RBL Bank Ltd — Q4 FY26

RBL Bank Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=pdT03pHJnpk Published: 2 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to RBL Bank Limited's Q4 FY26 earnings conference call. As a reminder, 0:10 10 seconds all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:18 18 seconds you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. 0:30 30 seconds I now hand the conference over to Mr. R. 0:32 32 seconds Subramanya Kumar, managing director and CEO of RBL Bank. Thank you and over to you Mr. Kumar. 0:40 40 seconds Thank you ma'am. First of all, my apologies for a couple of minutes late. 0:44 44 seconds Good evening uh ladies and gentlemen and thank you for joining us for a discussion on our bank's financial results for the fourth quarter and year ended financial year 2026. 0:56 56 seconds We have uploaded the results along with the presentation on our website and I hope you had a chance to go through it 1:04 1 minute, 4 seconds in detail ahead of this call. As always, I'm joined by Mr. JD PA, our executive director and other members of our 1:13 1 minute, 13 seconds management team to address any questions you may have. Before we get into the details on Q4 operational performance, I 1:22 1 minute, 22 seconds would like to briefly touch upon the macro trends. 1:27 1 minute, 27 seconds Demand conditions across our key customer segments remain broadly stable with retail consumption and small 1:35 1 minute, 35 seconds business activity continuing in line with our recent trends. Overall, the operating environment continues to 1:43 1 minute, 43 seconds support calibrated growth for well- capitalized banks with a balanced portfolio mix and a strong risk framework. 1:52 1 minute, 52 seconds We are not currently seeing any material impact on our portfolio arising from the conflict in the Middle East. In retail, 2:02 2 minutes, 2 seconds the collection momentum in April has been broadly in line with our earlier trends with no dis discernable 2:10 2 minutes, 10 seconds disruption so far in the on retail front. On the wholesale side as well, we have not seen any impact at this stage. 2:19 2 minutes, 19 seconds That said, we remain cautious and selective across certain industry segments within wholesale and small 2:27 2 minutes, 27 seconds business lending and we will continue to closely monitor how the situation evolves. 2:33 2 minutes, 33 seconds Importantly, our inherently risk averse approach over the last few years puts us in a 2:41 2 minutes, 41 seconds relatively strong position particularly across the wholesale portfolio. On the retail side, we have significantly 2:48 2 minutes, 48 seconds skewed the business towards secured segments which has enhanced the balance sheet resilience and the positions us 2:57 2 minutes, 57 seconds meaningfully better today compared to where we were 2 to three years ago. Now on to business trends on the quarter. 3:06 3 minutes, 6 seconds We crossed a total business of 2.5 lakh cr during the quarter. Our advances grew 3:14 3 minutes, 14 seconds 23% Y to rupees 1 lakh 14,232 3:20 3 minutes, 20 seconds cr and deposits grew 25% Y to rupees 1 lakh 39,018 3:28 3 minutes, 28 seconds cr. The CD ratio stands comfortable at 82.2%. 3:34 3 minutes, 34 seconds Within deposits, the granular deposits grew 16%. The granular term deposits grew faster at 24%. 3:44 3 minutes, 44 seconds The deposit momentum was also helped by growth in the wholesale customer deposits. 3:52 3 minutes, 52 seconds Within the overall advances, the secured retail assets grew 36% y and JG book grew 34%. 4:02 4 minutes, 2 seconds Let me also mention here that 98% of our dispersement in JG is covered by CGFMU 4:11 4 minutes, 11 seconds and at the book level approximately 95% of the standard book is covered. In the wholesale segment, our commercial 4:20 4 minutes, 20 seconds banking business grew 30% Y. The commercial banking continues to see growth driven by expansion in the 4:28 4 minutes, 28 seconds relationship and the credit teams across the existing markets and selective expansion into new geographies. The 4:36 4 minutes, 36 seconds large corporate business also grew 26% wide. In credit cards, bank issued 3.3 4:45 4 minutes, 45 seconds lakh cards during Q4 FI26 with cards in force increasing to 4.63 63 million cards as of 31st March 2026. 4:56 4 minutes, 56 seconds The Q4 was the second quarter with a sequential increase in the cards in force after almost six or seven quarters 5:05 5 minutes, 5 seconds of reduction. We have built traction in direct sourcing with this contributing more than 90% of the acquisition. This 5:14 5 minutes, 14 seconds includes co-brand cards where sourcing is done by RBL team. The branches are also stepping up on new sourcing to 5:23 5 minutes, 23 seconds internal customers. Our net interest margin on net interest margin front bank's new reduced 22 bits during Q4 FY26. 5:34 5 minutes, 34 seconds This is on account of the fact that yield on advances reduced by 50 bips 5:41 5 minutes, 41 seconds mainly due to the impact of the report rate cut in December 25 and advances mixed change plus surplus liquidity on 5:49 5 minutes, 49 seconds balance sheet. This was partially offset by reduction in the cost of deposit by 28 bits. During the quarter, we 5:58 5 minutes, 58 seconds accelerated the branch expansion by adding 23 branches and crossed the milestone of 600 branches, reaching a 6:06 6 minutes, 6 seconds branch strength of 603. This momentum will continue as we enter new financial year, strengthening our physical 6:14 6 minutes, 14 seconds footprint and support growth across retail businesses. As we have mentioned earlier, we have made meaningful 6:23 6 minutes, 23 seconds progress in leveraging branches for asset growth. 6:26 6 minutes, 26 seconds With increased branchled sourcing across gold loan, working capital, secured business loans, home loans and credit 6:35 6 minutes, 35 seconds cards, the dispersal from branches was rupees 1,800 cr for the quarter versus 6:43 6 minutes, 43 seconds 1,350 cr last quarter. of this the gold loan dispersal growth through branches was 6:51 6 minutes, 51 seconds 850 cr for the quarter versus 540 cr last quarter. We expect the momentum to sustain as we go into the new fiscal. 7:01 7 minutes, 1 second Our only owned subsidiary RFL as a sourcing channel for small ticket secured businesses loans and housing 7:10 7 minutes, 10 seconds loans is gaining traction and has the potential to become a meaningful contributor to the secured loan sourcing 7:18 7 minutes, 18 seconds in the coming financial year. They will do it along with the JD versels. Let me also articulate how we think about our growth architecture going forward. 7:30 7 minutes, 30 seconds around 40 to 45% of our portfolio comprising corporate and commercial 7:36 7 minutes, 36 seconds lending which is clearly identified by us as a high growth moderate to low risk 7:44 7 minutes, 44 seconds with stable but relatively lower margins will be an area where we continue to 7:51 7 minutes, 51 seconds consistently execute and scale another 20 to 25% of the portfolio comprising of 7:59 7 minutes, 59 seconds credit cards and MFI will represent businesses that we approach with a calibrated growth 8:06 8 minutes, 6 seconds mindset given the relatively higher risk profile but also the structurally higher margins. Complementing this will be our 8:15 8 minutes, 15 seconds retail secured portfolio of 35 to 40% which will diversify risk and returns and create a strong customer base for 8:25 8 minutes, 25 seconds the bank. Together these se segments provide a balanced framework for the growth and profitability. Importantly we 8:34 8 minutes, 34 seconds believe we are well geared to pursue this construct supported by the new capital coming into the bank and our 8:41 8 minutes, 41 seconds continued expansion across locations and geographies enabling us to scale in a reasonable and sustainable manner. on 8:50 8 minutes, 50 seconds the progress of the announced capital infusion by Emirates NBD bank. We have received RBI and CCI approvals. 9:00 9 minutes Approvals from the government of India and the city are in process. In summary, as we look ahead to FY27, 9:10 9 minutes, 10 seconds our growth priorities are clearly defined and focused on building a scalable, resilient, and profitable 9:17 9 minutes, 17 seconds franchise. Continuing to build granular and stable liabilities with the objective of progressively narrowing the 9:26 9 minutes, 26 seconds cost of deposits gap. We service larger peers driving a more balanced and diversified 9:34 9 minutes, 34 seconds retail asset mix with a faster growth in secured products alongside the targeted market share gains in secured business loans, housing loan and gold loan. 9:45 9 minutes, 45 seconds enhancing profitability across secured retail asset segments through better pricing discipline, operating leverage and the product optimization. 9:56 9 minutes, 56 seconds Leveraging our branch network and RFL as a key sourcing channels to scale secured retail assets origination efficiently. 