Bank of India Ltd — Q4 FY26

Bank of India Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=JukZg-qUKWw Published: 5 days ago

0:02 2 seconds Yeah, please. 0:06 6 seconds Good evening, ladies and gentlemen. Good evening once again. A very warm welcome to today's analyst meet of Bank of 0:13 13 seconds India's quarter 4 results for FY26 uh which is being conducted in a hybrid mode being attended physically as well 0:22 22 seconds as virtually by our analysts from panindia. We have with us on the dis Sri Rajnish Garnatic GI our MD and CEO sir. 0:32 32 seconds Joining him on the dis are our executive directors Sri Paj Gopal sir Shri Sudatkumar sir Sri Rajiv Mishra sir and 0:39 39 seconds Sri Pammudi sir. I request our MD and CEO sir to kindly address this gathering 0:47 47 seconds to begin with. Yes sir. Over to you sir. 1:01 1 minute, 1 second Yeah, thank you madam. So, good evening everyone. Thanks for coming. Uh, good evening uh ladies and gentlemen. Thank 1:09 1 minute, 9 seconds you for joining us today on this eve of publication of our bank's financial results for 202526. 1:16 1 minute, 16 seconds This year has been another significant milestone in the bank's journey marked by resilient financial performance, strengthened asset quality 1:25 1 minute, 25 seconds and robust business growth and continued commitment towards the nation building. 1:30 1 minute, 30 seconds Despite global uncertaintities, geopolitical tensions, evolving interest rate scenarios and cycles and changing 1:38 1 minute, 38 seconds regulatory expectations, the Indian economy has demonstrated remarkable resilience. In this backdrop, our bank has continued to play a proactive role 1:47 1 minute, 47 seconds in supporting economic growth while maintaining financial stability and prudent risk management. During the 1:54 1 minute, 54 seconds year, the bank recorded healthy growth across key parameters including deposits, advances, operating profit and 2:01 2 minutes, 1 second digital transactions. Our focus remained on a calibrated credit growth with emphasis on quality underwriting, 2:09 2 minutes, 9 seconds sectoral diversification and responsible lending practices. My speech is in three parts today. First part being 2:16 2 minutes, 16 seconds institutional initiatives that we have taken. The second part being the business uh that we have done and third part being the profitability and the asset quality. 2:26 2 minutes, 26 seconds So on the institutional initiatives, the bank is establishing zonal deposit centers at all zonal offices to 2:33 2 minutes, 33 seconds accelerate the kasa uh accretion and its market share. This initiative is designed to ensure long-term retail 2:40 2 minutes, 40 seconds stability and foster deeper and more meaningful customer relationships. As far as the kasa franchise of the bank is 2:48 2 minutes, 48 seconds concerned, the bank has also strengthened the umang app which is the government of India app with its own boi 2:54 2 minutes, 54 seconds omni neo platform creating one-stop digital uh solution for a wide range of central and state government services. 3:03 3 minutes, 3 seconds Uh the strategic partnership with the national ego governance division allows our customers to conveniently access 3:10 3 minutes, 10 seconds essential public services through a streamlined redirection model directly within our own banking app. The third is 3:18 3 minutes, 18 seconds the bank has launched the Bharat Connect pillar operating services enabling corporate customers to onboard themselves as 3:27 3 minutes, 27 seconds pillars and offer their c their customers diverse digital payment options. This initiative enhances the 3:35 3 minutes, 35 seconds digital reach and it strengthens the collection processes ensuring and more d convenient and efficient payment experience for all these stakeholders. 3:45 3 minutes, 45 seconds The bank has also established dedicated MSME desk helplines to address the borrowers's concerns directly. This initiative facilitates structured 3:53 3 minutes, 53 seconds regular interaction ensuring a transparent and responsive grievance redress mechanism for our MSME 4:01 4 minutes, 1 second customers. The second part is with respect to the business. The global business has grown by 14.57% on a YI 4:08 4 minutes, 8 seconds basis from uh 14.63 63 lakh crores in March 25 to 16.98 lakh crores in March 4:15 4 minutes, 15 seconds 26 with an incremental growth of nearly 2.16 lakh crores. The global deposits 4:22 4 minutes, 22 seconds have increased by 13.56% on a YI basis from 8.17 lakh crores in March 25 to 9.27 lakh crores in March 26 with the incremental growth of 1.1 lakh crores. 4:34 4 minutes, 34 seconds The domestic deposits have increased by 14.30% 30% on a Yi basis from 7 lakh crores in March 25 to 8 lakh crores in 4:41 4 minutes, 41 seconds March 26. Kasa has increased on a Yi basis from 2.80 lakh crores in March 25 to 3.01 lakh crores in March 26 with the 4:51 4 minutes, 51 seconds incremental growth of more than 20,000 crores in March 26 and a CASA ratio stood at 137.64%. 4:58 4 minutes, 58 seconds Gross global advances have increased by 15.82% on a Yi basis from 6.66 66 lakh crores in March 25 to 7.71 lakh crores 5:08 5 minutes, 8 seconds in March 26 with the incremental growth of more than 1.05 lakh crores. Domestic gross advances have also increased by 5:15 5 minutes, 15 seconds 16.10% on a YI basis from 5.64 lakh crores in March 25 to 6.54 lakh crores 5:23 5 minutes, 23 seconds in March 26. Our RAM advances have increased by 19.11% on a YI basis from 3.23 lakh crores to 5:31 5 minutes, 31 seconds 3.84 84 lakh crores in March 26 constituting 58% of the total advances as on March 26. 5:40 5 minutes, 40 seconds As far as the profitability and the asset quality in the bank is concerned, our operating profit has improved uh by 5:47 5 minutes, 47 seconds 4% on a YI basis and stood at 17,049 crores for FI26 against 18,412 crores in 5:55 5 minutes, 55 seconds FI25 uh 16,412 in FI25 and for the quarter ended FI26 6:02 6 minutes, 2 seconds Q4 at rupees 5,26 crores with a YI growth of more than 3%. Net profit has increased by more than 14% on a YI basis 6:11 6 minutes, 11 seconds and is stood at 10,527 crores for FY206 as against uh 9,219 6:19 6 minutes, 19 seconds crores in FY25 and for Q4 FI26 stood at 3,16 crores uh increasing uh witnessing 6:27 6 minutes, 27 seconds a YI growth of more than 15%. Net interest income has also increased by 3% on a YI basis and stood at 25,172 cr for 6:37 6 minutes, 37 seconds FY26 against 24,394 crores in FY26 and for FY Q4 of FY26 6:46 6 minutes, 46 seconds stood at 6,730 crores um against 6,63 crores in Q4 of FY25. 6:54 6 minutes, 54 seconds Non-interest income has increased by 10% on a YI basis and is stood at 9,874 7:00 7 minutes crores and for FI26 as against 8,994 crores in FI25. Global name stood at 7:08 7 minutes, 8 seconds 2.52% as on FI26 as against 2.82% in FI25. 7:14 7 minutes, 14 seconds Prepage ratio stood at 0.83% as against 1.36% in FI26. and credit 7:21 7 minutes, 21 seconds cost has improved to 0.46% in FI26 as on uh FI26 as again 0.76% 7:30 7 minutes, 30 seconds as on FI25. There has been improvement in the asset quality with reduction in both gross NPA and net NPA ratio. Gross 7:38 7 minutes, 38 seconds NPA ratio has improved to one by 129 basis points to 1.98% in FI26 and net 7:45 7 minutes, 45 seconds NPA ratio has improved by 26 basis point uh on a YI basis and stood at 0.56% only 7:52 7 minutes, 52 seconds in FI26. Provision coverage ratio has improved to 93.57% 7:58 7 minutes, 58 seconds in March 26 as against 92.39% in March 25 as on 31326 banks CR has 8:07 8 minutes, 7 seconds improved to 18.01% from 17.09% as on March 25. Now to conclude in alignment with the 8:16 8 minutes, 16 seconds prevailing global economic conditions the guidance for the global advances growth will be around 15 to 16% and the 8:24 8 minutes, 24 seconds guidance for global deposit growth is around 13 to 14% for FY27. The bank's primary focus will be on strengthening 8:31 8 minutes, 31 seconds the deposit franchise for a higher share of lowc cost funds while driving the growth in high yielding advances to 8:38 8 minutes, 38 seconds support the margins. Additionally, focused efforts will be there on maintaining the balanced CD ratio, which is the credit 8:47 8 minutes, 47 seconds deposit ratio and enhancing the return on assets will deliver a stronger financial performance. Investment in digital infrastructure and cyber 8:55 8 minutes, 55 seconds security will continue to enhance efficiency and resilience. Together, these actions will enhance the measure expansion of the bank, measured 9:02 9 minutes, 2 seconds expansion of the bank business, and reinforce long-term value creation for all stakeholders. The detailed annual 9:10 9 minutes, 10 seconds report being released will provide comprehensive insight into the bank's financial performance, strategic direction and also governance practice 9:18 9 minutes, 18 seconds and the future outlook of the bank. I would like to thank you all for your continued support. The floor is now open for discussions and question answer. 