Jammu and Kashmir Bank Ltd — Q4 FY26

Jammu and Kashmir Bank Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=ep7IWDMeui4 Published: 8 days ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to Jammu and Kashmir Banks Q4 and FI26 conference call hosted by MK 0:10 10 seconds Global Financial Service Limited. This conference call may contain forward-looking statement about the company which are based on beliefs, 0:17 17 seconds opinion and expectation of the company as on date of the score. These statement are not the guarantee of future performance and involve risk and 0:26 26 seconds uncertainties that are difficult to predict. As a reminder, all participant line will be in the listen only mode and there will be an opportunity for you to 0:33 33 seconds ask question after the presentation conclude. Should you need assistant during the conference call, please signal an operator by pressing star then 0:41 41 seconds zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Anand Dharma from MK Global 0:50 50 seconds Financial Service Limited. Thank you and over to you sir. 0:55 55 seconds Uh yeah, thank you operator. Uh uh good evening ladies and gentlemen. I welcome you all to Jammu and Kashmir Banks posters conference call for fourth 1:02 1 minute, 2 seconds quarter financial year 2026 hosted by MK Global. From the top management we have with us Shri Amitava Chatar MDNCO and 1:11 1 minute, 11 seconds other top management. uh first I would request the MD sir to briefly summarize the key highlights from Q4, FI26, FI26 1:19 1 minute, 19 seconds uh uh uh results and also provide some strategic direction on growth, margins and asset quality uh post which we will 1:26 1 minute, 26 seconds have the Q&A session. Uh over to you MD sir. Thank you Ananj. I'm audible I suppose. 1:34 1 minute, 34 seconds Yes sir, you're audible. A very good evening and a a warm welcome to all the investors uh analysts and other 1:42 1 minute, 42 seconds stakeholders joining us today for the Jammu and Kashmir Bank March 2026 earnings call and as mentioned I would 1:52 1 minute, 52 seconds definitely be brief. Uh before starting with the numbers uh let me introduce my fellow colleagues from uh the bank's 2:00 2 minutes senior management who are accompanying me on this call. Uh executive director Mr. Mr. Sudhir Gupta, 2:07 2 minutes, 7 seconds Chief General Managers, Mr. Sun Kumar, Mr. Inta Zammed Bud and Mr. Ashutto Shar, uh, retail banking head, Mr. 2:15 2 minutes, 15 seconds Rakkesh Motra, corporate banking head, Mr. Suresh Kumar Chri, impaired assets portfolio management head, Mr. Van 2:23 2 minutes, 23 seconds Anjum, Chief Financial Officer, Mr. Ketan Kumar Jooshi, Chief Risk Officer, Mr. Al Hussein Kira, and our treasury head, Mr. 2:32 2 minutes, 32 seconds Ajak Kohli. 2:35 2 minutes, 35 seconds Financial year 2026 marks yet another milestone year for the banks for the bank as we have fulfilled our promise 2:44 2 minutes, 44 seconds and delivered a fourth consecutive year of record annual profitability posting a 2:50 2 minutes, 50 seconds net profit of rups 2363 crores for the financial year. 2:57 2 minutes, 57 seconds What sets this achievement apart and makes it more special is the backdrop on in which it has h it has been achieved 3:05 3 minutes, 5 seconds as FY226 was laced with frequent challenges especially in our core geography of 3:13 3 minutes, 13 seconds Jammu and Kashmir besides global uncertaintities. 3:17 3 minutes, 17 seconds The ability to sustain the trajectory in this challenging environment is a reflection of a structurally stronger 3:25 3 minutes, 25 seconds and a resilient franchise that has been built over a period of time along with the adaptability of our business model. 3:35 3 minutes, 35 seconds Besides ending the year with the highest ever annual net profit, we have also ended the financial year with a record 3:42 3 minutes, 42 seconds quarterly performance posting a net profit of almost 800 crores recording a 36% Q on Q growth. We are also pleased 3:52 3 minutes, 52 seconds to have uh have been able to broadly deliver on our market guidance surpassing the same comfortably on most 4:00 4 minutes parameters despite all the challenges faced. The only exception has been a marginal 4:08 4 minutes, 8 seconds uh shortfall in the NIM where we have fallen short of our guidance. 4:14 4 minutes, 14 seconds This is largely on account of the cumulative rate cuts of 125 dips by RBI in 2025 which has impacted yield on 4:23 4 minutes, 23 seconds advances coupled with intense competition from deposits resulting in lower transmission of the reduced rates on the liability side. 4:34 4 minutes, 34 seconds The bank has registered a business growth of 13.6% during financial year 2526 with deposits and grow gross 4:42 4 minutes, 42 seconds advances growing at 11.3% and 16.8% respectively both comfortably exceeding our guidance for the financial year. 4:53 4 minutes, 53 seconds In accordance with our recalibrated strategy for the fiscal the loan growth in ROI was much higher at 28.8%. 8% 5:03 5 minutes, 3 seconds visav 9.5% of Jammu and Kashmir and Ladak. 5:08 5 minutes, 8 seconds This has led to a marginal shift in the regional composition of the loan book with Jammu, Kashmir, Ladak contributing 5:15 5 minutes, 15 seconds 63% and rest of India contributing 37% as on 31st of March 2026. 5:22 5 minutes, 22 seconds in alignment with the bank's medium to long-term vision of geographical diversification with a 50/50 business 5:29 5 minutes, 29 seconds split between Jammu, Kashmir, Lada and rest of India. 5:34 5 minutes, 34 seconds Retail, agre retail, agriculture and MSME loans that is RAM continue to constitute a dominant segment of our loan book with more than 2/3 share. 5:44 5 minutes, 44 seconds During FY226, corporate and agriculture segments have recorded a robust growth of 38.5% and 27.6% respectively. 5:55 5 minutes, 55 seconds Our personal loan segment in rest of India has also gained traction with a growth of around 13% recorded for the 6:03 6 minutes, 3 seconds year. Amongst personal loans, car loans has been the best performing segment across all divisions with a growth of 17.5%. 6:12 6 minutes, 12 seconds In the rest of India division, housing and education loans have also recorded a double-digit growth. In deposits, both 6:21 6 minutes, 21 seconds Jammu Kashmir Ladak and rest of India have recorded double-digit growth. The growth in term deposits is 14.2% 6:28 6 minutes, 28 seconds has been higher than the growth in Kasa deposits at 8.1%. In line with the broad industry trend, however, on a sequential 6:37 6 minutes, 37 seconds basis, growth in kasa deposits has substantially outpaced the growth in term deposits, resulting in a bank being 6:44 6 minutes, 44 seconds able to improve its kasa ratio from 14 44.10% as on 31st December 25 to 45.65% 6:54 6 minutes, 54 seconds as on 31st March 2026, thereby surpassing our guidance of 45%. 7:01 7 minutes, 1 second While we have witnessed some moderation in NIM during the year as mentioned the start at the start of this call with NIM 7:08 7 minutes, 8 seconds of FY 2526 being recorded at 3.60% the decline has been relatively contained especially when seen against 7:17 7 minutes, 17 seconds the backdrop of cumulative rate cut of 125 bips by RBI in the calendar year 2025. 