Ladies and gentlemen, good day and welcome to the Q1 FY 2024 earnings conference call for Indiabulls Housing. We have with us on the call today, Mr. Gagan Banga, Vice Chairman, Managing Director and CEO; Mr. Rajiv Gandhi, Managing Director and CEO, ICCL; Mr. Ramnath Shenoy, Head, IR and Analytics; Mr. Ashwin Mallick, Head, Treasury; Mr. Sachin Chaudhary, Chief Operating Officer, and Mr. Mukesh Garg, Chief Financial Officer. 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 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 Mr. Gagan Banga, Managing Director and CEO. Thank you, and over to you, sir. Thank you. A very good day to all of you, and welcome to the Quarter 1 Fiscal 2024 earnings call. Banks and financial institutions fail not because of bad credit, but because of lack of liquidity to service dues or debt, essentially an ALM management failure. This is true in the case of Lehman Brothers back in 2008, and it is also true of the recent bank and non-bank failures globally. ALM risk is inherent and all the more acute for non-bank mortgage lending in India that relies on wholesale borrowing, which is at, at best of three to four years average maturity, while the loans extended are of an average maturity of 7+ years. After the default of IL&FS, credit flow to non-banks without storied corporate parentage shrunk to a trickle. Some sections of the debt markets, like those from mutual funds, completely closed the tap. Indiabulls Housing, through these last five years, has been trying to monetize, has been trying and making attempts on three fronts. One is monetization of assets, refinance, and funding to mobilize liquidity to service debt in a proactive and timely manner. Two, de-risking the balance sheet, especially from wholesale loans to builders, who are suffering twin challenges of a weak housing market and the shutdown of credit flow from non-banks. The third was building prospective business in an asset-light mode, such that reliance on large ALM mismatched borrowings is done away with. I say all this because at the end of this quarter, the July, August, September quarter, as a matter of fact, by the end of this month itself, we would have declared victory on all of these three fronts. In this quarter, which is Q2, fiscal 2024, we have total repayments of approximately INR 4,800 crore, which comprises of domestic bonds, $270 million of ECB borrowings, et c. For ECB repayments of $270 million plus interest, we have liquidated the voluntary created FDs and have initiated the transfer of funds ahead of repayment due next week. We hope to have this account funded with the trustee, at least one day prior, if not earlier, one day prior to the due date. The fund movement of that has already started. Further, we have also, as per our exchange disclosures today, earmarked trustee-managed FDs of INR 628 crore, corresponding to 50% of the FCCB put option dues payable in March of 2024. Total outstanding of these FCCBs are $149.5 million. While one is fairly confident this is the outlook on business, that this option may not get exercised by bondholders, but as a matter of prudent ALM management, we have gone ahead and created 50% of the dues coming up in terms of deposits. At the end of this month, a lot of the investors on this call are perhaps foreign investors, it would be of interest for them that at the end of this month, which is August 23, we would have repaid all of the over $3 billion of foreign currency borrowing we did in the last few years. What is very important to note is that $2 billion of this $3 billion has been repaid after the IL&FS default. We are now only left with quasi-equity convertible bonds and $100 million of dollar-denominated borrowings done from Indian banks. All the 10s of foreign lenders, I would like to express my thanks to them at this stage, and hopefully, come next week, we would have parted ways, perhaps temporarily, on a very good note with all of you having received all of your principal and interest in full. Thanks once again for the support. From here on out, and this is an important point to appreciate, we believe we have hit a key turning point for ourselves. Going forward, our debt repayments are only in the ballpark of INR 500 odd crore a month, which will be more than comfortably covered by the repayments that we received, receive regularly from the re- loan portfolio.... even if we have to assume some chunkiness of FCCB put options, for which we are anyways creating SPs, even then, the average repayment on a monthly basis from October 2023 will only increase to INR 650 crore per month, against a contracted loan portfolio repayment receipt of about INR 850 crore a month. As at the end of June, our borrowings had shrunk to just about INR 40,000 crore, which will be down to about INR 36,000 crore at the end of September 2023, which is about almost INR 80,000 crore lower than what it used to be at its peak. When you see the detailed ALM on the liability side, which is borrowings plus securitization liabilities, et c., the ALM stands fully matched. Against INR 36,000 crore of borrowings, we will have about INR 11,000 crore of cash investments and other assets, plus