FINO Payments Bank (NSE:FINOPB) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Fino Payments Bank for q two FY twenty seven earnings conference call hosted by Go India Advisors. 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 from Go India adviser. Thank you, and over to you, ma'am. Thank you, Huda. Good afternoon, everyone, and welcome to the q two f y twenty seven earnings call of Fino Payments Bank.

0:48 We have on the call mister Ketan Merchant, interim chief executive officer, mister Anup Agarwal, interim chief financial officer, and Mr. Tejas Maniar, Chief Digital and Liabilities Officer. We must remind you that the discussion on today's call may include certain forward looking statements and must be, therefore, viewed in conjunction with the risks that the company faces. May I now request the management to take us through the financials and the business outlook, subsequent to which we will open the floor for Q and A. Thank you, over to you, Ketan. Thank you, Sheetal. Good afternoon, everyone, and thank you for joining us on Fino Payments Bank earnings call for the second quarter and first half of FY 'twenty seven. Let me begin with where we stand on our journey of becoming a small finance bank.

1:35 We are making steady and visible progress and remain on track to meet RBI stipulated conditions within the prescribed time line. On SFP preparedness, we made meaningful progress this quarter across technology, people and process. On the people front, we strengthened our leadership team with four senior executives who will drive branch banking, liabilities, credit risk and MSME lending. Each of them brings a unique set of skills and expertise to the table, backed by over two decades of experience in banking industry. On technology front, we are building capabilities which complements our existing distribution ecosystem, enhancing our enterprise wide technology architecture and create seamless customer journeys from sourcing to sanction and execution with minimum manual intervention.

2:29 On the process and project management and governance, PricewaterhouseCoopers continues to support our program and operational readiness. We are establishing a robust governance risk and compliance framework along with the core policy suit that a small finance bank requires. These are investments we are making ahead of growth, however, important from the long term sustainable perspective. Turning to our loan referral business, which serves as a foundation of our broader lending franchise. Total disposals in Q2 were INR $7.62 crores, up by 286% on a year on year basis. While for H1 'twenty seven, disposals stood at INR $13.90 crores, already surpassing full year levels of FY 'twenty six, which stood at INR $12.85 crores.

3:28 We have consciously kept this business centered on collateral based lending, which aligns with our strategy on secured portfolio once we enter the small finance by TIRA. Beyond fee income today, referral business deepens organizational insights into customer credit, market demand, servicing experience and stronger lending partnerships ahead of the launch of our own lending business. This growth currently being witnessed is a testimony to scalability of our differentiated credit sourcing model through merchants. Our capital position continues to remain comfortable, and we are above the regulatory requirement for the proposed small finance bank. And our business plan through by FY 'thirty remains exactly the same as we had predicted earlier.

4:22 We will continue to build a predominantly fee based business and strong liability franchise, complemented by secured lending portfolio. Coming to our liability franchise, this remains the cornerstone of our model and our biggest strategic differentiator. Our CASA base is inching towards a INR 2 crore mark, having reached INR 1.91 crore as at September 2026. This quarter saw 8.2 lakh new accounts open, averaging roughly one new account being opened every ten seconds. Average total deposits grew by 12% on a Y o Y basis to INR 2,794 crores, continuing its growth momentum.

5:11 To further strengthen the deposit base, we have launched a daily deposit plan product, wherein merchant would get the customers to deposit fixed daily amount in the account and thereby encouraging customers to save and build disciplined saving habits and convenience to small vendors through deposit in their bank account every evening post banking hours. In addition, we are also planning to launch value savings account in partnership with MBSE and other institutions, which are our CMS business associates to cater to customers obtaining loans from these financial institutions that is B2B2C, customer acquisition strategy. CASA segment contributed INR174 crores or 52 percent of our revenue, including a record renewal income of INR74.6 crores, which we see as one of the biggest indicators of sustainable retail income.

