Ladies and gentlemen, good day, and welcome to the Indiabulls Housing Finance earnings conference call. As a reminder, all participants' lines will be in a 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 0 on your touchtone phone. Please note that this conference is being recorded. To discuss the financial performance of Indiabulls Housing Finance and to address your queries, we have with us Mr. Gagan Banga, Vice Chairman, MD and CEO, Mr. Ramnath Shenoy, Head IR and Analytics, Mr. Sachin Chaudhary, Chief Operating Officer, Mr. Mukesh Garg, Chief Financial Officer, Mr. Ashwin Mallick, Head Treasury, Mr. Hemal Zaveri, Head Banking, Mr. Vikesh Gandhi, Head Markets. I now hand the conference over to Mr. Gagan Banga. Thank you, and over to you, sir. Thank you. A very good day to all of you, welcome to the quarter three fiscal 2023 earnings call. Our overarching theme and the takeaway we want to leave with you all are as following. Point number one, our asset-light model is working and firing on all cylinders. Point number two, balance sheet is a fortress balance sheet with strong capital levels. We continue to de-risk the wholesale book. We have created very, very deep provision pools, so the net worth and the book value per share is extremely well fortified. Point number three, there is demonstrated progress on institutionalization of the company through the quarter and the year. Point number four, there is demonstrated prudent ALM management over the years and shall continue. While we drive the company on the above aspects, we are, of course, also focused on delivering the numbers and maintaining asset quality. I will quickly run through the nine-month and quarter three numbers before I get into the above company strategic thrust areas and progress against them. Please now open the earnings update and refer to slide three. Our net interest income came in at INR 2,354 crores for nine months and INR 950 crores for the quarter compared to INR 1,104 crores for nine months last year and INR 688 crores for quarter three fiscal 2022. Profit after tax was INR 867 crores for the nine months and INR 291 crores for quarter three versus INR 871 crores for nine months and INR 303 crores for quarter three. Despite the reduction in the book and the AUM and the gearing and all of that, we've been able to maintain our profitability. Retail disbursements under the asset-light model have risen 3.3 times in the nine-month fiscal 2023 to now coming at about INR 6,261 crores versus only INR 1,900 crores for the nine months of fiscal 2022. With this number of retail disbursements, we are firmly back to being the third-largest mortgage lender in the NBFC-HFC category. The annualized net interest margin has come in at a very, very healthy 4.1%. The ROA has been rising for the last three quarters and has now expanded to 1.5% at the end of December 2022. Gross NPAs are stable at 3.3%, and net NPAs are at 2.18%. The safety that we have been able trying to build in has resulted in the net debt to equity, which has now declined to only 2.3 times. Our capital levels continue to be very high, and the capital adequacy stands at almost 34%, of which Tier 1 capital is 28.5%. subtraction points within each. As I said, retail lending would continue to be our growth engine. Along with our banking partners, we continue to grow the retail AUM in an an asset-light model by originating under co-lending arrangements and selling down loans. Co-lending and loans sold down used to be only 10% of our liability mix at the start of the NBFC crisis in India, which was Q3, fiscal 2018. Today, that number has increased to 33% of our AUM. This increase makes this part of the balance sheet as granular as it gets. The repayments are co-terminal to the loan, it signifies the transformation of the company from a asset-heavy model, where a lot of capital was put to work, to a smart origination machine, which is focusing on low cost, high tech origination versus looking around for more and more capital. We will sustain the present 3% plus ROA on this business while ensuring high quality assets. We are also using this time to continue to strengthen our strategic sourcing relationships with our partner banks. We have already achieved tech integration with most. The balance would be achieved by the end of the fiscal. Over the course of the next three to four months, our seven partner banking relationships will also expand to 10 banking relationships. In the background, we are also expanding our reach in terms of physical distribution and have increased our branch network by almost 60 branches. We are continuing to grow our manpower as our disbursements continue to grow with a six-month lag. If we hire today, six months later, we start getting the benefits of that from a productive, same employee. The second very important area, and this is something that I would like to spend some time on today, is the continuous de-risking that we are achieving by running down our wholesale book. In some ways, quarter three was an extremely important quarter just by the virtue of very specific progress that we could achieve in quarter three. We have in the past and continue to on an ongoing basis, we have been entering into structured deals to make sure that all the projects which are funded by us continue to achieve last mile financing. Banks