Muthoot Finance Ltd
NSE:MUTHOOTFIN
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Muthoot Finance Ltd
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Ladies and gentlemen, good day, and welcome to the Muthoot Finance Q4 and FY '23 Earnings Conference Call hosted by DAM Capital Advisors Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Sanket Chheda from DAM Capital Advisors Limited. Thank you, and over to you, sir.
Yes, and very good evening to all of you. Here with us to discuss the Muthoot Q4 results, we have the entire management team with us, starting with George Alexander Muthoot, who is the Managing Director; then Alexander George; George M. Alexander; George M. George; and George M. Jacob, Whole-Time Directors; then Eapen Alexander; and K.R. Bijimon, who is Executive Director; and Oommen Mammen, who is the CFO of the company. Without further ado, I will hand it -- hand the call over to Mr. George Alexander Muthoot for their opening remarks, which will be followed by question and answers. Over to you, sir.
Thank you. Good evening. This is George Alexander Muthoot, Managing Director. As advised, the Executive Directors of Muthoot Finance are also present here along with the CFO and also the COO, Mr. K.R. Bijimon. This quarter, business has been good. We have the highest ever quarterly gold loan disbursement of INR 51,850 crores. That's the highest ever gold loan disbursement. And we have an all-time high gold loan growth in any Q4 of INR 5,051 crores. That is the highest we have in any quarter 4. And we have an all-time high interest collection of any quarter of INR 2,677 crores. That's also a very good performance. We have increased -- there's an increase in the consolidated profit after tax 8% Q-on-Q at INR 1,009 crores.
Along with the subsidiaries, our total branches as on 31st March 2023 is 5,838 (sic)[ 5,858 ] with an addition of 259 new branches opened during this year. Muthoot Finance is also certified as a great place to work for the second year in a row by Great Place to Work Institute. Muthoot Finance has also been certified as India's most trusted financial service front for the eighth year -- seventh year in a row by TRA's brand trust report 2023. In addition to Mr. Amitabh Bachchan, Muthoot Finance has also engaged Mrs. Madhuri Dixit as our brand ambassador in February 2023. The consolidated AUM stands at INR 71,497 crores, which is up by 10% quarter-on-quarter.
The stand-alone AUM of gold loan stands at INR 63,210 crores, which is also up 9% quarter-on-quarter. The stand-alone profit after tax stood at INR 903 crores from the quarter for this quarter. We have also launched a few new products. One is the small business loans, which we have started. It is the backbone of the Indian economy, accounting for 90% of all business in the country. We have launched small business loans to address the prevailing gap of credit access to MSME segment with an unsecured loan ticket size of up 10 lakhs. We have just started it. We have commenced operations in metros, and we plan to expand into Tier II and Tier III locations in phase 2.
We are doing it on an initial basis, and we will see the progress, how it is turning out and then go forward. We have also started a micro personal loan, a small personal loan as part of our initiatives to leverage the existing customer base and [indiscernible] as a one-stop financial service provider. We are now offering a preapproved personal loan, we call it micro personal loan to eligible customers. It is an EMI loan for 9 months to 12 months. The maximum loan [indiscernible] and the entire loan journey is digital. The launch of this product has expanded our product base, increased our customer engagement program progress and now cater to their diverse financial needs.
This is one thing which we've seen in Muthoot Finance that we have started the personal -- micro personal loan, which is an EMI loan. The subsidiaries have also now on -- the growth has been revived in the subsidiaries. The [indiscernible] disbursement has started growing up -- going up in this quarter, and there's a significant jump of 153% in disposal during this quarter of INR 84 crores compared to INR 33 crores in the last -- previous quarter. We plan to grow the disbursement of 400% compared to financial year '23. Our Muthoot Home Finance was not growing much, but then 400% though looks high, but definitely it is a good -- absolute numbers, it will not be that high, but we plan to grow 400%.
We also plan to expand the home finance network by opening 26 new branches across states in this year. The vehicle loan disbursement by Muthoot Money has also started well and against -- in 2000 this year, last month, we dispersed INR 20 crores. Belstar Microfinance has crossed INR 6,192 crores as lower AUM as of March, and the net worth crossed INR 1,000 crores, which is a historic landmark, and the revenue has also crossed INR 1,000 crores, a year-on-year growth of 42%.
