roger7 Posted August 18, 2023 Share Posted August 18, 2023 little lower than that that. Whether it will be INR100 crores, INR120 crores or INR90 crores. I cannot comment on that number right now but it should be in that range at least that is what we believe. In terms of collection team size as Ashish has already mentioned in the last query the pool the hard bucket pool where collection, difficult collection is there, that pool size is shrinking as we move forward. So which is why the collection team size slowly you will see the off-role will shrink as we move along, but the on-role team will stay that is a strategy that will happen and off-role will continue to shrink. Himanshu Taluja: Sure, sir. Sure. The second is just a few, two more data keeping questions. What sort of the PSL income that you have made last year and what you are and what you have recognized in this quarter and generally which quarters generally you use your higher PSL income? Deepak Khetan: This quarter is 26 crores roughly. Last quarter PSL income, last year PSL income let me check was around what 40 crores? I'll just give you the exact number what was last year full year PSL income. We generally PSL income you'll see coming in the first quarter and the fourth quarter. However, I will also, Yes, full year was 28 crores. Last year full year was 28 crores. I will also mention that when you look at PSL income, you also look at the kind of IBPC that we are doing, because that also gives a similar benefit to the book in terms of lower cost of funds. So last year on an average we were having around say 1500 crores of IBPC. This year already I think the IBPC number is a little higher than that and we will continue at this number, this rate for the full year around 2000 odd crores so that additional benefit is also there this year. Himanshu Taluja: Sure sir sure and just last question sir within the MFI any sort of the target that you have between the individual and the group do you have or how one should look at the growth between the two? Vibhas Chandra: Oh Yes obviously we want to grow much faster than GL because we have a captive customer base of over 40 lakhs. In GL, we have a lot of customers who want to graduate to IL. So we will see IL growing much faster than GL in this financial year also. And we'll continue to trend from the last financial year. And for that, we have also extended our IL team and we have increased the number of feet on the street for IL in branches. Himanshu Taluja: Sure, sir. Thanks a lot and congratulations for a good quarter. Thank you. Vibhas Chandra: Thank you very much. Moderator: Thank you. The next question comes from the line of Ashlesh Sonje from Kotak Securities. Please go ahead. Ashlesh Sonje: Hi team, congratulations on a good quarter. I have just one question on the opex for us. If I look at the cost to assets ratio that has been steadily coming down over the past few years and given that we are in a period where we are reporting very strong return ratios, how do we look at the cost ratio going ahead in terms of the investments that we if we plan to make in the franchise? Deepak Khetan: Ashlesh, we have mentioned both for the cost to income ratio and cost to operating cost to average asset ratio. For this year they will be more or less stagnant. So right now we do not change the guidance. We may see a positive swing there but right now we will maintain the guidance number. We will see if we want to change the guidance when we come next time to meet the street. But right now we do not want to make any changes there. Ashlesh Sonje: Okay and if I go ahead a few years, 25, 26, any... Deepak Khetan: Over the next three years, yes, definitely these numbers will come down slowly, maybe around cost to income ratio, maybe around by 300, 350 basis point every year it may come down. Ashlesh Sonje: Okay, perfect. Thank you. Deepak Khetan: Thank you. Moderator: Thank you. The next question comes on the line of Manan Tijoriwala from ICICI Prudential Asset Management. Please go ahead. Manan Tijoriwala: Hi, good evening. I had a couple of questions. So first on the group loans concept, so what is the average ticket size that we have now in the first, second, third cycles? Vibhas Chandra: The question is what is your average ticket size in group loan in first, second and third cycle? So average ticket size in the first loan is close to between 40 to 42, 42000 and in repeat loans in the second cycle it is close to 50 and third cycle onwards the average ticket size is close to 60. Manan Tijoriwala: Okay, okay and how soon can we refinance the customer to a second or a subsequent cycle and what is the tenor of the loans generally? Vibhas Chandra: So you know I have the maximum tenor that we allow to our customers in group loan is three years and our average tenor is close to 22 to 23 months and we allow our customers to take loan, repeat loan only after completion of 70% of their EMI. Manan Tijoriwala: 70% of the EMI, okay, okay understood and how much of the loan book is now under three years? I'm sorry, over three years. Vibhas Chandra: Yes. Yes. You know, the three years stay in our loan is close to 20% to 22% of our entire portfolio at this point of time. Manan Tijoriwala: Okay, okay. And so on the individual loans, are these all our MFI customers or are we sourcing from the market as well? Vibhas Chandra: So, Yes, we have open market acquisition strategy as well. And we have kind of restarted our open