Central Bank of India — Q4 FY26

Central Bank of India Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=zzQYLedWbbQ Published: 13 days ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the Central Bank of India Q4 SI26 conference call hosted by Systematic Shares and Stock Limited. 0:13 13 seconds This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions and expectations of the company 0:21 21 seconds as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertaintities that are difficult to predict. 0:32 32 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:41 41 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:48 48 seconds your touchtone phone. Please note that this conference is being recorded. 0:53 53 seconds And now Hanuk Mr. Siddhhat Raj Murohi from systematics. Thank you and over to you sir. 1:00 1 minute Thank you Ikra. Uh good evening everyone and uh welcome uh uh to our to central 1:07 1 minute, 7 seconds bank of India's Q4 FI26 uh conference call. Uh from the management today we 1:14 1 minute, 14 seconds have Shri Kalyan Kumar MD and CEO. Shri Mahendra Dhar ED, Shri E. Ratan Kumar ED 1:25 1 minute, 25 seconds and Shri Mul Dandigay CFO. We are uh very grateful to the management for giving us this opportunity to host their 1:33 1 minute, 33 seconds poster conference call. I uh now hand over uh the call to the management for their opening remarks post which we will 1:42 1 minute, 42 seconds open the floor for uh Q&A session. Thank you. Over to you sir. 1:47 1 minute, 47 seconds Yeah. Thanks a lot. Good evening all the investors connected uh here and my colleagues present uh in this boardroom. 1:57 1 minute, 57 seconds First of all, please accept my earliest congratulations for the financial result of Central Bank of India as of financial year uh 26. 2:09 2 minutes, 9 seconds In the in my initial remark I want to mention that total business of central bank of India grew by 15.60%. 2:19 2 minutes, 19 seconds And risk to 8 lakh 12,439 cr and uh s deposit also increased by 2:27 2 minutes, 27 seconds 13.38% to 4 lak 67,923 cr. Kasa deposit also stands at 47.30% 2:37 2 minutes, 37 seconds of total deposit. Major highlight our saving bank has grown in double digit 10.05% 2:44 2 minutes, 44 seconds and crossed two lakh cr first time and uh gross advances increased by 18.76% to 2:51 2 minutes, 51 seconds 3 lakh 44,516 crd ratio has improved to 73.80 2:59 2 minutes, 59 seconds gross NPA it is stood at 2.67% 67% with an improvement of 51 basis point year on 3:06 3 minutes, 6 seconds year. Net NPA is stood at 49% it is an improvement of six basis point coverage ratio is also at 95.97%. 3:18 3 minutes, 18 seconds Operating profit for this financial year increased by 4.37% to rupes 8,479 3:26 3 minutes, 26 seconds crores. Net profit for the financial year has increased by 15% to rups 8,479 3:34 3 minutes, 34 seconds crores and net profit uh net interest margin stood at 3.07% 07% which is a 3:42 3 minutes, 42 seconds marginal decline and here I want to mention as per the new finance bill bank has taken a one-time impact of rupees 3:51 3 minutes, 51 seconds 632 cr due to recognition of deferred tax asset at the rate of 25% as against 3:58 3 minutes, 58 seconds 34 35%. And that's why measure ratio got impacted due to above cited action. It 4:05 4 minutes, 5 seconds is again I at the cost of reputation. It is one-time impact. Net profit uh has 4:12 4 minutes, 12 seconds been impacted and ROA also got down to 56 from 0 91 for the quarter 4 as of 4:19 4 minutes, 19 seconds previous year and return on equity also down to 8.43% from 13.40% for Q4 of 4:27 4 minutes, 27 seconds previous financial year. EPS down to 80% from 1.19% for Q4 of previous financial 4:35 4 minutes, 35 seconds year. Similarly for yearon-year basis also ROA uh though yearon year there is 4:41 4 minutes, 41 seconds improvement despite taking hit of 6 time impact of 632 cr improved to89% from86%. 4:50 4 minutes, 50 seconds Return on equity also improved to 13% from 12.48%. Cost of income ratio uh it is at 58.61%. 5:00 5 minutes Slipage ratio we were able to contain it at 1.16%. 5:04 5 minutes, 4 seconds There is improvement of 29 basis point and CR improved to 17.91% out of which tire one is 15.61%. 5:15 5 minutes, 15 seconds If we talk about quarterto quartarter net profit decreased to 724 cr as against year-on-year basis 1,34 cr and 5:25 5 minutes, 25 seconds this is also due to one-time impact of 632 cr as I discussed earlier. 5:32 5 minutes, 32 seconds Operating profit also has shown a growth of 17.74% on yearon basis to rups 296 cr 5:41 5 minutes, 41 seconds and net interest income grew by 17.74% on yearon-year basis to 42 cr in Q4 5:48 5 minutes, 48 seconds financial year 26 total income for Q4 financial year 26 improved by 4.63% 63% 5:56 5 minutes, 56 seconds from 10,333 cr for Q4 financial year 25 to 10,811 6:03 6 minutes, 3 seconds K for Q4 financial year 26 for profitability for year ended March 6:10 6 minutes, 10 seconds 26 net profit increased by 15.43% 43% to 4,369 6:17 6 minutes, 17 seconds cr on yearon-year basis. Operating profit has shown a growth of 4.37% to 6:23 6 minutes, 23 seconds 8,479 cr on year-on-year basis. Net interest income grew by 197% to 14,171 6:32 6 minutes, 32 seconds cr on yearon-year basis as against 13,897 cr for previous year. ROA 6:40 6 minutes, 40 seconds improved to 89% from 86% ROE improved to 13%. And uh regarding asset quality also 6:49 6 minutes, 49 seconds if I can tell you before that I would like to highlight uh business per employee it has improved to rupees 23.89 6:58 6 minutes, 58 seconds 89 cr as against 21.31 cr. There is improvement here also and our RAM main 7:05 7 minutes, 5 seconds growth engine retail agriculture and theme grew by 21%. The individual sector wise growth retail has grown by 25.67% 7:15 7 minutes, 15 seconds and central bank of India has crossed one lakh cr also 1 lakh 3,533 cr and 7:22 7 minutes, 22 seconds agriculture has grown by 17.60% 60% that is 61,687 and MSME has grown by 17.06% that is 7:32 7 minutes, 32 seconds 69,351 cr similarly there is improvement of 51 basis point in gross NPA and we have 7:39 7 minutes, 39 seconds closed at 2.67% as of 31 1st March 26 net NPA there is improvement of six basis point from previous year to 49%. 