10:06 10 minutes, 6 seconds deepening customer relationship by increasing product penetration across our existing liability customer base and 10:13 10 minutes, 13 seconds credit card franchise. In summary, we believe we are on the right trajectory for FY27 10:21 10 minutes, 21 seconds with a well balanced, scalable and profitable growth engine anchored on stronger liabilities, a more secure 10:30 10 minutes, 30 seconds secured le retail asset mix, improved product level profitability, effective branchled sourcing and the deeper 10:39 10 minutes, 39 seconds engagement across our existing customer base. The incoming capital infusion from ENBD further strengthens our ability to 10:49 10 minutes, 49 seconds accelerate the growth while remaining firmly focused on long-term profitability and resilience. This 10:57 10 minutes, 57 seconds positions us well to scale up in a measured manner with a capital strength and execution discipline working 11:04 11 minutes, 4 seconds together. Now I will invite Mr. Jib to take you through the financials in greater details. 11:11 11 minutes, 11 seconds Thank you Mr. Kumar and good afternoon everyone. Briefly touching on some of the specific aspects of our financial performance. We grew our net advances by 11:20 11 minutes, 20 seconds 23% yearon year and 11% sequentially to 1 lakh 14,232 crores. Retail advances 11:28 11 minutes, 28 seconds grew by 20% yearonear and 11% sequentially to 67,19 crores. 11:35 11 minutes, 35 seconds Uh as was just mentioned the retail wholesale mix is 5941. 11:40 11 minutes, 40 seconds Secured retail advances grew at 36% year-on-year and 17% sequentially. 11:45 11 minutes, 45 seconds Within secured retail, business loans and housing loans grew 32% yearonear and 7% sequentially. 11:52 11 minutes, 52 seconds The dispersal for secured retail was about 5,400 crores for the quarter and 18,500 crores for the full year in FI26 12:00 12 minutes versus 10,400 crores for last year. Uh micro finance advances grew 34% year-on-year and 15% sequentially. 12:10 12 minutes, 10 seconds Wholesale advances grew 28% yearonear and 11% sequentially. Within this, commercial banking grew at 30% year on year and large corporates grew 26% year on year. 12:21 12 minutes, 21 seconds As we mentioned in our uh exchange results earlier uh uh in in the month uh early bucket efficiency in the micro finance segment for the month of March 12:29 12 minutes, 29 seconds was 99.7% versus 99.5 for December 25. Clearly we've reached uh the most optimal 12:37 12 minutes, 37 seconds collections on this segment. Um on credit cards we issued 3.3 lakh cards during the quarter reaching total cards 12:45 12 minutes, 45 seconds uh outstanding at 4.63 million cards. So we this is the fourth month in a row where we've added sequentially the net 12:52 12 minutes, 52 seconds cards additions as well and we hope that this will start reflecting in the uh balances outstanding from Q1 onwards. 13:00 13 minutes on deposits uh total deposits grew at 25% year-on-year and 16% sequentially to 13:07 13 minutes, 7 seconds 1 lakh 39,18 crores uh some of this was held by period and flows in wholesale uh kasa ratio stood at 33.6% 6% as at March 13:16 13 minutes, 16 seconds 31st. Deposits less than 3 crores an area of focus for us for the last two three years at least uh grew 16% yearon 13:24 13 minutes, 24 seconds year and 4% sequentially within this granular term deposits grew faster at 24% yearon year. Average LCI for the 13:32 13 minutes, 32 seconds quarter was 130% and CD ratio was at 82.2%. 13:36 13 minutes, 36 seconds Our cost of total deposits for the quarter was down to 5.92% versus 6.2% last quarter. Our savings account 13:44 13 minutes, 44 seconds balances cost for the quarter was 11 bits lower sequentially to 5.05 as we had cut our rates in January 26. 13:52 13 minutes, 52 seconds Our total cost of term deposits was down 24% to 7.05% versus 7.29% last quarter. 14:01 14 minutes, 1 second Um on the uh operating performance, our uh net interest income was up 7% yearonear and 1% sequentially to 1,671 14:09 14 minutes, 9 seconds crores. Other income was up 7% both YI uh on YI and 2% sequentially to 1,69 14:18 14 minutes, 18 seconds crores. Core C income grew 9% year-on-year and 10% sequentially to 157 crores. Total net income grew 7% 14:26 14 minutes, 26 seconds yearonear and 1% sequentially to 2740 crores. Our opex grew at 5% yearon year and dgrrew 1% sequentially to 1,785 14:36 14 minutes, 36 seconds crores for the quarter. Cost to income as a consequence was down to 65.1 versus 66.3 last quarter. Our operating profit 14:44 14 minutes, 44 seconds therefore uh in this quarter grew 11% year-on-year and 5% sequentially to uh 955 crores. 14:52 14 minutes, 52 seconds Net profit for the quarter therefore on a standalone basis was 230 crores versus 214 crores sequentially of the previous quarter and 69 crores same time last year. 15:02 15 minutes, 2 seconds uh in terms of asset quality uh NPA uh and NPA ratios GNPA was down 43 bits QQ to 1.45 and NNPA was net NPA was down 15 15:12 15 minutes, 12 seconds bits Q to.39 uh coverage ratio was at 73.6%. 15:19 15 minutes, 19 seconds Our total net slippages for the quarter was 624 crores as compared to 711 crores last quarter. Uh net slippage in the 15:26 15 minutes, 26 seconds wholesale was again flattish uh in fact negative 1 cr aided by recoveries. 15:32 15 minutes, 32 seconds Credit card slippage net slippage is 580 crores and micro finance has now come down to 53 crores for the quarter. The 15:39 15 minutes, 39 seconds rest of the retail was uh a negative of 8 crores. So more recoveries than slippages. So essentially our slippages are pretty much coming from cards and 15:48 15 minutes, 48 seconds and a significantly reduced trend that we see on the micro finance portfolio. 15:53 15 minutes, 53 seconds uh uh the SMA book in micr finance is reduced to 84 crores as of uh March 31st 16:00 16 minutes as compared to 124 crores uh as of December. Clearly uh reflecting the improved collection efficiency which I 16:07 16 minutes, 7 seconds think is now clearly reached more than optimal levels and we will expect it to be stable in this range uh for a while. 16:15 16 minutes, 15 seconds uh the lower SMA book uh in uh as at March also naturally uh implies a reduction in slippages that we will 16:22 16 minutes, 22 seconds expect in Q1 on the J on the micro finance front. Uh I would also like to add that 95% of our portfolio on MFI is 16:30 16 minutes, 30 seconds now covered under CGFMU. Um uh we will uh expect to raise a claim of about 80 crores in the current year uh which 16:39 16 minutes, 39 seconds pertains to NPA that would have happened about a year back. 16:43 16 minutes, 43 seconds On provisioning uh the total net provision on advances was 684 crores uh of this cards was the bulk at 489 crores 16:51 16 minutes, 51 seconds in micro finance it was 154 crores and this was on account of catchup provisioning on elevated slippages that we had seen in H1 given our provisioning 17:00 17 minutes policy of 25% per quarter and all other retail put together was 34 crores most of it being for standard asset provisioning and similarly wholesale for 17:08 17 minutes, 8 seconds 7 crores again largely standard asset provisioning credit cost for the quarter was 65 basis points. Uh on capital uh 17:16 17 minutes, 16 seconds position total capital was at 14.25% and CT1 was 128% versus 14.9 and 13.45 as at December 31st 2025. 17:28 17 minutes, 28 seconds With this we will now open the session for Q&A. 17:34 17 minutes, 34 seconds Thank you very much sir. We will now begin the question and answer session. 17:38 17 minutes, 38 seconds Anyone who wishes to ask questions may please press star and one on the touchstone phone. If you wish to withdraw yourself from the question queue, you may press star and two. 17:47 17 minutes, 47 seconds Participants are requested to use only handwriting a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. You 17:55 17 minutes, 55 seconds may please press star and one to ask questions. 18:06 18 minutes, 6 seconds The first question is from the line of Rken Sha from IFL Capital. Please go ahead. 18:12 18 minutes, 12 seconds Hi, good afternoon. I had four questions. I just take them down. The first one is you know if you could qu I'm sorry uh Mr. Shai your audio is not 18:22 18 minutes, 22 seconds clear sir may request you to kindly use your handset please. Uh is this better? Yes sir please. 18:27 18 minutes, 27 seconds Yeah so I had four questions. Uh I'll ask them one after other. The first one is on if you could quantify the quantum of uh transitionary deposits from IC in 18:37 18 minutes, 37 seconds 4Q and an extension to that is once the Emirates money comes in hopefully in 1Q uh how should we think about the deposit 18:45 18 minutes, 45 seconds growth in FI27 and 28 because that will be reasonably decent amount of capital. 18:50 18 minutes, 50 seconds So what would be the overall deposit growth plans? So that's the first one. I'll ask the other three later. 18:58 18 minutes, 58 seconds Yeah. So on the on the transient flow approximately uh 5,000 crores uh was the transient flow uh for the last few in March and first couple of days in April. 