State Bank of India — Q4 FY26

State Bank of India Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=bMgkDys8taY Published: 5 days ago

0:03 3 seconds Good evening ladies and gentlemen. I am Pomman Kumar, general manager, performance planning and review department of the bank. 0:12 12 seconds On behalf of State Bank of India, I'm delighted to welcome the analyst, investors, colleagues and everyone present here today on the occasion of 0:21 21 seconds the declaration of the financial year 26 results of the bank. 0:27 27 seconds I also extend a very warm welcome to all the people who are assessing the event through our live webcast. 0:35 35 seconds We have with us on the stage our chairman sir Shri Cetti. 0:42 42 seconds Our managing director corporate banking and subsidiaries Sri Ashwani Kumatiari. 0:48 48 seconds Our managing director international banking global markets and technology Sri Rana Ashotoh Kumar Singh. 0:57 57 seconds Our managing director retail business and operations Sri Ram moan Rao Amara. 1:03 1 minute, 3 seconds Our managing director risk compliance and Sajji Shri Ravi Ranjan. 1:09 1 minute, 9 seconds Our deputy managing director finance Shri Anendra Sundarapal. 1:15 1 minute, 15 seconds Our deputy managing directors heading various verticals and man managing directors of our subsidiaries are seated 1:21 1 minute, 21 seconds in the front rows of this hall. We are also joined by chief general managers of different verticals, business groups, 1:29 1 minute, 29 seconds chief general managers and other senior officials of the circles and various offices are connected through our live 1:36 1 minute, 36 seconds webcast to carry forward the proceedings. I request our chairman sir to give a summary of the bank's 1:43 1 minute, 43 seconds financial year 26 performance and the strategic initiatives undertaken. We shall thereafter straight away go to 1:50 1 minute, 50 seconds questions and answer session. However, before I request chairman sir, I would like to read out the safe harbor 1:57 1 minute, 57 seconds statement. Certain statements in today's presentation may be forward-looking statements. These statements are based 2:05 2 minutes, 5 seconds on management's current expectations and are subject to uncertainty and changes in circumstances. 2:11 2 minutes, 11 seconds Actual outcomes may differ materially from those included in these statements due to a variety of factors. Thank you. 2:19 2 minutes, 19 seconds Now I would request chairman sir for his opening remarks. Chairman sir please. 2:29 2 minutes, 29 seconds Good evening ladies and gentlemen. Thank you for joining us for today's analyst meet following our Q4 and FY26 results. 2:38 2 minutes, 38 seconds At the outset, I would like to state that our FY26 performance reflects a consistency 2:45 2 minutes, 45 seconds born out of a calibrated multi-year shift in how we run the bank. We have focused on strengthening our core 2:52 2 minutes, 52 seconds fundamentals of asset quality, capital, operating efficiency, and franchise depth. The result is a balance sheet 3:01 3 minutes, 1 second that is performing, robust, and resilient. 3:05 3 minutes, 5 seconds Let me briefly touch upon the environment we are operating in. The global economy remains in a phase of elevated uncertaintity with growth 3:13 3 minutes, 13 seconds projected by the IMF for 3.1% in 26 and 3.2% in 27. India however continues to 3:21 3 minutes, 21 seconds outperform [snorts] with FI27 growth projected at 6.9% by the RBI supported by domestic demand and macro stability. 3:31 3 minutes, 31 seconds That said, geopolitical developments and climate related disruptions remain key risks. 3:38 3 minutes, 38 seconds Inflation is expected at 3.8% in the near term with a fullear estimate of 4.6%. 3:44 3 minutes, 44 seconds With some upward buyers in account of energy price movements and weather related uncertaintities. 3:51 3 minutes, 51 seconds From a banking system perspective, credit growth for the uh scheduled commercial banks accelerated to 16% in 3:58 3 minutes, 58 seconds financial year 26 while deposits grew at 13.6%. 4:03 4 minutes, 3 seconds The momentum is continuing in the current financial year and we expect credit growth at 13 to 14% and deposits at 11 to 12% for FI27 for the system. 4:15 4 minutes, 15 seconds Asset quality continues to remain strong and capital buffer is comfortable. 4:19 4 minutes, 19 seconds However, beyond these metrics, the operating landscape is being reshaped by deeper structural shifts. Technology risk is now becoming a systemic risk. 4:30 4 minutes, 30 seconds The emergence of advanced AI models capable of identifying and exploiting vulner vulnerabilities at scale has 4:37 4 minutes, 37 seconds fundamentally changed the cyber security paradigm. The industry is therefore moving towards coordinated systemwide 4:44 4 minutes, 44 seconds resilience frameworks in partnership with the regulators, the government and other key stakeholders. 4:50 4 minutes, 50 seconds At the same time, the regulatory approach to risk is becoming more forward-looking. The transition to expected credit lossbased provisioning 4:58 4 minutes, 58 seconds from April 2027 is a significant step in that direction and we are confident of a smooth transition. 5:07 5 minutes, 7 seconds In this environment, our approach is focused not merely on growth but on improving the quality of our growth by 5:14 5 minutes, 14 seconds making it more durable, capital efficient and more resilient across cycles. This is being executed through a 5:22 5 minutes, 22 seconds set of aligned actions. We are simplifying the bank at scale through project sur which I mentioned earlier with you. Our operations process 5:31 5 minutes, 31 seconds re-engineering initiative. The larger objective is to simplify the customer journey and release capacity within the 5:38 5 minutes, 38 seconds system to focus more on relationship building and business growth. Second, we are building a more digital native 5:46 5 minutes, 46 seconds intelligenceled organization through analytics 2.0. Data and AI are becoming central to decision making across credit 5:55 5 minutes, 55 seconds risk and customer engagement. Third, we are strengthening our reliability franchise as savings increasingly shift 6:02 6 minutes, 2 seconds towards market linked instruments. We are deepening customer engagement through yono, expanding ecosystem partnerships and creating relevant 6:11 6 minutes, 11 seconds offerings for diverse segments. Our balance sheet strategy is moving from volume expansion to a value accretive growth with a sharper focus on 6:20 6 minutes, 20 seconds granularity, product competitiveness and riskadjusted returns. 6:25 6 minutes, 25 seconds We are also expanding into new growth areas including startups, alternative investments, ecosystems, and global trade to keep our portfolio diversified 6:34 6 minutes, 34 seconds and future ready. Against this backdrop, let me now highlight the bank's Q4 FI26 performance. [snorts] 6:42 6 minutes, 42 seconds Driven by strong operating profitability and improved asset quality, I'm glad to share that the bank has surpassed key 6:49 6 minutes, 49 seconds milestones this financial year. Net profit reached a record high at 80,32 crores up 12.88% 6:58 6 minutes, 58 seconds yearonear supported by 11.25% year-on-year growth in operating profit with a domestic NIM at 3.03% 7:06 7 minutes, 6 seconds supporting our guidance to maintain NIM above 3%. 7:10 7 minutes, 10 seconds As total business crosses the 109 trillion mark this performance showcases our strengthening market position and 7:17 7 minutes, 17 seconds sustained customer trust. Our domestic business has grown by more than 11 trillion rupees on yearon-year basis. 7:25 7 minutes, 25 seconds Our balance sheet size has crossed 76 trillion rupees. We achieved resilient deposit growth of 11.03% yearonear by 7:34 7 minutes, 34 seconds about 6 trillion rupees driven by strong inflows in retail term deposits which grew by 14.77% 7:42 7 minutes, 42 seconds and a double-digit savings account growth at 10.6%. 7:46 7 minutes, 46 seconds Despite competitive environment, a 39.46 46% CASA ratio which is an improvement of 33 basis point quarter on key quarter 7:55 7 minutes, 55 seconds sustains our lowc cost funding advantage reinforced by 12.7% growth in foreign deposits. 8:03 8 minutes, 3 seconds The crud growth has been robust and was up 16.87% yearonear as in March 26 which was 8:10 8 minutes, 10 seconds driven by all the segments registering doubledigit growth. The domestic credit deposit ratio was 73.08% 08% at the end 8:18 8 minutes, 18 seconds of FI26 an improvement of 337 basis point year on year all the components of RAM have 8:25 8 minutes, 25 seconds witnessed sound growth the corporate credit growth momentum continues and grew by 14.83%. 8:33 8 minutes, 33 seconds Our foreign offices have contri continue to perform well with growth in advances at 20% year on year in dollar terms it is 8%. 8:41 8 minutes, 41 seconds The asset quality continues to be industryleading with gross NPA at 1.49%. 8:46 8 minutes, 46 seconds 49% improving by 33 basis point and net NP at.39% further improving by 8 basis 8:53 8 minutes, 53 seconds point on year-on-year basis the PCR was at 74.36%. 8:58 8 minutes, 58 seconds The sustained two decade low in NPS validate our rigorous underwriting capability disciplined credit practices 9:06 9 minutes, 6 seconds and effective credit risk management strengthening our capital position. Our CI has improved by 115 basis point year 9:15 9 minutes, 15 seconds on year and stands at 15.4% which is well above the regulatory requirements. The bank has enough headroom to address future credit growth 9:23 9 minutes, 23 seconds requirements. Further, our subsidiaries are demonstrating consistent performance and are driving stakeholder value through digital expansion, product 9:32 9 minutes, 32 seconds innovation, and improved customer experience. We will continue to nurture these subsidiaries and see them creating value for their own share shareholders as well as the shareholders of SBI. 9:45 9 minutes, 45 seconds At SBI digital transformation remains a continuous journey where Yono is a central to our strategy. The strong 9:53 9 minutes, 53 seconds adoption of a new new Yono crossing 4 crore registration within 3 months of launch and bringing total users about 10 10:00 10 minutes crores confirms that digital first banking is now deeply embedded in customer behavior. 