Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY 2022 earnings conference call of PNB Housing Finance Limited. As a reminder, all participants' lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation is complete. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Deepika Gupta Padhi. Thank you, and over to you, ma'am. Thank you, Margaret. Good evening, and welcome, everyone. We are here to discuss PNB Housing Finance Q2 and H1 financial year 2021-2022 results. You must have seen our business and financial numbers in the presentation and the press release shared with the Indian Stock Exchanges and also available on our website, that is www.pnbhousing.com. With me, we have our entire management team across verticals sitting over here, led by Mr. Hardayal Prasad, Managing Director and CEO. We will begin this call with the performance update by the Managing Director and CEO, followed by an interactive Q&A session. Please note, this call may contain forward-looking statements which exemplify our judgment and future expectations concerning the development of our business. These forward-looking statements involve risks and uncertainties that may cause actual developments and results to differ materially from our expectations. PNB Housing Finance undertakes no obligation to publicly revise any forward-looking statement to reflect future events or circumstances. A detailed disclaimer is on slide 36 of the investor presentation. With that, I will now hand over the call to Mr. Hardayal Prasad. Over to you, sir. Thank you, Deepika. Good evening, everyone, and welcome to our Q2 and H1 FY 2022 results. On behalf of the company, I extend a very warm welcome to all of you and wish you all a very happy, safe and healthy festive season. Before I share business and financial update, let me give you an update on the transformational project, Project IGNITE, that the company embarked upon in the last financial year. The phase one, which was the diagnostic phase of the project, was successfully completed, with various projects identified across the value chain of the organization. The phase two of the project, which was design and implementation, was kicked off well and is within timelines. The key structural initiatives identified by the diagnostic phase and the design and implementation are scale up the high yield affordable housing Unnati's business by focusing on Tier II and Tier III geographies. We are on track to open 13 Unnati locations in this quarter itself. Enhance our core capability of serving self-employed non-professionals across segments. Create different differentiators to remain competitive in salaried segment. This can be generated through enhanced customer experience with improved TAT and revamped digital customer journey. Improved collections and recovery by leveraging digitization and building advanced analytics. We have initiated multiple projects, and these projects are on track to be delivered within this fiscal year. Optimize productivity and right-size infrastructure to derive higher profitability. A core team comprising of senior leaders is in place in the company to implement the identified initiatives. Let me now share business and financial update. With opening up of restrictions post second wave of COVID, the company registered a healthy 68% growth in disbursements in Q2 FY 2022 as compared to the previous quarter. The company disbursed INR 2,961 crore during the quarter, with 96% of the disbursement in retail segment, in line with our agenda. With retail-focused approach, we were able to control the de-growth in retail loan portfolio, assets during the quarter. Our affordable segment, which is the Unnati, is currently at INR 3,043 crore of AUM. With focus on the affordable segment, the company has identified 13 locations in Tier II and Tier III geographies to be operationalized. Six of these 13 locations are operationalized last month itself. With the opening of field movement and legal machinery, we witnessed improvement in resolutions. The collection efficiency for Q2 FY 2022 stood at 98.3% as compared to 95.4% in Q1 FY 2022. As a result, the retail group gross NPA reduced by a healthy 14% on absolute basis in September 2021 compared to June 2021. The gross NPA of the company stood at 5.92% as on September 30th, 2021 on loan asset basis. The net NPA, as on September 30th, 2021, stood at 3.32%. The company, as a prudent measure, has made adequate provisions, and our total provisions to total asset is at healthy 4.8%. In terms of the percentage, the retail GNPA stood at 3.3% as on September 30th, 2021, compared to 3.8% as on June 30th, 2021. The corporate book GNPA stood at 19.1% as on September 30th, 2021, as compared to 15.9% as on June 30th, 2021 on a depleting book, which further reduced by 9% since June 2021. The increase in corporate GNPA is from the already identified SICR accounts. The remedial management group continues to work towards accelerated resolution of corporate accounts. The company has seen some positive tractions in two accounts worth INR 359 crore during the quarter. In one account, the resolution plan is finalized by the committee of creditors and is awaiting NCLT approval. The account is resolved. However, it will continue to be in our book, NPA book for some time. For both these accounts on lines of prudence, we have