9:27 9 minutes, 27 seconds Thank you all for coming here and namaskar. Thank you very much sir. 9:37 9 minutes, 37 seconds Before uh we proceed, please raise your hands, 9:44 9 minutes, 44 seconds if you would like to ask a question. A little uh improvisation here that uh if you could stand a little our volunteers 9:52 9 minutes, 52 seconds uh it'll be easier for our volunteers to see you so that the mics can be passed on in an orderly fashion. Uh again uh 10:02 10 minutes, 2 seconds repeating with it's an earnest request that kindly put only two questions at a time so that maximum people can join 10:09 10 minutes, 9 seconds because there are already a lot of questions coming online. 10:14 10 minutes, 14 seconds Uh we'll come back to you for additional questions for sure. Thank you for your cooperation. 10:21 10 minutes, 21 seconds Uh and for those who have joined us virtually you will notice a small icon on your screen a hand sign. Once you press this, it'll alert us that you 10:29 10 minutes, 29 seconds would like to ask a question. We'll go around one by one. The analyst asking the question will be unmuted. You will get a notification on your screen to 10:38 10 minutes, 38 seconds unmute yourself. Kindly click on unmute and identify yourself and your organization before asking the question 10:46 10 minutes, 46 seconds for uh I have already shared the WhatsApp number earlier. So I'm sure uh questions are already on the way. So let 10:53 10 minutes, 53 seconds us begin. Uh yes. Who's going to be the first one? 11:00 11 minutes Nobody from here. So let us take if Mr. Ajira is online because I got a uh text. 11:07 11 minutes, 7 seconds Can you put him through Mr. Ajira Ganesh? 11:12 11 minutes, 12 seconds Good evening and thanks for taking me my question as the first question. In fact uh I don't have the question. I have 11:20 11 minutes, 20 seconds major observations a few observations some compliments. 11:24 11 minutes, 24 seconds So my compliments to the entire team of Bank of India for yet another good quarter of very good results uh even 11:32 11 minutes, 32 seconds good business growth, good profitability, very good control on the asset quality, good control on the slipages 11:40 11 minutes, 40 seconds and overall a fantastic quarter and a year compliments for the same. Uh can you hear me? 11:49 11 minutes, 49 seconds Yeah. Yes, we can hear you clearly. Yes sir. Yes sir. 11:53 11 minutes, 53 seconds compliments to you sir. Having said that I have just a main basic question which is coming to the mind is uh that the ECL 12:03 12 minutes, 3 seconds guidelines are already announced now the final guidelines. So how our bank is prepared uh to meet uh the provisioning 12:11 12 minutes, 11 seconds for the same uh starting from 1st April 2027. Are we equipped fully to uh do not 12:19 12 minutes, 19 seconds take the benefit of those four five years which are allowed? Uh my second uh question is on uh the ECLG 12:28 12 minutes, 28 seconds 50 which has been announced by the government of India two days back only. 12:33 12 minutes, 33 seconds uh I think with that a lot of uh I mean the the more room will open for the credit growth. So how much growth are 12:42 12 minutes, 42 seconds you expecting? I mean have you done the analysis of the customer who are eligible for this emergency uh credit 12:49 12 minutes, 49 seconds line and uh how much of that can you are expecting to materialize the credit sir? 12:58 12 minutes, 58 seconds Yeah, thank you so much uh and thank you for joining also for this uh conference. 13:04 13 minutes, 4 seconds Yeah, we had so as far as your first question is concerned with respect to the RBI ACL guidelines which have come out which are effective from 1st April 13:10 13 minutes, 10 seconds 2027. We have already done lot of homework and preparation since the draft guidelines have come. We have onboard 13:18 13 minutes, 18 seconds already onboarded one of the big fours for the transitioning uh towards the ECL regime and already the teams have already been made in our head office u 13:27 13 minutes, 27 seconds from the risk department side uh on the calculations of the various ratios and other things. So as far as the impact is concerned not much of an inquiry will be 13:36 13 minutes, 36 seconds there at that much I can assure you and with the kind of asset quality and the SMA numbers that we are having and the declining trend in the SMA numbers the 13:44 13 minutes, 44 seconds transition for Bank of India to the ECL guidelines of RBI will be smooth as you rightly said that it is for 5 years uh 13:51 13 minutes, 51 seconds starting from 1st April 27 to 31st March 2032 and uh the impact will be spread across 13:59 13 minutes, 59 seconds the next 5 years uh as per our calculation that we have done the impact will be only 0.50% 50% peranom 14:06 14 minutes, 6 seconds aggregating to total 2.50% over the next 5 years. So to just to give you a sense on that we we have a net profit of 14:14 14 minutes, 14 seconds presently as we have shown in this financial year 10,000 cr of net profit which is improving the uh cr of the bank and the c1 of the bank and if you remove 14:23 14 minutes, 23 seconds the net the dividend also of around 2800 to 2,000 cr that we have to pay still the accretion to the net worth and the 14:32 14 minutes, 32 seconds cr is by good 8,000 crores so not much of impact will be there on the cr and the overall impact perom will be only 14:40 14 minutes, 40 seconds 0.5 5% which uh we have sufficient cushion in our net worth and the CR in the C81 to absorb presently as I told 14:48 14 minutes, 48 seconds you that our CR is 18.01% as against the RVI mandated 11.5%. 14:54 14 minutes, 54 seconds So as regard the ECLGs is concerned 5.0 announced by the government for total gross of around 2.55 lakh crores. So as 15:03 15 minutes, 3 seconds you are aware there also it is for both MSME and non MSME. MSME is having a credit guarantee of 100% and non MSME is 15:11 15 minutes, 11 seconds having a guarantee of uh 90% and the payout is five years for the MSME and for the airline sector for the MSME and 15:19 15 minutes, 19 seconds non MSME it is 5 year for the airline sector it is 7 years so we have already started our teams have already started 15:26 15 minutes, 26 seconds uh doing the uh the calculations and uh finding out the list as far as our MSME borrowers are concerned and also allied 15:35 15 minutes, 35 seconds sector in the agriculture is concerned Our midc corporate team has also started that through the ECLGs branches. The 15:42 15 minutes, 42 seconds emerging corporate branches that we have 19 branches and the large corporate team has also already started identifying the accounts under which will be eligible 15:51 15 minutes, 51 seconds for the working capital. So as you are aware 20% of the working capital of the peak of the Q4 will be eligible 20% for 15:58 15 minutes, 58 seconds the ECLGs. So we have done some ballpark computation calculation in that. So we expect that around 12 10 to 12,000 cr we 16:06 16 minutes, 6 seconds will be able to fund under the ECLGs scheme this time. So the next uh next week we'll be going to our board for 16:13 16 minutes, 13 seconds approval of this uh scheme for our bank and after which we it will immediately get rolled out in the branches and we 16:20 16 minutes, 20 seconds expect that lot of MSME borrowers and also allied sector in agriculture and some of the corporates and mid-corporates will be immediately 16:28 16 minutes, 28 seconds coming and availing this facility in this financial year. Thank you. 16:33 16 minutes, 33 seconds Uh sir, thank you very much sir. Hello. 