Uco Bank — Q4 FY26

Uco Bank Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=bChBu5O2PaE Published: 2 weeks ago

0:01 1 second Uh good afternoon everyone and welcome to the Yuko Bank Q4 FR26 earnings conference calls. Today from the management side we have with us Mr. 0:12 12 seconds Ashwin Kumar MD and CEO sir Mr. Rajendra Kumar Sabu ED and Mr. Vijay and Kamlay 0:19 19 seconds executive director with this I hand over the call to MD sir for his opening remarks post which we will have a Q&A session. Thank you and over to you sir. 0:30 30 seconds Thank you. Uh a very warm welcome to all the analysts and investors to this uh post uh results conference call for the financial year 202526. 0:42 42 seconds Am I audible? 0:47 47 seconds Yes sir, you are audible. Please go ahead. Thank you. Thank you. 0:51 51 seconds So I have with me our executive directors uh Mr. Sabu and Mr. Kamlay and also our CRO, CFO, all other top 0:59 59 seconds management team is with me. Uh so thank you for joining the conference call. 1:05 1 minute, 5 seconds Once again I'll just give you the brief about the overall performance of the bank for the uh last quarter and the 1:12 1 minute, 12 seconds full financial year. Our business grew by 14.595% 1:19 1 minute, 19 seconds on a YI basis and the uh gross advances grew by 19.44% 44% on YUI basis and 1:26 1 minute, 26 seconds deposit grew by 11.59% basis. Within deposit our CASA growth was around 12.46% 1:33 1 minute, 33 seconds which uh saving grew 11.878% and current account registry growth of 16.77%. 1:41 1 minute, 41 seconds Our Kasar ratio was maintained uh above 38. Our guidance was 37 to 38. Kasa was 1:48 1 minute, 48 seconds 38.65 improved by 75 pips over last year. 1:53 1 minute, 53 seconds And within the uh advances our RAM segment grew by 24% plus and in the RAM 2:02 2 minutes, 2 seconds segment retail advances grew by 26% plus agriculture advances grew by 26% and MSMIC advances grew by 19%. 2:13 2 minutes, 13 seconds Within the retail housing loan grew by around 19% and car loan growth was around 70 71%. 2:20 2 minutes, 20 seconds Coming to asset quality, our asset quality, gross NPA improved to 2:27 2 minutes, 27 seconds 2.17%, there is a 52 bits reduction over last year. Net NPA was brought down to 27% there is a 23 bips reduction over 2:35 2 minutes, 35 seconds last year. PCR improved to 98 97.79% 110 bips improvement over last year. 2:44 2 minutes, 44 seconds Excluding TWW, PCR improved to 87.66% 66% 571 bips over last year. And coming 2:53 2 minutes, 53 seconds to profitability, our operating operating profit for the full year was 6,429 cr. That is a growth of 6.49% 3:02 3 minutes, 2 seconds and fullear profit was 2768 cr with a growth of 13.21% on a Y basis. 3:10 3 minutes, 10 seconds Net profit for the quarter ended was 801 cr with a growth of 22% on a y basis. 3:19 3 minutes, 19 seconds Now coming to the guidance versus actual achievement our deposit growth guidance was 10 to 10 to 12% achievement is 3:28 3 minutes, 28 seconds 11.59% credit growth guidance was 12 to 14% and our actual achievement is 19.44% 44%. 3:36 3 minutes, 36 seconds Casa percentage was 37 to 38% actually is 38.6865%. 3:42 3 minutes, 42 seconds RAM percentage we targeted 61 to 63% actually 65%. CD ratio of our target was 3:49 3 minutes, 49 seconds 75 to 77% we have achieved CVD ratio of 80 to 80.21%. 3:54 3 minutes, 54 seconds Credit cost guidance was less than 1% it is 62%. Name global we have given a guidance of 2.8 to 2.9%. Actual name is 4:03 4 minutes, 3 seconds 3.0. 03% for the global and for domestic it is 3.23%. 4:09 4 minutes, 9 seconds Gross NPA guidance was less than 2.5% actual NPA is 2.17%. 4:15 4 minutes, 15 seconds Net NPA guidance was less than.35% actual is 27%. Slipage ratio guidance was 1 to 1.25% actually net slipage 4:24 4 minutes, 24 seconds ratio is 78%. Total recovery and upgradation guidance was 2200 to 2,700 cr. Actually is 2,944 cr. 4:35 4 minutes, 35 seconds Now the coming to the guidance for the current year deposit we have kept the guidance in the same range 10 to 12%. 4:41 4 minutes, 41 seconds Credit 12 to 14% kasa again 37 to 38%. 4:46 4 minutes, 46 seconds Ram we have improved our guidance to 62 to 65%. CD ratio 80 to 82%. Credit cost 4:53 4 minutes, 53 seconds less than 75% name global in the range of 2.8 to 2.9 gross NPA less than 2% net 5:01 5 minutes, 1 second NPA less than2% slipage ratio less than 1% and recovery and upgradation in the range of 2,00 to 2,500 cr. 5:11 5 minutes, 11 seconds Now coming to the uh other parameters, our cost to income 5:18 5 minutes, 18 seconds ratio which was uh which has improved by 581 bips over last year. It is now 52.66%. 5:26 5 minutes, 26 seconds Our P based income grew by 32% on a Y basis to 516 cr against 389 cr. 5:36 5 minutes, 36 seconds Our capital adequacy ratio that has improved 5:42 5 minutes, 42 seconds to 18 18.61% with tman capital of 16.59%. 5:51 5 minutes, 51 seconds Board has approved declaration of dividend at the rate of 4.40% 4% that is 44 pesa per equity share subject to 5:59 5 minutes, 59 seconds approval of the shareholders in the insuring and no journal meeting which works out to be uh dividend payout of 6:05 6 minutes, 5 seconds 20%. Approximately business per employee of the bank has 6:12 6 minutes, 12 seconds improved to 28 cr as 24 cr a year back and business per branch has also improved to 173 cr as against 17 155 cr 6:22 6 minutes, 22 seconds a year back. Provisional coverage ratio also improved to 98%. 