retained the existing provisions. On an overall basis, the company carries 18.3% provision on the loan assets in the corporate book, with coverage ratio of 58% in Stage 3 accounts. During the half year, the company has sold and received accelerated payments of INR 1,214 crore. The corporate book has de-grown by 44% in absolute terms in September 2021 from March 2019. Talking about the liabilities, the incremental cost of borrowing stood at 5.74% for the quarter. The average cost of borrowing declined by 68 basis points to 7.41% as on September 30th, 2021 compared to the same time last year. The company has maintained liquidity of INR 5,772 crore as on September 30th, 2021. On the capital raise, as informed time to time, the Board of the company on October 14th, 2021 decided not to proceed with the preferential allotment of INR 4,000 crore. The decision was taken considering various factors, which are not to divert the attention and resources of the company into protracted legal proceedings, no visibility or certainty as to the timeline for judicial determination of the legal issues and to move ahead to achieve the primary objective of the company to raise capital. The company has filed an application to withdraw its appeal with SAT. Further, the Supreme Court on October 20th, 2021 dismissed the appeal filed by SEBI, stating that the appeal has become infructuous due to subsequent developments. The company is working with SEBI to close the issue. The company is presently comfortably capitalized with CRAR at 20.66% and Tier I at 17.82%. The leverage has come down to less than six at 5.89 x as on September 30th, 2021, with reduced share of corporate book at 17% of loan assets in September 2021 from 22% of loan assets in March 2020. The promoters and key shareholders of the company have always been supportive of the company. Having said so, the company will work with the Board to enable capital to augment growth through other modes. With this, I would like to open the floor for questions and answers. We have the whole management team sitting over here, and thank you very much. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Anyone who would like to ask a question, please press star and one at this time. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Aditya Doshi from Chanakya Capital. Please go ahead. Aditya Doshi, your line has been unmuted. Please go ahead with your question. Due to no response, we'll move to the next question. The next question is from the line of Gautami Desai from Chanakya Capital. Please go ahead. Hello, can you hear me? Yes, we can hear you, but I would request you to speak on the handset mode, please. Yeah. Sir, we've been hearing of late that some middle management and above people have been leaving from the PNB Housing Finance, more so in the last six months. Any particular reason for that? Ma'am, churning of an organization is always good. However, as far as the management is concerned, we definitely are seeing some more attrition in the company. However, the top management continues to remain. There will always be a few people who will move out of the organization looking for better opportunities or for other considerations, family consideration, personal reasons. However, we do not see that it is such a big issue in terms of the attrition. We are continuously monitoring the situation wherever required. We are also going ahead and doing the recruitments. With the business coming down to some extent, we still feel that on the productivity side and on other considerations, the company is well human capitalized and will continue to attract very good talent. Okay. Sir, the way wholesale has been running down, we believe that, you know, you know, they have not been as many mishaps as, you know, the market had expected earlier. At some point of time, you know, would PNB Housing Finance think of restarting the wholesale funding? At this moment, we remain extremely committed to two or three. One is the very clear agendas that we have set for ourselves in January. The second is that the retail focus is very, very strong with almost 96% of the disbursements under the retail. The third is that we believe that we need to deplete the corporate book at this stage. At some point of time, we will think about it, but right now it is a little early to say that whether the company will go ahead and look for that opportunity. Right now, we believe that it is time that we need to conserve capital, and the capital that is freed by the rundown in the corporate allows us to grow in the retail segment. I think that is very critical for the company at this stage. Actually what we fear is that your affordable as a percentage of the whole company is so small. Even if you have a stellar growth on that side, you know, the overall growth of the company might be extremely limited. Now that, you know, the differential between your borrowing costs and the larger banks' borrowing costs growing and, plus, you know, the other banks going so aggressive on home loans, banks and NBFCs would our business model kind of, you know, allow us to have that kind of growth for the entire company? Actually, if you look at the numbers, the numbers will be out, and the presentation also will be there. There's a silver lining over there in terms of what we have done in the retail