66% of new savings 10:08 10 minutes, 8 seconds accounts originating on Yono platform in FI26 demonstrates our successful transition to a digital first 10:16 10 minutes, 16 seconds institution. Our FY26 performance reflects both a strong foundation and the strategic repositioning in an 10:25 10 minutes, 25 seconds environment of intensifying liability competition, evolving customer expectations and rapid technological change. We are reshaping our balance 10:33 10 minutes, 33 seconds sheet, strengthening liabilities, embedding AI and analytics into our operating model and diversifying funding 10:41 10 minutes, 41 seconds sources and growth ecosystems. Our focus remains firmly on delivering consistent riskadjusted returns supported by 10:49 10 minutes, 49 seconds disciplined underwriting, strong asset quality and robust internal capital generation. Our emphasis has always been 10:57 10 minutes, 57 seconds on efficiency and return metrics with our ROA consistently greater than 1% and ROE at 18.5% at the end of Q4 FI26. 11:09 11 minutes, 9 seconds Our ability to maintain an ROA greater than 1% at scale puts us in a top league of global financial institutions with an 11:16 11 minutes, 16 seconds advances book of more than 49 trillion rupees, investments about 18 trillion rupees, deposits of more than 59 11:24 11 minutes, 24 seconds trillion and a balance sheet size of nearly 76 trillion. Most importantly, we are empowering our people with 11:31 11 minutes, 31 seconds continuous training and inclusive culture to build a motivated future ready workforce in this dynamic environment. 11:40 11 minutes, 40 seconds To conclude, we see SBI journey as a closely aligned with India's long-term economic transformation. As the country 11:48 11 minutes, 48 seconds progresses towards the vision of Vixbar 2047, we believe SBI has a unique role to play as a key enabler. Thank you once again 11:56 11 minutes, 56 seconds for your continued engagement and support. My team and I will now be happy to take your questions. 12:03 12 minutes, 3 seconds Thank you chairman sir. We now invite questions from the audience. For the benefit of all, we request you to kindly mention your name and company before 12:11 12 minutes, 11 seconds asking the questions. To accommodate all the questions, we request you to restrict your questions to maximum two 12:18 12 minutes, 18 seconds at a time. Also kindly restrict your questions to the financial results only and no questions be asked about specific 12:25 12 minutes, 25 seconds accounts please. In case you have additional questions the same [snorts] can be asked at the end. We now proceed uh with the question and answer session please. Thank you. 12:42 12 minutes, 42 seconds Yes sir. Definitely compliments to you sir for such a robust uh business growth very good asset quality and if you see 12:51 12 minutes, 51 seconds on year on year uh the highest operating profit and the net profit net profit going beyond 80,000 crores 13:00 13 minutes uh there is only a few concerns looking at the result on the face of it of this quarter where our operating profit also 13:08 13 minutes, 8 seconds has gone down and the net profit also has gone down as compared to the last quarter and mainly dragged the profitability 13:17 13 minutes, 17 seconds directed by the treasury operation the loss in the trading maybe a trading loss or a loss on the valuations of the 13:25 13 minutes, 25 seconds treasury uh book I think which is about 3,500 cr and little bit increase in the overhead expenses in this quarter which 13:34 13 minutes, 34 seconds maybe because of the last quarter it has gone up by about 1,500 1,700 cr the 13:40 13 minutes, 40 seconds overheads So having said that uh uh our slipage has also gone up little bit in 13:48 13 minutes, 48 seconds this quarter maybe 1,00,200 crores up uh in this quarter. So in this scenario 13:56 13 minutes, 56 seconds uh now with the treasury outlook little better in the coming quarters 14:03 14 minutes, 3 seconds uh and uh overhead maybe one time because of the last quarter of the financial year. 14:09 14 minutes, 9 seconds uh can I can we have some idea of going forward uh where do we stand on the 14:15 14 minutes, 15 seconds profitability front uh while the loan book is growing very well uh but you 14:22 14 minutes, 22 seconds yourself said that we can look at still about 14 to 16% growth in the credit book. So looking at this scenario now 14:31 14 minutes, 31 seconds coming forward can we have the comfort of having if not good income from treasury at least the losses are not 14:40 14 minutes, 40 seconds there so that the overall profitability increases and coupled with that now with 14:47 14 minutes, 47 seconds the ECL guidelines getting finalized uh how are we prepared with that is there impact is going to be taken up in 14:55 14 minutes, 55 seconds the in the coming quarters uh whether the numbers have been drawn and what is our plans to take care of 15:04 15 minutes, 4 seconds that those provisions with now as far as the business growth is concerned 15:11 15 minutes, 11 seconds with the emergency line of credit guarantee scheme five coming up with 250,000 cr 15:19 15 minutes, 19 seconds 5,000 is for airlines separately so even business growth uh you yourself has said in some of the interview that 15:27 15 minutes, 27 seconds 70 80,000 crores of prospects are there only through this line of credit looking at your customer base. So in all can you 15:37 15 minutes, 37 seconds uh just give your views on the few points which I have raised sir in this asab you said few points is it okay 15:44 15 minutes, 44 seconds [laughter] 15:45 15 minutes, 45 seconds but uh very comprehensive assessment what you've done first of all I think a few questions which are in your mind let 15:53 15 minutes, 53 seconds me first answer them in terms of uh there seems to be some amount of u maybe 16:00 16 minutes we were not communicated enough in our Q3 I I've gone through my transcript again in Q3 analyst call. We made it 16:09 16 minutes, 9 seconds very clear that our exit NIM is going to be 3%. 16:13 16 minutes, 13 seconds And we also mentioned that in the Q3 December 15 report rate cut will be 16:20 16 minutes, 20 seconds having full impact in the Q4. And these things are something what we stated up front. What has not been known to all of 16:29 16 minutes, 29 seconds us is the eel moment which had definitely impacted the treasury income. 16:33 16 minutes, 33 seconds But even then what we realized that despite the sharp movement in the bond yields because of our very low exposure 16:42 16 minutes, 42 seconds to you know fair value portfolio our hit has not been very significant but you are comparing with the Q4 of the 16:50 16 minutes, 50 seconds previous year for instance we have had 3,800 crores one-time gain on the security receipts apart from that we had positive treasury gains in that quarter. 17:01 17 minutes, 1 second I think overall we all believe that we have given a good set of numbers for Q4 as well as full year and we stuck to our 17:10 17 minutes, 10 seconds guidance in terms of 1% ROA and 3% exit NIM. I don't think there was any surprise to us but I think there is some 17:19 17 minutes, 19 seconds assessment in terms of what analysts like you have done on the NI part. There are two reasons why the net interest income has got impacted as I mentioned. 17:29 17 minutes, 29 seconds One is the impact of 25 basis point rate cut which is reflected in the EBLR portfolio and five basis point cut which 17:38 17 minutes, 38 seconds we have done in the MCLR is fully factored in the Q4 and EBLR book also has gone up. In fact, the composition of the floating rate 17:47 17 minutes, 47 seconds loans slightly has increased. That also is a a a combination of factors which we had known and that is the reason we 17:56 17 minutes, 56 seconds always gave a guidance that then when we talk about NIM we are not talking about in the quarterly NIM numbers. It is a 18:03 18 minutes, 3 seconds fullear exit NIM which we have given the guidance and I hope that we broadly fulfilled that. I think this is something what I wanted to clarify and 18:12 18 minutes, 12 seconds as for the treasury uh going forward I think three four questions which you asked let me answer in the senior serum 18:19 18 minutes, 19 seconds one is slippages slippages of you know Q4 slippages is not a matter of concern and we have from this slippages we 18:28 18 minutes, 28 seconds pulled back almost 850 crores as we speak that means there is no structural issue in terms of asset quality let me 18:36 18 minutes, 36 seconds assure you on that where problem. 18:39 18 minutes, 39 seconds So there's no impact of West Asia so far and these slippages has nothing to do with any stress in the system. It is seasonal. Most of the slippage have come 18:47 18 minutes, 47 seconds from agriculture and some from theme. Uh I will give further guidance as we speak 18:53 18 minutes, 53 seconds on in terms of slippages but we are sticking to our credit cost guidance of 50 basis points even despite what whatever happens on the west conflict. 19:04 19 minutes, 4 seconds We are confident that asset quality is holding up unless of course there is something dramatically happens in the system and macros will further get 19:12 19 minutes, 12 seconds disturbed as things stand now. We are sticking to our credit cost guidance of 50 basis point our credit growth guidance of 13 to 15%. 