7:24 7 minutes, 24 seconds Despite despite pressure on net interest income owing to the contractions in names as well as a hit on our other 7:31 7 minutes, 31 seconds income on account of impairment provision of rupees 180 crores along with a sequential moderation. 7:39 7 minutes, 39 seconds Hello Mr. Satish. 7:43 7 minutes, 43 seconds Hello Satish profit. A key driver in this improved 7:53 7 minutes, 53 seconds profitability has been operating leverage with operating expenditure reducing by around 4%. 8:00 8 minutes As has been indicated previously also by the bank, the cost of reduction has been brought about by a moderation in our employee costs with tapering of pension 8:10 8 minutes, 10 seconds related obligations and shift of our workforce composing compos composition towards NPS. 8:17 8 minutes, 17 seconds This reduction of costs has also been complemented by enhanced operating efficiency as evidenced by steady 8:24 8 minutes, 24 seconds improvement in key productivity metrics with business per employee improving from 20.18 crores as on 31st March 25 to 8:34 8 minutes, 34 seconds 23.64 crores as on 31st March 26 and net profit per employee improving from 16.65 8:42 8 minutes, 42 seconds lakhs to 19.47 lakhs during the same period. Cost to income ratio also continues to moderate for the fourth 8:50 8 minutes, 50 seconds year running being recorded at 56.18% for the financial year. With this record profitability performance, we have also 8:58 8 minutes, 58 seconds surpassed the guided ROA and ROE levels with ROA and ROE of 1.37% and 16.85% 9:08 9 minutes, 8 seconds respectively for the financial year. The consistent improvement in asset quality alongside a healthy business growth now 9:16 9 minutes, 16 seconds extending to six consecutive years continues to remain a hallmark of our performance and reflects our commitment 9:23 9 minutes, 23 seconds to responsible growth. GNPA and NNPA as on 31st March 2026 stand at 2.50% 9:33 9 minutes, 33 seconds and 64% respectively. This demonstrates a structural strengthening of our underwriting discipline alongside a 9:41 9 minutes, 41 seconds tight control over a slippages with gross slippage ratio of just around.82% for the year. Improved recovery 9:50 9 minutes, 50 seconds mechanisms have also played a crucial role with another year of negligible credit costs despite a relatively 9:58 9 minutes, 58 seconds challenging economic environment. Our provision coverage ratio also continues to stay above 7 90% reflecting adequate buffers. 10:10 10 minutes, 10 seconds With another year of record internal acqu achieved highest ever capital adequacy of 16.55% with CCT1 at 13.54 54%. 10:22 10 minutes, 22 seconds However, considering that RBI has notified ECL implementation with effects from 1st April 2027, the bank will 10:29 10 minutes, 29 seconds consider raising of capital to the tune of 1250 crores in the current year at an opportune time for which the bank has 10:37 10 minutes, 37 seconds already obtained both board as well as shareholders approval. Despite a broad-based exodus of FIS from Indian 10:45 10 minutes, 45 seconds markets during 2025 with outflows of around 2.4 4 lakh cr. Our bank has witnessed an increase in FII 10:54 10 minutes, 54 seconds shareholding to 8.34% as on 31st March 26 from 7.64% a year 11:02 11 minutes, 2 seconds ago. This is a recognition of our transformation journey and consistently improving performance. The ongoing 11:09 11 minutes, 9 seconds geopolitical tensions in West Asia which has led to the World Bank slashing India's growth forecast for 26 27 from 11:17 11 minutes, 17 seconds 7.2 to 6.6%. 6% call for a degree of caution in our immediate future outlook. 11:23 11 minutes, 23 seconds In light of this evolving external environment, we have taken a conservative stance in our market guidance for 2627 11:32 11 minutes, 32 seconds which is a credit growth of 12% deposit growth of 10% kasa at 45% NIM around 11:38 11 minutes, 38 seconds 3.5% ROA maintain around the current levels ROE around 16% and gross NPA below 2.2. 11:48 11 minutes, 48 seconds 25%. 11:50 11 minutes, 50 seconds While it may seem like we are underpromising, rest assured that we will strive to overd deliver like we did this year. 11:58 11 minutes, 58 seconds Thank you for your time today and for giving me a patient hearing. Uh we can start the question answers now. 12:06 12 minutes, 6 seconds Yeah, operator open up the floor. Yeah. 12:09 12 minutes, 9 seconds Thank you so much. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on 12:18 12 minutes, 18 seconds their touchstone on telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use 12:25 12 minutes, 25 seconds handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question assembles. 12:39 12 minutes, 39 seconds Our first question come from the line of Yogesh Batya from Sequent Investment. Please go ahead. 12:46 12 minutes, 46 seconds Hello. Congratulations sir on good set of numbers in challenging times. 12:52 12 minutes, 52 seconds Uh my question is regarding the employee cost which you mentioned in your opening commentary that you know we have tried to maintain it. So this quarter the 13:01 13 minutes, 1 second employee cost has come to fund at 9 crores versus last year CM quarter it was 734 crores. uh similarly uh on a 13:09 13 minutes, 9 seconds full year basis also we've seen a reduction of 11%. So I wanted to know going forward for the next uh year uh 13:17 13 minutes, 17 seconds what uh trend are we looking at in the employee cost. 13:24 13 minutes, 24 seconds Thank you uh very much for uh the comments. Uh definitely see there are two basic 13:33 13 minutes, 33 seconds reasons for the reduction in employee cost. One as I mentioned uh that our pension obligations are being now shifted to NPS. 13:42 13 minutes, 42 seconds So that is coming down gradually and second is of course uh over the last couple of years we have had retirements. 13:52 13 minutes, 52 seconds So the number of employees have also gone down. So the employee cost have has come down and the shortfall in the 14:01 14 minutes, 1 second employees have been largely compensated by the use of technology that we have been able to uh leverage on but that 14:09 14 minutes, 9 seconds doesn't mean that we will not be recruiting people as and when required we will definitely be recruiting people but uh going forward I believe that 14:18 14 minutes, 18 seconds staff costs will further come down even in the next quarter and the quarters after that. 14:26 14 minutes, 26 seconds Okay. So overall as a percentage what it used to be in the past of the earnings it will remain uh it will trend to be lower. 14:35 14 minutes, 35 seconds Yes. It has been lower for the last I think couple of years. Okay. Okay. Thank you sir. 14:42 14 minutes, 42 seconds Thank you. Thank you. 14:46 14 minutes, 46 seconds Our next question comes from the line of Gorov Agarwal from 91 capital. Please go ahead. 14:53 14 minutes, 53 seconds Uh hello sir congratulations on wonderful set of numbers and uh giving out your comments with uh such clarity. 