Finkurve Financial Services (NSE:FINKURVE) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the FINKURVE Financial Services Limited Q2 and H1 FY 'twenty seven Earnings Conference Call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to miss Finkurve Financial on behalf of Finkurve Financial Services Services Limited.

0:45 Limited. It It is my pleasure to welcome you all to the Q2 and H1 FY 'twenty seven earnings conference call. We have Finkurve's management team with us. We will begin today's call with opening remarks from the management, following which we would open the floor for q and a session. Before we begin, I would like to remind everyone that certain statements made during this call may be forward looking in nature. These statements are based on management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. FINKURVE Financial Services Limited undertakes no obligations to

1:31 publicly update or revise any forward looking statements based on subsequent events or developments. With that, I would like to hand over the call to Mr. Priyank Kothari to deliver his opening remarks. Thank you, and over to you, Priyank.

1:50 Good afternoon, and happy Danseras to everyone, and thank you all for joining us for the FINKURVE Financial Services earnings call for the second quarter of financial year 'twenty seven. We are pleased to share that we have continued to make steady progress during the quarter, with the business remaining focused on disciplined growth, portfolio quality and strengthening our operating platform. Our journey over the last few years has been about building a sustainable gold loan franchisee, and we continue to remain committed to our core philosophy of putting risk management, governance and execution excellence ahead of growth. During the quarter, we continue to see steady progress across our key operating initiatives. Our focus remained on improving branch productivity, strengthening customer relationships, expanding our lending partnerships and building the capabilities required to support the next phase of growth.

2:41 From an industry perspective, the quarter continued to see the gold loan sector adapt to the revised regulatory framework. While these changes have resulted in some near term recalibration across the industry, we believe they are positive for the long term development of the sector by creating greater transparency, discipline and customer confidence. Another important development during the quarter was correction in gold prices from the highest witnessed earlier this year. We would like to reiterate that our business model is not built on the assumption that gold prices will continuously rise. A strong gold on franchise should be able to perform across cycles, whether gold prices move upwards, remain stable or correct. Our conservative lending practices, disciplined loan to value approach, continuous collateral monitoring and robust risk management processes have ensured that the recent volatility has had no material impact on the quality of the portfolio.

3:35 During this period, we have also continued to strengthen the organization and build capabilities for the future. We have further strengthened our leadership team with the appointment of our Chief Compliance Officer and continue to invest in our risk, technology, operational and governance framework. Another important milestone is our transition towards adopting the Ogbon brand across our go loan business. Historically, operating under different brand identities created some confusion among customers. Moving towards a single unified Ogmont brand will provide customers with greater clarity, strengthen our ability to build a greater trust and recognition in the market. We believe this is an important step towards creating a stronger customer facing franchisee while leveraging the long standing credibility and ecosystem of the Orgmont brand.

4:27 Overall, our focus remains unchanged to build a long term sustainable gold franchisee institution where risk management and operational excellence remain ahead of growth. With that, I would now like to request our CFO to take you to the financial performance for the quarter. Following that, we will be happy to take your questions. Yes. Thank you, Priyank, and good afternoon, everyone. Happy run period. This is Akash Jain, Chief Financial Officer of the company. Priyank has already set out the strategic picture, and I will now take you through the quarter second quarter's financial performance. So let me start with the headline numbers. Our AUM has grown about 95% year on year, and profitability is again up.

5:14 So this is one of the best quarters wherein the highest profitability has been reported. Operational profitability has been reported, and it is up by 62% year on year. Our branch network, again, has increased from 92 branches last year, September 30, to 122 branches, which is almost 2.5 branches per month. Our total income has grew from by 88% almost.

5:41 We have maintained adequate liquidity in terms of ALM. We have positive cumulative mismatches across all our buckets. Our capital adequacy ratios in terms of ratios, we have very healthy ratios. Our capital adequacy today is at 28.7%. Our ROE, again, is ROA is at 3%, and ROE is has crossed ten percent first time after a couple of quarters, despite of having a leverage of more than 2.5x. So these are our critical key highlights. With that, we also have increased our share of coal lending. That's, again, a very efficient way of managing your Tier one capital.

6:31 So with continued focus on increasing the ARPU, we will ensure that this particular proportion grows to a reasonable number in the coming quarters. With that, I will ask the moderator to now open the floor for Q and A. Thank you. Thank you. We will now begin the question and answer session. The The first question comes from the line of Vedanta Trivedi with Vinayak Capital. Please ahead.