Collection efficiency continues to remain at 99% for regular accounts. The profit after tax of the company reported INR 130 crores, which is again a year-on-year growth of INR 189 crores. The corporate social responsibility, Muthoot Finance has fulfilled its corporate social responsibility commitments with a spend of 101% during the financial year. We have spent a total of INR 96 crores is [indiscernible] in excess of our statutory budget. The company has allocated more than INR 100 crores for the next financial year with an emphasis on areas of environment, health and indication to alleviate the poverty and uplift the financial [indiscernible] sections of the society.
We have declared an interim dividend for the financial year '23 of 220%. That is INR 22 per equity share of 10, involving a payout of INR 883 crores. We have raised INR 250 crores through the 30th public issue of secured redeemable NCD and we have also launched a new marketing campaign "Kholiye Khusiyon Ki Tijori!". So this is the gist of the financial results of this year. I think now I would stop here and open the floor to questions and comments from the investors. Thank you.
[Operator Instructions] The first question is from the line of Abhijit Tibrewal from Motilal Oswal.
Yes. Sir, I have 2 questions. And first of all congratulations to you and the team, definitely a very, very strong quarter in terms of our gold loan growth. So, sir, I mean my questions predominantly revolve around that. Just want to understand from last quarter to this quarter, what has really changed that has helped us deliver such strong growth in gold loans? Is it predominantly, I mean, higher prices, higher gold prices? Or is it also to do with some lowering of aggression that you're seeing from maybe banks? That is the first question.
Basically, what is it that has helped you kind of deliver such strong gold loan growth during the quarter? And secondly, sir, if you could just explain why is there such a sharp jump in your employee expenses during the quarter versus the last quarter of matter, the last quarter of the prior year?
Okay. Thank you. Gold loan growth for this quarter has been robust. A few things else we have actually started a great campaign for involving all our branches and staff to do more gold loan business. And I think that is paying dividends, our brand ambassadors and our gold loan initiatives also are [indiscernible] and that is what I also said last time. Secondly, the economic ability also briefly has started picking up, and the demand for loans and gold loans have increased in this quarter.
As you definitely said, the higher gold price has also helped but not to the extent of the growth, but definitely, it has helped. And again, as I was saying last time also, I feel that gradually the competition of the excitement of the banks, et cetera, in gold loans is slowly waning because as time progresses, the excitement of the banks, et cetera, to gold loan also [indiscernible], and that is also a fact. So that is one part of it. The gold price is another, but most important, we have been -- the economic activities have picked up and we see gold demand, and our prices have also started digging in more and more business.
There is a sharp increase in the number of employees. We have increased more than 1,000 employees during this quarter. That must be one of the reasons for that. And overall, there is always a hike in the salary also. Increments have also come in every quarter. Every year, probably this is [indiscernible] this year. We have not looked so much into this. There is no big aberration we have seen in that.
Perfect. Just one last follow-up question here. I just wanted to understand that given that you talked about these couple of things, higher gold prices helping economic activity picking up, which is leading to better gold loan demand. And as the margin excitement of banks gold loans [indiscernible], is it kind of giving you higher confidence of better -- or let me put it this way, would you now start guiding for higher gold loan growth versus what you've been guiding in the last few quarters?
And sir, one more question on the sector. I just wanted to understand, is it a common practice in gold lending that once the contracted tenor gets over, a customer can repay the interest and then the gold loan can be rolled over based on the current market prices of gold prices? Is that a common practice in the gold lending industry? And the other thing related to question is have you had some conversations with the RBI around this practice?
Okay. Your question was whether we are seeing better growth in the coming months. Yes, that's what we see. And we had all the way over the past several years, we've been guiding a growth of 15%. And only last year, we were on the -- just past year, we were unable to do the 15%. We were able to do only about 7%. But I'm sure this year, we should be doing in excess of 15% this year growth. So that's what we'll come back to the earlier 15% plus growth this year.
