all, some of the clients with whom we are in touch, even they may even what you call preempt the option also. Even they are aware now, when the situation improves, certainly there will be a once again, they can anytime they can call the restructuring. They are all looking into that. Even the developer loan book is very, very small for us. Wherever OTR is taken, they are in a capable position, not that way they are totally into slipping into NPA like that and all. That way, I think there will be forward-looking. We are very sure that further downside in this thing is almost all ruled out. That's the thing. Okay. Sir, for your developer book, if you could read what was your stage 2 number, let's say, in absolute terms. developer book, if you see, at stage 2, as far as the project is concerned, INR 2,490. It is your stage 2 in the developer book? That's all. Right, sir. Just one last question that I had. Sir, you have had about a 5% Q2 increase in your interest expenses while your incremental cost of borrowings have actually come down. What has led to this increase? I mean, can that be explained by CPs coming off in your book and being replaced by some of the higher cost borrowings? No. Abhijit, actually, the cost of fund on a year-on-year has also come down. Sequentially also it has come down, both on the incremental as well as on the cumulative. If you see, there has been reduction in the interest expense year-on-year also by almost, I think, 5% and 7%. Giving the numbers to all. Interest expense in the June quarter was, of previous year was INR 3,764. As against that, it is INR 3,549. These are in the published numbers. Okay. Got it. Sir, I'm talking about the QQ increase. Quarter- on-quarter sometimes is not comparable because year-end sometimes there could be a drop because of some change in the liabilities. Year-on-year, there has been a reduction. On a full year basis also there's been a reduction. Fair point. What you're trying to suggest is there's no point looking at a quarter- on-quarter number. No. Sequentially. Correct. Okay. Thanks. That's all from my side. Yeah. Thank you. Thank you, sir. Next question comes from Aditya Jain from Citigroup. Please go ahead. Yeah. Thanks. Could you tell us the amount of ECLGS disbursement which was happened? Which one, Nishant? Can you please bit louder, please? ECLGS disbursement. ECLGS. Yes, outstanding. ECLGS portfolio actually now under 1.0 and 2.0. INR 200 million. Yes, I'll tell you also. What happened, now almost the ECLGS total retail disbursement, actually, sanction amount is INR 65 crores in this quarter, Q1. Disbursement took place around INR 8 crores. You want exactly the total figure of ECLGS disbursement during the quarter? Outstanding ECLGS or disbursement to date. Sanction is INR 65, disbursement is INR 140 crores total. During the quarter. Retail projects put together. Total disbursement INR 140. Yeah, INR 140 crores under ECLGS in Q1 FY22. Total amount has come to INR 140 crores. Disbursement. ECLGS. Yeah. That's right. Got it. Thank you. In the impairment reserve which is created for restructuring, you explained it passes through the P&L. The amount of reserve is what? At the end of the last quarter, I think you had talked about INR 285 crores or so, size of the impairment reserve. Where is it now? This time I tell you that first of all, that impairment reserve is not a provision, it is an appropriation. Please do not mix it up with the provision. It is a different thing altogether. It is an appropriation out of the P&L. That is the amount of reserve on which you cannot serve with dividends. Right. That impairment appropriation will be done in the second quarter, that is in the September quarter, where balance sheets are actually required to be published. It does not have any impact on the P&L. It is an appropriation. Once again, I'm clarifying, it is an appropriation. It is not a provision. Understood. As of now, the way I should look at it is INR 385 crores the amount outstanding in that impairment reserve, that will be changed in the September quarter in the balance sheet. Yes. Sure. Got it. Okay. Just lastly, given the increase in NPA, if you could qualitatively tell us which sort of customers as a geography or whichever way if you feel directed that which, where has the increase in NPA come from? Normally, actually, this quarter, what happened in April and May, there are not much of movements outside as you are knowing. Geographically, if you are speaking, especially in Tier 2, Tier 3 cities and all, now what happened there, our footprints were very high. Last year also, we got more than 50% of business from there. There, what happened is some delinquencies were there. May not be at the high-ticket size. In the individual housing loan, even the small-ticket sale here and there was some flip, but mostly they are in the default also now. What happened now, in the month of June, there is a good recovery in the second quarter of June. We are very confident going forward, I think in individual housing loan segment, there will be sustainable and very durable recovery henceforth. That's what I have to say. Got it. Thank you. Thank you. Thank you, sir. Next question comes from Niti Gupta from India Infoline. Please go ahead. Sir, what has caused the impairment for the financial instruments to rise dramatically compared on the quarter-on-quarter basis? Can you please repeat your question? You're not very much clearly audible. Sir, what has caused the impairment on financial instruments to rise from INR 56.45 here in quarter one last year to INR 813.41 in this year? That is ECL provisioning, no. There has been an increase in the NPA. What has been the movement from