City Union Bank Ltd — Q4 FY26

City Union Bank Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Gj5BmCS3I70 Published: 2 weeks ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the City Union Bank Limited Q4 FYI26 earnings conference call hosted 0:08 8 seconds by Ambbit Capital. As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions 0:17 17 seconds after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing star then zero on your 0:25 25 seconds Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Jignial from 0:33 33 seconds Ambit Capital. Thank you and over to you sir. 0:38 38 seconds Yeah, thank you Bind and good evening everyone. On behalf of Ambbit Capital, I would like to thank the management of City Union Bank for allowing us the 0:46 46 seconds opportunity to host Q4 FI26 earnings call. We have along with us Dr. N. 0:53 53 seconds Kamakuri MD and CEO, Mr. R. Vijan, executive director, Mr. V Romesh, executive director and Mr. J. 1:02 1 minute, 2 seconds Sadhagupar, CFO. I will now hand over the call to Mr. Dr. D. N Tamakuri, MD 1:09 1 minute, 9 seconds and CEO of City Union Bank for his opening remarks. Over to you sir. We are all [clears throat] hearty. 1:18 1 minute, 18 seconds Welcome to all of you for this semester call to discuss the audited results of fourth quarter in the financial year ending 31st March 2026. 1:28 1 minute, 28 seconds I hope all of you have received the results and the uh presentation. 1:33 1 minute, 33 seconds As you all know it has been 15 years since I was appointed as the MD and CEO of this prestigious institution with 1:40 1 minute, 40 seconds over 120 years of legacy. As you all know as per the regulation in force I'm completing the maximum permissible 1:48 1 minute, 48 seconds tenure of 15 years on 30th April 2026 and I have to hand over the responsibilities of this great 1:55 1 minute, 55 seconds organization to my successor. Hence with this investor call I'm signing off and passing on the reign to my successor 2:03 2 minutes, 3 seconds Shri Vijayan who will take charge with effect from 1st May 2026. 2:09 2 minutes, 9 seconds This con call is my 60th call to the uh investor community and I am happy to see and interact with some of them since my 2:18 2 minutes, 18 seconds first con call. My congratulations to my uh thanks to all of you and special thanks particularly to those with whom 2:27 2 minutes, 27 seconds we have been traveling over 15 years. uh at this juncture when I look back my long journey spanning over one and a 2:34 2 minutes, 34 seconds half decades I could relish many moments which are kindling my joy and satisfaction if I look back at the 2:43 2 minutes, 43 seconds performance of the bank during my stint as the MD and CEO. I have done my best and feel satisfied with the level of 2:50 2 minutes, 50 seconds progress the bank has achieved during this uh uh tenure. Of course uh uh many more things could have been done but uh 2:58 2 minutes, 58 seconds uh uh whatever that has happened in 15 years is really uh satisfying and uh I would like to uh summarize few uh like 3:07 3 minutes, 7 seconds say points before I get into the progress of financial year 2026. 3:14 3 minutes, 14 seconds During this uh uh 15 years uh tenure uh uh the bank has uh uh uh achieved many uh milestone. 3:22 3 minutes, 22 seconds Uh if you look into the uh paid up capital between 2011 and 2026 3:29 3 minutes, 29 seconds increased from 41 cr to 74 cr about uh uh just under two times growth which we 3:37 3 minutes, 37 seconds have achieved without diluting the uh capital like without burning uh the capital without much increase in the 3:44 3 minutes, 44 seconds overall weight of capital. We have done that and we have seen the deposit during the 15 years increasing by six times. 3:53 3 minutes, 53 seconds Advances increasing by seven times. 3:56 3 minutes, 56 seconds Total business increasing by about seven times. Net profit increasing by about six times. Uh the number of branches 4:05 4 minutes, 5 seconds increasing by uh four times. The total number of staff members increasing by three times. market capitalization 4:13 4 minutes, 13 seconds increasing by,815 cr to 19,450 cr which is about 11 times 4:20 4 minutes, 20 seconds or c of 17 percentage in this 15 years and the net worth of the bank increased 4:27 4 minutes, 27 seconds from,7 cr to 10,459 cr which is almost 10 times increase with the c of 17%age 4:36 4 minutes, 36 seconds during this uh period. I take this opportunity to offer my sincere thanks to various stakeholders 4:45 4 minutes, 45 seconds uh be it shareholders, customers, employees, regulators and uh uh everyone who supported the 4:53 4 minutes, 53 seconds bank and stood with us in this journey uh uh which has happened during these 15 years. I also request you to offer this 5:02 5 minutes, 2 seconds unwavering support to my successor Shini Vijayan whom I am sure will take the bank to newer heights with your blessings and support and I wish him 5:10 5 minutes, 10 seconds good luck being the last quarter since I'm not going to get this opportunity again. I will go through the numbers and 5:18 5 minutes, 18 seconds I will hand over the mic to my successor for sharing the outlook of financial year 27 and beyond and I will be 5:24 5 minutes, 24 seconds discussing with you the progress which happened during the last year. 5:30 5 minutes, 30 seconds During this uh fourth quarter two of our independent directors of the board Shri V and Shivash Shankar and Dr. read that 5:38 5 minutes, 38 seconds I retired and admitted their office on close of business hours of 6th February after completion of 8 years train 5:47 5 minutes, 47 seconds on the board meeting held on 2nd February 2026 board of directors had approved the co-op option of Siri Burman 5:54 5 minutes, 54 seconds as additional director of the board the capacity of the independent director who is a char and seasoned IT executive with 6:02 6 minutes, 2 seconds the expertise in various fields like information technology including artificial intelligence risk management and all and shareholders 6:11 6 minutes, 11 seconds have already given their appoint approval for reappoint through the postal ballot. In the board meeting held 6:17 6 minutes, 17 seconds today, board had inducted Shri R. Moan as additional director. Uh he's known and uh he had served the board as the non-executive chairman earlier. 6:29 6 minutes, 29 seconds They will be uh strengthening the uh board to take it to the uh like say greater heights. 6:35 6 minutes, 35 seconds uh if we uh look into the uh earlier con calls uh we had shared with you our expectations for the current financial 6:43 6 minutes, 43 seconds year that is the financial year 20 uh uh 2526 as follows. uh like we said we will 6:50 6 minutes, 50 seconds end up with the high team growth for the financial year 2026 uh which will be over and above the industry level growth and the focus will 6:59 6 minutes, 59 seconds continue to be in the areas of core MSME gold loan and secured retail and we said our growth of deposits will be aligned 7:07 7 minutes, 7 seconds with the credit growth with the focus on KA and the granular term deposits and we said the effect of CR will have some 7:14 7 minutes, 14 seconds positive bias in the uh fourth quarter along with uh uh like say min levels 7:21 7 minutes, 21 seconds holding up. He also said that the ROI is expected to be like say 7:28 7 minutes, 28 seconds around the same level of 1.5%age what we were having during the first three quarters and our cost to income ratio 7:36 7 minutes, 36 seconds will be in the range of about 48 to 50 percentage and all. We also shared our 7:43 7 minutes, 43 seconds uh slippage for the whole year will be about 700 to 750 compared to about 800 cr plus during the uh financial year 2025. 