Indusind Bank Ltd — Q4 FY26

Indusind Bank Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=JpJQ--AJb_4 Published: 2 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to Anderson Bank Limited Q4 FI26 0:07 7 seconds earnings conference call. As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions 0:16 16 seconds after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on 0:24 24 seconds your touchstone phone. I now hand the conference over to Mr. Rajiv Anand, managing director and CEO of Innocent Bank. Thank you and over to you Mr. 0:34 34 seconds Anand. 0:36 36 seconds Thank you uh and good evening and thank you for joining us today. I'll start with a quick uh quick view on the macro 0:44 44 seconds environment and then go into bank specific developments. High high frequency indicators suggest that economic momentum remains healthy uh 0:53 53 seconds remain healthy through February. That said, heightened uncertainty arising from the ongoing conflict in West Asia has tempered the near-term outlook. 1:02 1 minute, 2 seconds Overall, India's macroeconomic and fundamentals are considerably stronger than during the previous crisis episodes 1:09 1 minute, 9 seconds and compare favorably with global players providing greater resilience against external shocks. Against this 1:16 1 minute, 16 seconds external backdrop, our focus this quarter was firmly on balance sheet resilience and asset quality repair. We 1:24 1 minute, 24 seconds will now move to the key highlights for Q4 uh Q4 FI26 and then cover business specific progress and financial 1:31 1 minute, 31 seconds performance. During the quarter, we remain focused on growing our core retail segments while continuing to optimize the bulk portfolio. Retail 1:40 1 minute, 40 seconds deposit mobilization which remains a key priority saw healthy traction with net addition of 6,800 crores during the 1:48 1 minute, 48 seconds quarter. All incremental deposits during the quarter were retail in nature. As a result, the share of average dep average 1:56 1 minute, 56 seconds average retail deposits as per LCR improved to 47.9 from 47.5 Q. 2:04 2 minutes, 4 seconds On the asset side, we maintain a selective approach with sequential growth in vehicle financeme and other retail segments. We're also gradually 2:12 2 minutes, 12 seconds scaling up our microloan disbursements as we consciously prioritize risk adjusted returns for the wholesale bank. 2:20 2 minutes, 20 seconds The average loan book declined 2% Q1Q. 2:24 2 minutes, 24 seconds We saw sequential improvement in slippage as well as recoveries across our retail segments. As a result, net 2:31 2 minutes, 31 seconds slippages were down 37% Q resulting in lower provisioning during the quarter. 2:37 2 minutes, 37 seconds annualized slippage were 1.71% versus 2.65% Q andQ. 2:44 2 minutes, 44 seconds The overall stress book continues to moderate with QQ declines in net NPA, net security receipts and restructured 2:51 2 minutes, 51 seconds book and these trends give us confidence that credit costs are past their peak subject to micro stability and seasonality. 3:01 3 minutes, 1 second Financial outcome for Q4. A pre- pro prevision operating profit at 2295 3:08 3 minutes, 8 seconds crores remained steady Q1 Q. Provisions at 1482 crores were down 29% Q1 Q driven 3:16 3 minutes, 16 seconds by lower net slippages. As a result, profit after tax for the quarter was 595 3:22 3 minutes, 22 seconds crores versus 128 crores Q1 Q. Cap capital adequacy remains healthy with 3:29 3 minutes, 29 seconds CT1 ratio at 16.2% CR at 17.48% providing adequate headroom to support growth. 3:40 3 minutes, 40 seconds Uh leadership team since the LA last earnings call we have onboarded our head of retail banking, head of global 3:47 3 minutes, 47 seconds markets, chief risk officer and chief information officer. Our leadership's transition is now largely completed and 3:55 3 minutes, 55 seconds the strengthened leadership team brings diverse experience and a strong execution mindset. The board today has 4:03 4 minutes, 3 seconds also approved the appointment of Jakti Jag Malaredi and Ganesh Tankaran as whole-time executive directors designate. 4:12 4 minutes, 12 seconds The board has also approved the appointment of Nesh Vikamsi and Ravi Gitiki Gitki as independent directors uh 4:20 4 minutes, 20 seconds as well. All these appointments are subject to regulatory and shareholder shareholder approval. This leadership 4:27 4 minutes, 27 seconds team reinforces my confidence to execute our strategic priorities and build a resilient and future ready institution. 4:35 4 minutes, 35 seconds With this leadership in place, our focus now shifts fully from transition to execution. 4:42 4 minutes, 42 seconds I will now take you through the highlights of individual businesses in the in our vehicle finance business maintained a healthy growth momentum 4:51 4 minutes, 51 seconds from the previous quarter along with showing meaningful improvement in asset quality matrix. Vehicle finance loan book stood at 99,876 5:00 5 minutes crores growing 2% Q on Q with dispersements for the quarter at 12,600 crores. We saw sequential loan growth 5:08 5 minutes, 8 seconds across most vehicle categories with our sustained focus on collections and recoveries. Annualized gross and net 5:15 5 minutes, 15 seconds slippages for the quarter were 1.94% and 1% respectively have been the lowest in 5:22 5 minutes, 22 seconds the last several quarters. The fullear slippage fullear net slippage were also down at 1.84% versus 2.33% YI. Asset 5:32 5 minutes, 32 seconds quality improvement was seen across all vehicle categories on a QQ basis as well as on a YI basis. Overall, vehicle 5:41 5 minutes, 41 seconds finance, one of the key pillars of the bank, has delivered another year of robust performance. While we are confident of the medium-term growth and 5:49 5 minutes, 49 seconds profitability outlook for this segment, we remain watchful in the near term given uncertainties around the implications of West Asia conflict. We 5:57 5 minutes, 57 seconds remain focused on our strategic objective of strengthening our leadership position across vehicle categories and driving market share gains in the coming years. 6:07 6 minutes, 7 seconds I will now cover microloans and other rural focused products. In microloans, asset quality saw significant 6:14 6 minutes, 14 seconds improvement in terms of collections from standard customers, fresh slippages and standard overdue books. This validates 6:22 6 minutes, 22 seconds our belief in the reinforced underwriting models introduced last year. 6:26 6 minutes, 26 seconds Micronodes gross slippage reduced to 504 crores versus 1,022 crores Q1 Q. The 31 6:34 6 minutes, 34 seconds to 90 days uh past due book declined to.9 versus 2.4 Q1 Q with the confidence 6:42 6 minutes, 42 seconds on the asset quality. We are now gradually scaling our disbbursements. 