19:22 19 minutes, 22 seconds And uh you mentioned about treasury income and we believe that the yields will will not create much pain going 19:30 19 minutes, 30 seconds forward. Even if assuming that the yield movement will be there uh our internal guidance which have which has gone wrong 19:36 19 minutes, 36 seconds earlier we felt that the bond yields probably would be moving up to 6.75. 19:43 19 minutes, 43 seconds There has been a sharp movement but now also our regime holds a view that it would be in the range of 6.75 to 6.9 not 19:51 19 minutes, 51 seconds beyond that unless the vestation conflict or any other fiscal imbalances create a problem. Uh ECL guidelines 20:01 20 minutes, 1 second before ECL guidelines let me also talk about ECLGs which is a proactive and preemptive measure in my view. Uh a lot 20:10 20 minutes, 10 seconds of people ask me are there any customers who are coming and asking for ECLGs? Not yet. It will take about 8 to 9 days 8 to 10 days for us to operationalize these 20:19 20 minutes, 19 seconds guidelines and we are reaching out to customers in case of any need they have this facility available. My assessment 20:26 20 minutes, 26 seconds of 70,000 to 80,000 crores is the full uh limit which is available to MSMES and 20:33 20 minutes, 33 seconds other non MSME customers. But our assessment also indicates that not more than 30 in the worst case 30 40% people 20:41 20 minutes, 41 seconds will be utilizing it. It could be more as the conflict goes uh further but it is an excellent step from the government 20:49 20 minutes, 49 seconds of India side to make this available in a proactive measure. ECL guidelines 20:56 20 minutes, 56 seconds we have um made the models ready based on the draft guidelines. We are further tweaking the models based on the final 21:05 21 minutes, 5 seconds guidelines. Uh it would not be appropriate for me to give a number at this juncture. I think probably after the end of June Porto we will have much 21:13 21 minutes, 13 seconds clarity in terms of what is the stock which will create which which is required to be taken care of 21:20 21 minutes, 20 seconds but approximate you have about 29,000 30,000 cr buffer already as I don't want to hazard a guess at this juncture. Let us stick to that. We 21:29 21 minutes, 29 seconds not going to give any number at this time. But one thing I want to make it very clear as I made earlier also that this transition is going to be smooth. 21:38 21 minutes, 38 seconds It is not going to impact our ability to fund credit growth. It will not be impacting our capital ratios as much and 21:46 21 minutes, 46 seconds I hope we will be smoothly transitioning in the next four years in terms of the ECL uh guidelines implementation. 21:57 21 minutes, 57 seconds I hope I answered all your questions. Yes sir. Okay. Thank you sir. Hello sir. 22:03 22 minutes, 3 seconds So I have a couple of questions. Firstly just want clarification in NI we do not have any impact uh whatsoever of any 22:13 22 minutes, 13 seconds forex translation or any forex laws because I remember years ago in a COVID 22:19 22 minutes, 19 seconds quarter we had some NI uh uh issues relating to forex as well. So just wanted to clarify that 22:26 22 minutes, 26 seconds no it's a it's a core NI except that you know the usual uh tax uh interest on tax refund which has come around 1,000 22:34 22 minutes, 34 seconds crores which is added in NI but it is partially offset because some of the penal uh interest which used to be booked in part of interest has moved to 22:44 22 minutes, 44 seconds penal charges but that is just about 600 crores. It is purely the impact of EBLR and some of the floating rate loans on the corporate side. 22:52 22 minutes, 52 seconds Okay. So basically the interest on tax refund is 10 billion versus around 7 billion last quarter. I I think it was 8 800 800. 23:01 23 minutes, 1 second Yeah 7.7 sorry 760 correct? 23:04 23 minutes, 4 seconds Yeah 760. Okay. And then uh sir uh just in terms of uh margins right so what is 23:11 23 minutes, 11 seconds your outlook on margins near nearterm and longer term as well because this quarter we did see that um names global 23:20 23 minutes, 20 seconds nim in the quarter declined around 18 bit so what is the outlook going ahead maybe first half and then you know longer term also 23:29 23 minutes, 29 seconds but I would like to give guidance for the full year maru and as I promised I said that I'll give first year first quarter itself the full year guidance 23:37 23 minutes, 37 seconds and we do not want to create confusion in terms of quarterly guidances. Got it. Got it. 23:41 23 minutes, 41 seconds Because the quarterly in a large book like ours there is a seasonality. There is you know momentum of credit uh 23:48 23 minutes, 48 seconds growth. It is very difficult to give a guidance on the quarterly basis. We are still giving a guidance on an annual basis. We are sticking to our nim of more than 3%. 23:59 23 minutes, 59 seconds For the for the full year 27 for the full year. 24:01 24 minutes, 1 second Okay. Okay sir. and uh if you could give the breakup of gross slippage for Q426 and Q326. 24:11 24 minutes, 11 seconds So that's one question and the other question I had is that what is your total Middle East portfolio? 24:18 24 minutes, 18 seconds Uh and what is the India linked Middle East portfolio like some uh uh Indians 24:25 24 minutes, 25 seconds working abroad may have taken home loans etc. So both if you could give some sense of that. So I'll answer the second 24:32 24 minutes, 32 seconds question first. I think u that answers many people's minds. You know what is happening on the Middle [clears throat] East. See the the Middle East we have 24:41 24 minutes, 41 seconds two large offices Bahin and uh uh DIFC Dubai but the other operations are very 24:49 24 minutes, 49 seconds small wherein retail operations and Dubai we don't have any retail operations at all. So primarily it is a wholesale book and out of this it is 24:57 24 minutes, 57 seconds predominantly either a bank exposure or a sovereign exposure and in both these cases we do not see any concern on that 25:07 25 minutes, 7 seconds and we don't have any much direct exposure either to the med medium enterprises or even corporates so I 25:14 25 minutes, 14 seconds don't see the great impact coming from the corporate side wholesale book side and the retail side where the people 25:21 25 minutes, 21 seconds working in the GCC taking the housing loans. It is predominantly in Kerala. 25:26 25 minutes, 26 seconds The rest of the country is not concentrated but we have not seen any uh impact on the asset quality particularly 25:34 25 minutes, 34 seconds on the housing loans. they normally take housing loan and lot of people what we have realized that they have not come to Kerala back they're still staying put in 25:42 25 minutes, 42 seconds the in the place where they're working and uh there is no asset quality concern at this juncture and because most of the 25:52 25 minutes, 52 seconds GCC countries are coming to a normaly we had moved our people from the GCC countries to India to work from Mumbai 26:00 26 minutes but all of them have gone back now barring a few one or two so which means that things are stabilizing. It will take some time but uh I don't think it 26:09 26 minutes, 9 seconds will lead to any concerns on the asset quality. The first question on the I wanted the slippage breakdown gross 26:17 26 minutes, 17 seconds gross slippages anyway we don't ever give is always first quarter which gives grass slipages and subsequently it is all net slippages 26:24 26 minutes, 24 seconds but there's absolutely no uh any predominant moment uh of any concern in the slippages 26:32 26 minutes, 32 seconds and so what will be that India linked proportion of portfolio the Kerala home loans very small very small okay thank you sir 26:40 26 minutes, 40 seconds thanks a You want anything ash on the no sir what you said is right sir so absolutely no 26:49 26 minutes, 49 seconds concern as of now for us uh the the branches we have in Dubai and uh bahin like chairman said this wholesale 26:56 26 minutes, 56 seconds banking business mostly we do and tel it's mostly non fun business guaranteed we issue for Indian essentially the 27:03 27 minutes, 3 seconds defense kind of so the corporate book what we have is 98% plus is either sovereign or banks or 27:11 27 minutes, 11 seconds some related exposures. So we are not we are not concerned about any corporate exposure in middle for these the three branches globally also exposure we have 27:20 27 minutes, 20 seconds with the India's link total exposure will be 10 12 billion including trade finance and all but we are not seeing any concern on that side 27:29 27 minutes, 29 seconds sir hi j mudra from IC securities sir on your this fi 27 3% plus nim guidance 27:36 27 minutes, 36 seconds that is domestic or the global one just two cl so our guidance is geneneralally domestic we are not giving wholesale I 27:44 27 minutes, 44 seconds mean full bank name ever because see the overseas book is a different creature 27:51 27 minutes, 51 seconds altogether we talking about domestic names and sir within this so let's say there are two parts one is yield and one is cost of funding or cost of deposit uh if 28:00 28 minutes I calculate this quarter right so yield on interest on advances they have been flat right 0.4% 4% increase whereas 28:08 28 minutes, 8 seconds advances have grown by 5% Q in last quarter also they were 5%. So average basis also they should be around 5%. So 28:16 28 minutes, 16 seconds what explains the decline if I calculate this way the yield on advances they've declined by around 30 basis point one is of course the reporate movement 28:25 28 minutes, 25 seconds but apart from that is there anything else which could linger because hopefully the the reporate movement ends here right correct 28:32 28 minutes, 32 seconds so uh what is your thought process on yield on advances going ahead would they be similar stable and hence you know uh 28:40 28 minutes, 40 seconds yeah e advances probably would have some uptick what happened in the Q4 apart from the 28:47 28 minutes, 