around INR 42,000 crore of loan assets net of securitization liabilities, translating to a 150% cover over our borrowings, with the borrowings being comfortably ALM matched. Excess collections over debt repayments, which would be in the ballpark of INR 600 crore-INR 1,200 crore a quarter, all incremental borrowings will now be available for asset growth. Here, again, our asset-light model has fully matured, as we have been sharing in the past, we have co-lending relationships with eight partner banks, for each of whom we are a strategic relationship contributing significant amount to their total disbursements. Importantly, being asset-light co-lending, we will not need to build large borrowings to support this, and we can grow and earn on the entire AUM without building ALM risk. Our de-risking of the wholesale book has been supported by a very buoyant housing market, which has turned around and is witnessing strong growth. Projects that had been problematic and sticky for a long time are either getting resolved, or have already been resolved, with us roping in partners, both development partners for project execution and partners for funding and refinancing. We have, thus, hopefully been victorious on all the three fronts that we have been fighting on for the last five years. This fight, while it was fought through an extended pandemic, with complete lockdowns, et c., I hope we have emerged victorious, and by the end of this quarter, we should restart our growth path and demonstrate strong growth going forward. At the macro level, the economy has emerged very strong and resilient, and the housing sector is seeing strong secular growth across price segments. Many long-standing industry observers and experts are unanimous in the view that this is the start of a long upcycle for the sector. Growing urbanization, nuclearization of families, and a fast-growing economy, and concomitant rise in incomes are factors that are always favoring housing demand in India. These are now playing out. For the company, stability in profits, good recovery traction from wholesale loans, and receding risks means that we are now on a good, strong footing. Accordingly, the board of directors, in their meeting held on July 28th, recommended a final dividend of INR 1.25 per share, subject to the approval of members at the ensuing annual general meeting. While the amount per share is more a token amount, it was more a message that we wanted to send out to our stakeholders, especially our shareholders, that time for growth is back, and hopefully, going forward, we should be able to get back to our strong dividend track record, through which we have distributed over INR 11,000 crore of dividends through our listed history. As business has now stabilized and the company gets back on the path of growth, subject to regulatory limits, we aim to resume consistent payment of dividends. There are now regulatory guidelines for NBFCs around this, so we will have to operate within that. After a period of consolidation through the last five years, it is now the management's focus to also, besides dividends, focus on ROEs. I'm quite hopeful that we would be a mid-teen ROE company over the course of the next three financial years. In the near term, another priority for the company is the entire reorganization and rebranding exercise that we have been focused on for the last four to five years. The company has, over a period of time, transformed itself to a board-run, professionally managed, and diversely held financial institution. Board of directors exercises effective oversight over the running of the company through board constituted subcommittees, with key committees chaired by independent directors. The erstwhile promoter, who is now classified as a public shareholder, along with the entities he controls, had a shareholding of 9.77% at the time of de-promoterisation. This has now declined to around 1%. As per my understanding, he's probably going to be completely exiting the company. With the completion of the de-promoterisation, we are also in the process of transforming and changing our brand identity. We've already gotten our board approval for this, and we are awaiting regulatory approval, post which we will be going back to shareholders and getting shareholders' approval. All of this should hopefully happen within this quarter, and over the next 45 to 60 days, we should have a new brand identity for ourselves. Gradual regulatory changes have been done away with any meaningful differences between HFCs and NBFCs. The entire regulatory framework is now scale-based. We are in the upper level of NBFCs, being amongst the largest NBFCs in the country. Accordingly, since we do not get any advantage of remaining an HFC, we have written to the RBI to change our certificate of registration to that of an NBFC. That change should also happen along with the name change, hopefully within this quarter itself. Coming to the updates for the quarter. In this quarter, we have disbursed retail loans of around INR 1,837 crore under the asset-light model. These loans have been disbursed in partnership with our banks. There is no concentration on any one