16:36 16 minutes, 36 seconds Uh yes, kindly pass on the mic to the first Okay, you you may take. 16:41 16 minutes, 41 seconds Uh first of all, congratulations on a good set of numbers, sir. Kindly introduce yourself. 16:45 16 minutes, 45 seconds Nish Sha over here from V Solid Techch Investment Advisors. My question is regarding your retail deposits. So what 16:52 16 minutes, 52 seconds we've seen is that reliance on uh bug deposits has increased. No doubt there has been a very uh tight competition 17:00 17 minutes when it comes to retail deposit. RBI has also said that banks need to innovate and I think uh you are the first one to 17:08 17 minutes, 8 seconds start with uh no minimum balance uh uh scheme right. I think it has to be more pronounced because every other bank is 17:16 17 minutes, 16 seconds doing and we are having a product which is innovative. That is one suggestion. 17:21 17 minutes, 21 seconds and what is the uh comfortable CD ratio because I think your uh asset growth is much higher than your uh liabilities 17:30 17 minutes, 30 seconds grow. That would be my first question sir. 17:33 17 minutes, 33 seconds Yeah. So thank you. So as far as our retail franchise is concerned so if you see in our presentation also so our kasa 17:40 17 minutes, 40 seconds percentage 37% and retail deposits at around 44% our retail franchise of the domestic resources side is around 81 17:48 17 minutes, 48 seconds 82%. So the remaining percent is the bulk term deposits. As you rightly said that there has been a structural change which has happened as far as the deposit 17:56 17 minutes, 56 seconds color of the deposit is concerned and lot of uh uh funds are flowing out of the banking system into other asset class like equity, like mutual fund, like gold, like real estate and others. 18:08 18 minutes, 8 seconds So there has been a lot of competition among the banks how to fund this credit growth which is coming. So that is one part. However, if you see from our 18:15 18 minutes, 15 seconds presentation, you will see that in spite of all these headwinds which are there, we have been able to grow our CASA in absolute terms by more than 20,000 18:22 18 minutes, 22 seconds crores from 2A 80,000 crores to three lakh crores. Similarly, on the retail term deposit side, in spite of that, we have been able to increase our retail 18:30 18 minutes, 30 seconds term deposit percentage from 45 uh 45.89% in absolute numbers. This has now touched uh 2 lakh 19,000 crores. So, 18:39 18 minutes, 39 seconds that is the kind of number it has already touched. So we have taken lot of initiatives and made strategies to improve our retail term deposits and 18:47 18 minutes, 47 seconds particularly the kasa numbers which are there retail deposits. One thing is we have already launched our project which 18:53 18 minutes, 53 seconds is under the big four uh under which we are giving uh very strategic importance and monitoring uh to the branches and 19:01 19 minutes, 1 second the targets which we have given to the branches for both the SA and the KA and also the retail term deposit. That is the first part and uh our head office 19:10 19 minutes, 10 seconds department resource department is totally attuned to that and lot of monitoring and VCs are happening to the field functionally like the branches the 19:17 19 minutes, 17 seconds zonal offices and also the FGM offices that is number one. Second is that uh we have 69 zonal office and 13 uh FGM 19:26 19 minutes, 26 seconds offices. So there we have posted one u one resource which is the resource RM which will take care of the uh the uh 19:34 19 minutes, 34 seconds the resources side in the bank. So 82 RMS have been posted for this kind of work. Apart from that the new initiative as I said in my speech is that we have 19:43 19 minutes, 43 seconds also started the zonal resource center which we call the ZRC. There the officer along with his team will be posted and 19:52 19 minutes, 52 seconds they will be monitoring the branches and also calling out to the customers and moving out in the market to garner new CASA and the retail dump deposit. That 20:01 20 minutes, 1 second is another initiative we have taken. We have also identified nearly 1,000 HNI branches across the country. We have 20:07 20 minutes, 7 seconds 5,500 branches, HNI branches which will be like for more of business. And what are these HNI branches? These branches 20:15 20 minutes, 15 seconds are which have majority of the account saving accounts which have average quarterly balance of more than five lakhs. That is another initiative that 20:23 20 minutes, 23 seconds we have taken as far as that is concerned. Then we have a subsidiary which we call BOI serve. There we have started feat on street. So asset side uh 20:32 20 minutes, 32 seconds sale um of products we have already started this year. Now we have started in Q1 the liability side also. Uh so 20:40 20 minutes, 40 seconds these are the feet on street who will be going in the market for opening of saving account, current account and retail term deposit. That is another new 20:47 20 minutes, 47 seconds initiative we have taken. Apart from that we will be building a new sales vertical in the bank which will be headed by a general manager right from 20:54 20 minutes, 54 seconds head office general manager sitting only for sales and marketing up to bottom at the branch level. So it will not only be for resources the salesperson they will 21:03 21 minutes, 3 seconds also be selling the asset products and also the wealth management product. So basically we are creating u vertical for 21:11 21 minutes, 11 seconds the sales vertical in the bank for the first time where the general manager will be in charge for sales and marketing in the bank for retail products, liability product, asset 21:19 21 minutes, 19 seconds products and the wealth management products which are there. And then apart from that we have already opened 200 branches in FI24 new branches. 200 21:29 21 minutes, 29 seconds branches were opened in this financial year FI26 new branches. Another 200 plus branches we will be opening in FI27. So 21:36 21 minutes, 36 seconds these 600 branches the idea is to garner uh resources like casa resources and 21:43 21 minutes, 43 seconds retail term deposit on one side loan products like ram products on the other side and thirdly the wealth management 21:50 21 minutes, 50 seconds products. So all these things taken together all these strategies will help us in improving our franchise our strong 21:57 21 minutes, 57 seconds franchise that we have on kasa and retail term deposit so that we are able to reduce our cost of deposit number one 22:04 22 minutes, 4 seconds so that we are able to improve our margins in the long term and as far as your other question is concerned with 22:11 22 minutes, 11 seconds respect to the CD ratio is concerned. So see if you see the RBA guidelines which are there as far as the CD ratio is 22:19 22 minutes, 19 seconds concerned. We have to put money in SLR and CR. So 78 79% can be the idle CD ratio which is there. If you see our CD 22:27 22 minutes, 27 seconds ratio it is around 82 83%. But that is because of the fact that uh the CD ratio is high because obviously there is a 22:35 22 minutes, 35 seconds crunch of resources which is there. So we are having a higher CD ratio. In order to optimize our resources, we have 22:43 22 minutes, 43 seconds higher CD ratio at around 82%. But uh that CD ratio is helping us in improving the overall business of the bank. And if 22:51 22 minutes, 51 seconds you see our numbers more granularly on the slide, you will see that the two lakh delta which we have created on the deposit total uh business side, the 23:00 23 minutes deposits have grown more than the advances on the YI basis also. And if you see sequentially the quarteronquarter basis there also we 23:09 23 minutes, 9 seconds have grown more deposits than the advances. So we are very cognizant of the fact that whatever um accretion of the advances which we do like we are 23:17 23 minutes, 17 seconds giving a guidance of around 15 to 16% of raising of advances. So we are very cognizant that majority of that advances 23:25 23 minutes, 25 seconds raising will be happening through the raising of deposits which is through our 5,500 branches. Thank you. 23:31 23 minutes, 31 seconds Thank you sir. Thank you. We'll come back to you. We'll definitely come back to you. Yes, gentlemen. You would to ask a question? Yes. Uh, thank you for the opportunity. 