Canara Bank Ltd — Q4 FY26

Canara Bank Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=iXFw6dxRgok Published: 2 days ago

0:00 So let's start. Good evening everyone. Please. 0:04 4 seconds Uh we welcome Canada banks Q4 FI26 earnings conference call. I would like to thank the Canada Bank management team 0:12 12 seconds for giving us the opportunity to host this call. From the management side we have with us Shri Hardep Singh Al 0:19 19 seconds Hanualia MD and CEO, Shri Bhavindra Kumar, executive director, Shri SK Majunar Sa executive director and Shri 0:28 28 seconds Sunil Kumaruk executive director. With this I now hand hand over the call to MD Sur for his opening remarks post which 0:35 35 seconds we will start the Q&A session. Thank you and over to you sir. 0:39 39 seconds Good evening to all. Let me first share the highlights of Kendra Bank results. 0:45 45 seconds So our global business stood at 28.0 lakh cr and it grew by 12.11%. 0:53 53 seconds Our global deposits grew by 9.71% and stood at 15.68 lakh crores. Our 1:00 1 minute global advances grew by 15.30% and stood at 12.37 lakh crores. Net 1:08 1 minute, 8 seconds interest income for the quarter was 9,88 crores. It grew by 3.88% 1:15 1 minute, 15 seconds y. Our operating profit for the full year is 33,19 crores and it grew by 5.19%. 1:26 1 minute, 26 seconds Our net profit for entire year was 19,187 crores and it grew by 12.69%. 1:34 1 minute, 34 seconds Our provision coverage ratio improved by 151 basis point and stood at 94.21%. 1:42 1 minute, 42 seconds Our credit cost it reduced by 33 basis point and stood at 0.59%. 1:49 1 minute, 49 seconds Our GNPA for the entire year there was a Y decline of 110 basis point and stood at 1.84%. 1:58 1 minute, 58 seconds Our net NPA there was a decline of 27 basis point year on year and stood at 43%. 2:06 2 minutes, 6 seconds We are proposing a dividend of 210% of paid up capital and our uh share price 2:14 2 minutes, 14 seconds is two. So the proposed dividend is 4 rupees 20 pesa per share. Our the credit 2:21 2 minutes, 21 seconds uh your advances growth was led by Ram credit. Uh the Ram credit grew by 19.73% 2:29 2 minutes, 29 seconds and stood at 7.3 lakh cr. Retail credit grew by 32.93% 2:37 2 minutes, 37 seconds and stood at 22.96 lakh cr. Housing loan grew by 17.55% 2:44 2 minutes, 44 seconds and stood at 1.24 lakh cr. Vehicle loan grew by 26.33% 2:50 2 minutes, 50 seconds and stood at 26,70 crores. MSME credit grew by 12.85% 2:58 2 minutes, 58 seconds and stood at 1.57 lakh crores. Our earnings per share improved by 12.68% and is at 21.15. 3:09 3 minutes, 9 seconds Our CR improved by 71 basis points and stood at 17.04%. 3:16 3 minutes, 16 seconds Our slippage ratio 12 month is 69 which declined by 21 basis point. So these are the all key highlights of our 3:25 3 minutes, 25 seconds performance. Uh joining me is Shri Bhavindar GI, Shri M Bajumar Sab, Shri Chuk Sabhab and all my vertical heads to 3:34 3 minutes, 34 seconds take all your queries and answers. Thank you. 3:41 3 minutes, 41 seconds Thank you. We will now start the question and answer session. 3:45 3 minutes, 45 seconds Participants who have a question, please raise your hand. 3:54 3 minutes, 54 seconds The first question is from the line of Mr. Ashoke Amera. Thank you and over to you sir. 4:03 4 minutes, 3 seconds Yeah good evening sir. Good evening Ajabalia. 4:09 4 minutes, 9 seconds Uh as far as the business is concerned the uh business growth is good. I mean especially if you look at the credit 4:15 4 minutes, 15 seconds growth you have grown in this quarter also by 3.79 or 80%. And overall for the whole year 15.30%. 4:25 4 minutes, 25 seconds Uh so on the business front there is no concern. I mean you are growing well much above the targets which you had given. Uh but sir however this there is 4:34 4 minutes, 34 seconds a pressure on the profitability in the bank. I mean both the operating profit and net profit has gone down. uh which 4:42 4 minutes, 42 seconds is generally not seen in the other PR four five banks of your size that the operating profit has gone down by 2361 4:51 4 minutes, 51 seconds cr as compared to the last quarter only where I can understand in which there must be some gain of that HBC Canada the 5:00 5 minutes treasury front but still the treasury income also has gone down even comparatively also if you net it out 5:06 5 minutes, 6 seconds from 1,50 cr to 272 crores and The recovery from the return of account also 5:13 5 minutes, 13 seconds which generally should be better in the in the March quarter has also gone down to 1646 cr against 251 crores in the 5:21 5 minutes, 21 seconds last quarter. So sir on the profitability front and and that has resulted in a much lower name than the 5:29 5 minutes, 29 seconds expected and the target also I think your quarterly name was 2.54 and the overall annual name is 2.51. 5:37 5 minutes, 37 seconds So uh on that I mean is there is there something something special which has 5:45 5 minutes, 45 seconds been which has resulted in this lower profitability in the bank and coming forward those issues may not be there. 5:52 5 minutes, 52 seconds Uh how do we see the now coming quarter and the coming year now in view of this results? 5:59 5 minutes, 59 seconds Uh Amir sir if you see that our NIM improved nine basis point. 6:04 6 minutes, 4 seconds No that is and our net income it improved 549 crores. If you compare our PR banks so 6:12 6 minutes, 12 seconds our NIM has improved our net interest income has improved only as rightly pointed why there is a drop in operating profit and net profit by 2,300 crores. 6:24 6 minutes, 24 seconds So sir last quarter we had listing gains from Kendra HSBC and Kendra Rebecc of 6:33 6 minutes, 33 seconds 1,930 kores. So that was substantial enough. 6:38 6 minutes, 38 seconds Secondly due to geopolitical situation the bond yields moved from 6.59 to 7.05 6:46 6 minutes, 46 seconds and the share market corrected by 4,000 basis point. So this has resulted into MTM losses of 800 K. 6:55 6 minutes, 55 seconds This may not be going ahead for the quarter. This may not be there in the June quarter. But uh the one-time 7:02 7 minutes, 2 seconds listing gap factored in in the last quarter of 1,930 crores 7:09 7 minutes, 9 seconds and regarding and regarding the TWW recovery generally our TWW recovery hovers around 1500 to 1600 K. If you see 7:18 7 minutes, 18 seconds last year for the full financial year the uh TWW recovery was 6,800 KES and in this financial year it is 6,500 Kores. 