PTC India Financial Services Ltd

NSE:PFS

Earnings Call Analysis

Earnings Call Transcript 2024-Q3

[Operator]

Ladies and gentlemen, good day, and welcome to the Q3 9 months FY '24 Earnings Conference Call of PTC India Financial Services Limited. [Operator Instructions] Please note that this conference is being recorded.

I now hand the conference over to Mr. Abhinav Goyal, Vice President of the company. Thank you, and over to you, sir.

[Abhinav Goyal, executive]

Yes. So thank you so much, and good evening to all esteemed shareholders. Let me first introduce our management team available to address today's investor call. We are having our Director, Finance and CFO, who is additional charge of MD and CEO as well, Mr. Mahendra Lodha. We are having Mr. S. Siva Kumar. He's Executive Director of Credit. We are having Mr. Kalur Srinivas, he's Executive Director Monitoring. I may request Mr. Mahendra Lodha to kindly take forward the today's discussion. Over to you, Lodha, sir.

[Mahendra Lodha, executive]

Yes. Good afternoon, our esteemed shareholders. So welcome to this presentation. So we are presenting the Q3 results. So in this quarter, we have achieved PAT of -- PBT of INR 67.48 crores, and PAT we have achieved INR 50.37 crores. As far as the few ratios are concerned, so yield on earning portfolio is also 11.37% and capital adequacy ratio is also 44.45%, which is higher as compared with the previous quarter, which was [ 38.58% ]. We are having a comfortable liquidity positions around 30 January, we are having liquid funds of INR 872 crores, and we are aggressively looking at proposals. So during this quarter, we have made some disbursement of around INR 151 crores, and we are aggressively looking for good proposal for the further disbursements.

So during this quarter, we have achieved interest income of INR 200 crores and total income was INR 204 crores. Interest and financial charges were INR [ 102.62 ] crores, and impairment on financial instruments, INR 8.44 crores. Other operating expenses were INR 25.57 crores and total expenses were INR 136.84 crores. So PBT was INR 67.48 crores. And after the tax expenses of INR 17.11, PAT is INR 50.37 crores. As on 31st December 23, our loan book was INR 6,495 crores. So few improvements are there in that ratios also. As far as yield is concerned, we have achieved 11.37% as compared to 10.89% in the previous quarter.

Cost of funds have increased slightly because of the market trend. So cost of funds were 8.89% as against 8.48%. Our NIM has also improved from 4.46% to 4.92% as well as the spread is 2.48% as compared to 3.41%. So we have resolved through staged assets also during this quarter. So Stage 3 gross loan was INR 776.05, for which we have already made the provision of INR 447.32 crores. So net, net exposure is INR 328.74 crores. So our -- we'll again go through in the detail, whatever resolutions we have made during the previous quarters.

As far as market cap is concerned, market cap around 30th January was around INR 4,000 crores, and I think there is no any major change in the shareholding as on 31st December. So over to Mr. Abhinav Goyal.

[Abhinav Goyal, executive]

So very good evening again to all esteemed shareholders. So there were a few developments which happened since we last met in the market. One is there is recent RBI circular where RBI has increased the risk rate for NBFC in general other than certain specified NBFC. So your company has wonderfully placed and despite the increase in the risk rate in general in the market, we not only negotiated well with our lenders because we have shown the trust we are having, the business potential we are having and the kind of portfolio we are carrying as of now. So they all well recognized. And although there is a nominal increase in comparison to the RBI circular, yet we are well within the very competitive limit. That is one.

Second, recently Government of India Honorable Prime Minister on the 22nd of January auspicious day of Ram Lalla in Patna has announced that Suryodaya scheme so as you are well known that your company is into sunshine sector, our focus is to sunshine sector. So we are also visualizing that this will be a nice opportunity for your company to have a tremendous growth in coming future. So that is the 2 major developments which has happened very recently so we thought this [ repertoire ] to put for the consideration of esteemed shareholders.

I now request ED, Mr. S. Siva Kumar to kindly take forward the discussion.

