Bank of Maharashtra Ltd — Q4 FY26

Bank of Maharashtra Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=aGoBWu_HQfU Published: 3 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Bank of Maharashtra's Q4 FYI 202526 post results conference call hosted by 0:10 10 seconds Systematic Shares and Stocks. As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:22 22 seconds Should you need assistance during the conference call, please signal an operator by pressing start and zero on your touchstone phone. I now hand the 0:30 30 seconds conference over to Mr. Sadhhat Rajpurheads from systematic institutional equities. Thank you and over to you Mr. Sadhhat. 0:38 38 seconds Uh good evening everyone. Uh thank you all for joining me uh poster conference call. Uh from the 0:46 46 seconds uh management today we have uh Mr. Andu Saka uh managing director and CEO, Mr. 0:53 53 seconds Prabhad Kiran, executive director and Mr. Sushata Kopar Bharti executive director. Uh we would like to 1:00 1 minute congratulate Mr. Bharti for being appointed as the ED to the bank. We are very grateful to the bank for giving us 1:07 1 minute, 7 seconds the opportunity to host them. I hand over the call now to Mr. Du Sakiraa uh for his opening remarks post which we'll open the call for Q&A session. 1:19 1 minute, 19 seconds Thank you. Yes, thank you and uh good afternoon to all and thank you all for 1:25 1 minute, 25 seconds joining this uh con call and uh I'm happy to share that uh we have seen yet 1:33 1 minute, 33 seconds another uh good year for the bank despite whatever uh uh I should say 1:40 1 minute, 40 seconds challenges geopolitical uncertainties and uh a real uh war for deposits also 1:48 1 minute, 48 seconds uh but bank uh has uh typically shared uh 18 to 19 parameters for which the 1:55 1 minute, 55 seconds guidance was shared beginning of the year. We have done this last year also and I'm happy to share that all the 2:02 2 minutes, 2 seconds guidance numbers across the growth parameters across the asset quality across the profitability metrics across 2:11 2 minutes, 11 seconds the capital adequacy efficiency ratios we have been able to meet all the guidance and at some of the places with 2:20 2 minutes, 20 seconds a decent margin above the guidance that was shared in the beginning of the year to just quickly uh the high level uh 2:30 2 minutes, 30 seconds pointers total business this year has grown at the rate of 17%. 2:36 2 minutes, 36 seconds and within which advances grew at 22%. Total deposits grew at 14%. 2:44 2 minutes, 44 seconds Uh within which our focus which had always remained on CASA CASA grew at a 2:51 2 minutes, 51 seconds double digit 12%. And our CASA ratio also was uh maintained above the 50. We 2:59 2 minutes, 59 seconds closed the year with 52.51 CASA. Uh term deposit also saw growth of 16%. 3:08 3 minutes, 8 seconds The asset side the RAM had uh good growth within which retail was growing 3:15 3 minutes, 15 seconds at 32%. The major focus products that supported this growth uh home loans grew at 29%. 3:24 3 minutes, 24 seconds Vehicle and gold which were marked as focus products to grow for this year grew at Yi 56% and Yi 53% respectively. 3:36 3 minutes, 36 seconds Agriculture and MSME portfolios also saw a doubledigit growth. MSME grew at 11% 3:43 3 minutes, 43 seconds agree grew at 13%. While we've been doing both these portfolios at 15 to 16%. 3:51 3 minutes, 51 seconds uh but we had initiated a conscious uh uh uh strategic part on our side to do a 4:00 4 minutes rebalancing in the portfolio and while in the first Q1 Q2 you would have seen 4:06 4 minutes, 6 seconds that the growth had gone down to single digit low singledigit I would say but we 4:13 4 minutes, 13 seconds closed the year with double digit growth and the process to grow quality agree and MS theme has uh onboard new fresh 4:22 4 minutes, 22 seconds business in that segment in that portfolio is going on for this year. It will continue also and we will soon 4:31 4 minutes, 31 seconds regain our 15 16% uh retail and agree sorry agree and MSME growth in the bank 4:39 4 minutes, 39 seconds corporate also we have been able to find uh uh areas which we mark as bullish 4:46 4 minutes, 46 seconds areas for the bank to go sectors like green clean energy renewable sector uh 4:53 4 minutes, 53 seconds we have funded in a major way and uh we have done infra uh loans, we have done 5:01 5 minutes, 1 second data centers, we have done uh uh lot of uh areas where there is lot of emphasis 5:08 5 minutes, 8 seconds and support system which is coming from the government of India and where we are seeing that huge scope and uh potential 5:16 5 minutes, 16 seconds to grow is there uh not only for the current FY but for the years to come. So we had marked these sectors as bullish 5:24 5 minutes, 24 seconds sectors and through our quick acquisition quick disposal we have even grown our corporate book yi at 22%. 5:34 5 minutes, 34 seconds Ram corporate share uh was within the guidance it was 63 in favor of RAM 37 was corporate. uh the asset quality has 5:44 5 minutes, 44 seconds also been contained well maintained well and there is improvement in both GNPA 5:50 5 minutes, 50 seconds and NNPA where we have seen improvement both in absolute terms and percentage terms as well the gross NPA uh has ru 6:00 6 minutes percentage come down to 1.45 45 with a 29 bips improvement year on year. Net 6:07 6 minutes, 7 seconds NPA came down to 0.13% five bips year on year and they both were well within the guidance number. 6:17 6 minutes, 17 seconds Recovery in the bank this year also had seen a good performance and within which our right off recovery book which is 6:25 6 minutes, 25 seconds almost marked as a focus area to uh perform uh around 20,000 21,000 crores 6:33 6 minutes, 33 seconds of writeoff book and we had planned that annually we should be recovering between 12 to500 6:41 6 minutes, 41 seconds uh for the next five years and the band which was kept a big band because uh out 6:48 6 minutes, 48 seconds of 25 20,000 crores around 7,500 crores were in NLT where bank would do a 6:55 6 minutes, 55 seconds process but at times uh you're not very sure whether the recovery will uh fall in a particular quarter or it may slip 7:03 7 minutes, 3 seconds to the other because uh of the uh some delays that may happen in the NCT. So we 7:10 7 minutes, 10 seconds had a band of 1200 to 1500 but I'm happy to share that for the last two years a lot of traction is seen last year 7:19 7 minutes, 19 seconds against FY22 number of 600 odd cres of recovery in written off book we did 1375 7:28 7 minutes, 28 seconds crores this year we have even surpassed that number it is 1423 uh crores of recovery in the writeoff 7:36 7 minutes, 36 seconds book so I think our our strategy is playing well. We are able to see resolutions and recovery in the write of 7:44 7 minutes, 44 seconds book and we will continue to uh focus this segment. We have a big uh I would say gold mine where we uh if we are 7:53 7 minutes, 53 seconds resolving we are contributing also to the OP of the bank. 7:59 7 minutes, 59 seconds The stress uh has been well managed. the uh uh overall stress uh saw an 8:07 8 minutes, 7 seconds improvement of 49 bits. Uh it has come down to 2.93%. 8:13 8 minutes, 13 seconds Within which uh SMA 1 + 2 is 1.39% which 8:20 8 minutes, 20 seconds also improved by 61 bits. uh as a result of this uh fresh growth and growth where 8:29 8 minutes, 29 seconds we have not mindlessly grown the top line but have remained conscious about the bottom line for every transaction 8:37 8 minutes, 37 seconds level we have been very consciously doing that our profitability also has grown uh in a very favorable way I would 8:46 8 minutes, 46 seconds say OP uh operating profit 10,826 crores grew y at 16% net profit with 8:56 8 minutes, 56 seconds 7,000 uh 7,19 grew Y at 27%. 9:03 9 minutes, 3 seconds Uh the profitability metrics of ROA ROE NIM they also were well above our guidance that we shared beginning of the 9:11 9 minutes, 11 seconds year against a NIM guidance of 3.75%. 9:17 9 minutes, 17 seconds At the beginning of the year we closed the year with a NIM of 3.91%. 