7:29 7 minutes, 29 seconds So there in the total TWW recovery the there is no substantial dip but only some high ticket resolutions come in a 7:38 7 minutes, 38 seconds particular quarter but uh normally it hovers around 1,500,600 kores per quarter. 7:47 7 minutes, 47 seconds Now sir, yeah point well taken sir. Uh even uh I had analyzed it that there was some uh additional profit in the last 7:55 7 minutes, 55 seconds quarter because of those two listing uh gains. But uh having said that sir now this uh two things have are clear now 8:03 8 minutes, 3 seconds the RBI has given the uh clear guidelines for the ECL. 8:08 8 minutes, 8 seconds So on that now uh as far as the provisions are concerned how much buffer provisions to take care of that or the 8:16 8 minutes, 16 seconds planned provisions which we already have in our books and how do we plan to meet uh now going forward the provisioning 8:24 8 minutes, 24 seconds norms as per the the final guidelines given by RBI. 8:31 8 minutes, 31 seconds Sir if you see that our SMA is best in the industry it is only 2.75%. 8:37 8 minutes, 37 seconds Yes. While the advances is growing up in absolute numbers our SMA is coming down 8:44 8 minutes, 44 seconds in the December 25 our SMA book was 35,000 Kores now it is 33,728 8:52 8 minutes, 52 seconds so although the advances is going up our SMA is coming down now coming to the ECL part now sir on ECL front 9:01 9 minutes, 1 second stage one and stage three both all at par with the norms our PC DCR is 94.20 9:10 9 minutes, 10 seconds for stage three it is adequate enough for stage one it is at par with IRC norms only at stage two we see that in 9:19 9 minutes, 19 seconds stage two the regulatory floor has been moved from 04 to 5%. So some additional provision will be required in and we 9:28 9 minutes, 28 seconds presume it will be 2500 crores and the probability of default in stage 1, stage 2 and stage three uh will be additional 9:37 9 minutes, 37 seconds 2,500 or maybe it may range up to 5,000 also and additional non-fund requirement will be 2,500. Total requirement will be 9:46 9 minutes, 46 seconds 10,000 and it can be staggered to four years and our profit is in the range of 9:52 9 minutes, 52 seconds 19,000 to 20,000 crores. So bank is in a very very good position to absorb the 10:00 10 minutes entire in the first go itself. If we absorb in the first go itself then there will be a drop of 1% in the CR. So the 10:09 10 minutes, 9 seconds and bank is adequately cap your capitalized. Our CR is 17.04 much above the regulatory level. 10:20 10 minutes, 20 seconds Yes sir. So you are well prepared for that. Uh sir now going forward uh uh the government has also announced uh because 10:29 10 minutes, 29 seconds you also referred that there is some geopolitical situation which is I mean which is building up now in the pressure in fact in the March the effect might 10:37 10 minutes, 37 seconds not have been seen uh because of the west this west war also but now I think you must have started feeling the heat 10:46 10 minutes, 46 seconds and government has equally you know being a proactive measure has announced ACLG 50 10:55 10 minutes, 55 seconds creating a lot of uh buffer I mean a two two and a half lakh cr rupees of the planned uh this thing so in our bank 11:02 11 minutes, 2 seconds have we calculated that how many customer I mean how much amount the customer can use through this this line 11:10 11 minutes, 10 seconds and uh how are we prepared for that and will it not add to our credit growth which we already planned 11:18 11 minutes, 18 seconds uh will it not give a philip to It sir this already 11:26 11 minutes, 26 seconds sir see this quarter our slippage was 2771 kores yes sir last year last year in the same quarter 11:35 11 minutes, 35 seconds it was in the March because we have to compare from the previous March only so 11:41 11 minutes, 41 seconds last year also the slippage was 272 this year it is 2,800 kores roughly so 11:49 11 minutes, 49 seconds it is in the similar levels. So in the March what happens sir some MOC's are because branch audit is 11:57 11 minutes, 57 seconds conducted across the country. So some MOC's are we should not compare from the December we have to compare from March 12:04 12 minutes, 4 seconds to March. So we don't see any stress building as on date because it is almost at par with the previous March and out 12:13 12 minutes, 13 seconds of this 2771 uh 1,333 is for MSME. So MSME some slippage has 12:22 12 minutes, 22 seconds been observed but not to that extent and for uh coming to your point that ECL 5 12:29 12 minutes, 29 seconds bank is already worked on that one and uh the entire portfolio that is affected 12:36 12 minutes, 36 seconds is about 90,000 Kores and the additional exposure will be around 18,000 to 20,000 12:44 12 minutes, 44 seconds K definitely it will give some flip to the advances So going forward sir uh there is no 12:54 12 minutes, 54 seconds concern according to you and not no concern has seen has been I mean is building up even in April May also uh because of that war situation. 13:04 13 minutes, 4 seconds No sir if you see our slippage ratio is 69%. And our SMA is 2.75. Both are 13:11 13 minutes, 11 seconds industry based actually. So as on date no concerns and going forward this EC 13:17 13 minutes, 17 seconds BCL 5 will definitely help the affected area. 13:22 13 minutes, 22 seconds All right sir thank you and all the best I will come back again. Okay thank you. 13:30 13 minutes, 30 seconds Thank you Ashok sir. The next question is from the line of Pam Subramanyam. Pam you unmuted please go ahead with your question. 13:39 13 minutes, 39 seconds Yeah hi sir thanks for taking my question. uh firstly on the advances growth guidance that you have given of 11 to 12%. So we have closed this year 13:47 13 minutes, 47 seconds with 15 plus so any reason we are calling for a moderation in the credit growth next year. 13:54 13 minutes, 54 seconds No sir actually bank has a tradition of giving some conservative numbers because GDP growth is projected at 6.9%. 