segment. With this quarter, if you look at it's almost a flat growth that has come in. After about eight or nine quarters of negative growth, the company has only de-grown by INR 152 crore or INR 157 crore. I think that's a strong statement because our disbursement grew significantly. We'll continue to focus on the retail segment. We'll continue to improve. More importantly, if you look at the past of the company, the company has a very, very strong distribution network. The company has specialized itself in retail, especially self-employed, salaried, as well as it is building strength on the Unnati platform. I don't see any reason with the kind of interest rates that we have, we are now quoting with the last reduction being done during October itself, that there will be challenge. Yeah, there will always be challenges with the bank, but I think we are reaching a sweet spot where we should be able to to have a complete flat growth and then going forward, we will continue to grow on our asset side. I think with the retail, with the mortgage industry showing very good sign, there is room for everyone to grow. We have the right talent, we have the right people working over there, we have the right distribution and the strength to grow. It's just a matter of time that we will be back in the business and very strongly we will come and grow. Please remember that the company is very, very mindful of the fact that we would like to have a very calibrated growth so that the profitability is protected. There are two things that we will take care of it. One of them is on the top line. We were continuously monitoring the top line, and we will continuously do it. The second is the bottom line. These two will remain the cornerstone of our growth and story that PNB HFL will write now. Is a 15%-20% kind of a growth, you know, there in the near-term visibility? Ma'am, we are not coming out with any kind of guidance because you have seen in the last about eight or nine quarters we have had a negative growth. The first milestone is to ensure that we have flat numbers and then the growth story will start. Maybe next time when we meet in the next quarter or maybe in the March quarter, it is at that time that we should be in a position to give you a much better guidance on where exactly we are going to move forward. Okay. Thank you so much, sir. Thank you very much. Thank you. Anyone who would like to ask a question, you may press star and one. The next question is from the line of Krishnendu Saha from Quantum Mutual Fund. Please go ahead. Yeah, hi. Thanks for taking my question. The very simple question I just wanted to ask is could you talk about a little bit of the spreads and your NIM, how we look at with a compression in the spreads from 2.8% to 2.32% for the quarter? How do you look at that going ahead? Because we are carrying a retail-heavy portfolio. If I remember, Unnati was supposed to be a high-yielding product. Just some thoughts on the NIM, how we look at it in the next one or two years, one year maybe. Thank you. You know, Unnati is something that we are building up. It's not that Unnati is becoming a big share of the entire portfolio. As you would have heard earlier as well, under Project IGNITE, we are looking into all aspects of this particular business on a 360 basis points to build the right infrastructure and the support to go ahead and build this entire business. Today, the business is largely what it is from a retail side and the corporate business. As you have shared as well, our spread, not considering securitization, is around 2.8%, and 2.8% is something that we have consistently maintained in quarter one, quarter two, and also for the half year as well. If you look into quarter four of last year as well, the spread has been on similar lines for the company. For us, as we build the retail franchise, the yield might come down, but we also get that benefit of lower borrowing costs as we have a larger share of retail because it opens new avenues to raise funds, whether it's from the regulator, whether it's from the banks in terms of PSL borrowings or through the route of ECBs. We know that for us, it's the overall spread and margin which is something which is very critical for us to maintain, and we have demonstrated that we have been able to maintain that healthy spread, which is upwards of around 2.5%+, even with the lower and downward movement of the corporate book. Sure. Will we still be actively pursuing securitization in the near future also? No, we don't intend to progress any securitization in the near future. As what MD mentioned, the objective of this company is to build the asset on our own balance sheet. In his speech, you would have heard that we are adequately well-placed with regard to our capitalization. We are at a 21% of capital adequacy with 5.9x gearing with a lower share of corporate book. In spite of capital not coming in as a primary way, we are anyway releasing capital with lower share of corporate books. In a different manner, the capital is anyway getting accumulated and buffered into the organization to enable and progress the retail growth, which is what we are eyeing for. We are not looking for any securitization or any sell-down. If we get good opportunity to buy assets, we would like to go and look to buy assets as well. Sure. Thank you. Thank