23:39 23 minutes, 39 seconds Uh, good evening, sir. This is Namit Aurora from In Growth Capital. Sir, I would like your assessment on any likely impact on credit quality given the 23:48 23 minutes, 48 seconds recent geopolitical developments because there may be some lag effect of let's say crude price or input cost or 23:55 23 minutes, 55 seconds logistic disruptions. Since you are a very large institution, would like your thoughts on any potential impact on credit quality. 24:03 24 minutes, 3 seconds Yeah. So the global headwinds which are there presently so definitely it has some impact. See we already are seeing that there has been a rise in brand 24:11 24 minutes, 11 seconds crude prices say $102 per barrel. Number two the interest rates are also rising. 24:18 24 minutes, 18 seconds Another thing is that with the interest rate rising and brand crude happening there may be a chance that the inflation may also go up and there are certain uh 24:26 24 minutes, 26 seconds rating agencies which are saying that the growth in the country the GDP may also come down. So from a 7% it has been said that it will now come down to 6.9%. 24:35 24 minutes, 35 seconds RBI has also said that with all these things happening there are certain uh headwinds which are there and the supply 24:42 24 minutes, 42 seconds chain is also disrupted both for the importers and the exporters and there has been a significant incre 24:49 24 minutes, 49 seconds index which has happened by nearly 2x 2.5x to 3x. So but um what we see uh 24:57 24 minutes, 57 seconds from the media and other kind of things we feel that a solution will come out uh very shortly maybe by the end of this 25:04 25 minutes, 4 seconds quarter and we'll be able to tide away with this crisis which is there but if it does not and if it continues definitely there will be some headwinds 25:13 25 minutes, 13 seconds but what think I can assure you is that this ECLGs scheme 5.0 zero which the government has announced it has come in the right time and whatever the stress 25:21 25 minutes, 21 seconds which may come into the MSME and the nomsme accounts particularly in terms of working capital requirements because of the increase in supply chain increase in 25:30 25 minutes, 30 seconds the cost of their operations and other kinds of things that will be tried it out through this 20% immediate relief 25:37 25 minutes, 37 seconds which we are giving by way of the ECLGs so whatever stress which may come that will get eased out through this ECLGS 25:45 25 minutes, 45 seconds but there are certain sectors definitely which is particularly exporters and the importers and also certain uh segments within the industry like uh you can say 25:54 25 minutes, 54 seconds ceramics, pharmaceuticals, chemicals which may be feeling the heat of this uh um this geopolitical situation in the immediate term. 26:03 26 minutes, 3 seconds Thank you very much sir for your detailed thoughts and all the best to the industry. 26:06 26 minutes, 6 seconds Thank you. Thank you very much sir. Uh Choxi G you would like to ask something kindly pass on the mic. Yeah, 26:18 26 minutes, 18 seconds congratulation to team Bank of India for excellent performance. 26:21 26 minutes, 21 seconds Sir, I heard some of your initial comments about growth on deposits advances. Can you elaborate uh some 26:30 26 minutes, 30 seconds numbers on ROE, ROA, NIM and your CD ratio? You've already indicated how you balance corporate and RAM advances. 26:40 26 minutes, 40 seconds uh the new initiative which you've taken for deposit mobilization through new zonal office and others. How are these touch points looking? What kind of growth aspirations are being looked at? 26:52 26 minutes, 52 seconds Because if that number moves from 37 to 4142 in two years, the bank may have a sizable impact on positivity. 27:02 27 minutes, 2 seconds So this is the first question. 27:04 27 minutes, 4 seconds Yeah. Yeah. Thank you so much. Uh so some of the points as far as the ROA is concerned if you see our ROA we have now 27:10 27 minutes, 10 seconds touched uh in Q 4 ROA of 1.01%. So we are above 1%. As far as the Q4 is 27:18 27 minutes, 18 seconds concerned however having said that our overall RP ROA for the year is 0.93%. 27:23 27 minutes, 23 seconds And it is uh above the ROA of 0.90% in March 25. So there has been an improvement because of the net interest 27:31 27 minutes, 31 seconds income issue. the ROA we could not improve to the desired number which you could have been but definitely we have touched the ROA of 1.01% in the Q4 as 27:40 27 minutes, 40 seconds far as the guidance on the ROA is concerned for the whole year FY27 we are giving a guidance that we'll be touching 27:46 27 minutes, 46 seconds a number of 1% for March 27 as far as the NIM is concerned again as I said in 27:53 27 minutes, 53 seconds my opening speech that uh our NIM is at 2.52% global NIM uh which has come down by nearly 30 basis point from 2.82% 82% 28:02 28 minutes, 2 seconds in March 25. Having said that, I would like to clarify that uh as you are aware our we have a very strong international 28:08 28 minutes, 8 seconds franchise and 14% of our book is an international book where the names are quite uh compressed and it is in the range of 1.10% to 1.30%. 28:19 28 minutes, 19 seconds But our domestic name as far as the domestic name is concerned as on March 26 it is at a very healthy 2.78%. 28:26 28 minutes, 26 seconds And with the kind of strategies which I already said uh that as far as the raising of resources is concerned that 28:33 28 minutes, 33 seconds we are very confident that we'll be able to protect our names in FI27 and certain strategies which I which I can elaborate 28:40 28 minutes, 40 seconds is one of them is that we want to increase our MCLR advances. That is one part. Second part is that we want to increase more of our RAM advances 28:48 28 minutes, 48 seconds because there the margins are much better. Third uh point is that we also want to increase our mid-corporate advances through our emerging corporate 28:56 28 minutes, 56 seconds credit branches because again the NIMs are much better. We are able to get better rate of interest number one and we are also able to get the non-interest 29:04 29 minutes, 4 seconds income in terms of better process fee LCBG commission and other kinds of things. Apart from that we are strategizing in this year that we 29:12 29 minutes, 12 seconds increase our uh kasa deposits through our project uran where we have onboarded one of the consultants over there. 29:18 29 minutes, 18 seconds increase our retail term deposits so that we reduce our uh cost of deposits and uh through the MCLR and other kinds 29:26 29 minutes, 26 seconds of initiative on the asset side increase and improve our yield on advances so that we improve our net interest income. 