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00:00 [MUSIC PLAYING]
00:03 Good morning and welcome.
00:06 You're tuned in to NDTV Profit.
00:09 And I'm Harsh Saita.
00:10 With us today is the MD and CEO of Utkarsh Small Finance Bank,
00:15 Mr. Govind Singh.
00:17 He's here to chat with us with regard to Q4 results,
00:21 and of course, the FY '24 picture,
00:23 and what one can expect from Utkarsh going forward as well.
00:26 Welcome to NDTV Profit, sir.
00:28 Thank you.
00:29 Thank you very much for having me here.
00:31 Right.
00:32 So first off, with regard to growth,
00:34 extremely strong numbers, both on deposits as well as
00:37 advances.
00:38 What's the FY '25 outlook like?
00:40 Because can this kind of a run rate on a higher base
00:45 continue is the perspective that most viewers would want.
00:49 Yeah, certainly, yes.
00:51 So if you see, we have grown around 31% in terms
00:54 of last year advances.
00:56 And our trajectory will remain the same in terms
00:59 of even percentage.
01:00 We expect to grow around 30% plus for FY '25 also,
01:05 overall advances.
01:06 And we expect deposit growth to be higher than this,
01:09 rather higher than previous year also.
01:11 Previous year, we have grown our deposits by 27%.
01:14 And our expectation is against a growth of advances of 30%,
01:18 our deposit growth should be 3% to 5% higher
01:21 than the advances growth.
01:23 If you remember, our H1 was a little slow.
01:26 We had a lot of interventions, a lot of new initiatives
01:29 we had taken in quarter one.
01:30 So quarter one was a little slow.
01:32 And we had started picking up from quarter two later.
01:35 And actually, from the quarter three,
01:38 and like December onwards.
01:40 So on that basis, with confidence,
01:42 we can say that our numbers for next year,
01:45 our guidance for next year is that 30% plus growth
01:47 in advances, which is absolutely doable.
01:50 Sure, sir.
01:51 And with regard to deposits and the pressure on deposits
01:55 as well as deposit growth, as well as cost of deposits,
01:57 what can you tell us, especially give us
02:00 the small finance bank perspective of things?
02:02 Because we do talk to plenty of larger banks,
02:07 and the perspective is very different
02:08 versus the smaller finance bank world.
02:13 So two important aspects, one is in terms of cost of deposits.
02:16 So initially, the cost of deposit are going up.
02:18 You must have seen that also.
02:19 But if you look at quarter four, the difference
02:21 is within 10 basis points.
02:24 And we think that in almost the increase in deposits
02:29 should not be from here, maybe 10 to 15 basis points,
02:32 not more than that.
02:33 Actually, for banks like us, around 10 to 15% of portfolio,
02:36 I'm talking about deposit size, the deposit part
02:39 is to be repriced, which will come from maturity.
02:43 Otherwise, 85% plus of deposits have already got repriced.
02:47 So there should not be any stress,
02:48 or there should not be any pressure on the cost part
02:51 from that side, from the deposit side.
02:54 In terms of overall deposit, in fact,
02:56 if you see our CD ratio also improved last year,
02:59 and our liquidity position has been extremely strong.
03:03 In fact, we ended the year with more than 2,500
03:05 quote of liquidity.
03:06 So there is no pressure on the deposit part.
03:09 The only thing that has happened,
03:10 and that maybe it will take a little while for S&P,
03:15 and maybe some of the universal bank
03:17 who are not of that size, the CASA ratio.
03:22 Of late, we have seen people moving their money
03:24 from SAR to a retail term deposit.
03:26 That may be a phenomenon which all the banks have witnessed,
03:28 be it a small bank or the large banks.
03:31 So that is what we have also witnessed.
03:34 So in terms of overall cost, we don't foresee any challenge.
03:36 In terms of overall deposit requirement,
03:38 we don't foresee any challenge.
03:40 But yes, CASA ratio reaching maybe 35% type of,
03:44 which we ideally want to be in next two to three years time,
03:47 that is taking a little longer time.
03:49 So we can expect CASA growth in terms of,
03:51 on an extended base, maybe around three to 4% this year,
03:54 from 20.5% or there about this year.
03:59 - Sure.
04:01 So I wanna speak a bit about lending costs,
04:06 rather yields is how one should term it.
04:10 18.8% at the end of H1 FY25.
04:15 Now at 19.5%, the 70 basis point increase is quite sharp,
04:20 especially given the fact that the repo has done nothing
04:23 in those two quarters.