market acquisition as we have stabilized after the effect of pandemic. And before that also we were requiring open market minded customers but these customers are largely referred by our internal customers microfinance customers only. At this point of time our open market customer acquisition is close to 5%-6% of whatever we acquire in your lending but this number will also slightly go up in the financial year as we go ahead Moderator: Mr. Manan, may we request you that you return to the question queue for follow-up questions as there are several participants waiting for their turn. The next question comes on the line of Manuj Oberoi from YES Securities. Please go ahead. Rajiv: Yes, sir. Hi. Congratulations on strong numbers. This is Rajiv here. So just, I'm left with just one question, and that is, when I look at your OnePlus and GNPL affordable housing portfolio. Yes, can you hear me? Management: Sorry, we're not able to hear you. Rajiv: Now, now, is it better? Moderator: Mr. Manuj, could you please fall back to the queue? We shall move to the next questioner. The next question comes from the line of Amit Jain from Axis Capital. Could we reconnect the call? Ladies and gentlemen, the management line has been connected back again. Mr. Amit Jain, you shall proceed with your question. Thank you. Amit Jain: Thank you for taking my question. So I had a question on margin. So given that now that the rates have stabilized, and do we see that the cost of funds could increase further from current levels? And similarly, on loan repricing, is it largely done or do we have some bandwidth to further increase loan prices? Deepak Khetan: First on your cost of fund query, so cost of fund may go up from here as well because repricing of the old FDs may happen. So to some extent we believe cost of fund has not yet peaked. Maybe we are around few quarters, maybe two quarters at least away when we see the interest rate cycles also peaking out or starting to see sliding down. So to that extent we'll keep that as an open-ended answer. On the repricing side, there is a lot of room left. We took two rate hikes last year. One was in September, 50 basis point on our MB book and one was in March, 50 basis point again on 1st of March. Of the existing book, 30% book is on the March pricing, 30% book is on the September pricing and 40% book is before that. So on that 40% book 100 basis point repricing is to happen on that 30% book 50 basis point repricing is yet to happen. So there's a lot of room left on the MB book repricing to happen. Amit Jain: So in that case, we still maintain a guidance of around 9% NIMS for this year. Is that a fair assumption? Deepak Khetan: Yes, we remain very confident that we'll be able to hold on to the NIMS. Amit Jain: And the second question is on the employee base. So around, we have added around 2,500 employees over the last six months. So mostly I assume these would be in feet on street, is that right? Deepak Khetan: That's right. Amit Jain: And any particular geographies where we are adding employees or is it all across? Deepak Khetan: See, employee addition to a large extent is happening because of the new branches that are coming. This quarter we had opened around 32 branches in Q1 and in Q4 also there was a lot of branches that opened. Last year we did around 52 and most of the branch openings were back-ended. So these branches were opened and the employees were hired for the new branches. Going ahead 9 months we will be opening around 70 branches. To that extent, some employee hiring will be happening. Whatever branches we are opening this second quarter, to some extent, some hiring has already happened. Apart from this, the hiring is happening, maybe we have introduced RM modules for our branch banking, so there's some bit of hiring happening. Some bit of hiring is happening on our secure books where we are growing the business. For example, housing is going very well there. Some ground level team is being added. MSC as the new products come there will be a little bit of hiring happening. So those will be additional hiring apart from the branches. 85% of whatever is hiring happening is in the front level staff that is happening. Amit Jain: Sure sir, that is very helpful. Moderator: Thank you. The next question comes from the line of Manuj Oberoi from YES Securities. Please go ahead. Rajiv: Hi, this is Rajiv here. Thank you for taking my question and congratulations on very strong performance. So my question is on affordable housing book. So as I see your OnePlus and your GNPLs in this affordable housing book look slightly as I see your OnePlus and your GNP is in this affordable housing book looks slightly higher than peers when I compare them with you know peers operating with similar ticket size and each any specific reason for that? Ashish Goel: The PAR and the GNP for us has been you know consistently coming down. If you compare the pre-COVID book and the post-COVID book, then Rajiv, our post-COVID book performance is significantly better than the peers. And the 30 plus numbers, if you can look at, we are better than all the affordable housing players there. Our NPA, in fact, for the last 22 months, source book is in the range of 0.1%, and 30 plus is in the range of 0.5%. So the new book has done very well. The old book, and the new book is about 65% of the overall book. Old book is where the NPAs are, and that is about 2.4% if we look at the overall book and you know almost 30% to 