That is the first part of it. The second part, you said people coming after the period. So on the gold loan side, 90% of the loans get closed before 12 months. It's only that the 10% which goes beyond the 12 months [indiscernible] few of them may come for that. And because this is not fungible and easy. Because there is no entry loan exit loan. It is easy for the customer to go in store and take the same loan, et cetera. So it is better practice for us to track the interest and then renew the loans up at the level. But there are very few people who do that. Most of them before 12 months, it is almost closed. It's very few customers who go beyond because our period is not -- some countries have 3-months, 6-months et cetera. Our loan tenure is 12 months. So after 12 months, more than 90%. 95% of the customers close their loan at that time.
Got it, sir. This is useful. Maybe I'll come back to the question queue if time permits. Wish you unlocking the very best for the next year.
The next question is from the line of [ Rahul Shah ] from Shah Associates.
So my first question is, you said in the previous con calls that -- and also in the TV interviews that Muthoot Finance is a very operational intensive business. So can you tell me what exactly do you mean by that? And how exactly the Fintech players in the bank with whether they are small banks or big bank, not able to replicate that model of yours or to compete with that model of yours? How operationally intensive it is?
Yes, I did say about Muthoot [indiscernible] gold loan business, gold loan business of Muthoot Finance which is operationally intensive business because the gold has to physically come to the branch. It has to be physically weighed, checked and also [indiscernible] what should you say, alternative for that? And second, this has to be checked, of course, [indiscernible] et cetera has to be collected.
And then rather more than all the other usual photos, [indiscernible], et cetera, we have to physically pack it, check it and keep it in the showroom. We have to also, what should we say, look at the safety of the strong [indiscernible]. And we have to, again, when the customer comes back to release it, we have to release it in good time. Loan given maybe in 15 minutes, 10 minutes, 15 minutes, 20 minutes time, when it is released when we give it back, we give it in 3, 4 minutes time. The [indiscernible] there's also a liner security system, safety security system, which we have in our branches to store and take care of the gold because we have had earlier very, many attempts at breaking [indiscernible] et cetera, and all this attract all these elements who try to seal these things or -- that is one part of it.
So we have to take care of that not only anybody who does that has to take care of that. The second is, again, the staff. The staff also has to be very careful with staff also because this is gold and cash, which is very attractive for maybe even for the staff also to do some sort of while practice. That also has to be there. So we have a team of more than 1,000 physical inspectors or auditors who visit branches frequently maybe once in a week, once in 2 weeks, depending on the size of the branch, once in a month to check -- randomly check the board packets there with numbers with quality.
So this is operationally very challenging because we have to return the gold to the customer. Actually, the customer has to have a big trust in a gold loan company to hand over INR 100 gold and take INR 60 or INR 70 loan per month. He is actually depositing INR 100 and taking only INR 60. So the trust is also very important. So all this quite a lot of operations challenges and that over the years, we have been able to train our staff also for even the checking of the gold, the assessing of the gold. We don't employ outside as well. So that's what I meant by all this operationally challenging trend. Somebody thinks of this looks easy, but operationally, this is interesting. That's what I meant.
Okay, sir, and next question is, is your AUM dependent on gold prices totally? Or there are some other prices as well? And how do you plan to utilize those factors to grow that? And secondly, where do you see your company in the next 5 to 10 years, both in terms of number of branches and also profitability, specifically for the gold loan segment?
So I think I answered part of that is the first question that is -- there are quite a few things. Gold price is also part of it because somebody can get more money on the existing gold that is gold price is also what part it. But there may be only a small part of it. The most important part is somebody should definitely need the money, and this should be available in that phase to do the loan.
Somebody should need a loan amount and you should have the gold with you, and you should have the mental framework to produce gold and take money, not something else. So if all these things come together, then the business is there. And your question about growth as also on our guidance that we have been growing 15% in the gold loan business over the year, except for last year, which is a difficult year for us for very many reasons, which I've explained earlier. But now I think we are again back on the 15% plus growth faster. I'm sure we should be able to do that not only 1 year in the -- more years to come also.
15% is something which we would always be targeting. And so shortly, we should be opening about 150, 200 branches every year. That is something which we look at the need and necessity for branches in each area and then [indiscernible] with that. And the profitability is when the business also goes, we should see profit also going up proportionately at least.