04:25 What's happening here?
04:26 Could you give us some perspective?
04:27 And with regard to margins, therefore,
04:30 where should margins be at,
04:32 given that deposit cost repricing has largely happened
04:35 and your advances still continue,
04:37 your yields still continue to go up?
04:38 - Yeah.
04:40 So again, in case of our advances,
04:42 because still have around 40 to 60% is,
04:45 or close to that is our microfinance portfolio,
04:47 where we have a fixed return on the loans.
04:49 These are not linked with any of the market rates.
04:53 Similarly, there are some other portfolio like wheels,
04:57 which is largely a fixed return portfolio.
05:00 We have seen that when deposit was getting repriced,
05:03 our advances also got repriced during that period.
05:06 And repricing also happens gradually.
05:08 Whenever there are new disbursement happen,
05:10 those happen at a little higher yield.
05:12 So that has actually resulted in this 70 basis point,
05:15 what you just mentioned in terms of overall increase
05:17 in the yield.
05:18 And that portfolio also largely, you can say repriced.
05:23 I think we have still around 25% portfolio,
05:25 which is yet to be repriced.
05:27 And we do expect that our, you can say overall returns
05:31 on advances will be in this trajectory.
05:33 Again, it might be 10 basis point plus or minus,
05:36 but in the same trajectory,
05:38 because still we have around 25% portfolio
05:40 yet to be repriced from the lending side also.
05:43 The pressure on margins may not be much.
05:46 In fact, if you remember, we had given a medium term guidance
05:49 that our NIM will not go below 9% in the medium term also,
05:53 because certainly our advances mix is changing.
05:57 Our secured portfolio has grown by 4%.
06:00 I mean, the unproven increase from unsecured to secured
06:04 has been around 4%.
06:05 So certainly our mix is changing.
06:07 That will have some, you can say,
06:10 some change in our NIM part.
06:12 And as mentioned in our earlier calls also,
06:15 that for medium term,
06:16 if you look at next two to three years horizon,
06:18 the NIM will always be above 9%,
06:21 which was 9.9 for quarter one, quarter four.
06:24 But overall it was in the range of 9.5 or so
06:28 for last, for previous year.
06:30 We expect it to be above 9% in medium term.
06:33 - Understood.
06:35 And sir, with regard to credit costs specifically,
06:38 they've come down sequentially.
06:40 We've seen three quarters of FY24
06:43 where credit costs have been above your guided range,
06:45 roughly 2% odd.
06:47 So it's been above the 2% mark.
06:50 Now below the 2% mark,
06:52 talk to us about this fluctuation, what's causing this?
06:55 And are you confident FY25 credit costs to be at 2%?
06:59 Is that how one should read through this?
07:02 - Yes.
07:03 So I think we made more and more efforts.
07:04 We, in fact, in last also we told,
07:07 quarter three had challenges
07:08 in terms of there were multiple holidays
07:10 in our poor geography
07:11 that impacted our collection efforts during that period.
07:14 We also strengthened our collection,
07:17 you can say teams across in my micro class
07:19 as well as the retail businesses where we are there.
07:22 So our collections efficiency efforts
07:24 and overall collection efficiency
07:25 has gone up during this period.
07:27 Even our collection,
07:28 in terms of collection efficiency rates
07:29 has gone up by at least 100 basis points for quarter four.
07:32 So this is all based on our efforts in ground.
07:35 So we do expect that this trajectory will continue.
07:38 And you'll also remember that this is,
07:40 despite that we have a floating provision
07:43 for 1.5% of our microfinance,
07:45 or other GLG portfolio previous year.
07:48 And we continue to do that part this year also.
07:51 And our guidance for FY25 is in the range of 2%.
07:55 Again, this is also inclusive of our floating provision.
07:58 The board has guided us that this year
08:00 we are our floating provision from 1.5% of GLG book
08:04 to 2% of our GLG book at the end of March 24th.
08:08 That may have an additional impact of around 75 to 80 crore
08:11 as far as the overall P&L is concerned.
08:13 But great cost will be around 2%
08:17 after this additional floating provision also
08:19 which we create this year.
08:21 - Okay, so that's quite impressive.
08:24 75 to 80 crore of provisioning to happen
08:26 across all four quarters.
08:27 So you will be doing roughly 20 crore each quarter
08:30 or will you be front ending that?
08:32 - No, we do, actually we do on a month on month basis.
08:35 So when we have internal monthly business plans
08:37 and that we did last year also.