29:32 29 minutes, 32 seconds So these are some of the things which we are planning to do. Apart from that we also want to reduce our fresh slippages once we are able to reduce our fresh 29:40 29 minutes, 40 seconds slippages further. We have already reduced them to 5,500 cr if you see our presentation in the entire year and we 29:47 29 minutes, 47 seconds want to further reduce it to 4,000 crores in this financial year. If you are able to do that there will be more earning assets for the bank which will 29:55 29 minutes, 55 seconds help us increasing the net interest income and finally the net interest margins and overall profitability of the bank. So these are the brief thoughts 30:02 30 minutes, 2 seconds that I just wanted to share as far as the margins are concerned. In the current environment, how are you seeing growth specifically the visibility on 30:10 30 minutes, 10 seconds pipeline led by as India's transforming lot of new sectors are emerging whether it's renewable data center correct 30:18 30 minutes, 18 seconds warehouses new roads maybe few more states are now being added after election a lot of infrastructure expansion at the 30:27 30 minutes, 27 seconds same time how do you see a balance between corporate book and RAM I understand that I'm sure you're targeting 60 and above on RAM RAM but 30:36 30 minutes, 36 seconds what would be a visible number if we look one or two years beyond yeah so as far as the RAM book is concerned we are targeting a number of 30:44 30 minutes, 44 seconds say around 62% the RAM book and 38% the corporate book so that is for the strategy for the next 3 years for March 30:51 30 minutes, 51 seconds 29 that is the strategy as far as that is concerned but having said that let me clarify that it does not mean that we will not be growing our corporate book 31:00 31 minutes so when we say that 62% will be ram book in FYI 29 and 38 will corporate book our advances will also be increasing and we 31:08 31 minutes, 8 seconds are targeting advance of somewhere around 11 lakh crores as on March 29. So which is the number uh through which the corporate advances will also be 31:16 31 minutes, 16 seconds increasing simultaneously along with the RAM advances. That is one point. Second point is that we are um going very 31:24 31 minutes, 24 seconds strong as a strategy in the emerging corporate credit branches that we have opened 19 branches through which we want to increase our corporate advances which 31:32 31 minutes, 32 seconds are between the ticket size of 50 crores to 250 crores. That is another thought that we have and we want to increase 31:38 31 minutes, 38 seconds that base which is there between 50 to 250 crores. As far as the sectors and segment are concerned in the corporate uh we have lot of good pipeline which is 31:47 31 minutes, 47 seconds there as I said also earlier that 70,000 cr nearly is a pipeline that we are having 65 to 70,000 cr pipeline we are 31:55 31 minutes, 55 seconds having in the corporate total uh pipeline that we have as on date when we speak out of that around 15,000 cr is in 32:01 32 minutes, 1 second the uh the ram book remaining uh the pipeline is with the corporate book which is around 50,000 cr and in that 32:09 32 minutes, 9 seconds pipeline we have infra uh pipeline also So which is roads which are there, power sector is also there, data centers are also there. Uh apart from that there is 32:18 32 minutes, 18 seconds industry which is also there in the pipeline. EV vehicles are there, battery is there, uh solar panels are there, manufacturing of solar panels is there. 32:26 32 minutes, 26 seconds Apart from that some LRD transactions, loan lease rental discounting transactions are also there with us. 32:32 32 minutes, 32 seconds Biogas is also there with us and rare earth metal mining is also there with us. So such kinds of proposals are also 32:39 32 minutes, 39 seconds there with us which are already in the pipeline which are new gen proposals. 32:43 32 minutes, 43 seconds There we will we are seeing lot of uptick which is happen evening in even in the gas pipelines which are there some of the transmission pipelines are 32:50 32 minutes, 50 seconds which are coming and some of the new road projects which are coming in some of these states. So all these put together we are very confident that the guidance that we have given for this 32:59 32 minutes, 59 seconds financial year 15 to 16% of credit growth we'll be able to achieve. Can we see domestic dem of 30%. 33:07 33 minutes, 7 seconds domestic name of so we are saying that yes uh we will have a name of somewhere around from present 2.52% at somewhere 33:16 33 minutes, 16 seconds around 2.70 to 7 uh 2.75% name we are targeting guide we are guiding for March 27 domestic name definitely we are 33:25 33 minutes, 25 seconds targeting to get as close to 3% as possible thank you very much sir so there's one online question which has come up from 33:33 33 minutes, 33 seconds Mr. Wanch Soleni from RPN ventures. Uh he says that we have seen in many other 33:40 33 minutes, 40 seconds PSU and private bank results that due to GC yield rising they have increased their discount rate for actuarial valuation of employee liabilities. 33:51 33 minutes, 51 seconds Uh and thus there was a major decrease in the employee expenses in Q4 in many PSU banks. So we so have we also done 33:59 33 minutes, 59 seconds the same are we expecting any positive on this in Q1 results? 34:05 34 minutes, 5 seconds Yeah. So can we share any number presently? We have any number on that? Our CFO will respond sir. CFO is there. 34:12 34 minutes, 12 seconds Uh CFO sir kindly pass on the mic uh to Kumar. Are you have any number with you or we can answer it later whatever you feel. 34:27 34 minutes, 27 seconds In Q4 we have not taken anything but for as far as Q1 is concerned presently we don't have any number we'll update later sir. 34:34 34 minutes, 34 seconds Okay Mr. W uh the updates will be given to you. Thank you. So there's one online uh person has raised his hand. It is Mr. 34:43 34 minutes, 43 seconds Nitin from Orurum Capital. Uh Ganesh is he still around? kindly put you through. 34:56 34 minutes, 56 seconds Hello. 34:56 34 minutes, 56 seconds Yes. Uh yeah. Yeah. Am I audible? Yes, Mr. Nathan. We are all ears. 35:01 35 minutes, 1 second Yeah. Yeah. Thank you so much ma'am for the opportunity. Uh first of all, congratulations on good set of number considering the prevailing conditions 35:08 35 minutes, 8 seconds and and results from other PSU banks. uh the bank really did a commendable job over here and uh uh uh especially on the 35:17 35 minutes, 17 seconds provisioning and NPA front also the RA ROA has gone past 1% range uh that you mentioned which was promised earlier 35:25 35 minutes, 25 seconds also also the growth remained broadbased which is very healthy so this is superb overall I have just two questions and 35:33 35 minutes, 33 seconds I'll ask both together otherwise ma'am will cut me short and may not give opportunity the first one is we have an elevated provisioning access Q3 from uh 35:42 35 minutes, 42 seconds 605 crores provisioning to now 1211 cr provisioning. So what has happened there? Uh my second question is again uh 35:49 35 minutes, 49 seconds related with uh NPS only. So what is the status of recovery in state PSU and central PSU defaults uh that we reported earlier. 35:58 35 minutes, 58 seconds Thank you. 36:03 36 minutes, 3 seconds So as far as the uh provisions are concerned, I can just share the numbers with you. 36:10 36 minutes, 10 seconds Yeah. So as far as the quarteronquarter provisions are concerned if you see our presentation so for bad and doubtful 36:18 36 minutes, 18 seconds debts the provisions in fact from December quarter 605 they have gone up to 1200 crores and uh for the standard 36:25 36 minutes, 25 seconds assets uh uh they have already they were minus at 29 it's a minus 221 because of the non requirement and the reversal of 36:33 36 minutes, 33 seconds those provisions and provisions for uh before tax uh total 576 they have gone up to 990 crores so that is the 36:41 36 minutes, 41 seconds provisions as far as the provisions is concerned. So overall provisions if you see for the year-on-year basis uh for the bad and outful debts which is the 36:49 36 minutes, 49 seconds NPA from 4,500 crores it has come down to 3,300 crores and uh as far as uh the non performing investment is concerned. 