And secondly, when we look at it in terms of the overall BT out of Rs. 4,000 odd crores, what was the request that had come in, and how much we have been able to retain and finally, we saw this BT out of Rs. 4,000 crores?
I don't have the figures, Kunal , honestly. Yes, what were the total number of applications received, how much did we retain, and how much went out, I don't have the figure exactly. That can be found out. But yes, overall... Definitely, Kunal. Definitely, right, because at 8.75% even if we had tried to retain, I don't think we could have made much of an impact when banks were offering at 7.5%. It is difficult to retain a customer at 8.75% that you would also allude to. But with the reduction in BT rates, we have seen it in October. Our October BT out has reduced significantly when compared to July or August or even September. And I think at 8% roughly we should be able to retain much, much more as compared to what went out.
And lastly, in terms of the improvement in Stage 3 and Stage 2, is it largely retail because of this focused correction sell which was there post Q1, or there is some element of corporate recoveries in this improvement in Stage 3, Stage 2?
Yes, the asset quality has been improving quarter-on-quarter past four, five quarters almost. Yes. And this is, see, if you understand the recovery thing is not that I do something this month and I get results next month. Especially if you look at our entire book, most of the Stage-3 is pertaining to our legacy loans, particularly 2016 to 2019, and some of these loans, about 10, 12 of these loans are big loans, Rs. 200 crores and above. So, it does take time, especially the legal process, as you know, in India it takes time. Whether it be the SARFAESI method or whether NCLT or DRT, these all things take time. So, this is a continuous process which has been going on, and the improvement in the asset quality, which you see is the result of what has happened probably 3 quarters back or 4 quarters back. So, there is no easing on the pressure. We are increasing the pressure. In fact, there is another thing which we have not done so far is there is this willful defaulter guidelines issued by RBI. We have not yet initiated this, but for the, I would say, very obstinate and tough people who are not willing to negotiate , not willing to settle, not willing to talk, I think we need to initiate the process of declaring them willful defaulters and all . That is basically to put on pressure. So, g oing forward, I feel this recovery from NPA will improve in this quarter. If I see as compared to the June quarter, my Stage-3 has come down by Rs. 742 crore s. Recovery is happening. Going forward, I am hopeful that two to three big loans, and when I say big loans, I mean Rs. 200 crores and above, two, three big loans to be settled.
And sir, then m y second question was , if I look at LIC Housing as a franchise for almost this decade, from maybe 2012 to 2022, we used to operate at lower margins, still deliver respectable ROAs. Because of that growth which was there and which used to give you leverage in the balance sheet, we still used to deliver very respectable ROEs. So, e ssentially, we were still delivering growth and healthy profitability. Right now, I am sure early in the call you have made it very clear that we will prioritize profitability over growth, but can't we kind of do some trade-off in terms of margins to maybe at least get to a respectable double-digit growth?
Yes, Abhijit. As I said during my reply to Renish and others, this is one question which has been bothering me, growth. Yes, I do agree to what you are saying that we are a big company, Rs. 3 lakh crores of AUM, so definitely expecting me to grow at the same rate as some of the smaller companies, it is not possible. But definitely this growth of what, 7% or 8%, whatever we call it, not acceptable at all. This is the biggest question which is worrying me, which is worrying the Board as to how do we grow. One of the methods, I would say slightly what I call an inorganic method, is probably going for co-lending or direct assignment. This is something which we have not at all tried in the past. All our business is totally what we directly source either from agents or through direct business or whatever. So, definitely, one, t here is a scope for getting into co -lending arrangements, into going in for direct lending or direct assignment, which can also boost my book. Yes, that is something which we are exploring. Right now we are framing co-lending and a direct assignment policy, which we will get approved by the Board. The Board also agrees that yes, we need to have a policy and need to explore this particular channel of growing the book.
Most of the questions are already answered. Just s ir, could you give some more color on the competitive intensity. So, I know we have talked a lot about growth, but if you could just talk about more how you see the PSU banks behaving going forward , t hat would be helpful. Secondly, if you could give some more color that I know we are not reducing PLR and all the impact is there. But can the incremental yields come down further from current levels? How should we think about it?
