Bank of Maharashtra — Q2 FY26

Bank of Maharashtra Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=HN-mSMVoHL4 Published: 7 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Bank of Maharashtra Q2 and H1 FI2026 earnings conference call. 0:10 10 seconds As a reminder, all participant lines will remain in the listenon only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:20 20 seconds Should you need assistance during this conference call, please signal the operator by pressing star then zero on your touchstone telephone. 0:28 28 seconds Please note that this conference is being recorded. 0:33 33 seconds We have with us from the management Shri Nidu Sakana, managing director and CEO, Shri Rohit Rishi, executive director and 0:42 42 seconds all chief general managers and general manager of the bank. I will now hand the conference over to Mr. Shri Nidu Sukana 0:50 50 seconds for opening remarks. Thank you and over to you. 0:56 56 seconds Thank you and good afternoon and thank you for joining this phone call. And 1:02 1 minute, 2 seconds today we have done our Q2 and HHY results and I will very quickly cover 1:10 1 minute, 10 seconds the main highlights uh while uh you would have gone through the presentation 1:17 1 minute, 17 seconds but the highlighting features our total business grew by 14% taking it to 5.63 1:24 1 minute, 24 seconds 63 lakh crores. Deposits has gone up by 12.13%. 1:31 1 minute, 31 seconds Advances have grown uh uh gone up by almost 17%. CD ratio for us has improved to 82%. 1:41 1 minute, 41 seconds Gross NPA have declined to 1.72. 1:46 1 minute, 46 seconds Net NPA have been uh declined to 18. Our provision coverage ratio is standing at 98.34. 1:57 1 minute, 57 seconds The net profit 2 has increased uh by 23% and the number is 1633 crores. Operating 2:07 2 minutes, 7 seconds profit has grown by 17% to 2500 crores. 2:13 2 minutes, 13 seconds Net interest income has increased by almost 16%. 2:17 2 minutes, 17 seconds NIM stood at a healthy 3.85%. 85% cost to income has also improved to 2:24 2 minutes, 24 seconds 37.1% ROA has improved to 1.82% roe. 2:37 2 minutes, 37 seconds Ladies and gentlemen, we have lost the line of the management. Please stay connected while I reconnect the management. Thank you. 3:33 3 minutes, 33 seconds Ladies and gentlemen, we have the management line reconnected. Takana, sir, please go ahead. 3:42 3 minutes, 42 seconds Yes. Uh sorry for that technical disruption. I was mentioning about the last item. Our capital adequacy is 3:51 3 minutes, 51 seconds improving to 18.13% within which the tier 1 is standing at 14.96 3:59 3 minutes, 59 seconds almost 15%. Uh SMA the loan book is also behaving well. SMA 1 + two which is 4:06 4 minutes, 6 seconds always an element of uh uh concern within the overall SMA book. So that SMA 4:14 4 minutes, 14 seconds 1 and two have actually gone down from 2.61% to 1.87%. 4:20 4 minutes, 20 seconds It has been a improvement of 74 pips. 4:24 4 minutes, 24 seconds Couple of things over and above these uh parameters of business growth, asset 4:31 4 minutes, 31 seconds quality, efficiency ratio, profitability and capital adequacy metrics. What has 4:38 4 minutes, 38 seconds happened is uh we have I would like to also mention about those uh S&P global 4:45 4 minutes, 45 seconds has uh assigned us a tripleB minus rating and which is three notches improvement of what other international 4:54 4 minutes, 54 seconds rating agency has uh assigned to the bank. So now we have two international agencies that have rate assigned ratings 5:03 5 minutes, 3 seconds for the bank. our gift IBU uh which was made operational in this quarter within 5:12 5 minutes, 12 seconds a period less than 6 months of the Reserve Bank of India. according approval to our application. We have 5:19 5 minutes, 19 seconds operationalized the gift IBU and we have closed this uh half year with 100 5:25 5 minutes, 25 seconds million of business uh in the IBU and there is a complete pipeline uh that is 5:33 5 minutes, 33 seconds getting built to see that we are getting more and more traction in that IBU. Uh 5:40 5 minutes, 40 seconds we are keeping aspirations. We have uh yet to put some numbers but maybe can it be a $1 billion book in the next 12 5:49 5 minutes, 49 seconds months. And of course it should be a profitable business is also our aspiration in the gift IU branch. 5:58 5 minutes, 58 seconds The rating improvements and sharp improvement which has come from uh the international rating agency. Uh we are 6:05 6 minutes, 5 seconds also seeing traction in FI holding which is going up uh steadily and very very 6:13 6 minutes, 13 seconds rapidly lately. Recently we are seeing uh interest getting built up in uh FIS who are looking and tracking our stock. 6:25 6 minutes, 25 seconds uh from from 39% FIA holding in 2023 we have uh for September 2025 the FIA 6:33 6 minutes, 33 seconds holding has improved to 2.58% likewise the mutual funds have also been 6:40 6 minutes, 40 seconds building books with our uh bank of Maharashtra script in their kitty we are also uh the bank which is 6:49 6 minutes, 49 seconds consistently outperforming the industry uh and one big enabler. I will little bit speak about that is that we are fast 6:59 6 minutes, 59 seconds expanding our presence in potential growth centers of the country and that is one thing which is not only helped us 7:07 7 minutes, 7 seconds register this industry uh more than industry performance but it is also 7:14 7 minutes, 14 seconds helping us sustain this kind of uh growth performance in the years to come 7:20 7 minutes, 20 seconds because this is a five-year plan to open thousand branches in the next five years is what the broad board approval 7:29 7 minutes, 29 seconds we are having within which in this FY we have taken one big initiative to open 7:37 7 minutes, 37 seconds 321 branches. So we are calling it as the project 321 and the plan is to open 321 7:47 7 minutes, 47 seconds branches in the next 18 months and these branches are uh shortlisted after doing 7:56 7 minutes, 56 seconds a scientific exercise using lot of data points taking help from an external agency. 8:05 8 minutes, 5 seconds Am I audible or there is an issue again? 8:08 8 minutes, 8 seconds Yeah. Sir you are audible please go ahead. 8:12 8 minutes, 12 seconds Okay thank you. Thank you dear. So uh what I was trying to uh convey is uh this uh project 3 C21 is an ambitious 8:20 8 minutes, 20 seconds initiative taken in this FY to see that 8:30 8 minutes, 30 seconds ladies and gentlemen we have lost the line of the management. Please stay connected while I rejoin the management. 9:24 9 minutes, 24 seconds Ladies and gentlemen, thank you for your patience. We have the management line reconnected. Sir, please go ahead. 