[S. Kumar, executive]

Good afternoon, everyone. Thanks for joining here with us. And as my colleague Abhinav had said, we are exploring this sunrise sector, and we're trying to contribute our mind, and get more contributions and get piece of part of the business so that we will have enhance our value chain in which we are already there. So that's one thing. And then apart from that, we also recognized few other proposals and we are trying to improve our portfolios as well as the returns from the portfolio. So we expect that the second quarter, this quarter will be of good business growth and prospects are positive. Over to Abhinav.

[Abhinav Goyal, executive]

Yes. So our company has done very good on the portfolio front as well and we resolved 2 major accounts during this quarter. So we are having Mr. Kalur Srinivas, who is having decades of experience in banking only. So I request sir to kindly elaborate how we have resolved and going forward.

[Kalur Srinivas, executive]

Good afternoon, everyone. Srinivas here. I think as Abhinav and Mr. Lodha both have mentioned, the focus continues to be on the -- resolving the remaining sticky assets. We have implemented the resolution plan and with regards to ILFS Tamil Nadu Power Company Limited and also Meenakshi. So both these accounts have been implemented. And we also continue to focus in terms of trying to move ahead in terms of resolution on the remaining larger -- large-ticket sticky assets, whether it is Danu or whether it is Vento Power or NSL Nagapatnam. So this calendar year, maybe we will try and see what breakthrough we can have as far as these assets are concerned.

[Abhinav Goyal, executive]

So we'll like to have this call precise to the subject and the story we are carrying through moving forward. We may take further questions with any the audience is having. So we are happy to answer that.

[Operator]

[Operator Instructions] The first question is from the line of Manoj Alimchandani from Afrs.

[Manoj Alimchandani, analyst]

Can you hear me clearly?

[Abhinav Goyal, executive]

Sir, please go ahead.

[Manoj Alimchandani, analyst]

Yes. Mr. Lodha, Mr. Siva Kumar, Mr. Srini, Abhinav. At the outset, thanks for excellent presentation and a very crisply given details, highlights so hats off to you. Now I would like to come to ask a few very, very specific issues and important issues. And I would like to get your feedback on each of the important points. I would also give some suggestion.

One is Mr. Das of IREDA, they are Directors, CFOs and the Ministry of Environment officials also interacted with me in Mumbai, and a very detailed interaction and they implemented all my suggestions and see the kind of wealth they have created. It is the same sector but the kind of wealth they have been creating and have implemented all the suggestions. Also REC management came to Bombay and interacted and see the time of re-rating has been done they have been implementing all my suggestions. Very, very closely, they listen to us, they interact with us. So I would have expected you to come to Bombay and interact just instead of doing a voice con call. Earlier, you had done a Zoom interaction and the parent company also. So in future, I would suggest, don't wait for 3 months, come to Bombay, interact with us. It's very, very important.

Next point, it is how you are doing your business, you are in the same sector as IREDA and REC, right? Your focus was on renewal -- renewables. In the last interaction, Mr. Director was there, Siva Kumar, right? You had just taken over and we had a very good interaction, right? You had shared you plans and you have rich experience earlier and about positioning yourself in a renewable business and take off. But see, what is happening in competition what IREDA and REC are doing.

They interact with us physically in-person in Mumbai more often, and they have been much more successful than you, although I wish you all the best, but ultimately, wealth creation for investors and the promoter, PTC India, is much more important, and you have more experience than IREDA in terms of listing and interaction. And you are good, better learnings because one learns through mistakes and through experience, bulk business, bad cycle. So you have the advantage of that. So you could be much ahead, much more than IREDA. REC, of course, size is there, but you have a smaller base so you can show much higher growth. We are talking about solar, we are talking.

But I would like you to highlight what is your positioning going to be there in the solar business, renewable business, rooftop business, including our comments on the Finance Minister speech today, and what our Prime Minister, Modi also mentioned about it. You have the advantage of being the first among the calls in the renewable business after the budget speech, right? So Mr. Lodha, I would like you to respond to that, especially on the prospects and how PTC Financial can position to grab the major, major big opportunity highlighted by the FM and the Prime Minister. It's going to be huge and on a small base, just imagine when you come to Bombay and interact, we can give -- I can give you further ideas. I would suggest if you can come next week itself, it will be good, right? Mr. Lodha respond to that.

