Tata Capital Limited (TATACAP) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Tata Capital Q4FY26 earnings conference call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchstone phone. I now hand the conference over to Mr. Sandeep Tripathi. Head of Strategy and Investor Relations at Tata Capital. Thank you, and over to you, sir.

Thank you, Sagar. Good evening, everyone, and welcome to Tata Capital's Q4 F526 earnings call. We hope you have had the opportunity to review our financial results, press release, and investor presentation filed with stock exchanges. Joining me today are Mr. Rajeev Sabarwal, MDN CEO, Mr. Rakesh Bhatia, CFO, and our senior leadership team. I'll first invite Rajeev to share his perspectives on our performance for the quarter, following which we'll open the floor for questions. With that, over to you, Rajeev.

Thank you, Sandeep. Thank you, everyone, for joining the call. Let me start with the macro environment, and then I'll move on to the performance. India's economy delivered steady growth in FI26 with real GDP estimated at around 7.6%, underpinned by resilient domestic consumption. Inflation moderated for most of the year, with headline CPI averaging below RBI's medium-term target, though price pressures began to firm up towards the year-end. From a policy perspective, FI26 continued to be RBI's easing cycle. which began in February 2025. Accumulative 125 basis points of repo rate reduction supported by active liquidity management helped balance growth support with financial stability. Liquidity conditions tightened towards March, leading to some hardening in rates, but these pressures have since shown signs of easing. March being the end of the year, also saw, as always, Peaking of credit demand with system credit expanding to 16% year-on-year, led by steady demand in retail and select wholesale segments. Looking ahead, growth momentum could moderate amid a more uncertain external environment. Geopolitical developments, particularly the continuing conflict in West Asia, carry implications for inflation, energy prices, and global financial conditions, and we continue to monitor developments closely. In parallel, evolving El Nino conditions remain an important watch point given their potential impact on food inflation and rural demand. Now let me turn to the key highlights for the quarter, both on a consolidated basis, excluding Including Motor Finance. So we will always be communicating both on an overall basis and also excluding motor finance and we will do so in this quarterly call too. Excluding motor finance business, our AUM stood at 2.52 lakh crores, growing 28% year-on-year and 8% sequentially, driven by sustained momentum across our core segments. Profit after tax for the quarter was 1,459 crores, excluding non-recurring items, up 51% year-on-year and 14% up sequentially. This was supported by lower credit costs at 0.8% and continued improvement in asset quality with net NPA declining by 10 basis points to 0.5%. Return on assets improved by 40 basis points year on year and 20 basis points sequentially to 2.5%, which is at the higher end of our guidance. Return on equity improved by 40 basis points year on year to 14.6% in quarter 4 of FI26. For the full year, FY26, profit after tax, excluding non-reckoning items, grew 36%, exceeding a guidance of 32-35%, with return on assets improving by 20 basis points to 2%. Now talking about our performance, including motor finance business, our assets under management stood at 2.77 lakh crores, up 20% year-on-year, and up 6% sequentially. For the quarter, credit costs improved to 0.9%, down 30 basis points from quarter 3 of FI 26, and Pat grew 16% sequentially, excluding non-recurring items, to $1,502 crores. Return on Assets improved by 20 basis points quarter on quarter to 2.3% and ROE improved by 80 basis points from quarter 3 to 13.9% in quarter 4 and FI26. Overall, our quarter 4 and FI26 performance is well aligned with our guidance across all metrics. I will now walk you through our performance across five key themes. Followed by updates on our technology and digital initiatives in our housing, finance, and motor finance business. Talking about the book growth, I am pleased to share that we have delivered on our targeted AUM growth, recording a 20% year-on-year increase in line with a guided range of 18% to 20%. Importantly, this growth continues to be well balanced across segments, products, and geographies. Excluding the motor finance business, our AUM growth was even stronger at 28% year-on-year, exceeding a guidance of 22% to 25%. Within this, our housing finance segment continued its strong momentum, with the housing finance company delivering a 29% year-on-year growth. Our core focus remains firmly on retail and SME lending, which together continue to account for 86% of our AUM, providing a structurally granular and resilient growth profile. We also saw a modest increase in corporate exposures during Quarter 4 of FI26, reflecting our ability to selectively participate in high-quality opportunities within a well-diversified portfolio. Quarter 4 set a new benchmark with disbursements crossing 50,000 crores, a first for the company and a testament to our growing scale. Year-on-year, Quarter 4 disbursements grew 32% and were 12% higher sequentially. Retail momentum remains strong with healthy sequential expansion in the book. Our unsecured retail disbursements continued its momentum, growing at 50% year-on-year in quarter four of FI26 on back of improving asset quality trends. With unsecured retail currently at 10.3% of AUM, we continue to see significant headroom towards our target of scaling this to 15% and we remain firmly on track to achieve this. As of March, our distribution comprised 1477 branches across 27 states and union territories. This combined with our digital capabilities enables us to scale efficiently while deepening our presence across both existing and under-penetrated markets, serving a growing customer base of 8.4 million now. Overall, our growth remains consistent, well-diversified, and anchored in quality, positioning the portfolio strongly for the next phase of expansion. The second theme I want to cover is asset quality. Asset quality in Q4 has been the strongest over the recent quarters. We saw a meaningful improvement across metrics. Slippages declined to their lowest levels over the last eight quarters, including that in unsecured retail segment, reflecting the continued quality of our underwriting and effectiveness of our collections infrastructure. As covered in slide 16 of our investor presentation, slippages in personal loans and microfinance have declined 60% and 70% respectively. Excluding the motor finance business, gross stage 3 assets continue to remain Strong at 1.5%, Net Stage 3 at 0.5%, and Provision Coverage Ratio at 65.1%. Credit costs declined to 0.8% for the quarter, reflecting a 20 basis points improvement over quarter three. Including the motor finance business, our gross stage 3 assets were 2%, compared to 2.2% in the previous quarter, net stage 3 at 0.9%. And provision coverage ratio at 56.2%, all showing quarter-on-quarter improvement. Credit costs improved by 30 basis points to 0.9%. Metrics on credit costs and net stage 3 are in line with our guidance for quarter 4 FI 26 and for the full year FI 26. As far as risk from geopolitical environment is concerned, we have not observed any material stress in our portfolio across commercial vehicle as well as MSME segments. That said, we continue to monitor the developments closely. We are virtually spending time on this on a weekly basis to see where things are progressing. Overall, we remain confident in the trajectory of our asset quality and are committed to sustaining these improvements in the quarters ahead. Third theme I want to touch upon today is cost of funds. Our AAA credit rating underpins a well-diversified and stable funding profile. Through a