City Union Bank Limited — Q3 FY26

City Union Bank Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=HhNBjHycUNk Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to the City Union Bank Limited QG 9 months FYI26 earnings conference call hosted by Amit Capital Private Limited. 0:10 10 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation 0:17 17 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing start and zero on your touchstone phone. I now hand the conference over over to Mr. 0:28 28 seconds Rigneshia from Amit Capital Private Limited. Thank you and over to you sir. 0:33 33 seconds Yeah, thank you Ruda and good evening everyone. On behalf of Ambit Capital, I would like to thank the management of City Union Bank for allowing us the 0:41 41 seconds opportunity to host Q3 FI26 and 9 month FI26 earnings call. We have along with us Dr. N. Kamakuri MD and CEO, Mr. R. 0:51 51 seconds Vijayan, executive director, Mr. V Romesh, executive director, Mr. J. Sad Gopan CFO and the management team of 1:00 1 minute City Union Bank. I'll now hand over to call to Mr. DN Kamakuri, MD and CEO of City Union Bank for the opening remarks. 1:08 1 minute, 8 seconds Over to you sir. 1:12 1 minute, 12 seconds Uh good evening everyone. Dr. Kamakuri here. 1:16 1 minute, 16 seconds RP welcome to all of you for this con call to discuss the unodited financial results of cityunian banks for the third 1:24 1 minute, 24 seconds quarter 9 months ended 31st December 2025 for financial year 2026. 1:31 1 minute, 31 seconds The board approved the results today and I hope all of you have received the copies of the results and the presentations. 1:38 1 minute, 38 seconds As you all know my tenure as MD and CEO of the bank uh will uh the 15 years will 1:45 1 minute, 45 seconds be completed on 30th April. Uh as you all know this is my uh 59th quarter 1:52 1 minute, 52 seconds today. So we have one more quarter to go and uh based on the uh uh regulations currently in force like say I have to complete my tenure on 30th April. 2:03 2 minutes, 3 seconds Keeping that into account, our board has sent the list of candidates to RBI and once we receive the further approval, we 2:12 2 minutes, 12 seconds will be in a position to communicate to you all the the status. So far everything is going as per the uh 2:19 2 minutes, 19 seconds planning and uh all so far so good and uh we are also happy to note that 2:27 2 minutes, 27 seconds our net worth has crossed 10,000 cr mark today which is an important milestone in the uh uh history of the bank and uh we 2:36 2 minutes, 36 seconds are also happy to inform you one of our board members professor V Kamakoti uh who is also the director of the IAT 2:44 2 minutes, 44 seconds Madras had been honored with the country country's prestigious Padma award Padmma Shri and his significant contributions 2:52 2 minutes, 52 seconds to our country's science and technology sector and we are happy to share with you all and also we have an new 3:01 3 minutes, 1 second introduction to our board today she shri k subramanyan charted accountant and 3:08 3 minutes, 8 seconds also an executive with almost 38 39 years service with the tata consultancy places had been induct inducted to into 3:18 3 minutes, 18 seconds our uh board uh like say who will we expect a good contribution from him in the uh future. Other details are available in the uh uh presentation. 3:28 3 minutes, 28 seconds So with this I hand over the mic to our executive director Mr. Vijayand who will discuss the uh numbers and also we will 3:37 3 minutes, 37 seconds be discussing the question and answers at the end. Over to Vijana. Thank you sir. Good evening all. 3:47 3 minutes, 47 seconds During last call we had shared with you our expectations for the current financial year as below. 3:54 3 minutes, 54 seconds We could see the visibility in achieving mid- teen to high team growth at least 2 to 3% over and above that of the industry. 4:02 4 minutes, 2 seconds Our deposit growth is aligning with credit growth and this will continue. 4:07 4 minutes, 7 seconds CR cut is giving positive impact and we are expecting some positive bias in the NIM during Q3 and Q4. 4:16 4 minutes, 16 seconds ROA is expected to remain at our current level of 1.5 plus our cost to income ratio remains in the range of 48 to 50 for financial year 26. 4:28 4 minutes, 28 seconds For the current quarter 9 month ended FI26 our performance is more or less aligned with our expectations. 4:36 4 minutes, 36 seconds Whatever we have shared with you all you could see we have surpassed on some CS 4:45 4 minutes, 45 seconds advanced growth we had registered 21% advanced growth in Q3 financial year 26 Y 4:53 4 minutes, 53 seconds and our advance have increased to 60,892 crores from 50,49 crores in Q3 FI25 5:03 5 minutes, 3 seconds the this growth is consistent starting Starting from Q1 FI25 and we had achieved doubledigit credit 5:11 5 minutes, 11 seconds growth all the quarters up to Q3 FY26 which is that is for the last seven consecutive quarters we have achieved 5:20 5 minutes, 20 seconds this double digit growth in Q3 alone our advances had grown over by 3,300 crores which is more or less 5:29 5 minutes, 29 seconds similar to our Q2 growth also the growth of 21% is the highest credit growth After financial year 18 which is almost 5:38 5 minutes, 38 seconds after 28 quarters as given earlier we will continue with the targeted growth of mid team 5:47 5 minutes, 47 seconds which is 2 to 3% over and above the system growth at the same time we will not let go the opportunities when we 5:55 5 minutes, 55 seconds encounter the focus continues on core MSME gold loans and secured retail 6:04 6 minutes, 4 seconds deposit Our deposits also had a growth of 21%. 