And another, third point is would like to know from you, what are the developments in terms of relationship with RBI and their questions? There were some issues in the...

[Operator]

Sorry to interrupt, sir. May we request you to rejoin the queue for more questions, sir.

[Manoj Alimchandani, analyst]

Yes, let me just complete on RBI point. There were some issues, please clarify that. The CFO or the compliance officer can clarify on the development related to RBI. Is everything clean? Or is there any outstanding investigation?

[Mahendra Lodha, executive]

Yes. So first of all, yes, huge potentially is there in this particular business like solar and other new emerging sectors in green infra. So definitely, we are looking good proposals and we are in the process of this increasing our book size. So all out efforts are being made. And second thing sir RBI inspection has already been done for '22, '23, and we will address the things and whatever we are addressing.

[S. Kumar, executive]

Thank you, sir. Thanks for recalling our meeting in Bombay and as you complained that definitely, we would like to take your inputs and we will shortly travel and see you in-person also. But we are delighted that you have joined our call and we are happy to interact and take your views because [indiscernible] to us. As you said, the kind of announcements which have come from the government, especially on the solar rooftops by Honorable Prime Minister. So we are in touch with I believe it's the implementing agency, namely REC though it is going to be of a rooftop which is more of a B2C segment. But still, we will be involving there and definitely, we will bring our expertise in this business because we are already there in this business, as we said.

And we are in touch with them. We are in decision with them. And definitely, we will be bringing value to our shareholders. And thanks for your comparison with IREDA and REC. Yes, we are well equipped because we have learnt our learnings and we have much expertise. Definitely, we are exploring a big chunk of business, which will definitely add to our small base in a very big way.

Well as regards to your query on the RBI thing. RBI inspection is over. There is no investigations, per se. And the RBI inspection report for 2021, '22 has come out well and there was no divergence or no malfeasance or no such things were observed. And we have submitted our observations and our comments and our compliance with their findings, and we are almost up to date with the RBI's requirement and whatever the stipulations they have made in terms of forming the -- formulation of the policies and procedures, which we have put in place. And I can assure you that there is no malfeasance or no diversion or anything of that sort has come out in the RBI report. That is the one thing I can assure you, sir, at this moment.

And your points are well taken, and definitely we are looking at every business opportunity to further our business interest and add values to our shareholders.

[Operator]

The next question is from the line of Aditya Singh, who is an investor.

[Unknown Attendee]

Am I audible?

[Operator]

Yes, sir. May I request you to use your handset, please for optimum audio quality.

[Unknown Attendee]

Yes, sure. So besides Aditya Singh, I'm an existing investor in the PFS. and I would like to highlight that PFS is not doing well in terms of rewarding to shareholders. Hello?

[Abhinav Goyal, executive]

Yes sir. Go ahead.

[Unknown Attendee]

Yes. So PFS is not doing well in terms of rewarding to shareholders. See, solar is one of the fast funding opportunity in India. And I do not know why PFS has funded road projects and the multiple road projects, road, wind power and hydro power. Why PFS is not focusing on the renewal energy? This is my first question.

The second question is, what is the status of NPA as on date? What is the status of NPA quarter-on-quarter basis? And what kind of resolutions you guys have done to clean the balance sheet? Because what I could see that the CFO is also playing the role of CEO and he's having the dual role, additional charge of a CEO. So who will bring the business -- additional business for the company.

Because CFO are different function. CEO is a different function. So we would advise the PFS to have a sizable team to tap the renewable energy market, and there should be a proper CEO in the company who is having good integrity. I hope PFS has learned from the past mistake. And what I believe the function of CFO is more on the fundraising for the company. So why a person is having dual roles? May I request you to please answer, sir, my both questions.

[Mahendra Lodha, executive]

Sir. So as regard to your first question, I think there is a contradiction in regard to at one place, that statement is that we are spending to diversified sector including roles. And at the same time, we've been pressed to focus to a strategic sector, renewables. So although we are focused to fund green -- sustainable green infrastructure finance so be it solar, be it wind power, be it electrical with a charging station, be it e-mobility, at the same time, we are open to other good exposure also to other infrastructure sector, where there is an opportunity to make money. So the ultimate goal is to create value to our shareholders, be it from one segment, be it from another segment, the [indiscernible]. And it should be creating the value to the company in turn to the shareholder, right?