are hesitant to extend financing for project completion, we continue to get funding for project completion through structured finance. As a result, several of our projects which have been detailed in the slides have already achieved occupancy certificate. As is well known, the real estate cycle has bounced back, it is occupancy certificate received buildings which are seeing all the sales traction. We are clearly benefiting from that. Wherever projects are stuck, we continue to onboard joint development partners to make sure that the projects get completed. The steps which we have taken over the last four years are now bearing fruit as inventory is now getting completed. Our projects are receiving OCs, which is occupancy certificate. Cash flow has started getting generated, which is repaying the loans. Over the course of the next two years, by virtue of loan repayments, I expect material rundown in the wholesale book to continue. Most importantly, through quarter three, we've also been able to achieve breakthrough in several of the high-risk projects running into INR several hundreds of crores, which were forming part of our Stage 2 assets. We have completely received monies from two large exposures that we got, that we had in the National Capital Region, which were Stage 2 assets for the last two to three years. After receiving our monies completely, we've been able to generate an annualized return of 12% on one and over 14% on the other. That is the depth of the asset that we hold and the security that backs the asset. This area of focus will, in the short term, impact that the AUM will rapidly run down on the wholesale side, as I've been mentioning in the past few calls. Retail is scaling up. It's up 3.3 times in terms of disbursements year-on-year, but it can't possibly scale up at a level where this rundown is offset. Therefore, it is my request that please evaluate us today as a strong capital company where the capital is as real as it can get, with adequate provisions to take care of any exigency and a very, very large retail originator generating a 3% ROA on the assets that it is originating on the retail side on an incremental basis. The third area of focus is continuous proactive ALM management. We do this by maintaining adequate liquidity between what's on balance sheet and undrawn lines. Repayment of lumpy repayments is a practice, and where regulations do not permit prepayment, which is largely overseas borrowings, we have been creating trustee managed earmarked pools of monies to meet repayment dues. All of these we have demonstrably been doing for the last many quarters now, and we will continue with that practice as has been detailed on the ALM slides in the earnings update. Lastly, we continue to focus on the institutionalization of the company and moving it away from an entrepreneurial setup to a completely institutionalized setup. We have been taking definitive steps to transform the company into a board-run, professionally managed institution. A step in this is depromoterisation. I am happy to inform that now we have received all requisite approvals from shareholders, bankers, regulators, et cetera. Before 31st March 2023, this process will be completed. We are in the process of communicating all the approvals to the stock exchanges. They should be doing this reclassification of the founder promoter to a public shareholder very, very shortly, certainly before the end of the fiscal. As we move forward on depromoterisation, and this is now a certainty, the management team and the board is also working out on the simplification of the company's structure, which is the parent holdco and opco and the few subsidiaries that we have. We are doing a reorganization such that the structure reflects the fact that we only want to do two types of business, which is retail origination business and via our AIF wholesale origination business. Before the end of the fiscal, we will announce the reorganization to this effect also. The marketing team has undertaken a rebranding exercise for the company, which will reflect our institutionalized character as well as our retail focus towards doing mortgage lending. All three of these initiatives, which is de-promoterization, reorganization, such that we have a larger, more capital efficient structure as well as a rebranded structure. We should be able to make bottom line excellence to this effect for Mr. Gagan, your voice is breaking. Ladies and gentlemen, we request you all to please remain connected while we reconnect. Since we have lost the line from Mr. Gagan Banga, please remain connected. Thank you. Ladies and gentlemen, thank you for patiently waiting. We have the line reconnected. Sir, over to you. Yeah. Sorry, we got disconnected. I would request you to turn to slide five. In the nine months of this financial year, we have disbursed a total of INR 6,261 crores of retail loans. We are sourcing now about INR 700 crores-INR 800 crores of retail disbursements a month under the asset-light model. This makes us firmly the third-largest originator after HDFC and LIC Housing in the retail mortgage origination space amongst NBFCs and HFCs. This has come to be the mainstay of our retail business. 