Bank of India — Q3 FY26

Bank of India Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=-aKKUWUUvtg Published: 3 months ago

0:00 Good evening ladies and gentlemen. I'm Gorab Gaar from Concept PR. On behalf of Bank of India, I extend a warm welcome to all the esteem analysts who have 0:08 8 seconds joined us today in person as well as those who will who have joined us virtually from different cities across India. We are pleased to announce Bank 0:15 15 seconds of India's financial results for Q3 FI26. I would like to now introduce the management of Bank of India who have 0:23 23 seconds joined us for today's analyst meet. Sri Rajnish Karnatak MD and CEO. Sri PR Raja Gopal Executive Director, Sri Subraat 0:32 32 seconds Kumar, Executive Director, Sri Rajiv Mishra, Executive Director and Sri Pmote Kumar Duidi, Executive Director. We will 0:41 41 seconds now begin the analyst briefing. To start, I would now like to invite Sri Rajnish Karnataka to address this gathering after which we will open open the floor for Q&A. Sir, over to you. 0:52 52 seconds Thank you. 0:55 55 seconds Yeah, thank you so much. Uh so ladies and gentlemen uh good evening and a very happy new year to all of you. As uh I 1:03 1 minute, 3 seconds share with you the financial results of the bank for Q3 FI26, it is my pleasure to welcome each one of you uh to the 1:10 1 minute, 10 seconds today's analyst meet. Uh thank you uh for joining here as we step into 2026 1:17 1 minute, 17 seconds calendar year 2025 stands behind us as a year marked by significant global uncertaintity and heightened geopolitical tensions. 1:28 1 minute, 28 seconds Against this backdrop global GDP growth is expected to moderate to 2.6% as per 1:36 1 minute, 36 seconds the latest World Bank estimates. For India, the year has been one of resilience and opportunity. Despite the 1:44 1 minute, 44 seconds global headwinds, India has become has around world's fourth largest economy uh 1:50 1 minute, 50 seconds surpassing Japan supported by targeted policy measures for exporters, GST rationalization and an expanding network 1:58 1 minute, 58 seconds of trade agreements. India has steadily strengthened its global competitiveness. 2:04 2 minutes, 4 seconds Reflecting this momentum, the World Bank and RBI have projected India's full year GDP growth at a robust 7.2% and 7.3% 2:13 2 minutes, 13 seconds respectively. The RBI has adopted proactive stance by implementing uh the rate cuts and reducing the CR thereby 2:20 2 minutes, 20 seconds ensuring adequate liquidity in the financial system. key regulatory initiatives including the proposed 2:27 2 minutes, 27 seconds adoption of the expected credit loss framework, proposal for implementation of the revised Bessel 3 capital adequacy 2:35 2 minutes, 35 seconds norms and the transition to a risk-based deposit insurance premium are aimed at further strengthening uh resilience 2:42 2 minutes, 42 seconds improving risk management and enhancing the competitiveness of the India's banking sector. We are pursuing a calibrated approach to credit growth. 2:51 2 minutes, 51 seconds Bank continues to invest in its IT infrastructure and strategic partnerships towards improving operational efficiency and delivering a 2:59 2 minutes, 59 seconds superior customer experience. This balanced emphasis on business growth and assurance will support consistent 3:06 3 minutes, 6 seconds profitability and reinforce resilience in the evolving environment. 3:12 3 minutes, 12 seconds My speech will be in three parts. The first part being the various initiatives that the bank has taken during the quarter. The second part would be the 3:20 3 minutes, 20 seconds business numbers and the third part would be the profitability and the asset quality. As regards the various initiatives that we have taken, the bank 3:27 3 minutes, 27 seconds has implemented the CTS continuous clearing which is now live and facilitates faster and near realtime check clearing for all our customers. 3:38 3 minutes, 38 seconds The second initiative is with respect to the introduction of the BOI suraki scheme wherein financing scheme for agriculture sector farmers and agri 3:47 3 minutes, 47 seconds entrepreneurs is there for the solar irrigation system, solar cold storage and food and agrop processing etc. The 3:55 3 minutes, 55 seconds third initiative is that the bank has introduced a bouquet of products designed for the gig workers. Uh these include the number one the gig grow loan 4:04 4 minutes, 4 seconds which is like a MSME loan to the gig workers. The second is the gig gear up loan which is like a retail loan uh to the gig workers which is in form of a 4:13 4 minutes, 13 seconds personal loan or a vehicle loan that kind of thing. The fourth product that we have introduced with respect to the introduction of two new credit card 4:20 4 minutes, 20 seconds variants. One is the Celestia credit card which is a rupe platinum contactless metal card with a single 4:27 4 minutes, 27 seconds block multiple debit card feature. This card is designed for high net worth individuals and with elevated experience 4:35 4 minutes, 35 seconds and superior services. The second thing within the card is the Rupe women's credit card. This is again a credit card designed for women with product features 4:44 4 minutes, 44 seconds exclusively catering to the woman's needs. So the next initiative that we have taken during the quarter is the BOI 4:51 4 minutes, 51 seconds CSR trust which is the Bank of India corporate social responsibility trust which the bank has partnered as our social foundation trust for our both CSR 5:01 5 minutes, 1 second activities whether they are internal or external CSR activities. So the second part of this uh speech is with respect to the business numbers. Here I would 5:09 5 minutes, 9 seconds like to say that uh the first one being the global business has grown by nearly 12.54 cr% on a YI basis from 14.46 lakh 5:18 5 minutes, 18 seconds crores in December 24 to 16.27 lakh crores in December 25 with an incremental growth of nearly 1 lakh 5:25 5 minutes, 25 seconds 81,000 crores. Global advances of the bank have increased by 13.63% 63% on a YI basis from 6.51 lakh crores in 5:34 5 minutes, 34 seconds December 24 to 7.40 lakh crores in December 25 with an incremental growth of nearly 88,000 crores. 5:42 5 minutes, 42 seconds Global deposits of the bank have also increased by 11.64% on a Yi basis from 7.94 lakh crores in December 24 to 8.87 5:51 5 minutes, 51 seconds lakh crores in December 25 with an incremental growth of nearly 92,000 crores. Domestic growth advances have increased by 15.16% on a YI basis from 6:01 6 minutes, 1 second 5.46 lakh crores in December 24 to 6.29 lakh crores in December 25. 