Yes. Kushagra, right. As regards what PSB banks are going to do, I don't know. I do not know whether I can take a call on that. One thing definitely, PSB banks are very, very, very aggressive right at the moment. I do not know why the aggressiveness has come about. Is it something to do with reducing their unsecured lending portfolio? Because housing finance, as you know, is a 100% secured portfolio backed by solid collaterals. But yes, what we are seeing is PSU banks are very, very aggressive, right? Offering rates as low as 7.35%. Two banks I know are offering new loans at 7.35%, whereas most of the bigger banks, PSU banks, are at 7.5%, where we are exactly right now. So, I believe we are competitive as far as that is concerned insofar as that is concerned. So, yes, and u nfortunately, we are a housing finance company. We are not a bank. But t he segment we operate in, if you look at my book, it is almost 85% salaried and probably 10% self-employed and another 5% to non -housing corporates, etc. So, t he segment we operate in is exactly the segment in which the banks are operating. So, quite naturally, there is a lot of competition, there is a lot of pressure, and banks are very, very aggressive as I said.
Sir, I just had a few questions. Firstly, on growth, right? So, our growth is flat Q-o-Q when in general seasonality should be better this quarter. And the repayment in core retail also looks on the higher side. So, possibly, there are BT out. How do we plug that? How do we accelerate growth from here on? Because it is just stuck on a year -on-year basis also in that single -digit range. So, how do we view growth going forward? That is the first question, especially even in core retail. I am not even talking about developer or LAP.
Fine, Mahrukh. I will take your first question on growth. Yes, I do agree that the growth has been, I would say, flat. As you said, we are just showing growth of 5%, 6% Y-on-Yand Q-on-Q also there is not too much of a growth. Yes, you are right. The growth, to some extent, has been hit by BT during this second quarter. If I take on Q2, the BT has been to the tune of Rs. 4,014 crores against a normal run rate of about Rs. 2,000 crores in a quarter, right? In Q1, it was Rs. 2,195 crores. So, there was a slight pressure on BT largely because of, I would say, the rates the banks are, and in case of a BT, what usually happens when a person goes out, he gets the new, what we call the normal lending rate which is available, which is roughly, which starts from 7.50% by and large in the industry. So, that was one of the reasons. Yes, we were aware of this. We were waiting and watching what would be the impact. And this Rs. 4,000 crores of BT out in the quarter did sort of take away about Rs. 2,000 crores of business from our loan book. So, had we decided to lower our, what we call, rewriting rates, we could have probably saved on those Rs. 2,000 crores. But then again, as I said in the beginning of the year, this year is going to be a year of challenges in the sense of balancing growth with the spreads and the NIMs. So, we did, I would say, decide not to be very aggressive on reducing rates as a result of it, which probably took a good hit. But we have done it now very recently. We have reduced our rewriting rates to some extent and we are hopeful that this BT challenge is now over. The BT challenge is now over. As witnessed in the month of October of Q3, the BT is at lower levels as compared to July, August, and September of Q1. So, the BT challenge is over. Yes.
No, I have one more, sir. Also, in terms of credit costs, so now we see them settling in this 20, 22 basis points range. Is that the right way to look at it? Of course, and if and when recoveries come, then that is an additional upside. So, will it be in that range, the credit cost, or would it be slightly higher or lower?
As regards credit cost, yes, in the beginning of the year we had given a guidance of keeping credit costs within 15 basis points. Right now, in Q1 it was 6 basis points. In Q2 it was 5 basis points. So, together, 11 basis points. But if you see, though our asset quality has been improving, we have been making a slightly higher provision. Our PCR currently stands at 53% whereas at the end of last year it was at 49%. In the last quarter it was 51%. And that is partly because let me call it the principle or let me say the, what we call is, we have something called the management overlay. Though traditionally it means it is at the discretion of the management to decide how much to provide and how much not to provide, but here in this company we have formulated this, or we have had a written down six-point formula on what are the management overlays we are going to provide for. So, there is not too much of, I would say, management discretion on that. And because of that, some of the stressed loans which are outstanding for a longer period of time, even though as per the ECL we did not require to provide for them, but as per the formula we have fixed for ourselves, we have to provide for a little bit more. So, the management overlay has been additionally provided in the quarter, which has resulted in a better PCR or a bigger PCR by an increase in the PCR by 2%. So, probably, that was one of the reasons why our credit cost appears to be slightly higher. But going forward, I believe we have made whatever provisions are required to be made. The asset quality is improving quarter-on-quarter. A lot of efforts have been taking place to get these recoveries, especially the legacy loans which form a major portion of our Stage-3 portfolio, to get these resolved either through legal methods SARFAESI or through the NCLT or through the DRTs and also through conciliation, negotiation, and settlement. We expect in the remaining two quarters, Q3 and Q4, at least three big loans to be settled. They are very close to resolution and almost literally I would say the final stages of resolution, the final small formalities and modalities need to be worked out. So, going forward, I am pretty sure the, I would say, credit costs would be further reduced, and I think we would be able to achieve the guided range of 50 basis points, which we had alluded to in the beginning of the year.