33% of our AUM is supported by CLM and loan sell-downs, which is up from 10% five years ago at the end of quarter three fiscal 2018. The asset-light model is both ROA as well as ROE accretive since through the cycle, only 20% of the loans are retained on our books while we continue to earn on the entire 100%. We have access to vast co-terminous resource pools of the banks, and thus the constraint of having to raise monies on our balance sheet and fund loan growth is something we are now free of without having any ANM risk. Of the INR 9,400 crore of disbursements we have done through this model since fiscal 2022, we are already realizing an ROA of well upwards of 3%. As you can also see on the slide, the average credit bureau, which is CIBIL Score, and average ticket size, the sourcing is happening in the prime segment. We are not in the mysterious affordable housing segment as it's called, which is low ticket size lending. We do prime lending. We do it with high-quality banks. This is high-quality loans, which is reflected in the delinquency, which is all of 10 basis points for these loans that we have sourced since fiscal 2022, which are generating us 3% ROA, but the 90 plus delinquency is all of 10 basis points. We are strategic partners contributing meaningful and sizable dispersal to the banks that we have tied up with for co-lending. The tech integration has also meaningfully progressed. The documentation is this a-standardized documentation for the industry and is now our documentation is becoming more the norm for the industry. This is in itself a very unique franchise that we have been able to create. Now we have passed the hump of getting the process, the documentation, the technology set up across our partner banks. We are now focusing on systematically increasing our BR account and our employee count so that we can double this number in the next 12 months and realize this 3% ROA on a much bigger and bigger pool on a monthly basis. If you can now please turn to slide 6. As we continue to expand the retail AUM, we continue to run down and derisk our wholesale book. The current upcycle on the residential real estate side is something that we want to completely capture, and we also want to benefit from the last-mile financing that we have provided to the various projects. As these projects achieve occupancy certificate, which has, as has been detailed, a marquee project, which is the highest tower in India, has achieved occupancy certificate already for 60% of the units. 100% of the civil structure is complete. As a result, the sales offtake is very strong and is happening at a price point which is 15% higher than what we had budgeted for a high IRRR generation for the company. Another super premium project, which is a residential project in Prabhadevi, has now become the highest selling project or tower in the country. There again, we have done a last mile financing transaction with a fund, which over the next 2 years, we expect that the funds facility, the 1st one already stands fully repaid, the 2nd one will also get fully repaid, and our loan should also get repaid in the course of the next year and a half. A super premium project in Worli in Bombay, again has 90% of the civil structure complete, has received part OC, and this will result in a massive write back for us over the course of the next 2 financial years. Wherever the projects are still slow or stuck, we've started entering into joint developments. Just in Q3, we've entered into 4 joint developments, where we expect our loans to come back again over the course of the next 3 financial years. The last few years, this is a simple amount of maths that I would request you to focus on. In order to create large provision pools, we had bumped up our Stage 2, and we had also prudently written off on a technical basis loans, so as to have high effective provision coverage. As we now recover these loans, we have willingly landed up building up a write-off and NPA pool of over INR 10,000 crores over the last four to five years. Over the course of the next two to three years, we expect at least 50% recovery to come through in terms of cash collections. Even if we have to conservatively keep it at 40% recovery, this would mean about 8% of our loan book would come back in terms of these provisions. If we add to this the provisions that we otherwise also carry, in total, we have a total provision and implied provision pool adding up to 11.6%. On the other side, if you look at our Stage 2 loans, at the end of December 2021, our Stage 2 loans were nearly INR 22,000 crores. At the end of December 2022, the Stage 2 loans have declined by INR 17,400 crores and now stand at all of INR 4,520 crores. If I was to add my Stage 2 assets, which is roughly 6% to my NPAs, it would come around to about 9.5%, against which I have implied provisions of 11.6%. We have no restructured loans. The big point that one is trying to make here is, and which I am repeatedly asked as to why do you trade at 0.25 times book? Is the net worth real? The net worth is as real as it gets, and the provisions more than effectively cover the risk. The sharp reduction in Stage 2 loans in a period of one year while adopting, and this is most important, while adopting the daily days past due recognition practice of the Reserve Bank of India, which was introduced last year, implies the asset quality that we have. The other risk which was highlighted in the past, which of late