disciplined ALM framework, we continue to optimize our borrowing mix while proactively managing liquidity. For quarter four, our overall cost of funds stood at 7.1%, reflecting a five basis points reduction from quarter three levels. In line with recent global developments, we have seen an uptick in funding costs on incremental borrowings. We continue to proactively manage our liability profile and remain well positioned to maintain stability in our overall cost of funds going forward. We carry a total liquidity buffer of approximately 29,500 crores, and we have ample headroom to pursue growth opportunities and absorb market volatility without compromising on financial discipline. Next theme is margins. We continue to operate with stable margin corridor with total income in quarter four at 6.5%. Yields have remained healthy supported by disciplined pricing and a calibrated shift towards higher yielding segments. At the same time, we continue to maintain a balanced mix across higher-yielding products, including unsecured retail, affordable housing, and secured business loans, alongside steady growth in fee-based income. Our continued emphasis on portfolio granularity and mix optimization has further supported margin stability, even as we scale the book. During the last month of the quarter, we saw some... Mark-to-mark movements in our investments, reflecting broader market conditions during the period. These, we believe, are temporary valuation adjustments, with no impact on long-term view on the investments. Now, talking about operating leverage, the investments we have made over the last few years, across technology, data infrastructure, and distribution expansion, are translating into structural improvements in efficiency and scalability. We are seeing tangible gains in productivity, turnaround times and overall operating efficiency and we expect the positive trajectory to continue as these investments scale further. Our headcount growth has remained well calibrated and aligned with business requirements with incremental hiring happening largely in front-end roles in sales and collections. This enables us to support growth while continuing to enhance productivity and drive operating leverage across the organization. Our on-roll employees stood at 29,816 as of March end. For FY26, the cost-to-income ratio stood at 38.3%, representing an improvement of 335 basis points over FY25 and remaining comfortable within our guided range of 38 to 39%. On our balance sheet, our balance sheet remains strong, well-capitalized, providing a strong foundation to support our growth ambitions. As of March 2026, our capital adequacy remains robust at 19%, well above regulatory requirements, and is supported by a strong common equity tier 1 ratio, reflecting the underlying strength and resilience of our capital position. Our debt-to-equity ratio stood at approximately 5.3x. A quick summary of our AI initiatives. Our AI initiatives initially focused on point solutions such as in call center and customer service. We are now scaling these capabilities across the lending value chain and moving towards more integrated end-to-end deployment that we expect will drive measurable improvements in operating metrics across businesses. We have a number of flagship initiatives live today, and let me highlight a few of them. Our underwriting assist platform, amongst the first in the industry, has reduced credit memo preparation time from 2 days to 20 minutes in our SME business, thereby improving productivity of the underwriting team by 30%. The adoption rate of underwriting assist platform today stands at 85%. Our unified voice hub operates across sales, service, and collections. In 11 languages, 90% of welcome calls are automated, and AI-driven early-bucket calling is delivering 30% AMI collection of the allocated pool. Our document intelligence engine has processed over 2 crore documents and currently runs with 80-plus operational bots, improving productivity of operations team by 35%. Talking a little bit about our housing business, Tata Capital Housing Finance continued its strong performance trajectory in Q4 of FY26, delivering healthy growth alongside improving profitability. Our AUM grew 29% year-on-year to 86,653 crores, while profit after tax increased 34% year-on-year, reflecting both scale expansion and sustained earnings quality. Our strategic focus on affordable home loans, affordable loans against property, and Prime Lab enables us to drive margin expansion, portfolio diversification, and scale. Net AUM of affordable housing segment grew by 25% year-on-year. We are now operating through a network of 350 branches supporting deeper market penetration. Our focus on automation, GNAI, and tighter operational control has resulted in improvement of cost-to-income ratio by 320 basis points from 34.3% in FI25 to 31.1% in FI26. In fact, this cost-to-income dropped below 30% in quarter four of FI26. Asset quality continues to be our core strength, credit costs remain stable at 0.1%, while net NPA stood at 0.3%, positioning us among the best-performing players in the housing finance sector. Tata Capital Housing Finance delivered a strong bad growth of 34% year-on-year in quarter-four FI26 and 23% for the full year of FI26. Return on assets for quarter 4 stood at 2.6% and for FI26 ROA for the full year stood at 2.5%, highlighting the strength and sustainability of our earnings profile. Little bit about our motor finance business. As you would remember, we achieved a break-even in motor finance business in quarter 3 of FI26, It's backed by Cecil. Strength and lower credit costs, profit after tax for quarter 4 in motor finance business was Rs.43 crores. The AUM stood at 25,390 crores, a sequential decline of 4%, reflecting our fitness-first approach. Even though positive growth in AUM is lagging by about a quarter, underlying momentum is improving. Disbursements grew 32% sequentially in quarter 4, and we expect this to build as business stabilizes. The integration is on track and signs of progress are now visible in numbers. If we talk about our portfolio mix in motor finance business, our non-TATA OEM share in new commercial vehicle disbursements for Q4 has reached 26%, reflecting early success in our multi-OEM strategy. We are increasing exposure to used commercial vehicles. Small and mid-commercial vehicles while reducing our heavy commercial vehicle concentration. Credit costs are declining with fewer slippages driven by tighter underwriting and stronger collections. Branch rationalization, focused manpower deployment, and IT integration are improving efficiency. The business is now aligned to Tata Capital's model with dedicated sales, credit, and collection verticals. We have strengthened underwriting and collections. Which is showing in the book quality across cycles. With these actions in place, we expect growth to resume from the first half of FI27. Looking ahead, we expect steady ROA improvement through FI27, and we are targeting to reach an ROA of 2% by FI28, as we had communicated before. Our focus now is on delivering consistent, high-quality outcomes as the transformation matures. In the end, I would say, FI26 reflected disciplined execution and strong fundamentals across growth, asset quality, and profitability. As we enter FI27, we remain focused on sustainable, quality-led growth, supported by our distribution and technology strengths. With momentum in retail and housing, With improving motor finance volumes and a strong capital and liquidity position, we are well placed to deliver on our FI28 guidance. We thank our investors, analysts, and partners and teams for the continued support. We'd be happy to take your questions now.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and then one on their touchtone phone. 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 is assembled. Our first question comes from the line of Raghav from Ammit Capital. Please go ahead.