6:08 6 minutes, 8 seconds Ram advances which is retail agriculture and MSME advances they have also increased by 18.05% on a YI basis from 3.12 lakh crores in 6:17 6 minutes, 17 seconds uh December 25 to 3.65 65 lakh crores as on December 20 uh December 25 as against 6:24 6 minutes, 24 seconds December 24 number of 3.12 lakh crores uh constituting nearly 58.54% of the total domestic book which is there as 6:33 6 minutes, 33 seconds regards the domestic deposits are concerned they have increased by 12.8% on a YI basis from 6.79 lakh crores in 6:40 6 minutes, 40 seconds December 24 to 7.65 lakh crores in December 25. Kasa has also increased on a Yi basis from 2.77 lakh crores in 6:49 6 minutes, 49 seconds December 24 to 2.90 lakh crores with an incremental growth of nearly 12,000 cr plus in December 25 and the kasa ratio has stood at 37.97%. 7:01 7 minutes, 1 second As regards the third part which is the profitability and the asset quality of the bank, operating profit has increased by nearly 13% on a YI basis and stood at 7:09 7 minutes, 9 seconds 4,193 crores for Q3 FI26 as against 3,73 crores in Q3 FI25. Net profit has 7:18 7 minutes, 18 seconds increased by nearly 7% on a YI basis and is stood at 275 crores in Q3 FI26 as 7:25 7 minutes, 25 seconds against 2517 in Q3 FI25. Net interest income has also increased by nearly 6% 7:31 7 minutes, 31 seconds on a YI basis and stood at 6,461 crores for Q3 FI26 as again 670 crores in Q3 FI25. 7:41 7 minutes, 41 seconds Global name sequentially has improved by 16 basis point and stood at 2.57% in Q3 FI26. Non-interest income has also 7:49 7 minutes, 49 seconds increased by nearly 30% on a YI basis and stood at 2,200 cr plus as on Q3 as against 1,700 cr plus in Q3 FI25. 7:59 7 minutes, 59 seconds Slipage ratio has stood at 0.16% in Q3 FI26 as against 0.19% in Q3 FI25. 8:09 8 minutes, 9 seconds As far as the credit cost is concerned, it has improved to 0.34% in FI26 as again 0.39 in FI25. 8:18 8 minutes, 18 seconds There has been improvement in the asset quality also with reduction in both gross NPA ratio and the net NPA ratio 8:25 8 minutes, 25 seconds with the GNPA ratio improving by 143 basis points to 2.26% for Q3 and net NPA 8:33 8 minutes, 33 seconds ratio also improving by 25 basis points to 0.60% 60% in Q3 of FI26. As far as 8:40 8 minutes, 40 seconds the PCR is concerned, it has improved to 93.60% uh in December 25 as against 92.46% 8:49 8 minutes, 49 seconds is on December 24. As on December 25, banks CR has improved to 17.09% from 16% as on 31st December 2024. 9:01 9 minutes, 1 second Now to conclude I would say that in tune with the growth of the global economy and the Indian economy the guidance for 9:08 9 minutes, 8 seconds global advances growth would be at around 13 to 14%. And the global deposit growth would be at around 11 to 12% for 9:16 9 minutes, 16 seconds FI26. The key priority of the bank will be mobilizing lowcost deposits accelerate the growth of high yielding advances 9:24 9 minutes, 24 seconds thereby safeguarding the net interest margin. Our concerted efforts will focus on prudent credit underwriting and 9:32 9 minutes, 32 seconds strengthen the asset quality and contain the fresh lipages. The bank remains fully committed to enhancing the operational efficiency and profitability 9:41 9 minutes, 41 seconds while maintaining the rigorous compliance in standard and robust corporate governance. Together these initiatives will ensure the creation of 9:48 9 minutes, 48 seconds a sustainable value for all our stakeholders. I would like to thank you all for your continued support. The floor is now open for questions and answers and thank you for coming here. 9:59 9 minutes, 59 seconds Thank you so much. 10:01 10 minutes, 1 second Thank you sir. That was very informative. 10:04 10 minutes, 4 seconds We will now begin the question and answer session. Before we proceed, we would like to request you to kindly raise your hands and introduce yourself 10:12 10 minutes, 12 seconds and your organization. Our representatives will hand over a mic to you. 10:17 10 minutes, 17 seconds Uh for subsequent questions for online participants, I would request you to raise your hands and uh type in your questions in the chat box. Uh my colleague will take your questions. 10:28 10 minutes, 28 seconds Thank you. Any questions? 10:39 10 minutes, 39 seconds The gentleman over here. 10:46 10 minutes, 46 seconds Congratulation to team bank of India for excellent numbers and performance exceeding your guidance. 10:53 10 minutes, 53 seconds Sir, if you could please introduce yourself. My name is Sushil Chi from Indas Equity. 10:58 10 minutes, 58 seconds Uh do you expect higher growth than what you are guiding or you just want to be conservative? 11:06 11 minutes, 6 seconds Yeah. So as far as the growth is concerned if you see our numbers as far as the overall growth is concerned, we have been growing our global business at 11:13 11 minutes, 13 seconds around 12%. And uh if you see within that the credit growth has been at around 13% plus on a YI basis and deposit growth has been at around 11% on 11:22 11 minutes, 22 seconds a YI basis. If you see the domestic numbers the credit growth has been as good as 15% plus on the domestic 11:28 11 minutes, 28 seconds advances side and within that if I give you a color of the RAM advances there we have grown at around 18%. On the RAM growth within that retail has grown at 11:37 11 minutes, 37 seconds around 20% and agriculture has grown at around 16% and MSME has grown at around 15%. So and the corporate book also has 11:46 11 minutes, 46 seconds grown at in this time trying times also still at a double digit at around 11%. 11:50 11 minutes, 50 seconds So uh with the kind of pipeline that we are having the as far as the credit is concerned of nearly 80,000 cr of pipeline of which the corporate pipeline 11:58 11 minutes, 58 seconds is around 65,000 crores uh which will help us uh grow in credit in the Q4 and the Q1 of the next financial year. We 12:06 12 minutes, 6 seconds are very confident that uh the growth numbers will be much better for the next financial year than what we are showing at this present time. So the 65 is the 12:14 12 minutes, 14 seconds pipeline for Q4 and what is unavail credit as of today sanctioned. 