7:54 7 minutes, 54 seconds By and large almost all the expectations whatever we shared with you in the earlier town calls for the financial 8:00 8 minutes year 2020 were uh met in the the same spirit whatever we had shared with you during the fourth 8:09 8 minutes, 9 seconds quarter and year ended at 31st March 2026 we have registered highest business growth of the uh like in the past three 8:17 8 minutes, 17 seconds decades with the growth level achieving about percentage in the total business in the year on year After the financial 8:24 8 minutes, 24 seconds and uh after the financial year 2013 this is the uh we are this is the highest growth rate whatever we had done 8:33 8 minutes, 33 seconds in between we had say we we we moderated the growth in a in a steady fashion 8:41 8 minutes, 41 seconds which helped us to uh like say cross through so many um um currents which were in the banking industry in the last 8:49 8 minutes, 49 seconds 15 years like uh by not participating in the uh uh like say corporate advances uh 8:58 8 minutes, 58 seconds unsecured retail and all. Um in fact uh one of the reasons like say when we feel 9:08 9 minutes, 8 seconds like say satisfied with the way of progress in the last 15 years is not because I did something great or I did 9:15 9 minutes, 15 seconds something innovative or I did something new. It is more because we had successfully avoided many pitfalls be it 9:23 9 minutes, 23 seconds the uh let's say corporate consortiums or infrastructure lending or unsecured retail and all which had in fact dented 9:31 9 minutes, 31 seconds the asset quality of the entire banking system and most of the banks got affected and we were uh very few banks 9:38 9 minutes, 38 seconds which stayed clear of those sectors and not getting affected because of the many like say cyclones which are happening in 9:46 9 minutes, 46 seconds the uh industry and we fortunate to go through that and the growth is also continuing in the same 9:53 9 minutes, 53 seconds like say areas and the composition like be it gold loan particularly focusing on the agility gold loan and also through 10:01 10 minutes, 1 second the uh uh secured retail or secured MSN and we have not yet like say as digital 10:09 10 minutes, 9 seconds we have not ventured into say risky areas with lot of fluctuations and all 10:15 10 minutes, 15 seconds so uh we were able to achieve this 24 percentage growth whatever we had achieved last year purely through just 10:23 10 minutes, 23 seconds focusing on the like say areas which we had done in the past like say staying 10:29 10 minutes, 29 seconds clear of like say any input fall that's one satisfying thing which has come in fact the secured retail of like say 10:39 10 minutes, 39 seconds secured MSM or secured retail like housing loan loan against properties and all uh the the verticals which we had 10:46 10 minutes, 46 seconds created and has in fact increased the capacity helping helped by the new gen and other loss software with the 10:54 10 minutes, 54 seconds processor set and perhaps giving the feeling that the the the best of CUB is yet to come and probably will be having 11:02 11 minutes, 2 seconds many more milestone in the years to come under the uh uh leadership of my uh successor. So we have registered about 11:11 11 minutes, 11 seconds 26%age advanced growth for the Q4 financial year 26 and it increased to 66,698 11:18 11 minutes, 18 seconds cr uh from the 53,600 66 cr compared to the same period last year. As explained 11:26 11 minutes, 26 seconds earlier this is the highest credit growth for our bank. We achieved this uh 25 percentage plus growth rate after 11:33 11 minutes, 33 seconds almost uh 13 years. As we said in our last few con calls, the growth is consistent 11:41 11 minutes, 41 seconds starting from the Q1 and we had achieved a double digit in fact Q1 financial year 25 and we have achieved a double digit 11:49 11 minutes, 49 seconds growth over the last eight quarters up to the Q4 financial year 26. In Q1 alone our advances have grown by over 5,800 11:58 11 minutes, 58 seconds cr. For the full financial year the incremental credit growth is 13,600 cr. 12:04 12 minutes, 4 seconds As given earlier, our focus will be on core MSME, gold loan and secured retail and we will continue with the targeted 12:12 12 minutes, 12 seconds growth of mine to high with about two to three percentage over and above the uh system growth rate as we had been 12:20 12 minutes, 20 seconds consistently communicating to all of you on deposit front. So deposit growth matched with that of the uh credit 12:28 12 minutes, 28 seconds growth. for deposits have grown by 23%age and stood at 78,38 cr for Q4 financial year 26 as compared 12:37 12 minutes, 37 seconds to 63,526 cr in Q4 financial year uh at the end of the uh Q4 in financial year 25 the uh in 12:47 12 minutes, 47 seconds fact if you had observed the the growth had been granular and through like say both kasa and retail department we had 12:55 12 minutes, 55 seconds in fact retired uh some of the uh like uh um uh certificate of deposits in the fourth quarter getting substituted by 13:04 13 minutes, 4 seconds the uh like say retail term deposits our average CD ratio for the financial year 26 stood at 85% 13:14 13 minutes, 14 seconds the kaza percentage the total deposits stood at 28%age and it is the kaza growth is also matching with that of the 13:23 13 minutes, 23 seconds growth and in fact in the average kaza growth is also very much favorable uh let's say giving us the confidence 13:30 13 minutes, 30 seconds that let's say we can increase the growth by few percentage point more than what we had initiated during the uh 13:37 13 minutes, 37 seconds earlier period on asset quality strength also supported us which actually helped us to like say uh with the confidence 13:47 13 minutes, 47 seconds maybe go for some incremental uh like say higher growth rate compared to whatever we had uh uh communicated to 13:54 13 minutes, 54 seconds you all in the earlier calls on asset quality is the recovery is more than the slippage in the current quarter as well 14:01 14 minutes, 1 second which is the trend we have been seeing for the last several quarters. For fourth quarter financial year 26 the 14:09 14 minutes, 9 seconds total slipage is 199 cr and while the total recoveries is 231 cr consisting of 14:15 14 minutes, 15 seconds 153 cr from live NPA accounts and 78 cr from the technically return of accounts resulting in reduced NPA figures. Our 14:23 14 minutes, 23 seconds grass NPA percentage had reduced to 1.91 percentage from 2.17% in the Q3 14:31 14 minutes, 31 seconds financial year 26. The grass NPA has come below 2% mark after 11 years. It was 1.86%age 14:39 14 minutes, 39 seconds for the financial year 2015 and it has come to 1 91%age in the financial year 14:46 14 minutes, 46 seconds 26. growth both gross NPA and net NPA both in percentage terms and absolute 14:52 14 minutes, 52 seconds terms is reducing every quarter for the last three years on a continuous basis when compared to the Q4 financial year 15:01 15 minutes, 1 second 2020 the gross NPA had reduced from 3.09%age 09 percentage which is about 118 15:08 15 minutes, 8 seconds uh uh basis point reduction. Similarly uh net NPA percentage decreased to uh 68 15:16 15 minutes, 16 seconds 68 percentage that is 68 basis point in Q4 financial year 26 compared to 1.25 percentage or 125 basis point reduction 15:25 15 minutes, 25 seconds resulting in 57 basis points on year-on-year basis. Our last con call we had stated that our overall SMA 15:33 15 minutes, 33 seconds including our SMA 012 put together or in decreasing trend for the past few quarters and total SMA numbers for the 15:41 15 minutes, 41 seconds Q4 financial year 26 stood at 2.47% compared to 3.68%age in Q3 financial 15:48 15 minutes, 48 seconds year 26 and 5.60%age 60 percentage in Q2 financial year 26 uh uh showing a 15:56 15 minutes, 56 seconds sequential improvement and that improvement is also quite substantial and overall SMA 2 percentage to total 16:03 16 minutes, 3 seconds advances at stood at 72% for Q3 financial uh 26 uh compared to 95% in 16:12 16 minutes, 12 seconds the Q3 financial year 26 uh uh uh 1.34%age in Q2 financial year 26 and 16:20 16 minutes, 20 seconds 1.59% percentage in Q1. In other words, in Q1 it was 1.59 percentage. In Q2 it was 1.34%age. 16:28 16 minutes, 28 seconds In Q3 it was 95 percentage and uh currently in it is like uh you are 16:36 16 minutes, 36 seconds seeing it at 72 percentage and u the showing a sequential increase for the 16:44 16 minutes, 44 seconds last uh uh let's say four quarters. 