15:00 15 minutes U uh sir as the previous participant asked about the employee cost uh sir uh is it fair to assume that the quarterly 15:08 15 minutes, 8 seconds run rate for employee cost starting from Q1 onwards it is going to be 500 cr or lower? Uh is that a fair understanding to take? 15:19 15 minutes, 19 seconds Uh thank you Gorov G and uh it's a very fair estimate that you made at least for the next two quarters I am certain that it will be around that. 15:27 15 minutes, 27 seconds Uh but for full year can it be contained below 25 index here? uh uh why I am 15:34 15 minutes, 34 seconds saying that first two quarters is I do have uh uh some intention of uh uh 15:41 15 minutes, 41 seconds getting uh some uh employees uh uh into into the bank especially the 15:49 15 minutes, 49 seconds specialized people uh to take care of various uh specialized positions in the bank. So uh but then that will not add 15:58 15 minutes, 58 seconds to the cost because the uh lowering of the cost in the last say 6 to 7 quarters has been substantial and that will 16:07 16 minutes, 7 seconds continue. So it will not add to the cost but yes 2500 if you are considering it is a fair estimate. 16:14 16 minutes, 14 seconds Great sir and sir other operating cost uh this time it has gone up around 13 14%. Similar kind of growth we can see for next year. 16:25 16 minutes, 25 seconds We'll try to we will try to contain uh the operating costs definitely uh but I think uh it will definitely average out. 16:37 16 minutes, 37 seconds Uh got it. And lastly on the provisions if you can you know help us uh what should we you know expect on the provisioning as a whole without taxes. 16:48 16 minutes, 48 seconds uh we have I don't know how many quarters we have uh u delivered a zero 16:56 16 minutes, 56 seconds credit cost situation. Yes, for us the more the marrier you know. [laughter] 17:03 17 minutes, 3 seconds So, so uh I believe we still have uh some amount of uh NPAs in pipeline which 17:12 17 minutes, 12 seconds will be recovered in the coming quarters. Right? 17:15 17 minutes, 15 seconds So, uh I believe that provisioning will not be something which will be alarming. 17:21 17 minutes, 21 seconds I cannot predict at the moment. Even I I had said last year that I cannot predict but we we maintained a zero uh credit cost situation. 17:31 17 minutes, 31 seconds Great sir. Uh thank you so much and uh I understand that you have given a conservative growth guidance and hopefully that is essentially that is essentially 17:40 17 minutes, 40 seconds because of the situation uh that is going around. Uh but then uh I gave the same similar kind of guidance last year 17:47 17 minutes, 47 seconds and I think we overachie by several basis points. 17:52 17 minutes, 52 seconds Correct sir. Correct. Hopefully this time also we do the same and uh congratulations and all the best for the next year. Thank you. Thank you very much. 18:03 18 minutes, 3 seconds Thank you so much ladies and gentlemen. 18:05 18 minutes, 5 seconds In order to ensure that the management will be able to address all the question from the participant, we request you to kindly limit your question to two 18:14 18 minutes, 14 seconds question per participant. If you have a follow-up question, you may rejoin the queue. Our next question comes from the 18:21 18 minutes, 21 seconds line of Sonel from Bohead. Please go ahead. 18:25 18 minutes, 25 seconds How are you? Congratulations on good set of numbers. Uh thank you Sonel G. 18:31 18 minutes, 31 seconds So sir I had couple of questions. If you Ramy may can I ask three? Yes please. 18:36 18 minutes, 36 seconds So sir firstly you know your misplaced income has fallen substantially. Why and why? Was there any oneoff last year in 18:45 18 minutes, 45 seconds Q4 or is there any one-off this year in Q4 because of its fallen? That's my first question. 18:52 18 minutes, 52 seconds So I answer this question first. Uh other income other income has fallen because of uh the one-time provision of 19:01 19 minutes, 1 second 180 croresh for Gramin Bank that EDB amalgamation with our Grain Bank that was taken in the other income uh head. 19:12 19 minutes, 12 seconds So that is the reason uh otherwise we are uh almost at par with last year. 19:20 19 minutes, 20 seconds So you're saying that your other income I could not actually fully understand your other income has fallen. What is to do with Gramming Bank? 19:29 19 minutes, 29 seconds the the um the impairment of uh the investment in in Grammine Bank because of the 19:39 19 minutes, 39 seconds amalgamation of EDB as per the uh uh instructions and and the uh guidance of 19:47 19 minutes, 47 seconds uh Nabad uh we had to make a uh impairment of 180 crores on account of this amalgamation and you know Grammine Bank is a sponsor. 19:58 19 minutes, 58 seconds We are the sponsors of uh Jam JNK Grin Bank and uh Bihhati Bank EDB which was 20:06 20 minutes, 6 seconds uh sponsored by SBI was amalgamated with us. So that bank was in a very bad state. It was in in a very st very bad 20:15 20 minutes, 15 seconds state. Uh it in fact it had eroded entire network. While we should have uh 20:22 20 minutes, 22 seconds not been required, we had represented with uh uh the all the authorities including finance ministry but then it 20:30 20 minutes, 30 seconds was a a policy decision that was taken uh for all the banks all the regional rural banks that were amalgamated. So on 20:37 20 minutes, 37 seconds account of that we had to take an impairment and that was uh classified in the other income head. So that is the reason it it went down. 20:49 20 minutes, 49 seconds Answer when you talk second question when you talked about the you know the increase in employee cost uh you know 20:56 20 minutes, 56 seconds what is the increase in employee cost because initially you said it will fall then you said they will hire you know so if you could just give some idea is it 21:04 21 minutes, 4 seconds going to increase in absolute terms compared to fi 256 it will going to be lower and increase you know what is like 21:12 21 minutes, 12 seconds what kind of percentage rough it it will not increase it will not increase uh uh when I say that uh I will 21:21 21 minutes, 21 seconds hire the additional see uh it's a it's a very simple arithmetic when you hire in 21:28 21 minutes, 28 seconds a bank uh you lose people on account of retirement who are high paid uh 21:35 21 minutes, 35 seconds individuals and we when you hire they come at a lower cost. So obviously the cost will not go up cost is definitely 21:43 21 minutes, 43 seconds going to go down. we still have uh a substantial number of people retiring this year and also the as I mentioned 21:51 21 minutes, 51 seconds the cost of uh the pension uh liabilities that we have that has been shifted to NPS. So that is the reason 21:59 21 minutes, 59 seconds why I said that employee cost will not go up. Employee cost will steadily come down. The rate of uh reduction might be 22:08 22 minutes, 8 seconds slightly reduced if we hire people. And that also is not going to happen for the first two quarters of next year. If we 22:15 22 minutes, 15 seconds if we are able to hire it will be the impact will come only in the third and the fourth quarter. 