9:23 9 minutes, 23 seconds If I have to share Q1, Q2, Q3, Q4, Q1 uh the NIM uh was 3.95. It went down to 9:32 9 minutes, 32 seconds 3.85 10 bips in quarter 2. Uh we have seen improvement thereafter which I have been sharing that probably the third and 9:41 9 minutes, 41 seconds the fourth quarter we will see no further contraction. we may see an improvement uh in our name and that's 9:48 9 minutes, 48 seconds despite the rate cuts during the FY we have seen that we have regained our name at 3.95 quarter 4 standalone name was 9:56 9 minutes, 56 seconds 3.95 full year name was 3.91 our guidance has been 3.75 10:03 10 minutes, 3 seconds ROA uh quarter 4 1.97% so barely uh touching the 2% but for the 10:12 10 minutes, 12 seconds full year our ROA A has been 1.86 against a guidance of 1.75. 10:20 10 minutes, 20 seconds Seeing this good traction uh while I will share also the guidance number of important uh parameters we are ready 10:28 10 minutes, 28 seconds with those guidance numbers but I I can share for ROA we have upped our guidance over the last year we have said that guidance for this year ROA will be 1.80. 10:41 10 minutes, 41 seconds Going over to the roe, Q4 ROE 26.61, full year ROE is 23.19%. 10:50 10 minutes, 50 seconds Our net interest income also has grown handsomely 17% YI growth. We have 10:57 10 minutes, 57 seconds contained and contained our cost to income below our guidance of 40 and it closed with 37.08%. 11:07 11 minutes, 7 seconds Yield on advances uh uh has been maintained at 9.05%. 11:15 11 minutes, 15 seconds Cost of funds and cost of deposits both have seen uh a reduction. Cost of funds at 4.15% 11:24 11 minutes, 24 seconds uh has reduced 7 bips yearonar. Cost of deposits has uh improved by 14 bips yearonar at 4.52%. 11:38 11 minutes, 38 seconds Capital adequacy we are adequately capitalized and with this fular profitability now also added CT1 uh is standing at 14.59%. 11:50 11 minutes, 50 seconds CR uh is at 18.36%. 11:55 11 minutes, 55 seconds Government of India holding uh during the FY uh with the OSS issuance by 12:02 12 minutes, 2 seconds government of India has come below the 75% we are a MPS compliant bank now and 12:10 12 minutes, 10 seconds government of India holding stands at 73.60%. 12:14 12 minutes, 14 seconds participation from FIS and DIIS have gradually been increasing over the past 12:21 12 minutes, 21 seconds two years and we have been very very uh particular about our engagements with the investors both foreign and domestic. 12:32 12 minutes, 32 seconds Just to give you a number the FI shareholding has gone up from 0.39% 12:40 12 minutes, 40 seconds in uh 2023 to 5.8%. 8%. Likewise, DII excluding the LIC and the bank 12:47 12 minutes, 47 seconds treasuries has gone up from 0.24% to 6.86%. 12:56 12 minutes, 56 seconds I think uh I will take a pause. These are the broad numbers the presentations are shared with you. uh I will take a 13:03 13 minutes, 3 seconds pause to take questions and uh while we go ahead with those maybe give some more additional inputs from our side. 13:14 13 minutes, 14 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 13:23 13 minutes, 23 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use answers while asking a 13:32 13 minutes, 32 seconds question. Ladies and gentlemen, we will wait for a moment while the question cue assembles. 13:51 13 minutes, 51 seconds The first question is from the line of Ashok Kachmera from Matchcon Global. Please go ahead. 13:57 13 minutes, 57 seconds Uh thank you for giving me the opportunity. Uh before I start uh uh let me congratulate and welcome our new ED 14:05 14 minutes, 5 seconds Sashan Kumar Jing on sir. Welcome to you to bank of Maharashtra from analyst side. You have recently joined. Having 14:14 14 minutes, 14 seconds said that congratulations Nidusar and the entire team of management of bank of Maharashtra for the fantastic results. 14:22 14 minutes, 22 seconds So it's not only a question of quarter but on the overall FI26 you have performed exceedingly well and once 14:30 14 minutes, 30 seconds again have gone uh you know beyond 50 to beyond 50% on the on the kasa beyond 20% growth on the credit and almost every 14:39 14 minutes, 39 seconds parameters that you yourself narrated you have met all the guidance and one of the excellent performance though you are 14:47 14 minutes, 47 seconds the first to declare uh the results among the public sector banks but still I would You are one of the best performers sir. My compliments to you. 14:56 14 minutes, 56 seconds Uh having said that sir sir I would like to have your views uh because now going forward 15:03 15 minutes, 3 seconds uh this war started from 28th of February this you know Iran, Israel and US war and the impact might not have been seen so much in March. 15:13 15 minutes, 13 seconds uh but now going forward in April, May, June in this current quarter uh where do you see uh the impact of this war coming 15:22 15 minutes, 22 seconds to our uh corporate account mainly the MSME accounts and is there any stress which you have already started uh 15:30 15 minutes, 30 seconds feeling because till last year till 31st March the SMA numbers are good SMA 1 is 15:36 15 minutes, 36 seconds only 241 cr SMA 2 is only 56 crores so so what are your comments on that sir 15:43 15 minutes, 43 seconds and and and what kind of impact do you see sir of this war? 15:48 15 minutes, 48 seconds So G uh you are right when you're saying that there is a crisis ahead of us but 15:56 15 minutes, 56 seconds we also know that we are yet to see the end of the crisis. It'll be very difficult to say what will be the full 16:03 16 minutes, 3 seconds impact because uh uh if this kind of crisis will stretch and if it'll prolong 16:11 16 minutes, 11 seconds uh we would see more pain coming in is what the sense tells us. uh but we are very closely monitoring watching the 16:18 16 minutes, 18 seconds developments and I'm sure at the highest level in the government and the regulator uh their engagements are on to 16:26 16 minutes, 26 seconds see how things pan and uh at the bank level uh I I would say that uh if you since you mentioned about the uh 16:33 16 minutes, 33 seconds portfolio MSME portfolio uh so far March there is no uh element of stress or sign 16:42 16 minutes, 42 seconds of any worry in fact my MSME NPA number has actually come down has come down to 1.54%. 16:50 16 minutes, 50 seconds So which is an improvement but having said that uh yes uh with uh headwinds 16:56 16 minutes, 56 seconds like uh crude you know or rent crude more than $115 anything 17:04 17 minutes, 4 seconds above $100 uh will bring pain. We may see inflation if this is getting prolonged for long. We all understand 17:12 17 minutes, 12 seconds the rupee uh dollar and uh how the currency depreciated will have its own impact and so we are watching it very 17:21 17 minutes, 21 seconds closely and uh you're also right to say that March will not be where the impact 17:28 17 minutes, 28 seconds you may see the impact in uh not Q1 by Q2 you will see the fallout of the West 17:34 17 minutes, 34 seconds Asia crisis but as I again said we are still to see the end so we can only hope uh that the crisis resolves and uh what 17:44 17 minutes, 44 seconds damage must have happened the impact how fast it can be replaced 17:52 17 minutes, 52 seconds uh is also needs to be seen. So you may see in following quarters the impact of the damage which has happened. It is not 17:59 17 minutes, 59 seconds that the war ends and everything goes back appears normal because something 18:07 18 minutes, 7 seconds gets uh disturbed the uh the crude supply uh where some actions are there 18:14 18 minutes, 14 seconds it hit. So to replace those damages will take time and so one may see but uh we 18:21 18 minutes, 21 seconds need to watch uh and we are completely mindful of the impact. 