16:49 16 minutes, 49 seconds So we are seeing this like say improved asset quality cycle and perhaps I can even say this is perhaps the best asset 16:58 16 minutes, 58 seconds quality point in terms of both SMA position also in my last 22 years of uh 17:06 17 minutes, 6 seconds stint in the bank. We are yet to see any impact of US Iran conflict and things like that. We are keeping the fingers 17:14 17 minutes, 14 seconds crossed and closely monitoring the situation. So far it has noted started reflecting in the uh uh on the asset 17:22 17 minutes, 22 seconds quality front in our uh portfolio and in fact it is showing um like say continuous improvement even after the 17:30 17 minutes, 30 seconds onset of the conflict is giving us confidence. Anyway, we are keeping the fingers crossed and monitoring the the 17:38 17 minutes, 38 seconds situation closely for the Q4 financial year 26 provision coverage ratio with technical rate of stood at 84%age 17:47 17 minutes, 47 seconds which improved from 78%age during the corresponding period last year. As we said in our last call, we are improving 17:55 17 minutes, 55 seconds our production coverage ratio without the technical rate off every quarter starting with Q1 financial year 25 to bring closer to the uh industry level. 18:05 18 minutes, 5 seconds For the current quarter, PCR without a technical rate improved to 65%age compared to 60%age uh during the 18:13 18 minutes, 13 seconds corresponding period last financial year that is financial year 25. Our interest income had also grown by 21 31%age in 18:22 18 minutes, 22 seconds Cubo financial year 26 and improved to,856 cr from,533 18:28 18 minutes, 28 seconds cr in Q4 financial year 25 for the full year ended financial year 26. Our 18:34 18 minutes, 34 seconds interest income improved to uh uh uh 6,870 crores as compared to 5,834 cr 18:43 18 minutes, 43 seconds that is 18%age growth for the uh uh corresponding figure last year. On yield 18:50 18 minutes, 50 seconds front our eon advances stood at 9.8%age 8 percentage in Q4 financial year 26 as 18:57 18 minutes, 57 seconds compared to 9.73 percentage in Q Q3 financial year 26 showing a marginal 19:03 19 minutes, 3 seconds improvement by 7% uh basis point for financial year 26 the same was 9.75% 19:11 19 minutes, 11 seconds again 9.79 percentage in the financial year 25 on the cost side the cost of deposits stood at 5.6%age 36 percentage 19:20 19 minutes, 20 seconds for the current year compared to 5.57 percentage for the Q3. As a result, our net interest margin uh stood at 3 87%age 19:30 19 minutes, 30 seconds in Q4 uh compared to uh 3.89 percentage in Q3. It is almost like say hardly 19:38 19 minutes, 38 seconds about two basis point plus or minus and within the narrow band which we uh said 19:45 19 minutes, 45 seconds last year during the earlier con calls for the year ended 31st March 2026 19:53 19 minutes, 53 seconds the net interest margin is 3.74%age uh which is 14 basis point more than the 20:00 20 minutes 3.6%age 6 percentage whatever we reported in the financial year 2025 we expect the stable net interest margin 20:09 20 minutes, 9 seconds for the current financial year uh 27 with almost uh say in the same narrow 20:16 20 minutes, 16 seconds band of maybe 5 to 10 basis point this way or that way but we hope to maintain that and what we have to now understand 20:25 20 minutes, 25 seconds is that because of the changes in the u calculations of uh uh the uh uh LCR 20:33 20 minutes, 33 seconds there are like say the the the we are getting lot of elbow room in say even having uh like say even slightly 20:42 20 minutes, 42 seconds increased uh um credit deposit ratio which will be having some uh like say 20:48 20 minutes, 48 seconds positive uh uh uh um contribution to the overall margin. uh we service whatever 20:56 20 minutes, 56 seconds potential uh like say uh increase in the cost or reduction in the yield uh which may result because of the changes in the 21:05 21 minutes, 5 seconds economic condition because of the uh uh US irran conflict or whatever it is some amount of elbow room is available there 21:14 21 minutes, 14 seconds in managing that the total other income for the financial year 26 increased by 21:21 21 minutes, 21 seconds 16% to uh 339 9 cr from 898 cr in the financial year 25 with the limited opportunities in the uh treasury profit. 21:31 21 minutes, 31 seconds Uh it has happened because of the uh compensating contribution through the other means like the insurance commission processing charges and other 21:40 21 minutes, 40 seconds uh fee income. So our operating profit had grown by about 20%age in financial year 26 and increased to 2014 cr 21:49 21 minutes, 49 seconds compared to,679 cr in financial year 25 which is aligned with the uh business growth. The part 21:58 21 minutes, 58 seconds growth in the current quarter is 360 cr with the 25%age growth compared to 288 crores in the fourth quarter last 22:06 22 minutes, 6 seconds financial year. Our current quarter part is highest in so far in the single quarter. If you look back a decade ago 22:14 22 minutes, 14 seconds in financial year 14, our part was uh let's say the annual part was uh uh uh 22:20 22 minutes, 20 seconds 347 cr and the current part is more than that. has happened over a period of time for for the year ended the financial 22:28 22 minutes, 28 seconds year 26 we had 326 cr against,24 cr uh last year showing an 18%age uh uh 22:37 22 minutes, 37 seconds improvement in the profit after tax on year-on-year basis. Our cost to income ratio for the fourth quarter improved to 22:46 22 minutes, 46 seconds 46.15%age compared to 48.56 percentage in the Q3 and 49.16%age 22:53 22 minutes, 53 seconds in the Q2 last year showing like say about couple of basis point decrease for 23:01 23 minutes, 1 second the year under financial year 26 the cost to income ratio is 47.93% which is in line with our guidance of 23:10 23 minutes, 10 seconds like say 40 to 50% percentage for the uh year as a whole. Our return on assets for the cubo financial year 26 for the 23:17 23 minutes, 17 seconds full year is 26. Financial year 26 is at 1.56%age which is uh on par with your long-term 23:26 23 minutes, 26 seconds average growth over the uh 15 year uh tenure. If you had a chance to look into the consistency number over the last 15 23:36 23 minutes, 36 seconds years except during the three years of uh COVID uh uh for financial year 2021 23:43 23 minutes, 43 seconds and 22 uh we had always been like say about 1.45 for 30 plus almost in all quarters 23:52 23 minutes, 52 seconds at at least for 12 10 quarters or so it is above 1 5 percentage is what we had uh 24:02 24 minutes, 2 seconds demonstrated over the uh period of time for your uh reference the the the summary numbers are given to just to 24:11 24 minutes, 11 seconds give you a look. So overall the the the 15 years had been rewarding and uh to 24:19 24 minutes, 19 seconds greater extent satisfying. So those were uh things could have been uh better and uh uh uh but the uh uh the challenge has 24:29 24 minutes, 29 seconds been uh to ensure that we don't get into any pitfalls and like say we had to greater extent navigated through 24:37 24 minutes, 37 seconds multiple uh cycles be it like say even during the uh uh the 2008 global 24:45 24 minutes, 45 seconds financial crisis I was the executive director I was part of the system then we had were uh the AQRS gold price crash 24:53 24 minutes, 53 seconds of 2014 uh demonetized session and the uh introduction of the GST. So these 25:02 25 minutes, 2 seconds things were affecting the core sector of emer which we were supporting but we could manage that but the covid was 25:09 25 minutes, 9 seconds something which unexpected. So in those period we had to do that the uh uh uh digital transformation and all which had happened has started uh giving results. 