6:10 Other cost of funds for Q2 'twenty seven was 1.4%, giving Fino a structural cost advantage. Further, we expect our cost of funds to be around 4% even after SFP conversion, retaining an advantage of roughly around two fifty to 300 basis points over the traditional SFPs. Our more than 20 strong asset light merchant network remains a key competitive strength. It helps us acquire customers at a relatively low cost and gives us a ready distribution platform for future banking and lending products. Digital engagement also continues to deepen as digitally active customers in September 26 stood at 64.9 lakhs, while for the entire second quarter of FY 'twenty seven, it stood at 87.9.

7:03 Turning to our traditional transaction business, we saw a sequential increase in throughput and revenue from remittance and Aadhaar enabled payments system. Overall, UPI continues to dominate the ecosystem and driving behavioral shift from cash or card based small ticket size transactions to UPI. To address this shift, we have launched cash at UPI, wherein a customer will be able to withdraw cash using UPI at a Fino merchant point. In times to come, this has potential to increase and serve as a replacement of traditional ATMs. Further, NPCI along with partner banks, including Fino, launched a third party cash deposit product backed by EPS during the Global Fintech Festival twenty twenty six, wherein customer can deposit cash into other person's beneficiary account by providing valid KYC and authentication.

8:06 This will also provide some support to the transaction business volumes. Our B2B business, CMS throughput grew 13% sequentially and 12% on a Y o Y basis to INR 20,511 crore. The uptick was a result reaffirming the confidence of our business alliances, NBFC's Fintech, e commerce and others in our institution. Competition in this segment continues to weigh on pricing. Hence, our focus remains on volume and network engagement and reinstatement of our earlier B2B partners. In Q1 FY 'twenty seven, our B2B and Alliance business had reduced due to skepticism of an event, which had happened. Now in Q2 and more, we are indeed working towards regaining the market share in this alliance and B2B space as seen in the CMS and alliances numbers, which I just stated earlier.

9:04 On digital business front, we had indicated the relaunch of our UPI B2B P2M segment during the year, and I'm happy to share that we are on track and shall be resuming the these services or this product by Q4 FY 'twenty seven. Overall, Q2 FY 'twenty seven or H1 FY 'twenty seven was a period of consolidation, execution against our strategic priorities of winning back our partners. We continue to strengthen our liability franchise, advance our SFP roadmap across technology, people and governance and rebuild our cash services for UPI First World while absorbing the cost of that investment. Our objective remains to build a differentiated digital led AI driven small finance bank anchored on three enduring strengths.

9:58 The strong liability or I can say liability first franchise with a structural cost of fund advantage, a predominantly secured and asset light lending model powered by our physical distribution network and technology led operating platform built around clinical and AI enabled lending capabilities. FY 'twenty seven remains the transition year, and our priorities are unchanged. Sustainable long term vision and growth, disciplined execution and investment for growth are our key priorities for this year. With that, let me hand it over to Anoop, who will take you through the financial performance in more details. Over to you, Anoop.

10:46 Thank you, Ketan. Good evening, everyone. Let me start with the overall perspective. In Q1 FY 'twenty seven, our revenue recovered sequentially supported by recovery in both retail transaction business and our B2B alliances business. Our net revenue margin compressed sequentially but remained higher than last year due to higher contribution from the high margin CASA segment. And liability continued to strengthen and deepen digital presence. Revenue for the quarter stood at INR33.6 crores, up 9% sequentially and down 17% year on year. For the first half of the fiscal, revenue was around INR $6.40 crores, down 25% year on year. The year on year decline is largely driven by recalibration of our B2B P2M business.

11:37 Our sequential growth across all revenue verticals during Q2 FY 'twenty seven over quarter one demonstrates confidence of our merchants, business alliances and other associates in the institution. Throughput grew by 4% sequentially to INR 1.15 lakh crores despite ecosystem challenges on new menace, enhanced daily inquiries, tough competition in the B2B alliances business. In terms of mix, CASA contributed around 52% of the total revenue. Tradition transition business and B2B alliances regained some volumes during the quarter. Net revenue was around INR127.1 crores, down 14% year on year. However, sequentially, it grew by 3%.