14:02 14 minutes, 2 seconds And uh we have seen what earlier guidance has been given by us and accordingly it has been projected. I am confident that bank will end up much 14:11 14 minutes, 11 seconds above the guidance numbers as it ended up in this financial year. 14:16 14 minutes, 16 seconds Perfect sir, very useful. Uh so secondly on the uh PSLC uh so some of the private banks are you 14:24 14 minutes, 24 seconds know they are facing issues on their PSL compliance. Uh is do we would it be fair to assume our next year our PLC income 14:32 14 minutes, 32 seconds will be higher than this year or any comment you can give on that? So PSLC 14:38 14 minutes, 38 seconds sir continuously our PSLC income is around 2,500 KES we derive that income 14:47 14 minutes, 47 seconds and this year also we are confident that we will derive this PSLC income because we are above in priority sector credit 14:55 14 minutes, 55 seconds we we are exceeding all mandated norms so definitely we will gain advantage out of selling the PSL 15:03 15 minutes, 3 seconds so sir it should be similar to FI26 next Uh yes sir. Yes sir. Yes. 15:10 15 minutes, 10 seconds Okay. Okay. Okay sir. Sir and the comment you made on ECL uh I understood the one-time impact but on the run rate 15:18 15 minutes, 18 seconds impact of how much it can affect your say credit costs on a run rate basis if you could speak a bit about that uh say 15:25 15 minutes, 25 seconds from FI28 uh and and whether a bank can still sustain 1% plus ROA even after implementing ECL on a run rate. Our credit cost is continuously coming down. 15:38 15 minutes, 38 seconds That is because our SMA in absolute number is coming down. If you see that uh the SMA from 3% it has come down to 2.75%. 15:49 15 minutes, 49 seconds And uh so slippage will be hovering around this range only. Uh so we don't 15:55 15 minutes, 55 seconds see any threat in coming up even after implementation of ECL. You think you can maintain similar credit 16:02 16 minutes, 2 seconds cost guidance? Honor I I presume that we will maintain this. Okay sir. 16:09 16 minutes, 9 seconds Because our SMA SMA because our SMA levels have come down substantially. Yeah. Fair enough. 16:17 16 minutes, 17 seconds In December December in absolute terms it was the outstanding was 35,604. 16:23 16 minutes, 23 seconds This year it is 33,000. In March this is 33,728. So although my credit is growing at 15%. 16:31 16 minutes, 31 seconds And if you compare from last March, last March 25, my SMA book was 40,481. 16:38 16 minutes, 38 seconds Now it has come down to 33,728. 16:42 16 minutes, 42 seconds So I am confident that I'll be able to maintain this slippage numbers and credit cost. 16:50 16 minutes, 50 seconds Okay sir, sir, one last question. are on NIM. You have given your guidance but uh will you have passed through the entire 16:57 16 minutes, 57 seconds December rate cut and from here how do you expect margins to trend say from first quarter onwards because your 17:04 17 minutes, 4 seconds guidance is 2.5 to 2.6 on a say trajectory basis if you can yeah sir uh you see in this quarter our NIM 17:12 17 minutes, 12 seconds improvement was 9 basis point so already we are very very because our credit growth is very high at 15.30 30. So that 17:21 17 minutes, 21 seconds places us uniquely to negotiate on pricing. So we are not entertaining low yield advances. We are capitalizing on 17:30 17 minutes, 30 seconds expanding RAM credit and we are very very conscious on bulk deposits pricing of bulk deposits. So the combined effect 17:38 17 minutes, 38 seconds our NIM has taken a uptake of nine basis point on this quarter and one basis point cumulative. So we we presume that 17:47 17 minutes, 47 seconds it will around 2.5 to 2.6 60 very useful sir sir uh just your LCR number if you can share that's my last 17:55 17 minutes, 55 seconds question for this question so LCR LCR was 118% it is much above the regulatory level of 100%. 18:04 18 minutes, 4 seconds Okay sir, thank you so much and congrats on the question. Thank you sir. 18:11 18 minutes, 11 seconds Thank you Param. The next question is from the line of Jay Mundra. Jay, you're unmuted. You can go ahead with your question. 18:24 18 minutes, 24 seconds Hello. Can you hear me? Are you there? Yes. Mundra sir. Namaskar. 18:29 18 minutes, 29 seconds Namaste sir. Hi sir. A couple of questions sir. First just a clarification sir on gold loan how much 18:36 18 minutes, 36 seconds is the total gold loan outstanding in retail and non in agree and non-aggree 18:43 18 minutes, 43 seconds sir my gold loan portfolio is 2 lakh 45,000 kes okay and out of which agriculture is 1.454 54 18:52 18 minutes, 52 seconds lakh crores the remaining non-aggree is 91,000 right okay so uh um okay so that is good 19:02 19 minutes, 2 seconds uh so that has also grown right so last quart was I think 2.2 2 trillion it has now become 2.545 lakh cr right so the 19:09 19 minutes, 9 seconds good portfolio even on a Q basis is growing at a decent pace do you see any yeah sir so going ahead do you see that 19:18 19 minutes, 18 seconds now this is a 20% of the overall loans uh would you believe the growth here to be single digit or you believe it will 19:26 19 minutes, 26 seconds still be in double digit even though it moderates how is there any thoughts there sir it will be in double digit Because 19:34 19 minutes, 34 seconds traditionally our number of branches are high in south India sir here people don't place on deposits that is why we 19:43 19 minutes, 43 seconds are lacking on one side we are struggling on kasa but on asset side we have this advantage of gold loans people are more comfortable going to branches 19:52 19 minutes, 52 seconds availing this gold loan so that is why we are confident that it will grow with the same pace 19:59 19 minutes, 59 seconds all right okay sure sir and um sir on ECL uh Right. You mentioned uh that you 20:06 20 minutes, 6 seconds know SMA one I mean total SMA you have given but if you have the number separately for 0 1 and two uh I think 20:14 20 minutes, 14 seconds that will be useful if you have the number separately for 0 1 and 2 together. 20:20 20 minutes, 20 seconds SMA0 is 10,961 SMA 2 is 9,732 only. SMA 1 is 13,35. 20:30 20 minutes, 30 seconds So the total is 33,728. 20:34 20 minutes, 34 seconds Okay. So, SMA0 10,000 SMA 1 also around 11,000 and rest 13,000. SMA 1 13,000 right? Okay. 20:44 20 minutes, 44 seconds SMA zero is 11,000. 