08:38 So whatever numbers are there,
08:40 we don't do it front end or rear end.
08:42 We always try to make it on a monthly basis,
08:44 from April month itself till the March 25.
08:49 So it will be in the range of around say five,
08:51 maybe around six, six and a half crore
08:53 on a month on month basis.
08:54 - Sure, sure, sure.
08:55 And with regard to ROA trajectory, where should that go?
08:59 Because on a year on year basis, ROA is flat
09:02 but we've seen a good substantial uptick,
09:05 especially in Q4, which is the latter half of the year.
09:08 So where should ROAs be at for FY25
09:11 and is there gonna be more consistency in FY25 ROA?
09:15 - Yeah, we'll see more consistency.
09:17 The way I think scale of the bank also grow
09:19 and we have a more broad based asset book.
09:23 I think that consistency will be more and more there
09:26 in the our numbers also.
09:27 And for this year, we expect that ROA will be our 2%
09:31 as we had guided last year also.
09:33 And ROA of 18% plus.
09:36 So that these two things are we had told in past also,
09:39 those remain there for FY25 also.
09:41 - Sure, 2% so you've already done that.
09:46 So I wanna try and get to whether it can do 2.5 plus
09:51 or on a more consistent basis
09:53 because you've done 2.9 this quarter.
09:56 - So the bank will be more conservative.
09:59 I think minimum 2% that is what we,
10:01 I can say we promise that we see for sure,
10:04 certainly better than 2% this year also.
10:08 - Understood and so with regard to the loan mix,
10:09 wanted some clarity with regard to secured versus unsecured.
10:13 What's the kind of mix there
10:15 and any trends you're seeing in unsecured
10:18 which concern you in any way?
10:20 - So the way we had guided earlier also,
10:24 we expect about three to 4% decline in our unsecured book
10:27 and same, you know, or increase in our secured book.
10:31 So from around 60 or so,
10:33 we should be in the range of 56, 57% or so
10:36 in terms of unsecured and the rest will be secured for us
10:39 for next year also FY25.
10:41 As far as you know, any specific concern,
10:44 so we don't have any concern per se
10:46 in any of the specific portfolio.
10:48 Sometimes there might be some geographical
10:50 or some local issues, you know, that keep happening.
10:53 I mean, that does happen for any of the portfolio.
10:56 It's a lending business after all,
10:58 but we don't have any specific segment
11:00 or specific geography
11:01 where we are having any concern today.
11:04 And we expect that, you know, 2% RO, 2% credit cost
11:08 after factoring in 2.5% on an expanded base
11:12 as floating provision should be a good,
11:15 you know, run rate from our side.
11:16 - Sure.
11:19 So with regard to the transition
11:21 from small finance bank to universal bank,
11:24 RBI has introduced some norms
11:27 which have come live from the 24th of April.
11:31 I want to understand one,
11:34 whether this makes life easier for small finance banks
11:38 to convert into universal banks,
11:41 or do you think that the challenges
11:44 and the rigors still largely remain?
11:47 - I think this makes life easier for us.
11:52 And the biggest point for that is
11:53 that now there's a regulatory clarity.
11:55 So, you know, whenever there are regulator
11:57 write something in black and white,
11:58 it becomes much easier for all the, you know,
12:01 you can say companies like us or banks like us
12:04 to understand what is there
12:05 and what makes us or what makes eligible
12:08 to go through that path.
12:10 So I think clarity of regulations is always welcome
12:13 and always helpful to all the players.
12:15 That is in our case also.
12:17 And we are here to have, you know,
12:19 because that happened just last week only,
12:21 we are here to have an internal discussion
12:22 on our path from here.
12:24 But certainly I think over a period of, you know,
12:26 medium term we'll certainly look towards that path
12:30 to move from a small finance bank to universal bank.
12:32 Some of the guidelines or some of the norms
12:36 those given by RBI, we'll look at those closely
12:39 and see that we are able to move towards that direction.
12:42 - Sure.
12:43 So, sir, with regard to the industry as a whole,
12:47 I'm just trying to get perspective from a viewer perspective.
12:51 I'm not asking you specifically from Utkarsh's perspective,
12:56 but give us some, throw some light.
12:58 Will this basically ease,
13:00 will this basically make way for more small finance banks
13:06 to get converted to universal banks?
13:08 Is that gonna happen on an accelerated trajectory
13:11 going forward?
13:12 Maybe in the next five years,
13:13 we'll see many, many more conversions
13:15 because we've seen only one meaningful one happen.