6:27 6 minutes, 27 seconds We have total number of 3,412 branches and two overseas branches in Hong Kong and Sungapur and one 6:35 6 minutes, 35 seconds representative office in Iran. So 110 branches have been opened in the last financial years. 61% of the domestic branches are spread in rural and semi-urban areas. 6:47 6 minutes, 47 seconds Now let me uh talk about the initiatives which we had earlier talked and where we do stand and what are the further 6:54 6 minutes, 54 seconds initiatives which we are planning. The initiatives 7:04 7 minutes, 4 seconds which we earlier last year spoke which have been completed is the CBDC uh that is now available in both iOS Android phones. 7:14 7 minutes, 14 seconds Performance management solution has also been completed. Learning and development center of excellence has been completed. 7:20 7 minutes, 20 seconds Project Pervatan we initiated last year and that project Pervatan where we are uh focusing on the digital 7:28 7 minutes, 28 seconds transformation and digital business has come a long way. Till now 31 journeys have been completed and our the total uh 7:37 7 minutes, 37 seconds digital business across asset and liability has crossed 25,000 cr in last year. Mobile banking users have also 7:45 7 minutes, 45 seconds increased five five times in a uh from 82 lakh to 153 lakh in three years. 7:53 7 minutes, 53 seconds Whereas the activation active mobile users have increased from 14 lakh to 70 lakhs in 3 years. So the active mobile 8:01 8 minutes, 1 second users registered mobile user percentage was 17% 3 years back. Now it has improved to 46%. 8:08 8 minutes, 8 seconds We started tab banking with the across the branches. So all the branches have been given tab in this fin last financial year more than 10 lakh 8:16 8 minutes, 16 seconds accounts have been opened through tab banking. Percentage of accounts opened through tab banking without uh excluding BSBD and PMJDB account is 66% accounts 8:26 8 minutes, 26 seconds are open through the tab banking. We launched WhatsApp banking also. So now more than 20 lakh customers are onboarded on the WhatsApp banking 8:33 8 minutes, 33 seconds channel and 49 services in 14 languages are available in the in our WhatsApp uh banking. 8:41 8 minutes, 41 seconds Many new features have been launched in our call center and in our mobile app in the last financial year. 8:54 8 minutes, 54 seconds New treasury solution new solution has also been implement implementation has been completed. Data center consolidation we started last year that 9:02 9 minutes, 2 seconds has also been done in Kolkata. We have started uh mule account monitoring through yugo yuko vigil plus under 9:10 9 minutes, 10 seconds transaction monitoring vertical. Our API gateway has been uh has started. Now automation of ALM TPM has also been completed. 9:21 9 minutes, 21 seconds Plot uh application performance monitoring system has also been implemented. 9:26 9 minutes, 26 seconds Feedback mechanism system to watch and improve customer service was implemented and that has also started working. Now we are getting real-time feedback from 9:33 9 minutes, 33 seconds our customer through SMS, through QR code and through website and uh our WhatsApp banking channel. 9:41 9 minutes, 41 seconds We have already integrated with immune hunter and IPC and another 9:50 9 minutes, 50 seconds initiatives which are planned now for this current financial is one is omni channel the third second is 9:58 9 minutes, 58 seconds cash management services third is supply chain finance robotic process automation 10:05 10 minutes, 5 seconds digital marketing solution forex card and prepaid card solution document management system that is 10:12 10 minutes, 12 seconds already in going on now. It will be completed this year. Enote facility to move uh to remove the paper from the 10:20 10 minutes, 20 seconds system. Identity assess management for cyber security. Centralized log management system. 10:27 10 minutes, 27 seconds Now we have planned to convert our call center which we implemented two years back to call center as a profit center. 10:32 10 minutes, 32 seconds That project phase 2 has been launched. 10:36 10 minutes, 36 seconds Centralized monitoring and uh system has been implemented for the credit uh loan sanctioned through ED edam uh portal 10:46 10 minutes, 46 seconds transaction uh sorry transformation management vertical has been set up in a widen scope and it will be headed by a 10:53 10 minutes, 53 seconds GM level. Now in WhatsApp banking additional uh services will be implemented. Cyber security wa near DR 11:02 11 minutes, 2 seconds at Kolkata are is another pipeline. Kasa back office and centralized forex processing center is another project which we are aiming now. 11:12 11 minutes, 12 seconds So all these are getting implemented now in this year planning year this year. 11:19 11 minutes, 19 seconds With regard to IT budget uh last year we have kept a budget of around,1 1100 cr 11:26 11 minutes, 26 seconds 900 cr has been spent and this year also more than 1,000 cr budget has been approved by the board for the current financial year. The spend for the last 3 11:35 11 minutes, 35 seconds years is around in 2324 it was 576 cr in 11:41 11 minutes, 41 seconds 2425 it was 642 cr and 2526 it is 899 cr. So every year we are impro 11:48 11 minutes, 48 seconds increasing the spend also to bring more and more advanced technologies into the system. 