19:10 19 minutes, 10 seconds Uh so so that's uh that's the transition and uh on on on deposit growth uh uh 19:17 19 minutes, 17 seconds you're right I think uh uh we will uh we will kind of deemphasize high-c cost deposits till we uh exhaust uh the 19:25 19 minutes, 25 seconds equity funding that uh that will come through uh in the in the near term and and I think that ability to uh exhaust 19:33 19 minutes, 33 seconds that should should be give or take uh 9 to 12 months uh post which I think we will again be back to having a growth in deposits in line with uh loan book. 19:44 19 minutes, 44 seconds However, we will continue our efforts just just one minute. However, we will continue we will not let go our efforts of retail deposit because aggregative 19:53 19 minutes, 53 seconds and we'll be focusing on that which has been growing in the range of around 25%. 19:57 19 minutes, 57 seconds We'll try to continue to grow that in that range. 20:01 20 minutes, 1 second So fair to say that FI27 deposit growth could be singledigit or low double digit and FI28 then it catches up to 15 20%. 20:10 20 minutes, 10 seconds Um would that be a fair uh assumption? 20:15 20 minutes, 15 seconds Yeah, I think it'll be conscious. It'll be conscious attempt to ensure that we get the right deposits at uh at the at 20:22 20 minutes, 22 seconds the right optimal pricing especially retail and uh and we also foresee that because of a of a of a rating upgrade 20:31 20 minutes, 31 seconds and the ability to target a significantly large uh uh you know uh number of wholesale customers who 20:39 20 minutes, 39 seconds otherwise would have uh maybe not given us that much of an opportunity from a deposit standpoint. I think the interesting situation for us will be 20:47 20 minutes, 47 seconds that there will be a lot more supply than demand from our side on deposits which should largely reflected reflect itself in the cost of uh uh wholesale deposits and term deposits. 20:57 20 minutes, 57 seconds Got it. Fair. A second question is relating to margins. Um how much of residual term deposit uh repricing is 21:05 21 minutes, 5 seconds remaining? uh when do you expect to cut the SAR rates and how should we incrementally think about NIM's X of you know the benefit coming from the capital 21:13 21 minutes, 13 seconds due to Emirates so uh so on on term deposit repricing I 21:21 21 minutes, 21 seconds think uh more or less done some tail left uh I would say the five 10 basis points here 21:28 21 minutes, 28 seconds and there on that which should come through in in in uh in Q1 obviously this is also subject to uh the volatile 21:35 21 minutes, 35 seconds conditions that may prevail from time to time on the on the liquidity front depending on what's happening on the geopolitical front but largely I would 21:43 21 minutes, 43 seconds say some tail left uh margin therefore I would expect Q1 to be flattish and uh and after that we should start seeing 21:51 21 minutes, 51 seconds some increase in margins x of uh capital mix partly also driven by partly also 21:58 21 minutes, 58 seconds driven by the fact that we expect our uh you know credit card book to grow uh which is being degrowing for uh almost a year and a half. 22:08 22 minutes, 8 seconds And when would you plan to cut the SARS? 22:10 22 minutes, 10 seconds Uh is it after the money comes in or it can happen even before that? So that's a that's a continuing process. 22:17 22 minutes, 17 seconds We've already cut close to one and a half% over the last uh 12 months or so uh including the last cut in in Q4 uh January I think. 22:27 22 minutes, 27 seconds So uh so that's a continuous process. I think uh the way we are trying to balance this is to ensure that we are 22:34 22 minutes, 34 seconds able to cross-ell to customers who are probably today uh only having a savings account relationship so that as and when we cut the disruption we don't lose 22:43 22 minutes, 43 seconds customers so I think it's important to ensure that when we built the franchise uh with customer relationships it's important that uh just the rate factor 22:52 22 minutes, 52 seconds is not a disruption so we will do it in a manner in which it is optimal for uh for for the bank in general But the 22:59 22 minutes, 59 seconds trend over the next 12 18 months clearly should be uh trending down. 23:05 23 minutes, 5 seconds Got it. So the third question is pertaining to treasury. Uh would you be able to quantify the absolute uh quantum 23:12 23 minutes, 12 seconds of AFS reserves and also was there any impact from RBI's FX NOP rule in the fourth quarter? 23:20 23 minutes, 20 seconds So Rick uh no material change uh in our uh EFS reserve in this quarter. 23:27 23 minutes, 27 seconds slattish and any impact of the RBI's effects and no no we were fortunately very very 23:35 23 minutes, 35 seconds light on that so we didn't have the uh necessity to reduce our positions because of the RBI uh guidelines 23:43 23 minutes, 43 seconds got it and then the last question is on sorry yeah so I was saying the last question is on asset quality I mean you 23:51 23 minutes, 51 seconds know uh how much of aging provisions is still remaining in MFI because if your slippages are going down but the provisions haven't come off. So is that 24:00 24 minutes 25 50% more remaining or are we done and more importantly you know while you had earlier guided for credit cost to remain 24:06 24 minutes, 6 seconds uh flattish and elevated until 1 the concerning part is that the credit card PL slippages are still rising the 24:13 24 minutes, 13 seconds slippages so why is that happening and you know if you could just throw some color on that 24:20 24 minutes, 20 seconds so on MFI we are uh past the peak and from here on we should see uh the reflection of lower slippages that we 24:28 24 minutes, 28 seconds have seen in the H2 starting to flow through in the provisioning numbers uh and and you know we will kind of become 24:36 24 minutes, 36 seconds equivalent to the slippage kind of a run rate by Q2 or so uh on card breakin I think we've made this statement uh even 24:44 24 minutes, 44 seconds in the last quarter that we will have elevated slippages for two to three quarters I think we have now clear visibility that uh you know uh the the 24:54 24 minutes, 54 seconds this uh slippages that we have is a matter of H1 at tax and u if you look at uh early bucket resolutions uh we are 25:03 25 minutes, 3 seconds able to now quite confidently say that we should materially reduce slippages in H2 we should come down to a slippage 25:11 25 minutes, 11 seconds numbers of more closer to 7% uh 7 7 and a half% in H2 and therefore a credit cost for the cards portfolio closer to 5 25:19 25 minutes, 19 seconds and a half% in H2. uh so that's uh that's the leading indicators that we are uh clearly now uh seeing quite 25:28 25 minutes, 28 seconds distinctly and and we will have to live with this uh slightly more elevated slippages for the H1 of of of this year 25:34 25 minutes, 34 seconds of the coming year and other yeah sorry sir go ahead please yeah yeah other than the current if you 25:42 25 minutes, 42 seconds look at that the I mean you can see in your presentations also the wholesale and uh retail secured which all put 25:49 25 minutes, 49 seconds together consider 74% of the book doesn't show any slippage and it'll continue to maintain that. 25:56 25 minutes, 56 seconds Got it. And where do you think in H2 the normalized credit cost settle given the book mix we have? Of course it will remain elevated about at 250 SPO 26:04 26 minutes, 4 seconds guidance but once all of this normalizes where do they settle? 26:10 26 minutes, 10 seconds So, so if you look at uh if you look at the current uh credit cost contribution, uh I think almost 90 plus% is coming 26:18 26 minutes, 18 seconds from cards and MFI uh MFI as I mentioned uh should start normalizing from Q1 and uh should become in line with the 26:26 26 minutes, 26 seconds slippages uh latest by Q2. uh so that kind of dramatically reduces and in cards uh you know let's say 20% of the 26:35 26 minutes, 35 seconds book is cards simplistically and if we come down to let's say 5 and a half uh or 6% or so uh then we talking about 1.1 26:43 26 minutes, 43 seconds 1.2 to there and you know the rest of it uh should be uh not more than 30 40 basis points. So I'm uh I wouldn't call this a guidance but if if I'm doing the 26:52 26 minutes, 52 seconds math I think we should come down to the 1.5 range uh for the H2. Got it. Perfect. Thank you so much. 27:01 27 minutes, 1 second Those are all my questions. 27:05 27 minutes, 5 seconds Thank you. The next question is from the line of J Mundra from ICICI securities. Please go ahead. 27:13 27 minutes, 13 seconds Yeah. Hi, good afternoon sir. Uh two questions. So first is while you mentioned that the yields uh have dropped because of the repo rate change 27:22 27 minutes, 22 seconds and the adverse loan makes. uh but uh I wanted to check you would have this option uh even going ahead that you know 27:30 27 minutes, 30 seconds you can look at absolute growth uh while uh let us say growing in some of the areas such as wholesale or secured 27:37 27 minutes, 37 seconds credit which would have an implication on the yield even going forward without even assuming a repor rate to be stable. 