7:50 7 minutes, 50 seconds PCR also stood at approximately 96%. 7:55 7 minutes, 55 seconds CR as I discussed it is 17.91 and what to mention tire one is 15.61%. 8:02 8 minutes, 2 seconds And in that way we have very good capital uh capital base and uh uh we 8:09 8 minutes, 9 seconds have declared dividend also final dividend is at the rate of 12% rupees 120 per equity share. It is proposed for 8:18 8 minutes, 18 seconds the year 2526 and it includes all the interim dividend declared and paid at the rate 2% quarterly for previous uh 8:27 8 minutes, 27 seconds three quarters. These were uh brief about our actually financial result uh with all the support of our stakeholders 8:35 8 minutes, 35 seconds and team. So that was the in brief I highlighted our financial result as of 8:42 8 minutes, 42 seconds 31st March 26. Now over to you Also, can we open the floor for question and answer? 8:51 8 minutes, 51 seconds Yes, please. 8:55 8 minutes, 55 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star N1 on their touchstone telephone. 9:05 9 minutes, 5 seconds If you wish to remove yourself from the question queue, you may press star N2. 9:11 9 minutes, 11 seconds Participants are requested to use handset while asking a question. 9:15 9 minutes, 15 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 9:44 9 minutes, 44 seconds The first question is from the line of Ashok Ajira from Achin Capital Global. Please go ahead. 9:51 9 minutes, 51 seconds Yeah, thank you for giving this opportunity sir. Uh my compliments to you sir and the entire team of central bank for a 9:59 9 minutes, 59 seconds very good business growth I mean especially the uh the credit growth is phenomenal. Even in this quarter itself it is 6.49%. 10:09 10 minutes, 9 seconds Uh having said that sir we have noted some uh decline in the profitability our even operating profit also has gone down 10:17 10 minutes, 17 seconds and uh resulting into the net profit also going down. Of course that that one time tax implication is there in that 10:25 10 minutes, 25 seconds but in the operating profit also we are down. Similarly in case of the asset also asset quality also I think maybe it 10:33 10 minutes, 33 seconds is our this quarterly if you look at it the both uh the gross NPA and net NPA both in absolute numbers have gone up 10:43 10 minutes, 43 seconds and in fact uh this net NPA has gone up even in percentage also gone up so there is some concern on that even though the 10:52 10 minutes, 52 seconds SMA quality is maintained so sir my first question or rather I would like to have your comments on uh are you seeing 11:00 11 minutes any any any stress uh in the system even for the current uh because of the geopolitical situations or whatever 11:08 11 minutes, 8 seconds happening in the group uh because of that or even some of the old accounts are also getting slipped because of the slippage is also higher in this quarter. 11:18 11 minutes, 18 seconds So it's a it's a it's a kind of a mixed quarter s. Yeah, thank you Aj for your question. 11:25 11 minutes, 25 seconds First of all uh regarding reduction in operate uh you told about operating profit it has grown by 4.37% but if we 11:34 11 minutes, 34 seconds compare on quarteron quarter basis yes uh actually it was mainly due to two reasons one was actually regarding AFS 11:42 11 minutes, 42 seconds mark to market and that that actually if you see treasury income previous quarter it was more than 300 cr and this quarter 11:50 11 minutes, 50 seconds it is 9 cr and also recovery in return of Now you see uh recovery in return of account previous quarter it was more 11:59 11 minutes, 59 seconds than 1,000 cr 1,162 cr but this quarter it is only 352 odd cr. So that were the 12:06 12 minutes, 6 seconds two main reasons behind actually reduction uh what you are observing in uh in operating profit side. But if you 12:14 12 minutes, 14 seconds see our net interest income has increased by 1.7% as uh yearon-year basis it is 14,171 cr and net profit 12:24 12 minutes, 24 seconds rightly said by you because we have taken one time hit of 632 cr toward DTA that is the main reason why our net uh 12:32 12 minutes, 32 seconds profit has uh declined regarding asset quality actually I would like to tell you rather we have improved you you see 12:40 12 minutes, 40 seconds our uh total slippage ratio of total year is 1.16. Previous year it was 1.45. 12:48 12 minutes, 48 seconds There is overall improvement in asset quality management because we have corrected uh our processes and also uh 12:57 12 minutes, 57 seconds more uh in improvement in technology side towards getting good alerts and fit on street also integrated with those 13:05 13 minutes, 5 seconds things. That's why in the asset quality side and monitoring side because we deal with business retail business and retail business requires constant monitoring 13:13 13 minutes, 13 seconds and frequent followup. So through technology we have we are taking services of bot also and fit on street persons are there integrated call center 13:22 13 minutes, 22 seconds is there and also we are working towards trade underwriting improvement in trade underwriting quality and trade monitoring side also and uh reviewing 13:31 13 minutes, 31 seconds the process of our processing center branches with all these things we are able to maintain our slippage ratio as 13:38 13 minutes, 38 seconds 1.16 and in next year our aim is we have given guidance that we are going to keep it less than 1%. And regarding your 13:47 13 minutes, 47 seconds another question regarding impact of Middle East crisis, till now we have not received any request of customer for any 13:56 13 minutes, 56 seconds overdue PCs or any uh post shipment uh facility and uh our risk management 14:02 14 minutes, 2 seconds department is uh very active uh towards actually conducting stress testing and portfolio analysis. So in that way there 14:11 14 minutes, 11 seconds is no stress signal at least till now we are witnessing in towards our asset quality. Hope I have answered your question. 