18:26 18 minutes, 26 seconds Uh yes sir point well taken sir you have explained it very well sir I got a few data points and some some observation 18:34 18 minutes, 34 seconds uh uh in the provision front you know we used to have that 1,200 cr uh that spatial provision I think that covid 18:41 18 minutes, 41 seconds provision but this time it has come down to uh 1,0 so 190 cr has gone up uh from 18:49 18 minutes, 49 seconds that buffer from that provision we used to maintain so is it uh used in the normal uh provisioning I mean but for it 18:57 18 minutes, 57 seconds the provision would have been more by 190 crores in this quarter this is my yeah 19:05 19 minutes, 5 seconds right so uh point is well taken uh we we have been mindful of the nudges that are 19:13 19 minutes, 13 seconds coming from the regulator when we are passing a benign phase uh where we are uh seeing that everything is good the 19:22 19 minutes, 22 seconds the balance sheet banks are good corporates are uh every bank is uh also uh showing 19:30 19 minutes, 30 seconds profits. So uh what has been continuously being said when the good times you should keep maintaining 19:37 19 minutes, 37 seconds buildup uh provisions. So but uh to have a covid provision and covid is uh all 19:43 19 minutes, 43 seconds gone way back. Yes. Uh uh beyond the point there is no sense to build that kind of provision. So uh while the covid 19:52 19 minutes, 52 seconds book has uh reduced uh it has actually been uh a nudge coming from the auditors also that uh when we are adequately 20:01 20 minutes, 1 second provided when you are maintaining NNPA of 0.25 25 guidance and actually the 20:09 20 minutes, 9 seconds performance is much below that 0.13 is the number. So any any fresh slippages that we are encountering we are supposed 20:18 20 minutes, 18 seconds to as per RX norms go with 15 but we are providing 100% up front. So we are adequately provided. So why you should 20:25 20 minutes, 25 seconds now uh keep this? But actually what we have done if you see I think this is again an industry first uh keeping in 20:33 20 minutes, 33 seconds mind this West Asia crisis we have internally created there is no regulator prescription. There is no nudge also 20:41 20 minutes, 41 seconds towards that but we are calling it as a global geopolitical uncertainties provisioning and we have in this quarter 20:49 20 minutes, 49 seconds uh built a provision of 200 crores what we will do in the next quarter whether we'll top it up uh we don't know but I 20:57 20 minutes, 57 seconds we we thought we will be prudent when uh if any challenges are coming prudence will be elect uh actively provide for if 21:07 21 minutes, 7 seconds uh there is a headroom or there is uh enabler with you let's utilize that so we we call it global geopolitical 21:16 21 minutes, 16 seconds uncertainties provision 200 crores to begin with in this quarter I have created so it is just shifted you know from 21:23 21 minutes, 23 seconds there to here in fact the 1200 cr has become 1,0 so another fresh 200 cr position has been made fine you can you 21:33 21 minutes, 33 seconds can look at it that way because uh amount is almost appearing to be similar but this was something a consciousness 21:41 21 minutes, 41 seconds uh which came not because uh the auditors wanted that why do we so much uh keep provisioning on uh the covid 21:50 21 minutes, 50 seconds thing but we had uh on our own decided that we will be uh continue to remain 21:57 21 minutes, 57 seconds prudent and if prudency uh requires that when you see a challenge or a headwind 22:05 22 minutes, 5 seconds and if you are providing for it so there was no link to add to this but yes uh somehow the amount is near to that. So 22:14 22 minutes, 14 seconds there is irony that even the good points you know are put in the emphasis by the auditors. Even if you are holding extra provision they put as a emphasis item. 22:24 22 minutes, 24 seconds But anyway uh sir my one point is on this overseas advances book uh which has 22:30 22 minutes, 30 seconds gone up from 3517 cr to 6,142 crores. I believe this must be gift city. Uh so 22:37 22 minutes, 37 seconds what kind of book we have built here uh which has gone up from 1.29% to 2%. 22:44 22 minutes, 44 seconds So uh it is a combination of participating in some global syndications. Uh we we we are seek city 22:53 22 minutes, 53 seconds today we have started operations in the last FY we will see lot of opportunities to begin with the corporate then we are 23:01 23 minutes, 1 second also we have taken a complete suite of inoses. We also intend to do in this uh 23:08 23 minutes, 8 seconds half year uh of this current FY H2 we will be good to go with uh the uh retail 23:15 23 minutes, 15 seconds products in our gift IPO. So currently it is mostly corporate books but we are ECBS global syndications uh that's what 23:23 23 minutes, 23 seconds we are doing even uh the way uh we have uh in a very short time uh moving very 23:30 23 minutes, 30 seconds decisively uh I recall 13th February 2025 we get the nod from the Reserve Bank of India and we took 6 months to 23:40 23 minutes, 40 seconds book our first business 13th September four transactions were booked and uh September 2025 5 we had 100 million of 23:48 23 minutes, 48 seconds uh glo overseas business in our books and from there the journey started we we have kept aspiration of making uh gift 23:56 23 minutes, 56 seconds city in 12 months uh minimum 1 billion book uh 650 million we've already done 24:03 24 minutes, 3 seconds and I can share with you that we have uh we there is a pipeline visibility to us of 350 million so that aspiration is 24:12 24 minutes, 12 seconds going to be getting achieved uh while in the board when went for suggesting for a gift license. 24:20 24 minutes, 20 seconds We said we may take 3 years to break even. But I'm happy to share. We said why not in the first 12 months the 24:27 24 minutes, 27 seconds balance sheet should be a profit net profit should be there. And uh what we have done in March in GIF city we have 24:35 24 minutes, 35 seconds achieved after covering the entire overheads staff cost premises everything including the IT we have been able to 24:44 24 minutes, 44 seconds see uh bottom line positive in the gift IBU also. So that aspiration that part of aspiration also will uh I'm sure be achieved uh in the gift IBU. 24:58 24 minutes, 58 seconds Sorry to interrupt Mr. Mira may we requested to please rejoin the queue. We have participants waiting for one question. 25:07 25 minutes, 7 seconds Can I go? Hello. Please go ahead sir. 25:14 25 minutes, 14 seconds Yeah. So on taxation princification our average tax income tax it has come to 10.66% 25:21 25 minutes, 21 seconds of the profit for the whole year. Can um the CFO you can throw the light on the entire DTA provision and everything and 25:29 25 minutes, 29 seconds what is the status where do we stand today on the taxation front sir? 25:35 25 minutes, 35 seconds Okay since you said CFO I'm passing on the line to the CFO. 25:39 25 minutes, 39 seconds Yes sir. With regards to tax, average tax rate is coming around 10 to 11%, because we are getting deduction in the 25:47 25 minutes, 47 seconds forms of bad depth provision also in under 3 uh 367A and 367 25:54 25 minutes, 54 seconds uh two sections mainly we are operating where we are getting deduction. Apart from that sir also of other DTAs like in 26:03 26 minutes, 3 seconds this DTA we have hardly 17 cr we have created. So that is also there. So 26:10 26 minutes, 10 seconds overall sir if you see in our bank or other banking sector sir operating profit for 13 to 14% 26:19 26 minutes, 19 seconds uh average tax rate is coming. So since in first quarter we are having some unobserved losses of around 12 to,300 26:26 26 minutes, 26 seconds crores. So first quarter we have consumed that losses and after that uh second quarter and onwards we are coming 26:34 26 minutes, 34 seconds to the normal tax bucket rates and since we are opted for new reim so 25% tax rate is coming so for OP it is a 13 to 26:42 26 minutes, 42 seconds 14% average rate is coming for us and s considering the partly profit and we are having questions now since we are not 26:50 26 minutes, 50 seconds requiring any additional provision so we are not seeing anything that we will not able to cover that provisioning requirement from tax sites and also we 27:00 27 minutes have in this quarter we have paid the advanced tax of 930 crores total advanced tax this for uh FY 2627 27:10 27 minutes, 10 seconds so you mean to say that in future now our tax will be 25.17% because we we we have finished all those 27:18 27 minutes, 18 seconds benefits of the bandits and the GTA and other things so we will come back into the normal bucket normal tax rate bucket 27:24 27 minutes, 24 seconds isn't it? Yeah. So this here itself from second quarter itself we are in the normal buck tax bucket rate and we are 27:32 27 minutes, 32 seconds uh accordingly provided tax provision is has been done and sufficiently advanced tax is also paid. 27:40 27 minutes, 40 seconds Okay sir thank you very much sir in this round if time permits I'll come back again sir. Thank you and all the best sir. 27:48 27 minutes, 48 seconds Thank you. The next question is from the line of Priyanga from Walam Capital. Please go ahead. 