Bandhan Bank Ltd — Q4 FY26

Bandhan Bank Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=WrtNy_P0akY Published: 2 weeks ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the Bundon Bank Q4 FI26 earnings conference call. As a reminder, 0:11 11 seconds all participant lines will remain in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:19 19 seconds Should you need assistance during the conference call, please signal the operator by pressing star then zero on your touchstone telephone. Please note that this conference is being recorded. 0:31 31 seconds I will now hand the conference over to Mr. Vikash Mundra, head of investor relations for opening remarks. Thank you and over to you. 0:40 40 seconds Thank you Ryan. Good evening everyone and welcome to Bundan Bank's earning call to discuss our business and financial performance for the quarter and full year ended 31st March 2026. 0:50 50 seconds Thank you for joining us today. We truly appreciate your time and participation. 0:55 55 seconds During today's call, we will walk you through our operating performance, key developments during the period and our strategic clarities going ahead along with our view on the operating 1:03 1 minute, 3 seconds environment. Joining us this evening are Mr. Pasatim Singh Rhupta, managing director and CEO, Mr. Ratan Kumar Kesh, 1:10 1 minute, 10 seconds executive director operating officer, Mr. Rajan Kumar Baba, executive director and chief business officer, Mr. Rajiv 1:17 1 minute, 17 seconds Mantri, chief financial officer and other members of the senior management team. I'm Vikas Mundra, head of investor relations. Following the management's 1:25 1 minute, 25 seconds remark, we will be happy to take your questions on the quarter's performance and our outlook. With that, I would now invite our managing director and CEO, 1:33 1 minute, 33 seconds Mr. Pastor Sir, to share his opening comments. Over to you, sir. 1:39 1 minute, 39 seconds Thank you Vicash. Good evening everyone and thank you for joining us today. On behalf of Bangan Bank, I am pleased to 1:47 1 minute, 47 seconds welcome you to our earnings call to discuss the financial performance for the fourth quarter and full year of FY26. 1:56 1 minute, 56 seconds We appreciate your continued trust on us. This has been an important and challenging year for the bank and we look forward to sharing our perspectives 2:04 2 minutes, 4 seconds on the quarter, the evolving operating environment and our priorities going forward. 2:11 2 minutes, 11 seconds This quarter marked an improvement across many key parameters reflecting strengthening fundamentals across our core businesses. We saw encouraging 2:20 2 minutes, 20 seconds momentum built through the quarter underpinned by disciplined execution and a sharp focus on balance sheet quality. 2:29 2 minutes, 29 seconds On the asset side, advances continued to grow at a healthy pace. The EV segment has not only stabilized but also 2:36 2 minutes, 36 seconds delivered good sequential growth reinforcing our confidence in the portfolio. At the same time, our secured 2:43 2 minutes, 43 seconds book continued strong growth trajectory and adding resilience to the overall loan portfolio. On the liability side, 2:50 2 minutes, 50 seconds we made meaningful progress in improving the quality and granularity of our deposits. Kafa growth was strong during 2:58 2 minutes, 58 seconds the quarter and retail deposit mobilization continued to grow at an elevated trajectory. 3:05 3 minutes, 5 seconds In parallel, we consciously reduced the share of high cost bulk deposits which has helped strengthen the liability profiles and 3:13 3 minutes, 13 seconds improve granularity going forward. These actions are reflecting in our profitability metrics as well. margin 3:21 3 minutes, 21 seconds showed an encouraging upward trend during the quarter supported by the sustained reduction in the cost of funds. P income also saw a healthy 3:29 3 minutes, 29 seconds pickup led by the strong growth in recurring and predictable streams such as processing fees and third party products income further enhancing the stability of our revenue profile. 3:40 3 minutes, 40 seconds [clears throat] 3:41 3 minutes, 41 seconds Asset quality trends during the quarter were constructive. We saw not only a decline in slippages on a sequential 3:49 3 minutes, 49 seconds basis but also a meaningful improvement across SMA backup. This reflects improving portfolio behavior and the 3:57 3 minutes, 57 seconds effectiveness of our early warning and monitoring mechanisms and improved collection efficiency. 4:05 4 minutes, 5 seconds While the progress this quarter has been encouraging, we remain clear on the areas where we are sharpening our focus further. Granular deposit growth 4:14 4 minutes, 14 seconds including Kasa continues to be a key priority and we are intensifying efforts to defend defense customer engagement 4:21 4 minutes, 21 seconds create digital journeys and enhance product propositions to further strengthen our liability franchise. 4:28 4 minutes, 28 seconds Operating expenses were elevated during the quarter due to some non-recurring items and we remain focused on driving 4:35 4 minutes, 35 seconds tighter cost discipline and improving operating leverage over the coming periods. Additionally, even as slippages 4:43 4 minutes, 43 seconds and SMA trends improve, we continue to place strong emphasis on recovery efforts, limiting incremental stress, 4:51 4 minutes, 51 seconds and moving steadily towards our medium-term credit cost aspirations. 4:57 4 minutes, 57 seconds This remains a this remains the core area of management focus. 5:04 5 minutes, 4 seconds Overall, the quarter reflects improving fundamentals, strengthening business momentum and continued balance sheet resilience. We believe the actions we 5:13 5 minutes, 13 seconds are taking today will position the bank well for sustainable profitable growth over the medium term. While my colleague 5:21 5 minutes, 21 seconds and CFO Mr. Rajiv Mantri will shortly walk you through the financials in detail, I would like to highlight a few 5:28 5 minutes, 28 seconds key performance indicators from the fourth quarter of FY26. 5:34 5 minutes, 34 seconds At the end of FY26, our gross advances stood close to rupees 1.54 lakh cringing a healthy 13% y growth. 5:45 5 minutes, 45 seconds Deposit balances scaled up to 1.66 lakh cr supported by strong traction in retail and casa deposits reflecting our 5:53 5 minutes, 53 seconds strategy of strengthening the quality and sustainability of our liabilities. 5:59 5 minutes, 59 seconds Retail term deposits continue to scale up at a strong pace recording growth of over 30% YI reflecting growing customer 6:07 6 minutes, 7 seconds confidence and the effectiveness of our branch centric distribution strategy. 6:12 6 minutes, 12 seconds CASA balances strengthen sequentially and now account for 29% of total deposits. Consequently, the overall 6:19 6 minutes, 19 seconds retail deposit composition including CAPA and retail term deposits improved further to 74% reinforcing the stability 6:27 6 minutes, 27 seconds and granularity of our deposit base. Our focus on optimizing the composition of the loan book continued with the share 6:35 6 minutes, 35 seconds of secured lending remaining largely stable over the quarters. The pace of growth of secured book over the last year has been strong enabling us to 6:44 6 minutes, 44 seconds achieve our targeted portfolio alignment earlier than planned. We expect to sustain the current mix in the near to medium term with gradual increase. 6:56 6 minutes, 56 seconds The quarter saw healthy margin expansion with memes improving sequentially to 6.2% as funding cost softened. Trade 7:05 7 minutes, 5 seconds cost continued their downward trajectory and asset quality metrics strengthened with gross and net NPA at 3.3% and 1% 7:14 7 minutes, 14 seconds respectively and provision coverage at 85% including technical writeoffs. For Q426, our net total income stood at 7:23 7 minutes, 23 seconds 3,566 cr while our operating profit was,441 7:30 7 minutes, 30 seconds cr. I'm pleased to inform the bank reported a pack of rupes 534 cr for the 7:37 7 minutes, 37 seconds quarter depicting a growth of 68% y our capital position remains robust the 7:47 7 minutes, 47 seconds capital adequacy ratio improved and stands at 18% and t one capital at 17.3%. 7:55 7 minutes, 55 seconds This provides ample headroom to support the future growth. We also continue to expand our distribution footprint taking 8:03 8 minutes, 3 seconds the branch network to 1,955 branches during the year. Apart from adding new branches, we have upgraded most of our 8:12 8 minutes, 12 seconds housing finance centers to fullfledged banking branches and some of them also got merged with the existing branches. 8:20 8 minutes, 20 seconds Further, we also have 4,400 EB banking units spread across the country. This expansion and reach enhances and further 8:29 8 minutes, 29 seconds strengthens our ability to serve customers more effectively. Furthermore, I'm pleased to inform you that the board 8:37 8 minutes, 37 seconds of directors has recommended a dividend of rupees. 8:41 8 minutes, 41 seconds 150 per share subject to the approval of the shareholders at the forthcoming annual general meeting. To conclude, the 8:49 8 minutes, 49 seconds performance this quarter reflects the tangible progress we have made across growth, profitability, asset quality, 8:56 8 minutes, 56 seconds and balance sheet strength. The improvement we are seeing is broad-based and driven by a clear strategic direction, disciplined execution, and a 9:06 9 minutes, 6 seconds sustained focus on building a resilient and sustainable franchise. While we remain mindful of the external environment and are accessing its 9:15 9 minutes, 15 seconds implications, our priorities remain unchanged. Strengthening our core businesses, improving the quality of 9:22 9 minutes, 22 seconds growth, driving efficiency, and consistently enhancing shareholders value. With a strong capital position, 9:29 9 minutes, 29 seconds improving fundamentals and a clear road map ahead, we believe Munan Bank is well positioned to deliver steady and sustainable performance going forward. 