35% of that is in the stage of sale of asset or repossession of asset. So that gives us confidence that this number will further go down because the efforts on legal that we had started almost 18 months back have given us a lot of results. So a good percentage of that has been taken, you know, the bank has taken the properties, now in the process of auctioning. A good number of cases are in the process of getting, you know, the enforcement of security is happening there. This old book is also, you know, getting cured at a very fast pace. Last year, same time, I think we were in the range of four and a half. And now we are in the range of 2.4%. And the absolute amount also has gone down by about 60 crores. Rajiv: Yes, got it. So there is some, you know, remark that there is a micro lap also in this book. So what percentage of this affordable housing book as we see is micro lap and is it a focus product and what is the yield? Deepak Khetan: Rajiv, the micro lap product is a very focused product for us. The idea is that wherever the large ticket size individual loan is there in micro banking and we see that the family is able to support that bigger ticket size, we'll migrate them to micro lap. However, in the current book, the amount of micro lap is just around 40 crores. Rajiv: Okay. And this will be scale significantly. And in yield? Deepak Khetan: Yield is around 19, 19 and a half percent in that book. Rajiv: Okay. Thanks so much. And best of luck. Thank you. Moderator: Thank you. The next question comes from the line of Deepak Poddar from Sapphire Capital. Please go ahead. Deepak Poddar: Yes, thank you very much for the opportunity. Sir, just I wanted to understand, I mean, in terms of brand, I think you mentioned we will be continuing the brand investment in first quarter, right? So, so, so what was the quantum that we did in, in this first quarter? And how do we see that going ahead? Deepak Khetan: Deepak, we won't be able to share exact expenses of the brand campaign. The brand campaign went live on 24th of July. So to that extent, whatever the production cost and all was there, that was taken in the first quarter. The overall cost will come in first quarter and second quarter. It is a five week plus brand campaign, eight week plus eight week brand campaign is there. And the overall cost will come in both the quarters. First quarter is loaded with that and to some extent it will be there in the second quarter as well. Deepak Poddar: Okay, okay. So ideally in the first half only this cost will come right? Not in the second half? Deepak Khetan: Yes, what a lot of it has already come in the first quarter and the balance will come in the second quarter. Deepak Poddar: Okay, okay, fair enough. I understood. And so just a clarification in terms of I think this reverse merger, I think we had a last update as on 28 June, right, as you mentioned in your press release. So how soon we are expecting it to get through? Deepak Khetan: Deepak, it's a legal matter. We won't be able to give timeline on when do we hear from the court. Right now what we can say is within this year we believe that the matter would be wrapped up. Deepak Poddar: Within this calendar year? Deepak Khetan: Yes. Deepak Poddar: Okay, understood. And in terms of reverse merger, our share outstanding will decline by about 1.5% to 2% right post the merger? Deepak Khetan: Would be 0% there will be no promoter. Deepak Poddar: No so 1925 million shares would be our revised share outstanding post the reverse merger? Deepak Khetan: Yes post the reverse merger roughly around INR3 crores odd shares will be cancelled net cancellation. Moderator: Thank you. The next question comes from the line of Prabal from Ambit Capital. Prabal: My first question is on deposits. So, congrats on the performance here. So, as we are growing our deposit base, how are we ensuring that we also bring in customer engagement so that some portion of this new deposit accretion over a period of time becomes sticky with us and also less rate sensitive with us? Carol Furtado: Hi, so on the deposit base, a lot of work is being done to increase the visibility and the awareness of our brand. And, Deepak also mentioned and Mr. Davis in his speech also mentioned about the brand campaign that we are doing. So we hope to garner a lot of retail deposits to this campaign. We have also put in a lot of specific customer segment wise programs, which will help us in growing our deposit base. We are also categorizing our customers into, we've categorized our branches into various categories and we have also introduced the relationship management piece in place. So we have a strategy for new customer acquisition as well as for the existing customer acquisition. Like I mentioned, the segment-wise programs for high net worth customers, for senior citizens, for retailers, for TASC, for women, for youth. This is the way in which we will be growing our deposit base with a specific attention to each customer segment and also designing products that are required for that particular segment. So you know the strategy is new and existing deepening our relationship and of course through the brand channel. We have also introduced the digital channel, the digital fixed deposit has been recently launched and that is an area too that we will be looking at. Our service quality is another area for our customers. The customer service area is another aspect that we are strongly working on. We have the