9:31 9 minutes, 31 seconds Yes, thank you and I'm sorry once again for that uh uh disruption but I will continue what we were talking about is 9:39 9 minutes, 39 seconds uh the new branch opening that we have shortlisted after uh doing a scientific exercise taking help of an external 9:46 9 minutes, 46 seconds agencies and for us to understand is these are the potential growth centers of the country potential growth centers 9:54 9 minutes, 54 seconds of the nation that we are opening our presence in a phased manner and this is what is going to uh also support and 10:02 10 minutes, 2 seconds sustain our fast growth rate that we are clocking every quarter on quarter. So 10:11 10 minutes, 11 seconds whatever guidance numbers that we have been sharing uh I am satisfied as a bank as a management uh that whatever 10:20 10 minutes, 20 seconds guidance at the beginning of the year uh for the last 12 to 15 months we've been uh talking about we are uh maintaining 10:28 10 minutes, 28 seconds and achieving uh beating our own guidance uh so if you look at the the metrics of 10:38 10 minutes, 38 seconds importance to the uh investors specifically the ROA ROE NIM these numbers uh we are having a decent 10:47 10 minutes, 47 seconds guidance for NIM of 3.75% but this quarter also we have despite the rate cut impact coming in 10:56 10 minutes, 56 seconds completeness in this quarter we have been able to maintain our name uh above the uh guidance that we had shared in 11:04 11 minutes, 4 seconds the beginning and the Q3 and Q4 Four uh we we feel that with most of our deposit 11:12 11 minutes, 12 seconds maturity profile uh seeing the deposits getting repriced uh we should see that 11:19 11 minutes, 19 seconds further n contraction should not be but yes uh we are keeping a conservative number of 3.75 11:26 11 minutes, 26 seconds in terms of the n guidance. Let me take a pause there and maybe take some questions uh before we uh keep sharing couple of other things. 12:01 12 minutes, 1 second Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone 12:09 12 minutes, 9 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 12:16 12 minutes, 16 seconds requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 12:28 12 minutes, 28 seconds The first question comes from the line of Rohan Mandura from Aquarius Securities. Please go ahead. 12:35 12 minutes, 35 seconds Uh good afternoon sir. Thanks for the opportunity. So I wanted to understand uh the moment on cost of deposits this quarter which has gone up by 8 bits. So 12:43 12 minutes, 43 seconds what was the benefit from term deposit rate cut and what was the adverse impact from the current account changes the decline in car balances. 12:53 12 minutes, 53 seconds Right? So if you see our uh uh deposit uh growth for this uh quarter year on 13:00 13 minutes year we have grown deposit by 12.12 around that percent. But within which 13:08 13 minutes, 8 seconds kasa has grown at almost 15%. So focus clearly stands out to have more and more 13:15 13 minutes, 15 seconds lowc cost deposit uh in the system and uh the high cost bulk wherever we have identified which is sitting in our 13:24 13 minutes, 24 seconds deposit uh book we have been very consciously uh not renewing the bulk high-c cost 13:31 13 minutes, 31 seconds deposits. uh so what uh data I will share is that our 13:38 13 minutes, 38 seconds bulk deposits have seen a degrowth of 9.9% minus 9.9 uh deg growth in the bul 13:46 13 minutes, 46 seconds deposits but deposits uh have grown majorly from the kasa which has grown at 15% and 13:54 13 minutes, 54 seconds that's how the total story is growing at 12%. 13:59 13 minutes, 59 seconds Right. But sir question the cost of deposit which is increased. 14:03 14 minutes, 3 seconds So the cost so the cost of deposit maybe it is uh 78 bits which has uh gone up uh 14:11 14 minutes, 11 seconds uh but uh we are ladies and gentlemen we have lost the 14:19 14 minutes, 19 seconds line of the management. Please stay connected while I rejoin the management. 14:58 14 minutes, 58 seconds Ladies and gentlemen, thank you for your patience. We have the management line reconnected. Rohan, if you can please repeat your question for the management. 15:06 15 minutes, 6 seconds Yeah. Hi sir. Uh I was uh understanding the cost of deposits increased. the reasons for that 15:15 15 minutes, 15 seconds because your question was well understood and I was trying to I had already started and 15:23 15 minutes, 23 seconds I think we'll have to bear there is some technical challenge repeatedly but still I understood your question and uh as I 15:30 15 minutes, 30 seconds said focus with us is to maintain uh our uh deposit uh uh growth majorly through 15:40 15 minutes, 40 seconds through the low cost element. We have done lot of efforts to see that both the components the core uh CASA that is 15:48 15 minutes, 48 seconds coming from our branches and the institutional CASA which we focus from institutions, government departments, 15:56 15 minutes, 56 seconds ministries, uh corporates. Uh we have a separate vertical that takes care of that. These two components are being uh 16:05 16 minutes, 5 seconds strategically achieved. uh the two objectives are strategically achieved through lot of uh uh strategies that we 16:12 16 minutes, 12 seconds have put in place. Uh if I have to tell you uh uh in terms of uh business that 16:20 16 minutes, 20 seconds is happening in branches, we have done lot of product improvements. We have uh introduced products for some segments 16:28 16 minutes, 28 seconds where we were missing. So today we have a complete basket of products that is taking care of the uh professionals the 16:37 16 minutes, 37 seconds uh HNIs the NRIs uh the uh business community and uh so current saving 16:45 16 minutes, 45 seconds salaride non- saleleride we have a complete basket of products we have also looked at the process part whether the 16:52 16 minutes, 52 seconds process is a seamless uh uh helping seamless onboarding of clients to the to 16:59 16 minutes, 59 seconds the bank's business and uh once they are onboarded whether they are able to 17:06 17 minutes, 6 seconds seamlessly transact. So today if you ask me uh our mobile banking application we have revamped we have not just upgraded 17:14 17 minutes, 14 seconds our existing mobile application by uh introducing a new version but we have revamped the version and this is moving 17:23 17 minutes, 23 seconds faster and the concept of giving ease of doing business for a client that they are able to transact on this mobile 17:31 17 minutes, 31 seconds application with minimum number of clicks has been the theory in building in developing this uh mobile banking 17:39 17 minutes, 39 seconds application someone should experience it to understand what I'm indicating to and uh so lot of technology is helping in 17:48 17 minutes, 48 seconds this segment the individual core segment that is happening in branches for the institutional segment we have uh we 17:56 17 minutes, 56 seconds started with putting up a new business vertical uh calling it as new business customer acquisition vertical headed by 18:05 18 minutes, 5 seconds a lady general manager having a complete structure with her and uh reaching out the the only two k is to reach out to 18:14 18 minutes, 14 seconds institutions and uh look at their banking needs and try to get institutional deposits from them 18:22 18 minutes, 22 seconds bringing some value also to the institutional clients and understanding their specific needs and also offering some technology based solutions there. 