6:46 6 minutes, 46 seconds Disbburments for the quarter were at 5,400 crores up 52% Q1Q. As a result, the pace of contraction of the loan book 6:55 6 minutes, 55 seconds moderated with sequential decline reduced to 5% Q from elevated double-digit levels over the past few quarters. The decline was largely driven 7:04 7 minutes, 4 seconds by write- offs uh during the current quarter. The overall microloan book now stands at 16,782 crores with around 57% 7:12 7 minutes, 12 seconds of the portfolio cover covered under the CGFMU credit guarantee including Q4 disbbursements which are currently under 7:20 7 minutes, 20 seconds process of being covered. Overall we remain focused on scaling the microloan portfolio in a calibrated manner 7:28 7 minutes, 28 seconds balancing risk discipline with our priority sector lending requirements. In parallel, we continue to build a diversified rural portfolio across other 7:37 7 minutes, 37 seconds product segments. With asset quality stabilizing, FI27 will be a year of calibrated growth rather than book 7:44 7 minutes, 44 seconds contraction in microloans. Our merchant loan book now stands at 8,042 crores, growing 11% YI spread across 570,000 7:54 7 minutes, 54 seconds merchant borrowers. Our affordable housing book at 2,839 crores grew 24% Y 8:01 8 minutes, 1 second while KCC and other rural loans at 4,385 crores grew 3% Q1Q. Together these 8:11 8 minutes, 11 seconds initiatives position our rural and priority sector portfolio for a more stable, diversified and sustainable 8:18 8 minutes, 18 seconds growth. We're scaling our consumer banking assets with focus on overall loan book diversification and a gradual 8:26 8 minutes, 26 seconds rebalancing towards traditional secured retail products. Our home loan book maintained robust momentum with an 8:32 8 minutes, 32 seconds outstanding of 6,510 crores growing 45% Q1Q sorry 45% Y and 6% Q1Q. 8:43 8 minutes, 43 seconds We have started investing in multiple subscale secured products and they are showing encouraging trends. Monthly gold 8:50 8 minutes, 50 seconds loan disbursements have grown 3x in the last 6 months and the loan book has now crossed,000 crores. We should see more 8:57 8 minutes, 57 seconds momentum uh continuing as over 500 branches are now enabled for offering gold loans. In contrast, we remain 9:05 9 minutes, 5 seconds deliberately cautious on the unsecured segments. Personal loan book grew a personal book loan book at 10,358 crores 9:14 9 minutes, 14 seconds degrrew 2% Q1Q and the credit card loan book at 9,751 crores degrrew 5% Q1Q. 9:23 9 minutes, 23 seconds Credit card spends for the quarter however were at 15,259 crores. Consumer spends have grown 4% YI despite the drop 9:31 9 minutes, 31 seconds in cards in force due to conservative underwriting. Overall consumer banking assets at 31,075 9:39 9 minutes, 39 seconds crores grew 8% y asset quality in this segment has shown improvement with annualized net slippages improved to 9:47 9 minutes, 47 seconds 4.22% versus 5.42% 42% Q1Q our efforts of increasing share of internal source 9:55 9 minutes, 55 seconds customers should support improvement in asset quality matrix over a period of time banking we are focused on strengthening 10:04 10 minutes, 4 seconds our position inme segment which represents a large structurally attractive opportunity under the new 10:11 10 minutes, 11 seconds lead leadership we are upgrading processes risk frameworks and operating structures to more effectively capture the growth opportunity particularly from 10:20 10 minutes, 20 seconds a relatively smaller base. The loan book now stands at 44,347 crores, growing 1% Q. 10:28 10 minutes, 28 seconds We have also undertaken a detailed assessment of the potential impact of the ongoing West Asia conflict on our theme and relevant wholesale portfolios. 10:37 10 minutes, 37 seconds At this stage, we do not see any material impact on asset quality. 10:41 10 minutes, 41 seconds However, we continue to closely monitor developments and maintain active engagement with customers to manage risk. 10:49 10 minutes, 49 seconds Wholesale banking the quarter saw further refinement of the wholesale banking loan book with the portfolio now reflecting a more granular balanced and risk calibrated franchise. 11:00 11 minutes On an average the mid-market segment saw marginal sequential uptick while the continued rationalization of the large 11:07 11 minutes, 7 seconds corporate portfolio led to 6% Q decline in the overall average wholesale banking loan book. The proportion of A and above 11:16 11 minutes, 16 seconds rated customers and the weighted average rating of the wholesale banking portfolio were at 83% and 2.53 11:23 11 minutes, 23 seconds respectively. On the fee side, our focus remains on efficient sources of income with transaction banking fees 11:30 11 minutes, 30 seconds contributing 66% of the overall wholesale and theme fee incomes. Asset quality in the in the wholesale portfolio remains healthy for FI26. 11:40 11 minutes, 40 seconds Gross and net slippages were at 29 and24% respectively remaining stable y 11:49 11 minutes, 49 seconds liabilities I I will now turn to our liability franchise to begin with I'd like to welcome Jugde Manari who will be 11:57 11 minutes, 57 seconds taking over as the head of retail banking jug brings over three decades of experience across retail banking lending 12:04 12 minutes, 4 seconds credit operations and risk management during the quarter we saw sequential recovery in both average and end of 12:12 12 minutes, 12 seconds period deposits, reversing the declining trend seen over the past three quarters. 12:17 12 minutes, 17 seconds These efforts translated into a revival of retail deposit growth with net net addition of 6,800 crores. Retail deposit 12:25 12 minutes, 25 seconds accretion was supported by robust new tobank CASA acquisition leading to improvement in the overall retail CASA 12:33 12 minutes, 33 seconds mix. The share of average retail deposits as per LCR improved to 47.9% 12:39 12 minutes, 39 seconds versus 46.6% YI and 47% Q1 Q 47.5 Q1 Q 12:48 12 minutes, 48 seconds of deposits for the quarter were at 6.07 improving marginally by two basis points Q1 Q. The share of CDs in total deposits 12:58 12 minutes, 58 seconds and borrowings in total liabilities remain steady at 6.2 2 and 7.9% respectively. We maintain a healthy 13:06 13 minutes, 6 seconds liquidity position during the quarter with average LCR at 118%. 13:11 13 minutes, 11 seconds We have initiated a revamp of operating processes especially in client-f facing journeys. These steps have started 13:18 13 minutes, 18 seconds yielding results. The average TAT of account account activation for assisted digital account opening journeys were 13:26 13 minutes, 26 seconds reduced by 80% for savings account in the last 6 months. The average TAT for account activation of assisted digital 13:34 13 minutes, 34 seconds account opening journeys uh on the current account side were reduced by 63% in the last 6 months. The resultant 13:42 13 minutes, 42 seconds impact has has uh the resultant impact is enhanced customer experience with improved NPS on assisted digital account 13:50 13 minutes, 50 seconds opening journeys. The progress or ambition of unifying our distribution channels to leverage synergy. We now have over 300 vehicle branches 13:59 13 minutes, 59 seconds colllocated or merged with branch banking and aim to take this towards 600 over the next 6 to9 months. These 14:06 14 minutes, 6 seconds efforts are reflecting in increasing throughput of retail assets and liabilities along with cost synergies. 