7:24 Hello? Yes. Hello, Odisha? Yes. You are. Perfect. Perfect. Thank you for opportunity, sir, and happy to answer your questions. My first question is, with banks becoming increasingly aggressive in gold lending and offering more competitive interest rates, how does the company plans to differentiate itself from banks and larger gold NBFCs? So in terms of product differentiation, there is no differentiation, but there's a lot of different customer segments that exist. So even today, if you see there's a lot of there are different customer segment that has access to there is no access to banking channels and large NBSPs.

8:12 That is a customer segment that we are focusing on. And also, if you see our yield, that is the reason our yields are also higher, right? So we are if you see our branch center, we are currently in Tier II, Tier III cities. If you see our customer segment also, we lend to customers who have absolutely no access or maybe very little access to official banking and large banking channels and with large NBFCs. So that's the kind of bifurcation we do, and that's how we've been able to maintain our yield. See, if you talk about competition, competition exists in every industry, and Golar sector is no different. If you see, Augment as a group, we've been a part of a broader gold ecosystem for over five decades. And we understand the markets very well. And with that, of course, we know that the market as and when the time goes on, it will become more competitive. But we are in a very good position to ensure that we keep up the pace with the competition authorizing, as you can see in our numbers.

9:12 Sir, just want to just a follow-up. Is the competitive advantage primarily driven by pricing or faster pricing faster loans, processing and turnaround times or deeper geographic reach? It's a mixture of both. It's not only pricing. The pricing is always is probably one of the factors. But a more important approach would be that how fast am I able to serve to the customers, which is our turnaround times. How in terms of schemes, how good of a scheme am I able to offer our customers? So these are all important factors that make an important part of how competitive an organization becomes.

9:56 Understood. Understood. Someone... One more question. Revenue increased by around 20% across q o q despite AUM growth of only 3%. So my question was what were the key drivers for this divergence? See, our yields on gold loans are rising from 20% to 20.8%, right? So that is one of the key drivers here, which has pushed to the increase in revenue. Also, if you see, so one is, of course, our yields have risen from 20% to 20.8 With that, our share of coal lending has also gone up to almost 5.8% from 1% or 2%. So all of those things are you know, helping us with the numbers. And how much of the growth was contributed by the personal loan portfolio, higher yields, or any one off income?

10:53 No. So there are no one off income as such. The personal loan portfolio is, again, the yields are a little higher there. And that portfolio has been at an average of about INR 45 crores to 50 crores quarter on quarter. So that's a very steady portfolio with a steady set of income. So there's no onetime gain that we have recorded on our revenues. And how sustainable is the revenue growth going forward? Think in terms of personal loans, see, the portfolio mix, what we are trying today is about ninety-ten, wherein 90% actually our secured portfolio, which is currently today gold. And 10% is what we aspire for the personal loans. So this share may go up in the future quarters, the share of personal loan portfolios.

11:43 And we may see that delta coming in our revenues as well. But again, this is a partnership led business, and what we get to keep is a net hurdle rate. So whatever incremental income that we get in this particular portfolio is again passed on to the partners, right, in the form of commission fees and commission. So that's the partner's income, whatever they get. Whatever we get to keep is on the whole loan portfolio. So what actually impacts our profitability is the increasing yields on our portfolio. Understood, sir. Understood. That's all from my end. Thank you so much. Sir. Thank you. Next question comes from the line of Zena Patel with Shah Family Office. Please go ahead.

12:38 Good afternoon, sir. Thank you for the opportunity. I have a couple of questions. My fourth question is regarding to the NCDs. Sir, NCDs currently account for around 57% of our total borrowings, supported by a retail investor base of around 50,000 bondholders. Given the relatively higher cost of NCD funding, what is our strategy to diversify this borrowing mix and increase the share of bank borrowings? Thank you. Thank you, Yena, for asking this. So we are pretty much on track of increasing our bank borrowings. So if you look at our Q2, we have not raised anything fresh from an NCD. Whatever we had raised was already committed by Q1 itself, and there are no further fresh borrowings. In fact, NCD borrowings today are on par with the institutions borrowings, maybe sometimes cheaper because, again, these entities are coming at a fixed cost, whereas borrowing from institutions are rising because of the rising repo rates, right? All those are linked to the repo rates. So entities are on par with them today. But then we have kept internally, what we have done is we have kept that to not more than 40%, 45% of our overall borrowing. And once we start adding more banks in the coming quarters, we have already received enough sanctions at our end.

