Repco Home Finance Limited (REPCOHOME) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to Repco Home Finance Ltd. Q1 FY27 earnings call, hosted by Yes Securities Ltd. Please note all participants are currently in listen-only mode. There will be an opportunity for you to ask questions following the conclusion of the management's opening remarks. Please note that this conference is being recorded. I now hand the conference over to Mr. Rajiv Mehta from Yes Securities. Thank you, and over to you.

Yeah, thanks. Good evening, everyone. Thank you for joining this Q1 FH27 conference call of Repco Home Finance. From the management team, we have Mr. T. Karunakaran, MD and CEO, Mr. P. K. Vaidyanathan, whole-time director and chief development officer, Mr. M. Raja, chief business officer, Mr. A. Palapandi, chief operating officer. Mr. Ankush Tiwari, Company Secretary and Compliance Officer, and Ms. Shanti Srikant, Chief Financial Officer. With this, I hand over the call to Mr. Karuna Karan for his opening remarks, post which we can open the floor for Q&A.

Yeah, Mr. Thanks, Mr. Ajay. Good evening to everyone. I would like to welcome to the evening call of our company for the quarter-ended 30th of June, 2026.

First of all, I thank you all for joining in this call.

The detailed financial results and operational highlights have already been shared in the investor presentation and published earlier and also available in our website. For the benefit of attorneys who have not had the opportunity to review the financials, I will brief the performance of our company before we move into Q&A sessions. Our sanctions stood at 938 crores as against 907 crore in FI 26, and disbursements at 843 crores as compared to 829 crore in Q1 FI 26. It's in the month of April. We have, as a routine thing, we have transferred a few branch aides and second line offices.