at least one has not heard much of in terms of a concern, but I would still like to speak about it, is the ALM management. As of December 2022, we had about INR 4,000 crores of cash. This excludes sanction but undrawn lines. As access to funding has eased, we have rationalized our on-balance sheet liquidity levels to minimize negative carry. The ALM is shown on a cumulative basis up to each bucket. We are positive across all buckets, and we have positive net cash of almost INR 8,000 crores at the end of first year. Our detailed 10-year quarterly ALM is in the appendix slides from 2019 to 2025. As per RBI Master Directions introduced in fiscal 2021, in February 2021, we are supposed to maintain a LCR of 60%. Against this, we have an LCR of 246%, which is only on the basis of high-quality liquid assets as defined by RBI. We continue to demonstrate proactive ALM management. Last quarter, we prepaid INR 1,000 crores of bonds. We continue to prepare for lumpy repayments. We've already started creating a reserve pool for our ECB borrowings, which will mature later in fiscal 2023. As discussed in the past, from quarter four, we will also start creating a reserve pool for our FCCBs. While the management believes that the FCCBs will eventually get converted to equity, we cannot assume so, and therefore, we will start to create a reserve pool for 25% each starting from quarter four of this year. I would like to also highlight that the company has repaid over INR 1 lakh crore on gross basis, over INR 80,000 crores on net basis. This is the largest repayment by any corporate in India to lenders, be it in the financial or the non-financial world on a net basis. This, I would believe, is one of the biggest achievements of the company and is also a reflection of the asset quality of the company. Moving on to slide eight. We've been taking definitive steps to convert the company from a promoter-driven entity to a financial institution, which is board-driven and professionally managed. Mr. Gehlaut, the founder and promoter, has stepped down from the board and cleared his stake. As I shared earlier, subsequent to all the approvals now being received, we shall complete the de-promoterisation process over the next few weeks. We are reorganizing the company such that we have only one or two subsidiaries, and the entire organizational structure is focused on only two things: retail origination via the NBFC and wholesale origination via the AIF. Similarly, the rebranding exercise of Indiabulls Housing would ensure that the name, the new name reflects a brand new image which is aligned to our focus on home buyers, and is also reflecting the institutionalized character of the company. Moving on to slide nine, which is reflecting of the earnings update on the asset quality. As at the end of December 2022, our gross NPAs stood at INR 2,302 crores, which translates to 3.3%, and net NPAs at 2.18%. We are fully compliant with the RBI circular on NPA recognition based on daily days past due, and these NPAs will not be regularized unless all overdue are repaid. At the end of December 2022, our Stage 2 loans were only 6% of our AUM compared to 30% of our AUM at the end of Q3 fiscal 2022 one year ago. Reduction in Stage 2 loans are due to strong repayment traction on the back of pickup in the real estate sector. Due to this and strong recoveries, our loss given default has been empirically validated at lower levels than Stage 3 provisions we used to carry, following which Stage 3 provision levels have now been nationalized. Between the provisions we already carry are conservatively estimated recoveries over the next three years and some other releases, such as the positive order that we have received on the Yes Bank AT-1 bonds, which hopefully the Supreme Court will also confirm. We carry imputed provisions of about 11.6% of loans. This more than covers our Stage 2 and Stage 3 loans, which are at about 10%. We are effectively 100% provided on not only NPAs, but also Stage 2 loans. To summarize, our retail asset-light engine, as I said at the start, is firing on all cylinders. We're up 3.3 times year-on-year and are firmly back as the third-largest non-bank bank originator. The wholesale book continues to trend down, and that's the direction in which we would want it to continue to then trend down, which will result in AUM contraction. This quarter, the AUM contraction was larger because of the resolution of two stuck Stage 2 NCR developer exposures. Not only did we resolve them, but made a very healthy IRR of 12% and 14% on the two, and we will continue to have this focus to wind up this line of business as soon as possible. Between rundown in wholesale loans and growth in retail AUM and our strategic imperatives, it is appropriate on our retail disbursements, and two, on the proportion of the co-lending stroke sell down and overall liability mix, which as mentioned earlier, is up 3.3 times from 233% from 10% at the end of quarter three fiscal 2018. At the end, I would like to put in context a few numbers which have played out over the last five years. Our balance sheet at the end of fiscal 2018 was INR 1,32,000 crores. This has run down by 44% to now INR 74,000 crores. Loan AUM is down in these four years and nine months by over INR 52,000 crores, again about 43%. Despite this rundown, despite COVID, we