Srinivasan Vaidyanathan: That is the kind of a direction. If you think about it, it has got three components. One component has to do with the construction finance, which from a bank positioning and strategic — to strategically to feed into the retail, we want to grow this portfolio, right? We have the risk assessment framework. We want to grow within that framework that we have. The second component of the book is the LRD book, lease rental. That book is also a growth-oriented book and will be assessed and grown. The third component is the small component of a corporate loan book that will be assessed as part of the overall exposure to various corporates that we have and we will take a decision about what is the overall exposure. Yes, the direction what Sashi alluded to is on the construction finance and it equally applies to LRD too, but all of this in the context of overall exposure to corporates that we have.
Kunal Shah: Sure. Got that. And secondly, in terms of other income, was there any one-off maybe pertaining to IGAAP transitioning for HDFC? Or this is like now the overall fee income trajectory which we should see and there is no one-off in this line item now?
Srinivasan Vaidyanathan: So the fee income that you saw, which was INR6,900 crores and whatever — INR6,936 crores, yes, that is the normal level of fees. And if you look at how we have in the past seen the fee, which is 65% of the other income is the fees, right? And this fee line has got multiple from asset origination fees to liability product fees to payment transaction type fees to wholesale banking fees to third-party distribution fees. There are seasonalities up and down, it happens, because there are certain quarters where you see for various considerations, it could be tax considerations or for origination consideration, it goes up or down. But when you look at it over a period of time historically, this has been in the mid to high teens, right, that’s where the fee component has moved.
And that’s where I will tell you to look at it. If you look historically, that’s the range at which, right that — if this quarter if it was 19%-odd, again quarter-to-quarter there is seasonality, but when you look at a year, two years, in the past, it’s mid to high teens.
Operator: Thank you.
Kunal Shah: Just…
Operator: Kunal Shah, sorry to interrupt you. May I request you to join the queue again.
Kunal Shah: Yeah, sure.
Operator: Thank you. A request to all the participants, please restrict to two questions per participant. Next question is from the line of Parag Thakkar from Anvil Wealth. Please go ahead.
Parag Thakkar: Yeah. Hello. I’m audible?
Operator: Yes.
Srinivasan Vaidyanathan: Yes, Parag.
Parag Thakkar: Yes. So first of all I would like to congratulate the entire team for bringing up the deposit numbers to such a good number, above INR1 lakh crores. I think it requires a lot of efforts and you all did it brilliantly, especially in a quarter where it was a merger quarter and we had this one-time ICRR hit plus this liquidity hit. So, all-in-all, I am very, very happy with the performance. So first of all, I would like to congratulate you all. And second, when we say that 1.9% to 2.1% ROA is possible, the growth rate above 15% or 17%, 18% of the merged entity is also possible, right?
Srinivasan Vaidyanathan: Parag, firstly, thank you for the recognition and we appreciate. These are the things that keeps us charged and ensures that we drive to the best potential both market has to offer and the people here are capable of delivering. Thank you for those compliments. And now getting to the question that you asked in terms of the growth rate, see, more than thinking about the forward-looking growth rate, but growth rate is underpinned down on two things, right. One, market rate of growth. Typically, in their past, we have seen the market rate of growth anywhere from 10% to 12%. Depending on the year, you will see that the nominal rate of GDP times 1 or 1.1, 10% to 12% is what you will see. And what we have always endeavored and that is what historically we have delivered is a premium on, on that, right?
A 5%, 6% thereabouts, a premium on the market rate of growth is what we delivered. That is where the market share gains come from that additional growth rate over the market that we do. And so, now take this to what is the kind of a market share gain. If you see over a period of three — five years, if you see, it’s about 400 basis points or thereabouts market share gains. Either side of the balance sheet, that’s a similar type of market share gains. And when you gain that currently, if you look at the recent times, the share in the market share gains is faster than what it was five years ago, meaning, the larger distribution and the bigger the scale, the opportunity space for gaining more market share is available and that is what in the recent times that we have done.
So that’s — I want to leave the thought process there. This is how we think and that’s how we’re capacitized to drive.