Hi, thanks for the opportunity and congratulations on the number. I have three questions. One, I think you just mentioned that there were some slippages in the CZ Finance portfolio in the fourth quarter. When I'm doing my numbers and my calculations, that indicates that there have been some net recoveries in that portfolio of about 35 crores. Can you verify what was the net amount, whether it's a net slippage or a net recovery in the CZ Finance portfolio?

Actually, slippages have gone down and recoveries have improved, and that is the reason if you look at our motor finance business, I'll just try to point out to that slide. We have mentioned that for the motor finance business, our net stage three assets have come down. In fact, as far as profitability is concerned, for quarter four in motor finance business, we have earned a profit of 43 crores. I would say a good portion of that has been contributed by higher recoveries and lower slippages. And actually, our credit costs are negative, net slippages are negative, sorry.

Okay, that's what I was trying to understand that negative net slippages means there have been net recoveries, right, in this situation.

Absolutely, absolutely.

Understood, fair. And then, can you touch upon, we're looking at growth in the CB finance portfolio in FY27. CB volume has been very good in the second half. And ideally, you should be capitalizing on these volumes for the industry, right? So, just some thoughts on how do you plan to, you know, capture this cycle from F1-7 onwards?

So, as far as the coming year is concerned, you're right that there is strong momentum in the commercial vehicle business. Thank you. The first time in March, we cost a four-figure number, as far as... On the order. Our disbursements will grow at close to about 80% plus, that's what we have planned in next year, but because of the matured book, there are a lot of repayments also which are happening. Consequently, the book growth will be lower.

Going into 28, maybe that 10% can pick up to a higher number.

Correct, correct, you are right. So while disbursements will grow, hope will grow slower.

Can I ask my second question? Sure, sure. So, see, you seem to be pushing a lot more on corporate lending that's visible in the numbers. I think last quarter also it was there. And unsecured growth is also coming by. One is low margin product, one is the other one is a high margin. So, for 27, you know, what are you thinking on product strategy and what will you guide for in terms of spread expansion given that the yields have also started to pick up, you know, so one bit on what is the product strategy. And I want to understand that more from a yield expansion perspective, if there's going to be any. And then the second one is, you know, how are you looking at cost of funds? Yes, and that should really answer my question on this side.

So, you know, cost of funds is a, I would say, a moving scale. You know, tough to predict what is going to happen, but based on what we have seen and our estimate is, our cost of funds for the next year, FI27, should be lower than the cost of funds for FI26. Now, how much lower, you know, time will tell, but we expect it to be lower than FI27. As far as growth is concerned, let me first talk about, I did mention about what's going to happen on motor finance business. Motor finance is also a high margin business for The other unsecured businesses, personal loans, business loans, and microfinance. If we have given it on slide 16, what's the momentum on disbursement growth there? While disbursements have started to grow in that business from over the last, I would say, six to eight months, in personal loans, the impact on the book is less visible now because there were a lot of repayments also on a matured book. It will be higher than the overall growth rate. in margins and growth there. Similarly, in the housing finance business, we have grown last year at about 29% in the housing finance company, and we expect to grow at a similar pace in the coming year. With that, we believe that the proportion of retail business will marginally improve in our overall proportion for the coming year. And this retail and SME which forms about 86% for FI26 should inch up in FI27. As far as FI26 is concerned, just to give you a sense, our housing finance company grew by about 29%. Our retail secured grew by about 28%. And so, these were businesses which have... Picked up in quarter three and quarter five. Twenty-four percent in And we did use that opportunity. But on an overall basis, 86% is retail and SME, which we expect to inch up more so because of retail. And retail includes housing in the coming year.

Thank you. Your next question comes from the line of Viral Shah from IIFL Capital. Please go ahead.

Yeah, hi. Thanks for the opportunity. Rajiv, I had two questions. One is if you can explain the, say, relatively weaker non-interest income in this quarter, like what are the internals of it and what drove that? And secondly, basically, I think it's a derivative of your response to the previous question. Now, currently in the rate cycle that we are in, there will be probably more opportunities that may come up in the, say, SME and corporate segment, but given that we also would want to, say, from a mixed perspective, want to grow the retail book as well, what will be your priority to look at, say, in terms of overall profitability and, say, NIMS and spreads, or to basically say push up furthermore on growth at an overall level.

So, as far as growth is concerned, we have given a guidance of 23 to 25 percent, and we want to remain in that range. Obviously, if we get an opportunity to do better, we will look at it, but we want to remain in that range. As far as, you know, NIMS are concerned, our strategy has been to grow some of the high-yielding products more than the others. Last year, we did suffer on that count because our unsecured business did not grow because we were, you know, we had course corrected ourselves in FI25 and the impact was visible in book growth in FI26. Similarly, our motor finance business, which is also a high yielding business, actually de-grew by about 24% last year. We believe all of this will get corrected in FI27. We expect in FI27 motor finance business to grow. It will grow. And we also, because of the disbursements which have picked up in the unsecured business, we expect unsecured business to grow at a faster pace than our overall book growth. Similarly, our affordable housing within housing is growing at a faster pace. And we will see, you know, that also helping us in our NIMs. So it is because of all of these products, you know, our NIMs will, we expect them to grow. Last year, they did get impacted because two high NIM businesses, Unsecured, as well as Motor Finance, did not see a book grow. This is the daily average. While on a two-point average, the NIM looks flat, you know, on a daily average, shows a 10 basis points improvement. So some of these figures and the run rate for Q4 is even better for us. So to that extent, you know, some of these... Visible when you see the income growth versus the average book growth. Pointing out on, so as far as margins are concerned, we expect them to improve in the coming year because Waterford also is better for us on margins compared to the full year. As far as, you know, your other point on non-interest income, While on the core fee side, that has been showing a good trend for us, both in terms of loan-linked fee. We have seen an impact on mark-to-market. Thank you. Declined. We do our valuation on a quarterly basis, and multiples obviously came down for every industry virtually in March. We are not actually perturbed by it because we do believe that markets will come back. In some segments, they have already come back. For the others, we expect markets to improve, and this will only give us an upside in the coming quarters.