47 seconds EBLR uh moment see your EBLR plus uh floating rate loans in other than MCLR 28:55 28 minutes, 55 seconds in corporate book was 43% previous year's move to 49%. that moment also 29:02 29 minutes, 2 seconds actually creates. So assuming that we we our house view is that the reported cut is unlikely this year uh report rate 29:10 29 minutes, 10 seconds moment is going to be stable which means that whatever uh we see on the spreads will remain and on the corporate side we 29:19 29 minutes, 19 seconds are seeing how we can change the asset mix and reduce the floating uh link to T bill essentially and bring back the 29:27 29 minutes, 27 seconds yields uh to normaly and much of the loans we have already started moving to MCLR in the corporate side all loans 29:35 29 minutes, 35 seconds which are getting re repriced or refinanced are renewed today are predominantly moving to the MCLR and reduce the floating T bill rate link 29:44 29 minutes, 44 seconds loans that gives us confidence one is the repor rate being stable that is no movement on the EBLR side and the 29:52 29 minutes, 52 seconds corporate book which moved significantly towards T bill probably will be brought back to MCLR 29:59 29 minutes, 59 seconds we even without considering them also we are confident that we'll be achieving in the 3% name because of the you know the stability of 30:08 30 minutes, 8 seconds whatever currently achieved and MCLR will not repric downward right because it will not be repriced because we are 30:16 30 minutes, 16 seconds not adjusting the interest rates on the deposits either repriced lower or repriced higher is unlikely. So sir 30:23 30 minutes, 23 seconds assuming there is no change in the cost of in the card rate of the deposits uh the cost of deposits should still 30:30 30 minutes, 30 seconds decline right in in at least in the so there are two reasons why they will decline one is I think we are focusing more on the CASA casa component will 30:39 30 minutes, 39 seconds contribute to the reduction if you see even in uh Q Q4 also we have contained the cost of resources and uh the other 30:48 30 minutes, 48 seconds thing is that we we would like to we We've cut down significantly on our wholesale bank uh deposits which are 30:57 30 minutes, 57 seconds expensive. We will further be cutting down on the wholesale uh deposits which gives us some relief on the cost of 31:05 31 minutes, 5 seconds resources right and secondly sir on LCR if you can highlight what was the LCR during the 31:12 31 minutes, 12 seconds quarter Q4 and you know after these guidelines which have come in from April 1st how does that changes? 31:18 31 minutes, 18 seconds What is the LCR number you have? Sir for the quarter it was 124 something 124 approximately 31:26 31 minutes, 26 seconds that was average for the quarter yeah that was the average for the quarter because last quarter it was I think the 130 yeah 31:33 31 minutes, 33 seconds that the liquidity is being consumed right you are growing at 17%. Right. 31:38 31 minutes, 38 seconds Uh but the the current guidelines will give us around 3 to 4% improvement in the LCR. 31:44 31 minutes, 44 seconds And what would I mean this let's say 120 124 becomes 127 128. What would be your let's say floor and maybe the upper limit for LCR to operate in? 31:55 31 minutes, 55 seconds See for a bank of our size we would like to have at least 10 to 15% over the regulatory minimum. Regulatory minimum 32:03 32 minutes, 3 seconds is 100%. So 115% I think uh is a good ratio to have. Today we have as we ended the year around 125%. 32:13 32 minutes, 13 seconds And in this quarter again it'll move up further. So uh but we would definitely need uh if the credit growth continues 32:21 32 minutes, 21 seconds some of some moderation will happen in the LCR we we would be comfortable around 115 to 120%. 32:28 32 minutes, 28 seconds Sure. And lastly sir if you have the number for EFS reserves I mean what was the movement in this quarter? What was in Q3 December end and what is it at the March end? 32:38 32 minutes, 38 seconds You have reserves? We will give you that number separate. Thank you sir. Thank you sir. 32:44 32 minutes, 44 seconds Hi sir. Uh here from Dan Capital just few questions. Yeah. Yes. 32:50 32 minutes, 50 seconds So one is on the uh loan loan processing fees. Uh it has been quite strong this quarter. Uh almost doubled I think. uh 32:58 32 minutes, 58 seconds what has been the reason for that? Uh because loan growth has been strong throughout the year but suddenly this quarter we saw that growth. 33:05 33 minutes, 5 seconds What's your name? Is said Pritesh from Dam Capital. 33:08 33 minutes, 8 seconds Praesh thank you very much for asking this question. I was just waiting for someone to ask this. Everybody is worried about NI. See I think I mean rightfully I'm not undermining that. 33:20 33 minutes, 20 seconds uh the overall construct which we mentioned right in the beginning I don't know it sounded more English to you but 33:27 33 minutes, 27 seconds we really mean every word what we mentioned there we are focusing on the relationship value 33:35 33 minutes, 35 seconds for instance this processing fee is not only coming from retail operations retail operations of course have given a 33:43 33 minutes, 43 seconds significant uptick in the processing fee we have seen both in the large corporate small corporate MSMES everywhere we have readjusted our 33:53 33 minutes, 53 seconds processing fee. It is not only readjusting the processing fee not by way of increasing but reducing the concessions. We have promised them the 34:01 34 minutes, 1 second good quality service and we started charging for that processing the proc efficiency and today we have almost in 34:09 34 minutes, 9 seconds the in the retail operations we have had a growth of 50% in processing fee and 34:15 34 minutes, 15 seconds the corporate book almost 30 35%. So I think uh we are we are encouraging our 34:22 34 minutes, 22 seconds field staff to be more proactive in terms of negotiating on that. 34:28 34 minutes, 28 seconds Sure. Uh uh second question was on u basically the GC yields have moved up but our investment yields are uh 34:36 34 minutes, 36 seconds slightly lower. One would have expected that the yields for us also would have tandemly moved up in the quarter. Is that uh uh that we have moved some of 34:45 34 minutes, 45 seconds the securities and booked some gains and that's why the losses are slightly lower or any other? 34:51 34 minutes, 51 seconds Yeah. Yeah. Some trading has been done some if you see our trading profits have been good this uh this quarter also. So 34:59 34 minutes, 59 seconds that means you know that some of the uh switches we have participated in that uh which also had you know portfolio yield 35:08 35 minutes, 8 seconds moderation has happened there. So basically the profitable securities have to be sold and that's I mean it depends on what securities are asked by the RBI right anything you want 35:17 35 minutes, 17 seconds to add more% 35:29 35 minutes, 29 seconds 5% allowed so if you want we can give the the figures we made in the entire year around 6321. 35:37 35 minutes, 37 seconds Sure. Sure. So last question was on this um uh basically there were news articles that uh lot of uh RBI has asked oil 35:47 35 minutes, 47 seconds companies to move uh uh they are buying dollar buying and uh selling through our our bank and also you know related FX 35:57 35 minutes, 57 seconds related uh you know transactions to our bank. What is uh how is that going to benefit us? Any any any outlook on that? 36:06 36 minutes, 6 seconds I'm not aware of this. Oh, okay. Thanks. Yeah. 36:22 36 minutes, 22 seconds Excellent. 36:24 36 minutes, 24 seconds Excellent annual numbers numbers and excellent payment of tax,000. 36:32 36 minutes, 32 seconds You are doing great service is a backhand compliment. Is it 36:38 36 minutes, 38 seconds [laughter] 36:41 36 minutes, 41 seconds a challenging year that over 25,000 crows in this type of it environment is really wonderful and couple of important 36:50 36 minutes, 50 seconds points now everybody is looking at uh value unlocking and we have over 10% in 36:58 36 minutes, 58 seconds national stock exchange sebi chairman has said it should get listed soon how what's a thought process on value unlocking 37:07 37 minutes, 7 seconds I see page number 50 55 which talks about uh total reserve and surplus 5 lakh some 95,000 crores. 37:18 37 minutes, 18 seconds Now we'll get uh valuation uh fair market valuation on the balance sheet. Apparently this number will also 37:25 37 minutes, 25 seconds go up. But in terms of uh business generation IRRa would like to know what is a thought process if we can use some 37:34 37 minutes, 34 seconds of the capital or value generated in core banking business and uh short-term or long-term ideally. So that would be very nice if you can share in detail. 37:47 37 minutes, 47 seconds Second point is on market share of SBI. 37:50 37 minutes, 50 seconds Today we are talking about 22 20 and 2 and a half%. There has been some thought process and talks going on if one can 37:58 37 minutes, 58 seconds increase market share gradually. So what is the thought process of the bank's board of increasing market share whether 38:07 38 minutes, 7 seconds through rural banking or through district banking or branches and aligning aligning with the government's 38:13 38 minutes, 13 seconds objective if uh in how many years we can come to 25% market share 38:21 38 minutes, 21 seconds and uh what is our core strategy on that also including globalization I think it could be a great opportunity 38:30 38 minutes, 30 seconds Um that's it. Uh I found the results better than expected because I have been present and looking at the transcript 38:39 38 minutes, 39 seconds saw it as a knee-jerk reaction but with your clarification and lot [clears throat] of value unlocking hopefully your direction towards that 38:46 38 minutes, 46 seconds should help in creating greater value year to year. All the best to the board and the team. 38:52 38 minutes, 52 seconds Thank you. Thank you for the compliments. 