Union Bank of India Ltd — Q4 FY26

Union Bank of India Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=egEkcO2TnVQ Published: 2 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to Union Bank of India earnings conference call for the period ended March 31st, 2026. 0:11 11 seconds The bank is represented by the managing director and CEO Shri Ashish Pande, executive directors Sri Nitesh 0:18 18 seconds Ranjanjan, Sri Ramasudra Many S, Sri Sanjay Rudra, Shri Amish Prasad and other members of the top management. As 0:26 26 seconds a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance 0:35 35 seconds during the conference call, please signal an operator by pressing star then zero on your touchstone. Please note that this conference is being recorded. 0:44 44 seconds I now hand the conference over to Mr. AJ Panchul, deputy gender manager. Thank you and over to you Mr. Panchul. 0:54 54 seconds Thanks sir. Good afternoon ladies and gentlemen. I Ajay Anal head of investor relation welcome you all for Union Bank 1:01 1 minute, 1 second of India earning call for the period ended March 31st 2026. The structure of the phone call Shen Ilur a brief opening 1:10 1 minute, 10 seconds statement by respected MD and co sir and then the floor will be open for interaction. Before getting into the phone call I will read out the usual 1:18 1 minute, 18 seconds disclaimer statement. I would like to submit that certain statement that may be discussed during the investor interaction may be forward-looking 1:26 1 minute, 26 seconds statement based on the current expectation. These statement involve a number of risks, uncertainty and other factors that cause the actual result to 1:34 1 minute, 34 seconds differ from the statement. Investors are therefore requested to check this information independently before making any investment or other decision. With 1:43 1 minute, 43 seconds this I now request our respected MD and co sir for his opening remarks. Thank you and over to you sir. 1:52 1 minute, 52 seconds So thank you so much uh Mr. Benson and uh good afternoon and welcome to all the 1:59 1 minute, 59 seconds uh anist investors and uh to this an analyst call and meeting and uh we had 2:08 2 minutes, 8 seconds uh today board audit committee and the board and and the results are adopted uh by the 2:16 2 minutes, 16 seconds board and we had a uh press meeting uh and just now from press meeting we have switched to enlist ing 2:24 2 minutes, 24 seconds now as you know the current scenario which was from January February onwards. 2:30 2 minutes, 30 seconds So macroeconomic environment has been influenced by ongoing global conflicts and war related disruptions and other 2:36 2 minutes, 36 seconds things but at the same time the government of India RBI has come forward to put up a cushion so that the impact 2:46 2 minutes, 46 seconds is not much of that. So we have seen various measures the RBI has come and also various measures the government of 2:54 2 minutes, 54 seconds India has come and which has well taken uh in the market. Now similarly if we come to Union Bank of India. So all of 3:02 3 minutes, 2 seconds you are aware that uh uh that initial in the last uh September when we had a uh 3:10 3 minutes, 10 seconds call in 28th or 29th of October and 13th January we had for December quarter and I think the third time we are meeting 3:18 3 minutes, 18 seconds right now. So from there we have moved a lot. We also placed our provisional numbers on 3rd of April to the stock 3:27 3 minutes, 27 seconds exchanges. So initially yes we had a muted and not many questions were also there from our analyst and press and 3:35 3 minutes, 35 seconds investors uh that on the growth side. So certainly this last 6 months uh we have made a good uh ste on the business front 3:44 3 minutes, 44 seconds whether it is a car or whether it is uh even a deposit or uh or a retail term deposit I should say or maybe advances 3:52 3 minutes, 52 seconds on all retail and MSME and the large corporate and if you see the business of last 6 months it has increased by uh 1 4:01 4 minutes, 1 second lakh 71,000 cr so the growth was around 5 uh sorry say around uh 6.56 if you analyze it comes about 25%. 