9:40 9 minutes, 40 seconds With that, I would now like to hand over the call to our chief financial officer Sri Rajiv Mantri who will take you through the financial performance in 9:49 9 minutes, 49 seconds greater details. After that, we'll be happy to take your questions. Thank you. 9:55 9 minutes, 55 seconds Thank you sir. and a warm welcome to everyone on the call. We'll begin by reviewing the bank's operating performance for the quarter. I will 10:04 10 minutes, 4 seconds briefly cover the key financial highlights along with it. We'll also discuss our business progress over the period. We'll start with the advances 10:12 10 minutes, 12 seconds portfolio where the development this quarter underscores the steady headway we are making in the positioning and strengthening the balance sheet. As of 10:20 10 minutes, 20 seconds 31st March 2026, the loan book stood at rupees 1.54 lakh cringing 13% year-on-year growth and a healthy 6% 10:29 10 minutes, 29 seconds sequential expansion supported by momentum across all major businesses. 10:35 10 minutes, 35 seconds The EV portfolio at rupes 53,96 crores remains lower on a yearly comparison which was an industrywide 10:42 10 minutes, 42 seconds phenomenon but it posted a strong sequential growth of 8% during the quarter. 10:49 10 minutes, 49 seconds Growth in the non-EB segments remain robust with the portfolio expanding 25% yearonear. 10:56 10 minutes, 56 seconds This book represents close to 2/3 of total advances reflecting continued progress in portfolio diversification. 11:04 11 minutes, 4 seconds Within this retail assets recorded strong growth of 46% yearonear driven largely by secure products such as commercial vehicles, construction equipments, auto loans and gold loans. 11:16 11 minutes, 16 seconds Wholesale banking also delivered solid expansion of 33% yearonear aided by deeper client engagement and discipline execution. 11:25 11 minutes, 25 seconds Secure book grew 25% yearon year and now forms nearly 56% of the overall portfolio supporting further improvement in the asset quality and risk revenues. 11:36 11 minutes, 36 seconds Overall the advance mix is more balanced and deconented with no single segment dominating the book. EB group lending 11:43 11 minutes, 43 seconds accounts for 23% of advances, small business and agree loans at 12%, wholesale banking 31%, 11:51 11 minutes, 51 seconds housing 23% and retail loans nearly 11% of total advances. 11:56 11 minutes, 56 seconds Turning to liabilities, the total deposit stood at rupees 1.66 66 lakh cr as of 31st March 2026 reflecting a 10% 12:05 12 minutes, 5 seconds increase over last year and a sequential growth of 6% compared to the previous quarter which was broadly tracking the expansion in advances. 12:15 12 minutes, 15 seconds Growth was consciously moderated as we focus on strengthening retailled deposits without tapping incremental bulk funding. 12:23 12 minutes, 23 seconds A key highlight has been the continued moderation of bulk deposits which declined 7% yearonear. Share of bulk 12:30 12 minutes, 30 seconds deposits now stands at about 26% of total deposits down from 31% last year reflecting a clear and deliberate move 12:39 12 minutes, 39 seconds away from higher cost less stable funding sources towards a more resilient and granular liability structure within 12:47 12 minutes, 47 seconds our bulk deposit base. It is also important to highlight that around 89% of these deposits are non-ol callible in 12:54 12 minutes, 54 seconds nature. This provides meaningful visibility and stability to our funding profile. 13:00 13 minutes Our retail deposit franchise continues to scale well. Retail balances including kasa and retail term deposits grew 18% 13:07 13 minutes, 7 seconds yearonear. Retail term deposits in particular showed strong traction with 30% year-on-year growth underscoring 13:15 13 minutes, 15 seconds customer confidence and deeper engagement with the franchise. 13:19 13 minutes, 19 seconds On kasa balances increased to rups 48,752 crores delivering strong 14.1% sequential growth driven largely by sharp pick up in the current accounts. 13:30 13 minutes, 30 seconds Savings balances also moved up 7% during the quarter. As a result, the casa ratio improved to 29.3% up by nearly 200 basis points quarteron quarter. 13:43 13 minutes, 43 seconds Let me now turn to asset quality where we continue to see consistent improvement across the key parameters reflecting better portfolio behavior and discipline execution. 13:53 13 minutes, 53 seconds Starting with collections performance strengthened further during the quarter. 13:57 13 minutes, 57 seconds Overall collection efficiency excluding NPA improved to 98.9% in March 2026 up from 98.1% in December 2025. 14:08 14 minutes, 8 seconds Within the EV portfolio, corrections remain strong with quarterwide efficiency at 99.3% versus 98.2% in Q3 FI26. 14:19 14 minutes, 19 seconds And for the month of March specifically, it was 98.6% up from 98% in December. 14:25 14 minutes, 25 seconds This represents the collection efficiency X NPA. 14:31 14 minutes, 31 seconds Additional details for this is in available in slide 22 of our invest. 14:36 14 minutes, 36 seconds If we talk about the collection efficiency X bucket that reflects even a better trajectory. It used to be at 14:42 14 minutes, 42 seconds 99.3% in quarter 3 has improved to 99.6% for quarter 4 and in fact for the month of March it was at 99.7%. 14:53 14 minutes, 53 seconds Improvements are equally evident in slippage trends. G gross lipages at the bank level declined sharply to rupees 15:00 15 minutes 1028 crores in Q4 compared to rupees 1314 cr in the previous quarter. 15:07 15 minutes, 7 seconds This moderation was largely driven by the EV segment where slippage is reduced meaningfully to rupees 690 crores compared to rupees 942 crores in QC FI26. 15:18 15 minutes, 18 seconds At the same time, recoveries and upgrades improve sequentially though marginally taking the total to rupees 360 crores during the quarter. 15:28 15 minutes, 28 seconds Early delinquency indicators are also moving in the right direction. In the eBay book, the 0 to 90 DPD pool declined 15:35 15 minutes, 35 seconds to about 3% of advances down from 4.6% in the prior quarter with the sharpest reduction seen in the SMS0 category. 15:45 15 minutes, 45 seconds Please refer slide 23 of the investor deck with for more details. 15:50 15 minutes, 50 seconds As a result of these trends, inherent asset quality metrics strengthen further. Gross NPS remain stable at 3.3% 15:58 15 minutes, 58 seconds while net NPS improved to 1%. Credit cost moderated to 2% for the quarter 16:04 16 minutes, 4 seconds compared to 3.3% in Q3 and stood at 3% for the full year of FI26. 16:11 16 minutes, 11 seconds Provisioning coverage remains comfortable with PCR at 71.1% which rises to 74.2% if we include the 16:20 16 minutes, 20 seconds provisions against security receipts and it rises to 84.9% when adjusted for technical write offs which means including technical writeoffs. 16:31 16 minutes, 31 seconds With that I move on to the financial performance for the quarter. Beginning with net interest income for the quarter stood at rupes 2796 16:40 16 minutes, 40 seconds crores reflecting a 1.4% year-on-year growth and a 4% sequential increase. 16:47 16 minutes, 47 seconds This was accompanied by strong expansion in margins with ns improving to 6.2% up from 5.9% in Q3. 16:55 16 minutes, 55 seconds The margin uplift was primarily driven by nearly 23 basis points quarteron quarter reduction in deposit costs along 17:03 17 minutes, 3 seconds with a 14 basis points improvement in advances yields. 17:08 17 minutes, 8 seconds Turning to other income performance was encouraging with growth of 10% yearonear and sharp 12% increase over the previous 17:15 17 minutes, 15 seconds quarter. Within this, the third party products distribution income rose significantly by 34% year-on-year, 17:23 17 minutes, 23 seconds reflecting improved branch level penetration and stronger cross-ell execution. 17:27 17 minutes, 27 seconds Processing fee income also rebounded, supported by high disbbursement volumes, especially within the EB portfolio. 17:36 17 minutes, 36 seconds Moving to expenses, the operating cost for the quarter came in at rupes 2,125 crores representing a 10% increase 17:45 17 minutes, 45 seconds sequentially. This was largely attributable to non-recurring items namely PSLC related costs and technology expenditures. On a fullear basis, 17:54 17 minutes, 54 seconds however, operating costs grow remain well contained at 9% yearon-year while the operates to average assets ratio 18:02 18 minutes, 2 seconds rose to 4.4% 4% for the quarter due to these few non-recurring items. For the fullear FI26, the ratio remained within our guided level and was at around 4%. 18:14 18 minutes, 14 seconds Consequently, operating profit for Q4 stood at rupes 1,441 crores. 18:20 18 minutes, 20 seconds After accounting for provisions and taxes, the net profit for Q4 was rupes 534 cr representing a 68% increase over 18:28 18 minutes, 28 seconds the same period last year and 159% increase over the previous quarter. 18:34 18 minutes, 34 seconds Return metrics for the quarter also strengthened with return on assets for the quarter was at 1.1% and the 18:42 18 minutes, 42 seconds return on equity was at 9% reflecting improved operating efficiency underlying profitability. 18:49 18 minutes, 49 seconds Briefly turning to the fullear performance, NIF for FI26 rupees 10,830 crores, decline of 5.8% yearonear on 18:58 18 minutes, 58 seconds account of moderation in NIM led by continued expansion of secured book and impact of the repo rate card. Operating profit stood at rupees 5,865 19:07 19 minutes, 7 seconds crores reflecting resilience in core earnings. 19:11 19 minutes, 11 seconds NIM opex to assets and credit cost for FI26 were 6.1% 4% and 3% respectively. Higher credit 19:21 19 minutes, 21 seconds cost was on account of pressure on the EV book industrywide phenomenon that we saw play out during the year. Net profit 19:27 19 minutes, 27 seconds for the full year FI26 was rupees [clears throat] 1,224 cr resulting in an annualized ROA of 0.6% and ROE of 5%. 19:38 19 minutes, 38 seconds To summarize, the quarter reflects steady progress across growth, asset quality, margins, and balance sheet resilience. Our fast two quarters are 19:47 19 minutes, 47 seconds translating into more stable portfolio, improving profitability while staying disciplined on risk and cost. We remain 19:55 19 minutes, 55 seconds focused on sustainable growth, strengthening the liability franchise, and further improving the return metrics. 