Ladies and gentlemen, good day, and welcome to the Q4 and FY 2022-2023 earnings conference call of PNB Housing Finance Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Deepika Gupta Padhi, Head, Investor Relations & Treasury. Thank you, and over to you, ma'am. Thank you, Praveen. Good evening and welcome, everyone. We are here to discuss PNB Housing Finance Q4 and FY 2022/2023 results. You must have seen our business and financial numbers in the presentation and the press release shared with the Indian stock exchanges and is also available on our website. With me, we have our entire management team across verticals, led by Mr. Girish Kousgi, our Managing Director and CEO. We'll begin this call with the performance update by Managing Director and CEO, along with the financial performance by our CFO, Mr. Vinay Gupta, 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 29 of the investor presentation. With that, I will now hand over the call to Mr. Girish Kousgi. Over to you, sir. Good evening to all the investors. Happy to share we had a event-filled quarter four and the whole year was pretty good compared to last year. Broadly, I'll be covering on the growth, especially on prime, then asset quality on the retail side, corporate book and performance, both on A, in terms of resolution and also in terms of GNPA and Net NPA, capital raise and affordable business which we have started recently. In terms of growth, very clearly, you know, there is a growth in retail side on both disbursement and book. If you look at disbursement over last year, we have grown by 36% on the retail side and book growth was 10%. Quarter four disbursement was all-time high in last 14 quarters. On the GNPA side, if you have to look at last quarter, the GNPA on retail was 2.86%, as of quarter four it is 2.57%. Net NPA was 1.96% last quarter four was 1.74%. Very clearly we can see that, you know, growth is back. Disbursement, even sequentially there was a growth of about 33%. That is quarter four over quarter three. Sequential book growth is 4.4% on the retail. Very clearly growth is back both on disbursement and book, and also in terms of asset quality, both GNPA and Net NPA has come down. We had one of the best quarters for delinquency in last 14 quarters. It was all-time best in last 14 quarters for both business as well as asset quality. If we have to look at the corporate side, as I had indicated earlier, we are de-growing the book. We are working on resolution. There has been a significant resolution work we have done in last few quarters. If you look at the book as of quarter four end, it is INR 300,800 crore. The same number last year was INR 7,375 crore. The book has de-grown by 48.5%. In terms of sequentially, the book has de-grown by 23%, and that was as per plan. In terms of NPA, last year the NPA was INR 2,738 crore and this year INR 846 crore. There has been a 69% drop in GNPA. Compared to quarter three, GNPA was INR 1,307 crores and now it is INR 846 crores. In terms of percentage, it looks high, which is at 22.5% GNPA and net NPA 18.24%. This INR 846 crores is only two accounts. Out of INR 846 crores is one account which accounts to 92% of GNPA. This account is backed by one of the leading developers. To that extent, more or less, side, you know, we have sorted. We are still working on resolution. If you look at the overall book, disbursement has grown by 33% with both corporate and retail put together. In terms of book, sorry, disbursement was 33%. Book growth was 2.4%. As you are aware, we have been talking about moving to prime segment. Earlier we were focusing on super prime. Now we have shifted, we have changed the segment, so therefore there will be lift in yield which will improve profitability. Our focus has been to have a ideal mix of more skewed towards salaried and self-employed. The ideal mix is 70% and 30%. We see there has been lot of traction in terms of moving towards sourcing more salaried. In terms of product, our focus is going to be more on home vis-a-vis compared to non-home. Incrementally, we are trying to get this mix, so it will take some time. Eventually, you know, we would want to get there where our focus on home is more. In the mix, we'll be skewed more towards home vis-a-vis compared to non-home. In terms of profile, more of salaried compared to self-employed and self-employed non-professional. We started affordable business in quarter four. We did about INR 137 crores of disbursement. It was just a start, so I think it will gain traction from this quarter onwards. We have 82 branches which are now completely operational. These are dedicated affordable branches. So this will see, you know, good contribution coming in from affordable in the overall retail segment. As you are aware, we were able to raise capital recently, up to the tune of INR 2,494 crores. This capital will be used for growth. Basically, this is growth capital. In, I'm sure you would have seen the numbers. I would request, Vinay to take you through the financial performance and then we can get into Q&A. Sure. Good evening, all. I will cover the financial performance for the quarter and full year ended FY 2022, 2023. First of all, you know, with respect to Q4 FY 2023, overall PAT that we delivered is INR 279 crores, which is a growth of 65% year-on-year and 4% on a quarter-on-quarter basis. Net interest income improved 57% year-on-year, though there was a decline 19% quarter-on-quarter. However, there was a one-off in Q3 under the