4:12 4 minutes, 12 seconds Sorry it is about 13 uh 13%. So we could make it and even our strategy was very clearly that we wanted to be more on a 4:22 4 minutes, 22 seconds casa. So yes kasa is increased you can see around if you see half and half year basis it is around 2.7 percentage which 4:31 4 minutes, 31 seconds has been increased. And uh the second one is that uh when we talked about uh the retail term deposit because we were 4:39 4 minutes, 39 seconds purposefully shifting from bulk deposit to retail term deposit. So put together it is 1 lakh 10,000 cr we could garner 4:47 4 minutes, 47 seconds and uh here if you see uh on the the growth the figures which I we will be giving to you the global deposit 4:55 4 minutes, 55 seconds certainly you may feel around 2.72% but then around 46,000 cr we raised alternatively uh in which 25,000 odd 5:05 5 minutes, 5 seconds amount uh which came we shrink the treasury book so that we move to lending book number one number to on the 5:14 5 minutes, 14 seconds refinance and other things around 18,000 3,000 infrastructure bond. So if we add that 46,000 with the actual increase in 5:22 5 minutes, 22 seconds the deposit so I believe there it gives 1.29 actually lakh cr which is almost 5:30 5 minutes, 30 seconds about 9%. So that is not but the thing is that we are very cautious about our cost. We are cautious about the mean. We 5:38 5 minutes, 38 seconds are cautious about very clearly about profitability and that is why we are working on the efficiency parameter. So 5:46 5 minutes, 46 seconds you may see that we are above 80 CD ratio much comfortable. LCR 114 much comfortable and LSS are also much 5:55 5 minutes, 55 seconds comfortable. So all maintaining all regulatory and and the liquidity and other guidelines we are on the good 6:03 6 minutes, 3 seconds footing. Now this 6 months we could have a very good uh increase in business. So if quarter to sorry quarter to quarter 6:11 6 minutes, 11 seconds only if you take uh it is 6.52 if you take the global business then certainly in totality putting together asset and 6:20 6 minutes, 20 seconds liability side it is uh into four if you analyze it is coming around 13%. So I 6:28 6 minutes, 28 seconds think we could make it the headway in the last 6 months. So with this background uh we will come to the 6:36 6 minutes, 36 seconds figures and uh first of all the board of directors have recommended a dividend of rupees 5 per equity share 50% of the 6:45 6 minutes, 45 seconds face value for year ended 31 uh 3 2026 subject to the requisite approvals. Net 6:53 6 minutes, 53 seconds profit of the bank is stood at 18,697 crores and interest incomes of the bank is stood at 1 lakh 5,9 approximately 7:02 7 minutes, 2 seconds 1.06 lakh cr. The business growth is around 5.78 YUI wherein gross advances increased by 9.74 7:11 7 minutes, 11 seconds and total deposit grew by 2.72% YI which for which I have already told if we take 46,000 the additional ones which we have 7:20 7 minutes, 20 seconds raised alternatively then the total business grew by 23.85 85 lakh cr. So 7:27 7 minutes, 27 seconds with this the RAM segment which we were focusing it is 12.56 YUI in which 16.75 7:34 7 minutes, 34 seconds growth in retail 18.75 in MSME and uh the domestic advances RAM advances is 57.49%. 7:44 7 minutes, 44 seconds The gross NPS reduced by 78 bits on YUI basis to 2.82 and net NPA reduced by 15 7:51 7 minutes, 51 seconds bits on YI to 0.48. 48 the strong capital ratios the capital adequacy CR 7:58 7 minutes, 58 seconds at student 18.10 increased from the earlier one and the CT1 ratio which is 8:05 8 minutes, 5 seconds important it own money is improved from 14.98 to 15.69 and if we take uh the return on asset 8:14 8 minutes, 14 seconds and the return on equity uh so return on asset is y is flat 1.25 25 the same 8:21 8 minutes, 21 seconds almost levels but if you take the quarterly the last quarter we were at 1.35 this quarter we are at 1.36 8:30 8 minutes, 30 seconds and one more highlight which I would like to give to you that this time uh apart from this we have kept 700 crores 8:38 8 minutes, 38 seconds of an additional