Bank of Maharashtra — Q3 FY26

Bank of Maharashtra Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=UfO-c6EIeNI Published: 4 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the earning conference call for Q3 FY2526 results of Bank of Maharashtra. 0:10 10 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation 0:17 17 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please 0:26 26 seconds note that this call is being recorded. I now hand the conference over to Miss Margaret Mishra. Thank you and over to you Margaret. 0:35 35 seconds Good evening everyone. We have the following members of management with us today. Mr. Mufa, managing director and 0:43 43 seconds CEO. Mrs. Roit Rishi and Mr. Khad Kiran, executive directors along with chief general managers and general managers of 0:52 52 seconds the bank. I will now hand over the call to the management Mr. Sapela, managing director and CEO to walk us through the 1:00 1 minute quarter. Thank you all and over to you sir. 1:05 1 minute, 5 seconds Thank you and uh thank you all uh for joining this uh con call. Uh we have uh 1:13 1 minute, 13 seconds finalized our results uh today and I would say uh this has uh been yet another quarter where we have uh 1:22 1 minute, 22 seconds consistently and uh uh I would say for last couple of years one of the best quarters in terms of profitability also 1:30 1 minute, 30 seconds numbers I will very quickly share but before that let me uh share that uh the guidance that we had kept in the 1:39 1 minute, 39 seconds beginning of the year we are uh the first two quarters and now this uh Q3 we are well above our guidance number on 1:47 1 minute, 47 seconds all the parameters uh we have been achieving our guidance I will quickly share so total business uh against our 1:55 1 minute, 55 seconds guidance of 15% gross uh yearon year 17.24 24 and we reached 5 lakh 95,000 2:02 2 minutes, 2 seconds crores. Total deposits have increased by uh 15.3% against the guidance number of 14%. 2:11 2 minutes, 11 seconds Advances has increased uh at uh nu uh 19%. 2:18 2 minutes, 18 seconds Uh sorry advances against the guidance token guidance of uh 17% have uh 2:26 2 minutes, 26 seconds increased by 20% yearon year. I uh then kasa share has been maintained at uh 2:33 2 minutes, 33 seconds above 50%. We are doing 50% this uh year also. This quarter also our RAM to 2:40 2 minutes, 40 seconds corporate share which was 6040 plus minus 2 we have done 63 uh 20 uh 6337 2:48 2 minutes, 48 seconds share RAM growth against the guidance of 20% we are exceeding that uh number also 2:55 2 minutes, 55 seconds within the retail the verticals that are growing in the bank home loans have grown uh yearon year at 28% vehicle 3:04 3 minutes, 4 seconds loans 54% gold loans 56% retail overall has grown at 36% 3:12 3 minutes, 12 seconds yearonear. Our uh stress in the loan book is very well managed. Uh we have 3:19 3 minutes, 19 seconds improved on this metrics also. Overall stress number stands at 3.35% 3:25 3 minutes, 25 seconds within which SMA plus2 is 1.69% which is an 18 bits improvement. 3:33 3 minutes, 33 seconds In terms of above five crores, the stress stands at 0.19%. 3:42 3 minutes, 42 seconds The gross NPA and the NPA the numbers are uh 3:49 3 minutes, 49 seconds also very well managed. Our gross NPA in terms of percentage has got reduced from 3:55 3 minutes, 55 seconds 1.72 in the last quarter to 1.60 this quarter. The net NPA has improved from 4:03 4 minutes, 3 seconds 0.18 in the last quarter to 0.15% this quarter and we are well within our 4:11 4 minutes, 11 seconds guidance that is to maintain our gross NPA less than 2% and net NPA at less than 0.25%. 4:22 4 minutes, 22 seconds the ROA the ROE and NIM numbers uh against the guidance of uh 3.75 4:30 4 minutes, 30 seconds we have achieved 3.87 ROA guidance 1.75 4:38 4 minutes, 38 seconds we have achieved 1.86 ROE guidance to maintain ROE above 20% we have actually achieved in this quarter 23.79%. 4:50 4 minutes, 50 seconds Our cost to income is to be maintained below 40. Against that guidance we have done 37.19%. 4:59 4 minutes, 59 seconds Yield on advances stands at 8.95%. 5:03 5 minutes, 3 seconds We have experienced also reduction in our costs and cost of fund 5:10 5 minutes, 10 seconds stands at 4.10%, cost of deposit stands at 4.47%. 5:18 5 minutes, 18 seconds Overall the profitability has been uh good in this quarter. We have been able to clock our highest ever quarterly 5:27 5 minutes, 27 seconds profit of 1,79 crores and the 9 months net profit has 5:34 5 minutes, 34 seconds exceeded 5,000 crores. It stands at 5,05 crores. We are maintaining a healthy CR 5:43 5 minutes, 43 seconds against the guidance of keeping the number above 16% we have a CR of 17.06%. 5:52 5 minutes, 52 seconds C1 is maintained at 13.10%. 5:57 5 minutes, 57 seconds In this uh 9 months we have also seen uh OFS issuance by the government and we 6:06 6 minutes, 6 seconds are today MPS compliant bank with GI holding standing at 73.6%. 6:13 6 minutes, 13 seconds ratings during the year uh beyond one international rating from Fitch. We had uh approached S&P Global and they 6:22 6 minutes, 22 seconds assigned us B minus stable in September 2025. 6:28 6 minutes, 28 seconds Our long-term rating is A+ table from Ikra and Care. 6:36 6 minutes, 36 seconds Short-term rating is A1 plus from Crystal. 6:41 6 minutes, 41 seconds Looking at this good profitability, we have also looked at uh considering payouts of in terms of interim dividend. 6:51 6 minutes, 51 seconds I'm happy to share that 10% interim dividend has been approved in our board today. 7:00 7 minutes I will take a pause and I think we will take more questions uh from your side. 7:06 7 minutes, 6 seconds The detailed presentation I'm sure is made available to you and you would have gone through those and we would like to take queries from you and respond to those. Thank you. 7:17 7 minutes, 17 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone 7:25 7 minutes, 25 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. 7:36 7 minutes, 36 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 7:46 7 minutes, 46 seconds We'll take a first question from the line of Ashok Amera from ASCON. Please go ahead. 7:53 7 minutes, 53 seconds Thank you. Uh uh compliments to you sir Nidhusar and the entire team Rohir Praasa and the top management of the 8:01 8 minutes, 1 second bank of Maharash and the other staffs for and very very excellent uh quarter results wise if you see and you rightly 8:10 8 minutes, 10 seconds said one of the highest quarterly profit uh taking the bank uh in fact uh now the 8:18 8 minutes, 18 seconds size of the bank is also increasing you are now going to touch uh maybe the next quarter 6 and a half uh lores of the 8:26 8 minutes, 26 seconds business. So quite a good sizable bank and my compliments to you sir for the fantastic show. Uh having said that sir hello am I audible? 8:38 8 minutes, 38 seconds Yes you are. Yes sir. Please go ahead. 8:41 8 minutes, 41 seconds Yeah. So uh just one one or two couple of observation and a few points. uh 8:49 8 minutes, 49 seconds while uh in this quarter also we have grown uh in this quarter we have grown well on the uh credit front as well as 8:56 8 minutes, 56 seconds the even uh deposit also but overall if you look at the 9 months uh growth in the deposits 9:03 9 minutes, 3 seconds it is only 4.73% I don't take the whole year but if 9 months which means in the in the in the last quarter of this uh 9:12 9 minutes, 12 seconds this January March quarter uh we'll have to raise the deposit of almost about 29 30,000 crores to reach the target of 9:20 9 minutes, 20 seconds that 14% of the deposit. So just like in the previous year you have achieved that this year too are you confident of 9:28 9 minutes, 28 seconds achieving uh this gap or bridging this gap uh of about 9% for the whole year. 9:35 9 minutes, 35 seconds So on on the deposit front and this has basically affected our uh I mean rather affected the CD ratio also which has gone up very high at 85%. 9:46 9 minutes, 46 seconds and CR CR also has come down to now 17.06%. 9:52 9 minutes, 52 seconds So I just want to like to have your comments on this that how are we placed or are we going to achieve the deposit target? This is my question once. 10:01 10 minutes, 1 second So Amira G uh the deposit uh guidance that we have kept is 14% which will be 10:08 10 minutes, 8 seconds maintained. I would like to bring to uh this uh uh notice that uh if you see the 10:16 10 minutes, 16 seconds deposit growth which is lagged the credit growth but within the deposit the composition that has grown in the bank 10:24 10 minutes, 24 seconds is the low cost component. So kasa even in the last quarter if you uh ask me 12% was the total deposit growth within 10:33 10 minutes, 33 seconds which kasa grew by 14%. In this quarter the the total deposit has grown by 15% but within which CASA has grown by 16%. 