are actually see that our net worth is up 21% or by INR 3,000 crores from INR 14,000 crores odd to INR 17,269 crores at the end of Q3 fiscal 2023. We've done all of this rundown, which included classifying loans as NPAs, write-offs, whatnot, yet we have not eaten into our net worth, and our net worth has actually gone up by about 21% or by roughly INR 3,200 crores. While our balance sheet is just last year, our balance sheet is down by INR 8,000 crores. Why last year is relevant is because in the last one year, the new RBI circular has kicked in. It was expected that there would be a large bump up in NPAs. Our net worth has again gone up by INR 800 crores. Our NPAs have gone down from INR 2,350 crores to INR 2,302 crores as we speak. Most importantly, our Stage 2 + 3 loans are down from 32.8% to 9.7% at the end of quarter three. These Stage 2 + 3 loans of 9.7% are fully covered by implied provisions of 11.6%. To just put this period since March 2018 in context, we have, in this period, undergone over 15 inspections by regulators and other statutory bodies, fully adopted much stricter NPA recognition, gone through a raging COVID pandemic, transformed the company given the unprecedented liquidity squeeze for non-banks, achieved the highest possible, highest ever repayment done by a corporate in India of close to INR 1 lakh crore. We've gone through a perfect storm, and this has been far more tougher than the most stringent stress tests that we could have possibly gone through in the good times. While I appreciate there are questions around growth, and we would like to highlight that the growth that the company will pursue would be around the retail dispersal side on a net basis, the AUM may contract for a quarter or two more. It is only good if it is happening on the back of wholesale loans, especially loans which are run overdue and are giving stress to management or can potentially give stress to capital or earnings. The often asked question about how real is the net worth and thus is the book value per share real? By all the numbers that I have run you through, I hope the implication in this question, which is that will we have to pay significant write-downs from the wholesale book, is today once and for all completely closed out. The real estate sector is supporting us, and the book value is as real, as real can be and only can go up from these levels. Our ratings have all been revalidated over the course of the last three to four months. The overarching theme that we would like to continue to highlight is that we are fully focusing on growing our retail engine by maintaining the discipline of a fortress balance sheet. That was the update for the quarter. With this, we are open now for questions. 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 their 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. The first question is from the line of Craig Elliott from NWI Management. Please go ahead. Good evening, sir. Congratulations on the spectacular results. I do think that although one could take a view that shrinking the old business a little faster than expected makes the headline smaller than you would have projected maybe a year ago. In the end, it's sort of like taking your medicine faster and transforming into the new business more quickly. Congratulations on that. My question is particularly on the proactive ALM management for the upcoming convertible bonds, the FCCBs, presumably in terms of granularity, you're just looking at putting aside 125% per quarter as you have done in the past for the other liabilities? Hi, Greg. Thanks for the kind words and the support. As I mentioned in my comments, and we've also detailed in the earning deck, we would continue with that practice. The second tranche for the ECB as well as the first tranche for the FCCB would get created by the time that the full year results are announced. Effectively in quarter four we will wind up creating both of these, the second tranche for the ECB and the first tranche for the FCCB, and shall communicate to the trustee of each of those instruments after having created that. As management, we still expect that, given all the transformation that the company is doing, in due course by the time that the actual maturity of the FCCB comes, it would get converted into equity. That can't be a presumption since it is not, we need to create this reserve. Thank you very much. Thank you. The next question is from the line of Gautam Prasad from Deutsche Bank. Please go ahead. Yes, thank you for taking my question. Actually, the question that Greg asked was already answered. Just once again, congratulations on a strong set of results. Thank you. I'm sorry I did not get the question. Just a moment. I'll unmute him. Yeah, he mentioned that his questions were answered. Okay. All right. Thank you. Thank you. The next question is from the line of Vikram Damani from Damani Securities. Please go ahead. Hi. Good evening. Am I audible? Yes, sir. Yes, Vikram. Hi. Couple of questions. First is that recently there were a couple of news articles suggesting resolution of Ambience Mall loans. One was 1,500 numbers, INR 450 crore respectively. Are these accurate and will these assets NPA or standard if you could just, you know, throw some light on that? When we expect the funds if it's true, that sort of thing. It's