Indiabulls Housing Finance Ltd

NSE:IBULHSGFIN

Earnings Call Transcript 2023-Q2

[Operator]

Ladies and gentlemen, good day, and welcome to the Indiabulls Housing Finance Q2 FY '23 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. From the management team, we have with us Mr. Gagan Banga, Vice Chairman, MD and CEO; Mr. Ashwini Hooda, Deputy Managing Director; Mr. Sachin Chaudhary, Chief Operating Officer; Mr. Mukesh Garg, Chief Financial Officer; Mr. Ashwin Mallick, Head Treasury; Mr. Ramnath Shenoy, Head, IR and Analytics; Mr. Hemal Zaveri, Head Banking; Mr. Veekesh Gandhi, Head, Markets.

I now hand the conference over to Mr. Gagan Banga. Thank you, and over to you, sir.

[Gagan Banga, executive]

Thank you, and a very good day to all of you. Welcome to the quarter 2 of fiscal '23 earnings call. Before we get into the numbers for the quarter, I will briefly cover the update on macros. The growth trend in the real estate sector continues to be strong. As per recent Knight Frank report, housing sales in top 8 Indian cities recorded a 15% Y-o-Y growth in quarter 3 calendar year 2022 and 20% growth compared to the quarterly average sales observed during the prepandemic times of 2019.

Supply has also picked up, growing 18% Y-o-Y in quarter 3 calendar '22. Units launched have also picked up. The developers have responded well to the upswing in demand levels over the last past year, launching new projects compatible with the current need of home buyers though they continue to wonder where future capital for construction finance sector is going to come by. And that's something that I will ponder upon with you during the course of this call.

The commercial real estate market has started showing strong growth momentum after the pandemic, with 16.1 million square feet getting transacted during quarter 3 fiscal '22. It represents a 30% year-over-year growth. But we also see the likes of the largest commercial real estate investors in what they call a harvesting mode rather than an investing mode. And therefore, what one has to think of is, is it an opportunity for an organization such as ours or should we continue to use this as an avenue to exit whatever loan investments we had made in the past. On the retail side, the repo rate hike has resulted in a pass-on in terms of the reference rate hikes from us, that has resulted in our book spreads expanding from -- to 3.1% at the end of the fiscal, as of 2.7% a quarter ago.

This is transitionary, but at the same point in time, it indicates our pricing power and the pricing power of NBFCs in general to be able to hold on to their strength. I will now quickly cover the headline numbers for the quarter.

The balance sheet, loan book and AUM has stabilized, as I have been promising you for the last 3 quarters. And now I think we formed the base. As you may have read from our earnings update, the balance sheet has marginally grown, the AUM and loan book has stabilized.

And I believe in the second half of this year, we should be able to record conservatively a 10%, optimistically a 15% AUM growth. Hereon, we will track AUM growth only. I promised to you 2 quarters ago that we will stabilize AUM, balance sheet, et cetera, and then start growing the AUM, which we have achieved. And hereon, the management would like to be tracked on AUM growth.

The PBT and the profit after tax has been stable for many, many quarters. So while there has been serious volatility in our peers in terms of various numbers. I think over the last 6 to 7 quarters, we have while maintaining a picture of absolute stability, being able to manage our transformation, which is how our retail disbursements have grown not by a small number, but 9x of what we did in H1 of fiscal last year -- this year, 9x is not a joke by any standards.

And we are firmly back as the third largest housing finance company in terms of retail disbursals. And that too at a -- for the portion that we are disbursing and holding on to our balance sheet at a 3% ROA. So it's a very, very profitable business that we are doing. In order to continue to enhance all this profitable business, there is a significant investment in people.

We've added over 1,500 people this year. We've continued to reward our performing employees. And I would imagine that starting fiscal '24, we should start seeing efficiency gains and a trajectory, which is back to a reducing number as far as our cost income is confirmed, having made the investments through fiscal '22 and continuing through fiscal '23.