13:20 And we don't have too many of those cases.
13:23 - So I think the way you mentioned
13:25 about four to five year horizon,
13:26 I think four to five year horizon,
13:27 certainly all of these small finance bank
13:30 would look that they can become universal bank,
13:32 those who become eligible, those who meet RBI norms
13:35 and this regulatory clarity will help all of us also.
13:39 See, there is nothing which SMPs are required
13:42 and universal banks are not required today
13:44 from the compliance or from any levy
13:48 from Reserve Bank of India side.
13:50 So we have our compliances, our IT requirements,
13:53 our risk requirements are based on our products
13:57 and geography obviously are at par with the universal banks.
14:00 What benefits we can get certainly
14:02 in terms of priority sector requirement
14:03 that will go down for us.
14:05 The capital requirement will also certainly go down
14:07 to some extent and the 25 lakh limit size will also go away.
14:11 So I think there are benefits,
14:12 certainly there are benefits of becoming universal bank
14:14 and my sense is all will look towards the direction
14:17 and it's a matter of maybe three, five years
14:19 as you mentioned, most of the current SMBs who are eligible,
14:24 they will try to go through that path.
14:27 - Okay, thank you so much, Mr. Singh.
14:31 It's been enlightening to say the least,
14:33 especially the last part with regard to small finance banks.
14:37 That's something which is absolutely new
14:38 and with regard to Udhkarsha's results,
14:41 strong set at least for Q4.
14:43 Wishing you all the very best for FY25.
14:46 - Thank you, thank you very much.
14:48 I'm quickly going to take you through earnings
14:51 and we're gonna focus in on L&T Finance.
14:54 Numbers coming through and another maybe one-off,
14:58 but outside of that one-off, it's a decent-ish set
15:02 slightly on the stronger side of things.
15:04 But to give us more perspective on Q4 and the way ahead,
15:08 we have the new MD and CEO at L&T Finance,
15:11 Sudipta Roy joining us to try and give us
15:14 all of that perspective.
15:15 Good morning, Mr. Roy.
15:17 - Good morning, good morning.
15:18 Thank you for having me.
15:20 - Right, Mr. Roy, it's our first interaction.
15:23 So firstly, many congratulations on your appointment
15:27 as MD CEO at L&T Finance.
15:29 And we hope and wish you a very happy and successful tenure.
15:33 - Thank you so much, thank you so much.
15:36 - Right, so let me first start off with the one-off.
15:40 Talk us through what exactly has happened
15:42 with regard to the excess provisioning
15:45 of around 175 odd crores you've made with regard to SRs.
15:50 Is this purely a one-off?
15:51 Is this relating to a specific set of SRs?
15:55 Talk us through what's happened.
15:57 - Yeah, so thank you for the question.
16:00 Before I sort of get sped to specifically in the question,
16:03 I'd like to give a brief summary on our performance.
16:06 I know I think the performance has been pretty satisfactory.
16:11 If you look at our disbursement growth,
16:13 our disbursement growth has been quite strong.
16:15 You know, our retail disbursement growth has been 33%
16:18 on a year-on-year basis,
16:22 as well as our retail book has grown by about 31%
16:25 on a year-on-year basis.
16:27 Now, and what is important to know that actually
16:30 on a sequential basis,
16:32 we maintained our disbursement growth at about 4%.
16:35 Typically the quarter three is a festive quarter.
16:37 So we've been able to maintain that particular growth
16:39 on a sequential basis,
16:42 which is again, because the disbursement engines
16:46 that we have fine-tuned and built over
16:48 the last couple of quarters,
16:49 actually held their momentum in quarter four,
16:51 ending up in a disbursement growth
16:53 more than that we saw in the festive quarter.
16:58 In terms of our cost of funds trajectory,
17:01 the cost of funds trajectory remained extremely stable
17:03 with only one basis points increase
17:06 on a quarter-on-quarter basis,
17:08 as well as our asset quality also remained stable,
17:11 improving sequentially.
17:13 In terms of the update on our luxury strategy,
17:15 we are currently at about 94% retail
17:18 and our wholesale book has actually pared down
17:20 to about five and a half thousand crores.
17:23 And that brings me to your question.
17:26 See, when we started our wholesale journey,
17:28 we had about 38,000 crores of,
17:31 wholesale reduction journey,
17:32 we had about 38,000 crores of assets on an overall basis.
17:36 And over the intervening years,
17:38 we have run it down to about five and a half thousand crores
17:40 as of now.