stage 2 to stage 3 in this quarter? Stage 2 to stage 3. Currently we stand at 5.93% overall. How much of threshold has been moved from stage 2 to stage 3? See, stage 2 to stage 3, if you now look at overall, there's been some improvement in stage 1 also. Okay. Stage 2 to stage 3, there has been a movement of about 1.5%-2%. Sorry, sir, how much? 1.5% -2%. Okay. Okay, sir. Thank you. There's been a marginal improvement in stage 1. Okay. Thank you. Thank you. Thank you, ma'am. Thank you, ma'am. Next question comes from Srinivas Rao from HDFC Mutual Fund. Please go ahead. Hello? Hello. This is Amit Ganatra. I just had a couple of questions. One was that, last quarter, the restructured book was INR 2,970 crores, and now it is INR 5,353 crores. Is it correct? Total is INR 5,350. This quarter is INR 2,350. Correct. Incrementally was INR 2,300 crores, correct? Yes. INR 2,350 crores. This INR 5,353 crores, if you were to see in what stage is it categorized right now, stage 2 or stage 3? No, they are- -restructured? Stage 1 and only. No. They are in force and all. They have to be eligible under what still restructuring. This book is largely. Stage 1, stage 2 put together. It is not in stage 3. Okay, between stage 1 and stage 3 where it could be sitting majorly? Majority will be in stage 1 only. That's what even last quarter also we had the same experience. What happened now, OTR 2.0 also is now started. Under OTR 1.0, which ended by end of June. Both put together stage 1 and stage 3, it came to INR 5,300. Is there more restructuring expected? Because the restructuring is still going on, right? Yeah, it is going under OTR 2.0 now. We don't know how many people may opt further and all, but still it is open up to the end of September. It is also web-enabled and all. It depends on the people who opt for that and all. Right now, OTR 2.0 optees are very little. Generally, it picks up towards the end of the, near about the closing date. Even amount size also will be less than INR 50 crores, no? That also. Right now OTR 2.0 is about INR 50 crores only. Not above INR 50. Okay. Is there any interest reversals that you had to take during the quarter? Your interest income is also down 1% QoQ. This is normal repricing of the book or this has an impact of higher NPAs also? No, it will be obviously interest income to some extent will also be impacted by the NPA increase, but it is also due to the fact of reduction in the yields on the portfolio. Is the interest reversal a very large number or something like that? Something that you can highlight. No, it is not. Actually, under Ind AS, you are allowed to accrue interest. Exactly. Interest reversals are not generally. Yeah, it is not there. Okay. Understood. Thanks a lot. Thank you. Thank you, sir. Next question comes from Amit Premchandani from UTI Mutual Fund. Please go ahead. Yes. Thank you, sir, for the opportunity. I had a question. This INR 5,000 crore restructuring, how much has been the provision created on that? Sorry, can you please repeat yourself? The INR 5,000 crore restructured amount, what is the provision created on that? Stage 1 and stage 2 only no. Actually, once again, I'm telling you, under the OTR regime, as per the RBI circular, now what we have to provide is a blanket 10% on the outstanding amount, right? Yes. That is something which is compliant. What happens to the difference between the ECL provisioning and the provisioning under this IRAC norm? This is under the IRAC norms and under the RBI prescription. It is not under the ECL computation. The balance gets moved into an appropriation out of the P&L, which is called the impairment reserve. Correct. To answer your question, fully it has been provided as per the RBI norm, that is 10%. INR 5,000 crore all require INR 500 crore provision. Is it safe to assume you have used the ECL 1 and 2 provisions and appropriated for the restructured assets rather than creating a fresh 10% provision to the P&L above the lines? See, actually, what happens here, the treatment is different. You have got the provisioning under the Ind AS is a pool provision on the entire assets of whether it's stage 1 or stage 2 or stage 3. Under the RBI prescription, you have to also create 10% provisioning on the amount of restructured assets. That INR 5,350 crore will equal INR 500 crore of provisioning requirement under the RBI IRAC norms. Okay. Right. That is a separate treatment. These are separate treatment. Ultimately, you have to report the numbers under ECL. This provisioning is also created and the balance is reflected as an appropriation of reserve. If you look at as of March, that reserve was around, say, INR 280 or something. That reflects the difference in the provisioning, which is taken out of reserve. 280 crore has been taken out of the reserve for this. As an appropriation. I wouldn't say it is taken out of reserve, but it is an appropriation of the P&L. This reserve is below the line after the. Correct. This is a reserve, not a provision. This is a reserve, not a provision. Okay, that is not shown to the P&L. It is below the P&L. Yeah. To the extent of the difference. Only to the extent of the difference between the RBI prescribed norms and this one. Otherwise, INR 4,700 crores is the provisioning which covers all the NPL accounts, including the ones which are under restructuring. Understood. Thanks, sir. The difference is INR 280 crore that you mentioned. Yeah. Thank you, sir. That's it from me. Thank you, sir. Next question comes from Shashank Verma from Axis Mutual Fund. Please go ahead. Mr. Shashank, please go ahead with your question. Hello. Thanks a lot for giving me an opportunity. Sir, just wanted to check on one prior question. This