11:55 11 minutes, 55 seconds So this is all about the overall performance of the bank and now we are open for the uh question answer session 12:04 12 minutes, 4 seconds and thank you to thank you sir. We'll start the Q&A have any question please raise your hand. 12:15 12 minutes, 15 seconds We have first question from the line of Asogira. Please go ahead. 12:24 12 minutes, 24 seconds Mr. Rajira, please go ahead. Your line have been un unmuted. Uh can you hear me sir? 12:32 12 minutes, 32 seconds Yes. Yes please. Yes please. 12:34 12 minutes, 34 seconds Uh sir compliment to you and the entire team sir for fantastic results. 12:42 12 minutes, 42 seconds In fact uh you have surpassed on almost every parameter and 12:49 12 minutes, 49 seconds the the kind of growth which you have given uh especially in the credit growth is phenomenal uh 19.44%. 12:59 12 minutes, 59 seconds And even in this quarter itself it is almost about I think 8%. the credit growth uh overall business growth is 13:08 13 minutes, 8 seconds also good, deposit growth is also good and everything is beyond the targets you have achieved those results. Uh but sir 13:16 13 minutes, 16 seconds what I see basically that if I look at the guidance given for 2627 13:23 13 minutes, 23 seconds uh uh sir it seems that uh either some geopolitical situation is 13:30 13 minutes, 30 seconds there in your mind or the impact of this west Asia war maybe going forward you 13:36 13 minutes, 36 seconds are anticipating that you may not have the kind of the growth which otherwise you could have achieved. So my first 13:44 13 minutes, 44 seconds point, first question is on that only sir that I want to hear your views uh on this uh uh current situation and going 13:52 13 minutes, 52 seconds forward how the bank is taking it like in the first quarter will there be a some major impact you are expecting 13:59 13 minutes, 59 seconds though if I look at the SMA numbers in fact your SMA 2 of the high of the last quarter is some part of it is shifted to 14:09 14 minutes, 9 seconds SMA 1 so that's a better better thing to happened but the SMA 1 has gone up from 260 to 651 14:18 14 minutes, 18 seconds uh crores overall SMA numbers are under control. So have you already started seeing some kind of stress especially 14:28 14 minutes, 28 seconds small businesses and MSME uh who do not have the deeper pockets uh due to this West Asia war and the other 14:36 14 minutes, 36 seconds geopolitical situations uh or how do you how do you plan to deal with it sir? 14:44 14 minutes, 44 seconds So thank you Ra. First let me talk about guidance which uh uh you have apprehended that because of this West 14:52 14 minutes, 52 seconds Asia crisis probably we have thrown down the guidance. Let me make it very clear that uh if you look at our guidance for the last 3 years our guidance is in this 15:00 15 minutes range only and our achievement has always been surpassing the guidance. So last year also our guidance was 12 to 15:07 15 minutes, 7 seconds 14% of credit growth. This year also 12 to 14% and next year also we are planning 12 to 40% guidance we have given. If you look at our achievement 15:15 15 minutes, 15 seconds for the last three financial years for 2023 24 our credit growth was around 16%. 2425 our credit growth was around 17.72%. 15:26 15 minutes, 26 seconds And this year our credit growth is 19.44%. 15:29 15 minutes, 29 seconds So the guidance was 12 to 14% all three years but achievement was much more than the guidance. So similarly guidance 15:37 15 minutes, 37 seconds continues to be in the same range looking at all scenarios but I'm sure the way we have rebuilt the organization 15:45 15 minutes, 45 seconds we will be surpassing the guidance with a good number in this financial year also not only in credit but in other parameters also because uh if you look 15:53 15 minutes, 53 seconds at our name also if you look at our credit cost also our slippage control also which used to be 1.7% 1.75% 3 years 16:02 16 minutes, 2 seconds back now it has come down to less than less than a And now we have toned down our guidance from 1.1 to 1.25% previous year to 1% less than 1% this year. 16:12 16 minutes, 12 seconds Accordingly net NPA gross NPA guidance has been thrown down. So so the there is no uh such thing that because of this 16:21 16 minutes, 21 seconds temporary crisis we have shifted our guidance downwards. Number one. Number two, uh coming to the any impact of the 16:30 16 minutes, 30 seconds current situation, uh please uh I would like to ask request you to look at our SMA numbers also. Consistently our SMA 16:38 16 minutes, 38 seconds numbers are under control and you are you know that every quarter we declare our SMA numbers more than 1 cr. 16:46 16 minutes, 46 seconds Generally there is a tendency of declaring more than 5 cr but we declare more than 1 cr more than 1 cr SMA numbers including 012 put together is45% 16:55 16 minutes, 55 seconds of standard advances. So whereas SMA 2 is less and SMA 1 is higher. I I I just 17:02 17 minutes, 2 seconds wanted to uh uh request you to because this is this financial year uh February month impact is there every every 17:10 17 minutes, 10 seconds financial year February month is so SMA2 is 60 days but here in February 50 17:18 17 minutes, 18 seconds 28 days and January March is 31 days so 15 so certain accounts which could have been in SMA 2 are figuring in SMA 1. So 17:27 17 minutes, 27 seconds it's not that SMA 1 has jumped like that from somewhere else but overall SMA remains the same only bucket shifting is 17:34 17 minutes, 34 seconds there. So maybe uh next month we'll have slightly higher SMA 2 and lower SMA 1. 