14:02 And it's all about how do we take it or when do we take it, depending on the overall business requirement. Again, to diversify our liability profile, we are again increasing our share of coal lending. So we are one of our partnership has fueled the growth in Q2, and we are signing few more reviving the older partnerships again in Q3, Q4. So impact of that will also be coming in. So that will also be one of the sources to diversify our sources of fund.

14:34 Got it, sir. Got it. So my next question is regarding the off book AUM. What is the company's medium term target for our off book AUM as a proportion of the overall portfolio over the next two, three years? See, our target is to take this share to a reasonable onethree kind of an overall book number, which is roughly 30%, 35%, right? So we are already on we have embarked the journey, and we are on track of achieving that in the next three years or so. And sir, do we have any plans to onboard additional core lending partners? What is our vision to accelerate this growth?

15:20 Any like strategy around that? So as I said, we already have two partners. We are signing we have already signed with one more, which will go live in Q3 and reviving an old partner, which will go live in Q4. We are also looking for partners who can help us with better cost of funds again. So the efforts are on and the decisions are at multiple places. They're likely to onboard few more by end of this financial year. Okay. So we are open to looking out for partners. Lovely. Thank you so much. That was really helpful. All the best. Thank you. Thank you. A reminder to all the participants that you may press star and one to ask a question.

16:10 Next question comes from the line of Nikita Meta with Meta Investments. Please go back. Thank you, sir, for the opportunity. I have couple of questions. Sir, so first, the E and P increased sharply from around 2.6% during the quarter, while the NNPA stood at 2.4%. So what are... What what are the key reasons for this deterioration, and was this primarily... Increased primarily driven by the gold loan portfolio, personal loans, specific large accounts? And, sir, how much of the stressed portfolio is expected to be recovered through auctions over the next one or two quarters? Yeah. So, Nikita, I'll take your first question. I'll I'll take your first, and then I'll take the second one. So my first question was why have NPAs increased. Correct?

16:58 Right. Right. Right. So one thing is... So in this business, in gold loans, I think it's important to look at gold loan NPAs very different from unsecured lending. If you see other products, higher NPAs naturally translate to higher credit costs. In gold loans business, it's completely different. Higher NPAs do not mean credit losses because there is significant equity firstly, there's significant equity of the customer in the world. Thus, we have enough margin on that account to recover, right? So the increase that you're seeing in terms of our NPAs primarily due to one or two reasons. One is, of course, the recent changes in the regulatory framework. Traditionally, if you see that all the whole loan customers preferred bullet repayment structures aligned with their cash flows, right? And now as the industry transition towards new repayment framework like paying monthly, bimonthly, quarterly, it's becoming a little difficult for them to regularize their accounts.

17:50 So this is typically one of the reasons why which the NPAs have gone high. Naturally, high NPAs is not a concern. So the reported NPAs is the number that you're seeing. Subsequent to that, I think majority of the accounts have already been cleared and regularized. So higher NPAs traditionally have not been a problem for this product. And your second question was, I mean, how do we plan to auction in the next two quarters? So your next question was how do we plan to auction? S portfolio is like expected to be recovered through auctions over the next one two Okay. So in of our business, auction is our last resort. First, we counsel, speak to customers.

18:37 We understand the intent of the customer. Now if you try to if you historically see all your NP accounts have been regularized because customers, like I mentioned, have a lot of equity, plus they have margin. So there is no incentive or motivation for them to not pay. So auction becomes a last resort, right? So we do not so auctions are not our mechanism to solve NPEs, but we usually send repayment reminders, and we talk to them, and that's how it gets resolved usually. Okay. Okay. Okay. Got it. And one more question I have. So the collection efficiency declined to around 90% from approximately around 98% in the previous quarter. So how does the... How do we calculate the collection efficiency, particularly, like, given the bullet repayment structure of core loans?

