Axis Bank Ltd — Q4 FY26

Axis Bank Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=CK7dhrI1lCU Published: 2 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Access Bank conference call to discuss the bank's financial 0:08 8 seconds results for the quarter ended as on 31st March 2026. 0:12 12 seconds Participation in the conference call is by invitation only. Access Bank reserves the right to block access to any person to whom an invitation has not been sent. 0:22 22 seconds Unauthorized dissemination of the contents of the proceeding of the call is strictly prohibited and prior explicit permission and written approval of access bank is imperative. 0:32 32 seconds As a reminder, all participant lines will be in the listenon mode. There will be an opportunity for you to ask questions at the end of the briefing 0:40 40 seconds session. Should you need assistance during the conference call, please signal the operator by pressing star and then zero on your touchdown phone. 0:48 48 seconds Please note that this conference is being recorded. On behalf of Access Bank, I once again welcome all the participants to the conference call. I now hand the conference over to Mr. 0:58 58 seconds Amitab Chadri, MD and CEO. Thank you and over to you sir. Thank you Sar. 1:06 1 minute, 6 seconds We welcome you all to a discussion on access bank's financial results for the quarter and financial year ended March 2026. We have on the call apart from 1:15 1 minute, 15 seconds Punit our executive director Subra Mahi, Manish Shada, Mir Gambin and other members of the leadership team. 1:22 1 minute, 22 seconds Financial year 2026 unfolded against a complex and uncertain global macroeconomic backdrop elevated geopolitical tensions including tariff 1:30 1 minute, 30 seconds issues and lately the West Asia conflict continue to disrupt global supply chains, influence capital flows and add 1:37 1 minute, 37 seconds volatility to markets worldwide. Indian economy has shown resilience amid this uncertainty so far. In this environment, 1:45 1 minute, 45 seconds Access Bank remained firmly focused on disciplined execution, balancing growth with watchfulness while continuing to build momentum in our chosen areas of 1:53 1 minute, 53 seconds focus. We made strong progress this quarter in building a resilient all with a franchise, strengthening our balance sheet, focusing on our customers, 2:01 2 minutes, 1 second improving efficiency, and increasing activity intensity across the franchise without diluting the standards. 2:09 2 minutes, 9 seconds Please refer to slide three for more details on the house of GPS. Now let me talk briefly about the progress we have made on each pillar of our GPS strategy. 2:17 2 minutes, 17 seconds Starting with growth, we sustained the momentum from the previous quarter with strong all round growth across segments. 2:23 2 minutes, 23 seconds Our total advances grew 6% quarteron quarter and 19% yearonear within which wholesale grew 38% SM 24 and retail 8% 2:32 2 minutes, 32 seconds on year-on-year basis. Wholesale banking has evolved from a balance sheetentric model to an ecosystemled approach driving diversified high-quality growth 2:40 2 minutes, 40 seconds in relatively strong cycle segments. We have deepened relationships that enhance our share wallet, improved risk visibility and deliver the planned 2:48 2 minutes, 48 seconds rarok. Our SMB franchise continues to grow strongly. We have built a diversified Gandal portfolio and have improved our yields through datadriven 2:56 2 minutes, 56 seconds credit decisions, simplified products and digitized operations. In retail, our dispersement growth remains strong and 3:03 3 minutes, 3 seconds risk calibrated centered on credit tested customers, strengthened underwriting discipline and balance scaling across proprietary and 3:11 3 minutes, 11 seconds partnerled distribution channels. Moving on to the deposits, we continue to deliver faster than the industry growth in medium to long-term. Yearon year on 3:19 3 minutes, 19 seconds ME and QV basis, total deposits grew 14% and 13%. Term deposits grew 16 and 15. 3:25 3 minutes, 25 seconds CA grew 11 and 10 and SA grew 11 and 10 respectively. Quarter on quarter and MB and QB basis total deposits grew six and 3:32 3 minutes, 32 seconds two term deposits grew five and three CA 7 and three and SA grew 7 and 2% respectively. Total CA deposits 3:41 3 minutes, 41 seconds increased by 7% quarteron quarter on basis resulting in 48 basis points improvement in CASA ratio. Our cost of 3:49 3 minutes, 49 seconds deposit has declined by 46 basis points here and here and four basis points quarter on quarter underscoring the strength of our funding strategy and 3:57 3 minutes, 57 seconds disciplined execution. There is ongoing work on improving the deposit quality through deeper granularization with an emphasis on building more stable 4:05 4 minutes, 5 seconds liabilities mix to enhance resilience across cycles. Our new to bank franchise continues to scale with a sustained 4:12 4 minutes, 12 seconds improvement in quality. Newly acquired customers are maintaining meaningfully higher average balances with NTP average 4:20 4 minutes, 20 seconds balances of 53% yearonear reflecting the continued impact of premium le sourcing and tighter conversion discipline. NTB 4:27 4 minutes, 27 seconds product per customer has improved by 24% yearon year due to better quality acquisitions. Our existing to bank engine has continued to strengthen with 4:35 4 minutes, 35 seconds our EGB salary book growing 18% year-on-year underscoring steady improvement in corporate salary segment with high volume share and customer 4:43 4 minutes, 43 seconds lifetime value. Burgundy continues to be our driver of premiumization with assets under management up 14% yearon year. The 4:50 4 minutes, 50 seconds strength and consistency of our proposition was reaffirmed with Burgundy Private being named India's best for nextgen at the Euromoney Global Private 4:58 4 minutes, 58 seconds Banking Awards 2025 for the third year in a row. On profitability, we focused on structurally improving the quality of 5:05 5 minutes, 5 seconds earnings through consistent and sustainable delivery supported by ongoing improvements and operating efficiency. 5:12 5 minutes, 12 seconds Our cost to assets declined to 2.28% down 18 basis points year on year through improvement in operational productivity. While we added 400 branches during the year, our total 5:20 5 minutes, 20 seconds workforce declined by 3% year on year driven by technology-led efficiency gains at both employee and branch levels. Our consolidated quarter 4 5:28 5 minutes, 28 seconds financial year 26 ROA was 1.64% and ROE was 15.15%. 5:36 5 minutes, 36 seconds On sustainability, we stay focused on quality balance sheet resilience, building future ready technology platforms and investing in people and 5:44 5 minutes, 44 seconds capabilities to deliver sustainable outcomes at scale. Our GPA was at 1.23% declining 17 basis points quarter on 5:53 5 minutes, 53 seconds quarter and five basis points year on year. While the net credit cost was at 6:00 6 minutes 37% down 13 basis points year on year and 39 basis points quarter on quarter. 