Q2 Con Call Notes:
- Value unlocking to take place in the next few quarters
- 18 RE assets resulted in the provisioning of all stage 1 to stage 2 assets (around 5800 cr.
- Once you move the account to stage 2, you have more options to deal with it.
- Endeavour to have FS as clear as possible.
- To classify to stage 2
- There are lumpy accounts.
- Interest reversal of 220 cr.
- Some group issues
- Some of the accounting is nearing resolution. That requires provisioning
- One account is already paid 120cr. Broadly classify this loans into three buckets
- Bucket 1
- Parents’ entities is going through some trouble even though SPV is going ok.
- Bucket 2
- Resolution is possible.
- That will come through doing a haircut.
- Bucket 3
- The real struggle of builders.
- Stage 2 to Stage 3- Expect some flow, but do not expect significant slippage from this book quickly
- The wholesale book will shrink in the next few quarters.
- Incremental cost 8.50 %.
- Wholesale to Retail could be 50:50 by the end of the year.
Note- Invested.
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