20:01 20 minutes, 1 second With that, I'll now hand it back to the moderator, and we'll be happy to take your questions. 20:09 20 minutes, 9 seconds Thank you ladies and gentlemen. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their 20:18 20 minutes, 18 seconds touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants 20:26 20 minutes, 26 seconds are requested to use your handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question cue assembles. 20:37 20 minutes, 37 seconds We take the first question from the line of Byron engineer from CLSA. Please go ahead. 20:45 20 minutes, 45 seconds Yeah. Hi team. Uh congrats on the quarter. Am I audible? Yes. Hi there. Yes. Yes. 20:52 20 minutes, 52 seconds Yeah. Hi. Hi. Hi. Yeah. Good evening. So just first question is what led to the strong average car growth uh this 21:00 21 minutes quarter doubled just grow sector 21:12 21 minutes, 12 seconds yeah yeah I think yeah we'll have sesh to answer this yeah so we we uh we had focused on current 21:21 21 minutes, 21 seconds account affluent segment where we uh could you know manage a good growth in the current account at the granular 21:29 21 minutes, 29 seconds level month on month which has resulted in the total growth which has happened throughout the year. 21:36 21 minutes, 36 seconds Okay. So seasonality in this right it won't fall in one queue because of something these are these are small extern 21:45 21 minutes, 45 seconds customers who have opened current accounts with us there is no seasonality and our task department has also 21:53 21 minutes, 53 seconds continued to store deposits from the various trust that has also added so that's the result of all the business initiatives and efforts right geared 22:01 22 minutes, 1 second towards improving the credit accounts so and is there any particular target car ratio sure that we have in mind. 22:10 22 minutes, 10 seconds So we'll continue to improve. So that is the we have not yet uh crystallize the target to what percentage we come but 22:17 22 minutes, 17 seconds definitely our focus is that we will continue to improve and last year also we were at 31%. The sooner we achieve at 22:26 22 minutes, 26 seconds this milestone to set up a goal to fix our next target. 22:32 22 minutes, 32 seconds Yeah, I think our overall CASA if you see has gone up from 27.3 to 29.3 within that car has improved further as part 22:39 22 minutes, 39 seconds mentioned we'll continue to improve it further. We're also broadbasing and introducing more products within the table of current accounts and savings that will help us in terms of improving the ka further. 22:49 22 minutes, 49 seconds Understood. Okay. Okay. Fair enough. Uh secondly, uh how how are we thinking about neutralizing our PSL shortfall um 22:59 22 minutes, 59 seconds and go back to that era of selling PSLC rather than purchasing PSLC. 23:05 23 minutes, 5 seconds So a number of steps have been taken in this regard. So this year the cost has been definitely quite high and in the Q4 23:12 23 minutes, 12 seconds also we have to incur a cost of around rupees 60 course. uh so what we have done is that we have revamped our entire 23:21 23 minutes, 21 seconds trade process in our EB segment and also focused on our direct agriculture loans so the effect of these are going to come 23:30 23 minutes, 30 seconds uh so this year we are expecting that the cost would come to I would say almost 50% to what we have incurred last 23:38 23 minutes, 38 seconds year that is our aim this year uh going forward next year it will be almost niz or coming to zero and after that we will 23:47 23 minutes, 47 seconds continue to earn from this PSL portfolio and so this is all from direct agree loans. 23:56 23 minutes, 56 seconds This will be more from the EV segment also where allied degree loans will be covered and also so and also the agree 24:04 24 minutes, 4 seconds loans also and also the small marginal farmers some also improved the pandi process that we have for micr finance 24:13 24 minutes, 13 seconds loans the EB segment and the percentage of EB loans fall out of ESL has been improving steadily which will also help us going forward. Okay. But then Raji 24:22 24 minutes, 22 seconds what what sort of EB loans today do not classify for PSL and going forward they will classify like what is the change if you can. 24:30 24 minutes, 30 seconds No again I'm telling you that it is more of a revamping of a process. So currently what was there the agriculture of the allied agriculture loan that we 24:38 24 minutes, 38 seconds are giving it and not getting captured into our system. So we have made that enable and I can tell you that currently 24:45 24 minutes, 45 seconds a year ago it was only 10% or 15% of the EBS which were coming under the PSL qualifying for PSL now it has already 24:52 24 minutes, 52 seconds increased to 40%. Going forward it will increase to 60 65%. So the so the 24:59 24 minutes, 59 seconds revamping has already been done and you see for the RBI also the circular clearly mandates that you have to follow 25:06 25 minutes, 6 seconds certain process and procedures to get them qualified. So those steps have been taken. So and we are now already we are seeing the green shoots as I told you 25:14 25 minutes, 14 seconds that almost 40% now are being covered of the EV segment. So going forward this percentage will increase and apart from that we are also focusing on the 25:23 25 minutes, 23 seconds agriculture loans that is a direct agriculture loan which will have the PSL effect. 25:29 25 minutes, 29 seconds Understood. Understood. Then sir uh my next question is about the vehicle business vehicle finance now the book is 56,000 crores. It's a decent size. Can 25:38 25 minutes, 38 seconds you talk a bit about it? How much uh firstly who's our typical customer who uh comes to us? Uh secondly, how much of 25:46 25 minutes, 46 seconds the crossell happens to own deposit customers versus open market and is this entirely car loans or is it two wheeler CV etc also? 25:56 25 minutes, 56 seconds Okay. Yeah. So who will be answering? He's our retail head. Yeah. 25:59 25 minutes, 59 seconds Hi. Uh so for this is like uh to answer your first question the vehicle loans includes two wheeler as well as uh car 26:07 26 minutes, 7 seconds loans and uh the majority of this customer segment is salaried and self-contained 26:14 26 minutes, 14 seconds mix but the major majorly it is salary segment. When it comes to other uh vehicle finance which you talked about 26:21 26 minutes, 21 seconds is commercial vehicle and construction equipment where our major focus currently is on a strategic and super strategic customers uh and some portions 26:30 26 minutes, 30 seconds about 9 10% of our customers are retail who are holding the fleet of less than 10 vehicles. 26:38 26 minutes, 38 seconds Okay. And and about the crosselling and about the cross-selling so currently about almost 20% of our volume comes 26:46 26 minutes, 46 seconds from our own customer which we call it ex you know existing branch customers. Uh so that is about 20%. 26:55 26 minutes, 55 seconds Okay. So just broadly what is the mix of loans between CV PV two wheelers? 27:01 27 minutes, 1 second Okay. So about 3,000 K is commercial vehicle about 1,700 K is uh construction 27:08 27 minutes, 8 seconds equipment about 1,800 K is car loans and about 900 K is uh two wheel loans. 27:16 27 minutes, 16 seconds Okay, this is perfect. Yeah. Uh that's it from my end. Uh thanks and wish you all the best. Thank you. 27:24 27 minutes, 24 seconds Thank you ladies and gentlemen. A reminder, if you wish to ask a question, please press star and one. 27:32 27 minutes, 32 seconds We take the next question from the line of Zan Gao from Scornfield. Please go ahead. 27:41 27 minutes, 41 seconds Hey, thank you for opportunity. Um, just [clears throat] on the operating expenses, you mentioned there are some wonderful sectors. Do you mind uh give 27:50 27 minutes, 50 seconds some colors, please? 27:52 27 minutes, 52 seconds There is some disturbance that can you just repeat? Yeah, this one. Can you repeat the question? Yeah. Am I audible now? 28:02 28 minutes, 2 seconds The voice is breaking. Yes, better now. 28:07 28 minutes, 7 seconds Okay. Uh on the operating expenses, you mentioned there are oneoff factors. Do you mind quantifying those oneoff factors and each of it? 28:19 28 minutes, 19 seconds Yeah. So I think uh during the quarter uh we had uh a couple of items which actually do not appear to be recurring. 28:27 28 minutes, 27 seconds So one is the PSLC cost the priority sector lending certificate cost which as we said that we have taken actions that they should go get reduced. So during 28:36 28 minutes, 36 seconds the quarter we had roughly around 60 crores of increase that came through because of the PSLC cost. Um apart from 28:44 28 minutes, 44 seconds that we had an increase in the IT expenses also which was also amounting to a similar level of around 60 crores. 28:51 28 minutes, 51 seconds Uh within this uh there are a number of items which were more timing related issues and therefore we don't expect 28:58 28 minutes, 58 seconds that to get uh repeated immediately. Uh these two I think are uh are couple of recurring items which came through during the quarter roughly amounting to about 120 crores. Right. 