6:05 6 minutes, 5 seconds I want to specifically highlight the strong progress on AI initiatives across access bank. Please refer to slides 5 to 7 for more on this. Through AXM our 6:14 6 minutes, 14 seconds bspoke AI operating model we are building [clears throat] an AIE customercentric bank that's transforming the customer touch points employee productivity and core process at 6:23 6 minutes, 23 seconds enterprise scale. We are the only ISO 4201 certified BFSA BSI organization 6:32 6 minutes, 32 seconds globally. I repeat globally. ISO 4201 is the first international standard providing guidelines for an artificial 6:40 6 minutes, 40 seconds intelligence management system. We also received the award for best JNI use case in retail banking as a retail banker 6:47 6 minutes, 47 seconds international asia trailbaser awards 2026. We have a road map for scale up and we expect AI to drive meaningful 6:56 6 minutes, 56 seconds bottomline impact over the next 18 to 24 months. Our focus remains on embedding AI responsibly, securely and in a way 7:05 7 minutes, 5 seconds that supports sustainable growth. Our people first approach has been consistently recognized externally. 7:11 7 minutes, 11 seconds During the year, Access Bank was certified by the top employers institute, the only Indian private sector bank on the list and included in 7:18 7 minutes, 18 seconds the time best companies Asia-Pacific list for the second consecutive year. We were also recognized as one of the India's iconic workplaces by HD Mint and 7:27 7 minutes, 27 seconds Deoid, featured among the best places to work by the Hindu and Workl and received the ATD best awards for fostering a 7:34 7 minutes, 34 seconds strategically driven talent management culture. Underpinning all of this is our unwavering focus on customers. Through 7:41 7 minutes, 41 seconds our customer obsession initiat, we are strengthening experience outcomes and simplifying interactions through 7:48 7 minutes, 48 seconds digitization. Our retail bank NPS has improved significantly since it inception and we've retained the second rank in the Cander Retail Bank survey 7:56 7 minutes, 56 seconds for third consecutive year. Our leadership in customer experience and analytics has also been recognized at the annual BFSI service quality 8:03 8 minutes, 3 seconds excellence India summit 2026 where access bank won the CX data analytics excellence award and best omni channel 8:10 8 minutes, 10 seconds experience strategy. We had strong business momentum in quarter 4 as a bank with clear intent the right talent and a 8:17 8 minutes, 17 seconds strong culture. This positions us well to assert our right to win and to gain more than our fair share across businesses. In an environment marked by 8:26 8 minutes, 26 seconds uncertainty and volatility, our conservativism is a strategic advantage. 8:31 8 minutes, 31 seconds The choices we made during the year have strengthened our foundation and enhanced our resilience. As we step into financial year 27, we are watchful of 8:40 8 minutes, 40 seconds the ongoing uncertaintities. However, we stay confident in our ability to grow in a disciplined and calibrated manner faster than the industry. With that, 8:49 8 minutes, 49 seconds I'll now hand over to police. Uh, thank you, Amitab. Good evening and thank you for joining us. Before we start 8:56 8 minutes, 56 seconds discussing the financial performance for Q4 FI26 and financial year 26, I'd like to clarify two items. 9:03 9 minutes, 3 seconds Accounting for the tax item. In financial year 2223, the bank acquired 9:10 9 minutes, 10 seconds City Bank India consumer finance business from City Bank NA and the NDSC 9:18 9 minutes, 18 seconds consumer business from CIFIL collectively called the City India consumer business on a going concern basis in accordance with an independent 9:26 9 minutes, 26 seconds values report. Intangibles excluding goodwill amounting to 8,714.24 crores were recognized in the bank's 9:35 9 minutes, 35 seconds financial statements. Despite retaining access to and business use of these assets as a prudent measure aimed at 9:43 9 minutes, 43 seconds protecting our capacity to pay dividends, the bank opted to fully amortize these intangibles through the profit and loss account in FI2223. 9:53 9 minutes, 53 seconds Further, the bank elected not to create a deferred tax asset in 2223 on such intangibles. Nor did the bank consider 10:01 10 minutes, 1 second the deductibility of said intangibles while providing for current tax in the books until the regular assessment for the said financial year was completed. 10:11 10 minutes, 11 seconds During the quarter and year ended 31st March 2026 following the conclusion of regular assessment proceedings by the by 10:19 10 minutes, 19 seconds the income tax authorities. Tax depreciation on these intangibles was allowed. As a result, the tax expense 10:27 10 minutes, 27 seconds for Q4 FI26 and fully year FI26 is lower by 2,193.2 crores, which includes reversal of 10:36 10 minutes, 36 seconds excess tax provisions made in prior years amounting to 1,129.8 crores. A reduction in current year's 10:43 10 minutes, 43 seconds tax expense by 265.85 85 crores and recognition of a deferred tax asset of 797.55 10:51 10 minutes, 51 seconds crores. This has resulted in the effective tax rate for FI26 uh to become 17.25%. 11:01 11 minutes, 1 second The next item voluntary enhancement of the bank's provisioning framework for standard assets. During Q4 of FI26, the 11:10 11 minutes, 10 seconds bank proactively strengthened its balance sheet by voluntarily enhancing its prudent provisioning framework for standard assets in line with our 11:18 11 minutes, 18 seconds conservative risk management philosophy based on an assessment of evolving unpredictable macroeconomic and geopolitical uncertainties. The bank 11:26 11 minutes, 26 seconds created an additional one-time provision of 2001 crores during the quarter. This approach is aligned to our practice to enhance resilience of our balance sheet 11:34 11 minutes, 34 seconds during periods of elevated uncertainty while maintaining transparency and discipline in risk governance. This action is prudent and precautionary. I 11:43 11 minutes, 43 seconds repeat, this action is prudent and precautionary in nature and does not reflect any deterioration in asset quality or adverse credit trends in the 11:51 11 minutes, 51 seconds bank's loan or investment portfolio. As of reporting date, our core asset quality metrics remain stable and within 11:58 11 minutes, 58 seconds our risk guard rails. The creation, utilization, and potential reversal of this provision is governed by a board 12:05 12 minutes, 5 seconds approved framework and is calibrated using internal stress testing by the risk function under severe but plausible 12:12 12 minutes, 12 seconds downside scenarios. Based on our current assessment, this provision is considered sufficient to absorb potential incremental provisioning charge to the 12:21 12 minutes, 21 seconds P&L even in the most adverse stress scenario modeled for FI27. 12:27 12 minutes, 27 seconds To provide some context, the adverse stress scenario assumes average oil at over US dollar 150 for 12 months, 12:35 12 minutes, 35 seconds inflation spiking to 7.4% and the currency depreciating approximately 20% over current levels amongst multiple 12:44 12 minutes, 44 seconds other variables that have gone into the model between the two one-time items above and trading loss in the quarter due to the year-end rate movements 12:53 12 minutes, 53 seconds driven by extraneous factors. The net impact on the P&L of all the three variables combined is net neutral. 13:01 13 minutes, 1 second Moving to the salient features of the financial performance of the bank for FI26 and Q4 FI26 across operating performance, capital and liquidity 13:09 13 minutes, 9 seconds position, growth across our deposit and loan franchise, asset quality restructuring and provisioning. For FI26, our operating performance was 13:18 13 minutes, 18 seconds stable with net interest income fee and operating expense lines. 