ECLGS, as on date, what is the outstanding number? INR 400 crores. INR 450 crores approximately. Okay. One more thing. The top 10 developer accounts will contribute how much for us as on date? Top 10? Developer accounts. Ha. Would be how much on an absolute basis or as a percentage of our entire developer book today? Sir, you are talking about top 10 developer accounts or top 10 NPA developers in the NPA segment? No, sir. I'm talking about the standard accounts, top 10 standard accounts. Yeah, top 10 standard, I mean, top 10 in the portfolio, let us look at it this way. Yeah. Top 10 will be around, say, INR 2,000 crores. Okay. That's it. Thank you. Thank you, sir. Next question comes from Piran Engineer from CLSA. Please go ahead. Yeah. Hi. I just have a couple of questions. Firstly, in the individual segment, in the second phase of restructuring, we've done only INR 40 crores or so. Why did we let them slip into NPL and not restructure them? No, it is not allowing them to slip. Their time is still there. They have to be eligible. There are certain eligibility criteria. They have to satisfy that and all. They have to come under that. Even ratings also may be required. Sir, you are asking me. In retail, rating is not required, but there are certain eligibility criteria. Correct. Those would just be ticket size based eligibility criteria, right? They have to be a performing account, no? No. As of March, they would have been performing, okay? We had the option to restructure, but we didn't, and then they've slipped in this quarter. Are you saying they've slipped in the month of April before the circular came out? Exactly. That is what I'm saying, that the basic eligibility criteria of the account being standard should have to be clarified and should have been achieved by the optees. That is number one. Number two is that not everybody is applying for OTR terms because many people are paying intermittently. It is not they are stuck in default completely. They are paying intermittently also. Retail segment, around 1,557 numbers are accounted for, not in default. Yeah. They are over here. Okay. Sir, now, if you can just give us the broad picture. We've got almost INR 9,000 crore of loans under NPL in the individual segment. What percentage of this NPL would be customers who are paying but just that they are more than 90 days overdue. They're paying, but they're paying with a lag. What percentage would be those who are not paying at all? If you can give some color on this, that would be really helpful because our collection efficiency always looks strong. Quarter after quarter, our NPLs are rising even in the retail segment, and investors are just not able to understand how those two can coexist. If you can give a sense of what percentage of your NPL book is paying, that would give a lot of clarity to investors. Yes. Would you happen to have that number offhand? No, I'll just share some exact numbers. I'll try to share whatever number is there. Number, the regular collection efficiency on a month-on-month basis, that is on the regular accounts, that is more than 95%. That is around 98%, and that has consistently been there. In terms of total number of customers who have actually made some payments One minute. No, I meant how many NPL customers are making payments. Yeah, NPL collection, people overdue. What happened prior to April and May, their movement was restricted, but even through our telephone and also follow-up and all, NPA customers of nearly, what do you call, 10%-15% across the board have converted and mentioned they are regularized. That is happening. In the month of June, especially in the second quarter of June, really this has helped us a lot. 15% we can take as it is a benchmark. It is happening now. Going forward, definitely it will be more than even 30%-35% is going to come up now. That's what we are looking at. No, sir, you're not getting my question. These are accounts that have regularized, which means they have been upgraded back to standard. I'm asking, there will be a lot of customers who are paying, but they are still 90 days overdue, and therefore they still remain as NPL and don't get regularized. I got your query. See, out of the customers who are NPLs on 31st of March, you want what have been the collections from those accounts, right? Yeah. That would be very helpful. Yes. Approximately about 30% of the customers have been making some kind of payment, number wise. Okay. Some kind of payment they have been making. Obviously this is not adequate enough to pull them. To upgrade to the standard. Got it. This gives good clarity. Sir, my next question is out of the restructured book in corporate, which is almost INR 4,500 odd crores, how much of that is LRD or is it all builder loans? Which one? Out of which one? OTR. The restructured book in corporate, how much of that is lease rental discounting, because there also we have 3%, 4%, if I recall correctly. On the LRD also there is a restructuring, which is there. LRD may be something around, what do you call- LRD restructure. Yeah. That is there. It is there. For example, on the non-retail segment, non-retail total restructuring amount in Q4, it has been around, say, INR 1,700 odd crores, and in Q1, around INR 2,000 crores. Some INR 700 crores-INR 800 crores restructuring requests have been received. Over two quarters? Yeah. Okay. Just at the risk of repetition, sir, if you could explain exactly now, last quarter our impairment reserve was INR 284 crores as of March 31st. This INR 284 crores had been passed through the P&L of FY 2021. See, again, I'm telling you, again, it is not a provision, it is an appropriation. It is an appropriation of the P&L