25:20 25 minutes, 20 seconds So uh uh so far so good. So we have uh to to thank you all in person. In fact, 25:28 25 minutes, 28 seconds I'm coming to Bombay and we have we have arranged for Thanksgiving um dinner 25:35 25 minutes, 35 seconds tomorrow preceded by the analyst to meet when I I will be meeting all of you in person. Uh uh I extend my heart 25:45 25 minutes, 45 seconds invitation to all of you to join in person uh tomorrow uh for the uh con 25:51 25 minutes, 51 seconds call by uh uh uh uh uh 5:30 at Grand Dat 25:57 25 minutes, 57 seconds BKC. U it will be followed by get together and uh dinner. Uh looking 26:04 26 minutes, 4 seconds forward to uh meet you all. Before we get into the question and answer session, I request our ED and MBNC 26:13 26 minutes, 13 seconds designate to share his uh expectations for the financial year 26 27 that we 26:21 26 minutes, 21 seconds will discuss. Thank you sir. 26:29 26 minutes, 29 seconds Um are you audible sir? Thank you. Yes sir. Perfect. Correct. 26:34 26 minutes, 34 seconds So uh in terms of vision for 2627 with respect to advances uh we should be uh 2 3% over and above the current growth of the industry. 26:46 26 minutes, 46 seconds However, our focus on MSME will remain same. Gold loans and secured retail will be an additional enhancer. 26:54 26 minutes, 54 seconds MSME proportion will continue to dominate with 55 60%. followed by jail with 30 to 35% and remaining we are planning to do this through security 27:03 27 minutes, 3 seconds take we will focus more on branch business now that we have uh have thousand distribution branch channels our 27:11 27 minutes, 11 seconds business through third party on a overall bank we envisage uh to be only between 1 to 2% hence our focus on 27:19 27 minutes, 19 seconds secure products will continue for the year our endeavor on CDR continues to be 85 27:25 27 minutes, 25 seconds to 87% based on the credit growth Um we are launching segment specific product for women and senior citizens and we are also enhancing the product 27:34 27 minutes, 34 seconds proposition in savings and current account. 27:37 27 minutes, 37 seconds With respect to free income to other income we will be in the range of 55 to 60% as like last year contribution contribution of fee income to other 27:44 27 minutes, 44 seconds income. The only thing what we see here is uh normally we open the branches only on the third and fourth quarter of every year. Now in the first month we have 27:53 27 minutes, 53 seconds opened 70 branches in the first month itself. We expect an elevated operating expenses for the current year in the range of 15 to 18% over the last year. 28:02 28 minutes, 2 seconds Uh this is about uh what we have planned for the years. 28:09 28 minutes, 9 seconds Uh yeah um I um regard to add this uh point of opening our uh thousandth uh uh 28:16 28 minutes, 16 seconds branch. Uh I'm I'm happy to announce that today morning we completed the opening of the thousandth uh branch near 28:24 28 minutes, 24 seconds our headquarter Kumba. So we wanted to achieve my achieve this milestone uh before I uh let on my office. So what we 28:33 28 minutes, 33 seconds have done is that every year we open about 75 branches and last year also we opened 75 we closed the year with uh 28:41 28 minutes, 41 seconds about 950. So for the 75 branches the first of branches about 50 branches we 28:48 28 minutes, 48 seconds opened in the first month itself in the April itself. So the remaining 25 will get opened towards the uh uh uh year 28:55 28 minutes, 55 seconds end. So the the point is that um like the the same case of 75 branches will is what we expected to grow and as Vijanand 29:04 29 minutes, 4 seconds said normally like we will have branches getting opened in the fourth quarter and they used to majority of them like say 29:13 29 minutes, 13 seconds coming close to like say break even in the first year and some of them slipping into the second year. So there will be 29:20 29 minutes, 20 seconds uh some changes in that thing but overall u level on a macro level they are going to add for our increased uh 29:30 29 minutes, 30 seconds distribution capacity which I forgot to tell. So uh uh uh uh with this probably we can get into uh Q&A 29:39 29 minutes, 39 seconds uh um like for futuristic questions will will answer and for the present and past 29:47 29 minutes, 47 seconds I will I would like to answer to that extent possible and uh if I'm not able to do justice will chip in. 29:58 29 minutes, 58 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 their touchstone 30:07 30 minutes, 7 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to please use handsets while 30:15 30 minutes, 15 seconds asking the question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. 30:38 30 minutes, 38 seconds Participant may press star and one if you wish to ask questions. 31:07 31 minutes, 7 seconds Ladies and gentlemen, to ask a question, you may press star and one on your touchstone telephones. 31:15 31 minutes, 15 seconds Our first question is from the line of J Mundra from ICIK securities. Please go ahead. 31:22 31 minutes, 22 seconds Yeah. Hi, good evening sir. Uh thanks for the opportunity and uh many congratulations and uh you know for for 31:29 31 minutes, 29 seconds the meaningful uh career at City Union Bank and driving the bank uh to a very impressive height and creating 31:37 31 minutes, 37 seconds shareholders value. Uh sir my u first question is regarding gold loan right so 31:44 31 minutes, 44 seconds uh so far uh the gold loans have grown at a much faster pace than overall loans and I believe this is not an asset 31:53 31 minutes, 53 seconds quality issue at all uh but I just wanted to understand the risk practices here uh in the sense that let's say in 32:00 32 minutes January Feb uh from the peak of gold loan prices uh gold prices have come down by 10 15% so how do We managed the 32:09 32 minutes, 9 seconds risk management for those portfolio which have been originated at let us say 32:15 32 minutes, 15 seconds uh 165 rupees uh gram of uh 10 grand gold loan. So if if a loan gold loan was 32:24 32 minutes, 24 seconds originated at 165 rupees uh whereas it has come down by 10 15%. So how do you how do you um you know uh while at the 32:32 32 minutes, 32 seconds portfolio level the LTV is very uh respectable very manageable but how do you manage the risk in those portfolio? 32:42 32 minutes, 42 seconds See uh thankfully we had the uh like say experience of uh uh 2014 when you had a 32:50 32 minutes, 50 seconds similar gold price crash which gave us some uh what is that sleepless nights 32:56 32 minutes, 56 seconds and uh but ultimately we we ended up not missing much but about had to book a loss of about 5 crores or something like 33:05 33 minutes, 5 seconds that only but we had to go through a painful process of auctioning and things like that. So keeping all those things 33:12 33 minutes, 12 seconds into account when the uh like say gold price crossed beyond say 12,000 u rupees 33:21 33 minutes, 21 seconds and uh things like that we did not increase the per g rate beyond that. So 33:30 33 minutes, 30 seconds when it went to that 15,000 15,000 and all we had continued to give at the uh range of about uh around 10,000 rupees 33:39 33 minutes, 39 seconds per gram or not we had never crossed uh 10,300 or something like that. So we 33:46 33 minutes, 46 seconds have sufficient uh uh like say cushion built into uh that uh like say gold 33:53 33 minutes, 53 seconds loans which were issued when the share price was at that level as we had higher like say margin when we gave that loan. 34:03 34 minutes, 3 seconds So that is not giving us like say any concern at this point of time and uh 34:10 34 minutes, 10 seconds even if another like say 10 15%age is unlikely 34:17 34 minutes, 17 seconds like say we will still be having like say this is in addition to the RBI given 34:24 34 minutes, 24 seconds u say LTV margins and all we have sufficient cushion at this point of time so uh that is not a concern at this 34:32 34 minutes, 32 seconds point of Okay. So I mean even irrespective of gold loan prices you would have kept per 34:38 34 minutes, 38 seconds gram gold lending at what we said,100 repeat right? 