36:59 36 minutes, 59 seconds So minus 282 was there in the last year and this year there is uh no impact no provision on that account. And for the 37:05 37 minutes, 5 seconds standard assets it is from 333 cr minus it has further got reduced by 290 uh crores. So not much of impact as far as 37:14 37 minutes, 14 seconds the provision overall provision is concerned. But as far as your next question is concerned with respect to uh the 37:22 37 minutes, 22 seconds huh state and central PSU's impact is concerned. So uh there was only one uh central PSU which got NPA in the last financial year for which we have fully 37:31 37 minutes, 31 seconds provided also. So there will be no impact on the profitability or provisioning as far as that central PSU is concerned. As far as uh some other 37:39 37 minutes, 39 seconds PSUs are concerned which are coming if you see our slide on the SMA in the corporate book the SMA zero SMA 1 and 37:46 37 minutes, 46 seconds two there three uh state PSUs are there which are being uh coming under the SMA category. they continue to move roll 37:54 37 minutes, 54 seconds forward and roll backward during the quarter but uh uh one thing we are confident that they are having cash flows with them and uh they will not be 38:03 38 minutes, 3 seconds slipping into the NPA category and we are confident that uh we'll be able to protect the asset uh um the NPA as far 38:11 38 minutes, 11 seconds as those state PS three PSUs are concerned but yes they will continue to remain in the SMA category with respect 38:18 38 minutes, 18 seconds to some challenges on the cash flow side sir thank you And uh no no uh uh thank you very much sir. Uh Danish is 38:26 38 minutes, 26 seconds Mr. Ajira still there? He wants to ask uh one more question. Uh yes Ammeir G are you able to uh hear us? 38:38 38 minutes, 38 seconds Kindly put him through. 38:41 38 minutes, 41 seconds Yeah I'll take I think uh there is some glitch. Yeah. Yeah. Hello. Okay sir. Kindly continue. 38:50 38 minutes, 50 seconds Yeah. Uh sir answered uh I have got just 38:57 38 minutes, 57 seconds a couple of questions and some observations. Sir the uh the non-interest income every bank is trying 39:06 39 minutes, 6 seconds to increase because of this pressure on the name I mean the uh and because of 39:13 39 minutes, 13 seconds the high cost of the deposit and fund raise. So going forward uh what plans do we have to increase our non-interest 39:22 39 minutes, 22 seconds income and uh recovery from the return of account which is a major source of a non-interest income the other income 39:32 39 minutes, 32 seconds what is our total return of book and how much are we expecting in the FI27 to recover from that? 39:42 39 minutes, 42 seconds Yeah thank you. As far as the net interest income is concerned, if you see the annual entire P&L of the bank, so we 39:50 39 minutes, 50 seconds are having a interest income of around 75,000 crores and our interest expense is around 50,000 crores which leaves us a net interest income of uh around 39:58 39 minutes, 58 seconds 25,000 crores. So we have a clear strategy as far as the improvement of this net interest income is concerned and we are very cognizant of the fact 40:05 40 minutes, 5 seconds that we have to increase this net interest income in order to improve our overall operating profit in the bank so that the net interest margins also 40:14 40 minutes, 14 seconds improve. So we have made a strategy as far as the interest income side is concerned as I earlier said also that we want to increase our MCLR advances 40:22 40 minutes, 22 seconds number one. Number two we want to increase our advances towards the mid-corporate through our emerging corporate credit branches. We also want to increase our advances in the RAM 40:30 40 minutes, 30 seconds book, retail agriculture and MSME where we feel the margins are much better. 40:35 40 minutes, 35 seconds That is on the asset side. On the liability side, definitely we want to increase our CASA balances and also our retail term deposit balances outstanding 40:43 40 minutes, 43 seconds where we feel that we'll be able to reduce our cost of deposits and on the asset side we want to increase our yield on advances. So both these strategies 40:51 40 minutes, 51 seconds together we are very confident that if we are able to increase our net interest income in fact we want to increase our interest income to such a level that the 41:01 41 minutes, 1 second overall operating profit for the bank improves. So that is one part. The second part is with respect to the return of accounts. Yes we we are having 41:09 41 minutes, 9 seconds number as far as the uh return of uh book is concerned. We have done a recovery of nearly 2,500 crores in this 41:17 41 minutes, 17 seconds financial year. as far as the return of uh accounts are concerned in the bank and uh uh this is a healthy number and 41:24 41 minutes, 24 seconds in the financial year FI 257 also uh we will be trying to achieve the similar run rate of around 2,500 to 3,000 crores 41:33 41 minutes, 33 seconds of recovery from these return of accounts what is the total total return one gentleman sitting there yes please 41:42 41 minutes, 42 seconds kindly introduce yourself yeah my name is I am from family service sir uh this is regarding 41:51 41 minutes, 51 seconds uh page number 42 of our presentation. 41:56 41 minutes, 56 seconds Yeah sir we have uh some of the subsidiary to create other income source correct. So if I see that what uh we 42:05 42 minutes, 5 seconds started demate services in the year 1996 with NSDL and 1999 with CDSL but we have 42:15 42 minutes, 15 seconds never taken it as a serious business. So again as a broking we have not started 42:22 42 minutes, 22 seconds our broking business like the other PSUs and everything. So similarly in the insurance sector we just hold 27%. So we have we are being a 120 year old bank. 42:36 42 minutes, 36 seconds So why we are lagging in this field? 42:39 42 minutes, 39 seconds Because our PSU brothers has done very well and also private sector has done taken a very 42:47 42 minutes, 47 seconds aggressive lead in this matter and also doing a secured and creating other income portfolio which is very large. 42:57 42 minutes, 57 seconds Yeah. So what is a going forward over next five years what is a plan in this sector? 43:05 43 minutes, 5 seconds So as far as our subsidiaries and uh this uh wealth management income is concerned where we have a very clear strategy for the next five years and if 43:13 43 minutes, 13 seconds you see the last three years also as far as the income which is coming from the wealth management products of the bank every year the income non-interest 43:21 43 minutes, 21 seconds income has been growing for the bank every year it has been growing so that much I can assure you if you see the slide in the slide only that you have 43:28 43 minutes, 28 seconds mentioned that uh this BI merchant bankers the merchant banking activity we are doing and they also So we are scaling up as far as your specific 43:36 43 minutes, 36 seconds question with respect to the trading account is concerned. Demat account is concerned. We already have two tie-ups uh with our partners which we are 43:45 43 minutes, 45 seconds through which we are offering threein-1 accounts which is a trading account a saving account and also the demat account that is already we have started 43:52 43 minutes, 52 seconds and already the results with both the partners have started coming. Another important thing is with respect to our uh subsidiary BI services limited which 44:00 44 minutes we have now recristened at BOI serve wherein we have started the uh feet on