10:42 10 minutes, 42 seconds Year on year now the focus is very very clear to raise low cost component of the deposit very consciously. This is our 10:51 10 minutes, 51 seconds strategy for last couple of quarters to uh let high cost world deposit leave our 10:58 10 minutes, 58 seconds bank. If uh we don't need that kind of uh funding and we have like we have tried to look at other alternative 11:06 11 minutes, 6 seconds sources of raising resources. We have gone for almost uh 14 15,000 crores of 11:13 11 minutes, 13 seconds refinance transactions when at when at uh appropriate time during the year carving some of our portfolio we have 11:21 11 minutes, 21 seconds been able to uh raise resources at uh a blended rate of six 6 and a half% which have been quite beneficial and this is 11:30 11 minutes, 30 seconds coming with no uh over hang for CR and SLR requirements so it was a conscious 11:37 11 minutes, 37 seconds strategy on our part. In fact, uh last in this quarter we have seen the bul deposits for the first time we have 11:45 11 minutes, 45 seconds regrown year on year by 7% in the last uh quarter and this is uh uh overall the 11:54 11 minutes, 54 seconds DRRi component also from total deposits bulk uh the DRI which was as high as uh 12:02 12 minutes, 2 seconds 13 uh we have slowly and gradually let it come down and it stand it should be at 5.0 08. So it was a conscious 12:10 12 minutes, 10 seconds strategy and that is also a impact on uh the CD ratio going up. What we feel that 12:18 12 minutes, 18 seconds it is not uh the the bulk high cost is a function of rate of interest that we will decide and we can easily get that 12:27 12 minutes, 27 seconds business to enter our system. But we are more conscious on the profitability aspect of that and at the right moment 12:35 12 minutes, 35 seconds we will keep looking at raising more of the lowc cost deposits and the priority will also be towards retail deposits 12:44 12 minutes, 44 seconds which are more stable don't experience volatility there we keep offering some special schemes uh offering some special 12:52 12 minutes, 52 seconds rates to get that kind of a deposit in our uh bank. So this is how we are managing CD ratio is also an outcome of 13:00 13 minutes that but at the appropriate time we will be taking call during this quarter and uh a lot of things do happen in the Q4 13:08 13 minutes, 8 seconds we are all aware that's how the industry experiences and I will have no element 13:14 13 minutes, 14 seconds of uh doubt that 14% that objective is in mind uh will not be achieved. 13:22 13 minutes, 22 seconds Yes sir, point well taken sir. Uh in fact you are known for your kasa which is of course a low cost deposit and it 13:29 13 minutes, 29 seconds is maintained still in this difficult times also at almost about at 50%. 13:34 13 minutes, 34 seconds Though it has gone down little bit from March of 53% to 50% but this is commendable even to uh maintain this 13:41 13 minutes, 41 seconds also sir. uh having said that so now coming to this our overall profitability uh the overall profitability of the bank 13:49 13 minutes, 49 seconds as such is very good but if you look at the treasury side I think in this quarter we have suffered uh the profit 13:57 13 minutes, 57 seconds on the investment I mean the loss of about 180 cr as compared to the profit of 99 cr in the last quarter and even if 14:05 14 minutes, 5 seconds you look at the segment wise treasury profit also that has also gone down to 106 cr against 433 3 crores in the last 14:13 14 minutes, 13 seconds quarter. So there is definitely some pressure on this. So going forward uh for the remaining one quarter of this 14:21 14 minutes, 21 seconds financial year, how do we see ourself going and making at least the offsetting this some of the treasury losses which 14:28 14 minutes, 28 seconds have taken place or rather coming into the profit which adds to the overall profit of the banks and make it more profitable. 14:37 14 minutes, 37 seconds So uh if you if you uh before I start looking at this let me just give you one more number. Kasa percentage has 14:45 14 minutes, 45 seconds actually improved in this quarter by 26 dips yearon year. So that again is a substantial improvement. uh in terms of 14:52 14 minutes, 52 seconds treasury income and the number that is you are seeing there is a one of uh 290 crores of Maharasha Grammine Bank and 15:01 15 minutes, 1 second Vid Kungan Grammine Bank amalgamation which has resulted in this uh 290 crores of one-time hit and if you exclude that 15:10 15 minutes, 10 seconds treasury also will be seen quarterly profit of around 115 crores 112 crores yeah 15:19 15 minutes, 19 seconds oh that's good sir so it means in the next quarter This 290 if you remove and add to the whatever the treasury profit is there 15:27 15 minutes, 27 seconds then that will be added further to the bank's overall profit and it will be accordingly can be seen and analyzed uh uh you know the bank's performance 15:36 15 minutes, 36 seconds coming sir coming to the uh uh if you look at the little bit of the composition in the segment wise uh you 15:45 15 minutes, 45 seconds know results which are being always furnished along with the requirement of Reserve Bank of India. So here if you look at the uh profitability segment 15:54 15 minutes, 54 seconds wise then in the retail book our profit has gone up to 1,50 crores as against 673 crores in the last quarter you know 16:03 16 minutes, 3 seconds almost about 400 cr wholesale book is also little bit better from 80 to 802. 16:09 16 minutes, 9 seconds So is there any recomposition is there any like like maybe the gold loan or agree loan reclassification between 16:17 16 minutes, 17 seconds retail and wholesale book or some or uh I mean what is the reason for such a segment wise such a high jump in the retail profitability sir. 16:29 16 minutes, 29 seconds So if you look at uh uh the portfolio and the growth the main uh the elements 16:35 16 minutes, 35 seconds in the retail uh segments uh the individual in the retail advances agriculture MSME advances if I talk of 16:44 16 minutes, 44 seconds retail uh home loans are experiencing a year-on-year growth of 28% vehicle as a portfolio where we have focused on big 16:52 16 minutes, 52 seconds ticket business with our existing clients has grown at 54% gold itself is growing at 56%. 17:00 17 minutes And uh we have also entered into uh co-ending partnerships almost nine uh 17:06 17 minutes, 6 seconds have been signed in up to this time and where both in uh majorly in the segment 17:13 17 minutes, 13 seconds of gold uh then housing and MSME. We are also signed up with the full lending 17:19 17 minutes, 19 seconds arrangements and that is also a sizable book that has been built up and where we have got uh good pricing uh for this 17:28 17 minutes, 28 seconds business that has entered the bank. So uh this is how but uh let me tell you we are wherever we are growing 17:36 17 minutes, 36 seconds simultaneously our corporate book also with the corporate uh growth of year on year uh 19% I think it's a very healthy 17:46 17 minutes, 46 seconds uh where the industry may be a singledigit growth uh and we are expanding into areas where new 17:53 17 minutes, 53 seconds opportunities are visible new profitable opportunities are visible we have done lot of green financing renewable energy projects. We have done 18:02 18 minutes, 2 seconds data centers uh and and the like uh EV segment. So a lot of this kind of 18:09 18 minutes, 9 seconds funding uh has been done uh in the bank and portfolio has gone up. So contribution will keep coming from all 18:16 18 minutes, 16 seconds the sectors and we will participate in any kind of opportunity that is visible to us which where the only underlying 18:24 18 minutes, 24 seconds thing in the corporate segment whether we understand the risks whether we are able to manage it well and uh if it is a 18:33 18 minutes, 33 seconds profitable opportunity whether in the retail segment or in the corporate segment we will definitely participate. 18:40 18 minutes, 40 seconds So the last question sir on the slippages uh our slippages this quarter has gone up little high little higher at the 700 18:48 18 minutes, 48 seconds and almost 750 crores uh as compared to range of 650 to 700 crores. So uh is it 18:55 18 minutes, 55 seconds is there any oneoff uh this thing of 100 to 100 200 cr or it is an common normal things in the quarter which is going to 19:02 19 minutes, 2 seconds be followed in the coming quarter too sir. Now of slippages also if you look at the ratio our advanced book is 19:10 19 minutes, 10 seconds increasing in terms of percentage it is 1.2%. The same was the figure last year and even one year back also we were around this range only. 19:20 19 minutes, 20 seconds So there is nothing alarming that is solved in the usual course of business. 19:24 19 minutes, 24 seconds uh that's what I would like to say and just to supplement your observation on treasury income and these are already 19:32 19 minutes, 32 seconds put the things in the right perspective but uh if you exclude that oneoff item which has resulted uh by way of because of our investment in NGB 19:41 19 minutes, 41 seconds in the last year entire net profit on our investments was 220 cr and if we remove this oneoff item then our 9 month 19:49 19 minutes, 49 seconds profit is 352 cr which shows marked improvement similarly on the reservation Also last year our entire year profit 19:56 19 minutes, 56 seconds was 63 cr. This year in 9 months we have done 107 cr. So uh core operations are profit they are improving. They are 20:04 20 minutes, 4 seconds result they are contributing more towards profitability in the current financial year. 20:10 20 minutes, 10 seconds Great sir my compliments to you once again and all the best to you all. I'll come back again if the time permits sir. Thank you. 20:19 20 minutes, 19 seconds Thank you. We'll take our next question from the line of Mahuk Arjania from Nwama. Please go ahead. 