12:26 Our net revenue margin was around 38.1%, which is 100 basis points higher than the last year's net revenue margin. And however, it is lowered by four fifty basis points sequentially. Similarly, for the first half, our net revenue margin was around 40.3% against 35.2% a year ago, an improvement in 500 basis points, which reflects structural improvement in the quality of our revenue mix. On the expense side, our operating cost marginally grew by 5.8% year on year and 4.5% sequentially. For the first half, the operating cost was around INR180 crores, up only 1.6% year on year. Our cost to income ratio improved to 27.6% in quarter two versus twenty eight point seven percent in quarter one. We are maintaining frugality and in parallel investing in technology and talent.

13:26 Moving to profitability. EBITDA was around INR 35.1 crore with a margin of 10.5% compared with INR 61.6 crore a year ago and INR 43.1 crore in quarter one. In terms of cash profit, we continue to remain positive. We will continue to invest in people, process and technology, which might have an impact in the short term profitability, however, building long term robust, sustainable and resilient institution. Coming to our further operations, our liability franchise continued to be a strongest pillar of our business. Account opening momentum was sustained with 8.2 lakh new accounts opened. The CASA renewal revenue showing highest ever during any quarter.

14:16 Our deposits grew at around 12% to INR 2,794 crores during the quarter. The growth of CASA keeps improving the quality of our earnings today as its contribution keeps rising and creates a solid funding base for small finance bank. In the traditional transaction business, APS and remittance recovered 1518% sequentially, driven by increase in the DBT activity during the quarter. Coming to our B2B business, CMS segment throughput grew 12% year on year to INR 20,500 crores. As mentioned earlier, it was part of our regaining the business volume strategy. The pricing competition still exists in this space, which has impacted the trade, but we believe the sustained throughput will contribute to revenue and subsequently to the profitability.

15:11 Our loan referral business, as mentioned by Ketan, which is a foundation or a starting point for our launch of SFD, saw disburses increase by 2.5x year on year to INR $13.90 crore in H1 'twenty seven. The pipeline remains aligned with the secured segments we intend to focus on, namely gold loans, affordable housing, loan against property and secured MSME lending. Our fund management treasury, despite rate cuts during FY 'twenty six, we have been able to deliver high yields of approximately 100 basis points than the market yields, which also has contributed to our revenue. On the regulatory front, our net worth and capital adequacy are well above the regulatory requirements even from an SMB perspective.

16:03 Looking ahead, our strategic direction is unaltered. We will continue to strengthen our liability franchise, maintain disciplined cost management and invest selectively in capabilities required for the transition. Overall, we believe the foundation we are building together with our structural funding advantage, disciplined execution and focus on secured lending positions us well to create sustainable long term value for our stakeholders. With that, we are happy to take any questions. Thank you. Thank you very much. We will now begin the question and answer session. May press star and one on their touch tone telephone.

16:50 If you wish to remove yourself from the question queue, you may press star and 2. Participants have requested to use handset while asking a question. A request to all participants, please restrict your questions to two question per participant. For more questions, please rejoin the queue. Let's wait for a moment while the question queue assembles. The first question is from the line of from. Please proceed. Yes. Thank you for taking my question and congratulation on good run rate on the referral loan. Sir, my first question is regarding the Slide number 12 where we have mentioned about the SSP timeline. And we say that submission of final readiness to the RBI and go live in Q1 FY twenty twenty eight.

17:41 How confident we are that we'll be able to achieve it? Do we see any delays which can happen maybe from RBI side? Or are we very confident that we'll be able to start by Q1 FY twenty twenty? That's my first question, Ankit. Thanks. Ketan here. I think it's a very pertinent question. As I said earlier, we are working towards the projects. We are a listed bank and we are a scheduled bank. So a lot of the liability franchise, etcetera, is already built in across. As we've captured across in Slide 12, currently, as we speak, we are tracking on that kind of a schedule and timetable, okay?