27:44 27 minutes, 44 seconds So do you have any n threshold or yield threshold? Uh because you would have this choice even going ahead and just an 27:53 27 minutes, 53 seconds observation with that the yield that we disclose in gold affordable housing uh prime labg looks uh in my opinion much 28:03 28 minutes, 3 seconds lower than the peer sets. So any comments there? 28:08 28 minutes, 8 seconds So on on uh the uh trend on on on on yields on advances uh uh J I think uh 28:16 28 minutes, 16 seconds the way we would look at it is that the compensation on margins should be driven through cost cost to assets and through provisioning line both uh clear 28:25 28 minutes, 25 seconds visibility as we move forward on the on the provisioning I just mentioned uh the cards impact on cost to assets as we 28:33 28 minutes, 33 seconds scale up our secured assets uh we've told this in the past it's been an investment year for us last year uh and 28:40 28 minutes, 40 seconds maybe uh uh you know year before that when we were growing our secured assets and and you know when the growth rates are 50 60% cost of acquisition does tend 28:48 28 minutes, 48 seconds to be materially high and these are uh relatively low margin businesses as compared to unsecured businesses. So, so 28:56 28 minutes, 56 seconds the the traction has to come from cost to assets. When the secured retail assets begins to get materially profitable uh as we move forward in the 29:04 29 minutes, 4 seconds current financial year, we expect that to uh you know progress. We've already broken even on that business uh in Q3 Q4 29:12 29 minutes, 12 seconds and we should start seeing uh contribution to uh to net profits from that business. uh it will also mean that 29:20 29 minutes, 20 seconds the uh the quality of return then materially improves because it's coming on the back of uh of a of a lower 29:27 29 minutes, 27 seconds variable uh uh asset quality business rather than a higher variable asset quality business uh in in in we also 29:35 29 minutes, 35 seconds have material opportunity to uh reduce our overall liability cost as I mentioned earlier we should become materially better rated as we uh 29:44 29 minutes, 44 seconds consumate the transaction uh we will also look at an international rating. Um our uh ability to go uh to corporates 29:52 29 minutes, 52 seconds for both current account and term deposits will be a much much wider set. 29:57 29 minutes, 57 seconds Uh after the transaction uh there is enough and more opportunities on crossber uh from a commercial banking perspective to also have a 30:05 30 minutes, 5 seconds differentiated value ad offering to our customers. So I think the uh the all of that should you know consciously get reflected in the cost of liabilities 30:13 30 minutes, 13 seconds which is an important driver for driving profitability for us. 30:17 30 minutes, 17 seconds We the the broad change that we are looking at uh in the in the future as compared to past is work on cost of 30:25 30 minutes, 25 seconds liabilities. Uh we will be in a particular situation where uh you know very highly capitalized well-rated bank 30:32 30 minutes, 32 seconds uh with an opportunity to uh go to large corporates from a deposit standpoint and current account standpoint. At the same 30:39 30 minutes, 39 seconds time we do have good profitable engines uh on the asset side which is a very good combination to have. Uh on the 30:48 30 minutes, 48 seconds specific question on yields on uh uh on the secured assets we are consciously looking at within that we will look at 30:56 30 minutes, 56 seconds uh you know relatively low risk uh businesses. We are we are you know if you look at our early indicators like 31:03 31 minutes, 3 seconds bounce etc on affordable home loans and small lap this is like half of industry and and that's conscious uh the last 31:11 31 minutes, 11 seconds thing we want is to build unnecessary risks in uh in secured businesses uh the idea is to get more efficient from an 31:18 31 minutes, 18 seconds operating uh standpoint uh and and and look at cross-ell uh where uh every customer has two or three products uh 31:26 31 minutes, 26 seconds including liabilities and investments with us. So that's really the focus. 31:31 31 minutes, 31 seconds Um sure sure baby. Uh and second question on LDR right. So um I I can understand this 5,000 crores of transient deposit from uh ENDB. 31:43 31 minutes, 43 seconds uh but even if I exclude that um you know we have LDR in our favor I mean the LDR at 82% 31:52 31 minutes, 52 seconds uh could have prompted you to go slow on um you know some of the uh maybe more than 3 crores uh term deposit so if I 32:00 32 minutes look at this quarter uh I believe even adjusting for 5,000 cr the growth in uh 32:07 32 minutes, 7 seconds higher than 3 crores uh TD was um uh was much faster and we may not have the need 32:14 32 minutes, 14 seconds right I mean so I was just trying to understand when LDR is in favor um why 32:20 32 minutes, 20 seconds to grow TD at 12% QoQ is this backended um is this LCR driven and hence it may 32:28 32 minutes, 28 seconds run off or how to uh look at this okay we we've always mentioned broadly LDR 32:35 32 minutes, 35 seconds should be in the 82 to 87% I think these are period and numbers uh you know average LDR probably be closer to 85% 32:44 32 minutes, 44 seconds which is reasonably within our comfort zone. Uh and by the way that flow was not from ENBD. It was a it was a it was 32:52 32 minutes, 52 seconds a transaction that we got the escrow for a capital infusion of a company. 32:57 32 minutes, 57 seconds Uh and and you know that it was nothing to do with the NBD in that sense. So, so again I think the optimization of the 33:04 33 minutes, 4 seconds balance sheet if I can you know use that phrase in a broader term is an ongoing process and I think we are more focused 33:11 33 minutes, 11 seconds right now on ensuring that uh we open up uh you know relationships on all fronts 33:17 33 minutes, 17 seconds deposits and loans and uh I I don't think uh you know I don't think we are 33:24 33 minutes, 24 seconds chasing deposit growth at any cost to to optim to to kind of reflect some outside number or anything like 33:31 33 minutes, 31 seconds uh it is just a natural consequence typically March is a little heavy on deposits as well. So again in in in short if you look at average LDR I I think we should be closer to 85%. 33:43 33 minutes, 43 seconds And coming to your point on retail deposit where you choose it is not a question of choosing it is a question of building up the customer base in order to meet your LCR agreed to number one. 33:52 33 minutes, 52 seconds Number two unless otherwise you have a relationship through one of the hoop product you will not be able to expand your relationship of three to four products with the customers. So 34:00 34 minutes naturally it has to start either with one of the asset product or it has to start with something as the investment product. Most attractive investment product is not a anything like it is 34:08 34 minutes, 8 seconds going to be FD. So less than three crores you know that it is uh that population which has an ability to borrow as well. If I have an if I if I 34:16 34 minutes, 16 seconds just onboard them as a customer then I am having a bigger ability for expanding it in the other side of the balance sheet also. These are all the things 34:24 34 minutes, 24 seconds which is driving us and more about the branch footprint if is there the footfall to the branch increases first with the FD then with the savings fund 34:32 34 minutes, 32 seconds then there's an asset it goes that order or alternatively the salesdriven asset team they'll get the asset then they will get into the branch fall 34:40 34 minutes, 40 seconds you will continue to grow 24 right sure sir and last questions are on 34:47 34 minutes, 47 seconds credit card business um uh is this uh right to understand that once I mean you would be looking to grow that business 34:55 34 minutes, 55 seconds or the business itself will grow once you see slippages normalization or you know we are at a point where you know 35:03 35 minutes, 3 seconds business will definitely grow and you know uh credit cost or slippages will also come down and just like GLG where 35:11 35 minutes, 11 seconds you have an SMA book is there any numerical data point to give an early delinquency stuff on credit card also 35:20 35 minutes, 20 seconds sir thank So with regard to the growth, I'll give a broad uh sense to how we are approaching it which I said that in my 35:28 35 minutes, 28 seconds speech as well. As far as the uncircuit is concerned, we will try to have it in the range of 20 25% which includes credit card personal loan and that of 35:37 35 minutes, 37 seconds the PLC neociated JG right all of them that that's overall. So if the balance sheet 35:45 35 minutes, 45 seconds keeps growing and uh naturally there is an