20:27 20 minutes, 27 seconds Hello. Congratulations. 20:29 20 minutes, 29 seconds So, uh I just wanted one clarification first that uh uh it's fair to say that you had absolutely no impact from the 20:38 20 minutes, 38 seconds new labor codes. Uh is that's my first question. 20:44 20 minutes, 44 seconds So, uh we we have done our assessments. 20:48 20 minutes, 48 seconds It is uh u very small amount uh around 33 lakhs is the figure with the uh 20:55 20 minutes, 55 seconds keeping into account our contractual employees, our regular employees and uh that is a number which is uh very 21:03 21 minutes, 3 seconds insignificant and uh needs no discussion is what the sense we are having. uh with 21:09 21 minutes, 9 seconds the new labor code uh new rules probably are under the uh framing and if uh new 21:18 21 minutes, 18 seconds interpretations or within the code new rules are seen. We will keep a watch on that and see how it is impacting. But as 21:27 21 minutes, 27 seconds I said it is only a small amount of 33 lakhs uh on account of the new labor code uh the rules which are applicable 21:35 21 minutes, 35 seconds to us is the impact on bank of Maharashtra and that includes the gratuty contribution and everything. 21:42 21 minutes, 42 seconds Yes ma'am. Yes sir. 21:45 21 minutes, 45 seconds Okay. And uh sir my second question uh is on the LDR only. So the LDR has shot 21:53 21 minutes, 53 seconds up and that's true of the system. It's not unique only to Bank of Maharashtra right and previously RBI has always gotten worried when the LDR touches 80. 22:03 22 minutes, 3 seconds Now the system LDR is 82%. So do you uh foresee 22:09 22 minutes, 9 seconds uh uh any reg regulator action or soft nudge from the regulator given that the 22:16 22 minutes, 16 seconds system LDR is rising so much and it's already above the comfort level of 80% that has been historically the case. 22:26 22 minutes, 26 seconds So uh uh the LDR uh in my case we are keeping a guidance of maintaining around 22:33 22 minutes, 33 seconds 8384 in the present circumstances uh and we feel that is the best uh prescription in terms of able to 22:42 22 minutes, 42 seconds generate and max uh our good profitability. So uh uh I also had mentioned to uh previous uh query 22:51 22 minutes, 51 seconds wherein very consciously we have been looking at other alternative sources including infrastructure bonds uh and 23:00 23 minutes which has also contributed in some way to see that one two bits more of uh CD 23:06 23 minutes, 6 seconds ratio LDR in case of Bank of Maharashtra but uh I think there is no major challenge there is no prescription from 23:15 23 minutes, 15 seconds the regulator. We all know that so far no soft nudge also uh uh but we are mindful of this and we will keep 23:24 23 minutes, 24 seconds looking at uh raising core business stable business that comes from branches rather than uh it is very easy for us 23:33 23 minutes, 33 seconds which is a matter of uh function of interest rate that I uh would offer on a bul deposit and let the deposit be 23:41 23 minutes, 41 seconds raised in the bank but we would not like to exercise that option. 23:45 23 minutes, 45 seconds uh it will not be out of place to also say that we are running a project currently in the bank. We are calling it 23:52 23 minutes, 52 seconds as project C21 wherein 321 branches selected very scientifically at the pin 23:58 23 minutes, 58 seconds code level. Uh we have decided to be opened in 18 months. While I speak today 116 of those branches have already been 24:08 24 minutes, 8 seconds made functional and they are doing business. So these branches are going to get us the core business of individual 24:16 24 minutes, 16 seconds deposits the in their uh jurisdiction in that branch and that's how we will be 24:23 24 minutes, 23 seconds focusing keep continuing to focus on uh the core business core deposits uh 24:30 24 minutes, 30 seconds stable deposits where we see no fluctuations major no volatility in our business stable figures is what we are 24:38 24 minutes, 38 seconds experiencing now and we will continue to be mindful of how the impact on LDR going forward and take corrective steps 24:47 24 minutes, 47 seconds wherever we feel has to be taken we'll do that. 24:51 24 minutes, 51 seconds Okay. So, and my last question is on rates. So, what is your uh home loan rate right now for your prime or your 24:59 24 minutes, 59 seconds best customers and what would be your average yield on gold loans? 25:07 25 minutes, 7 seconds So our uh we are keeping uh uh very competitive home loan interest rates and 25:14 25 minutes, 14 seconds the idea is uh with uh a big enabler of able to maintain such a high CASA we are 25:22 25 minutes, 22 seconds able to offer the best interest rates uh in the market. Uh we have we charge 7.1 for our loan borrowers but then this 25:31 25 minutes, 31 seconds rate is again not available to all. uh one has to qualify in terms of their credit scores. So there is a graded slab 25:40 25 minutes, 40 seconds the best interest rates is available for civil score 800 and above and we have uh 25:47 25 minutes, 47 seconds a slap system uh depending on what credit score I enjoy I will be priced 25:54 25 minutes, 54 seconds according to that. We have also been mindful of the quality somebody some mention was there for slippage. So it is 26:01 26 minutes, 1 second not only pricing uh the product for uh with uh CIC scores 26:09 26 minutes, 9 seconds we have also done underwriting. So there is no ben the underwriting benchmark does not permit in the bank. No funding 26:17 26 minutes, 17 seconds below CIC score of 681 and below uh civil score. We have benchmarked our underwriting to TransUnion civil and 681 26:27 26 minutes, 27 seconds and below there is no underwriting in any schemes in the bank. So we are growing we are mindful of the quality 26:33 26 minutes, 33 seconds the loan book that we are forming in this good times we are also aware of that part and profitability of course we 26:42 26 minutes, 42 seconds are aware of your answer your average yield on gold loans. 26:48 26 minutes, 48 seconds So my gold zone uh we we have actually made three options because with the uh 26:56 26 minutes, 56 seconds uh tweak which has come or the relaxation dispensation which came from the regulator on this uh uh segment uh 27:05 27 minutes, 5 seconds they have permitted small segment agriculture gold loans small segment up 27:11 27 minutes, 11 seconds to 10 lakhs MSME uh gold loans and the non- retail uh uh nonpr priority the 27:18 27 minutes, 18 seconds retail gold loans. So I have a three uh products where I will if it's a agriculture uh classified I will charge 27:27 27 minutes, 27 seconds the lowest rate but we are getting a yield of almost 9% around in our gold portfolio also when I mentioned huh 27:36 27 minutes, 36 seconds yes it includes agree also and we are uh also having the co-ending partnership a 27:44 27 minutes, 44 seconds sizable book today I think we are the leading bank in the industry having uh NBFC co- lending tie-ups and more than 27:52 27 minutes, 52 seconds one NBFC's we are doing that arrangement with where using seamless digital u uh 28:00 28 minutes API and reverse API integration we are doing that business and we have almost now 5,500 crores of uh business in that 28:09 28 minutes, 9 seconds segment where I'm getting a good pricing I also don't incur any expenses in safekeeping of the gold jewelry there is 28:19 28 minutes, 19 seconds no insurance cost to me I'm getting a good rate so this co- lending also is a uh and the portfolio is behaving very 28:26 28 minutes, 26 seconds well uh we we intend to further uh increase this uh co-ending partnerships 28:34 28 minutes, 34 seconds with some good rated gold NBFCs who will be willing to join hands with us and what is the coal lending rate rate 28:42 28 minutes, 42 seconds on coal lending portfolio so that is subject to our discussion negot association but uh system knows 28:49 28 minutes, 49 seconds that the uh the private gold loan NBSC's charge a very high rate. We are not into that game. We are mindful of the quality 28:57 28 minutes, 57 seconds also although it's a selfquidating uh uh asset but uh there is a ceiling in our 29:04 29 minutes, 4 seconds co-ending arrangement beyond which we will not permit uh uh underwriting. So there is a strict business rule engine 29:13 29 minutes, 13 seconds through which this entire underwriting will flow. So whatever gold NBFC branches throughout the country will do 29:22 29 minutes, 22 seconds business. The portfolio is shared to the bank. We do our uh we we will do our LTV 29:30 29 minutes, 30 seconds checks digitally. we will do the screening and then purity check is done and we will underwrite this portfolio 29:39 29 minutes, 39 seconds the very next day. So the technology that supports this co-ending arrangement is uh working seamlessly. there is a uh 29:47 29 minutes, 47 seconds reconciliation uh on a daily basis that is happening and as I said lot of issues in doing 29:54 29 minutes, 54 seconds gold onone business that we encounter when we do it in our branches versus in this co-ending arrangement the front 30:02 30 minutes, 2 seconds ending is done by the NBFC I'm saving lot of cost uh on those fronts also so but rates are negotiated one-on-one uh 30:11 30 minutes, 11 seconds not like to disclose those Okay. Okay sir. Thank you so much. Thank you. 30:20 30 minutes, 20 seconds Thank you ladies and gentlemen. In order to ensure management is able to answer queries from all participants. Kindly 30:28 30 minutes, 28 seconds restrict your questions to two at a time. You may join back the queue for follow-up questions. 