And in the month of May, we have promoted

a eligible candidate to next to CADR. This is the process every year we used to contact this year, which is, this process affected our disbursement in June quarter. Now, our people are settled in the new places of posting. Disbursements are happening as per our expectations. July disbursement and disbursement from 1st August to till date are in line with our expectations. And AUM stands at 15,990 crores as end of 30th June 2026. We have seen 8.9% year-on-year growth in the AUM. What I mentioned, the 15,990 crores is excluding a dispersed cheque, but not realized. Almost 57% of my book is coming from Tamil Nadu. Our book is well diversified. We have not seen significant shift or changes in salaried and non-salaried class profile of the borrower. The ratio of exposure between non-salaried and salaried segments stood at 53.5% and 46.5% respectively. The share of non-HL, that is home equity loan, is stood at 29%. And home loans stood at 71% as end of June 2026. In respect of book quality, we continue to maintain a strong focus on asset quality. As end of the June, our GNPA stood at, in absolute terms, stood at 427. 27 crores, with the GNP ratio of 2.7% compared to 405 crores and 2.6% in the previous quarter of the same period. On year-on-year basis, we have seen significant improvement in asset quality. In absolute terms, NPA has declined at the 485% of the June, gross NPA was 485% of the June 26th. June 25th, our gross NPA stood at 425 crores. We have seen substantial reduction in NPA on year-on-year basis. In terms of percentage also, we have seen improvement on year-on-year basis. Our systematic and regular follow-up would result reduction in NPA in going forward. Our NPAs and overdue in new loan book is under control. Coming to the provisions, the ECL provision, the cumulative ECL provision, as saw on 30th June 2026, stood at 352 crores. Our PCR, that means stage 3 provision to stage 3 gross assets, is about 54%. Coming to stage 2, our stage 2 numbers are at 7.2%, broadly stable, compared with 7% in the previous quarter, and showing a significant improvement from 9.7% a year ago. In stage 2 and as well as NPA accounts, we are recovering, but the recoveries are not sufficient to upgrade to account as a standard. We are making a substantial recovery in both stage 2 as well as stage 3, along with the penal interest, other charges, we are recovering. But, but recoveries are not sufficient to upgrade to assets to next, I mean, higher category. Coming to the borrowing side, the cost of funds of the company stood at 8.3%. The borrowing mix remains at 86% from banking system and 6.2% from NHP and 4.8% from Repco Bank. And out of total borrowings, the NCD contribution is about 1% and about 0.5% from CPs and PTCs. During the current financial year, we have received a refinance support from National Lowsing Bank to the extent of 600 crores. Out of 600 crores, we already availed 106 crores during the first week of August. Remaining amount will be utilised shortly as and when we need funds. Coming to the profitability, our net interest income increased to 216 crores as against 207 crores in last June. NIM for current quarter stood at 5.4. We are able to maintain a 3.4% spread for quarter-end of June 2026. Our net profit stood at 114 crores as against 108 crores in the previous year. Our ROE and ROA stood at 12.7% and 2.9% respectively. We have taken various steps to reduce our cost. If you see the numbers, we have seen reduction in cost year-on-year basis as well as sequentially. Our cost-to-income ratio stood at about 26 percent. As end of June, our credit cost stood at 0.2 percent. During the current quarter, we have not opened any new branches. Our branch count stood at 242 branches. Out of 242 branches, about 32 satellite centers we are having. For current financial year, we want to open another 12 to 13 branches. And the majority of the branches will be in places like AAP, Tilungana, and Karnataka, and this side of our country. This is our performance of June quarter. Going forward, our priorities will be accelerate the disbursements, our transfers and promotion exercise slightly affected our disbursements. Now our people are settled. So we will accelerate our disbursement while growing. We want to maintain the quality in the asset. We don't want dilution or compromise in the quality of asset for the sake of growth. We will improve our operating efficiency. We want to diversify our liability side. We got a 600 crore refinance. We are negotiating with our bankers for reducing our rate of interest. This is our plan for this current quarter. Guidance, in respect of guidance, I stick on guidance of what I have given in my last phone call, that is 5,000 crores disbursements and 13 to 14 percent Growth in the AUM and reducing NPA by 40 crores. This is the guidance what I have given in last count call. We are sticking on the guidance whole year. For current quarter, we are targeting 1,200 to 1,250 crores disbursements. And we set a target of bring it down June NPA to last March NPA level. That means our June NPA was about close to 427 crores. This number we want to brought it down to around 400 crores. This is what we want to do it in current quarter. We thank each one of you for showing interest in our company. Just now, I open the floor for Q&A. Thank you so much, sir.

Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question, may click on the raise and icon from the participants tab on your screen. We request participants to restrict to two questions each, and then return to the queue for more questions. To rejoin the queue, you may click on the raise and icon again. We'll wait for a few minutes until the question queue assembles. Ladies and gentlemen, please remain connected. We'll take a first question from Guru Moorthy of HNI. Please unmute your connection and go ahead. Yes, hi, can you hear us? Guru Murti, can you please go ahead? Would you like to try it one more time? Can you unmute your microphone once?

Yeah, I'm audible now.

Yes, please.

Okay, so I just wanted to know, if I check the long term growth of Repco Home Finance, I find it disappointing, because the starting rate of interest of Repco Home Finance is something like 11% for a lender. Am I right or wrong?

Sir, by lender you mean the rate that we give to our customers?

Correct, customers.

Sir, we start from 8.75 and our average is 10.5%, sir, for housing loans.

But you know what I find out across the home finance companies, some banks are giving like average rate of interest on home loans is something like 8.5 to 8.75%. And with respect to Repco Home Finance, I find it...

It's purely based on cost of funds, sir. It's purely based on cost of funds.

Agreed. No, no, no, no. I'm not connecting the cost of funds at all. I'm just saying that, let's say, for example, if I'm a customer, I come to Repco, I may end up paying 10.75, 11% also in certain cases. But if I go to a general home finance company, I will definitely get lower rate of interest.

Sir, the rate of interest is fixed based on your income, rating, civil score, and everything. So many factors are there.

I agree. So, it depends on the customer.