22:21 22 minutes, 21 seconds So sir just to put things in context you had a almost a 2500 crores employee cost this year 2480 and this quarter is 509 22:30 22 minutes, 30 seconds crores. There was no one off in this 509 cr right? No no no one off. 22:39 22 minutes, 39 seconds Okay. Oh, sorry. Sorry, sorry, sorry. Uh there was a reversal of uh uh 153 153 cr 22:48 22 minutes, 48 seconds that was on account uh retired discount rate change in retirement huh the the discount rate change in retired uh retirement benefits uh 22:56 22 minutes, 56 seconds because of that we had a one-off reduction of 153 crores in this quarter right because Q4 is typically your peak employee cost you know 23:05 23 minutes, 5 seconds correct correct correct okay so but you're saying overall on a yearly basis this 2500 cr number is unlikely to grow up even as your loans 23:14 23 minutes, 14 seconds grow by you know 12% or whatever numbers you know it's possible yes it's not going to grow right 23:21 23 minutes, 21 seconds I'm sure you had talked about uh two more you know you had talked about the large number of changes in the bank you 23:28 23 minutes, 28 seconds know sometime back progress well and you know because those changes you were actually expecting to accelerate your growth at some point of 23:37 23 minutes, 37 seconds time so where are we in the cycle are we in the late stages of those changes are you still in the early stages of those changes and I in your RO guidance if you 23:46 23 minutes, 46 seconds could just repeat that for us. Thank you. 23:49 23 minutes, 49 seconds ROA we are going to remain uh uh where we are 1 37 we we wish to maintain it at 23:57 23 minutes, 57 seconds that uh uh right you you talked about the initiatives taken uh I guess uh I have 24:07 24 minutes, 7 seconds lost count on the number of initiatives that we have taken this financial year and very happy to share that all the 24:13 24 minutes, 13 seconds initiatives are now in place and functioning I mean they not in any any stage they have started functioning. For 24:21 24 minutes, 21 seconds example, we have we have the uh the clusters the uh change in the reporting 24:29 24 minutes, 29 seconds structure of cluster heads. We have the CPCs in place uh we have all those control mechanisms that we needed to uh 24:39 24 minutes, 39 seconds apply in the bank. So uh a host of all those initiatives were taken early and 24:46 24 minutes, 46 seconds and also uh the initiatives related to uh technology also uh getting many uh uh 24:55 24 minutes, 55 seconds additional softwares which will help us in generating more business. So most of them have been already put in place. uh 25:03 25 minutes, 3 seconds for example we we have a end toend digitized uh loan journeys now for all 25:10 25 minutes, 10 seconds loans not only retail loans all loans so these are certain initiatives which have already been completed and they have 25:18 25 minutes, 18 seconds started showing results uh the tad in case of our corporate mid-corporate and theme loans have come down substantially 25:26 25 minutes, 26 seconds in the last quarter so u now this year we intend to consult consolidate instead 25:33 25 minutes, 33 seconds of initiating more uh such initiatives new initiatives we we intend to consolidate on the initiatives already 25:41 25 minutes, 41 seconds taken ensure that they are functioning at its best and efficient best and get the maximum out of them the HR 25:49 25 minutes, 49 seconds initiatives for example uh I I I'll just I forgot to mention uh for the first time in the bank we have completed the 25:57 25 minutes, 57 seconds entire set of promotion uh exercise for the bank uh within March. So everybody 26:05 26 minutes, 5 seconds has been placed in their new positions start doing business from the very first month itself and it has shown result the 26:13 26 minutes, 13 seconds first month uh figures that I have with me end of April they are far better than 26:20 26 minutes, 20 seconds any April of previous years. So uh if you ask me if they are showing results 26:26 26 minutes, 26 seconds they are definitely showing results and therefore sir you should grow much faster than the systemwide loan growth. 26:32 26 minutes, 32 seconds So let's say the Indian entire country's loan growth grows at 12 13 14%. Do you expect to grow much faster than the system loan growth or you expect to match it or grow lower than that? 26:44 26 minutes, 44 seconds See I I gave this conservative uh figures only because of the the environment around 26:53 26 minutes, 53 seconds but if the system grows uh at 16% I would definitely want to grow more than 16%. And that is that is given you can take it from me. 27:05 27 minutes, 5 seconds Understood. Thank you sir. 27:09 27 minutes, 9 seconds Thank you. Reminder to all the participant please limit the question to two question per participant. If you have a follow-up question you may please 27:17 27 minutes, 17 seconds rejoin the next question comes from the line of D Javiri from Crown Capital. Please go ahead. 27:26 27 minutes, 26 seconds Hello. Uh good evening sir. Thank you so much for taking my question sir. Uh a lot of my questions have already been answered. So just like uh sorry to harp 27:36 27 minutes, 36 seconds on you know our guidance the roof for also I think we were able to do around 27:42 27 minutes, 42 seconds 1.7 1.8% H percentile. So uh that uh this can also be conservative but just 27:48 27 minutes, 48 seconds for us we can at least expect our Q power to be maintained right in terms of 27:56 27 minutes, 56 seconds quarter on quarter you are mention you are saying yeah just uh we should not have a decline right 28:04 28 minutes, 4 seconds I I what I gave the guidance is not for the quarter for the year ahead but 28:10 28 minutes, 10 seconds definitely uh we would like to see uh not not every quarter we will have a uh 28:18 28 minutes, 18 seconds profit improvement of 33%. Right? So we we need to keep that in mind. But yes, our endeavor will always be I I told you 28:27 28 minutes, 27 seconds in the beginning only. Whatever guidance we have given they are the base guidances that we uh we are trying to 28:35 28 minutes, 35 seconds give the ultimate numbers would be much better that I can assure. 28:43 28 minutes, 43 seconds Oh okay. Okay. Uh uh fair enough. So fair enough. Uh yeah that's it for my thank you. 28:50 28 minutes, 50 seconds Thank you. Thank you. 28:55 28 minutes, 55 seconds Our next question come from the line of Mona Ketan from Club Millionaire PMS. Please go ahead. 29:03 29 minutes, 3 seconds Hello. 29:07 29 minutes, 7 seconds Hi sir. Good evening and congrats on the quarter. 29:11 29 minutes, 11 seconds Uh firstly I think it was a great move to not to pay out dividend in order to conserve capital. Uh so I have uh two 29:19 29 minutes, 19 seconds questions in particular. Firstly uh when I look at your segmental growth uh the financial market book has uh grown very 29:27 29 minutes, 27 seconds fast in the last one year almost doubled the mix has almost doubled. So uh what is driving this growth? What constitutes 29:36 29 minutes, 36 seconds uh what are the constituents in this book that is driving the growth? 29:41 29 minutes, 41 seconds See if you if you look at the entire industry this financial year has been excellent for the NBFCs 29:50 29 minutes, 50 seconds uh the NBFCs have grown and NBFCs grow when they get a lot of banking support. 