27:54 27 minutes, 54 seconds Yeah. Hi Nu sir and uh Bank of Maharashtra team thank you for the opportunity again congratulating their set of numbers. Uh first sir uh 28:03 28 minutes, 3 seconds you have been highlighting on various calls about the strategy which is working well. I won't I would like to hear it out again on what actually has 28:13 28 minutes, 13 seconds laid out for Bank of Maharashtra to achieve all the guidances that were set 12 months ago in such a volatile year and if you can also touch upon what will 28:22 28 minutes, 22 seconds work what has worked till now and what will work going ahead uh over next 2 three years. 28:30 28 minutes, 30 seconds Uh so uh what we have uh been working with a theme see bank has been 28:37 28 minutes, 37 seconds performing uh well for last couple of years and uh the only sense that we were 28:44 28 minutes, 44 seconds drawing that uh our scale and size of operations was not as significant. So we want the two years back when I joined 28:53 28 minutes, 53 seconds and we kept this vision that we will become bank of a greater significance and two three things that we uh uh 29:00 29 minutes jotted down for us. One is that we want to grow in scale and size. So the top 29:07 29 minutes, 7 seconds line has to grow and if you see the stack of 12 PSVs we were ranking in 29:13 29 minutes, 13 seconds terms of size at the position 11 and what we decided that in the next two to 29:20 29 minutes, 20 seconds three years minimum two notches is what we should grow in size. So from 11th we have to come to the ninth but then uh we 29:28 29 minutes, 28 seconds said it is not a mindless topline growth. what we will be doing that with uh top line bottom line growth has to 29:36 29 minutes, 36 seconds correspondingly improve uh if it cannot be uh I mean if possible we will try to 29:44 29 minutes, 44 seconds even improve it further because we maintain some good ratios you would have seen most of the ratios are now among 29:51 29 minutes, 51 seconds the top three in the industry in terms of profitability asset quality we rank in position 1 to three on the critical 29:58 29 minutes, 58 seconds ratios uh when we compare ourselves with the industry. Uh so we would like to not go down on a single ratio. So the mantra 30:07 30 minutes, 7 seconds for growth was it should be a growth but it should be a profitable growth. Then there is no compromise on the quality. 30:14 30 minutes, 14 seconds So around this theme we had done lot of things. I I recall we had a fine uh you 30:22 30 minutes, 22 seconds know a very fine rate table rate link rate product. We had certain exposures but we said we made our exposure zero uh 30:31 30 minutes, 31 seconds during the course of the year and we switched on from core business that should happen from my 2500 2600 branches 30:40 30 minutes, 40 seconds and for that we did lot of product impro improvisations new product improvements processes were streamlined our review 30:49 30 minutes, 49 seconds mechanism went for a total change when we started to review our zonal leaders in terms of their core business growth. 30:58 30 minutes, 58 seconds It is not enough that institutional relationship is settled and your 20% branches are optimum uh performing. It 31:06 31 minutes, 6 seconds is essential that your core business is your core uh core area. The bulk element of business central office head office 31:13 31 minutes, 13 seconds will take care. So that's uh that's the theme with which we started to review them and I think dividends were visible 31:21 31 minutes, 21 seconds and uh we we have seen now that the uh the volatility in the loan in the total 31:28 31 minutes, 28 seconds book total business book also is not there because whatever new business has come has also come from uh core which is 31:36 31 minutes, 36 seconds happening from individual branches. So uh we went on to reduce our overd dependence on pool buyout transactions. 31:43 31 minutes, 43 seconds Not that we are averse to doing wherever we get good pricing and at times we want to look at uh meeting our PSL 31:50 31 minutes, 50 seconds requirements we will do those transactions but that's a central office call. So my branches zones they were all working towards getting core business. 31:59 31 minutes, 59 seconds So this is one thing uh this theme is going to continue uh uh going forward as well. I am also a differentiated bank 32:07 32 minutes, 7 seconds with this kind of a geographical expansion. I think no bank uh in PSB space and particularly the large players 32:16 32 minutes, 16 seconds who saw amalgamation and mergers they had to uh logically go for some sort of a rationalization where some branches 32:25 32 minutes, 25 seconds had to be closed down. So we were differentiated that we were opening branches uh uh lately when the private 32:32 32 minutes, 32 seconds banks uh did realize one to two years back. So you would have seen HDFCs, Axis, ICICS have decided to open few 32:40 32 minutes, 40 seconds branches in some rural semi-urban centers. But we were organically uh growing uh and expanding our presence 32:48 32 minutes, 48 seconds and this uh uh branch expansion is happening continuously. I have a thousand branches approval from the 32:56 32 minutes, 56 seconds board to be opened in the five years. We are in a very calibrated and scientific 33:03 33 minutes, 3 seconds manner growing the branch presence across the country. Uh for the first 3 years uh we are calling it as phase one 33:11 33 minutes, 11 seconds wherein we are currently running a project 321. We are opening 321 branches. While I speak 183 branches 33:19 33 minutes, 19 seconds till date have become functional and they're actually doing business and they are scientifically selected to be opened in a center down to the pin code level. 33:29 33 minutes, 29 seconds So with this kind of very focused approach we are despite whatever headwinds we are able to see business we 33:37 33 minutes, 37 seconds are able to see profitable business we are able to also do business without compromising in any way on the quality 33:44 33 minutes, 44 seconds of business and that's how we will continue to uh go ahead with sir amazing for the and much appreciate the 33:53 33 minutes, 53 seconds detailing uh so I just have another two questions uh second question on on the 1819 parameters which you had said on 34:01 34 minutes, 1 second the on the various level uh guidances and the forward-looking uh statements that you had made for uh 34:09 34 minutes, 9 seconds the bank for us to judge for the following 12 years and you have meticulously achieved that in FI26. What would be those comparable numbers when I 34:18 34 minutes, 18 seconds have to look uh Bank of Maharashtra for FI27? 34:22 34 minutes, 22 seconds That is that is my question number second. 34:25 34 minutes, 25 seconds Yes sir. uh again the last two years we have been uh announcing and uh sharing 34:32 34 minutes, 32 seconds these guidances beginning of the year and we are fully committed to uh achieve each of those parameters. Uh the same 34:41 34 minutes, 41 seconds exercise has been done for FY 2627. I can very quickly for benefit of all share these numbers. So total business this year we plan to grow at 16 to 17%. 34:54 34 minutes, 54 seconds within which advances will grow at 18%. 34:57 34 minutes, 57 seconds Deposit to grow at 14 to 15%. CASA uh we will maintain around 50%. 35:06 35 minutes, 6 seconds Ram book will be growing at 18%. 35:10 35 minutes, 10 seconds Ram corporate uh the ratio 60 40 plus minus 2%. Net interest income is to grow at 15%. 35:19 35 minutes, 19 seconds Name the guidance for this year is 3.75%. Non-interest portion to grow at 10%. 35:28 35 minutes, 28 seconds Cost to income we will continue to maintain as last year below 40%. 35:33 35 minutes, 33 seconds ROA here we have actually upped our guidance number by five bits. Last year ROA guidance was 1.75. 35:43 35 minutes, 43 seconds uh while by seeing quarter 4 ROA touching 1.97 I'm barely touching two so 35:50 35 minutes, 50 seconds ROA we want to keep a guidance of 1.80% ROE while we did 23% 35:59 35 minutes, 59 seconds plus for this year we want to maintain a guidance of 20% and more GNPA will remain within 2% NNPA within 0.25% 25%. 36:12 36 minutes, 12 seconds Slippage will be maintained below 1%. And credit cost will be around 1%. 