provision general provision sort of uh just you know as a as a when good time is there it is 8:46 8 minutes, 46 seconds always better to keep aside but this 700 8 cr is not impacting either the net 8:53 8 minutes, 53 seconds profit or it is impacting the impacting the the capital. So this we have kept and depending upon the situation whether 9:01 9 minutes, 1 second ECN framework comes or whether or whether uh uh West Asia or anything any 9:08 9 minutes, 8 seconds inventory so we haven't last time our profit was 5017 crores and now it is uh 9:16 9 minutes, 16 seconds better much better than that and secondly the dividend also last time it was 4.75 9:22 9 minutes, 22 seconds this time it is uh four 5% and if we take the payout ratio it is 20.61 or 65 levels. So I think we 9:31 9 minutes, 31 seconds have maintained all and with this I I hand over to the coordinator for for Q&A for all of us. Thank you. 9:42 9 minutes, 42 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If 9:50 9 minutes, 50 seconds you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. 9:59 9 minutes, 59 seconds The first question comes from the line of CA Dr. Ashok Amera, chairman from Ajan Global. Please go ahead. 10:07 10 minutes, 7 seconds Yeah, thank you for giving me the opportunity. First congratulations Pandesha and the entire team Ashisar 10:16 10 minutes, 16 seconds uh for a very good quarter because or rather I could say the last six months have been good for the bank 10:24 10 minutes, 24 seconds comparatively as compared to the previous four quarters before that and at least to to a great extent we have 10:31 10 minutes, 31 seconds covered as far as the credit growth is concerned 6.07% 07% only in one quarter and 9.74% for the whole year respectable figure. 10:42 10 minutes, 42 seconds Uh having said that sir but on the deposit front even though in this quarter we have performed very well 6.87% but the overall for the year the deposit is 2.72%. 10:54 10 minutes, 54 seconds So now the going forward u in order to though presently we are good at C but 11:02 11 minutes, 2 seconds going forward with the kind of the growth I would like to know the credit growth target also as well as how are we going to match uh the the asset 11:11 11 minutes, 11 seconds liability if our deposit growth do not match with the credit growth sir going forward. 11:20 11 minutes, 20 seconds Okay. So thank you Ajara Sa. As I said this time also if you see the 46,000 which I we actually see let us 11:29 11 minutes, 29 seconds understand banking that we raise resources and we deploy resources to productive investments and we invest it 11:36 11 minutes, 36 seconds whether in the treasury or in the loan book and then we uh the interest income and the fee based income related to the 11:44 11 minutes, 44 seconds transactions happening. Now coming to that if you see we have raised 46,000 kores so and in which the treasury mean 11:52 11 minutes, 52 seconds this is I'm saying not raised but the resources which we have tried to build so our ty book was reduced by 25,000 cr 12:00 12 minutes odd which we shifted so if you see the last year uh the March 25 levels at that 12:08 12 minutes, 8 seconds point of time the the CD ratio was around 77 and now it is around 3.5% up 12:15 12 minutes, 15 seconds Now the question is that whether the CD ratio uh we are very very comfortable uh comfortable in a sense very nicely 12:23 12 minutes, 23 seconds regulatory but at the same time very efficient above 80 levels number one. 12:28 12 minutes, 28 seconds Number two is that uh our LCR and SSR all liquidity ratios are very comfortable range comfortable in the 12:36 12 minutes, 36 seconds sense again very efficient because last time our LCR was average 123 but this time it is around 114. So we could 12:44 12 minutes, 44 seconds reduce by by 10 basis point on the NCR which was on the excess side. So I think 12:52 12 minutes, 52 seconds that this uh what was the challenge not the total deposit but the challenge is on the kasa front and on the retail term 13:01 13 minutes, 1 second deposit. Now if you see these two figures as far as union bank is concerned we have made a very good 13:08 13 minutes, 8 seconds stride in that. Now put together I think more than 1 lakh 10,000 crores which we have increased during the this period. 