14:12 14 minutes, 12 seconds Deposit source from vehicle customers has grown 35% during the year. We believe AI and particularly Gen AI 14:20 14 minutes, 20 seconds represents a structural shift for banking comparable in scale if not greater than core banking transformations of the 2000s and the 14:28 14 minutes, 28 seconds internet and mobile banking wave in 2010. At Indiscent AI is a core strategic priority. We see meaningful 14:36 14 minutes, 36 seconds potential across customer experience, employee productivity and engagement, credit risk management and financial 14:43 14 minutes, 43 seconds crime prevention. To institutionalize this focus, we are investing in a dedicated AI center of excellence to 14:51 14 minutes, 51 seconds drive Genai adoption at scale. We have identified 10 high impact use cases across sales productivity, 14:58 14 minutes, 58 seconds conversational banking, uh credit underwriting and connections. Some of these use cases are already already live 15:06 15 minutes, 6 seconds and delivering delivering encouraging outcomes. For in for instance, our internal knowledge management application Indust Compass now has over 15:15 15 minutes, 15 seconds 3,000 daily users processing more than 15,000 employee queries each day across policies and products. In parallel, our 15:23 15 minutes, 23 seconds enterprise AI chat platform has seen strong traction with close to 3,000 daily active users and 70 interactions 15:31 15 minutes, 31 seconds per per user per day. Equally important, we are investing in building a AI ready organization. Over 9,000 employees have 15:40 15 minutes, 40 seconds already completed at least one AI training program and we expect to scale this significantly during the current financial year as part of our long-term capability capability building agenda. 15:52 15 minutes, 52 seconds I will now hand over to Viral to take you through the financial performance. 15:57 15 minutes, 57 seconds Thanks Rajie and uh good evening everyone. uh similar to the last few quarters uh my commentary will focus 16:04 16 minutes, 4 seconds primarily on sequential trends. I will begin with the balance sheet first and then talk about the profit and loss 16:11 16 minutes, 11 seconds account. So average advances dropped 2% sequentially from Q3 driven mainly by decline in wholesale banking advances 16:20 16 minutes, 20 seconds and the microloan book. uh average deposits inched up 1% supported by healthy retail deposit mobilization. 16:30 16 minutes, 30 seconds Uh average CD ratio was at 82% versus 84.4 quarter one quarter. 16:38 16 minutes, 38 seconds Share of average borrowings in total liabilities that remained steady around 8%. 16:45 16 minutes, 45 seconds Moving on to the P&L net interest income for Q4 stood at 4371 crores. 16:52 16 minutes, 52 seconds Net interest margin was at 3.39% compared to the normalized NIM of 3.35% 17:01 17 minutes, 1 second quote unquote. The improvement was driven by a reduction in the cost of funds uh reflecting lower borrowing and deposit costs. 17:11 17 minutes, 11 seconds Non-interest income at 1714 crores remained broadly stable quarteron 17:17 17 minutes, 17 seconds quarter. Our operating expenses of 3790 crores was stable quarter one quarter 17:24 17 minutes, 24 seconds adjusted for the one-off impact of 230 crores in previous quarter relating to the change in labor code. So as a result 17:33 17 minutes, 33 seconds the operating profit at 2295 crores remained steady quarteron quarter despite the lower loan. 17:43 17 minutes, 43 seconds Pop to average loans ratio was at 2.93% versus 2.84% quarteron quarter. The provisions and 17:52 17 minutes, 52 seconds contingencies figure for the quarter was at 1,482 crores uh down 29% quarteron quarter driven by a reduction in net slippages. 18:05 18 minutes, 5 seconds We had write off uh on loans amounting to 1868 crores during the quarter. 18:12 18 minutes, 12 seconds So in terms of asset quality, GNP and NNPA were at 3.43% and 1% respectively and the PCR maintained around 71%. 18:24 18 minutes, 24 seconds Uh slippages have improved across segments segment wise NPA movement details are available on slide 24 of our presentation. 18:33 18 minutes, 33 seconds Uh the SMA 1 and SMA 2 book at 17 basis points was stable quarteron quarter. Net 18:41 18 minutes, 41 seconds security receipts that declined to eight basis points versus nine basis points quote unquote [clears throat] and restructured advances declined to six 18:49 18 minutes, 49 seconds basis points versus seven basis points quote unquote the profit on tax for the quarter was at 18:56 18 minutes, 56 seconds 594 crores versus 128 crores quarteron quarter on capital adequacy we continue 19:04 19 minutes, 4 seconds to have a healthy capital adequacy and liquidity position CT1 at 18.2% 19:11 19 minutes, 11 seconds and CR at 17.48 and LCR at 118%. 19:18 19 minutes, 18 seconds Uh with that let me now hand over back to Rajie for his closing comments. 19:24 19 minutes, 24 seconds Thank you Viral. So to summarize um our performance this quarter reflects the progress we have made in strengthening the granularity of balance sheet 19:33 19 minutes, 33 seconds improving asset quality and driving a more stable retailled growth with strong leadership comfortable liquidity and 19:40 19 minutes, 40 seconds capital adequacy we believe the bank is well positioned to deliver sustainable value over the medium to long term with near-term growth remain while near-term 19:50 19 minutes, 50 seconds growth remains calibrated the trends on asset quality retail deposits and operating leverage which gives us confidence in progressively improving 19:58 19 minutes, 58 seconds returns over the medium term. With this we can now we are now open for Q&A. Thank you and over to all of you. 20:06 20 minutes, 6 seconds Thank you very much. We will now begin with the question and answer session. 20:11 20 minutes, 11 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you 20:20 20 minutes, 20 seconds may press star and two. Participants are requested to use handsets while asking a question. 20:27 20 minutes, 27 seconds Everyone is is requested to kindly limit the questions to a maximum of two per person. 20:33 20 minutes, 33 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 20:41 20 minutes, 41 seconds The first question is from the line of Riken Sha from IFL Capital. Please go ahead. 20:47 20 minutes, 47 seconds Um, hi, good evening and thanks for the opportunity. I had three questions. The first one is uh there was a reduction in the banking outlet footprint by about 20:55 20 minutes, 55 seconds 230 sequentially. Uh so what's happening there and while Rajiv you did mention that we should now think about uh growth 21:04 21 minutes, 4 seconds picking up versus contraction in the past few quarters but overall for FI27 what kind of loan growth should one 21:11 21 minutes, 11 seconds expect. So that is the first one. Uh the second question is uh if you could share the absolute quantum of AFS reserves as 21:18 21 minutes, 18 seconds of March 26 and also clarify if there was any impact from RBI's FX NOP rule and if the impact was there was it 21:26 21 minutes, 26 seconds reflected in the 4Q results already and the final question is on asset quality. 21:31 21 minutes, 31 seconds Uh so of course the slippages have come down but we clearly had more room to bring down the net NPA ratio further but instead we have seen the provision 21:39 21 minutes, 39 seconds coverage marginally going down sequentially. So when do you expect to reach your earlier guidance of 50 basis point of net NPA ratio? Is it going to 21:47 21 minutes, 47 seconds be a lot more gradual or uh we can take some accelerated writeoffs and reach there which you were earlier guiding to? Thanks. 21:56 21 minutes, 56 seconds So let me take the the first um uh let me see if I can remember the questions. 