2 weeks Ago By GuruFocus.com
In This Article: Release Date: February 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Negative Points Q & A Highlights Q : Can you provide insights into the asset quality, particularly regarding stage three assets and credit cost expectations for the newer businesses? A : (Unidentified_5) We anticipated flat performance from Q2 to Q3, with slight improvement in vehicle finance. However, newer businesses showed higher non-performing assets (NPA) due to partnerships.
We are exiting these partnerships, which should reduce NPAs over time. For SME, reversals are expected as resolutions occur, improving credit costs in the next financial year. Q : What are the expectations for growth, particularly in the medium term? A : (Unidentified_5) We maintain a 25% growth expectation for the medium term and are confident in delivering this growth in the next financial year.
Q : How are net interest margins and asset quality expected to trend, especially if interest rates peak or decline? A : (Unidentified_8) Borrowing costs are stable, and any rate cuts will reflect with a lag. Asset quality typically improves in Q4 due to better collection efficiency, but this year's improvement may be slower than last year due to macroeconomic factors..