18:32 18 minutes, 32 seconds So these two verticals are uh uh independently working and we have seen 18:38 18 minutes, 38 seconds that while the industry CASA uh uh was 44% some uh 12 to 15 months back uh has 18:47 18 minutes, 47 seconds come down to almost 36 37 but in our case we have been able to maintain our guidance to maintain CASA beyond above 18:57 18 minutes, 57 seconds 50. So even if this uh quarter is 50.35 we have little bit cost of deposits 19:04 19 minutes, 4 seconds because of the uh fixed deposits repricing is in the process to happen and 6 to 8 months is the maturity 19:12 19 minutes, 12 seconds profile where you will see that my entire portfolio gets repriced uh and uh 19:19 19 minutes, 19 seconds little bit I would uh also assign it to with the interest rate cycle today clients are also more aware 19:28 19 minutes, 28 seconds So lot of your kasa has moved to term deposits wherever the liquidity is not immediately required. Clients have 19:37 19 minutes, 37 seconds created fixed deposits term deposits for a longer duration in anticipation that the rate cut cycle will also let the 19:46 19 minutes, 46 seconds fixed deposit rates in system to go down. So that's how for me that five six bits uh increase in uh 19:55 19 minutes, 55 seconds deposits uh has happened but I think going for 20:04 20 minutes, 4 seconds ladies and gentlemen we have lost the line of the management once again please stay connected while I rejoin the management. Thank you. 21:37 21 minutes, 37 seconds Ladies and gentlemen, thank you for your patience. We have the management line reconnected. Sir, please go ahead. So 21:43 21 minutes, 43 seconds Rowan, I'm uh uh sincerely apologizing because uh it is disconnecting but I 21:50 21 minutes, 50 seconds think uh very clearly uh I said there is a core business of KASA there is a 21:57 21 minutes, 57 seconds institutional business of Kasa and we are trying to address both these components with a different strategy uh 22:05 22 minutes, 5 seconds that is working for us and we are trying to see that uh we maintain this low cost element in our deposit profile. file 22:13 22 minutes, 13 seconds which is a big enabler contributor to our bottom line and the system would have seen the average CASA at some point 22:21 22 minutes, 21 seconds of time which was in the industry 44 43 44 came down to almost 37%. But we have been able to maintain our guidance to maintain it below above 50. That is one. 22:33 22 minutes, 33 seconds Second lot of our experience is that with this uh rate uh you know cuts in 22:41 22 minutes, 41 seconds the deposit side also clients are also parking their money from the CAFA to uh 22:48 22 minutes, 48 seconds creating term deposits with us. That's how the same money. 22:52 22 minutes, 52 seconds We heard all of these points. This point is well understood. 22:54 22 minutes, 54 seconds Okay. Okay. So I think we can go to the next question. I think if I have to convey that we can go to the next. 23:01 23 minutes, 1 second Second was on uh what is the outstanding AFS reserve at the end of 2Q? 23:09 23 minutes, 9 seconds Uh it's around 340 crores uh on the ground. 23:15 23 minutes, 15 seconds Okay. And this similar number 500 crores in at the end of 1, right? 23:22 23 minutes, 22 seconds I couldn't get you. Uh the number at the end of 1K was 500 crores which is 340 right now. Yes sir. 23:28 23 minutes, 28 seconds Yes. Okay. And so lastly um there's almost 10 and a half% Q1Q increase in credit RW this quarter. So if you can 23:35 23 minutes, 35 seconds explain what what is the reason for that 23:45 23 minutes, 45 seconds audio is not come here. Come here and talk. One second. My CRO uh is just joining the call and uh he will respond. 23:54 23 minutes, 54 seconds Uh he's almost there. 23:58 23 minutes, 58 seconds Yeah. You see that total RA from the June to September has increased around 16,000 which if you break up the credit 24:06 24 minutes, 6 seconds R has increased around 15,000 and market rate has increased around 1180. If you see the credit table has increased 24:13 24 minutes, 13 seconds because of advances the gross advances increased around 14,000 and there is some extra undrawn use there. So that is 24:22 24 minutes, 22 seconds also increased around uh 7 7,000 swap is around 16,000 credit. 24:32 24 minutes, 32 seconds Okay. Okay. So uh the higher share is because of undrawn lines as well. Okay sir. Got it. Sure sir. Thank you. 24:40 24 minutes, 40 seconds Thank you. We take the next question from the line of Abhishek Kotari from Aviva India. Please go ahead. 24:48 24 minutes, 48 seconds Uh sir, uh if you could guide with respect to your growth that I'm seeing in the RAM portfolio, retail has grown very 24:55 24 minutes, 55 seconds nicely. Uh but you know and agree the growth is lagging behind. So any thoughts over there? 25:03 25 minutes, 3 seconds So uh RAM uh overall share is uh 6238. 25:09 25 minutes, 9 seconds Our guidance has been it uh to maintain it at 6040 plus - 2%. uh yes we are 25:17 25 minutes, 17 seconds doing a conscious rebalancing and uh again uh in that other two verticals the 25:24 25 minutes, 24 seconds idea behind is the loan book that we are creating and it must be of uh good 25:31 25 minutes, 31 seconds quality borrowers prime borrowers and so uh in in the agree portfolio what we are 25:38 25 minutes, 38 seconds uh making a shift is we are going to from production credit to investment credit and trying to look at uh reaching 25:48 25 minutes, 48 seconds out uh uh some uh mid-segment kind of clients. Uh 25:59 25 minutes, 59 seconds ladies and gentlemen, we have lost the line of the management once again. 26:02 26 minutes, 2 seconds Please stay connected while I rejoin the management. 26:33 26 minutes, 33 seconds Ladies and gentlemen, we have the management line reconnected. Sir, please go ahead. 26:39 26 minutes, 39 seconds So uh while the overall guidance uh is 6040 plus - 2% we are already at 62 but 26:47 26 minutes, 47 seconds if you see in the retail there are couple of products which are seeing lot of traction the housing loan home loans 26:55 26 minutes, 55 seconds are growing at uh fast growth rate of 30 31%. For us gold loans have grown at 47%. 