12:19 12 minutes, 19 seconds So this Q 65,000 cr corporate pipeline includes uh see the in principle approvals that we have given. The 12:27 12 minutes, 27 seconds sanctions that we have given which are uh yet to get into documentation stage and third is the stage wherein the sanctions have been given documentation 12:35 12 minutes, 35 seconds has uh taken place and draw down will take place as per the dispersement schedules. So 65,000 cr will not get 12:43 12 minutes, 43 seconds dispersed in this quarter itself but it will be getting dispersed in the next 6 months. So as I said in the Q4 of FI26 and Q1 of FI27 12:52 12 minutes, 52 seconds sir as you said in your opening remark that you have shredded some low yielding advances and you're looking for better yield advances. Does it mean that we 13:01 13 minutes, 1 second have shredded low yielding advances? I may name them you may not. Nabad should it be uh some housing finance 13:08 13 minutes, 8 seconds governmentowned companies or entities which are fetching only 6% or six and a quarter for yearly advances. 13:15 13 minutes, 15 seconds Yeah. So that is the basic idea. So we have uh churned our portfolio. We have scanned our portfolio and what we saw that uh among the low yielding advances 13:25 13 minutes, 25 seconds which were external lending waste repo linked advances typically AAA PSUs and other kinds of things where the yields 13:32 13 minutes, 32 seconds were less that we have now churned and gone into other advances where the returns were much better the yields were better. I will not say it was very high 13:41 13 minutes, 41 seconds but definitely from that number it was more by around 25 30 40 basis point. So that kind of churning we have done in our portfolio that has helped us uh 13:50 13 minutes, 50 seconds improve the margins. So overall if you see the global name also for the bank it has improved from a number of 2.45% in 13:57 13 minutes, 57 seconds September 25 to a number of 2 uh 67% as on 57% as on December 14:04 14 minutes, 4 seconds and the flavor in the stock market is PSU bank and if I see the results which are so far declared RAM is a highlight 14:13 14 minutes, 13 seconds across all banks. Do you think Ram will sustain in 2026? I'm not only saying about the current quarter but looking at 14:22 14 minutes, 22 seconds housing market, retail loans, car loans, some may be having a good yield, some may be poor compared to market. How do 14:29 14 minutes, 29 seconds you see that panning out over the period of 26? So as far as the RAM book is concerned, we are very much positive and buoyant as far as the RAM book is 14:38 14 minutes, 38 seconds concerned and we feel that from the top management side that if FI27 also will give a very good RAM growth for the simple reason the way the economy is 14:46 14 minutes, 46 seconds growing, Indian economy is growing, the way the income levels are growing both in the uh cities and also in the agriculture side and uh not much impact 14:55 14 minutes, 55 seconds of the monsoon and other kinds of things are there now in the country and we have not seen a drought for quite a number of years and agriculture incomes are quite 15:04 15 minutes, 4 seconds stable. Now keeping all these things in mind we feel that the RAM growth will be a very important growth number for the all the banks entire ecosystem 15:12 15 minutes, 12 seconds particularly with the respect to the change in definition in the MSME which has happened wherein medium enterprises are now collated as turnover up to 500 15:20 15 minutes, 20 seconds cr with a plant and machinery of 125 crores. Typically you can give a loan to a medium enterprise with a back of the 15:27 15 minutes, 27 seconds envelope calculation of around 200 crores. 100 cr working capital and 100 cr term loan. With that kind of number coming definitely the overall RAM book 15:37 15 minutes, 37 seconds should be growing with the change in definitions and the economy uh activity which is going and for the banks also I can speak for my bank for bank of India 15:45 15 minutes, 45 seconds for agriculture also we have changed our strategy rather than traditional agriculture wherein we used to go for tractors and KCC we are going for allied 15:53 15 minutes, 53 seconds agriculture and other kinds of things and food processing where we feel that the asset quality is much better margins are much better and definitely 16:02 16 minutes, 2 seconds There is lot of scope in that kind of category. 16:05 16 minutes, 5 seconds Sir, just a color on two three parameters. One is digital spend, human resources, bank is getting better on TAT 16:12 16 minutes, 12 seconds and many other aspects. So what you are you likely to do and what we have already done. Third is color on gold loans between the segregate aspar RBI definition. 16:22 16 minutes, 22 seconds Yeah. So as far as the color in the gold loan is concerned, we have a book of around 47,000 crores in gold loan as on 16:30 16 minutes, 30 seconds 31st December. So if I give you share with you the numbers so the NPA amount is around 70 75 crores only. So that is 16:37 16 minutes, 37 seconds the kind of uh figure which is there as far as NPA is concerned and that is on the date of the 31st December. Normally tickably our S SOP is that once the 16:46 16 minutes, 46 seconds account of the gold becomes NPA it has to be like sold in the market after giving the notice to the borrower. We have to sell it into the market and 16:54 16 minutes, 54 seconds normally this money comes back within 30 days of the account becoming NPA. So very less NPA is there. there is no threat of asset quality and the return 17:02 17 minutes, 2 seconds in the gold loan just to give you a sense is around 9%. Uh yield on the such advances because the very less NPA is there. 17:10 17 minutes, 10 seconds I don't think a gold NPA is a kind of a worry in today's market scenario of anybody. So if you go aggressive nobody's going to bother about it unless 17:19 17 minutes, 19 seconds you lend at 100% of the value. So 75% is fine. So so there that's a very good point. 17:24 17 minutes, 24 seconds See because of the rising gold prices and the commodity prices which are there. So we have increased our guardrails also in the loan. We are very 17:32 17 minutes, 32 seconds much concerned that the way the portfolio is growing and the way the prices of gold are growing definitely it may pose a risk particularly with 17:40 17 minutes, 40 seconds respect to the valuations which are there on the metal. So what we have done is we have reduced the loan to value to 17:46 17 minutes, 46 seconds 75% now. So any fresh advances in the gold loan category we are keeping a margin of 25% as against earlier of 10% or 15%. 17:56 17 minutes, 56 seconds Thank you for answering all my question and best luck. Thank you. 17:59 17 minutes, 59 seconds Thank you sir. Uh we have the next question from our online participants. 