6:10 6 minutes, 10 seconds Similar to advances and our deposits stood at 70,516 crores for Q3 FI26 6:19 6 minutes, 19 seconds as compared to rups 58,271 crores in Q3 FY25. 6:26 6 minutes, 26 seconds Our average CD ratio for Q3 FI26 stood at 86%. 6:31 6 minutes, 31 seconds The CASA percentage to total deposit stood at 27. 6:36 6 minutes, 36 seconds The daily average CASA grew by 3% between Q2 FI26 and Q3 FI26 6:44 6 minutes, 44 seconds and 19% year on year which is Q3 FI25 and Q3 FI26. 6:53 6 minutes, 53 seconds As you know, we had received W8 last quarter which enhanced our opportunities to participate in the wholesale deposit market. 7:02 7 minutes, 2 seconds To test the waters, we went for a certificate for 49 crores in Q2 FI26 and 7:09 7 minutes, 9 seconds around,150 crores in Q3 FI26 to get a feel for the market. 7:15 7 minutes, 15 seconds Anyway, our f focus will be on granular retail deposits and this participation in CD market is purely to get an 7:23 7 minutes, 23 seconds experience assert quality status. 7:28 7 minutes, 28 seconds In assert quality front, we are continuing with the trend of recoveries over and above slippages as we have seen in last several quarters. 7:37 7 minutes, 37 seconds For Q3 FY26, the slipages is around 193 crores while the total recoveries is rupees 219 7:46 7 minutes, 46 seconds crores consisting of 164 crores from live NPA and 55 crores from technically return of accounts resulting in reduced NPA figures. 7:57 7 minutes, 57 seconds Our gross NPA percentage had reduced to 2.17% 8:03 8 minutes, 3 seconds from 2.42% 42% in Q2 FI26 and 2.99% in Q1 FI26. 8:14 8 minutes, 14 seconds Both gross NPA and net NPA in both percentage and absolute terms is reducing quarter by quarter for the last 11 quarters 8:23 8 minutes, 23 seconds or say close to 3 years on continuous basis. 8:28 8 minutes, 28 seconds When compared to Q3 FI25, the GNPA had reduced from 3.36%. 8:36 8 minutes, 36 seconds Which is almost 119 bits reduction. 8:40 8 minutes, 40 seconds Similarly, our net NPA number had come below the 500 cr and decreased to 469 8:48 8 minutes, 48 seconds crores and our net NPA percentage to 78% in Q3 FI26 8:56 8 minutes, 56 seconds as compared to 1.42% 42% resulting in 64 bits reduction in net NPA on year-on-year basis. 9:05 9 minutes, 5 seconds Net NPA was at 1.2% in Q1 FI26 and.9 in Q2 FI26. 9:13 9 minutes, 13 seconds We are now at 78% showing substantial sequential increase. 9:21 9 minutes, 21 seconds In our last con call, we have stated that our overall SMA including SMA 0 1 9:28 9 minutes, 28 seconds and 2 put together are in decreasing trend for the past few quarters. The total SMA numbers for Q3 FI26 9:36 9 minutes, 36 seconds stood at 3.68% compared to 5.06% in last quarter showing significant 9:44 9 minutes, 44 seconds improvement in these numbers. Overall SMA2 to total advance had come down 9:50 9 minutes, 50 seconds below 1% and stood at.95% in Q3 FI26 9:57 9 minutes, 57 seconds as compared to 1.34% to Q2 FI26 and 1.59% in Q1 FI26. As we see today we are 10:06 10 minutes, 6 seconds at 95% for this quarter. 10:10 10 minutes, 10 seconds For Q3 FI26, PCR with technical write off stood at 83%. 10:16 10 minutes, 16 seconds Which has improved from 77% in Q3 last year. 10:20 10 minutes, 20 seconds Starting from Q1 FI25, we had been increasing our PCR without TWW to bring it closer to the 10:28 10 minutes, 28 seconds industry levels. For the current quarter, PCR without technical write off had improved to 64% compared to 59% in Q3 FI25. 10:39 10 minutes, 39 seconds interest income. Our interest income had grown by 19% in Q3 FY26 and improved 10:47 10 minutes, 47 seconds to,756 crores from rupees,479 crores in Q3 FY25. 10:55 10 minutes, 55 seconds For 9 month ended FI26, our interest income stood at 5014 crores as compared 11:02 11 minutes, 2 seconds to 4301 cr showing 17% growth. 5,14 crores compared to 4,300 cr 301 crores. 11:11 11 minutes, 11 seconds Yield on yield front our yield on asset stood at 9.73% 11:18 11 minutes, 18 seconds in Q3 FI26 as compared to 9.81% in Q3 last year. Compared to Q2 FI26, the yield has marginally improved by 7 pips. 11:29 11 minutes, 29 seconds For 9 month finance FI26 the same is 9.73% as against 9.74% similar period last year. 11:41 11 minutes, 41 seconds On the cost side the cost of deposits have reduced by 14 bit sequentially due to the re repricing benefit and stood at 11:49 11 minutes, 49 seconds 5.57 for the quarter compared to 5.71 in Q2 FI26. 11:56 11 minutes, 56 seconds As a result, our NIM has increased from 3.63 in Q2 FI26 to 3.89 in Q3 FI26. 12:09 12 minutes, 9 seconds Fossil repricing of deposits and increase in gold portfolio with fixed rate is driving this improved NIM. For 12:17 12 minutes, 17 seconds the 9 months entered FI26, the NIM is at 3.69% 69% as compared to 3.59% for the same period in FI25. 12:27 12 minutes, 27 seconds We expect a stable NIM for Q4 as well with 10 bits plus or minus. 