Sir, first of all, the rate of interest fixed on what customers depends on the cost of borrowing of each institutions. Bank's cost of fund is entirely different. They are having a free, I mean, they are having a casa for which they are paying around 3%, 3 and a half percent or something like that for... For our company, it is not like that. I am borrowing from the banking system. I am borrowing from the National Lowsing Bank and renting. So, the average cost itself is for us up to 8.3 to 8.35. In this scenario, renting at PSU rate, it is not at all possible for me. It is not at all viable business for the company, number one. Number two, my set of target customer is not like PSU kind of target customer. PSU set of customer is entirely solid, pure solid class customer. So target customer is not like that. They are working in an unorganized sector. They are working in the business, doing the business. They will not have a sufficient income proof to show their cash flows and income. That kind of borrowers I'm targeting, number two. Number three, the pricing of the ultimate pricing depends on the... Profile of the customer on risk basis. I'm ascertaining the risk of the borrower based on 16, 17 parameters. Based on that, price will be fixed. This is the system what we are following. Even some of the housing finance companies, NBFCs are offering at 17%, 18% people are going.

That is actually, because I have taught economics degree in post-graduation, I find it amusing to hear this, that people are going for this. That is, again, just like an unregistered moneylender. One more thing I wanted to ask. If Repco Home Finance is not able to give returns to its shareholders, Why? Is there any restriction on you to diversify your business? I'll give you an example. If a shareholder has subscribed to IPO of Repco in 2013, and you compare the current market price, he has hardly made any money. Now, with respect to myself, I am one of the top 100 shareholders in the company. I hold a very high quantity of shares in Repco Home Finance because I believe that Repco may also diversify into other lines of business, which I find it could not do. So it is following the same old system of taking it. From banking system and passing it on with a margin of two to three percentage. So as a customer, I'm the biggest shareholder in amongst individual shareholders in Repco because I hold more than 2,25,000 shares, but I find it amusing that tomorrow if I have to buy a huge house, I may not be able to take the loan from Repco as a genuine customer. But I will be going to banking system, because they are flush with funds, and the average rate of return is 8 to 8.5 percentage.

Not, sir. Yeah, I will, as a policy, as a principle, I will not make any command on our share price in the market.

But my question again remains, since your system is fixed, are you going to diversify into other lines of business?

Right now, we don't have any ideas. See, we are expert in the field for 25 years. We know only housing finance business right now. We don't have expert and expertise in other business. Let's see. Let's examine. Right now, we don't have a plan to diversify our business. We want aggressive. Though we don't want to diversify our business, we will be very aggressive in business disbursements going forward.

But aggressiveness at a higher rate of interest is difficult.

No, I see, Mr. Raja said my initial rate is, the beginning rate is 8.75. Yes, with that rate, yes, sir, when?

Sir, as such, there is a market segment in this rate also, sir. Sir, what you are talking about is a vanilla product or what we call as a primary housing loan market, where it is at 7.5 and 8 percentage. But there is also a market in our country for our kind of products and many players are there in that market. We are trying to garner our own market share, increase our disbursement, and bring in more profits as we are working towards that. But we will be more aggressive from now on, sir. That's what we have planned also, and our plan is in place.

So if you look at our disbursement number... For last eight, nine quarters, we are seeing increasing trend. Now that everything is settled, we have done IT revamping, so many things, structural changes we have done. All the things are stabilized. Now we shifted to aggressive mode. Going forward, you can see a substantial improvement in the disbursement as well as growth in the AUM. And also, sir, we have an HFC license, sir.

So, diversification is not going to be an off-the-cuff for us because for an HFC license, we are allowed to do only housing loans or mortgage loans, if I can say that. Of course, we people only know housing finance.

Sorry, Mr. Gurumurthy, would you like to rejoin the queue? We have other participants as well. You can. Yeah, sure. Please. Thank you. We'll take our next question now from Prithviraj Patil of Investec. Prithviraj, please unmute your microphone and go ahead.