street and u they are onboarding DSAs uh 44:09 44 minutes, 9 seconds which are coming from best of the private banks and other uh public sector banks and we are selling our products we have already started selling uh our loan 44:17 44 minutes, 17 seconds products through that uh subsidiary and we have sold loan book the RAM book of nearly 35,000 crores through that 44:26 44 minutes, 26 seconds subsidiary. This quarter we are starting the liabilities product under the project uran. So feet on a street they will be selling the liabilities product 44:33 44 minutes, 33 seconds which is particularly kasai and retail term deposits and also in the next quarter they will be starting selling the wealth management products. So that 44:40 44 minutes, 40 seconds subsidiary also has been totally made active and live as far as we are concerned and we have a very strong uh 44:47 44 minutes, 47 seconds like um engagement with that subsidiary and the next five-year plan is very clear for that subsidiary. Apart from 44:55 44 minutes, 55 seconds that uh as as you rightly said that even though we are having only 26 27% in our life insurance subsidiary but we are one 45:03 45 minutes, 3 seconds of the key players as far as the onboarding of the insurance life insurance products are concerned from our branches and good growth is 45:11 45 minutes, 11 seconds happening in the SUD life subsidiary as far as the sale of insurance is concerned mutual fund subsidiary again let me just tell you share with you the 45:19 45 minutes, 19 seconds numbers 3 years ago the mutual fund AUM was somewhere around 3 to 4,000 crores today it is at around 14 to 15,000 crores. That is the kind of growth the 45:28 45 minutes, 28 seconds mutual fund AUM has taken place and in the it is already in public domain that we have already taken one of the uh 45:36 45 minutes, 36 seconds consultants uh as for a process advisor and we want to have a partner over there our international partner or a domestic 45:43 45 minutes, 43 seconds partner good uh sales AUM partner for our mutual fund and once that onboarding happens so you will be seeing much more 45:51 45 minutes, 51 seconds incremental growth happening as far as the mutual fund also is concerned. So we have very clear strategy for the next five years as far as these mouth 45:59 45 minutes, 59 seconds management products are concerned because we are very clear that apart from the net interest income we have to have a very good growth as far as the 46:07 46 minutes, 7 seconds non-interest is concerned only then we'll be able to show better operating profit and finally better net profit for the bank. 46:15 46 minutes, 15 seconds Thank you very much sir. Can I take one online question and then I'll come to you. Sure. Uh this gentleman is waiting since long. Uh Ganesh kindly put through Mr. Sedarth R from systematics. 46:29 46 minutes, 29 seconds Uh gentlemen, uh thank you for the opportunity. Uh first congratulations to the whole team for a very fantastic 46:36 46 minutes, 36 seconds quarter and also uh congratulations to Mr. Karnatak for an extension in this term. So first uh a clarity on the NIM 46:44 46 minutes, 44 seconds when you say uh 2.75 and 3% for domestic is it the exit name 46:52 46 minutes, 52 seconds that you have guiding and also what will uh it be driven by will it be driven by yield and on advances or more by cost of 47:00 47 minutes uh deposits. This is first. Second is on your other income. Uh what has driven the higher technically uh higher uh 47:08 47 minutes, 8 seconds recoveries in this quarter? Sequentially uh we we this quarter we have got 1,600 crores and also uh what has driven the 47:16 47 minutes, 16 seconds third party sales and third is on the credit cost. Uh so this this quarter we have taken higher provision. I 47:24 47 minutes, 24 seconds understand we have utilized maybe the higher recoveries that we have got. But how will our credit cost be in the ECL 47:32 47 minutes, 32 seconds period? uh the impact you have given but what will be the uh the onetime impact we we have but what will be the 47:41 47 minutes, 41 seconds incremental credit cost uh due to the ECL transition and the question is also because there is sharp moment uh of 47:49 47 minutes, 49 seconds between the SMAs uh for us uh because of the PSUs but we have to take that uh credit cost because now in the ECL it's 47:57 47 minutes, 57 seconds required in stage two so how will the uh credit cost more for us in the ECL period. Yeah, thank you. These are my three questions. 48:07 48 minutes, 7 seconds Yeah, thank you. So, as far as the name is concerned, see, as I already said that uh we are at 2.52 on the annualized basis and for the quarter it is 2.58. 48:17 48 minutes, 17 seconds So, we have given a guidance that it will be somewhere around 2.70% for the entire year. As far as the domestic is concerned, name is concerned. Presently 48:25 48 minutes, 25 seconds we are at 2.78% I and as I said for the year ended March 27 we will be trying to 48:32 48 minutes, 32 seconds be as close as to 3%. As possible so as far as the strategy for improving that is concerned that is both side strategy 48:40 48 minutes, 40 seconds as I explained earlier also we want to increase our uh yield on advances number one and number two we also want to reduce our cost of deposit so that the 48:48 48 minutes, 48 seconds overall net interest income improves then the net interest margins for the bank improve. as far as the other income 48:55 48 minutes, 55 seconds is concerned. So yes other income if you see in the other income we have improved our other income by nearly 10% uh from 49:02 49 minutes, 2 seconds 8,900 crores to 9,800 crores and the delta is uh say around 900 to uh 1,000 crores in that within that as you 49:10 49 minutes, 10 seconds rightly say that the recovery from written accounts it has improved from 2,300 crores to 2,600 crores and as I 49:17 49 minutes, 17 seconds explained earlier in my question that this 2,600 crores this run rate we want to continue and this year we are expecting that we should somewhere 49:26 49 minutes, 26 seconds between 2,500 to 3,000 crores as far as recovery in the return of accounts are concerned. So as far as the SMA is 49:34 49 minutes, 34 seconds concerned uh see SMAs if you see our slide we have been improving our SMA numbers continuously over the last 3 49:41 49 minutes, 41 seconds years through our zonal collection centers that we have opened and if you see in our slide also that the SMA numbers has now come down uh 49:50 49 minutes, 50 seconds significantly and uh I'll just show you the numbers 49:57 49 minutes, 57 seconds 28 28 yeah so uh it is now at 4,700 the overall SMA is there and it is only 62% 50:07 50 minutes, 7 seconds of our total asset book which was earlier uh in March 25 at 0.92%. So that has been the slide as far as the SMA 50:15 50 minutes, 15 seconds number is concerned and if you see further granularly over there SMA 1 and 2 constitute nearly 66% and 34% is SMA 0 50:24 50 minutes, 24 seconds and it is well distributed between agriculture retail and MSME and not much figure is there as far as the corporate book is concerned in the SMA it is only 50:33 50 minutes, 33 seconds three 3,600 which is there apart from the overall 4,700 relation to the ECL is there if you see 50:41 50 minutes, 41 seconds directly this stage one, stage two and stage three which is there uh in the ECL framework wherein stage one is the 50:49 50 minutes, 49 seconds standard book and the SMA zero there you see that we have been able to reduce our overall SMA zero numbers that is one 50:56 50 minutes, 56 seconds point second point is with respect to the stage two wherein SMA 1 and two will be sitting there also if you see the overall SMA number is coming down so 51:04 51 minutes, 4 seconds this under the AC E ACL guidelines also the provisions numbers will be coming down and with the kind of agility and robust that our zonal collection centers 51:13 51 minutes, 13 seconds are performing. We are very sure that we'll be able to further reduce the SMA number so that the overall impact of the ECL guidelines is reduced through the 51:22 51 minutes, 22 seconds provisionings which are there. So as far as the credit cost is concerned and the impact of the ECL guidelines on the credit cost. Yes, there will be some 51:30 51 minutes, 30 seconds impact on the credit cost side because of the ECL guidelines but we feel that it should not be more than 10 basis point on an annualized basis. 