13:24 13 minutes, 24 seconds Net interest income at 56,048 crores grew 3% year-on-year. Net interest margin 3.69% declined 29 basis 13:33 13 minutes, 33 seconds points Y after factoring 125 basis points passed through of the repo rate cut. Fee at 24,444 13:40 13 minutes, 40 seconds crores grew 9% year-on-year. Operating expenses at 39,362 crores grew 5% Y in line with our core 13:48 13 minutes, 48 seconds revenue growth after absorption of the rate cut. And despite lower trading income due to year-end volatility, cost 13:55 13 minutes, 55 seconds to assets at 2.28% declined 18 bips yearonear. Core operating profit at 41,443 14:03 14 minutes, 3 seconds curves grew 4% yearonear. Standard asset coverage ratio at 1.26% increased 11 14:09 14 minutes, 9 seconds basis points Y. All provisions by GNPA ratio at 166% increased 900 basis points 14:17 14 minutes, 17 seconds Y. Consolidated ROE at 1.46% 46% consolidated ROE at 13.59%. 14:24 14 minutes, 24 seconds Moving to the key metrics for Q4 FI26 PAT at 7,71 crores Q growth of 9% flat 14:33 14 minutes, 33 seconds yearon year deposits and advances grew 14% and 9% respect 19% respectively. Qoq deposits growth of 6% and advances growth of 6%. 14:45 14 minutes, 45 seconds Net interest income at 14,457 crores Y and Q growth of 5% and 1% respectively. The NIM for the quarter 14:54 14 minutes, 54 seconds was 3.62 62 fee at 6561 crores Yi growth of 4% Q growth of 8% 15:04 15 minutes, 4 seconds granular fee at 92% of total fee expenses at 10,466 15:10 15 minutes, 10 seconds crores Yi growth of 6% Qoq growth of 9% adjusted for employee related provisions in the current quarter due to year-end 15:19 15 minutes, 19 seconds rate movements and variable pay right back in the previous quarter the YI growth was 5% % and the QQ growth was 15:26 15 minutes, 26 seconds 4%. Cost to assets at 2.28% declined 18 basis points Y and five bits Q. 15:34 15 minutes, 34 seconds Operating core operating profit at 10,619 crores largely flat Q and Y. Net 15:41 15 minutes, 41 seconds credit cost at 37 basis points down 13 basis points YI and 39 basis points Q. 15:49 15 minutes, 49 seconds Net credit costs excluding technical impact at 28 basis points down 22 basis 15:55 15 minutes, 55 seconds points YI and 35 basis points Q G&P at 1.23% declined 17 bibs Q 5 bits Y net NP 16:04 16 minutes, 4 seconds at 0.37% declined 5 bibs Q PCR at 70% flat Q consolidated ROE at 1.64% 64% 16:14 16 minutes, 14 seconds improved 7 basis points QQ consolidated ROE at 15.15% improved 100 basis points 16:21 16 minutes, 21 seconds Q subsidies contribute six basis points to consolidated ROA and 41 basis points to consolidated annualized ROE for the 16:29 16 minutes, 29 seconds quarter the bank C1 includes including profits for FI26 stands at 14.38% 16:37 16 minutes, 37 seconds we have net consumed 12 basis points of capital in the quarter for growth the bank has provisions aggregating 8,244 16:45 16 minutes, 45 seconds crores including the standard asset provision created earlier in Q2 pursuant to the RPI guidance. These standard 16:52 16 minutes, 52 seconds asset provisions have not been reckoned for regulatory capital computation. 16:59 16 minutes, 59 seconds Consequently, this represents an additional buffer over and above reported capital ratios translating into an incremental capital of 53 basis 17:07 17 minutes, 7 seconds points. This further reinforces the bank's balance sheet strength and enhances its ability to navigate uncertainty while continuing to support 17:15 17 minutes, 15 seconds growth and shareholder value. We reiterate we do not need equity capital for either of our pillars. Our pillars 17:23 17 minutes, 23 seconds are growth and protection. The resolution we have taken today is only an enabling resolution consistent with 17:30 17 minutes, 30 seconds our practices for the prior year. We may opportunistically evaluate issuing tier 2 and 81 instruments based on market conditions. 17:40 17 minutes, 40 seconds Yields on interest earning assets declined five bits QQ. Cost of funds were largely flat Q. The bank maintains it through cycle stance of names at 380 17:49 17 minutes, 49 seconds cycle measured in terms of duration starting from the last date last rate cut transmission date. 17:56 17 minutes, 56 seconds We'll discuss the progress on structural name drivers. Improvement in balance sheet mix. Loans and investments comprised 89% of total assets at March 18:05 18 minutes, 5 seconds 26. Retail and commercial banking advances comprised 67% of advances at March 26, declining 471 basis points 18:14 18 minutes, 14 seconds yearon year. This is an outcome of the bank's conscious strategy to optimize for NI in the short term. It's important to note retail dispersements have grown 18:22 18 minutes, 22 seconds 24% year-onear and 19% Q1Q. This gives us comfort that we'll be able to rebalance the portfolio proportionality over our planning horizon. 18:32 18 minutes, 32 seconds Low yielding RIFF bonds declined by 5761 crores year on year. RIFF comprised 18:38 18 minutes, 38 seconds 0.46% of our total assets at March 26 compared to 0.9% of our assets at March 18:45 18 minutes, 45 seconds 25. Quality of our liabilities in March 26 measured by outflow rates stood at 28.8%. 18:52 18 minutes, 52 seconds We continue to remain focused on this variable. 18:56 18 minutes, 56 seconds QAB CASA at 37%. We've seen an improvement of 39 basis points on CASA pricing from FI26 19:04 19 minutes, 4 seconds compared to FI23. The impact of marginal YI decline in QB CASA was offset by the rate benefit across parts of the 19:11 19 minutes, 11 seconds liability stack. The cost of deposits declined 46 bips y and four bips q. 19:18 19 minutes, 18 seconds Our fee income grew 4% year-on-year and 6% Q1Q. Total retail fee grew 2% year-on-year, 11% Q, supported by the 19:26 19 minutes, 26 seconds small business banking, small enterprises group, liabilities and cards businesses. The wholesale fee grew 8% 19:34 19 minutes, 34 seconds yearon year. Our wholesale banking coverage group's fees grew 14% yearonear. 19:40 19 minutes, 40 seconds uh medium enterprises group fee grew 14% year-on-year. Our transaction banking fee grew 5% year-on-year. 19:48 19 minutes, 48 seconds Trading profit and miscellaneous income at negative 538 crores declined QQ and buy mainly due to MTM losses on 19:56 19 minutes, 56 seconds investments in government securities, bonds, debentures, shares etc. 20:01 20 minutes, 1 second Operating expenses for the quarter stood at 10,466 crores, growing 6% year-on-year and 9% Qoq. Adjusted for the one-time items, 20:10 20 minutes, 10 seconds aggregating to 48 crores, the core growth was 4%. 20:14 20 minutes, 14 seconds Onetime items comprise increase in staff cost attributable to provisioning for employee benefits of 126 crores in the 20:22 20 minutes, 22 seconds current quarter and onetime reversal of acrruals of staff expenses no longer payable required to be paid in 20:30 20 minutes, 30 seconds the previous quarter aggregating to 282 crores. The YI increase in operating expenses is 629 crores. 20:39 20 minutes, 39 seconds 36% of the increase is attributable to technology spends. 