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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
Ladies and gentlemen, good day. And welcome to the Q3 FY '20 Earnings Conference Call of Repco Home Finance hosted by YES Securities. [Operator Instructions]Please note that this conference is being recorded. I now hand the conference over to Mr. Rajiv Mehta from YES Securities. Thank you, and over to you, Mr. Mehta.
Yes. Thank you so much. Good afternoon to everyone. Firstly, thank you so much to Repco Home Finance for allowing us to host their Q3 FY '20 earnings call. We have the full management team with us. We have Mr. Yashpal Gupta, the MD and CEO, Mr. Arun Mishra, the CDO; Mr. T. Karunakaran, CFO; Mrs. Poonam Sen, GM Credit; and Mr. Subramanian Balaganapathy, AVM Finance. Without further delay, I would want to hand over the call to Mr. Gupta for his opening remarks and later on for the Q&A. Over to you, sir.
Yes. Thank you. Good afternoon to everyone, and a warm welcome to the Repco Finance Limited Earning Conference Call for the period ended December 31, 2019. Like the previous quarter, the quarter under review was also one of recalibrated growth for us where we pursued salaried customers with a high credit score and slightly less risky nonsalaried customers with an eye on maintaining profitability. The proportion of loans sanctioned between the salaried segment and the nonsalaried during the quarter was about 50-50. In terms of asset quality, we realized that in uncertain times, quarter-on-quarter volatility or improvement will not play out as it did in the past, and that improved recovery performance would offer [indiscernible], hence the asset quality remained stable at 4.2%. Once the environment improves, we believe that there will be structural improvement in our asset quality and the inter year volatility in terms of asset quality will improve.We shored up voluntary provisions on both Stage 3 and Stage 1 and 2 assets, resulting in total portion of over INR 11 crores for the quarter. If you see in the quarter 2, it was only 1 lakh. The Stage 3 coverage ratio improved to 29% and that is 29% improvement and 17% year-on-year.Total PCR improved to 43% from 26% last year. We registered about 9% growth in our loan book because disbursement remained low and loan take offs from banks continue. In fact, the repayment rate during the period was 18%. That was very high. During the quarter, we underspend 3.3% and margin of 4.6%, which is one of the highest in the industry. Owing to the passive discipline, resilient operating performance and [indiscernible] Q3 PAT fell 25% year-on-year, resulting in a handsome ROE of 22.4% -- ROE of 2.4% and ROE of 17.3%, respectively.Cost-to-income ratio remained below 20% as well was laggard. The balance between our exposure to the [indiscernible] segment and the salaried class stood at overall [indiscernible], 53% and 43.7%, respectively. The capital adequacy ratio continue to be comfortable at 25.4%, which was entirely Tier 1. We had [ 100 ] branches and 28 Star Center as on December 31 and employee strength stood at 961.Liquidity continues to be robust for us. We have about INR 2,500 crores under sanction as on January 1 and INR 150 crores of cash and cash equivalents in hand. And the other ratio you are already aware of [ is public ], I read out the main one. The operating income was about INR 1,000 crores, 13% increase for 9 months. The NII was INR 382 crores, 4.5% margin. The profit after tax for 9 months increased by 27% to INR 232.6 crores and the ROE and ROA for the 9 months, we had 20.4% and 2.7%, respectively. These are the key highlights of our performance. Now I'll be happy to take any questions.
[Operator Instructions] Our first question is from the line of Sanket Chheda from B&K Securities.
Sir, just wanted to have a outlook on our home state of Tamil Nadu. The growth is still muted at around 6%. We talked in previous quarter that largely the issues relating to land quality and logistics had started to go down and is likely to [indiscernible] so what is the outlook there and second [indiscernible] ...
Mr. Chheda, I'm sorry to interrupt, but your line is not very clear. Can you please the call on your handset instead of your speakerphone?
So I just wanted to know the outlook on Tamil Nadu state from where the growth is still muted. We talked in previous quarters that the issues largely started to taper down and it's likely to come in the coming quarters. So what is the outlook there for fourth quarter and FY '21? And second, on asset quality, we are all seeing the [indiscernible] ratio being stable since last 3 quarters. So do we foresee any improvement?