19:30 And is the decline attributed to the same portfolio that contributed to the increase in the NPL? Yes, that's right, Nikita. Because of the declining collection efficiency, the delinquencies have increased, and that's why you see a higher NPA compared to the previous quarters. But also to answer your question, if you look at our NPA numbers, it is on par with what the industry averages. This is what we have seen when gold prices are on a steady state basis, right? So for us, NPA is only a technical classification and not really a credit cost, right, as Priyank has already mentioned. We still have our sufficient margin left in the for the recovery of this, either by resolution or by auction, whichever way we go, but then we still have sufficient space for us there.

20:28 Okay, okay. I think it answers my question. Thank you so much, and I wish you all the best for the coming quarters. Okay. Thank you. Thank you. Next question comes from the line of with Acanth Investments. Am I on? You are. Yes. So I just had a few questions from my side. So sir, your AUM moderated to around 3% Q o Q in Q2, which was around 16% in Q1 and over 30% in Q4. So what were the key factors behind the slowdown? And was it a conscious decision or driven by the new RBI regulations funding constraints or competitive pressure?

21:20 And what quarterly rate can be expected for the remainder of FY 'twenty seven? Sure. So see, I think one quarter of slowdown, I wouldn't call it a slowdown, but I would call it a transition that is happening in the industry. If you see our growth from last year, it has been more than 100%. So one quarter of slowdown wouldn't technically be a slowdown for us. So we continue to remain very positive of our growth. In terms of our growth guidance, what we have given guidance is of 50% to 60% of AUM growth. As of now, we are not seeing any concerns in terms of reaching that number. But of course, in the coming quarters, we will give some guidance if we see any change of guidance that is needed to be done, right? And of course, you answered your question only because like you asked why growth has moderated. It is, a mixture of all the reasons that I had given before. One is, of course, the revised regulatory framework.

22:17 Second, what happens is when gold prices have corrected sharply, right? So when gold prices usually go down, customers usually tend to defer taking a loan because if, for example, if the requirement is of 10,000 and when gold prices go down, he is only able to realize INR 7,000 out of it. So they usually tend to defer their requirement for a quarter or two until prices stabilize. So again, that is one of the reasons. Competition intensity, again, is part of the reason. But again, we're in this business, and we're in this industry for more than five decades. So I think competition is here to remain. And our objective is very clear that we will focus on, of course, expansion and focus on our execution capabilities.

23:05 Okay. Got it, sir. Got it. Secondly, the customer additions stood at around 1,500 during the quarter, while the average ticket size declined. Is the company consciously focusing on smaller ticket loans? And to what extent is this shift driven by the flat wise LTV restrictions? So again, yes, it's a mixture of both. We are consciously trying to reduce the ticket sizes. I think in terms of your portfolio health, it's always wise to have a lower average ticket size. Of course, that is driven by the different schemes that we have because of the new LTV structures that are in place. So yes, again, it's a conscious decision, and we expect the average ticket sizes to come down further in the coming quarters.

23:56 I'm sorry, what is the second question? My second question was to what extent is this shift driven by flat by LTV ratio?

24:09 In terms of LTE, sorry, I didn't get a question directly. To what extent? So we don't have the data handy. Can I can we send the data to you post this call, if that helps? Yes, yes, absolutely. Sure. So I just have one last question. So what was the share of renewals and top ups in the total disbursements during the quarter compared with the loan to new customers? And how has the customer retention been at the time of loan maturity? In terms of customer retention, I think we are in terms of our numbers, we are more than 60% of customer retention during maturity.

24:54 In terms of renewals, we will share a precise data with you post this call. But historically, if you see when prices were high, our renewals used to be upwards of 60%, 65%. But now as prices have corrected, I think that should be anywhere around 10% or 15%, not more than that. Got it. Got it. So that... Do you still share a precise number with you so that you have a correct figure in place? Yes. Sure, sure. Absolutely. Thank you. The next question comes from the line of Sachin, an individual investor. Please go ahead. Hello. Am I audible, sir? Yes. Good afternoon, sir. Firstly, congratulations and happy to set up numbers.

25:46 Sir, my question is from a few of shareholders, revenue has grown strongly over the past several quarters, and yet the stock has gone lower. The market clearly isn't giving the credit. I'm not asking for about the daily price, over the life, we can see from past four to five quarters. There's a good increment on revenue and in net profit side, but why market is not rewarding yet? Is there any disconnect between the share price and reserves? Yes, sure. So yes, just to answer your question, I mean, in terms of the market prices, I think the organization has nothing to do with it because it is very independently your prices are driven. So I may not be able to comment on why the prices are lower, why the prices are high.