Our gearing, which makes the company a lot more safer from a debt investor perspective is now down to 2.5x. And as I've indicated in the past, this is about the floor that we would hit. So we are at our floor. Our balance sheet has stabilized. Our AUM has stabilized.

I believe that our gearing hereon will remain in the range of 2.5 to 3x. We are very, very comfortable on capital at 34%, of which Tier 1 capital is 28%. ROA at a company level has inched up marginally, but that is more because of the profitable increase in our retail disbursements. So now it is up all of 10 basis points.

The retail disbursals are earning us as much as 300 basis points of ROA and that is going to continue to add 10, 15 basis points every quarter to our company-wide ROA. Most importantly, our NPAs have been stable, and we've been able to manage our NPAs at both an absolute as well as at a percentage level in a very, very tight range while maintaining a very healthy provision cover which remains at 3% of our loan book and over 2.6x of our regulatory requirements.

From a long-term strategy perspective, I think the company has finally achieved this situation, which was of the situation that it had created for itself back in -- around 10 years ago in 2011-'12, where it had created a serious base of transforming itself from a multiproduct NBFC back in 2008-'09 to a mortgage-focused NBFC by 2011-'12.

The same sort of base has been created. We have much like in the U.S. where the securitization market is extremely streamlined. There is a -- it's a more marketplace approach. There are standardized loan documents, there is a standardized credit appraisal process. There is a standardized servicing process. Your company has been able to achieve that.

Today, we have half of the public sector banks in India buying loans from us. One particular public sector bank, a very, very large one, amongst the largest ones, we've just recently concluded a pilot where the entire buying process of a loan is hands-off, neither do we, nor do they have any sort of a human intervention. It's completely hands-off. Our documents are read by their systems and then the loans are purchased and there's a transaction which happens where we receive funds.

So that's the kind of a future, which we perceive that we will continue to focus on our distribution, invest in people. As I mentioned earlier, we've invested in 1,500 people. Through the course of the year, we've invested in retention. And it's a very, very profitable business at a 3% ROA. Why banks let us do that is because of the positive credit cycle, cost cycle that we have. We go out there and invest in distribution in place our young boys and girls at various sites, which for various constraints, public sector banks cannot and that distribution gets as to just profitable sort of an ROA.

Our disbursals under the asset-light models in the prime segment have been able to get to and scale up to in the first half as high as INR 4,600 crores. As I had mentioned in the last call, our strategy for this fiscal year would continue to be in retention of our employees, which is reflected in our employee costs.

We have just concluded an annual increment, which has averaged at about 16%. Our ESOPs continue to be extremely lucrative. We have repriced some of our ESOPs and made sure that there is a wealth effect coming into our employees. As we work on our retail loans, we are focusing specifically on the affordable segment. We have already created a book of around $200 million with an average ticket size of about INR 10 lakh, which is focused on what we call Bharat, which is Tier 3 sort of locations, and we continue to expand on those locations where we hope to get into a market domination position very, very soon.

As we do that, I think the focus of the last 4 years as the IL&FS crisis worked itself out, the company chose to focus on maintaining a fortress balance sheet through the strong pillars of capital adequacy, low gearing, high liquidity and robust provisioning. All of that has paid out. That has enabled the management to focus on operational priorities. The operational priorities remain at unwinding the wholesale book, which is clearly getting tailwinds by the real estate up cycle and enhancing the retail book and specifically the retail disbursal cycle.

As we sit today, we are even unwinding our costs on the wholesale side and focusing on backing up our retail disbursal, be it branches or people and that should all play out to us getting to about $2 billion of disbursals in fiscal '24.

Now let's look at our gross NPAs. If you look at Slide 5 of the earnings update on the asset quality, as of the end of September '22, our gross NPA stood at INR 2,123 crores, which in absolute value are flattish for the last 4 to 5 quarters, which translates to 2.94%, and net NPA stand at 1.70%.