Yeah, I said thanks for the opportunity. So I just had one question. This is impacted by the check issue. So X of that, what is the gross level disbursements that we've done? Because the sanction also seems sort of low. So, if you can give that bookkeeping quote, yeah.

On a monthly basis, my month-end disbursement, which will be at around 35 to 40 crores month-on-month, would be carried forward. So, that is a cyclical for me. So, except for that, there won't be much of an aberration, sir, in the numbers, whatever you have reported. That's a business as usual for us. Every month, every year, yes.

Okay, so the first quarter disbursements, but they have been impacted by the check. Yes, sir.

My June month number, which is part of the first quarter, my June month number would have that operation, sir. Yes. Okay.

Okay. Thank you.

Thank you. Requesting participants to please click on the raise and icon if you wish to ask a question. We'll take a question from Rajiv Mehta of ES Securities. Rajiv, please go ahead.

Oh, yeah. Hi, sir, just to, you know, have, you know, the visibility clear about the growth that you're talking that you will do. Can you tell us some business numbers for June, July, whether the momentum is back to the normal levels? What is the monthly disbursement, you know, run rate? We are, you know, you know, exhibiting in August, because you're talking about 1200 crore and 1250 odd crore from straight away at 40 crore. So can you give us more confidence about how June and July has been in terms of numbers?

Yeah, Rajiv, on the June month and July month displacement has been on track as whatever commitment we have given of 1,200 crores per month, per quarter, sorry. We are on track. First quarter as usual. Every month, that is a trend for us. Whether we like it or not, that's a trend for us. But this quarter is looking good. My June, even in the first quarter, my June month numbers has been good. My July is even better. And August, hopefully, I am looking at clocking more than whatever we have done. So my numbers are in track, and for the year, yes, we are in track for 5,000 crores.

So, I mean, you are pretty sure that we are sitting here?

Yeah, I am pretty sure and confident that we will be in the position to achieve 1200 crore disbursement. Since this is the price sensitive information, as per our own policy, I am not supposed to disclose numbers right now. But the disbursement, what has happened in July and till date, from August to till date, in line with our expectations. And I'm sure based on that, only we have arrived at 1,200 cross disbursements.

And so between what you did and what you missed in, you know, first quarter and now the second quarter, the momentum is pretty much very good. Have you changed any of your policy with regard to pricing, with regard to customer selection? Or it's with the same policy, same pricing that you've been able to get there.

Rajiv, as you are aware, we have not made any major changes either in our policy nor in our organization setup. But in the sourcing, we have brought in more focus on sourcing channels. Like there is a small alignment change in our sourcing channels from DSA to other ways and all those things. But those are very, very marginal. And now the focus is more, the pressure is more, the team has been set in place now. So the clock has started ticking, that's all.

In connection with interest rate... As end of the June, we are maintaining a 3.4% spread. We want to grow, want to show aggressiveness in the disbursements. Maintaining this level of spread will be really challenging. Though we have not changed the policy level changes in the pricing system, case by case, I may need to sacrifice Some portion in the part of fixing a rate of interest. So spread may slightly come down going forward.

Okay, and that is essentially from the fact that you want to be slightly aggressive on disbursement and even the cost of fund will increase.

I'm not forcing any increase in the cost of fund because NHP has sanctioned 600 crores refinance facility. Of course, I have undertaken 100 crores. With that, I will compensate whatever increase in cost of funds. The cost of funds will staple at the present level.

Sir, I also see, you know, this elevation in your runoff of the book, right? Even in 1Q, the runoff of the book is higher than 4Q, meaning that there is a significant indirect competition through BTOUTS. So, is the reading right that the BT out would have been higher in Q1 versus Q4? And if the BT out is going up, what are we doing to ensure that wherever prudent, we can, you know, retain good quality customers by offering, you know, good rates or offering a top-up goal?

