We recently interacted with the management to get an understanding of the recent developments of the company post the liquidity crunch faced by the NBFCs. Key highlights were – incremental borrowings for the company have increased by 100-150 bps in Q3. Positively, it has simultaneously increased lending rates also by 100-150 bps to annul effects of rising borrowings cost. Hence, it is most likely would be able to observe stable to improving margin profile due to faster repricing of assets than borrowings. However, volumes of the business are 50% lower in Q3FY19 compared to last quarter as it is growing cautiously and prudently in the current tight liquidity scenario. Going forward, business growth is likely to return to normalcy in Q4. It has not observed any major setback on its asset quality – NPA levels have been maintained.