18:30 As regards to how RBI looks at it, what time lines, etcetera, that's something which we cannot comment across as well. But as we speak, I would just like to reiterate the point that we are tracking the SFP time lines as they are what is meant for us currently and what is captured on Slide 12. Great. So my next question is related to MDR. In the previous call, I asked this, and I think you mentioned that, yes, MDR would be a definite positive for us. Now that MDR has been pushed to January, how do we see that directionally? I'm not asking for any guidance. Directionally, how does that help us from Q3 onwards if it comes into effect? Any color you want to share on that?

19:23 I'll get Tejas to maybe answer that. He's best placed amongst all of us. Akit, that's a fair question. So currently, have prepared ourselves any which way from a relaunch point of view. Outside of that, we are speaking to our potential partners with respect to our current partnerships. But as we said, once the MDR comes is when we'll be able to actually go ahead and give some amount of guidance. But I mean, your guess my guess is as good as yours as to when it will be actually implemented. So there is no point right now to be very honest in putting the horse before the cart or the cart before the horse.

20:09 Yes. Fair enough, sir. And my next question is this new products which we launched cash at UPI and daily deposit plan. These are also fee generating products. So will MDR impact here as well? Or do we see it is outside the purview of MDR? No. So, Ankit, just to put a perspective, and it's a good question, our daily deposit plan is not a fee generating. It is one of our initiative to increase the float balances. This is to inculcate where a small time account holder or small time vendor every day after the working hours where bank is done and he's done through his daily business throughput, etcetera, he can deposit an X amount at any point of time in the evening or night into our bank account. So instead of keeping cash, he may have to he can get some interest coming out of that.

21:05 So daily deposit is something which we are catering to enhance our liability franchise. Cash on UPI and the other Aadhaar enabled payment system, just to corroborate what is cash on UPI, just let us keep it very simple. As I said earlier, it is a NPCI approved product wherein we can instead of using other enabled payment system debit card for ATM, a QR dynamic QR code generated and a withdrawal can happen. That will be a fee based product. It does not entail any kind of an MDR coming across out there. Third product is the Aadhaar enabled deposit payment. That also is not linked to MDR in any manner. One last question, if I may.

21:55 Regarding the referral loans, as we are focused on majority not majority, in fact, probably everything is secured. And especially in the gold loan, what we are hearing from all the other players who are in the gold loan, there is some stress being seen. Are we also seeing something similar in our cases? Or is it something different here? So just to clarify, currently, our endeavor on this loan referral and our outlook out here, I would not say outlook, but our activity out here is just purely referral. Underwriting is done essentially by a partner in our current scenario.

22:43 As regards to some articles which you are referring to, gold loan is under stress, etcetera, etcetera. I think we are if we do not underwrite, we do not know. But whatever data point which we are looking at is and the kind of growth which we have seen in our portfolio or in our demographics, etcetera, does not seem to be suggest that any skepticism coming in terms of further underwriting by the underwriters. So I think it's too premature to comment on whether the gold loan will come under stress for us currently. But our growth plans and our geography where we are growing essentially or in our demographic which we are growing is showing a good way of growth without skepticism coming on underwriter side.

23:46 The next question is from the line of Manish Kumar Jain from prudent securities. Please proceed. Yes. Very clearly. Already said this one crossover small finance branches open final approval. So as you rightly said, we are already in the journey of... In transition into small finance bank. So we still have time to prepare for the branches.

24:38 Have already identified the locations, geographies, districts and in the process of forming up the branch plan, and it should be ready by the Q4 before we apply to the RPI. Right. Also, just for your information, currently, also, we have around one twenty five branches and contact service points across India apart from our merchant network. So those will also be converted into a small finance bank branch. So in addition, we are also planning to open approximately 40 odd branches, liability branches and around 25 to 30 asset centers in the first year of operations.

25:38 Question credit sourcing leverage So even after SAP, it will be continue to leverage the merchant model for assets as well as liabilities. Business currently loan small finance bank directly loan link. Your demand. Right? Absolutely. Sir. Thank you. Thank you. The next question is from the line of Harsh, an individual investor.