Yeah, yeah, we already decided. We have seen a spike in BT out in the June quarter compared with March. Yes, we decided to retain the good customer, those who are having a good track record of 24 months, and a good source of income, and good LTV, and having a simple score, and all we decided to reduce, offer some good concession. to retain the customer, to avoid the BT outs.

Rajiv, this is the other side of my coin of being aggressive because when I am being aggressive in the market with my marketing activities, I become visible to all my competitors and they start targeting me. So it happens. We are geared up and we have stepped up our retention efforts. And there is a bit of sacrifice on the rate of interest for BT out also. We are working on it.

Of course, we have also rolled out a new incentive schemes for BT outs. Those who are putting efforts and convincing the borrower and retaining the customer, we have introduced a new incentive schemes. Definitely, I hope it will work going forward. We can see a reduction in BT outs. One thing I have to sacrifice, I have to sacrifice my spreads. Maintaining the spreads and controlling BT-outs, aggressive disbursements will be difficult. Aggressive disbursements and controlling BT-out, I need to sacrifice some portion on spread. Understood.

Yeah, I'll step back and shortly we can go back to the queue.

Thank you, Rajiv. Requesting participants to please click on the raise and icon if you wish to ask a question. We'll wait for the question queue to assemble. Participants are requested to click on the raise and icon. Ladies and gentlemen, please stay connected. We'll take a question now from Sanjana Shivram of DAM Capital. Sanjana, please unmute your microphone and go ahead.

Yeah. Hi. Am I audible? Yeah, so thank you for taking my question. There has been some asset quality deterioration across stage two, stage three. So is there any color you can give us on? Was this business as usual? Or is there something to call out over here? And maybe what if there was any geography specific asset quality in shop?

This is, as I have already told, this marginal increase in the grass NPA only because of the slight disturbance because of the transfers and the promotions. But they were settled in June itself. So, in June, we have shown a very good figure. We have these presley pages only because of these transfer and promotions in two months. And that also very marginal increase. If you compare with the last year, last year also first quarter, we have shown marginal increase. That will be settled down in the coming quarters. Definitely in the second quarter itself, we will bring down to March of year.

In addition to that, yes, recoveries are happening in NP accounts, recoveries are happening in stage 2 accounts. Even along with the payer interest and other charges we are collecting, but the amount what we collected from the borrower is not sufficient to upgrade to next category of asset.

Okay. So going forward, can we expect recoveries to outpace the provisions? Yeah, recoveries will improve.

Yeah, recoveries improve. In opening remarks, I told we want to reduce our NPA by 40 crores for current financial year. And by September end, we want to bring it down from NPA level of 425 as end of June to around 400 crores. That's what our target. I'm sure and confident we will achieve what are the numbers we have right now as a guidance.

In addition to that, we have already bifurcated this NPA into... Two divisions. Number one is soft NPA and the other one is a chronic NPA. Soft NPA is the slippages from April 25 to June 26. We are monitoring those cases through separate vertical called regional vertical managers. We have allocated around... 40 accounts to each RVM. Total accounts we are having is around 1,000, 1,100 cases. Around 40 to 45 accounts allocated to each RVM. So we are expecting even if we reduce at least 50%, we can easily reduce around 70 to 75 close. On the other side, we are also targeting the chronic NPA also. We have strengthened our recovery agencies. So we have also revised the timeline and the phase structure for them. So on the other side, we are vigorously taking the legal actions and surpassing. So simultaneously, we are attacking both soft NPA as well as the chronic NPA. With these steps, we are easily at your target of less than 2% NPA by the end of March 27.

Okay, okay. So, I have one more question. So, we have already seen a little bit of, you know, spread compression this year. So, as you do call out a little bit more further, so how much do you think further this year we could see? And do you see that effect we've been doing around ballpark of 3% ROA for a bit? So, do you see the spread compression to overall effect how we see ROA going ahead?