phone banking team to attend to customers for any of their requests. That's a channel that has been significantly upgraded and we are able to do a lot of service requests through this channel. So customer... Prabal: Sorry to interrupt. Actually, my question was not on accruing new deposits, but more on how do we make sure that these new deposits become more sticky and stays with us even when we reduce the interest rate? Carol Furtado: Yes, so through all this, you know, the customer service programs that we have, the multi- channel approach, the relationship management piece, this is going to help us in, and you know, segmenting our customers with programs like the, with various programs and using analytics, we will be able to define our requirement for each of these customer segments and grow the, and a lot of cross-sell is going to come into the picture. So with all this, we will be able to deepen our relationship with the customer. Prabal: Okay, I'll take this offline. My next question is on, so sir, can you tell us how is microfinance individual underwriting different from a group underwriting in terms of, you know, what are the different processes in both the systems? Vibhas Chandra: So, group loan, individual loan underwriting is very, very different from how we do group loan. Group loan is classical grammhin model and it happens the way it happens for the industry. But as far as when customers try to graduate from group loan to individual loan, we have a separate feet on the street from business side who is supposed to acquire customers and on-book customers. And then we have independent credit team right from feet on the street to the chief credit officer. We have independent credit team who analyzes customers based on their family level income. And this practice we are following for the last, say 13, 14 years, which is now mandated by RBI. And this is something which is done by credit officer individually and loan is under written by the credit officer. Apart from that, we use a lot of data analytics to understand which customer can graduate. We have a lot of data, internal data as well as external data available for the customers. We use this data to underwrite customers better so that we can graduate all eligible customers on VL to IL. So IL is a separate vertical where separate people are there both in business and credit and apart from that we use data to analyze customer better. Prabal: And just a last question, so what are the top three states since we have a diversified portfolio across geography, what are the top three states where you are seeing better than expected traction and maybe if you can also highlight the bottom three states where you are still watchful in terms of growth? Vibhas Chandra: You are talking about IL or overall microfinance? Prabal: Overall microfinance. Vibhas Chandra: So our top three states is Tamil Nadu, Karnataka and West Bengal. Obviously, we have more number of branches. We started from here in regions. And as far as the bottom three, as such we don't have bottom three in terms of growth we have a number of branches which are different in different states, but at this point in time, I would say that Assam is something where the industry is facing issues and we are also very cautious and we are doing, we have changed our strategy in the state of Assam. Apart from that, we don't see any state where we see growth which is very low at this point in time. Overall growth is at par with the average growth of Ujjivan Microfinance Business. Moderator: Thank you. Last question comes from the line of Prit Nagersheth from Wealth Finvisor. Please go ahead. Prit Nagersheth: Thank you. So I wanted to better understand the upgrades, the recoveries and the return of numbers that you posted on in the presentation. I thought you mentioned that the write back was -- the bad debt recovery was what about INR35 crores for this quarter? Deepak Khetan: Yes, 35 crores. Prit Nagersheth: So how is this 77 and 60 coming? Could you just explain that? Deepak Khetan: Prit that 77 is the NPA recovery and upgrade that is in addition to the INR35 crores of bad debt recovery. That INR35 crores in bad debt recovery is something that has been written off the book. This 77 is upgrades and recoveries from the NPA book, which is still there on the book. And this INR60 crores is fresh write-off during this quarter. INR52 crores is technical write- off and around INR7 odd crores is other write-off. Prit Nagersheth: Is it a write-off or is it a write-back? Deepak Khetan: Write-off. Prit Nagersheth: Okay, because if you see the math then because you are starting NPA, then you have your slippages and then you are adding back the recoveries. Deepak Khetan: No, so the math says you have a starting NPA of 631 and there is a slippage of 103. Then you have upgrade, so you reduce that 77. Then you have write off, so you reduce that 60 and the ending or the closing NPA is 597. Prit Nagersheth: Got you. So how much of this can we expect to continue for the next quarter? Could it be in a similar range? Deepak Khetan: Are you asking for NPA guidance? Prit Nagersheth: That's correct. Deepak Khetan: So we are at around 2.4% and we would be ending the year by around say 2% on number. Prit Nagersheth: Okay, so exit quota should be around 2%. The other thing I wanted to understand was that should we expect a dip in disbursement for the second quarter given the flood situation that's ongoing in various parts of