The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Shreepal Doshi - Equirus Securities Private Limited, Research Division - Analyst
: My question was pertaining to the repricing. So by when would the entire book get repriced?
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JULY 20, 2023 / 9:30AM, CNFH.NS - Q1 2024 Can Fin Homes Ltd Earnings Call
Question: Shreepal Doshi - Equirus Securities Private Limited, Research Division - Analyst
: Got it. And given that you said that there is not a material increase in cost that we are anticipating. So if that is stable, then what is the sense on
margin expansion? You said 3 to 5 basis points, but if it is still December, then what, how much can it still increase?
Question: Shreepal Doshi - Equirus Securities Private Limited, Research Division - Analyst
: Okay. Got it. Sir, there was just one doubt pertaining to the yields and margin numbers. So there's Slide #10, which gives us a comparison, and then
there is Slide 13, which again gives us comparison. So what is the difference between the 2 in the NIMs in the yield and cost of funds?
Question: Shreepal Doshi - Equirus Securities Private Limited, Research Division - Analyst
: 13.
Question: Shreepal Doshi - Equirus Securities Private Limited, Research Division - Analyst
: But the numbers are different. So for example, for June quarter, for March '23, we have given 9.87% as a yield. But if you look at in Slide 13, it is
8.99%. So therefore, the disconnect.
Question: Shreepal Doshi - Equirus Securities Private Limited, Research Division - Analyst
: Okay. Okay. Got it, sir. And sir, the last part was like with respect to IT infra upgradation, what is the cost that we are anticipating that we will incur
for the same? Because even in the annual report, there's been a lot of emphasis on upgrading the entire infra and also having 10% coming to digital
channels. So what is the OpEx that we are anticipating?
Question: Shreepal Doshi - Equirus Securities Private Limited, Research Division - Analyst
: Got it, sir. Got it. Sir, just one last question pertaining to the asset quality. So as you said, that only INR 216 crores is now left for coming out of the
restructuring bucket. But I wanted to understand what is the 30 to 90 bucket in percentage term for 1Q and versus what it was in 4Q FY '23?
Question: Shreepal Doshi - Equirus Securities Private Limited, Research Division - Analyst
: 30 to 90 bucket.
Question: Shreepal Doshi - Equirus Securities Private Limited, Research Division - Analyst
: Entire book.
Question: Shreepal Doshi - Equirus Securities Private Limited, Research Division - Analyst
: Got it, sir, got it. And for 4Q, I'll take it from the annual reports.
Question: Anusha Raheja - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst
: So what will be your full year credit cost guidance.
Question: Anusha Raheja - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst
: Is it possible that the total hit on the P&L will be closer to around 10 bps, that will include on the restructured provisioning as well, right?
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JULY 20, 2023 / 9:30AM, CNFH.NS - Q1 2024 Can Fin Homes Ltd Earnings Call
Question: Anusha Raheja - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst
: NPA provisioning.
Question: Anusha Raheja - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst
: Okay. Okay. And I just actually move down to your builder loan strategy, if you can just elaborate a little bit more on that?
Question: Anusha Raheja - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst
: Okay. And what is the average ticket size of the home loans currently?
Question: Anusha Raheja - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst
: Okay. And incrementally, you're saying that closer to around 5% of growth in the AUM can come from increase in the ticket size, that will -- this 22
can become 25 odd right I mean.
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JULY 20, 2023 / 9:30AM, CNFH.NS - Q1 2024 Can Fin Homes Ltd Earnings Call
Question: Anusha Raheja - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst
: INR 27 lakhs to INR 28 lakhs.
Question: Anusha Raheja - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst
: Okay. But then upwards of INR 30 lakhs, if you will see, I think even banks are quite active in that segment, right? So when you say that you will be
having 80% to 20% sort of growth over a longer period of time and incremental, some part of the growth is also coming from the higher ticket
size. So how do we see that? Because that will also call for shrinking the margins as well, right?
Question: Anusha Raheja - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst
: Okay. And what could be -- how can we look at this as build sourcing sort of loans over the next -- over the period of next, say, 1 or 2 years what
could be its share in the total on the loan (inaudible)?
Question: Anusha Raheja - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst
: And how much could be the benefit in this which is versus how much you pay out to DSA currently?
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JULY 20, 2023 / 9:30AM, CNFH.NS - Q1 2024 Can Fin Homes Ltd Earnings Call
Question: Anusha Raheja - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst
: So I mean you broadly, we can expect the return ratios in terms of ROA and ROE to maintain at the current levels despite the fact that there will be
increase in the ticket size. So that's a fair assumption.
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