very difficult for. As per guidelines, we can't be commenting on specific exposures. We've already stated that it was a stubborn Stage 2 NCR real estate asset. Mm-hmm. -which has been completely taken care of and has generated us an IRR of a little over 12%. So I hope the question is answered. Just is that in Q2 or... Sorry, either last quarter or this quarter? If you can just clarify that. Last quarter. Okay. What was your outstanding wholesale book on 31st December? It could be about 30% of loan book and about 20% of AUM. Okay, thank you. Last question, just a bookkeeping question. This net gain on deal recognition of financial instruments, the number that has spiked quarter-on-quarter, could you throw some more light on this? Like, what is this and, is this a sustainable number sort of thing? We securitize assets and as per the Ind AS or IFRS guidelines, this is a model that is created. IFRS is actually very liberal in that if we do a 30-year loan and we're expected to earn over 30 years, we should be up-fronting that income. We have a more conservative model. As we do more and more CLM, and as we do more and more securitization, this number will keep going steadily up. As and when the company is going to do a reference rate change, the entire back book will also get repriced. There would be an occasional quarter in which it would be a larger number than just the flow number coming from new business. Because one is very comfortable that year-on-year from last year to this year we've grown at 330% in terms of disbursements. As the base becomes bigger, over the next 12 months we will grow at least 200%-250%. Quarter three we will disburse at least 2-2.5 times of what we disbursed in quarter three this year. As we do that, we should be able to ensure that whatever is marginal one-off this time because we did a repricing of our loans in line with the repo rate increase, even without a rate increase, we should be able to manage that just on a flow basis. Okay. Can I look at it this way? We are running down the existing book, the this income which sort of compensates since you are transferring most of the loans to third parties in the subsequent quarters. That is correct. Okay. As long as the company keeps disbursing, this will be steady state. Good to know. Thank you so much, and all the best. Thank you. Thank you. The next question is on the line of Saurabh Sharma from ASK Capital. Please go ahead. Hello? Yes, please go with the question. Yeah. Am I audible? Yes, you are. Hi. Hi, Gagan. There are a few queries. In last 14 months since Sameer has exited his stake, your first thing in first few presentation you talk about NSE Prime. From last two quarters, we don't see any update on NSE Prime. Are you going for it or not, or you have dropped the plan? No, we are completely going for it. We have already applied. We have, we believe we are more than qualifying for each of the criteria laid down. I think NSE itself has not progressed on NSE Prime to the best of my knowledge, which is why I have not been updated on what is going on. Whatever we could do, we have done as far as NSE Prime is concerned, and I believe, if there is to be an NSE Prime index, then we will be there. Okay. Second question. You talked about the AIF. Last to last presentation, you mentioned that one approval you have got with the fund house and another you applied. Can you please mention the fund house? At least we should know with whom you are dealing. As a shareholder, I think we should know which are the fund houses who are actually going ahead with you. We have to do NDAs till the time that we don't start drawing capital just by on the basis of getting a SEBI approval does not mean that we are doing business together. We have to start drawing capital. The management team has been focusing more on the retail engine. I had also, so to say, confessed last time that there is a bandwidth constraint. This is a higher priority. Between quarter three and quarter four, we will continue to focus on growing the retail base. Quarter one onwards, we will start working on the AIF. In the meantime, we are trying to create an internal system. Our AIF is already about INR 7,000 crores, which is creating a track record and all of that. We focus on that. Once we start doing drawdowns, we will be happy to share the name of the partner. You can only be assured that it is one of the largest international funds operating out of Southeast Asia, focusing on this marketplace. We have done business with them in the past. In the process of having raised around INR 14,000 crores of money through structured transactions, they have been one of our most vital partners. Some of the last mile financing that they have done has also been recently reported in the press as projects that were successfully closed. It is that confidence which gives them and us the hope that this will become, in the long term, very good business, especially as the wholesale financing space completely gets vacated with the HDFC, HDFC Bank merger, perhaps also going through next fiscal. Next fiscal is some time that we will start focusing on this, and I'll be happy to share the details at that time. Okay, fair. Last question. You committed that 10% AUM growth. You are left with only 45 days for this year. Are we on track of 10% AUM growth for this year? No, we