the country? Deepak Khetan: The flood situation has not really impacted so much on the business. It's a temporary phenomenon and few days at few districts. So right now we do not want to say that it will impact the overall performance of the quarters. Neither on the collection side nor on the business side, disbursement side. Prit Nagersheth: Got you. And the last question is, can you shed some light on the Ujjivan Hello app and how is that helping you win business on the ground or give you a right to win vis-a-vis all the other competitors out there? Deepak Khetan: I didn't get your query. Can you repeat? Prit Nagersheth: Basically the Hello Ujjivan app that you have out there, right? Vibhas Chandra: So the question is around Hello Ujjivan and how it will help us and customers. Prit Nagersheth: That's correct. And how is it helping you with any competition, right? Because one of the lines. Vibhas Chandra: Yes. So Yes. So Hello Ujjivan, we mentioned in the last call also that this is something which we have developed for especially for microfinance and rural customers. As we realize that our original application, our customers are not able to use because they can't read and this application is where the customer can talk to the application and do their banking transactions. At the same time, we see this as an opportunity where this channel can be used by our customers in various activities including onboarding repeat loans for our customers on this application. Today we have about over 3 lakh customers who have already downloaded and that is exciting news that customers are liking this application. Soon we'll also have repayment is already there and customers, a lot of customers are repaying through this application, which also reduces your cost because your cost of transaction becomes zero. But at the same time, as we onboard repeat loans on this application, once the customer is onboarded Ujjivan for loans, the repeat loans, top-up loans, and other services which customers want their own loan can be serviced through mobile applications. This can be a game-changer and we are working very hard on building this application to ensure that all services, future services when customers onboard it, can be offered through this application, including repeat, top-up, TDs, reliability, relationship we are trying to on board through this application. So yes this is something which customers are liking at this point of time a lot of customers have installed but at the same time we are seeing a lot of new features being added in Hello Ujjivan going forward in this financial year. Moderator: Thank you. The next question comes from the line of Sanjay Pandit from 1729 Capital. Please go ahead. Sanjay Pandit: Okay, so my question is, for those holding Ujjivan Financial Services, the holding company going into the reverse merger, does the ratio pretty much stand as is? And if so, would there be some kind of cash distribution prior to the reverse merger? And regardless of that, what kind of sort of per share book value accretion can even small Can Ujjivan Small Finance Bank expect to have concurrent with the reverse merger by virtue of I guess some cash coming into the bank? Deepak Khetan: Sanjay, book value accretion would be INR2 or maybe a little more. There is roughly around INR180 crores of cash that UFSL currently has. So that will come to the bank plus a INR200 crores of preference shares are there which will get cancelled. So that will also come to the bank. So total of INR380 crores as is which is there and plus whatever the bank has proposed as a dividend if that gets approved tomorrow that will also come to UFSL. So that amount will come to UFSL and depending upon if or whether UFSL distributes that money in form of dividend or not or whatever is the amount, basis that we still believe at least INR380 odd crores is there which will come to the bank which means roughly INR2 book value accretion would be there for banks. There would be no cash distribution to UFSL shareholder as part of the reverse merger process. Moderator: Thank you. Due to time constraints, that was the final question. I now hand the conference over to the management for closing comments. Ittira Davis: Well, I thank you all for joining us in this session. It's been wonderful to take your questions and answer them. If there are any questions that remain unanswered, please contact Deepak or Madhusudan at our offices here in Bangalore and we'll be happy to respond to you. I'd like to take this opportunity to thank Mr. Shah, IIFL, for their coordination and hosting of this call and to Chorus for their logistics. Thank you very much. Moderator: On behalf of IIFL Securities Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Link to comment Share on other sites More sharing options...
roger7 Posted August 18, 2023 Share Posted August 18, 2023 This is how the con-call went.. for Ujjivan Small finance bank Link to comment Share on other sites More sharing options...
roger7 Posted August 18, 2023 Share Posted August 18, 2023 if you ready the document again it looks like as below.. the press release it is quoted as reverse merger- in layman's accounting terms it should be called as amalgamation of the group under one umbrella Link to comment Share on other sites More sharing options...
roger7 Posted August 18, 2023 Share Posted August 18, 2023 https://www.ujjivansfb.in/reverse-merger Link to comment Share on other sites More sharing options...