12:34 12 minutes, 34 seconds The other income for 9 months FI26 has increased by 16% from 748 crores sorry 12:41 12 minutes, 41 seconds to to 748 crores from 647 crores last year. Further opportunities on treasury 12:49 12 minutes, 49 seconds profits are getting limited which we are working hard to compensate through other means like insurance income processing 12:55 12 minutes, 55 seconds charges etc. Our operating profit had grown by 18% in Q3 FI26 and stood at 513 13:04 13 minutes, 4 seconds crores compared to 436 crores in Q3 FI25 which is in tune with 21% business 13:11 13 minutes, 11 seconds growth for year to for year to date that is 9 months ended FI26 it had improved to,435 13:20 13 minutes, 20 seconds crores from rupes,238 crores for 9 months ended FI2. 25 registering a 16% growth. 13:30 13 minutes, 30 seconds The total fat had grown had grown by 16%. 13:35 13 minutes, 35 seconds For 9 month entered FI26 it stood at 967 crores as against 836 crores. In the 13:44 13 minutes, 44 seconds corresponding period in FI25 on Q3 FI26 our PAT was at 332 crores as against 286 crores in Q3 FI25. 13:56 13 minutes, 56 seconds cost to income. Our cost to income ratio for Q3 FI26 stood at 48.56 14:04 14 minutes, 4 seconds compared to 49.16 in Q2 FI26 showing some decrease while for 9 month FI26 it is it is stood at 48.62%. 14:18 14 minutes, 18 seconds ROA. Our ROA for Q3 FI26 is at 1.53%. 14:24 14 minutes, 24 seconds And our 9 months FI26 ROA is at 1.55% which is over and above our long-term level of 1.5%. 14:34 14 minutes, 34 seconds To sum up, we have achieved consistent double digit growth in all the four quarters of FI25 and also three quarters for the current financial year. 14:43 14 minutes, 43 seconds We would end up in high team growth for FI26 which will be over and above the industry level growth. Our focus 14:50 14 minutes, 50 seconds continues to be in the areas of core MSME gold loan and security retail. Our deposit growth will be aligned with the credit growth with focus on CASA and 14:59 14 minutes, 59 seconds granular deposits. The effects of CR cut will have some positive bias in the next quarter as well as in our NE levels. ROI 15:08 15 minutes, 8 seconds is expected to remain at the current level of 1.5 plus and our cost to income ratio remains in the range of 48 to 50 15:15 15 minutes, 15 seconds for financial year 26. Thanks a lot to everyone. Happy to take the questions. 15:23 15 minutes, 23 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone 15:31 15 minutes, 31 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use answers while asking a 15:39 15 minutes, 39 seconds question. Ladies and gentlemen, we will wait for a moment while the question cue with symbols. 15:58 15 minutes, 58 seconds Participants to ask a question please press star and one now. 16:08 16 minutes, 8 seconds The first question is from the line of Samir Bhish from Diamond Asia. Please go ahead. 16:14 16 minutes, 14 seconds Yeah. Uh thank you for the opportunity sir and congrats on a fantastic set of numbers. Uh just wanted to understand the provisioning breakup for this 16:22 16 minutes, 22 seconds quarter. U given that it is slightly higher on a sequential basis. Does it also involve any floating or standard 16:29 16 minutes, 29 seconds asset provisions? Uh I can also see that PCR has gone up but if you could elaborate the thought process here uh I think it will be it will be helpful. 16:42 16 minutes, 42 seconds uh see uh like say we had 74 crusion for NPI visa 16:49 16 minutes, 49 seconds 40 cr for the uh last quarter and the provision for tax is almost stable at 85 16:57 16 minutes, 57 seconds both year and the standard assess provution increased from 7 cr to 22 cr. 17:01 17 minutes, 1 second See the uh logic is when I hand over I have to reduce the NPA level as much as possible and uh we have achieved our 17:10 17 minutes, 10 seconds targeted ROI of 1.3% plus and we are going for higher provision to improve 17:18 17 minutes, 18 seconds the coverage ratio and also reduce the net NPA numbers. 17:25 17 minutes, 25 seconds Yes. Okay. Fair fair enough. Thank you so much. And secondly uh if one were to look at um incrementally how should one look at slippage ratios going ahead 17:34 17 minutes, 34 seconds because we are entering a we are now on a reasonably strong growth trajectory uh and also share of retail assets continues to inch up uh so if you could 17:43 17 minutes, 43 seconds comment on that especially for 27 if you can uh share some thoughts that will be great. 17:50 17 minutes, 50 seconds See basically for many quarters now the total recoveries of live NPA and the technically return of NPI together are 17:59 17 minutes, 59 seconds more than the slipage uh numbers and uh using that and also having like say some 18:05 18 minutes, 5 seconds incre incremental provision like say we were slightly behind the pack in terms of grass and net NPA percentage even 18:13 18 minutes, 13 seconds last year which we have caught up to a greater extent. Whenever we feel that gross NP and net NP numbers are 18:21 18 minutes, 21 seconds comfortable and we can uh go for higher profits we'll be taking the call and we will be reviewing that situation and probably Vijay will also concur with me 18:30 18 minutes, 30 seconds like based on that decision the incremental credit positioning will be decided. 18:39 18 minutes, 39 seconds Sure sir. Okay. Uh that's all from my side. Uh thank you and all the best. Uh congrats again. 18:47 18 minutes, 47 seconds Thank you. Participants do ask a question. Please press star and one. 18:54 18 minutes, 54 seconds The next question is from the line of Anhama from MK Global. Please go ahead. 