securitization income due to margin true up on account of increase in yield. Excluding that, NII declined by 6% quarter-on-quarter. Pre-provision operating profit improved 32% year-on-year and operating expenditure increased 23% year-on-year. Spread on loans as of Q4 is 2.65%. Again, there is a decline on a sequential basis. However, again, there was a one-off in the, under the securitization. Excluding that, it is more or less comparable to, you know, what we have seen in the Q3. The company has also increased its lending rates by 30 basis points at the end of March. The impact of that will come in the first quarter of next financial year, which will help us in offsetting some of this decline. NIM stood at 3.74% and gross margin stood at 3.83% for the quarter. Similarly, on a full year basis, we have delivered a PAT of INR 1,046 crores versus INR 836 crores in the same period last year. This is a 25% growth year-on-year. On a full year basis, spread on loans is 2.8%, NIM is 3.7%, gross margin is 4.1% and ROA is 1.6%. The leverage that we have closed as of March is 4.9% and our ROE is 9.98% as compared to 8.9% in FY 2022. This is the brief on the financial performance. We open it up for the Q&A. 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 the 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. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Reminder to the participants, anyone who wishes to ask a question may press star and one at this time. The first question is from the line of Samip Bhansali from Tata Mutual Fund. Please go ahead. Hello? Can you hear me? Sir, please use the handset mode. The audio is unclear. Okay. Hello? Yes, please go ahead with your question. Yeah. I would like to know what is the status on the restructured book as on March 2023, and how much is the provision that we are holding against the restructured book? Vinay. Vinay. As on 31st March 2023, we are having a restructured book of INR 1,870 crore. Okay. We are carrying the provision of, around 12%-13% in our book. Okay. These are primarily like your wholesale assets, right? No. Achha. The COVID restricted account. Okay. Many of those accounts have already started making the payment. They've gone back to the, you know, paying scheme. Okay. Thank you. Thank you. Thank you. Thank you. The next question is from the line of Onkar Ghugardare from Shree Investments. Please go ahead. With the capital raise just finished, where are the growth opportunities, you are seeing, and how you will be deploying that capital? Mr. Ghugardare, please use the handset mode. Sir, there's some disturbance coming from your line. Hello? Hello, is it clear? Yeah. Basically, capital what we have raised is for growth. We see lot of opportunity both on prime and affordable. Prime is business what we've been doing for a long time. In prime, what we have done to because of two, three reasons, we want to move segments. One is from super prime to prime. That is because we used to have lot of stress in terms of customer attrition. Therefore, we are now in the process of moving from super prime to prime. In prime we see lot of opportunity, not just in terms of growth, also in terms of building book at a higher yield, number one. Number two, we have just started affordable housing, so there we see lot of opportunity where which will help us to build book at a much higher yield than prime. The yield what we are looking at affordable is about 12+%. On prime, you know, the average yield is about 10+. There's a very clear difference of about 2% between prime and affordable. We see opportunity in both. In terms of geography, we see very good opportunity in South, both for prime and affordable, and certain markets in North and whole of West. In terms of geography, in terms of segments, in terms of products, I think we see a great opportunity. Today, if you see, I think probably PNB Housing is the only company, you know, which has, two different verticals, one for prime and one for affordable. We have dedicated branches for these two, prime and affordable, dedicated team. The customer segmentation is different. We see lot of opportunity, and this capital will be used for growing the business. What kind of sustainable disbursement growth? Sorry to interrupt you, Mr. Ghugardare. Please repeat your question. There was some audio loss. Hello? Yes, sir. Yeah, I was asking about what kind of disbursement growth you are looking out for, say, next two, three years since you have recently ventured into affordable as well? Another thing is on ROE and ROA front, what's your target on this front? Thank you. In terms of growth, disbursement growth, we are looking at about 22+%. This is at a consolidated basis, both prime and affordable put together. On affordable, the growth will be higher because of the smaller base. I think overall on retail, we'll be able to grow at about 22+% on this growth for next two to three years' time. On book, we'll be able to grow at about 17% odd. On the ROA front, as you can see, we have improved returns from 1.2% last year to 1.7% in Q4, annualized. We are working on improving it further, and we are hopeful with the mix of affordable coming in, we should be comparable to any other good affordable housing finance company. We can expect the gearing to remain here, right? Yeah. Year-end total is, 1.6% on an average. Gearing. Gearing. Sorry. Gearing, currently is at 4.9%. With the capital coming in, there would be some pressure on gearing. Obviously, it will