account. Provision. It is an appropriation. Okay. My question is, what is that number as of June. Of June. Yeah. Yeah. As of June, what would it be? As of June, it would have been around INR 350 odd crores. Okay. It's an appropriation, not a provision. Please don't mix it up. It is an appropriation. It doesn't have an impact. Understood. The difference between the INR 500 crores that we are required to make and the INR 350 crores that we have made, the INR 150 crore difference is part of our ECL of INR 4,700 crores. Is that understanding correct? Yes, that is right. Understood. Fine. Thank you so much, sir. That's also mine. Thank you, sir. Next question comes from Subhankar in Morgan Stanley. Please go ahead. Yeah. Thanks for the opportunity. Sudipto, I just had a follow-up question on that. When you say appropriation, so you mean that from an accounting perspective, it's part of the shareholders' equity. Correct. Yeah. It's still a part of Tier 1. It's not like a separate loan loss reserve on the balance sheet. It cannot be used for servicing dividends. Yeah, it cannot be used for servicing dividends. Yes. Just a question, this quarter you have INR 800 crores of provisions, and your net change in the. This balance, INR 250 crores, should I assume it as a write-off? No, I'm not getting you. Somewhere there are some missing, I think. When you are talking, Say it once again, sir. This quarter, the provision through your P&L are about INR 800 crores. The net increase in your total ECL, which you have reported in your P&L, in your PPT, is about INR 550 crores. The difference between the two, that is of INR 250 crores. Ideally, your provisioning through the P&L should have added to your ECL, right? The difference between these two, INR 250 crores, should I construe it as a write-off? No, this is not a write-off. It is not a write-off. I mean, or is it sitting under some other head? Yeah. It is not a write-off. There is no write-off in this quarter. Okay. Under what head is that sitting then, that INR 250 crores? I'm not really able to understand the INR 250 crores. We can get that, then we'll be able to. Which figure you are talking about? One is about the provision we made, INR 830 crores. Okay. Yeah. Second figure of INR 250, what you are telling? Now INR 550, from where it has come? No, INR 550. I'm looking at the difference between the ECL, the total ECL that you have. Last quarter it was. There was some error. We'll reconnect later on. I think you are not able to connect the correct figures. Okay, fine. I'll get back to you separately. Thank you. Okay. Thank you, sir. Next question comes from Rikin Shah from Credit Suisse. Please go ahead. Yeah. My question is already answered. Thank you. Yes, Rikin Shah. My question is already answered. You can go to the next one. Thank you. Next question comes from Kunal Shah from ICICI Securities. Please go ahead. Some of the questions have been answered, just a couple of them. When you see in terms of the behavior of this restructuring pool, which is maybe in terms of the provisioning that is added to the impairment allowance. Suppose it's from the restructuring pool and it defaults, so when does it actually come into P&L? Maybe what is the nature of this restructuring and maybe is it like a one-year, two-year moratorium? Just to understand the stress in which we are coming into P&L, what could be the. No, again, Kunal, let me clarify. The provisioning is already done. It is only the difference between the IGAAP provisioning under the IRAC and the ECL provisioning, which is to be reflected to a reserve. Which is to be created as an impairment reserve. Default? I'll tell you, I'll explain to you. What happens is that right now the provisioning is made at the rate of 10% under the RBI circular. The moment it becomes an NPA, it will become 15%. That will happen after the end of the restructuring period. Somewhere it is a one-month moratorium, somewhere it is a one-year moratorium, somewhere it is a two-year moratorium. To answer your query, right now the provisioning is made at the rate of 10% as per the Reserve Bank guidelines. You know that generally, the required provisioning for an NPA account is 15%. The balance 5%. Yeah. The balance 5%. Here in terms of 10% made and 5%, just in terms of the nature of restructuring, is it one year, two year? Depends. Mostly what we have given is that we have not given principal and interest moratorium to customer. Very rarely it has been given. In most of the 90% cases, we have given only principal moratorium, so the customer continues to service the interest. Right. That is one thing that we have tried to ensure so that there is some regularity in terms of financial discipline. Coming to your points, what happens if at the end of the moratorium, the customer is not able to service the principal or in the interim also he fails? Even in the interim if he fails, then the moratorium covers it. Thereafter, after the completion of the moratorium period, if the customer is not able to pay, he will be deemed to be an NPA from that day. At that point in time, whatever is the provisioning requirement under the IRAC norms and also the ECL will be compared and whichever is required, whatever provisioning is required will be made. That is right. The OTR now, whatever government says that we are doing it 10%, that's also true. Yes. Yeah. Got it. Overall GNPA in the developer books, take through on the developer books is how much? Is it 90 or it's a higher number? The developer GNPA, as per the stage 3 account, we talk of stage 3, that is 24.4%. That is 24.4. 