29:57 29 minutes, 57 seconds So uh we have uh if you compare it with previous years we have actually been 30:05 30 minutes, 5 seconds able to uh uh have some good NBFCs on on boarded with uh good uh returns from 30:15 30 minutes, 15 seconds them. So this year we have had some very good NBFCs all highly rated NBFCs and that is the reason why this segment is 30:24 30 minutes, 24 seconds showing a uh ext I mean higher growth that's just also include the coalending 30:31 30 minutes, 31 seconds book that you do and uh what could be the size if that's all this year versus last year of the co-ending book within this 30:39 30 minutes, 39 seconds see last year we started co-ending very late last year the book has I mean it it still yet to uh give any substantial 30:48 30 minutes, 48 seconds numbers but this year uh we have a u a target of say around 1,000 crores to 30:55 30 minutes, 55 seconds start with and uh we have a board approval of going up to 5,000 crores but then uh uh we will we will wait and 31:04 31 minutes, 4 seconds watch how it uh actually pans out because the co-ending 31:11 31 minutes, 11 seconds uh activity has just started uh rate in the fourth quarter. 31:17 31 minutes, 17 seconds Okay. So you're saying that the financial market book doesn't include I mean out of the 20,000 cr of financial 31:24 31 minutes, 24 seconds market book co- lending is not a very material part. No no not yet not yet not yet. 31:30 31 minutes, 30 seconds Okay so this is mostly driven by the uh lending towards NBFC. Yes. 31:36 31 minutes, 36 seconds Uh secondly uh you mentioned about this impairment provision of 180 cring bank. 31:43 31 minutes, 43 seconds So this is not related to Q4 right this is mostly for the full year which is H1 you made some provisions is that the 31:50 31 minutes, 50 seconds correct understanding yes yes it is it is for the entire year okay so this year it this is not part of 31:57 31 minutes, 57 seconds the uh other income line correct this year this quarter I mean I mean this quarter not this quarter not this quarter 32:05 32 minutes, 5 seconds okay noted noted and just finally uh if you could throw some light on the ECL impact that may uh as a percentage of 32:14 32 minutes, 14 seconds net worth what could be the impact in your case. 32:18 32 minutes, 18 seconds See uh I uh before giving you any kind of a uh number I would like to mention 32:26 32 minutes, 26 seconds that each bank will have a uh have its own model uh a board approved model for 32:33 32 minutes, 33 seconds calculation of ECL under the overall guidance of uh the circular issued by 32:40 32 minutes, 40 seconds Reserve Bank of India on this. So it will be it will not be very uh accurate 32:47 32 minutes, 47 seconds if I say uh what kind of provisioning this bank will have to make for the period of five years because on both 32:55 32 minutes, 55 seconds counts uh with the data available for the banks and uh the uh the kind of 33:03 33 minutes, 3 seconds improvement that the banks can make over a period of time on many aspects especially on stage two and stage three uh ACL requirements. 33:14 33 minutes, 14 seconds Uh I can say that uh if I take the base uh requirements of the um circular given 33:24 33 minutes, 24 seconds by RBI for a period of 5 years, I think uh our bank will need to provide for around 16 to 1700 crores. 33:33 33 minutes, 33 seconds Okay. And just one final thing. I'm sorry to interrupt you ma'am. 33:39 33 minutes, 39 seconds Please join the queue. We have lot of participants. Thank you. 33:44 33 minutes, 44 seconds Our next question come from the line of Aramman from Blue Sky Fintech. Please go ahead. 33:49 33 minutes, 49 seconds Yeah. Uh first of all uh congratulations for a good set of numbers. I just want to uh reiterate on could you just uh say 33:58 33 minutes, 58 seconds again the guidance numbers which you said in the beginning? 34:03 34 minutes, 3 seconds Uh yes. Uh thank you Arman. uh the guidance number the conservative guidance number that we have given 34:10 34 minutes, 10 seconds credit and deposit both uh at the same levels of last year guidance that is 12 and 10%. Casa at 45% 34:19 34 minutes, 19 seconds uh NIM around 3.5% ROA to maintain around the current levels roe would be around 16% and gross NPA below 2.25%. 34:34 34 minutes, 34 seconds 2.5% okay 2.25 2.25 fund. 34:40 34 minutes, 40 seconds Okay. And uh like sir I I already previous participant have already asked because ROA for our Q4 exit is already 34:49 34 minutes, 49 seconds very high and we are giving comparatively a very very very conservative guidance. So so any 34:57 34 minutes, 57 seconds anything more to hack upon it that's it from my side. I I I told you we had us a very good uh profit growth uh during the 35:07 35 minutes, 7 seconds last quarter of this year the last financial year. It it was almost a 33% jump from uh December uh profits. 35:17 35 minutes, 17 seconds So I do not expect every quarter to have a 33% jump on profits. That is the reason I have given. Of course like like 35:26 35 minutes, 26 seconds you you would like to see the the ROA to be at around 1.7 1.8. I would like it to 35:33 35 minutes, 33 seconds be better. But then the guidance that I give is based on some uh some realistic 35:41 35 minutes, 41 seconds uh conservative uh assessment but then uh you can rest assured that it is not going to be worse than this. It is going to be better than this. 35:51 35 minutes, 51 seconds Okay. Okay. Thanks. That's it for myself. Thank you. Thank you. Thank you. 35:58 35 minutes, 58 seconds Our next question comes from the line of Sunil Jen from Nirmal uh Nirmal Bank Securities. Please go ahead. 36:05 36 minutes, 5 seconds Yeah, thanks for uh giving this opportunity. Uh sir, my question relate to uh NIM guidance of 3.5%. 36:14 36 minutes, 14 seconds Uh but uh if you see the scenario, the rate cycle is now over. So you will be getting some benefit uh in the coming 36:22 36 minutes, 22 seconds quarters or is there anything more uh you need to factor in before uh it start reversing? 36:31 36 minutes, 31 seconds See uh uh your the answer to your question uh is a little bit uh deep 36:39 36 minutes, 39 seconds considering the fact that uh why we have given a 3.5% guidance on name. You are 36:46 36 minutes, 46 seconds very right. Uh it is likely to improve because the uh interest rates on 36:54 36 minutes, 54 seconds advances have already been passed through and the deposit rates uh benefit uh is likely to acrewue in in the coming 37:03 37 minutes, 3 seconds quarters. But uh the fact that this geography 37:09 37 minutes, 9 seconds had a difficult time last year and the uh personal segment which is more or 37:17 37 minutes, 17 seconds less uh majorly uh uh contributing to our uh interest 37:25 37 minutes, 25 seconds income from this geography was largely affected last year. We compensated it with uh different strategies which I've 37:33 37 minutes, 33 seconds already mentioned earlier but the impact of that will at least be there for some 37:41 37 minutes, 41 seconds time. Uh the low interest income that I we have been able to generate from Jammu and Kashmir which will take around one 37:50 37 minutes, 50 seconds one and a half quarters to be regenerated. 