bank, and all eight partners are almost equally contributing. To go take you through the Q1, F1, FY 2024 numbers, please refer to slide three of our earnings update. The net interest income is at INR 562 crore. Profits at about INR 296 crore versus INR 261 crore in Q4, fiscal 2023, and INR 287 crore in the same quarter last year. Retail disbursements, as I said earlier, stood at INR 1,837 crore, and cumulatively since fiscal 2022, stand at almost INR 13,000 crore. Net interest margin is very stable at 3%, and our ROA has marginally expanded again to about 1.7% from 1.4%. It's on an upward trajectory. Gross NPAs and net NPAs are at an 11-quarter low. Gross NPAs are at 2.87, and net NPA is at 1.69. Our net debt-to-equity is now as low as 2 x, and capital adequacy and on a consolidated basis, stand at 31.2%, of which almost 27% is Tier one capital. On a standalone basis, the capital adequacy is 23.46%. As part of the reorganization, if the path chosen is to consolidate the subsidiary, the standalone would also go up to 31.2%. That is work in progress. We are engaged with various stakeholders on how to take this forward, hopefully, through the course of the quarter or early next quarter, we should be able to give a more specific guidance on the reorganization plan and the organization structure, et c. As I spoke at the beginning of the call, we are also undertaking a rebranding exercise. I've already shared the timelines for it. As part of our strategic discussions, a suitable name has been chosen. I would like to emphasize that the company would remain a mortgage-focused NBFC. It would still focus on home loans, loans against properties, and via the alternative investment platform, a small contribution or a co-lending equivalent for builder loans. For quarter one and two, the focus is basically to scale up the retail engine and to do prudent ALM management. From quarter three onwards, we will have bandwidth to scale up the retail engine further and perhaps, hopefully, also scale up the wholesale platform with our partners. Now, focusing on retail lending, which is our growth engine. Along with our eight banking partners, we continue to grow the retail AUM in an asset-light model. At the end of quarter one, 35% of our AUM is now funded through either co-lending or securitization, up from just 10% in fiscal 2018. We've disbursed, as I mentioned earlier, almost INR 13,000 crore of loans since last fiscal year. We hope to sustain the present 3% ROE that this incremental business is generating. Our 1.7% ROE will steadily inch up towards the 3% run rate ROE that we are generating for the incremental business, as the incremental book becomes larger than the back book. We continue to invest in expanding our reach, building up trained manpower, and we keeping a keen eye on the dispersal growth, which will result in OpEx remaining elevated through fiscal 2024 and fiscal 2025. By fiscal 2026, the cost income will more normalize, and that's how we will be able to get to a 15% -ish ROE by fiscal 2026. The de-risking of the business by running down of the wholesale book continues. It will only gather pace over the course of the next six-12 months. A lot of capital has been put into projects where construction is going on, and steadily, these projects are getting completed. Now we are getting into a situation where collections are in the escrow accounts on a healthy basis. As this trend continues over the next six-12 months, I hope to see this book run down at an even faster pace. Now, if you can please turn to slide five. We are sourcing now about INR 600-INR 800 crore of retail loans a month under the asset-light model. It is evident from the CIBIL scores, which is the credit bureau scores, and the average ticket size, that the customer segment is prime. With strong demand both from end customers and our partner banks, we had invested in expanding our retail franchise. Our branch count is up 18% from last year, and we've added almost 300 employees in this period. We are now at about 217 branches and 5,166 people. We've also been working on the further digitization and integration with our, our various banks, and hopefully, as we complete that one by one with various banks, the scale up can be reasonably rapid since our sourcing engine is already in place. This is all to make sure that the ROA ends and trends towards 3% and the ROE trends towards fiscal 2026. The growth should be evident from H2 of fiscal 2024. Now that, you know, the ALM has been managed, the repayments, are in the process of happening. A lot of it, by the end of this month, should be behind us. We should start utilizing the surplus of repayment inflows. That is how the entire funding strategy would be working towards growing the AUM. A little bit on asset quality. As of the end of June 2023, our Gross NPA stood at INR 1,886 crore, which translates to 2.87%. And Net NPA stood at 1.69%. We are fully compliant with the RBI circular on NPA recognition based on daily DPD, late past due, and these NPAs will not be regularized unless all overdues are repaid. Between the provisions we already carry and our conservatively estimated recoveries over the next three