you. Any friends who would like to ask a question, you may press star and one. The next question is from the line of Sanket Chheda from IIFL Securities. Please go ahead. Thanks for taking my question. My question is more towards competition right now, which is banks are, you know, going pretty aggressive on the home loan front. Just wanted some data around what is the level of balance transfer you are witnessing right now and how would that trend be over the last, say around 12-18 months? Absolutely right. I mean, the rates of interest in the market is very, very competitive, as on date. If you talk about the balance transfer BT out, which is happening, is currently 18% of the BT out is happening from our portfolio, which is pure BT. But we are, you know, we are in the process of retaining the customers in a very strong way. With the current, as you know, as just mentioned by Kapish also, we have reduced our rates in last quarter only, last month only, and we will be able to hold on to our customers and reduce this BT out portfolio going forward. Sure. How much of the decline in AUM would you attribute to the BT out right now? No, no. As I told you, it is 18%. I mean, in terms of value, I don't have the figures right now, but I can give you the figures in terms of value, what's in the figures. You are asking for figures, right? Yeah. Yeah. I don't have the exact figure of BT out in terms of amount, so I'll Okay. We will share with you off the call. Sure. Okay. Thank you. The next question is from the line of Subramanian Iyer from Morgan Stanley. Please go ahead. Yeah. Hi. Thanks for the opportunity. Just some data keeping questions. If you can help us with the breakdown of Stage 2 as well as restructured loans into retail and corporate. Also what proportion of the restructured has been classified as Stage 1. I have one more question. In the retail book, total restructuring book is INR 2,071 crore. In the corporate, restructuring book is INR 336 crore. Majority of the book is Stage 1. It is around INR 758 crore in Stage 2 of the retail portfolio. Thank you. If you can also break up the Stage 2 into retail and corporate. See, these numbers actually we are, you know, giving in annual reviews only. But our Stage 2 has reduced in this quarter for corporate book as well as for retail book. Got it. Improvement in the Stage 2 for a corporate book as well as retail book for this quarter. Understood. Just wanted to understand this impact of securitizations and compression, which has impacted the NII. How should we think about this going forward, I mean in terms of impact on NII? If you can please articulate that. See, like, it's been our constant endeavor to keep working on reducing our cost of borrowing. As you would have heard in MD's address as well, there have been a 68 basis point decline between H1 of last year to H1 of this year. Incremental cost of borrowing is touching around 5.74%. So which means that we are working on continuously re-supporting the two aspects of our business. One is the new acquisition rates, which we can potentially get at a lower rate, and also the element on repricing of my old book. We as recent as last month only have reduced our rates to enable repricing at lower rates and retain good customers. These efforts will help us in getting further traction in retaining good customers in the portfolio and then enable us to help and retain our good quality assets so that our securitization assets behave the way they have been envisaged, and I don't have negative impact coming into our P&L for that book. The securitization book has now come down to around INR 10,500 crore. It's. We did in history. We've done in aggregate of around INR 22,000 crore of securitization. That book is in less than 1/2 today. As the book shrinks further, the impact of that on the P&L will only go lesser, and therefore we'll be able to get our spread and NIM more from the BAU business that we are building for ourselves. Got it. Should we expect that, I mean, is there a possibility of such further one-off impacts as well? See, the one-off impact can only be to the extent that if I have adverse experience on my runoffs for that portfolio, then of course there will be a reversal on the income that has been potentially factored earlier. With these efforts, we do see some traction which should help us in arresting these runoffs in that particular portfolio in particular. Understood. Thank you. More particularly, as you see, the markets are moving towards a little hardening side, these hardenings would also help us getting ourselves more competitive compared to others, and the gap also narrows down for us to be more, attractive when I'm offering in the market. Understood. Thank you. Just to summarize then that, basically this one-off impact is largely because of, say, runoff in the portfolio as well, to a certain extent. Yeah. The one-off impact is largely because of the adverse behavior of the securitized portfolio, which is causing this reduction in the income there. Hi. One additional piece of information on the restructuring. In the retail of INR 2,071 crore, which I talked about, around INR 700+ is SICR in stage 2. Of that, INR 500+ odd crore is because of the SICR. Understood. Thank you. Thanks for the data, and wish you all the best. Thank you. The next question is from