chanti149 Posted August 18, 2023 Share Posted August 18, 2023 Roger uncle...antha copy paste cheyatam kante...aa page link share chesthe saripotadi emo ga.... Link to comment Share on other sites More sharing options...
roger7 Posted August 18, 2023 Share Posted August 18, 2023 23 minutes ago, chanti149 said: Roger uncle...antha copy paste cheyatam kante...aa page link share chesthe saripotadi emo ga.... In general i paste links only which i did also but aftersome time these links will be removed by those websites.. to my information this con-call is very crucial thus i posted it here. chanti149 and namontrnbk 2 Link to comment Share on other sites More sharing options...
namontrnbk Posted August 18, 2023 Share Posted August 18, 2023 1 hour ago, roger7 said: if you ready the document again it looks like as below.. the press release it is quoted as reverse merger- in layman's accounting terms it should be called as amalgamation of the group under one umbrella Are you saying that reverse merger would be like tata motors announcement regarding dvr shares for which dvr share holders will be allocated tata motors share? The same goes for ujjivan amalgamation also? How the share holders of ujjivan small finance will be compensated? Link to comment Share on other sites More sharing options...
KING007 Posted August 18, 2023 Share Posted August 18, 2023 Evergrande bankruptcy valla any impact? https://www.eenadu.net/telugu-news/business/china-property-giant-files-for-bankruptcy-in-us/0101/123150538 Link to comment Share on other sites More sharing options...
roger7 Posted August 18, 2023 Share Posted August 18, 2023 11 minutes ago, KING007 said: Evergrande bankruptcy valla any impact? https://www.eenadu.net/telugu-news/business/china-property-giant-files-for-bankruptcy-in-us/0101/123150538 It will have definitely but not on overall index but coming monday will be low day Link to comment Share on other sites More sharing options...
roger7 Posted August 18, 2023 Share Posted August 18, 2023 40 minutes ago, namontrnbk said: Are you saying that reverse merger would be like tata motors announcement regarding dvr shares for which dvr share holders will be allocated tata motors share? The same goes for ujjivan amalgamation also? How the share holders of ujjivan small finance will be compensated? here ujjivan bank share will be allocated to Ujjivan finance group.. JBPR has kept its analysis before board.. I will share very brief note by tomorrow which will give fair idea about the financial process Link to comment Share on other sites More sharing options...
Royal Nandamuri Posted August 18, 2023 Share Posted August 18, 2023 3 hours ago, roger7 said: here ujjivan bank share will be allocated to Ujjivan finance group.. JBPR has kept its analysis before board.. I will share very brief note by tomorrow which will give fair idea about the financial process Frankly paina paste chesina concall info okka mukka ardam kaala. Naa lanti adivi manushulaki ardam ayyelaga oka chinna summary raasi punyam kattuko brother 😁 I am holding 1000 shares of Ujjivan small finance at 46 level Link to comment Share on other sites More sharing options...
roger7 Posted August 18, 2023 Share Posted August 18, 2023 (edited) i 16 hours ago, Royal Nandamuri said: Frankly paina paste chesina concall info okka mukka ardam kaala. Naa lanti adivi manushulaki ardam ayyelaga oka chinna summary raasi punyam kattuko brother 😁 I am holding 1000 shares of Ujjivan small finance at 46 level Firstly dont sell even one stock also..hold tight.. till it crosses 120rupees Coming back I will share the gist soon for the con-call Edited August 19, 2023 by roger7 Royal Nandamuri 1 Link to comment Share on other sites More sharing options...
kondrakunta Posted August 18, 2023 Share Posted August 18, 2023 50 minutes ago, Royal Nandamuri said: Frankly paina paste chesina concall info okka mukka ardam kaala. Naa lanti adivi manushulaki ardam ayyelaga oka chinna summary raasi punyam kattuko brother 😁 I am holding 1000 shares of Ujjivan small finance at 46 level Mastharu ee level lo Ela enter ayyaru monnati daka 25 range lo chance ichindi ga Link to comment Share on other sites More sharing options...
Royal Nandamuri Posted August 18, 2023 Share Posted August 18, 2023 12 minutes ago, kondrakunta said: Mastharu ee level lo Ela enter ayyaru monnati daka 25 range lo chance ichindi ga Anthakumundu chetilo cash ledu bro, monna quarterly earnings call tarvata konchem cash unte teesukunna longterm kosam namontrnbk 1 Link to comment Share on other sites More sharing options...
