Canara Bank — Q3 FY26

CANBK Q3 25/26 Earnings Conference Call https://stockanalysis.com/quote/nse/CANBK/transcripts/377752-q3-25-26/ Published: sourced from public earnings transcript

Operator Good evening, everyone. Welcome to Canara Bank Q3 FY26 Earnings Conference Call. I would like to thank the Canara Bank management team for giving us this opportunity to hold the call. From the management side, we have with us Shri Hardeep Singh Ahluwalia, MD and CEO, Shri Bhavendra Kumar, Executive Director, Shri S. K. Majumdar, sir, Executive Director, and Shri Sunil Kumar Chugh, Executive Director. With this, I now hand over the call to MD, sir, for his opening remarks, post which we'll start the floor for the Q&A. Thank you, and over to you, sir. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Good evening to all of you. First, let me share the highlights of December quarter results. Our bank's global business stood at INR 2,710,000 crore, and it grew at 13.23% on a year-on-year basis. The global deposits stood at INR 1,521,000 crore and grew at 12.95% year-on-year basis. The global advances stood at INR 1,192,000 crore and grew at 13.59%. Operating profit stood at INR 9,119 crore and increased on year-on-year basis at 16.36%. The net profit stood at INR 5,155 crore and grew at 25.61% on year-on-year basis. The return on asset s improved by 9 basis points year-on-year basis and stood at 1.13%. The PCR on a year-on-year basis improved by 293 basis points and stood at 94.19%. Our credit cost was at 0.64% and improved by 25 basis points year-on-year. There was a GNPA decline of 126 basis points on year-on-year basis and stood at 2.08%. Our net NPA stood at 0.45% and declined by 44 basis points year-on-year basis. Now, our more than 13% credit growth is driven by RAM credit, which stood at INR 704,000 crore and grew at 18.70%. The retail credit grew at 31.37% and stood at INR 273,000 crore. The housing loan grew by 17.58% and stood at INR 121,000 crore. Vehicle loan also shown fantastic growth. The growth was 26.20% and stood at INR 25,098 crore. MSME has also shown robust growth of 13.74% and stood at INR 160,000 crore. The earnings per share was at INR 21.48 and improved by 22.11%. Our CET1 stood at 12.37%, which improved by 40 basis point year on year. Our slippage has shown enormous decline. It declined by 32 basis point year on year basis and stood at 0.64%. Now, coming to the guidance parameters. In the beginning of the year, we have given guidance numbers for 13 parameters, and we have easily surpassed and comfortably surpassed 11 parameters, except CASA and NIM, which is industry challenge. Now, I am joined. Along with me, Mr. Bhavendra Ji is there, who is a ED, Mr. Majumdar Ji is there, who is also CFO, ED, and Shri Sunil Chugh is also there, he is also ED. All my CGMs, vertical heads, are now ready to respond to all the questions. Thank you. Operator Thank you. We'll start the question and answer session. To participants, those who have any question, please raise your hand. We have first question from the line of Mahrukh Adajania . Please go ahead with your question. Mahrukh Adajania Senior Equity Research Analyst, India Financials Yeah, hi. Hello? Hello, sir. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Hello, madam. Mahrukh Adajania Senior Equity Research Analyst, India Financials Hello. So I had a couple of questions. Firstly, on your margins. So I appreciate that, you know, the repo rate was cut and there was pressure on margins. But from a strategic longer-term point of view, see, our margins are already slightly lower than peers, right? And people are ruling out a policy cut in the forthcoming policy, but, you know, these things are still evolving. Maybe, after one or two policies, there are rate cuts again. So given that our margins are already lower than peers, what are the steps we would take to bring them at least in line with peers? Is there a, like, a growth margin trade-off? Is there a level below which we will not want margins to fall, even if there are rate cuts, say, a quarter down the line or two quarters down the line? What is the absolute level of margins that you would be comfortable with at any point in time? Otherwise, we can slow down growth and improve margins a bit, you know, given that we have a traditional issue with CASA. So that's my first question. And my second question is on ECL. So what would be the broad impact of ECL, not the impact of one-time transition, but on an ongoing basis? So if ECL were already implemented today, what would your credit cost have been instead of what you have reported this quarter? So that's my second question, sir. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Okay. So, madam, now I respond to it. Regarding margins, our NIM contracted by 2 basis points because the yield on advances, because on 5th there was a reduction in repo by 25 basis points, and about 49% of our advance is repo-linked. So immediately, that transition was happening in those accounts. So yield on advances contracted by 6 basis points, although the cost of deposit also reduced by 4 basis points, which had a net impact on NIM of 2 basis points. So, going ahead, if you see, there is a strong drive in RAM sector. Our RAM is showing a growth of 18.70%, and it is led by retail, which is showing a 31.37% growth. MSME also, you see, is growing at 13.74%. On MSME, the yield on advance is 9.28%. In retail, it is 8.88%. So our strategy going ahead is to further capitalize, because if you see our guidance number on advances, our advances growth is more than 13.559%. So, to capitalize on this retail momentum that has been built. Now, coming to the CASA front also, if you see our savings bank is growing at 8.51%, and savings bank individual is growing more than 10%. So, we are performing better than the peers in savings. Even if you see the current account, it is growing at 14.92%. Only due to one single transaction that has happened previous quarter of INR 26,000 in current account, that is why Q-o-Q , some dip is there. But CASA growth is shown as 9.32%. So I think we are we will retain this margin with the same momentum going ahead in the CASA and RAM growth. So, even if further reduction in repo happens, we presume that our NIM will be in the range of 2.45%-2.50%. Coming to ECL, the other parameters, madam, it is going to be implemented from April 1, 2027. Now, our bank is making... Last year, it has made a profit of INR 17,000. This year, going by in the same trend, our profit will be in the range of INR 17,000-20,000. So, in the ECL, under stage two, because stage one and stage three does not have any much material impact because it is almost similar to IRAC norms. But in stage two, some impact will be there because the provisioning increases from 0.4%-5%. And there we see that 2,250 additional provision will be required, and for NFB also, non-fund limits, some 2,500 will be required. Coming to the default rate on stage one, additional provision of 5,000 may be required. So if I total that one, it will come around 10,000, and that can be amortized in four years. So the impact may come to 2,000-2,500. Going by the profit we are earning year on year, it is very much absorbable, and our CET1 is very strong. Mahrukh Adajania Senior Equity Research Analyst, India Financials Yes. Now, but, sir, the credit cost on a quarterly basis, will that figure change? This is the transition impact. INR 10,000 crore over four years is the transition impact on a run rate basis- Hardeep Singh Ahluwalia MD and CEO, Canara Bank Yeah, madam, I'll answer to it. If you see my slippage ratio, it is 0.64, which is the industry best, if you can compare with our peers. Our SMA in absolute numbers, it has come down from 46,000 to 35,000, and from 4.16%, our total SMA has come down to below 3%. So on both fronts, we are very, very comfortable to absorb this one. We don't see any furthest- Mahrukh Adajania Senior Equity Research Analyst, India Financials What will be your SMA below INR 5 crore, your total SMA, that is above and below? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Yeah, total SMA is INR 35,604 crore. Last year in December, it was INR 43,917 crore. So eight, even our advances has grown above 13%. Our SMA is on absolute numbers, it has come down from INR 43,917 crore to INR 35,604 crore. So that's a credible achievement, I tell you. And slippage also, it is in absolute control, and our slippage ratio is 0.64%, which you can compare with others. It is industry best. Mahrukh Adajania Senior Equity Research Analyst, India Financials Yes, sir. Got it. Sir, just one last thing. How much of deposits are left to reprice? A lot of deposit repricing has been done. How much of it is left in terms of term deposit repricing? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Only 15% is left for repricing. Mahrukh Adajania Senior Equity Research Analyst, India Financials Oh- Hardeep Singh Ahluwalia MD and CEO, Canara Bank If you see year-on-year, there is a 77% dip in the cost of deposit. Mahrukh Adajania Senior Equity Research Analyst, India Financials Right. Correct. ... Okay, sir. Thank you so much for the- Hardeep Singh Ahluwalia MD and CEO, Canara Bank On retail term deposit, I mean. Mahrukh Adajania Senior Equity Research Analyst, India Financials Yes, sir. Operator Thank you. We'll take the next question from the line of Anand Dama. Anand, your line have been unmuted. Please go ahead with your question. Anand Dama Head of BFSI Research, Emkay Global Financial Services Yeah, sir, thank you for the opportunity. My question was related to our PSLC fees, which has been pretty low as compared to what we saw in last quarter. Is it more of seasonality or you are strategically booking lower PSLC fees in this quarter? Or is it something to do with an RBI action where the PSL, some declassification has happened? If you can explain on that front. S. K. Majumdar Executive Director, Canara Bank Mr. Dama, if you have followed us, PSLC, we, it was only a product or earnings of the first quarter. For third, three consecutive years or two last consecutive years, we have only earned in the first quarter of INR 1,200 crore to INR 1,300 crore. And, this quarter, well, not only we have earned twelve, around INR 1,240 crore, we have earned INR 900 crore in the second quarter. Third quarter, actually, there is no chance for a PSLC. There also, we earned INR 140 crore, and I assure you we'll earn a substantial amount in the fourth quarter also. So it is the industry, if any regulatory thing has happened, it is only helping us. And it is helping us as a renewed, avenue of a sustainable, quarter on quarter, earning, which was not so till last year. You will see it is in the first quarter and last quarter, some amount we- Anand Dama Head of BFSI Research, Emkay Global Financial Services Yeah, yeah, right. S. K. Majumdar Executive Director, Canara Bank It is now a sustainable thing over three quarters. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Our total priority sector, against 40% now, norms is now at 45.25%. So there is still some space for offloading PSLC in the fourth quarter to supplement what Majumdar sir is saying. S. K. Majumdar Executive Director, Canara Bank Yes. Anand Dama Head of BFSI Research, Emkay Global Financial Services Sir, similar kind of fee income is what we should also build in for next year, if things remains same? S. K. Majumdar Executive Director, Canara Bank No, from PSLC perspective, we don't see much difference, unless the banks which purchase from us starts doing, change their portfolios. As of now, though, it should not... I mean, at least next year, there should not be any effect. Going forward, we can't say. Hardeep Singh Ahluwalia MD and CEO, Canara Bank There will be always surplus and efficient players of PSLC, and Canara Bank has that advantage. Anand Dama Head of BFSI Research, Emkay Global Financial Services Sure, sir. And, sir, what explains a quarter-on-quarter jump in our other OpEx? Is there any line item where we have seen some surge in the current quarter? S. K. Majumdar Executive Director, Canara Bank If you see the other operating expenses, there are two one-time items. One was IPO charges that Canara Robeco and Canara HSBC, that needs to be absorbed by the promoter, so there is around, for that, there is a fees of around INR 80 crore. Another INR 80 crore is of depreciation. That is for the employee benefit as a part of the furniture scheme. The furnitures for employees were replaceable every 10 years, which we have brought down as a extra facility for employees to five years. So to do that, we had to provide additional depreciation. It is one time. Hardeep Singh Ahluwalia MD and CEO, Canara Bank At par with industry. S. K. Majumdar Executive Director, Canara Bank Industry, most of the banks. So it is, so that around INR 160 crore, another INR 100 crore on technology-related, expenses were there. That is, AMC charges and though that on the ongoing CapEx that is happening, that has happened. So this is, more or less, around INR 250 crore, which, of, is of, additional, which, which is not of routine in nature. Anand Dama Head of BFSI Research, Emkay Global Financial Services Sure. And, sir, taking forward from Mark's question: so should we see a margin bottoming out if there is no further rate cut, or we should still see some contraction in the margins going forward? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Yes. Yes. S. K. Majumdar Executive Director, Canara Bank That is, yes. Hardeep Singh Ahluwalia MD and CEO, Canara Bank I see, with the OMO coming up and the swap being announced, the liquidity will be injected, and we see that cost of deposits further cooling down. So yes, we, if the rate cut doesn't happen, we see that it will stabilize. Anand Dama Head of BFSI Research, Emkay Global Financial Services Sure, sir. That's very helpful. Thanks a lot. Operator Thank you. We'll take the next question from the line of Piran Engineer. Please go ahead. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Sir, your question, sir? Not audible. Operator Please go ahead with your question. We'll move to the next question from the line of Parth Gupta. Please go ahead. Parth? As there is no response, we'll- Parth Gupta Research Analyst, Habitat India Yeah. Hi, sorry. So, sir, first question is, out of the total recoveries from the return of account, what went to the interest income line item? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Total rate of recovery, more than INR 2,000 crore it is, you know. Interest income? S. K. Majumdar Executive Director, Canara Bank Three seventy. Hardeep Singh Ahluwalia MD and CEO, Canara Bank 370. About INR 370 crore went to interest. S. K. Majumdar Executive Director, Canara Bank Interest. Parth Gupta Research Analyst, Habitat India Okay, sir. Fair enough. Thanks. My second question is, you have raised your, so within the term deposits, within the 1, 2, 3-year bucket, you have raised the deposit rates by 35 bps in January. ... and so should we expect, you know, that to flow into the cost of funds, say, by Q4 or Q1, and therefore the decline in the cost of funds will not be as much as what we are anticipating? Is that the right assessment? Hardeep Singh Ahluwalia MD and CEO, Canara Bank So, almost 15% is now replaceable, the term deposits. We see there is a steep decline, whatever we have raised last year. If that is getting replaced, we are getting some 77 basis points lower in the new deposits. Parth Gupta Research Analyst, Habitat India Okay. Okay, sir. Fair enough. Thanks a lot, sir. Operator Thank you. We'll take the next question from the line of Jai Mundra. Please go ahead with your question. Jai Mundra VP, Icici securities I-Sec Yeah. Hi, sir. Good afternoon, and congratulations on the quarter. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Thank you, sir. Jai Mundra VP, Icici securities I-Sec Sir, my first question is, sir, if you can bifurcate SMA zero, one, two separately out of INR 35,000 crore number. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Yes, sir. Jai Mundra VP, Icici securities I-Sec Have you started providing anything on SMA one, two, just for, you know, easier transition? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Sir, our SMA in absolute terms, it has come down from INR 43,000 crore to INR 35,604 crore. The SMA two has come down from INR 21,268 crore to INR 15,454 crore, and SMA one has come down from INR 11,882 crore to INR 10,593 crore. So, SMA two has come down from 2% to 1.30%. SMA one has come down from 1.13% to 0.89%. And, INR 1,946 crore, in three accounts we have done additional provision, as prudent banker outside the SMA purview. S. K. Majumdar Executive Director, Canara Bank No, if you see that SMA one increased due to shifting of only one account- Hardeep Singh Ahluwalia MD and CEO, Canara Bank One account, one account. S. K. Majumdar Executive Director, Canara Bank Kaleshwaram Irrigation Project, Hardeep Singh Ahluwalia MD and CEO, Canara Bank But that is INR 5 crore and our- S. K. Majumdar Executive Director, Canara Bank Yeah Hardeep Singh Ahluwalia MD and CEO, Canara Bank ... total, I am telling. S. K. Majumdar Executive Director, Canara Bank That is. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Total. S. K. Majumdar Executive Director, Canara Bank Uh, total- Hardeep Singh Ahluwalia MD and CEO, Canara Bank Because that gives a bigger picture. Our SMA has come down from 4.18% to 2.99%, and our slippage has come down to 0.64%. That is industry best. Jai Mundra VP, Icici securities I-Sec Correct. Hardeep Singh Ahluwalia MD and CEO, Canara Bank So, on both counts, our bank is doing extremely well on slippage also, and reduction of SMA also. Jai Mundra VP, Icici securities I-Sec Right. And out of this INR 15,000 and 10,000 crore of SMA 2, 1, sir, outside of this Kaleshwaram and some other large account, are we providing any rule-driven provisioning, or as of now, there is no rule-driven provisioning on SMA 1, 2? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Sir, as on date, the provision coverage ratio is 94.12%, and in these three accounts, we have provided INR 1,946 crore. The outstanding is INR 6,600 crore, although we don't see that it will slip, because continuously these are appearing in SMA. Jai Mundra VP, Icici securities I-Sec Right. Okay, sure. And secondly, sir, on your gold loan, if you can quantify, sir, how much is the agri gold loan and retail gold loan as on December? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Yes, sir. Jai Mundra VP, Icici securities I-Sec Is there any change in the way you classify retail or agri gold? Because there have been observation at other banks, you know, in this assessment by RBI or in general also. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Sir, our total gold loan portfolio, INR 221,000 crore. Out of that, agri gold is INR 148,000 crore, and nine, non-agri is INR 72,661 crore. So, very consciously, we, we have rolled back the products, of, gold loan in metropolitan and urban centers because that was the RBI observation, and now we are totally compliant to it, and our gold loan portfolio is, improving at, 30% on a, YOY basis. Jai Mundra VP, Icici securities I-Sec Right. Right. And, sir, there's, there's a lot of, I mean, strong jump in the retail, right? 30% plus. Is this a buyout thing, or this is totally organic growth? How should one look into this? Hardeep Singh Ahluwalia MD and CEO, Canara Bank This is totally organic. Sir, this is totally organic. Jai Mundra VP, Icici securities I-Sec No buyout in the retail side? Hardeep Singh Ahluwalia MD and CEO, Canara Bank No buyout, sir. No buyout. Totally organic. Jai Mundra VP, Icici securities I-Sec Okay. Sure, sir. Operator Thank you. You come back in the queue. We'll take the next question from the line of Ashok Ajmera. Please go ahead. Ashok Ajmera Chairman and Managing Director, Ajcon Global Services Good afternoon, sir. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Good. Ashok Ajmera Chairman and Managing Director, Ajcon Global Services Compliments to you, Ahluwalia, sir, and the entire team. Am I audible, sir? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Thank you, Mina, sir. Yes, audible. Ashok Ajmera Chairman and Managing Director, Ajcon Global Services I'm Ajmera, sir. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Ajmera, sir, Ajmera. Ashok Ajmera Chairman and Managing Director, Ajcon Global Services Yeah, yeah, yeah. How are you? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Ajmera, sir, namaskar. Ashok Ajmera Chairman and Managing Director, Ajcon Global Services Hope all is well. Yeah. Hardeep Singh Ahluwalia MD and CEO, Canara Bank All well. Ashok Ajmera Chairman and Managing Director, Ajcon Global Services So my compliments to you for the, I think, highest ever quarterly profit of INR 5,155 crore. I think the last time we touched INR 5,000 crore was in Q4 2025, if I am- Hardeep Singh Ahluwalia MD and CEO, Canara Bank Yes, sir. Ashok Ajmera Chairman and Managing Director, Ajcon Global Services Correct. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Yes, sir. Ashok Ajmera Chairman and Managing Director, Ajcon Global Services So my compliments to you and the entire team. Sir, my first question is on the credit growth target. In nine months itself, you already achieved around 11% of the credit growth, whereas your target for the overall whole year was 10%-11%. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Yes, sir. Ashok Ajmera Chairman and Managing Director, Ajcon Global Services So would you revise it now upward on this? Similarly, in case of opposite side, in case of deposit, the target is 9%-10%, but we could achieve in nine months only 6.39%. So little divergence there. So would you maintain your target on the credit the same, or you will increase by, say, 2%-3% up? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Sir, coming to the first point regarding comments on profit. Sir, this net profit we have made despite increase in provision ratio by 293 basis points. So despite making huge PCR, and still we have maintained the net profit and recorded the highest net profit. Regarding credit growth, sir, you have told, we have given a guidance of 10%-11%, but already we are crossing 13.59%, and we see that going ahead, this will be maintained. And in the deposit side also, we have given a guidance of 9%-10%. We are already near 13%, and we see that it will be maintained in the fourth quarter also. Ashok Ajmera Chairman and Managing Director, Ajcon Global Services Yeah. No, there were some disturbances, but anyway, I could hear you properly. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Okay. Ashok Ajmera Chairman and Managing Director, Ajcon Global Services Sir, in fact, one of the major contributor of the profit in this quarter was treasury income also, which is almost doubled from the last quarter, to INR 3,056 crore now, and profit on sale of investment is INR 2,590 crore out of that. So going forward, whether the treasury will continue to contribute so much in the profit for the last quarter of this FY 2026, or we might it, see it slowing down and maybe the income on the other, the net interest side, the income is higher, and this is how we'll be able to maintain the 5,000+ quarterly profit? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Sir, in the Q3 due to listing profits of Canara Robeco and Canara HSBC. In Canara HSBC, we offloaded 14.5% stake, and in Canara Robeco, we offloaded 13% stake and could gain INR 2,006 crore. Ashok Ajmera Chairman and Managing Director, Ajcon Global Services Okay. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Going ahead, if the yields soften, then definitely, this will be maintained. But at the moment, the yields are not cooling. Suppose the more OMO operations takes place, and with the buy/sell swap, if liquidity flows and cost of deposits come down and, the yields soften, then definitely treasury will take a upturn. Ashok Ajmera Chairman and Managing Director, Ajcon Global Services Sir, as regard the NBFC portfolio, I know that the Canara Bank is always, you know, not very optimistic and encouraging the co-lending part and other things, but of late, is there any change in that stance on the NBFC side and co-lending side? And what is our present exposure to the entire NBFC sector, the loans given to NBFC for onward lending, sir? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Sir, the NBFC exposure is at INR 151,000, and it is growing at 6.09%. We are open to NBFC lending, provided the rates are compare good. Ashok Ajmera Chairman and Managing Director, Ajcon Global Services Mm-hmm. Hardeep Singh Ahluwalia MD and CEO, Canara Bank So normally, the double A, triple A-rated NBFCs, when they approach us, and but the rates are not competitive, then we are shying away for that, because protection of NIM is also our major criteria. And while we are growing at more than 13.59%, we don't see any reason to entertain low-yielding advances. So it- Ashok Ajmera Chairman and Managing Director, Ajcon Global Services No, point well taken, sir. Point well taken. Sir, in the recovery in the return of account is good in this quarter of INR 2,051 crore. What is our total write-off written-off book, and do we expect to maintain the same momentum of recovery from the written-off accounts? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Sir, if you see last three to four quarters, continuously, our recovery in write-off has been consistent, and that will continue, sir. Ashok Ajmera Chairman and Managing Director, Ajcon Global Services What is the total written-off book, sir, size? Hardeep Singh Ahluwalia MD and CEO, Canara Bank 60, INR 64,000. INR 66,000 crore. Ashok Ajmera Chairman and Managing Director, Ajcon Global Services INR 66,000 crore. So are we going in the range of some 7%-8% kind of recovery from this book for the whole, whole year? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Sir, we have taken a conscious call that, it, it has to be more than INR 2,000 crore range, and we are, we are continuously trying to achieve that numbers. If you see, last December also, it was INR 2,008 crore. This year, INR 2,051 crore. Although the, my total NPA book is falling, but we are trying to maintain this recovery ratio. Ashok Ajmera Chairman and Managing Director, Ajcon Global Services Sir, any ballpark, any calculation have been done, like one of the other bank is also doing, on the underwriting standards, like, over the last five years, you know, post-COVID, how much amount of the loan has been sanctioned and disbursed, and what is the NPA ratio out of this new underwriting of this last five years? Is there any, any such, which will give the color to the present underwriting standards and, how the bank is going forward? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Sir, already, if you see, our underwriting standards has improved, and our slippage ratio is now industry best at 0.64%. That, that can all, is a reflection of good underwriting standards already prevailing with Canara Bank. And your SMA also has drastically come down from 4.16% to below 3%. So, definitely, underwriting has played a very, very important role in that. Ashok Ajmera Chairman and Managing Director, Ajcon Global Services Good, sir. Thank you very much, and all the very best. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Thank you, sir. Ashok Ajmera Chairman and Managing Director, Ajcon Global Services To you and everyone sitting there. Thank you. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Thank you very much, sir. Thank you, sir. Operator Thank you. We will take the next question from the line of Bhavik Shah. Please go ahead. Bhavik Shah Director, PwC India Hello. Hi, sir. Thanks for the opportunity. Sir, what would be your average LCR for the quarter? It was around 150% last quarter. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Our LCR is 125%. Bhavik Shah Director, PwC India 125. Sir, fair to assume that borrowings increase in the quarter approximately of INR 60,000 crore was like back-ended, and also wanted to understand at what yield and what instruments were these? S. K. Majumdar Executive Director, Canara Bank Please repeat your question, Bhavik. Bhavik Shah Director, PwC India Hi, sir. Sir, our borrowings increased by INR 55,000 crore-INR 57,000 crore this quarter, quarter-over-quarter. It was INR 90,000 crore, and it is INR 150,000 crore now. I just wanted to understand what instruments were there and at what cost have they come in? S. K. Majumdar Executive Director, Canara Bank No, if whatever borrowings have increased, it is on two fronts. One is we have raised Tier 1 bonds this quarter, and we, there was refinancing from NABARD and SIDBI of our existing loans. Yeah, these are, this is- Hardeep Singh Ahluwalia MD and CEO, Canara Bank Excess, excess SLR. S. K. Majumdar Executive Director, Canara Bank These are the only borrowings that we had in this quarter, and a part of this borrow, that is, Tier 1 bond, is replacement of old also. That may be- Bhavik Shah Director, PwC India Okay. S. K. Majumdar Executive Director, Canara Bank The net increase is only INR 600 crore-INR 700 crore as far as Tier 1 bond is concerned. So it cannot be, and the rest is mainly SIDBI and NABARD refinancing at a lower rate. Hardeep Singh Ahluwalia MD and CEO, Canara Bank What sir is asking is borrowing increase. S. K. Majumdar Executive Director, Canara Bank That is part of the borrowing only. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Our SLR is 24% and, the prescribed is 18%. We have excess SLR of 6%, and whenever the opportunity comes, we borrow and take that advantage. Bhavik Shah Director, PwC India Understood, sir. Okay, sir. And sir, would you be comfortable to share the refinance cost of these, NABARD and SIDBI? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Refinance cost of? S. K. Majumdar Executive Director, Canara Bank 5%. it is around 5%. Bhavik Shah Director, PwC India Okay, okay. Sir, last thing, sir. Standard asset provisioning, last quarter was also INR 300 crore. This quarter is also around INR 286 crore. Sir, anything specific to read here? S. K. Majumdar Executive Director, Canara Bank Standard asset provision, one is we had to provide for DCCO extension, that some provision of around INR 80 crore is there, around INR 90 crore is there. Bhavik Shah Director, PwC India Okay. S. K. Majumdar Executive Director, Canara Bank Other than that, I think these are of a routine nature. There is nothing else. Bhavik Shah Director, PwC India Understood, sir. Understood, sir. Thank you so much. S. K. Majumdar Executive Director, Canara Bank Thank you. Bhavik Shah Director, PwC India Thanks so much, sir. Operator Thank you. We will take the next question from the line of Param Subramanian. Please go ahead. Param Subramanian Equity Research Analyst, Investec Yeah. Thanks for taking my question. So I, I wanted to ask on the recovery from written-off account, that was INR 2,050 crore in this quarter. Is there some mix between retail and corporate? Were there any chunky accounts that you've seen, or is there a retail granular mix now? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Actually, in this written-off recoveries of INR 2,051 crore, there are four major accounts. One is Chenani- Nashri, we have received INR 288 crore. Karanja Terminal, INR 271 crore. So that is the... But few, few bigger accounts will always materialize. Param Subramanian Equity Research Analyst, Investec Got it, sir. Sir, but would there be a reasonable chunk of retail recoveries also in this- Hardeep Singh Ahluwalia MD and CEO, Canara Bank Sir, not probably. S. K. Majumdar Executive Director, Canara Bank Yes, you are, that is around 50/50, retail and this. Param Subramanian Equity Research Analyst, Investec Retail and corporate. And even for the nine months, it will be like that, sir? S. K. Majumdar Executive Director, Canara Bank That is retail recovery in Q2. That is, that is around INR 1,000 crore per quarter. Param Subramanian Equity Research Analyst, Investec 1,000 crore per quarter you are getting retail recovery? S. K. Majumdar Executive Director, Canara Bank That is... Yes, from retail recovery in 2 is around on an average. Param Subramanian Equity Research Analyst, Investec Okay. S. K. Majumdar Executive Director, Canara Bank It may, in some quarter, it may be more, some quarter it may be less. On an average, around INR 1,000 crore, INR 900 crore-INR 1,000 crore. Param Subramanian Equity Research Analyst, Investec Okay, okay. Very useful. Thanks a lot. Operator Thank you. We will take the next question from the line of Ashlesh Sonje. Please go ahead with your question. Ashlesh Sonje VP, Kotak Securities Good afternoon. Two, three questions from my side. Firstly, on the margin front, do you see any room to cut your term deposit rates or hike your loan pricing, let's say, on housing, in order to boost your margins from here on? That is one. Secondly- Hardeep Singh Ahluwalia MD and CEO, Canara Bank We are continuously... See, we are continuously studying the market, and our term deposit is pricing according to the prevailing market conditions. Ashlesh Sonje VP, Kotak Securities Got it. And on the home loans, you think you can increase the pricing there, potentially? Hardeep Singh Ahluwalia MD and CEO, Canara Bank It is repo -linked and prevailing market conditions. Ashlesh Sonje VP, Kotak Securities Understood. Hardeep Singh Ahluwalia MD and CEO, Canara Bank So. Ashlesh Sonje VP, Kotak Securities Secondly, the borrowings... Yeah, sorry, sir. S. K. Majumdar Executive Director, Canara Bank No, carry on, carry on, carry on. Ashlesh Sonje VP, Kotak Securities The borrowings which have gone up, how much further can they go up from here? And I heard your explanation on what is causing it, but how much further can it go up from here? S. K. Majumdar Executive Director, Canara Bank I mean, we feel we are already at an optimum level. Borrowing is always as a product and we don't want to increase it. We borrow just to leverage our cost. Just to see, that is, as sir said, a major chunk is overnight. That also to, that with excess SLR, that we do to, to neutralize the cost. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Take opportunities in the market. S. K. Majumdar Executive Director, Canara Bank Market. So, I don't see that going up much. That is at an optimum level. Ashlesh Sonje VP, Kotak Securities ... Got it, sir. And lastly, the bad loan recoveries have been quite good for the last couple of years, both from the return of accounts as well as from NPAs. What is the outlook you have for FY 2027? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Sir, it will continue because the recovery tools in market today, we have NCLT options, we have DRT options, SARFAESI options, your local Lok Adalats being regularly conducted. We have aggressive OTS schemes. So we don't see any shortfall coming. So that has-- We have been consciously maintaining that. And recovery actions are prescribed as per the accounts. Ashlesh Sonje VP, Kotak Securities So similar run rate as this year is possible? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Yeah, sir, it will continue. Ashlesh Sonje VP, Kotak Securities Thank you, sir. Those were all the questions I had. Operator Thank you. We'll take the next question from the line of Piran Engineer. Please go ahead. Piran, please go ahead with your question. As there is no response, we will take the next question from the line of Akshay Badlani. Please go ahead. Akshay Badlani Institutional Equity Research Analyst, HDFC Securities Yeah, hi. Thank you for taking my question. Firstly, wanted to ask around, so we got this INR 2,000 crore of one-off profit. Have we utilized that to make any contingent buffers, and what would our current contingent buffer be? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Sir, in three accounts, we are maintaining INR 1,956 crore as abundant precaution, although we would don't foresee any slippage in this account, but as prudent banker, we have done so. And whatever regulatory provisions are coming up, like for DCCO extension and all, we are making that adequate provisions for that. S. K. Majumdar Executive Director, Canara Bank Also, you see our provision coverage is going up every quarter. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Yeah, yeah, yeah. S. K. Majumdar Executive Director, Canara Bank It is, as you said, we are still, I mean, when you compare us with our, with our peers- Hardeep Singh Ahluwalia MD and CEO, Canara Bank Yes. S. K. Majumdar Executive Director, Canara Bank We are a shade below them. So we also want to be in that space of our peers as far as provision coverage is concerned. And as sir said, in standard asset, wherever there are some weaknesses, we are proactively making provisions within the regulatory framework. Akshay Badlani Institutional Equity Research Analyst, HDFC Securities Understood. Understood. And, my second question was around, you know, current account balances. There has been overall a lot of fluctuations when I see on a quarter-to-quarter basis. So and overall, on our deposit strategy, I wanted to understand, you know, what are we trying to do in order to improve the deposit franchise, since it's, you know, relatively weaker when we compare it to the peers? Yeah. Thank you. Hardeep Singh Ahluwalia MD and CEO, Canara Bank This current account fluctuation is due to one account. In September quarter, we have got some INR 26,000 crore deposit in that account. If we subtract from the prevailing this one, the September, this thing, then from 49,000, it has grown to 54,000. So in current account also, we have seen 15% roughly growth. In saving also, we have seen a growth of 8.51%, and within saving, actually, individual is more than 10%. So we are performing quite well in that CASA space. It is growing at a rate of 9.32%. Akshay Badlani Institutional Equity Research Analyst, HDFC Securities Sure. Thank you. Thank you for answering my question. Operator Thank you. The next question is from the line of Jayant Kharote. Please go ahead. Jayant Kharote Executive Director, Axis Capital Thank you for the opportunity, sir. First question is, there's a strong growth in retail at 31% YOY. I see vehicle is growing at 26%. If you could also tell us which are 1 or 2 top products outside vehicles that are growing in that book. Also, if you could help us with your average yield on vehicle book as well as some of the other products, ex-housing. I believe you spelled out your average yield on retail book is 8.83%. What would it be on vehicle and some other fast-growing products? Hardeep Singh Ahluwalia MD and CEO, Canara Bank In retail, sir, our yield is 8.79%. So that comprises of the total retail portfolio of housing clubbed with your vehicle loan and other retail products. Jayant Kharote Executive Director, Axis Capital Sir, what would be the yield on vehicle? Hardeep Singh Ahluwalia MD and CEO, Canara Bank In RAM, in RAM sector, it is 8.88%. Jayant Kharote Executive Director, Axis Capital What is the yield on vehicle book? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Uh, sir? Jayant Kharote Executive Director, Axis Capital What is the yield on our vehicle book? S. K. Majumdar Executive Director, Canara Bank It should be, it should be above 8.5. It's around 8.5. Jayant Kharote Executive Director, Axis Capital Okay. Sir, what are the other products, ex of vehicle and housing, that are growing rapidly in retail? S. K. Majumdar Executive Director, Canara Bank No, no, in that is around INR 70,000 or 74,000-75,000 crore is gold loan portfolio in which is growing at a jet speed, more than 30%. Jayant Kharote Executive Director, Axis Capital What would be our yield there, sir? S. K. Majumdar Executive Director, Canara Bank There, it is around 8.8. It is around 9, a little below 9. Jayant Kharote Executive Director, Axis Capital You are confident of this 8.79 holding up and, and expanding next year as well? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Yes. S. K. Majumdar Executive Director, Canara Bank Absolutely, yes. That portfolio will grow at this speed. Jayant Kharote Executive Director, Axis Capital Great. Great. Congratulations, then, and all the best. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Thank you, sir. Thank you. Operator Thank you. The next question is from the line of Gaurav Jani. Please go ahead with your question. Gaurav Jani VP and Financials Equity Research Analyst, Prabhudas Lilladher Yeah, thank you for taking my question. The first is, despite a strong retail growth, sir, why is our margin down sequentially by 5 basis points? And while our LDR has also gone up. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Sir, margins are low because the CASA is not growing to the level. It is growing at 9.32%... and our average, your CASA is 30%. That is, I think on a lower side, although our endeavor is still to improve that, and it is improving also, but not to that levels. S. K. Majumdar Executive Director, Canara Bank No, I'll add to this. Your question is why it got reduced. You must agree with us that whenever there is a policy rate cut, that has to be passed on to RLLR-linked loan immediately, and 49% of the portfolio is RLLR-linked, whereas deposit repricing takes minimum six months, six months to one year. That is, to answer your question, that is the reason for reduction, and that is the main reason for the compression that you see, and I think that will continue till that rate cut stabilizes. To some extent, that challenge will continue for, I suppose, lenders like us. Gaurav Jani VP and Financials Equity Research Analyst, Prabhudas Lilladher Sure. Sir, my last question is, you know, how are you looking at deposit growth, right? So, you know, how do we kind of plan to ramp this up to you know, meet our guidance on loan growth? Hardeep Singh Ahluwalia MD and CEO, Canara Bank See, our deposit is growing at 12.95% against the guidance given, 9%-10%. So going ahead also, we will continue with the same performance for the last quarter also. Gaurav Jani VP and Financials Equity Research Analyst, Prabhudas Lilladher Just a bookkeeping one. There is a restatement in deposits for September. Anything to read into it, and, you know, what has been reclassified? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Sir, there was a RBI observation that overseas branches, that deposits taken from bank were taken as, were earlier considered as borrowings. Now, we- S. K. Majumdar Executive Director, Canara Bank Deposits. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Earlier, they were considered as deposits, now we have reclassified as borrowings. So, and subsequently, we have changed in other, other, sir, previous quarters also, that effect has been changed. Gaurav Jani VP and Financials Equity Research Analyst, Prabhudas Lilladher Sure, sir. Hardeep Singh Ahluwalia MD and CEO, Canara Bank 33,000 reclassification has been done. S. K. Majumdar Executive Director, Canara Bank Reduced. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Has been reduced, and it ranges from INR 23,000 from December 2024 in subsequent quarters. Accordingly, in the December, 33,000 has been reduced. Gaurav Jani VP and Financials Equity Research Analyst, Prabhudas Lilladher Understood. Thank you so much. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Thank you. Operator Thank you. There is a question in the chat box: What is the breakup of the fresh slippages during the quarter? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Yes, sir. In agriculture, it is, total slippage is, INR 1,857 crore. 789 is from agriculture sector, 739 is from MSME, retail, 294, and 35 is from gold. No corporate account has slipped. Operator Thank you, sir. The next question is from the line of Sushil Choksey. Please go ahead. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Sir. Sushil Choksey Managing Director, Indus Equity Advisors Sir, congratulations to Team Canara for excellent performance. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Thank you, sir. Thank you, Choksey, sir. Sushil Choksey Managing Director, Indus Equity Advisors Majority of my questions are answered, sir. I have typical same questions from every. What is our digital spend? Because we are focusing on ramp and enhancing our business. What is our cost for human resource, which we are going to incur for enabling technology as well as new initiatives? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Sir, our staff cost is now stabilizing as INR 4,900 crore, and efforts are being taken to continuously upskill our staff. So, there we have our definite expenditure, and we see that entire staff goes undertaking the undergo training. Last year also, entire staff underwent training as per their KRAs, so that their performance improves. Sushil Choksey Managing Director, Indus Equity Advisors Sir, are we spending on enhancing the current management as well as top management and other staff members' capability? Because tomorrow, AI will be there, many other technology initiatives, new product initiatives. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Yes, sir. Sushil Choksey Managing Director, Indus Equity Advisors What is the digital spend for all these initiatives and additional incentive and other focus costs? This is your regular staff expense. I'm saying- Hardeep Singh Ahluwalia MD and CEO, Canara Bank Yes, sir Sushil Choksey Managing Director, Indus Equity Advisors ... over and above what you do there. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Sir, sir, we are conscious that what our future workforce will look alike. So accordingly, we have recruited data scientists, your Python engineers and all, so for AI capabilities and all. So our vertical has been created separately for AI, which is working on identification of use cases that can be implemented in the bank. So already under fraud prevention and default prediction, AI is implemented to some extent. So you will see more and more uses, use cases coming up. And further also, we will enhance the capabilities of our employees and under training. Sushil Choksey Managing Director, Indus Equity Advisors Yes, sir. So- Hardeep Singh Ahluwalia MD and CEO, Canara Bank Yeah. There are a lot of products, sir, we have introduced. One is our Business Analytics has now been nominated to be adopted across industry. We have a dedicated Business Analytics team, so that works for lead generation within the system. Sushil Choksey Managing Director, Indus Equity Advisors Secondly, your total digital spend for the year, the budget for the total spend, which you are going to do in digital, and what is your future outlook on that? S. K. Majumdar Executive Director, Canara Bank Huge... Hardeep Singh Ahluwalia MD and CEO, Canara Bank Around INR 1,000 crore we are spending, sir, annually- Sushil Choksey Managing Director, Indus Equity Advisors Annually Hardeep Singh Ahluwalia MD and CEO, Canara Bank ... on digital initiative. S. K. Majumdar Executive Director, Canara Bank For last three years, sir, we have been spending around INR 1,000 crore, between INR 800 crore-INR 1,000 crore every year. I think this year also, I mean, it is, we should be able to reap the benefits now. I think now it is the time to reap the benefit, but AMC charges and all will go up. But as sir said, AI related, we have established a department where we need both from people side and technology side, some investment will go going forward. Sushil Choksey Managing Director, Indus Equity Advisors Sir, as we are, we have three other listed companies under our fold, in the cross-selling of business as well as for touch points, how are we benefiting? If we are able to succeed, how many products are we selling to our existing customers? Sunil Kumar Chugh Executive Director, Canara Bank No, no, for our Canara Robeco and Canara HSBC, including the Can Fin Homes, so two of our subsidiaries now. So we are getting substantial benefit out of this. So insurance company, in the previous NFO, what we have launched, so against the target of 500, we have reaped some INR 6,050 crore in fifteen days, the room, what was given to the, this, no? So we are valuing this subsidiary, and we are enhancing the value for the customers by cross-selling. So the, whether it is the Canara Robeco, SIPs, or mutual fund selling, or it is the insurance what we are selling through our branches, 10,066 branches, so we are getting substantial benefit out of these two subsidiaries by cross-selling in a large scale. Our company is also benefited, and we are earning close to INR 500 crore income out of the subsidiaries by selling their products. Sushil Choksey Managing Director, Indus Equity Advisors Sir, INR 500 crore is income, but do you mean to say that majority of our CASA customers are taking two products from us, three products from us? Let's say I have a- Sunil Kumar Chugh Executive Director, Canara Bank Yes Sushil Choksey Managing Director, Indus Equity Advisors ... CASA account. Is the car loan coming to you? Is it- Sunil Kumar Chugh Executive Director, Canara Bank Yes, yes, yes. Yes, sir. Yes, sir. Yes. Sir, that, that is what I wanted to say. So apart from car loan and housing loan, we are also selling credit card. We are selling the other product, the, the demat account we are selling to them. We are giving so much of benefit by way of this engaging with them, sir. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Sir, we have a Business Analytics wing, and that is responsible for creation of leads. So they have certain machine learning models and they scrub the data, and accordingly, they suggest a person, how many products we can sell to him. So whenever a customer approaches the counter, so they have this opportunity, the how many products, what other products can be sold to this customer. So leads are generating from our customer relationship models, and leads generating through our own machine learning models adopt. So that conversion rate is also very high. That is why you are seeing that our credit growth in RAM sector is 13.5%. Sushil Choksey Managing Director, Indus Equity Advisors Sir, my last question in this round is, sir, the market is favoring PSU banks over in all other sectors, including private banks. We are showing healthy profits. We may not for a nominal growth, which we are doing, we may not need equity. But if the market is rewarding, in the past, we had capitalized ourselves by doing QIPs ahead of time. Do we plan something in this quarter or coming time, or we look into it at a future date? Hardeep Singh Ahluwalia MD and CEO, Canara Bank QIP, I don't think QIP is now lined up, apart from- S. K. Majumdar Executive Director, Canara Bank I, Choksey Ji, as you know, and you have seen that my capital adequacy is already at 16.5%. We are adding around 17-20 thousand profit per annum. So there is no, I mean, as of now, we are adequately capitalized to do business, to have a double-digit growth going forward for next couple of years. And, if, as and when, if any- Hardeep Singh Ahluwalia MD and CEO, Canara Bank Right S. K. Majumdar Executive Director, Canara Bank ... moment it is required, I don't see a challenge raising it. But in the immediate future, I don't think bank will require that. Sushil Choksey Managing Director, Indus Equity Advisors Basically, self-reliance is going to work in your growth machine. That's it, your summation. S. K. Majumdar Executive Director, Canara Bank Exactly, sir. Strongly, it should work in a- Hardeep Singh Ahluwalia MD and CEO, Canara Bank Sir, right now, on business growth front, on profitability front, capital adequacy front, asset quality front, bank is doing extremely good in all parameters. Sushil Choksey Managing Director, Indus Equity Advisors Sir, congratulations and best wishes for the years to come. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Thank you, Choksey, sir. Thank you. Sunil Kumar Chugh Executive Director, Canara Bank Thank you. Operator The next question is from Chetan Wadia. Please go ahead. Chetan Wadia Analyst, JHP Securities Yeah, can you hear me? Can you hear me, sir? Sunil Kumar Chugh Executive Director, Canara Bank Yes, sir. Chetan Wadia Analyst, JHP Securities Yeah, I only one question, one, in terms of your growth in advances, if I read in the current list, you are saying advising 13% growth in your credit growth for the next year. Which are the five areas of top five areas of growth that you see for yourself, and what are the yields on those advances? Hardeep Singh Ahluwalia MD and CEO, Canara Bank Sir, RAM sector is the strength, which is growing at 18.70%, and where the yield is also 8.88%. Under MSME also, if you see, we are growing at 13.74%, and the yield on such advances is 9.28%. And gold is also growing at 30%, where the yield is around 9%. And apart from that, we are generating income through PSLCs, so the surplus priority sector that we have. So these are strength areas of the bank and the return of recoveries also. Chetan Wadia Analyst, JHP Securities ... Okay, now my second- Hardeep Singh Ahluwalia MD and CEO, Canara Bank So, that we will continue, sir. Chetan Wadia Analyst, JHP Securities Sure. Noted. And my second and, second to the last question is that, you said the NIM range would be around 2.45%-2.5%, as you said in the beginning. Any, any scope for improvement over there over the next one or two years? Is there any such, deliberation internally happening to make it a 2.6%-2.7% range? S. K. Majumdar Executive Director, Canara Bank Sir, definitely, yes, that will happen as the rate cycle effect settle down. Because now there is always a time lag on passing on the RLLR-based loans and the deposit repricing. Once that stabilizes, automatically, 15-20 basis points will immediately rise across lenders. So we should be no exception. It should be more, in fact. Chetan Wadia Analyst, JHP Securities All right. Noted. Thank you very much. All the best to you. S. K. Majumdar Executive Director, Canara Bank Thank you, sir. Operator We will take the last question from the line of Ankit. Please go ahead. Speaker 18 Hello? Yes, sir. Sir, my question is on ECL, sir. Sir, are you doing any ECL provisions, or what is the total number of ECL provisions from first April 2027 that you will be doing? S. K. Majumdar Executive Director, Canara Bank I-- You, it- Speaker 18 It is applicable from- S. K. Majumdar Executive Director, Canara Bank It is as our MD said, it will be less than five-digit, the number. And it is, as you know, if one side, it is less than five-digit number, it has one more year to get implemented. In a year, we will add minimum between INR 17,000-20,000 crore of profit. Then my provision coverage will be all-time high of over 95%. So the requirement of ECL by the time it gets implemented will further come down from that five-digit figure to a much lower figure. And even if we implement, as we said in the past, my CRAR and CET1 will get affected by only a percentage point. That means even then, my CRAR will be at above 15, and CET1 will be above 12, above 11. But this is if we implement in one go. But as we understand, RBI has allowed it to be spread across four years, so it has got almost no effect on, we will be able to maintain. ECL differently will have no impact, sir. The, the provision release that has happened or, in, on, not provision release, it is, the release of funds that has happened on account of, this, CRR, cut over during September and November. That itself has cushioned all that, sir. I think, there is no effect on this. Across banks, I don't see if there will be much effect. Speaker 18 Okay, sir, I got your point, but your peer bank are doing the ECL provisions like PNB has done. I'm just asking, are you doing any ECL provisions in these quarters, or you are doing just, you know, one go? S. K. Majumdar Executive Director, Canara Bank Sir, we feel we don't need to do any preemptive provision before that. That will come from, my quarterly profits will be sufficient at any point in time to absorb that without hindering business growth and capital position. Speaker 18 Okay. Thank you, sir. Thank you. Operator Thank you. That was the last question for the day. I hand over the call to the MD, sir, for his closing remarks. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Sir, I have already said that it is a strong numbers, be it business growth, be it asset quality, be it profitability, operating profit, net profit, and capital adequacy. I don't see any reason that this growth will not continue. It will, it will continue in the last quarter also. So thank you, sir. Operator Thank you. That concludes Canara Bank conference call. Hardeep Singh Ahluwalia MD and CEO, Canara Bank Thank you. Powered by