the line of Abhijit Tibrewal from Motilal Oswal. Please go ahead. Yes, sir. Thanks for taking my question. Sir, I mean, is it possible to talk about, I mean, some of those corporate accounts that have slipped for you during the quarter? I'm not sure if you already covered it during your opening remarks, which accounts were those and, I mean, which state. If you could just give some qualitative color on the accounts which have slipped, make up also here. What we can just tell you is that it's just a single account which has moved. It's a INR 159 crore account which has moved into NPA only, and that was already part of the SICR, which we had declared in March earlier. Nothing new which has come out. It is just one account which is forward flowed. Sure. All right. Sir, the other question, the second question that I had was on the disbursements. I'm not sure, and please correct me if I'm wrong, but I recall that in the past you've guided for about 15% growth in disbursements in FY 2022. I understand we are in consolidation mode and our AUM has been declining. Given that we did about INR 10,500 crore in FY 2021, we have done about, I think, INR 4,700 crore in the first half of the year. Do you think we can reasonably do anything between INR 11,000 crore-INR 12,000 crore in this financial year? Yeah. Absolutely right. We have been talking about that we'll be talking a growth of 40%-50%, and we still stand by it. I mean, there is no doubt on that because the market has improved. If you see overall sentiments in the market have improved and people are going out and buying properties and all those things. A lot of transactions are happening in the market. That's the overall economy factor that is playing one. Internally also, we have done a lot of you know changes in terms of sourcing business. I mean, if I can talk about all those things, maybe we have reduced the rates, as I said earlier also, and that gives us a lot of you know impetus in the market to go out and source good quality business. Second, yes, we have opened a little bit of market for our builder segment, which is on retail side. On third, we are coming out with a lot of you know some kind of changes in towards sourcing pattern for our customers. That's all the things that are happening. Obviously we have got a vast distribution, which is always our strength. It's just about time we start you know taking advantage of that, and we are go all out in the market. Yes, we As you know, we have always been very aggressive on giving us those stats and all those things in the market, and we'll maintain that. These numbers will not be a problem going forward. Sure. Sir, and I might sound a little bit critical, but just trying to understand this better, that, I mean, most of the other housing finance companies, I mean, the two largest, I mean, housing financiers in our country, and if I kind of even look at some of the smaller affordable housing financiers, everyone talked about very, very strong demand momentum in housing finance during Q2 and something which continued in October as well. I think we have had a fairly stable leadership team, at least, over the last, let's say two to three quarters. What is it that is still kind of holding us back? I'm seeing we've seen improvement on the cost of borrowings. We are targeting a slightly different customer segment than what we did in the past. What is it that is kind of holding us back, at least in disbursement? I understand the book could continue to run off. There could be higher BT outs because there is a lot of aggression from banks and larger HFCs. What is it that is holding us back on disbursements? Maybe another question for Mr. Prasad. Sir, I understand this might be a little bit of a sensitive issue, but the fact that we have kind of decided that we will not go ahead with the announced capital raise, and that we will be kind of looking at other alternatives for this capital raise. Today in the Board Meeting, we kind of sit with the Board and present what are the other alternative options which are available? If you can just show some color from your perspective in terms of what are the options which are available and which could be presented to the Board. Yeah. I'll take the first one, and second one, obviously, MD sir will take. On the disbursement side, I think, if you have seen the presentation, we have again come up with a resounding number for disbursement. We are 50% over last H1 year of FY 2021. In terms of logins and sanctions and all those things, we are way ahead of our numbers as far as business plan is concerned. Overall, if you see on the disbursement growth, we are far ahead in terms of logins. We are far ahead. In terms of sanctions also, we are way ahead of our even business plan numbers. In terms of, as I said, you know, I've earlier also explained, it's just about time now. We are ramping up things now. As I said, there was a little bit of difference in the rate of interest as between us and the competition earlier. Now, even that is also covered to a larger extent. Though I would say, yes, we are not there, but yes, we are covered in a larger extent. We're in the fighting spirit, and we'll do better than what is expected, as mentioned earlier. The 40%-50% growth, we will be maintaining, and that's how we will move forward. No, I think it's very