34:45 34 minutes, 45 seconds Yes. uh uh uh not only us uh uh almost the uh uh entire banking industry it had 34:52 34 minutes, 52 seconds the discipline and there was no undue competition or in in particularly rates when you are I mean the the the what 35:01 35 minutes, 1 second goes up has to come down um that's something which we always uh uh like say keep in mind so when the increase in the 35:09 35 minutes, 9 seconds price was too sharp we we all had a white and water policy and uh uh I I 35:15 35 minutes, 15 seconds don't think any bank ever gave uh any um like say per rate beyond 11,000 and even 35:22 35 minutes, 22 seconds 10,500 was something just maximum even at the peak level of 15 16,000 whatever that happened. 35:31 35 minutes, 31 seconds Okay, great. Great to know you sir. Uh secondly, uh on cost of deposit and yield on advances, right? For this 35:38 35 minutes, 38 seconds quarter, now cost of deposit have reported cost of deposit has increased by three basis points. Does this mean 35:46 35 minutes, 46 seconds that you know uh if there is no change in the rates in the deposit rates card rate the cost of deposit should start 35:55 35 minutes, 55 seconds rising or you know there is some something which was unique to this quarter and next quarter we should still 36:02 36 minutes, 2 seconds see cost of deposits uh moderating or how how to look at cost of deposit incrementally have they bottomed now 36:10 36 minutes, 10 seconds since see the the uh like say There were like say some amount of finetuning when we 36:20 36 minutes, 20 seconds saw the uh what is that advanced growth rate uh increasing at a much faster rate 36:27 36 minutes, 27 seconds some amount of uh 10 15 20 25 basis points that we had to fine-tune the rates to ensure that uh we get uh retail 36:37 36 minutes, 37 seconds term deposits as usual in the flow so that uh uh uh we are not stopping the credit growth for not having the deposit 36:45 36 minutes, 45 seconds per se. But what I have to say is that it it gave us a sufficient cushion so that we could even retire the high cost 36:54 36 minutes, 54 seconds uh like say what do you call certificate of deposits and uh uh uh things like that. See the the the uh one thing what 37:01 37 minutes, 1 second you have to keep in mind is that the three basis point five basis point difference and all could happen even 37:08 37 minutes, 8 seconds because of the variations in the average kasa rates and all these are all two like say finer things you can monitor 37:17 37 minutes, 17 seconds and control you have to just report to whatever that comes into but what I can say is that there was no significant 37:24 37 minutes, 24 seconds changes that happened in between to that and in fact that's We could almost have incremental 3D 37:31 37 minutes, 31 seconds ratio of 100%age. We can in fact let's say for the still maintaining liquidity coverage ratio we can go for another 37:38 37 minutes, 38 seconds 3,000 crores of advances without increasing the deposits at all to that much elbow room is also available. These 37:46 37 minutes, 46 seconds sort of practical decisions we take depending upon the day-to-day ALM and u the regulations which are prevailing and 37:55 37 minutes, 55 seconds uh don't read too much into three basis point but yeah what is available to you 38:03 38 minutes, 3 seconds you can it is very much on the table is that on one side you you had seen the rates getting reduced by the uh uh 38:11 38 minutes, 11 seconds central bank at the same time you saw the 10-year bond yields increasing. 38:16 38 minutes, 16 seconds There were dichomous response with the like say liquidity, market rate, uh bank rate and uh rates 38:25 38 minutes, 25 seconds given by the central banks and all. uh they are not like say uh going in tandem which they normally used to do during 38:32 38 minutes, 32 seconds the normal uh uh like say industrial I mean normal business environment because of uh uh so many changes uh due to the 38:41 38 minutes, 41 seconds like Iran war when you saw lot of fluctuations in the flight of capital from one place to other like there are 38:50 38 minutes, 50 seconds so many factors which were happening but uh we had even So like say we had 38:59 38 minutes, 59 seconds terrifying like say fluctuations and signals in the like say TV panels. Um the the operating level there was 39:08 39 minutes, 8 seconds absolutely smooth and we did not have uh uh uh any uh issue and uh but uh 39:16 39 minutes, 16 seconds how long this calm will continue whether it will continue like this or whether it is a calm before storm. Yeah, all these 39:23 39 minutes, 23 seconds things depend upon how long the conflict goes there, whether you will have um let's say higher inflation because of the oil prices and things like that. 39:34 39 minutes, 34 seconds Some other factors are there but up to this don't read too much into this three four basis points and 39:40 39 minutes, 40 seconds right and just similarly on yield on advances you know um there was a 25 basis point rate cuts um even for the 39:49 39 minutes, 49 seconds last six or maybe 12 months the yield on advances are only even on a y basis is only down by 13 basis point uh in the 39:58 39 minutes, 58 seconds mix we had higher proportion of gold so that that is what may be helping But have you passed on uh I mean I'm sure 40:06 40 minutes, 6 seconds you have passed on the 25 basis point and the NCLR book is also has that also been repriced. So assuming no change in 40:14 40 minutes, 14 seconds the RBI policy rate how should one look at the yield on advances incrementally. 40:21 40 minutes, 21 seconds See uh you may remember I think in the last concing uh rates was completed somewhere in the 40:29 40 minutes, 29 seconds month of December. If I remember correct or we specifically gave that and that part is true the incremental uh book uh 40:39 40 minutes, 39 seconds let's say for example it's a new contract and uh the the incrementally the the uh uh weighted average yield is 40:48 40 minutes, 48 seconds like say is holding up and that's why we are able to have as I as you rightly said 30%age of our book is in gold alone 40:57 40 minutes, 57 seconds which is in the fixed rate and non-aggree gold loans are having even double digit uh uh yields. So uh even 41:06 41 minutes, 6 seconds though you have only that mathematically speaking only that whatever yield it will be only to that like say 65 uh 41:15 41 minutes, 15 seconds percentage of the portfolio or cost and incrementally the the uh the yields are 41:23 41 minutes, 23 seconds holding up and that's why we are able to see the uh margins holding to a greater extent. 41:30 41 minutes, 30 seconds Right. So you did pass on the rate but you may have tweezed the spreads right. Is that also helped sir? 41:39 41 minutes, 39 seconds Repeat the question. 41:41 41 minutes, 41 seconds I think sir you would have passed on the rates but the spreads you would have managed better. Right. So that is why 41:48 41 minutes, 48 seconds the yield did not drop as much uh apart from the gold loan and the exchange. 