Our Stage 3 provisions stand at 42% of the Stage 3 assets. Our total provision stand at 3% of loan book, which is, as I mentioned earlier, 2.7x of our regulatory requirements. The retail collection efficiency standard as high as 98.8% for quarter 2 fiscal '23.

Very, very importantly, over the last 7 quarters, I have been consistently communicating that we should be able to hold our gross NPA range at between 3% to 3.5%. And today, we -- at the end of the first half of fiscal '23, we stand at 2.94%. For this year, I had communicated that we expect our credit costs to be between 100 to 150 basis points.

We are trending that. And as I said earlier, if after this crisis in the last 8 quarters, if I is to believe me, then our credit cost should come down at half of these levels next year onwards. On the liquidity side, we stand comfortable. More importantly, we continue to adopt a very conservative approach. Most of our stakeholders are aware that when it came to a large rupee redemption of a public issue bond that we had done of about $1 billion, we created proactively reserve for that.

When it came down to paying down mutual funds, we bought back our bonds. And now when it comes to ECB lenders, today, our Board has approved the creation of a term deposit buffer much in line with the dollar term deposit buffer that we had created -- the dollar bond, term deposit buffer we had created.

And more importantly than this near-term payment, which comes due in fiscal '24, even for the convertible bond due for repayment of fiscal '24-'25, we would proactively continue or we will proactively create a term deposit buffer over 4 to 5 quarters for the same.

So this is going to get triggered in the next 7 to 8 days as we negotiate with banks and get the best term deposit rates. We fortunately already gotten the same clear through our domestic bonds -- banks. And we are firmly in place to adopt this as a regular operating practice for our ALM management for all of our overseas borrowings, be it our external commercial borrowings as well as our convertible bond borrowings.

If they are not to convert, that is for time to tell, but at least as management, we will assume that they will not convert to debt and we will have to redeem them. And we will create deposit buffers for them. External commercial deposit buffer will start getting created over the next 7 to 8 days, and the FCCB buffers will follow suit.

Now moving on to the regulatory side. There has been a lot of transformation on the regulation front. Your company has being classified as an upper layer NBFC, much in line with the large status of NBFC that it has. We are in coveted company. And we are in the process of doing the transformation. The good thing is we did a deep dive into the transformation today in our Board meeting, and I'm happy to report that there is no significant P&L or balance sheet impact item as a result of the transformation to the upper layer.

This is the provisioning or any other requirement of the capital transformation requirement, which it has, there will be no P&L or capital charge that you will witness because of our transformation to the upper-layer NBFC. As a stakeholder, it will be heartening for you that we will be regulated and supervised much like a bank, so we become that much more safer.

Just as an indication, much like banks, now we also follow LCRs, which is liquidity coverage ratios. And as against the minimum prescribed of 50% LCR, we stand at about 200% LCR. So we are operating very, very conservatively even basis what RBI has prescribed for NBFCs.

On the ALM side, we continue to remain positive. And now with these fixed deposits or term deposit buffers, we will be even more conservative. As we stand today, I believe that we are at a very important transformation point for the company. The company over the course of the last 4 years, has transformed itself from a business model perspective, from a company which was looking at continuously growing its balance sheet. So when we touched INR 1 trillion of balance sheet, we thought that we should be guiding the market to when we will touch INR 2 trillion.

When we touched 5x of gearing, we said that we can go as high as 7x of gearing. The business model has completely transformed. Through this transformation process, we had to face macro and micro headwinds, the macro headwinds in terms of a full regulatory overhaul as well as a risk of as far as our industry is concerned. On the micro front, because we were trying to do things very differently, there were all kinds of mark, which was thrown on us. The good news is that the company has been able to fairly seamlessly migrate from a near 7x gearing to a 2.5x gearing.

Over the course of the last 7-odd quarters, it has been able to stabilize across all operating parameters. We have said that we will continue to degrow our balance sheet for some time and very boldly we did degrow that. A lot of our stakeholders thought that it was about access to debt capital markets. We said this is just the more conservative and the long-term, more stable way of growing the business.