Got it. This is very clear. And Raju, if I may, can I ask one more question? Rajiv, if you can give some more color from, say, an asset quality perspective across some of the other segments, I would say especially how the mortgage piece is behaving, I would say now that the growth rates and the book is seizing even more. And secondly, with regards to, say, the bounce rates, what was the bounce rate that you saw in the month of April? I know you said that overall level you don't see any stress, but would you want to quantify that, and is it within the normal ranges?

So, let me cover, you know, segment by segment, you'll get a better picture on the same. So, as far as corporate and SME are concerned, there is no challenge which we are seeing. In fact, SME is one sector which we review every week post this whole war issue which is coming. So we review all our clients to see whether there is any stress. We have not observed anything which will give us or alarm us in any way. So to that extent, I would say we've seen no stress build up or anything happening on corporate and SME, and we believe we hardly have any credit costs there, and we expect the same to continue in the future too. As far as housing is concerned, which is the largest segment for us, the housing finance company, our credit costs for the year have been 10 basis points. And, in fact, if I look at the trends, I see no reason why things should be any different going forward. As far as retail is concerned, you know, that's the place on the unsecured side where we had seen stress in FY25. And there, as we had mentioned before, we started seeing a lowering of credit costs happening from Q2. Q2 was lower than Q1, Q3 was lower than Q2, and Q4 was lower than Q3. So in all of them, we've seen an improvement. And same is true for motor finance. In fact, we had a great quarter. Quarter 3 was good, but quarter 3 was even better for motor finance. I would only say we need to watch for quarter one and quarter two because quarter three, quarter four usually are better. But looking at our early indicators of the quality of book we have created, we do not... The question on bounce rates were concerned, we were also concerned about it, and we looked at the numbers for the month of April. And if I have to be very honest with you, actually we have seen a bounce rate coming down in April. on collection starts before the banking happens. And from that perspective, we are very focused on bringing down bounce rates. So if I have to tell you, bounce rates have been coming down quarter on quarter, and that is where our focus is. Because if we can arrest it at the upfront stage, then I'm in a better position as far as collections are concerned to manage We will go forwards.

Got it.

This is very helpful. Thank you so much, Radheem. And all the best.

Thank you. The next question comes from the line of Nishin Chawateh from Kotak Institutional Equities. Please go ahead.

Hi. Thanks for taking my question. You know, looking at, you know, your growth trajectory ahead, the single largest segment is home loans, which is, you know, which has grown at around 16% this year. So, you know, given the fact that you're looking at around 23% to 25% loan growth next year with, you know, probably the share of retail going up, I would expect that, you know, home loans being the largest segment, you know, probably needs to grow at a faster pace than where it is today. We do understand that personal loans and business loans will probably accelerate given the momentum that we are seeing. But what kind of loan growth do you really see for home loans? And why is it sort of in mid-team levels right now?

So, let me cover it in parts, Nishin. You know, we look at home loans in some distinct segments. One is obviously the prime. The other is affordable housing and the third is micro housing. And if we look at these products, our prime home loan and lap is growing at 21 percent plus. Our micro housing is growing at over 50 percent and our affordable housing is growing at close to about 25 percent. So, these are very healthy rates for us. In fact, over the last, I would say, six months, and also as per our plan for next year, we are adding a fair number of branches or going to more locations, I would say, for affordable housing and micro-housing, and we expect these segments to grow more. Our approach, as far as housing is concerned, to also look at a new segment, which… Which is the near prime segment. Because we do not want to compete at the 7.25 and 7.2% rates being offered by other players. Our approach is to make the near prime bigger, make the affordable housing even bigger and make the micro housing also bigger. So that we can get the right names along with the right credit costs. Anyway, the operating efficiency is kicking in, you know, virtually every year, and you're seeing an improvement, and we do believe that we have an opportunity to further improve it using all our initiatives on technology. So you will see a bigger increase in each one of them, and that's our plan for the next year.

Oh. Got it. And within the housing finance subsidiary, what would be the ratio of home loans and LAP? I believe you need to have around 60% home loans. So, I believe that incrementally the growth in home loans and LAP should be at a similar proportion. Assuming that you need to maintain the same 60-61% going forward. Now, this year growth in home loans was around 16%, LAP was 36%. So, you know, probably need to catch up on that. I think that's what I was kind of coming to. Correct.

You are right. You are right. You are right. And there, within that also, Fair point.

No, I think the point I was coming to is that is it something that you are seeing more BT outs which could be arrested or is it something that you probably need to expand more to really scale that up? I think that's what I was coming to.

So, Anishin, what happens, and you know this market well, you have seen this for a very long period of time. Whenever the rate drops happen, the pressure on BTs increases. And when the rate drops are not there or rate movements are less, The BT pressure reduces. So last year, the BT pressure was very high. While we lost, you know, portfolio also, we did gain a portfolio where BTs came to us. So it was true on that. But what we have, what we are looking at in FI27, one, we do believe that the BT pressures will be lesser in FI27. And the other thing is, we are very focused. On doing our bit on originating more. So we are expanding to more branches. Because today, while at Tata Capital, we may have 1,400 branches. Within housing finance, we are there in just short of 400 locations. So we have ample opportunity for us to also geographically expand, which we are doing. The work started six months back. We will see the results of the same. It started to show in March, and they will continue to show more in future. So it will be more through geographical... We believe less pressure on BT in FI27.

Got it. This is helpful. And just, you know, on, you know, as you move, move ahead, you know, from April to May and, you know, so on. Are we sort of, you know, seeing any tightening, you know, in the screens of, you know. The way the overall macro is, and I think you've pretty well highlighted some of the challenges in your opening comments. Are you sort of tightening the screens? Would you kind of say that maybe for a quarter or so, the pace at which your unsecured book is going, you may want to kind of mellow down a bit? I mean, I understand the data points are very clear. They're not showing anything, but given the way the overall macro is, are you sort of taking a pause before leaping ahead or business just rolls as it is?

So, Nishin, our approach is as follows. One, we look at what's happening in the market. As I mentioned to you, our list, credit and business team virtually spend every week time on reviewing how things are progressing. The biggest segment which we are looking at is the SME segment and the commercial vehicle segment. How they pan out, especially if the fuel rates also go up, they may affect commercial vehicle segment. So, what we have done, right, I would say a month back or so, is look at in which sub-segments of this. Meaning, either look at lower leverage or look at higher credit score or look at tighter scorecards. So, we have looked at within MSME in which sub-segments we should do so. That communication has gone to the credit team. Approach is that we should. These sub-segments, for the others, we should continue to watch, but continue to also grow. So, at the moment, very difficult for me to say whether we will see an impact on this. Because we are also expanding geographically, so we are hoping...