18.9 is the individual non-housing commercial. Yeah, correct. That is non-housing commercial. That's individual non-housing. developer 24.4, which is around about INR 3,700 crore + INR 3,300 crore of restructuring, and then you mentioned stage 2 as well. Stage 2 was how much, INR 2,400 crore? Our loan book size under the developer loan is very small, only INR 15,000 crores only, not very high. Yeah, that's true. Okay. Finally, in terms of the restructuring on the retail side, obviously that's quite low and there will be no pipeline, any expectations in terms of what can we get through, larger part of it is still in developer and we have window till September. Correct. What is the kind of request we could get and how much we could get restructured because in some of the things that we have seen, retail restructuring also could be quite high because EMI component for housing loan is generally higher and people tend to restructure there. Any expectations in terms of how much could be retail restructuring? I share with you whatever has been the restructuring quarter-wise under both OTR 1.0 and OTR 2.0 on the retail. That will give some indication of what is coming up or what can be expected. Say, for example, in the fourth quarter, that is March ending quarter, that time there was no OTR 2.0. That time it was OTR 1.0. Under that OTR 1.0 in Q4, we had restructured INR 1,200 crores approximately, INR 1,190 something. INR 1,200 crores you can roughly take. Whereas in the first quarter of this financial year, the number came down significantly. It came down to only INR 234 crores under OTR 1.0, and there were some around INR 45 crores or INR 40 crores under OTR 2.0. That number had come down to INR 300 crores in Q1 of this year. Yeah. Generally, what we have observed is that towards the end of the OTR window, the number of customers who come, that increases. Same thing happened in Q4 also. All through the initial months of OTR, there were hardly any applicants. Towards the close, the number of applicants increased significantly. I think 1% is something we can take as an outside. Yeah, that's the most because what happened so far already we have restructured more. Already restructuring has happened. At this point in time, to take a number also, it will not be a correct guesstimate also. One more thing is that people who already availed this actual OTR, they are also interested to come out of that. They want to pre-empt that option, so that we are seeing some green shoots there also. That is also an advantage for us. Sure. Okay. This is considering the fact that for the non-retail segment, there are also eligibility criteria regarding getting the RP4 rating from the. Rating. Rating agencies, that also in many cases, it is not obtained that. Sure. Lastly, in terms of growth, sequential decline has been relatively high and lot of the base Q4 is high. There is impact of seasonality plus the disruption. Otherwise, housing has done relatively well in general because there was a momentum. How should we look at the overall growth in the coming quarter? What we saw in H2 of FY 2021, should we expect that in terms of our competitiveness, we will be somewhat similar and we will get back onto the growth and this is just a temporary kind of moderation which is there? Yeah, sure. I'll tell you, actually, as far as the growth is concerned, this Q1 really was a good one compared to earlier. Already we have got more than 1%-3% growth and even myriad activities are in full swing from June onwards. Going forward, now this Q2, we are expecting almost the same turnaround of Q4 of last year. We're looking at that. With that, what happen now, there should be a good Actually, even the current June, which has recently gone, is one of the best of any quarter the past June month in terms of disbursement. The next quarter and also even the Q3 also, we expect excellent business. Especially for Q2, we are aiming at repeating whatever we did in last year Q4, so that what happen now, we can take a quantum jump with a great bounce back. Sure. Okay. Thank you, and all the best. Thank you. Thank you, sir. Next question comes from Nishant Shah from Macquarie. Please go ahead. Hi. This is Nishant. Question is in my individual capacity, not Macquarie. Just one question. Of all the home loans and the LAP loan NPLs that we have, I understand that the LTVs that we're standing at are very comfortable, right? Only question is, of, say, either the individual loans or the LAP loans, what% of those NPLs would pertain to projects which are still under construction? We would have valued the, say, flat at, say, INR 1 crore, that is assuming that the property gets completed. If the project is stuck, there is no collateral really to sell. What percentage of our NPL cases would be such where the collateral probably is not currently in existence, it is stuck because the project is stuck or something like that? Otherwise, would there really be a big worry in terms of write-offs or crystallized credit losses, at least in the individual kind of portfolio. That's my question. Yeah, Nishant, the loan-to-value on the entire project portfolio is around 38% or 39%. Sorry to interrupt, not on project, on individual. What does it mean? Yeah. Individual LTV, two, three different categories are there. I'm talking of, first of all, individual home loans. Correct. The LTV is around 44%. That is on the book, right? Correct. For the non-housing individual, which is basically the LAP, there the LTV is now 33%. In the non-housing commercial, the LTV is 34%. Correct. That is as far as the LTVs are concerned. Now, for non-housing individual and non-housing commercial, there is no execution risk because these are normally readily available or income-earning properties. The question what you have raised is