14:21 14 minutes, 21 seconds Yes sir. Uh yes yes you answered it very well and those two factors which you explained. Yes of course because today 14:28 14 minutes, 28 seconds you know we get very less time. Uh in fact earlier the call was at 6:00 and then 7:00 and we just got maybe just 15 14:36 14 minutes, 36 seconds 20 minutes only to go through this. But anyway you have explained it. Thank you very much for that. Sir my second question is on the ECL now since the ECL 14:44 14 minutes, 44 seconds guidelines are have come out the final guidelines from RBI. So how prepared we are? Is there any some prompt 14:52 14 minutes, 52 seconds calculation which has been done because we have been preparing it for now for quite some time. So how do you see the 14:59 14 minutes, 59 seconds impact of the ECL and then how fast you see that the impact can be absorbed without affecting the profitability much. 15:08 15 minutes, 8 seconds See we are actually uh for since last uh uh at least one or two years we are sincerely working towards developing 15:16 15 minutes, 16 seconds models improving quality of data and also uh our strategy of financing also and containment of slippages and all 15:24 15 minutes, 24 seconds which I told these things are going to really support us in migrating to the ECL side and as regards 15:33 15 minutes, 33 seconds our uh impacting on profitability side I don't find looking to the uh our growth uh and pro in uh net net net profit and 15:42 15 minutes, 42 seconds profitability uh I I don't find any challenge in migrating to uh the ECL framework as of 1st April 27 but as 15:51 15 minutes, 51 seconds regards uh numbers if you will ask me though we have uh till previous quarter 1575 cr additional provision we have 16:00 16 minutes made uh for this purpose but the actual simulation depending upon the final guideline Still we are working on this 16:08 16 minutes, 8 seconds site that's why at present I will not be able to tell you the numbers actually which will be uh required for that 16:15 16 minutes, 15 seconds purpose but I can tell you in terms of technological capabilities simulation and strategy towards actually uh all 16:24 16 minutes, 24 seconds these things which are going to impact ECL central bank of India is fully prepared for migr migrating to the ACL 16:32 16 minutes, 32 seconds on as of 1 April 27. No, I appreciate sir because it is just a uh these guidelines final guidelines have just 16:39 16 minutes, 39 seconds come out. Sorry all in both your my questions in technology two three times four times. Uh so can we know little 16:47 16 minutes, 47 seconds more in detail uh in technology front what is happening? Can we have some some quite some if not very detailed uh some 16:56 16 minutes, 56 seconds short report on the technology development and what kind of spending we have done what kind of budgeting we are planning and which are the areas which 17:04 17 minutes, 4 seconds are yet [clears throat] to be covered uh by the technology by central bank of India. 17:08 17 minutes, 8 seconds This I would like to provide you offline because currently I am not prepared with the technology and all these things. 17:15 17 minutes, 15 seconds Okay. So last one sir is on the treasury. Treasury friend of course there was a pressure uh this year but now with the things little bit changing 17:23 17 minutes, 23 seconds uh where do you see I mean or what do you see our treasury uh you know contributing start again contributing to the to the profits in the coming in the 17:33 17 minutes, 33 seconds FI27 sir you know we started year by yield of 6.58 then it got down to 6.14 and in 17:43 17 minutes, 43 seconds March we have closed by 7.03 03. So in that way uh it has impacted a lot our profitability this quarter at least only 17:51 17 minutes, 51 seconds 9 cr from treasury we got. So but looking to the improved condition and situation now by optimal deployment of 17:59 17 minutes, 59 seconds our the investment portfolio and also uh IPO market also previous year also we have got a good amount of profitability 18:08 18 minutes, 8 seconds exchange profit. I am quite hopeful that this year also uh looking to the market condition we'll be able to optimize return in treasury side also. 18:17 18 minutes, 17 seconds Good to know that if the moderator permits me one more last question on the credit front uh you have done very well. 18:24 18 minutes, 24 seconds Uh now going forward uh uh what I mean what are our like sanctioned pipeline uh what is are we prepared up to how much 18:33 18 minutes, 33 seconds amount are we prepared through our uh you know CR and uh going forward what are our plans or targets on the credit 18:41 18 minutes, 41 seconds front sir our C is 17.91% as you have seen and CT1 15.61%. 18:50 18 minutes, 50 seconds So our capital is not a constraint for meeting our growth aspiration in credit side. We have given guidance of 14 to 18:57 18 minutes, 57 seconds 16% in credit side growth and with the current capital strength we will be able to meet this expectation aspiration 19:05 19 minutes, 5 seconds which bank is visualizing and uh regarding undispersed sanction you see our 68% book is RAM side retail 19:14 19 minutes, 14 seconds agriculture and MSME is since November we have started uh outreach program more 19:21 19 minutes, 21 seconds than 100 places uh we organize MSME retail and agriculture outreach program and good number of uh 19:29 19 minutes, 29 seconds prospective leads uh potential business leads we uh actually mobilize and uh with the our uh LLMS and our field team. 19:38 19 minutes, 38 seconds It is a complete SOP based outreach program where our people senior team from head office also uh went there goes 19:46 19 minutes, 46 seconds there and uh uh mobilizes the proposals and all that is one area where good traction we have you know our retail 19:55 19 minutes, 55 seconds growth is more than 20 uh 25%. And agriculture has grown by 17.60%. 