Now as regard to the answer of your second question, yes, of course, integrity was one word you mentioned. So in all our dealing, we are quite transparent and you must appreciate the fact that probably we are among the few NBFCs in the country which have given the state-wise details of Phase 3 loan account, account wise details, how much exposure we are having, how much been provided of how much is the net, how much impairment being created. It is available over exchanges also, over our website also. Now as regard to quarter wise NPA figures, that is also available over our website. So quarter-on-quarter, year-on-year basis, all the details are being mentioned.

Now one very important question in between us that there is a person who has taken additional charge of MD as well and who is working as a CFO as well. Of course, it's a unique kind of situation. Actually, our preference is to have a selection of a person who should show this organization to a right path while taking the right value to the shareholder. And the most important aspect we -- you also mentioned that the person should be a man of integrity, and he should have a very high leader. Of course, our existing manager management is also contender for that post, but some of the quarters have taken more than expected time. We are quite hopeful that soon, there should be some announcement. So the process is already on. It is on advanced stage and probably next time when we will be meeting, the questions would itself get resolved.

[Unknown Attendee]

Okay. Sir, one more one small question I had. My question is, I went to your website and saw the accounts, the NPA accounts, the portfolio, which were -- which has been part of the portfolio. I'm literally surprised to see on what basis you guys funded the companies in the past, and that has piled up as an NPA now. Because the kind of companies you have funded nobody was touching those companies. And on what basis you gave loan to those companies like [ Bhanuka ] and there are other companies which were -- they were already having bad name in the market.

So we would humbly request you whenever you get any proposal for corporate finance or project funding, please give special attention to on what basis the credit appraisal has been done, right? And I hope you have taken action against those people who had approved these loans in the past because that has hit the balance sheet of PFS very badly. You can see other companies how they are performing in the market like IREDA, PFC, REC, they are touching 52 weeks high. Okay.

So on what basis you funded all these companies which were not working? And as a result, PFS faced a lot of challenges in terms of recovery. So please streamline and strengthen your credit appraisal process, and please monitor upon the day of application. Please do a due diligence of the promoter before funding.

[Abhinav Goyal, executive]

Yes, sir. So your point is very well taken. In fact, I would like to mention that the projects which are actually bad as of today, were the leading group at one point of time, for example, one case is, IL&FS Tamil Nadu, which is a NPU in which we just have INR 70 crores in this quarter only or [indiscernible] margin there. Another project solar Bina power. So it's been reflecting bad as on today in our entry list, you rightly mentioned that PFC, if I'm right PFC or REC is the lead institution in that case only. So yes, your suggestion has been well taken and we already strengthened our credit appraisal. In fact, the majority of the account which are reflecting here are belonging to the thermal or large hydro sector. Those sector itself being collapsed with the cancellation of coal blocks and no offtake arrangement. So it was a supreme court deadline because of the factor on its entirely has collapsed.

So it's not a fault of any financial institution, be it PTC Financial, be it PFC, REC, SBI or PNB. Yes, your suggestion has been very well taken. And you rightly mentioned that PFS -- PFC has crossed 52-week high. I guess you must also appreciate and we have also crossed our 52-week guide. And at the same time, we have taken your suggestion, you're right, we'll definitely spread out the opportunity to improve further. Thank you so much.

[Mahendra Lodha, executive]

Just to add to what Abhinav has indicated, meaning as far as -- I think there was a specific comment on Danu Wind Parks Private Limited. Let me state that this is a renewable energy project in the state of Andhra Pradesh. The reason why it is appearing in Stage 3 is because of the government of Andhra Pradesh having not kept its honorary contracts as far as the PPA is concerned, and the developers had to go till -- had to approach the court for release. And post release being granted, the project's cash flows have come online, but it continues to be a Stage 3 as the legacy issue will take some time for it to get resolved.

But the happening point that investors may observe is that as far as the provisioning coverage is concerned for the assets -- for our assets, the provision coverage is very healthy.