Sorry, you are echoing, so we could not hear the second question. Can you repeat again? Your voice are echoing, so we cannot hear the second question. Can you repeat again?
So the second question was on asset quality. Our Stage 3 ratio has been stable since last 3 quarters. So do we see any improvement in the coming quarters? Or how the said -- we see us going ahead? That was my second question.
Okay. So coming to Tamil Nadu, yes, you are right that the growth has been muted. And the sand mining issue and the land sharing issues have been somewhat addressed, definitely. But one is that, as you know, our book is quite old and quite big. So while disbursement have been high, but at the same time, repayments are also very high, normal repayment as well as prepayment by takeover. Second is that the overall economic scenario continues to be muted. The Maharashtra and Gujrat can record higher growth because of low base. In Tamil Nadu, we have a high base. So it is an overall situation. It is just that the overall economy, as you know, has been slow. The housing loan demand is low and commercial has become very aggressive, both in terms of new loans and the core of existing loans. And we have decided to not compromise our quality. So we are giving relaxation, but only to the extent that we are [ terminated ]. We are tightening our credit loans also. So that is the reason for lower growth.Now coming to the future outlook. We do not know how long [indiscernible] will come. As we know, government and RBI have taken lots of decisions. Hopefully, still push up the housing finance market and demand will increase. So but it is difficult to say what will happen in future. Now coming to NPA, which I've told repeatedly in the past also, that because all our customers are retail customers, so they pay even after they become NPA, they pay. All [indiscernible] NPA is [indiscernible] definition or stage 3 as it is of 90 days. So what happens is quarter-on-quarter, if we do an analysis, we find that that in quarter 3, about INR 120 crores of accounts actually came out of NPA. But fresh addition [ happened to ] overall INR 150 crores, INR 130 crore because those were 1 or 2 EMIs [indiscernible], they became 3 EMI. So the situation is volatile. That's why I mentioned that we are trying to address this also and reduce the stage 1 and stage 2 also. So that account do not become NPA going forward. But that may take some time, and going forward, we expect a stable asset quality.
[Operator Instructions] Our next question is from the line of Sneha Ganatra from Subhkam Ventures.
Sir, just wanted to know on the margin -- outlook on the margins then, how do you see the borrowing mix going forward from here on?
Look, the margins, of course, this quarter, this 9 months we're good at 4.5%. But we have given a guidance that we are targeting anywhere between 4.25% to 4.5%. So at least for next 1 year, it will remain so. Unless, of course, the banks [indiscernible] take over debt or reduce the rate also. But we expect it should continue going forward. Now as far the borrowing mix is concerned, we have basically a commercial bank and [indiscernible] finance and some are all NCDs and CPs. CP is, of course, we do short term, old NCDS. Going forward, we expect to continue the same because banks are giving us loans. So then they are cheaper more compared to NCD and other sources. So as of now, we are not looking at any other source. Banks, yes, we are diversifying. We are adding few banks every quarter. So that is there, but in terms of profile overall, majority today is banks only, including our [indiscernible] bank.
Okay. So on the growth outlook would be remaining the same, what we have seen in the third quarter trajectory of the outlook on the growth front?
Generally, quarter 4 is better than quarter 3. But at the same time now, with RBI doing loan [indiscernible] and giving CRR benefit to banks, they're likely to become more aggressive. So it is difficult to say about takeovers. But we have given the guidance of 12% last time. And as of now, we are maintaining that.
Okay. We're maintaining that then. And how do you assume the repayments and prepayments that has been increasing continuously?
That will continue to increase, unfortunately. We see that will continue to increase. And that may affect our target of 12% but -- because banks are becoming very aggressive.
But we are not planning to change our guidance downward side because we are seeing repayments and prepayments would be increasing continuously, then 12%, we would be able to achieve that front?
It is not going to be easy. But of course, we have to try. And that is why we are -- because we -- I don't know whether you were there in the last meeting or not. Our guidance, both externally and internally, are same. I don't believe in giving 2 guidance. So internally also to our team, we have said at 12%.