30:33 30 minutes, 33 seconds We'll take our next question from the line of Rohit Priyadi from Mthal Analytics. Please go ahead. Yeah. Hi, thank you for the opportunity. 30:42 30 minutes, 42 seconds I hope I'm audible. Yes, please go ahead. 30:48 30 minutes, 48 seconds Yeah. Uh so congratulations from good set of numbers to the management and my question is on the yield front. Uh if 30:56 30 minutes, 56 seconds you look at our yield advances, it has been reducing uh from 9.27% 31:02 31 minutes, 2 seconds last December to 8.92% this December. So could you please explain the key reasons behind this decline? Is it mainly due to 31:11 31 minutes, 11 seconds the loan mix change or uh you know reducing lending rates or anything else and what are what will be our yield guidance for the coming quarters? 31:23 31 minutes, 23 seconds So uh the yield on advances uh is standing at 8.95%. 31:29 31 minutes, 29 seconds But you would have seen that uh there has been uh uh 125 bips rate cut from 31:36 31 minutes, 36 seconds the regulator and uh we have like everybody every bank has mandated to 31:42 31 minutes, 42 seconds pass on the uh rate cut uh without any timeline. We we have to mandatory pass 31:49 31 minutes, 49 seconds this uh rate cut benefit uh to our portfolio which is linked to the repo rate. So around 40% 42% of portfolio is 31:58 31 minutes, 58 seconds linked to the repo and which gets this benefit passed on uh immediately but the 32:05 32 minutes, 5 seconds deposit pricing uh which is always coming with a lag and with this rate cut uh happening the overall yield will see 32:14 32 minutes, 14 seconds a impact but we have been very mindful uh when when this rate cut cycle was in the offing uh aware of that uh almost 30 32:24 32 minutes, 24 seconds to 35 bips of MCLR raise we had done in a 10 to 12 months period before this 32:31 32 minutes, 31 seconds rate cut began in FE 2025 and we have seen uh uh that this portfolio still 32:39 32 minutes, 39 seconds maybe one or one quarter of portfolio which will be remaining for getting repriced uh in that MCLR port is around 32:47 32 minutes, 47 seconds 55% that is our loan book comp composing or linked to the MCLR but again with this rate cut 32:55 32 minutes, 55 seconds uh clients the goodrated borrowers have been approaching and they have been getting options and we have to be aligning ourselves remaining in the 33:04 33 minutes, 4 seconds market and doing business. So some good rated borrowers uh also on the MCLR side have been approaching banks with 33:11 33 minutes, 11 seconds concessions and when uh the competition is uh looking at those and considering th them then we would also not sometimes 33:20 33 minutes, 20 seconds like to lose the business. So all these are elements of uh headwinds in this uh thing. But uh ultimately with rate cuts 33:28 33 minutes, 28 seconds the ancillary benefit that bank is getting is that with uh new rate cuts we 33:35 33 minutes, 35 seconds will see new opportunities coming for the bank for raising their loan book all over. New home home buys are happening. 33:43 33 minutes, 43 seconds the uh interest rate cut, the tax rates, the GST cuts, all this is doing is uh 33:50 33 minutes, 50 seconds enabling empowering people to go and spend. And when this is happening in the ecosystem, ultimately the funding 33:58 33 minutes, 58 seconds opportunities for all the players in the ecosystem is only going up. So that's that's how we are also going to get 34:06 34 minutes, 6 seconds benefit out of that. uh the yield may little bit soften but overall our volumes that we are doing uh higher uh 34:15 34 minutes, 15 seconds ultimately it'll become a profitable proposition uh for the bank though though not only immediate when the rate 34:21 34 minutes, 21 seconds cut benefit has to be passed immediately uh there'll be a lag where my deposits will get repriced for that intervening 34:30 34 minutes, 30 seconds period yes but as I explained uh ultimately bank also stands to benefit Understood sir. Understood. 34:39 34 minutes, 39 seconds We don't have a guidance on advances. We have a guidance on NIM. We are targeting to maintain at about 3.75 34:48 34 minutes, 48 seconds and we will maintain it. That is good sir. That is good to hear. And secondly uh how focused are we on increasing the 34:56 34 minutes, 56 seconds MSN loan book and what kind of yields can we expect from here? And since I believe MSME usually give higher yield. 35:04 35 minutes, 4 seconds So do you see this helping our overall yield improvement going forward? 35:10 35 minutes, 10 seconds So uh as I said we are into wherever we see profitable opportunities and where we are comfortable to build our 35:19 35 minutes, 19 seconds exposures on. So uh we MSME also we we are looking at this segment also very 35:27 35 minutes, 27 seconds seriously. What we have done is uh low ticket MSMES the journeys have been 35:34 35 minutes, 34 seconds created uh in uh using technology and the end to end process uh is digitalized 35:42 35 minutes, 42 seconds where we we don't wish uh to have too much of engagement in our branch uh for 35:50 35 minutes, 50 seconds uh availing or dispersing these uh MSME small ticket size loans. So we rely more 35:56 35 minutes, 56 seconds on uh digital uh journeys where we will set our own business rules and the underwriting quality will also be managed well. 36:07 36 minutes, 7 seconds MSME we will keep trying to grow there is uh we we have been growing double digit high double digit I would say uh 36:16 36 minutes, 16 seconds in 15 16 uh lately in the last quarter you would have seen our MSME and agree book has shown a singledigit growth I 36:25 36 minutes, 25 seconds have also shared about this rebalancing strategy that we were undergoing and very consciously we are rebalancing some 36:34 36 minutes, 34 seconds portfolio in these two segments and uh using this good times where the growth is happening in high double digit I want 36:42 36 minutes, 42 seconds to uh onboard some business which is uh I should say uh a high quality business 36:49 36 minutes, 49 seconds and replace some businesses uh with those. So this is a rebalancing that was happening. Now we uh we we have improved drastically. 37:00 37 minutes When we look at September growth in agree, MSME year on year versus December growth, you will see marked improvement 37:07 37 minutes, 7 seconds has come in and very consciously we have been underwriting big ticket uh agree and MSME advances uh and uh onboarding 37:16 37 minutes, 16 seconds them. when these set of clients are coming uh focus is has moved from uh production link finance to investment 37:25 37 minutes, 25 seconds credit in the agree segment and that's how we have done lot of rice mill dal mill uh we we we have done uh warehouses 37:35 37 minutes, 35 seconds cold stoages and where we we we have seen that while the portfolio has grown we have got some ancillary business also 37:42 37 minutes, 42 seconds we have got lot of primary and collateral securities so We have grown the portfolio in a very secured manner 37:49 37 minutes, 49 seconds and of course yes you are right to say that the pricing if you are able to service the client's requirements uh 37:57 37 minutes, 57 seconds expeditiously this is the portfolio which is able to uh get you good uh rates also and uh there's not much of 38:06 38 minutes, 6 seconds competition here. So we deliver our products and ser uh products uh fast 38:13 38 minutes, 13 seconds through a quick decisioning and are able to command some premium in pricing also which a customer uh is happily paying to 38:21 38 minutes, 21 seconds the bank. Uh 20 25 bits don't matter if their requirements are expeditiously seen and met by the lender. They'll be more than happy to pay that. 38:33 38 minutes, 33 seconds Yes sir. That is good to hear sir. Uh thank you so much for the opportunity and I wish all the best to the management. Thank you sir. 38:41 38 minutes, 41 seconds Thank you. We'll take our next question from the line of Jay Praash Mundra from ICIC securities. Please go ahead. 38:51 38 minutes, 51 seconds Yeah. Hi. Good evening sir and congratulations on a steady number sir. My first question is u during the 38:59 38 minutes, 59 seconds quarter RBI had opened the window for MSME dispensation to the export unit. Uh what would be the quantum sir if we 39:07 39 minutes, 7 seconds would have received any any request for moratorium from uh export uh customers. 