[Operator]

We move to the next question. The next question is from the line of Vishal Biraia from Bandhan AMC.

[Vishal Biraia, analyst]

Sir, first, your comments on the top 3, 4 test projects, right? If you can elaborate a bit more on Danu, IL&FS Tamil Nadu, Vento and Nagapatnam, as to what is the current status of these power plants, at what stage are -- I mean, are they generating? Are they not generating? What's the status of PPA, coal and everything?

And then the second aspect of the question is on growth and sanctions. In the market, there seems to be enough inquiries for lending to the power sector. So how are we looking at it? What -- how are you evaluating? What are the new criteria that we set for ourselves?

[Mahendra Lodha, executive]

Yes, to get to the first part of your question is relating to the operations of this Stage 3 assets. As far as Danu, IL&FS, Vento and NSL Nagapatnam are concerned. Out of these 4, the first 3, that is Danu, ILFS and Vento power, all these 3 are operating projects and have shown cash flows in the last few years. In fact, ILFS, we have recently implemented the resolution plan based on which we have got our share of the proceeds sometime in the month of November. And the project is doing well now in terms of PLF is what we understand from the consortium site visit report as well.

As far as Danu and Vento are concerned, these are -- one is a wind power project, the other is a solar energy -- solar panel based project located in different states. And both the assets are operational. Of course, there are certain legacy reasons because of which the assets continue to be stressed, which I had explained earlier as far as Danu is concerned. NSL Nagapatnam was affected due to the entire issue related to coal block allocation and some other reasons based on which the project could not take off. But then we have -- as far as the exposure is concerned, we have made full provisioning for this. And nevertheless, we are seeing what best can be done to try and recover to the extent possible as far as NSL Nagapatnam is concerned, that process is on.

[Vishal Biraia, analyst]

So Nagapatnam, is it operating currently?

[Mahendra Lodha, executive]

No, no, that project has -- was never implemented.

[Vishal Biraia, analyst]

That was never implemented. So this project is completely stuck.

[Mahendra Lodha, executive]

Correct.

[Vishal Biraia, analyst]

So it was half constructed, right?

[Mahendra Lodha, executive]

The land was planned -- this project was envisaged to come up in the state of Odisha. For whatever reasons, the project got stuck and could not get implemented.

[Vishal Biraia, analyst]

Okay. So now how do we plan to recover this, by selling the land? What is the resolution plan that has been worked out?

[Mahendra Lodha, executive]

The CARP is on in terms of the resolution and advertisements have been given, which have resulted in some level of response from potential investors. More than that, we are covered in the sunset, we have a corporate guarantee from the holding company. And we expect at some point, we will reach -- we'll be able to recover a significant part of our dues.

[Vishal Biraia, analyst]

Okay. And when it comes to Vento, what is the current status of the project?

[Mahendra Lodha, executive]

This is a solar plant in the state of Odisha. The plant is operational in the sense that 20-odd megawatts have been implemented and operational. The PLF that it's generating is about -- only marginally less than what was originally envisaged. It is happening because -- mainly because of planned issues, the full project could not be implemented. But yes, here also, we have made adequate provisioning. And there is some interest as far as potential buyers are concerned, and we are seeing how this resolution -- how the resolution can be implemented in this in the course of maybe this calendar year.

[Vishal Biraia, analyst]

So since this project is partially generating, are we getting some cash flows from the revenue that is approved to the power plant?

[Mahendra Lodha, executive]

Yes, we are getting some cash flow, which is being used to make some of the interest dues.

[Vishal Biraia, analyst]

Okay. And when it comes to Danu, what is the current status?

[Mahendra Lodha, executive]

This project is operational. It's in the state of AP. The entire fleet is implemented. The issue here is essentially relating to the cancellation of -- rather the government of AP having gone back on its -- on the PPA that was signed with the discounts. But post the court order, we have been getting -- the project has been received -- has been getting cash flows from the discounts from the state discounts. And of course, being -- having -- this being affected for a couple of years due to the issues with the state DISCOM. There are overdues that have built up over a period of time. But the performance-wise, as far as operating performance wise today, if we look at it from today's current scenario over the last 2 years or 1.5 years that we've been seeing, fairly decent operational -- operating performance in terms of PLF and cash flows.