improve with the capital coming in. We have plans for a better utilization over the next two to three years. Typically, if you look at any housing finance company, you know, be it on prime or on the affordable side, I think, the acceptable leverage is around 7.5%-8%. For us, I think we'll be pretty comfortable around 6%. Post capital raise, we will be at 4%, but we would have, you know, scope. We are comfortable around 6%. On a consolidated basis, the disbursement growth you mentioned is around 17%, right? Disbursement will be 22+%. Book growth will be 17%. Okay. Okay. All right. Thank you very much. Thank you. The next question is from the line of Renish from ICICI. Please go ahead. Yeah. Hi, sir. thanks on for the opportunity. Just two questions from my side. One on the yields. Even if you look at the yields adjusted for one-off securitization in Q3, it has actually fallen by almost 20 basis points essentially. I was just wondering when, you know, the, when we look at the industry trend, it is generally improving, and it was quite surprising for us it is declining. What is happening on the yield side, sir, in Q4? If you look at yield, you know, we have passed on the higher rates to the customers end of quarter four and also beginning of quarter one this year. This of course, you know, in terms of increase in interest rate. As I mentioned, we are changing segment, and there we will see an upside of yield, which will be at least 0.8% higher than the super prime. Which means that we will be able to maintain yield on prime side at around 10+% and on affordable, 12%. If you compare with quarter three, of course, yes, there has been slight drop in yield, but I think this is something which will get corrected, you know, from this quarter onwards. No. Basically, I just wanted to understand what has led to this 20 basis point of reduction. I mean, it was the book mix in Q4, which doesn't look like because the retail has gone up, right? I was just wondering it is just because of the book mix change is leading to this reduction or is there any write-off interest reversal or something else to that? Yes, some part is related to book mix, because the composition of retail is going up as compared to corporate. Right. That is adjusting to some extent the yield. There was also a securitization, true up, which came, which is on account of repricing that happened. The future cash flows get adjusted. There is marginal impact on the securitization also. Our core interest income is almost flat quarter-on-quarter. Okay. Okay. Okay. Got it. Even if you look at cost of borrowing, you know, it went up compared to Q3, which was 7.55%. It went up to 7.76%. The impact is that we have passed on the benefit end of Q4 and beginning of Q1 of this year. Even the cost of now borrowing went up and the mix within the overall book also changed. You know, it was more of retail and less of corporate and therefore that had an impact on the yield. Now today, if you look at the entire composition, 94% of the book is retail. This benefit of in-interest rate increase twice, you know, in last few weeks will give us that upside, you know, from this quarter onwards. Got it. Got it. That's it from my side, sir. Thank you. Thank you. The next question is from the line of Rajesh from B&K Securities. Please go ahead. Yeah. Hi, am I audible? Yes, sir, you're audible. I wanted to understand in the presentation, investor presentation slide ten, you have mentioned that there is a INR 1,500 crore that is, you know, write-off or write-off and, you know, resolution. What is the actual write-off here and what is the resolution over here? That bit we have not shared. It has been a mix of both resolution and the write-off that we have done during the year. This is what we have shared on the page as well. Going forward, how much will we be dispassionate in the corporate? Will we be not growing the corporate book at all or we will be growing a little bit over there? What would be an ideal retail versus wholesale going forward? I think to de-grow corporate book was a decision which we had taken because we wanted to resolve GNPA, bring it down to comfortable levels before we could restart. This was by design and therefore you will see corporate book going down since last few quarters. Now, if you look at last year and this year, corporate book has gone down almost by about 48%-49%. Now, the GNPA has come down and still we have about INR 860 crores in terms of absolute number. Right, I think probably this year, sometime this year, we may restart our corporate business but we will restart in a small way focused on certain locations, specific builders, specific projects, smaller ticket size. The idea of starting corporate is to ensure that we are in this business which will also help us in terms of retail penetration. We would not do standalone corporate business. Whatever business we do that will be linked to retail penetration and in terms of mix our corporate book at any given point in time would not exceed 10% of overall book. Okay. One last question from my side is, like, if you look at the NPAs on the retail side, we are still, you know, not as good as most of the competition. How are we going to address it? Number one. What is an ideal, you know, NPA ratios for the retail book going forward? If you look at, you know, couple of challenges, what we had couple of few quarters back was also on the retail asset quality. Now we've got a good fix on that. Now if you see the last