[Operator Instructions] The next question is from the line of Nidhesh from Investec.
Firstly, on the yields, what are the incremental yields that we have bought in this quarter on the gold loan business? And is there an impact of penal interest circular, draft circular that we foresee on our business? And second part of the question is on digital lending that you are starting. Can you talk about how are we filtering the customers who are eligible for the personal loans? How do we plan to scale the collection infrastructure for that? These are the 2 questions.
So the yield for the quarter is 18.48% and in Q3, it was 18.22% I think we have been more or less able to stabilize the digital loans, which were there in the past. I think going forward, it should remain around these levels. As far as the penal charges circular, I think now it's filled in draft form. Let's [indiscernible] on the final circular so whatever is at the end of the day, if we need to raise a particular amount of revenue, we have to raise it, whether as charges or as interest. So we'll take a call at that point of time.
Mr. Nidhesh, does that answer your question?
Yes, there is also a follow-up question on digital lending. If you can share how are we filtering the customers who are eligible for these loans and also share the collection strategy in case of bounce and overdue.
So we actually -- we don't do any digital lending. We lend only to the customers who come to our branch. So who are our existing customers, we give them a personal loan based on the scores, et cetera, [indiscernible] and collection [indiscernible] the usual collection thing. So nothing different about it.
And for faster processing, digital capabilities are...
Locating customers and probably giving them the exposure. That's all.
The next question is from the line of Nikhil Nyati from Equirus Securities.
Am I audible?
Yes, yes, please. Yes, yes.
Congratulations on a good set of numbers. Sir, I had just 1 question regarding the new players that are coming into the market they have high OpEx, but the low base absorbed the OpEx. And I just wanted to know your view how do they gain businesses through ChannelX, we have understood that they are reducing the interest rates to gain business. Have you come across any instances wherein have you lost the business through these people to these people?
I don't know what the new NBFCs coming with the lower interest, et cetera. Probably banks come up and offer lower interest et cetera, but I don't know about the newer NBFCs coming and offering the competitive rate of interest. As you said, OpEx is definitely there. I don't know how they are accounting for these OpEx, whether they are accounting it on a [indiscernible] basis also, I am not sure.
So definitely, there is OpEx, and I'm not aware of any new NBFCs which have come and probably given very low rates of loans, gold loans. I'm not aware of such companies.
Okay. And sir, the next question is just a data keeping question. Can you give the AUM breakup with regards to the ticket size between 0 to 1 lakh or 1 to 2 lakhs and above 2 lakhs.
I think the average ticket size is INR 70,000.
So Nikhil, no. Right now I don't have this information. We can provide you later.
Okay. Okay. That answers my question. I'll join the follow-up queue if I have any further questions..
The next question is from the line of Nischint Chawathe from Kotak Institutional Equities.
Can you mention the quantum of auction done this quarter?
Auctions. See the auction is very low. I think it's around INR 27 crores.
Last quarter, third quarter?
Just give me a second. INR 223 crores.
Sure and there has been a fair amount of pile-up of NPS. So do you expect large blocks of auction in the first or second quarter? Would we do right or somewhat of right now?
See, these NPS are because they have crossed the 12 months plus 3 months period but then many of these customers who are there in this have paid part interest, et cetera. And they have also requested for some more time for us. So we are in the money for all these loans, and we don't expect any interest in these accounts.
We have roughly around 7.5 tonnes of gold as far as these NPSs are concerned.
So there may not be any large block of auctions. Sure. And the other thing was on the cost front, would you say that on a cost basis, how much of it could be sort of a one-off? And how much of it could be sustainable going forward?
I think this quarter, it is slightly higher because of the -- because when you have a higher growth, we pay a higher amount of incentives to the employees that is one thing. And on the directors [indiscernible] also there is an annual performance in [indiscernible] is booked. So otherwise, I think it should more or less remain somewhere around 3.5 percentage at least for some more time.
And anything that we envisage -- just last question is anything that you envisage in terms of increasing cost of funds?
So, I think the borrowing cost is going up. I think most of the banks in silos are around 8.5%. So I think the cost of borrowing should move in that direction unless we start seeing reversal. I think in the last few days or more week, we are seeing some sort of softening of the rate. But until that happens in a major way, I think it should move more towards 8.5 percentage in the next few quarters.