38:55 38 minutes, 55 seconds Yeah. Yeah. Of course I know you but uh I wish I own 10% of NSE unfortunately we don't uh within the group we have around 39:03 39 minutes, 3 seconds 7.3% holding uh but bank itself would be uh keen on participating in the OFS we have given 39:12 39 minutes, 12 seconds our uh in principal consent to them what kind of participation will happen the board will determine but as you 39:19 39 minutes, 19 seconds mentioned I think the moment NC gets listed the whole shareholding by SBI will be available as reserve to us to 39:27 39 minutes, 27 seconds mark to market. Currently, it is not marked to market in our books. 39:31 39 minutes, 31 seconds Uh yes, I think uh several times you yourself have mentioned the hidden reserves what SBI has in terms of 39:40 39 minutes, 40 seconds strategic investments and this year I think if NSE gets listed that unlocking will happen. We are also seriously as 39:48 39 minutes, 48 seconds you are aware we have embarked on listing uh SBI AMC and uh hopefully in this financial year we'll be able to 39:56 39 minutes, 56 seconds complete which will result in u capital augmentation C1 40:02 40 minutes, 2 seconds and uh this capital we would like that's what I think it gives us confidence that going forward two things which are 40:11 40 minutes, 11 seconds required for supporting the credit growth in terms of capital is fully we are convinced that we They have the capability even with the current 40:19 40 minutes, 19 seconds position we can fund almost 12 trillion credit growth and the further accommodation will help us going forward 40:27 40 minutes, 27 seconds and enough liquidity in the system and a large bank which has got 59 lakh crores which will be probably in this month 40:34 40 minutes, 34 seconds we'll be crossing 60 lakh cr deposits growing at 11 to 12% as I mentioned in my inaugural speech it's a bank which is 40:42 40 minutes, 42 seconds adding 11 lakh cr business every year which is equivalent to several other banks But we want to do it efficiently. The scale is kind of given right when you 40:51 40 minutes, 51 seconds have 109 lakh cr business the normal growth rate itself will add to your scale. So we want to use this capital 40:58 40 minutes, 58 seconds efficiently efficiently where it is required and efficiently in terms of giving the return to the investors 41:05 41 minutes, 5 seconds shareholders to the so we are sticking to our guidance through the cycles we would like to ensure 15% return on 41:13 41 minutes, 13 seconds equity to our investors minimum so your second question I think is very very important question that when you have 41:21 41 minutes, 21 seconds such scale and such dominant market share how do you grow further And this is something what we deliberate very 41:29 41 minutes, 29 seconds seriously in the board and we have now embarked I think I must have mentioned last quarter also that we want to 41:38 41 minutes, 38 seconds increase the market share in every district. Today fortunately the data is available market share data is available 41:45 41 minutes, 45 seconds at the district level. So it is uh our strategy is that even if in 41:53 41 minutes, 53 seconds a district you have a dominant market share of 60%. There are districts where SBI has a market share of 60%. But our 42:02 42 minutes, 2 seconds guidance is that 1% increase in market share whichever is that if whether you have 10% market share or 60% market 42:09 42 minutes, 9 seconds share every district we would like to grow 1%. I'm very glad whenever I travel in the field the lowest officer in the 42:17 42 minutes, 17 seconds bank also is aware of market share. So we are trying to improve the market share in our district. I think this is a 42:24 42 minutes, 24 seconds great strategic shift which is happening and 25% is a little farther but we would 42:31 42 minutes, 31 seconds like to move 1% every year that means you know four to five years as I mentioned several times we would like to 42:38 42 minutes, 38 seconds be 25% in in terms of the GDP of the country thanks for elaborate answer if you can 42:46 42 minutes, 46 seconds permit me particularly on segments I found gold loans it was a focus area Now we have besides 100% growth we have a 42:55 42 minutes, 55 seconds good critical mass of over one lakh crores as a thing express credit also now uh initiative since a few years we 43:04 43 minutes, 4 seconds have a good base now auto sector uh we found a little growth a little muted at 8 and a half% but hopefully with the 43:13 43 minutes, 13 seconds this peacemaking efforts mediation prices coming down oil prices uh 43:19 43 minutes, 19 seconds hopefully you can tell us uh the growth can improve. So can we look at also gold loans whether we can why don't we use 43:28 43 minutes, 28 seconds opportunity to increase our names through that because other gold loan players NBFCs are really uh you having 43:38 43 minutes, 38 seconds rates and we seem to be doing a service but with the entry made if you can increase market share and increase ns 43:46 43 minutes, 46 seconds and also your thoughts on uh this uh increasing the rate uh growth uh rate growth in advances is further through 43:54 43 minutes, 54 seconds this verticals which we mentioned and your priority areas that will be nice you want to respond before I 44:02 44 minutes, 2 seconds so AFS reserve somebody has asked so this 31st March number is 5,136 crores AFS reserve 44:10 44 minutes, 10 seconds they want to see the moment huh moment in December quarter 851 so roughly 3,000 cr decline in 44:17 44 minutes, 17 seconds AFS consume reserve has gone down uh but it did not have much impact on the C to1 ratio. 44:25 44 minutes, 25 seconds um your question in terms of the gold loans so the gold loan market is highly diversified the ticket size what we look 44:33 44 minutes, 33 seconds for example average ticket size of gold loan in our books is about 2.5 lakhs these are price sensitive segment they 44:41 44 minutes, 41 seconds they they're not 20,000 30,000 loan amount of people who are willing to pay anything any rate of interest these are 44:49 44 minutes, 49 seconds price sensitive and gold loan also you must realize there is a very efficient equity product return on equity product, 44:56 44 minutes, 56 seconds roe product because there is zero risk weight on that. So we would like to uh have a very uh strong growth but with 45:05 45 minutes, 5 seconds very qualitative growth. For instance, our overall LTV is 52%. That means you 45:12 45 minutes, 12 seconds know you have very safe lending there and yield is also not bad. I think 8.5 to 8.75 is something what we get on this. 9% 45:21 45 minutes, 21 seconds 9% 9% is a good yield for a product which doesn't require any capital allocation at all and with almost zero 45:28 45 minutes, 28 seconds NPA thank you thanks hi sir this Pan engineer from CLSA uh 45:36 45 minutes, 36 seconds just firstly sorry to hop on the NIM question again but we exited with NIMS of 2.9% 45:44 45 minutes, 44 seconds uh our road map to 3% NIM would be driven by uh deposits no we exited 3% and domestic nim and our guidance always has been on the domestic 45:52 45 minutes, 52 seconds nim but so okay three was the full year NIM right yes full year NIM uh the last quarter's NIM was 2.93 46:01 46 minutes, 1 second no even lower it's in your PPT 2 yeah 2.93 domestic name is 2.93 yeah so for that to improve is it going 46:10 46 minutes, 10 seconds to be a yield driven uh thing or a cost of deposits driven thing so as I mentioned you know you have 60% 46:18 46 minutes, 18 seconds of fixed depos deposits and fixed deposit growth is significant for us 14% 15% on the retail term deposit. We would 46:26 46 minutes, 26 seconds like to have both levers used. One is reduce further cost of resources. It may not be very significant but reduction of 46:33 46 minutes, 33 seconds cost of resources will happen in two ways. One is whether we can further augment our CASA in terms of absolute amount and number two reduce the wholesale deposits which are expensive. 46:45 46 minutes, 45 seconds But that that moment will be very limited. I don't think there will be any significant pickup on that. 46:52 46 minutes, 52 seconds You're right. I think it will more in terms of the yield and advances management. We would be looking at asset mix and also increasing spreads wherever 47:01 47 minutes, 1 second it is feasible both on the corporate side as well as retail sides. 47:05 47 minutes, 5 seconds Okay. Thank you. So just secondly what percentage of our MCLR book is yet to repric? 47:11 47 minutes, 11 seconds MCLR book I think the five basis point which is done in December is reduced right that will take about 3 to four 47:19 47 minutes, 19 seconds months but that is not much uh great impact but but the ones done in October a lot of them would still yeah you see be left right because 47:28 47 minutes, 28 seconds 6 months MCLR is predominant so we have about uh 40% which is one year MCLR 47:36 47 minutes, 36 seconds some part of that probably is left out otherwise mostly is priced Understood. 