17:41 We had done a valuation of the fair valuation
17:45 of the wholesale assets
17:46 when we had started our luxury journey,
17:48 and we had kept aside about 2,600 crores worth of
17:52 pool of money received from the gains proceeds
17:58 from our mutual fund asset sale.
18:00 And we had kept that money aside
18:01 for what we call illiquidity discount
18:03 at that particular point in time.
18:05 Which means, if you were to sort of pair off an asset
18:08 and if the buyer needed a little bit of price advantage,
18:11 we would dip into that illiquidity discount.
18:13 Having run down the wholesale book
18:15 from a 38,000 crore odd level
18:17 to about five and a half thousand crore right now,
18:19 we did a fair valuation exercise
18:21 of our on-book wholesale portfolio,
18:24 and that yielded a release of about 546 crores.
18:27 You're also aware that we have been periodically,
18:31 some of our assets have been periodically
18:36 vested off to the ARCs.
18:39 So we have an ARC pool as well.
18:41 When we analyzed our ARC pool,
18:44 what we came across is something
18:47 what we call sequence risk.
18:49 That means, overall, as per our sort of estimations,
18:54 though on an overall basis,
18:57 on the entire resolution pathway of the ARC pool
19:00 that L&T Finance has,
19:01 the organization will probably end up
19:03 making a reasonable surplus, right?
19:05 But however, there exists a sequencing risk.
19:08 And let me explain for 30 seconds
19:10 what is the meaning of sequence risk.
19:12 That means, for example, if you have an ARC asset
19:14 that in its pathway to resolution,
19:17 if you are required to take a markdown
19:19 temporarily of about, say, 10 crores in one quarter,
19:22 and then the next quarter,
19:23 there is another asset that resolves,
19:24 which gives a 40 crores gain, for example, on that asset.
19:28 So on a two-quarter basis across these two assets,
19:31 L&T Finance actually ends up gaining 30 crores.
19:34 But because the 10 crores markdown
19:37 comes before the gain comes,
19:39 this leads to something called a sequencing risk.
19:42 Now, when we analyze our SR portfolio,
19:44 we wanted to protect our quarterly earnings
19:47 and our go-forward trajectory
19:50 from any of the sequencing risk
19:51 actually distracting us from our utilization journey
19:54 that it has been, which has been going quite strong.
19:58 So what we have done is that
20:00 we have taken the 546 crores
20:02 that we got as a release
20:05 from the fair valuation of the wholesale assets as of now,
20:08 and we have added 175 crores to the P&L
20:12 to create a floating portion of roughly about 720 crores,
20:15 which will hold at a portfolio basis,
20:18 which we can use against any of the SR assets
20:22 to take care of the sequence risk.
20:25 As of now, we are quite confident,
20:27 this is the data available with us now,
20:29 that the 721 crores is quite sufficient
20:32 to address the sequence risk arising of the SR portfolio.
20:36 As you know, there has been a sharp uptick in the commercial
20:39 as well as the residential real estate cycle,
20:42 and resolution pathways of many of these SR assets
20:45 are currently visible.
20:46 And as a team, we are now focused on resolution of these assets,
20:49 and this particular floating provision
20:51 gives us a lot of peace of mind
20:53 sort of while we go along to address the sequence risk,
20:57 while we go around resolving the SR assets.
21:00 But however, the focus of the entire organization
21:02 is going on the retail side of the business,
21:06 which have been doing exceedingly well.
21:08 And we are very certain that over the next couple of quarters
21:12 as we continue our focus on resolving the SR assets,
21:16 the SR assets will also show
21:19 sort of a positive resolution trajectory.
21:22 And in the end, over the next four to five years timeframe,
21:24 we are very confident that we as an organization
21:27 will actually end up with a reasonable surplus
21:29 from the resolution of the SR assets.
21:32 Okay, so really long answer there,
21:34 but thank you for that comprehensive picture
21:38 with regard to what's happened on the one-off side of things
21:41 and what sequencing risk means.
21:43 That I'm sure would have given viewers a perspective,
21:46 but really the key question here is,
21:48 of this 700 plus crore,
21:50 what's the kind of recovery one can expect?
21:52 So while you've written it off from a prudence perspective
21:55 in this quarter, can we expect pretty much the whole amount
21:59 to get recovered eventually
22:01 once all of the resolution proceedings have ended for you?
22:05 Yeah, so as I said, because of the buoyancy
22:10 in the commercial and real estate cycle,
22:12 resolution pathways of many of our SR assets
22:14 are currently visible.