39:18 39 minutes, 18 seconds Uh we'll just come back to this uh come back to come back to you on this. We are aware of this uh uh dispensation and uh 39:28 39 minutes, 28 seconds we don't have a very big portfolio around here but uh uh we will just come back to you if there is any major uh 39:35 39 minutes, 35 seconds thing uh total total amount for the MSME for the this compensation whatever the RBI guidelines has come it is around 39:42 39 minutes, 42 seconds 5,000 K okay and it is already we are we have started the process and it is undergoing 39:52 39 minutes, 52 seconds Sure. So sir, you have a loan book of around 50,000 cr in MSME, right? 40:00 40 minutes So out of 50,000 cr of MSME around 5,000 crores have come for dispensation. Is is 40:08 40 minutes, 8 seconds that I mean is the number right? 5,000 cr. Yes. Yes. 40:14 40 minutes, 14 seconds Okay. Sure. And these are all export heavy and predominantly exporters only, right? those who are engaged in export 40:21 40 minutes, 21 seconds and have been impacted under US tariff etc. Yes sir. 40:28 40 minutes, 28 seconds uh uh as the window has now been closed right that now no more uh as of let's 40:35 40 minutes, 35 seconds say 13th of January if a customer similar customer wants a similar dispensation they cannot have that right 40:45 40 minutes, 45 seconds correct it is 31st of January okay sure sorry sorry I I missed that 40:54 40 minutes, 54 seconds sorry this is 31st December or 31st of January January. 41:01 41 minutes, 1 second Okay. So the window is still open, right? Yeah. 41:06 41 minutes, 6 seconds Okay. Uh second question sir on LCR if you can uh suggest what was the LCR at 41:13 41 minutes, 13 seconds the end of quarter 3 and as we move into April 1st you know 41:19 41 minutes, 19 seconds the you may have now a higher LCR requirement on the mobile and internet banking but at the same time you will 41:27 41 minutes, 27 seconds have some release some lower risk weights on the bulk deposit right at least the NBFC deposits. So u how do you 41:35 41 minutes, 35 seconds see the net net impact uh let us say on uh what is the Q3 LCR number and 41:42 41 minutes, 42 seconds assuming we have to provide higher on uh mobile internet banking but lower on bulk deposit how should would it look 41:50 41 minutes, 50 seconds like would it be net impact positive or net impact negative. 41:54 41 minutes, 54 seconds So we are looking uh at these calculations are being done but we are meanwhile we are keeping a uh internal 42:02 42 minutes, 2 seconds uh uh guidance for us to maintain LCR between 115 to 120. we feel too high uh 42:10 42 minutes, 10 seconds on this uh number is not a very uh good idea to maintain and LCR to answer your 42:16 42 minutes, 16 seconds question for Q3 is uh 116.36 and uh uh as I as as uh I will ask my 42:26 42 minutes, 26 seconds CRO to just respond to uh what is in the offing as you said first April uh you want to add any 42:34 42 minutes, 34 seconds of the first April uh whatever the guidance is uh increasing this revenance 42:40 42 minutes, 40 seconds or uh let's say this deposit and we have seen this HQA and considering the net 42:48 42 minutes, 48 seconds outflow net positive impact on the banks are around 3%. 42:56 42 minutes, 56 seconds Okay. So the the net impact will be a a a positive impact on LCR right 43:04 43 minutes, 4 seconds of 3% is what calculation is showing correct correct so sir assuming you have to move to on 1st April you need not 43:14 43 minutes, 14 seconds show up liquidity right if at all you will have some release of liquidity is is that the right understanding or there 43:21 43 minutes, 21 seconds is some other element here you are right to say that 43:27 43 minutes, 27 seconds okay sure and um secondly sir uh if you can talk about the total re total gold 43:35 43 minutes, 35 seconds loan of bank of Maharashtra the retail gold you given is around 12,000 cr uh what will be the total do you have agree 43:43 43 minutes, 43 seconds or MSME gold also or that is that is not very meaningful no like I said we have all the three 43:51 43 minutes, 51 seconds variants uh today with regulator up to two lakhs being permitted to be 43:57 43 minutes, 57 seconds classified as gold loan under agree uh subject to conditions. So if those conditions are getting met so agree gold 44:06 44 minutes, 6 seconds loan is also possible. uh likewise up to 10 lakh for MSME is possible for other than that purposes it goes to be 44:14 44 minutes, 14 seconds classified as a nonpr loan and the uh the breakup if I have to tell you the retail is 12,000 crores agree is 9,000 44:22 44 minutes, 22 seconds crores and MSME which is a new product introduction post this regulator guideline we very quickly gave this 44:29 44 minutes, 29 seconds option also so it is 1,000 crores and this is one segment which we have uh been aggressively to grow and we had 44:39 44 minutes, 39 seconds marked as one of our focus products uh if you see quarteron quarter uh we have 44:45 44 minutes, 45 seconds been growing uh uh at a very high rate of 40 45% year on year right 18 months 44:52 44 minutes, 52 seconds back I remember it was almost 7,500 to 8,000 crores today including coal 44:58 44 minutes, 58 seconds lending we stand at 22,000 crores so minus around 5,000 crores of exposure in 45:05 45 minutes, 5 seconds coal lending uh 16,500 to 17,000 gold loan is happening to our branches. Rest 45:12 45 minutes, 12 seconds is rest is what is uh in under the uh co-ending tieups. So the point is uh we have been also very careful that this 45:20 45 minutes, 20 seconds business although it's a very good business attracts zero risk weight uh as per the guidelines uh but if the two 45:29 45 minutes, 29 seconds elements which is the purity of the gold and the safekeeping of the ples ornaments these two infra we will create 45:37 45 minutes, 37 seconds first and then only permit a branch to uh venture into doing gold loans so I think uh the focus which is there has 45:45 45 minutes, 45 seconds led to good growth in the portfolio. But going forward, we will keep uh this uh drive of uh uh growing the gold 45:55 45 minutes, 55 seconds portfolio. 116 branches that we have opened in this FY under the project 321, we have supplied them with gold safe from day one. So mandate is very clear. 46:07 46 minutes, 7 seconds uh they would also be looking at uh doing gold loans as per the potential that is available and today gold loan is 46:14 46 minutes, 14 seconds not uh the element of six uh traditional south-based states but it is happening 46:22 46 minutes, 22 seconds uh elsewhere also in the country in a big way and lot of scope is there to grow this portfolio lot of gold zones uh 46:29 46 minutes, 29 seconds are in the unorganized segment despite uh we very clearly see the after the covid lot of focus has come from banks. 46:38 46 minutes, 38 seconds Most of the banks have grown gold loans but still I would say there is a huge uh market that is uh there for coming to 46:48 46 minutes, 48 seconds the banks and even the NBFCs from the marketment uh and the customers also stand to benefit because the interest 46:56 46 minutes, 56 seconds rates getting charged in the banks particularly will be very low. So we are growing this portfolio. 47:04 47 minutes, 4 seconds Right. Right. And sir if you have this I mean just an I'm sorry to interrupt sir. May I request you to join back the queue please as we have participants waiting for their turn. 47:14 47 minutes, 14 seconds Sure. Thanks a lot. Thank you. We'll take our next question. 47:19 47 minutes, 19 seconds Thank you. We'll take our next question from the line of Bhavesh Kanani from UTI AMC. Please go ahead. 47:33 47 minutes, 33 seconds The current participant line is disconnected. We'll move on to the next question from the line of Akshai Badlani from HDFC securities. Please go ahead. 47:42 47 minutes, 42 seconds Yeah. Hi, thank you for taking my question. Um, so my questions around the margins. So yields what we we can see is 47:49 47 minutes, 49 seconds it has dropped by you know over 25 bips this quarter and before that you know there was 100 bips rate cut but the yields did not drop as much. So and also 47:58 47 minutes, 58 seconds the rate cut happened slightly at the end of the quarter. So wanted to understand that why did we see as much you know drop in the yield on advances 48:06 48 minutes, 6 seconds and secondly on cost of fund side there also we have seen you know 22 bips reduction so is that largely uh term 48:14 48 minutes, 14 seconds deposit repricing or have we done some repricing at the on savings accounts as well thank you 48:21 48 minutes, 21 seconds so I'll take your second question first so yes we keep reviewing the interest rates being offered across spectrum of 48:29 48 minutes, 29 seconds products uh including the saving deposits. Uh we also when we look at this business we see very clearly there 48:38 48 minutes, 38 seconds are two components. One is the institutional business with the institutional CASA and the retail core CASA that is happening through our 48:46 48 minutes, 46 seconds branches. I have been mentioning about this vertical that was set up with the idea to reach out very systematic manner 48:54 48 minutes, 54 seconds uh to the institutional clients which our understanding is they have a different set of requirement they need 49:01 49 minutes, 1 second to be understood their requirements