17:40 17 minutes, 40 seconds So that transition will continue this financial year because of the 28th uh February 28 days that SMA 2 number is 17:48 17 minutes, 48 seconds slightly low SMA 1 is high because of 59 days impact. So this is about uh whatever you have asked right thank sir. 17:57 17 minutes, 57 seconds One phenomena which we are seeing in some of the other banks is that whenever there is a good profit or you 18:06 18 minutes, 6 seconds know the condition is better the results are better they have started providing some amount on the standard asset only 18:14 18 minutes, 14 seconds extra more than the uh so in our bank here I don't I think the provision has 18:20 18 minutes, 20 seconds rather has gone down so are you not anticipating any kind of those unexpected kind or that ECL or 18:29 18 minutes, 29 seconds other impact or even in case of the wage also I see that the the the wage has I 18:36 18 minutes, 36 seconds mean the salary is gone down I mean employee cost has gone down to 182 cr as compared to 278 cr in the last quarter. 18:45 18 minutes, 45 seconds So whether the revised that labor code or anything is not impacting you uh how are you dealing with those unexpected or 18:54 18 minutes, 54 seconds unforeseen circumstances uh without creating some kind of a buffer or do you have any buffer already 19:03 19 minutes, 3 seconds say a last quarter I I think we have declared that buffer of 700 19:10 19 minutes, 10 seconds 720 cr ECL provision last quarter and this quarter we I have made a provision of 1,038 cr. So ECL provision held as on 19:20 19 minutes, 20 seconds this quarter is 1,38 cr plus 341 cr contingency provision is also made. So 19:27 19 minutes, 27 seconds if we take both them together it's more than 1,400 cr is already available towards ECL along with that during covid 19:35 19 minutes, 35 seconds times we made 530 cr of provision for covid-19 provision. So that is also available. So all three put together 19:42 19 minutes, 42 seconds today we are holding around 1,900 cr of additional provision as a buffer towards our ECL framework which may trigger that 19:52 19 minutes, 52 seconds time when we have to shift to that. So 1,900 cr of uh buffer is there. Now coming to the wage part see last year we 20:01 20 minutes, 1 second made a additional provision of 2 uh 60 cr towards our PLI the previous financial year. 20:10 20 minutes, 10 seconds Mhm. And whereas actual payment is around 100 odd cr only this year. So we are still carrying 160 odd cr of provision for the next financial year. 20:22 20 minutes, 22 seconds So last year we made additional provision which we which we are not required to made this year. So on that account that our wage uh or the employee 20:30 20 minutes, 30 seconds cost is slightly down because previous year 250 cr of additional provision was made because on PLI factor which was 20:38 20 minutes, 38 seconds being talked about for enhanced PLA to scale four and above employees which could not be paid this year because of certain reasons. Now maybe next year it 20:47 20 minutes, 47 seconds will be paid. So we have not reversed that provision. We have continued the remaining provision on 60 odd cr in this financial year. 20:55 20 minutes, 55 seconds Sir, this you have already got the board approval for the QIP. 21:00 21 minutes uh uh but uh what are the what are the plans in the immediate future uh with this uh uh present share price I mean 21:08 21 minutes, 8 seconds the market somehow is not may may not be understanding the I mean the kind of the result which you have declared or the kind of the strength which you have even 21:17 21 minutes, 17 seconds that provision numbers also I wanted to hear from your mouth only that such a like when you have a cushion of 1,900 cr 21:25 21 minutes, 25 seconds so at this price would you like to uh come out within this quarter uh with any 21:32 21 minutes, 32 seconds you have do you have any plan for that capital so uh this quarter we don't have any plans we'll be going to the AGM for the 21:42 21 minutes, 42 seconds approval first we'll get the approval of the uh shareholders and thereafter we will at the right opportune time when 21:49 21 minutes, 49 seconds the market also supports that time we will go for the QIP that time will not in the immediate this quarter 21:56 21 minutes, 56 seconds just last in this round sir is uh on the credit front only because as you narrated for the last 3 years uh it has 22:04 22 minutes, 4 seconds been you know 15% 17% and now 19 and a half to 20%. 