41:54 41 minutes, 54 seconds Exactly. That's why I said the the uh uh uh since 30%age uh plus is on the 600 42:01 42 minutes, 1 second rate maybe about uh remaining 70 you can perhaps take apart from the other loans 42:08 42 minutes, 8 seconds and all about say 2/3 uh would have had that uh let's say passing on and that's 42:16 42 minutes, 16 seconds why uh and incremental whatever the 5,000 odd cr we booked in the uh second 42:22 42 minutes, 22 seconds of since we were able to like say look at the with the enhanced incremental yield overall we were able to maintain 42:30 42 minutes, 30 seconds the market right and uh second last question on ROA right so we have delivered very stable 42:38 42 minutes, 38 seconds 1.5 1.55 uh% kind of an RO maybe 1.56 this quarter uh when do we achieve the 42:47 42 minutes, 47 seconds next level sir I mean the growth is now come back very very strongly a margin hopefully as you should be more or less 42:54 42 minutes, 54 seconds stable. Uh so when do we go to the next level? Uh let's say 1.7 1.8% ROA is um I 43:02 43 minutes, 2 seconds mean what would be your sense for the next year? Uh ROA for technically speaking it is a 43:10 43 minutes, 10 seconds futuristic question for which Vijay and this will answer before handing over the mic. Uh uh maybe I can say one thing. 43:19 43 minutes, 19 seconds the uh uh like uh uh uh you have started seeing in your Dupoint analysis the 43:27 43 minutes, 27 seconds operating profit margin has started holding up and uh uh the we had to go for extra provision for NPA because we 43:36 43 minutes, 36 seconds had I mean honestly speaking somewhere around uh like say 2013 14 we decided to 43:43 43 minutes, 43 seconds have our net NPA always above 1%age because keeping it less than 1% percentage was not giving us elbow room 43:51 43 minutes, 51 seconds to maneuver things and it was giving us extra mental pressure to like say manage and that was reasonably good compared to 43:59 43 minutes, 59 seconds the uh like say peers in the sector that was the time when the A2 and all started 44:07 44 minutes, 7 seconds and the things were much worseer for the industry as a whole and we wanted to use that space to have higher things. So now 44:15 44 minutes, 15 seconds since the industry environment has changed when stage by stage when we had to uh as as you know during the covid 44:24 44 minutes, 24 seconds period there was the cage ratio increased by about 1 percentage more than normally we used to have two which has come down substantially that two in 44:33 44 minutes, 33 seconds fact increased to 3% during the covid period the data is already there with you and the recoveries were also not 44:40 44 minutes, 40 seconds happening because of the codes were not functioning so because of that last two three years we had to make substantial 44:47 44 minutes, 47 seconds provision to continuously uh um reduce the grass NPA and net percentage and thankfully uh because of 44:56 44 minutes, 56 seconds the like recoveries more than the uh slipages and also making more corrosions we are able to have the coverage ratio also improved. So since it has reduced 45:05 45 minutes, 5 seconds maybe after it reaches further down maybe we will get some extra elbow room 45:12 45 minutes, 12 seconds even after making proions for your uh ECL proions and all. There will be some cushion which can improve. 45:22 45 minutes, 22 seconds Uh but it is uh not fair on my part to explain further over to please. 45:29 45 minutes, 29 seconds uh uh absolutely here uh uh I think uh we should exit uh this year with at 45:35 45 minutes, 35 seconds least 10 bits more in ROA so we should be there between 1.65 to 1.666 666 45:42 45 minutes, 42 seconds that's the number uh probably we will plan bases the retail income deliverable and little bit of cost income coming 45:49 45 minutes, 49 seconds down that's the endeavor to get there okay great great sir and last question 45:57 45 minutes, 57 seconds sir on your association yeah one minute up as we are talking 46:04 46 minutes, 4 seconds looks like the ECL provision has come a particular has come looks like it has now asked the banks to adjust in the 46:14 46 minutes, 14 seconds opening balance itself in the reserve so that no impact on the P&L and since we 46:20 46 minutes, 20 seconds have 20% plus like say I don't think 46:26 46 minutes, 26 seconds the ECL provisioning requirement may not be there in the future which is also a good news uh uh which we just we 46:35 46 minutes, 35 seconds are receiving go ahead The last question is sir uh on your 46:42 46 minutes, 42 seconds association of course after uh limiting the executive role um I mean u sorry what is the plan ahead do you intend to 46:51 46 minutes, 51 seconds be there as a as a non-executive director or you know that is not uh confirmed as yet or how how do we uh see 47:00 47 minutes that transition to that thank you see uh I mean I'm I'm like say honored 47:07 47 minutes, 7 seconds by this question and uh in let's say it how say in fact 47:15 47 minutes, 15 seconds board also like say expressed uh it it asked me to like say asked for 47:23 47 minutes, 23 seconds my u uh um comfort to join the board in the non-executive capacity which have uh 47:30 47 minutes, 30 seconds um like say I said I mean I'm honored for that offer so it depends upon the uh regulatory uh comfort 47:39 47 minutes, 39 seconds um uh uh looking into the comfort of the regulator at appropriate time a call will be uh taken in um future whatever 47:48 47 minutes, 48 seconds time frame uh on getting the acceptance you have uh on the on the comfort of the 47:55 47 minutes, 55 seconds uh uh regulator we will be uh taking a call on this front. At the same time uh 48:01 48 minutes, 1 second board has asked me to be the uh like say post relinquishing the post. They have 48:08 48 minutes, 8 seconds uh uh offered me an honorary position as the uh chairman of the student banks foundation which is the uh uh uh what is 48:17 48 minutes, 17 seconds that uh CSR arm of the uh uh bank. um the uh to to oversee oversee the 48:25 48 minutes, 25 seconds implementation of the CSR projects and all uh in in recognizing the position and the the same was offered to my 48:34 48 minutes, 34 seconds predecessor also and he continued for like the the my predecessor and guru. 48:42 48 minutes, 42 seconds So he continued as Indian CEO. When I took over in 2011 as Indian CEO, he was the non-executive chairman of the board. 48:50 48 minutes, 50 seconds After he had to retire after completing his 8year tenure or whatever the regulatory 48:59 48 minutes, 59 seconds 75 years or whatever. So after 70 years regulatory what 70 years or whatever 70 49:06 49 minutes, 6 seconds years at that point of time. So after that uh uh board offered him the position of citizen bank foundation and 49:14 49 minutes, 14 seconds uh uh he had like relinquished that position um to me. So uh post my um like 49:24 49 minutes, 24 seconds say uh uh the uh laying down the office as uh Indian CEO of the bank u I'll be 49:31 49 minutes, 31 seconds like say I'm honored to take the position of chairman citizen bank foundation and uh any non-executive in 49:40 49 minutes, 40 seconds the uh bank or the board and all it depends upon the uh regulatory comfort 49:46 49 minutes, 46 seconds uh uh getting a once we get a positive feedback uh uh we'll take a call on the board will take a call 49:56 49 minutes, 56 seconds right very clear sir thank you and all the very best sir thanks a lot 50:03 50 minutes, 3 seconds thank you ladies and gentlemen to ask a question you may press star and one our next question comes from the line of MB 50:11 50 minutes, 11 seconds Mahes from Kotak securities please go ahead uh sir thanks a lot uh it's been it's 50:20 50 minutes, 20 seconds been amazing 15 years that you have given us uh trying to understand the bank and the sector in detail. Uh just two questions from my side. One is uh 50:29 50 minutes, 29 seconds internally at the board level do you have an upper limit on how much of gold loans can the bank take and has there been any change recently? 