And at some point in time, we will stabilize. Over the last 3 quarters, we've stabilized. We also indicated that the business for NBFCs, especially NBFCs, which lend to sectors where the borrowing is long, is not about keeping assets on balance sheet. It is about originating assets and becoming a lean and mean origination machine.

I think we've managed that fairly successfully. And compared to our peers who are holding assets on their balance sheet, we are actually, for the capital that we put on our balance sheet, earning 2x of the return on asset. In absolute value terms, it will take us another 12 to 18 months to grow this in absolute profitability.

But from an ROA perspective, it is already very healthy at 3% for incremental disbursals, which has started now tickling in, in terms of book ROA as well and there has been a 10 basis points increase. That 10 basis points will continue to increase at a steady base over the next few quarters and should settle at about 200 to 250 basis points of ROA, which would mean that the company would settle in at around 14% to 15% ROE by middle of fiscal '24-or-so. So that's the goal that we've been trending towards.

We don't want to be a company or a management team which is known to shock or surprise. We would like to state things upfront. We said upfront that we would like to degrow. We degrew, sometimes in life and you have to transform, you have to dig deep -- dug deep. I think we're now at a stage where we can stabilize. And that is the act that we have been following, we have stabilized. And from here on, you will see not a line x type of a disbursal growth that you've seen in the last 1 year, but at least a 2x type of a disbursal growth for the next 2 years year-on-year, which should get us to a level where we are disbursing like $300 million, $350 million of absolute retail granular loans a month.

And that is a very, very unique franchise where you are adding something like 20,000 customers a month. And these are very prime mortgage customers that stay with you and have a life cycle of 7 to 8 years where you can sell multiple products. On pure capital allocated basis, you make 3% and then if you add other sources of income, you'd make 3-plus percent ROA from these borrowers and these are prime borrowers. So that's the business model that we will follow.

We will continue to unwind our wholesale book. The real estate business is doing extremely well in terms of the wider industry and that is benefiting us because the projects that we have mortgaged are selling and selling very well. So on the NBFC balance sheet, we will continue to unwind.

As a result, we also would tweak the team and focus more on growing the retail team and for cost rationalization, we will see how we have to best utilize our wholesale team. Our AI platform is also growing slowly. It is already at about INR 3,500 crores, and it should get to about INR 5,000 crores by the end of this fiscal, that's the other area of focus.

So from next year onwards, the AI platform should start contributing to our profitability, and that's a key metric that I would like to keep for fiscal '24. For fiscal '23, I would just request all of you to measure our success on growing our AUM by 10% and managing to maintain our delinquencies, our Stage 2, et cetera.

Incidentally, our Stage 2 is down almost 30% since the start of the year and almost 50% from the end of fiscal '21. So we are trending extremely well this is the real estate cycle. And I assume that this is the numbers that come in front of me, we should be down another 30% by the end of this fiscal year.

So all in all, the business is in a very, very stable position. And several of our stakeholders have continued to support us. we bought down our leverage, given exit to several of our other stakeholders. We have covered our ECB lenders by creating this term deposit. We are committing to cover our FCCB lenders by following [ foot ] on the term deposits. This is the best foot forward that the management can put forth. And I would like to end my comments with the request of your continuing support.

We open to questions now, and thank you.

[Operator]

[Operator Instructions] Our first question is from the line of [ Abhiram Iyer ] from Deutsche Bank.

[Unknown Analyst]

Sir, given the importance of AUM, could you please let us know what the number is for -- at the end of the September quarter? That's question one.

And question 2 is, could you also elaborate a bit more on the higher provisioning costs that have been taken this quarter as well?

[Gagan Banga, executive]

So when we have a high PPOP, we will continue to take higher provisioning and make sure that we continue to be better placed than having a volatile picture. Unfortunately, I'm not in Bombay, I'm traveling, so I don't have the specific number, but my IR team can give you the specific number in terms of provisioning.