29:11 29 minutes, 11 seconds Thanks. And then uh the next question is how should we think about you know I know the macro is uncertain but assuming 29:18 29 minutes, 18 seconds the kind of relatively stable environment how should we think about our way for FI27 29:26 29 minutes, 26 seconds I think the sorry the audio wasn't very clear we we could understand the question the voice is breaking actually if you 29:33 29 minutes, 33 seconds can speak a little bit slowly I think it will be better oh sorry um Yeah. Any any thoughts on F27 ROA? 29:47 29 minutes, 47 seconds On the ROA? 29:50 29 minutes, 50 seconds Yeah. So I think ROA Okay. So ROA we saw a improvement from 0.4% in Q3 to a 1% uh 29:58 29 minutes, 58 seconds in 1.1% in Q4. uh and uh the reason for this is one is we we have seen 30:05 30 minutes, 5 seconds improvement in the income as we had highlighted the cost of deposits have come down uh and also the other income has seen an improvement. Apart from this 30:15 30 minutes, 15 seconds we had seen a reduction in the slippages which led to a reduction in the provisioning or the credit cost and these factors despite a bit of a partial 30:22 30 minutes, 22 seconds offset to increase in expenses overall we still saw the overall profitability improve uh sequentially um and going forward as we had been 30:32 30 minutes, 32 seconds guiding the market we will be working towards seeing how we can gradually keep on improving the ROA to towards the 30:39 30 minutes, 39 seconds guided level of between 1.6 6 to 1.7% ROA by the exit of FY27 give or take 10 30:46 30 minutes, 46 seconds basis points. Uh so we intend to make sequential improvement towards that aided by multiple factors and also 30:54 30 minutes, 54 seconds further sort of improvement in cost upon the free research. 30:57 30 minutes, 57 seconds Yeah. So just to give more clarity on it the major one of the major factors is that we could reduce our trade cost so 31:05 31 minutes, 5 seconds to 2% number one. Number two is that me has increased as you have seen to 6.2% 2%. And uh these are the two major 31:13 31 minutes, 13 seconds factors and uh definitely the other income has also gone up. 31:18 31 minutes, 18 seconds This is the third one and the fourth is that despite an increase in the operating costs, the operating cost has 31:25 31 minutes, 25 seconds increased so this trajectory of 1.1 has been maintained. Thank you so much. 31:36 31 minutes, 36 seconds Thank you ladies and gentlemen. A reminder, if you wish to ask a question, please press star and one. 31:44 31 minutes, 44 seconds We take the next question from the line of Jan Karote from Access Capital. Please go ahead. 31:50 31 minutes, 50 seconds Uh thank you for the opportunity. So first question is uh on the month of April now that elections are almost uh 31:57 31 minutes, 57 seconds closing in tomorrow. Uh anything that uh we should uh I mean I think this this time we didn't have any uh interruption 32:06 32 minutes, 6 seconds so to say from collections. So fair to say this collection trends would have held up uh in in in through the events of April as well. 32:16 32 minutes, 16 seconds So let me tell you the clear picture that till now there is no adverse effect 32:22 32 minutes, 22 seconds on collection on account of I would say either election or war. So 32:30 32 minutes, 30 seconds the collection efficiency what Rajiv has stated is still continuing but definitely a few I think one two basis 32:37 32 minutes, 37 seconds point it comes down in the month of April but which is quite common already but on the ground no adverse effect is 32:45 32 minutes, 45 seconds being seen and we are hopeful and expecting that this trend will continue. 32:51 32 minutes, 51 seconds Great sir. So second question is on the RBI ACL impact. I don't know if you already spoken in the past about this but uh given that the direct I mean the 33:00 33 minutes final guidelines are exactly as what the draft was you would have had some time to uh calculate so how would your uh 33:07 33 minutes, 7 seconds steady state uh credit costs look like I'm not not concerned about the one-time impact I'm asking about the steadystate 33:14 33 minutes, 14 seconds credit cost and and just a corollary to that question also uh on your unsecured book what is the standard asset 33:20 33 minutes, 20 seconds provisioning that you currently do so so Rajiv So I think on the um on the 33:28 33 minutes, 28 seconds ECL uh we do have the transition impact which is based on the December 2025 portfolio based on the earlier draft 33:35 33 minutes, 35 seconds circular. Yes, I think the latest circular came through yesterday. We are still going through if there are any further changes to that and what will be 33:42 33 minutes, 42 seconds the implications of it. But based on the earlier draft circular and December 2025 portfolio, the transition pack we expect 33:50 33 minutes, 50 seconds is to be roughly around 1,250 crores. uh which as we are allowed to transition it or spread it over 5 years would 33:58 33 minutes, 58 seconds translate to about a 250 crores uh per year impact um given the latest circular talks about this can be uh passed 34:05 34 minutes, 5 seconds through the retained earnings or capital reserves we expect roughly 16 to 17 basis points of impact on the CR every 34:12 34 minutes, 12 seconds year for those five years so that's uh the implication based on the transition the flow impact is still being computed 34:19 34 minutes, 19 seconds we don't have a number as of yet uh uh as that gets computed we'll have to assess the new circular implications and then we'll be able to come back with 34:27 34 minutes, 27 seconds what the flow impact should be. Um but uh as of now this is the range of impact based on the transition that I can share with you. 34:34 34 minutes, 34 seconds So more standard asset provision yeah on the standard asset provision we 34:42 34 minutes, 42 seconds basically uh on the unsecured portfolio which is let's say micro finance which is the largest one. So currently we are 34:49 34 minutes, 49 seconds having around 172 course provisions on the all the all standard assets. So that that in entails actually that includes 34:57 34 minutes, 57 seconds two additional provision. One is that of all the standard assets we take an additional 75%. And also we have got an 35:05 35 minutes, 5 seconds additional provision of around 136 closed. So with this I think 172 provisions are already there in our 35:13 35 minutes, 13 seconds books. So our impact on the ECL going forward the floor is 5% in most of the cases excepting some where the floor is 35:21 35 minutes, 21 seconds a little bit less but since we are already continuing to make 1% additional provision on the standard assets which 35:28 35 minutes, 28 seconds is uh 75 basis point higher than what is now required as for the directs for the day. So impact maybe that will be 4% on 35:37 35 minutes, 37 seconds the march value for the day. But I think that going forward the way we are managing our assets if we can manage our 35:44 35 minutes, 44 seconds SMA 1 and SM2 books much moreently this requirement will not have that much of effect on our credit cost and I think if 35:53 35 minutes, 53 seconds I can translate these to percentages for EB the requirement is 0.25% 25% we maintain 1% which is 75 basis points 36:00 36 minutes higher like part mentioned on personal loans and on ABG it's around uh 0.4%. In 36:06 36 minutes, 6 seconds line with the RS requirements so just just to rehash everything EB you're already maintaining 1% non EB 36:14 36 minutes, 14 seconds unsecured is the only person where you have to go from 40 bits to 1%. That's correct. That's right. 36:20 36 minutes, 20 seconds Great. Um thank you sir and congrats once again. Thank you. 36:26 36 minutes, 26 seconds Thank you. We take the next question from the line of Ankit Vani from Nurula. Please go ahead. 36:35 36 minutes, 35 seconds Yeah. Hi. Thank you for the opportunity. 36:37 36 minutes, 37 seconds Uh I wanted to know that what proportion of your deposits would be government related. And uh the second question is 36:44 36 minutes, 44 seconds how should one think of the uh margin trajectory from here on? Uh should we see improvement or a 4Q? uh generally 4 36:53 36 minutes, 53 seconds is a seasonally strong quarters of can moderation from here. 37:00 37 minutes Yeah. Our should our head large banking is answering this. 37:06 37 minutes, 6 seconds So our government deposits on the kafa side would be around 6,000 crores out of the total deposits that we have deposit. 37:16 37 minutes, 16 seconds Okay. The retail composition is overall 74%. As you're seeing for the day we have improved 37:22 37 minutes, 22 seconds 69% last year it has improved to 64%. We have reduced the dependence on B deposits and majority of these B 37:31 37 minutes, 31 seconds deposits used to come from the government departments also. So that portion we have reduced it. So earlier 37:38 37 minutes, 38 seconds it was it is almost 3,200 crores quantum wise we have reduced as of the last year from that year and percentage 37:46 37 minutes, 46 seconds wise almost 7%. So the kasa share works out to around 12% 12% of kasa deposits 37:53 37 minutes, 53 seconds correct yes and on the margin trajectory so uh so uh just uh adding on to that so our TV 38:01 38 minutes, 1 second pricing is largely done or we should see cost of funds benefit following through in the coming quarter as well. 38:08 38 minutes, 8 seconds Yeah. So I think uh as we had guided uh we expected the cost of funds to continue to improve in Q4, Q1 and Q2. Uh 38:15 38 minutes, 15 seconds we have seen the improvement come through in Q1. Uh the term deposit repricing has happened. Um and therefore we had uh seen sequential improvement. 38:23 38 minutes, 23 seconds Uh and as a result the margins have gone up from 5.9% to 6.2%. The 30 basis points increase largely driven by the 38:30 38 minutes, 30 seconds cost of funds partly also due to the impact of lower slippages resulting in lower interest reversals. Right. Um as 38:38 38 minutes, 38 seconds we go through the next two quarters we do expect further improvement because there are further term deposits coming in for renewals. Uh so we do expect at 38:46 38 minutes, 46 seconds least another 10 to 20 basis points of improvement over the next two to three quarters. 