Okay, okay, okay. Any internal target for the cost-to-income ratio from here on, would like to curtail it down side, what is the internal target?
In fact, it may go up slightly only because we have [indiscernible] giving higher salaries to employees to attract better talent. So but around 20% or -- 20%, 21% will remain. And anyway, what percentage-wise we'll require. But from our point of view, it is low. If you see our total operating cost is very low, absolute [indiscernible].
All right. Okay, okay. And on this asset quality, any targets you're setting for the internal PCR to be maintained currently, which is at 28%, 29%?
No. PCR is 46%.
43%.
43%.
Yes. Any internal target you've set for the PCR? And as per the trend also, because fourth quarter, we have seen the best among the asset quality. Are we seeing the same trajectory in the fourth quarter what we have seen in March 2019 and '18?
Obviously, we are hoping for that and coming to PCR target now because, as you know, we are following the Ind AS or IFRS, there is no PCR there. It is a calculation of ECL, which is [indiscernible]
Whatever the ECL provisioning would be? Yes, ECL provision only I'm asking on that front?
So there, of course, we cannot look at -- I have a feeling that [indiscernible] we cannot set a target because the ECL calculation is done by a model. And our auditors, we -- they are saying that IFRS has to be followed in totality. That is what whatever model program, you have to provide for that. What we have done is some other cases, we identify over and [indiscernible], and we have made higher provisions, thereby to convince the auditor but follow the rule, say, more than 3 year old account, we'll make this provision. So it cannot be case with it. It has to be thought out by policy specific. So we have not set any target as such of PCR, but we'll take a view on that.
[Operator Instructions] Our next question is from the line of [indiscernible] from B&K Securities.
Sir, in the opening remarks, you have mentioned about your bank credit lines. Can you repeat the comment? And also, the second question would be, you said you have changed your standards of credit quality, not to -- for the Tamil Nadu state. You said you won't compromise on quality and there is tightening of some credit standards. So what are the changes in the credit standards that we have done, sir?
Okay. So first of all, about bank lines, what I said is as on December 31, we have about INR 2,500 crores of undisbursed sanctions from banks. So we don't have a liquidity problem at all. Plus, in addition, we have INR 180 crores of cash and cash equivalents as on 31st December. Now coming to tightening. Tightening is not only in Tamil Nadu. Tightening is pan-India. So you will see in Housing, our simple product, we look at [ between ] 3 things: one is the KYC or the genuineness of the customer, the income profile and the asset value. So when I say that we are tightening, what I mean is only in the income -- like, for example, there are documented income, like income tax returns, salary slips or, let's say somebody selling something, then receipts and all that. Then there are non-documented income, like informal income, let's say driver is getting INR 10,000. Fine. There is no proof what he's getting. And the shopkeeper is selling the goods, he is not covered an ERP, he's selling cash, cash and carry model. So these are not sort of documented. So earlier, we have been giving lot of importance to the non-documented income, which we continue to give, but now we have put limits that non-documented income cannot be certain time, and I cannot [indiscernible] internal policies of the company. We are giving more emphasis on documented income and less emphasis on the non-documented income, plus we are [indiscernible] income that non-documented income beyond this will not be accepted. So if a shopkeeper comes to us saying that I'm earning 5 lakhs per month, but he has proof of only 1 lakh per month, we'll not consider 5 lakh as income. We'll consider your income to be maybe 2 lakhs or whatever, some limit we have put, that is one. And they also will try to verify that. Second is on CIBIL. Earlier, there was no downward limit in CIBIL. While there was a desirable limit of 650, but there was no CIBIL score cut off. Now we have put a cut off. Below this, you'll not be given a [indiscernible].
So what is the cut off score, sir?
I cannot tell you that because this is our internal policy. The third is that there are -- we have created a division matrix, like every level, if there is division from the product guidelines, it requires a overall mix, higher authority, there's a justification for the division. So this is what I mean by tightening.
Our next question is from the line of Aakash Dattani of HDFC Securities.