47:41 47 minutes, 41 seconds And sir, lastly just on uh current account deposit growth, we were doing pretty well growing 20 25% until 2 three quarters back. Now it's come down to 47:49 47 minutes, 49 seconds single digits. Uh anything to read into it? Uh or is it just a period end number? Period end number of the 47:57 47 minutes, 57 seconds previous year which has impacted. See we had a period end uh moment in FI25 March 25. We had a significant current 48:06 48 minutes, 6 seconds account movement because of the government funds release. those things were not there and it was a very large amount almost 50,000 crores which has 48:15 48 minutes, 15 seconds come in the last few days of March 25 despite that funds not being available I think we have done phenomenally well in 48:22 48 minutes, 22 seconds the current account and as I mentioning uh somewhere earlier we have had 21% decline in the government current 48:30 48 minutes, 30 seconds account deposits in the last year whereas we completely uh pivoted towards non-governmental current account where 48:38 48 minutes, 38 seconds we had 23% growth rate in the current account. That is the number which you see the year end number for March 26 in 48:47 48 minutes, 47 seconds my view is the best number ever could achieve by SBI because we had a double impact of you know the last minute flows 48:55 48 minutes, 55 seconds which were not available this year and the overall current account deposits from the government has fallen about 49:02 49 minutes, 2 seconds 21%. Despite that because of our strategies and current account business account being open 23% growth rate was 49:10 49 minutes, 10 seconds there in the non-governmental account. I think this is a very good uh current account story for us. 49:15 49 minutes, 15 seconds Just to add something for you. So one is the current new customer acquisition and more balances in current account. Apart from this uh detail current account 49:24 49 minutes, 24 seconds customer or business current account customer they are also giving us opportunity to cross uh sell other transition banking products to them. uh there maybe you are prospective SMB 49:33 49 minutes, 33 seconds borrower also. So this is the uh the value which is essentially hidden you can say we have to yet to unlock or in the [snorts] process of unlocking. So 49:41 49 minutes, 41 seconds this is giving us deposit on the one side focusing on retailer uh business customer for current account and also creating opportunity for other free 49:49 49 minutes, 49 seconds income plus maybe lending also in future. 49:52 49 minutes, 52 seconds Understood. Thank you. And sir just lastly one suggestion your slide 15 is pretty useful. Can you also include quarterly data points? Maybe put a slide 50:01 50 minutes, 1 second 16 with the same information but quarterly. It'll be really useful for onlineless. 50:07 50 minutes, 7 seconds We will we will see see we didn't want to change the slides mid year. 50:11 50 minutes, 11 seconds Yeah. So now that we are entering onwards we will try to improve should be very useful. Yes. Thank you. 50:16 50 minutes, 16 seconds So here Anand from MK s other OPEC seems to be on a higher side on a quarteronquarter basis. There's a lot of bunching of of other opex which happens 50:24 50 minutes, 24 seconds in the fourth quarter. This happened last year as well. Is there a way apart from any business acquisition cost to spread out the OPEX one and how do you 50:34 50 minutes, 34 seconds see the cost income ratio shaping up in FI27 any efforts that you're taking to improve that because that's certainly on a higher side given that we have a 50:42 50 minutes, 42 seconds sizable corporate book but still our cost income ratio at about more than 50% is like you know higher side what are the efforts that we're going to take on 50:49 50 minutes, 49 seconds that front see our effort is to keep cost to income ratio contained below 50 I think this is 50:57 50 minutes, 57 seconds a guidance which we have given and we would have had uh probably ended the year with 48 40 7% but for the treasury 51:05 51 minutes, 5 seconds income not uh supportive otherwise the costs have been contained both in terms of bunching happens because of the the 51:12 51 minutes, 12 seconds payment cycle which comes through uh it is not you know intentional but I think by design much of the overheads are 51:20 51 minutes, 20 seconds booked during the last quarter so most of the expenses and income for Q4 4 has 51:27 51 minutes, 27 seconds to be compared with Q4 only. Any other comparison will not work. So I don't think uh at this moment we are not 51:34 51 minutes, 34 seconds thinking about but we will definitely have a look whether any of the expenses can be uh spread over the four quarters so that we will not have the bunching issue. 51:44 51 minutes, 44 seconds Sure. On the forex open positions which were basically asked to unwind. So that impact we have largely taken in the fourth quarter itself or that will 51:51 51 minutes, 51 seconds happen in first. I did mention I think uh we said that the Q4 MTM impact what you see is about 100 crores and complete 52:00 52 minutes unwinding had happened on the 10th April which resulted in a net uh loss of 57 crores. 52:07 52 minutes, 7 seconds Okay. That's very small and you've guided for a credit growth of about 13 to 15% for FI27. Yes. 52:14 52 minutes, 14 seconds Right. That's on a lower side versus what we had in this year. Huh. 52:17 52 minutes, 17 seconds So, so 13 to 15% chances probability of that we hitting the higher end of the guidance still is high going to be strong. 52:25 52 minutes, 25 seconds I think as it stands looks good except that you know how this west Asia conflict how much it lingers and uh 52:34 52 minutes, 34 seconds apart if we if we do not factor in that at this moment I think that in 15% seems to be a feasible option. You see at the 52:43 52 minutes, 43 seconds same time as I keep mentioning the credit growth is a function of macros. 52:48 52 minutes, 48 seconds We don't want to grow significantly higher than what macros can support. So if uh if if we have 6.5 6.9% 52:57 52 minutes, 57 seconds uh GDP growth with 4% inflation and nominal GDP of around 10.5 to 11% we built around 3% over that 3 to 4% max. 53:09 53 minutes, 9 seconds If any of these numbers don't realize then we don't want to grow uh as much and so what's a broader outlook on the 53:17 53 minutes, 17 seconds MSME space because that's the one which has been impacted the most because of the West Asia conflict. Uh any stress pool that we have identified though do I 53:26 53 minutes, 26 seconds know that basically we're going to do a lot of ECGS but that again will be construed as that we are supporting that customer. Uh so any stress pool that we 53:34 53 minutes, 34 seconds have identified any incremental provisions they're going to make and that's why you're guiding for a 50 basis point credit cost in FI27. 53:40 53 minutes, 40 seconds No no 50 basis point credit cost is something what we've been guiding for the last three years we continue to do that it's nothing to do with the west 53:47 53 minutes, 47 seconds station conflict but even if if any some moment is there we still are sticking to that guidance. 53:55 53 minutes, 55 seconds Uh broad-based stress is not visible yet. There are clusters we which are impacted definitely. Uh for example, 54:02 54 minutes, 2 seconds Morbby cluster which is being talked about because gas is not being uh affordable by them. So they are not producing small and medium enterprises. 54:11 54 minutes, 11 seconds They are affected. We have we are working with them what kind of support they need. Uh in fact last uh last month 54:19 54 minutes, 19 seconds we have asked them to take annual maintenance. That period is also over now. They have to come back to production but they have not come yet. 54:26 54 minutes, 26 seconds uh but that is overall crit exposure to the whole cluster is very minimal. 54:33 54 minutes, 33 seconds Uh but they definitely need some support going forward. We'll have to see what support we can give. Uh other than that 54:40 54 minutes, 40 seconds hydrocarbons obviously the oil companies are impacted but there are very strong balance sheets. I think uh there are no 54:48 54 minutes, 48 seconds credit related issues with them. They may have their own P&L issues but it will not translate to credit issue. 54:56 54 minutes, 56 seconds Just I would like to just add a couple of points just around the uh the way we have been mitigating the risk in the MSME portfolio. Uh we have launched BRE 55:06 55 minutes, 6 seconds I think we announced in uh several quarters back as well. Uh this is giving good results. In fact when we look at the delinquencies in a BR versus nonbr portfolio the delinquencies are lower. 55:17 55 minutes, 17 seconds That means underwriting models are much more robust. Second data point is like in terms of CGTMS eligible loans like which can be covered under CGTMS in the 55:26 55 minutes, 26 seconds absence of that we used to take partly it is to be collateralized we have shifted from predominantly CGTMS. So 55:32 55 minutes, 32 seconds coverage is almost 58% of the universe which is eligible for CGTMS. So the obviously our mitigation is much higher 55:40 55 minutes, 40 seconds and recourse to the CGTMS is much higher. I think these are helping us to get a better handle on the quality of the portfolio. 55:49 55 minutes, 49 seconds Hi sir, sir Pam here from Invest. Uh so question on your term deposit repricing 55:56 55 minutes, 56 seconds uh term deposit repricing lower is it largely done or is there any um some residual tail end that's all but mostly done. 56:06 56 minutes, 6 seconds Okay sir. Uh secondly on your uh salary costs in this quarter it is generally Q3 to Q4 we see an uptick there is the PLI 56:15 56 minutes, 15 seconds related payout but this time it's not there is there some uh yeah there is a I think classification 56:23 56 minutes, 23 seconds uh change because the PLI which is to be given on the basis of the government PLI 56:30 56 minutes, 30 seconds uh it is still being debated so we have not booked in the staff expenses what you see in our presentation it is in other provisions 56:38 56 minutes, 38 seconds So if you add I think it's broadly in the similar way. 56:41 56 minutes, 41 seconds So it's accounted for accounted for. Okay. 56:43 56 minutes, 43 seconds And sir lastly your uh you will be saving on DICGc premium next year right? 