36:20 36 minutes, 20 seconds PCR at 98% and CR to be maintained at uh 36:27 36 minutes, 27 seconds 18%. So these are the broad guidance number which will again guide our path and very thoughtfully seeing our past 36:36 36 minutes, 36 seconds trend performance and keeping also some headwinds in mind and keeping a challenge for us uh we we we have uh 36:44 36 minutes, 44 seconds kept this number and we'll the team is committed to see that as we have done in last two years we should uh there's no 36:52 36 minutes, 52 seconds compromise these are sacros numbers for us we will be achieving it sir Sorry to interrupt. May we request Mrs. 37:00 37 minutes Sha to please rejoin the queue. We have participants waiting for the turn. 37:05 37 minutes, 5 seconds Thank you. The next question is from the line of Pat Goodka from 361 Capital. Please go ahead. 37:13 37 minutes, 13 seconds Yeah. Hi. Uh thanks a lot for the opportunity. Uh so my first question is uh on the fee income uh our fee income 37:20 37 minutes, 20 seconds growth uh you know was was lower uh or or way lower than the loan growth uh you know so what are the steps we are taking here to improve our C income. 37:32 37 minutes, 32 seconds So uh non-interest income if you are uh you must have seen it is 2.51%. 37:39 37 minutes, 39 seconds Whereas we have kept uh whereas we have kept uh 10% guidance uh 37:47 37 minutes, 47 seconds for this year. Uh what has happened in this particular financial year there is uh uh uh one time uh exercise where I 37:57 37 minutes, 57 seconds had to provide for 290 crores. So there we have a RRB Maharasa Grammine Bank and 38:04 38 minutes, 4 seconds Government of India initiative to have one state one RRB. Uh I uh got to 38:11 38 minutes, 11 seconds amalgamate the RRB from Bank of India with this uh uh V with Funkan Grammine 38:18 38 minutes, 18 seconds Bank. So now the entire state of Maharashtra today we are a single RRB and that RB I am the sponsor bank and 38:26 38 minutes, 26 seconds the book is also a significant size 44,000 crores of business with this RRB coming in uh unfortunately for us uh it 38:35 38 minutes, 35 seconds was uh carrying accumulated losses on balance sheet and standalone also there was a loss and uh I had to take the 38:45 38 minutes, 45 seconds investment on face value so there was a immediate MTM which we had to provide and 290 crores is what the hit I took as 38:54 38 minutes, 54 seconds one time but then as I said this is MTM uh already 10% 10 crores sorry not 10% 39:00 39 minutes 10 crores we have seen uh improvement in that but this is why my non-interest income parameter has gone weak but I'm 39:09 39 minutes, 9 seconds happy that you have uh raised this issue uh for this year even before we we had actually we do Keep in mind that beyond 39:19 39 minutes, 19 seconds the critical parameters we will keep every year uh one or two areas where we will be focusing and seeking 39:27 39 minutes, 27 seconds participation from each and every branch my each and every zone and each and every staff member and all vertical 39:35 39 minutes, 35 seconds heads. So last year we have done this focus on uh growing a quality agree and 39:41 39 minutes, 41 seconds a MSME book. This year the one parameter which we have already decided 39:47 39 minutes, 47 seconds is uh fee based income and uh two days from now we are uh we planned our uh board strategy meet and my zonal 39:56 39 minutes, 56 seconds leaderships will be all together we will be disclosing this uh special ask for this this year one is that we will make 40:05 40 minutes, 5 seconds it as a year of deposits and second is that we will make it as a year where we see huge scope of growing our fee based 40:14 40 minutes, 14 seconds income and to help them do the central office verticals are working overtime to already pro uh work on giving them 40:23 40 minutes, 23 seconds enablers so they are able to respond to this corporate call and deliver uh better results better outcomes in this FI. 40:32 40 minutes, 32 seconds Sure. Sure. sir thanks. So my second question is uh uh you know on the uh cost of deposit. So what percentage of your deposit is yet to ref. 40:52 40 minutes, 52 seconds So uh uh see this uh uh repricing now uh there is no much of portfolio which is 41:00 41 minutes uh seen to be repriced. uh we have seen the entire because uh in fact I would say when we used to look at this uh 41:09 41 minutes, 9 seconds parameter and look at what the industry average my average maturity profile was somewhere around 10 to 12 months. So we 41:17 41 minutes, 17 seconds saw repricing also happening faster than the industry and uh you would have seen probably this is one of the reasons one 41:25 41 minutes, 25 seconds of the contributors that my cost of deposits have gone down yearon year 14 bits it is 4.52%. 41:35 41 minutes, 35 seconds Within which the quarter 4 was 4.33%. 41:39 41 minutes, 39 seconds The full year is 4.52 but quarter was 4.3%. So this is what uh the impact is 41:46 41 minutes, 46 seconds and uh I mean I that answers your question. 41:50 41 minutes, 50 seconds Yeah. Yeah. And and answer my last question uh the yield on investments has improved materially over on a QQ basis 41:58 41 minutes, 58 seconds from 6.71 to 6.8 what has led to improvement? 42:08 42 minutes, 8 seconds Yeah, actually uh there was one of the factor uh one of income which was booked during current quarter. So because of 42:15 42 minutes, 15 seconds that otherwise the was flat during current quarter. 42:19 42 minutes, 19 seconds Okay. Can you please quantify uh that number if possible? 42:24 42 minutes, 24 seconds Yeah that that was roughly around 2025 K. Okay sir. Thanks a lot. Thank you. 42:32 42 minutes, 32 seconds Thank you. The next question is from the line of Jundra from ICIC securities. Please go ahead. 42:39 42 minutes, 39 seconds Yeah. Hi, good evening sir and congratulations on a great number. Uh sir I have few questions. One is uh on 42:48 42 minutes, 48 seconds the treasury portfolio uh if you can suggest how much was the MTM the number that we have given is the total MTM plus 42:56 42 minutes, 56 seconds realized gain uh and the movement in AFS reserves from Q3 to Q4. 43:05 43 minutes, 5 seconds Yeah. Sir uh uh in the FDPL portfolio we uh we had around 40 45 crores of M2M and 43:13 43 minutes, 13 seconds we have uh uh provided that into the books and in AFS yes sir you have rightly uh seen that uh the AFS result 43:23 43 minutes, 23 seconds is coming down okay and uh that has turned into red but as on date uh because the yield as on 31st uh March 43:32 43 minutes, 32 seconds and now it has improved a bit around 10 to 15 bips So uh we find uh the FS reserve uh still 43:41 43 minutes, 41 seconds into the red but it is under under manageable. It is manageable. 43:46 43 minutes, 46 seconds Right sir, I was more interested in knowing the swing from Q3. How much was the AFAS reserves and I believe because 43:54 43 minutes, 54 seconds have come back to below 7% so you would have seen a recouping of uh this thing but how much was AFS reserves in Q3 and 44:02 44 minutes, 2 seconds how much was it at the end of the quarter March quarter? Yes sir. 44:07 44 minutes, 7 seconds Yeah. So uh it was the 175 crores positive as on Q3 and uh uh as on day I 44:13 44 minutes, 13 seconds mean for 31st March uh it is 362 crores negative. 44:18 44 minutes, 18 seconds So roughly around 500 crores 5 550 crores swing is this right? Okay. Sure. And sir u on u 44:27 44 minutes, 27 seconds question to Midu sir sir on PLI performance linked incentive uh how much 44:34 44 minutes, 34 seconds was the total payout for Q4 performance linked incentive sir PLI thing. So how much uh was the payout? 44:43 44 minutes, 43 seconds How much was the payout in Q4 and maybe FI26 and uh what is the scheme that we have 44:51 44 minutes, 51 seconds in PLI in the sense that you know uh I think now you can only offer one PLI above you know certain grade do we 44:59 44 minutes, 59 seconds practice that 15 days for everyone and then an additional PLI for uh class 4 and above or how how is it 45:08 45 minutes, 8 seconds so J what we have done is uh for scale up to three uh as per the agreed formula 45:16 45 minutes, 16 seconds in the IBA uh we have gone ahead and uh released the PLI uh to them and for the 45:24 45 minutes, 24 seconds uh category of officers scale four and above since there are discussions uh going around finer points are still but 45:32 45 minutes, 32 seconds as a bank we have made 100% provision on some estimations uh that we have already 45:38 45 minutes, 38 seconds in place so provision is there uh the PLI released uh probably uh we'll take 45:45 45 minutes, 45 seconds some uh discussions uh before we actually are able to release the amount. 