My first question is on your ECL model. Have you made any changes in the approach or assumptions on methodology used this quarter?
No. We are not but I think why is this one off is basically because of -- what happens is that because the number of days concept, we follow number of days in the model, not EMI model. So what happens is it is like, for example, say somebody defaults in September, it will come in, in 30 days. Though 1 EMI defaulter is 30 days. In December, 1 EMI might become 31 days. So our model, which EMI has made it for us, it's 0 of 30, 31 to 60, and 61 and 90 and 91 and above. So what happens is that in second quarter, 1 EMI default becomes 0 to 30. But in quarter 3, 1 EMI default comes in the bucket of 31 to 60. So it is only because this -- day-wise different, there is [indiscernible]. Of course, we have made some special accounts to identify and made the additional provision.
And so could you possibly quantify the additional provision pointed against specific accounts that you mentioned?
Right. This is for the [indiscernible] provision was for maybe [indiscernible].
Okay. And would it also -- from what you said, would it also be fair to assume that there has been a significant flow from stage 1 to stage 2 assets?
I don't know what you mean by significant. But yes, as I told you that -- I will not say significant because all our 0 default cases are anyway stage 1. So that is a very large chunk. But if we look at 1 EMI default, from stage 1 they have gone to stage 2 because of these -- this offer [indiscernible] model.
[Operator Instructions] Our next question is from the line of Piran Engineer from Motilal Oswal Securities Limited.
Congrats on the quarter. I just have one question. In the last 9 months, how many properties have been repossessed and sold? And how has this trend been over the last couple of years?
[indiscernible] Any idea? Yes. I think these data, we will not have exactly right now, but approximately, there will be about INR 10 crores to INR 15 crore, but I would not know. Right now, I don't have exact data. And the trend is upward to increase the aggressiveness under [indiscernible]. That was -- and also we are doing [indiscernible] -- plus, the -- because of our strong [indiscernible], many customers are carrying forward for settlement outside the sale of properties. But exact numbers, we'll give you offline.
Okay. But this INR 10 crores to INR 15 crore is an estimate for the 9-month period, not for the quarter?
No. Just for 9 months. But the settlement is about INR 70, INR 80 crores because of the [indiscernible] action.
Our next question is from the line of Abhijit Tibrewal of ICICI securities.
So while you've already articulated that, I mean the problems, which are there in your home state of Tamil Nadu, can you also share, I mean what are the other problems that we are facing in some of the other geographies and which we expect could get sorted out over the next couple of quarters?
Yes. So it is not only Tamil Nadu. Tamil Nadu is [indiscernible] where about the sand mining and [ license has been an ] issue here, but as I told you, that has been addressed to a large extent. The problem we are facing right now is slow demand overall. That is a big problem and excess competition from banks. Those are the 2 main issues we are facing.
But sir, this excess competition from banks will only get more pronounced after the recent RBI policy that came out, wherein they're incentivizing banks to lend more in auto, SME and housing.
Yes. You are right, equally. That's why we -- but there are 2 things. One is that we are also expecting simultaneously demand revival. Like, if you could see 3 years back, the pie enough for everybody to be satisfied. So demand revival is we are expecting. That will -- even if banks become aggressive, demand is there, no problem for us, number one. Number two is that the overall demand [indiscernible] the demand for wholesale loans will also increase. And then banks will probably not be so active in retail segment. Then they will go back to the corporate segment. Today, because of the non-demand from corporate segment, they are going to retail segment aggressively. I mean they [indiscernible] in industrial segment, but not aggressively as they are today. And that is where we conclude, we [ have no ] change to our business model.
So sir, other than banks, are there also other NBFCs or HFCS, which have become very aggressive in some of your geographies, and you're seeing some balance transfer out requests for them?
Balance transfer out requests from HFCs is not that much. But yes, the fresh loan, we continue to become aggressive. We have [indiscernible] become aggressive. But at the same time, the HFL group finance, Reliance, they've have become less aggressive. So it is been a mixed bag for us.
Sure, sir. And sir, just one thing. I mean we're already about 40 days into the last quarter. How has the asset quality experience being so far? I mean are we expecting some similar kind of asset quality improvement, what we have seen over the last couple of years in Q4?