26:34 But again, to answer your question, the organization is on track to achieve the numbers and targets that we had given in order to maximize the shareholder returns. So our objective is to work towards that. But in terms of the share price, I think I may not be able to comment on why the prices are going down. Fair enough. But the share price is the market verdict on your execution. So if you believe the business undervalued or execution is top notch, what's the market missing? Like at the end, for me, it's the share price, which I am getting the business. Your numbers are top notch, numbers are regularly growing. But at the end, what it is for shareholders? Correct. I mean, in terms of your question, I understand your question, but I still may not be able to comment on the share price.

27:30 I would say it's market driven. I mean, there we is operate or we have no say in our share prices. Yes. Definitely, we will focus on three things: one is increasing the net interest margin, increasing the yield, increasing the net interest margin, reducing the cost of operations and reducing the cost of all these things are in the right path now, okay? Going forward, net interest margin will increase because our cost of money is likely to come down. When the firm branch outstanding loans is increasing, AUM is increasing, naturally cost of operation. The cost income ratio will also come. We will deliver our best. Market will recognize over a fee. Now presently, there is some concern about the gold loan companies because of the gold price volatility, not only our price. All the gold loan companies have come down a bit with us. Market is not able to understand gold loan business and differentiate into the other NBFC business.

28:23 Gold business will not be affected by this slowdown, which is happening in the NBFC as a whole. Market doesn't recognize it. Market will recognize over a period. And at that time, we will find the right price is reflected in the market. We will do what we are supposed to do. We will perform better. Market will recognize it over a period. You. Mr. Sachin, please return the queue for more questions. Next question comes from the line of Vivek Shah from Jallah Family Office. Please go ahead. Thanks for the opportunity. I have two questions from my end. Firstly, the LTV has increased consistently. What has driven this improvement? Is the increased part of a deliberate strategy to support higher ticket sizes?

29:14 And what internal LTE ceiling does the company intend to maintain? Secondly, follow-up on that. Following the implementation of the RBI's new gold loan directions in April 2026, what changes have been observed in appraisal, documentation and credit assessment, particularly for loans about 2.5 left? Have the revised requirements affected turnaround times or disbursement volumes?

29:41 I'll start with answering your first question. Your first question was why has NPV increased. So LTV has increased. So one is that in terms of our data, our LTV data is accrual of interest, right? So there may be a difference of our data and there are other certain NGFCs who report the LTV without accrual of interest. So there could be some mismatch there. We reported with accrual of interest. Plus, one is that with your new regulations, RBI has allowed you to go up to 85% in consumption loans. But in loans wherein you can properly assess the income of the borrower, which becomes an income generating loans that RBI technically has no ceiling. You can also go up to 100% LTV, more than 100% LTV, right? So it all depends on how well you're able to assess the quality and ability for the customer to repay, right? So that is one factor wherein we are doing 85% LTV also as per the RBI guidelines. And we are also we also have a small share of income generating loans, but we don't go beyond 85% as of now, even though income generating loans do not restrict you from going beyond 85%.

30:48 Plus with that, the prices have corrected a little. So these are the two major reasons why there's increase in LTV. But also, of course, with increase in LTV, we still have a lot of margin and cushion for us to I mean, I don't know any incremental risk towards your LTV numbers that we have as of now. So this was your I hope I answered your question correctly, the first one. Yes, yes, yes. And your second question was

31:22 like following the implementation of the RBI's new gold loan direction in April 2023, Just wanna know what changes have been observed in appraisal documentation and credit assessment, particularly for loans about rupees 2.5 lakh? And have they revised the requirement affected turnaround times or disbursement volume? It's an evolving business now. All the gold loans were only the consumption loans so far. There was no credit assessment involved. It is a load against the gold, okay? Now the situation is it is a loan with gold as a collateral security for a purpose driven loan, okay? So naturally, the future cash assessment, cash flow adjustments are to be that, in which case, there is no limit for the LTV. I can go up to 125% also, which means I take gold as a collateral and take cash flows into consideration, and we can lend based on the cash flow.