three quarters our recoveries are more than flow. This trend will continue and GNPA will keep coming down. Probably let us say four to six quarters from now we will be comparable with some of the best housing finance companies in the industry in terms of retail NPA. Therefore I was mentioning that quarter three was very good for us in terms of asset quality on retail side and quarter four was one of the best in last 14 quarters. What's a comfortable NPA ratio that we will be maintaining? I mean, can you guide in terms of what kind of an NPA we will be comfortable and how will we achieve that in the next two to four quarters? I think, any enterprise given the mix of corporate, affordable and prime, I think anywhere between 1.25% to 1.35% should be the ideal GNPA level. Okay. Thank you. Thank you. The next question is from the line of Vivek Ramakrishnan from DSP Mutual Fund. Please go ahead. Sir, good evening. I just want to know strategically between the prime and the super prime segment, what is the customer difference that you see? That's question number one. In terms of what kind of credit card cost differences would you see between the two segments because you're getting a 80 bips higher yield? To grow your businesses, would you, especially because your trusted now affordable housing is just taking off, would you need more OpEx going forward? Those are my questions, sir. If you look at super prime and prime, let's say set of institutions, who would, which would focus on Cat A developer projects for retail funding and Cat A corporates for funding to their employees, that is basically super prime. In prime, what we focus is Cat B and Cat C developers for retail funding and Cat B and Cat C employer employees for, you know, for lending. Basically here we have an upside in terms of yield, which is 75 basis points-80 basis points. This also would include, you know, large chunk from the government sector, be it central or state government. In terms of GNPA, the difference between super prime and prime is not significant because it's only about 10-15 basis difference what we have seen in the industry till now, and therefore, not much of, you know, difference in the portfolio quality. The idea of getting into prime is that A, we would be able to grow faster, B, we would be able to build book at a higher yield. C, customers would stay, you know, for a longer time, so customers who loan on book is going to be for a longer time, and that will be beneficial, you know, in terms of customer retention and growth of book. Sir, the other question on operating expenses also, sir. What, you know, what do you see the OpEx to cost ratio... I mean, OpEx to income ratio? OpEx to ATA right now is around 0.8%. It has been consistently at around 0.7%, 0.8%. Most of the investment related to affordable segment has been done in the current financial year. Infra, people, all that investment is done. This seems to be sustainable while there would be some investment that we need for IT and ramp up of Roshni, our affordable, after three quarters. Just to add on the difference between super prime and prime. In prime, the ticket size will be lower, and therefore, you know, these customers are not that rate sensitive, and therefore, they take to stay on book for a longer time. Okay, sir. Thank you very much and wish you good luck. Thank you. Thank you. The next question is from the line of Ashwini Agarwal from Demeter Advisors. Please go ahead. Good evening. A couple of questions from my side. One is, this additional capital, what does that do to your credit rating and potentially to your borrowing costs? The other thing is that, you know, if you look at the higher equity and therefore lower gearing, what do you think would be the fiscal 2024 delivered ROA and especially the ROE, given higher equity? Those are my two questions. If you look at last couple of quarter performance, I think very clearly, you know, it is evident that clearly, there is a significant improvement in growth, significant improvement on the asset quality. This is also true in terms of corporate book, in terms of GNPA. With capital raise, it will definitely help us, and we have been engaging with the rating agencies and also bankers. This will have multiple positive impact. One is A, because of performance on business, on the asset quality, B, capital raise. We are engaging with rating agencies. This should positively, you know, have a relook, you know, in terms of possible upgrade. We are engaging with agencies on this front. Not just this, we would also have access for cheaper funds from National Housing Bank since our GNPA and NNPA has come down drastically over last one year. Number three, in terms of borrowing from bank, you know, because of all these things, we will be able to raise a fund at a much lower rate. All put together, you know, our cost of funds would come down. In terms of ROE, in the midterm, you know, we are very sure that we'll be able to cross three. Return on equity, sir? There would be some pressure on the ROE with the new capital coming in. With the improvement in ROA, we are sure that we'll be able to sustain the current ROE. Okay. Sir, one more question. I mean, on the spread side, I still am at a loss as to why these spreads should have contracted because your book mix is more or less the same between Q3 and Q4. It was 92% and now the till is 94%, so it's not much of a difference. The decline in the corporate book appears to be from a non-performing