relevant only to the individual home loan segment. Here in the individual home loan segment, please understand that our disbursements will also be vis-à-vis stage of construction. When we are talking of an LTV, it is an LTV on the book. It means that if the construction is 60%, then my disbursement to that customer will also not exceed 60%. Correct. That is the rule. The LTV will hold. Our exposure is more than the stage of construction. If the stage of construction has not proceeded, then my disbursement would have also not proceeded, and whatever construction has happened, the example that you have taken that the value is considered at the time of selling, it is not so. The value is considered at the time and to the stage to which construction has proceeded. We have to value at every stage. Now, as it is now, the total valuation on the book also is always will be more than what 105 also will be there. I think project here also. That is taken care of. It is not a problem. Understood. Just to get this right, in a case where you say given a home loan where the LTV is, say, 50%, right, and the stage of construction is done about, say, 60%-odd, the V, the value over there in this LTV ratio is not the final selling price. Absolutely wrong. The valuation that is done is only up to the stage of construction. Okay. That is the stage of construction because my disbursement will depend upon the stage of construction and the valuation done at that particular stage. Correct. Okay. Fair enough. Just again, to just understand this a little bit better, I book, say, a flat on the 10th floor and the building is now completed up to the fifth floor. In this case, how do you assign a value to the flat which is not in existence yet? In the case of a home loan. See, in any such apartment, which are high-rise apartment, even if your property has not come, you have a claim on the undivided share of land. Understood. Proportionate share of land. That is called undivided share of land. You as a customer, you can also state a claim key, although my flat is on the 15th floor and the construction is completed after fifth floor, you still have a retained value in your investment. In any case, that particular property will not have proceeded to that extent. Correct. Understood. In this case, when you disclose an LTV of 44%, in case of a home loan where the project has not been completed, the value considered is the proportionate stake of land or whatever. It's nowhere close to the ultimate selling price. The disbursement will also be done on that. What happens if you have purchased a property on a 20-story apartment and your flat is on the 19th floor? It doesn't mean that you, as a customer, start making payment only when you have reached 19th floor. You start making even at the end. Mm-hmm. Got it. Perfect. In that case, the eventual crystallized losses from the home loan portfolio should be near zero, right? Because an LTV of 44 is super comfortable. Should we just consider the provision as timing difference? Yeah. I will share some numbers which will give you some comfort. Write-off. That is ultimate loss. In the 52 years cumulative, in the home loan segment, we have done less than INR 300 crores. Perfect. The total amount of disbursement that we have done is more than INR 400,000 crore. That way, if you look at it, ultimate loan losses will be in single-digit basis points. Perfect. There is a time which is required for recovery. Okay. When we do the recovery, the interest accumulated is also recovered, right? It's not just the principal amount. Mostly it is recovered. Somewhere it is required to be waived also, but overall, principal is not waived. Yeah. Additional interest and all will be taken care. They have to be paid anyway. Some penal interest, et cetera. In certain cases, we have to take a practical call, looking at the IRR of the payout, not the exact amount. Our own norms are there. We follow as per NHB. We have to also look at the IRR. Understood. Perfect. Yeah. That's all I was trying to get to. Yeah. Thank you so much. Thank you. Thank you, sir. Next question comes from Avnish Chauhan from Reliance Nippon Life. Please go ahead. Good afternoon. Thank you so much for taking my question. I wanted to understand that we have filed the appeal with the SAT on the capital raise ratings. What is the status of that? Please note it very clearly, we have not filed any appeals with the SAT. I repeat, we have not filed any appeal with the SAT. We are only in touch with the exchanges. We have also not received any instructions from SEBI. Only stock exchanges have informed, and you can refer to the disclosures that we make on the stock exchange. I would feel that you should look at the disclosures that we have made to stock exchange. Stock exchange have asked us to withhold the result of the e-voting, and exactly that is what we have done. We are waiting for an instruction further. The instruction is awaited. We have not filed any appeals with the SAT. Yes. Very clear. Okay, sir. There are some media articles which we have. No. We cannot respond to the media, but very clearly I'm telling, we have not filed any appeal with the SAT. We are fully compliant with all the regulations, and all. We are in touch with the concerned exchanges who are corresponding with us. That much. Okay. What is the exact concern from exchanges side on that? No. See, exchanges have actually asked us for certain clarifications. In the disclosure it is there. Disclosure, I would request you kindly go through the disclosure. We have given very clear explanation, et cetera, has been placed with the stock exchange. Exchange side is available. You can look into that also. Huh. That