38:51 38 minutes, 51 seconds 10 to 20 basis improvement on cost of fund side. 38:56 38 minutes, 56 seconds Yeah. Based on the cost of fund improvement uh on the NIS. 38:59 38 minutes, 59 seconds Okay. And uh on the credit cost front how should one think uh should we consider 4Q as our base or uh again for 39:09 39 minutes, 9 seconds as you highlighted there were lower you know interested workers as well due to lower slippages. So should we see the slippage will moderate from here or we 39:17 39 minutes, 17 seconds could see it slight slightly inch up in one place on the MFI book. 39:22 39 minutes, 22 seconds Yeah. So I think uh I think we have as I'd mentioned our X bucket collection efficiency has improved [clears throat] to 99.6% 6% for the quarter and in fact 39:31 39 minutes, 31 seconds March month was 99.7. Uh so if we are able to maintain these levels uh we definitely expect I think stabilities to continue to remain at these levels. Um 39:40 39 minutes, 40 seconds we we of course need to uh be wary of the implications of the war that's happening what exactly happens on that 39:47 39 minutes, 47 seconds front um as well as uh you know any other externalities. But based on the efforts that the team has taken and the improvement in the collection efficiency 39:55 39 minutes, 55 seconds uh we do expect these to hold at these levels and maybe improve marginly as well. 40:02 40 minutes, 2 seconds In fact remarkable what I saying is that EV has made a 40:09 40 minutes, 9 seconds remarkable improvement. So thees are almost last quarter it was 1328 it has come 40:16 40 minutes, 16 seconds down to 793 the SMA zero point I'm just checking for the day and also in theages even if you see the 40:24 40 minutes, 24 seconds drop leakages has also reduced from 940 to to 690 so the trend is still continuing so we are quite hopeful 40:33 40 minutes, 33 seconds yeah I think uh this this is important point the overall DPD pool also we have seen an improvement the EB DPD pool has 40:40 40 minutes, 40 seconds come down from 4.6% to 3.1% across SMS0 1 and two with the biggest reduction in SMS0 and that will also help us in terms 40:49 40 minutes, 49 seconds of page for the next quarter at at similar levels. 40:54 40 minutes, 54 seconds Okay. And any growth outlook on the deposit and loan growth front as I remember earlier we had guided that deposits will continue to grow faster 41:01 41 minutes, 1 second than advances but currently we are lagging. Uh so how do you think the deposit environment panning out and what would be your guidance because Yeah, 41:10 41 minutes, 10 seconds given our balance sheet, we are still running uh at a lower rate versus the industry loan growth. Uh what could be your outlook for FI 2728 for a loan and deposited growth? 41:21 41 minutes, 21 seconds So our guidance remains the same. We are practically aiming a growth of around 14 15% in the credit and the endeavor would be to have a better deposit growth rate. 41:32 41 minutes, 32 seconds But yes, a challenging factor is that the India industry has now reversed. So if you look that from November onwards 41:39 41 minutes, 39 seconds the incremental credit growth is more than the incremental deposits growth. So we have to also look into the industry 41:46 41 minutes, 46 seconds scenario accordingly also but definitely the uh whatever the guidance are there so it will continue also to highlight on 41:55 41 minutes, 55 seconds our credit growth wise the overall number is around 13%. If we exclude EVs I think the non book has grown to almost 42:03 42 minutes, 3 seconds 25%. And we know that the EB has gone through a cycle uh you know year on year it's been a contraction. We have been 42:10 42 minutes, 10 seconds able to reduce the contraction to only about 5% year on year uh compared to the industry which actually has been uh contracting much larger. So therefore 42:19 42 minutes, 19 seconds actually in EV our market share has improved even further during this last one year as well. So it you know our numbers are not exactly comparable with the peer group because of a little 42:27 42 minutes, 27 seconds larger portion of micr finance that we have in our books. And on the deposits front uh we have consistently shown higher deposit growth than advances but 42:36 42 minutes, 36 seconds this time as we mentioned consciously we have reduced the bulk deposit share and if we exclude the bulk deposit our retail deposits have grown by almost 42:44 42 minutes, 44 seconds 17.8 or roughly 18%. Uh which shows a very healthy uh growth rate. 42:50 42 minutes, 50 seconds Sure. And on the deposit market front, are we seeing any uh competition, intense competition there or is there a chance of uh you know PD rates rising 42:59 42 minutes, 59 seconds across the banking sector? Uh deposit rates rising across the banking sector. 43:06 43 minutes, 6 seconds I think the deposits competition is definitely intense. We did see in the month of March itself the deposit rates go up quite significantly being offered 43:14 43 minutes, 14 seconds by the competition. uh and therefore we have been focusing on improving the structural granular retail deposits and that's where the focus has been and we 43:22 43 minutes, 22 seconds want to remain steady on that particular strategy and therefore we took a call to not grow the bulk deposit significantly 43:29 43 minutes, 29 seconds uh during the Q4 um and that should help us going forward in terms of um optimizing our cost of funds. 43:37 43 minutes, 37 seconds Sure. Thank you. And lastly, what would be your average NCR for the quarter? 43:44 43 minutes, 44 seconds our period at LCR was around 131%. Um average LCR I think would have ranged would have been range around between 130 to 140. 43:55 43 minutes, 55 seconds Okay. So basically our margins might have been supported by some uh you know liquidity LCR coming down as well because as as far as I remember one two 44:02 44 minutes, 2 seconds we had NCR of around 200 odd percent. So that has come down gradually to 130 or right? Yeah, it's a result of the bulk 44:11 44 minutes, 11 seconds deposit coming down which is helping also on the SDR also. 44:15 44 minutes, 15 seconds Okay. Yeah, sure. Thank you for answering my question. 44:20 44 minutes, 20 seconds Thank you. We take the next question from the line of Anand Dama from MK Global. Please go ahead. 44:31 44 minutes, 31 seconds Yeah. So, thank you for the opportunity. 44:33 44 minutes, 33 seconds Uh so, one question that I had was uh you know on your credit cost. So this year should we expect a credit cost somewhere about 1.5 1.6%. 44:43 44 minutes, 43 seconds Uh now that the be stress obviously is easing out and uh uh I think the ECL impact will be largely taken uh uh 44:50 44 minutes, 50 seconds through the uh balance sheet. So is that a fair assumption in terms of trade cost for F27? 44:58 44 minutes, 58 seconds So we are keeping our guidance unchanged because if you look the last year's performance so the credit cost has substantially improved and we have ended 45:07 45 minutes, 7 seconds up at 2% for the year and going by the current trends uh in the EV especially in the EV segment the rate of recovery 45:15 45 minutes, 15 seconds and the collection efficiency for that year. So I think that there will be some improvement in the trade cost going forward but yes definitely there are 45:23 45 minutes, 23 seconds certain concerns like the war we don't know the impact how will it come and how will it impact the economy the fuel 45:30 45 minutes, 30 seconds price the availability and then the cascading effects on the other sectors of the economy this is there but as as on I would say that going by the current 45:39 45 minutes, 39 seconds trend the economy is moving and the portfolio of our bank is also showing signs of lot of green shoots for the day 45:47 45 minutes, 47 seconds I think that we can keep that guidance and we will be trying to achieve as close to that. 45:53 45 minutes, 53 seconds Our guidance you have mentioned was between 1.6 to 1.7% by the exit of FI27 45:59 45 minutes, 59 seconds which is by Q4 FI27 and uh we we will still endeavor to work towards that. 46:05 46 minutes, 5 seconds Okay. And are we largely done with the sale of NPA's uh pool now? 46:11 46 minutes, 11 seconds So it is an option you see it is a part of NPA management. uh option is neither closed nor we are we are following it 46:19 46 minutes, 19 seconds also so we have not yet crystallized our thing so this is some opportunities we will be looking if we get some good prices of the of our books we may 46:27 46 minutes, 27 seconds prepone the cash flow that's the only thing that's the only advantage I actually said uh so it is something as a 46:34 46 minutes, 34 seconds part of management it is till now I can say that we not crystallized on that but at the same time the options are open I 46:41 46 minutes, 41 seconds think the two two other factors the EPA the slippages has come down. Uh the collection efficiency has picked up. Uh 46:48 46 minutes, 48 seconds the ARC sale that we did in Q3 prior to that we did three years ago. Uh so it's not something that will be done every quarter but as part mentioned this is an option that is available for the bank. 46:59 46 minutes, 59 seconds Um and we will look at it whenever we need to do any kind of an NPA management. uh but there are no immediate plans as of 47:06 47 minutes, 6 seconds and so lastly in FI27 with that the credit cost will come down should we expect an ROI above 1%. 47:14 47 minutes, 14 seconds So we have started the trajectory that much we can say so you see that from 0.2% in September we improved to 0.4 4 47:23 47 minutes, 23 seconds in December and now 1.1 uh the endeavor is there uh we have not yet changed the guidance for that day 47:31 47 minutes, 31 seconds and going by whatever the green shoots we are happy they're seeing in the EV segment if that continues and we are 47:40 47 minutes, 40 seconds also focusing on the other income front especially in the wholesale uh segment so with all these things and the other 47:48 47 minutes, 48 seconds income by reducing the operating cost on account of cases the sales that we uh taken for the day I I think that we 47:56 47 minutes, 56 seconds will try to achieve as near to that that's much I can say definitely a challenge but we are not changing the guidance as of now just to reiterate the 48:05 48 minutes, 5 seconds guidance we had said was 1.6 to 1.8% 8% of ROA by the exit of FI27 which is Q4 FI27 they give or take 10 basis points 48:13 48 minutes, 13 seconds so we will work towards uh meeting those numbers sure that that's very helpful thanks a lot 48:21 48 minutes, 21 seconds thank you we take the next question from the line of Netan Agarwal from Modilos while Financial Services Limited please 48:29 48 minutes, 29 seconds go ahead yeah uh hi uh hi hi 48:38 48 minutes, 38 seconds Yeah. Hi. Uh good evening everyone and congrats on a good quarter. A few questions I have like uh firstly on the NI growth itself if I see like NI growth 48:46 48 minutes, 46 seconds this quarter is at 4% Q on Q growth and this has come in despite pretty strong advances growth this quarter even the previous quarter we had a a decent 48:55 48 minutes, 55 seconds pickup and margins have improved in both the quarters. So any any reason why this growth is lacking the advances growth despite such a margin expansion? 