Even if the interest costs goes up by 20, 30 bps, we should be able to pass it on to loan customers because then if that is so, if the cost of funds is increasing for us is an increase for everybody in the market. So the [indiscernible] So I don't think we have never found it any -- we'll not have any difficulty in passing on such incremental more cost to our customers.
Sir, got it. And I think you mentioned that the trajectory of business in the last 1.5 months has also been strong.
[Operator Instructions] the next question is from the line of Rajiv Mehta from YES Securities.
So sir, when you talk about competitive intensity from banks and the margin slightly waning. These -- I mean, so far, we have not seen any reflection of it in your customer metrics. So when you look at the number of new customers acquired or even reactivation of old customers or even additional loan or additional collateral to existing customers. That metric has been moving pretty slowly.
It's been very stable. So how do we see these metrics kind of improve in the future? And what can drive more customer acquisition, more customer activation, what [indiscernible] we will put for that?
So we have been putting quite a few marketing initiatives. We are doing a lot of outside market activities also. That is definitely working in customers. So you should definitely understand this is a very short-term process, the average tenure of 3 to 4 to 5 months in very short. So customers come in, customers go, new customers come, existing customers come back again. So it is not that we get a lot of new, new customers, the new customers additions on there, definitely, we are adding customers, new customers have been added this year. New accounts have been added, that also happens.
So I think as an ongoing process, we'll be doing more and more initiatives to get more business, more customers, new customers also. Also existing customers can also bring in more of their loans because what we have seen is every customer has more than 1 loan probably with us or somebody else. Getting more of this old business or more of this business from other institutions also is very good. So existing customers can be giving us more and more business also.
And sir, do we internally track that what percentage of customers, which went to competition in the last couple of years because of their [indiscernible] activity are coming back to us?
These are small loans. We don't know how to keep a track of somebody who has gone to another bank and will come back to the [indiscernible] that we have gone to another bank because it is not a takeover, et cetera. So it [indiscernible] took the next loan from [indiscernible] bank and the third loan instead of going to that bank after [indiscernible] come to us. So very difficult to keep that track because it's not related to some property, et cetera. So in the property, we would have note, this property was pressed to that bank, and now which has come to us, so this fungible gold loan. So I don't think it is -- it's only the impression we get from our field team in the branch that people -- whether they have loan insured, et cetera, it's the impression we get from us. Every customer, even if you [ go to them ], they come, process our loan and then post to the next slot. So we will not know where the customer is going.
And just lastly, any change in the product level interest rate in recent months, including April and May?
No. I think we constantly do [ dwelling ] of the products region wise, geography wise, et cetera, to cater to different sectors and different demands. So that is an ongoing process, not very widen changes though, not any -- as you would have seen, we are not taking off any ultra-loan services, et cetera. But of course, we always offer differential rate. So maybe 12% loan is always there, 14% is there, 18% is there, 19% loan is there, all these loans are there. So what we need from a consolidated or a blended yield is what we are looking at. So what we said earlier, we have about 18% yield, that is what is a blended yield.
[Operator Instructions] The next question is from the line of Shweta Daptardar from Elara Capital.
Sir, I have couple of questions. The first one being, while the India loan portfolio is behind and they have been migrated to higher interest rates. So have they been migrated, say from 7%, 8% or to directly 18%, 19% plus?
Okay. See, there's no migrations, et cetera. It's the -- these are rates -- if loan gets closed, when he comes for the new loan, they have to take the new loan at the new rates. New rates can be 12%, 18%, 15%, et cetera. It's not that somebody has been migrated from 6% to 18%, no, no. We would have stopped that scheme and the customer has to release that loan and probably when he comes for the next loan, he will have to jump in at the new existing rates only.
Okay. Secondly, as far as growth is concerned, so firstly, commendable growth on the gold loan traction -- on the gold loan side, but just -- because you mentioned that it cannot be completely attributed to gold price rise. Of course, you gave other reasons. But historically, if I go back and see that Q4 is always a seasonally strong quarter, so is there a seasonality? And if so, what is that thing which is driving the seasonality every fourth quarter of the year? And then if the answer is yes, then how do you see quarter-on-quarter gold loan momentum for next 2 quarters?