opportunity for this particular group is also to grow because it has to 35:52 35 minutes, 52 seconds maintain the 202%. In our own uh internal calculation it appears that it'll continue to grow at 15% is what it'll be able to catch up when the rest 36:00 36 minutes of the book is growing at 20 25%. And this going at 15% will be able to maintain that particular equilibrium and balance with regard to that slippage and 36:07 36 minutes, 7 seconds other things. So, so yeah, I think you know I would I would say that you know uh uh we we are the the the slippages 36:16 36 minutes, 16 seconds numbers are going to be elevated as I mentioned and uh it it it our judgment is that this should be uh largely an H1 36:25 36 minutes, 25 seconds phenomena and and uh and from H2 onwards as I mentioned we should start seeing uh you know pretty much very very 36:32 36 minutes, 32 seconds normalized numbers and that is coming on the back of uh how we read the early delinquency. So if you look at our early 36:39 36 minutes, 39 seconds buckets that is what is giving us the confidence and that has been in that is month- on month improving over the last few months and consciously uh with steps 36:48 36 minutes, 48 seconds that we have taken. So there is a correlation of what we have done uh to the outcomes and therefore the uh therefore the uh let's say the 36:56 36 minutes, 56 seconds visibility for this uh materially changing from H2 37:03 37 minutes, 3 seconds right sure all the very best sir thank you thank you thank you the next question is from the 37:12 37 minutes, 12 seconds line of Kunal Sha from city group please go ahead yeah uh thanks for taking the question. 37:19 37 minutes, 19 seconds So uh when we uh look at it again in terms of the question on growth versus margin maybe there would have been some 37:27 37 minutes, 27 seconds transient uh flows towards the end of the quarter but eventually if I look at RO is still closer to 0.55 odd percent 37:35 37 minutes, 35 seconds okay and we are growing at a much faster pace uh so would the priority be more in terms of scaling up the ROA and having a 37:44 37 minutes, 44 seconds more calibrated growth or we still see like 25 30% growth coming in but then ROAS remain modest. Okay. Cyclically 37:52 37 minutes, 52 seconds credit cost can help to an extent but otherwise uh driven by name fee opex should we see like ro is continuing at a similar level. 38:03 38 minutes, 3 seconds No. Uh so Kunal uh u I think u one is that um the uh the growth that we are 38:11 38 minutes, 11 seconds doing on the loan book side if I if I want to kind of take that uh we are very conscious to look at ensuring that uh 38:19 38 minutes, 19 seconds the the mix of businesses moving towards the lower risk products and and there is an opportunity on wholesale. We are also 38:27 38 minutes, 27 seconds positioning ourselves on the wholesale front clearly with respect to uh you know the capital infusion and the rating upgrade that we will naturally assume uh 38:36 38 minutes, 36 seconds post the transaction. uh it also means that the uh I think I mentioned this earlier in the call the uh the supply 38:43 38 minutes, 43 seconds demand for us on the liability side gets heavily skewed on our favor for the first 12 to 18 months where our need for 38:51 38 minutes, 51 seconds deposits and borrowings will be significantly lower than what the the opportunity to get those will be because 38:58 38 minutes, 58 seconds we'll widen our uh opportunity set from wholesale and other other areas. So, so therefore cost of liabilities will will 39:06 39 minutes, 6 seconds come down uh due to these factors. That will be one driver for ROA. Second driver is that we will also have to 39:13 39 minutes, 13 seconds optimize for an ROE number over a three-year period. So, which will be a combination of growth into ROA, right? 39:18 39 minutes, 18 seconds So, one could choose to be a very high ROA, low growth and yet not get to ROE. 39:25 39 minutes, 25 seconds So, I think we will start focusing naturally. I think because of the tailwinds that we have on the businesses, we will have organic ROA as 39:33 39 minutes, 33 seconds well as a expansion of ROA due to capital coming through in the second half of the year. So we see an opportunity to grow in the 20s with 39:42 39 minutes, 42 seconds profitability which is what uh which is what the focus will be. 39:48 39 minutes, 48 seconds Sure. And in terms of the ROA construct, if you can give between these three segments, wholesale, secure, retail and unsecured, how how does it stack up now? 39:56 39 minutes, 56 seconds And uh maybe eventually uh maybe 18 24 months down the line, how should we see it? Maybe unsecured definitely moves up 40:04 40 minutes, 4 seconds with the uh normalization of the credit cost. But today in terms of wholesale and secured, is it like two ROA dilutive? 40:13 40 minutes, 13 seconds No. So wholesale is uh kunal highly profitable also uh driven by the liability franchise that uh that is there in that book uh you know so I 40:21 40 minutes, 21 seconds think while if we look at only assets for ROA in wholesale that obviously will be more in the 1% uh or thereabouts 40:29 40 minutes, 29 seconds range but if we look at uh fee income treasury current account businesses ability to get salary accounts for us through sale I think we have to look at 40:38 40 minutes, 38 seconds it in a holistic picture and then that becomes highly profitable so uh it is is it is in two plus% zip code uh and I'm 40:45 40 minutes, 45 seconds using PBT and I'm using the denominator as wholesale loan book. So naturally the moment you look at a bank loan book you 40:52 40 minutes, 52 seconds have to add 30 35% of uh you know GX and other investment. So just be careful on the math when you look at extrapolating 40:59 40 minutes, 59 seconds that for the bank. Uh on the secured retail uh we just mentioned that we've uh it's been on the investment phase for 41:06 41 minutes, 6 seconds the last couple of years and uh last quarter uh as H2 of fiscal 26 was 41:14 41 minutes, 14 seconds already breaking even for uh secure retail and we should move towards a a a you know somewhere in the 70 to 90 basis 41:22 41 minutes, 22 seconds points PBT ROA for that business uh as we move towards the uh current financial year. Every business will move towards a 41:30 41 minutes, 30 seconds better profitability for different reasons. Uh secured retail is more a question of scale uh and productivity optimization. Unsecured is a question of 41:39 41 minutes, 39 seconds optimizing on the or the outcomes on the provisioning and some optimization on the cost. Uh wholesale I think is 41:45 41 minutes, 45 seconds already operating on uh I would say more than optimal ROA profitability because we have obviously seen zero credit cost for the last 3 to four years. 41:56 41 minutes, 56 seconds Sure. Sure. And one last thing in terms of again the yield construct u uh so 50 odd basis points even when we look at 42:04 42 minutes, 4 seconds some kind of a mix change however lower yield we would have done it or maybe no but that's to coming towards the end of 42:10 42 minutes, 10 seconds the quarter so and maybe repo again when we look at it for us uh the eBlr link portfolio would be relatively lower 42:18 42 minutes, 18 seconds compared to anyone else uh so is it like a larger part is a liquidity component within it not maybe this 50 bits appears to 42:26 42 minutes, 26 seconds much higher. Okay, looking at putting everything together. 42:32 42 minutes, 32 seconds So partly mix change, partly cards reversal of interest due to slippages and and partly due to liquidity uh I 42:40 42 minutes, 40 seconds would say is is uh all three are uh you know relatively important factors. 42:48 42 minutes, 48 seconds Okay. Okay. And now it should settle at this levels or it will further go down as we are focusing more on the lower risk uh portfolios uh offset by the cost 42:56 42 minutes, 56 seconds of liabilities benefit which we'll get in. 42:59 42 minutes, 59 seconds So I would say margins should flatten out and and therefore we might have some more reduction in uh yield on advances largely compensated by cost of deposits. 43:09 43 minutes, 9 seconds Got it. Perfect. Yeah. Thanks. Thanks and all the best. Yeah. Thank you. Thank you. 43:18 43 minutes, 18 seconds The next question is from the line of Shubranchu Mishra from Philip Capital. Please go ahead. 