50:38 50 minutes, 38 seconds number one and the second question when you look at the demand for FM loans that you're seeing on the ground um if you 50:45 50 minutes, 45 seconds could just kind of give some color as to is this just simply uh working capital utilization that is going up uh taking 50:53 50 minutes, 53 seconds advantage of raw material prices cash flow mismatches what is the nature of the demand that you're seeing on the ground or are you doing much higher uh 51:02 51 minutes, 2 seconds balance transfers as compared to what you did earlier these are my two questions thank 51:10 51 minutes, 10 seconds So in uh uh yeah thank you uh when you said you're trying to 51:19 51 minutes, 19 seconds understand the bank uh maybe at le I think in 15 years is a long time to understand I think I hope 51:27 51 minutes, 27 seconds you have like say that part is true because you have been interacting for quite some time and thanks for all the uh uh uh support and interaction 51:35 51 minutes, 35 seconds whatever we had See on gold loan basically like uh um the the the 30 to 51:43 51 minutes, 43 seconds 31 32 itself is like say we are almost at the upper band um 51:51 51 minutes, 51 seconds like say even if it is uh what is that sweet uh 51:59 51 minutes, 59 seconds you will not be able to take beyond couple of cups or so like you need limit for everything maybe there could be that 52:08 52 minutes, 8 seconds one or two percentage here and there like say increase like it's not that don't ask you said you have you said you 52:15 52 minutes, 15 seconds you have upper limit at 30 why are you at 31 321 so that the one or two percentage fluctuations could be there 52:22 52 minutes, 22 seconds but uh when it crosses 30 at least we have to take it with a pinch of salt is the approach which we keep for the gold 52:31 52 minutes, 31 seconds loan and uh this is something which we have to like accept on the MSME front. It's a the the 52:42 52 minutes, 42 seconds growth is because of the combination of all the factors which you mentioned. In fact, you may recall when the RB policy 52:50 52 minutes, 50 seconds statement was given out. It in fact talks about the capacity utilization of the economy has in fact increased. I 52:59 52 minutes, 59 seconds mean which went to about 70% post to covid. You will normally see capacity expansions happening in the uh like say 53:06 53 minutes, 6 seconds when it crosses uh like say uh uh u 84 85 percentage and all you are able to see things reaching there and we could 53:14 53 minutes, 14 seconds see uh like say many of these units have are uh like say reaching their near 53:23 53 minutes, 23 seconds capacity level. They are going for expansion the utilization of the CC limit and also transfer of balance 53:30 53 minutes, 30 seconds transfer. All these things are happening and in fact when you compare that with the uh lowest uh SMA level which you are 53:39 53 minutes, 39 seconds seeing particularly in this geography where we are having a significant portion of our uh 53:47 53 minutes, 47 seconds exposure uh the the it's a combination of all the factors which you mentioned. 53:56 53 minutes, 56 seconds Just uh one clarification, when will you start uh tightening the the filters on on underwriting as in what will it take 54:05 54 minutes, 5 seconds for you to decide saying that things on the ground is starting to get a little bit more riskier than before given that we know where the fuel prices are and we 54:12 54 minutes, 12 seconds know that there will be some impact on demand. What will it take for you to tighten the on 54:20 54 minutes, 20 seconds numerical number will be your SMA numbers first part? Second uh uh thing 54:27 54 minutes, 27 seconds will be the anecdotal feedbacks which you which you get from the uh customers. See day in and uh day 54:36 54 minutes, 36 seconds out uh like say when we are at our even when I am at the central office at least every day uh like say we will be having 54:45 54 minutes, 45 seconds not less than like say four customer interactions when uh people who meet us 54:51 54 minutes, 51 seconds will be of reasonably maybe not a very small one they'll be medium level thing and all so we will be even though we we 55:00 55 minutes we sit in our office or we go visit the branches and all and during the uh 55:07 55 minutes, 7 seconds reviews the anecdotal the combination feedbacks from the the the feedbacks from the the anecdotes which we get from 55:14 55 minutes, 14 seconds our branch managers from the customers we meet day in and day out coupled with the SMA numbers what we are seeing uh we 55:25 55 minutes, 25 seconds will we will we will get a feel that's how over the last 15 years um to to greater extent whatever I had 55:34 55 minutes, 34 seconds felt it dur during this interaction. I have shared with you all during the town call. Uh so the the uh the common sense 55:44 55 minutes, 44 seconds says that you have to uh enter into the uh tougher period uh because of like say 55:52 55 minutes, 52 seconds your inflation or global prices or things like that and uh we are closely monitoring the situation keeping our 55:59 55 minutes, 59 seconds eyes and ears on the ground to get the feedback. So basically like uh uh but one thing which you have to to see very 56:08 56 minutes, 8 seconds clear is um particularly the the the business loans whatever we are giving uh 56:16 56 minutes, 16 seconds they like say for example there could be finer like say changes in the filters and all whenever the filters which what 56:26 56 minutes, 26 seconds we are trying to fit is like uh every borrower we give at least You should be 56:33 56 minutes, 33 seconds convinced it is that like they have sufficient like say resilience to run over through multiple business cycles. 56:42 56 minutes, 42 seconds Maybe like the that incremental rate of maybe one or two percentage extra may come because of this economic cycles and 56:49 56 minutes, 49 seconds all the filters what we get keep is basically the like they are uh what is 56:57 56 minutes, 57 seconds that business cycle agnostic because we need when we give loan maybe it looks 57:04 57 minutes, 4 seconds the figures are rosy maybe 6 months down the line if the economic downturn if at all it happens it is going affect all 57:13 57 minutes, 13 seconds the existing customers also. So the the the filter whatever we are we keep will not okay we we we go with some extra 57:22 57 minutes, 22 seconds caution that is one thing but at the same time we have to be very clear that unless and 57:30 57 minutes, 30 seconds that happens and all in other business cycles and all the the the the underwriting and all 57:38 57 minutes, 38 seconds like we normally look into multiple business cycles and not just for like one or two downturns through which you 57:45 57 minutes, 45 seconds According to sir so one last question uh what proportion of the loans would now be covered under the CGDMS scheme or any 57:55 57 minutes, 55 seconds other scheme of the government it's it's very minuscule um Jan do you have the data with you I don't think it is going to be more than 34% 58:04 58 minutes, 4 seconds and you think it's not useful to take a cover no see there are yeah multiple things 58:11 58 minutes, 11 seconds one like say when you ask for the uh the the most of the customers when you deal with they are happy with giving extra 58:20 58 minutes, 20 seconds collateral and taking loans with the lesser rate rather than paying BCG me 58:28 58 minutes, 28 seconds okay sorry was saying a number I just wanted to just take a note of that sir I'm sorry 58:37 58 minutes, 37 seconds mostly around two to three percentage that's all to perfect sir okay thank you sir 58:44 58 minutes, 44 seconds thank Thank you. Our next question comes from the line of Soir from Access Capital. Please go ahead. 