18:05 18 minutes, 5 seconds Uh what is the management's outlook for personal vehicle and gold loan books going forward as uh personal loans grew 18:13 18 minutes, 13 seconds by 5.3 and vehicle loans I have been taken from online. 18:21 18 minutes, 21 seconds Yeah. Somebody want I'm Ash Kashmir chairman Akan Global. Okay. I have been unmuted for online. 18:30 18 minutes, 30 seconds Please go ahead sir. Thank you. Uh my compliments to you sir for the all round growth in this quarter. In fact you are 18:39 18 minutes, 39 seconds probably among very few banks where the growth is very balanced. If you look at the this quarterly growth around 4% for 18:48 18 minutes, 48 seconds deposit credit as well as overall business. 18:52 18 minutes, 52 seconds So which is a very good sign that you are growing your deposit also as you are growing your credit uh like portfolio 18:58 18 minutes, 58 seconds also. So that's a my and profitability is also improved operating profit is good net profit is good uh so my 19:07 19 minutes, 7 seconds compliments to the entire team of bank of India sir I I couldn't join you there because of some traffic issues but I am 19:14 19 minutes, 14 seconds here online and I got certain observation some clarification to be sought and some information. Sir this 19:22 19 minutes, 22 seconds time our SMA 2 uh numbers overall SMA figure has gone down but SMA 2 is almost doubled from 220 crores to 4,120 crores. 19:35 19 minutes, 35 seconds So is it because of that some government one or two accounts or uh and what is the break up of this 19:43 19 minutes, 43 seconds like corporate and the uh retail and MSME from this SMA too? 19:49 19 minutes, 49 seconds Yeah. So thank you so much GI. So as you rightly said that yes we have improved the overall SMA book for us. So if you 19:57 19 minutes, 57 seconds see the numbers we were at around 6,500 crores uh in above 5 crores SMA as on September it has come down to now uh 20:05 20 minutes, 5 seconds 5,400 crores only and it is only 0.75% of our standard loan book. As regards the SMA2 number is there as we have 20:14 20 minutes, 14 seconds already presented that majority of that in the SMA 2 category is are three state government accounts which are there 20:21 20 minutes, 21 seconds which are backed by the state government guarantee also which have rolled over from SMA 1 or SMA0 to the SMA2 category 20:30 20 minutes, 30 seconds but nonetheless we are monitoring these advances and we are hoping that there will not be any delinquency in these accounts but otherwise if you see the 20:38 20 minutes, 38 seconds number that uh uh our both whether it is retail SMA, whether it is agriculture SMA or the MSME SMA is quite neuted and 20:46 20 minutes, 46 seconds on a lower side. The major portion of the overall SMA 5,400 cr out of which around 3,500 cr is compromising of these three accounts only. 20:57 20 minutes, 57 seconds Uh yes sir, that's I I also thought uh because but overall SMA numbers are comfortable. Good evening sir on the right. Hello. 21:05 21 minutes, 5 seconds Yeah, good evening sir. My name is Rohit Shindai. I'm from market memories. Uh my question is sir regarding Bank of India 21:12 21 minutes, 12 seconds Shaki scheme and Bank of India gig workers loan you have just launched it recently. Uh so I just can you just throw some color on this because Shaki 21:21 21 minutes, 21 seconds is for the agriculture and uh gig workers is for those particular loan. So can you throw some color on the ticket 21:27 21 minutes, 27 seconds size the tenor of the loan and what will be the interest percentage? 21:33 21 minutes, 33 seconds So uh Pat G will you be able to take that uh this one? 21:45 21 minutes, 45 seconds Yeah. uh sir this gig worker in fact I mean it is for as you mentioned in your speech it is for uh on retail side for 21:55 21 minutes, 55 seconds uh individuals and uh small enterprises on SMA side and typically rate of interest is between 9 and a half to 10 22:04 22 minutes, 4 seconds and a half% that is the kind of loan uh rate of interest we have kept it there and farm mechanization we have launched 22:12 22 minutes, 12 seconds that agree SH And what is the rate of interest for the farm workers? 22:18 22 minutes, 18 seconds Yeah. So again it is I mean we have kept minimum civil score beyond uh below which we don't give and uh rate of interest is 9%. 22:28 22 minutes, 28 seconds And what would be the ticket size minimum and maximum for both. So farm mechanization especially we get good amount of some harvesters also it goes 22:36 22 minutes, 36 seconds even up to I mean 35 50 lakh also but it starts I can say somewhere around four 22:43 22 minutes, 43 seconds five lakh up to 50 lakh but those high ticket are very very I mean less in number and for the gig workers 22:51 22 minutes, 51 seconds gig workers I mean okay we have recently launched the pro project for individual side it is only 22:57 22 minutes, 57 seconds up to two lakh and onme side It is up to five lakh. 23:02 23 minutes, 2 seconds And what will be the tenor of this loans approximately? 23:05 23 minutes, 5 seconds Typically uh I mean uh 2 years to 5 years for farm or gig? 23:12 23 minutes, 12 seconds For farm it is up to 5 years. Okay. And gig 2 years. 23:16 23 minutes, 16 seconds Yeah. Gig also 2 to 5 years depending on what is the repayment capacity. 23:21 23 minutes, 21 seconds And what would be the net interest margin for this bank will be expecting? 23:25 23 minutes, 25 seconds So okay I mean now you can I mean generally we are giving at around 10%. 23:31 23 minutes, 31 seconds And our cost of fund is around 5%. So that that's the margin we are keeping 5% n. Yeah. 23:37 23 minutes, 37 seconds And uh how much how many accounts are expecting to how many people expecting to lend in this? Can you throw color on this in the first started? gig site it 23:45 23 minutes, 45 seconds will be very very I can say it will be small volume wise it is not we are not expecting much big number but onmemes 23:55 23 minutes, 55 seconds uh especially on saki side uh I mean close to 500 2,000 cr kind of book we are looking for okay and gig what the gig book size 24:04 24 minutes, 4 seconds that will be very small I in fact okay thank you very much sir thank you thank you sir this is sharat chandra investment 24:12 24 minutes, 12 seconds advisor uh sir I wanted to know whether the competitive environment is increasing in the banking space because 24:19 24 minutes, 19 seconds your kasa deposit uh in a time frame of 12 months has come down from 41% to 38%. 