33% is volume linked expense growth while the balance is BEu 20:46 20 minutes, 46 seconds expense partly offset by statutory cost reduction. The QE increase in operating expenses is 830 crores. Of this 48 20:56 20 minutes, 56 seconds crores is due to one-time items and staff cost. Operating expenses other than staff were up 7% QoQ largely driven 21:05 21 minutes, 5 seconds by BAU volume linked expenses offset by PSLC cost reduction. Technology and digital spends grew 14% year-onear and 21:13 21 minutes, 13 seconds constituted 10% of [clears throat] our total operating expenses. We opened 166 branches in the quarter and 400 new branches in FI26. 21:25 21 minutes, 25 seconds We are PSL compliant at a headline level and at each subsegment level. Net credit cost for the quarter was 1,146 21:34 21 minutes, 34 seconds crores. Annualized cost 37 bips declining 13 bips y 39 bips q 21:43 21 minutes, 43 seconds the cumulative non-npa provisions at 31st March 2026 is 15,473 crores comprising prudent provisions for 21:51 21 minutes, 51 seconds standard assets 713 crores restructuring provisions of 197 crores standard asset provisions higher than regulatory rates 21:59 21 minutes, 59 seconds of 1,733 crores and additional onetime standard asset provision of 1231 crores and weak 22:07 22 minutes, 7 seconds and other pro weak and other asset provisions of 5,299 crores. 22:13 22 minutes, 13 seconds Moving to growth across our liability and loan franchise, Amitab's already discussed the growth in loans and deposits. We gain 20 basis points of 22:20 22 minutes, 20 seconds market share on our loan franchise and maintain stable market share on a YI basis on our deposit franchise. Our loan 22:28 22 minutes, 28 seconds growth is granular, well balanced with retail advances constituting 55% of our overall advances, corporate at 33 and our commercial banking group at 12. 22:38 22 minutes, 38 seconds Please refer slides 22 and 23 for details around the quality of our liability franchise and slides on our 22:45 22 minutes, 45 seconds known franchise. 73% of our loans are floating rate. 48% of our fixed rate book matures in 12 months. Break up of 22:53 22 minutes, 53 seconds the floating rate book by benchmark type and MCL repricing frequencies set out on slide 14 of our investor presentation. 23:01 23 minutes, 1 second In Q4 FI26, retail dispersements grew 24% year-onear and 19% QQ. Dispersement growth in home loans was 28% YI, 15% Q. 23:13 23 minutes, 13 seconds Vehicle loans was 25% YI, 10% Q. Retail agree was 34% YI, 19% Q. Personal loan growth was 22% Y 9% QQ. 23:25 23 minutes, 25 seconds Moving to the performance of our subsidiaries. Detailed performance of our subsidiaries is set out on slides 55 to 62 of the investor presentation. In 23:34 23 minutes, 34 seconds FI26, the domestic subsidiaries reported a net profit of 251 crores, growing 16% yearonear. 23:41 23 minutes, 41 seconds The QQ PAT growth is 9%. The return on investment in domestic subsidiaries was 54%. 23:51 23 minutes, 51 seconds Access Finance overall assets under finance grew 22% year-onear of which share of retail plus MSNe at 57% of 24:00 24 minutes total book versus 54% last year FI26 pack grew 19% yearonear to rupees 86 24:09 24 minutes, 9 seconds crores strong asset quality with a net NPA of 0.36% and negligible restructuring provisions made in the quarter to comply with upper 24:17 24 minutes, 17 seconds layer regulations is 48 crores Access AMC quarterly overall quarterly average 24:24 24 minutes, 24 seconds AUM grew 12% yearonear to 3,00 3 lakhs 59,601 cr FI26 patch to debt 596 crores growing 24:34 24 minutes, 34 seconds 19% year-onear access securities patch to debt 366 crores access capital patch 24:41 24 minutes, 41 seconds grew 61% yearonear to 259 crores moving to asset quality provisioning and restructuring 24:49 24 minutes, 49 seconds The slippage GNPA NNPA PCR ratios for the bank and segmentally for retail CBG and corporate are set out on slide 47 of 24:56 24 minutes, 56 seconds our presentation. Gross slippages for the quarter were 4,79 crores of which retail was 4098 crores. Commercial 25:03 25 minutes, 3 seconds banking 297 and our wholesale banking coverage group at 314. Our gross slippage ratio for the quarter declined 25:11 25 minutes, 11 seconds sequentially 48 bips and 27 bips year on year. uh gross slippage ratio excluding technical impact declined 31 bits 25:21 25 minutes, 21 seconds uh year on year 31 bits quarter on quarter and 70 bips year on year for the quarter 35% of gross slippages are 25:30 25 minutes, 30 seconds attributed attributed to linked accounts of borrowers which were standard when classified or have been upgraded in the 25:37 25 minutes, 37 seconds same quarter. Net slippages for the quarter were 2013 crores. Net slippage is segmentally were 1,78 crores retail, 25:44 25 minutes, 44 seconds 164 for commercial banking and 141 crores for our wholesale banking coverage team. Net slippage ratio for 25:52 25 minutes, 52 seconds the quarter declined 11 bits y 41 bips QQ. Net slippages ratio for the quarter excluding technical impacts declined 18 26:00 26 minutes bits Q declined 18 bits YI and 32 bits Q. 26:07 26 minutes, 7 seconds Recoveries from written off accounts was 1,197 crores up 28% yearonear. 26:14 26 minutes, 14 seconds Net slippages for the quarter adjusted for recoveries from written off pool was 815 crores. Segmentally retail at,041, 26:22 26 minutes, 22 seconds CBG at 93, wholesale banking coverage at a negative 319 crores. Please see slides 26:30 26 minutes, 30 seconds 48,71 and 72 for quantification of technical impact across segments. 26:36 26 minutes, 36 seconds Technical impact has lost its reporting relevance as it will be in the base period for next quarter's reporting. 26:42 26 minutes, 42 seconds Further, the net slippages are down to negligible levels. Hence, we will discontinue this disclosure from Q1 FI27. 26:50 26 minutes, 50 seconds In summary, Access Bank continues to make progress towards building a stronger, more sustainable franchise. We remain vigilant on monitoring macro 26:59 26 minutes, 59 seconds geopolitical environment, inflation, liquidity, and our cost of funds along with their impact on our business. Thank 27:06 27 minutes, 6 seconds you for your patience. This concludes our opening remarks. We'd be happy to take your questions. 27:12 27 minutes, 12 seconds Thank you very much. We will now begin with the question and answer session. 27:17 27 minutes, 17 seconds Anyone who wishes to ask a question may press star and then one on their touchstone phone. 27:23 27 minutes, 23 seconds An operator will take your name and announce your turn in the question queue. Participants are requested to use only handsets while asking a question. 27:34 27 minutes, 34 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 27:48 27 minutes, 48 seconds Your first question. 27:51 27 minutes, 51 seconds The first question comes from the line of Chinten from Autonomous. Please go ahead. 