needs to be understood and we go ahead and do lot of uh value additions when we 49:10 49 minutes, 10 seconds look at uh institutional kasa relationship coming into the bank where we where we try to give them some 49:17 49 minutes, 17 seconds technology based uh solutions which will take care of their transactional needs, saving needs, investment needs or 49:24 49 minutes, 24 seconds payments and collection needs and that's how we bring value to those institutions and that's how we are able to see that 49:32 49 minutes, 32 seconds leaving in the ecosystem many options of banks they are having but they prefer to bank with us. So institutional CASA we 49:39 49 minutes, 39 seconds keep focusing in a different strategy altogether. The core kasa we are uh uh uh we have done lot of new products 49:48 49 minutes, 48 seconds introduction to see that today in the ecosystem whatever segment of uh savers 49:55 49 minutes, 55 seconds are there whatever segments of uh deposits that will come from banks from women from kid from professionals from 50:03 50 minutes, 3 seconds HNI ultra HNI NRI the entire product basket is available customized products 50:10 50 minutes, 10 seconds are available to them we have gone ahead and uh revamped one most important channel in today's time where the 50:19 50 minutes, 19 seconds customers come and transact which is not in the branches but is the mobile application and I'm happy to share that 50:27 50 minutes, 27 seconds our new mobile application is just not an upgrade of the old version but we have totally revamped and launched a new 50:34 50 minutes, 34 seconds version uh where the the theme or the underlying uh uh principle was making 50:41 50 minutes, 41 seconds life simple simpler for clients letting them do transactions with minimum number of clicks. That's how the journey that's 50:48 50 minutes, 48 seconds how the app has been developed and it is getting lot of good reviews has been appreciated. Clients who have onboarded 50:56 50 minutes, 56 seconds themselves are able to transact and see the difference. what the old version uh took uh 7 months of for first one lakh 51:06 51 minutes, 6 seconds downloads. We achieved uh first one lakh downloads in 14 days and today while I speak this is a very recent launch in 51:15 51 minutes, 15 seconds September on our foundation day but we have crossed six lakh active users which 51:22 51 minutes, 22 seconds in the previous uh uh version was two lakh 25,000 users. So that's how we are 51:30 51 minutes, 30 seconds bringing change in core cases giving right product choices uh easy uh ease of 51:38 51 minutes, 38 seconds customers for doing their business once they are onboarded they are able to transact seamlessly with us and that's 51:45 51 minutes, 45 seconds how we are seeing slowly steadily acquasa uh stable individual deposits and 51:54 51 minutes, 54 seconds institutional uh your other question uh on the aspect. So in on advances uh you 52:02 52 minutes, 2 seconds rightly have said but uh see the uh earlier time it was not the full quarter impact which was there we had seen and 52:11 52 minutes, 11 seconds we have uh also passed on our rates. uh we I did mention in my last uh response 52:18 52 minutes, 18 seconds uh to a query wherein our goodrated borrowers also are demanding I would not like to lose a borrower and we we try to 52:27 52 minutes, 27 seconds whenever a rate rate cut request is coming we try to compensate that the overall profitability from that client 52:36 52 minutes, 36 seconds should not have gone down. So we always seek while we give them good rates so that they continue to bank with us but 52:43 52 minutes, 43 seconds we try to replace the loss in the concession that we have offered through getting some ancillary business. So 52:50 52 minutes, 50 seconds overall uh the income may not be seen in the advances book but we will get some ancillary business whether it's a uh uh 52:58 52 minutes, 58 seconds payroll accounts whether uh seeking their uh uh payment and collection business and trying to uh get some 53:06 53 minutes, 6 seconds income through those heads getting some of deposits of theirs uh to sit with us. 53:12 53 minutes, 12 seconds uh that's how we try to keep compensating that the relationship continues our profitability with that client also should not go down. So but then we are uh operating in this market. 53:25 53 minutes, 25 seconds We may see another rate cut is being discussed but we keep a close cap. We are mindful of those things and we keep 53:33 53 minutes, 33 seconds doing business. And if you see the bottom line ultimately we have maintained and we have not seen that any 53:41 53 minutes, 41 seconds of my name ROA roe has seen a contraction. uh this is the quarter 53:47 53 minutes, 47 seconds where uh we had I had mentioned last time that probably we will not see any further contraction in NIM and uh we 53:56 53 minutes, 56 seconds have actually increased NIM by two BIPS only although but we have increased at least no contraction and there is a 25 54:03 54 minutes, 3 seconds bits rate cut is what we have come but then again the next quarter I will get the full quarter effect of this uh rate cut and we may even going forward see 54:12 54 minutes, 12 seconds further rate cut but we will keep operating and keep maintaining the uh bottom lines and the profitability 54:19 54 minutes, 19 seconds metrics. We will keep achieving those as per our guidance and try to surpass our guidance uh uh uh every quarter. 54:29 54 minutes, 29 seconds Sure. Thank you. Thank you for answering the questions. 54:33 54 minutes, 33 seconds Thank you ladies and gentlemen. In order to ensure management is able to answer queries from all participants, kindly restrict 54:40 54 minutes, 40 seconds your questions to two at a time. We'll take our next question from the line of Ashes Sonj from Kotek Securities. Please go ahead. 54:49 54 minutes, 49 seconds Hi team, good evening. Uh few questions from my side. Uh firstly, can you share what is the proportion of your term 54:56 54 minutes, 56 seconds deposits which are uh yet to be fully repriced at the lower rate? 55:02 55 minutes, 2 seconds That is one. Secondly, uh you mentioned that the home loan disbursements which happen at the 7.1% rate are a very small 55:11 55 minutes, 11 seconds proportion. Can you share that proportion with us please? Uh and lastly uh in your uh exchange disclosure you 55:19 55 minutes, 19 seconds have shared that roughly you uh uh bought loans worth roughly 5,000 crores in this quarter and about 12,000 crores 55:26 55 minutes, 26 seconds during the 9 months. Uh can you share what type of loans these are and who are they acquired from? Thank you. 55:35 55 minutes, 35 seconds So uh uh first is the deposit getting repriced. So when this rate cut cycle 55:42 55 minutes, 42 seconds has uh begun and uh very uh closely we have been seeing and uh monitoring this 55:50 55 minutes, 50 seconds development. So uh our uh typical maturity profile against the industry standard of 12 to 15 months. Our 55:59 55 minutes, 59 seconds maturity profile at that point of time was 8 to 10 months. And we have seen most of the deposits by that time has uh 56:08 56 minutes, 8 seconds got repriced but it uh but then again the there is a fresh rate cut announced and we will see that uh this is a cycle 56:17 56 minutes, 17 seconds which will keep happening and we are also seeing that uh we don't wish our we should keep offering when the other 56:25 56 minutes, 25 seconds banks who are not able to or uh not able to garner deposits and they are facing challenge they are also offering to uh 56:34 56 minutes, 34 seconds very high rates to depositors and I would not not like my retail depositors at least to leave the bank. They are the 56:43 56 minutes, 43 seconds sto uh stable core deposits. So we keep offering uh good off rates to them and 56:50 56 minutes, 50 seconds meanwhile not focusing uh on the high cost bulk uh but continue to give these 56:57 56 minutes, 57 seconds kind of rates to them. So these are the uh I think continuous dynamic uh challenges that you will keep seeing 57:04 57 minutes, 4 seconds when this kind of uh rate cuts uh will be happening. Uh 57:12 57 minutes, 12 seconds what is the next question please? Uh the proportion of disbbursements which are at uh 7.1%. 