Got it, this is helpful. And just last one, even on construction equipment, I think, I think you seem to have tightened the bit, right, this quarter. So, or is there just too much reading on the person?

See, when I, when I, Nishin, say commercial vehicle, for me, I look at commercial vehicle and construction equipment together in a similar, with a similar lens, because there is a fair amount of overlap between the two.

Sure, got it, got it. This is very helpful. Thank you very much and all the best.

Thank you, Nish. Thank you. The next question comes from the line of Shreya Shivani from Nomura. Please go ahead.

Yeah, hi. Thank you for the opportunity, and congratulations on a good set of numbers. I had two questions. My first question is on the personal loan and the business loan segment. So the GS3 numbers that we've shown in our table over there, exactly going back to the point, sir, was making that there are certain sub-segments probably you are looking to probably be slower in. Fair to say that probably PL and BL would be one of those segments. Qualitatively, if you can make comments around which kind of customer segment or business profile are we seeing stress or are we continuing to see stress on. And my second question is on the... Sorry, it's only fee income. Just a clarification over here. Your fee income for the corporate book would obviously be at a lower rate versus, say, if your SME and your retail book would have grown, right?

Correct. But the corporate book fee not only comes from the loans but also comes from syndication. So, I won't say that it is better.

Right, right, because it seems like that has slowed down a bit for fourth quarter, so I just wanted to understand, is it because the corporate saw the retail probably didn't grow as fast, or how should I understand the fee and commission line item?

Sometimes what may happen is you may, if you have, you know, some reimbursements, some amount of peaking which may happen, that may also lead to as a percentage. It's a different number, but if I look at our overall fee, it is the same in quarter 3 versus quarter 4. It was about 1.1% and still remains 1.1%. So it is the same, the trend is the same as far as fee is concerned. We have not seen a drop. Now what was your first question was? PL, PL, PL, PL. So, you know, PL and BL are two distinct segments. PL is largely to salaried employees and BL is to self-employed segment. And in each one of them, actually, we have seen a drop in slippages. And if you notice our slide 16, it actually shows that the slippages in PL are much more because PL is a segment which has suffered more. As you would remember, two years back, than the BL segment. So, the visible, more visible improvement is... Within that are concerned, you know, we have a huge... Not only... and the tertiary impact which is there because of Also, it gives... It's something which we anticipate, but we also look at what is happening on the ground. And if there's something more to be done, the whole idea is how quick can we be in communicating and taking an action on that.

Right, that makes sense. Just one follow-up on your branch strategy and your disbursals per branch. Obviously, with the kind of addition that you had done over the past three years, it was on a declining trend. Optically, it looks that it has picked up this year, but is it fair to say that the retail disbursements as per retail branch has picked up or this is just looking optically better because their corporate and other book has scaled up? Will the trend be, are you still increasing on the retail disbursement per branch?

So, if you look at the year which just went by, we did not add too many branches on the retail side. And that will obviously, with our disbursements growing, it will always mean that per branch our numbers have gone up. Our approach over the last year, which we had stated before, was that we may not have all products present in all branches. So our effort before we add new branches would be how can we populate more products in each branch so that we can, I would say, leverage on the cost which we have already incurred for the branch. Going forward also, while we are expanding, we first look at can we get in the branches more products before we physically expand. But we will, you know, we didn't add new branches in any significant way in FI 26, but in FI 27, it will not be the pace which we have done over the last three years, but it will be a reasonable number of additions to our branch network, I would say, going forward. So we can expect a 10 to 15.

And, sir, in your branches, your 350 housing branches and the remaining 1477 total branches, the products can overlap, right? Some of the retail products can be present in the housing loan branches, right?

Oh, yes. This is exactly what I am saying. Rather than going to new locations, we are adding more products in each branch, which is also helping us on the operating efficiency.

Right, right. Yes, this is very helpful. Thank you and all the best.

Thank you so much.

Thank you. Ladies and gentlemen, we request all the participants to limit their questions to one each per participant and rejoin the queue for any follow-up questions. Our next question comes from the line of Avinash Singh from MK Global Financial Services Limited. Please go ahead.

Yeah, good evening. Thanks for the opportunity. Rajiv, I mean, if I look at 28 profitability, that's a 60 basis point of, you know, movement from where we are today. Now, broadly, 25, 30 basis point, it seems you are explaining from the cost of income and where today our credit cost is flat. So that leaves kind of nearly 50 basis point to be explained by the, you know, Now, here are a couple of questions. I mean, if you look at the credit cost side, today, I mean, our housing is at 10 basis point. Now, if you go more into, you know, the affordable and near prime, is that 10 basis point looks kind of a sustainable? Of course, there is going to be overall benefit from you on the motor vehicle side, but then we're not going to increase this price. So then, at the aggregate level, the direction you are taking in the housing as well as in the unsecured side, this kind of, you know, cost, is that kind of, you know, manageable because that's kind of an event for a diversified lender like you, pretty, pretty, under 1% is kind of not seen in, you know, the non-banking financial side. And secondly, related to that only, your OPEX, I mean, if you kind of for the area where you want to grow more, whether it's a housing or unsecured, again, these are relatively more OPEX intensive. So, I mean, so you're already pretty pretty efficient in cost to income. You still think that, okay, this improvement is kind of doable.

So, Avinash, let me... Thank you very much. So even if you look at the FI 26 numbers, To bring down faith. Operating cost is concerned. You are seeing the advantage. I did mention that we are very focused on using AI. In fact, our approach is this, that virtually we want to train almost all of our manpower to understand the advantage. Because of digitization, AI, and other things, we do believe that the estimate which we have taken on operating costs, if all goes well, we may be able to do even better than that. But at least I'm sticking to only what we have communicated. So we believe there is an opportunity for us to bring down our costs. Thank you very much. Thank you. We are, in terms of origination, among the top in terms of different affordable housing companies and we do originate at a slightly lower cost, pick up a better quality because our cost of fund and our operating leverage allows us to do so. I hope, Avinash, I answered your question.

Yeah, yeah.

Thank you. Thank you. Your next question comes from the line of Shubhraanchu Mishra from Phillip Capital. Please go ahead.