[Vishal Biraia, analyst]

Okay. And so by when do we plan -- I mean, the Danu will get resolved only when we get the pending payments from the AP DISCOMs, right? That is the only solution.

[Mahendra Lodha, executive]

Well, AP government has been making -- has been releasing some of the deals that are -- that are signed up over a period of time. There are -- I think the company is engaged with AP DISCOMs to resolve the remaining issues. But irrespective of that, we are in constant engagement with the company to try and see how this issue can be resolved.

[Vishal Biraia, analyst]

What is the amount pending by the AP DISCOMs to Danu?

[Mahendra Lodha, executive]

Pardon?

[Vishal Biraia, analyst]

What is the total amount that is outstanding with the AP DISCOMs for Danu Power?

[Mahendra Lodha, executive]

It would be -- the figures that I remember, as of, say, March 2023 is maybe the approximate numbers that I had will be about, somewhere between maybe INR 70 crores to INR 80 crores.

[Operator]

Our next question is from the line of Mangesh Kulkarni from Almond Securities.

[Mangesh Kulkarni, analyst]

I just wanted to know some explanation on the Note #8 given in the financial statement regarding the other expenses, derecognition of financial instrument. So just can you throw some light on that? And whether it -- further in next quarter also any kind of -- this is likely to be coming?

[Unknown Executive]

I'm Sanjay. So what I'm just telling we got the resolution of the Meenakshi Energy Limited, the loan account, which was appearing in Stage 3 account in previous quarter. So Vedanta has successfully won the bid and got the project transferred in his name. And as a resolution plan, the lender got NCDs, the nonconvertible debentures, carrying a coupon rate of almost 0%. And these debentures will be redeemed in the 5 equal installments of 20% each every year. The installment will fall for redemption every year in the month of October. Since it's a zero coupon rate, as for the India's accounting, we have to determine some internal rate of return that we identified as 8.5% so the INR 53 crore debenture got the NPV value. So what's our INR 15 crores, we have booked these as other expenses, the sale will be recognized in income in times to come. So there will not be any recurring expense of this nature. And this INR 15 crores, we are going to get in the form of interest in the coming 5 years.

[Mangesh Kulkarni, analyst]

So in case this was not there our result would have further better in this quarter?

[Unknown Executive]

You can say that because -- you can say that.

[Mangesh Kulkarni, analyst]

Okay. . And sir, you have mentioned about you have done some disbursement of around INR 140 crores during this quarter. So these are mainly in the renewable energy sector?

[Unknown Executive]

These are primarily -- one was -- I think a major amount was to state utility and partly part of the balance was to ongoing road project, which is nearing completion, primarily these two.

[Mangesh Kulkarni, analyst]

Okay. And my last question is about this in initial remarks we mentioned about this PM's announcement about the solar rooftop and opportunity for the companies like PTC. So here, we are looking for B2B or B2C kind of business opportunity?

[Unknown Executive]

We are exploring all the opportunities, and we are in discussion with their proposed to implementing agency. Already, we have begun our discussions. And we are looking for -- this is mainly because we specialize in B2B. But we are not averse to taking a B2C also because that will involve shorter gestation, and we may have several partners to distribute those things also. All these business models, we are coming up.

[Operator]

The next question is from the line of [ Chandra Mallu ], who is an investor.

[Unknown Shareholder]

I'm one of the serious investors in your company since 3 years, I'm holding 54,000 shares in your company. So since 3 years I'm observing quarter-on-quarter, your loan book number is decreasing. But in explanation you are telling you are in a very right growth path, and by the end of this year, we will increase the loan book to INR 9000 crores and by 2027 will increase the loan book to INR 30,000 crores like this. But you are not able to raise the loan from the banks till today. No any details about those things. So how you will bring this company to INR 30,000 crores company by 2027, sir?

[Abhinav Goyal, executive]

Sir, I will reply to part of your question first, in terms of liquidity, in terms of meeting a liability we are quite comfortable. In fact, it's been present in our investor presentation also that as on 30th January, we are having surplus of around INR 872 crores, right? So that point would be utilized for onward lending to infrastructure sector and our loan portfolio will automatically be increasing with that investment. So that is one.