Yeah. See, at end of the June, my return on assets stood at about 11.75, and cost of funds is about 8.31, and we are maintaining a spread of 3.44. Of course, we got a refinance from National Housing Bank to the extent of 600 crores, 100 crores I already availed. Which will, the refinance with what availed, already availed, and what I'm going to avail from NHP in another two or three months, which will help me to reduce my cost of funds, number one. I'm also putting a lot of pressures to existing bankers to reduce the interest rate. We will be aggressive in the growth going forward. Our BT outs in first quarter are slightly higher compared with March. To arrest the BT out, to improve the disbursement. We need to sacrifice some portions, some basis points held on as advances. So, ultimately, my spread may, going forward, may come down by 10 to 12, maximum of 10 basis points in the next coming quarter.

And post which you're expecting it to be broadly stable?

Yeah.

Okay, okay. And any impact on the art?

Sorry, Sanjana, please, would you like to rejoin the queue? Thank you so much. We are taking a next question now from Pulaverti Kiran of Pulaverti Finsof RLP. Pulaverti, please go ahead. Yes, you have unmuted. Please go ahead. We can hear you then. Do you want to try it one more time? Please unmute your microphone.

Yes, am I audible now?

Yes, please.

Yeah, great. Sir, just in the last couple of years, you had, what I can say, spent a lot of time in improving the technology, upgrading the technology, and also increasing the branch network. And then also, you have hired a lot of people. If you can just take a step back and then guide us through what you have done, and then where do you stand in this transformation journey, how it could help the company for the next couple of years in terms of the growth. And bringing in the consistency, that will be really helpful, sir.

Yeah, growth, IT transformation, yes, we have carried out the entire IT transformation in two phases. All the two phases we have implemented successfully mobile applications we have rolled out, really, which is helping us to improve our turnaround time in sanctioning of the loan. We have done a lot of API in the last three, four months, like linking with other applications like Perfios and CSI, like that. We have done a lot of integrations we have done, which is helping us to improve our turnaround time number one. Number two, the biggest structural change is what we have done is verticalization. Earlier, our branch head is responsible for all the activities, like from marketing, sourcing the proposal to recovering NPA, initiating services, so many things we have to handle. That model is okay for a particular size of the book. We want to take the company to the next level. We felt that the verticalization or specialization is needed. We've done a verticalization. We established a separate vertical for recoveries, collections, even NPA management for Surpasey. We are having a separate vertical to take care of initiating Surpasey, selling of the properties. To monitor surface accounts, we are having a separate vertical. For all the NP accounts, we put a separate vertical. To monitor new NP accounts, which are the accounts slipped in very recent past, we have put a separate vertical. All those things are really helping us for sales. Earlier, Banset is responsible for sales. Now we are having a separate sales vertical is there. We have had an arrangement tie-ups with a few DSAs, market-leading DSAs. We have recruited DSTs. Now we are having connectors also. So this structure change is really helping the company to improve the performance, which is savings from the disbursement numbers. Barring June quarter, our disbursements are going up. Now that settlement, whatever case is, is gone. Now we shifted to aggressive mode. Going forward, we will be more aggressive in the disbursement growth in the IAVM. You can see from the numbers, you can see our aggressiveness forward.

And just my earlier question as well, in setting geographies, you added people, even if I look at now, the AEM by state, Telangana is doing well, Tamil Nadu is probably in the double digit, but the rest of the states, there is some uneven growth. Would you like to look at the business from the geography standpoint, or you are more comfortable looking at the overall NBFC level, how the growth is coming in?

Yeah, Kiran, last year we took a holistic approach and across the country we were recruiting sales team, bringing in verticalization, all those things has been done. And now we have got a consistency of number overall. But this year, we have started concentrating on non-TN states. To start with the southern non-TN states like Andhra, Telangana, Karnadaga, we want to do good. Then we already have in the pipe of Maharashtra, Rajasthan, Gujarat, and of course, MP. There also we are putting a very, very strong team in place. So by this year and by the next year, we should see very, very considerable traction and growth in those areas also. That is what we are planning because Tamil Nadu, we know we are already there and our numbers are good in Tamil Nadu. But other than Tamil Nadu, we want to grow and we are already on the track for it.