13:16 13 minutes, 16 seconds Now the kasa which was uh because see again if you see yi then certainly at the March 25 level it was more in 13:24 13 minutes, 24 seconds September it was only 32.51 from 32.51 we have come up to 35.21 13:33 13 minutes, 33 seconds so 32.51 to 35.21 to one. So there is increase of 2.7 percentage points. I'm not saying basis 13:41 13 minutes, 41 seconds point. So that is the first key thing which is very clear from the the working which has been done by the entire team 13:49 13 minutes, 49 seconds of union bank that we have tried and focused a lot under kasa and we could achieve that. That is point number one. 13:57 13 minutes, 57 seconds Second is we were very cautious to increase our retail time deposit because that is stable. Point number one. Point 14:04 14 minutes, 4 seconds number two, it has an LCR impact also and that is the reason during the entire year. Now if you see our bulk deposit we 14:13 14 minutes, 13 seconds have shared off by 70,000 K. So that is a very clear thing why how we want to churn. So basically exactly what we are 14:20 14 minutes, 20 seconds doing is just churning the portfolio towards a better one. And if you take the the cost so if I take this 70,000 14:28 14 minutes, 28 seconds then certainly I can say that uh that uh they must be having the weighted average about seven but when we talk of you know 14:37 14 minutes, 37 seconds converting this to term deposit in kasa my average cost would be somewhere 4.5 or maybe 4.75 levels so where and again 14:47 14 minutes, 47 seconds uh now I am just linking this with the February uh somewhere 5 where from there 14:56 14 minutes, 56 seconds and up till now the repo has been reduced by 1.25 25 percentage points. 15:01 15 minutes, 1 second But if you see the the mean of our bank uh which was uh 2.91 has right now at 15:09 15 minutes, 9 seconds 2.70 that is only 21 bits point. So I think this is the only thing which is helping us. So you know and we always 15:18 15 minutes, 18 seconds say that uh we want to defend our name we want to defend. We continued saying that and that is what we tried. But then 15:25 15 minutes, 25 seconds I think the last moment when there was increase in the GSA yield and there was 15:31 15 minutes, 31 seconds increase in the the deposits as well and that was the reason but then from here onwards and if you see the last cut 15:39 15 minutes, 39 seconds which has happened in December the entire 50 basis basis point was conveyed for the entire quarter but then also our 15:47 15 minutes, 47 seconds if you see the limb from 2.76 to 64 it is only 12 basis point. So this is the reason you know that cautiously we 15:57 15 minutes, 57 seconds worked upon each parameter of the balance sheet each parameter of our asset and liability and uh even on the 16:04 16 minutes, 4 seconds credit side though you are saying 9% good but then there is one thing which is uh not coming forth is on the large 16:11 16 minutes, 11 seconds corporate we have 35,000 cr of IBC IBC which is zero now number one number two 16:18 16 minutes, 18 seconds is around 30,000 cr we had uh on uh which is at below 6% levels which is 16:25 16 minutes, 25 seconds almost uh is not there. Now somewhere it has turned up with the new business when we it has gone out somebody new business 16:34 16 minutes, 34 seconds has come. Now if you add that so the team has worked and team has worked well and actually if you see these figures we 16:41 16 minutes, 41 seconds have worked better than the industry average but yes the figure is figure if you see the the year onyear basis 16:48 16 minutes, 48 seconds certainly you see somewhere this deep but then we are working upon the average whether it is kasa whether it is deposit 16:57 16 minutes, 57 seconds whether it is advances whether it is ra now that's the reason our profitability has continued towards an upward trend and that's the reason that even recovery 17:06 17 minutes, 6 seconds we are trying hard to improve and that's the reason that we are having the