49:05 49 minutes, 5 seconds Let me just tell you the NIA first of all the interest income last year was affected due to the report rate cuts. So 49:12 49 minutes, 12 seconds almost 125 basis point that cuts were there in the report rates. Number two is that we also rationalized our own MCLR. 49:21 49 minutes, 21 seconds So that was the effect was almost 200 basis point on that account for the day and the if you look at the balance sheets the advances have taken place 49:29 49 minutes, 29 seconds mostly the incremental growth 50% of the incremental yearly growth has taken place in the last quarter so for the rest the effect we will we have not got 49:39 49 minutes, 39 seconds in that quarter itself so because many loans were dispersed say in the month of March or end of March for that year so the effect of n was not given on that 49:48 49 minutes, 48 seconds year but one good thing is that we could actually assess the declining trend of the repo cut. If you look at the entire 49:56 49 minutes, 56 seconds figure for that day. So uh because January also there was a 25 research point was there I have to pass on to my 50:04 50 minutes, 4 seconds all the borrowers for the day but still that we maintained at the same level at 5,428 the service 5,431 50:11 50 minutes, 11 seconds during the uh previous quarter. So the effect of this increase what you're saying is that we'll be seeing in during this quarter I can say 50:19 50 minutes, 19 seconds yeah I think specifically for your question Nin three four points one is the advantage growth came but that growth was rear ended so we will see the 50:27 50 minutes, 27 seconds benefit of that in the coming quarter uh the second is you know this quarter had roughly two days less I think just from a days count perspective there is 50:36 50 minutes, 36 seconds an indication as well uh third is the repo rate reduction that happened in December of 25 basis points which had a 11 basis points impact on 50:43 50 minutes, 43 seconds our book roughly 46% of the book got impacted uh but of course partly offset by the growth that we saw the momentum we saw especially in the EB growth that 50:52 50 minutes, 52 seconds came through I think these are three or four factors leading to the 4% improvement in the NI for this quarter 50:59 50 minutes, 59 seconds okay got it and the other observation is around the collection efficiency if I see like for the month uh of March and for the quarter the gap has widened like 51:08 51 minutes, 8 seconds while there there used to be like a say last quarter was a 20 basis point gap if I look at the collection efficiency excluding areas at 98 and 98.2. This 51:16 51 minutes, 16 seconds time uh for the month of March it has stood at 98.6 versus 99.3 for the quarter. So how should one look at it? 51:24 51 minutes, 24 seconds Has March deteriorated uh over the 3 months of of this quarter or uh how should one read this? 51:31 51 minutes, 31 seconds No no no. So I think the way it can be read is that we actually saw improvement in the collection efficiency started to come through the month of November last 51:39 51 minutes, 39 seconds year. So uh so last year October was impacted quite heavily uh because the overleveraging saga was still paying out 51:46 51 minutes, 46 seconds but from November onwards and mid of November is when we started seeing the improvement come through um and therefore I think u you know we we are 51:54 51 minutes, 54 seconds seeing the difference between the quarter was the difference between the months uh to have a difference in the basis points right if I may just add to 52:02 52 minutes, 2 seconds what Ravi spoke in our month of November onward we have been clocking current xucket collections at 99.6 six onward 52:09 52 minutes, 9 seconds when we did in January and February month at 99.65 and 99.7 March last day was a holiday 52:17 52 minutes, 17 seconds which impacted as we have a holiday billing and that resulted into 98.9 number or something and that overall we finished the quarter at a much better 52:25 52 minutes, 25 seconds number on the current bucket number at a 99.6. So overall there is nothing to worry in terms of the March overall not 52:32 52 minutes, 32 seconds holding uh compared to the entire quarter but the quarter numbers of March you have to compare it to quarter three. 52:38 52 minutes, 38 seconds Yeah because November December December also saw an improved position and therefore December to March you may not see a big delta but quarter and quarter you'll see a bigger data. Till I think 52:47 52 minutes, 47 seconds 15th November the situation was not that much encouraging but definitely from 15th November onwards the collection efficiency has improved a lot and 52:55 52 minutes, 55 seconds steadily being maintained and that also you can see as part of your SMA zero improvements in EB business as across SMA 1 and two as well. All the buckets 53:04 53 minutes, 4 seconds have come down including the slippage number that clearly shows from the November month the progress has been so significant that all the buckets 53:11 53 minutes, 11 seconds including the slippages overall have come down to a substantial amount. 53:16 53 minutes, 16 seconds Right. And the the other question is around the profitability overall wherein we are indicating 1.6 to 1.8 ROI by Q4 53:24 53 minutes, 24 seconds 27. So how much of this improvement is hinged around MFI now now that the collection efficiency has already improved to like uh near normalized 53:33 53 minutes, 33 seconds levels now already and how much of it is is like a further expansion they given and recovery in the uh non MFI 53:40 53 minutes, 40 seconds businesses. So can you give some profitability of nonfi business therefore some buy some split or some color around that to understand this improvement in ROI better. 53:51 53 minutes, 51 seconds Yeah. So I think three or four key factors broad factors. One is the credit cost improvement as we mentioned from the current 2% level to 1.6 1.7. So we 53:59 53 minutes, 59 seconds do see the credit cost itself to provide further uplift on the ROA. Second is as mentioned we are focusing on generating 54:08 54 minutes, 8 seconds higher other income and this will be the result of further capabilities which are coming in our secured asset businesses especially wholesale banking. Uh so as 54:15 54 minutes, 15 seconds these come in we should be able to see some improvement there. Uh we are also expecting as disbburments pick up improvement in the processing fees uh 54:22 54 minutes, 22 seconds and the momentum of the third party products income to continue. So I think other income will be one of the key drivers. uh we do expect at least about 10 basis points to come to there in the 54:31 54 minutes, 31 seconds other other uh uh income and uh operating expenses as we mentioned like PSLC cost itself if that reduces I think 54:38 54 minutes, 38 seconds we should be able to get some delta from there so these are the two or three key factors um overall business momentum is important and I think we'll continue to 54:46 54 minutes, 46 seconds maintain that momentum um the good thing also is that as we had set up a target of around 58% secured mix by uh March 27 54:55 54 minutes, 55 seconds we are almost near that now itself So we met this that target nearly that a year in advance and therefore our growth rates across EB and non EB can start to 55:04 55 minutes, 4 seconds converge to some extent right and uh Raj one one like curious question curiosity that I have is around 55:13 55 minutes, 13 seconds the LCR ratio rather because we have been able to maintain one of the better LCRs in the industry even this quarter 55:20 55 minutes, 20 seconds after this decline at 130 140 average that you talked about is also a very very healthy number. So what really differentiates Bundan Bank LCR versus 55:28 55 minutes, 28 seconds the other large private bank because if I compare on the retail mix of deposits or CD ratio there is not much of a difference. So why the LCR numbers are 55:37 55 minutes, 37 seconds are so much better not just in this but one is that I the immediate answer is 55:44 55 minutes, 44 seconds that our dependence on the deposits have come down. So the volatility has been contained or has been arrested to a 55:52 55 minutes, 52 seconds large extent requiring less amount of uh LCR to be maintained. Yeah. 55:57 55 minutes, 57 seconds I think the other factor is that we we have a large portion of deposits coming from retail. Uh so our deposit share is much larger and that has a much lower 56:05 56 minutes, 5 seconds runoff factor as you know between a 5% to 10%. Um we have a lower share from corporate deposits which have a higher uh runoff factor of 40% or 75% or 100%. 56:16 56 minutes, 16 seconds Therefore I think to that extent there will be difference in terms of comparability across the and if you add the the non-colable part of the B deposit so retail plus 56:25 56 minutes, 25 seconds non-colable adds up to more than 95%. So the fluctuation and the volatility is concentrated more on the balance. So 56:32 56 minutes, 32 seconds that dependence has come down and that has helped us to maintain a better model. Got it. Got it. Thank you so much. 56:39 56 minutes, 39 seconds Thanks for all the insights. 56:43 56 minutes, 43 seconds Thank you. We take the next question from the line of Sani Goyel from ICAC Securities. Please go ahead. 56:51 56 minutes, 51 seconds Yeah. Hi sir, this is J Mundra. Um so I just want I heard your opening comments on ECL shortfall and 57:00 57 minutes Oh Mr. Mundra I do apologize to interrupt you there. Your audio is not clear. Could you please use your handset? 57:07 57 minutes, 7 seconds Yeah. Hi. Is this better? Yes. Yeah. Okay. 57:10 57 minutes, 10 seconds Yes. Uh so Rajiv my question is uh you mentioned that there is a shortfall of let's say 1 1200 uh odd crores in the 57:18 57 minutes, 18 seconds ECL transition and we have a credit cost uh guidance of 1.6 6 1.7 57:24 57 minutes, 24 seconds uh given that now ECL provides that the transition can be adjusted through reserves would you be uh would you I 57:32 57 minutes, 32 seconds mean uh would you be um let's say if you have buffer you can still uh flow in the P&L and then you can adjust in the 57:41 57 minutes, 41 seconds reserves or you would still uh like to minimize that shortfall. I just wanted to understand your thoughts on those. 