37:54 37 minutes, 54 seconds So that is the reason I have given a name guidance of 3.5%. 37:58 37 minutes, 58 seconds Otherwise uh I I must say that it would be on a upward trend. 38:04 38 minutes, 4 seconds Okay. And sir, second question if uh you can share the data about SMA 1 and SMA 2 data. 38:12 38 minutes, 12 seconds Yeah, I'll just give me a second. 38:23 38 minutes, 23 seconds uh total SMA if you look at March to March March 25 we had 20 uh 3,87 crores 38:33 38 minutes, 33 seconds that is 22.33% of advances as SMA which has come down to 14,724 38:41 38 minutes, 41 seconds crores that is 12.07% 07% of the advances that is almost 10 percentage 38:48 38 minutes, 48 seconds points reduction in SMA from uh December to March also we have a reduction from 12.58% to 12.07%. 38:58 38 minutes, 58 seconds Now SMA 1 has come down from 5.54% 39:04 39 minutes, 4 seconds to 4.44% 44% March Y and SMA 2 is slightly higher at 71% 39:15 39 minutes, 15 seconds which was.35% last year but from December which uh the SMA2 was 39:22 39 minutes, 22 seconds 2.92% we have been able to reduce it to 71%. 39:27 39 minutes, 27 seconds Okay officer great thank you very much for your answers. Thank you. 39:36 39 minutes, 36 seconds Next question come from the line of Kesha Carva from White Pine Investment Management Private Limited. Please go ahead. 39:42 39 minutes, 42 seconds Sir, thank you for the opportunity. Just wanted to know that your yield on advances has been declining. So, how are you planning to improve these yields for FI27? 39:54 39 minutes, 54 seconds The yield has uh uh decreased on account of uh the repo rate cut that has happened in the last financial year. 40:04 40 minutes, 4 seconds uh and also I mentioned that we uh because of the uh the situation in this state we had a hit on our retail advances. 40:14 40 minutes, 14 seconds So the financial year 26 27 we are concentrating on uh retail advances including uh what we did in agriculture. 40:26 40 minutes, 26 seconds Uh uh the retail advances have high returns. So uh definitely the uh yield 40:34 40 minutes, 34 seconds is going to improve uh this year uh because last year largely uh we had to compensate 40:43 40 minutes, 43 seconds uh the low growth in this geography by doing some corporate advances and you know that uh high rated highly rated which which are the only ones we target. 40:55 40 minutes, 55 seconds the highly rated uh corporates uh the rate of interests are very very competitive. 41:01 41 minutes, 1 second So slightly that has impacted the yield but going forward the focus and the 41:07 41 minutes, 7 seconds concentration is on the 2/3 part of our loan book that is the retail and and and we are going to concentrate on that to improve ours. 41:18 41 minutes, 18 seconds Okay sir. Thank you. Thank you. 41:23 41 minutes, 23 seconds Our next question come from the line of prane and individual investor. Please go ahead. 41:30 41 minutes, 30 seconds Uh yes u congratulations on an excellent result Mr. Ch strategy and it's a testament to your leadership that our 41:38 41 minutes, 38 seconds bank is doing so well despite all the uncertainties and challenges starting early last year. Um sir my first 41:46 41 minutes, 46 seconds question was to understand the competitive landscape in the state of Jammu and Kashmir. If you can just give us some color of what you are seeing in 41:55 41 minutes, 55 seconds terms of the competitive intensity outside of the major markets of just Jamu and Shinagar. Are there a lot of 42:02 42 minutes, 2 seconds new branches opening up in Pulwama, in Budgam, in in Anantanag and so on? How 42:09 42 minutes, 9 seconds are you seeing that change and how is it impacting our the stickiness that we have with our customers and our efforts to attract new customers to the bank? 42:22 42 minutes, 22 seconds Uh thank you uh Renee. Rene thank you very much for your kind words. Uh yes uh 42:30 42 minutes, 30 seconds uh the competitive landscape has changed quite a bit in Jammu and Kashmir uh while while we still maintain a market share of 60%. 42:42 42 minutes, 42 seconds Uh the branch share is only 37%. 42:46 42 minutes, 46 seconds Now that 60% might sound sound very good uh uh as of today but it has come down 42:55 42 minutes, 55 seconds uh substantially from last 2 three years but then last year we did a lot of uh 43:04 43 minutes, 4 seconds improvement in our customer services and we also opened branches at strategic locations in Jammu and Kashmir. to 43:12 43 minutes, 12 seconds answer a part of your question. Yes, other banks are also opening account opening branches but mostly in uh in the urban centers of Jammu and Shinagar. 43:23 43 minutes, 23 seconds Yes, a few branches have been opened in the areas what you mentioned but these are the places where we actually still 43:30 43 minutes, 30 seconds hold close to 80 85% market share there I don't see much of a competition the competition which is coming is largely 43:38 43 minutes, 38 seconds coming in Sinagar and Jammu and in the last one year and I don't have the uh RBI data but I believe that we have been 43:46 43 minutes, 46 seconds able to restore a bit of lost market share that we have lost in the last few quarters in the last uh financial year. 43:54 43 minutes, 54 seconds So I'll be waiting for the numbers to come but we have been able to get back quite a few accounts which we had lost earlier. 44:05 44 minutes, 5 seconds Thank you. No uh thank you sir for that. 44:06 44 minutes, 6 seconds Uh and I'm very happy with the progress that the bank is making. So just in terms of customer services just to sort 44:13 44 minutes, 13 seconds of highlight on that uh if we read a lot like I've spoken to a lot of our customers and I personally gone through 44:19 44 minutes, 19 seconds our app the M mobile app that we have on um Apple and on Google Play Store and uh 44:27 44 minutes, 27 seconds while there have been improvements I I I think you would agree that there is still a large scope for us to further improve on the UIUX on the ease of doing 44:36 44 minutes, 36 seconds business uh for a retail customer whether whether it is a household in Jammu in Kashmir or a horiculture farmer 44:43 44 minutes, 43 seconds and so on or a tourism u uh business person. If I could just request u your 44:50 44 minutes, 50 seconds team your technology team to work a little harder on the mobile app and other ancillary uh service touch points 44:57 44 minutes, 57 seconds at the branch level. I think we could uh do much better than we are doing. Sir uh thank you thank you very much for the 45:04 45 minutes, 4 seconds suggestion tray. uh just want to mention two things on this. Uh the first aspect the see we had had a revamp of uh the MP 45:13 45 minutes, 13 seconds delight app that we have uh recently uh about uh uh 12 months ago. So uh now we 45:21 45 minutes, 21 seconds have a fairly robust app but then uh the first aspect that we are currently 45:27 45 minutes, 27 seconds looking at is uh totally uh uh having a 100% uptime for all the 45:36 45 minutes, 36 seconds uh systems that we have including the app. So that is our first aim. We have been if if you have been following uh 45:43 45 minutes, 43 seconds the bank and the app closely you would have noticed a marked difference in the last couple of months or three months maybe in the uptime. So that was our 45:52 45 minutes, 52 seconds first uh aim and we have been able to uh uh contain the downtime to quite a bit. 46:00 46 minutes The second part is improvement improvement in the facilities uh in the app the services. So that is second and 46:08 46 minutes, 8 seconds we are we are working on it. We are closely uh uh watching uh what the other 46:14 46 minutes, 14 seconds banks have in offer and not only that we have a few good things coming up uh uh 46:21 46 minutes, 21 seconds on our own. So uh definitely uh we are working on both counts. So you must be 46:29 46 minutes, 29 seconds uh I mean in in in a couple of months time you will be having a much better uh experience uh on the app app front. 