20:02 20 minutes, 2 seconds MSME has grown by 17.06%. 20:05 20 minutes, 5 seconds And similarly in corporate side also our we have reached we are uh we have closed the book at 1 lakh 9,950 cr is also growth of 14.60%. 20:17 20 minutes, 17 seconds In that way actually we have identified uh potential branches in MSME there are 20:24 20 minutes, 24 seconds 225 branches agriculture there are more than 300 branches and for corporate also more corporate finance branch we are 20:32 20 minutes, 32 seconds opening more MCVS we are opening where trained people like more than 900 officers we are going to get in the 20:41 20 minutes, 41 seconds month of October whom we are going to deploy them at different uh credit potential branches. 20:47 20 minutes, 47 seconds We are also setting up market sales and marketing team 350 person through IBPS. 20:53 20 minutes, 53 seconds We are going to get them very soon in next one or two months. So these actually uh enablers will augment our 21:01 21 minutes, 1 second capability towards achieving the credit uh targets and all. 21:06 21 minutes, 6 seconds Okay sir. Thank you very much Kalyan Kumar Sab with the entire management of the central bank. All the best to you and I if time permits I might come back. 21:16 21 minutes, 16 seconds Thank you. Thank you very much sir and for that uh digital uh I'll take uh the numbers offline from you. Thank you sir. 21:23 21 minutes, 23 seconds Okay. Thank you. Thank you. 21:27 21 minutes, 27 seconds Thank you. The next question is from the lineup. Sushil S. Choxy from Indis Equity Advisor. Please go ahead. 21:35 21 minutes, 35 seconds So congratulations to the team from the bank of India for excellent and stable result and whatever advice and guidance you've given me. Sir I want to break up 21:44 21 minutes, 44 seconds if I miss few things. for I'm looking forward to the next year that is the current financial FY27. 21:51 21 minutes, 51 seconds Can you guide us what is your thought process on deposit advance CASA RAM and CD ratio recovery from technical written 21:59 21 minutes, 59 seconds accounts digital spend HR processes our insurance subsidiary what kind of recovery are we seen from technically 22:07 22 minutes, 7 seconds written of assets question is bouquet of questions I will answer one by one uh Mr. Choxy thanks 22:15 22 minutes, 15 seconds for the actually really uh you see uh regarding first I will answer you regarding deposit mobilization this time 22:22 22 minutes, 22 seconds also you see in kasa we have grown by 9.75% and percentage wise also 4730 22:30 22 minutes, 30 seconds is our kasa ratio and uh to achieve this actually our team has worked hard and uh they uh designed the products suited to 22:39 22 minutes, 39 seconds the different segments of the customer this was one part which actually really acted as well. We tapped the potential 22:46 22 minutes, 46 seconds of our lead district responsibility. 52 lead district managers. We uh roped them in and aligned them with the these 22:54 22 minutes, 54 seconds products and all these things so that they can support us uh in mobilizing Kata deposit. And uh another uh 23:02 23 minutes, 2 seconds important part was uh our government business cell also few places we have opened where we got good uh traction in 23:11 23 minutes, 11 seconds those area postou with several state governments railways and also police forces paramilitary forces where we have 23:19 23 minutes, 19 seconds we we are able to open good number of salary accounts and good balances are being maintained with them because our technological things are also integrated 23:28 23 minutes, 28 seconds in this model. Most of the accounts are being opened through uh tab and which is very much convenient for the customers. 23:36 23 minutes, 36 seconds If I can tell you regarding term deposit, our growth was more than 14.60 14 14 15%. So there also our growth is 23:45 23 minutes, 45 seconds very good. The resources is not a challenge for uh central bank of India. 23:50 23 minutes, 50 seconds CD ratio in December uh in September it was 66. Today uh in March we have closed 23:57 23 minutes, 57 seconds at 73.90 approximately 74%. There is improvement and in coming years actually 24:04 24 minutes, 4 seconds the expertise which I answered earlier uh the question of Mr. Razer hopefully you must be uh hearing also there I told 24:13 24 minutes, 13 seconds that for credit actually central bank is now geared up through outreach program training of thousand credit officer we 24:22 24 minutes, 22 seconds are providing them other trainings uh of flagship training pro trade program forex program with this uh centralized 24:29 24 minutes, 29 seconds forex sale also have been established with this actually we are really uh improving or diversifying our different 24:38 24 minutes, 38 seconds resource portfolio who which can support in not only in create growth but also improvement in income side also 24:46 24 minutes, 46 seconds regarding asset quality you see our slippage ratio we have maintained it at 1.16% there is improvement from 1.45% as 24:56 24 minutes, 56 seconds of previous year and uh uh gross NPA and net NPA also you see 2.67 67% 25:05 25 minutes, 5 seconds is the uh in percentage term 9,185 cr in absolute terms and for net NPA it 25:12 25 minutes, 12 seconds is 1,666 cr and in percentage terms it is49%. 25:19 25 minutes, 19 seconds There also we are very much comfortable and well aligned with the direct uh guidance which we have given to the uh market. 