56:47 56 minutes, 47 seconds So don't ask me the number I will lose my job. 56:50 56 minutes, 50 seconds What you paid this year that's we can calculate the rest. 56:53 56 minutes, 53 seconds Sorry no we as per the regulation we are not able to we are not supposed to disclose that. We will get benefited 57:01 57 minutes, 1 second definitely. Uh but uh this is not a disclosable item. Okay fair enough. Thank you so much sir. 57:09 57 minutes, 9 seconds Congratulation to team SBI for multiple milestones. Thank you. 57:14 57 minutes, 14 seconds Global transformation is a necessity for India led by war. Maybe business mixes are changing. I personally sense there's 57:23 57 minutes, 23 seconds going to be a big capex boom in India led by energy. So we need renewable, we need nuclear. Data center needs lot of 57:31 57 minutes, 31 seconds energy. The Middle East attacks on Amazon may divert a lot of data centers to India. The transmission line expansion needs big growth. any kind of 57:40 57 minutes, 40 seconds indication or lead time which you already sensing because this ticket sizes will not touch base with a bank 57:48 57 minutes, 48 seconds which is not of a size and they will have to participate along with SBI to disbburse the money and SBI caps will 57:56 57 minutes, 56 seconds have a big role because I see a lot of reports generated by them too be it hydrogen renewable in multiple sectors 58:03 58 minutes, 3 seconds so I'll answer that and I'll also ask to respond on that transmission yes I think is going to be one of the most important infrastructure which is going to be 58:12 58 minutes, 12 seconds developed. Um some of the projects are fairly large as you mentioned. We have been having discussion with them. Uh 58:20 58 minutes, 20 seconds what kind of structures they will come out is not very clear yet whether there will be an SPV or it will be done by their own companies. But there is a good 58:28 58 minutes, 28 seconds opportunity coming up there. Apart from transmission we also see a lot of emerging sector. I 58:35 58 minutes, 35 seconds think last time also I mentioned we have started an initiative called chakra. 58:39 58 minutes, 39 seconds This is to support all sunrise sectors whether it is green hydrogen or whether 58:46 58 minutes, 46 seconds it is data centers whether it is new renewable energy models which are 58:52 58 minutes, 52 seconds emerging. So the are even uh small modular reactors which government has been talking about semiconductors. 59:02 59 minutes, 2 seconds These are all the uh activities and sectors probably which have greater potential for investment 59:11 59 minutes, 11 seconds but they need a separate kind of structure. It is not a pure vanilla loan which they require. They may require a measanine funding. They may require 59:18 59 minutes, 18 seconds equity funding. So we want to handle that kind of composite structures through our chakra. As far as transmission as you want to add 59:27 59 minutes, 27 seconds something so [clears throat and cough] two three things for transmission of course what s is the transmission a lot of potential but I would also point out 59:34 59 minutes, 34 seconds to battery energy storage systems we got a large number of proposals which we are processing uh we also have u uh the data 59:44 59 minutes, 44 seconds center is another activity where we have got a large number of cases we are looking at uh some we have already done and then there are others like uh pump 59:53 59 minutes, 53 seconds storage hydro which is something uh which is starting to come to us. These are only one or two are live currently but now large number of people are 1:00:01 1 hour, 1 second coming because the latest tenders are all for round the clock power. It's not plain vanilla solar or hydro etc. So 1:00:09 1 hour, 9 seconds with that combination either BSS or uh pump storage hydro combination along with solar wind is is the new flavor. So 1:00:17 1 hour, 17 seconds we are seeing a lot of activity and transmission clearly is is one thing which is the need of the R because without adequate transmission the curtailment in solar is quite high. So I 1:00:26 1 hour, 26 seconds think we are supporting all of that as it goes forward. Uh and lastly smart metering we done quite a bit already but uh still there are a lot of enough 1:00:34 1 hour, 34 seconds opportunities there. So when you highlighted a data center are we funding GPUs or we'll only do infrastructure? Both. 1:00:41 1 hour, 41 seconds Yeah both. Both. So we look at the comes as a package package. We look at the uh clients which are there because 1:00:48 1 hour, 48 seconds the way it is being uh presented here is more like a developer story because the developer creates the shell and ultimately the fit out is done by the 1:00:57 1 hour, 57 seconds ultimate user and uh we are focusing largely on the hyperscaler model because that's where the demand is assured and there is no uh the client quality is 1:01:06 1 hour, 1 minute, 6 seconds assured. So we've got quite a few of them and uh Mumbai especially is uh has a lot of data centers coming up. We see 1:01:14 1 hour, 1 minute, 14 seconds a lot of potential in this area. So this means that hyperscala means your LRD business ticket size maybe 15 20 years kind of tickets. 1:01:22 1 hour, 1 minute, 22 seconds Yes. 1:01:23 1 hour, 1 minute, 23 seconds And competitive how is that visibility sir? 1:01:27 1 hour, 1 minute, 27 seconds So as far as infra the green field project is concerned our ability to price is better. 1:01:35 1 hour, 1 minute, 35 seconds So my last question SBI's uh you know to multiple retail salary accounts where 1:01:42 1 hour, 1 minute, 42 seconds touch points to customer are concerned on wallet share how many products are we currently doing and what will we target you have any PPC number but the last 1:01:52 1 hour, 1 minute, 52 seconds number I know is about 4.5 uh 2.5 to three uh around three product per yeah 1:02:00 1 hour, 2 minutes financial products financial products So I think you three is three is okay but our idea is 1:02:07 1 hour, 2 minutes, 7 seconds to go take it to five and uh there are customers who tell me that they take about 8 to 10 products different 1:02:16 1 hour, 2 minutes, 16 seconds products from SBI so that means that there's a potential to go to 8 to 10 but we we would be okay if we reach a PPC of 1:02:24 1 hour, 2 minutes, 24 seconds five and the auto loans what you have asked essentially is a hook product you can't make money on the auto loan itself the 1:02:32 1 hour, 2 minutes, 32 seconds dealer commissions and other things but it brings many other product engagements but to reach five I suppose we need lot 1:02:39 1 hour, 2 minutes, 39 seconds of transformation transformation where human resources concerned specifically on retail true where branches are concerned connectivity so everything can't be 1:02:48 1 hour, 2 minutes, 48 seconds digital so how we building up that capability so this is something what we mentioned that how do we use our manpower at the 1:02:55 1 hour, 2 minutes, 55 seconds branches when large number of transactions have moved to alternate channels we are redeploying the some of 1:03:02 1 hour, 3 minutes, 2 seconds the workforce into sales and train our workforce in the branches for upselling. 1:03:09 1 hour, 3 minutes, 9 seconds So this is something what is happening overall and that is how you see that for a large bank you know the diversified 1:03:17 1 hour, 3 minutes, 17 seconds customer base we have an average of three is is a good number. 1:03:21 1 hour, 3 minutes, 21 seconds So this mutual fund and insurance business are we tracking at each district level? Yeah at branch level also. 1:03:27 1 hour, 3 minutes, 27 seconds Branch level. You also have deep integration with subsidiary production. 1:03:33 1 hour, 3 minutes, 33 seconds And all we always face this charge of missselling and although we are the lowest so I think all of that uh is being attempted in the right suitable team. 1:03:41 1 hour, 3 minutes, 41 seconds Good luck for the year and thank you for answering all. Thank you. Thank you juk sir. 1:03:46 1 hour, 3 minutes, 46 seconds So this is Mahesh from Kotuk. Um so one question around the margins again. Um 1:03:53 1 hour, 3 minutes, 53 seconds what is so different about this quarter in terms of the margins changing direction? so sharply whereas if you look at the last two rate cuts which 1:04:00 1 hour, 4 minutes happened in March and June the impact on the P&L was not that high whereas this time around you seem to be attributing 1:04:08 1 hour, 4 minutes, 8 seconds the entire decline to that one particular variable no I'm not attributing only for that I said that the way the composition moved 1:04:17 1 hour, 4 minutes, 17 seconds the it is not only that high right so sorry when you look at the the overall overall EBLR and TB building 1:04:24 1 hour, 4 minutes, 24 seconds pricing has to be looked at this is what I said the corporate book has moved to a floating rate. The whatever growth has happened in the last quarter is also 1:04:33 1 hour, 4 minutes, 33 seconds predominantly came from the T bill which gives us confidence that we can do the asset mix change going forward and we're trying to move every T bill linked loan to an MCLR based loan. 1:04:44 1 hour, 4 minutes, 44 seconds So just to clarify that one point the T bill increased last quarter right in terms of the price at which it was versus where it is today that would have 1:04:53 1 hour, 4 minutes, 53 seconds had a positive impact. No no no no T bill portfolio has increased but that portfolio would have had a natural upward repricing right during 1:05:02 1 hour, 5 minutes, 2 seconds the quarter or in the last No you have to compare with MCLR versus T bill not the T bill versus T bill so the one which is MCLR linked earlier has 1:05:10 1 hour, 5 minutes, 10 seconds moved to Till and bring down the yield T bill there is a uptick there's a overall T- bill portfolio has had a good yield pickup but if something 1:05:19 1 hour, 5 minutes, 19 seconds is moving from MCLR to T- bill then there's a dip in the earnings but this was a choice you took in advance. It is not only choice I think 1:05:28 1 hour, 5 minutes, 28 seconds the choice see it is also the composition of the users of the facilities see if you have seen since you have asked that question a little 1:05:35 