57:48 57 minutes, 48 seconds No, so I think we are as we said we are assessing look the latest circular came yesterday so we are actually evaluating what the latest circular allows as we 57:56 57 minutes, 56 seconds understand is to take it through the retained earnings and also allows the period of five years with which it could be spread out so therefore um you know 58:04 58 minutes, 4 seconds we will look at the flexibility that that offers and how exactly it impacts the balance sheet also the assessment we did of the number we shared was based on December balance sheet we will have to 58:13 58 minutes, 13 seconds reassess based on the latest balance sheet and of course how structurally we are able to change the balance sheet over the uh over the course of the year. 58:19 58 minutes, 19 seconds So these are the various factors that we'll have to assess to be able to take the final approach on the thing. 58:25 58 minutes, 25 seconds Okay. Now I mean now the circular allows you to adjust through reserves. Would you be keen to minimize the shortfall or 58:34 58 minutes, 34 seconds would you be keen to adjust it through reserves because that is allowed. I mean that is the broad question. 58:40 58 minutes, 40 seconds I think it will also depend upon the profitability appetite that comes through during the year. Of course, wherever there's opportunity existing, we will try to shore up our provisions. 58:48 58 minutes, 48 seconds Uh but as of now, this is what uh is the broad approach is estimate roughly on the basis of Q3. 58:57 58 minutes, 57 seconds This is a December number. So March number and going forward also it needs to be crystallized. Maybe the react may have a lesser effect. 59:05 59 minutes, 5 seconds Right. Secondly sir on your write off uh on provisioning so let's say if 100 rupee slips out of EV is there any set 59:14 59 minutes, 14 seconds uh uh write set provisioning policy because I think you have to provide 100 by uh year end in 365 days. So do you 59:23 59 minutes, 23 seconds follow 2525 or is there any pattern is there any provisioning policy for MFI? 59:30 59 minutes, 30 seconds Yes, we we do have a provisioning policy but we just maintain the PCR if you look at 59:36 59 minutes, 36 seconds our that PCR including the uh SR for that day we are maintained at 74.5%. 59:43 59 minutes, 43 seconds So that that is the perhaps we want to maintain it and to maintain that PCR whatever the additional provisions are 59:51 59 minutes, 51 seconds required we do it once we write off our portfolio. So that is the the the main theme is that we keep the PCR as the 59:58 59 minutes, 58 seconds target point that need to be maintained and based on that whatever the shortfalling provisions on account of 1:00:05 1 hour, 5 seconds write offs are there so it deserve made for we take a more conservative position than what the IR requires I think for us 1:00:13 1 hour, 13 seconds uh broadly I think at 180 DPD itself we take almost 100% uh provisions for the EV portfolio we accelerate mostly we 1:00:21 1 hour, 21 seconds accelerate right that Good. And so lastly um the the revised circular says that if there 1:00:28 1 hour, 28 seconds is any exposure which has government guaranteed uh linkages it can have very um small 1:00:37 1 hour, 37 seconds stage one stage two provisions. So any of your EB portfolio either through CGFMU or some other scheme do they 1:00:45 1 hour, 45 seconds qualify for that kind of a status or uh or we or or no? 1:00:55 1 hour, 55 seconds So for EB portfolio currently we do not have any government back guarantee but we are evaluating in terms of how do you want to progress it from here as of now 1:01:04 1 hour, 1 minute, 4 seconds uh there is nothing which is guaranteed back by the government currently we don't have any CBS cover is for EB that option is open for us so we'll be 1:01:12 1 hour, 1 minute, 12 seconds evaluating and lastly Vishal since you are there on the call if you can talk about your uh your your resignation I thought 1:01:20 1 hour, 1 minute, 20 seconds everything is going on very well I mean you have this almost turn around or almost normalized level of slippages. So 1:01:28 1 hour, 1 minute, 28 seconds you know uh what what what happened? Um thank you. I'll speak to you offline on this one. 1:01:36 1 hour, 1 minute, 36 seconds I think it's a personal career advancement. I think yes it's better to go when you ask why are you going I'll leave it at that. So bank 1:01:44 1 hour, 1 minute, 44 seconds is now I would say much much more process driven rather than person driven. So uh I I said that we should 1:01:53 1 hour, 1 minute, 53 seconds look at it further. We have brought many changes in the EV rather we have transformed the model of the EV business 1:02:01 1 hour, 2 minutes, 1 second and lot of technology and other inputs have been made uh and Vishal has implemented it very meticulously. So it 1:02:10 1 hour, 2 minutes, 10 seconds is his personal career growth he has aspired for and we wish him all the best. 1:02:17 1 hour, 2 minutes, 17 seconds Sure sir. Sorry sir if I can ask one more question. There was media reports on you know some activity going at 1:02:24 1 hour, 2 minutes, 24 seconds promoter level. Is there any anything that you can add? 1:02:28 1 hour, 2 minutes, 28 seconds So these are all rumors. So I have already we have already said for that here these are all rumors. So nothing is going at the hold level. Nothing is 1:02:37 1 hour, 2 minutes, 37 seconds going to affect the shareholding pattern of the bank. Uh if something is going at the CIC level that is their cause. It anyway is not going to affect the bank. 1:02:47 1 hour, 2 minutes, 47 seconds Right. Very very clear sir. Thank you and all the very best. Thank you. Thank you. 1:02:54 1 hour, 2 minutes, 54 seconds Thank you. We take the next question from the line of Rahul Kumar from Vicaria fund. Please go ahead. 1:03:01 1 hour, 3 minutes, 1 second Yeah. Hi uh Rajiv. Just one question on this uh employee cost as well. Uh I think if I exclude the uh base quarter 1:03:09 1 hour, 3 minutes, 9 seconds number from the 3Q the impact of labor code I think I see a 14% increase in the employee cost QQ. So what led to that? 1:03:20 1 hour, 3 minutes, 20 seconds So I can say that with 73 cr additional employee cost was there during this quarter. Uh this is a common account. 1:03:28 1 hour, 3 minutes, 28 seconds Number one is that yes definitely uh this month there was large number of holidays and we have kept the bank open 1:03:36 1 hour, 3 minutes, 36 seconds because to reduce for the collections and here we have kept the bank open for two three days for which we have to pay 1:03:43 1 hour, 3 minutes, 43 seconds some additional salaries. uh to the employees as per the rules of the bank. 1:03:49 1 hour, 3 minutes, 49 seconds So that has actually increased in the employee cost for that otherwise all other costs are in line with what we have uh incurred in the previous quarters. 1:03:59 1 hour, 3 minutes, 59 seconds So regarding the new labor code related impact we had already taken in Q3 there was no incremental impact that came from Q4. So as part mentioned this was 1:04:08 1 hour, 4 minutes, 8 seconds because of couple of days additional that people had worked and the salary impact of that and some normal salary this 1:04:16 1 hour, 4 minutes, 16 seconds okay okay and uh if I look at the reported ease actually uh they have increased in this quarter versus the 3Q despite you know this repo cut impact. 1:04:26 1 hour, 4 minutes, 26 seconds So what drove that? 1:04:30 1 hour, 4 minutes, 30 seconds Yeah, I think there are two things. One is as we had done the ARC sale in Q3, a large chunk of the NPA portfolio had gone away and therefore you get the 1:04:39 1 hour, 4 minutes, 39 seconds immediate benefit on the E um on the overall portfolio in the next quarter, right? Because um you know the NPA book 1:04:46 1 hour, 4 minutes, 46 seconds was actually suppressing the E. So that was one of the key reasons. Apart from that uh there was as we mentioned 1:04:53 1 hour, 4 minutes, 53 seconds improvement in the EB disbbursement as well. And uh as the eBay book increased by almost 8% on a quarteronquarter 1:05:01 1 hour, 5 minutes, 1 second basis, total advances increased by 6% on a quarter quarter basis. Um which meant that overall mixed perspective there were some further benefits that came 1:05:09 1 hour, 5 minutes, 9 seconds through on the use. I think those are the two key reasons. 1:05:13 1 hour, 5 minutes, 13 seconds Okay. Okay. Fair enough. And the last question which I have was uh on the slippages front. I think uh even though you know the Xucket collection 1:05:22 1 hour, 5 minutes, 22 seconds efficiency has improved quarter on quarter uh in this uh but I uh but you were trying to uh uh guide us on the 1:05:31 1 hour, 5 minutes, 31 seconds slippages front that it will be similar to what uh you know it it is it was in Q4. So is there something on the ground 1:05:38 1 hour, 5 minutes, 38 seconds which is uh different versus or which you expect to be uh worsening in this quarter? 1:05:47 1 hour, 5 minutes, 47 seconds No no we we mentioned that slippages will basically hold to improve right. So that's the range that we are given. Uh so we we we we would expect to have some 1:05:55 1 hour, 5 minutes, 55 seconds gradual further improvement as well come through but we are also very as we mentioned of some of the external risks which are coming through especially we don't know fully if the war related 1:06:04 1 hour, 6 minutes, 4 seconds impact will come through in what shape and form. Uh so we're keeping some bit of conservatism there but at the end of the day based on the collection efficiency improvement we we are fairly 1:06:12 1 hour, 6 minutes, 12 seconds confident on the level of slippages uh that we have achieved as well as what further we can improve. 1:06:19 1 hour, 6 minutes, 19 seconds Okay. Okay. Thank you. 1:06:23 1 hour, 6 minutes, 23 seconds Thank you ladies and gentlemen. In the interest of time and fairness to others we request you to restrict to one question per participant. 