27:57 27 minutes, 57 seconds Uh hi uh good evening. Uh thank you for taking my question. Uh uh can I start with NI and NIMS. Uh uh you know could 28:05 28 minutes, 5 seconds you remind us if there is any day count convention benefit in your NIMS? Uh secondly if uh the full 25 bits uh rate 28:14 28 minutes, 14 seconds cut uh from December has been passed on your EBLR book. And thirdly, if there's any residual TD repricing left on your 28:22 28 minutes, 22 seconds book, that's the question on NIM. And uh then I've got a question on the corporate growth. Uh you know, at 34% 28:29 28 minutes, 29 seconds yearon year, you're growing your corporate book meaningfully faster than your peers. What opportunity do you see 28:36 28 minutes, 36 seconds that others may not be seeing? And also uh you know uh uh could you kind of show 28:43 28 minutes, 43 seconds us in your uh you know the numbers or qualitatively how this has benefited your ROA or is that uh still left uh in 28:52 28 minutes, 52 seconds the future because I know it's limb dilutive but it may not be ROA dilutive just want to understand how do we observe that improvement of metrics uh 29:01 29 minutes, 1 second how do we go about analyzing that bit of growth thank you for your questions. Uh I'd 29:10 29 minutes, 10 seconds probably have to respond in parts. Uh so the first part of your question on have we transmitted 29:17 29 minutes, 17 seconds uh the 25 basis points repo rate cut last quarter on our entire loan book. I would request you to look at slide 14 of 29:25 29 minutes, 25 seconds our investor presentation. The repo linked book is 61%. So that would have gotten repriced and the full repricing 29:34 29 minutes, 34 seconds effect uh would be in the yields for the current quarter because just to recolct and remind you we transfer repo rate 29:43 29 minutes, 43 seconds pricing at the end of the quarter in which the rate cut was announced. So this quarter has full impact of repo rate cut on the 61% of the loan book. On 29:52 29 minutes, 52 seconds the same slide we've given you tenner wise breakup on MCLR and other EBLR. So those will repric as for the teners 30:00 30 minutes we've set out there. I I hope that covers the first question. The second question on 30:08 30 minutes, 8 seconds the growth and how is it benefiting us on the corporate side. I'll request Vijay to come in on where he's seeing 30:15 30 minutes, 15 seconds growth. But I just want to make sure we reassure you. We monitor all of our businesses on risk adjusted return on 30:24 30 minutes, 24 seconds capital. There has been no dilution in riskadjusted return on capital in the current fiscal compared to what we reported last fiscal for this segment. 30:34 30 minutes, 34 seconds There has been no dilution in risk standards. 91% of this book is rated A minus and above both on stock and flow 30:42 30 minutes, 42 seconds roughly follow the same pattern. So we've not gone down the credit. 30:48 30 minutes, 48 seconds Uh I'll pause there. I'll request Vijaya to come in on growth. 30:53 30 minutes, 53 seconds Just quickly on the NL before we go to Vijay uh is there a day count convention benefit in your NIS if you can remind us 31:01 31 minutes, 1 second on that and any TD residual TD repricing left. 31:05 31 minutes, 5 seconds Uh Chintan there is no day count representation we we simply follow number of days in the quarter annualized 31:13 31 minutes, 13 seconds for days in a year. So we have no artificial daycount convention management as part of our reported 31:21 31 minutes, 21 seconds names. So the number of days a quarter has that is what will you get annualized. The government securities 31:27 31 minutes, 27 seconds book follows a a 30 by 360 methodology that is market standard. We follow that 31:34 31 minutes, 34 seconds for the GC book. So we have no further comment to add on day count convention. 31:40 31 minutes, 40 seconds It is we have consistently reported we have not changed our methodology on margin computation and residual TV pricing. 31:53 31 minutes, 53 seconds since then and we don't provide the data on residual TD repricing in percentage terms but uh we do have some legs left 32:00 32 minutes on that lever as we move forward that is helpful thank you thank you and 32:08 32 minutes, 8 seconds hi uh Chandan see um on the wholesale side our playbook remains unchanged we selectively grow and uh we are not 32:17 32 minutes, 17 seconds chasing growth here we invest in sectors with the strongest cycles and clear micro tailwinds. 32:23 32 minutes, 23 seconds Incrementally growth was seen in power largely renewables, commercial real estate, data centers, NBSC uh largely again PSLdriven and manufacturing. 32:37 32 minutes, 37 seconds Again as Punit reiterated, I should also add to that that uh growth uh remains quality. We our both rising filters and 32:47 32 minutes, 47 seconds rarov discipline is uh is maintained even as we are growing and of course we use uh the opportunity of um balance 32:55 32 minutes, 55 seconds sheet to ensure that we're getting reciprocal uh transaction flows um leading to fee expansion and float 33:02 33 minutes, 2 seconds expansion and obviously driving on access outcomes uh which includes corporate salary um uh access capital trusteeship etc. 33:15 33 minutes, 15 seconds Thank you. Thank you. 33:19 33 minutes, 19 seconds Thank you. Your next question comes from the line of Rkin Sha from IFL Capital. Please go ahead. 33:26 33 minutes, 26 seconds Hi, good evening. Um, I had three questions. The first one is uh you know the strategy of NI maximization has 33:33 33 minutes, 33 seconds translated into growth acceleration but with the sharp rise in the wholesale deposit rates that we have seen do you think it warrants a focus moving back to 33:42 33 minutes, 42 seconds margins just trying to understand when do we reach to this 3.8 8 through the cycle NIM guidance that we have earlier provided. So that's the first one. I'll come back with two questions after this. 33:55 33 minutes, 55 seconds I just sort of reiterate that you know obviously we are trying to ensure that we maximize the value for the 34:01 34 minutes, 1 second institution looking at minim growth uh and obviously the risk profile of what we are trying to do on the asset side. 34:09 34 minutes, 9 seconds uh we will continue to optimize them as we move forward depending on their policies the risk that we see uh and you know as we you know as all of us are 34:17 34 minutes, 17 seconds aware what's happening with estatia u so you might see in some quarters growth uh uh you know which is more than what kind 34:25 34 minutes, 25 seconds of we are guiding in the medium term but we have always maintained that from a product mix perspective we expect u 7030 34:33 34 minutes, 33 seconds 70% is what is retail and theme kind of business and 30% is wholesale plus minus 3% and 4% here and there and 34:42 34 minutes, 42 seconds that's what we expect to maintain. So and we have not shifted away from our stands that we expect to deliver 3.8% 34:50 34 minutes, 50 seconds then through the cycle. We working to a bit I mean obviously it's a it's a target not easy to uh pin down on 34:57 34 minutes, 57 seconds because the interest rates continue to behave in a manner in a shape which is very difficult to predict. Uh given all of that we are optimizing everything. 35:07 35 minutes, 7 seconds Fair [clears throat] enough ama but any comment on when do we think this we can achieve this 3.8% state person is it like uh any time frame that we would 35:14 35 minutes, 14 seconds like to define thank you for the question we'll reiterate we've said we will get to 35:23 35 minutes, 23 seconds through cycle 380 uh 15 to 18 months from transmission of last rate cut that's a consistent 35:31 35 minutes, 31 seconds comment we've offered we are not moving away from that comment got it perfect the second one is on the net technical slippage is now you know 35:40 35 minutes, 40 seconds clearly inching closer to zero. Wanted to get a sense on what could be the loan yield uplift from the absence of this interest reversals due to technical 35:48 35 minutes, 48 seconds slippages next year and also uh is there a possibility of any recoveries that can be achieved in this technical slippages in the next fiscal. 