Sir, but what is the new rewriting rate now that you adopted now?
Well, it is the lending rate plus 50 basis points, by and large. By and large. The lending rate is about 7.50% So, 50 basis points would mean closer to 8 % subject to CIBIL score.
Just two things from my side. One, on the NIM. So, from last two quarters we saw a significant reduction in incremental cost of borrowing, and I do understand that it will not reflect in NIM immediately. But just wanted to check, when do you see the book cost coming down materially and drive NIM higher ? And also does your PLR directly link to your book cost? In that case, NIM will structurally remain low as the moment your book cost comes down, next quarter you have to adjust your PLR, which will result in asset yield compression. So, how do you see the NIM trajectory in near term, say next four to six quarters?
Yes, right now the NIMs are at 2.62% for the quarter, right? And beginning of the year, we have given the guidance that NIMs would be in the range of 2.6% to 2.8%. As regards the transmission of the lowering of the PLR, we lowered the PLR in the end of April month, 1/3 of my book. That means out of 15 lakh loan portfolio, number of loans , 15 lakh loans were on monthly reset. So, they got reset from the 1st of May itself. The rest 2/3, that means 10 lakh loans, got reset from the first day of the next quarter because they were on quarterly reset. So, the entire reset on these 10 lakh loans happened on the 1st of July. So, the full impact of the PLR reduction was felt in Quarter 2 because the reset happened from the 1st of July on the remaining 2/3 of the portfolio. So, I think as far as the reset is concerned, all loans have been reset. There are no further resets which are going to take place. So, I believe this 2.62% NIM which we are seeing at the end of Q2 is the bottom that we have seen. I do not see any reason why there should be any compression on NIMs any further. Going further as the cost of borrowing decreases , n ow as far as the cost of borrowing is concerned, my borrowing book of Rs. 2,70,000 crores is divided into two parts. 53% of my book, the borrowing is at fixed cost in the form of NCDs. So, that is not going to get replaced. That will only happen when the NCDs go out of my books 43% of my book is linked to the repo, which are basically bank borrowings where I do get the benefit of reduced repo rates. So, this, I would say, a compression in the cost of borrowing, part of it has come into Q2 and some, a little bit more will be transmitted in Q3. So, we can expect the incremental and the cumulative cost of borrowing. Incremental cost of borrowing right now stands at 6.85% and the cumulative cost of borrowing stands at 7.42%. We expect, of course , there has been a compression, but we expect it to compress a little bit more further, probably by 5 or 6 basis points further in Q3. So, that will also translate into a better NIM, I would say, in adding to the NIM. So, going forward, I believe the NIMs, the range which we had given 2.6% to 2.8%, we shall be maintaining it. 2.62%, I believe, is the bottom of the curve which we are experiencing right now at the end of Q2. Going forward, I expect the NIMs to improve slightly.
Just to follow up on that , I mean, the moment your cost of borrowing comes down, how often you sort of reassess the PLR rate? Is it quarterly, 6 monthly? How is it?
Review is on a periodical basis. Our PLR is repriced based on our cost of borrowing and other factors. We review it on a quarterly basis , and PLR after reviewing if the cut is required , and i t all depends on the cost of borrowing and other factors.
My second question is again on the growth side. So, honestly, our growth is one of the lowest in prime housing despite such a strong brand and competitive pricing. And also, I am just referring to your Slide #12, wherein the ticket size is increasing and however, even growth continue to remain low single-digit, which means login must have been lower in the recent past. So, what are the plans to accelerate login and eventually clear the disbursements? And also, do you feel is there any need for a structural change? We are doing a business considering the increased competition. Do you feel there should be any incentive or a branch structure as to change to excel in this process?