account, so there you couldn't have been accruing income anyway. I'm not quite sure as to why your spreads have declined in Q4 over Q3. Is there something that we are missing? On the spreads, I mean, that is, there is some impact. Yes, you are right. You said the impact is not very material with respect to mix change. The other impact is primarily on account of securitized book, so there is some repricing and, you know, there is some runoff which happens. On the securitized book, and that is slightly uneven. This quarter there was a higher impact of repricing. So on the future cash flows, that repricing has to be considered, has to be upfronted. So that led to some impact of 10, 15 bits over there. This is overall impact of around 20 bits. The securitized book also gets mark-to-market, is it? Securitized book does not get mark to market. You have to take into account the impact of repricing and any prepayments that happens on our securitized book. That has to be trued up every quarter. There is some minor impact or volatility in that particular part which happens on a quarter-on-quarter basis. On a core yield, we are able to sustain the similar kind of yield subject to this minor mixed impact that has come on account of retail and corporate. Okay. All right. Okay. Thank you so much. Thank you. The next question is from the line of Nidhesh from Investec. Please go ahead. Good evening, sir. A couple of questions. Firstly, can you share the quantum of disbursement in the affordable housing segment? What are the yields, average yields, that we are having on in the, in that book? Actually we just started affordable business in quarter four. You know, we just started, so we will start seeing these meaningful numbers from this quarter onward. Just to quote a number, we did INR 137 crores in quarter four. From this quarter onwards, you know, you will see good scale-up on affordable. What are the yields that we are charging in this segment? It's about 11.5%, 11.6%. Sure. Secondly, can you also quantify the improvement in cost of funds that we are likely to see after this capital raise and credit rating improving and availability of funding, as you mentioned that from NHB and other sources will also improve. Can you quantify what sort of improvement we can see in cost of funds in FY 2024? See today if you look at, you know, cost of funds of a company which has got all the advantages vis-a-vis, let's say PNB Housing in terms of cost, the difference is close to about, let's say 90-100 bits. We'll be able to cover over a period of time close to 40-50 bits out of that. We see over a period of time with performance increasing, improving quarter on quarter with capital raise, with possible, you know, upgrade in rating, and also access to fund, cheaper funds, we see that the cost could come down by 40-50 bits. Sure, sure. Lastly, on the credit cost front, given that we have decent write-off pool on the corporate side, corporate NPAs are still slightly on the higher side, and we expect resolution to play out in FY 2024. Do we envisage a situation where we may have very negligible or negative credit costs, given that recoveries may pan out from this, these pools, going into next one year? On the corporate NPA, you know, it has only two accounts. In NPA, we have only two. That INR 846 crores is only two accounts. Out of two, one account, you know, accounts to about 92% of the overall NPA. Right? In the other account we have resolution in place. This one account, which is 92% of total NPA, is this project is backed by a leading developer. We don't see much of a challenge in terms of resolution. Credit cost for this year, what we had guided at its 0.6% is largely, you know, on the retail side. Do you see there is a possibility that the credit cost can be negligible? Because as we see resolution from these two accounts and some of the return of accounts also in the corporate side may see some resolution. Yes. It is possible, yeah. Any timeline do you see when this resolution can play out? See, this year we are planning for a good amount of resolution. Won't be able to confirm any percentage, but definitely, yes, whatever credit cost we have considered for this year is largely on retail and whatever write-backs we are going to get from corporate, that is something, you know, which we are very closely working and we've seen some resolution happening in last couple of quarters. This year is going to be very good in terms of resolution even from the write-off pool. Sure. Sure, sir. Thank you, sir. That is all. That's it from my side. Thank you. The next question is from the line of Abhijit Tibrewal from Motilal Oswal. Please go ahead. Yeah. Thank you. Good evening, everyone. I just wanted to understand, I mean, you kind of addressed this a couple of times in this call itself that you will be utilizing the capital for growth. Just wanted to reclarify, now that you've spent maybe close to six or a little more than six months at PNB Housing, I mean, there is nothing really on the asset quality front in retail that maybe you want to utilize this capital for it because corporate very clearly what you have highlighted, just two accounts there. The others either have been written off or sold to ARCs. corporate, what you guided is, these two accounts that are there, you're expecting resolutions in FY 2024. At the same time, you also stated there could be recoveries from the return of corporate accounts. On the retail front, I mean, where we are, do you