32:16 The gold loan company staff are not qualified or trying to do this assessment in every branch. There are very few branches where people have come from other NBFCs can do this assessment. Most part of the gold loan as on date is only loan against the good without any cash flow assessment, right? When we start doing the cash flow assessment, which we have started training the people, the LTV will become a less important one and cash flow will become more important one, okay? At that time, the yield can also go up and the risk can also go up. The default ratio can go up. All these things will be there. This will be more of a secured loan than a gold loan. Gold loan losses possibilities is very, very, very minimum.

33:03 When the LTV increases and we base on the cash flow for lending, probably the credit risk will also go up, credit cost will go Accordingly, it is to be priced. Entire gold loan market is not ready for it yet. There is a new guideline. The entire staff ought to be trained on this cash flow based lending, okay? That will happen over a period. Very miniscule portion is there, which is being called as a cash flow based lending. The advantage is when cash flow lending is happened, we can classify it as a prearchitecture, we can classify it as a SME loan, micro loan, agreed to sell loan, then these portfolios can be sold to the bank, which are not achieved at pre IFRS advances, which will be a separate revenue stream for the 10 BSD. So there is a great opportunity, but it requires a lot of training at the field level and also modifications to our system.

33:54 These are all in process. It will take some more time to settle down. And just to answer your question also with that, in terms of documentation, yes, about 2.5 lakhs, we take business registration groups, income documents and so on and so forth to understand the ability and the intent of the customer. We started doing that. Thank you. Next question comes from the line of with First Advisors. Please go ahead. Yeah. Hi. Thank you for the opportunity.

34:39 I have two questions from my side. Firstly, so, basically, given the group's presence across the whole value chain, do we have any plans to further expand beyond conventional gold loans, basically through products such as loans against digital gold or something? See, loan against digital gold is not possible as of now. We've tried. We've understood the protocol. But as of now, you can't in terms of regulatorily, you can't do that. So that is one. But of course, as an organization right now, I think we are too small to think about doing other things. So we're completely the organization is completely focused towards scaling the gold loan franchisee. But with that being said, we also remain available or maybe we remain open to understand if there are any adjacent synergistic opportunities for the organization.

35:35 And if we come across anything like that, I think we would be willing to explore something like that. Understood. And my second question would be in terms of the industry. So basically, around 60% of India's whole loan market remains with informal lenders. So basically, what specific initiatives will help FINKURVE capture this unorganized market share? And what customer segments or geographies offer this opportunity? Unorganized market is going down because they are not able to get the bank funding. Earlier days, they were doing a repricing with the bank. All the Kerala based banks are doing the repricing facility. They will take from the customer, repurchase with the bank, and they were able to rotate the capital many times.

36:21 Now what we specifically restricted that you cannot do the refund. So naturally, the private money lenders are not able to leverage their capital. So that market is going down very fast, and the people are moving to the organic segment, right? So that is one area why the growth you are seeing in the organic segment is much higher. Automatically, these independent money lenders, the portfolio will go down limited to their own capital and borrowed capital may not be available to the market from the banking group. And also, if you see the data, like you just mentioned, sixty-forty, we've already moved towards 60 five-thirty five kind of a number, wherein every year, the organized segment takes 1% of the unorganized segment's share. So I think with more education about our products and all the other larger NBFCs and banks also being in the product, I think that will gradually come down. And I think an organized sector will continue to gain market share from there.

37:29 You. Next question comes from the line of Akshara Joshi with RJ Investment. Please go ahead. Hello. Good good afternoon. So I had a couple of questions. The company added only four branches during this quarter compared to 13 branches in quarter one. So what is the branch expansion target for '27? And how should the branch addition run rate evolve over the coming quarters? Yes. I'll take it question by question. So in terms of the branch expansion guidance, we had given a guidance of 50 to 60 branches for this year. We are very sure that we would be able to get to that number.

38:16 So like you mentioned that we've added only four branches. So our strategy is very simple that first two quarters, usually, we tend to go slower on the branch expansion. And last two quarters, we generally pick space. So if you see by December end, we would be anywhere around 150 kind of a branch number, which means from 122 to almost adding about 28 more branches by December end. And then, of course, we have a line of expansion until March. So the guidance that we gave of adding 60 to 70 branches for this year, I think we will be able to comfortably achieve that. Okay. I had one more question. The Ogmont has an ecosystem of four, five crore customers and more than 5,500 dwellers.