I mean we are hoping for that. I cannot tell you specific details about that. But generally, the tendency for Q4 is to better than first 3 quarters. We are expecting that to continue this time also.
Our next question is from the line of Arjun Pasumarthi from Cholamandalam Securities.
My first question is regarding yield segment-wise. Can you help us, just in where we are yield segment-wise in terms of [ life ] and home loan? Second question is regarding the asset quality, it has improved [indiscernible]...
Mr. Pasumarthi, sorry to interrupt but we cannot hear you very clearly. Are you on speaker phone?
My first question is regarding yield on asset segment-wise, [indiscernible] and home loan? And my second question is regarding the asset quality. We have seen a sequential improvement. My quick question is, going forward, in the next quarter, what do you see as the market taking you?
Sorry, your second question, I could not understand. I listen to you, but could not understand what you're asking.
My second question is regarding the asset quality, we have seen a sequential improvement. Can you help us understand where we are going towards in terms of Q4 in terms of whether there will be consistent improvement again? Or would it stabilize in terms of GNPAs?
Okay. So as far as yield is concerned, on the overall book, the weighted average yield on the outstanding book as on December, for home loans, it was 10.88%, and for the home equity or [indiscernible] loan, it's 13.64%. So overall was 11.4%. That is for the outstanding book. Now as far as [indiscernible] is concerned, yes, last 3 quarters have stabilized and definitely we are expecting a better performance in Q4.
Our next question is from the line of Jay Modi of MK Investments.
Sir, 3 questions. First, if you could give us a number on the total disbursement during the quarter and same quarter last year as well as Q2 and disbursement number for TN, Tamil Nadu, separately?
Yes. One minute.
Either that disbursement number is there in the presentation, I'll take it up from there. But in TN, particularly if you can give the number?
Tamil Nadu business trend is INR 363 crores.
Versus?
For the quarter 3. INR 363 crores.
Yes. Versus same quarter last year?
INR 377 crores.
Okay. And quarter 2, what was that number?
Quarter 2 number is INR 395 crores.
Okay, okay. Okay. Second question is on your borrowing profile. If I look at quarter-on-quarter, the total amount of borrowing has come down from about INR 10,000-odd crores to INR 9,787 crore. Is that largely balance sheet management? Or is there anything else?I guess, I mean, Q2, we had a fairly large cash balance also?
[indiscernible].
Yes. So the total borrowing number in Q3 was INR 10,032 crore. And if I look at this quarter, is that [indiscernible]
There's something wrong. One minute. It has come down by INR 80 crores because we have lesser [indiscernible].
So I'm just looking at Slide #13 in quarter 3 presentation, so that number is INR 97,878 million. And if I look at Q2 presentation, again, Slide #13, that number was IR 10,033 crore. So there is a reduction of INR 245 crore rupees of borrowing on quarter-on-quarter basis.
Yes. It is because of the -- this we -- we have kept the cash in bank balance because at that time there was a concern from a lot of investors and lenders about liquidity. So we have kept the cash and bank balance. This [indiscernible]
Okay. And third question is on earlier comment about tighter underwriting standards. So I understand that this -- what you're doing is sort of trade-off between the disbursement number and let's say spread in the credit cost. But just to understand, let's say, if this income levels or, let's say, the underlying market were to bounce back, do you believe that this growth could come back? I mean if you could also help us understand it a bit more in detail, if let's say your underwriting standards were probably not as tight as they are today, and you were to continue with what you were doing earlier, would the disbursement growth being in actually positive if you were not to do that?
Yes, it could be. It could have been. But by how much, I don't know.
If -- I mean even if, let's say, markets were to come back and the risk appetite was to go higher, we just want to understand what could be the disbursement growth eventually. Would it be a fairly high double-digit or even if markets come back because of the competition, if disbursement growth still does not come back, then we will continue to have that problem even when the underwriting standards did not be so strict as they are today. So I just wonder if you can quantify that number that if you were to continue with the same kind of underwriting standards, then what would be the disbursement growth actually versus what is negative today?