25:27 25 minutes, 27 seconds Apart from this actually kasa ram containment of slippages NPA uh you you 25:34 25 minutes, 34 seconds asked about uh uh actually uh the profitability side also we are fully geared up uh with all these 25:42 25 minutes, 42 seconds interventions uh due as we migrated to the new tax regime there would be benefit of 10% we have simulated that 25:50 25 minutes, 50 seconds more than 600 cr uh is going to be the additional income due to migration of uh 25:57 25 minutes, 57 seconds this uh uh this aspect and uh anything else I left s uh thank you for answering the 26:04 26 minutes, 4 seconds question but my uh thinking is that central bank is geared up for lot of betterment in the coming year and the years to come under 26:12 26 minutes, 12 seconds the tenorship and the leadership along with your team so if I get some kind of advice will we uh be doing what the 26:21 26 minutes, 21 seconds industry is estimating 12 to 14% or we'll be better off in deposit advance ance kasa in the current year or years 26:29 26 minutes, 29 seconds to come and that is what is what I'm looking for because thing is that I see that strength is building up towards betterment so if that is the case I 26:37 26 minutes, 37 seconds would like to hear if you can specifically address on those parts uh yes actually we are working on the 26:45 26 minutes, 45 seconds bringing improvement in the processes investing in people yes you told about HR also yeah investing in people number 26:52 26 minutes, 52 seconds of training programs we are providing the first time regional a program leader development program all these things are also on the card so that our 27:00 27 minutes capabilities are built in technology side also lot of investments we are making so that's why we are sure that guidance which we have given for 27:08 27 minutes, 8 seconds business growth of 14 to 15% for current year and deposit growth by 10 to 12% and 27:15 27 minutes, 15 seconds advances growth by 14 to 16% we are going to achieve all these guidance which we have given to the with the 27:22 27 minutes, 22 seconds confidence I am talking because the kind of enablement and system improvement, technological integration with business models we have made, we are sure that 27:31 27 minutes, 31 seconds easily central bank of India will be able to achieve all these uh parameters. 27:36 27 minutes, 36 seconds So what do you be a what would be the balance between RAM and corporate in the current year estimating we have given the guidance of 6535 plus 27:45 27 minutes, 45 seconds minus 5%. And we are maintaining this this year also is this year 6832 is the ratio. We are going to maintain this uh 27:54 27 minutes, 54 seconds guidance 65 35 plus - 5%. Because in corporate side we are actually really 28:01 28 minutes, 1 second balancing with the risk and return and uh only uh good rated customer only we are selecting because looking to our 28:09 28 minutes, 9 seconds experience of uh PCA days. So in that way uh we are very selective in corporate side but you can see still 28:16 28 minutes, 16 seconds there is growth in corporate side also 1 lakh 9,960 cr that amounts to 1450% growth 28:24 28 minutes, 24 seconds sir what kind of what kind of sanctioned pipeline and undispersed credit limits are visible to you today what is not available today 28:32 28 minutes, 32 seconds actually there might be so that data I am not ready with that now actually I will I will be able to provide you offline 28:39 28 minutes, 39 seconds sir what is the estimate of recovery forecast for current year from return of assets. 28:45 28 minutes, 45 seconds Uh recovery actually see you we are having uh 32,000 plus K in technical return return off account and uh this 28:54 28 minutes, 54 seconds year also if you can see 2,270 cr we have recovered in return off account and previous quarter was more than 1100 cr. 29:03 29 minutes, 3 seconds Similarly 2200 to 2,500 K easily we can recover from return of account this year 29:10 29 minutes, 10 seconds also and coming two three years is not going to be a challenge for us. Sir Raja missed a question which he has been 29:18 29 minutes, 18 seconds repeated in last 8 nine quarters about the lumpy account of the airline. Where are we today? 29:25 29 minutes, 25 seconds That lumpy account actually process is going on. Uh previous quarter we received 515 cr as uh guarantee and uh 29:34 29 minutes, 34 seconds but recovery process is going on. We are going for auction and all whatever processes are available we are going to 29:41 29 minutes, 41 seconds utilize those processes. Say you are strengthening lot of HR process and digital and fleet on street and lot of 29:49 29 minutes, 49 seconds government accounts which means you are going to do a lot of digital spends. 29:53 29 minutes, 53 seconds Have we made some kind of a budget for current year for digital spend? 29:58 29 minutes, 58 seconds Yes. Yes. There is budget for actually for capital budget it is 1442 cr and revenue is 1,276 30:07 30 minutes, 7 seconds cr for 2627 for current year. Sir second thing I noticed uh that you have tied up with lot of mutual funds for 30:15 30 minutes, 15 seconds distribution now and with kasa at 47 to 50% range over a period of number of years I see a lot of income likely to 30:24 30 minutes, 24 seconds generate from kasa 3in1 accounts and distribution capability which you're building are we sensing early benefits 30:31 30 minutes, 31 seconds of it or it's yet to ftify me uh two three things actually uh we are going to start wealth management 30:39 30 minutes, 39 seconds division rightly said by and that we are going to establish and uh customer relationship uh concept and 30:46 30 minutes, 46 seconds uh and also credit card part and also sales and marketing team. These initiatives we are going to implement in 30:54 30 minutes, 54 seconds central bank of India which will certainly help us in actually uh garnering more income uh fee based 31:01 31 minutes, 1 second income advisory income those opportunity will be open for central bank of India. 