27:05 27 minutes, 5 seconds uh vehicle loans have uh grown at 49% and these are our own set of clients who've been banking with us. We have 27:12 27 minutes, 12 seconds tweaked some schemes to introduce new uh customerfriendly schemes to uh bring them on our fold and the entire focus in 27:20 27 minutes, 20 seconds this segment is towards the uh uh big ticket advances where we are seeing the LTB is also very favorable to the bank 27:29 27 minutes, 29 seconds and we are having that comfort that this growth in the retail portfolio uh we are growing in the segment which is 27:37 27 minutes, 37 seconds constituting the prime and super prime borrowers like in the bank Today there is no uh loan that is available for a a 27:46 27 minutes, 46 seconds client having civil score less than 681 that as per the definition of trans union civil is a subprime segment and we 27:54 27 minutes, 54 seconds are uh uh so we have strengthened our underwriting benchmark. So that is one of the reasons that industry growth is supporting uh in these retail segments. 28:06 28 minutes, 6 seconds Plus we have done lot of product improvisations introducing new product lines to see that there is a good 28:13 28 minutes, 13 seconds traction in the retail in the agriculture and MSME we are also while we grow the loan book we are mindful of the asset quality uh that we are going 28:22 28 minutes, 22 seconds to the pool of assets that we are going to create. So we are focusing this time more on investment credit uh uh some big 28:31 28 minutes, 31 seconds ticket uh uh mid-segment uh kind of proposals where we will see uh lot of ancillary business opportunities coming 28:38 28 minutes, 38 seconds in gold storage mail rice mail and uh so ticket size also will improve portfolio 28:45 28 minutes, 45 seconds will also uh be there we will get some ancillary business we will get some uh tangible securities which are going to 28:54 28 minutes, 54 seconds uh being with those uh credit limits that we are going to uh consider for borrowers. So that kind of consciousness 29:02 29 minutes, 2 seconds migrating from uh production link to investment link uh credit in the production in the KCC we have already 29:10 29 minutes, 10 seconds created uh uh digital journeys and we would want the underwriting for small ticket KCC loans to be end to end 29:19 29 minutes, 19 seconds digitalized. So to begin with two states we have picked up. So state of Maharashtra uh is the first where 29:27 29 minutes, 27 seconds luckily we have the uh exposure uh good exposure and the land records in this state are fully digitalized. So with 29:35 29 minutes, 35 seconds that end to end journey is possible in underwriting for the uh small ticket size KCC loans. So that's how the 29:42 29 minutes, 42 seconds strategy is and I think in coming quarters we will see lot of traction in these two segments also. uh to to answer 29:51 29 minutes, 51 seconds your p your question in one line bank is looking at wherever profitable opportunities for growth are there we 29:58 29 minutes, 58 seconds will definitely be participating but we'll be mindful of the quality of the loan book that is getting created and 30:05 30 minutes, 5 seconds how the loan uh in times to come uh should be behaving we are fully mindful of that and then that's how we are going 30:13 30 minutes, 13 seconds to increase okay uh sir your capital consumption was high in this quarter around 193 bits. Uh 30:21 30 minutes, 21 seconds you know you have a resolution or board approval in place for fundra. So by when uh could we expect your fund raise to 30:28 30 minutes, 28 seconds come by? Will it be in uh this fiscal let's say Q4 or will it go to next fiscal? 30:36 30 minutes, 36 seconds So there are uh plans uh we have approvals in place from our board from the government RBI shareholders. Uh so 30:45 30 minutes, 45 seconds approvals are in place to go for a fund raise uh within this FYI. We will definitely we are looking at the 30:53 30 minutes, 53 seconds opportune time and opportune mode to do that and uh uh uh 31:02 31 minutes, 2 seconds the the one one aspect that I would like to share here is uh while the capital adequacy stands at almost 18% which is 31:11 31 minutes, 11 seconds our guidance to maintain it going forward uh uh and yes 193 bits that we 31:17 31 minutes, 17 seconds have consumed but if uh I factor in the profitability of these two quarters, my CR improves by another 1.72%. 31:30 31 minutes, 30 seconds So this is one thing and uh uh and coming back to my your fund raise query. 31:36 31 minutes, 36 seconds Yes, ladies and gentlemen, we have lost the line of the management once again. 31:46 31 minutes, 46 seconds Please stay connected while I rejoin the management. Thank you. 33:12 33 minutes, 12 seconds Ladies and gentlemen, thank you for your patience. The management line is facing some technical problems, so please stay connected while they fix the problem. Thank you. 33:44 33 minutes, 44 seconds Hey, 36:26 36 minutes, 26 seconds Ladies and gentlemen, we have the management line reconnected. Sir, please go ahead. 36:32 36 minutes, 32 seconds So, my apologies. I think we have been able to identify the snag and uh hopefully the call uh should not get 36:39 36 minutes, 39 seconds interrupted but please bear with us and so we were trying to uh uh explain the capital raising question yes there are 36:47 36 minutes, 47 seconds definite plans I have a 7,500 crores of uh approval from the board within which 36:54 36 minutes, 54 seconds equity is 5,000 crores the rest is debt and at the opportune time in the FY 37:00 37 minutes remaining FY uh We uh we would definitely like to uh the uh take a call 37:09 37 minutes, 9 seconds on this and opportune mode we will use to go for the fund raise. There'll be two reasons for us. 37:16 37 minutes, 16 seconds Just to ask would you be raising the entire 5,000 cr or like it'll be like 2,500 cr kind of a number. 37:25 37 minutes, 25 seconds So uh since this enabler is there and uh we take it from the beginning of the year. So that uh approval is uh on the 37:35 37 minutes, 35 seconds higher side. Uh if you ask me with healthy C of 18%. Uh there is no urgent 37:43 37 minutes, 43 seconds emergent need for leaving the growth capital. But uh going forward our guidance is to maintain at this healthy 37:50 37 minutes, 50 seconds level and that makes the case for going for a capital raise to fund the uh growth that we are uh fast clocking and 37:59 37 minutes, 59 seconds the branch expansion uh uh reaching out to new geographies is only helping us uh with more and more business 38:06 38 minutes, 6 seconds opportunities coming to the bank. And uh the second one of uh the reason with uh with us is that uh we started the last 38:16 38 minutes, 16 seconds fine with the government of India holding standing at 86.46%. 38:21 38 minutes, 21 seconds With the last rate it has come down to 79.6. 38:25 38 minutes, 25 seconds So it is below 80 now. Uh to comply with the CB MPS norm uh we have just to uh 38:33 38 minutes, 33 seconds complete this branch of 4.6 uh% And once that is happening we are uh 38:42 38 minutes, 42 seconds seeing complying with the CB guidelines of minimum public shareholding. So these two uh reasons are very much there which 38:51 38 minutes, 51 seconds will uh be uh which are uh there in our mind and at the opportune time uh we are 38:58 38 minutes, 58 seconds definitely going to uh decide uh to uh do this uh effort within this effort. 