Hi, good evening. Thank you for the opportunity. So, the question is around the reconciliation of the LAP number. When I look at the LAP number above, which is somewhere in one of the slides above, it's at around 38,000 crores. And when I look at the Tata capital housing, it's at around 17,000, 18,000 crores. So, just wanted to understand what is the difference between the two and why are we running two different LAP books? Second is, you did mention about the OPEX, but we're guiding around 23%, 24% kind of growth levels in 27%, 28% or in the medium term. How do we look at OPEX growth or maybe OPEX to assets going forward in the next one, two years?

So, if you would, you know, look at our lab book, we do Loan Against Property in both the books, the NBFC and the Housing Finance Company. We feel it's a large market, and in terms of portfolio quality, both the portfolios have done very well, and we do believe that both these entities have We have the opportunity to do so. They are two separate teams which work on it. We just ensure that credit policies, on credit policies, we don't compromise. So we want to stick to that strategy and want to continue to do so in the future too. As far as your question on optics to assets is concerned, If you look at our guidance for FI 28, we have said that cost to instruction is between 33% to 34% and we do believe that is achievable. See, what is happening now, if you look at NBFCs, or thanks also, I think, but in NBFCs, 50% of the cost, close to 50% of the cost is people cost, and the balance is the other cost. As you know, other costs... Obviously, a lot of efficiency is coming in in them because of, you know, I would say digitization, automation, robotization, using robotics or Gen AI. So you're clearly seeing the benefits. As far as people is concerned, what we are realizing that increasingly, the only two places where we feel any significant addition on people will happen will be on sales and collections. Rather than all functions, because a lot of automation... in the other areas.

If I can just have one follow-up question in the lab, if we were to book up a lab today, how would we decide whether it gets booked on the NBFC book versus the SSA book? And the way I look at it, this is a duplication of spots and team at both places, right? Having two separate teams, having two separate policies. So, you could just take.

Subhanshu, as far as policies are concerned, Also, overseas. We are dedicated people for risk in Tata Capital Housing, but the Tata Capital Risk Team oversees that. On the policy side, as far as booking is concerned, we have two... Even the ops is separate. So it's completely distinct operations. So what is originated by one is booked by one. What is originated by the other team is booked by the other team. And so to that extent, as far as training is concerned, we ensure that similar training is imparted. So from a risk in the credit side, we try to ensure uniformity there. But in terms of origination, Thank you.

So, in Bombay, both the teams are operating, or maybe in Gunturk, the same team, both the teams are operating, or we have distributed geographies.

Correct, correct. No, there are overlapping markets. There are distinct markets also, which exist, because the two teams may be present, the number of locations they are presented could be different for the two teams. In certain locations, they will be...

I have a few of the questions. I'll take this offline. Thank you so much. Best of luck for NCEO quarters.

Yeah. Just a minute. I think my colleague Saros, who heads the housing finance company, wants to add.

Just one thing I would like to mention out here that when we are in the housing finance company, the team which sources the home loans is the same team which sources the LAP also. So there is, you know, you have a very strong productivity improvement when you, because at times you have a self-employed customer, you have a salaried customer, and at that point of time your productivity improves because you can go in For multiple loans for a particular customer. So from that perspective also and what Rajiv added, it makes a lot of sense for the same team which sources the home loans to also look at LAP because it improves the productivity on the field.

This was really great. Thanks. I'll still take a few questions offline. That's a plus. Thanks. Sure. Sure.

Thank you. Your next question comes from the line of Avijit Tibrewal from Motila Loswal. Please go ahead.

Yeah, hi, good evening. Am I audible?

Yes, yes, yes, sir. Yes, sir, you're audible.

Yeah, yeah, thanks, sir. Hi, Rajesh. Just two follow-ups on what you have shared with us in this learning school. First thing is, I mean, a couple of times you mentioned that we have not seen anything alarming in either SME, CV, or unsecured PLBL segments in the month of April, which is very good to hear. But just wanted some more nuance around this. When you speak to the field teams, are they telling us that the customers, the businesses, the SMEs that we serve, they're not impacted by the war at all? Their businesses are not impacted by the war at all? Or is it that there are already some impact, first, second-order impacts that have started coming now, but just that the customers are maybe resilient and they've been paying their EMIs? In the month of April, just like we saw in the month of March, sir. So, that was my first question. And, yes, sir, you want to go ahead, please, sir.

So, what I wanted to say is that, you know, the way to look at it is two ways. One is where certain markets you see, you hear about, whether it was Morbi or whether it was Suraj or certain markets which come into the news where you look at those things. The first thing is to talk to those business as well as collection teams in those markets to see whether we have had any impact. Generally, on the portfolio, what are you seeing when you are getting a feedback from your own teams who are talking to the clients. There are obviously customers which me or my colleagues also. Based on the feedback from all of them. in terms of helping them out in sourcing of raw material and so on and so forth.

This is useful, and then the follow-up I had is. Earlier in the call, you had shared and guided that FY27, we expect your cost of funds to be lower than in FY26. So, I'm just trying to understand you also acknowledge this, and a few other large NBFCs that we speak to have acknowledged that March, particularly, the cost of warings were significantly higher than the portfolio cost of warings. So, do you think March was an aberration of sorts and because of some tightness in liquidity, the cost went up and then? In April, have they reverted back? Or in April, the cost of borrowings are at similar levels as in March? And subsequently, if incremental cost of borrowings are coming in higher than what we saw until, let's say, a giant Fed, then what is it that is telling us that cost of funds in FY27 can be lower than in FY26?

So, you know, I would say, We should break it up into two parts, the stock and the incremental. If you look at the... So, when the benefits started dropping, the benefits started accruing over the year. It is not that every lender's or every borrower's cost of fund is linked to 100% to repo rate and it changes immediately as repo rate changes. So, there is, for example, if you have already raised three year NCDs, then you will Replace them with a fresh set of NCDs when the previous ones mature. So that is when on maturity the incremental cost will determine. Based on the same, we do believe that monies which have been raised in FI 26, We'll keep running. May not need to be fully. Second is... As I said, always. If we feel that cost of funds will grow or cost of funds will come down, we will also have to pass it on or take it or increase from our borrowers.

Got a cut, sir. That's all from my side. Thank you very much for patiently answering my questions, and I wish you and your team the very best.

Thank you so much, Ali.

Thank you. Your next question comes from the line of Kunal Shah from Citi Group. Please go ahead.