31:07 31 minutes, 7 seconds Sir uh any uh highlights on the insurance JV from what we and how it's 31:13 31 minutes, 13 seconds shaping up for income s these are untapped potential for central bank of India both life and unlife we 31:21 31 minutes, 21 seconds are having relationship with generally insurance company and uh this year also 31:26 31 minutes, 26 seconds 161 cr total 161 cr we got but it is flat if you compare with the previous 31:33 31 minutes, 33 seconds year the huge opportunity is there so For that purpose our team is working that how to leverage upon these tie up 31:41 31 minutes, 41 seconds and how we can get more and more revenue and income from these tie-ups. 31:47 31 minutes, 47 seconds Now you answered that so far there are no indicative signals led by the global uh mishap which is led by war but uh any 31:57 31 minutes, 57 seconds indicators on retail or MSME in month of April about collection any early signals or everything seems in order 32:05 32 minutes, 5 seconds till now actually I am regularly proactively interacting with my uh trade monitoring team and uh daily morning the 32:14 32 minutes, 14 seconds in charge uh of the trade monitor ing team uh updates me. But till now such kind of slippage I can give you example 32:23 32 minutes, 23 seconds of 20th April it was 250 cr slippage was 250 cr because that was the date when uh 32:30 32 minutes, 30 seconds that uh uh demand is fired demand is fired so only 250 cr and it is March also and February also 32:38 32 minutes, 38 seconds approximately this is the numbers of slippage so that's why there is no abnormality or any incipient signal due 32:46 32 minutes, 46 seconds to uh the middle crisis we are facing So thank you for answering all my questions. Good luck for the year and 32:54 32 minutes, 54 seconds best wishes to entire team of central bank. Thank you Mr. Choxy. Thank you. 33:02 33 minutes, 2 seconds Thank you. The next question is from the line of Ash from KC Securities. Please go ahead. 33:10 33 minutes, 10 seconds Hi sir. Uh good evening. Uh sir, first question is on your slippages. Uh I see that your flesh fresh lipidages have 33:17 33 minutes, 17 seconds increased substantially QQ. Can you just explain the reason for that? 33:23 33 minutes, 23 seconds See uh uh Q4 uh actually if you compare year on year then Q4 every time there is actually uh 33:33 33 minutes, 33 seconds uh slippages are there uh but agriculture you can see uh many of these 33:43 33 minutes, 43 seconds uh slippages particularly in MSME may be attributed to kind of uh technical okay 33:50 33 minutes, 50 seconds the auditors are saying that uh the credit summations are not commensurate with the uh with the business 33:57 33 minutes, 57 seconds projections whereas the units units are working. So so because most of these branches go under audit in in the 34:04 34 minutes, 4 seconds quarter of this uh so that that is one thing and secondly [clears throat] some uh agriculture accounts have been 34:12 34 minutes, 12 seconds identified. So slippages that that is the only reason why our uh slippages are 1,31 crores as against roughly around 34:21 34 minutes, 21 seconds 800 crores uh on an average every quarter and major in government sponsored 34:30 34 minutes, 30 seconds schemes mudra PME GP etc up to 10 lakh it was more slippage as you were there. 34:37 34 minutes, 37 seconds Understood sir. Sir second one is on on the ECL transition. uh I understand that you would want to wait before sharing a 34:45 34 minutes, 45 seconds an impact on the onetime impact but can you at least comment on what the recurring credit cost can increase by 34:53 34 minutes, 53 seconds when you transition to the ECDG see uh our back of the envelope kind of 35:00 35 minutes a calculation uh for ECL impact was always around 4,000 cr which is very conservative out of that 1,525 35:09 35 minutes, 9 seconds crores we have already built Now that Reserve Bank of India has permitted that we can take the impact 35:15 35 minutes, 15 seconds through reserves. So uh bank being uh sufficiently capitalized at 17.91% 35:23 35 minutes, 23 seconds I can easily uh take the impact on day one. I can easily take the entire impact on day one without any problem. Secondly what you are saying is an ongoing basis. 35:33 35 minutes, 33 seconds So ongoing basis our estimates are that uh roughly around 600 crores of 35:41 35 minutes, 41 seconds provisions would be required for the entire financial year on an ongoing basis. But uh that one one impact that 35:49 35 minutes, 49 seconds my uh transition to new tax regime itself is likely to give me a positive impact of around 600 to 800 crores. So 35:57 35 minutes, 57 seconds these two impact can easily be uh balanced. 36:03 36 minutes, 3 seconds So the the benefit of 6 to 800 cr should be on account of what reason? Uh because we are we are going to 36:10 36 minutes, 10 seconds transition from uh the old tax regime of 35% to new tax regime of 25%. This 10% benefit would be there. 36:18 36 minutes, 18 seconds So that 10% benefit comes to around 700 750 crores. 36:24 36 minutes, 24 seconds Got it. and the 600 cr uh ongoing credit cost that uh 600 cr is the ongoing sorry 36:31 36 minutes, 31 seconds increase ongoing credit cost you see now uh I'll have to provide for standard assets also based on the uh PD 36:38 36 minutes, 38 seconds and other things pool whatever is the floor in many cases suppose if my thing is very low still 36:46 36 minutes, 46 seconds then as per RBS circular there is a floor beyond which I below which I cannot go so based on all these things we estimate that around 600 650 crores 36:55 36 minutes, 55 seconds would be the uh total uh financial cost for an ongoing provision additional ongoing provision. So that will be 37:02 37 minutes, 2 seconds easily balanced out of uh the new tax regime uh thing. 37:09 37 minutes, 9 seconds Sorry confirming if my understanding is correct. 37:12 37 minutes, 12 seconds Your voice is very very uh I hope this is better. This 600 to 37:18 37 minutes, 18 seconds 650 cr number that is the increase in credit cost on ongoing basis or that is the final credit cost on ongoing basis. 