36:00 36 minutes Uh thank you for that question Riken. I think uh on technical slippages we'll reiterate when when technical slippages 36:09 36 minutes, 9 seconds were first reported by us we made two comments we said gross slippages will decline through the year and net slippages will 36:17 36 minutes, 17 seconds decline even faster I'll request your attention to slide 58 48 of our investor presentation 36:24 36 minutes, 24 seconds in the first quarter when we reported technical impact gross slipage is per 2700 crores they're down to 1240 crores. 36:33 36 minutes, 33 seconds Net slippages were 1861 crores. They're down to 218 crores. In percentage terms, the net slippage is now 0.07%. 36:44 36 minutes, 44 seconds Effectively, what we had said and anticipated is playing through. We continue to believe that there should not be an economic loss on this 36:52 36 minutes, 52 seconds portfolio. We'll be able to recover it over time. We do not want to provide guidance or outlook on when this portfolio will get fully recovered. It's 37:00 37 minutes going into BAU and we'll continue to operate it as BAU. 37:06 37 minutes, 6 seconds Got it. And then just the last question uh uh Pun to your earlier opening remarks that PSL full compliance has been achieved. So just wanted to clarify 37:14 37 minutes, 14 seconds whether it is including the PSLC purchases or it is organic X of those purchases we have achieved full 37:22 37 minutes, 22 seconds compliance and also if you could just you know uh quantify the absolute amount of AFS reserves as of the March uh end. 37:31 37 minutes, 31 seconds Uh Rick thanks for again for that question. Uh PSL compliance at headline and subsegment level counts uh PSLC 37:40 37 minutes, 40 seconds purchased. uh we've not we are not organically compliant but that's been a strategy that we have consistently followed if you look at our annual 37:48 37 minutes, 48 seconds disclosures uh we've endeavored to be fully compliant including PSC purchases 37:55 37 minutes, 55 seconds on AFS reserve give me uh 20 seconds I'll just come back to you 38:03 38 minutes, 3 seconds sure thanks for answering the questions and Amitita 254 38:11 38 minutes, 11 seconds crores is our AFS reserve on a gross basis at 31st March 2026. That's the positive number, right? 38:22 38 minutes, 22 seconds It's a negative number. Okay. Thank you. 38:32 38 minutes, 32 seconds Your next question comes from the line of Kunal Sha from City Group. Please go ahead. 38:38 38 minutes, 38 seconds Yeah. Uh so again touching upon uh the same question in terms of NI optimization. Last time we indicated 38:45 38 minutes, 45 seconds that uh maybe irrespective of the NIM profile we will still look at NI growth 38:51 38 minutes, 51 seconds uh maybe as our uh maybe the target. uh and this quarter compared to that of the overall loan growth uh it appears to be 38:59 38 minutes, 59 seconds relatively weak at one odd percent. uh would it be fair to assume that maybe larger part of growth is coming through towards the end of the quarter and we 39:06 39 minutes, 6 seconds should see the benefit of growth leveraging coming through in the next year and for the full year should we 39:13 39 minutes, 13 seconds still expect NI to outpace the overall loan growth uh looking at this NI optimization strategy given that now 39:20 39 minutes, 20 seconds rates are almost where they are uh and deposit repricing as you mentioned would be towards the end 39:31 39 minutes, 31 seconds Kunal thanks for the questions. Uh let me again respond to them in parts. 39:37 39 minutes, 37 seconds Uh business does get booked through the quarter. Uh quarter 4 is the strongest quarter for the industry as well as us. 39:45 39 minutes, 45 seconds So yes there is a gap between me growth and average balance growth uh which does play through on on NI versus uh growth. 39:55 39 minutes, 55 seconds Please also appreciate that if you're measuring NI growth in its absolute quarteron quarter, there is loan growth 40:03 40 minutes, 3 seconds number and then there is interest earning assets growth number. So I would request you to focus on interest earning assets growth because that plays through 40:10 40 minutes, 10 seconds NI not just advances growth. The interest earning assets growth is marginally lower than loan growth as we stand today. 40:18 40 minutes, 18 seconds The last element obviously between the loan growth walk and the NI is the two basis points margin contraction uh that 40:27 40 minutes, 27 seconds has played through in the current quarter. So that's the bridge to the growth versus NI walk. Uh so your 40:35 40 minutes, 35 seconds pointed question on was the growth period end or will we see the growth sustain uh and have net interest income from that growth. 40:45 40 minutes, 45 seconds uh the book has continued to hold up. So the it was not a period end bump up for book that we reported on the advances 40:52 40 minutes, 52 seconds side. Uh I hope that answers all of your questions. Thank you. 40:57 40 minutes, 57 seconds Yeah, perfect. And uh couple of more. So one is uh overall in terms of the step up on the retail side. So we had seen maybe almost four odd percent growth. 41:07 41 minutes, 7 seconds You indicated the disbbursement growth that has been quite strong. So uh so we should really see the step up now 41:14 41 minutes, 14 seconds getting into the double digit kind of a retail growth getting into the next year looking at the uh disbbursement momentum 41:21 41 minutes, 21 seconds or this was more like a uh Q4 uh uh phenomena and then maybe uh on on fe 41:28 41 minutes, 28 seconds income side overall relatively uh weak across the board including all the private banks um in say the singledigit 41:35 41 minutes, 35 seconds kind of a number uh so how should we look at it uh uh going forward would it continue to trail the balance sheet growth. Yeah. Thank you. [clears throat] 41:44 41 minutes, 44 seconds So Kunal Hai this is Munish. Uh first of all you know it's not a quarterful phenomena. We've shown you last quarter also we saw a decent acceleration in our 41:53 41 minutes, 53 seconds dispersal numbers in retail assets and in assets as PRIT and Amitab told you we looking to grow assets in in the in 42:02 42 minutes, 2 seconds accretive businesses and we continue to push for growth in those businesses. Our investments in technology, digital etc. 42:10 42 minutes, 10 seconds or working with the branches to deepen relationship with the uh own customers etc is helping us accelerate the 42:17 42 minutes, 17 seconds momentum and we hope to continue to you know maintain this momentum in the retail asset growth which will eventually start feeding into the overall book growth uh number. 42:31 42 minutes, 31 seconds Got it. and fe side. 42:39 42 minutes, 39 seconds Similarly, you know, you've seen a few numbers. We we we hope to as the as the core businesses grow and as the as our 42:47 42 minutes, 47 seconds as our branch business uh also grows and with the additional new branches etc. We also continue to hope to see acceleration in the fel lines as well as we go into the next year. 42:59 42 minutes, 59 seconds Okay. Okay. Thanks. Thanks. Yeah. 43:03 43 minutes, 3 seconds Thank you. The next question comes from the line of Abhishek Muraka from HSBC. Please go ahead. 