57:18 57 minutes, 18 seconds Yes sir. So uh uh I 23% when when we when we introduced this uh metric uh uh 57:27 57 minutes, 27 seconds we strengthen our underwriting of benchmark standard in home loans and all retail segment loans by saying that 57:35 57 minutes, 35 seconds there will be no sanctions below 681. So the pricing also was tweaked according to that. So I can share with you when 57:44 57 minutes, 44 seconds the 12 months have passed the 800 and above civil score which is entitled to 57:50 57 minutes, 50 seconds get that 7.1 rate 23% of sanctions in that 12 months happened in that bucket 57:58 57 minutes, 58 seconds and 57% of sanctions happened between 750 and 800 bucket. So if you put 58:05 58 minutes, 5 seconds together 23 + 57 80% sanctions were happening in that bucket. So while I am 58:12 58 minutes, 12 seconds giving very fine rates, I'm also trying to get some ancillary business because the mandate given to our field 58:20 58 minutes, 20 seconds functionaries when they sell one home loan, they will be trying to sell minimum four products on the day one. So 58:27 58 minutes, 27 seconds they will try to offer a co-branded credit card that we have now in our kitty. They will try to do uh good 58:34 58 minutes, 34 seconds credit life explaining the benefits of that scheme and if they are not able to get the operative account from where the 58:42 58 minutes, 42 seconds salary uh or the business where the servicing of EMI will happen they will request the borrower with minimum three 58:50 58 minutes, 50 seconds EMIs as deposits with the bank. So we do home loan with these three four things together. So that's how so but uh uh you 58:59 58 minutes, 59 seconds will appreciate that the quality of loan book that is now getting created for the last 12 to 15 months which will be of 59:07 59 minutes, 7 seconds good quality. We will not see uh uh going forward the kind of slipages number guidance we are keeping to 59:15 59 minutes, 15 seconds maintain it below one it is behaving well 0.88 for this quarter uh annualized is 1.2 two which is the trend we are 59:23 59 minutes, 23 seconds seeing last quarter also and couple of uh quarters behind us and we would like 59:29 59 minutes, 29 seconds to see that this ultimately will uh go down further 59:36 59 minutes, 36 seconds any question I missed your sir the uh loan loan purchases of roughly 5,000 which you did 59:44 59 minutes, 44 seconds sir yes sir so uh the pool transactions that we are doing at some point of time uh we we keep analyzing our portfolio 59:53 59 minutes, 53 seconds that is built and when we reach to a realization that some rebalancing is required we will do that. So we had also 1:00:01 1 hour, 1 second marked uh that where we will try and reduce or uh reduce our overdependence 1:00:08 1 hour, 8 seconds on pool transactions. While saying this we are not averse to doing pool at the right moment as per need of the bank. If 1:00:17 1 hour, 17 seconds for some PSL classifications I require a portfolio we will do that. We will also do pool buyouts when we are getting a 1:00:26 1 hour, 26 seconds good pricing or we have other ancillary benefits with that. But my core branches business must happen first then we will 1:00:35 1 hour, 35 seconds we will see what pool uh we will do or not do. So the mandate given to the field functionaries my 50 zonal offices 1:00:43 1 hour, 43 seconds and now 2,700 branches is to stop looking at what the bulk business or pool business you will do that's the 1:00:50 1 hour, 50 seconds central office call they will see that the K of the Z manager is the core business that is happening in their set 1:00:58 1 hour, 58 seconds of 60 65 branches whether it is happening or not they their K is very clearly defined in those terms. So what 1:01:05 1 hour, 1 minute, 5 seconds we have done is sir we have reduced our overd dependence the December 202 uh fourth quarter in fact became the first 1:01:13 1 hour, 1 minute, 13 seconds quarter where we have seen YTD degrowth in the pool year on year minus 7% in pool but as I said again from time to 1:01:23 1 hour, 1 minute, 23 seconds time we will keep looking at uh uh taking pool uh partnerships today when in the agree and the MSME I mentioned 1:01:31 1 hour, 1 minute, 31 seconds about doing a rebalancing in my portfolio it was a conscious strategic decision on part of the bank and to see 1:01:39 1 hour, 1 minute, 39 seconds that the portfolio is there. We we we have taken some pool transactions in the last one two quarter. We will again 1:01:45 1 hour, 1 minute, 45 seconds shift back to my branches doing the core stable business and from time to time it is purely a central office call. We will 1:01:53 1 hour, 1 minute, 53 seconds see the profitable part of it. We will see the PSL requirements part of it and we will keep doing full transactions uh going ahead also. 1:02:02 1 hour, 2 minutes, 2 seconds Got it sir. Thank you sir. Just one clarification on the first question. Uh fair to assume that the term deposit book is largely repriced now and no more repricing should be expected. 1:02:14 1 hour, 2 minutes, 14 seconds So some more uh if 18 to 20% is likely to be repriced 1:02:22 1 hour, 2 minutes, 22 seconds during uh this quarter is what uh is coming up. uh and some part is repressed 1:02:28 1 hour, 2 minutes, 28 seconds but uh you know more what happens like uh the one is after uh the rate cut from 1:02:35 1 hour, 2 minutes, 35 seconds RBI and then uh basis you know that there are multiple uh rate revisions at the bank level also depending on the 1:02:44 1 hour, 2 minutes, 44 seconds appetite of the bank uh so basis this repricing keeps happening but as of now I uh we can tell that about 18% 1:02:53 1 hour, 2 minutes, 53 seconds repricing is expected during this Understood sir. Thank you sir. Uh thank you very much for your responses. 1:03:01 1 hour, 3 minutes, 1 second Thank you. We'll take our next question from the line of Bahavves Kanani from UTI AMC. Please go ahead. 1:03:09 1 hour, 3 minutes, 9 seconds Uh thank you for the opportunity. I hope I am audible. Yes, please go ahead. 1:03:14 1 hour, 3 minutes, 14 seconds Yeah. Uh so my question was on the MSME segment. Uh s mentioned couple of times that there is a rebalancing going on. So 1:03:24 1 hour, 3 minutes, 24 seconds it would be helpful if you can help us understand the uh nature of rebalancing the purpose behind that. Uh especially 1:03:32 1 hour, 3 minutes, 32 seconds in the context that uh within MSME the medium uh entities uh book seems to be degrowing uh dramatically. 1:03:43 1 hour, 3 minutes, 43 seconds uh and this is surprising uh when we look at the uh sectoral G&PA numbers which clearly reflects that medium 1:03:52 1 hour, 3 minutes, 52 seconds enterprises are experiencing improving G&PA profile. So uh hence the 1:04:00 1 hour, 4 minutes question that what is the reason behind need to rebalance. Uh similarly on agree to while the headline total number seems 1:04:09 1 hour, 4 minutes, 9 seconds to indicate a singledigit growth within agree the agree infra and agree anxillary uh portions of the book are 1:04:17 1 hour, 4 minutes, 17 seconds growing at much faster rate. So what are the segments the kind of borrowers we are serving here? Uh that would be 1:04:26 1 hour, 4 minutes, 26 seconds helpful. And last one was on the other expenses that seems to be a sharp spike sequentially. 1:04:34 1 hour, 4 minutes, 34 seconds Uh so uh what is the reason behind that spike? That's all from my end. 1:04:40 1 hour, 4 minutes, 40 seconds So uh thank you for the question. So MSME uh there has been some uh reasoning behind the change in the regulator 1:04:49 1 hour, 4 minutes, 49 seconds guidelines. So with the MSME limits getting enhanced you would have seen some portfolio which is uh MSME ships uh 1:04:59 1 hour, 4 minutes, 59 seconds so they have increased the limits. So there is a portfolio which would move from uh MSM mid to the small segment uh 1:05:07 1 hour, 5 minutes, 7 seconds and likewise to micro even some corporate accounts would have moved to MSME getting entitled. So that is one thing which is uh happening as per the 1:05:16 1 hour, 5 minutes, 16 seconds change in the regulator guidelines. what we have been also looking at rebalancing uh the the threads book that I'm having 1:05:25 1 hour, 5 minutes, 25 seconds uh this is a function of not underwriting there's no underwriting involved it is a function of pricing uh I can easily grow the uh treads uh uh 1:05:34 1 hour, 5 minutes, 34 seconds build discounting portfolio by offering very cheap rates uh which normally is uh getting uh provided to the MSME 1:05:43 1 hour, 5 minutes, 43 seconds suppliers uh when they get their bill discounting done on the uh tra platforms. So we we want to see that the 1:05:53 1 hour, 5 minutes, 53 seconds the uh the final purchasers from those MSMES are they our 1:06:01 1 hour, 6 minutes, 1 second existing clients or not. So we we decided that we will uh gradually move from if there is a threat discounting 1:06:10 1 hour, 6 minutes, 10 seconds facility available and we are not part of the consortium or we are not uh lenders to that entity we would like to 1:06:18 1 hour, 6 minutes, 18 seconds move into their consortium. We would like to move uh uh even if they're into multiple arrangement or soul we would 1:06:25 1 hour, 6 minutes, 25 seconds like to take their uh exposure in their normal credit also whether a term loan working capital. so that we can have 1:06:34 1 hour, 6 minutes, 34 seconds more visibility on how that entity is performing. Not just leaving it to doing threats business uh all by ourselves. We 1:06:42 1 hour, 6 minutes, 42 seconds should have uh threats along with uh other business also. So that is one. 1:06:49 1 hour, 6 minutes, 49 seconds Second, we wanted to centralize and improve our underwriting in the MSME segment also. Two things we did uh CMR 1 1:06:59 1 hour, 6 minutes, 59 seconds to 3 up to CMR 10. This is what civil trans union is g assigning ranks to 1:07:06 1 hour, 7 minutes, 6 seconds msmemes from 10 lakhs to 50 crores and we decided that CMR 1 to5 below 1:07:14 1 hour, 7 minutes, 14 seconds which no underwriting will happen in the MSME segment. So this was decision number two. So we've been pursuing that 1:07:22 1 hour, 7 minutes, 22 seconds MSME threads bill discounting has been centralized uh from uh now zones 50 zones are not permitted. We want to centralize the portfolio do seamless. 