Okay. So what we said is, on the fourth quarter, yes, basically that is a good quarter. This year's fourth quarter has been a historical high, that's what we said. The historically high on the fourth quarter. So compared to any other fourth quarter, this was the highest. That is from first quarter. Second is that we have given a guidance of 50% plus this full year. So probably we should be able to -- in the coming next year. So every quarter, we should see better -- it's not that every quarter can be the highest quarter. So we see that we get the 15% overall yearly growth.
That was great. Sir, one last question on the increment. So we have also seen tonnage improvement this particular quarter. You also mentioned that there are customers who open and close the account, there are renewals happening. So is this the reason -- so what is the reason for tonnage improvement at a time when competitive intensities have been still clearing up?
When the gold loan growth happens, tonnage also has to go up. It is not directly proportional to the growth because the gold price is also a factor. But then, you have seen a gold loan growth in this quarter. So definitely the tonnage also has to go up.
Okay. Okay. I'll come back -- I'll take this offline.
The next question is from the line of Bunty Chawla from IDBI.
Congrats, sir, on a good set of numbers. Firstly -- sorry, I have joined late, if you have already shared the number. Branch expansion for this year and RBI approval for a number of branches, what was that number?
So we had an approval for 150 branches. And this quarter, we opened 67 branches. And then -- that 150 is complete. So on an ongoing basis, we will be opening more branches.
So for this FY '24, what is the target of branch opening?
Maybe 100, 150 branches we should be opening every year.
Okay. Okay, sir. And secondly, sir, what is the increase in the average ticket price on a sequential basis or Q-o-Q basis?
Average ticket rate. Now it is 17%.
So what was the growth on a Q-Q basis?
So what's the question that you wanted to know? The average ticket rate last quarter. This grown into 17%. That's what you wanted to know, right?
Yes.
So December, it was INR 70,000; March it is INR 75,940.
Okay. INR 5,000 difference. Sir, lastly, in previous question, on the higher expenses you said. So what should be the normal run rate we should carry for next quarter or full year '24, if you can highlight on that?
Yes, we think we expect next year -- full year to grow by 15%.
And sir, on OpEx part. As the previous question, you said, few, for example, if a director remuneration was higher during this quarter, so for full year FY '24, what should be the expected OpEx we should carry -- we should consider?
So that's what we are saying in the earlier question, so we are expecting around 3.5%.
The next question is from the line of Abhijit Tibrewal from Motilal Oswal.
Sir, again, just one thing which has kind of bothered me a little bit, I just want to understand this or clarify this. I recall, I mean, maybe a quarter or 2 quarters back, I mean, there were -- I mean, articles in media where it was often talked that banks at the margin were giving out personal gold loans in the cap of agricultural gold loans, which qualify for PSL. So I mean, have you seen some change there? Or are those practices still continuing? I don't know somewhat weekly recall we've been highlighted these practices to the regulator. So have you heard anything from the regulator or have these practices now stopped?
We have. As you said, we have highlighted into the regulator. We hope -- expect that they would have taken some action but anyway, we have not got the confirmations from the regulatory regarding this. We have only said as we don't expect them to get back to us with a clarity of this also. We have raised our concern to the regulatory. That's it.
But sir, are these practices still going on? Or have they stopped?
I think we are also probably, we should say, lost interest in debt markets.
The next question is from the line of Vaibhav Badjatya from Honesty and Integrity Investment.
Can you give me the total absolute amount of P&L panel interest that is recognized for the full financial year, this basically FY '23 and FY '22 absolute amount of payments.
Sorry, can you repeat your question?
Absolute amount of penal interest for FY '23 and FY '22?
We don't have record that interest. So everything we recognized as an interest.
Yes. But I mean, for the loans that become -- what you will be charging some -- [ some physical charge ], right? So I just want that additional number, what impact in terms of absolute amount?
So to give, I don't have absolute numbers. To give an indication, so normally, our rates becomes 22 to 24 after 12 months. And I know there is a 2% additional penal interest which is charged on those overdue loans.