important to understand that the company has been undergoing a transition. It has almost reached a level where this quarter, I mentioned to you there was a flat growth. We have had a very good disbursement if you take into account year-over-year or sequentially also. We will continue to work towards that, to grow and to ensure that we have a calibrated growth. Very important for us in our state where we had a capital constraint. We can have only a calibrated growth, and that is what the company is very steadfastly doing. Having said that, on the disbursement and the retail side, the company presently is comfortably capitalized with CRAR at 20.66%. Tier I is at 17.82%. The leverage actually because of all that has happened and all that the company has done has come down to less than 6% at 5.89 x. As on September 30th, the reduced share of corporate book, I mean, this is very critical, which frees away significant amount of capital to be lent towards the retail. That is one thing that the company was always looking at. It was stuck with corporate book, utilizing very high capital. Now with the freeing of the capital, we have great opportunity to grow on the retail side. Having said so, the Board actually recognizes the need for capital in the medium- to long-term basis. Secondly, the promoter as well Carlyle and other stakeholders have been extremely supportive. I mean, the very fact that we came out with that such a large issue is a demonstration of the fact that people and the stakeholders have strong faith in the company. The need of the capital remains over there. We will look at it, and we will take it to the Board as and when it is actually required. Presently, I can only say to you that we are pretty well capitalized. The promoters and other stakeholders remain committed towards the company's growth cycle. At the appropriate time, the company will take it forward for or any kind of modes for to raising the capital. Sure, sir. Fair to say that in the near term, we will not be pursuing the equity capital raise, and it will be business as usual. I am- At least in the near term. No, I'm not saying that. I'm just saying that at the right time we will go back, and we will talk to the Board to see what best options we can have. Presently, keeping in view the depleting corporate book, the availability of capital to grow the retail segment, the CRAR at 20.66%, Tier I at 17.82%, I think the company can look forward for growth at these numbers also. This is what we will continue to look at it, but I'm also telling you that the moment we feel the need to raise capital, we will approach the stakeholders who have been supportive towards the company in terms of the capital raise. Sure, sir. I think this is very, very useful. Best wishes and season's greetings to you and the rest of the team. All the very best, sir. Thank you. Thank you very much. Thank you. The next question is from the line of Anuj Singla from Bank of America. Please go ahead. Good evening, sir. One question regarding the restructuring book. I couldn't get the number. The retail book on the restructure side is INR 2,071 crore. Out of it, INR 758 crore is in Stage 2. Is my understanding correct? Yes, INR 750 crore+ part is in Stage 2, which includes SICR proportion of INR 550 odd crore also. Okay. The rest of the book is all in Stage 1. Yes. Majority is in Stage 1. Okay. What kind of provisioning have you provided there for the restructured book? At overall level for a restructuring portfolio in the retail book, we have around provisions in the range of 12%-13%. Corporate side? The corporate size is INR 336 crore. The provision would be around 15%-16%, sub- 20% kind of a number on an average. Okay. Understood. Lastly, on the one off from the securitization book, can you quantify that? Number one. The second one, when you talked about adverse behavior, is it that because of the run off of the book or you had some maybe on the performance side, the staging and the write-offs were higher than what you were earlier expecting? Is your question how is the securitized portfolio performing? Yeah, yeah. When you said there is a one-off, adverse one-off, related to the performance of the portfolio, what does? Uh- That, what is the parameters where, because of which you have to take the one-off adverse impact, and can you quantify that? No. You know, the securitized portfolio gets an adverse impact because of two elements. One is that when I'm securitizing the portfolio, at that point in time, we have a history of its performance with regard to its life. If there is, because of BT pressures, if they are running off sooner, then there are potential future earnings which I will not get in my book, and therefore, I have to undo the entire working here. Because of this, the P&L gets impacted. That is the adverse impact which I was talking about. This portfolio is a very high quality and I would say gold standard kind of a portfolio, and therefore the asset quality here is very good. There's absolutely no doubt about the asset quality part of this book, and that's precisely why this is on target as well with regard to acquisition by others. That's the only element that I was talking about with regard to the adverse impact. Whatever we envisaged with regard to run off experience, it's actually more than what we had factored in