Yeah, thanks. So most of the questions have been answered, just a couple of things. Firstly, in terms of the corporate lending, if you can just let us know the profile of it, at what yield it is happening compared to that of the overall book yield, and what would be the average maturity of this portfolio, that would be helpful. And secondly, as you indicated, maybe any which ways there were some of the industries which we are closely monitoring, but if you can quantify in terms of maybe there would have been the red, amber, and green, and what would be that proportion within the overall SME pool which is getting closely monitored or which are vulnerable to some of the higher input prices or the energy-related sensitivities or the exchange volatility. That would be really helpful within the overall SME portfolio as well as the other portfolio. Thank you.

Thank you. As Conal, as far as corporate is concerned, Vanilla, funding.

So, sorry, just the question was, yeah, maybe I understand in terms of the segments which we operate. I just wanted to know which segments are driving this growth if there is like, say, the increase which has happened in the overall portfolio of, say, almost 15,000 crores over last one year or, say, 5,000 crores in this quarter. Which particular segment is driving this growth?

So, it would be well spread out. I would say it's there in clean energy. Where we are seeing there is a demand, a lot of demand for credit where new projects are coming up. It's there in developer finance and it is there in, you know, you name probably the top 10 corporates of the country and half of them will be there. So I don't want to name clients, but, you know, there is growth happening. As far as yield is concerned, Any other business may give us a higher yield. In corporates, the yield may be closer to maybe 11%. In developer, it may be closer to 12-13%. But more important, you know, their return on assets is very good. Above can be much higher also, depending on the opportunity and the tenor and the fee. So our approach is to look at ROAs which are strong. Thank you.

Okay, so in quantification, that would not be large out of this 75,000 crores of SME, what we are watching closely, that would not be a big pull?

No, no. See, because the biggest segment for us is supply chain, for example, which is, you know, 60 to 120 day funding.

Got it. Got it, yes. That answered the question. Thank you.

Thank you. Your next question comes from the line of Gaurav Purohit from Systematics. Please go ahead.

Hi, good evening, sir, and thank you for the opportunity. My question is around the motor finance review. So, there was a legacy borrowing of around 25,000 to 26,000 in FY25. I want to understand how much of that has already been replaced and what preparation is pending after the merger. That is question number one. And second question is around the underwriting changes that you have made in the motor finance review for the merger. Particularly around risk filters and maybe the rejection rates that you're seeing there because of the changes, the pricing discipline that you're trying to invite there. And if you have made any dealer changes in the dealer incentives purchase. So these are the two questions. Thank you.

So, Gaurav, as far as both the questions are concerned, one as far as rebricing is concerned, You know, that activity we completed in the first few months of the merger. For that, we didn't need to, we didn't take much time. The only place where I would say it took maybe six to eight months was where the reset date was after that period. But whenever we didn't have challenges on the reset date, either we repriced or we repaid it and borrowed it afresh from someone else at a lower rate. So, repricing is all done during the last financial year. FY26, I would say 95% would have been done. Anything which is left would be only because the reset date is different. Otherwise, it's all done. As far as underwriting is concerned, a lot of changes were made in the underwriting policy in number of ways. The policy change, we looked at score cuts. Thank you. Also, on the credit. Thank you. We can detect things. We do a fair amount of monitoring on this, which makes us feel good about what we have originated over the last, I would say, 15 to 18 months. As far as rejection rates are concerned, actually, we are not a big fan of this whole thing called rejection rate, because it really depends on how you measure it. Our whole objective is at the front end. Can we put in certain controls that things which are definitely going to get rejected, we don't even allow them to come into our system. So that the sieving happens at the front end. And if the sieving happens at the front end, then your rejection rates could be different from the overall rejection rates. So our effort of the team there is to put a sieve as early as possible and measure it more by what you are seeing on the book. In terms of bounce rates or early 30 plus and so on and so forth.

If I can squeeze in one more follow-up question. So, sir, this year has been basically de-grown the book, Motor Finance book. So, what is the kind of message that you are passing to the dealers or your salespeople are passing to the dealers given that a lot of churn would have also happened in the front-end team after merger, like you said, you were rationalizing and out. So, in terms of market share, how do you see that progressing? Because there is already a lot of competition at the dealership. A lot of the peers are also giving trade finance to support their volume. So, how do you see the entire situation, and would you be doing trade finance too, just to be in market share?

So, I can basically admit the market is very competitive. Actually, there is no product in India in financial services where you don't see competition. As far as the risk and credit is concerned, we will decide what to do. And what we want to originate. The sales team will have to work harder to originate based on. For us, in the motor finance business, actually our volumes had gone down even before the merger had happened. And if you look at from the last April, May, we have only been growing now. So what dealers are seeing is that the phase of The volumes going down, the monthly volumes going down is over. Now for the last 6-8 months, they are only seeing... We have been in this business of providing credit to dealers for the last 10 years. When we were not large in commercial vehicles, we still were We basically are leveraging the same to do more of retail business.

But that would be slightly margin dilutive, right, sir?

See, if you look at the channel finance business, our current channel finance business gives us an yield of 11% plus. And that is usually, I would say, 60 to 90 day business. So if you look at the margins in that business for liabilities of that profile, there is no reason why we will not make very healthy hours. It's a portfolio yield. There will be dealers whom you will be offering a slightly lower rate. There will be dealers from whom you will be offering a slightly higher rate also. Got it, sir. Thank you very much. Thank you so much.

Thank you. Your next question comes from Adway from GoDigitLive Insurance Committee. Please go ahead.

Most of my questions have been answered. Just one question on our FY28 guidance. So for FY28, we have guided for an RWA band of 2.5 to 2.7%. I understand that the cost to income would play a crucial role in us meeting that guidance. So, in that context, I just wanted to understand if you could give some color on the levers that we are looking to bank on, you know, to bridge the gap between the current cost-to-income versus the target, by a faculty.

You know, one is we've mentioned that we want to leverage our existing branch infrastructure more efficiently to get more products per branch, which will help us. Two is something which we religiously drive within the organization is to look at how we can digitize more, how we can use data more, how we can use unstructured data more, and now it is all getting ingested more through Gen AI. So a lot of projects on that side which we are doing, which are helping us. And third is clear benefit of scale. As your scale improves, that also leads to benefit on our cost to average assets. So it is going to be all of them, but I would say the biggest is obviously technology, digitization, and now increasingly more AI being used.