1 hour, 5 minutes, 35 seconds deep dive probably is required lot of large well-rated corporates who were accessing the market as more to banks 1:05:43 1 hour, 5 minutes, 43 seconds and most of their facilities were linked to TL they were not utilizing at all they were not using at all they were using accessing the market CP and all 1:05:52 1 hour, 5 minutes, 52 seconds that has more to the bank and this is the relationship value we have While you all are looking at the NI part, we are looking at the overall value of the 1:06:01 1 hour, 6 minutes, 1 second relationship with the corporate which is not evident in the NI. True. 1:06:04 1 hour, 6 minutes, 4 seconds It is evident in our ROA. Where do I get the ROA? Where do I get the fee based income? What you are seeing and the other income. It is because of the 1:06:12 1 hour, 6 minutes, 12 seconds relationship with the corporate when they come back to us. I can't say that you know I'll not give a committed T bill rate even if it means that there will be some softening of deals on that. 1:06:22 1 hour, 6 minutes, 22 seconds This is this is what I I was trying to explain. It's not purely on the 25 byr which anyway we have announced what we 1:06:29 1 hour, 6 minutes, 29 seconds have not factored in for a significant moment from the market to a bank. So if I were to just simply draw the 1:06:38 1 hour, 6 minutes, 38 seconds difference in the corporate sector and assume a large part of it was Till I should be able to understand which portfolio took the table portfolio. 1:06:47 1 hour, 6 minutes, 47 seconds Meaning if I were to just kind of we just trying to understand as to how long this impact will be in the No, these are all short-term impacts 1:06:54 1 hour, 6 minutes, 54 seconds only the predominant book has been uh in the short term. There could be some uh medium-term loans also which are T bill 1:07:03 1 hour, 7 minutes, 3 seconds priced but in the current financial area itself we would be able to move as large chunk into MCLR based. Perfect. 1:07:10 1 hour, 7 minutes, 10 seconds There are two ways of handling this on the corporate side particularly where we have very strong relationship. It is not only purely a small working capital 1:07:18 1 hour, 7 minutes, 18 seconds being drawn by them. Either you increase the spread over T bill and say that you know this is what the spread I'm looking for. If they are getting a better price 1:07:27 1 hour, 7 minutes, 27 seconds they move on or move them to MCLR. So these are the two strategies which we will be following this year. 1:07:34 1 hour, 7 minutes, 34 seconds Perfect. And one last question when you when we do the calculated yield on advances the decline has been fairly sharp. Now one of the reasons could be 1:07:43 1 hour, 7 minutes, 43 seconds that the book was grown towards the end of the quarter. Yes. 1:07:46 1 hour, 7 minutes, 46 seconds Um if I were to just move into 1 Q and 2 Q I know that you don't want to give a quarterly guidance. We're just trying to understand does it dip first and then 1:07:54 1 hour, 7 minutes, 54 seconds starts moving higher or do you have a visibility of how this traction? 1:07:58 1 hour, 7 minutes, 58 seconds I don't want I don't want to hazard guess. I'm still sticking to my 3% annual name. 1:08:05 1 hour, 8 minutes, 5 seconds But if you really ask me I don't think there will be any further dip. Okay. if it satisfies you. 1:08:11 1 hour, 8 minutes, 11 seconds We wanted that answer sir. Thank you. 1:08:16 1 hour, 8 minutes, 16 seconds Hi sir, I think we have to go on. 1:08:18 1 hour, 8 minutes, 18 seconds Hi sir. Uh this is Nathan Agraal from Motel. Yeah. 1:08:23 1 hour, 8 minutes, 23 seconds So one question again around the corporate uh loan growth. Uh if I look like last two quarters we have reported almost 15% growth in the corporate loan 1:08:31 1 hour, 8 minutes, 31 seconds book. While you talked about that you are looking at things in totality in respect to ROA and ROE but does this growth momentum will will do you think 1:08:39 1 hour, 8 minutes, 39 seconds this this will continue in the next coming quarters because it will continue to have a bearing on the margins also wherein we are expecting things to move up from here 1:08:47 1 hour, 8 minutes, 47 seconds so the part moment also as I mentioned from market to bank if the market improves probably the reversal will happen so that's the reason our 1:08:56 1 hour, 8 minutes, 56 seconds corporate guidance is 12 to 13% is what we are looking at and our 13 to 15% % will be primarily driven by the RAM RAM growth. 1:09:06 1 hour, 9 minutes, 6 seconds Yeah. Due to posity of time, we'll now take up a few question. You want to ask something? 1:09:11 1 hour, 9 minutes, 11 seconds Just one clarification on the ROA. Uh when we talked about 1% plus RO that we look to maintain. Yes. 1:09:18 1 hour, 9 minutes, 18 seconds As we now start providing for ECL, you talked about a 3 4 year transition journey. Will that guidance stay unchanged over those 3 four years or you see some improve? 1:09:26 1 hour, 9 minutes, 26 seconds We are still saying that 1% through the cycles. 1:09:30 1 hour, 9 minutes, 30 seconds Okay. Sure sir. Thank you so much sir. We have a few questions coming in through the online webcast. Now these will be addressed by the chairman sir. 1:09:39 1 hour, 9 minutes, 39 seconds Now I think there's one question why Q3 profit is more than Q4. I think uh it is 1:09:48 1 hour, 9 minutes, 48 seconds other way around. Why the Q4 is having less profit than Q3? It mainly because of the MDM loss of 4,522 1:09:55 1 hour, 9 minutes, 55 seconds crores in Q4 as against loss of 143 crores only in Q3. This is question from 1:10:02 1 hour, 10 minutes, 2 seconds Parra and question Tamarish Singha from off business. What is the guidance on net interest margin NI for FI27? NI 1:10:10 1 hour, 10 minutes, 10 seconds guidance we don't give but NIM as I said our guidance for domestic is to remain above 3%. 1:10:17 1 hour, 10 minutes, 17 seconds And uh because uh Bertia Bertia why was Q4 so much lower? I think we have had 1:10:25 1 hour, 10 minutes, 25 seconds enough discussion on this. Uh if any further clarifications are required we can have separately. Uh Sunil Melwani 1:10:34 1 hour, 10 minutes, 34 seconds what are the steps bank is planning to take increased market share in Kasa? uh this is what I mentioned in terms of focusing on the district level uh 1:10:43 1 hour, 10 minutes, 43 seconds improvement on the market share as well as a a very strong campaign which we launched I've seen good impact of that campaign is ABCD all branches to 1:10:52 1 hour, 10 minutes, 52 seconds contribute to deposits I think uh this is also helping us in terms of mobilizing and as I mentioned savings bank we've witnessed a good growth of 1:11:00 1 hour, 11 minutes almost double digit 10% growth on a very large base of savings bank murdul from senora 1:11:08 1 hour, 11 minutes, 8 seconds Asset management what was MTM loss provided for treasury losses was the same passed by NI there's an MTM loss of 1:11:15 1 hour, 11 minutes, 15 seconds 4522 crores in Q4 as against 143 in Q3 the MTM is rooted through other income non-interest income 1:11:24 1 hour, 11 minutes, 24 seconds uh Rohan Mandura from your cumulative domestic domestic in advances for 12 months is down 11 P point so what is the 1:11:32 1 hour, 11 minutes, 32 seconds domestic yield for Q4 and what explains the sharp decline I think again this also we have explained at length what led to this yield on decline in yield 1:11:41 1 hour, 11 minutes, 41 seconds but essentially as I mentioned report rate cut of 25 basis point and also shift in uh corporate bank uh corporate credit uh composition 1:11:50 1 hour, 11 minutes, 50 seconds sedat rajurohit our eBlr share is only 35% so there should have been only some seven base point I think we need to add 1:11:57 1 hour, 11 minutes, 57 seconds both the eblr book as well as the tb linked advances so that is about uh 50 1:12:06 1 hour, 12 minutes, 6 seconds uh currently we have e bill and trip board 49%. 1:12:12 1 hour, 12 minutes, 12 seconds [snorts] 1:12:13 1 hour, 12 minutes, 13 seconds Whether the bank has made any amount of provision based on ECL no not yet. Uh Sidat again share of AAA in corporate 1:12:21 1 hour, 12 minutes, 21 seconds mix has risen by 400 basis point. Does it have an impact on yield guidance on the share of AAA going forward? As I [snorts] mentioned some of the best 1:12:30 1 hour, 12 minutes, 30 seconds well-rated companies have moved from the market to bank. While it had dramatically altered the composition of 1:12:37 1 hour, 12 minutes, 37 seconds double A and AAA, it had impact on the yields as I mentioned earlier. 1:12:43 1 hour, 12 minutes, 43 seconds Jeet from ambit please clarify off balance sheet exposure like financial guarantee not required provisioning. Can we now assume that non-funded credit 1:12:51 1 hour, 12 minutes, 51 seconds exposure disclosure in Basel 3 will require provision in norms provisioning and non-funded credit exposure shall be computed as per RB guidelines effective 1:12:58 1 hour, 12 minutes, 58 seconds from 1427. I think they also attract provision. 1:13:03 1 hour, 13 minutes, 3 seconds So I think broadly we have answered the questions. Uh we can go ahead now for closure. 1:13:08 1 hour, 13 minutes, 8 seconds I trust all the questions have been addressed. We will be happy to respond to other questions in offline mode. Let me end the evening with uh thanking 1:13:16 1 hour, 13 minutes, 16 seconds chairman sir MD SUS DMD sir top management team senior officials of the circle and various offices connected 1:13:24 1 hour, 13 minutes, 24 seconds through webcast analyst investors ladies and gentlemen. 1:13:28 1 hour, 13 minutes, 28 seconds We thank you all for taking time out of your schedule and joining us for this event. To round off this evening, we request you all present here to join us 1:13:36 1 hour, 13 minutes, 36 seconds for high tea which is arranged just outside this hall. Thank you. Thank you so much.