22:02 22 minutes, 2 seconds First is on business correspondent those two those 200 or the outlets it's it's just a uh it's just a function of 22:10 22 minutes, 10 seconds optimizing rationalizing you know some of these centers as a result of this uh we have basically you know sort of 22:18 22 minutes, 18 seconds reduced 200 of those uh those locations because uh they had become unviable uh as per as per the work that that we have 22:28 22 minutes, 28 seconds done. Uh the second question, credit growth. 22:31 22 minutes, 31 seconds Yeah, credit growth. Uh the the second question was around um you know growth. 22:36 22 minutes, 36 seconds Um what we what I have been talking about um over the last couple of quarters is that 26 27 should see us 22:43 22 minutes, 43 seconds grow broadly in line with uh with market uh and that's that's really what we are working towards and I think the uh the 22:51 22 minutes, 51 seconds foundations now are in place for us to be able to do that. uh the the other couple of questions I'll uh I would like request viral to 22:59 22 minutes, 59 seconds so I can cover the other two. Uh the AFS reserve was negative 50 crores. I just want to highlight that our AFS book is 23:06 23 minutes, 6 seconds not that large. It's it's quite uh small in the context of the overall investments portfolio. So it's it's uh 23:13 23 minutes, 13 seconds it's a small number negative 50 crores on EFS reserves. Uh the second question 23:20 23 minutes, 20 seconds you had was on the net NPA. Now just want to highlight uh of the entire quantum first of all you're seeing a 23:27 23 minutes, 27 seconds sequential decline right it's gone down from 3,300 to 3169 crores uh important to highlight 50% or more than 50% of 23:36 23 minutes, 36 seconds that is from the vehicles business less than 25% is now from the micro finance business so in terms of residual risk 23:44 23 minutes, 44 seconds right the CFD the vehicles portfolio you will not see that much of rate loss resulting from that net impair is 23:51 23 minutes, 51 seconds important and the constituents of that mainten as we think about the flexible risk sitting 23:58 23 minutes, 58 seconds there. Uh but yes, it would be a gradual reduction. You're not going to see a immediate write off there. We we want to 24:05 24 minutes, 5 seconds be consistent. We've been sharing that over the last few quarters that we would want to be consistent on our policies on 24:13 24 minutes, 13 seconds write off. 24:17 24 minutes, 17 seconds No, no plus that that's really not impacted us too much. uh the thing we've seen is uh the effects volatility impacting our 24:26 24 minutes, 26 seconds other assets is not really the uh the impact of um um the RBI requirements um um were not material I 24:35 24 minutes, 35 seconds mean it was in in tens of crores thank you very much I'll request you to 24:43 24 minutes, 43 seconds come back for a follow-up question next question is from the land of Kunal Sha from city group please go ahead Yeah. Uh thanks for taking the question. 24:54 24 minutes, 54 seconds Uh so uh uh post this guidance of almost system uh system average uh uh credit 25:00 25 minutes growth in terms of uh ROA, how should we uh look at the step up uh getting into FI27 and FI28. 25:10 25 minutes, 10 seconds Uh looking at where do we see margin settling down, we saw some improvement on the core names. uh and uh when we 25:19 25 minutes, 19 seconds look at it in terms of fee income so fee income particularly on the retail side was slightly weaker I understand it's 25:26 25 minutes, 26 seconds because of the cards uh looking at the breakup of the proportion uh but 1.2% 2% fee how should we see it scaling it up 25:36 25 minutes, 36 seconds uh and maybe towards like 1.5 odd percent how much of time it would take so particularly on the ROA led by 25:43 25 minutes, 43 seconds whether it would be more led by names and fee or it would be more like a cyclical credit cost which can aid the ROA improvement 25:52 25 minutes, 52 seconds so let me answer that uh so let's take the current RO as base we are at 45 basis so our journey to one uh we 26:02 26 minutes, 2 seconds looking at that coming in equal contribution both from the credit losses and from operating profit. So that's the 26:09 26 minutes, 9 seconds first split of how we get there within operating profits some improvement on name much more on fees and much more on 26:17 26 minutes, 17 seconds expense. So that's how I would bridge it because the expense base we looking at controlling that and as the asset size starts growing that's where we will see 26:26 26 minutes, 26 seconds some optimization. So broadly that's really how we are looking at the concept get back to the 1%. 26:34 26 minutes, 34 seconds Okay. So more it will be free income and what will actually drive that because this quarter it's been like better growth in terms of disbbursements across 26:42 26 minutes, 42 seconds the products but still not reflecting in terms of the overall fee. So is it like once we resolve the card it gets u uh it 26:50 26 minutes, 50 seconds gets to that level or there will be more contribution. And if you look at the break up on retail and wholesale also, it appears to be pretty uh sticky out there. Yeah. 26:59 26 minutes, 59 seconds So there is um no your comment on um uh on fees is fair, but I think that is the 27:06 27 minutes, 6 seconds that really is the opportunity you know for us to uh to go after multiple lines of fee businesses. uh your point on um 27:15 27 minutes, 15 seconds on on cards is fair but also um there's been a lot of work that's happening in terms of optimizing some of the fees 27:22 27 minutes, 22 seconds that we are charging our our customers in in some cases uh somewhat lower than 27:28 27 minutes, 28 seconds uh than industry levels. um uh some increased decrease in locker fees for 27:34 27 minutes, 34 seconds example. Um we are uh there is from a productivity perspective uh we can do 27:41 27 minutes, 41 seconds more on sale of insurance and mutual funds uh and other other uh such investment products. Uh there is work 27:49 27 minutes, 49 seconds that is happening on the uh on the transaction banking side uh to be able to uh to now start adding new lines of 27:56 27 minutes, 56 seconds business like um the capital markets piece. And finally uh we have a new head of sales uh in in treasury as well uh to 28:05 28 minutes, 5 seconds be able to uh significantly increase franchise fees on the FX side as well. 28:11 28 minutes, 11 seconds So there are multiple levers um you know all our all our work in progress and uh slowly but steadily we should see uh better fee incomes as we go forward. 28:24 28 minutes, 24 seconds Thank you very much. I'll request to come back. 28:28 28 minutes, 28 seconds A request to all the participants kindly limit yourself to two questions per participant. 28:33 28 minutes, 33 seconds Next question is from line of Abhishek from HSBC. Please go ahead. 28:40 28 minutes, 40 seconds Yeah. Hi Rajiv and team uh congratulations for the quarter and we can see the course correction happening. 