our working when we did this sell-down of portfolio. Okay, understood. Possible to quantify that for this quarter? How much was the impact? The impact for this particular quarter with regard to the income reversal or unwinding is around INR 61 crore. Okay. Understood. That's very useful. Thank you. Thank you very much. Last quarter this amount was INR 18 crore. Okay. Good. Thank you. Just to tell you know, in the last fiscal, in FY 2021, same quarter with the reduction in MCLRs of the bank, we could earn more from these assets because our yield was not going down, and that resulted in a positive experience of around INR 105 crore. The anomaly between quarter two of this year to quarter two of last year is a differential of around INR 166 crore because it was INR +105 crore compared to a INR -61 crore. Understood. Well explained. Thank you. Thank you very much for that. Thank you. The next question is from the line of Kunal Shah from ICICI Securities. Please go ahead. Yes. Thanks for taking my question. Firstly, in terms of Unnati book, when we look at the scale-up, in fact, that seems to be like tapering down. Maybe it went up from INR 1,700 crore to INR 2,600 crore, INR 2,600 crore to INR 3,000 crore. We saw almost like INR 400 crore of accretion last year during COVID. In the first half, no doubt, our first quarter would have got impacted, but still that's hardly INR 60 crore-INR 80 crore. I'm not able to get as to what is actually hampering the growth in that segment when it is such a focus area. When do we see the scale-up happening on the Unnati book? On Unnati book, if you talk about, you know, in same time last year, we were at AUM of INR 2,787 crore. Currently we are at INR 3,043 crore of AUM, which is 9% increase, you know, on AUM side. Yes, we are opening up, you know, as I mentioned earlier also, we are opening up location branches which will be Unnati specific location and branches. From there we will be definitely getting. We are in a process. That's why this transformation team, IGNITE team is working on, where we will be getting on to this piece and we'll be taking up very strongly in future. Currently, the infrastructure and everything remains the same. We are working on the same structure. Going forward, we are building onto it and we'll make a real big portfolio out of this Unnati business. Kunal, just one thing I want to tell you. Kunal, just one thing. Yeah. In January we decided that we'll actually bring focus on the retail book with special emphasis on the Unnati portfolio, which is the affordable piece. Now, having said that, we have started working on it. You would appreciate that it is a completely different business that we as against the kind of business that the company was doing. Company was between mid and premium segment, which it was doing on the salaried and on the self-employed, and it has decided that it is now going to focus on the Unnati or affordable piece. First thing that was done was to create a vertical within the Chief Sales Officer. The vertical was created to actually start monitoring those. We first of all started concentrating on building the portfolio and sourcing the business from our existing branches. Now with this time when we along with the results we have told that we are going to open 13 branches, out of which six branches were opened last month. Now, it is not just opening of the infrastructure, it is actually that you have to create the separate kind of a sales force, the underwriting team and the collection team also. It is definitely going to take little bit time, but we might be able to reach the inflection point in the next three months and it is at that time that you will see the buildup of assets that are taking place. The second question is with respect to the corporate. Compared to March 31st wherein we used to disclose the breakup between retail and corporate, Stage 3 used to be 12.5%, now it is almost 20%. When we look at the breakup, now what we or maybe the disclosure wherein we say that 65% is, say, 0+. Should we broadly assume that maybe there would have been forward flows from Stage 2 and even from Stage 1 to Stage 2 and Stage 2 would have been broadly flat or overall Stage 2 plus Stage 3, there would have been an improvement compared to March? How should we look at it? Because I think that number is still, I think it's going up, in terms of, maybe non-zero DPD. So I think Stage 2 is also getting stickier, plus the flows are there into Stage 3. No, there is definite improvement there. You look at, we've given out two numbers. One is 75% of the book as on September 30th is Stage 1. And out of that 19% is Stage 3. Stage 2 has actually improved and moved into Stage 1. There has been an improvement there. Okay. Maybe it's overall 75%, so broadly 25% between Stage 2 and Stage 3 of which 20% is in Stage 3. Stage 2 ideally should have been down compared to what we have disclosed in March. Hi, Kunal. Let me just rearrange the numbers a little bit for you. Look, the portfolio attrition is a deliberate activity which we have been doing. It's a conscious corporate call for a capital release Kapish also talked about. In the percentage terms, the Stage 3 has increased, and in the absolute term, whatever has gone into a Stage 3 is an identified SICR account. First of all, there is no unexpected risk which has