22:17 So, over the week, our teams are working very,
22:22 with a great amount of focus on these resolution pathways.
22:26 And we will start seeing cash flows in some of these assets
22:31 as and when they move towards resolution.
22:34 As you understand that real estate projects
22:37 are complex projects and revival in real estate scenario
22:41 in the country has given us that window of opportunity now.
22:46 But this is not something which happens
22:49 in two months or three months.
22:51 This is a process that takes a couple of quarters,
22:54 maybe at times three, four years, for example,
22:56 for the entire project resolution to happen
22:59 and the entire cash flow store starting to happen.
23:01 So I'll reiterate what I said in my initial answer,
23:05 that looking at the current pathways of resolution
23:08 and looking at our current, as we stand,
23:10 our current assessment of our SR portfolio,
23:13 the organization on the long run will end up
23:16 sort of gathering a reasonable surplus over our SR assets.
23:20 This 720 crores of floating provisions
23:22 that we have created is just to smoothen out
23:26 any sequence risk and sort of protect
23:28 the quarter quarter trajectory of the organization
23:32 from any sequence risk.
23:34 Our focus is on utilization.
23:36 And as a team, we do not want to be distracted
23:39 by this quarter on quarter sequence risk.
23:41 We want to focus on utilization.
23:43 We want to sort of maintain a positive trajectory
23:47 of results delivery.
23:48 And we are reasonably confident at this point in time
23:52 that this 720 crores of floating prudential provisions
23:56 that we have taken gives us enough cushion
23:58 and peace of mind to achieve that.
24:00 - Sure.
24:00 So, you know, quick last question,
24:03 which I'll have to throw in here
24:04 with regard to both margins.
24:06 Margins have gotten better,
24:08 but ROAs are seemingly below your target ranges.
24:12 2.8 to 3% is your target.
24:14 What are the levers for ROA improvement from here?
24:17 How quickly can ROA improve and where do margins go?
24:20 - Yeah, so if you see the composition of our portfolio
24:25 has been changing, you know, previously at,
24:27 when we started the Luxor strategy,
24:29 we are almost, you know, 50/50 between retail and wholesale.
24:33 But, you know, as of now we are 94%, 94% retail.
24:38 And the retail margins, especially the retail names
24:41 are almost close to 400 basis points higher
24:43 than that of the wholesale names.
24:45 So the trajectory of our portfolio has been changing.
24:49 As you are aware, you know,
24:51 we are at a sort of a high cost of funds regime right now.
24:57 And we expect that the cost of funds regime
24:59 to remain sort of at this level
25:02 for the next couple of quarters.
25:04 Our overall ROA trajectories have been improving.
25:07 In fact, our retail ROAs,
25:09 we have almost achieved the retail ROA targets
25:12 that we, on the Luxor targets that we have set up
25:15 about 2.83%.
25:17 On the retail side, we have more or less achieved those goals.
25:20 So that is why we have reoriented ourselves
25:23 to target those console ROAs of 2.8 to 3%.
25:26 Now, as an organization, the guidance that we have given
25:28 is that exit FY25, we'll try to work towards
25:32 that 2.8% ROA and exit FY26,
25:35 we'll work towards a 3.3% ROA.
25:37 Obviously, ROA balancing is a combination of many factors,
25:42 is a combination of your names,
25:44 a combination of your credit cost,
25:47 as well as a combination of your expense lines.
25:49 So we will continually work towards the two every quarter
25:53 to optimize all of those lines,
25:56 especially on the credit cost line as well,
25:58 as well as on the revenue side as well.
26:00 And we are hopeful that we will, as an organization,
26:04 we'll maintain a positive trajectory as close as possible
26:08 to the Luxor guidance that we have given.
26:10 And now that we have reoriented ourselves
26:12 on a console basis to that 2.8 to 3% threshold.
26:15 - Sure, sure.
26:16 Thank you so much, Mr. Roy.
26:18 That's all the time we have today
26:20 with regard to the earnings of L&T Finance.
26:23 Thank you so much, sir, for that perspective.
26:25 Of course, larger conversation,
26:26 merited and warranted, and we will have that later on,
26:30 maybe in a week or two with you.
26:32 Thank you, sir, for your time.
26:33 With that, completely out of time
26:34 on this edition of the show.
26:36 More on NDTV Profit on the other side.
26:39 Stay tuned.
26:39 (upbeat music)
26:42 (dramatic music)