28:46 28 minutes, 46 seconds Uh I think uh just in terms of your comment on loan growth you said broadly in line uh with market and foundations 28:53 28 minutes, 53 seconds are in place to achieve this. uh what is your internal assessment of market growth and uh within this how do you see 29:01 29 minutes, 1 second the uh the mix of wholesale retailme moving because you're rationalizing one part not really growing some parts and 29:08 29 minutes, 8 seconds then really growing some parts so how do we see the overall mix changing that's uh question number one uh question number two is in terms of your ROA 29:17 29 minutes, 17 seconds target uh I guess we are still sticking to the 1% exit in FI27 but I think the visibility of that is much much better 29:26 29 minutes, 26 seconds now. uh so how about a medium-term uh aspirational target right so where do you wish to eventually uh reach if you 29:36 29 minutes, 36 seconds can talk about that and a third one I'll just slip in on asset quality just in terms of mfi how much more normalization 29:43 29 minutes, 43 seconds is there to go uh in terms of slippage because on an absolute basis also it's a relatively high number and uh uh 29:52 29 minutes, 52 seconds dispersements wise we are you know still lower than Q126 and we are definitely capacitized to do you know much higher 30:00 30 minutes dispersement. So how do we see the trend going forward? So those those were the three questions. Thank you. 30:05 30 minutes, 5 seconds So so uh Abishek thank you for your um uh kind words. Um question one was where 30:12 30 minutes, 12 seconds do we see um industry growth? Um I I think industry growth for this this year should be uh you know uh everything one 30:21 30 minutes, 21 seconds needs to caveat with subject to you know how the West Asian crisis plays out. But I think notwithstanding that caveat I 30:28 30 minutes, 28 seconds think we should see 13 14% growth. I think broadly speaking we are you know give or take uh 6040 on retail to 30:36 30 minutes, 36 seconds wholesale. Uh you know one of the things I've mentioned is is that within within wholesale um we should we are uh we are 30:46 30 minutes, 46 seconds uh diving up on on the more granular businesses uh mid-corporate etc. uh and taking some money out of the 30:56 30 minutes, 56 seconds very large corporates uh and so therefore while the overall numbers may remain more or less the same but I think uh the proportionalities internally 31:04 31 minutes, 4 seconds within that uh will change um I also mentioned the fact that on the retail side u we we have already started to see 31:13 31 minutes, 13 seconds uh growth on the more traditional uh retail asset businesses uh home loans gold loans etc and I think that is 31:21 31 minutes, 21 seconds something that we will continue to build on as we go forward. uh if you remember the uh the conversation that that we had 31:29 31 minutes, 29 seconds u you know the conversation I had with all of you really was to be able to uh to convert Indocent bank into a into a 31:37 31 minutes, 37 seconds much more universal bank uh with uh with a predictable um 31:45 31 minutes, 45 seconds profit uh franchise uh and that's really what uh what we are really uh you know working on at this point in time um and 31:53 31 minutes, 53 seconds like you rightly said, uh, I think some of that, um, work is is slowly but steadily beginning to show up in the in 32:00 32 minutes the numbers as well, medium, 32:08 32 minutes, 8 seconds where could it settle at or or the 14 15% where could it get to? I mean, just some broad contours would help. 32:18 32 minutes, 18 seconds Um, sorry, on the theme side itself, uh, is that what you're saying? Yeah, just a mix. Uh, so let's say retail is at 50,me 32:27 32 minutes, 27 seconds 14 and 15 and wholesale 35. That's the broad mix. Wholesale remains where it is on an absolute basis is what I guess you 32:35 32 minutes, 35 seconds try to indicate. And what no no no no so I would I had actually added you know some part of I mean SM is a bit bit complicated some of it is 32:44 32 minutes, 44 seconds sitting in retail some of it is sitting in wholesale but broadly speaking that the that we will take money away from the very large corporates uh and put 32:52 32 minutes, 52 seconds that into uh into the mid-market and uh and franchise uh is the point that I was 32:59 32 minutes, 59 seconds making. So therefore uh while the overall numbers uh of theme plus uh plus wholesale will remain around 50 but the 33:07 33 minutes, 7 seconds composition within that will will change somewhat. Okay. Okay. Got you. 33:16 33 minutes, 16 seconds Thank you. 33:18 33 minutes, 18 seconds Next question is from Nanov Chintan from Autonomous. Please go ahead. 33:25 33 minutes, 25 seconds Uh hi uh thank you for taking my questions. Uh can I just get a little bit of detail around uh kind of uh how 33:33 33 minutes, 33 seconds much can large corporate uh shrink uh further uh and a couple of uh uh detail questions on uh kind of uh your average uh kasa balances growth in the quarter. 33:45 33 minutes, 45 seconds How much was that? You gave the average deposit growth as 1%. Uh I'm also after the average kasa uh growth if you can 33:52 33 minutes, 52 seconds give that and also any one-offs to flag uh uh uh in the NI line this quarter or is it can we take this as a very clean 34:00 34 minutes uh NI line and my final question is on uh on provisions uh uh you know you said 34:08 34 minutes, 8 seconds that say half of the journey from 45 bits to 1% ROA comes from provisions uh 34:16 34 minutes, 16 seconds you know that kind of suggests that provisions will be uh you know below it will be something like 90 basis points 34:22 34 minutes, 22 seconds of assets. Uh is that a fair post code for you? Thank you. 34:36 34 minutes, 36 seconds Hello. Yeah, sorry we were on mute. 34:40 34 minutes, 40 seconds So let me first answer the point on average kasa growth. So quarteron quarter we've not really grown kasa. It 34:48 34 minutes, 48 seconds was 30.2 in Q3, 29.8 in Q4. Uh but again important to understand the constituents, right? The retail book 34:57 34 minutes, 57 seconds that's really been growing. We've seen some degrowth on the wholesale book. So the mix is important to highlight. Uh on 35:06 35 minutes, 6 seconds provisions, uh the other important thing to understand is also the growth in the loan book. Right? So far this year, the 35:15 35 minutes, 15 seconds denominator has been fairly static. in size has been coming down, slippages have improved and therefore the numerator is going to be fairly 35:22 35 minutes, 22 seconds controlled for the next uh 3 to four quarters. The denominator is really going to start going up and therefore we 35:28 35 minutes, 28 seconds will see that uh showing up uh in in the effective credit cost on loans and assets going down. So that's really the math on that on purpose. 35:44 35 minutes, 44 seconds Uh can I ask Ganesh to take the question on um large corporate degrowth? 35:49 35 minutes, 49 seconds I think your question was how much we are anticipating large corporate further degrowth. I think I don't want to put a number on how much we are expecting. I 35:57 35 minutes, 57 seconds think the way to think about it is we'll be dialing up our midm market or commercial bank large corporate in the 36:05 36 minutes, 5 seconds very top end of the large corporate which is particularly the conglomerates. 36:08 36 minutes, 8 seconds We may see some deg growth. I think that is how we would like to look at it. I think it's early days but I think directionally we are guiding that we 36:16 36 minutes, 16 seconds will look at better growth or higher growth or more than proportionate growth in the middle market. 