20:47 20 minutes, 47 seconds Right sir. And sir on your provisioning right so um and ECL and provisioning I think few banks they have said that they 20:56 20 minutes, 56 seconds want to raise capital uh maybe for ECL uh because asset quality across banks have been you know much strong and there 21:04 21 minutes, 4 seconds is a strong growth and regulatory capital also your thought process sir if if ECL like you mentioned 100 basis point impact which seems very moderate 21:13 21 minutes, 13 seconds uh even if because you also have five years any thoughts on capital raise or any need for that sir 21:21 21 minutes, 21 seconds sir our profit ranges between 19,000 to 20,000 kores in uh so this will continue 21:28 21 minutes, 28 seconds I think for the next year also so if the need be if need required we will go for 21:34 21 minutes, 34 seconds capital raising and since it the it has not moved to the board once board 21:41 21 minutes, 41 seconds permissions then I'll share it with you with I think within couple of months we will share that number with 21:48 21 minutes, 48 seconds Okay. Sure. And lastly sir, on your NIM question, right, you mentioned a stable NIM guidance going ahead. But sir, you 21:56 21 minutes, 56 seconds also raised TD rates in the month of December and January by around 3035 basis point, right? So how should one 22:04 22 minutes, 4 seconds look at cost of term deposit or cost of deposit on a blended basis? Do you think 22:11 22 minutes, 11 seconds that cost of deposit now has bottomed and even including Q1 FI27 this should 22:18 22 minutes, 18 seconds showing should start inching up or you think the blended cost will still uh decline. 22:26 22 minutes, 26 seconds Sir uh we are very conscious on pricing on uh bulk deposits and CD. So we work on the blended model only and we are 22:36 22 minutes, 36 seconds very conscious what is the rate of inflow and what is the rate of outgo. So that margins we keep always in mind 22:44 22 minutes, 44 seconds while quoting price that is how our nims have improved in this quarter. 22:51 22 minutes, 51 seconds No sir going ahead do you think because we raised not all banks have raised term deposit rates we did in December by 22:58 22 minutes, 58 seconds around 35 basis point. So I wanted to check sir has the cost of deposit bottomed out or you think because select 23:06 23 minutes, 6 seconds maturity only have raised interest rate but you may still gain on bulk or otherwise. So h how how to look at the 23:14 23 minutes, 14 seconds incremental sorry the blended cost of deposit. 23:18 23 minutes, 18 seconds Sir, why we had raised? Because our retail term deposit even after raising was much cheaper than the uh bulk 23:26 23 minutes, 26 seconds deposit rate and the idea behind to have a more flow in retail term deposit 23:33 23 minutes, 33 seconds rather than bulk deposit and that is what exactly has happened in the fourth quarter which benefited us and our cost 23:41 23 minutes, 41 seconds of deposit has substantially came down if you see. 23:45 23 minutes, 45 seconds Right. Right. Okay, that is that is why we you you can see the 23:52 23 minutes, 52 seconds fantastic impact on net interest income of 549 kores. Uh you can compare with PR banks ours is much better. 24:00 24 minutes Correct. Correct. No, no sir. Absolutely that is much better. Uh and sir I just wanted to check two things since you mentioned peer banks. If you have the 24:08 24 minutes, 8 seconds number of you know corporate loans or the overall loans which are linked to tables uh that is one and sir we have a 24:15 24 minutes, 15 seconds TWW recovery of around 6500 crores this quarter this year full as a as a full year if you have any number which goes 24:23 24 minutes, 23 seconds to NI line item out of this uh NPA recovery uh because that may or may not 24:30 24 minutes, 30 seconds uh grow as much as the loan growth right because the TWW recovery so three things one TWW recovery outlook number two TW 24:38 24 minutes, 38 seconds recovery that goes to NI line item and see the uh uh the T bill link corporate loans. Thank you. So uh sir uh the in 24:48 24 minutes, 48 seconds TWW your interest income on uh your TWW 24:54 24 minutes, 54 seconds advances so it ranges about 350 to 400 kores almost it contributes to every quarter this uh interest income is 25:03 25 minutes, 3 seconds contributed and we are confident going ahead it will continue sir okay and TWW recovery also it hovers around 25:12 25 minutes, 12 seconds 1,500 to 1600 kores in a quarter that may vary because of one big ticket resolution. If you see for the financial 25:19 25 minutes, 19 seconds year 25 it was 6,800 Kores and this year it is 6,500 crores almost at same level. 25:27 25 minutes, 27 seconds So it will continue. This will also continue. 25:31 25 minutes, 31 seconds Sure. Sure. All right sir. Send the T bill number if you have and we request you to come back to the queue for the remaining questions. 25:40 25 minutes, 40 seconds Thank you sir. 25:45 25 minutes, 45 seconds Uh the next question is from the line of Maruk Adajana. Maruk, your line is unmuted. You can proceed with your question. 25:55 25 minutes, 55 seconds Hello. Yeah. Good evening. Good evening, madam. Good evening, sir. Can you hear me? Yes. 26:02 26 minutes, 2 seconds Yes. Yes. 26:04 26 minutes, 4 seconds Sir, uh I had a question. uh if your cost of funding uh you know you're confident about your cost of funds and 26:12 26 minutes, 12 seconds the balance sheet is in a good shape then why is your loan growth guidance not as good as other banks uh because 26:20 26 minutes, 20 seconds other banks are giving a much higher guidance what is the constraint here 26:27 26 minutes, 27 seconds there is no constraint we see that GDP projection is at 6.9%. 26:34 26 minutes, 34 seconds So accordingly we project and we see last historically what we have given the guidance although although we have 26:41 26 minutes, 41 seconds surpassed these numbers and also we are confident that we will surpass it again. 26:46 26 minutes, 46 seconds So the basis has been this only the GDP growth projection and the past historically how much guidance we have 26:54 26 minutes, 54 seconds given in the last 3 years that forms the basis of uh giving the guidance. 