51:39 51 minutes, 39 seconds Thank you sir. So this is the last question coming up from this gentleman who's been waiting. Yeah. Uh hello sir, I am Danch from Motila. 51:47 51 minutes, 47 seconds Yes sir. Uh first of all congratulations for your fabulous numbers. Sir, I have two questions. So one is your kasa percentage which has been at 37.64%. 51:59 51 minutes, 59 seconds Uh which is by reduced by uh like from 40 41% in FY25. So the question is sir 52:07 52 minutes, 7 seconds are we with all your initiatives which you mentioned are we able to achieve the numbers of 40 41 41% in coming quarters 52:15 52 minutes, 15 seconds and by when are we going to achieve that uh second question is uh as you said you are more focused on increasing your uh 52:24 52 minutes, 24 seconds RMA book right so you have a very significant agriculture book of around 1 52:30 52 minutes, 30 seconds lakh 15,000 kes uh sir with the monsoon forecast being less lesser than expected 52:38 52 minutes, 38 seconds what impact will that have on the agriculture book and how are we going to provision for it that's sir thank you 52:46 52 minutes, 46 seconds yeah so as far as kasa is concerned you rightly said that as in percentage terms it is coming down and we have now come down to 37 uh 5% in the uh kasa 52:56 52 minutes, 56 seconds percentage terms is concerned but however if you see the ab absolute numbers the delta that we have created is more than 20,000 crores so kasa 53:04 53 minutes, 4 seconds number we have increased by from 2 lakh 80,000 crores to more than three lakh crores March 26 we have closed so our as I said that under our project uran our 53:13 53 minutes, 13 seconds clear strategy is to increase our kasa in absolute terms as I said that uh there has been a structural change in the deposits in the entire banking 53:20 53 minutes, 20 seconds system wherein more of the color of the deposit has changed and more of the resources are coming uh through the uh term deposits rather than from the kasa 53:29 53 minutes, 29 seconds franchise which is coming nonetheless we are still uh very much confident that the delta data that we will be creating in this financial year also as far as 53:37 53 minutes, 37 seconds the kasa is concerned we have set ourselves a target that we should be closing our kasa at somewhere around 330 lakh crores which is a incre increase of 53:46 53 minutes, 46 seconds around 10% in the kasa number in fi27 so with that thing in mind definitely we feel that we'll be able to bring down 53:53 53 minutes, 53 seconds the cost of deposits however having said that because there will be increase in u credit and increase in advances and we said that we have given a guidance of 15 54:02 54 minutes, 2 seconds to 16% in growth in advances So we'll have to meet those resources through u deposits only. This is will be the the 54:10 54 minutes, 10 seconds basic through which we will uh fund our credit growth which will be there. And definitely if the kasa growth will be 54:17 54 minutes, 17 seconds not up to the mark to match the increase in credit which is there definitely we'll be raising both retail term deposit and the bulk deposits which are 54:26 54 minutes, 26 seconds there. As far as the ram agriculture is concerned as you rightly said there have been the monsoon will be at somewhere around 92% kind of thing the reports 54:34 54 minutes, 34 seconds which are coming but if you see the pattern within the country now not much of droughts are happening in India there has been a very good canal network which 54:42 54 minutes, 42 seconds is there across all these states earlier we used to see that when uh the monsoon used to go down there used to be a droughtlike situation in some of these 54:50 54 minutes, 50 seconds states but if you see in the last four five years there has been some concern as far as the growth of plantation and other kinds of things is concerned on 54:58 54 minutes, 58 seconds the agriculture side but droughtlike situations are not prevalent in the last four five years because of the good canal system which has been developed across all these states in the country. 55:08 55 minutes, 8 seconds So we are very much confident that the agricultural growth that we are showing this year we had agricultural growth of 55:15 55 minutes, 15 seconds 17% this this financial year we are also confident that we'll be able to show that number and whatever the growth also you are showing seeing in the 55:23 55 minutes, 23 seconds agriculture lot of it also is contributed by the gold loan factor which is there. So gold loan also we are giving there the yield is around 9% and 55:32 55 minutes, 32 seconds hardly any NPA is there uh any asset quality issue is there in the gold loan. 55:37 55 minutes, 37 seconds So that is one uh play which is there with us through which we are able to increase our agriculture book and with a good yield on advances and also 55:45 55 minutes, 45 seconds protecting the asset quality and which will finally not impact the overall uh um uh situation wherein the drought or agriculture rainfall situation is there. 55:56 55 minutes, 56 seconds So this is just one thing I would like to share. Apart from that in agriculture we are focusing not much on core agriculture. Now we are targeting allied 56:05 56 minutes, 5 seconds agriculture uh which is a clear targets that we have given to our zones and FGMs that we want to increase allied agriculture in agriculture rather than 56:13 56 minutes, 13 seconds the core agriculture which used to be there the KCC's and the uh term loans which we to the farmers the delta that 56:21 56 minutes, 21 seconds we want to create is through the allied agriculture. So but with the kind of thing which is there we are very confident that we'll be able to increase our agriculture book and also protect the asset quality. 56:32 56 minutes, 32 seconds Thank yeah gold loan advances are somewhere 56:39 56 minutes, 39 seconds around 50,000 crores overall gold loan total. 56:48 56 minutes, 48 seconds So the entire gold loan book is not classified in agriculture. Some of that is also classified under MSME because wherever the this uh the borrower is 56:56 56 minutes, 56 seconds having Odyo Gadhar with them registration they are classified under the the MSME category also. So that is another thing which is there. So there 57:05 57 minutes, 5 seconds as I said that the yield is more than 9 uh 9% and hardly any asset delinquency is there the NPA is hardly 60 cr 57:12 57 minutes, 12 seconds something in the entire agriculture book and as per the SOP we have in case of NPA within 90 days it has to be sold and 57:19 57 minutes, 19 seconds unless and until it is a purious gold the entire recovery happens in such accounts. 57:28 57 minutes, 28 seconds So agriculture gold loan within the agriculture you are asking so around 40%. 35 to 40% it should be there. 57:38 57 minutes, 38 seconds Thank you. Thank you gentlemen. Uh let us wrap up now. It's been a long time. 57:44 57 minutes, 44 seconds Uh thank you very much MD sir and all the executive directors present on the dis and thank you very much for all the 57:52 57 minutes, 52 seconds analysts who are present here and also those who have joined online. I also 57:58 57 minutes, 58 seconds want to thank the concept PR team uh the analyst who has taken care of the analyst meet Ganesh and uh Gorov uh for 58:08 58 minutes, 8 seconds putting up a good show and uh special thanks to banks team from travel and hospitality finance IT and of course 58:17 58 minutes, 17 seconds publicity and PR. Thank you all. Good night.