36:22 36 minutes, 22 seconds So the so to answer your question we expect the overall book to grow. 36:28 36 minutes, 28 seconds Okay but uh that's what large corporates have done minus 25% yearon year. Uh you know is there another 10% to go 20% to 36:36 36 minutes, 36 seconds go or or smaller numbers? No we mix on your margin. No, we are more or less done there as far as the the 36:44 36 minutes, 44 seconds degrowth the point that you are making that we are more or less done. 36:47 36 minutes, 47 seconds Understood. Okay. And Nim was clean, right? That was my final one. Nim was clean in the Was no one time as in this quarter. 36:54 36 minutes, 54 seconds Excellent. Thank you. [clears throat] Thank you. 36:59 36 minutes, 59 seconds Next question is from the line of Piran Engineer from CLSA India. Please go ahead. 37:05 37 minutes, 5 seconds Yeah. Hi team. Uh congratulations on the quarter. Uh just going back to the credit cost question. So apart from MFI, 37:12 37 minutes, 12 seconds what would be the driver of credit cost improvement from current levels and MFI also probably should just be maybe 230 crores more. Right? 37:22 37 minutes, 22 seconds So uh again if you look at the slippages uh data for this quarter the reduction is happening across our portfolios. It's 37:31 37 minutes, 31 seconds not only the micro finance which has dropped. We've seen a drop both in consumer as well as vehicle financing 37:39 37 minutes, 39 seconds and therefore the improvement will be across sectors not just micro finance. 37:44 37 minutes, 44 seconds You're right about your point that the absolutes on micro finance is a much smaller number. The improvement really 37:52 37 minutes, 52 seconds will come across the three large segments that I talked about microfin, consumer and vehicle finance 38:00 38 minutes but uh V in in vehicles your net slippage ratio is like 1% if I heard you correctly in the opening comments. 38:07 38 minutes, 7 seconds One is I mean historically what's this number been like for Indent Bank? I I would expect 1% to be a pretty good 38:15 38 minutes, 15 seconds number and a lot of improvement seems unlikely just speaking as an analyst. 38:21 38 minutes, 21 seconds Yeah. But again the denominator right important to understand that the the asset book continues growing the slippages are dropping and that's how 38:30 38 minutes, 30 seconds you then have to translate that into freight cost right that that's the point I'm trying to make. 38:36 38 minutes, 36 seconds At the moment the the asset books are growth is relatively muted. uh and so 38:43 38 minutes, 43 seconds therefore to some degree all these percentages are okay are a bit skewed. So I think when two 38:51 38 minutes, 51 seconds things are happening uh is the point that B is making one is anyway uh slippages have reduced uh and add to 38:59 38 minutes, 59 seconds that as growth begins to come these numbers will will start to look better. 39:05 39 minutes, 5 seconds Understood. Understood. Okay. Second was on just your deposit and funding uh cost uh sort of movement. Now your cost of 39:13 39 minutes, 13 seconds deposits has fallen only 2% QQ and cost of funds has fallen 12 bits Q. 39:19 39 minutes, 19 seconds Oh yeah. That's again an effect of the balance sheet, right? So you look at uh total balance sheet that's grown and 39:28 39 minutes, 28 seconds therefore that cost of funds average has has dropped more than what you see on the cost of deposit line. 39:37 39 minutes, 37 seconds Okay. So you're you're taking equity also in this in the denominator. That's correct. 39:44 39 minutes, 44 seconds Got it. And just uh sorry just on the deposit cost thing uh two pipoq when our kasa was largely stable. Does this mean 39:52 39 minutes, 52 seconds that our TD repricing is almost over now because last quarter we reported a much better decline? 39:58 39 minutes, 58 seconds I think that that's fair to say that the repricing that journey is pretty much done now. 40:03 40 minutes, 3 seconds It's pretty much over. So okay. So now uh Got it. Got it. Okay. Fine. Yeah that's it from my end. I'll take any follow-ups later. Thank you and all the best. 40:14 40 minutes, 14 seconds Thank you. Next question is from the man of J Mundra from ICICI securities. Please go ahead. 40:22 40 minutes, 22 seconds Yeah. Hi sir, good evening. Uh sir, questions one question on your growth. 40:27 40 minutes, 27 seconds uh uh so now we are aspiring for system level growth and we see that uh you know large corporate uh may not be may may 40:35 40 minutes, 35 seconds remain in consolidation mode that would mean that effectively retail plusme uh may have to be you know more than 40:44 40 minutes, 44 seconds like 17 18% plus at the same time you see macro uh which may have some implication on theme growth and maybe 40:52 40 minutes, 52 seconds vehicle growth uh along with that so far deposits uh while 40:59 40 minutes, 59 seconds they have been stable retail deposit but uh uh there's not material growth there. 41:05 41 minutes, 5 seconds So would you be comfortable in going considering these constraint on theme/vehicle uh along with uh dialing up deposit uh 41:14 41 minutes, 14 seconds to 22 to two to two to two to two to two to two to two to two to two to two22 to22 to222 to222 to222 to22 to to uh achieve towards the systemic level growth that is the question thank you 41:22 41 minutes, 22 seconds across the system uh we we have a little under 2% market share so therefore 41:30 41 minutes, 30 seconds uh we do believe that um that this franchise uh is certainly worth more 41:36 41 minutes, 36 seconds than uh the 1.7 odd% market share that we have and so therefore you know given the team that we have given the you know 41:44 41 minutes, 44 seconds process systems controls that we are now putting in place I do believe that we will be able to uh to at least uh you 41:54 41 minutes, 54 seconds know start to grow in the vicinity of uh of where the market is to the point that you are making that if if the 42:02 42 minutes, 2 seconds macroeconomic environment as you envisaged begins to play out, please remember that uh that market level 42:09 42 minutes, 9 seconds growth will also come down. Um and so therefore to that extent um I mean if that begins to play out we will also 42:16 42 minutes, 16 seconds calibrate growth as appropriate right and your liability side uh reset 42:23 42 minutes, 23 seconds has already happened right so your uh whatever you bulk deposit is more or less steady uh but there is no um uh 42:31 42 minutes, 31 seconds liability reset that that that is still pending right so you your um I mean that liability side reset is already over 42:40 42 minutes, 40 seconds from a pricing perspective uh yes but I think from obviously proportionalities 42:47 42 minutes, 47 seconds uh are something that you need to consider as well meaning that uh that we have some way to go to catch up with 42:54 42 minutes, 54 seconds peers in terms of uh the ratios of uh you know of the current account relative 43:01 43 minutes, 1 second um the overall ratio of retail plus SBC as compared to peers etc. Uh and so 43:08 43 minutes, 8 seconds therefore while there may not be necessarily uh a great deal from a repricing 43:14 43 minutes, 14 seconds perspective uh we we do hope that as proportionalities improve uh towards 43:21 43 minutes, 21 seconds more retail um we may be able to get some benefits uh on overall cost of deposits as we go forward. 43:31 43 minutes, 31 seconds Thanks Rajiv. All the very best. Thank you. 43:36 43 minutes, 36 seconds Next question is from Faram Subramanyan from Invest India. Please go ahead. 