24:27 24 minutes, 27 seconds And you have covered that up with the bulk deposits from 13.5% to 15.5%. 24:33 24 minutes, 33 seconds So that is one part. The second part is the yield on advances has come down by 80 basis points in the 9-month time horizon and the NMS have come down by 40 basis points in the 9month time horizon. 24:44 24 minutes, 44 seconds So both on the deposit side and both on the you know lending side there seem to be pressure uh on the bank uh uh is it 24:53 24 minutes, 53 seconds because of uh the general environment or is it because of increased competitive intensity in the banking space? 25:01 25 minutes, 1 second Yeah, thank you so much. Uh so your question has basically two parts to address. One is the liability side and other is the asset side the yields on 25:08 25 minutes, 8 seconds the asset side. So as far as the liability side is concerned see there is a transformational shift structural shift which is happening on the deposit 25:16 25 minutes, 16 seconds side across the system. So what we are seeing is that uh the kasa deposits across all banks whether it is private sector banks, foreign banks, public 25:24 25 minutes, 24 seconds sector banks, small finance banks is coming to lowering down getting down and the delta which is getting created out of the CASA deposits is on a lower side. 25:34 25 minutes, 34 seconds So if you see our numbers also the increase in CASA has been only around 12,000 crores on a YI basis. In 25:41 25 minutes, 41 seconds percentage terms it's also low. As you rightly observed also our CASSA percentage to total deposit has also come down uh to now near to 38% only and 25:51 25 minutes, 51 seconds within that but what I would like to show uh tell over here is that bank of India as a franchise with around 5,400 branches with 37,000 cr touch points for 26:00 26 minutes our customers. We've been able to monitor and maintain our cost of deposits to a large extent which has 26:07 26 minutes, 7 seconds also resulted in improvement in the NIMS by nearly 16 basis point in on a sequential quarter from 2.4% to 2.57%. 26:16 26 minutes, 16 seconds So our bulk deposit is now only 15% though it has also increased but it is only 15% which means that 85% of our 26:24 26 minutes, 24 seconds domestic deposit is either kasa deposit or retail term deposits within that if I give you the color our retail term deposits have grown by nearly 14% on a 26:33 26 minutes, 33 seconds yi basis. Now what is retail term deposit? Retail term deposit as per the definition of RBI is any deposit which is up to rupees 3 crores. So that is a 26:43 26 minutes, 43 seconds deposit which is cheaper for us and definitely we want more spread out deposit because in that situation the outgo deposit does not take place. So 26:52 26 minutes, 52 seconds that is the kind of thing which is there but definitely there is a pressure on the deposit. But as I said in answering with the previous question that since we are growing our credit global credit by 27:01 27 minutes, 1 second 13% plus our domestic credit by more than 15% plus it is very important for us to grow our deposits also. So if the CASA is not growing because of the 27:09 27 minutes, 9 seconds structural issues which are there in the economy today in the sense that the depositors which are there now they are not keeping the deposits idle with the 27:18 27 minutes, 18 seconds banks either in current account or saving deposits. Now they are parking their deposits in various investment avenues wealth management products which 27:25 27 minutes, 25 seconds are available to them whether it is a real estate whether it is a metal like gold or a silver whether it is a equity 27:31 27 minutes, 31 seconds market mutual funds pension funds NPS or insurance life insurance. So with all these kinds of investment opportunities 27:39 27 minutes, 39 seconds available with the growth in economy and the financial literacy which is taking place now this will continue to happen and there will be uh in the coming 27:47 27 minutes, 47 seconds future which we see from the top management side bank of India that there will be a pressure on the CASA uh definitely for the entire banking system 27:55 27 minutes, 55 seconds and banks will have to search other avenues like particularly more retail term deposits more of bulk deposits to compensate the uh the uh the growth of 28:04 28 minutes, 4 seconds CASA which is not happening to match the credit growth which is happening. So that is what we are trying to do and uh this is what we have been successful 28:12 28 minutes, 12 seconds also in doing. So bulk deposit is only 15% remaining remains kasa and retail term deposits. As regards the other part 28:19 28 minutes, 19 seconds is concerned on the loan book side thereum yes we have been able to improve our yield on advances though you rightly say uh rightly observe that the yield on 28:28 28 minutes, 28 seconds advances have come down from December 24 to December 25 for the simple reason that if you see our book 64% of our book 28:35 28 minutes, 35 seconds is linked to the EBL advances which are the repoor rate advances and repor rate which you which you are aware that it 28:42 28 minutes, 42 seconds has come by come down by nearly 125 basis point in the calendar year 2025 itself the rate cut started in February 28:51 28 minutes, 51 seconds 25 and it was there up to 5th December 25 when the RBI brought down another 25 basis point so 125 basis point has been 29:00 29 minutes shaved off from that side since 64% of our book bank of India book is on the repo side immediate transmission of the 29:07 29 minutes, 7 seconds rate happens so MCLR it takes time but repo rate immediate it happens that is why the yield on advances has come down 29:14 29 minutes, 14 seconds but nonetheless uh if you see our numbers. Our yield on advances have improved from September to December quarter and we have been able to churn 29:22 29 minutes, 22 seconds our credit portfolio as I said earlier that we have been able to shed some of our very low yielding advances and uh 29:30 29 minutes, 30 seconds got it replaced with certain advances of double A and other categories which are giving 20 30 40 basis point higher. So 29:37 29 minutes, 37 seconds it's a conscious strategy we are adopting at the bank level that we want to improve our RAM advances to improve the yield. We want to improve increase 29:45 29 minutes, 45 seconds our MCLR advances to improve the net interest margins and also we want to have a portfolio of more of double A 29:52 29 minutes, 52 seconds advances so that because the yield in AAA advances is very less. So this is how we'll try to protect our uh like 29:59 29 minutes, 59 seconds reduce our cost of deposits increase our yield on advances and protect the names going forward. 