See, there are 2 things. There are 2 types of competition. One is there is competition from HFCs within our segment. There are 2 types of customers, which cannot bargain on rate of interest.
Sorry, I didn't get that.
Which cannot -- let's -- for example, as I told you shopkeeper. He doesn't have all the income proof. So either bank, and [indiscernible] name them, but if they go to a bank, probably they will not, because they'll say you bring a proof of income, income tax return or GST proof or whatever, salary slip and all. So they can't just say I want 8%, 8.2%, 8.5% like that. The second is that -- the second category is that they cannot bargain on the rate of interest because they don't have documented evidence, okay? So we are competing on the second segment. Where, yes, rather than sort of looking at few documents, we are looking at fewer more documents. So if the economy revives or the growth happens, it will improve segment or segment economic activity. And our segment also would be able to come to us more often. Like, for example, if we take a shopkeeper, we tell him, you take a INR 30 lakh loan. He says, no, no, I don't have enough income for that. Let me first focus on business. I will take loan later on. But later on, I mean his income improves, he will come to us and other interest rates. There we can compete. But we cannot compete with the bank who says, for example, the one problem that we are facing is a customer and that would be -- I don't know whether you are aware of this, but it's a very serious issue that initially customer has no documentary evidence or not enough documentary evidence but we give them loan. We take the risk, and then he regularly pays for 2 years. And he pays, because we are not a bank, he pays to us through a bank only. The bank has all the data. And then after 2 years, many banks have [indiscernible] what is called a surrogate market. Here you don't ask for any documents, he has paid this -- 2 years regularly, let us [indiscernible] by giving 2% lower. So that is happening on a large scale.
Okay. But then that has to reflect in your repayment rates also, right? But they have not gone up so high, I mean.
18% is very high. We are giving loan for 20 years, 18% means 5 years.
No, no, I understand that 18% is high. But what I'm saying is that as a percentage of -- or rather, if I look at your historical data, we have been in that range of about 17% to 20% odd percent. So that's not materially gone up versus our own experience in the past. That's what I'm trying to say.
Correct. But at same time, we added demand for newer loans, also. We have demand for new loans also.
Okay, okay, okay. And last question is on your -- again, on your disbursement. So if I were to exclude Tamil Nadu, then residual disbursements have actually come down by about 18%. So versus about, let's say, INR 356 crores in the same quarter last year ex TN to about INR 293 crores. So that 18%, again, here, what would be the key contributor? I mean would -- in any particular state geography that we are not comfortable with or it's just generally that we are sort of a bit risk aversive out there?
It is generally a tightening on non-state. I mean Tamil Nadu [indiscernible] that -- but generally, we are gone slower in Kerala and Eastern India. That's the home national branch. But they contribute to very small amount. Second is the overall slowdown. It is the overall [indiscernible]. As I told you, our philosophy is to focus on bottom line rather than top line.
[Operator Instructions] Our next question is from the line of [indiscernible] of [indiscernible] Securities.
Congratulations on a good set of numbers. My question was regarding branch expenses, can you give us some color on that as to where is the next phase of branch expansion going to come? Is it going to be in Tamil Nadu or outside Tamil Nadu? And what would be our focus customer areas out there?
See, we generally do mix, like we have done a few branches in Tamil Nadu, a few branches in this [indiscernible], Telangana, few more branches we opened in MP, Madhya Pradesh, Maharashtra, Gujrat, Rajasthan. So it is -- I mean going to be in this area only. We are not going to the new geography. In the current year, beginning of the year, we did open 3 more -- 3 new branches in Rajasthan, where we did not have any presence. But now for next 1 year or so, we are not going to new state. We may expand in the existing geographies only. That's number one. Yes, number two is that as far the segment is concerned, obviously, as of now whatever segment we are focusing on, we'll continue to focus on both segments, like salaried class or nonsalaried both, but more emphasis on documented income than non-documented income.
Got it, sir. So any target for brand expansion? Is it like -- I mean, typically, we do around -- we target around 10 branches a year?