45:53 45 minutes, 53 seconds Okay, sure. Uh maybe I'll take this offline. So that is okay. And sir, the assignment number right which gives the 46:00 46 minutes BSC disclosure that gives like 14,000 cr is the aggregate amount of loan that we have acquired through assignment. 46:09 46 minutes, 9 seconds uh I I was hoping that this will be mostly mortgages andme but uh the tangible security coverage is 46:19 46 minutes, 19 seconds only 12 13%. So what is the nature of these loans? What have we acquired where the tangible security is so less or what am I missing here? 46:31 46 minutes, 31 seconds One moment sir I I am just passing the line to my 46:44 46 minutes, 44 seconds Please, please feel free. We are going to provide you that is not an issue. Uh so I'm just handing over to Chanda EGM 46:52 46 minutes, 52 seconds credit. I will respond. Uh if you're not satisfied or you need more information, please do let us know. We will do that. 46:59 46 minutes, 59 seconds Chanda. So regarding unsecured Yes sir. 47:03 47 minutes, 3 seconds uh we had a uh loan to a nabad which was a substantial amount so that contributed 47:09 47 minutes, 9 seconds to that portfolio J s that 14,000 approximate amount is in 47:19 47 minutes, 19 seconds a pool lending so majority of the pool is in a our double A and AAA rated NBFCs 47:25 47 minutes, 25 seconds is there so the it is in MFI sector and some of the housing pool is also there uh So but that housing pool is secured. 47:35 47 minutes, 35 seconds MFI pool is uh like that it is in a consumption or some productions pool is 47:42 47 minutes, 42 seconds there. So that security is reflecting lower side but it is a given to NBFCs which are the AAA and double A rated. So 47:51 47 minutes, 51 seconds as of now but that portfolio is doing well right. Okay. I was hoping that only sir 47:59 47 minutes, 59 seconds but it it says that the loan acquired are not created because these are non-corporate borrower because the pool is underlying pool is individual but uh 48:08 48 minutes, 8 seconds the originator is NBFC right that is the that is the way it is correct okay sure so similar I take this offline 48:16 48 minutes, 16 seconds also so that is good and the last thing is sir u from my side is uh this uh 48:25 48 minutes, 25 seconds sorry the tax rate you No uh you said that it is already normalized but if I calculate tax rate as a percentage of 48:32 48 minutes, 32 seconds PBT it still is uh 12 13% in the last 2 three quarters. So um I mean uh you you 48:40 48 minutes, 40 seconds have said that it has normalized but will you be um because you may have some rural advant advances or some exemption 48:49 48 minutes, 49 seconds what is the true tax rate for uh us uh in FI27 48:56 48 minutes, 56 seconds sir and now we are in the normal tax rates and if you see from OP point of view we can say 13 to 14% operating 49:04 49 minutes, 4 seconds profit 13 to 14% is exactly rate we are getting. So it is affecting multiple factor like ruler advances how much we 49:13 49 minutes, 13 seconds are the bets in there and exactly because some assumption basis 8.5% 49:21 49 minutes, 21 seconds directly we are getting the deduction so and uh the DTA is also one of the factor so multiple factor is there so on the OP 49:30 49 minutes, 30 seconds basis we can say 13 to 14% exact right no so my only question was when we 49:37 49 minutes, 37 seconds give guidance you know while we be doing everything right uh but if the tax rate itself moves from let's say this year tax rate 49:46 49 minutes, 46 seconds if I calculate tax upon PBT is less than around 10%. But if next year it is 25%. 49:53 49 minutes, 53 seconds Then despite delivering on PBT you may uh I mean the tax outgo itself can swing. So that is why I was uh hoping uh 50:02 50 minutes, 2 seconds if the tax rate will remain more or less similar or you believe it will move up from 10% to 25% next year. That is the question. 50:10 50 minutes, 10 seconds It is more of similar only because this year also we are hardly having 1200 cr unobserved losses over the whole the 50:18 50 minutes, 18 seconds period we have done whatever required provisioning is there and we have paid the advanced tax. So considering the other factors that this is the normal 50:26 50 minutes, 26 seconds rate is uh there. So and it is now normalized. 50:31 50 minutes, 31 seconds Okay, understood sir. Yeah, thank you and all the very good sir. 50:36 50 minutes, 36 seconds But Mr. J sir, if you have still some elements to be uh answered, additional information uh we will be providing. 50:45 50 minutes, 45 seconds Please be rest assured on that. 50:47 50 minutes, 47 seconds I you know I know I know sir you have been very prompt. Uh I'll come back sir. Yes. Thank you. Okay. Thank you. 50:55 50 minutes, 55 seconds Thank you. The next question is from the line of Aksha Badlani from HFC Securities. Please go ahead. 51:02 51 minutes, 2 seconds Yeah. Hi, thank you for taking my question. Uh my first question is around uh the fact that uh the Maharashtra government has announced farm loan 51:10 51 minutes, 10 seconds waiverss for uh for you know KCC loans less than 2 cr. So uh just wanted to get 51:17 51 minutes, 17 seconds a sense as to how do we see the impact of that uh you know because majority of our agri advances are in Maharashtra and 51:25 51 minutes, 25 seconds uh because of that if you know do we envisage any you know borrower behavior that could get impacted that is one and 51:34 51 minutes, 34 seconds second was around uh uh you know as we said that you know we have made some additional provisions regarding geopolitical risk do we also see a sense 51:44 51 minutes, 44 seconds whether you know we could price our loans better. Is there a scope of you know our yield on advances going up if we are sensing some risk in the MSME 51:52 51 minutes, 52 seconds sector especially because of the geopolitical risk? Thank you. 51:57 51 minutes, 57 seconds So uh uh the state has uh already uh I think budgeted for this year uh that 52:04 52 minutes, 4 seconds there should be a debt favor while the approved scheme has to still come and uh known to the banks. But we are aware of 52:13 52 minutes, 13 seconds couple things couple of things because uh we being the SLBC and we are otherwise also discussions at various 52:21 52 minutes, 21 seconds forums. So below two lakhs uh KCC loans which are outstanding as on 52:28 52 minutes, 28 seconds 30th September 2025 and which are overdue or have already slipped to NPA are the eligible accounts that will be 52:37 52 minutes, 37 seconds considered for any uh scheme that will come. So we have our calculations are in place. So overdue our overdue amount uh eligible accounts will be 917 crores. 52:49 52 minutes, 49 seconds NPA is 1067. So put together it is 1984 to help uh to understand uh so around 52:57 52 minutes, 57 seconds 2,000 crores of debt waiver amount is what one can expect. We we don't see ma any major challenges around this 53:06 53 minutes, 6 seconds probably once the budgeted uh action is done and the approval is expected if not 53:12 53 minutes, 12 seconds Q1 Q2 maybe we can hope Q2 max 2 max Q3 we will see uh in fact our NPA in the 53:20 53 minutes, 20 seconds agree book we have done some estimations calculations my agree NPA which is standing at 7.72% 53:29 53 minutes, 29 seconds with around 3,100 crores with this it'll come down to 237 quotes agree NPA will actually come down to 5.33%. 