27:02 27 minutes, 2 seconds Okay sir, got it. And sir, coming back to ECL, uh would you is there any way to find out what will be the run rate 27:10 27 minutes, 10 seconds impact? So on an ongoing basis every year, how much will ECL add to the credit cost? 27:19 27 minutes, 19 seconds So that we have not worked it out because it is a forward-looking uh uh 27:25 27 minutes, 25 seconds provision. So that probability of default of any loan for the next year. 27:31 27 minutes, 31 seconds So we have roped in a knowledge partner ENY and the system level implementation will take place uh in September. Roughly 27:41 27 minutes, 41 seconds we have calculated that the impact will be about 10,000 kores and looking at our profits we can absorb in one go but 27:49 27 minutes, 49 seconds there is a provision that we can absorb in four four years. So bank is very very comfortable on ECL front. 27:57 27 minutes, 57 seconds Okay sir. Thank you. Thank you sir. Thank you. 28:02 28 minutes, 2 seconds Thank you Maruk. The next question is from the line of Suraj Das. Suraj your line is unmuted. You can proceed with your question. 28:13 28 minutes, 13 seconds Yeah. Hi. Hi sir. Thanks for the opportunity. Two three question. First on the gold loan. While you highlighted that the retail gold loan is growing. It 28:21 28 minutes, 21 seconds seems like your agree gold loan is not growing for last uh 2 three four quarters almost. Last quarter it was 1.5 lakh cr. It seems like this quarter is 28:30 28 minutes, 30 seconds also 1.54 lakh cr and the beginning of the year I think it was 1.4 lakh cr. Any challenges there sir or it has to do 28:37 28 minutes, 37 seconds anything with the RBI revised guidelines or something like that. 28:41 28 minutes, 41 seconds So my colleague Bhavinder G will answer this. 28:46 28 minutes, 46 seconds No no actually our figure is 2.4 BL cr and uh it's not that we have not been growing in the last uh two or three quarters. 28:55 28 minutes, 55 seconds So with the uh uh after month of RBI direction so we are we have changed certain uh this no restricted uh uh 29:04 29 minutes, 4 seconds customers uh how how they can engage with the branches with uh the income numbers. So because of that little uh 29:13 29 minutes, 13 seconds slowness is there but not that we have consciously uh uh taken anything in that direction to to a stop. So nothing is 29:22 29 minutes, 22 seconds there because our retail portfolio is growing as it was growing earlier. So from April 1. 29:29 29 minutes, 29 seconds No sir my question is on the agree gold only on agreement it was 1.5 and in the beginning of the year it was 1.4. 29:39 29 minutes, 39 seconds Now shall I say if you see that whatever loss you are seeing in agree is 29:46 29 minutes, 46 seconds compensated in retail retail it is a deliberate uh attempt of the bank if you see in 29:54 29 minutes, 54 seconds other than rural that is semi urban and urban we are in rural also we are 30:01 30 minutes, 1 second growing at 14% that in these areas we are giving only retail so if you Overall you have to read both put together. Correct. 30:11 30 minutes, 11 seconds If you are seeing in one side agriculture is showing a slower growth but retail is to taking upon 30:20 30 minutes, 20 seconds it is it is both combined the growth remains constant. 30:25 30 minutes, 25 seconds So you you should not at isolation. It should look at combined portfolio in compliance with RBI guidelines. This is 30:34 30 minutes, 34 seconds mostly in compliance with RBI guidelines. We have uh devised this and gold loan portfolio is growing at 33 34%. Yes. 30:45 30 minutes, 45 seconds Of which the agri gold portfolio is growing at around 15%. 30:50 30 minutes, 50 seconds And we have to comply with all RBI guidelines also. So I I presume that it will go in the same manner. 30:58 30 minutes, 58 seconds Sure sir. I I'll probably reach out separately for any further clarification. That two last question. 31:03 31 minutes, 3 seconds One on the uh current account. I think the growth has been you know sharp negative number. Uh any reason for that? 31:12 31 minutes, 12 seconds There were four accounts which were having big big ticket four accounts. So I cannot name that. So that is causing 31:21 31 minutes, 21 seconds the variation in current account. Apart from that current account is growing at a healthy pace. 31:27 31 minutes, 27 seconds Sure. And the last question uh if you can give your stage one, two and three provision as per the non whatever you 31:34 31 minutes, 34 seconds are holding currently in absolute terms roughly rough ballpark figure will do. 31:40 31 minutes, 40 seconds So ECL you are talking about ECL provision right? 31:45 31 minutes, 45 seconds No I think you said opening commentary that stage one you are adequately provided stage two is where you need 31:52 31 minutes, 52 seconds some you know buffer provision and stage three also you are adequately provided. 31:55 31 minutes, 55 seconds So I just wanted to check the absolute number if it is readily available else I can reach out. 32:01 32 minutes, 1 second Absolute number can be shared only after the implementation of system that I can share only after the implementation roughly we have worked around 10,000 32:10 32 minutes, 10 seconds crores and we are making a profit of 19,000 to 20,000 Kes and this also can 32:17 32 minutes, 17 seconds be staggered for four years. So easily we can absorb entire in the first go itself. 32:23 32 minutes, 23 seconds Sure sir. Okay. What is your total standard provision number? 32:30 32 minutes, 30 seconds My standard provision numbers 475 4,500 4,500. Thank you so much. 32:36 32 minutes, 36 seconds And apart from that there are three big ticket accounts which are in SMA where where there's no need for uh provision 32:44 32 minutes, 44 seconds but we have made as a prudent banker we have made a provision of 1,890 crores in that. 32:52 32 minutes, 52 seconds Okay. Sure. That's all from my side. 32:55 32 minutes, 55 seconds Thank you Suraj. The next question is from the line of Gorav Cocher. Gorav, your line is unmuted. You can proceed with your question. 33:10 33 minutes, 10 seconds Gorab, are you there? 