are not. We are running down the wholesale books. We will continue, which is what I've been saying for the last two quarters. We thought that we will grow the AUM. We will not be able to grow the AUM. We will grow the retail AUM by much higher than 10%, but we will de-grow the wholesale book very, very meaningfully. That is strategically for us a far bigger objective than achieving the short-term AUM growth. AUM growth for fiscal 2023 will not happen. We would end up with a flat AUM, in terms of growth? No. We will end up with at least a 15% lower AUM. Okay, fair. That's all from my side. Thank you. The next question is from the line of Rahul Tayari, an individual i nvestors. Please go ahead. Good evening, sir. Hello? Hello. Good evening. Yes, please go ahead. Sir, company, why is not give the dividend last year and present year? Why not give dividend? Rahul, you may be aware that over the course of the past two years, the Reserve Bank of India has come up with new guidelines, which basically are making NBFCs to be similarly regulated as banks. A variety of aspects, including dividends, are now regulated by the Reserve Bank of India. Late last year, they also classified certain NBFCs on the basis of their size, as Upper Layer NBFCs, which will have bank-like regulation and supervision. In the long term, this is very, very advantageous to the company because in financial services, we are sort of entities which are operating as the epitome of trust. The tighter the regulation, the higher the supervision, the more trust our counterparties have. The short term pain in that is that we have to evolve our business models so that we fall in line with whatever are the ongoing policies of the Reserve Bank of India. Last year, we did not qualify to be able to give dividends. This year at the end, we will see if we are qualified. We would certainly like to continue with that practice. If not, then we have to respect the regulator's policy. I'm not in a position to comment on it right away, but the higher priority for the company is to comply with the RBI guidelines and at the same point in time, if we get a chance, we would certainly like to give a dividend. Thank you. We take the last question. Can I take one last question, please? Yes, sir. We take the last question from the line of Vikram Damani Securities. Please go ahead. Hi, everyone. Thanks for the follow-up. Just following up on a previous question, now, if we had some recent recovery from the NCR loans, I would have thought that we could have possibly had some write back on the PL, we also have additional INR 366 crore impairment. Have we increased the PCRs? I mean, it's quite a large chunk at leisure which was important for us. Vikram, as I mentioned, these are Stage 2 assets and not Stage 3 assets. Mm-hmm. Our overall Stage 2 has come off quite significantly in the course of the last one year. In order to be remaining adequately provided, we continue to keep provisions. We have to release provisions as Stage 2 comes off. We have to continue to pile up on write-offs. We also have to reduce our Stage 3 provisions because on the basis of the recoveries that we are doing. Mm-hmm. the loss given default is not justifying even 15% Stage 3 provisions. We can't continue to have the 40% that we were holding. We have to have lower. Thankfully there is a base asset by the Reserve Bank, so we've been able to float just higher, just marginally above the base. All in all, we will have only one tool, which is accelerated write-offs to be able to create provisions. Any one-off like this time we had a one-off in terms of the repricing of our entire book- Mm-hmm. which resulted in additional income. We will use that as to create provisions and not to bump up profits. Okay. Which is how we are in a very comfortable position today that against the Stage 2 + 3 of approximately 10%, our implied provisions are around 11.6%. People talk about 100%, or 30%, 40%, 50% provisioning coverage ratio on NPA assets or 70%, 80% provisioning coverage ratio on NPA assets. Mm-hmm. I am today carrying 100% provision on all Stage 3 and Stage 2 assets. This is a very unique and comfortable position to be in, which is how one is being able to do all of this management of the wholesale book with and at the same point in time increasing the capital both on a year-on-year basis and on a five-year basis. With in this background, there would be no relief in provisions in the foreseeable future. We'll continue to just deal with assets and use the financial flexibility to to run down the wholesale book on a more accelerated basis. Makes sense. Thank you so much. Thank you. Thank you, everyone. I hope we could bring home the point around the strategy as well as the success that the company has achieved around management of capital. We look forward to speaking you again with the rebranding and the reorganization strategy more clearly along with our annual results with timelines for both. Hopefully by then, or very confidently by then, the company would be also a de-promoterized entity. Looking forward to all of that and looking forward to speaking with you with the quarter four results at the end of April or early May. Thank you. Thank you very much. Ladies and gentlemen, on behalf of Investec Capital Services, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.