26:28 Please go ahead. Hello. I'm audible. Yes, sir. Yes, sir. Yes. So I wanted to know, so we are targeting to transition in around the first quarter of next year. So when we do that, we'll have INR 2,500 to INR 3,000 odd crore deposit book ready to be lent out. So I'm not asking for an exact guidance, but a rough estimate of how much, what sort of AUM are we targeting in the first year of operations? So we had earlier also presented it across that you are right, we have an opening balance of our deposits.

27:19 Most likely, it will be a number which will be much more than what you just said. But we are looking at anywhere around INR 2,000 crore award kind of a dispersal which will be happening across the portfolios and the secured product which we are looking at. As we grow closer to the launch date and we are testing the preparation. As I just said, the kind of our loan referral enhancement, which is across coming across, it can the number can vary as well. It can be slightly more or less depending upon what we are seeing over next three quarters in terms of our loan referral business as well. I think one point which is to be noted, and again, I'm not deferring from anything which we have put it earlier in our strategic map in terms of year by year on SFB is we want to focus on a secured portfolio, and we want to leverage our current merchant channel. These are the two most important things which will give us quite a differentiation, which we come across in SFP.

28:28 Okay. So the 2,000 odd crore of assets is approximately in the first twelve, fifteen months? Yes, please. Okay. And my second question is something I asked previous quarter also. So as an analyst, what worries me is that we are a payment bank and the deposits we're raising are more of like a transactional float. And I just wanted to understand how are we planning to finance assets on a deposit book that comes and goes? It's... So let me take that question. So currently, out of our if you see, there is a constant growth in our deposit balance. And what we have also observed from that behavior, 90% of our deposits remain as a core balance, which is very critical from a lending point of view. So they are sticky and core for us. 90% of our balance remains core.

29:36 Currently, I mean, we don't a larger part of 99% of these balances are savings account balances. So that itself also gives us the confidence that this will remain as a core during in the ASOPB transition as well. Okay. Yes, that makes sense. And so as a payments bank, I think we can't keep deposits of above 2 lakhs, right? So how much deposits will accrue back to us the moment we transition? That's essentially, if I understand your question right, you are saying that once the restrictions of 2 lakhs go away, what is the impetus or what is the increment which we can see in the deposit growth? Is that what you are alluding towards?

30:27 Yes. See, again, as someone earlier asked about the question as well, we are gradually changing our demographics coming across. Somewhere as we currently speak, our deposit is between anywhere in the range of 1,500 average balances as well. We are gradually going towards this. In our earlier presentations, we have demonstrated or we depicted rather that we will be opening some branches to cater a different demographic as well. So those are the plans which we have anywhere separately published across, not in terms of numbers, but in terms of a plan that how do we want to cater this off. As we speak currently, currently, do we have a number that how much will be the difference coming on account of only 2 lakhs? I don't think we are targeting it that way. However, in addition to 2 lakhs, it will also be fixed deposits will be allowed, recurring deposits will be allowed. So there are a lot of other liabilities or deposit restriction, which are currently there in Payment Bank, may not be there in Small Finance Bank. That's how we are catering to an overall kind of a deposit growth, which is coming across. So maybe as we come closer towards the opening of these branches and location towards coming across is where we will maybe have some sort of impetus coming on that.

31:51 So and do we intend to continue our renewal and referral businesses like those line items will still continue? See, renewal will definitely continue. As I think earlier, said, of around INR $3.33 odd crores of revenue, 74 crores has been renewal. So we are going to continue in terms of our renewal income coming across as well because that's something which we've built over last six, seven years and that cater to a specific kind of a demographic coming. As regards to referral, again, as we said, we are broadly doing INR $2.50 crores of lending referral currently on a monthly basis.

32:39 We will then just take a stock of how do we want to do it across. The most simplest and the most placid manner is that depending upon the kind of growth which we see it across, most of it we can underwrite it ourselves as well. So that again renewal, yes, referral, we just have to take the stock as it comes towards the beginning of the SFT. Or maybe renew, we can lend out on the secured side and refer on the unsecured. Is that also a possibility? I don't think we have gone into that part. As we speak, currently our endeavor is check the referral lending to go towards underwriting for yourself. And as think Anoop I said earlier or we put it in the investor deck as well earlier is we are looking for larger part of our portfolio to be secured.