39:07 39 minutes, 7 seconds Thank you sir. 39:10 39 minutes, 10 seconds Thank you ladies and gentlemen. In the time interest of time and fairness to others we request you to restrict to two questions per participant. 39:22 39 minutes, 22 seconds We take the next question from the line of Suraj Das from Sundara Mutual Fund. Please go ahead. 39:29 39 minutes, 29 seconds Uh am I audible? Please go ahead. 39:33 39 minutes, 33 seconds Yeah. Hi sir. Thanks for the opportunity. Two question. First one is agree GNPAI has increased quite a lot over the last one year and the number is 39:41 39 minutes, 41 seconds touching almost 10% now. Anything specific that is happening there or any particular state or or uh anything there? That is question one. Question 39:50 39 minutes, 50 seconds two sir your comment on ECS uh any impact there uh on on both uh the credit cost or the asset quity side as well as 39:59 39 minutes, 59 seconds on the fee income side because now I think fee will be amotized. So these are my two questions. 40:06 40 minutes, 6 seconds So there are three elements of uh your question if I have understood correctly. 40:11 40 minutes, 11 seconds One is the uh increase in the agricultural NPA. Second is uh on fee income and what was the third part. 40:21 40 minutes, 21 seconds So uh uh this is again uh sorry fee income and credit is in the context of ECL. 40:29 40 minutes, 29 seconds Okay understood. So uh ECN uh I will take that uh and agree NPA. So agree NPA 40:38 40 minutes, 38 seconds uh this again is a uh conscious strategy to recognize the issue and then go ahead 40:44 40 minutes, 44 seconds and resolve it. So uh although what we have seen is uh the first half of the year and more particularly the first 40:52 40 minutes, 52 seconds quarter uh we would see some uh uh slippages in the agree segment but uh we 40:59 40 minutes, 59 seconds had also been trying to rebalance our agriculture loan book as I was mentioning uh uh a little while ago that 41:08 41 minutes, 8 seconds what is the segment of agriculture that we'll be looking at. who might uh 41:19 41 minutes, 19 seconds ladies and gentlemen, we have lost the line of the management once again. 41:22 41 minutes, 22 seconds Please stay connected while I rejoin the management. 42:00 42 minutes Ladies and gentlemen, we have the management line reconnected. Sir, please go ahead. 42:05 42 minutes, 5 seconds So uh we were discussing agricultural NPA. What we have seen some uh you know agriculture uh stress in some pockets in 42:14 42 minutes, 14 seconds some branches where we have seen uh incessent rains and flooding and those kind of small small issues. At the 42:23 42 minutes, 23 seconds holistic level also I mentioned about re we are uh you know uh rebalancing our 42:30 42 minutes, 30 seconds agree book and taking it towards the uh uh investment credit side. So we were uh little slow in uh doing the production 42:39 42 minutes, 39 seconds KCC credit. Uh for some time we had uh consciously decided to have the 42:46 42 minutes, 46 seconds underwriting in one level above not allow the branches. So somehow the portfolio in terms of volume has not 42:54 42 minutes, 54 seconds grown. So denominator uh actually reduced and the NPA stays there and you see the percentage uh slightly going up. 43:02 43 minutes, 2 seconds So this is one also the RBA guidelines on classifying your advances uh gold 43:09 43 minutes, 9 seconds loan advances agriculture had uh uh gone some changes and then again it has gone for some change. So that's how lot of 43:18 43 minutes, 18 seconds our agriculture classified uh uh gold loans uh we had uh marked 43:25 43 minutes, 25 seconds them as non-priority to comply with the RBA guidelines and it was a substantial number. So in real terms nothing has 43:32 43 minutes, 32 seconds happened uh in the agriculture NPA but this rebalancing plus this RBA guidelines undergoing a change which 43:40 43 minutes, 40 seconds again now up to two lakhs uh they have uh RBI has permitted and we are again re able to reclassify that to the 43:49 43 minutes, 49 seconds agriculture home loans because anything and everything that is getting to be done has to be compliant with what the regulator expectations regulator 43:58 43 minutes, 58 seconds guidelines are that is uh first and foremost almost requirement. Uh so this is how the agriculture NPA for uh the 44:05 44 minutes, 5 seconds moment uh is looking elevated but we are very consciously working on it and uh going forward we don't see any major 44:13 44 minutes, 13 seconds challenges our strategy may take a quarter or two uh when we are onboarding fresh advances uh big ticket advances in 44:21 44 minutes, 21 seconds the agree segment and we are able to build the denominator also. So you will see the percentage also normalizing in uh this this and the following quarter. 44:32 44 minutes, 32 seconds Coming to the next question is ECL. ECL uh calculations uh once uh it was 44:40 44 minutes, 40 seconds indicated as something as a forthcoming guideline. Uh so the the broad number is 44:46 44 minutes, 46 seconds there with us 2,500 crores. Uh we had already started proactively providing for ECL's uh provisioning. I am holding 44:55 44 minutes, 55 seconds in my balance sheet 250 crores of ECL provisions but uh what uh if I give you a sense of 45:03 45 minutes, 3 seconds it is 2500 crores to be uh maintained from 1st April 2027 to 2031 31st March. 45:12 45 minutes, 12 seconds So there's a glide path available. The number is requiring me to provide uh 100 45:19 45 minutes, 19 seconds to 125 crores every quarter towards ECL which is a number which is very well 45:26 45 minutes, 26 seconds managed and we can we see absolutely no challenge in making those provisions when the guidelines are coming into 45:33 45 minutes, 33 seconds effect from 1st of April. Uh and credit cost. Yes. So credit cost has 45:41 45 minutes, 41 seconds seen uh slight improvement in this uh particular quarter. Uh credit cost has 45:48 45 minutes, 48 seconds actually come down from QMQ if you look at from 1.19 to 0.92. So I think our uh 45:57 45 minutes, 57 seconds uh new underwriting norms which are put in place for the last 10 12 months uh wherein even in the individual segmented 46:05 46 minutes, 5 seconds loans we are not underwriting to the sub subprime category. Uh for the MSN loans we we are uh benchmarking our 46:14 46 minutes, 14 seconds underwriting to CMR ranks given by the transun cable. So anything which is not below the investment grade it is uh not 46:23 46 minutes, 23 seconds considered uh in the bank. So only CMR 1 2 3 4 and up to CMR 5 which are defined 46:30 46 minutes, 30 seconds as investment grade uh is what so we have restricted. So all these if you if I give you a sense a data uh home loans 46:39 46 minutes, 39 seconds that have uh happened in this bank this fantastic growth of 31 30%. Uh after we 46:46 46 minutes, 46 seconds have introduced that no home loans below 681. So uh in the last uh 10 12 months 46:54 46 minutes, 54 seconds what home loan sanctions have happened with ladies and gentlemen we have lost the 47:04 47 minutes, 4 seconds line of the management. Please stay connected while I rejoin the management. Thank you. 47:43 47 minutes, 43 seconds Ladies and gentlemen, we have the management line reconnected. Sir, please go ahead. 