1:07:33 1 hour, 7 minutes, 33 seconds There are two more uh uh uh discounting platforms which have been approved by RBI. We have signed with them also. They 1:07:41 1 hour, 7 minutes, 41 seconds have also been onboarded. So there's a lot of potential to grow. But we want to uh have share in their normal financing. 1:07:48 1 hour, 7 minutes, 48 seconds So this rebalancing and if you see my September 2025 MSME growth would have been sub optimal 2 3 4%. But we have 1:07:58 1 hour, 7 minutes, 58 seconds grown uh now year on year 8%. So now that uh impact uh uh uh what rebalancing 1:08:06 1 hour, 8 minutes, 6 seconds we have done uh from December and onwards I'm going to get to the same level of doubledigit growth but we are 1:08:15 1 hour, 8 minutes, 15 seconds mindful as I said of quality the uh the uh the borrowers that are entering into my system uh how comfortable uh we are 1:08:24 1 hour, 8 minutes, 24 seconds with them and yes they are very profitable segment also so we don't want to exclude any of that uh part of 1:08:31 1 hour, 8 minutes, 31 seconds business uh coming into the bank balance sheet. So this is all I think from uh my side on uh this MSN rebalancing 1:08:40 1 hour, 8 minutes, 40 seconds regarding agriculture. Your question on agriculture ancillary activities this book is growing and that is mainly food 1:08:48 1 hour, 8 minutes, 48 seconds processing related activities like rice mills, dal mills and all that and farm credit there is the regrowth. This is a 1:08:55 1 hour, 8 minutes, 55 seconds segment where we have experienced some stress. So that's the reason we are not going very aggressive in this particular segment. 1:09:06 1 hour, 9 minutes, 6 seconds Okay. And the last one on other expenses. 1:09:11 1 hour, 9 minutes, 11 seconds With regards to other expenses, some various factor is impacting like we have 1:09:18 1 hour, 9 minutes, 18 seconds opened around 165 branches, new branches that is also considering uh the additional business giving expenses are 1:09:27 1 hour, 9 minutes, 27 seconds also increasing. uh and second is also revaluation depreciation is there since we last year we have revalued our some 1:09:35 1 hour, 9 minutes, 35 seconds of the assets and that is why the depreciation is also increased and also IT capex expenses we have done so on 1:09:42 1 hour, 9 minutes, 42 seconds that part also our depreciation is also increased so that is why other expenses are showing but on y basis we we see 11% 1:09:52 1 hour, 9 minutes, 52 seconds increment is there so in terms of uh be continuing it for 1:10:00 1 hour, 10 minutes other expenses. I just was wondering if there is one of this quarter and it is uh going to normalize subsequently. 1:10:08 1 hour, 10 minutes, 8 seconds Is there a oneoff there? 1:10:11 1 hour, 10 minutes, 11 seconds Yes sir. Any oneoff element is there is what being asked. Uh you want to explain what is that oneoff otherwise I will take that PLC. 1:10:23 1 hour, 10 minutes, 23 seconds Oh okay. So uh some PLC certificates in this rebalancing is what the team is saying. I think 20 crores 63 63 63 1:10:32 1 hour, 10 minutes, 32 seconds crores. So that is one of uh uh transaction that has happened in this quarter. But now we have come out of that in terms of new branch opening. 1:10:41 1 hour, 10 minutes, 41 seconds What is our experience? because we we are doing this almost 500 branches have been opened in the last 3 to four years 1:10:48 1 hour, 10 minutes, 48 seconds and in this year 116 in this FY and we are going forward with our uh uh plan to 1:10:55 1 hour, 10 minutes, 55 seconds open complete 321. So uh what we while knowing that there'll be first some 1:11:02 1 hour, 11 minutes, 2 seconds increase in the opex but the experience so far has been that the new branch that we have decided to open uh after a very 1:11:12 1 hour, 11 minutes, 12 seconds scientific exercise down to pin code level trying to decide where two things must be happening. there must be ex 1:11:20 1 hour, 11 minutes, 20 seconds existing banking business potential and that center is also growing uh at a good growth rate. If these two conditions 1:11:28 1 hour, 11 minutes, 28 seconds qualify, we decide to open a branch there. For a branch in one center, we have even gone to uh uh see which is the 1:11:38 1 hour, 11 minutes, 38 seconds pin code within that center where we should open. Typically, you would see a branch uh that a city is growing in one 1:11:45 1 hour, 11 minutes, 45 seconds side. So we will not want to open our branch in a side where nothing is happening. So doing it very 1:11:52 1 hour, 11 minutes, 52 seconds scientifically we have decided this list of 321 branches and what our experience is when we are opening branches in potential growth centers of the country. 1:12:03 1 hour, 12 minutes, 3 seconds we will see that they will break even also very fast and uh whatever branches we have opened in the last three to four 1:12:12 1 hour, 12 minutes, 12 seconds years we have been very closely tracking those branches so the branches which were opened 3 years uh from now all have 1:12:21 1 hour, 12 minutes, 21 seconds turned profitable branches which are opened between 2 to 3 years u 60% of them have converted to profitable so 1:12:30 1 hour, 12 minutes, 30 seconds incrementally what is happening while I do uh incur some opex in the immediate but 1:12:38 1 hour, 12 minutes, 38 seconds incrementally what the new branch that is opened is giving me revenues and profit it is more than offsetting the 1:12:45 1 hour, 12 minutes, 45 seconds cost. So we are not uh at all uh uh bothered about uh increasing our expenses on account of new branch open. 1:12:55 1 hour, 12 minutes, 55 seconds It is only this oneoff item uh which is there uh in this quarter which will of course not be seen in the next quarter 1:13:04 1 hour, 13 minutes, 4 seconds and uh very critical the other metric if you look at cost to income knowing that we've been I've been doing 37 38% cost 1:13:13 1 hour, 13 minutes, 13 seconds to income for a couple of quarters but since we are opening branches we were mindful that some opex will go up so my 1:13:20 1 hour, 13 minutes, 20 seconds guidance has been maintained beginning of the year to maintain it below 40 But if you see cost to income today also it is 37.19%. 1:13:29 1 hour, 13 minutes, 29 seconds So cost to income is also which is uh almost I I should say best in the industry even private banks don't have that metric. 1:13:39 1 hour, 13 minutes, 39 seconds Certainly certainly sir uh thank you for all the responses and wishing you all the best. 1:13:46 1 hour, 13 minutes, 46 seconds Thank you ladies and gentlemen. We'll take that as the last question for today. I now hand the conference over to Mr. Nidu Sakena, managing director and 1:13:54 1 hour, 13 minutes, 54 seconds CEO, Bank of Maharashtra for closing comments. Over to you sir. 1:14:00 1 hour, 14 minutes So uh I think uh not only this quarter has been good but the uh the other element which is the consistency in the 1:14:08 1 hour, 14 minutes, 8 seconds result uh uh getting delivered uh is also something 1:14:17 1 hour, 14 minutes, 17 seconds element of comfort to the management and I'm sure investors as a community must be looking at that and uh also going 1:14:25 1 hour, 14 minutes, 25 seconds forward the kind of branch expansion that we have been doing in potential centers of the country. I think this 1:14:32 1 hour, 14 minutes, 32 seconds kind of high double digit growth for the next 3 to four years very clear visibility is there is going to be 1:14:39 1 hour, 14 minutes, 39 seconds maintained in the system. We will be keep growing uh because these branches 321 doesn't end. We have a board 1:14:47 1 hour, 14 minutes, 47 seconds approval to open thousand branches in the next five years. We are doing it in two phases. The first phase we have 1:14:54 1 hour, 14 minutes, 54 seconds taken up uh first three years and we took uh help of an external expert uh to 1:15:01 1 hour, 15 minutes, 1 second help us use lot of scientific data points and tell us which is the center and they have done lot of uh work around 1:15:11 1 hour, 15 minutes, 11 seconds the CIC data that is available RBI data using their algorithms and they have come and told us very scientifically 1:15:18 1 hour, 15 minutes, 18 seconds that in the center at this spin code is where the bank should have its next presence. So I think this uh new branch 1:15:26 1 hour, 15 minutes, 26 seconds expansion which is happening uh is going to sustain this fast growth rate also and we will remain mindful of the 1:15:34 1 hour, 15 minutes, 34 seconds profitability part of the business. It is not mindlessly uh growing the top line but any corresponding growth in the 1:15:42 1 hour, 15 minutes, 42 seconds top line how it is impacting our bottom line. We will remain mindful on that and see that not only growth metrics but our 1:15:50 1 hour, 15 minutes, 50 seconds asset quality, profitability metrics, our capital adequacy numbers all are getting consistently delivered. Thank you. 1:16:00 1 hour, 16 minutes Thank you sir. On behalf of Bank of Maharashtra we conclude this conference. Thank you for joining us.