22:10 22 minutes, 10 seconds going forward I believe that in spite even though the targets are very modest you will be crossing that. So can I just 22:19 22 minutes, 19 seconds know about the our sanctioned pipeline or what kind of industry or businesses which we are from where we are getting 22:27 22 minutes, 27 seconds the business uh as far as the credit is concerned. I can understand the overall ratio of the RAM and corporate but 22:34 22 minutes, 34 seconds within that where do you see the scope for increasing further and maintaining this kind of momentum this kind of a 22:41 22 minutes, 41 seconds growth in the uh I mean the credit growth going forward sir see we have around 14,000 cr of pipeline 22:49 22 minutes, 49 seconds in the corporate segment currently and we have certain sanctions also already in place but because of the pricing 22:56 22 minutes, 56 seconds issue we are not able to disperse we don't want credit growth in corporate segment at the cost of margins. So that 23:04 23 minutes, 4 seconds is the reason uh we are not growing corporate credit at a uh below our expected price. So that is one and the 23:13 23 minutes, 13 seconds growth which is coming from or demand is coming from renewables also data center also your smart metering also. So there 23:21 23 minutes, 21 seconds are number of areas where the from where the growth is uh coming to us and even the even road projects also have started 23:28 23 minutes, 28 seconds coming little bit. So number of areas are there from the growth is coming and there are many sunshine sunshine sectors 23:37 23 minutes, 37 seconds where but pricing is the biggest challenge where we would not like to compromise before entering into a team. 23:46 23 minutes, 46 seconds Okay sir, thank you and all the best to you and if time permits I will again come for further discussion sir. 23:52 23 minutes, 52 seconds Okay, Sabu and sir all the best. 23:58 23 minutes, 58 seconds Uh participant please raise your hand for the question. Next question is from the line of Sumeir Shi please go ahead. 24:12 24 minutes, 12 seconds Yeah. Hi sir. Uh am I audible? Yes. Yes. Yes. Please, please go ahead. 24:16 24 minutes, 16 seconds Yeah. Yeah. Firstly, sir, congratulations uh to you and entire team Yuko on a very good set of numbers. 24:24 24 minutes, 24 seconds Uh sir, I have a few questions. So, I'll just uh go about them. So, firstly, we've seen a good healthy deposit growth 24:31 24 minutes, 31 seconds on Q1Q basis around 6%. So how do you view the same growth sir or you know uh going forward because of the if there's 24:40 24 minutes, 40 seconds a slight rebound even in capital markets do you see this sticky deposit growth staying intact so secondly uh what we've 24:48 24 minutes, 48 seconds noticed is uh from you know particularly last quarter to this quarter our lending split so I think we've cut quite a few 24:55 24 minutes, 55 seconds larger checks to more AAA rated corporates I think particularly on the PSU side so incrementally sir how has 25:03 25 minutes, 3 seconds the yield been on that uh book and would you uh view that if we were to lend more in the double A bracket would our yield 25:11 25 minutes, 11 seconds be slightly better is that how we are looking at uh you know maintaining a very competitive yield while hedging risk or how is our view on that uh I'll 25:20 25 minutes, 20 seconds ask these two sir first then I'll go forward with the rest of the questions thank you sum uh first let me talk about 25:27 25 minutes, 27 seconds your deposit see earlier we were not focusing on deposit because our CD ratio was quite low So now we have reached a 25:34 25 minutes, 34 seconds CD residio of around 80%. Our target was 74 to 77%. And that is the reason we focused more on the deposits also. And 25:43 25 minutes, 43 seconds by focusing on the deposit we have not uh we have not stopped chasing kasa. If you look at our kasa in spite of our 25:51 25 minutes, 51 seconds deposit growth of 6% in this current quarter last quarter our uh kasa ratio continue to be in the range of 38 to 37 25:59 25 minutes, 59 seconds to 38 rather it has improved by 74 weeks on a y basis. So our focus while raising deposit is on the retail franchise more 26:08 26 minutes, 8 seconds than the uh bulk uh deposit and going forward also when we have to support the growth. So deposit concentration will 26:18 26 minutes, 18 seconds continue to have a focus on the retail term deposit and saving and current to some extent in the uh uh our bulk 26:27 26 minutes, 27 seconds deposit also. Overall we have a target of bulk deposit to total deposit percentage. So we always continue to 26:36 26 minutes, 36 seconds monitor and maintain our to bulk deposit within that ratio only. So that is on a deposit front. As far as AAA rated is 26:44 26 minutes, 44 seconds concerned if you look at our balance sheet though this quarter we have increased exposure in the AAA rated and PSU and same trend was there in the last 26:53 26 minutes, 53 seconds year also. In between there was uh demand from the PSUs was at a lower price. So that time we were not uh 27:00 27 minutes comfortable in lending to them. So slightly improved pricing was there. So we gave them the credit. So last year 27:08 27 minutes, 8 seconds also March 25 around 33% was in AAA rated. Now also it is 33% only. So 27:15 27 minutes, 15 seconds double A is 29% and now it is 26. So never whenever there is a better opportunity we will be continuing to 27:22 27 minutes, 22 seconds lend to double A and A rated accounts also in addition to AAA rated accounts. 