37:28 37 minutes, 28 seconds No no no see what what we are saying because of the uh transition to ECL 37:34 37 minutes, 34 seconds uh suppose if my SMAS increase even normal normal course uh the uh as per the IRA guidelines I need to maintain 37:42 37 minutes, 42 seconds 0.25 25.4% 4% and 1% provision on all the assets. Here in the ECL regime there is different uh I mean slaps provided. 37:53 37 minutes, 53 seconds So based on that we estimate that additional provision required would be of the order of 600 to 650 crores 38:02 38 minutes, 2 seconds because as my standard advances also increase there will be an additional outgo right. 38:08 38 minutes, 8 seconds So that that additional cost will be more than met out by my by uh by by transition to new tax regime where also 38:17 38 minutes, 17 seconds we are seeing an upside of around 700 crores. 38:21 38 minutes, 21 seconds In nutshell actually I would like to tell you see the estimate which you are trying to plan because these things we 38:28 38 minutes, 28 seconds have not simulated till now that how but our strategy see unsecured loan we are very cautious in unsecured loan and also 38:36 38 minutes, 36 seconds we are improving overall credit underwriting quality also monitoring aspect also being improved in that way 38:44 38 minutes, 44 seconds uh the impact which we are going to face uh due to implementation of ECL we are very proactively and consciously working 38:52 38 minutes, 52 seconds on those direction. We are working on the models uh on which uh actually we have to see and simulate the kind of 38:59 38 minutes, 59 seconds things so that we can migrate. But one thing I would like to say as Mukul G also told you that our reserves are 39:06 39 minutes, 6 seconds surplus capital we are very well capitalized. So therefore migration to uh ECL is not going to uh impact us uh in any any uh significant way. 39:20 39 minutes, 20 seconds Understood sir. Friend just lastly your margin has improved quite a bit in this quarter by 30 basis points but your 39:27 39 minutes, 27 seconds yield on advances and cost of funds has not really moved. How to understand the reason for this increase in NIM. Yield 39:36 39 minutes, 36 seconds on advances uh yearon-year basis it is 8.21% and in this quarter it is 7.78 uh 39:43 39 minutes, 43 seconds uh%. And cost of deposit is actually uh if you see 4.82 82 uh uh percent. So in 39:52 39 minutes, 52 seconds cost of deposit actually reduction of only two basis point but if you see uh in uh yield on advances it is 57 basis 40:00 40 minutes point uh dip major reason behind it actually our more than 60% 61% rather 40:07 40 minutes, 7 seconds advances are external benchmark link uh part that's why impact was huge and uh 40:14 40 minutes, 14 seconds our major advances as 61% I told you are external benchmarking the rates are immediately actually uh passed on to the 40:22 40 minutes, 22 seconds customer and uh uh the deposit get rep repl. So that was the major reason 40:30 40 minutes, 30 seconds behind actually what you are uh saying but uh currently actually uh we are 40:37 40 minutes, 37 seconds working on these aspects also so that how we can revisit our uh processes that 40:44 40 minutes, 44 seconds so that uh at larger scale our team can handle the sanction dispersement of uh 40:51 40 minutes, 51 seconds retail agriculture and MSME side and also the uh deposit repricing also will happen in next quarter. it will be 40:59 40 minutes, 59 seconds completed that margin part also will be improved. So sorry to interrupt but the question is on the quarteronquarter movement in NIM. In spite of all the 41:08 41 minutes, 8 seconds things you said the NIM has actually improved by about 30 basis points quarter on quarter. That is the moment I'm trying to understand. 41:18 41 minutes, 18 seconds See uh there is one item we got uh a refund of 431 crores uh in income tax uh 41:25 41 minutes, 25 seconds interest as income tax interest. So that has also contributed towards uh improving the NIM on a quarteronquarter basis. This we accounted for in March 41:34 41 minutes, 34 seconds 26th quarter. [clears throat] But excluding this item also the the NIM has not been much impacted. I mean it 41:41 41 minutes, 41 seconds was 2.96 in uh last last uh quarter. It is around 2.89 or 2.90 in this quarter. 41:50 41 minutes, 50 seconds Understood sir. Perfect. Thank you sir. 41:52 41 minutes, 52 seconds Those are all the questions I had. Thank you. Thank you. 41:57 41 minutes, 57 seconds Thank you participants. You may please press star N1 to ask a question. 42:14 42 minutes, 14 seconds The next question is from the line of Sadhar from Chesteratics. Please go ahead. 42:20 42 minutes, 20 seconds Uh thank you for the opportunity sir. Uh can you give your uh total say uh 42:27 42 minutes, 27 seconds standard asset provisions which are uh incremental to the IRA norms? 42:34 42 minutes, 34 seconds Uh we are holding around.87 to88% of uh total provision on standard assets. 42:44 42 minutes, 44 seconds So uh I mean this works out to roughly around uh 42:52 42 minutes, 52 seconds roughly around 2,800 to 2,900 crores of total standard provision we are holding. Okay. Yeah. 43:00 43 minutes And what will be incremental uh as compared to what would be required? The gap would be how much sir? See, 1525 43:09 43 minutes, 9 seconds crores is straight away the ECL provision that is uh additional provision. Okay. Uh thereafter under uh 43:17 43 minutes, 17 seconds the earlier 7th June RBA circular then uh restructuring also we are holding provisions. So all this put together we are holding this around 2,800 2,900. 43:29 43 minutes, 29 seconds Okay. Sir, what will be our gold loan book size and what will be the LTV in it and the yield on the same? 43:38 43 minutes, 38 seconds Sorry, uh what will be our gold loan book? Uh the LTV in it and the yield on the same 43:45 43 minutes, 45 seconds 10,000 total gold loan is around 28,000 28,000. 43:49 43 minutes, 49 seconds Yes. And 8.04 is the total 8.04 04 is the LTV 43:58 43 minutes, 58 seconds 62% 52% LTV is 52%. 