think some of this capital can be utilized for cleaning up the retail asset quality? What's in retail, Anshul? Retail, if you look at retail, there has been a good story in last two quarters. You know, some of the things which I mentioned last time is that, you know, we are now pretty aggressive on legal. We, all those efforts will start playing out in quarter one and quarter two, which is what I even mentioned, especially on the retail side, maybe in four to six quarters time, we should be comparable with some of the best companies in terms of asset quality. The last two quarters there's been a very good story. The slippages, you know, in quarter three was down by 25%, and in quarter four, as I mentioned, this quarter is the best ever in last 14 quarters. It's a very good story on the retail side. Every quarter, you will see GNPA coming down because our recoveries are going to be more than slippages. Got it, sir. One last question. Obviously, congratulations on successfully. This capital is very clearly for growth. It's clearly for growth, which is why we have varied credit cost of 0.6%, and that is only for retail. This capital is very clearly for growth because we have started affordable and business opportunity is quite large in this segment. Even there is lot of scope in terms of price. If you look at the lift in disbursement in last two quarters, it is very evident that very clearly growth is back. Within two quarters, if you see, I think the cover up on the retail side book growth is close to about 8%. We have guided 17% book growth from this year onwards. Very clearly, you know, there is a need, you know, for us to grow and market is quite large and therefore this capital is going to help us for growth. Okay. One last question. maybe just two sub parts to this question. one is, I mean, given that you already successfully completed. Your voice is not very clear. Not able to follow. Is it better now, sir? Is it better now? Yeah, better. Yeah. Yeah. I'll maybe kind of try repeating myself. Sir, given that you now successfully completed this capital raise, one thing I wanted to understand is if there is a credit rating upgrade, will that help us in start tapping the debt markets again? The other thing is that during this call itself, you highlighted that we selectively start doing the corporate book again and will be primarily done to, for retail penetration. I mean, on one side we compare ourselves or we at least aspire to be like one of the best or among the best HFCs. If I look at, I mean, most of the HFCs today, right? I mean, none of them really have been very successful on the corporate side. Why not, I mean, stick to retail because there is enough and more opportunities in retail. I mean, is doing corporate really kind of mandatory for growing the retail book as well? I think it's a very good point. Our focus is on retail and if you see today 94% of the book is retail, so our focus will be on retail. Now, having said that, there is some opportunity on the corporate side as well. We will do corporate business strategically, which can help us to increase our retail business. Which is why I told we will do corporate, you know, select developers in select markets, which we may restart end of this year, you know, which would help us to increase our retail penetration. Also in terms of concentration, in terms of mix, our corporate book will always be in single digits. We would not do corporate business as a standalone business, you know, from profitability point of view, it will be only to help us to grow our retail book. Got it. answer that question that I asked on whether, I mean, it opens up opportunities to raise money from debt markets now? Definitely, yes. Definitely, yes. We would have opportunity in in debt market. We will raise debt because we are supposed to, you know, we have to raise debt even regulatory also. Whatever incremental borrowings we are going to make, 25% has to come in the way of NCD. We will raise. This capital raise and good performance since last couple of quarters will help us, you know, in terms of raising debt at a much lower rate. Got it, sir. This is very, very useful. Thank you so much and all the best to you and your team. Thank you. Thank you. The next question is from the line of Subramanian Iyer from Morgan Stanley. Please go ahead. Yeah, thanks for the opportunity. I had data-driven question. If you could please share the list of the restructured book in this stage one, two and three. Restructured book in stage one, two and three. As I told you, on the retail side, we have got INR 1,870 odd crore in the restructure. INR 1,870 odd from restructure for retail. Out of that, around INR 300 crore is into the, you know, 90+. Otherwise all standard. Okay. How would the performance of this book be? I mean, would this be predominantly, say, zero DPD? If you could just share some color on the performance. It's already been that COVID has gone by, and now it's been more than two years, and many of the accounts have come back to the, you know, repayment scheme. All the assets are backed by a wonderful security coverage is also good. There is no additional stress which we are massaging in this book. I think it has been reached to a stage where we can say that all the risk which was built into the COVID has been settled and normalized. From the zero DPD or one level two DPD, we don't see any significant risk arising from that book. After COVID and restructuring, whatever, you know, the