33:38 So we will take this call whether how do we leverage the referral more closer towards the SSP launch. Okay. Sure. Thank you. Best of luck. Thank you very much. Thank you. A request to all participants, please restrict your questions to three questions per participant. For more questions, please rejoin the queue. The next question is from the line of from SK Associates. Please go ahead. Yeah. Thank you so much for the opportunity. I wanted to understand that how is Fino planning to manage credit risk and collection efficiency along with asset quality as you plan to move towards your lending operations?

34:28 So thank you for the question. And in terms of the credit risk, just to highlight, we have currently in terms of the customer, we are looking at we are only targeting in the initial first three years of captive consumption of the loans. That is we are targeting our own customers and merchants for which we have already their transaction behavior, their cash flows for three to four years transaction history we have. That is our first target customers for the credit underwriting. That is one. Secondly, in terms of the collection efficiency, currently, if you see one of our business verticals is a cash management system where we currently collect around more than INR 6,500 crore every month.

35:23 And this 60% of these collections are for the NBFCs and the banks or the MFIs in the rural India. So where we do the I mean where the EMI collections happen at our merchant points. So already, we already have the infrastructure or distribution network, which will which will utilize or leverage for our collection purpose as well. Understood. And what is your medium term guidance for revenue growth, EBITDA margins and return on assets? So currently, I will refrain from saying any guidance for this financial year. We are trying to as Keaton mentioned in his opening remarks that this is a year of transition.

36:12 We are trying to regain our business volumes and focus on building up for the small finance bank transition. So we'll be continue to invest in technology and talent. Hence, this should be treated as a year of transition for us. Understood, sir. That's it from my side. Thank you. Thank you. The next question is from the line of from AG Capital. Please proceed. Hello. Thanks for the opportunity. So I had a couple of questions. So my first question is with strong growth in CASA and loan vessels, what does management believe will be the biggest contributor to incremental revenue growth over the next two financial years? So if I understood your question right, is when we become an SFP, etcetera, what is our biggest growth drivers?

37:10 I would just tell two things out here. One is maybe or not maybe, but our cost of funds. Currently, we are at 1.4 of our cost of funds with an average deposit of around INR 2,794 crores or INR 2,800 odd crores. Our endeavor is to grow that, maintaining at least two fifty to 300 basis point difference between the peer bank and us. So CASA and the liability first approach will definitely be the biggest game changer, if I can say, in terms of how do we grow across into our SFP. Someone earlier asked about renewal income as well. Renewal income broadly is around INR 70 INR 65 crores to 75 crores on an average basis for each quarter, which we are looking at for this year. So that's something which will continue. So CASA definitely becomes a big, big important thing for us. Currently, as we speak, it contributes 50% plus of our total revenue.

38:15 Loan referral, as I said, is a testimony of our model that whether on a merchant model, the way we are garnishing or the way we are mobilizing deposits, similarly can we mobilize the assets coming across as well. So loan referral currently is INR $2.50 crores. It is more about testing our demographics, our model when we become an SSB and how that can become our sourcing platform along with our deposits as well. So both are equally important. Anup earlier mentioned it off as well that in addition to all of this, our payment related and fee based income, which is in the range of around INR 1,300 odd crores or for on an annualized basis, also intends to continue. And that will be also a differential point for us when we become asset light SFP.

39:19 Okay. Understood, sir. And my next question was what are the key business and financial milestones investors should track over the next two, three quarters to assess whether the company is successfully transitioning into its next phase of growth? So as mentioned earlier, we are not providing any guidance right now. We are focusing on building a strong liability franchise. So our growth in CASA, which will be the corner store for our S and P launch and our loan reference business, which is a testimony to say that there is a demand for credit in our target segment, which we are dealing with. So that both will be the common source for our future growth, along with the sustained fee based income for our transaction business and other B2B businesses, which will continue even in SFB scenario.