33:14 33 minutes, 14 seconds All right. So, hello. Am I audible? Hello. Yes, you're audible. Yes. 33:21 33 minutes, 21 seconds Yeah. Hi. Thank you. Thank you for the opportunity. So I have a couple of questions sir. Uh first is on the PSLC. 33:27 33 minutes, 27 seconds Uh sir if I look at the uh I'm just looking at the small and marginal farmer because I'm assuming that large part of our PSLC come from uh selling PSLC of 33:36 33 minutes, 36 seconds small and marginal farmer. So if I look at uh let's say this year the uh the excess that we have is about 2.5%. So we 33:44 33 minutes, 44 seconds did about 12.5% versus 10% uh which is required. If I look at if I look at the same number last year and last two last 33:51 33 minutes, 51 seconds year uh that number was much higher at 3.4% and 6%. So is it fair to assume that the surplus that you carry this 33:59 33 minutes, 59 seconds year is slightly lower than what you had last year? 34:04 34 minutes, 4 seconds No no no we have worked it out and uh this will be at the same level this year also. 34:12 34 minutes, 12 seconds Okay. Okay. So the PSLC income you expect to be similar as as last year 6,500 kores yearly 34:20 34 minutes, 20 seconds 6,000 6,5 okay got it uh 6,500 sir I think 2600 was the number this year 34:28 34 minutes, 28 seconds it is 3,000 it will be around 3,000 okay okay got it got it uh sir the second question is with respect to the recovery from returnoffs while you've 34:36 34 minutes, 36 seconds alluded to about 15 16 billion uh uh per quarter sort of a recovery but uh let's say in the immediate Jet quarter do you 34:43 34 minutes, 43 seconds expect any large uh large ticket account uh getting recovered? Uh so for let's say this Q1 FI27 you expect 156 billion run rate to continue. 34:51 34 minutes, 51 seconds No Q1 already we have one one big ticket part amount has been recovered. Okay. Okay. 34:56 34 minutes, 56 seconds Of 300. We are very confident that uh this number also we will be achieving this quarter. 35:03 35 minutes, 3 seconds Understood. Understood. Perfect. So that's that's all from my side. Thank you. 35:08 35 minutes, 8 seconds Thank you Gora. The next question is from the line of Ashes Sonj. Ashesh, your line is unmuted. You can proceed with your question. 35:18 35 minutes, 18 seconds Hi sir, good afternoon. Sir, first question is again on gold loans. Wanted to check if you have taken any increase in the pricing on either agree gold 35:28 35 minutes, 28 seconds loans or retail gold loans over the past uh 1 2 3 quarters. 35:34 35 minutes, 34 seconds So that increase in pricing is factored but we are very very conscious about LTV. We operate well within the LTV ratios prescribed by the regulator. 35:46 35 minutes, 46 seconds Okay. Sorry sir let me clarify. The question is about um the pricing of the interest rate on gold loans has that increased over the last few quarters? 35:55 35 minutes, 55 seconds Uh no no no no we have no we have not increased. I thought the price of and the LTV ratio we have kept maximum 36:04 36 minutes, 4 seconds at uh maxing on rate of interest not increased and LTV also we have kept in check 36:13 36 minutes, 13 seconds understood below would it be fair to say yeah sir and would it be fair to say that all the agree loans are largely 36:22 36 minutes, 22 seconds linked to MCLR and all the retail loans are largely linked to repo is that a fair understanding Yes. Yes. Yes. 36:30 36 minutes, 30 seconds And the average yield would be somewhere around 9% right on both the portfolios. 36:36 36 minutes, 36 seconds Yes. Near 9. Near near near 9%. 36:41 36 minutes, 41 seconds Understood. The second one um in the provision in the provision line in the P&L there is a negative provision in the 36:48 36 minutes, 48 seconds other provision line. Can you explain what that is coming from? Uh and thirdly if you can also share the segmental breakup of slippage for the quarter. 37:00 37 minutes So provision in the large borrower framework there is a release as per the RBI guidelines some 307 cr release is there because it is no more required. 37:11 37 minutes, 11 seconds So that is one of the fact but if I look at the number it is 37:18 37 minutes, 18 seconds earlier there was a 3% prescribed by the additional provision for large borrowers now now this has been dispensed by the 37:26 37 minutes, 26 seconds regulator so there is a release of 307 crores understood sir but the negative 37:34 37 minutes, 34 seconds provision is close to 870 crores uh that is why I wanted to ask 37:41 37 minutes, 41 seconds You see in standard accounts also in three big accounts we were maintaining additional provision their balances has 37:48 37 minutes, 48 seconds gone down. So that is why some some release is also there. 37:56 37 minutes, 56 seconds Understood sir and if you can also share the segmental breakup of slippages uh that would be good. Sir, just lastly one comment from you. Uh I understand that 38:04 38 minutes, 4 seconds there will be uh an as in we'll go through the ECL transition over the next few years but in spite of all of that 38:12 38 minutes, 12 seconds you believe the bank can deliver a 1% ROA. 38:16 38 minutes, 16 seconds So I I presume yes bank can deliver that although we have kept it at a conservative level bank can deliver that 38:25 38 minutes, 25 seconds is why we have given it uh our uh return on asset more than 1%. Understood sir. Perfect. Thank you. 38:34 38 minutes, 34 seconds Those were all the questions ahead. If you can also share the segmental slippages that would be helpful. 38:40 38 minutes, 40 seconds Segmental I can tell you 2771 is the total slippage that has happened in this quarter out of which 1,333 38:49 38 minutes, 49 seconds is for MSME. Agriculture is 886 corporate 80 gold loan 41 and retail sum 431 crores. 39:01 39 minutes, 1 second Understood sir. Thank you very much. Thank you. 39:06 39 minutes, 6 seconds Thank you Ash. The next question is from the line of part GKA. Par your line is unmuted. You can proceed with your question. 39:20 39 minutes, 20 seconds Are you there? Hello. Yeah. Hello. Can you hear me? Yeah. Yeah. Good evening. Uh thanks. 39:29 39 minutes, 29 seconds Yeah. Hi sir, good evening. Thanks a lot for the opportunity sir. Uh sir just uh you know in terms of RAM and corporate mix we have now uh you know reached 40 59% of RAM and around 41% of corporate. 39:41 39 minutes, 41 seconds So how far you know we can increase our uh RAM mix in the overall loan mix. 39:47 39 minutes, 47 seconds We endeavor to reach at 6040 59 RAM and 40 corporate. 