27:35 27 minutes, 35 seconds Yeah. 27:37 27 minutes, 37 seconds Yeah. Yeah. Thank you. Uh so now uh you know if we see in a digital side uh we've got seen some very good traction 27:45 27 minutes, 45 seconds particularly in M banking. you touched upon it even in your opening comments sir and u you know I think it's very heartening to see so on this front any 27:54 27 minutes, 54 seconds new digital initiatives we are working on particularly you know for younger customers uh who tend to be you know high volume transactors on UPI and you 28:02 28 minutes, 2 seconds know possibly are new to credit as well sir and uh secondly one more question was in retail loans uh which products 28:10 28 minutes, 10 seconds are covered under the others category I mean it's a 25% of your overall retail loans. It's seen a 40% year-on-year 28:17 28 minutes, 17 seconds growth. So looking uh at that uh can you just elaborate on this and how is the uh demand of vehicle loans in the current 28:26 28 minutes, 26 seconds quarter because that again that book has also seen good traction. 28:30 28 minutes, 30 seconds See uh so far as the uh one is about digital you talked about 28:37 28 minutes, 37 seconds digital I see uh we have revamped our entire digital journey and last year we 28:44 28 minutes, 44 seconds on 6th January 2025 we launched our digital project that is digital transformation project prian and since 28:52 28 minutes, 52 seconds then we have been launching uh journeys for the uh our customers till now 31st journeys 31 journeys have already been 29:01 29 minutes, 1 second launched across retail, MSME, agree and liability products. So total 25,000 cr of uh digital business has been booked 29:10 29 minutes, 10 seconds of which 11,000 cr is advances and 14,000 cr is liabilities. For the ease of young customers, I can tell you that 29:18 29 minutes, 18 seconds digital FDR currently happening in our bank is more than 50% FD is being made digitally by our customers through 29:25 29 minutes, 25 seconds mobile banking app. more than 50% loan against FBD is also happening digitally by our customers. Then our STP journey 29:35 29 minutes, 35 seconds of our car loan that has been well accepted and more than 50% uh car loans daily are happening through digital journey. 29:45 29 minutes, 45 seconds MSME journeys we have launched DST smart pas MSME smart penas that is also very well 29:52 29 minutes, 52 seconds accepted and good amount of business is happening in the MSME segment also through the digital journeys for the 30:00 30 minutes ease of our young customers we have revamped our entire UIUX of our mobile app and you can see that our mobile app 30:08 30 minutes, 8 seconds rating continues to be in the range of 4.7 to 4.8 8 amongst all public and peer uh private sector banks it is one of the 30:16 30 minutes, 16 seconds best ratings I will rate and on Apple store also it is 4.6 six. So that clearly clearly tells that our app is 30:25 30 minutes, 25 seconds well accepted in the market. Further to enhance our reach to our new generation customers, now we are bringing omni 30:33 30 minutes, 33 seconds channel uh experience also. So maybe this year our omni channel mobile banking will be available where they 30:41 30 minutes, 41 seconds will it will be more interactive, more convenient for our customers. Second is now your digital you have talked about 30:49 30 minutes, 49 seconds sorry retail in retail the other portfolio is uh includes our co-ending a 30:56 30 minutes, 56 seconds small portion is that and that's not a huge mainly is gold and staff loans. So gold loan portfolio out of that is 31:03 31 minutes, 3 seconds around 5,400 crores and the growth which we are seeing seeing in the uh other portfolio is mainly coming from the gold loan port. 31:13 31 minutes, 13 seconds Okay. Uh understood. So one final question. Uh so one more one more. 31:20 31 minutes, 20 seconds More than more than 250,000 customers have been given loan digitally last financial year. More than 2 lakh 31:27 31 minutes, 27 seconds 50,000 customers they have been sanctioned loan digitally last financial year. 31:32 31 minutes, 32 seconds No sir of course that's great to see because it's reflecting in your m bankanking numbers which I think you'll have put a good slide in the presentation as well. Uh sir one final 31:42 31 minutes, 42 seconds question from my side. uh sir you know to uh which external benchmark rate would we have linked our loans could you 31:49 31 minutes, 49 seconds just uh shed some light on that mainly is repo uh linked rate around 31:55 31 minutes, 55 seconds more than I think 60% 65% 65% of our portfolio is linked to repo 32:03 32 minutes, 3 seconds because uh if you look at our uh retail and MSME that itself is a huge portfolio 32:10 32 minutes, 10 seconds so RAM is 65% so retail and MSM M itself is a good around one lakh one lakh more 32:18 32 minutes, 18 seconds than I think 66 68,000 is our retail and 46,000 is our MSM MSM so both put together is 1 lakh 16,000 cr 32:26 32 minutes, 26 seconds so more than 50% portfolio is in that segment itself so 65% because in some of the corporates also they will short-term 32:33 32 minutes, 33 seconds loans linked to reporate corporate in the corporate book though they they are sanctioned at MCLR but they short-term 32:41 32 minutes, 41 seconds when they have to take WCDL take rep. 32:47 32 minutes, 47 seconds Understood sir. Thank you so much for answering my questions and best wishes to team. You go for the next fiscal. Thank you. 32:55 32 minutes, 55 seconds Thank you. We'll take the next question from the line of Hoksi. Please go ahead. 