43:43 43 minutes, 43 seconds Hi, good evening. Thanks for taking my question and congratulations on the improvement in profitability in the quarter. Uh again, I just wanted to 43:50 43 minutes, 50 seconds check on uh the the uh 60 basis point uh guidance for net NPA. U when do we plan 43:56 43 minutes, 56 seconds to achieve that? again I think uh so I think we mentioned that 44:05 44 minutes, 5 seconds in the previous quarter as well that's that's a target we don't have a due date kind of saying okay we will get 44:12 44 minutes, 12 seconds there by this date that's a journey we want to get to uh but yes it's a journey it's not going to happen like immediate next few quarters 44:21 44 minutes, 21 seconds okay fair enough okay uh secondly on on deposit growth right so this year we have not grown from deposits because we've not been growing the balance 44:29 44 minutes, 29 seconds sheet. Uh retail deposits is also minus 2%. and and since we didn't have to grow uh you know we took the opportunity to 44:37 44 minutes, 37 seconds cut our you know the rates but going into next year do you think you'll have to say raise rates again to garner retail deposits because uh if you plan 44:46 44 minutes, 46 seconds to grow mid- teens um you know retail deposits are still growing at say minus 2% y 44:53 44 minutes, 53 seconds we'll see uh I think um um if you look at if you look at our uh deposit rates 45:01 45 minutes, 1 second uh compared to uh our larger peers, we are already paying uh a somewhat premium to uh to the big three or big three or 45:10 45 minutes, 10 seconds four banks. Um so we'll see how this plays out. 45:15 45 minutes, 15 seconds So Rajiv, I wanted to understand how what exactly changes for retail deposit growth to pick up. Um 45:24 45 minutes, 24 seconds so um there are multiple things somewhat some internal some external uh meaning that uh we've made some organizational 45:32 45 minutes, 32 seconds changes uh structural changes uh changes in incentive plans changes in uh in goal 45:41 45 minutes, 41 seconds sheets etc for our branch banking folk um we have integrated u the CFD piece as as I spoke about in 45:49 45 minutes, 49 seconds my opening commentary uh and uh there is there is a clear mandate from them to be able to uh to grow their deposits. Uh 45:57 45 minutes, 57 seconds there is a mandate even to in our micro finance businesses to be able to uh to get more than what we are what we are 46:05 46 minutes, 5 seconds getting today. Um as we grow our retail asset businesses as well. uh I do believe that uh that will that will uh 46:14 46 minutes, 14 seconds trigger a a virtual cycle of more cross-ell more engaged customers and therefore better balances. Uh we're also 46:22 46 minutes, 22 seconds working on improving our digital capabilities. Um which is I think it is fair to say that that we have a little bit of way to go as compared to peers. 46:33 46 minutes, 33 seconds uh and I do believe that uh in a in an environment where where flow of funds is uh is is so quick and so efficient and 46:41 46 minutes, 41 seconds so frictionless having strong digital capabilities is an absolute imperative. 46:46 46 minutes, 46 seconds Uh so therefore we are improving our digital capabilities as well uh as we go forward. So there's a whole bunch I mean I also spoke about the fact that at the 46:54 46 minutes, 54 seconds very basic level current account opening a current and savings account opening itself we have made a a transformational 47:01 47 minutes, 1 second shift uh in terms of customer experience um we are also working on um on 47:08 47 minutes, 8 seconds repositioning the brand um which we will hopefully do sometime in July August of next year. So there's a whole bunch of 47:15 47 minutes, 15 seconds things that are happening uh which gives me a great deal of confidence that that both from an input and output perspective we should be able to uh to do much better going forward. 47:28 47 minutes, 28 seconds Got it. Um thanks a lot. Uh just one last question. Uh uh so so uh there is a you know yi sharp increase on other 47:36 47 minutes, 36 seconds assets in the balance sheet. Is that raid and if so if you could yeah it's a combination. So you're right partially 47:44 47 minutes, 44 seconds yes 3,000 crores was RIFF the remaining is really grossing up of the balance sheet with the FX volatility so 47:52 47 minutes, 52 seconds revaluation of FX contracts where we are hedged uh from a risk perspective but you have two contracts which gses up the 48:00 48 minutes balance sheet so that's really explaining the O movement okay got it and if you could broadly talk about your PSL uh say how you are 48:08 48 minutes, 8 seconds positioned because the MSI book is you know sharply down as of the end of the year. Yeah. So we met all our we have 48:15 48 minutes, 15 seconds met all our PSL requirements including subcategories for the year uh 2526 if that was the question. 48:28 48 minutes, 28 seconds Yeah sorry yeah it's not that you will have higher RF installments next is what I wanted. 48:36 48 minutes, 36 seconds So this year's PSL we've met so we not going to have more RF having said so the RAF target for shortfall of the past 48:45 48 minutes, 45 seconds year that's not fully done yet so we still have another 2,000 cr left in terms of the demand it's not come through yet but that's that's pretty but 48:54 48 minutes, 54 seconds as far as PSL goes for this financial year having met the targets we'll not have incremental target on RAF coming in next year. 49:03 49 minutes, 3 seconds Got it. Thanks a lot. Thanks for answering all my questions. All the best. Thank you. 49:10 49 minutes, 10 seconds Thank you. I request to all the participants. Kindly limit yourself for two questions for participants. 49:16 49 minutes, 16 seconds Next question is from man of Jan Parodi from Access Capital. Please go ahead. Uh thank you for the opportunity. So first 49:24 49 minutes, 24 seconds question is on the LCR. Uh if you can help us, what would be the release in the under the new norms uh for LCR for 49:31 49 minutes, 31 seconds you? And a followup to that would be what is your internal comfort level comfort level on LCR or is there a board approved floor of LCR which you would 49:40 49 minutes, 40 seconds like to maintain? So LCR I think at 118 that's the stable level. I don't think we're going to see much uh delta there. 49:48 49 minutes, 48 seconds Very marginal there. The range we would operate between 115 to 120. That's pretty much the range we'll be working within. I mean that that's really our internal tracking. 