43:12 43 minutes, 12 seconds Yeah. Hi, good evening. Thanks for taking my question. So my first question is uh again on growth. So now since we 43:19 43 minutes, 19 seconds are seeing a pretty strong pick up in uh you know retail dispersements and SN looks good as well. uh do you see a need 43:26 43 minutes, 26 seconds to calibrate your corporate deposit growth uh just from a Ryok or ROA perspective you know that that change in 43:33 43 minutes, 33 seconds mix will drive uh you know drive your uh P&L and make it look better so do you see any need to calibrate that uh 43:40 43 minutes, 40 seconds corporate deposit growth and if not then uh do we really uh care about the 60% 43:48 43 minutes, 48 seconds retail 15me 25 corporate kind of mix or does that not really matter because on a rough basis are generating pretty much 43:55 43 minutes, 55 seconds similar returns. So how do we think about this? 44:00 44 minutes So on the liability side I think uh we are seeing a institutionalization of the deposit base. Obviously as a bank we 44:07 44 minutes, 7 seconds would like you're talking with corporate sorry sorry my bad. Yeah I I meant corporate loans. Yeah corporate loans. 44:16 44 minutes, 16 seconds The whole question was about the loan mix and corporate loans. My bad. Sorry thanks for the question. Let me let me 44:25 44 minutes, 25 seconds respond to the RARO question first uh because that lead into the second response. 44:32 44 minutes, 32 seconds See RAROs continue to remain healthy for the wholesale business. We can confirm to you that Rarox that this business had FI25 have held up through FI26. 44:42 44 minutes, 42 seconds So growth has not come at the compromise of Aro. 44:47 44 minutes, 47 seconds The book composition at A minus and above has stayed at 91%. So we've not seen growth come at the cost of asset 44:54 44 minutes, 54 seconds quality or origination quality as we speak. 44:59 44 minutes, 59 seconds The the theoretical question that you asked is as long as hold up well why bother between a mix of wholesale and 45:07 45 minutes, 7 seconds retail. The challenge is that there is a finite amount of leverage that a financial institution can have to retain its AAA rating. 45:18 45 minutes, 18 seconds We will need to manage that leverage ratio for ourselves and consequently rar agnostic. ROEs are leverage 45:27 45 minutes, 27 seconds dependent. So as we look to manage the max leverage that we can work with within a capital structure that we are 45:35 45 minutes, 35 seconds comfortable with, we will need a balanced book. Therefore, our commentary that in the near term we are optimizing 45:42 45 minutes, 42 seconds for NI with wholesale growth but we will look to recalibrate the book back. That should hopefully give you a full color 45:49 45 minutes, 49 seconds of our thinking behind RAO ROE and book composition. 45:55 45 minutes, 55 seconds Yeah, sure. And so by when do you start recalibration? So it's been a while since retail picked up but now it has it seems to have picked up quite strongly. 46:06 46 minutes, 6 seconds Uh so as we speak uh I mean you know the labors in our hand are in our hands are 46:14 46 minutes, 14 seconds really the activity levels on the ground on the retail uh asset side which is fairly strong which is reflected in Q1 Q 46:21 46 minutes, 21 seconds dispersement growth apart from the year-on-year dispersement growth that you are seeing on the retail asset side. 46:28 46 minutes, 28 seconds So the calibration in that sense is continuing it's it's ongoing. Uh so from our perspective you'll see the retail 46:35 46 minutes, 35 seconds book growth continue to happen as we have seen in the last two or three quarters. Uh and like we like Amitab mentioned uh the overall ratio of about 46:44 46 minutes, 44 seconds 7030 give or take uh 3% on either side is where we'll be uh so from our perspective that's what we are doing. 46:52 46 minutes, 52 seconds what what's in our control is continued focus on making sure that we are in front of the customers and getting the business which you can see on the retail 47:01 47 minutes, 1 second dispersement side is happening and which Munich also reiterated is happening quite strongly 47:09 47 minutes, 9 seconds sure uh okay and uh the second one is on opex can you please clarify uh what I got is there's a 126 cr onetime cost and 47:17 47 minutes, 17 seconds a 282 cr reversal was it or it was a cost Again, Aishek, if you look at my comments, uh 47:26 47 minutes, 26 seconds last quarter, uh we we did call out that we reversed uh employee benefit expenses no longer payable last quarter. 47:36 47 minutes, 36 seconds So, in the last quarter, your staff cost went down because of the reversal. In the current quarter, we've provided 429 47:44 47 minutes, 44 seconds crores. It is not on account of what we reversed. It is basically rate movement for employee benefits. 47:52 47 minutes, 52 seconds the on in one quarter we had a negative which is the prior quarter in the current quarter we have a positive 47:59 47 minutes, 59 seconds therefore the numbers have moved in in opposite directions the cumulative impact of that as I called out for you was roughly about 408 crores adjusting 48:09 48 minutes, 9 seconds for that 408 crores I had called out the growth numbers on a QQ basis to be 4%. I hope that clarifies. 48:17 48 minutes, 17 seconds Got it. Yeah. Yeah. Got it. All right. 48:20 48 minutes, 20 seconds Thank you so much for answering the question. Thank you. 48:26 48 minutes, 26 seconds The next question comes from the line of Adash from Please go ahead. 48:38 48 minutes, 38 seconds Adash, your line is unmuted. Please proceed with your question. 48:46 48 minutes, 46 seconds As there is no response from the line of current participant, we'll move on to our next question. Our next question comes from the line of MB Mahesh from Kotak Securities. Please go ahead. 48:57 48 minutes, 57 seconds U just two questions. So one is on that u the uh raok argument that you present since we can't observe u segmental raox 49:07 49 minutes, 7 seconds for the company uh and we can we can we can kind of see only the roe side of it uh if you were to kind of triangulate 49:15 49 minutes, 15 seconds and see what the roe looks like is it meaningfully lower than a number like 15% or are you targeting for a different 49:22 49 minutes, 22 seconds number M thank you for the question. Uh I think the aspirational roe was 18%. 49:34 49 minutes, 34 seconds And at the bank level uh given the component outlook we've provided 49:42 49 minutes, 42 seconds it's it's a fair assumption that you can assume that there will be retail roe 49:49 49 minutes, 49 seconds retail roe is marginally higher than wholesale roe. So we don't really want to put a number at a segment level at 49:56 49 minutes, 56 seconds the bank level we continue to aspire for 18% is is what we would like to state. 