Yes, Renish, coming to growth , yes, that is , I believe , the biggest point of worry for us as management also. As a company, I think we have stagnated over quarters, but I believe over the last few years the kind of growth we envisaged or thought about have not come about. Yes, there is a lot of soul searching going on within the company. What do we do? What do we do with the distribution model? Is there something done in the distribution model? Is there something to do with the structure of the company? And towards that, the Board has guided us or the Board has asked us to go in for a comprehensive relook at the entire structuring of the company in terms of offices, the locations, also in terms of the distribution channels and what we need to do. And w e are right now in the process of boarding a consultant for this process. So, probably three to six months we will be going through this entire exercise in conjunction with the Board and having a look at the overall picture and seeing what are the areas which are holding us back, which are the areas where we need some restructuring, some change, some slight tweaking or a major rehaul overall. So, that is a process we are going through. For the current financial year, if you may ask me, two areas, two issues which we need to address directly. See, we are a company which is overly dependent on agency business, right? About almost 87% of my business is through agents, as you know, these are not ID agents in the sense they are not tied to our company alone. They are freelancers and they do business with other companies and other lending institutions. And the other part of it, we are also trying to develop an alternate channel. In fact, we are working on two alternate channels. One is the lead business. This was a business which we were not very much focused on. We started off last year and the whole of last year we did about Rs. 800 crores of business through this channel. This is a direct business channel. We get leads through various sources, online and offline. Now these lines are funneled or aggregated together and pushed down the chain to our oper ating officers who then follow up on these leads and convert them into business. Last year we did Rs. 800 crores through this channel as we call it. This year we have already crossed Rs. 750 crores in H1 which augurs well for us. Target for this year is Rs. 2,000 crores through the lead channel. So, this is another channel which we had to nurture and we see a lot of potential and scope in this channel. It helps me also because it reduces my cost also because I don't have to pay commission to the agents. This is so cost neutral channel. So, that's one. And the other, we also have a subsidiary called LICHFL FSL, Financial Services Limited which is a subsidiary of LICHFL which was formed basically for doing sort of housing loan business and other businesses of general insurance, life insurance. It was more on the structure of HDB, the housing, HDFC sales channel. So, that is right now contributing to 10% of my business. We are strengthening their channel. We are after them. We are asking them to go in for further recruitments and increasing their marketing force. Here we are looking at getting 15% of our total business to come from this FSL and going forward in the next year, we want them to contribute at least 25% of our business. So, these are what we are doing.
So, again, just harping on this question of PLR. So, the last cut was in April, and thereafter we have seen reductions in terms of the repo, and we are seeing the incremental cost of borrowings also coming off like almost 16-odd basis points, maybe 20, 24 basis points this quarter itself. So, would we be revising the PLR, or maybe now we are good enough with the rewriting rates and new rewriting rates, and there is no need to change the PLR at this juncture because we want to protect the margins?
Yes, Kunal, yes. At the beginning of the year , I said this year is going to be a difficult year for us because we would be required to balance our growth of books, growth of disbursement with the NIMs and the spreads, right. So, this is what we had said in the beginning of the year and I had also said that push through the wall. I would prefer to protect my margins and NIMs rather than going for growth of business at which is not very profitable to the company. We have been doing that. Yes, we have cut our overall PLR by 25 basis points across the board. You may say this is less when compared to the 100 basis point cut in the repo rate. But then the repo rate transmission does take time. Yes, 24 basis points , incremental cost of borrowing has gone down by 24 basis points quarter-on-quarter and about 90 basis points from the beginning, from year -on-year. So, the full transmission has not been felt. Now going forward, as I said, we would like to protect our margins and while answering to Renish, I had said my construction finance portfolio is down this year, almost Rs. 900 crore deficit. But again, that is a conscious call we have taken. Banks are very aggressive on this front. They are giving construction finance loans almost at home loan rates, which we are not comfortable doing. We would like to have some margins in the project and the construction finance business. As CFO said, the margins in the CF business are almost what our yields are, almost 12%, 12.5%. These have gone up from almost 11% of last year. So, yes, we would like to do business, but definitely we would like to do profitable business. So, going forward, I do not, until and unless something drastic happens on the repo rate front in probably December or something of that sort, I do not see any scope for any further reduction in rates.
So, sir, just two questions. First thing is, I mean just a clarification in terms of this PLR changes that we have done total until now, right? Since the time the repo rate cuts have started, how much PLR cut have we taken? Is it 25 basis points or cumulatively 50 basis points? One 25 basis points effective from 1st April and the other one was 28 April thereabouts, is it? Just a clarification on that front.