44:02 44 minutes, 2 seconds Okay. And what would what would be the year-on-year growth in this book sir? 44:06 44 minutes, 6 seconds [clears throat] 44:07 44 minutes, 7 seconds year on year 44:22 44 minutes, 22 seconds percentage actually for uh retail yearon-year growth it is 157% agreed 56%. 44:30 44 minutes, 30 seconds And total growth is 88.62%. 44:33 44 minutes, 33 seconds And yield on gold loans under retail sector is 8.04%. 04%. 44:38 44 minutes, 38 seconds Okay. So we have uh kind of industry-leading CASA and our LCR is 44:45 44 minutes, 45 seconds also industryleading. So on liquidity fair side we are very strong. So how do you see because banks would have 44:52 44 minutes, 52 seconds constraint in terms of uh deposits going forward and CDS rates are also moving up. So how do you see your yield kind of 45:00 45 minutes uh your limb kind of moving in the next year? 45:04 45 minutes, 4 seconds If we have given direction that we are going to uh remain above 3%. And in that way Kasa and rightly said by you liquidity is not a concern for us. 45:14 45 minutes, 14 seconds Previous year we maintained 210 210 actually as liquidity coverage ratio and 45:20 45 minutes, 20 seconds CD also they have closed by 73.90% ample scope of uh advances and also 45:27 45 minutes, 27 seconds liquidity uh we are having which can support our our growth and having good kasa base uh we have actually good 45:35 45 minutes, 35 seconds margin also through which we can maintain the name side and our focus area uh for this year current year also 45:43 45 minutes, 43 seconds So and onward focus upon uh building upon our strong kasa uh built and base aligning with the customer behavior. We 45:52 45 minutes, 52 seconds are providing them ample opportunities for actually uh uh invest and all through our digital app and all and uh 46:01 46 minutes, 1 second uh regarding advances RAM side where better margins are available this is focus our 68% book as of March 26 is uh 46:10 46 minutes, 10 seconds belonging to RAM that is also going to continue we have given uh 65 35 plus minus 5% guidance so therefore uh I am 46:19 46 minutes, 19 seconds sure confident that uh we will be able to maintain name above three. 46:26 46 minutes, 26 seconds Okay. Uh sir, does that answer your question? 46:38 46 minutes, 38 seconds You want to ask more? 46:40 46 minutes, 40 seconds No, I I am fine. I I'm done with my questions. Thank you. 46:46 46 minutes, 46 seconds A reminder to all the participants, if you wish to ask a question, please press star and one. 47:02 47 minutes, 2 seconds As there are no further questions from the participants, I now hand the conference over to the management for closing comments. 47:09 47 minutes, 9 seconds Yeah, thanks uh thanks for the opportunity and uh thank you for asking uh very uh good question and giving us 47:17 47 minutes, 17 seconds opportunity uh uh to actually present the uh numbers and also strategy in front of you all 47:24 47 minutes, 24 seconds investors. So I can tell you that uh Central Bank of India actually uh not only we believe in numbers but also we 47:34 47 minutes, 34 seconds believe in capability building and also our strategy uh for main focus towards 47:41 47 minutes, 41 seconds building CASA retail agriculture MSME containment of slipes improvement in overall improvement in asset quality and 47:50 47 minutes, 50 seconds these are going to be the main uh focus area and I I am I will very happy to 47:57 47 minutes, 57 seconds assure you all that uh all stakeholder uh kind of dividend which we have given 48:03 48 minutes, 3 seconds this year also and uh that uh that is going to be maintained and uh in that 48:10 48 minutes, 10 seconds way uh thanks uh for uh this uh opportunity and meeting anything else you 48:17 48 minutes, 17 seconds uh I'm sorry sir to interrupt uh we have one question in the queue can we take it uh yes please all right so we will Take the next 48:25 48 minutes, 25 seconds question from Plane from G&G. Please go ahead. 48:29 48 minutes, 29 seconds Yeah, thank you. Thank you sir for this opportunity. I'm sorry for punching this a little late. So if I take off the two 48:36 48 minutes, 36 seconds one-off items which is the tax impact for that provision and then your income tax refund uh our net profit would get 48:46 48 minutes, 46 seconds uh basically settle at around,50 crores if I am right 48:53 48 minutes, 53 seconds 32 and 732 732 and 632 49:00 49 minutes 724 + 632 minus 431 So 925 925 cr. 49:08 49 minutes, 8 seconds So what was it a tax? Yeah. 49:11 49 minutes, 11 seconds See these tax refunds because uh we were supposed to make the payment advanced tax and all we are we are making whereas 49:19 49 minutes, 19 seconds we were not required to actually pay any taxes because we had the business losses. So these uh I mean even though it appears as a one-off item but it has 49:27 49 minutes, 27 seconds been a regular feature for the last five years. If you can see right from 2021 onwards we are getting uh these refunds 49:38 49 minutes, 38 seconds this 632 crores DTA impact. Yes this I agree that this is uh actually one time and uh this will not happen this will not be there uh next time onwards going. 49:50 49 minutes, 50 seconds Yeah. So in March 25 we had uh 318 crores as uh other uh income. How much uh income tax refund would have uh been 49:59 49 minutes, 59 seconds in that uh what would be that component over there? 50:02 50 minutes, 2 seconds March 25 quarter you are saying no uh year end March 25 in interest income there is one line item others which is 318 crores. 50:14 50 minutes, 14 seconds Yeah. So out of that income tax refund was around 280.72 crores. 50:21 50 minutes, 21 seconds Okay, okay, okay, sir. Thank you so much. Thank you. 50:29 50 minutes, 29 seconds Thank you. That was the last question for today. On behalf of Systematics Shares and Stock Limited, that concludes 50:37 50 minutes, 37 seconds this conference. Thank you all for joining us today. And you may now disconnect your lines.