Great, sir. One last question from myself. How do you look at the competition at this point of time? Because we are seeing more HFCs coming in and then also we hear that there is a lot of competition on the ground. What is your take on the competition, sir?

Yeah, Kiran, looking at the vintage of 25 years for us, there has always been competition, either in one way or the other. We have thrived with competition, and I don't think that is going to stop us going forward. Yes, competition will be there, should be there, and we will grow. Yes.

Thanks, sir. This is really helpful.

Thank you. Thank you so much, Kiran. We'll move to our next speaker. We have Nidesh Jain of Investec. Nidesh, please go ahead.

My audible?

Yeah. Yes, Nidesh.

Yeah. So what is the target for disbursement for FY27? And what are the reasons why the disbursement in Q1 is flat by Y? We were doing quite well on disbursement last year, but Q1 is flat. So what is the reason for that and what is the target for that?

Yeah, that's briefed by my MD in the opening comments. My guidance or our guidance for this year, FY27 is 5000 crores. Do you want to... By our DNA, by our practice has always been slow for us because we will have all promotions and transfers in April and May. So that unsettles a lot of our branches and teams. Now it has settled down. We are the same this year also. Now it has been settled down. My June figures, that is June month figures have grown up. My July is very good. August is also showing up. So that's business as usual for us. We will make up whatever backlog is there in the Q1. For the year, we are confident about achieving 5,000 crores of disbursement.

For current quarter, yes, we are having a target of doing 1,200-2,250 crores disbursements. That is what it means.

Nidesh, would you have any other question?

No, no, that's it from my side.

Thank you, Nidesh. We'll wait for a few moments until the question queue assembles. We have Abhijit here with this question from Motila Loswal. Abhijit, please go ahead.

Yeah, thank you, sir. Just one question. I joined in a bit late, so not sure if you already addressed this. If you have, let me know. I will look through the transcript. But a lot of housing finance companies this quarter have moved to an encashment basis of accounting when it comes to disbursements and annual growth. Have we done something similar this quarter or any plans to do that?

Sir, from last two, three quarters, we have moved to check handover day. That is, as per guidelines, we start booking the interest only from the date of check handover, and we are following up the same, and we are in line with the regulation on that.

No, which is correct, sir. But what I'm trying to understand here is the regulations, like you rightly said, are saying that start accruing interest income from the date of handover of check. But what we have seen of late in the last maybe one quarter to two quarters, most of the other housing finance companies have gone one step forward and they have started booking interest incomes. They have started showing that loan as a disbursement and as part of their loan book only after the amount given to the customer gets encashed.

We are always checking only after the encashment into the AEM. Just by issuing a check, we won't take it into the AEM account. We have been doing this only on encashment, from the beginning.

Sumim, just for the benefit of everyone on the call, you are saying that we account for interest income as well as we show it as a disbursement or as part of the loan book only after the check gets encashed. Yes. Yes.

Yes. Yes. That is our practice.

And since how long has this practice been there that account for interest income and account for that amount as disbursement only after the check gets in cashed, for how long this practice has been there? For three, four quarters. For three, four quarters now. All right, sir. That is all I have to have. Thank you so much for answering my question.

Thank you so much, Abhijit. Participants, if you wish to ask any more questions, please click on the raise and icon on your participants tab. We'll wait until we have any questions in the queue. Requesting participants to please click on the raise and icon. It seems we don't have any more questions. I will now hand it over back to Karuna Karan, sir, for his closing comments. Over to you, sir.

Yeah, thank you for all the participants for actively participating in this call. We will meet once, I mean, post-September results again. Thank you.

Thank you so much. Ladies and gentlemen, on behalf of Repco Home Finance Limited, this concludes today's conference call. Thank you all for joining us, and you can now click on the leave icon to exit the meeting. Thank you all for your participation.