years and some other releases, we carry imputed provisions of INR 6,385 crore, which is 12% of the loan book, and covers our Gross NPA 3.4 x. The engagement with the rating agencies continues to stay positive. We are AA-rated, and I believe, given the rapid de-leveraging that the company has done and the high capital adequacy, the ratings have a reasonable amount of support, especially given the stability on the balance sheet also, which has been witnessed over the last four quarters, as well as the earnings and the improving asset quality. All in all, I think it has been a tough five years. We have come at the to the end of the very tough period. By the end of this quarter, we would have done perhaps even India proud in repaying such large amounts to international investors. We've certainly done the company proud, and the management is again extremely thankful and of the support given by investors. We will continue with our engagement, and hopefully, we will have a good transaction soon stitched up, which will help us grow partners. Engagement with investors is continuous. On the equity side, also, I believe once growth is back, the company's valuation, et c., would improve. As a gesture of stability and growth being around the corner, the management and the board declared a small dividend, which should get confirmed in the AGM. Equally importantly to all of this is the entire reorganization, where a lot of strategic initiatives are being taken about the group structure, the ownership structure, and so on and so forth. What is really helping is the fact that we are significantly smaller to what we used to be. Our borrowings have shrunk significantly, and the large shareholders now are all financial institutions, both domestic and international, and therefore, can work very closely with a well-managed board, which is extremely mature, and a management to come out with structures which are long-term good for the franchise. On this note, I will end this call and now we are open to questions. Thank you. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask questions may press star one on their touchtone telephone. If you wish to remove yourself from mute, you may press star two. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. To ask questions, please press star one. The first question is from the line of Riddhesh Gandhi from Discovery Capital. Please go ahead. Hi, sir, apologies for being slightly actually, actually blunt here. Just had a question. You know, we've been sort of highlighting the companies, the distancing from the erstwhile promoters, you know. But, but, but the leadership team has obviously been with the, with the erstwhile promoter and been loyal to him for a long period of time. And, you know, also in the case, and like recently, where the erstwhile promoter had, had actually exited a, in a relative business, there was some legal lawsuits which have, which have come up with the NBFC with regards to some loan repayments and stuff like that. Just want to understand, how should we be thinking about this going forward, and how independent really is it? Are there any potential other liabilities which, which could arise that we don't, that which we aren't aware of right now? Sure, that's a very relevant question. I, I would like to put it on record that Indiabulls Housing and its erstwhile promoters have no financial entanglements. He owes us nothing. We owe him nothing. There is no recourse that either party has on each other for any open transaction of even a single rupee. There is no. I hope this is as transparent as one can get on this, right? On your other question about the leadership team being loyal, the leadership team is loyal to the company, which is why through a period of extreme stress, where all of us as management are pretty little shareholders, we've decided to stick together as a group, manage this crisis. While if you look at practically all the NBFCs and HFCs of similar size, smaller, larger, through this period of crisis on the NBFCs, practically each of them, whichever survives, has seen a change in leadership. That just indicates that this period of turmoil has taken a toll on professional managers such as myself and my colleagues. Because we are more loyal to the company than to individuals, while the individual has exited, we have not. It's a, it's a situation which is not witnessed in any other NBFC. In other NBFCs, typically, the owners continue to remain the same, the managers have changed and gone. In our case, it is the opposite. I would, the way I think of it is, I have given personally my best to, to make sure that the company, in the first place, survives, then transforms, and hopefully we are now at the cusp of growth. This is the best that we as a management team could do. My appointment is decided practically every other year by shareholders. If they feel that I'm doing a good job, they will allow me to continue. Otherwise, in a diversified, in a company which is as diversified, owned as Indiabulls Housing is, shareholders have ultimate power, right? And, and there is no one group, which can block anything that shareholders don't want to happen. I don't