53:39 53 minutes, 39 seconds is what we are looking. We know we are aware that some part of this uh is also uh uh where we would have uh maybe done 53:48 53 minutes, 48 seconds some uh prudent uh write off also uh if that is whatever that portion it'll also 53:56 53 minutes, 56 seconds uh I'm able to take it to OP. So we don't see any major challenge around this uh debt waiverss rather this FI if 54:04 54 minutes, 4 seconds the state approvals are coming u uh not only us other banks also will get the benefit my calculation is 2,000 crores 54:13 54 minutes, 13 seconds is what we get to benefit out of debt waiverss second there is a component is that wherever prompt payments are made 54:21 54 minutes, 21 seconds by agriculturists uh during FI23 24 and 25 uh So they the government has also uh 54:31 54 minutes, 31 seconds indicated that an amount of 50,000 per uh borrower will be uh passed on as 54:38 54 minutes, 38 seconds a prompt payment incentive and this will not go to the loan accounts. This will be credited to their saving banks account. So we have even done that 54:47 54 minutes, 47 seconds calculations that I would get 775 crores of SB balance if this debt waver 54:54 54 minutes, 54 seconds has to come. So we don't see a major challenge. Whatever uh things would have happened I think uh the pain would have 55:04 55 minutes, 4 seconds been already seen. Now is the time where it is QT or Q2 or Q3 we may see that if 55:11 55 minutes, 11 seconds debt waiver is actually uh coming and sanctioned and uh the state is uh uh 55:20 55 minutes, 20 seconds passing the funds we will see these two positives happening in the bank. 55:27 55 minutes, 27 seconds Understood. And on the second question regarding you know if we see you know some stress building up uh in the second 55:35 55 minutes, 35 seconds half uh are are we in a position to price our loans uh better uh even if there's no rate action. 55:43 55 minutes, 43 seconds So I think uh uh uh banks are free to uh look at the pricing part and when we have been saying that we'll grow and 55:52 55 minutes, 52 seconds grow profitably. So if the risk underlying are there we always look at pricing the risk pricing the 56:02 56 minutes, 2 seconds uh accounts or pricing the facilities that we are uh extending uh uh carefully. So if there is a risk uh 56:10 56 minutes, 10 seconds enhance risk increase risk we we can uh we will take a suitable call and price the risk uh that we see uh coming to the 56:20 56 minutes, 20 seconds bank. So this is one part of it but as uh we initially I also mentioned uh one has to really wait and watch and see how 56:28 56 minutes, 28 seconds much and by when we see the impact of this West Asia crisis. Uh I think one 56:36 56 minutes, 36 seconds good thing if it can be happening is at least the uh uh the crisis uh find a 56:43 56 minutes, 43 seconds resolution and we end the crisis. So then we can uh actually see but we are very closely monitoring the likely 56:50 56 minutes, 50 seconds portfolio uh and uh any uh uh benefits or anything which is flowing from the 56:59 56 minutes, 59 seconds regulator dispensation or from the government. We we are fully committed to see that the benefits get passed on 57:06 57 minutes, 6 seconds seamlessly to the eligible category of borrowers or even the retail category. 57:13 57 minutes, 13 seconds If if so whatever is getting uh uh to announce we will follow that uh it happens seamlessly and that's how we 57:22 57 minutes, 22 seconds will also deisco cover ourselves in the process. 57:27 57 minutes, 27 seconds Sure thank you for answering my question. Thank you. 57:33 57 minutes, 33 seconds Thank you ladies and gentlemen. In order to ensure that the management is able to address 57:40 57 minutes, 40 seconds questions from all participant, we request you to please submit your question to two participant. The next question is from the line of Ashley 57:48 57 minutes, 48 seconds Shonj from KC Securities. Please go ahead. Good evening. Few people from my side. 57:57 57 minutes, 57 seconds I'm sorry to interrupt you Mr. Ash. We are unable to hear you. Your voice is breaking. 58:05 58 minutes, 5 seconds Can you hear now? Please go ahead. 58:08 58 minutes, 8 seconds Yeah, there are a few questions from my side. Firstly, if you can explain the movement of the net worth um because it seems like your net worth has declined 58:16 58 minutes, 16 seconds quarteron quarter by about 200 crores in spite of a profit of 2,000 crores for the quarter. That is one. Uh secondly, 58:25 58 minutes, 25 seconds your gold loan book has declined by some 70 odd%Q. So if you can explain that change. Uh thirdly, if you can share 58:33 58 minutes, 33 seconds what proportion of your MSME book is covered under the CGT MSA guarantee. Uh fourth one, if you can uh share a 58:42 58 minutes, 42 seconds segmental breakup of slippages. Yeah. Uh those were my questions. Thank you. 58:47 58 minutes, 47 seconds Yeah. Uh regarding the first question on networks. 58:51 58 minutes, 51 seconds Yeah. uh the uh if you see on quarter on quarter basis uh there is one movement 58:58 58 minutes, 58 seconds uh regarding uh the AFS reserve and uh second uh uh we the board has proposed 59:05 59 minutes, 5 seconds uh dividend uh uh at the uh the final dividend amount is around uh 12%. And 59:12 59 minutes, 12 seconds including the interim dividend of uh of 10%. So considering uh these two factors 59:19 59 minutes, 19 seconds uh the you see the uh decline in net worth on quarter on quarter wages. So what would what would be the dividend payment amount roughly? 59:30 59 minutes, 30 seconds Uh so the 22% comes to around 1,600 crores 1692. Okay. 59:39 59 minutes, 39 seconds So answering sir your uh second part uh sorry first I think you asked about the 59:46 59 minutes, 46 seconds decline in the gold. So gold uh uh I mentioned also is uh our focus category to grow this portfolio. Uh year on year 59:55 59 minutes, 55 seconds uh we have uh my gold loan book stands at 24,000 crores which has grown by 53%. 1:00:02 1 hour, 2 seconds uh some odd 5,000 cr is where we have gone for co- lending arrangements and we have signed up co- lending arrangements 1:00:10 1 hour, 10 seconds now with nine uh uh leading NBFCs all a rated and above and we we have done a 1:00:18 1 hour, 18 seconds sizable business in co-ending with gold NBFC's so the muts and the other two 1:00:26 1 hour, 26 seconds three companies where we have signed so what has happened is 1st January 2026 Six RBI has come up with fresh set of 1:00:34 1 hour, 34 seconds guidelines wherein the new model CLM1 was mandatory to be implemented. So we 1:00:42 1 hour, 42 seconds had almost exposure of 5,000 cr plus in co- lending with the three NBFC's and 1:00:49 1 hour, 49 seconds the portfolio is good yielding uh business to me and portfolio is doing 1:00:55 1 hour, 55 seconds really well but we did not do any fresh underwriting till the time we switched on from the CLM 2 to CLM1 model which 1:01:05 1 hour, 1 minute, 5 seconds needed some level of integrating my IT and developing first of all new underwriting uh mechanism with me and 1:01:15 1 hour, 1 minute, 15 seconds the NBFC and it took time with NBFC also. So now uh by almost uh uh I should 1:01:22 1 hour, 1 minute, 22 seconds say first week of March uh my portfolio uh because I I was getting huge collections on a daily basis but I had actually stopped uh fresh underwriting. 1:01:33 1 hour, 1 minute, 33 seconds So with first of uh first week of March the CLM1 model is implemented tested and 1:01:42 1 hour, 1 minute, 42 seconds it is working fine and I'm getting uh RBI guidelines are allowing 15 days portfolio to be shared under the CLM1 1:01:51 1 hour, 1 minute, 51 seconds arrangement and uh we are uh on a daily basis building this building this book 1:01:58 1 hour, 1 minute, 58 seconds to uh uh come back to the earlier levels uh market is there, the gold price and 1:02:06 1 hour, 2 minutes, 6 seconds uh our experience with co- lending partnerships has been extremely good. We are only happy to uh uh onboard more uh 1:02:15 1 hour, 2 minutes, 15 seconds gold NBFCs uh as and when uh uh I mean they are ready with the CLM1 model and 1:02:22 1 hour, 2 minutes, 22 seconds discussions are underway with uh getting more uh good rated NBFCs uh for this co-ending piece. 1:02:32 1 hour, 2 minutes, 32 seconds So that partly explains uh what what happened in the last quarter portion of MSRA and sir uh uh one last 1:02:42 1 hour, 2 minutes, 42 seconds of your query I got this figure sir CGTMSSE uh 9,800 crores is the portfolio which is backed by CGTMSSE guarantee. 1:02:53 1 hour, 2 minutes, 53 seconds Okay sir last one was on the segmental breakup of slippages for the quarter. 1:02:57 1 hour, 2 minutes, 57 seconds Thank you those who are on Yes. Yes. uh the data is there sir team is just they'll share this please go 1:03:04 1 hour, 3 minutes, 4 seconds so uh in retail uh there is around 100 crores in agree it is around 300 crores in MSME it is around 400 crores 1:03:24 1 hour, 3 minutes, 24 seconds will be audible to you March 26 uh fresh slippages sector wise was shared could to take down the numbers. 