39:54 39 minutes, 54 seconds Uh okay. Okay. and and uh within the RAM we will continue to grow the retail segment and you know because our agree 40:02 40 minutes, 2 seconds and MSME has been uh as a proportion of overall loan has been coming off over the last four quarters. Is that the right understanding sir? 40:10 40 minutes, 10 seconds Yes. Yes. Okay. Okay. Thanks a lot sir. 40:17 40 minutes, 17 seconds Thank you part. The next question is from the line of Susil Chi. Sushil sir you can proceed with your question. 40:26 40 minutes, 26 seconds Good evening. Congratulation to team Canada for a very stable result. Good evening. Good evening. 40:33 40 minutes, 33 seconds Good evening sir. Uh looking into FI27. 40:38 40 minutes, 38 seconds Can you tell me what is undisputed credit and how is the corporate pipeline looking when you are riding at 60 RAM 40 corporate because RAM will have a 40:46 40 minutes, 46 seconds adequate support coming from government for the new scheme. At the same time there would be demand whereas southern 40:53 40 minutes, 53 seconds India is seeing a robust demand where manufacturing GCC and many other sectors are likely to come up. So what is the outlook on corporate book? 41:04 41 minutes, 4 seconds So corporate demands are already NBG that is sanctioned by us. So we have to finalize the proposals that is lined up 41:12 41 minutes, 12 seconds at around 20,000 K. Another undisputed uh corporate is around roughly about 41:18 41 minutes, 18 seconds 20,000 crores and the ECL we expect that 18,000 to 20,000 to grow. So we will we 41:26 41 minutes, 26 seconds are we should make up the guidance number comfortably. 41:30 41 minutes, 30 seconds Sir in data center are we funding data centers with GPU or GPU? with GPU and sir how's the pipeline between power 41:39 41 minutes, 39 seconds sector and uh data center data center and power both we are financing sir 41:47 41 minutes, 47 seconds no no your financing I know how is the pipeline sir pipeline also we can share separately with you we can share that pipeline 41:56 41 minutes, 56 seconds sir how is right now I don't have breakup of the pipeline in this gross numbers I am having sir regarding these two. 42:08 42 minutes, 8 seconds So in view of now everything is getting digitized and initiative so many other new programs have been done at Canada. 42:18 42 minutes, 18 seconds How is the cross cell working? How many touch points from each wallet are we doing and what is the digital spend we are likely to do this year? 42:27 42 minutes, 27 seconds So we are very very conscious about the number of products we can offer to our 42:34 42 minutes, 34 seconds client. We already have 3,000 customer relationship managers very very active on that front. So we want to penetrate 42:43 42 minutes, 43 seconds the customer not only to the customer but to the family. Now this year these customer relationship officers will be 42:51 42 minutes, 51 seconds penetrating to the entire family and we have products for that. So we will try to have more and more wallet share uh 42:59 42 minutes, 59 seconds out of each individual sir. And regarding digital penetration sir we are growing at a very very handsome uh uh 43:07 43 minutes, 7 seconds growth. So for the the last year the number was 43:14 43 minutes, 14 seconds 1,24 kores digital transactions. Prior to that that was 940 kores. So good 43:21 43 minutes, 21 seconds impressive growth has been seen. Our mobile app is ranked number one in Google Play Store. So people people are 43:29 43 minutes, 29 seconds accustomed to our app and they are popularizing that. So digital transactions are improving sir. 43:36 43 minutes, 36 seconds So any update on mutual fund and insurance and the cannomes from your side not that complete outlook. 43:47 43 minutes, 47 seconds Okay. What is there any update on cano? 43:52 43 minutes, 52 seconds So they have their own uh individual board sir. they will be announcing that result separately. 43:58 43 minutes, 58 seconds No, no, no. I I understand that. I'm not saying that we are a stakeholder. Every now and then we talk about monetizing the stake. 44:06 44 minutes, 6 seconds At the same time, there are a lot of opportunities to combine further dilution. We don't foresee sir 44:14 44 minutes, 14 seconds already 14.5% in Canada HSBC and 13% in Rebecca. We have already done that and we have gained some 1,920 kores in the 44:23 44 minutes, 23 seconds previous quarter. Going ahead, we don't foresee any dilutions. 44:28 44 minutes, 28 seconds Thank you for answering all my question and good luck for the year sir. Thank you sir. Thank you Sushil. 44:37 44 minutes, 37 seconds Thank you Sushil sir. The next question is from the line of Mr. Manish. Manish your line is unmuted. You can proceed with your question. 44:50 44 minutes, 50 seconds Manish, are you there? 44:54 44 minutes, 54 seconds Okay. The next question is from the line of Digshit Doshi. Digshit, your line is unmuted. You can proceed with your question. 45:02 45 minutes, 2 seconds Uh yeah. Can you hear me? Yes. Dshit G, please go ahead. 45:07 45 minutes, 7 seconds Thank you. Uh thanks for the opportunity and congratulations for a decent performance, sir. Uh I have one question 45:14 45 minutes, 14 seconds is uh so now uh as you have mentioned that we are now 20% of our book is now 45:20 45 minutes, 20 seconds gold loan uh and uh recently we had some news of uh you know gold uh gold loan 45:28 45 minutes, 28 seconds fraud uh in April uh some media articles. So if you can just elaborate uh a bit that what we are uh doing to 45:37 45 minutes, 37 seconds you know uh check that what are the uh check we do uh so that these kind of frauds don't happen. 45:48 45 minutes, 48 seconds Sir, number of checks we have put in place, one is the entire portfolio of a quarter whatever we have dispersed that 45:56 45 minutes, 56 seconds gets re uh you know reappraised in the subsequent quarter and uh for high value 46:03 46 minutes, 3 seconds gold branches we have a plaza a dedicated officer dealing in gold loans. 