19:02 19 minutes, 2 seconds Um yes. So thank you for the opportunity and congratulations for a good set of results. What is basically driving up our margins? We saw your interest on 19:10 19 minutes, 10 seconds advances actually shooting up this quarter. uh despite most players reporting a rate cut is it uh that last 19:19 19 minutes, 19 seconds year or basically earlier on we had lot of interest reversals which is not happening now or the incremental loans are basically coming at the better heels 19:28 19 minutes, 28 seconds uh the MCL related uh regulatory issues that we had that also seems to be lagging behind uh so what basically 19:35 19 minutes, 35 seconds explains the jump in or advances that we see at this point of time so sir uh basically We had a repricing 19:43 19 minutes, 43 seconds on deposits as mentioned in my commentary almost 14,200 crores got repriced. This is from the deposit side 19:50 19 minutes, 50 seconds and from the advances side you know we have moved to uh fixed rate in gold loans. So that is now stable and uh in 19:58 19 minutes, 58 seconds MSME also we have targeting the numbers what we are supposed to as well in retail secured. I think the combination of these factors is helping us in getting it right. 20:09 20 minutes, 9 seconds So do you expect the interest on loans to go up further? Uh I don't think so sir quite difficult. 20:18 20 minutes, 18 seconds Okay. And your cost will keep coming down. 20:21 20 minutes, 21 seconds Yeah. Yeah. One more thing which you have to keep in account Anandama the reduced CR ratio also is helping us and 20:29 20 minutes, 29 seconds also we are operating at a slightly inched up average CD ratio. all are helping us to have a better uh uh margin. 20:40 20 minutes, 40 seconds Okay. And that basically gives you confidence that in fourth quarter margin should be largely flattish. 20:46 20 minutes, 46 seconds Yeah, that's why we have like usual as usual we have given plus or minus 10 basis point uh band. 20:54 20 minutes, 54 seconds S how should we look at fi 27? 20:57 20 minutes, 57 seconds Should the margins be in the range of about 3.9 or uh should inch up further from ask for one quarter at a time 21:07 21 minutes, 7 seconds the the uh you are still not sure how the uh like say RBA rate cuts or like 21:16 21 minutes, 16 seconds say how it is going to move and all like we thought it is by and large I mean there are multiple factors which we have 21:24 21 minutes, 24 seconds to look into but whatever that happens Our endeavor is to like say have it like say that 3.5 to 4 is what we had done in 21:34 21 minutes, 34 seconds the like say previous cycle for few quarter that stability is what we are targeting and trying to work out 21:41 21 minutes, 41 seconds but if assuming there is no rate cut then you should expect a stable to better margin next year. Yes. Yes. 21:49 21 minutes, 49 seconds The secondly what is driving up your other opex during the current quarter? It was 254 crores versus 21 230 crores last 21:55 21 minutes, 55 seconds quarter. It is more related to business cuz there was some oneoff over here. 22:01 22 minutes, 1 second No, I think it's almost same. It looks flat. We had at 455 crores in Q2 and we are at 484. 22:11 22 minutes, 11 seconds So majorly it's going to be technology expenses and salaries. Uh nothing much. 22:17 22 minutes, 17 seconds You have actually taken the labor code inside this quarter in see fortunately uh uh like say right from the beginning 22:26 22 minutes, 26 seconds the the the changes in like say you have to calculate based on the basic plus DA we are not getting impacted because uh 22:34 22 minutes, 34 seconds right from the beginning our calculations on the retal benefits and all are almost I mean everything is based on the basic plus DA basis only. 22:42 22 minutes, 42 seconds It was not purely based on the basic and also that both the things would come above 50% is also not making any impact 22:51 22 minutes, 51 seconds us only thing is impacting us in a minor form is like say 22:57 22 minutes, 57 seconds the graduity you have to give for even one year unlike what it was 10 years in the past for which we don't expect a big 23:06 23 minutes, 6 seconds impact and all we have not yet got the uh like say actial calculations and all from uh our uh like say 23:15 23 minutes, 15 seconds L which is managing our fund and all expecting those things we have made a marginal provision of 2 cr for the current quarter. 23:24 23 minutes, 24 seconds Okay. And sir, EC provision you made last quarter. This quarter you not made any also about four crores we have made. 23:33 23 minutes, 33 seconds Okay. In your P sorry this quarter we have not made any incremental provision for ECL. 23:45 23 minutes, 45 seconds Okay. So you expect uh you you going to make it next quarter? 23:49 23 minutes, 49 seconds Yeah. See basically the after that SMA numbers are coming down we we are seeing some moderation and based on the 23:57 23 minutes, 57 seconds requirement and clarity we will be taking that we are like say just keeping a tab on that and trying to look out how we can take it forward. 24:06 24 minutes, 6 seconds Sure. And so lastly uh the RBA supervision would be over by now hopefully you would have got the final report. Any observations over there in 24:14 24 minutes, 14 seconds terms of PSL or anything else that you want to highlight? 