33:03 33 minutes, 3 seconds Congratulations to team Yuko Ashwini sir Sabhu Kam on a great set of numbers sir. 33:07 33 minutes, 7 seconds Again I think our performance has been just been growing year on year and kudos to the whole team. Uh so a couple of questions. So on our cost to income 33:16 33 minutes, 16 seconds ratio so we've shown a good decline this year down from 56.99 to about 5292. So we've seen a significant drop for a 33:25 33 minutes, 25 seconds second year running. So can you just speak about your initiatives on that front and just so one specific thing that in the last quarter we've seen a 45 33:32 33 minutes, 32 seconds bip increase also. So if you can specifically speak on the cost to income bit first. 33:39 33 minutes, 39 seconds So uh on cost to income front we have uh taken lot of initiatives right from I think last two three years we are working very closely monitoring our cost 33:48 33 minutes, 48 seconds to income ratio. There are two components one is to control the cost controllable cost non-contraable you can't control but controllable cost how 33:56 33 minutes, 56 seconds can you control and also how can you improve your uh fee based income. If you look at our fee based income has been 34:03 34 minutes, 3 seconds growing on a quarteronquarter basis and y basis also. So fee based income our growth uh during this financial year is around I think 32%. 34:14 34 minutes, 14 seconds Let me check 32% 32% 32% on bas on quarter basis and uh on a 34:21 34 minutes, 21 seconds y basis it is 25%. So one is we are working on fee based income and second our control on the cost also we have 34:30 34 minutes, 30 seconds been very uh particular about the budget given to the field our uh teams monitor the expenditure against the budget 34:38 34 minutes, 38 seconds various control cost control measures have also been implemented and if you look at our total operating expenses has also come down from the previous quarter 34:47 34 minutes, 47 seconds to this quarter. So uh the these are the things which we are continuously monitoring and second thing uh if you 34:54 34 minutes, 54 seconds look at our previous year our cost income ratio was high at that time also our right recovery from the return account of 35:02 35 minutes, 2 seconds costs was very high so that was around 2400 or 2500 crores this year it is around 20300 cr in spite of that we are 35:11 35 minutes, 11 seconds able to reduce our cost to income cost to income ratio so every effort is being made to improve on income, fee based 35:19 35 minutes, 19 seconds income and also to reduce our controllable cost and that these measures will continue in this financial year also 35:34 35 minutes, 34 seconds are there any followup question so thank you for that uh so now if I look at a segmental NPA book uh within 35:44 35 minutes, 44 seconds personal loans so if you see there's been a slight uptick in this quarter any specific reason 35:51 35 minutes, 51 seconds see I think there's a very very small uh uptick is there it's not uh substantial 35:57 35 minutes, 57 seconds against 2700 cr of book our NP is only 39 cr yes last quarter it was 31 cr but 36:04 36 minutes, 4 seconds this is 39 cr maybe because of some uh uh reasons it will be there but there is no specific reason it is hardly 1.43% or 36:12 36 minutes, 12 seconds 3% in personal loan book that's not a a valid uh factor for us. 36:19 36 minutes, 19 seconds So now a broader last question which is so on the future vision like your broader vision for the bank for the next few years. So how we've we've 36:27 36 minutes, 27 seconds significantly improved our ROAS and our performance last few years and now we're ending the year somewhere around8%. 36:34 36 minutes, 34 seconds So what what are the steps we are undertaking to build towards a 1% ROI franchise? 36:41 36 minutes, 41 seconds to build on ROA we need to improve our uh net interest margin. We need to uh 36:48 36 minutes, 48 seconds focus on the continue to focus on our CASA growth also and our uh NI 36:56 36 minutes, 56 seconds improvement also. So there are number of parameters where we are working we need to work on our uh TWW recovery also. So 37:04 37 minutes, 4 seconds lot of initiatives are being taken 87 we have reached and I if you look at for last so many quarters every quarter 37:11 37 minutes, 11 seconds there is improvement in our uh ROA so the same trend is expected to continue in the next financial year and I believe 37:20 37 minutes, 20 seconds that by end of next financial year we should be nearing to 0.95 to 1% RO levels. 37:32 37 minutes, 32 seconds Thank you. We'll there is a question in the chat box. Uh how do you see the impact of the ongoing West Asia war in 37:40 37 minutes, 40 seconds your MSME portfolio and what percentage of your MSME portfolio covered under CGPME? 