Hi. Management has guided to improve PCR to 70% over next 1-2 years. The loans are largely secured with low LTV and I believe even the valuation would also be on a conservative basis unlike metros, which would result in high recovery. There is not much risk as per one of the Analysts mentioning sufficient PCR during latest concall. Even Management which is also conservative was of the view that current PCR is satisfactory since borrowers who are still gradually coming out of covid impact are paying back loans, so till the time recovery is certain, it doesnt make sense to write off the loan. PCR cannot be compared with Ujjivan as it has high microfinance book. AU might be having higher PCR since loan book is also double of Equitas. If you see the NNPA amount it is 300 crore approx for Equitas, which looks manageable.
| Subscribe To Our Free Newsletter |