43:24 43 minutes, 24 seconds Uh hi. So uh in the PP I don't think there's a uh source split for the credit card sourcing. So how much is it from 43:34 43 minutes, 34 seconds our uh in-house uh customers uh SASA customers or liability customers? How much is it from the co-brand and how 43:41 43 minutes, 41 seconds much is it from open market? Uh second is what's the total amount of write offs that we have taken from the credit card 43:49 43 minutes, 49 seconds pool in fiscal 26 and how much in 20 fourth quarter? uh what kind of uh write 43:56 43 minutes, 56 seconds offs or settlements are we looking uh going to uh going to look forward in 27 and uh with this new capital coming in 44:04 44 minutes, 4 seconds are we looking at a change in the management as well uh u at the CXO level MD level uh happy to uh take these 44:13 44 minutes, 13 seconds questions yeah first with the new capital only change what you'll be seeing is the board composition nothing else 44:22 44 minutes, 22 seconds okay as far as the card composition is concern concern you want. 44:25 44 minutes, 25 seconds Yeah. So I'll take I'll take the question on write off and then I'll give it to this Vikram on on uh on the mix of origination. So we took a about a 590 cr 44:34 44 minutes, 34 seconds write off in Q4 on cards uh which is nothing but a mathematical consequence of slippages and non-upgrades within 120 days. It's a technical writeoff. We 44:43 44 minutes, 43 seconds obviously continue to uh collect from these customers and for the year it was approximately 2, uh 100 crores. Vikram on sourcing. 44:54 44 minutes, 54 seconds So on on the sourcing front for you have seen the new origination uh numbers uh of last 3 four uh months. Uh out of this 45:04 45 minutes, 4 seconds total sourcing 90% of it is uh sourced by our own direct sales teams in the 45:10 45 minutes, 10 seconds market. about 10% of what we s what we source on our own comes from our branch 45:17 45 minutes, 17 seconds network and our co-brands contribute uh about 10% uh of of the total 45:25 45 minutes, 25 seconds 80% 80% is direct sales 10% is co-brand and 10% is u u balance right 45:34 45 minutes, 34 seconds yeah ballp is right right and uh just one uh follow-up question to jib this 2,100 crores of 45:41 45 minutes, 41 seconds write off that we just spoke of and 590 of technical write off that we are speaking of ballpark the recovery uh is 45:49 45 minutes, 49 seconds say 30 cents to a dollar right or 25 cents to a dollar no it should be a little lower closer to maybe 15 cents to a dollar 45:58 45 minutes, 58 seconds 15 cents to a dollar and that to over a period of two three years not immediately in 27 bulk of it comes in the first 12 to 18 46:06 46 minutes, 6 seconds months okay so 10 cents in 27 other 5 cents uh back end in 28. Yeah, that that is a good estimate. 46:15 46 minutes, 15 seconds Yeah. 46:16 46 minutes, 16 seconds Right. Thanks. Thanks. That was very helpful. 46:22 46 minutes, 22 seconds Thank you. The next question is from the line of Pan Engineer from CLSA. Please go ahead. 46:30 46 minutes, 30 seconds Yeah. Hi team. Uh congratulations on the quarter. Uh most of my questions have been answered but just to clarify one thing. J you mentioned that uh NIMS will 46:39 46 minutes, 39 seconds be stable in 1 Q and then improve 2Q onwards. That's right. 46:47 46 minutes, 47 seconds But what will drive the improvement from 2Q if the TD repricing is over? Uh I don't is it just the fact that your 46:54 46 minutes, 54 seconds rating upgrade will uh lead to lower wholesale deposit rates. Is that the reason? 47:00 47 minutes P one mathematical outcome is the sheer amount of capital we will have. Right? 47:03 47 minutes, 3 seconds So the leverage will go down to four. So that itself will be one. I don't think there is a material change in spread. 47:09 47 minutes, 9 seconds There'll be some improvement in spread as our credit card slippages come down and therefore standard asset credit card book plus MFI book should become 47:17 47 minutes, 17 seconds slightly higher percentage than where we are today. 47:20 47 minutes, 20 seconds Okay. Okay. So spreads will be the same but the math impact is there of the equity capital. And secondly on 47:28 47 minutes, 28 seconds wholesale deposits, can you just give us a sense of how the rates have moved say since the time uh the Emirates deal was 47:36 47 minutes, 36 seconds announced uh and then even after the Gulf War? I'm assuming it would have gone back up. Can you just give us some sense of where to where have they gone 47:44 47 minutes, 44 seconds in the last you know four five months or six months since you announced? 47:50 47 minutes, 50 seconds So, so broadly I think the transaction has allowed a clear reflection on the on the pricing on the CD front uh and to 47:59 47 minutes, 59 seconds some extent the borrowings that we have uh from interbank borrowings, foreign currency borrowing etc. Um on the TD 48:08 48 minutes, 8 seconds front, I think it's been more a reflection of liquidity conditions that we've seen. March was tight, so it went 48:14 48 minutes, 14 seconds up. So nothing different materially yet from a uh just because of the transaction. I think that we will expect 48:22 48 minutes, 22 seconds to see once we have a a rating upgrade which which obviously will come through uh ideally immediately post a transaction. Uh and and and and we will 48:31 48 minutes, 31 seconds also look to get an international rating uh so that we are able to very confidently attract the MNC business uh 48:39 48 minutes, 39 seconds in India because that will also be an important segment to open up uh post the transaction. Somebody 48:49 48 minutes, 49 seconds so I mean just to add to Jedi's point I think there is you know increased acceptability of the name within the corporate world as well. So there is 48:57 48 minutes, 57 seconds increased traction and we've added many new NTV clients on wholesale side from a liability perspective. So it it is helping 49:06 49 minutes, 6 seconds and this will further sort of capital go ahead. Sorry, I'm I'm thinking is 49:15 49 minutes, 15 seconds that also coming at a lower cost? You're getting a wider range of corporates. 49:19 49 minutes, 19 seconds That's good to know. Is the deposit also coming at lower cost yet or that will only be in the future? 49:26 49 minutes, 26 seconds No, as J has said clearly, we have not seen the impact of the transaction on the rate uh rate so far and in the 49:35 49 minutes, 35 seconds future when the bank's rating goes up from A to A minus expecting that to be impact. 49:42 49 minutes, 42 seconds I think there are two things that will happen Pan. One is that as Mr. Kumar said we'll have a material rating upgrade and second I think we will have 49:50 49 minutes, 50 seconds a peculiar situation where need for deposits versus supply will be skewed in our favor. So that that will uh part of it that hopefully structural part of 49:58 49 minutes, 58 seconds that will be cyclical for the next 9 months. 50:01 50 minutes, 1 second Understood. Understood. And lastly just a bookkeeping question. Uh what is your mix of savings accounts deposit ticket wise 50:10 50 minutes, 10 seconds like how much below five how much say 5 to 25 etc. 50:16 50 minutes, 16 seconds I'm not carrying that data. I'll uh below five and above five any broad if you can share. 50:23 50 minutes, 23 seconds I think below five should be uh a high single digit percentage 10% or so 50:30 50 minutes, 30 seconds of SA or of totals of savings to savings. I think that was your question. 50:36 50 minutes, 36 seconds Yeah. Yeah, that was my question. So 90% of your SA deposits are more than five lakh tickets. 50:44 50 minutes, 44 seconds Uh just one second please. Yeah. 50:52 50 minutes, 52 seconds Sorry. Uh I'm being corrected. 33% is below uh five lakhs. Okay. Okay. Got it. Got it. Okay. Yeah. 50:59 50 minutes, 59 seconds That that's it from my end. Uh thank you and wish you all the best. 51:05 51 minutes, 5 seconds Thank you. The next question is from the line of Pam Subramanyan from Invest. Please go ahead. 51:13 51 minutes, 13 seconds Yeah. Hi uh good afternoon and thanks for taking my question. Uh I just again coming back to the point on NI right so 51:20 51 minutes, 20 seconds NI is largely flattish quarteron quarter uh versus you know about a 15% balance sheet expansion uh sequentially so I'm just trying to understand and I can see 51:28 51 minutes, 28 seconds on the liabilities you know it is sharply led by uh wholesale and treasury which you're showing in slide 10. Uh so 51:37 51 minutes, 37 seconds is it that we've raised a lot of short-term liabilities which as soon as the equity comes in we will pay this off and you know basically we're leveling up 51:44 51 minutes, 44 seconds the book as quickly as possible. Uh is broadly this is how we are going to you know operate from here on until the capital. 51:53 51 minutes, 53 seconds So perhaps some amount of optimization is being attempted where we are looking to see how we can uh you know optimize 52:01 52 minutes, 1 second the balance sheet post capital inclusion because the best bang for the buck will be to uh retire liabilities rather than invest in uh short-term securities. So 52:09 52 minutes, 9 seconds to some extent uh we are doing that uh to the extent it is does not conflict with LCR and other gaps that we have to 52:16 52 minutes, 16 seconds run on our liability book. uh but otherwise the reduction in cost of funds the cost of deposits is more a function 52:23 52 minutes, 23 seconds of uh the environment rates and the cut in S that we have taken. 52:29 52 minutes, 29 seconds Okay. Uh J if this wholesale and treasury this 57,000 cr that you're showing what is the broad tenure of that and this is all collable right? 