24:17 24 minutes, 17 seconds No. uh uh I think if you remember we had that heat about 3 years back 24:24 24 minutes, 24 seconds after that this year cycle is over and uh nothing to so far so good and nothing to declare to market. 24:32 24 minutes, 32 seconds Great sir thanks thanks thank you the next question is from the 24:41 24 minutes, 41 seconds line of padka from 361 capital please go ahead. 24:46 24 minutes, 46 seconds Yeah. Uh hi sir, thanks a lot for the opportunity. So my first question is uh your uh gold loan portfolio within 24:53 24 minutes, 53 seconds agriculture has declined uh on a 2% uh on a few basis. So anything to uh read 24:59 24 minutes, 59 seconds into that? That's my first question. My uh second question is uh what proportion of the deposits are yet to be repriced 25:07 25 minutes, 7 seconds in uh quarter 4? Uh and my third and the last question is uh within the uh within 25:14 25 minutes, 14 seconds the overall advances last time around you quoted that you know there's a 500 cr renewable energy portfolio uh you 25:21 25 minutes, 21 seconds know which is slightly higher in lean than your core MSM portfolio. So so just you know within the overall advances 25:29 25 minutes, 29 seconds what what proportion is the is these high portfolio and what would be that proportion say 2 3/4 down the line. Yeah those were my question. Thank you. 25:40 25 minutes, 40 seconds So gold loans uh uh uh we don't expect much. It's almost it's an agricultural gold loan which has come down and uh 25:48 25 minutes, 48 seconds it's again based on the season harvesting and other things. So we don't expect that I think uh it should be back to normal. So nothing much 25:56 25 minutes, 56 seconds materialistically in this. With respect to the next question of repricing of deposits, another 26:03 26 minutes, 3 seconds another 10,782 crores to go. Uh uh this is a repricing uh which is going to happen in the next couple of quarters. 26:12 26 minutes, 12 seconds Uh so this is on your second question. 26:15 26 minutes, 15 seconds Sorry I missed your third question. I'm sorry sir. 26:18 26 minutes, 18 seconds Yeah. Yeah. So third third question was so last time uh in the last quarters con call you had mentioned that you have started doing renewable energy portfolio 26:26 26 minutes, 26 seconds which was around 500 crores uh as of Q2 uh and and you know there was certain other segments where you are earning you 26:34 26 minutes, 34 seconds know slightly higher yield uh than your core NSM portfolio. So just trying to understand uh you know what uh uh what 26:42 26 minutes, 42 seconds what are those segments and and what would be the proportion of those segments say you know two three quarters down the line. 26:51 26 minutes, 51 seconds uh see uh like say I think you are linking what we got from the IFC when we sold uh we are that is the purpose is 26:59 26 minutes, 59 seconds kept for the uh solar and many of our customers are asking and that is a slow 27:06 27 minutes, 6 seconds and steady progress and our expectation is that we should be able to complete that before the completion of the calendar year 2026. 27:17 27 minutes, 17 seconds So the progress is slow and steady uh uh without much issues so far. 27:24 27 minutes, 24 seconds Okay. Okay. Thank you. 27:29 27 minutes, 29 seconds Thank you. The next question is from the line of B from Dam Capital Advisor. Please go ahead. 27:37 27 minutes, 37 seconds Hi sir, good evening. Congrats on a great set of numbers. Just few questions. One is that what is the uh growth outlook from here on? So we've 27:45 27 minutes, 45 seconds seen a very strong loan growth. Uh you had guided in the last quarter that we may also do something around 1820. It's 27:53 27 minutes, 53 seconds more than that. So how do you see that from here on sir? As explained in the uh uh summary we are expecting it to mid to high te. 28:03 28 minutes, 3 seconds So we will continue to grow like this mid to high te I think you can expect it from this. 28:10 28 minutes, 10 seconds And sir if I want to ask a follow up on that is what CD ratio we are comfortable on uh from here on it was 86 most 28:19 28 minutes, 19 seconds we wanted to be between 85 to 86 that's the number which we are looking at okay 85 to 86 is where we are comfortable at 28:27 28 minutes, 27 seconds yeah yeah right so can you give some data on this u how much is e fixed mr 28:34 28 minutes, 34 seconds as a share in our loans e around 48%age 28:40 28 minutes, 40 seconds MC are around 17 and 32% by way of fixer rate for gold loans and 3% towards uh 28:48 28 minutes, 48 seconds glass NPA and 3% is for 28:55 28 minutes, 55 seconds okay okay got it and u last question was on uh write off uh we've seen uh write 29:04 29 minutes, 4 seconds off going up a bit uh quarter to quarter last quarter we had of course quarter quarter it has fallen But as a number still uh looks like we growing about 29:13 29 minutes, 13 seconds plus,000 cr. What is the thought process there and what is entailing that write off? 29:20 29 minutes, 20 seconds See uh as I told for I think one of the uh earlier questions here we uh want to 29:29 29 minutes, 29 seconds like say have uh uh uh you you may like say there are uh the thought process involved is like this one wherever we 29:38 29 minutes, 38 seconds have we have made maximum provisions and all we are using this opportunity to like say reduce it so that the the uh 29:47 29 minutes, 47 seconds management of grass and net NPI will be better and number two it help also helps in the like say taxation purpose also. 29:57 29 minutes, 57 seconds So considering both and you can also see that we continuously have a decent stream of recoveries from the return of 30:05 30 minutes, 5 seconds assets even uh this year also we had a very uh reasonable sum. So this uh uh technical rate off is one instrument 30:13 30 minutes, 13 seconds which are which we are using for quite some time and we we we we feel comfortable with that and uh uh uh our 30:21 30 minutes, 21 seconds uh uh future also we we feel we will be continuing with the same methodology. 