1:03:31 1 hour, 3 minutes, 31 seconds So I I noted retail 100 crores agree 300 MSM 400 crores. Yes. 1:03:37 1 hour, 3 minutes, 37 seconds Corporate side in corporate there is no uh sleep. Understood sir. Understood. 1:03:45 1 hour, 3 minutes, 45 seconds Perfect sir. Thank you very much for your detailed answers. 1:03:50 1 hour, 3 minutes, 50 seconds Thank you. Next question is from the line of PTRS from DSP. Please go ahead. 1:03:58 1 hour, 3 minutes, 58 seconds Hi uh good evening sir. Congratulations uh first of all on a great quarter to you and team. Uh so I had uh I was just 1:04:06 1 hour, 4 minutes, 6 seconds curious to understand your thoughts on uh M part uh M part of the RAM portfolio. So that has under the growth 1:04:15 1 hour, 4 minutes, 15 seconds is lower than the company's average. So what are your thoughts? The growth is around 10%. But and even within that uh 1:04:23 1 hour, 4 minutes, 23 seconds the growth in medium and uh small is actually lower and and declining. So 1:04:30 1 hour, 4 minutes, 30 seconds what are your thoughts uh on that? And the second question is on tax rate. It's not it wasn't clear to me. Uh you said it it averaged around 15 16% this year. 1:04:42 1 hour, 4 minutes, 42 seconds So what will that be? uh when you say 2% ROA target for next year what are you I mean what what is the team internally 1:04:51 1 hour, 4 minutes, 51 seconds building building it thank you yeah so Briti the ROA target uh for the 1:04:58 1 hour, 4 minutes, 58 seconds next year we have kept as uh 1.80 80 I just wanted to clarify that coming to MSME. Yeah. 1:05:05 1 hour, 5 minutes, 5 seconds Yes. Yes. One question. What is the tax rate that you're building in? Yeah. Okay. So, uh let me first take the MSME. 1:05:14 1 hour, 5 minutes, 14 seconds So, MSME micro book has grown small and medium and what we have done is uh uh like we did in the retail where we 1:05:22 1 hour, 5 minutes, 22 seconds experienced a high double digit uh growth uh in fact 24 25 and now even 1:05:28 1 hour, 5 minutes, 28 seconds crossing 30. So uh we we had last year uh introduced uh stringent underwriting 1:05:36 1 hour, 5 minutes, 36 seconds benchmarks. So we stopped funding to uh retail segment individual borrowers 1:05:43 1 hour, 5 minutes, 43 seconds where the credit score minimum 681 was not there. So there was no funding permitted in the bank and there's no 1:05:50 1 hour, 5 minutes, 50 seconds discretion to any authority to permit any funding. So uh likewise in MSME we 1:05:57 1 hour, 5 minutes, 57 seconds have strengthened the underwriting benchmarks and we want to see that in this good growth times uh can we have uh 1:06:06 1 hour, 6 minutes, 6 seconds some uh big ticket and uh secured and uh uh good rated portfolio that can come 1:06:14 1 hour, 6 minutes, 14 seconds and sit in our uh loan book. Uh so that was the attempt and uh that's when we initiated this we did uh come to market 1:06:24 1 hour, 6 minutes, 24 seconds and announce this that we are doing the rebalancing in both the books and uh uh simultaneously what we were attempting 1:06:32 1 hour, 6 minutes, 32 seconds that every level whether it's a branch or a uh uh CPC is what we call where the 1:06:39 1 hour, 6 minutes, 39 seconds underwriting on linked branches is happening in agree and MSME or a zonal uh level sanctioning committee or 1:06:47 1 hour, 6 minutes, 47 seconds corporate office. There are four committees GM headed, CGM headed, ED headed or MD headed and of course the 1:06:55 1 hour, 6 minutes, 55 seconds MC. So uh all these committees will see that they are sanctioning proposals so businesses to be properly scouted under 1:07:04 1 hour, 7 minutes, 4 seconds big ticket agree and MSME proposals where our sense was we will get uh securities and see that the quality 1:07:11 1 hour, 7 minutes, 11 seconds business is uh underwritten. So we uh temporary in the Q1 Q2 we did see a dip the Y growth went down to 3 4%. 1:07:22 1 hour, 7 minutes, 22 seconds But then uh after that the pickup has started to happen. We also had some exposures to uh uh treads uh and we 1:07:31 1 hour, 7 minutes, 31 seconds wanted to see that wherever treads has been allowed as a facility. Uh are we part of the consortium or are we having 1:07:40 1 hour, 7 minutes, 40 seconds other fundings uh facilities with them alone treads I we perceived it as a risk uh that we are not able to actually 1:07:48 1 hour, 7 minutes, 48 seconds monitor the accounts uh uh if we are doing alone threads. So a couple of these things were done. An idea was to 1:07:58 1 hour, 7 minutes, 58 seconds create to have a loan book which is a quality loan book where we have a proper control on uh uh what is sitting in the 1:08:07 1 hour, 8 minutes, 7 seconds loan book. So now it is almost 11% around 6,000 crores we have grown and we not stopping these two priorities and 1:08:16 1 hour, 8 minutes, 16 seconds contribution from across all levels in the bank to sanction good rated agree 1:08:23 1 hour, 8 minutes, 23 seconds big ticket investment credit uh kind of portfolios uh in agree and also in MSME will 1:08:30 1 hour, 8 minutes, 30 seconds continue to be there till the time we are able to go back to our original levels of 15 to 16% % growth in these 1:08:39 1 hour, 8 minutes, 39 seconds two segments and I'm just taking help of my CFO to uh repeat the answer for the tax part. Yeah 1:08:48 1 hour, 8 minutes, 48 seconds ma'am with regards to taxes so for uh on the OP it is 13 to 14 uh% tax is 1:08:55 1 hour, 8 minutes, 55 seconds effective tax rate is coming so we are getting the benefit of rural advances and other thing considering all these parameters so that is the normal tax 1:09:04 1 hour, 9 minutes, 4 seconds rate now we are in the last three quarters we are the normal tax paying and normal provision has been done so as 1:09:12 1 hour, 9 minutes, 12 seconds per the requirement so what should we build in for next here on PBT basis 1:09:20 1 hour, 9 minutes, 20 seconds not OP on PBT basis it is around same level because we are 1:09:27 1 hour, 9 minutes, 27 seconds the this year we are in the normals level so yeah 10% 10% 1:09:35 1 hour, 9 minutes, 35 seconds yeah on PPT basis uh madam roughly it will be around 18 to 20% basis 1:09:41 1 hour, 9 minutes, 41 seconds for next year right for 27 I Noted sir. Thank you so much. Thank you. 1:09:53 1 hour, 9 minutes, 53 seconds Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to Mr. Nidhu Sakenna for closing comments. 1:10:03 1 hour, 10 minutes, 3 seconds So uh uh I think uh there not much to add around this. Uh we have uh uh also 1:10:11 1 hour, 10 minutes, 11 seconds looked at upping our uh payout uh dividend payout. So uh 10 was the interim and 12 uh our board has 1:10:19 1 hour, 10 minutes, 19 seconds approved. So put together becomes 22. We also are growing fast and having a sanction pipeline. uh 72,000 crores of 1:10:29 1 hour, 10 minutes, 29 seconds sanctions have been uh granted in the last FI in the corporate book and we still have undispersed portion uh of 1:10:36 1 hour, 10 minutes, 36 seconds 34,500 crores and this will keep uh uh seeing the growth in the healthy growth that we are recording in the corporate 1:10:45 1 hour, 10 minutes, 45 seconds side uh going forward also and whatever numbers that we have shared and our emphasis on recovery and recovery 1:10:54 1 hour, 10 minutes, 54 seconds particularly also from the right of book. Uh our last two years experience has been good. So we will continue with 1:11:02 1 hour, 11 minutes, 2 seconds those efforts. We'll continue with those strategies which are playing out well for us and uh giving us the results uh 1:11:10 1 hour, 11 minutes, 10 seconds going forward and we are fully committed to see that whatever guidance we have shared today uh the team is meeting and 1:11:17 1 hour, 11 minutes, 17 seconds uh uh we will be closely uh watching all these 17 18 parameters on a quarterly basis and we'll keep coming to you with 1:11:26 1 hour, 11 minutes, 26 seconds uh whatever uh developments are happening within the bank in all these areas and I Thank all of you to have spare time today and joined the call. 1:11:36 1 hour, 11 minutes, 36 seconds Thank you so much. 1:11:39 1 hour, 11 minutes, 39 seconds Thank you ladies and gentlemen. On behalf of Bank of Maharashtra that concludes this conference. Thank you for joining us and you may now disconnect your lines.