52:39 52 minutes, 39 seconds We will have some amount which is nonable also have nonable% average tenor should be in the six month 52:47 52 minutes, 47 seconds zone 6 to 8 months retail would be one and a half years or so or one year plus 52:55 52 minutes, 55 seconds wholesale would be in the six month zone non CD book okay and the CD book it CD book which should 53:04 53 minutes, 4 seconds yeah 3 to six months yeah okay and and if I heard you correctly you said the CD market is already reflecting the say benefits of you know 53:13 53 minutes, 13 seconds the new parent uh did did you say that just now the amount of counterparties that are buying our CDs have gone up 53:21 53 minutes, 21 seconds significantly so it's definitely helping us okay uh ultimately ultimately we will you 53:30 53 minutes, 30 seconds know the counterparties will also expect uh the final uh rating outcome for them to kind of uh you know ultimately reflect it fully. So, so that's a matter 53:39 53 minutes, 39 seconds of you know whatever few few weeks or months or whatever. Yeah. 53:44 53 minutes, 44 seconds Okay. What is the broad benefit you've seen in the CD say rates versus before? 53:48 53 minutes, 48 seconds U we are not a very big player in the CD market. Whatever is required to be raised for it we able to raise it then 53:56 53 minutes, 56 seconds and now also future will decide about after the transaction is put through. 54:01 54 minutes, 1 second Currently it's more counterparties number of counterparties that could buy. 54:06 54 minutes, 6 seconds Yeah, fair enough. Fair enough. Uh if you could talk about what is a broad say yield on your wholesale book versus your 54:14 54 minutes, 14 seconds retail book. In your retail you've given segment wise but you say broad yield differential between wholesale and retail because clearly wholesale is becoming a you know segment of focus. 54:28 54 minutes, 28 seconds So uh approximately 8% yield on wholesale but that will include a component of foreign currency. If I strip out that it should be closer to 8 54:37 54 minutes, 37 seconds and a half around 8.3 8.3 on wholesale versus how much blended uh blended including cards and MFI. 54:51 54 minutes, 51 seconds Yeah. Yeah. Yeah. Or if you could separate the head also. 54:57 54 minutes, 57 seconds That's about 14.9% blended retail including card. 55:04 55 minutes, 4 seconds That's right for the quarter four. 55:08 55 minutes, 8 seconds Okay. Okay. Fair enough. Uh and and in the retail I can see that you know there is this other component that has gone up 55:16 55 minutes, 16 seconds sharply this quarter. What exactly is that? Because one of the priority sector related IDPC that we did 55:25 55 minutes, 25 seconds in words of the agree portfolio. Uh so that was approximately 2,500. 55:34 55 minutes, 34 seconds Okay. 2,500 of Yeah. Yeah. Okay. Okay. And uh lastly very uh so there are a few say openings 55:42 55 minutes, 42 seconds within the bank uh where we have say interim positions the CFO CRO and uh you know if you could talk about say what 55:50 55 minutes, 50 seconds are the open positions what are the hirings that are pending and that that we could look forward to in terms of say management additions incrementally 55:58 55 minutes, 58 seconds concerned we have been doing the returning right from the March at 2025 itself and it is almost every position has been filled up here also the inter 56:06 56 minutes, 6 seconds because of that transition point we have already shortlisted the candidates. 56:10 56 minutes, 10 seconds We're waiting for the people to join. If you if you ask me that we don't have a vacancy in majority of the CXO positions excepting for the CFO who will be joining us shortly. 56:20 56 minutes, 20 seconds Okay. CFO there is an inter CRO as well right. So okay those are positions that the previous 56:28 56 minutes, 28 seconds CR is continuing the CRO who was there in the role is continuing when he superanate there will be a change. 56:36 56 minutes, 36 seconds Okay. Okay, fair enough. Yeah, thank you so much. Uh, yeah, thank you so much. 56:46 56 minutes, 46 seconds Thank you. The next question is from the line of Jayant Karote from Access Capital. Please go ahead. 56:53 56 minutes, 53 seconds Uh, sir, just one question on the new branches that are opening in Kerala. How is the traction? What are the early signs and any number that you could 57:01 57 minutes, 1 second guide your target for deposit mobilization there? 57:06 57 minutes, 6 seconds See I'll tell you the first day deposit what normally is quite encouraging and since we have opened all the branches the liabilities as well as asset we saw 57:14 57 minutes, 14 seconds some quite a good traction in respect to the gold loan and some of secured products like housing loan and lap loan we saw it on the day one in uh maybe 57:22 57 minutes, 22 seconds around six to seven branches out of 13 branches which we open and liability franchise is yes definitely it's picking up because of uh um the corridor which 57:31 57 minutes, 31 seconds is just known to them and it is too early to comment about uh how it is uh done so far and our belief and the 57:39 57 minutes, 39 seconds prediction is that it is it'll definitely scale much faster than what we have seen it in other geographies. 57:46 57 minutes, 46 seconds Thank you sir. 57:52 57 minutes, 52 seconds Thank you. The next question is from the line of Sor Pwa from Quest Investment Managers. Please go ahead. 57:59 57 minutes, 59 seconds Uh nothing sir. Uh thanks for the opportunity. Uh hope I'm audible. 58:04 58 minutes, 4 seconds Uh sir may request you to kindly use your handset please. 58:12 58 minutes, 12 seconds Uh I hope this is better now. 58:14 58 minutes, 14 seconds Yes sir. Please continue. Thank Uh so sir uh I think you just highlighted in the previous question also that you are a lot of uh senior management positions 58:22 58 minutes, 22 seconds have already in but uh given the kind of business profile change would you be alsoing to change uh change 58:31 58 minutes, 31 seconds several uh uh uh regional level and several business level or or or middle middle management level changes and how 58:39 58 minutes, 39 seconds is the process for that ongoing because your risk profile is reducing materially. uh so your asset uh the kind of asset which you would be wanting to 58:47 58 minutes, 47 seconds build will require maybe maybe require a different set of uh qu uh teams. So just wanted your thoughts on that sir. 58:56 58 minutes, 56 seconds If if you just look at it our asset building itself has started 2 years before. So when we wanted we have invested heavily during that period itself the new asset managers with a 59:04 59 minutes, 4 seconds clear view of scaling the business to the extent what you have what we intend to and you have been seeing it last four five six quarters they continuously they 59:13 59 minutes, 13 seconds grow around 30 35% as it is concerned in respect to the other middle management it is a question of only routine business as usual wherever we feel that 59:21 59 minutes, 21 seconds when expansion takes place there will be a new induction and with respect to the managers we have a we we call it as a direct 59:29 59 minutes, 29 seconds manager recruitment through our Manipal University training uh institute which we continue to do as a routine manner. 59:36 59 minutes, 36 seconds Now as we expand the branches there will always be a induction of the managers seniors as well as up to that two levels 59:43 59 minutes, 43 seconds up because the geography expansion needs some new phases also right and first preference is that identify the people with the capabilities and caliber within 59:51 59 minutes, 51 seconds the organization which we have been supporting it. We saw them as one who understand the who gel well with the culture of the bank as well as who 59:59 59 minutes, 59 seconds understand the bank fairly well and their productivity is normally used to be good. Wherever those opportunities are available they they are being considered as well. 1:00:07 1 hour, 7 seconds Okay. And the second question was in in terms of uh you in the beginning of the uh one of the questions you call you highlighted about the crossber 1:00:14 1 hour, 14 seconds opportunity uh with our uh uh with getting the funding from ENBD uh and uh 1:00:21 1 hour, 21 seconds they being the promoters uh how large it opportunity can be and have you already started to create some uh building some capabilities there as well? 1:00:33 1 hour, 33 seconds We have a fairly strong technology capability which is handling of crossber transactions even today and it is a question of extending the pipe to that 1:00:42 1 hour, 42 seconds of uh some more um maybe a single hop or double hop opportunities available. We are exploring all those things and these 1:00:49 1 hour, 49 seconds things we'll be able to do it once our transactions put through. there's opportunities available. This opportunity is pretty high. You know 1:00:55 1 hour, 55 seconds that 135 billion monthly remittance has been coming from that particular corridor and out of which 23 to 25% is coming from this particular bank. So 1:01:03 1 hour, 1 minute, 3 seconds that is an opportunity on which we are looking at. 1:01:06 1 hour, 1 minute, 6 seconds Right. But will you also need to create some branch network related to that in India or our current activities are reasonably strong to at least for to begin with. 1:01:17 1 hour, 1 minute, 17 seconds We have already identified told uh earlier also that we are in the process of identifying the growth opportunity 1:01:25 1 hour, 1 minute, 25 seconds locations. We have already identified 200 locations for growth in this year. 1:01:29 1 hour, 1 minute, 29 seconds If not 200 maybe around 150 to 200 branches we'll be able to open this year. Last year we opened around 52 out of which 23 was open in the last quarter 1:01:37 1 hour, 1 minute, 37 seconds itself and next quarter we intend to open similar numbers and uh similar numbers and we'll continue to maintain that trend for next four five six quarters as well. 1:01:48 1 hour, 1 minute, 48 seconds Great sir. Great. So thanks a lot sir. 1:01:50 1 hour, 1 minute, 50 seconds Thanks for the detailed answer sir. Uh and all the best sir for the coming quarters and years. Thank you. Thank you. 1:01:57 1 hour, 1 minute, 57 seconds Thank you. 1:01:59 1 hour, 1 minute, 59 seconds The next question is from the line of Pritesh from Dan Cat Capital Advisor. Please go ahead. 