37:48 37 minutes, 48 seconds See in the current scenario we have not yet seen any major impact. Currently if 37:55 37 minutes, 55 seconds you look at our slippages they are in tandem with the previous quarter from the MSME segment. There is no sharp surge in slippages. Number one. Number 38:03 38 minutes, 3 seconds two, if you look at our SMA book also within the overall SMA book, the SM SMA book that is also in the same trend of 38:13 38 minutes, 13 seconds the earlier quarters. So I don't foresee any major impact. There can be some some impact but it's not going to be a very 38:20 38 minutes, 20 seconds major impact in the next uh financial year. But to counter those contingencies in case if at all we have built already 38:30 38 minutes, 30 seconds 341 cr of additional buffer as by way of a provision in our standard book. So that will take care of the requirement 38:37 38 minutes, 37 seconds going forward and around 40% of our advances are covered under CGTMS. 38:46 38 minutes, 46 seconds Thank you sir. The next question is that what is your total AFS reserves as on FY 26 March 2026 38:55 38 minutes, 55 seconds AFS reserves give me a second I'll tell you it's it's minus 140 cr it'sus 140 39:03 39 minutes, 3 seconds negative 140 okay thank you sir the next follow-up question is from the line of AO Kajmira 39:11 39 minutes, 11 seconds please go ahead Thanks for giving the opportunity again 39:19 39 minutes, 19 seconds sir. I would like to have the some some uh some some of your views or clarity on the treasury operations because treasury 39:28 39 minutes, 28 seconds has not contributed uh uh you know uh this time into the profits or rather it's negative only but if you look at 39:36 39 minutes, 36 seconds the segment wise prof results the treasury operations are showing 848 cr 39:44 39 minutes, 44 seconds of uh profit as compared to 557 crores So in segment wise is there any like 39:52 39 minutes, 52 seconds some part of the uh this other than the treasury things have gone 39:59 39 minutes, 59 seconds into that or and how do we see the treasury performing in the now coming financial year in this current quarter and the remaining three quarters. 40:10 40 minutes, 10 seconds See if you talk about treasury you all you know that treasury is a play of your 40:18 40 minutes, 18 seconds yields. So last quarter yields pumped up and uh it was more than 7% for a long period of time at the quarter and also 40:26 40 minutes, 26 seconds as a result there was MTN AFS book also and HFT book also and that has impacted little bit not only to our 40:33 40 minutes, 33 seconds bank but to other banks also but fortunately our bank we had very slight impact on our P&L because our treasury 40:41 40 minutes, 41 seconds uh I think had a profit of around 130 odd last quarter but this quarter it was a minus 12 16 - 16 cr only. 40:49 40 minutes, 49 seconds Yes sir. 40:50 40 minutes, 50 seconds So far as AFS book 135 cr of the negative impact was MTM was there and 40:57 40 minutes, 57 seconds now by the way the yields have now moved down. So it's ranging in the range of I think 6.95 to 6.98. 41:06 41 minutes, 6 seconds So already some of the provisions or the losses which were booked in March they have already been reversed. If we take 41:13 41 minutes, 13 seconds MTM today and going forward I think the way the liquidity market is behaving the the way uh the things are shaping out 41:21 41 minutes, 21 seconds once the I think stability in the overall global environment is achieved. 41:27 41 minutes, 27 seconds I think there will be uh good good amount of treasury uh traction in this financial year. Again it is subject to 41:35 41 minutes, 35 seconds the uh global stability in the environment. 41:41 41 minutes, 41 seconds Sir any clarification on the segment wise uh figures numbers sir I I'll give you 41:49 41 minutes, 49 seconds I give you separately I okay sir no no problem sir I'll take it offline sir okay sir thank you very much 41:57 41 minutes, 57 seconds sir thank you thank you sir thank you there is a question in the chat box what is your total gold loan portfolio as on date agree and 42:06 42 minutes, 6 seconds non-aggree and what is the weighted average lead for See gold loan uh portfolio in the retail 42:15 42 minutes, 15 seconds segment is around 5,400 and in agree it is around 12,000 cr 12,200. So put 42:22 42 minutes, 22 seconds together I think 18,000 cr is our total gold loan portfolio as on date and yield will be around I think it should be 42:30 42 minutes, 30 seconds around 8 and a half to 9%. I'm not having exact number but it should be around 8 and a half to 9%. 42:36 42 minutes, 36 seconds Okay. Thank you sir. Participants, those who have any question, please raise your hand. 42:54 42 minutes, 54 seconds As there is no further question, I hand over the call to MD sir for his opening remark or closing remarks. 43:01 43 minutes, 1 second Thank you. Uh thank you uh to all the analysts and investors for uh taking out time and attending the conference call 43:09 43 minutes, 9 seconds earnings call of our uh Yuko Bank for the financial year 2526 and uh we look 43:17 43 minutes, 17 seconds forward for your continued support uh in the next financial year and uh whatever guidance we have given it will be our 43:25 43 minutes, 25 seconds team's endeavor to deliver on uh the same as we have been delivering for the last three years. Thank you very much. 43:34 43 minutes, 34 seconds Thank you. That concludes the Yuko Bank Q4 F26 earnings conference call. Thank you.