40:13 Okay. Understood. That's it from my side. Thank you. Thank restrict your questions to two question per participant. For more questions, please rejoin the queue. The next question is from the line of Anurag Jain, an individual investor. Please proceed. Good afternoon, sir. First, my my first question is related to the corporate VC business. Where where are we in terms of high vol sale of this business, and if there are any updates you could share? So thank you for the question. In terms of sort of exiting the corporate VC business, it's part of our SSP transition plan, and it will be executed as per the plan before we apply to the Reserve Bank of India.

41:12 And just to understand this process, do you still like once do you can you take credit... Retain this business once you transition to ISB? And I will give you certain time to hire... To exit this business, or is it a preconfusion that you have to exit it before the conversion to ISB? Sir, I will restrict my response to what I mentioned. It is part of our transition plan and will meet all the conditions which is stipulated by the RBI for transitioning into SAP. Thank you, sir. I'll move on to the next question. In the first twelve months of being there as an SFB, what kind of investment is in the charge for branches for technology back end? And what kind of manpower hiring would be required versus the current 3,000 employees approximately?

42:08 So in terms of the CapEx, we had mentioned in our earlier quarter presentations of around So we are anticipating a CapEx largely on the technology front in terms of augmenting the low LOS, the lending operation system, the lending management system and other peripheral systems required, collateral management, enterprise NPA. There are various technology systems required. So we are anticipating anything between 120 to INR 150 crores of CapEx over a period of one year to fifteen months from now in terms of transitioning into SFP in the first year of SFP operational. And in terms which also largely takes care of our branch. As I mentioned earlier, the branch infra cost is not much. Largely, the spends will be on the technology front.

43:00 In terms of people hiring, we are definitely going to leverage our existing 3,000 people already we have. We will be augmenting the resources in terms of hiring the for the asset vertical, which will be as per our business plan once we get the final note from the Reserve Bank of India. Thank you, sir. Thank you. The next question is from the line of Ankit Kanodia from Zenhimesh. Please proceed. Yes. Thank you for allowing the follow-up. I just have one follow-up. Sir, it is in regards to your response to one of the earlier participants' question, where you mentioned that you're expecting about INR 2,000 crore of dispersal in the in FY 'twenty eight when we transition into SIB.

43:53 But my general understanding as in query or is that when we are into referral and in six months we are already disbursed INR 1,400 crores, Don't you think INR 2,000 crores is a very, very, very conservative number and we should have a much bigger target? Maybe I'm missing something. You're absolutely right. We are as we will be it will be the first year of operations. We want to test the guardrails, which we have built, the processes we have built when we go live. Hence, we have kept a very, very low target or maybe not conservative, but a realistic target of INR 2,000 crore in first twelve months of operations. As we grow along, we will be growing more.

44:38 And as we have mentioned earlier in our presentation, we are looking at around INR 8,000 crore to INR 10,000 crore book over a period of three to four years. Ankit, Ketan here. I think, yes, and Anoop rightly answered this off. The answer of this also lies in what I just said earlier. We have at least three more quarters of our lending referral going through it. So that will be also a good point of determination in terms of going relatively more aggressive and not only in terms of numbers, but in terms of the radar and in terms of the sourcing as well. So some of this will evolve as we go towards the last quarter before the launch as well. Sure. Thank you so much for the answer and all the rest. Thank you.

45:27 As there are no further questions from the participants, I now hand the conference over to the management for closing comments. Over to you, sir. Yes. Thank you, everyone, for patiently listening to us in terms of our quarter two performance and H1 performance. I'll just reiterate what we have attempted to say over the last forty five, fifty, fifty five minutes. I think our strategic priorities are aligned. This is we have gone through a transition or we are going through transition. We've gone through consolidation mode as well. We will continue to invest for growth. And the priorities for us remain SFP transition, liabilities first approach and how do we get into further leverage our B2B and alliances business as well.

46:24 This is where I just wanted to put a perspective for next couple of quarters. Thank you, everyone, for listening to us very patiently. Have a wonderful evening. Thank you. Thank you. On behalf of Go India Advisors, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.