1:06:33 1 hour, 6 minutes, 33 seconds We take the next question from the line of piran engineer from CLSA. Please go ahead. 1:06:39 1 hour, 6 minutes, 39 seconds Yeah. Hi, thanks for the followup. Just uh to reconfirm what Parasa sir said, MFI slippages were 690 crores this quarter. 1:06:49 1 hour, 6 minutes, 49 seconds MFI Yeah. MFI 690 690 right? Yeah. 1:06:55 1 hour, 6 minutes, 55 seconds Slippages 690. Yeah. And the recoveries were 142. 1:07:01 1 hour, 7 minutes, 1 second So next netes is 548. 1:07:06 1 hour, 7 minutes, 6 seconds Okay. Okay. Yeah, that that's it from my end. Thank you. 1:07:11 1 hour, 7 minutes, 11 seconds Thank you. We take the next question from the line of Jan Karote from Access Capital. Please go ahead. 1:07:20 1 hour, 7 minutes, 20 seconds Uh thanks for the followup sir. Sorry this question has been asked previously. 1:07:24 1 hour, 7 minutes, 24 seconds uh when you say the margins can improve by another 15 to 20 basis points uh that is on the 4Q number or that is on the full year number full year number being 1:07:33 1 hour, 7 minutes, 33 seconds 6.1 and just a corary to that question it means if your uh uh loans are growing 1:07:40 1 hour, 7 minutes, 40 seconds at uh 1415 NI growth next year should be ahead of that is that a fair assumption 1:07:48 1 hour, 7 minutes, 48 seconds so the the n improvement that I mentioned was frequently on quarter numbers so our quarter numbers are 6.2% 1:07:56 1 hour, 7 minutes, 56 seconds and on that we expect 10 to 15 to 20 basis points improvement um spread over the next two to three quarters. So the 1:08:03 1 hour, 8 minutes, 3 seconds the guidance as we have been mentioning is by the exit of 27 we expect names to be around 6% on total assets which means 1:08:11 1 hour, 8 minutes, 11 seconds on earning assets basis will be around 6.5%. Um so we do have a line of sight of the next 10 to 20 basis points so we need to find another 10 basis points. So 1:08:20 1 hour, 8 minutes, 20 seconds that's the aim that we're working on. Of course on a best effort basis. 1:08:24 1 hour, 8 minutes, 24 seconds Uh thank you sir. Just if I do the math 10 to 15 or even 20 basis points on names 10 on fees another 20 on credit 1:08:33 1 hour, 8 minutes, 33 seconds cost. Uh is there something I'm missing because we need 70 bits post tax which is almost 90 uh pre-tax. So is there 1:08:43 1 hour, 8 minutes, 43 seconds something I'm missing for the RA waterfall? 1:08:47 1 hour, 8 minutes, 47 seconds So ROA as we said we already touched 1.1% and our aim is to reach 1.6 to 1.8% 8% right give or take 10 basis points uh 1:08:55 1 hour, 8 minutes, 55 seconds by the Q4 or FIR 27 uh so say there's a journey of about 50 to 60 basis points further that we need to climb uh some of 1:09:03 1 hour, 9 minutes, 3 seconds these components that we mentioned are the ones which will help us right in terms of meeting that the timing of it will depend upon every quarter to quarter how exactly make a progress but 1:09:11 1 hour, 9 minutes, 11 seconds we have to also be aware of any kind of a external shocks or risk etc that could come through or any headwinds that could come through so you know we will 1:09:19 1 hour, 9 minutes, 19 seconds definitely try and see how we can get through these numbers satisfy those events. Thank you sir and all the best. 1:09:28 1 hour, 9 minutes, 28 seconds Thank you. 1:09:30 1 hour, 9 minutes, 30 seconds We take the next question from the line of Dave from Hot Power Securities. Please go ahead. Yes. Good afternoon gentlemen. 1:09:38 1 hour, 9 minutes, 38 seconds [clears throat] Congratulation on the excellent set of numbers. Can you listen? 1:09:46 1 hour, 9 minutes, 46 seconds Yes. Thank you. 1:09:48 1 hour, 9 minutes, 48 seconds Yes. So u as far as my knowledge goes uh and I how far I understand uh that you 1:09:57 1 hour, 9 minutes, 57 seconds are incre trying to increase your share of uh secured book right so by the end of FI27 1:10:06 1 hour, 10 minutes, 6 seconds are you trying to target increase share of secured books in your total book portfolio and what would be that 1:10:13 1 hour, 10 minutes, 13 seconds percentage and if you uh intend to increase the uh secured portion of your portfolio 1:10:21 1 hour, 10 minutes, 21 seconds in comparison to other e book EV books or whatever that unsecured portions are uh what would be the effect on your 1:10:28 1 hour, 10 minutes, 28 seconds names is it going to come down from 6.2 to to or something. 1:10:37 1 hour, 10 minutes, 37 seconds I mean I mean if you if you are if you are trying to increase your secured uh loan book portfolio share uh like the 1:10:46 1 hour, 10 minutes, 46 seconds other banking units or banking companies their names are far below your 1:10:54 1 hour, 10 minutes, 54 seconds from your names. So if you trying to converge into that that part are your question. Mhm. 1:11:02 1 hour, 11 minutes, 2 seconds So let me let me just explain. So first of all we had a target of doing a secure and secured business of 5842. 1:11:11 1 hour, 11 minutes, 11 seconds So that's what our goal as FY27 exit of FY27 we have projected a secured 1:11:18 1 hour, 11 minutes, 18 seconds book of 58% and uh and 42% unsecured. So we have already achieved that or near to achieving that and if you see my Q4 1:11:27 1 hour, 11 minutes, 27 seconds results we are already at 56% and uh another 44% is unsecured for it. The 1:11:34 1 hour, 11 minutes, 34 seconds second part is that so 56 to 58 will not have much impact on the new so and let me tell you that we are keeping our 1:11:43 1 hour, 11 minutes, 43 seconds trajectory or the aim that our EB will continue to be oneird of our uh total portfolio. So in both way the unsecured 1:11:51 1 hour, 11 minutes, 51 seconds books the EV book will also grow and the secured books will also grow. The question of the lee as far the neem is 1:11:58 1 hour, 11 minutes, 58 seconds concerned for the days the EB book if the del the main major problem of the EV book if you look in the past year was 1:12:05 1 hour, 12 minutes, 5 seconds the delicacy level or the NP level and because that's where the interest reversals took place and where the mean 1:12:13 1 hour, 12 minutes, 13 seconds was largely affected. If you can continue even with this 35% share and maintain the presence I would say the 1:12:22 1 hour, 12 minutes, 22 seconds NPA levels or the SMA booth and the delinquency level and if you continue to improve it further it will not have any much impact on the mean as for the year. 1:12:31 1 hour, 12 minutes, 31 seconds So again if there is any shortfall let me again tell you about uh our uh our 1:12:38 1 hour, 12 minutes, 38 seconds directions for that year that we are now focusing on the other income of the secured book. So if 1:12:46 1 hour, 12 minutes, 46 seconds there is any shortfall in the mean on account of the growth of the secured book it will get compensated on the 1:12:53 1 hour, 12 minutes, 53 seconds other income. So overall mean plus other income what we have projected is around 6.2 and 1.5 I think 6 and 1.5 7.5 so 1:13:03 1 hour, 13 minutes, 3 seconds that will remain intact that is our so if somewhere if you say that if you come out at 5.9 or 5.8 1:13:10 1 hour, 13 minutes, 10 seconds on our uh need. So the other income will also go by 20 30 basis point more in that segment. So overall that trajectory 1:13:18 1 hour, 13 minutes, 18 seconds of 7.5% we will try our best to maintain it. 1:13:27 1 hour, 13 minutes, 27 seconds Okay. And uh for going forward in say within 5 years do you continue to stick 1:13:34 1 hour, 13 minutes, 34 seconds with that proportion of 58% 42% or there would be something I mean long-term any 1:13:42 1 hour, 13 minutes, 42 seconds goal or target that you are continuously pursuing to achieve 42 what 1:13:49 1 hour, 13 minutes, 49 seconds correct currently that ratio remains. It is again the experience that we will see we will have to strategize or we have to 1:13:58 1 hour, 13 minutes, 58 seconds change our strategy at that point of time. The reason for going to secular both as we have told that there were two 1:14:05 1 hour, 14 minutes, 5 seconds three reasons. The first one was that we were too much on the unsecured books and we are a universal bank. It uh the 1:14:13 1 hour, 14 minutes, 13 seconds depositor's confidence is very important. So that's why a secular growth in all the advances comprising secured and unsecured books is 1:14:21 1 hour, 14 minutes, 21 seconds necessary. This is the first thing why we have shifted. Number two because now my portfolio is also becoming much much 1:14:29 1 hour, 14 minutes, 29 seconds stronger than what we had been a year or two years before for that. But this is one thing. So currently definitely we 1:14:37 1 hour, 14 minutes, 37 seconds have not thought but again it will all depend on our experience. So uh we hope that uh things like corona or other 1:14:47 1 hour, 14 minutes, 47 seconds things will not happen or even this war would also end there will not an impact. 1:14:52 1 hour, 14 minutes, 52 seconds So it will depending it will completely depend on the experience that we gather going forward but as of now as I've told 1:14:59 1 hour, 14 minutes, 59 seconds you that we want to be remain a leader in the EV segment and we continue to do that. So EV segment is definitely a 1:15:07 1 hour, 15 minutes, 7 seconds focus area. So we have seen an 8% growth Q1 Q but definitely our secured book has grown at 25%. So the focus this year is 1:15:15 1 hour, 15 minutes, 15 seconds on the other income part from the secured group not only on the interest income and along with a reasonable growth in the EV segment also input 1:15:24 1 hour, 15 minutes, 24 seconds grade cost and with the input grade cost. Yes and with the input. 1:15:30 1 hour, 15 minutes, 30 seconds Thank you ladies and gentlemen. We take that as the last question and conclude the question and answer session. I now hand the conference over to the management for their closing comments. 1:15:44 1 hour, 15 minutes, 44 seconds Thank you everyone uh for joining and uh we hope that you continue to place the trust on our banks. Thank you so much. Thank you. 1:15:52 1 hour, 15 minutes, 52 seconds Thank you on behalf of Bundan Bank. That concludes this conference call. Thank you for joining us.