1:02:05 1 hour, 2 minutes, 5 seconds Hi uh good evening uh and congrats on a great quarter. Just uh two three questions. One is on the LCR uh what 1:02:13 1 hour, 2 minutes, 13 seconds will be the average this quarter 130% 130 1:02:19 1 hour, 2 minutes, 19 seconds 130 and uh from April 1 there was change uh in the LCR regulations. So any 1:02:27 1 hour, 2 minutes, 27 seconds benefit or uh any decline on LCR we can see like to like we should have a 2 to 3% benefit. 1:02:36 1 hour, 2 minutes, 36 seconds Okay. Two three two to three%. Okay. 1:02:39 1 hour, 2 minutes, 39 seconds Fair. And uh the second question was on the prime lap uh interest rate uh though 1:02:45 1 hour, 2 minutes, 45 seconds the sourcing yield is quite steady uh the interest rate is gone down sharply after many quarters I think. Uh so anything to read into that? 1:02:59 1 hour, 2 minutes, 59 seconds So yeah hi hi uh this is Kumar Shishir. I manage the retail assets. If you see on the prime lab uh the sourcing yield we've 1:03:09 1 hour, 3 minutes, 9 seconds been able to sustain quarter and quarter. Uh the portfolio however is actually you know sort of being adjusted 1:03:18 1 hour, 3 minutes, 18 seconds given the report rate that has been dropping since February 25. So you know since now we have seen a broad 125 basis 1:03:26 1 hour, 3 minutes, 26 seconds points drop from 6.5 to now 5.25 we've been at least able to sustain our portfolio yield you know within uh 80 to 1:03:35 1 hour, 3 minutes, 35 seconds 90 basis points drop but at least from a sourcing point of view we are trying to make sure that we do a calibrated 1:03:42 1 hour, 3 minutes, 42 seconds dispersement both for risk as well as pricing and therefore we don't see even going forward this to be you know moderating 1:03:51 1 hour, 3 minutes, 51 seconds So it's more function of a repo rate or the repricing happening uh from a rate cut point of view. Okay. 1:03:58 1 hour, 3 minutes, 58 seconds Yeah. On the existing portfolio that's how it will happen. Yeah. 1:04:02 1 hour, 4 minutes, 2 seconds And lastly on the um MFI ticket size on dispersement it has been moving up now it's almost 32% up uh year on year also 1:04:12 1 hour, 4 minutes, 12 seconds the you know uh portfolio uh outstanding also is going up. How do you see from here on? Uh uh how do we you know uh 1:04:21 1 hour, 4 minutes, 21 seconds because seems to be that the ticket size is one of the highest in the industry right now for us. 1:04:29 1 hour, 4 minutes, 29 seconds Although it is not highest is nothing but a natural that these tickets are bound to go up because of the restrictions for the number of lenders 1:04:36 1 hour, 4 minutes, 36 seconds as for the damping guard rails and the amount is also kept when the combinations of the lenders restrictions and amount restriction naturally only 1:04:44 1 hour, 4 minutes, 44 seconds three or four has to give it instead of having five six people who are distributing it is bound to go up and in our view that it is more or less it is 1:04:52 1 hour, 4 minutes, 52 seconds reaching that uh point where it may not drastically move up it may marginally move up a little 1:04:59 1 hour, 4 minutes, 59 seconds So just to add uh as you're aware MIN specifically guides the number of loans uh that any borrower can take and for 1:05:08 1 hour, 5 minutes, 8 seconds across the industry u the number of sort of outstanding loans even the old ones with more than three has dropped to less 1:05:16 1 hour, 5 minutes, 16 seconds than 6%. And I'm giving you the industry numbers too. And therefore it's like the MD said it's a natural thing that people 1:05:23 1 hour, 5 minutes, 23 seconds are actually looking at you know higher ticket sizes from the MFIs that or the banks that they have business with. The 1:05:31 1 hour, 5 minutes, 31 seconds other thing in context for us is that we also been focusing more on renewal of our existing uh good borrowers and in 1:05:39 1 hour, 5 minutes, 39 seconds fact that also ensures that you know our ticket sizes go up in the second cycle and the third cycle so forth. 1:05:47 1 hour, 5 minutes, 47 seconds So I would say they are still nowhere close to highest in the industry. Not at all. Yeah. Not at all. 1:05:54 1 hour, 5 minutes, 54 seconds Right. Right. I was just uh trying to get a sense that assuming that the guards are still there for many more 1:06:01 1 hour, 6 minutes, 1 second quarters to come. Uh do we see the ticket size still moving up or we will see that there is opportunity to add new 1:06:10 1 hour, 6 minutes, 10 seconds uh customers as the asset quality at least now has improved across the industry. 1:06:16 1 hour, 6 minutes, 16 seconds I would think that you know we'll have to keep in context of the overall loan cap also to a MFI borrower which is you 1:06:25 1 hour, 6 minutes, 25 seconds know kept in any case at two lakhs and therefore uh you know I don't think we are going to see a significant spike 1:06:32 1 hour, 6 minutes, 32 seconds from where all assuming that you know people on an average will have loans with let's say one or two right uh and 1:06:40 1 hour, 6 minutes, 40 seconds therefore this this sort of perhaps can move by another 5% 10% % that's that's the range I would say. 1:06:48 1 hour, 6 minutes, 48 seconds Sure. And lastly uh from this uh crisis which has happened and uh for our lending businesses uh any early 1:06:56 1 hour, 6 minutes, 56 seconds assessment or anything we have noticed or are going to see or is it like on our 1:07:03 1 hour, 7 minutes, 3 seconds uh you know uh on a platter to just to see of uh what can be the impact. 1:07:11 1 hour, 7 minutes, 11 seconds No. So I I think Mr. Kumar mentioned that in his opening remarks. Uh so far we've not seen uh any impact at all both on the wholesale and retail portfolio. 1:07:18 1 hour, 7 minutes, 18 seconds We monitor this very very closely in terms of uh any cash flow issues on borrowers on wholesale any bounce rate going up on retail. Uh so far we haven't 1:07:27 1 hour, 7 minutes, 27 seconds seen anything. Having said that uh it is still early days because the real impact might come over some time. though I I 1:07:35 1 hour, 7 minutes, 35 seconds guess again the other important thing is we've been fairly risk averse on wholesale for now pretty much over the last five years and uh and similarly on 1:07:43 1 hour, 7 minutes, 43 seconds the on the retail front post September 21 uh we've had a very different underwriting uh standards and and as a 1:07:51 1 hour, 7 minutes, 51 seconds result of which we've seen hardly any slippages or hardly any credit costs coming through on the secure retail front. uh so so given the nature of that 1:08:00 1 hour, 8 minutes underwriting uh I I I would I would be surprised if there is a any material impact but we'll have to see how this goes because it depends on many many factors. 1:08:10 1 hour, 8 minutes, 10 seconds Got it. Thank you so much and all the best. Thank you. Thank you. 1:08:16 1 hour, 8 minutes, 16 seconds Thank you. 1:08:19 1 hour, 8 minutes, 19 seconds This will be the last question for today which is from the line of Pragwal an individual investor. Please go ahead. 1:08:30 1 hour, 8 minutes, 30 seconds Yes, Mr. Dagaral. Please go ahead. 1:08:38 1 hour, 8 minutes, 38 seconds I'm sorry, sir, you're not audible. 1:08:48 1 hour, 8 minutes, 48 seconds As well as no response, we now conclude the Q&A session. If you have any further questions, please contact RBL Bank Limited via email at irrank.com. 1:09:00 1 hour, 9 minutes I repeat, Irblank.com. Uh, thank you members of the management. 1:09:06 1 hour, 9 minutes, 6 seconds On behalf of RBL Bank Limited, we thank you for joining us and you may now disconnect your lines. Thank you. Thank you. 1:09:14 1 hour, 9 minutes, 14 seconds Thank you very much. Thanks. Thank you, sir.