tells you more details also. Yes. Okay, sir. Thank you so much. Thank you. Thank you, sir. Next question comes from Vivek Ramakrishnan from DSP Mutual Fund. Please go ahead. Sir, good afternoon. Thank you. My question is follows. It comes from the earlier point that you made that you had only INR 300 crores of write-offs in the home loan portfolio. Would you also have an equivalent amount of how much you've recovered? What is the amount of property that you have sold and recovered money, in the sense that, at what point do you take a decision to sell the property and recover the money? That always has its negative customer impact and so on. That's my only question, sir. Thank you. Normally, what we do when the people fail and all, there will be a lot of what you call, follow-up will be made for people once they regularize account and all. In case these almost have become default NPA, then again, pending for long time, and people also try for all OTS and all, it's not over, then what happens? Under SARFAESI they proceed, and after that we'll take physical possession, conduct auction, all these things are there. That all follow, that's all. That's the only normal procedure. Sir, would you have any idea of quantum of sales of properties that you have done to recover money? In say, INR 300 crores is write-off. You mean in the current year or so far than that? What do you want actually? You could give like a one, two year history also would be very good, sir. In the recent past because of COVID and all, SARFAESI and all were not in the actual expected levels. Earlier and all, we used to have that one, and then every year, out of our NPAs, which have gone into NPAs, you could have seen at least some, and suddenly will be the achievement level as far as the recoveries are concerned by selling the properties. See, apart from selling properties also, just issuance of SARFAESI notice also in many cases evokes some action from the borrower. Sure. I understand that. Thank you very much. Thank you, sir. Thank you. Next question comes from Ankit Agrawal from Yellowstone Equity. Please go ahead. Yeah. Hello, sir. Yeah. I just wanted clarity on the employee expenses arrears part. I understand it's about INR 125 crore and it's one time. Could you give some more qualitative color, like, what is it about? That's a salary amount. You're asking wage arrears and all? Yeah. See what happened in our company, we have got one policy, wage policy. We don't revise salary every year here. Once in four years only we give escalation salary. That was due from the year 2017 to 2021. It has been done now in the month of June. The arrears are being paid from 2017 onwards to 2021. That has come to INR 125 crore, somewhere, that you are seeing. Henceforth what happen, only the regular salary will be paid. Compared to earlier quarters, there may be an increase of 15% overall as far as the pay out is concerned for salaries every quarter, every month like that. Sir, why don't we book a provision for this? Because on our accrual basis, given that we'll do every four years, it's kind of given that there will be some expense on an accrual basis. Why do we take like a one time hit? Why this accounting policy? Correct. What happened earlier, there was no what you call, that what rate it will be approved or something and all. We had to go to board for approval and all. It is not quantifiable at that stage. Going forward, what we have decided is that next cycle, whenever it will be due, that is maybe in two years from now, from that time onwards, every quarter. Small amount might be, because if it comes every quarter, then the amount will just not even touch double-digit INR crores. Yes. Very small amount only. Very small amount. Every quarter it will be as per prudence. Some 10% or other you can take and provide for that, what all. Right, sir. Okay. Makes sense. Just, sorry to come again on the OTR question. You mentioned that it's mainly in stage 1 and stage 2. On the other hand, whatever deficiency is there between the reserve and the provision amount, you said it's sitting in stage 3 provisioning. Why is there a disconnect there? No, again, I'm telling you again, kindly note it is two different accounting practices. One is under Ind AS, and the other one is as per IFRS. Thanks. The RBI provisioning, et cetera, has to be created as per the IRAC, which is being done. Only the balance between Ind AS and IRAC has to be reflected through a creation, I mean, reserve. Please do not confuse the creation of a reserve with an OTR. They are completely different things. OTR also what happened, people, they should be eligible now, first of all, to what you call even OTR, then unless they are eligible. Please don't confuse the provisioning. Whatever is required is being done appropriately and correctly under the two different guidelines. That is the RBI guidelines of 10%, that also is being done. Okay. On the collection efficiency, it is 98% for the month of June or for the whole quarter? We have been tracking for each month. Here also you have to note that whatever collection happens for that particular month, we consider for the regular account only that much of collection. If you add the collections of previous months, then sometimes the number might even exceed 100. Only for the accounts which are- Due for the month. due for that particular month, the ratio is taken. Whatever is the NPA account, for them, there is a different calculation, which will, in any case, get reflected through the NPA numbers. Okay. This number has been consistent even in the March quarter also, you have seen it was around 97%, 98%. Yeah. Now because of. Now it is around 97%-98%. online collection, e-NACH