Highlights:

As per the company, the problem that company is facing is more metro centric, while rural area is more insulated. The harvest is expected to be good which will support farm cash flows, while the rural segment is expected to bounce back faster after lockdown is lifted. If the monsoon rainfall is normal in 2020, this would further boost rural segment recovery.

The collections of the company were normal till 19 March 2020, while the company expects the collections to return to normal in next 3 to 6 months.

The disbursements are expected to be weak in next three month leading to stable loan book. The company is proposing to relook at its business model completely.

The company would revisit its cost of operations and re-look at its fixed and variable cost. it would look for the renegotiation in rent of business offices as well as services providers. The company aims to reduce cost to asset ratio to 2% from existing 3%. The productivity improvement drive is the top priority of the company.

Among the major costs, three important costs relate to dealer commission, employee cost and branch expenses. The collections are expected to shift more towards the digital. The company is setting up a service centre instead of regional offices. The company would reduce 85 regional offices to 4 - 5 service centres. There will be a freeze on adding new employees.

The company proposes to offer the moratorium to all their retail customers between 0, 1 and 2 buckets and not to those who are already delinquent.

As per the company, it would discharge current high cost liability and get into a new liability stream at lower cost. On the margin front, the company does not expect much impact due to the stable cost of funds.

The company has sufficient liquidity to meet its interest payment liability as well as fixed cost for next 6 months.

The company currently has Rs 4000 crore of liquid investment pool and Rupees 1500 crore of lines available from multiple sources and it is talking to various banks for bonds placements or LTRO.

The company is requesting the RBI to give direction to banks that they should protect all NBFCs and not only some big NBFCs.

The company expects the gross NPA to move up by at least 200 bps from the existing levels.