As far as AUM is concerned, we are pretty much flattish to where we were last quarter. This is despite a INR 2,000-odd crore inflow -- gross inflow from our wholesale book. And I expect -- and then we would have disbursed another INR 600, INR 700 crores on the wholesale book to get projects completed.

I would like to draw your attention to some of our key projects in the city of Mumbai. 25 South, which is one of our large exposures which is opposite the famous temple in the Prabhadevi area, that has achieved occupancy certificate. In the Race Course area, another large exposure, which was too, what is the tallest building in India, which is called Minerva, that has applied for occupancy certificate. It has achieved all the preliminary certifications required for that. And I would imagine that by November, the occupancy certificate would come in.

All of our NCR exposures are seeing extremely robust growth, a few of our stressed loans in the southern part of India as well as the other part of India because of steep appreciation in -- and prices are today actually seeing bids at $1.20 to $1 that we would have imagined based on the provisions that we had created that we will actually recover $0.80 to $0.90 to a dollar. So that's a pretty good situation to be in.

So all in all, the AUM on the wholesale side will have a little bit of a pressure at a rate where we will receive INR 2,000-odd crores a month back -- sorry, a quarter back, but our retail disbursals are growing rapidly. And I imagine that we should be doing about INR 4,000-odd crores of retail disbursements, plus around INR 700 crores, INR 800 crores of wholesale disbursal. So all in all, AUM, as I said, should be growing at about 10%. As we speak, quarter-on-quarter, it is flattish.

[Operator]

Our next question is from the line of [ Ronak Mantri ], Individual Investor.

[Unknown Attendee]

So last quarter, you had written off INR 500 crores against a general reserve. So is it good to assume that this year also you will not be giving any dividends to the shareholders?

[Gagan Banga, executive]

It will be very sad if we don't give dividends because we gave dividend all of our listed history since 2005. We listed in September 2004. And from March 2005 onwards, aside of last year, we've given dividends. So there is no reason why we should not be giving dividends.

As we speak, back of envelope, I think we are technically enabled at least as of the end of half year to give dividends. That said, I don't want to be that management which gives a commitment and

[Audio Gap]

So it shall be my endeavor to propose to the Board to give dividend, but we will see. We have a tricky second half the geopolitical situation being where it is, where -- with inflation being where it is, with interest rates being where they are, we've seen a very hectic credit growth in the first half. Now deposit rates are increasing. So we could even have a very, very rapid increase in input costs. So given all of that, I will not make a firm commitment.

The firm commitment that I'll make today is that the retail AUM will grow, retail disbursals will grow. As far as dividend is concerned, it is clearly the management intention, much like you, we are all shareholders, so we would love to get some dividends from the company. But the more important thing for the company is to be financially strong and regulatorily compliant.

Within the compliance perspective, as we speak, we should be able to give. We will take this decision or rather the Board would take this decision towards the end of the year. It shall be my personal endeavor to make sure that shareholders get dividend this year.

[Unknown Attendee]

Okay. Just one more question. Sir...

[Operator]

Sir, I'm sorry, may we request you to return to the question queue, we have several participants waiting. Thank you. Our next question is from the line of Craig Elliot from NWI Management.

[Craig Elliot, analyst]

Congratulations on your great success completing the transformation, which you nicely went through. We've been here with you the whole time. And I think importantly, the base that you've set for growth is one for very high-quality growth with your new business model.

So my question is, what do you think and when will it take the general equities market participants, those who don't know you as well as we do, we on this call do, to really appreciate what they're missing about how great this business is?

[Gagan Banga, executive]

So Craig, like you rightly said, NWI is one of our most incredible investors, which is -- has faith in the management despite all the odds. So firstly, thanks to you and the rest of the investment team at NWI for continuing to support us.

I believe now that the 3 quarters, 4 quarters of stability around AUM, balance sheet, et cetera, now that the process of degrowth has kind of stalled over the next quarter or so, the process of growth would take place and would accelerate. And as that happens with the limited experience and knowledge of the capital markets that I have and my interaction with investors, I believe that should be 50% of, so to say, the problem getting unraveled for equity investors.