58:52 58 minutes, 52 seconds Uh yeah. Hi sir. Am I audible? You are audible sir. You may. 58:57 58 minutes, 57 seconds Yeah. Uh yeah. Hi. Uh thanks for taking my question sir. Uh so uh a few minutes ago you said that with the new 59:04 59 minutes, 4 seconds regulations coming in uh the banks would have to adjust through the opening balance itself and not through reserves and hence not much incremental 59:13 59 minutes, 13 seconds provisions will be required on the ECL front. However, the flow dates have been unchanged. So I would uh I was wondering if at this point you would be more 59:21 59 minutes, 21 seconds comfortable uh sharing your view on what would be the impact on the steady state costs. Yeah, that's that's all. See 59:30 59 minutes, 30 seconds at least give fortunately this uh what do you call this difficult question I have pass and 59:40 59 minutes, 40 seconds that what I have to say is that the the if you had a chance to look into that 15 59:49 59 minutes, 49 seconds years uh figure uh what we have uh uh given in your uh in our presentation 59:57 59 minutes, 57 seconds you can uh Say in fact it is there in terms of like the credit cost post 1:00:04 1 hour, 4 seconds that is that the credit cost is there post after accounting for uh uh the recoveries from the return of assets 1:00:12 1 hour, 12 seconds uh um the net provision in 201011 it was 41.1525.5 1:00:21 1 hour, 21 seconds it was 09 in 2425 and 04 in 2526 and like it is the the average works out to 1:00:29 1 hour, 29 seconds about 6 or so over the period of last 15 years. Now with the uh let's say 1:00:37 1 hour, 37 seconds improved underwriting based on the AI and the the the improved let's say loss and all 1:00:45 1 hour, 45 seconds my uh expectation is that at least there has to be 50%age reduction in this number in the next average of the next 1:00:54 1 hour, 54 seconds 15 years or so but individual years there could be operations as you move forward. 1:01:05 1 hour, 1 minute, 5 seconds Thank you. Our next question comes from the line of Sur Gpati from Mcquaryy Capital. Please go ahead. 1:01:14 1 hour, 1 minute, 14 seconds Yeah. Hi. Thank you and uh congratulations Dr. Gamagodi for a very eventful uh stint at City Union Bank for 1:01:22 1 hour, 1 minute, 22 seconds the past 15 years and best wishes for all your future endeavors sir. It's been a pleasure knowing you and interacting with you. Um my question is to uh Mr. 1:01:33 1 hour, 1 minute, 33 seconds Vijay Anand uh the the the new CEO. Um sir, what made you take this decision to 1:01:41 1 hour, 1 minute, 41 seconds join this bank? I mean you've been with RBL for about uh for a long period of time. You worked in ITACI and other 1:01:48 1 hour, 1 minute, 48 seconds institutions. How do you see Union Bank's culture here? How is it different from other organizations? 1:01:55 1 hour, 1 minute, 55 seconds um because you are of course um stepping into big shoes now. So we just wanted to know your perspective and your take 1:02:03 1 hour, 2 minutes, 3 seconds having spent now almost couple of years with the bank. 1:02:09 1 hour, 2 minutes, 9 seconds Um it's been wonderful sir. Uh I'm I've completed two years and it's almost 25 1:02:17 1 hour, 2 minutes, 17 seconds months. I think uh first of all I came from this town and uh 1:02:24 1 hour, 2 minutes, 24 seconds I come with 28 years of experience and last 15 years I think I was in Bombay from Bombay I have moved to Puma uh the 1:02:31 1 hour, 2 minutes, 31 seconds major reason why I took up this when when I was interacting with Dr. 1:02:38 1 hour, 2 minutes, 38 seconds and the board I fully got convinced I fully got convinced why should I be here. I think uh my wavelength uh my my 1:02:47 1 hour, 2 minutes, 47 seconds passion of what I wanted to do was absolutely matching with where uh software wants to take this bank to the next level. How he wants to take to the 1:02:55 1 hour, 2 minutes, 55 seconds bank to the next level and uh I felt that uh um getting into this uh 120 year 1:03:02 1 hour, 3 minutes, 2 seconds old legacy institute which is a impeccable track record and with uh the beautiful board I I I didn't even think 1:03:10 1 hour, 3 minutes, 10 seconds twice for sure. Culturally I know that I will fit because I hail from this part of the sound and uh my mother tank is of 1:03:18 1 hour, 3 minutes, 18 seconds course same what I see here while so combination of factors I think uh made me to move here for sure. 1:03:26 1 hour, 3 minutes, 26 seconds Yeah Suresh just adding to what uh thing I think this question you should have reserved for the get together tomorrow. 1:03:35 1 hour, 3 minutes, 35 seconds It's it's a busy result season so I'm not sure whether I can make it but yeah for whatever it is I mean we just thought it' be great to take his 1:03:43 1 hour, 3 minutes, 43 seconds perspective and yeah so I mean so family and everybody is relocated to Kumagonam how is he handled those dynamics because 1:03:51 1 hour, 3 minutes, 51 seconds these things are also at times important from fitting to the organization perspective right moving from Mumbai to Kumagonam 1:03:59 1 hour, 3 minutes, 59 seconds yeah my yeah my my my parents stays in this part of the town so Okay. Okay. 1:04:07 1 hour, 4 minutes, 7 seconds Okay. That's very clear. Thank you. Thank you, sir. Yeah. 1:04:13 1 hour, 4 minutes, 13 seconds Thank you. We have no further questions, ladies and gentlemen. I would now like to hand the conference over to Dr. N Kamakuri for closing comments. Over to you, sir. 1:04:24 1 hour, 4 minutes, 24 seconds Yeah. Thank you all for attending this call and special thanks to Suresh Mahesh and 1:04:31 1 hour, 4 minutes, 31 seconds because Sur andal perhaps we have been in touch more than 15 years. I think even I remember the like say interaction 1:04:41 1 hour, 4 minutes, 41 seconds we had in one of my uh uh like say travel to uh like say airport in the car 1:04:48 1 hour, 4 minutes, 48 seconds itself. uh you all had been I think almost I think uh every everyone you had 1:04:55 1 hour, 4 minutes, 55 seconds been supportive of us over the uh period of time and uh because of you all like say had a satisfying u say uh experience 1:05:04 1 hour, 5 minutes, 4 seconds with the bank and I thank you all for all the support you have given and I'm sure you'll be continuing with the same 1:05:11 1 hour, 5 minutes, 11 seconds support to uh like same sir vijana I look forward to meet you all tomorrow uh in person and where we can discuss some 1:05:20 1 hour, 5 minutes, 20 seconds more numbers and more than that it's it's a get together time when we when we meet and uh uh uh ex exchange the good 1:05:30 1 hour, 5 minutes, 30 seconds memories whatever we had over a period of time I uh thank ambit for like organizing this for over many years uh 1:05:38 1 hour, 5 minutes, 38 seconds now and I once again looking forward to meet you all tomorrow in Grand Mumbai by 1:05:45 1 hour, 5 minutes, 45 seconds uh uh 5:30 uh anybody uh let's say who had not received the invitation or like 1:05:53 1 hour, 5 minutes, 53 seconds say given RSVP kindly get in touch with Mr. Jaman whose number is given in the 1:05:58 1 hour, 5 minutes, 58 seconds uh the the presentation uh or with Rau whose number is given in the 1:06:08 1 hour, 6 minutes, 8 seconds presentation and uh so that to confirm your presence it will help us to organize things better and with this I 1:06:15 1 hour, 6 minutes, 15 seconds think uh I have completed big responsibility like say and it it had been like say 1:06:24 1 hour, 6 minutes, 24 seconds monkey is off my It's it's a it's a it's a it's a moment of relief and uh because like over the 1:06:33 1 hour, 6 minutes, 33 seconds period of time handling like say things like the the I mean I I was in fact uh 1:06:40 1 hour, 6 minutes, 40 seconds like uh um like say telling like had I known it is going to be having so much u weight probably I would have 1:06:49 1 hour, 6 minutes, 49 seconds thought multiple times before taking charge but at that point of time I was not aware that it is going to be So uh challenging and all but uh uh the the 1:06:58 1 hour, 6 minutes, 58 seconds your support and the the god had given extraordinary blessings so that all the efforts whatever we took we were able to 1:07:07 1 hour, 7 minutes, 7 seconds see results. Uh now and then a few times we had like say minor accidents and 1:07:14 1 hour, 7 minutes, 14 seconds bruises but there was no fracture or uh the bigger injury. It had been a very 1:07:21 1 hour, 7 minutes, 21 seconds satisfying tenure and with that satisfaction. I once again thank you all and looking forward to meet you all tomorrow. Thank you. 1:07:30 1 hour, 7 minutes, 30 seconds Thank you. On behalf of Ambbit Capital that concludes this conference. Thank you all for joining us. You may now disconnect your lines.