30:28 30 minutes, 28 seconds Sure sir and sir uh if I can squeeze one more our tax rate has been consistently lower at about 20% and we managed to 30:37 30 minutes, 37 seconds keep that for some time. Uh uh so so can that continue for some time more uh given is there some rule there uh you mentioned about right off. 30:48 30 minutes, 48 seconds Yeah it it will go as far as we are like say once again depending upon how much write offs we are doing and how much 30:55 30 minutes, 55 seconds incremental provision we are making. So it will take a comprehensive step on like say uh all these parameters put 31:04 31 minutes, 4 seconds together. uh uh this will like say probably continue for at least another 2 three or four quarters maybe even to the 31:13 31 minutes, 13 seconds completion of the next year and further future will be depending upon like say increase in your NPI uh like say 31:20 31 minutes, 20 seconds slippage cycle which we hope we should be another not less than four five quarters away. 31:28 31 minutes, 28 seconds Sure. Got it. Thank you so much and all the best for future. 31:35 31 minutes, 35 seconds Thank you. The next question is from the line of Rohan Nem from Equir Securities. Please go ahead. 31:42 31 minutes, 42 seconds Uh good evening sir. Thanks for the off and congrats on good set of numbers. Sir uh in the previous uh in the repo cut 31:49 31 minutes, 49 seconds which have happened up till now. Uh we have been able to manage by not by by uh uh not transmitting the entire cut to the borrowers. So for the 25 cut that 31:59 31 minutes, 59 seconds has happened in December like will that be a complete transmission or we will be able to manage the lower cut and has that got reflected in the yield this quarter? 32:08 32 minutes, 8 seconds Yeah. Uh what about the rate cut uh uh which has happened by December uh this has completely got transferred to the customers and uh there is nothing much left in EBLR. 32:20 32 minutes, 20 seconds So effectively 25 business point has got transmitted. Yes. Yes. 32:24 32 minutes, 24 seconds for all the loans which are in India. So we have 30% in yeah 30% in gold loan 32:33 32 minutes, 33 seconds those portions will not get that this thing. So that's why the overall impact will be less than like say whatever 32:41 32 minutes, 41 seconds like say 25 basis point and just to give you our overall annual impact because of this rate cut comes to about 40 odd cr 32:49 32 minutes, 49 seconds 45 cr which translate into about 11 cr per quarter because of this last rate cut whatever we had and uh one thing is 32:58 32 minutes, 58 seconds that in this third quarter it has happened only towards the like say last one month or 33:06 33 minutes, 6 seconds But this impact will be there for the all the three months in this current quarter. But you will be having that compensation from the 33:14 33 minutes, 14 seconds benefits we are getting on the repricing of term deposits which vijanand gave a figure of about 14 to 17,000 crores or 33:21 33 minutes, 21 seconds something like that. So with that taking both these things into account only we are like say we said based on our 33:30 33 minutes, 30 seconds expectation that our name will be by and large stable may even have an upward bias but will be in the band of plus or minus 10%. Sure. 33:41 33 minutes, 41 seconds Just on the yield on the MSN portfolio, how would it have moved in the last 9 months? This is March to December. MSM 33:49 33 minutes, 49 seconds average MSM MSME we are maintaining at 9 five the yield is more or less same. So 33:57 33 minutes, 57 seconds there is nothing much uh materialistically uh broadly no changes in the quarter slo 34:06 34 minutes, 6 seconds it was it would have been at a similar level in March. 34:09 34 minutes, 9 seconds By and large by and large yes same nothing plus or minus 10 15 pips nothing materically not a big difference sir 34:18 34 minutes, 18 seconds on the uh standard effect provision of 22 crores this quarter is it only linked to the increase in the balance sheet or is there any other component here 34:26 34 minutes, 26 seconds only increase in the balance sheet sure and uh sir with the reduction in SMA like where do we stand on the ECL 34:35 34 minutes, 35 seconds requirement ECL provisions versus the requirements So we uh I mean we have in fact 34:42 34 minutes, 42 seconds discussed about this in the I think last quarter or I think uh even on the second quarter we discussed that at length. Uh 34:51 34 minutes, 51 seconds and we are seeing like say negative bias even in that requirement in the last couple of hours because of the lower SMA 35:01 35 minutes, 1 second numbers. uh you can probably get the details from the I think last quarter or first quarter. Last quarter only. Yeah, last quarter contract. We have discussed at length on these numbers. 