The balance 50% is around governance perception, which is a topic which is uncomfortable. It's is basically the elephant in the room and it should be addressed squarely. The fact of the matter is that the company suffered a hell of a lot for folks who were trying to shock the company and trying to take advantage because we were vulnerable, because we were so widely held.

We've come through that, and we've come through that with fire. And we've just, in India, had at this festival of Diwali, where we celebrate Lord Ram's return. And when I was celebrating Diwali, I was thinking that this is almost like the Diwali for Indiabulls, right? So we have returned and we've returned with glory. We were put through a test through fire and we've come through that.

The courts have upheld us. The various regulators have upheld us. And as we speak today, we have perhaps one of the strongest Boards in the country amongst financial institutions. I just come through a Board meeting with last 3 hours to just discuss regularly -- regular quarterly results.

The Audit committee lasted for 2.5 hours. We have a regulatory measures, oversight committee, which convened on Saturday and lasted for 3 hours. So before we come in front of you with the numbers that we come in front of you, there has been 8.5-hour discussion at the Board level. That is with people who are deputy governors and bank MDs and Supreme Court judges and audit partners and what have you.

So with this kind of governance and with the kind of come through that we've seen, there is -- and with growth returning, I see no reason why in a quarter or 2, we would not start trading at par and then perhaps be on our book value. I needed to give a growth indication to our stakeholders. I think today, I'm firmly in a position to give that growth indication and there is no reason why book value and past book value should not get cued over the next 2 to 3 quarters.

That said, the management team is not taking any pressure, and we are being abundantly honest about this, about the market cap, et cetera. We are going about our job. We want to be focusing on investing enough capital in technology and being the best-in-class as far as technology is concerned. So that by fiscal '25 that starts reflecting in our cost income.

We continue to invest in our people so that through fiscal '25-'26, we have single-digit attrition numbers on our employees. And if all of this interests the stock market, it is very good for us. If it does not, as a management team, we will still be very happy creating a massive retail franchise, which is creating 0.5 million customers-or-so on an annualized basis, and these are the most timeless customers that you can get in India.

So that's the way that we are approaching this whole issue. I'm quite sure with my experience that there is no reason why the capital markets would not value us appropriately.

[Operator]

Our next question is from the line of Kayur Asher from PNB MetLife.

[Kayur Asher, analyst]

Yes. So sir, if you could kindly share the data on the developer loan book? So you mentioned about the benign trends that you are seeing. So if you could mention what is the outstanding book as of September '22? And what is our guidance as to where would we look to -- see this book by the end of FY '23?

[Gagan Banga, executive]

So I said the book is flattish to last quarter. I believe the AUM would be in the handle of INR 70,000-odd crores as was the number last quarter. And as far as balance sheet is concerned, we have reported that to have also stabilized. For the guidance, we have formally guided, if you go through the earnings update, the first phase itself says that we look to grow our AUM by 10-odd percent in the second half of this year, and that's the AUM growth number. Here on, we will talk only AUM growth, and I'm quite sure that we'll grow 10% hereon.

[Kayur Asher, analyst]

My question was specifically regarding the developer loan book. So what is our guidance for that? And what is the current size of the developer loan book?

[Gagan Banga, executive]

That will degrow by about 20% for the -- in the second half of this year.

[Kayur Asher, analyst]

Sir, any absolute number you would like to quote here?

[Gagan Banga, executive]

Degrow by about INR 2,000-odd crores.

[Operator]

We will take one more question from the line of [ Chandra Shekhar ], individual investor.

[Unknown Attendee]

I just would like to ask on the last commitments, right, after Mr. Gehlaut took the exit. So if that exit approved by all the authorities? And then the updates on the PIL in Delhi High Court and then the EDs in Supreme Court as well as the NCLT cases -- I can see a lot of NCLT cases pending in NCLT.