want to be negative about this. I think this is a time of perhaps not celebration, but, a time where one can at least take a step back, once all this quarter is through and say: Okay, five tough years. Now let's get started with something else. That's what I am focused on. That's what the team is focused on. We keep our heads down, work every day to make sure that we continue to repay our lenders and continue to take care of our employees and of our customers. Frankly, that's the best that we can do. Good. You know, we appreciate all of the effort. We are reasonably confident that, you know, like how the issues came up in the, in the case of Indiabulls Real Estate, we don't... I, I mean, we've sort of scraped through each of our, of our accounts to ensure that there aren't any potential XD, you know, skeletons which will come out of the closet. I'm putting it on record here, and this, this call is recorded and is up there for the rest of my life, that between Indiabulls Housing and the erstwhile promoter group, there is financial entanglement. There's not INR 1 that either he owes us or we owe. It's been a smooth transition. As a matter of fact, he has been fairly graceful in his entire exit and has been supportive of the company. I doubt that there could have been a more graceful exit than this. That said, I think there's also a lot made about this whole demonetization, etc. The quality of the portfolio is, if one takes a minute to reflect on it, one could not have paid INR 150,000 crore on gross basis. INR 75,000 crore on net basis, that INR 75,000 crore has come from the portfolio. It hasn't come from heaven. I am not the central bank, I can't print money. It has come from the portfolio, so that is the best reflection of the portfolio quality which has been built, which should hopefully put any such concern at rest. As a financial entity, we've also gone through a fair degree of rigorous inspections and audits. Just the other day, I was taking stock with my risk and compliance team. In the last four years, we've gone through 32 regulatory audits and inspections. Compared to what was being alluded to at times, I think we pulled through with practically no issue at all. Another thing which may not be of knowledge to the wider audience is that since October of 2019, the lenders of the company have started a process for common audit. The rupee in and out of the company is compiled and reported back to the lenders. There are only, I think, one or two collection and dispersal accounts that we have, which the banks have complete control over. All of these, plus the fact that now we are an upper layer NBFC, and therefore, there is tremendous regulatory oversight, which is all extremely good for the long term. That's how the sector and all of you will get greater confidence, and hopefully, these questions will never be asked again. This is all that we have to, to, let's say, action speaking louder than whatever I can, assure you why. Sir, the last question I had was, is that, is there any indication as to, you know, given the, the, the, actually, I mean, the valuation we are trading at, and given effectively the growth that's, that's, that's in front of us, that, I mean, with the promoter, I can understand if he isn't gonna be operationally involved. Is it any, any, any sort of indication as to the reason he would be sort of exiting at these prices, as opposed to potentially exiting to, you know, in a private equity, who could sort of come in and bring some honesty, just sort of exiting off, in the public market? We, you know, sort of thoughts around that. I understand, obviously, you guys aren't the promoter, but I'm sure there would be. I'm not the promoter. I can't speak for him. I can just speak commonsensically. Yeah. I, as I said, this is a company that he started, he took to a large, large size, and he's obviously, he continues to remain fond of the company. In a situation where, you're not a promoter, but you're still the largest shareholder, it becomes very difficult for the management to go out there and propose any sort of a strategic transaction, with such a large shareholding still vested in someone who's not involved in day-to-day management, and therefore, will not be in a position to give any sort of commitment to the wider market or the strategic partner or anything of that sort. I think he understood that the situation was neither here nor there, and if the company had to move forward, the situation had to get resolved. He voluntarily chose to help the company resolve the situation, and today put us in a position where we can have more meaningful and consequential discussions with only institutional investors having any sort of meaningful shareholding. Otherwise, the shareholding is extremely widely spread out. It's he, he's only facilitated the progress that the company needed to show on a multiple number of fronts, including being well diversified in terms of its ownership. I, I appreciate his gesture. Look, thank you, sir, and appreciate all of your connectivity response to you. Thank you. Thank you. Thank you. The next question is from the line of Craig Elliot from NWI Management. Please