Ntrforever Posted August 18, 2023 Share Posted August 18, 2023 @roger7 @chanti149bro concall link Transcript https://www.ujjivansfb.in/sites/default/files/2023-08/IIFLCap-Ujjivan-Jul27-2023-Upload.pdf chanti149 1 Link to comment Share on other sites More sharing options...
namontrnbk Posted August 19, 2023 Share Posted August 19, 2023 14 hours ago, Royal Nandamuri said: Anthakumundu chetilo cash ledu bro, monna quarterly earnings call tarvata konchem cash unte teesukunna longterm kosam Better late than never bro.. Royal Nandamuri 1 Link to comment Share on other sites More sharing options...
roger7 Posted August 19, 2023 Share Posted August 19, 2023 8 hours ago, Ntrforever said: @roger7 @chanti149bro concall link Transcript https://www.ujjivansfb.in/sites/default/files/2023-08/IIFLCap-Ujjivan-Jul27-2023-Upload.pdf i have gone through the call, but getting gist out of lisenting to concall will be difficult.. at times Ntrforever 1 Link to comment Share on other sites More sharing options...
roger7 Posted August 19, 2023 Share Posted August 19, 2023 KEY CON-CALL HIGHLIGHTS Advances & Liabilities Growth Loan growth of 25%+ targeted in FY24, which would be largely driven by customer addition in Micro Banking and faster growth in secured products (MSE and VF to see a pick-up and Affordable HL momentum will remain strong). Secured products contribution to increase to 32% by end FY24 (from 28% as of Mar’23) - in longer run (5 years) this contribution will rise to 50%. Within Micro Banking, the share of Individual Loans (IL) will keep rising - avg tenor of the book will thus keep gradually increasing. Low growth in MSE financing due to recalibration of focus/strategy and running down of one fintech relationship. Affordable Housing portfolio had subsidy repayments of Rs1.6bn in FY23. Expect to scale-up Gold Loans in current year – mainly would be introduced in the Southern region. Targeting 30% deposits growth in FY24 with CASA share reaching 30% by year-end. Capital, Profitability & Reverse Merger Don’t see any need to raise capital in the next couple of years - additional net-worth will be added from the merger and RoE profile will remain strong. FY24 PAT will be higher than FY23 (Rs11bn) by a reasonable margin. Reverse merger could get completed by Sept’23 - Rs.1.6-2 to be added to BV on account of merger (due to NW addition and cancellation of shares). The Board will be identifying a potential candidate (internal or external) to succeed Mr. Davis as MD & CEO much ahead of his tenure ending in Jan’25. NIM & Cost/Income Portfolio Yield expansion happened due to rate hike in Micro Banking of 50 bps each in Sept’22 and Mar’23 – also continuous coming down of NPLs has had a positive impact. Lending rates in Micro Banking at 23%/25% for GL/IL – notably, IL which is at higher rate is growing much faster. Lending rate in Affordable Housing is 13.2-13.4%. NIM was impacted by build-up of liquidity on the BS due to stronger deposits growth – the liquidity would be redeployed from investments into loans in the current quarter itself. Bank expects NIM to stay above 9% for the whole year. C/I ratio may not improve much in FY24 due to investments on branch addition, employee addition and IT/digital initiatives. Bank would be adding 100+ branches in FY24 which would be spread across the country – after adding Telangana last year, it would be adding AP this year. For important information about YES Securities (India) Ltd. and other disclosures, refer to the end of this material. Link to comment Share on other sites More sharing options...
roger7 Posted August 19, 2023 Share Posted August 19, 2023 Asset Quality & Credit Cost NDA/Current Bucket collections back to pre-Covid level of around 100%. Slippages were Rs190mn and Upgradation and Recoveries were Rs590mn in Q4 FY23 - Slippages were Rs3.35bn and Upgradation and Recoveries were Rs5.1bn in FY23. Bad Debt recoveries will continue during FY24, but the quantum will be lower than FY23 – recoveries will come from current Rs10bn+ worth of technically written-off portfolio. Collection efficiency on NPLs at 40-45% and collections on Restructured assets was 111% in March - a good part of the currently held provisions on these loan pools could be writtenback in current year. Blended guidance of up to 100 bps credit cost for FY24 factors some write-back of existing provisions – bank not expecting any negative surprise on asset quality front. Not looking at reversing/utilizing the Floating Provisions. Royal Nandamuri 1 Link to comment Share on other sites More sharing options...