Okay, Abhijit, let me. We have made only one. We had changed the PLR only once. That was in the month of April where we reduced the PLR by 25 basis points, right? There has been only one PLR cut of 25 basis points. Now what has happened is that my book is divided into two parts. There are about 1/3 of my loans, almost 500,000 loans, which are on monthly res et. So, 500,000 loans got the PLR reset from the 1st of May. The moment I declared my PLR cut, they immediately got repriced, 1/3 of my book. 2/3 of my book is on quarterly reset. That means the PLR reset happens on the first day of the next quarter. Since the cut was somewhere in the middle of April, the PLR got repriced from the 1st July. So, almost 1,000,000 loans got repriced from 1st July. Right now, 100% of my book has been repriced by 25 basis points.
And then if you could just share those segment-wise Stage-2?
For individual it is 1.15% only. For project, it is project plus Non-housing corporate, so it is 24.88%. Non-housing individuals are 4% only. And total it is 2.51% of the total portfolio.
So, my question was what is the incremental yield that you are seeing in the business? What is the incremental yield for the disbursements?
Incremental yield for th is first half, it is 8.78% and 8.78% incremental yield as on 30 th September '25.
Sir, just to close the argument on PLR front, now given the fact that a larger part of the book is priced at 8% levels, so these are the comfortable levels for you wherein you are confident that BT outs will be restricted and therefore no further PLR tweaks are required. So, i s my understanding correct?
Yes, we have repriced both our existing book as well as the rewriting rates. The existing book is repriced at 25 basis points and our rewriting rates, which were at a flat 8.75%, have been repriced to 50 basis points above the fresh lending rate. So, roughly around about 8%. I do not say that this will result in no BT out because again, BT out, see, if you see the biggest problems in BT out, when a loan goes out of my book, it enters the other institution as a fresh loan, and naturally the fresh loan rates are lower than the existing loan rates. So, for example, if I take supposing a loan goes out from my book to State Bank of India, the lending rates at State Bank start at 7.5% or probably he would be getting the loan repriced at probably 7.6% or 7.7%, whereas my repricing is at 8%. So, there could be some customers who would go out because of this 20 basis point difference or 25 basis point difference. But by and large, I think customers are not so, I would say, sticky on 20, 25 basis point difference if their experience has been good in the existing company. But I am pretty sure that this huge uptick in the BT out, doubling of the BT out if I may say, because as I said, the average run rate was Rs. 2,000 crores and in Q2 we witnessed a run rate of Rs. 4,000 crores. So, the doubling of the BT out will not happen. We expect this to come down to either the original levels of Rs. 2,000 crores or even further probably to Rs. 1,200-1,500 crores level.
The second question I had in terms of ECL. When is the annual reset exercise for us as far as ECL is concerned, and what is the period of consideration for us for those PD LGD calculations?
No, Shweta, PD and LGD is done on a quarterly basis , right? Every quarter we run the ECL model and our EPD and PD, LGD is calculated on a 10-year database. So, for example, if I take the September quarter, so September quarter 2025, that means the assessment of PD and LGD would be on business done from the 1st of October 2015 to the 30th of September 2025. So, every quarter, three months would go out and three new months would be added to calculate PD and LGD.
Most of my questions are answered, but just two things. First, on the borrowing side, this borrowing which you sourced in Q2 at 6.73%, can you tell us mix? And also can you tell us the fresh pricing for NCDs for bank loans and whether the whole repo benefit on the existing bank loans had already come through?
Yes, so, Rajiv, our borrowing structure is almost 55% is fixed, what we have raised through NCDs, and almost 45% is floating. So, whatever we have raised funds at floating rates mostly from the banks only and the total average borrowing cost is 7.42%. And this year, definitely we are focusing more borrowing through banks only. This quarter, almost 92% , 93% we have borrowed from banks.
But can you quote the fresh bank loan pricing? I mean, is it below 7? And how much is it for the new facilities that you would have taken from banks? And similarly, if you would also raise, say a 3-year, 39-month NCDs in the market right now, what will be the cost of NCDs?
Yes, so banks, this quarter we have borrowed from banks between 6.75% to 6.90%. In between 6.75% to 6.90% and NCDs we have raised around 6.89% to 6.90%.