payment, all these things helped us a lot. Yeah. Okay. Just one last question. You mentioned there was a recovery in one account. Is that related to builder loan? No, that is not a builder loan. That is a loan given to one, I think. Corporate. Corporate. Corporate, okay. It is a LAP, I think. LAP corporate. LAP. There were some accounts that were pending with NCLT, like four accounts or something regarding developer loans. What's the progress on that? Look, that also there is some progress. No. Now because of pandemic and all, now we can't say what. Only when resolution happens, we will share that. Like we have shared this news also. This has happened in July, so it is obviously not factored in the June numbers. It will come in the September numbers. It is a progress, so that's why we thought that it will be shared with shareholders. Understood. Okay. Thank you so much. Thank you. Thank you, sir. Next question comes from Abhishek Murarka from HSBC. Please go ahead. Yeah, hello. Hello. Yeah. Please. Yeah. Thank you. I just wanted to reconcile the NPA numbers, because there's some confusion, and I really appreciate it if you can help me with the numbers here. As you said, the retail mortgage book, which is the INR 1.8 lakh crore, 78%, that has a 3.6%- Abhishek, in the interest of time, I'll read out the numbers, you can note it down. Okay. You can just note it down. This is as per the Ind AS. This is the stage 3 that we are telling out to you. Yes. The total assets are also on Ind AS basis. Right? Sure. I'll just tell you the numbers. Will request you to kindly note down quickly. Right? Yeah. Individual home loans, the stage 3 is 2.6%. If you want numbers, the number is INR 4,727. Perfect. Crores. In non-housing commercial, the stage 3 is 18.9%, and in terms of amount is INR 2,707 crores. 2,707. 2-7-0-7. Got it. Okay. In non-housing individual, which is mostly the LAP, et cetera, there the stage 3 is 10.99%. You can take 11%, and the amount is INR 2,253 crores. 2,253. Okay. The project, the NPA number is 24.4%, and the amount is INR 3,889. 3,889. Okay. If I add up all this. 13,527. 13,527. Got it. The LRD portfolio is in the LAP book, right? 18. No. LRD and LAP is different. I mean, you have to concentrate on yourself only. No. The LRD- Whole- No. I've given you so many bifurcations. Okay. Part of the LRD sitting in the project, and part of the LRD sitting in the non-housing commercial. Okay. Okay? Okay. What is the bifurcation, can you give? Total put together the LRD book will be around INR 9,000 crores. How much is in non-housing commercial? That, those details I will share separately. Okay. This is fine. Yeah. Thank you. Yeah. Thank you, sir. Next question comes from Raghav Soni from Bramh Capital. Please go ahead. Next question comes from Mr. Raghav Soni from Bramh Capital. Please go ahead with your question, sir. Hello? Yeah. Yeah, sir. Can you please highlight the INR 10 crore provision coverage ratio? I think in news article it was written it is 32%. Can you just give an overview of that? How is it 32%? If you can tell that, we'll be in a better position to understand about the future. It is around 34%. PCR now stands at 34% as at the end of Q2. Q1. As of end of Q1, it is 34%. Okay? Okay. Thank you. Perfect. Thank you. Thank you, sir. Next question comes from Saurabh Kumar from J.P. Morgan. Please go ahead. Mr. Saurabh, please go ahead with your question. Mr. Saurabh Kumar from J.P. Morgan, you can go ahead with your question. There is no response, sir. Next question comes from Mr. Parameswaran S from Jefferies. Please go ahead. Hi, sir. Just reconciling some numbers. If you look at slide 20, you said that ECL provision in stage 1 and 2, total is about INR 113-114 crore. On the restructuring side, I guess on a 10% basis, you need INR 550 crore. Is the balance INR 420 or INR 430, is that the impairment reserve? No. As of INR 280 crore. Again, let me tell you. Again, I think you are getting confused. Please understand, which is done for the OTR that is under the RBI IRAC norms. What you are talking about is the provisioning under ECL. They are completely different things. ECL is under- Yes. Yes, the difference is routed through impairment. Yeah. 110 crore in stage 1 and stage 2, the total you hold. It is different. The requirement is INR 550. No, it is not. The requirement is not under Ind AS. The requirement is under RBI IRAC norms. What the numbers published are under Ind AS. It may or may not contain. They are completely different things. They are pooled. I wanted to understand if INR 280 crore has moved up in this quarter. INR 280 crore impairment reserve that you were holding as of last quarter, whether it has moved up. Has it moved up this quarter? Yes, it has. What is that number outstanding now? Around 350 odd. 360 is the relevant number. Correct. Okay. Thank you, sir. Yeah. Thank you, sir. Ladies and gentlemen, that would be the last question for the day. Now I hand the floor to the management for closing comments. I thank you everyone for a very good interaction with every one of us. Looking forward now, the next quarter, will be great bounce back. We are also very much confident that the disbursement especially will be in a higher scale across. Once again, I will again reassure all our stakeholders that we are fully committed to address all your concerns. I also thank you for your continued support. Looking forward for a very good and also more than expected growth in this quarter across all the regions with a very good rate of interest, what we are having. With involvement of all our team members, we are looking for repetition of what we did in the last year Q4, in this Q2 now. Thank you once again.