46:39 46 minutes, 39 seconds Yes. Thank you so much sir. I I'll come again next time. Thank you so much and best of luck for the new year sir. Thank you. Thank you. Thank you. 46:47 46 minutes, 47 seconds Thank you. 46:49 46 minutes, 49 seconds Our next question come from the line of Sonel from Precinct Capital. Please go ahead. 46:56 46 minutes, 56 seconds Hi sir. This is Sonal Minas. I hope I'm audible. Yes sir. Yes you are. 47:02 47 minutes, 2 seconds Sir uh two questions from my side. I see that uh the gross MBA under the category 47:09 47 minutes, 9 seconds of trade in your uh sector wise credit deployment uh has come down significantly quarter on quarter. Last 47:18 47 minutes, 18 seconds quarter the gross NPA was 765 CR and this quarter the number is 597 cr. Uh 47:26 47 minutes, 26 seconds could you just give some subjective color on what has happened uh uh in this particular category? That's my first question. Yeah. 47:36 47 minutes, 36 seconds See I I mentioned in the beginning itself we we have been very very focused on improving and uh recovery uh 47:45 47 minutes, 45 seconds mechanisms. So we have been uh u very closely monitoring the accounts and 47:53 47 minutes, 53 seconds focusing on recovery efforts. Uh like we have been able to reduce NPA and SMS. we have been able to contain the SMAs which 48:02 48 minutes, 2 seconds have not given uh rise to any further slippages. The slippage ratio is also contained. So that is one aspect and a 48:10 48 minutes, 10 seconds bit of uh it also would be uh uh a technical write off that we have done in the last quarter. 48:19 48 minutes, 19 seconds uh uh a few small accounts have also been written off where the NPA have been 48:26 48 minutes, 26 seconds there for more than 3 to four years where recoveries have not come. So it is a combination of both. 48:32 48 minutes, 32 seconds Got it. So my broader question was which category amongst these is sticky basically when we talk about trade, real 48:40 48 minutes, 40 seconds estate, uh talk about infrastructure u and services. Uh are we seeing some categories here in terms of sectors where the NPA are sticky? 48:53 48 minutes, 53 seconds Uh to be very honest with you sonal I have been trying to find out one category or one segment which is sticky for the last one one and a half years 49:01 49 minutes, 1 second that I have been here. I have not found and very very honestly I'm telling you I have not found any particular category 49:08 49 minutes, 8 seconds which is sticky. the the very fact that even the stickiest of all categories in the country that is the agree 49:16 49 minutes, 16 seconds we have the least NPA in agree so yes sir I would not I would not categorize any segment as sticky 49:26 49 minutes, 26 seconds uh understand that sir and sir uh from a color of the um uh the NBFCs you're 49:34 49 minutes, 34 seconds lending to in the financial markets uh could you highlight broader sector segments you are lending to in financial 49:42 49 minutes, 42 seconds markets like are there more NFIs are there more uh like uh CE NBFC's uh if you could just 49:51 49 minutes, 51 seconds slide this a little bit uh that will help understand my my my CRO is smiling at me listening 49:57 49 minutes, 57 seconds to your question uh no MFIs zero MFIs uh we have not lent to any MFI 50:04 50 minutes, 4 seconds uh first of all all the companies that we have lent to uh the NBFCs are all triple rated number one. Number two, uh 50:14 50 minutes, 14 seconds they are primarily in the housing sector. Uh some uh uh in in the uh um 50:25 50 minutes, 25 seconds huh uh in the public sector uh like IRFC uh then uh there is a bit of uh it in gold loans also. 50:36 50 minutes, 36 seconds So primarily in these uh areas 50:42 50 minutes, 42 seconds and and also uh uh some general uh 50:48 50 minutes, 48 seconds consumer related NBFCs. I would not name the NBFCs but uh there are a few but one 50:57 50 minutes, 57 seconds thing is common all of them are triple rated. 51:05 51 minutes, 5 seconds Thank you ladies and gentlemen. Anyone who wishes to ask a question may press star and one. 51:22 51 minutes, 22 seconds A reminder to all the participant if you wish to ask a question may press star and one. 51:28 51 minutes, 28 seconds Our next question comes from the line of Nav from MK Global Financial Service. Please go ahead. 51:35 51 minutes, 35 seconds So, congrats Aita. This is good set of results. So uh and I'm going to focus 51:41 51 minutes, 41 seconds less on PCL uh and I'm not looking this as a sort of a guidance but uh given where we are uh in terms of a cleanup 51:50 51 minutes, 50 seconds balance sheet uh you know stabilizing liabilities uh looking at nonjamu book 51:58 51 minutes, 58 seconds on a three-year perspective sir what is what is the kind of growth business growth that you want to target and this 52:05 52 minutes, 5 seconds is more aspirational rather than saying that you're not going to hold you to these numbers but assuming that there are no macroeconomic setbacks 52:14 52 minutes, 14 seconds uh you know and it's not that you have got a very big hook what do you think you would aspire to gun for 52:23 52 minutes, 23 seconds currently uh uh thank you N for uh the kind words uh if you look at our 52:32 52 minutes, 32 seconds business levels is at around 2.9 lakh crores at the moment Mhm. 52:39 52 minutes, 39 seconds If you ask me 3 years time uh my it's not aspiration our aim and uh what we 52:48 52 minutes, 48 seconds have with us in the bank we aim to cross five lakh crores by then. 52:57 52 minutes, 57 seconds So uh that is the first aim of course depending on the environment and market situations. 53:04 53 minutes, 4 seconds So uh in three years time we will definitely be crossing five lakh crores of business. 53:12 53 minutes, 12 seconds Excellent. And uh so that obviously means that you know we're looking at somewhere between 17 18% sort of growth 53:19 53 minutes, 19 seconds rate in advances and all to get to those kind of numbers which is obviously what you've been delivering. Yeah definitely definitely 53:27 53 minutes, 27 seconds excellent. That is that is great to hear given your roles and uh you know where you are. I think uh all the best to you sir. 53:36 53 minutes, 36 seconds Thank you sir. Thank you very much. Thank you. 53:42 53 minutes, 42 seconds The next question comes from the line of Sonel with Precian Capital. Please go ahead. 