go ahead. Good evening, and congratulations, sir, on great results and taking a step back on these, as you said, several years of transformation. We've always believed in you, and you've always delivered. Thank you. We look forward to the next five, 10 years. On that note, slide 29, there's spectacular promise in the macro and in the housing. What do you think is the smart target range for you to grow book, just very broadly, let's say, over the next few years or beyond? Thank you, Craig. You guys have been amazing supporters through this transformation and both as financial investors as well as giving both moral support and advice. I really appreciate NWI's help through this entire period. On the growth path, I believe that it, you know, through the next five years, we should have a reasonably buoyant residential real estate cycle, and therefore, the underlying business will have momentum in home sales and stability in home values, et c. To be able to, from where we start fiscal 2025 in terms of monthly disbursements, which should be in the ballpark of $200 odd million a month, we should be able to grow that at a steady rate of around 18%-20% every year for the next five years. If, by April of the first quarter of 2025, fiscal 2025, which is April to June 2025, is to be considered the base, wherever we are at that time, and the estimation is $200 odd million a month, we should be able to grow that dispersal base at about 18% steadily for the next many, many years. That's the broad guidance. It's obviously, it needs to be caveated for interest rate movements. Real estate historically has been a step inflation asset class, home should not become unaffordable, et c. If, if things are to move more in a logical manner, both on interest rates as well as home prices, this is the kind of a guidance that this is the kind of growth one can expect. Thank you, sir. Have a nice evening. Thank you. Thank you. The next question is from the line of Kenny Lee from Vontobel. Please go ahead. Hello, sir. Congratulations, with the good results. I think just a quick question from me. I see we have built out the transition knowing, in, in the escrow to repay the ECB and also 50% of the FCCB. Can I get a sense in terms of the source of funding? How did we do that? Do we use, raise more debt to replace those, debt? No. Our, the leverage, and the reduction in debt indicates that all of this is happening through collections. There would be some debt, which we have raised and, and some securitization that we have done, and money is, is fungible, so I can't say where every dollar in a, in a practical way comes. A large portion of these repayments or the repayments which have been happening over the course of the last five years, have all been happening through customer collections. Excellent. Excellent. Can I ask if we're gonna do similar structure where we try to do the escrow for the September 2026 FCCB as well? That's something which, I, I first want to get this quarter done. This is how is the engagement with rating agencies and other stakeholders. The ALM now is extremely smooth. This was all done in order to give confidence to to stakeholders that there were chunky periods in the in some months and quarters, and therefore, we prepare well in time for those chunky periods in order to not have any last-minute pressure on ourselves. I think that, if you go through our ALM, and I, I mentioned this in quite a bit of detail, the monthly run rate, even if we are to assume that the put gets done, is only about $675, which is roughly $80 million a month, which is insignificant. Therefore, these kind of steps may not be required, but I do not wish to rule it out. It was a well-thought-out plan along with the board. Let this quarter end, and then we will certainly group back with our board as well as our domestic lenders, since most of the money is now is only of domestic lenders, and we confirm this back to you. That said, it is management's endeavor to make sure that we keep doing proactive ALM management. So, if it's required, we will certainly walk that path, but I don't want to put myself on record here and then later, not, not do it, because what you will appreciate is that all of this has a tremendous negative carry cost on the company. As we granularize our asset book, as we retailize it more, the earning power of the company will obviously continue to take a hit. We can't keep putting more and more pressure on the earning power of the company and still expect the same kind of profitability, return on asset, et c. It's a measured call to be taken. It's also as the situation transforms, both at the macro and the micro, different times require different actions. I will be able to confirm this, this to you by next quarter. Okay. Yeah, I see that. Thank you so much. That's it from me. Thank you. The next question is from the line of Shorya Chaplot from MUFG Bank. Please go ahead. Hello, sir. My question is related to the voluntary reserve fund for the $270 million. As per March 2023 results, you had created 50% of the fund. I just wanted to know that as on date, have you created 100% of voluntary FDs, which for which the liquidation