47:48 47 minutes, 48 seconds Yes. So I was sharing uh an example an outcome of the one simple step of uh no 47:56 47 minutes, 56 seconds underwriting in the bank below 681 in the home loan segment one product uh category. So my 27% of home loan 48:03 48 minutes, 3 seconds sanctions that have happened in the last 12 months are 800 and above civil score category. 57% has happened in civil 48:12 48 minutes, 12 seconds score category 750 and 800. So you will see the major underwriting that is happening uh is in the prime and the 48:21 48 minutes, 21 seconds super crime categories. So that's how uh in times to come, quarters to come, we will see that the slippage number which 48:28 48 minutes, 28 seconds has shown slight improvement. Uh we are on the right track of building a loan book which is uh of uh right rated good 48:37 48 minutes, 37 seconds rated borrowers, prime category borrowers and the slippage is uh which is a guidance for us is to maintain 48:43 48 minutes, 43 seconds below 1% uh we we would be uh able to maintain it on a sustainable basis. Sure 48:51 48 minutes, 51 seconds sir. Just one followup sir. On the fee income, do you see any decline in fee income because now you have to amortize 48:58 48 minutes, 58 seconds fee under ECL versus now I think of funding of uh fee income. 49:05 49 minutes, 5 seconds Yeah. Yeah. So we are uh the way we are going uh growing the uh credit and along 49:13 49 minutes, 13 seconds with fund based non-f fund based so the opportunities that we are creating for uh announcing our uh fee based 49:21 49 minutes, 21 seconds processing charges LGBD commission then we have identified other main uh uh 49:27 49 minutes, 27 seconds areas of uh augmenting the fee income uh we have gone for uh uh entering into new 49:35 49 minutes, 35 seconds partnerships. So today we are joined with SBI cards where we are offering co-branded cards and this is one of the 49:43 49 minutes, 43 seconds uh one of the uh leading credit card companies offering uh you know best of the offerings for clients. So my clients 49:52 49 minutes, 52 seconds I'm seeing uh are enrolling in large numbers. We are seeing the traction and I'm getting feebased. So like this 50:00 50 minutes couple of bank assurance is another uh area we have uh ramped up our partnerships in life and non-life and 50:09 50 minutes, 9 seconds these partners are in the process of onboarding but we are also very conscious of the misselling part of it. 50:16 50 minutes, 16 seconds So we are digitalizing the entire end to- end policy issuance so that there is uh uh no chance left for any uh income 50:24 50 minutes, 24 seconds leakage, revenue leakage and uh right selling uh practices uh customers getting what they actually require. We 50:33 50 minutes, 33 seconds are mindful of that. So all these uh elements which contribute to uh enhancing our feebased uh is definitely 50:41 50 minutes, 41 seconds in our uh to-do list and uh very consciously we want to improve this parameter of performance also. 50:50 50 minutes, 50 seconds Sure sir. Thanks so much for all the answers. And sir, one last thing uh this you have COVID provision of 1200 crores 50:56 50 minutes, 56 seconds also. So that 2500 cr of ECL provision is after adjusting for this 1200 crores or this is uh this you can use towards this 2,500 crores. 51:08 51 minutes, 8 seconds So it is not just 1200 crores of provisioning. uh today we have a doc provisioning in the balance sheet 51:16 51 minutes, 16 seconds cushion uh which is almost now 3,000 crores which which can be but this is our uh uh 51:25 51 minutes, 25 seconds every conscious strategy going by what uh guidance comes from the regulator also from time to time that these are 51:33 51 minutes, 33 seconds the the good times for the industry and all the players entities operating within it and we should be looking at 51:41 51 minutes, 41 seconds building extra extra cushions and buffers in the balance sheets. So that's how we are doing it. But 2,500 crores uh I am holding today almost 3,000 crores. 51:52 51 minutes, 52 seconds I can do it in one go but that's not what is the right prescription to do. uh 2,500 crores. Uh as against that we have 52:01 52 minutes, 1 second already built 250 and we may follow a guided guided path as is also allowed by the regulator to create the provisions. 52:12 52 minutes, 12 seconds Sure sir. Thank you so much. 52:16 52 minutes, 16 seconds Thank you ladies and gentlemen. Due to time constraint we request you to restrict to two questions per participant. 52:24 52 minutes, 24 seconds The next question comes from the line of Sedat Rajpurit from systematics group. Please go ahead. 52:32 52 minutes, 32 seconds Uh thank you sir for the opportunity. So first on gold loan uh what will be your LTV in the agree and non-aggree space. 52:47 52 minutes, 47 seconds Ladies and gentlemen, we have lost the line of the management. Please stay connected while I reconnect the management. Thank you. 53:23 53 minutes, 23 seconds There you go. 53:36 53 minutes, 36 seconds Ladies and gentlemen, we have the management line reconnected. Sir, please go ahead. 53:41 53 minutes, 41 seconds So, LTB in the gold. Yes. Uh, I got your question, sir. I'm uh uh uh replying to 53:48 53 minutes, 48 seconds that LTB in gold loans the RBI guidelines are 75% uh at all times. So for agriculture we 53:57 53 minutes, 57 seconds have kept 85 LTV and we have some variance within this range in the non-priority but uh wherever we get 54:06 54 minutes, 6 seconds higher LTV we offer uh uh uh a lesser ROI to incentivize clients to come and 54:15 54 minutes, 15 seconds uh pay higher rate uh I mean if they want more loan they have to pay me a higher pricing. the pricing is tweaked 54:22 54 minutes, 22 seconds to uh towards you know lower the higher LTV which is our safety but in agriculture segment we are 85 54:32 54 minutes, 32 seconds all our product variants are following the RBI LTB norm of minimum 75% at all times 54:41 54 minutes, 41 seconds the second on your uh small and medium segment uh in the segment sequentially the uh NPA have gone up so what is the 54:50 54 minutes, 50 seconds trend that we are seeing are that incremental pain that is in the segment and also if you can so these are members say below above 5 cr so if you can give 55:00 55 minutes some trend that you have observed in say below 5 cr also 55:06 55 minutes, 6 seconds so uh the the NPA in the lower