49:59 49 minutes, 59 seconds Any any release from the new norms? No nothing significant coming up. 50:04 50 minutes, 4 seconds Okay. As a second question is on the merchant loan book. uh we do see a very uh healthy uptick over there almost 10% 50:11 50 minutes, 11 seconds uh QQ after almost uh four quarters um is this strategic and would we see something similar over the next four quarters in this book? 50:22 50 minutes, 22 seconds Uh this is a book that um that we are very um u very passionate about. Um I think it's a it's a business that um 50:31 50 minutes, 31 seconds that can be scaled quite significantly from here. uh we are investing in both people technology uh you know within 50:39 50 minutes, 39 seconds this space uh and I think in this franchise we can do a lot more uh so uh I I don't want to comment on whether the 50:48 50 minutes, 48 seconds rate of growth will be the same uh but it is it is a business that we certainly want to grow not just over the next you 50:55 50 minutes, 55 seconds know 3 to four quarters but over the medium term. 50:58 50 minutes, 58 seconds Do you see this becoming a sizable part of the loan book over the next two to three years? Let me answer that question slightly differently. I mean I think 51:05 51 minutes, 5 seconds today if you look at the uh our micro finance business I mean it's broadly 51:12 51 minutes, 12 seconds speaking uh 7525 micro finance to 51:18 51 minutes, 18 seconds um uh to BSS which is our bat superstore business. Uh the plan really is to 51:25 51 minutes, 25 seconds convert this into a more rural business where micr finance then effectively becomes 50 uh not because it's going to 51:33 51 minutes, 33 seconds degrow but because we're going to add new products within that within that franchise uh to be able to grow that 51:40 51 minutes, 40 seconds franchise uh and to be able to serve uh the community uh there through multiple 51:47 51 minutes, 47 seconds microlab for example um is an example of another product that we will add there But fundamentally I mean the rural 51:55 51 minutes, 55 seconds business is something that we want to grow not just on the micro finance or BSS side but with more products. 52:03 52 minutes, 3 seconds Uh thank you sir. If I could just squeeze one last question regarding the LCR if we are uh you know uh let's say uh not able to match the loan growth 52:11 52 minutes, 11 seconds with the retail deposit number. Are we open to tapping into CD and higher cost or I mean is is growth the primary aim over here? 52:20 52 minutes, 20 seconds I think we uh you know given the fact that we have uh we have not grown for a year uh I think it becomes 52:29 52 minutes, 29 seconds uh you know fairly clear to me and to my board that we need to start getting back into growth mode. Now uh you know if the 52:38 52 minutes, 38 seconds industry grows at uh at uh you know 12 or 13% and we grow uh 11 or 12% I will not be deeply disappointed but I think 52:46 52 minutes, 46 seconds fundamentally we need to get back into growth mode. 52:51 52 minutes, 51 seconds That's very clear. Thank you and all the best. Thank you. 52:58 52 minutes, 58 seconds Next question is from line of Pratesh from Dan Capital Advisor. Please go ahead. 53:05 53 minutes, 5 seconds Hi. Uh good evening. Uh so the risk rate assets was sharply down by about 300 basis points. Anything to read into that 53:12 53 minutes, 12 seconds and with uh 16.2% C uh will we uh still uh looking to raise any capital? 53:21 53 minutes, 21 seconds So on the RWA question uh two factors playing there. One is the drop in the loan book right that directly translates 53:29 53 minutes, 29 seconds on credit RW. Second, we've also run optimization on the book. So things like quantum of rating, portfolio, uh the 53:38 53 minutes, 38 seconds market risk calculation, etc. We've seen some uptake from that as well. So that's really helping us uh maintain and lower the absolute RWS. 53:48 53 minutes, 48 seconds Uh to the to the second question, uh boss, we have accreted capital in this quarter um and so therefore our capital 53:56 53 minutes, 56 seconds position has become stronger than where it was the previous quarter. 53:59 53 minutes, 59 seconds um uh this this level of capital is more than enough for us to be able to uh to support growth uh at least over the next 54:07 54 minutes, 7 seconds one year. So yes, there is no plan to raise capital uh anytime soon. 54:15 54 minutes, 15 seconds And lastly uh Rajiv you mentioned about the macro environment the West Asia crisis are uh portfolio generally very 54:23 54 minutes, 23 seconds uh uh you know aligned to the macro environment right so any any early reassessment on uh from a book perspective where we are linked to this 54:32 54 minutes, 32 seconds uh maybe oil and gas value chain and uh you know asset quality related to vehicle finance and SNA any assessment 54:39 54 minutes, 39 seconds there. So we we have um as as you can see uh the this whole um you know 54:46 54 minutes, 46 seconds theater is uh is evolving literally on a day-to-day basis but we've already done two iterations where we looked at the 54:54 54 minutes, 54 seconds entire portfolio uh across all our businesses. At this point in time um we 55:02 55 minutes, 2 seconds are not seeing any uh any significant um uh hot spots or uh you know across 55:10 55 minutes, 10 seconds across the entire portfolio. But I do believe that um as if this uh if this crisis continues 55:18 55 minutes, 18 seconds um and the the physical ability to move oil and gas is constrained as it is 55:25 55 minutes, 25 seconds today for a longer period of time. uh it is I think inevitable that maybe I don't know two quarters from now we will see 55:34 55 minutes, 34 seconds some impact on portfolios but but like I said I mean it's a it's a wait and watch mode at the moment. 55:42 55 minutes, 42 seconds Sure. Thank you. Thanks for answering those questions. All the best. 55:46 55 minutes, 46 seconds Thank you. Next question is from Nan of Ankyani from Namora. Please go ahead. 55:54 55 minutes, 54 seconds Yeah. Hi thank you for taking my question. I just wanted to ask uh so the our employee cost has declined uh 56:01 56 minutes, 1 second sequentially even if I exclude the new labor code impact if you could highlight something on that and the other question 56:08 56 minutes, 8 seconds was on the deposit growth front how how do you see a system deposit growth padding from here on and could that be a 56:16 56 minutes, 16 seconds constraint on loan growth going ahead because as of March's end we are running at a 16% y loan growth where do you see 56:23 56 minutes, 23 seconds it settling in FY27 Yeah, thank you. 56:28 56 minutes, 28 seconds I think comp is also it's a factor of some of the churning that we've seen through the course of the year. I don't think it's been a substantial movement 56:36 56 minutes, 36 seconds quarter on quarter. It's actually flattish. Uh but yes, it's it's been flat to lower. Yes. Uh and you're right, 56:45 56 minutes, 45 seconds the oneoff was the label or impact last quarter. 56:51 56 minutes, 51 seconds So simple answer to your question is um will deposit growth be a constraint to credit growth? Absolutely. I mean I 56:58 56 minutes, 58 seconds think um um that in a sense is a basic tenant of of banking that we will be able to grow only to the extent that 57:06 57 minutes, 6 seconds that we are able to raise deposits um you know given all the various constraints around uh LCR LDR etc is 57:14 57 minutes, 14 seconds concerned but having said that I think um um it it does look like um you know we will 57:23 57 minutes, 23 seconds see slightly slightly lower levels of credit growth in the current year especially given the macroeconomic 57:29 57 minutes, 29 seconds environment uh that uh that is currently playing out. But like I said, it's a wait and watch mode. Uh things are changing literally on a day-to-day basis. 57:41 57 minutes, 41 seconds Thank you. 57:45 57 minutes, 45 seconds Thank you very much ladies and gentlemen. We'll take that as the last question. I'll now hand the conference over to Mr. Rajiv for closing comments. 57:55 57 minutes, 55 seconds Uh thank you for your um uh interest in Ind Bank. Um I appreciate the time that you have spent with us. Uh thank you once again. 58:05 58 minutes, 5 seconds Thank you very much. On behalf of Henderson Bank, that concludes this conference. Thank you for joining us and you may now disconnect your mic. Thank you.