35:13 35 minutes, 13 seconds Right. Uh sure. But as for the assessment as of 3 to also clearly said I will not be giving 35:20 35 minutes, 20 seconds any exact number till other banks give the exact numbers. I I stand to that statement. I will not be the one of the 35:27 35 minutes, 27 seconds first banks to give that. uh but I can what I directionally I have given everything possible with which you can 35:35 35 minutes, 35 seconds make your own assessment and after I declared that there is still downward bias on that requirement is what I can add. 35:43 35 minutes, 43 seconds Sure sir. Sure. Thanks. Thank you a lot. 35:50 35 minutes, 50 seconds Thank you. The next question is from the line of Subramanyan K from Capital. Please go ahead. 35:57 35 minutes, 57 seconds Hi sir. Good evening. Come back to good set of numbers. My first question is what are the segments in retail facing competition and how is the yield for 36:05 36 minutes, 5 seconds each segment has changed after the retail? 36:09 36 minutes, 9 seconds So uh uh sir retail uh our major focus is on LAP and uh home loans and of course we are leveraging our rural 36:17 36 minutes, 17 seconds branches for affordable home loans. Uh LAP I think we are down by 20 25 what we 36:25 36 minutes, 25 seconds used to do before. What advantage we are getting is our DSA sourcing so-called third party sourcing is negligible. We 36:32 36 minutes, 32 seconds don't go beyond 105 percentage. So that's giving us a benefit. So as we speak uh the lap is 36:39 36 minutes, 39 seconds around 9.5 9.4 9.5 affordable in uh rural we have been consistent basis of brand sourcing and that's giving us a 36:47 36 minutes, 47 seconds double digit yield. So there is uh uh in home loans we are always at uh around 8.8 to 9%. That's been our code. 36:57 36 minutes, 57 seconds Yeah, just to add to uh Vijayan's uh comments and also just to give a right perspective to your uh question 37:07 37 minutes, 7 seconds uh uh after the rate cut in the uh like say RBI rate cut 37:13 37 minutes, 13 seconds new uh at industry level we are not seeing any like say equal or substantial 37:20 37 minutes, 20 seconds reduction on the new files procured. So the by and large uh like say 37:28 37 minutes, 28 seconds old rates are holding up because of like say uh liquidity position in the overall industry and we had a few weeks when we 37:37 37 minutes, 37 seconds could even uh what do you call negotiate increase in the rates also. 37:45 37 minutes, 45 seconds Okay. Okay. Okay. Number two overall overall speaking on weighted average basis there is some downward push but it 37:53 37 minutes, 53 seconds is not like say exactly uh correlating with the 25 basis point rate cut it is somewhere in between. 38:03 38 minutes, 3 seconds Okay. Yeah. My second question is on the deposit. So deposit is currently growing at a low team base. So going forward how do you think this would be growing at a high base? 38:14 38 minutes, 14 seconds See the uh uh we have given like adding the uh CD and other things both have 38:21 38 minutes, 21 seconds grown by to 21%age is what you are seeing from on pointto-point basis and far as the what we have seen is that it 38:30 38 minutes, 30 seconds is not that every quarter the growth rate of deposits and growth rate of advances will match there are 38:37 38 minutes, 37 seconds fluctuations here and there as explained by ED Mr. Jand the focus is on for us is 38:45 38 minutes, 45 seconds on retail term deposits and also granular CASA and we don't have anything 38:55 38 minutes, 55 seconds to currently suggest that like say the deposit growth will not be matching with the uh credit growth or whatever it is 39:04 39 minutes, 4 seconds uh both deposit and credit growth on overall business basis on a what do you call one year full basis I suggested ED Mr. 39:14 39 minutes, 14 seconds It will be in like say in fact earlier we used to say low to mid tins now we are seeing mid to high te some amount of 39:23 39 minutes, 23 seconds positive bias we are able to see and we don't get any threatening now or to 39:32 39 minutes, 32 seconds suggest that we will not be having sufficient deposit growth and all that could be quarterly operations to manage 39:39 39 minutes, 39 seconds that liquidity position only we have we have made trials on the certificate of deposits and understood the process and all and keeping it as a backup. One or 39:47 39 minutes, 47 seconds two quarter liquidity management can be done by that but overall growth rate of uh uh our business will be from the 39:55 39 minutes, 55 seconds retail term deposits uh granular kasa and also on advances front MSME gold loan and uh security retail. 40:06 40 minutes, 6 seconds Okay. Okay. Thank you. 40:12 40 minutes, 12 seconds Thank you. The next question is from the line of Pam Subramanyan from Invest. Please go ahead. 40:19 40 minutes, 19 seconds Hi sir, good evening. Uh thanks for taking my question. Uh firstly on the quarteronquarter opex growth um so there is no meaningful change in our channel 40:29 40 minutes, 29 seconds sourcing or payments to DSAs or any such thing right because the quarter quarter opex growth is up and if not um you know 40:36 40 minutes, 36 seconds what is driving this some color and how we should think about this going ahead. 