arisen in the book yet. That's the first thing. Second thing, on the Stage 2, whatever SICR we have declared, okay? Those have gone into high risk. There is one account which is in Stage 2 worth INR 100 crore, which is still bucket zero. We are doing well with that. That's a part of a Stage 2. Okay? We don't see any unexpected risk in the near future also. Okay? Company will relook into this in March and probably we may revert it back. If I compare those numbers with that of the last quarter when the COVID impact has shattered our quarter one, since then, there is a backward movement also in the corporate book. Going forward, as MD also talked about, there are two cases have got resolution. In one case, we have already ticked many boxes and we will see, you know, some backward movement for Stage 3 also. Sure. I hope I'm clear. Yeah. The only thing was maybe Stage 2 is still down. I was just getting to that number that, maybe compared to 13%-odd even though we don't disclose, but that is like almost 5%-odd. We will disclose those numbers as a policy. It has been coming in the annual event only. We are assuring that the company is working on the resolution, the traction is good, positive, and results will be out on a positive manner very soon. Sure. Okay. Thanks. Yeah. Thanks. Happy Diwali to the entire team. Thank you. Before we take the next question, we would like to remind our participants you may press star and one to ask a question. The next question is from the line of Krishnendu Saha from Quantum Mutual Fund. Please go ahead. Yeah. You can hear my question again. Just a little understanding on the capital raise then. As you said that, we'll be growing a book in a calibrated manner and the book will be not growing fast. It is actually stopping its growth in a way, and the profitability increasing. Do we see capital being Hello? Really sorry to interrupt you, Mr. Saha. Your voice is not very clear, sir. I would request you to speak on the handset mode, please. Your voice is breaking up. It's unclear. Hello? Hello, can you hear me? Hello? Little bit better, sir. Please go ahead. Yeah. Just on the capital raise front, as you spoke about that you will not want to go to book fast and the profitability increasing ROE, the ROE is increasing. Do we see some of the money coming back from the assets which we have set to resolve? Do we see capital being raised even after a year or later? The possibility will be there and the books will not be growing. Are we enough capitalized for the next two years at least or 1.5 years, say, by 2023 end? Hello? Hear us? Can you hear me, Mr. Saha? Yes. Yes, I can hear you now. Yeah, I think I've already mentioned to you on the capital raise that right now we are in a position where the CRAR as well as Tier I is in good shape. Our gearing has come down because of the depleting corporate book. We have significant amount of capital available for our retail book to grow. However, because of the various factors that go into any company's capital plans, we will take a call, we will approach the Board at the right time. I'm not saying that it is short, long, it could be any time, but we are definitely reviewing everything possible in terms of our strategy and all options are being evaluated for the capital raise. The first thing was to undo whatever had been done from May 31st onwards, which we... It is in the public domain. We have taken a conscious call. We have done everything possible. We are just out of that particular transaction. Now it is the time to rethink, and presently, as the results are coming up, I have given you a very clear idea of where we stand in terms of our capital adequacy, in terms of our Tier I, in terms of our leverages, our depleting books. That is one of the reasons why now is the time that we will, the management team will sit together to evaluate the options that it has and then take it forward to the Board that what best is required for the company. I can only tell you that not only the Board, but all stakeholders are extremely supportive of the way the company is trying to navigate the capital requirements as well as whatever is possible in terms of the businesses. Oh, thank you. Thank you. Thank you. Thank you. As there are no further questions from the participants, I now hand the conference over to Ms. Deepika Gupta Padhi for closing comments. Thank you, everyone. Mr. Saha, was there any other question? I thought that you would also ask one more question. Let me ask him, sir. Give sir. Give me a moment, please. Mr. Saha? Sorry, he disconnected, sir, from the call. You can respond. We can respond on that. Reversal of provision. Reversal of some provision, therefore others we can do that. We have not done any reversal of provision so far. In the future, as to the it's a model driven, this thing, and we will evaluate, you know, how the things are moving. Accordingly, we will take a call on that. Thank you. Ms. Padhi, would you like to give any closing comments? Yeah. Thank you everyone for joining us on the call. If you have any questions unanswered, please feel free to get in touch with investor relations. The transcript of this call will be uploaded on our website. Thank you, and wish you all a very happy Diwali. Thank you. On behalf of PNB Housing Finance Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.