50:04 50 minutes, 4 seconds Okay. Um the second question is from the credit cost line. Uh now that we are seeing slippages trending lower and credit cost trending lower. Um keeping 50:13 50 minutes, 13 seconds everything else constant, how do you look at FI27 50:29 50 minutes, 29 seconds Mahesh? you know punit is not going to give you a guidance and I'm not permitted to give you a guidance. Um I'll just say that given where we are uh 50:37 50 minutes, 37 seconds and given if you look at the trend line and the fact that we have said that we have seen stabilization uh in some of our portfolios I mean you 50:46 50 minutes, 46 seconds you can then stretch that trend line I I mean obviously the uh joker in the pack is how long this west Asia crisis lasts and what impact it has on India and 50:54 50 minutes, 54 seconds that's why one of the reasons why we made this provision just to protect ourselves but if we ignore West Asia then you know where the trend line is 51:01 51 minutes, 1 second going if West Asia crisis continues frankly I don't know where this trend line will go because it's very difficult to predict at this stage how long what 51:09 51 minutes, 9 seconds sectors how much the impact would be what the India will be able to manage not able to manage what the inflation would be etc etc so we'll be watching 51:16 51 minutes, 16 seconds the space closely and that's why even if as we have grown in the wholesale side you will see that from a strategy perspective we have not sacrificed our 51:24 51 minutes, 24 seconds asset quality at all we are very very careful where we are giving this money out and same applies to retail while we seeing dispersal growth we've been very 51:32 51 minutes, 32 seconds very cautious about while we are growing. We want to be very careful where we grow. 51:38 51 minutes, 38 seconds Okay. Uh thank you. Just one clarification on the um on the incremental dispersements that you're doing. One one of the conversation that 51:46 51 minutes, 46 seconds we've had uh previously is that there was significant tightening of the underlying credit filters in the last 2 years and that was expected to open up 51:54 51 minutes, 54 seconds as the portfolio starts behaving better over time. Have we reverted to back to where we are earlier or are you still 52:02 52 minutes, 2 seconds kind of comfortable to hold the stance that you're more open to kind of take a bit more risk than before? Thank you. 52:10 52 minutes, 10 seconds M Thank you for the question. Uh the growth that we've delivered on dispersement is without uh loosening our 52:16 52 minutes, 16 seconds risk filters as on date. Uh we've clearly been prudent and we don't expect to be loosening our growth uh our risk filters on a go forward basis. 52:38 52 minutes, 38 seconds Sorry m was I audible or did I miss or did you miss me please? I got the answer. Thank you. Yeah, thank you. Thanks M. 52:47 52 minutes, 47 seconds Thank you. Your next question comes from the line of Maruk Ajana from Tara Capital. Please go ahead. 52:54 52 minutes, 54 seconds Yeah. Hi, good evening. I just had two questions. uh you ran uh you talked about your buffer provision you created 53:02 53 minutes, 2 seconds this quarter uh saying that if uh you know saying uh quoting $150 53:11 53 minutes, 11 seconds uh so uh does that mean that if indeed the situation gets worse from here on you would actually be drawing down on 53:20 53 minutes, 20 seconds these provisions this year itself uh because you've not draw drawn down on your earlier contingency provisions 53:27 53 minutes, 27 seconds that's why asking. So that's my first question and uh my uh second question is 53:35 53 minutes, 35 seconds that uh uh just in terms of uh deposits right deposit taking um basically it's 53:44 53 minutes, 44 seconds getting a little tight for the sector though deposit growth for the sector has moved up loan growth has moved up even 53:51 53 minutes, 51 seconds faster. So given that dynamic is there a potential for deposit rates to rise from here? So these are my two questions. 54:01 54 minutes, 1 second Maruk thank you for the questions. Uh I'll take the first one and then request Naj to come in on the second. 54:08 54 minutes, 8 seconds The way we've constructed the provision is it is not a floating provision. 54:15 54 minutes, 15 seconds There is an underlying identified pool of loans across customer segments across products. 54:24 54 minutes, 24 seconds That identification of pool of loans was done pursuant to a framework our risk team set up for stress testing. So these 54:31 54 minutes, 31 seconds are an identified set of loans. On these identified set of loans we have a additional standard asset provision of 2,1 cr. 54:41 54 minutes, 41 seconds In the inadvertent event of loans from this pool slipping, this provision will get utilized to take 54:50 54 minutes, 50 seconds care of slippages from this pool. So the construct of this provision is very different from the 512 crores we were holding for expected credit losses. 55:02 55 minutes, 2 seconds There is a clear utilization against pools that get impacted by the West Asia crisis. So the short answer to your 55:10 55 minutes, 10 seconds question is yes, we will draw down on these provisions in the event we see an impact on the P&L in FI27. 55:18 55 minutes, 18 seconds Okay. But for that does oil have to go to 150 or there's no such thing. It's just that the pool should be impacted. 55:27 55 minutes, 27 seconds Maruk, it's look the 150 comment and I want to contextualize this because you've picked up one part of the comment 55:35 55 minutes, 35 seconds I made. The comment holistically I made was even if I take the most stress scenario 55:43 55 minutes, 43 seconds my risk team gave me the slippages that I would have would stand fully covered from a provisioning perspective by this standard asset provision we've created today. 55:55 55 minutes, 55 seconds So I have not at one any point in time said that that slippage will happen. 56:00 56 minutes Asset quality remains stable. But yes, if this if anything from this pool were to slip 56:07 56 minutes, 7 seconds related to West Asia crisis, not everything will slip at 150. Something may slip at 110. If assets from this 56:15 56 minutes, 15 seconds pool slip and the slippage is not in the ordinary course of business, this provision will get utilized. 56:26 56 minutes, 26 seconds Perfect. 56:26 56 minutes, 26 seconds To answer your deposit pricing question, I think we're looking at two different markets. One is the retail deposit market and second is the wholesale or 56:34 56 minutes, 34 seconds deposit market. In the retail deposit market, banks reduced the pricing by approximately 10 to 15 basis points in 56:41 56 minutes, 41 seconds response to the 25 basis cut. So to that extent, the transmission was incomplete. 56:47 56 minutes, 47 seconds But given where the market is, I don't see any further cuts happening. Uh second on the bulk deposit market or the wholesale deposit market is the usual 56:55 56 minutes, 55 seconds year end phenomena that we see in the last quart last month of the quarter uh we see uh some kind of an uptick in the 57:02 57 minutes, 2 seconds bulk deposit rates. This time that uptick was a little bit more accentuated because we saw uh sell off in the bond market. We saw higher yields in the CD 57:11 57 minutes, 11 seconds market and that kind of transmitted back into the bulk deposit market as well. As we [clears throat] transition into this new year, we have seen some softening of 57:19 57 minutes, 19 seconds world deposit rates, but it's a wait and watch. Liquidity in the system is good. 57:24 57 minutes, 24 seconds Uh but really the question is what happens uh to the crude oil prices, to the currency, etc., which is what the market is reacting to. 57:34 57 minutes, 34 seconds Okay. Thank you. Thanks a lot. 57:38 57 minutes, 38 seconds Thank you ladies and gentlemen. We take that as our last question for today. I now hand the conference over to Mr. Punit Sharma for closing remarks. 57:48 57 minutes, 48 seconds Uh thank you Sat. Thank you everyone for for taking the time this evening. If any questions remain unanswered, please feel free to re reach out to Rahul or myself. 57:58 57 minutes, 58 seconds We'd be happy to take them offline. Thank you and have a good evening. 58:04 58 minutes, 4 seconds Thank you. On behalf of Access Bank, thank you for joining us and you may not disconnect your lines. Thank you.