39:05 So what proportion of the company's gold loan originates originates currently comes through this ecosystem? Can the companies quantify the customer acquisition cost advantage from this partnership? Correct. So yes, as of now, that you rightly mentioned, more than INR 5 crores registered users on their platform. As of now, FINKURVE Financial Services has we have not leveraged their customer base. So that's a large amount of pool that can be leveraged. But of course, we have to do it more strategically, wherein, of course, all those customers on the platform usually go to buy gold, right? So they're naturally not of the thought process of taking a loan against it. So we could naturally make different cohorts of different customers and target those customers. So even smaller cohorts of that customer base is a large pool for us to leverage on. So at the right time, with the right strategy, I think we will tap into that pool. As of now, all the go loan customers on our books are individually acquired by the branch network of Finkurve Financial Services.

40:07 It will work the other way. Goldman has more than 300 standard for are being distributed by various gold loan companies, including ours. So that is just a picking up in our case. Going forward, we will be in a position to sell many of the standard gold products, jewelry products to our existing customers. Let's bring a slide. The investors are not the borrowers in the market. Borrower is at the lower middle class level. So they are not the investors. As much as most investors in their portfolio. Whereas these borrowers are also investing in the gold jewelry, we have standard patents of those available from us, a leading company gold company. We are selling more than 28 tonnes of Almont jewelry in the market today. We have just started. We are trained our people. This will become a noninterest income for the company over a longer period.

41:01 Got it. Got it. It. Thank you. Thank you. Next question comes from the line of with. Please go ahead. Yeah. Hi, sir. So, maybe I have questions on the part. So if I could see personal loans contribute approximately 4% of premium, but account for nearly 27% of interest income. So what are the key product details, including average ticket size, tenure, interest rates and the nature of lending partnership? So how sustainable are these yields from this portfolio? Yes. So if you look at our personal loan portfolio, these are short term unsecured personal loans. The average ticket size ranges from so average ticket size ranges from 5,000 to about 2 lakhs per customer. That's the broader range. The average is about 20,000 here.

42:04 And average tenure is, again, we start anywhere from fifteen days to up to this goes up to three, six to nine months kind of personal loans. So this is the kind of economics that's around the personal loan product. Talking about what was your next question? Mainly the like what is the main product details, including Avatik as I stand your interest rate? How sustainable are these yields for the whole purpose? So this particular digital so this is again the partnership is through digital lending apps, LSPs. And these are, again, well established players in the market. The market of these STPL players is now expanding and increasing, right? So in terms of and the partners that we are working with today has a robust portfolio and adequate vintage, right? They have been into this business for almost a decade now. And our share of portfolio amongst their overall AUM is not even closer to onefour, right, onefive or onefour. So in terms of the overall scope of this particular portfolio, I think what we are talking about is almost like 7% to 8% or maximum 10% of our entire portfolio.

43:27 And we have enough space for us to be there in the market for our size of company, right? So even if we are at like about INR 1,600 crores, doing INR 150 crores kind of an AUM by end of this year in personal loan is not a challenge here. Okay. Okay. And also, sir, it would be great if you could provide a breakup of on book and off book because if I could see, the off book premium nearly doubled to around 78,000 rupees during this quarter. So this is... We could say that almost the entire sequential AUM was driven by co lending. Because the ongoing AUM remaining is largely flat.

44:14 So that's correct. I mean, what you have observed is correct. Our proportion of on book and off book has changed. Until Q2, Q1, we were at almost 1%, 123% kind of proportion, which we have taken it to 6%. So the entire growth that you see in terms of overall AUM is now passed on to the co lending partners because for multiple reasons, right? It comes at a cheaper cost of one, and you can manage your capital efficiently, right, the Tier one capital, sir. So again, in my earlier questions or responses to the earlier questions, we have reiterated that our idea is to take this particular output proportion to a reasonable size of at least 30% to almost onethree of our overall portfolio in the next mid- long term time frame.

45:17 Okay. Thank you for that. That's all for my time. Yeah. Thank you. Ladies and gentlemen, that was the last question for today. We have reached the end of question and answer session. I now hand the conference over to the management for closing comments. Thank you all for joining the call today. We wish you a very happy Diwali and a happy Lantiras, and we look forward to having you all for the next couple of calls that we are going to have. Thank you so much. Thank you. On behalf of FINKURVE Financial Services Limited, that concludes this conference. Thank you for joining us. You may now disconnect.