30:04 30 minutes, 4 seconds What is the differential between the uh bulk deposit and the retail term deposit rates? Is there a differential? So, so 30:12 30 minutes, 12 seconds it cannot be u uh it cannot be given in one number but uh let me share you with you the data. So when we are taking bul 30:20 30 minutes, 20 seconds deposits it also depends of the kind of uh liquidity we want. So the bul deposit rates are different for the amount and 30:28 30 minutes, 28 seconds the maturity right. So if I need a 50 cr deposit uh for uh 1 month or a 500 cr 30:37 30 minutes, 37 seconds deposit for 1 month the rates will be different totally different. Similarly if we need a 500 cr deposit for 6 months 30:45 30 minutes, 45 seconds the rate will be different or a 50 cr deposit for 6 months the rate will be different. So the for the bulk deposit many times it is the negotiation which 30:53 30 minutes, 53 seconds take place at the field level with uh the various depositors many of them are central government entities some are state government 31:01 31 minutes, 1 second entities some are central PSUs some are state PSUs and some of them are also corporates and many of them these days because lot of money is flowing into 31:09 31 minutes, 9 seconds mutual fund and insurance company some of the deposits is also coming from the mutual funds and insurance companies also so it's a bargain which happens as 31:18 31 minutes, 18 seconds far as the negotiation which happens in the bulk deposit rate. But definitely it cannot be like ascribed that one uh 31:25 31 minutes, 25 seconds pocket hits uh like like in the term deposit retail term deposit you must be having a weighted average cost of uh retail term 31:32 31 minutes, 32 seconds deposit. So similarly for the bulk deposits the weighted average cost would be what 1% more than the retail term deposits. No, no, it's not that. But 31:41 31 minutes, 41 seconds what I can say is yes, the cost of deposit of retail term deposit weighted average is higher than the weighted average for the bulk deposit for the 31:49 31 minutes, 49 seconds simple reason that the weighted average for the bulk deposit is where there is lot of short-term deposit also available with us for 15 days also. Sometimes even 31:58 31 minutes, 58 seconds we take for seven days also that kind of deposit we want uh immediate dispersal of say to some PSU happening for 2,000 32:05 32 minutes, 5 seconds 3,000 cr next day we take a 7-day deposit also from some government entity for 7 days. So but yes uh the difference 32:13 32 minutes, 13 seconds between there is the retail term deposit weighted average is bit higher than the uh bulk deposit. 32:19 32 minutes, 19 seconds Thank you. Thank you very much and all the best. Next question is from our online participant Mr. Amera. So please go ahead. Thank you. 32:30 32 minutes, 30 seconds Uh yes sir. Uh I was immediately muted after my first uh question only which you answered. 32:40 32 minutes, 40 seconds Sir there is a little increase in the fresh slippages in this quarter. So what is the reason and going forward are we 32:48 32 minutes, 48 seconds going to keep the slippages under control and what is the total recovery target for FI26 32:57 32 minutes, 57 seconds from the recovery from the return off account and what is the outstanding return of book and what is the overall recovery target by FI26 v the slipages. 33:09 33 minutes, 9 seconds Yeah thank you so much. As far as the fresh lipages are concerned, see the fresh lipages have increased by nearly 200 crores in this quarter. So last 33:18 33 minutes, 18 seconds quarter it was around 910 crores. So this time it is around 1,00 crores. One of the main reason is that there was one corporate uh road account which slipped 33:27 33 minutes, 27 seconds into NPA. That is the reason it's a consortium account. It is there with other lenders also. Because of that slippage the incremental delta has been 33:35 33 minutes, 35 seconds at around 200 crores. But as far as the slipage ratio is concerned, so we are uh quite comfortable though slippage ratio has increased by a couple of basis 33:43 33 minutes, 43 seconds points from the previous quarter. But if you compare it to December 24 to December 25, the slipage ratio in fact has come down from uh 0.19% to 0.16%. 33:54 33 minutes, 54 seconds So as far as the SMA book is concerned to just to give you a color over there there also we our SMA overall SMA number 5 cr and above if you see the 34:02 34 minutes, 2 seconds presentation SMA number in amount terms has reduced from 6,500 cr to 5,400 34:09 34 minutes, 9 seconds crores and it is only 0.75%. So in this quarter also we do not uh see any uh further deterioration in the asset 34:16 34 minutes, 16 seconds quality and we'll be able to hold the run rate u on the slipage side. As regards the recovery is concerned there in the recovery we have already done a 34:25 34 minutes, 25 seconds recovery if you see the presentation 9 month recovery at around 5,000 300 crores total recovery in the 9 months 34:32 34 minutes, 32 seconds and we expect that our recovery should uh be for this quarter should be also at somewhere around 2,000 crores in the Q4 quarter. So we should be ending at 34:41 34 minutes, 41 seconds around somewhere around 7,000 200 7,300 crores of total recovery during the uh 12 months. As regards the uh return of 34:50 34 minutes, 50 seconds accounts are concerned. So I we have a book of around 50,000 crores on the return of accounts our run rate 34:56 34 minutes, 56 seconds presently is at around 400 450 crores per quarter. That translates to around 1,800 crores uh perom. So there 35:04 35 minutes, 4 seconds internally on the top management side we are targeting that we should have a number of around 750 crores per quarter which would translate to a number of 35:13 35 minutes, 13 seconds around uh um 3,000 cr in the next four quarters on the return of account recovery. Thank you. So about 6% of the 35:22 35 minutes, 22 seconds total return of accounts and sir uh will you give some color on our IT 35:29 35 minutes, 29 seconds uh activity and the digital budget and the product which we have launched you know with the big uh delivery which we have given there were some initial 35:37 35 minutes, 37 seconds hiccups. So what is the status of the overall digital growth of the bank and the future plans for going forward in this area? 35:47 35 minutes, 47 