Second, of course, now we have started discussion. Of course, earlier also, we started discussion we got sanction also, I think like 10 months back. But somehow some unforeseen development with the company, we were not able to take us all up to those limit and subsequently the sanction got canceled. And then in between there was a period where we introspect and restrengthen ourselves and address whatever the issue we were facing all the challenges. And now we again approached bank and financial institution for having a fresh credit line. The proposal is under consideration with the various banks. And as and when the funds will be required for onward lending we are quite hopeful that the funds would be available to us.

[Unknown Shareholder]

By this finance year what?

[Abhinav Goyal, executive]

I said target we are carrying internally.

[Operator]

The next question is from the line of Chintan from Puniska Family Office.

[Unknown Analyst]

If you could take your vision to be INR 30,000 crore loan book, we are looking at. What efforts we have during in the last 6 to 7 months, if you could broadly explain it.

[Mahendra Lodha, executive]

We have a good stream of proposals especially in our area of focus that is green and sustainable energy such as renewables, e-mobility and so on. And we have also lined up the proposals around INR 1,000 crores in the portfolio. And we are processing those proposals as re-deployment of funds. And second is that we are also exploring the areas as I have detailed before in the sunrise sector where those opportunities are expected to improve. And these are going forward [indiscernible] and having learnt our and re-honed our skills and made a part of our problems now as we have almost done away with the NPA problems and the provisioning. And with the new management also in place, I think we are confident that we will be able to achieve those corrections and we are striving to achieve those things. I can assure you that.

[Unknown Analyst]

And sir, on the management side, I think there is a resignation of the last director. So the complete top management turnaround is happened or anything is pending on one side?

[Mahendra Lodha, executive]

Yes, now we have a new set of board and with...

[Operator]

Sir, may I request you to come closer to the device sir, you are not audible clearly, sir?

[Mahendra Lodha, executive]

Yes. We have now a new set of board members along that MD, CEO is in place, and all the top positions also are in place and the team is working together to achieve those goals. As such, all the appointments have been made and the top posts are being filled. And going forward, I think we expect that the team is revitalized and it will deliver.

[Operator]

[Operator Instructions] Our next question is from the line of Manoj Pandey, who is an investor.

[Manoj Pandey, analyst]

My question is -- I have 2 questions. Every quarter, we are at the time of review, the management is giving us a rosy picture of business growth and -- but the business is not being achieved. And on the contrary, the business is declining every quarter. And you have some or other pretext that sometimes some CEO is not there, Board is under restructuring, some kind of restrictions by regulatory agencies. But we had been expecting that quarter 3 would have been better in terms of business. Now this also has passed with a decline. Now my question is what we should expect in quarter 4 in terms of business, in terms of raising funds and in terms of NPA? How much reduction in NPA you can show to us, please?

[Mahendra Lodha, executive]

Yes. In terms of raising the funds, yes, as you mentioned, we have...

[Operator]

Sir, may I request you to come closer to the speaker.

[Mahendra Lodha, executive]

The proposals, we have lined up. And around INR 1,000 crores proposals we lined up, we expect much of -- bulk of these proposals are materializing into the disbursements. And as regards the raising of funds, we've been making all the efforts and we have come very closer to raising businesses which is presently having faced certain difficulties in the first quarter of risk events there, and that is getting resolved. And we expect to move to raising further resources. As regards to the question of NPA resolution. This quarter, we have resolved 2 NPAs, and we expect this in the previous quarter, that is called Q3. And in Q4, we expect 1 or 2 NPAs to resolve so that we will have the better provision, better NPA numbers in the times to come.

[Manoj Pandey, analyst]

I have another question. I have one other question, one more question. Hello?

[Mahendra Lodha, executive]

Yes, please go ahead.

[Manoj Pandey, analyst]

Please can you tell me if the new CEO will be in place in quarter 4?