46:09 46 minutes, 9 seconds Third is the security systems we have enhanced. So in uh where gold loans are more we have kept additional security 46:18 46 minutes, 18 seconds guard. So 24/7 for manning these branches. So uh and we have TLT safe 46:27 46 minutes, 27 seconds safe at all these places for safe upkeeping of gold. So number of checks and balances are there but one of 46:35 46 minutes, 35 seconds incidents keep on occurring but the NPA are very very minimal in gold loan. It's a very very productive product to us. 46:45 46 minutes, 45 seconds Okay. Okay. And that is and that is insured also. 46:49 46 minutes, 49 seconds Okay. No. So the question was uh more towards uh so there are two type of uh uh you know accident happens. One is that uh you know some theft uh happens. 47:00 47 minutes So that's a routine. So it does happen many uh to anyone. uh but the other thing uh which happens is if somebody 47:09 47 minutes, 9 seconds you know give a fake gold or something like that. So what we are doing to avoid that thing? 47:17 47 minutes, 17 seconds So we have panel appraisers in place. So every quarter the uh the same whatever gold loans we have done that will be 47:27 47 minutes, 27 seconds reappraised by a different valuer that will be sent by a regional office. 47:31 47 minutes, 31 seconds Okay. So uh regarding Pura's codes and all that will be immediately detected after reappraisal it it goes for reappraisal. 47:41 47 minutes, 41 seconds Okay. And uh any update you have uh on the from government uh side regarding 47:48 47 minutes, 48 seconds the full-time MD CEO. Uh so we are also waiting sir. 47:58 47 minutes, 58 seconds Okay. Okay. Okay. That's it from my Thank you. We take one last question 48:05 48 minutes, 5 seconds which is from the chat box. Can you explain why the yield on advances declined by only five basis points during the quarter in spite of the 25 basis point repo cut impact? 48:16 48 minutes, 16 seconds So uh 50% of our uh portfolio is repol linked and if you see in the December 48:23 48 minutes, 23 seconds there was a 25% uh reduction in repo rate that is why it has impacted by basis point it has come down 48:36 48 minutes, 36 seconds may I ask one question ma'am if you permit if the time permit. Yes sir. Yes sir. Yes. 48:40 48 minutes, 40 seconds Yeah. Yeah. Thank thank you ma'am. Uh sir when we look at our current run rate of operating profits uh uh excluding the 48:48 48 minutes, 48 seconds the provisions and the contingency part we we posted uh 6,757 48:55 48 minutes, 55 seconds as the precise number. So taking into account the current environment and and taking into account the rericing of 49:02 49 minutes, 2 seconds deposits also if you could just give us some color whether we can defend this operating profit number uh going ahead 49:10 49 minutes, 10 seconds because the other are more variable number depending upon the how the market dynamics plays out. 49:17 49 minutes, 17 seconds So we are very very confident that we will protect because this includes your MTM losses. So very soon some reversal 49:26 49 minutes, 26 seconds will be seen. Already it is showing in our books. So we are very confident that it will be protected going ahead. 49:36 49 minutes, 36 seconds Okay. And you mentioned that we will be the NIS trajectory will be 2.5 to 2.6 and the ROA will be in the trajectory of 49:44 49 minutes, 44 seconds 1 1%. This is what uh for the current year looks like. Yes sir. Yes sir. Yes sir. 49:50 49 minutes, 50 seconds And and the growth in business will be 11 to 12%. That is the advances part uh number you have given. 49:55 49 minutes, 55 seconds Yes. But we are confident of exceeding that. 49:59 49 minutes, 59 seconds So last year also if you see 10 to 11% guidance was given but we ended up at 15.30. 50:05 50 minutes, 5 seconds This year also although it is projected at 11 11 to 12%, we are confident that we will exceed. 50:12 50 minutes, 12 seconds Okay sir. And last point is sir what percentage of our deposits are uh floating rate are linked to the floating 50:20 50 minutes, 20 seconds rates. So they get repriced as soon as there is any change in uh change in the interest rate scenario and nothing is there. 50:31 50 minutes, 31 seconds Uh didn't get you sir in deposit nothing is there which is floating in nature. 50:38 50 minutes, 38 seconds Okay. Everything is fixed. Yeah. Not the demand there is two categories. 50:45 50 minutes, 45 seconds One is demand deposits and what is the term deposit? Term deposits are fixed for that particular tenor demands 50:53 50 minutes, 53 seconds can be withdrawn at the will savings and current. Correct. Correct sir. Right sir. Thank thank you for Yeah. 51:01 51 minutes, 1 second Thank you madam and thank you sir for answering and uh hope for further interaction going ahead. Thank you. All the best to the team. Thank you. 51:08 51 minutes, 8 seconds Thank you. There is one last quick question in the chat box. Uh please share the number on the stage two provisioning. 51:17 51 minutes, 17 seconds So it is yet to be implemented stage two pro uh provisioning once system level implementation takes place then we will 51:25 51 minutes, 25 seconds share this number okay 51:31 51 minutes, 31 seconds okay me asking just one question so firstly yes madam 51:39 51 minutes, 39 seconds while all the indicative parameters have been projected to grow do you mind going over why earnings per share and return 51:46 51 minutes, 46 seconds on equity is marked down from the present year numbers. 51:51 51 minutes, 51 seconds Yes madam. You see this year we had a gain of 1,920 kores from delisting listing benefits of 52:00 52 minutes KRA Rebecca and Kra HSBC where we diluted our share in Kendra HSBC 14.5% 52:06 52 minutes, 6 seconds in Kendra Rebecca 13%. So this 1,930 kores will not be there because it is a 52:14 52 minutes, 14 seconds one-time income. So next year it won't be there. That is why it has been kept at conservative level. All right. 52:22 52 minutes, 22 seconds It is we take that as the last question for the day. I now hand over the call to the management for uh closing remarks. 52:35 52 minutes, 35 seconds Thank you madam. uh all I can say that this year also what we have given the guidance numbers last year also apart 52:44 52 minutes, 44 seconds from two that is kasa and name uh so uh we could achieve all the out of 13 we could achieve 11 parameters next year 52:53 52 minutes, 53 seconds also we are very very confident whatever guidance has been given we will try to deliver these numbers thank you 53:03 53 minutes, 3 seconds thank you that concludes the call for the Thank