namontrnbk Posted August 19, 2023 Share Posted August 19, 2023 4 hours ago, roger7 said: Asset Quality & Credit Cost NDA/Current Bucket collections back to pre-Covid level of around 100%. Slippages were Rs190mn and Upgradation and Recoveries were Rs590mn in Q4 FY23 - Slippages were Rs3.35bn and Upgradation and Recoveries were Rs5.1bn in FY23. Bad Debt recoveries will continue during FY24, but the quantum will be lower than FY23 – recoveries will come from current Rs10bn+ worth of technically written-off portfolio. Collection efficiency on NPLs at 40-45% and collections on Restructured assets was 111% in March - a good part of the currently held provisions on these loan pools could be writtenback in current year. Blended guidance of up to 100 bps credit cost for FY24 factors some write-back of existing provisions – bank not expecting any negative surprise on asset quality front. Not looking at reversing/utilizing the Floating Provisions. That's one hell of a condensation of entire con call..Thank you Roger bro...😊 But I have doubts regarding this line. Reverse merger could get completed by Sept’23 - Rs.1.6-2 to be added to BV on account of merger (due to NW addition and cancellation of shares). What happens to shareholders of ujjivan small fin bank after reverse merger? Link to comment Share on other sites More sharing options...
NBK NTR Posted August 19, 2023 Share Posted August 19, 2023 Link to comment Share on other sites More sharing options...
Jaitra Posted August 19, 2023 Author Share Posted August 19, 2023 What’s happening in Elgie equipment? Why it’s falling? Reversal and big upside soon? Link to comment Share on other sites More sharing options...
NBK NTR Posted August 20, 2023 Share Posted August 20, 2023 Link to comment Share on other sites More sharing options...
NBK NTR Posted August 20, 2023 Share Posted August 20, 2023 Link to comment Share on other sites More sharing options...
chanti149 Posted August 20, 2023 Share Posted August 20, 2023 54 minutes ago, NBK NTR said: https://www.equitymaster.com/detail.asp?date=08/17/2023&story=4&title=The-Great-Indian-Railway-Boom-is-Here-5-Stocks-to-Watch Uncle jus check the railway sector focus by gov. Railway boom is real & extraordinary...dont blindly ignore saying psus ani Link to comment Share on other sites More sharing options...
NBK NTR Posted August 20, 2023 Share Posted August 20, 2023 33 minutes ago, chanti149 said: https://www.equitymaster.com/detail.asp?date=08/17/2023&story=4&title=The-Great-Indian-Railway-Boom-is-Here-5-Stocks-to-Watch Uncle jus check the railway sector focus by gov. Railway boom is real & extraordinary...dont blindly ignore saying psus ani nenu IRFC and Titagarh huge qty buy chesi sell chesa...malli correction lo buy cheyali uncle...let's see IRCTC kuda below 600 vaste bulk add cheyali Link to comment Share on other sites More sharing options...
namontrnbk Posted August 20, 2023 Share Posted August 20, 2023 3 hours ago, chanti149 said: https://www.equitymaster.com/detail.asp?date=08/17/2023&story=4&title=The-Great-Indian-Railway-Boom-is-Here-5-Stocks-to-Watch Uncle jus check the railway sector focus by gov. Railway boom is real & extraordinary...dont blindly ignore saying psus ani But irfc crashed for consecutive couple of days amounting to near 8%.. bigger ever in 6 months for a couple of days.. Doubting recovery soon considering government pushed it's stack to sell among private sector.. Link to comment Share on other sites More sharing options...
NBK NTR Posted August 20, 2023 Share Posted August 20, 2023 6 hours ago, namontrnbk said: But irfc crashed for consecutive couple of days amounting to near 8%.. bigger ever in 6 months for a couple of days.. Doubting recovery soon considering government pushed it's stack to sell among private sector.. very true bro...Heard many analysts saying the same about IRFC...malli below 35 levels vastundo ledho for my re-entry Link to comment Share on other sites More sharing options...
NBK NTR Posted August 20, 2023 Share Posted August 20, 2023 NSE announces replacement of stocks in Nifty Next 50 Link to comment Share on other sites More sharing options...
kanagalakiran Posted August 21, 2023 Share Posted August 21, 2023 Is it good to exit Jio financial around 300/- as GMP is also at 300 most of the analysts community is saying actual price is 190/- Link to comment Share on other sites More sharing options...
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