40:40 40 minutes, 40 seconds Okay. Very very negligible for DSA payout. As I said couple of minutes before uh the DSA sourcing is hardly from 10 to 12% for us. So uh uh there is 40:49 40 minutes, 49 seconds no uh DSA the uh uh ju just to give you a perspective 40:56 40 minutes, 56 seconds in uh third quarter there will be a proion for the Diwali bonus and things like that. Last year if you look into 41:04 41 minutes, 4 seconds our salary increase between Q2 and Q3 it was like say depending upon where we give it was 178 41:13 41 minutes, 13 seconds to 196 about 18 cr growth was uh last year it happened in the fourth quarter and some amount of quarterlyations will 41:21 41 minutes, 21 seconds be there based on when we give our like say the variable pay and other things for our these things. So there is an 41:29 41 minutes, 29 seconds increase of about on on salary between Q3 and Q2 and Q3 about 67 crores and 41:38 41 minutes, 38 seconds about 30 cr in the overall operating expenditure in that depreciation also 41:45 41 minutes, 45 seconds increased from 25.7 cr to 29 cr another 4 cr like that in a different items 41:52 41 minutes, 52 seconds another item basically on GST uh taxation payment so it increased from 41:58 41 minutes, 58 seconds 12.25 cr in the Q2 to 21 cr in the Q3 9 42:03 42 minutes, 3 seconds cr. So this uh uh uh the the 35 cr 42:11 42 minutes, 11 seconds 29 cr incremental uh cost uh the breakup is coming from about four Q2 to Q3 break 42:18 42 minutes, 18 seconds up of increased salaries about 3 4 cr the GST payment by about 8 cr and the 42:27 42 minutes, 27 seconds depreciation about 4 cr like that it is getting segregated among multiple head counts that 42:35 42 minutes, 35 seconds depending upon the the situation it is overall cost to income ratio whatever we had indicated during the year beginning 42:44 42 minutes, 44 seconds it is holding up and feel in fact there is a small reduction in the overall cost to income ratio also 42:52 42 minutes, 52 seconds fair enough sir so largely all business as usual uh so nothing as nothing nothing abnormal in the pattern 43:00 43 minutes between Q2 and Q3 okay Fair enough. Sir, next on the gold loans, if you can uh tell us what is the 43:08 43 minutes, 8 seconds LTB on sourcing roughly and on book also. Uh at the onboarding time, it's around 65. 43:15 43 minutes, 15 seconds When you add the uh interest for the one-ear period for all the non-aggree gold loan, it comes to 72 or 73. 43:25 43 minutes, 25 seconds 72 including the interest. Okay. Yes. 43:28 43 minutes, 28 seconds Okay. And on your book basis on average roughly you would have an idea. Now after the increase in the gold price it's worked out to around 55%age to the overall portfolio. 43:39 43 minutes, 39 seconds Okay. Okay. So fair amount of equity is there. Uh okay that that part is clear. 43:44 43 minutes, 44 seconds Uh thirdly sir uh how to think about growth going into FI27? Uh I mean I I heard in the opening commentary we are clearly surpassing our normal trend 43:53 43 minutes, 53 seconds line. Uh this is our best growth since FI 18 as you called out. But how to think about uh growth going into next year? 44:01 44 minutes, 1 second So we have given uh what do you call lot of uh uh sentences on this question 44:08 44 minutes, 8 seconds asked and you are asking a question for which we have not any we don't have any written answers with us but what we can 44:15 44 minutes, 15 seconds uh you can you have to you can infer is that we earlier we said we will be growing from low to mid teens. So now we say mid to high teens. 44:27 44 minutes, 27 seconds So this is the substancy. 44:31 44 minutes, 31 seconds Okay, fair enough. Uh congratulations on the quarter sir. Thank you so much. 44:37 44 minutes, 37 seconds Thank you. Participants who wishes to ask a question please press star and one. 44:48 44 minutes, 48 seconds Anyone who wishes to ask a question may press star and one. Now the next question is from the line of 44:57 44 minutes, 57 seconds Goravjani from Praas Sri Ladder. Please go ahead. 45:01 45 minutes, 1 second Thank you sir and congrats. Uh just one question on the gold book right? Uh you mentioned 30% of your total uh book is gold right? 45:13 45 minutes, 13 seconds Yes. 45:14 45 minutes, 14 seconds Okay. Uh and that is fixed rate. So what will be the tenure of these loans? 45:19 45 minutes, 19 seconds For agree it may be in the range of 18 months to 24 months whereas for non-aggree it's around uh 12 months. 45:28 45 minutes, 28 seconds Okay. So uh within 12 months these can be repriced. Yes. Okay. Okay. That's it. Thanks. 45:40 45 minutes, 40 seconds Thank you. As there are no further questions from the participants. With that I now hand the conference over to management for closing comments. 45:50 45 minutes, 50 seconds uh uh thank you all uh for attending this conference and uh if you have any more uh questions you can always contact 45:59 45 minutes, 59 seconds Mr. J Raman or our ED Mr. uh Vijayan and uh as I explained to you like say 46:08 46 minutes, 8 seconds the uh so I have successfully completed my uh uh uh 59th quarter and uh uh so 46:16 46 minutes, 16 seconds far so good things have have been working out well and I think going from here on every uh parameter you will 46:23 46 minutes, 23 seconds start to see improvement. So with this few words I once again thank you all for joining and also thanks to Ambit for 46:30 46 minutes, 30 seconds arranging this Thank you all. 46:34 46 minutes, 34 seconds Thank you ladies and gentlemen. On behalf of Amit Capital Private Limited, that concludes this conference. Thank you for joining us.