seconds Yeah. So lot of initiatives uh bank has taken as far as the digital initiatives are concerned not only on the IT but also on digital uh digital side and also 35:56 35 minutes, 56 seconds on the cyber security side. So as far as the uh business numbers are concerned if you can see the presentation already 29 36:03 36 minutes, 3 seconds journeys are live as far as the business journeys are concerned. Out of that around 24 journeys are on the loan side and five journeys are from the liability 36:11 36 minutes, 11 seconds side. In this quarter also there will be quite a few journeys which we will go live as far as the whether it is the loan journeys whether it is the 36:20 36 minutes, 20 seconds liability journeys and some of the journeys also on the wealth management side. As far as the transformation project which is going on within the bank for IT digital and cyber security 36:28 36 minutes, 28 seconds there also lot of automation we are trying to do in many of our processes particularly on the credit side where the sanctions are concerned and also on 36:37 36 minutes, 37 seconds the monitoring and control side whether it is transaction monitoring and other kinds of things. If you see the presentation, lot of uh customization 36:44 36 minutes, 44 seconds and optimization has happened over there and we have been able to save a lot of uh number of man hours also uh under this automation things as far as the back offices activities are concerned. 36:55 36 minutes, 55 seconds So around 50,000 uh um man hours we have saved during uh the 9 months over the 37:04 37 minutes, 4 seconds because of the automation and this kind of thing that we have done and this journey will continue to improve uh further that is what is the 37:11 37 minutes, 11 seconds understanding for us. Apart from that we have another very important project which we have project star adita which is uh for the data lake project which is 37:20 37 minutes, 20 seconds artificial intelligence machine learning and generative AI. There also a lot of use cases have already started flowing to our verticals to the branches to our 37:29 37 minutes, 29 seconds zonal offices even to the underwriting centers. There we are going for not only for the business side leads and the actual underwriting which is happening 37:37 37 minutes, 37 seconds but also from the control side transaction monitoring alerts are going early warning system alerts are going and even for the underwriting uh 37:46 37 minutes, 46 seconds underwriting centers there is lot of alerts which are going for the uh ecosystem alerts which are there while the credit underwriting is taking place 37:54 37 minutes, 54 seconds and with the kind of emphasis that we are giving on IT now and just to give you a sense I may tell you that the kind of money we are investing in IT 38:02 38 minutes, 2 seconds out of the total operating expenses which are there nearly 10% of the OPEX is going to the IT opex so that kind of 38:09 38 minutes, 9 seconds significant money we are spending on IT apart from that there is a capeex also which we are spending on the IT side so 38:16 38 minutes, 16 seconds management is uh clearly u uh into the IT system and we want the experience of the customers to improve through digital 38:25 38 minutes, 25 seconds journeys and also improve our system and procedures as far as the cyber security uh stack is concerned Thank you. Thank you sir. 38:38 38 minutes, 38 seconds Thank you sir. Uh this is Aditya Mudra from My Temple Capital. Uh sir I have two to three queries. Uh sir uh our RAM 38:46 38 minutes, 46 seconds to wholesale ratio is approximately 50/50 and uh what is our target uh in terms of that because from compared to your peer 38:55 38 minutes, 55 seconds banks I think they are targeting more 60 40 and they are maybe at 65 35 if not more. 39:00 39 minutes Yeah. And does that play a role in uh our NIM plans like how what is our road 39:07 39 minutes, 7 seconds map to take our NIM above 3% let's say correct and uh and uh and and an extension of 39:14 39 minutes, 14 seconds that query uh what is our plan for our international advances like how much percentage of uh that international 39:21 39 minutes, 21 seconds advances will be part of our book uh I I'll uh I have more questions I'll come back on that okay so as far as the first question on 39:29 39 minutes, 29 seconds RAM is concerned see present our RAM book is at around 58.4% 4% right so as far as our future plans are concerned we 39:36 39 minutes, 36 seconds have a approved strategy of the board for bank of India at 125 so we are 120 year old organization five year hence uh 39:44 39 minutes, 44 seconds we would be 125 year old so at that time we say that we our total uh business should be at around 31 lakh crores 39:51 39 minutes, 51 seconds within that number within the credit number uh the ram book should be at around 65% and 35% has to be corporate 39:58 39 minutes, 58 seconds for the simple reason that we believe that it will be our Diversification of advances uh if you go to the RAM book number one credit risk gets spread 40:07 40 minutes, 7 seconds number one and number two is the fact that the better margins are available as far as the RAM book are concerned. So we have a clear understanding within the 40:15 40 minutes, 15 seconds bank that we need to grow the RAM book definitely as I already said that MSME definition now with the change in definition there is huge scope for 40:22 40 minutes, 22 seconds increasing the MSME book. So RAM book will definitely grow in the bank and we are very conscious and we want that the uh the better yielding advances are 40:31 40 minutes, 31 seconds there in the RAM and the NIS will also improve because of that. As far as the color into the international book is concerned, see if you see the book 40:38 40 minutes, 38 seconds presently as on 31st December, if you see the global advances of 7 lakh 40,000 crores, nearly 1 lakh 10,000s are contributed by the international 40:46 40 minutes, 46 seconds advances and it is 15% of the book and if you see our uh just to give a sense on at 125 at 2031 how the international 40:56 40 minutes, 56 seconds book would be again uh we are saying over there that our international book should be at around 15 to 16% of the global book on the advances Right. So we 41:05 41 minutes, 5 seconds will be growing both our international book simultaneously our domestic book on the uh credit side. So what we feel 41:13 41 minutes, 13 seconds today is because of the various geopolitical issues which are there. 