impact of COVID and restructuring is already seen in our NPA. The impact has already happened and this is not now, I think over a year back. Now what we are seeing is more and more of resolution, and which is why, you know, we've seen very good resolution coming in in last two quarters, and this would continue. Absolutely there is no stress what we see. In fact, now the entire pool is the same for us. Whether it is a normal flow from standard, you know, to stage three or a restructured pool, you know, flow to stage three, we don't see any difference at all because whatever had to happen has already happened. Now what we see is only resolution from the NPA pool. Thanks. That's very helpful. If you could also give the split of the potential split of the retail disbursements in FY 2024 into Prime, Super Prime and Affordable. Please, I probably missed the number when you gave it. I think super prime was not that significant. Now over last two quarters we have moved the needle and now we are focusing more on prime. You know, in terms of percentage, now super prime is very, very less. Okay. In FY 2024. Affordable last quarter we disbursed INR 137 crore. Okay. In the coming year, can we expect maybe something like an 80/20 between prime and affordable or how would these numbers look like? Incrementally, if you look at affordable, see, eventually we want to, you know, we want affordable to contribute 25% of incremental disbursement. This year we will be able to reach about 10%-11%. Got it. thanks a lot and wish you all the best. Thank you. Thank you. The next question is from the line of Venkatesh Ramakrishnan from ICICI Bank. Please go ahead. Good evening, gentlemen. This is Venkatesh from ICICI Bank. I just wanted input on your OpEx ratio is about 0.8%. Generally, we are seeing that the housing finance and other companies, the peer group, generally it's 2.8%-4% or 5%. We see that your OpEx is relatively low. Is there any specific reason how you're able to manage a large book at a low OpEx? Thanks. Thank you very much for this feedback. Actually, we want to further, you know, bring down OpEx. I think it's good feedback. Yes, we are working on cost optimization. We want to bring down OpEx from this level to the extent possible. We take your feedback that yes, our endeavor is to bring down OpEx from the current level as well. Thank you. Thank you. The next question is from the line of Nischint Chawathe from Kotak Institutional Equities. Please go ahead. Yes. Sorry I joined late, so I don't know if you shared this. What was the incremental cost of funding for the quarter? Incremental see quarter average is 7.75%, and outstanding debt borrowing cost is 8.05%. No, sorry. The incremental that you would have done, or the repricing that would have happened, would be at what rate? If did you say that as 8%? Because I'm just saying that, you know, the incremental that you did. 8.1%. Yeah. Got it. Thank you. Thanks a lot. Thank you. The next question is from the line of Renish from ICICI. Please go ahead. Yeah. Hi, sir. Thanks for the opportunity once again. On the coverage side, you know, this quarter, we saw the drop in coverage. In a steady state basis, where do you see the coverage issue settling? Coverage, as Mr. Girish explained, it was primarily on account of corporate. There we are only left with two accounts where also resolution is in progress. On retail our coverage is around 32%. You know, it has been consistently at that level, and we would like to maintain it at that particular level. At 32%. I mean, around 32%, 35%, whatever. Yeah. 30% to 35%. Yeah. Got it. Sir, once again, you know, circling back to the yield question. You did highlight that, you know, the repricing on the securitization book has led to 15-20 basis point or maybe 10-15 basis point of yield compression this quarter. Generally in a rising rate scenario, your securitized pool will get repriced at a higher rate. How does it impact negatively on the yield side? Actually in this quarter you would have seen the MCLR increase was quite high as compared to the previous quarter. Most of the banks have increased MCLR during Jan, Feb, March month. The increase in MCLR was significantly higher than, you know, the increase that you see on the rate reset that we do. The net increase was net impact was negative in this quarter. Negative. Okay. That is what. Got it. It is basically for the cost of borrowing for your securitization pool has gone up, which has led to the yield compression on our book. Is that the correct understanding? It's basically, Ramesh, the spread which we generate on the securitized pool has come down because we have not increased the rate as such in this quarter. Correct. Correct. The MCLR rates have gone up substantially. Yeah. Hence the spread on which we generate has come down resulting into this. Got it. Got it. Should we consider this as one-off or? See, there are two reasons. One is obviously the compression or decrease in the spread. That is already called out as a one-off in our entire presentation. The second impact is repricing, you know, which happens all the time. Yeah, yeah. This repricing should we consider as one-off in this Q4? Repricing is not one-off. Repricing will continue. I mean, that is something which will keep happening and that's why we have not carved it out as a one-off. You will see that impact every quarter, but it is slightly volatile. Sometimes the impact is lower, sometimes it's higher. Got it. There could be a 