53:52 53 minutes, 52 seconds Hi sir again. I think u I missed asking third question. I just wanted to understand the trade cost guidance for next year. 54:03 54 minutes, 3 seconds the toughest question you have asked me. 54:06 54 minutes, 6 seconds See, I have been uh I mean people have been asking me how long are you going to have a zero credit cost. So I always I 54:15 54 minutes, 15 seconds always say that I would like to continue with a zero credit cost as long as possible. 54:21 54 minutes, 21 seconds uh I guess uh uh the credit cost uh will 54:27 54 minutes, 27 seconds be uh somewhere around say.1% or 2% maximum not more than that. 54:36 54 minutes, 36 seconds Got it sir and uh this is well below whatever the benchmarks are basically for the sectors you work in. So 54:46 54 minutes, 46 seconds yeah which is good. All right sir that's it for my sir. Thank you. Thank you. 54:51 54 minutes, 51 seconds Thank you. The next question comes from the line of Pranay who's an investor. Please go ahead. 54:58 54 minutes, 58 seconds Yes sir. Thank you once again uh for this opportunity. So I just wanted to again work uh ask about the credit cost 55:06 55 minutes, 6 seconds not from an immediate 12-month perspective but given that first of all 55:13 55 minutes, 13 seconds yes quality across India has please sort of in this goldilock scenario where uh slippages are very low especially for a 55:21 55 minutes, 21 seconds bank like ours where we don't have exposure to MFIs or credit cards or a large any significant unsecured loan exposure our unsecured book is very 55:30 55 minutes, 30 seconds different from that of other banks but slippage is still at 6.7% which is commendable but after from a 3 4 year 55:38 55 minutes, 38 seconds lens sir I think it's safe to say that we should normalize a much higher credit cost than we've been achieving right now 55:45 55 minutes, 45 seconds because of all the upgradations and reversals but how do we see that evolving in another 3 four years because 55:52 55 minutes, 52 seconds um if our credit cost goes to our slippage ratio is 4.56.7% then our roe sort of um roe metrics look 56:02 56 minutes, 2 seconds different. So how do we see uh that when we cross that over a period of time? 56:10 56 minutes, 10 seconds See uh if if I have to do some analysis then I'll have to look at my historical data 56:19 56 minutes, 19 seconds and if I look at my historical data I'm unable to assess a credit cost which is more than 1%. in the next 3 to four years. 56:30 56 minutes, 30 seconds And 1% is also a very very upwardly uh optimistic or pessimistic figure if you 56:37 56 minutes, 37 seconds if you may say because uh uh if if I had seen some inherent weaknesses in my book 56:47 56 minutes, 47 seconds if I had uh u loans in the book which 56:52 56 minutes, 52 seconds also is uh say susceptible to uh the in changing uh the business 57:02 57 minutes, 2 seconds environment or the economic environment more or less we are insulated on those 57:09 57 minutes, 9 seconds uh because of the portfolio that we have currently and you are right on that. 57:15 57 minutes, 15 seconds So uh I don't see the credit cost uh being a factor to be discussed even in the next two to three years. I don't 57:23 57 minutes, 23 seconds believe so. and and uh on top of it we have a very robust I mean we have developed a very robust recovery 57:30 57 minutes, 30 seconds mechanism and we had added another initiative to that we have introduced the concept of zonal IRBs. 57:39 57 minutes, 39 seconds Now zonal IRBs are specialized outfits which cater only for recovery. 57:45 57 minutes, 45 seconds So uh uh uh the the setup that we have the uh the way we have been able to 57:54 57 minutes, 54 seconds tackle uh the slippages and the NPAs and the recoveries I don't believe at least at the moment I don't believe that 58:02 58 minutes, 2 seconds credit cost will be a cause of concern for us. 58:07 58 minutes, 7 seconds Thank you sir. Our last question for the day comes from the line of Mona Ketan with Club Millionaire PMS. Please go ahead. 58:17 58 minutes, 17 seconds Yeah. Hi sir, thanks again for the opportunity. I just have two clarifications uh on the on the margin and on the 58:24 58 minutes, 24 seconds credit cost. So uh while you've guided for uh 3 and a half% kind of uh margin 58:31 58 minutes, 31 seconds again 3.6% this year but u I see that there are levers in terms of you know 58:38 58 minutes, 38 seconds maturity of RAF investments etc. uh as well as some more scope in terms of deposit pricing etc. So to that extent 58:48 58 minutes, 48 seconds don't you think uh the three and a half or a decline versus this year is a very conservative guidance or how do you look at it? 58:57 58 minutes, 57 seconds G I would be happy to give a guidance of 3.5 and end up at four. 59:04 59 minutes, 4 seconds Right. Okay. Uh why I have given this guidance is based on what I have already said. 59:11 59 minutes, 11 seconds uh the uh income uh that uh had been gen 59:17 59 minutes, 17 seconds been generated in this bank in the last uh last financial year and before that I 59:23 59 minutes, 23 seconds mean not 2526 2425 and 2324 essentially came from the uh retail uh 59:31 59 minutes, 31 seconds loans that we have in Jammu and Kashmir now that because of last year's uh 59:38 59 minutes, 38 seconds difficulties in this uh geography We we did not have that kind of a income and that part I believe is going to continue for some time. 59:49 59 minutes, 49 seconds the growth that uh we are going to have in the coming years and you are right the RIFFs being maturing we have uh the 59:56 59 minutes, 56 seconds lowc cost uh in investments which are going to be for us to invest further the the margins would be better definitely 1:00:04 1 hour, 4 seconds better but uh I'm still not very sure uh as to when uh the uh returns from the 1:00:12 1 hour, 12 seconds retail advances will start to acrue it might start acrewing very soon uh I have already seen green shoots. So once that 1:00:21 1 hour, 21 seconds starts now then maybe next quarter I I I will be able to revise my guidance on this. 1:00:29 1 hour, 29 seconds Noted noted that's very clear. And secondly on the credit cost rate you mentioned of.1 to 2% kind of credit 1:00:36 1 hour, 36 seconds cost. Does that factor in the impact of ETL provisions as well that you'll be making over the next five years? No, no, 1:00:44 1 hour, 44 seconds that doesn't uh that doesn't uh factor in the impact of equal. 1:00:51 1 hour, 51 seconds Got it. Got it. That's all from my side. Thank you so much and all the best. Thank you. 1:00:57 1 hour, 57 seconds Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Anand for closing comments. 1:01:06 1 hour, 1 minute, 6 seconds Uh thank you sir uh for the elaborated call that we had and thanks for all participants as well. On behalf of MK 1:01:13 1 hour, 1 minute, 13 seconds and the management of Jammu and Kashmir, I thank all the participants for joining. Happy evening. Have a good day. Thank you. 1:01:21 1 hour, 1 minute, 21 seconds Thank you. Thank you. Thank you to all the participants. Thank you. 1:01:25 1 hour, 1 minute, 25 seconds Thank you on behalf of MK Global Financial Services Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you everyone.