has been initiated? Or is it like 50% of the voluntary FDs that were created before, plus 50% origination will be on the bal- from balance sheet cash? Also, the balance sheet cash, which, which is around INR 5,300 crore, does that include the voluntary reserve fund as well? Yes, it does include the voluntary reserve fund, and since then, all the FDs have been liquidated. We are something like, I think, six working days from transferring the monies, and it requires that much time, and we have two holidays in India, so it requires that much time to move the money, convert it, move it to the trustee, and so on. We usually, if you've been an ECB holder for a while, you would realize that we usually try our level best, depending on working day, etc., to try and credit the money one day in advance. Given that, as we speak, the money movement is in motion. Okay. Thank you. Thank you. you. The next question is from the line of Nischint Chawathe from Kotak Institutional Equities. Please go ahead. Hi, thanks for taking my question. Just, you know, small point, if you could, sort of remind us of, you know, what is the, what is the max proportion of CLM or sell downs that we can have in our AUMs? The max proportion is 100%. We, if all the dispersals that we do, we do with an intention of co-lending. I think a couple of quarters ago, I had shared the statistic that almost 98% of what we had disbursed in the past 12 months, we were able to successfully co-lend. That's the kind of a track record we're trying to maintain, and as we speak, we are at similar numbers. Our goal is to just lend in the background of being able to co-lend it quickly with the bank within 45 days or so. There is no limit. If we say, like I indicated to Craig, that we should be touching a $200 million kind of run rate on disbursements. That INR 200 million by April of 2024, that INR 200 million would all be with an intention of doing co-lending. Eventually we will land up holding INR 40 million on our balance sheet, and the balance, INR 160 million, would be going on to our bank's balance sheet. You know, when I'm saying, when you are saying 35% of the AUMs are funded by CLM and sell downs, what we are trying to say is that these 35 is the gross amount of funded, right? 20% is what you own on your balance sheet. Yes. Yeah. Okay. Got it. Thank you. Thanks a lot. Thank you. Yeah, we'll take the last question now, please. Sure. We'll take the last question from the line of Rishikesh from Robocap. Please go ahead. Yeah, hi. Thank you for your support to me. Rishikesh, your voice is breaking. We can't hear you. I'm sorry. Huh? I'm sorry, I can't hear it, anything. Rishikesh, hello? We seem to have lost the line for Rishikesh. We'll take the next question, from Nitin Garg, from Aviva Life. Please go ahead. Hi, sir. Thank you very much for taking my question. I have two small questions. First of all, did you have any discussion with the rating agencies on this change of the status from HFC, from HFC to NBFC? Yes, we've kept our rating agencies and all stakeholders updated, and there is no consequential change in anything as a subject. As a result of this, the company's ability to lend or borrow or fix its debt or grow its book, does not in any way get either hindered or improved by this. This is more technical, and this basically enables us to do as much co-lending as we would like to do, rather than holding assets onto our balance sheet, which is what a classic HFC would require to do. The rating agencies have been assured that the business model of the company is not going to change. We're not going to become a NBFC, which is going to be doing personal loans or gold loans or commercial vehicle loans. Mortgages is our area of focus, and whatever we've been doing for the last 16, 17 years is what we would continue to do. I believe, therefore, there should be no concern out of this transition. Okay. Secondly, sir, if you can tell me, throw some light, about that, recoveries out of those impaired or return of assets. Anything happened in last quarter? we are- We had, we had meaningful, recoveries of almost like, I think, INR 400 odd crore. Nice. As I shared, we try and write back this amount significantly. We will continue to carry higher provisions. That's what we've done. We've written back an insignificant amount, and we've just used other loans to continue to carry those provisions. Yeah, the recovery is a track record. If not every quarter, every other quarter, you can expect INR 500 crore-INR 1,000 crore recovery. Yeah, sure. Sure. Thank you very much for taking my question. Thank you very much. Thank you. Thank you everyone for joining in. I hope that by the end of the current quarter, this entire period of struggle and trouble ends, and from H2 fiscal 2023, fiscal 2024, we can be back to reporting to you steady growth. Thanks for your support through this period, and thanks once again to all the foreign debt investors who supported the company over the past 10 years. Thanks. Thank you very much. On behalf of Indiabulls Housing Finance, that concludes the conference. Thank you for joining us, ladies and gentlemen. You may now disconnect your lines.