[Abhinav Goyal, executive]

Sorry, I think we have already given the positions, actual positions that the entire management team are Board of Directors are searching a lot as to give the charge to a person who is dynamic, who is having a high reason, who is able to lead this organization to new heights. Of course, the process has taken more than expected time. But yes, we are quite hopeful that there should be some good announcements very soon. So that's how with all the limitations we are having, we can update you and let's -- next time when we will be meeting, probably that question will automatically gets solved so that's what we can say at this moment.

[Operator]

Our Next question is from the line of Manoj Alimchandani from Afrs.

[Manoj Alimchandani, analyst]

Can you hear me?

[Mahendra Lodha, executive]

Yes, Mr. Manoj.

[Manoj Alimchandani, analyst]

Yes. One important thing in this business as for Mr. Das of IREDA had mentioned to me was technology. In fact, we clearly mentioned they are paperless office. And I said, okay, I will get you to Delhi and you see how the paperless office works. What is the progress of our company on technology front, if you can highlight the amount of investment in technology and how we are geared up to grab a huge opportunity which has been given on a platter to us by the Prime Minister and the Finance Minister, most important thing.

Second thing is we -- in the previous questions, a few there were some EMCs and some family offices and some retail investors. They express lots of concerns on this Board issues. Can you mention, because you have excellent Board now and excellent independent directors, what is the contribution of independent directors when compared to the earlier independent directors who had resigned? Who are better, the current board members or earlier? And if you can differentiate a difference, it will be -- it will help a lot and clarify a lot of misgivings.

The current -- presentation on the website, it shows they've got very good rich experience as independent directors, very good domain knowledge. And the actual contribution, how they're attending Board meetings, how much they are contributing? Are they asking questions, keeping quiet or just going on cashew nuts and tea and just keeping quiet. [Foreign Language] if you can mention that and earlier Board, the differences because they were -- it was kind of outrageous things that are coming in the media, which we don't know whether true or section they were correct or not. So technically and this board issues, that will be very, very helpful.

And you have been very transparent in the past, you have been sharing that forensic audit report on the exchange filings also. One of the best things in the corporate governance. You mentioned about RBI inspection report, which is very, very good. If you share it, it will be really excellent. It will show you it's a very clean, fast-growing opportunity, as you mentioned, some INR 30,000 crore potential. With this detailed answers from you and all the best, look forward to interact with you on your quick visit to Mumbai.

[Abhinav Goyal, executive]

So sir, the first question was related to technology, although sir, we are not a fintech company, we are into wholesale finance and whatsoever be the technology being required to be adopted, we adopted. In fact, the fact of one of the, I should say, valley government software, we have taken that and got limited in our system from 8, 9 years back. So that way, whatever -- of course, we are open to increase the efficiency in our working and in our potential with the introduction of technology. But yes, as of now, whatever the technology been required to be implemented, in our opinion, we have already adopted that. Yes, we are into continuous exploration of upcoming technology. And for that, we are having a dedicated department which is called the IT department headed by the Chief Technology Officer. So that is one.

Now second question as regard to who is better, the earlier board is better or this board is better. Sir, I think we are nowhere -- no one in fact to answer that question. If you ask me to compare between Donald Trump or Joe Biden or who is better? Atal Bihari Vajpayee or Honorable Narendra Modi so we are nobody to answer that kind of question. So that is a specific choice, in our opinion, earlier Board was very excellent. And the current Board is equally efficient and excellent. So now, of course unfortunately, we faced few of the issues in past, we -- what all can say that issue to a large extent has been addressed. And now with the support of the entire board, entire management and all the employees and of course, our esteemed shareholders like you, we are moving forward to the target, which your officers have just mentioned. So we are marking to have a better future. So that's all from our side as of now. Thank you so much.

[Operator]

[Operator Instructions] Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to the company management for closing comments.

[Abhinav Goyal, executive]

Yes. So once again, a very good evening to all our esteemed shareholders. As addressed by our management team led by Mr. Mahendra Lodha, we are now focusing on growth. The future looks quite brighter from now. We are committed to have our contribution and to support the green infrastructure and upcoming sunshine sector. We are working in creation of value to all our stakeholders and family, we firmly believe to have improvement in our performance with the passage of every quarter. We look forward to meet you all once again with our [ E&A ] results. Thank you so much.

[Operator]

Thank you. On behalf of PFS, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.