So we've already opened 8, 9 branches this year. So right now, we don't have -- maybe 1 or 2 may open, but not when we -- for the remaining part of the year.
Got it. And the branches would be typically in metro and tier 1 or where?
No. In fact, again, it depends -- but our experience is that we takeover more in metro and tier 1. Takeovers are less in tier 2 and tier 3.
Our next question is from the line of Dipanjan Ghosh of Kotak Securities.
Nischint here. Sir, just wanted the disbursement number for home loans and LAP separately for this quarter and the previous quarter. You've been giving this number generally in the conference call, so?
Yes. Okay. So home loan...
It's INR 532 crores in September, home loans, versus INR 509 crores this quarter.Home equity INR 169 crores versus INR 147 crores this quarter.
Sure. Got it. And just one more thing, if I look at your GNPLs, then interestingly the rise in GNPLs for you on an absolute basis is actually higher in home loans, almost like 25% on a year-on-year basis versus LAP, which is close to around 10%. So I was just trying to see as to what does this trend really read?
No. It does not lead to us to any conclusion as such. As I told you, basically, the NPAs are about 90 days because that is what is our [indiscernible] in our business model. And generally, many times, they are able to pay. Sometimes they're not able to pay. So they keep on oscillating between 1 EMI default, 2 EMI default, NPA. So there is no -- it does not give anything that housing loan book is [indiscernible]. It's just that this quarter, maybe they were -- they could not pay for 3 quarters, 3 EMI, and maybe next quarter, again, they'll pay. I don't think it tells us anything.In fact, internally also, in many of the investors who asked this question, what is your ROE on housing or book RO on [indiscernible] book. So I tell you we [indiscernible] only as apart from rate of interest and long-term LTV and [indiscernible]. For us, internally, we do not differentiate between housing on that book at all because [indiscernible] cannot work, is done by the salespeople. So we do not [indiscernible] and that is because we have put ourselves [indiscernible].
Because 23% growth on a year-on-year basis, and I'm just looking at, that's the reason [indiscernible] year-on-year number. Obviously things should be a little -- on the higher side. So should we be looking at [indiscernible] home loan segment and that was around a 10% kind of yield.
Mathematically, it's always looked like that, but it is the housing loan from 3.2%, it just gone up to 3.6%. Obviously, we work up percentage-wise it would appear to be 20% or less. But for us, the importance is of 3.9%, it becomes 4.2% overall. And [indiscernible] somewhat 4.2%, 4.2%.
4.2%, that's right. And just on the CP side, what is the duration of CPs that you're raising?
Say, generally, because the mutual funds and the other banks, they are reluctant to carry CP beyond a quarter, so obviously it is ending within the quarter, sometimes 1 one month, sometimes 2 months. But generally, ending before the end of the quarter.
Basically the 30 to 90 days?
Yes. Correct.
Our next question is from the line of Akshay Gavankar from Motilal Oswal.
Congratulations for the good set of numbers. Sir, we have employee strength of somewhere around 961. So is it possible for us to have a breakup of between sales, credit and collections?
See, the structure that we have, we follow the branch banking model. So there is a branch, which has minimum 3 staff, maximum can be about 15 staff. And the branches are supposed to do everything, from sales, collections, the KYC or valuation and all that. And with the brand manager. [indiscernible] So it is difficult to -- because we do not -- and it can rotate also between them. We do not exclude the percentages [indiscernible] for each person. We are trying to bring about some changes, but that will take time. So right now, I mean if you ask me about how many staff is busy in sales and operations and collections, I'll say about 250 each or 200 each. But it is [ hard when they have been ] recruited for sales. They've been [indiscernible], they've been posted into branch and branch manager can assign them any task.
[Operator Instructions] There are no further questions. I now hand the conference over to Mr. Rajiv Mehta for closing comments.
A big thank you to the management team of Repco Home for allowing us this opportunity. And also a big thank you for everyone who attended this call. Thank you. Over to you, operator.
Thank you.
Thank you very much. Ladies and gentlemen, on behalf of YES Securities, that concludes this conference call. Thank you for joining us. And you may now disconnect your lines.