segment uh we are trying to address in a 55:13 55 minutes, 13 seconds long-term basis so mostly for uh like mudra segment loans we have uh created 55:21 55 minutes, 21 seconds digital journeys online end to end. So uh a customer can without reaching to 55:29 55 minutes, 29 seconds our branch online make the application the processing the documentation and uh 55:36 55 minutes, 36 seconds dispersement it happens end to end online. So uh we we what we do for maintaining the quality part of it that 55:44 55 minutes, 44 seconds the uh rules uh we are prescribing in this digital journey bres are decided by 55:51 55 minutes, 51 seconds the bank to see that the beneficiaries uh are the right kind of beneficiaries that are uh uh entering into this loan 56:00 56 minutes book my system uh once they follow this uh underwriting and our experience is 56:07 56 minutes, 7 seconds whatever physical mode that we have been asked while doing legacy uh the the the loan book that is getting created 56:15 56 minutes, 15 seconds through digital sanctions end to end digital journeys the quality the stress level everything is far far better. So 56:24 56 minutes, 24 seconds with that the low ticket uh loans we are migrating whether in the agree segment 56:30 56 minutes, 30 seconds or in the uh micro uh MSME segment we are all migrating to uh this digital 56:38 56 minutes, 38 seconds journeys within this uh we also have done uh lot of co-ending partnerships 56:46 56 minutes, 46 seconds almost 8 to nine co-ending partnerships we are having uh today and of course the RBI guidelines 56:54 56 minutes, 54 seconds have undergone change and I have to make it compliant now uh with those things 56:59 56 minutes, 59 seconds but we have uh reached a good uh through co- lending where we are getting 57:07 57 minutes, 7 seconds a reasonable pricing and we are uh having this co-ending and the business 57:14 57 minutes, 14 seconds that happens entirely digitalized end to end is digital so there is no intervention from the branch when they 57:22 57 minutes, 22 seconds are dealing with the low ticket size. So this is uh the broad way to look at the micro uh and that kind of stress that uh 57:31 57 minutes, 31 seconds generally may be experienced in the lower segment and pricing the risk also properly. 57:37 57 minutes, 37 seconds But sir, are you seeing some incremental stress in the MSN space of late? 57:44 57 minutes, 44 seconds So uh it is not something too alarming uh uh in in the retail and MSME if you 57:51 57 minutes, 51 seconds ask me. uh the stress which is there so uh retail more than 50% of book is home 57:59 57 minutes, 59 seconds loans and home loans it is backed by a mortgage and if there is a account which is experiencing stress and uh tomorrow 58:09 58 minutes, 9 seconds SMA2 uh it will slip to a delinquent category we can start the recovery action very 58:17 58 minutes, 17 seconds fast and with a mortgage I'm able to recover my dues also and we are seeing quick upgrades also happening because uh 58:25 58 minutes, 25 seconds since it's backed by mortgage and uh the value of security only appreciates 58:32 58 minutes, 32 seconds so we are not seeing any stress in that retail element but yes ladies and gentlemen we have lost the 58:41 58 minutes, 41 seconds line of the management please stay connected while I rejoin the management 59:11 59 minutes, 11 seconds Ladies and gentlemen, thank you for your patience. We have the management line reconnected. Sir please go ahead. 59:16 59 minutes, 16 seconds So just just final question sir on the MSME particularly sir are you seeing an incremental stress. 59:23 59 minutes, 23 seconds So MSME in fact if you see my absolute number uh it has percentage sum it has gone down uh from two week which number it is. 59:36 59 minutes, 36 seconds uh in the presentation if that is accessible to you sir uh MSME uh has the stress number where is it 59:46 59 minutes, 46 seconds from 2.9 to 1.7 so year on year if you see September 24 was 2.39 it has come 59:54 59 minutes, 54 seconds down to 1.73 now if you see for my bank uh I mean uh the 1:00:04 1 hour, 4 seconds MSME portfolio is also behaving Yeah, there's no issue. 1:00:09 1 hour, 9 seconds Thank you. We take the next question from the line of Akshai Badlani from HDFC Securities. Please go ahead. 1:00:17 1 hour, 17 seconds Hello. 1:00:19 1 hour, 19 seconds Yeah. Hi. Thank you for taking my question. Uh I just wanted to understand given the fact that the ECL provisions you know the impact is 100 to 125 K per 1:00:28 1 hour, 28 seconds quarter. So what are we sensing in terms of a credit cost like a sustainable credit card credit cost guidance if we 1:00:36 1 hour, 36 seconds could get also given the fact that our tax rate you know would get normalized also at uh you know maybe some extent 1:00:44 1 hour, 44 seconds within 26 or 27. So what could be the normalized credit cost uh you know range that we are looking for 1:00:53 1 hour, 53 seconds right? So credit cost guidance uh has been to maintain it below one and if you see uh September 25 uh we have we have achieved 0.92%. 1:01:06 1 hour, 1 minute, 6 seconds On a half yearly basis it is marginally two basis point above 1.02. 1:01:12 1 hour, 1 minute, 12 seconds So uh I think uh uh we we are seeing uh that the the steps that we have taken to 1:01:19 1 hour, 1 minute, 19 seconds keep the credit cost in line we are uh delivering the results and this guidance number going forward also we would be uh 1:01:28 1 hour, 1 minute, 28 seconds maintaining to keep the credit cost below 1%. 1:01:32 1 hour, 1 minute, 32 seconds This is including the ECL impact as well or that we'll additionally provide uh for the next four to five years. Right. 1:01:42 1 hour, 1 minute, 42 seconds Right. So, so uh mostly if you see uh in terms of 1:01:50 1 hour, 1 minute, 50 seconds direct nouns uh if you look at my NNPA it is 0.18. 1:01:56 1 hour, 1 minute, 56 seconds Now to maintain that kind of NNPA number uh uh when whenever every quarter every when whenever we are encountering 1:02:05 1 hour, 2 minutes, 5 seconds slippages so as against the RC norm of providing 15% on day one we are providing 100%. So that's how my credit 1:02:15 1 hour, 2 minutes, 15 seconds cost also looks elevated. But if I uh say from the direct perspective it is 1:02:21 1 hour, 2 minutes, 21 seconds ranging from 04 to 045 uh in real terms. If I look at as per the regulator norms my credit cost is4%. 1:02:31 1 hour, 2 minutes, 31 seconds But because of this maintaining the fine and NPA of 0.18 I am providing 100% 1:02:40 1 hour, 2 minutes, 40 seconds against the regulatory prescribed of 15%. 1:02:44 1 hour, 2 minutes, 44 seconds Understood. Understood. Uh then just uh another we also hold sorry just to add we also 1:02:51 1 hour, 2 minutes, 51 seconds hold uh our uh PCR if you see is 98.37 1:02:58 1 hour, 2 minutes, 58 seconds now with 98.37 I don't have uh the pressure of uh aging 1:03:04 1 hour, 3 minutes, 4 seconds provisions it's mostly uh book which is provided for minus TW it is also 90.37 1:03:13 1 hour, 3 minutes, 13 seconds so with that kind of high provisioning we are holding uh the aging provision question is also not there. 