And your earlier commitments of NSE prime [indiscernible] partners name change, offering the board seats to the [indiscernible] investors and all this. So one concern actually, not disclosing all this to the exchanges, and we being the retail investors actually finding a very hard time because we are a very long-time investor and then our capital eroded almost half of it actually. So could you please kindly help on this? I would really appreciate.

[Gagan Banga, executive]

Sir, I'm sorry that your capital eroded, and it's beyond my control in terms of how capital markets move. But I would kind of disagree as to that we're not reporting anything to the stock exchanges. Whatever we communicate with you either here or we put it in writing in our earning update is all uploaded on our website and on our stock exchange Disclosure section. Everything is up there, and we are not trying to do anything which is off the record on such a formal sort of a platform. Mr. Gehlaut -- and I'll deal with each of these points, and if I leave any of them, feel free to kind of say that you did not answer this.

Mr. Gehlaut's stake sale happened to the world's largest financial institutions. His stake fell down to 9.5%. We have formally approached the various relevant authorities as well as stakeholders for this depromoterization. I would say 80% to 90% of the stakeholders have approved. The balance 10% to 20% should approve, fingers crossed, through the course of the next 30 days.

As they approve the depromoterization would happen. And once that happens, then we will logically move away from the Indiabulls brand and rebrand ourselves. It has to be a step-by-step thing. Though Indiabulls brand has a large brand recall, and it will be a massive investment in rebranding ourselves.

But before that, we have to take a step-by-step logical path to it, and we are on that path. The most important step in that was in the context of India, where depromoterization is a rare sort of a thing. We must said you'd be founder to say that the institution is more important than him and for him to have taken this initiative. So I believe that he will continue to make sure that the organization and the institution over the weeks and months to come, becomes more and more independent. He's anyways not on the Board. The Board is completely independent of him and the Board is led by Mr. Mundra for the last 2 years-or-so.

So it's well on course. As far as the P&L is concerned, to the best of my understanding for one reason or the other and the legal luminaries are better place to elaborate on this. But despite our best efforts to get that PIL lifted, it does not get lifted. If it does not get lifted, how do we get it dismissed.

The player of the folks who came on the PIL, when they find it against us was that someone should look into our books. And they prayed someone should look into our books. And what happened was that everyone looked into our books. And when everyone looked into our books and filed affidavits saying that their books seem okay, and there's nothing out of the ordinary in their books, they never came back, right?

So after this, what else can management do, I do not know. As far as the ED matter is concerned, we've already filed with the stock exchanges, that first, the Honorable Bombay High Court quashed the underlying predicating offense, as they call it in the ED terminology.

And then on the Honorable Delhi High Court quashed this ED proceedings itself. So as we speak, there are no proceedings against the company. Both the division ventures have noted that there has been a great abuse of law against the company, which has resulted in all stakeholders getting harmed.

Your capital has halved, my blood pressure has increased. So both of us are sufferers. But today, I'm quite sure that the management team will focus on execution and recoup your capital and slowly my blood pressure will also get okay. So we are, as far as that proceeding is concerned, also on a strong wicket.

All in all, I think we are in a pretty good place where we are today. We have to focus on execution. We have to focus on building our retail disbursal franchise. We have to transform our wholesale business from the NBFC balance sheet to the platform. For that, we have to rightsize the organization, move people, do all of that, which is hard core execution.

Fortunately, we finally have the management bandwidth to focus on execution versus focusing on fighting these very, very motivated battles. So having done that, there is no reason why we will not be able to excel on execution and create value for all of you.

So that's where I would like to end this call unless I have not answered someone's question which was already asked. If there are any further questions, to feel free to email them to us, and we shall certainly reply. And we shall connect some time in towards the end of Jan early Feb with our quarter 3 earnings, which I hope will be as stable as the first half earnings. Thank you so much, and I look forward to speaking with you in the new year. Goodbye.

[Operator]

Thank you very much, sir. Ladies and gentlemen, with that, we conclude this conference call. Thank you for joining us, and you may now disconnect your lines.