10-15 basis, you know, impact on account of that. Got it. Got it. That's it from my side. Yeah. Thank you. Thank you. The next question is from the line of Ashwini Agarwal from Demeter Advisors. Please go ahead. Sir, just one follow-up question. Thank you for giving me another opportunity. You mentioned that the proceeds of the rights issue will be used to fund strategic growth plans. Do you have anything else in mind other than? Handset mode, sir. The audio is not clear from your line. Is it better now? Yeah. Please go ahead. Yeah. You mentioned strategic growth plans. Do you have anything else in mind other than affordable housing when you mentioned the word strategic? No, no, no. I mentioned that we'll be growing, you know, both in prime and affordable business. This capital will help us to grow at a much faster pace because market offers that kind of opportunity today. We'll be growing pretty aggressively, keeping of course, asset quality in mind, you know, on both prime and affordable. I mentioned on the corporate business we will do strategically just to help us in terms of retail growth. Okay. No, no, I was referring to slide three where you said that proceeds will be utilized to fund strategic growth plans, and I was wondering, are you hinting at some inorganic- Same growth in retail, both prime and affordable. Okay. That's all I wanted to confirm. Thank you so much. All the best. Thank you. The next question is from the line of Abhijit Tibrewal from Motilal Oswal. Please go ahead. Yeah. Again, thank you for allowing me to follow up. Just to kind of reconfirm, restructured number that you have shared, retail INR 1,870 crores, there is no wholesale account which has been restructured, right? I mean, at least, none which is under restructuring now, any corporate account which is under restructuring now. That's one thing I kind of wanted to confirm. The second thing again on the restructured book, for the benefit of everyone, is there any retail account which is still under moratorium or everyone has exited moratorium and resumed repayments? Thirdly, a couple of days back, or rather yesterday when we had one of the larger HFCs reporting its results, they said that they have classified the entire restructured pool in stage two. While you have given out a number of INR 300 crores is in 90+ out of this INR 1,870 crores, just wanted to understand the rest of it. I mean, all of it is parked in stage two or they are based on the actual DPD, some of it could be in stage one and the rest in stage two? Thank you. First of all, these are the retail restructure numbers under the COVID restructuring. In corporate, we have only INR 108 crore and there is no delinquency, nothing you see there. It's performing absolutely fine and perfect. In this INR 1,800 odd crore number, we have told already that INR 300 odd is coming from the, which is NPA, and as we already discussed earlier, I think Vijay probably you have missed out, it has been made a part of now normal kind of a business scenario what we have. It's already been many months, you know, this normalization has come back. The allocation of this portfolio in stage two or stage one is actually dependent on the performance, so it is standard as of now and that's all. Okay. This is useful for me. Thank you so much. Thank you. The next question is from the line of Bhuvanesh Garg from Investec Capital. Please go ahead. Sure. Yeah. Thank you for the opportunity. Just a few clarifications regarding the yield for Q4. Firstly, I want to understand that where do you book this income or reversal from securitization? Because if I see your slide number 19, so you have, there you have some difference in your reported yield versus yield at securitization. I don't see any line item in your slide number 21, which is P&L, which shows some income from the line, income on derecognition. Just want to understand where do you book this income from securitization? No. It is interest income only. We have not shown it separately under the P&L line, but it's a separate line which is spread. Okay. Okay. It is in interest income you book it up. Yeah. Yeah. Fine. Fine. Secondly, sir, in slide number 19 only, if I look at your yield excluding securitization, it seems to have dropped by 20 basis Q to Q. Excluding securitization. Just want to understand what led to this drop? Again, this is not excluding securitization. It is excluding one-off in securitization, which is a spread movement, which we have explained in PLR versus our rate change movement. That is what we are calling as one-off. Apart from that, there are few other movements which happen in securitization on account of repricing of the securitized book. That sometimes cause minor volatility. Sometimes it is positive, sometimes it is negative. That impact is around 10-15 basis points. Okay. Okay. Got it. Sir, what's our guidance for NIM or spread in FY 2024 and next few years? On a steady state, spread should be 2.5% and NIM 3.5%. 2.5%-3%. Okay. Got it. Thank you. That's it from my side. Thank you. Participants, to ask a question you may press star and one. As there are no further questions from the participants, I now hand the conference over to the management for closing comments. 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 and audio of this call will be uploaded on our website. That is www.pnbhousing.com. Thank you. Thank you. Ladies and gentlemen, on behalf of PNB Housing Finance Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.