1:03:21 1 hour, 3 minutes, 21 seconds Understood. Understood. Got it. Got it. 1:03:24 1 hour, 3 minutes, 24 seconds Uh the second question was uh you know uh given the fact that uh you have given this target of 321 branches you know in 1:03:30 1 hour, 3 minutes, 30 seconds the next 18 months uh how do we uh you know in which geographies uh are we seeing you know these incremental branches? 1:03:42 1 hour, 3 minutes, 42 seconds you know which geographies do we do we you know how much of it would be like you know non- Maharashtra uh you know given the fact that you know we are 1:03:51 1 hour, 3 minutes, 51 seconds looking to expand beyond Maharashtra as well so which kind of geographies are we looking for to expand you know 1:03:59 1 hour, 3 minutes, 59 seconds if you ask me uh uh Maharashtra which is uh not that it is not important the 1:04:07 1 hour, 4 minutes, 7 seconds highest contributing state to the nation's GDP we all know is Maharashtra But our uh current branch presence uh 1:04:15 1 hour, 4 minutes, 15 seconds gives us a sense that we adequately represent. 1:04:22 1 hour, 4 minutes, 22 seconds Ladies and gentlemen, we have lost the line of the management. Please stay connected while I rejoin the management. Thank you. 1:04:50 1 hour, 4 minutes, 50 seconds Ladies and gentlemen, we have the management line reconnected. So, please go ahead. 1:04:55 1 hour, 4 minutes, 55 seconds Yes. So, I I was uh responding to our branch expansion strategy. Sir, as I explained, we are uh adequately 1:05:05 1 hour, 5 minutes, 5 seconds represented within Maharashtra. So our uh expansion is all uh beyond Maharashtra outside Maharashtra and uh 1:05:14 1 hour, 5 minutes, 14 seconds if you see uh 12 months from now our branch ratio was 52% 1:05:22 1 hour, 5 minutes, 22 seconds uh Maharashtra and the other side is non-Marashtra that ratio has changed to 42% 1:05:30 1 hour, 5 minutes, 30 seconds now in Maharashtra rest is all outside Maharashtra and the thousand branches that we have taken approval and the 321 1:05:40 1 hour, 5 minutes, 40 seconds it is all opening branches outside Maharashtra and very consciously uh we are planning our presence where two 1:05:49 1 hour, 5 minutes, 49 seconds things are happening one there is a existing banking business potential already there second the growth is also 1:05:56 1 hour, 5 minutes, 56 seconds happening so the scientific work that we have done using lot of data points they 1:06:03 1 hour, 6 minutes, 3 seconds have down to the pin code level so once center suppose has three pin codes. A Kanur city if has three to four pin 1:06:11 1 hour, 6 minutes, 11 seconds codes. We have a recommendation from the external expert that this is a pin code that you should be opening the branch. 1:06:20 1 hour, 6 minutes, 20 seconds So uh where the city is expanding. So that makes lot of sense and so we are 1:06:25 1 hour, 6 minutes, 25 seconds opening branches where the uh existing banking potential is there and potential 1:06:33 1 hour, 6 minutes, 33 seconds for growth is also there. So our sense is uh that uh when you are going to be 1:06:41 1 hour, 6 minutes, 41 seconds one one another player in a matured market, it'll be very difficult to get 1:06:48 1 hour, 6 minutes, 48 seconds traction. But if you are going to open your shops in in places where the opportunities are increasing, business 1:06:57 1 hour, 6 minutes, 57 seconds is growing, you will find that there'll be a scope for a new player to also garner uh reasonable business in the 1:07:06 1 hour, 7 minutes, 6 seconds first year of operations. And we have very clear laid down metrics that if it's a metro branch that branch how much 1:07:15 1 hour, 7 minutes, 15 seconds of business in the next 12 months of opening is that they will be expected to garner within which what should be the 1:07:22 1 hour, 7 minutes, 22 seconds ratio of advances what is deposits and uh we would we would expect a branch on 1:07:30 1 hour, 7 minutes, 30 seconds their own to become a profit center head for us. So that's a very clearly measurable metrics for the new branches in metro, urban, semi-urban and rural. 1:07:42 1 hour, 7 minutes, 42 seconds Also if you see my business new business uh vertical that I mentioned about they are now in this year given five focus 1:07:51 1 hour, 7 minutes, 51 seconds states which are of course Maharashtra we have a uh strong patronage we are building on that building on that 1:07:59 1 hour, 7 minutes, 59 seconds relationship through more cross-selling to the institutional clients also but outside Maharashtra replicating 1:08:06 1 hour, 8 minutes, 6 seconds our experience and handling uh uh institutional business in high five focus states. If you ask me those focus 1:08:14 1 hour, 8 minutes, 14 seconds states, these are the states where uh the central allocations are coming in big numbers. So we have done an 1:08:22 1 hour, 8 minutes, 22 seconds analysis, studied the budget, the allocations and we have a sense that there is always a scope for a new player to even garner institutional business. 1:08:32 1 hour, 8 minutes, 32 seconds So these five focus states my new business vertical uh uh approaches and 1:08:39 1 hour, 8 minutes, 39 seconds they they are able to offer understand their needs and offer customized techbased solutions and get that 1:08:46 1 hour, 8 minutes, 46 seconds business on uh on the board. uh we have got lot of tractions from this initiative and this year we have only 1:08:53 1 hour, 8 minutes, 53 seconds gone ahead and strengthened the vertical f further with every 50 zonal offices having some extended arm of the new 1:09:01 1 hour, 9 minutes, 1 second business vertical. So that's how we are uh approaching the branch expansion strategy. 1:09:10 1 hour, 9 minutes, 10 seconds Thank you ladies and gentlemen. Due to time constraint we take that as a last question and we conclude the question and answer session. 1:09:18 1 hour, 9 minutes, 18 seconds I now hand the conference over to Shri Nidu Sakana for his closing comments. 1:09:24 1 hour, 9 minutes, 24 seconds Right. So uh um I think uh there were uh rounds of disruptions and probably uh 1:09:33 1 hour, 9 minutes, 33 seconds some time got consumed. Um but we are uh very actively and aggressively doing the 1:09:41 1 hour, 9 minutes, 41 seconds reach out uh outside these uh quarterly calls and meeting the investors and uh 1:09:48 1 hour, 9 minutes, 48 seconds analysts and uh the community as a whole both domestic and foreign and I think uh 1:09:56 1 hour, 9 minutes, 56 seconds uh that kind of initiative will keep going on and uh thank 1:10:03 1 hour, 10 minutes, 3 seconds thank you on behalf of Bank of Maharashtra. That concludes this conference. Thank you for joining us and you may now disconnect your lines.