Got it. Got it. That's helpful. And just one quick follow-up. So, initially, you gave some important color on our loan book mix and how we are looking at respective chunks of our books in terms of asset quality. Just one slightly forward-looking question. If one observes in the past few months, You know, there is some fair degree of, you know, layoffs in IT services space. So, in that context, from our Prime to Chami Prime Home Loom book, I wanted to understand if we are tracking any particular early warning indicators or how we started to price in this particular risk while doing incremental disposements, how we are looking at it.

So, if you look at You know, our approach there. One is, this is something, this is not something new. This is something which has been spoken about for the last, I would say, 12 to 18 months. And right from that stage, we had put some enhanced due diligence for this segment. And we've been following that. The other is, you know, a lot of the, I would say, The call has been there for larger companies. Where, probably, you know, loans have been given out at a single digit or close to single digit, and we do not have a very high presence in that segment, per se. That is where, I So, when we have looked at our personal loan portfolio, which would include all salaried employees, that's a number which I had referred to earlier also, that our bounce rates have been coming down. This is the first indicator of what it is.

Thank you.

Thank you. Your next question comes from the line of Omkar Shinde from A Capital. Please go ahead.

Hi, thank you for the question opportunity. I just have one clarification and one question. First is regarding the aggregate yield that you have given in the annexure, that is the AUM yield or the disbursement yield? So the AUM yield has dropped by, say, 90 pieces during the year. So the question related to that is, I mean, you mentioned that we are, we saw a little bit of tightness in the market during April and early parts of May, early parts of March. And because of the incremental borrowing costs are higher. But the regulator, RBI, NHB, they are all behind. HFCs and BFCs to pass on the rates and move the cost towards the customers. So my question is twofold. One is how much of the book is fixed or floating? Because if it is external benchmarking floating book, then we can easily move the needle on the pricing and therefore not get impacted too much by the cost of borrowing. That is part one. And what is giving us the government? Because, for example, if even our affordable housing book is at slightly better... Our customers of the affordable segment, then one of the peers that had recently announced was somewhere in the region of 11.5% incremental yields, which is, are we in that same ballpark or are we slightly higher? Because structurally, if the yields are going down, then how do we see how will it be possible for us to maintain better ROAs or even increase the yields if There is a new call.

So, as far as Yelza, Arkansas. The drop-in cost of funds. But the other point, which I'll mention to it earlier, What comes out more clearly is that when you look at the two-point average versus daily average, on a daily average, we are seeing that the drop in yields is not more than the drop in cost of funds, while on a two-point average, it looks more than that. And that's the reason your net income will increase at a faster pace than your average book. There is a pass-on of yield which is happening because of interest rates coming down, but so is our cost of funds. That is also coming down. Sometimes a daily average gives a better picture than the two-point average. Yes, on margins, but the other point which I want to say is that what we had mentioned earlier that we are trying to increase the mix of products towards more high-yielding products, which I would say would be very different in FI27 over FI26, because in FI26, our unsecured book did not grow any significantly. Since the disbursements have started to grow, you will see the book growth happening in FI27. And the second thing is, Motor Finance also, which is a high yield book, was de-growing in FI26, which will not happen in FI27.

Umkar, I could just add here that in the housing finance, and particularly the affordable, more than 98% of the book is floating. One thing which I would like to speak about here is the yield that you spoke about on our affordable segment is, for the last financial year, is around 12.10 on the book. And our NIM plus fee, which was in the region of 6.7, has improved to 7.6 in this financial year. So we've been only able to grow our NIM plus fee in the affordable housing finance business.

So, and just to add on to what Saros mentioned, if I look at my greater than one year liabilities, And also more than one year, and we looked at the proportion. Basically, they are more or less same.

Understood, understood. That's good to hear that, I mean, both the interest rate and the floating fix is good, and our yields are also materially higher compared to the peers, which is a great collaborative.

Thank you. The next question comes from the line of Vikram Subramanian from Marceline Ways. Please go ahead.

Hello. Am I audible? Hi, sir. Thanks for taking the question, and congrats on a good set of numbers. Very glad to see the growth and the asset quality turnaround. Most of the questions have been answered. Just wanted to clarify a little bit more on GILs, specifically because you mentioned the daily and the two-point average a couple of times. Just to clarify... On both the yields and on cost of borrowings, the daily or on yields, the daily average is a materially higher number than the two-point average. This is what you are mentioning, right?

Yeah, yeah.

While on cost of borrowings, it is not as much of a delta. Is that the right understanding?

No, no, no. There is obviously on yield, the delta is higher than cost, but the delta exists in both places.

Yeah, exactly. So on a daily average basis, the yield fall is much lower than the cost of borrowing.

Correct. Correct.

No, no. So there...

Yeah, yield fall is lower than the cost of borrowing. Got it. Got it.

So, just extrapolating that mathematically, I know it will be difficult to quantify, but just asking directionally, if I extrapolate that, just mathematically, 1Q or 1H yields should see a reversal immediately, just based on that, is that the right understanding?

The gap will reduce between the two-point index. Vikram, can you come back on the question once more? It's not very clear.

Because the daily average of yields is higher than the two-point average of yields, 1Q yields on a two-point average basis should be better than 4Q yields, right? So meaning I'm saying there should be a reversal in the two-point average number immediately. Assuming everything else remains the same. Obviously, we have just started 1Q. But assuming everything else remains the same, that's how it should move, right?

Yeah, yeah, yeah.

Got it, got it. I just wanted that clarification because there is just quite a bit of movement, but also your explanation was quite concise on that, but just wanted to clarify it a second time. Thank you. Thanks a lot.

Thank you. Thank you.

Thank you. Ladies and gentlemen, we'll take that as a last question for today. I now hand the conference over to the management for closing comments. Thank you

so much, and thank you, everyone, for joining the call. I think from our perspective, you know, a lot of good things happen in FI26. And we were happy that we could meet all the guidance which we had given. In fact, the way we ended the last couple of quarters, we do believe that the opportunity for us to grow and to move towards our guidance in FI 28 is very strong. In between, this whole thing on the war has happened. We do believe that in certain segments we need to be more cautious, and we are already doing so, but despite that, we believe because of our presence in almost all products and opportunity to add some new products, too, plus the opportunity to expand geographically, we are well placed to meet the guidance which we have. Thanks, everyone, for the faith which you've placed on us. And I just want to tell you that we are all working.

Thank you. On behalf of Tata Capital, that concludes this conference. Thank you for joining us and you may now disconnect your life.