Okay. So 2% addition. Okay, that's it from my side.
Yes. So you need to link it to the fact that most of the loans get closed before 12 months.
90% to 95% loans get closed before '24.
Yes, yes. I understand it. So that amount will be only for the overdue or the loan that has been -- I understand that's it from my side.
[Operator Instructions] The next question is from the line of Shubhranshu Mishra from PhillipCapital.
Two questions. The first one is, what is the net customer attrition we have seen in the last 2-odd years because of the competitiveness? That's the first part. Second is, is the competition also from various other NBFCs and compacts, which are into small type of personal loans as well as small ticket business loans. And the third question is, what is the total payout for Mr. Amitabh Bachchan and Madhuri Dixit annually for brand promotion?
Shubhranshu, can you repeat your first question?
What is the net customer attrition in the last 2-odd years?
Customer acquisition. There is a slide in our presentation. So if you look at that, there is a consolidation of the 3.33 lakhs during this quarter. And overall, if you look at the total customers, number of customers have increased by -- increased from 52.33 lakhs to 53.23 lakhs. So that is a net increase in the customer addition. And also the new customer addition numbers we have given.
So the point, we need to see is that, we have a large customer base. And every quarter we have been able to add around 3 lakhs, 3.5 lakhs new customers. So we have a large customer base. A lot of them have availed the loan and a lot of them are currently not availed, which we try to tap them on a regular basis. That's what we give always the information about fresh loans to inactive customers. So the customer base is -- those customers who have presently a loan request, this is a very short period loan. It gets churned every 3 months, 4 months.
Okay. The second question was -- what was your second point, sir?
Are we facing competition from other NBFC and compared to small-ticket bookings loan [indiscernible].
I don't think people who take gold loan, definitely, will also be taking some other loans also. So it is not that because somebody is getting a small ticket loan, et cetera, substituting it for a gold loan or a gold loan substituting for that. I don't think we have never faced such a situation, sir. About Amitabh Bachchan, et cetera, I think we'll pay some decent money to them, sir.
What is that as a part of the OpEx -- that's what I'm trying to say.
I think we paid some decent money. I think that's better there.
The next question is from the line of Pavan Kumar from RatnaTraya Capital.
Sir, can you comment about whether the NIMs have stabilized? Should we assume that the current levels are at stabilized levels? And also, any comment are there any comment on the cost of funding going forward?
Sure. I think we have always been getting spread of about 10%. I think we should -- we will try to keep that spread at 10%, aiming plus or minus 5.5% is what we would like to give. I think it should stabilize at that level, sir.
Okay. So currently, the spread for this particular quarter are around 10.44%. We are seeing 10% should be normalized levels for the next quarter?
Around that 10% should be something which we should be able to do.
Thank you. Next question is from the line of Manan Tijoriwala from ICICI Prudential AMC.
Just 2 questions. One is how much is the accrued interest? And second, what is the proportion of this personal loan book that we are making? What will be the average ticket size and where do you see this proportion being in the near to medium term on the stand-alone book?
Interest accrued is INR 1,843 crores.
Personal loans are new in to salaried customers, average ticket size is about 4 lakhs. And the book should be in the range of about INR 500 crores.
Sorry, come again please.
So the personal loan book as of March is around INR 544 crores.
Right. And how much do we intend to grow it, sir, in the near term?
So no, we started this business almost 7, 8 years back, and we have been very careful in terms of understanding this business. And though we have been running this business for last 8 years, we have done only so far INR 544 crores. So going forward also, we'll do a calibrated growth. We understand that this is an unsecured loan. So there is a careful policy around the personal loan business.
So if there are no more questions, we can wind up the call.
Sir, that was the last question. I would now like to hand the conference over to the management for closing comments.
Thank you, investors. You have always been a support to us, so always given us confidence. We're always proud us to do better and better. And from our side, we will see -- we will definitely ensure that we do the best that we take care of all our stakeholders, including the investors and all other stakeholders. So thank you. That's an assurance from Muthoot. So good day. Thank you.
Thank you, Sanket. Thank you DAM Capital for arranging the call for us.
Ladies and gentlemen, on behalf of DAM Capital Advisors Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.