41:16 41 minutes, 16 seconds Definitely there is some uh some slowness as far as the international advances are concerned. We are also very cautious about uh entering into new 41:26 41 minutes, 26 seconds inter overseas accounts particularly though we are giving to Indian corporates but to overseas conference we are very watchful and watching the 41:34 41 minutes, 34 seconds situation and the global political issues which are panning out. 41:38 41 minutes, 38 seconds So any any target for the NIM on the BYI25 plan? uh so NIM cannot be a target 41:45 41 minutes, 45 seconds at BYU 125 at this juncture when the situation is so volatile and the repor cut has been there and other issues are 41:52 41 minutes, 52 seconds there as far as the global environment is there but definitely for the immediate run I could say I would say that for FY26 though we are at 2.57% as 42:02 42 minutes, 2 seconds on 31st December for the annualized FI26 uh we hope that we should be maintaining a name of around 250% 42:10 42 minutes, 10 seconds and for the Q4 we should be somewhere around 2.60%. Answer what will be our branch expansion plans uh in terms of 42:19 42 minutes, 19 seconds number as well as geography that you are focusing on is it different from where we are already present what is our strategy for that around that so already 42:27 42 minutes, 27 seconds we have a board approach strategy as far as our branch expansion is concerned so in FI25 we opened nearly 211 branches 42:34 42 minutes, 34 seconds exactly 211 branches in FI25 this year again we have a board approval of around 200 branches already 145 plus branches 42:42 42 minutes, 42 seconds we have opened the next the reming remaining 50 55 branches we will be opening in this quarter itself. So they are in the final pipeline of opening 42:50 42 minutes, 50 seconds going live as far as the opening of those branches are concerned. So in the next year also for FI27 also the board has given approval for 200 more 42:58 42 minutes, 58 seconds branches. So 600 branches will be opened in the three years FI 24 25 and uh 25 26 and 27. So that is one part. Second part 43:07 43 minutes, 7 seconds is that we have 13 FGM offices under which there are 16 zones uh pan India. 43:13 43 minutes, 13 seconds So we are agnostic to any particular geography north, south, east, west or central. So all these 600 branches are getting opened in across pan India and in each of these states. 43:25 43 minutes, 25 seconds But but there would be some I would request you please come. I'll come back sir. Okay. 43:32 43 minutes, 32 seconds Yeah. One. Yeah. 43:36 43 minutes, 36 seconds Yeah. Just one last question from one participants then we'll conclude. 43:42 43 minutes, 42 seconds Yeah. Hello. Uh yeah sir sir uh last quarter you indicated that the impact of ECL would be around 4,700 crores. Uh and 43:51 43 minutes, 51 seconds you also indicated that you would be uh you know deciding on how how and when you would be taking the hit on the P&L. So any update on the same? 44:00 44 minutes So yeah so ECL is a work in progress frankly speaking because uh the draft guidelines of RBI are already out. We have done the calculation as far as the 44:09 44 minutes, 9 seconds present numbers which are concerned. So we feel that the ECL impact should be at around 2% on our CR. Uh so if you see 44:18 44 minutes, 18 seconds our C is at around 17.09%, 1% of this translates to around 4,600 to 4,700 44:26 44 minutes, 26 seconds crores. So the overall number would be coming the two times of around that 4,7 within the 10,000 cr number. But if I 44:33 44 minutes, 33 seconds give you a sense uh since it has to be spread across the next 5 years, so the impact would be at around 0.40% 40% only 44:40 44 minutes, 40 seconds per anom on the CR side and uh if you see the profitability which the bank is having around 7,500 cr of net profit in 44:48 44 minutes, 48 seconds the 9 months uh which should and with this going run rate we should be having a profitability of say around 10,000 cr in this financially itself so there 44:57 44 minutes, 57 seconds should not be any impact on the uh C with this kind of number thank you 45:04 45 minutes, 4 seconds thank you sir sir jitin from Ajimeira. So what do you see the interest rates trajectory going 45:12 45 minutes, 12 seconds forward and which sectors like you can further improve the slippages which in the coming quarters? 45:19 45 minutes, 19 seconds So interest rate trajectory uh presently though we don't uh see any rate cut coming uh now already 125 basis rate cut 45:27 45 minutes, 27 seconds has happened in the calendar year 2025 and uh and with the kind of geopolitical 45:34 45 minutes, 34 seconds situation and the kind of metal prices the way they are going we feel that uh in the immediate uh we don't see any cut 45:42 45 minutes, 42 seconds coming immediately. So but uh nonetheless in the medium-term we cannot say after 6 months what would happen but we feel that it should be playing around 45:50 45 minutes, 50 seconds at that number only and we would be in reducing our cost of deposit with the fact that most of our term deposits are 45:59 45 minutes, 59 seconds getting repriced uh and uh at a lower rate of interest because we have cut the deposit rates both in the saving account and also in the fixed deposits. So there 46:07 46 minutes, 7 seconds we feel that our cost of deposits overall should be coming down. As regards the second part was with respect to which which sectors you see the 46:15 46 minutes, 15 seconds improvement in slippages further slippages see slippages if you see our numbers most the slippages are mostly into the MSME and agriculture and some 46:24 46 minutes, 24 seconds of the slippages which are happening in the retail. So corporate we do not feel see any slippages. This is a one of 46:31 46 minutes, 31 seconds slippage which has happened in this quarter. It was a stress road asset which was there in the books of the bank of other banks also for the last 18 46:40 46 minutes, 40 seconds months. So it has slipped in corporate we do not see any slippages happening but there will be some routine slippages which happened in retail agriculture and 46:47 46 minutes, 47 seconds MSME but uh I don't think there should be any worry on that. Thank you. 46:52 46 minutes, 52 seconds Thank you. Thank you ladies and gentlemen. This was the last question for the session. Uh thank you for your in-depth questions. Thank you Pajnish Karnataka and the Bank of India's 47:01 47 minutes, 1 second management team. We will now conclude the conference. Thank you. Have a good day. 47:05 47 minutes, 5 seconds Thank you. Thank you so much. Thank you for coming.