And just one last thing. In terms of new home loan repricing, which I think we last reduced in June by 50 basis points, so given the fact that we want to preserve margins even at the cost of growth, if the competition were to become more aggressive in terms of new loan pricing, we should not follow competition. That seems to be the approach. Is that understanding right?
Yes, new loans , we brought it down by 50 basis points to be competitive with the rates being offered by the PSUs, which is at almost 7.5% , by and large. And we are also at 7.5%. So, that has already been done. Now, assuming the same scenario continues, I do not see any scope for any further reduction in the pricing for new loans. I think we are fairly, fairly competitive enough. I don't see any way we can afford to bring it down any further. Because as I said in the beginning of the year, we need to balance growth along with our spreads and margins. And given a choice, I would like to protect my spread and margins as compared to going aggressively for, I would say, non -profitable growth. So, we intend to follow that same trajectory. And I think as far as I am concerned, the new loan rates are where they are and we would like this to continue for the rest of the year until and unless there is something majorly happening, probably in the December MPC or nearby or somewhere near that.
I had two questions actually. Firstly, what would be the yield on the portfolio of home loans ? You gave the total portfolio yield of 9.24%, but the home loan yield for the portfolio? And also just wanted to understand how does this whole rewriting thing work. Someone who is looking for a balance transfer, you offer an 8% yield for them.
Yes, I will come to the rewriting part. As regards the sort of yields, CFO will answer it. Coming to the relating part of it, yes, over a period of time the loans would have been given at various rates of interest, and depending on the increase in PLR or lowering of PLR, the rates would have been reset either monthly or quarterly. And right now, the customer would be standing with a particular rate of interest . Whenever he comes to us for a rewriting request, we do assess his CIBIL score because rewriting rates are not flat 8%. They are dependent on the CIBIL score of the borrower as on date. So, we would be assessing the score and the other risk factors associated with the loan. And based on that, we would be giving him a rewriting rate at which we would rewrite his loan. Broadly speaking, the rewriting rate is at 50 basis points higher than the lending rate. Right now, lowest lending rate is 7.5%. So, add 50 basis points to that, so that comes to roughly 8%. It does not mean that everybody gets rewritten at 8%. It would also depend on the CIBIL score and other risk factors associated with it.
So, m y connected question was that , say, your overall housing portfolio is sitting at around 9.24% I understand that there will be various borrowers at different categories of CIBIL score, but this is still fairly well above your rewriting rate. So, don't you see a lot of these borrowers coming for reset or at least coming down to that 8% or whatever the rewriting rate? So, my question is whether this back book continues to reprice going forward even though you may not have another PLR cut?
Bhaskar, I do agree, yes, by reducing the rewriting rates. The question is do we expect all people to come to us for rewriting? No, that usually doesn't happen. That usually doesn't happen. If you take the experience of Q2, out of a book of 15 lakh loans, a total of 13,715 customers took a BT, right, transferred their loans from us to the banks. By and large, I would say the rewriting would happen for what, in a quarter, about Rs. 1,000 crores, Rs. 1,500 crores of business. So, it is not that my entire bank book is going to get repriced because of the rewriting facility which I offer. But yes, definitely people will be coming and going, and anybody who is probably at 8.5% or more than that would definitely want to reprice his loan at 8% or nearabouts.
Just one last question on the OPEX side, we saw a sharp decline in the employee cost. Any specific reason for that? And how should we think about sustainable employee cost, etc.? It was like Rs. 140 crores versus--
Bhaskar, last year was, let me call it a year of wage revision and IAC, right. The wage revision of all the employees in the company was due. So, we were making provisions all through last year. Every quarter, we were making provisions for this , what you can call it , the supposed increase in the salaries of the employees. So, now that the wage revision has been done, the salary cost is now fixed. There is not going to be any other. There is no impending wage revision until the 1st of August 2027. No provisioning for wage revision is being made. So, that is the reason why the salary cost has come down. I think the employee cost would remain at the current levels , I think Rs. 143 crore, at the most probably Rs. 150 crore, not more. There is nothing which is going to get added to employee cost, except probably in Q4 where we do make provisioning for gratuity. I think Q3 is going to be in the Rs. 150 crores range. Should not be Rs. 160 crores which what it was in Q1, probably be in the range of Rs. 150 crore. Nothing has been done which is going to increase my employee cost. No new hirings or anything of that sort.