profit of more than 5,300 crores and uh even 17:15 17 minutes, 15 seconds then we have kept 700 cr aside uh for you know anything contingency or anything it is not like uh uh like you 17:24 17 minutes, 24 seconds know any any dent or any suspicion on the book we have already given in our presentation 17:32 17 minutes, 32 seconds that our 90 more than 95 5% 99 I think is the more than 700 civil score in retail and other portfolio and the more 17:40 17 minutes, 40 seconds than 95% in tripleB and above. So I think that gives a color of the the business also last 6 months which we 17:47 17 minutes, 47 seconds have done. So I think this is this background I could I think I could answer that going forward you can expect 17:54 17 minutes, 54 seconds the industry trend we will be meeting it and we would like to be better than a bit more than that going forward in the 18:03 18 minutes, 3 seconds coming years can we can we expected 13 14% growth in the credit sir in the FI27 18:11 18 minutes, 11 seconds yeah certainly I think uh we are we are on that line yes sir Now coming to the uh profit and loss 18:19 18 minutes, 19 seconds account I mean our profitability uh you have clarified that the profitability would have been much higher but for this 700 uh other 18:27 18 minutes, 27 seconds standard provision which you have done which according to you is just to take care of any uh uh provisions or ECL or 18:35 18 minutes, 35 seconds other things and nothing is uh to take care of any known uh known account or uh 18:42 18 minutes, 42 seconds so that is good point well taken. Uh sir our uh one other region of the uh uh 18:49 18 minutes, 49 seconds profit being little high is the there is a reduction in the employee cost in this quarter of by about almost about 600 cr. 18:59 18 minutes, 59 seconds So the employee cost reducing in this quarter which is also actually a March quarter. uh what could be the region and 19:06 19 minutes, 6 seconds going forward are we going to uh maintain that uh 3,700800 per quarter or is it going to be lower 19:16 19 minutes, 16 seconds in the in the coming year. So that because you know 586 cr wage bill is employee cost is lower in this quarter. 19:24 19 minutes, 24 seconds This along with another point is that that the operating expenses have gone up in this quarter by 522 crores. So 19:33 19 minutes, 33 seconds offsetting each other to some extent and another uh point is that income going up is there is a handsome recovery 19:41 19 minutes, 41 seconds from the return of account very good recovery of 1567 cr is against 19:49 19 minutes, 49 seconds 667 cr in the last quarter. So uh can we have the individual explanation or some 19:56 19 minutes, 56 seconds details on these three four numbers on the profit and loss account so that to have the clear idea for going forward uh where do we stand? 20:05 20 minutes, 5 seconds Uh namaskar then uh sir as you as you 20:12 20 minutes, 12 seconds observe there is a reduction in my uh operating expenditure particularly establishment expenditure. So this is due to uh the discounting rate factors. 20:23 20 minutes, 23 seconds Uh uh last year uh 31st March 2025 discounting rate uh was 7.07 and this year it was 7.87. 20:34 20 minutes, 34 seconds So due to that the overall liability we estimated earlier uh uh was provided higher in the earlier quarter and due to 20:41 20 minutes, 41 seconds that the final liability which was on a lower side. So this was the impact of establishment uh expenditure sir. Now uh 20:51 20 minutes, 51 seconds as far as the TWW recovery which is close to 1,600 in the quarter as compared to 666 cr in the last quarter 20:58 20 minutes, 58 seconds uh as you have no we we we have a thating biotech group accounts which was 21:06 21 minutes, 6 seconds settled during this quarter and the income of 658 cr was booked during this particular quarter. So these two factors 21:15 21 minutes, 15 seconds and what was the third one sir you asked. 21:18 21 minutes, 18 seconds So sir employee cost has reduced and operating expenses have increased. 21:25 21 minutes, 25 seconds Operating expenses other operating expenses other operating expenses have increased. 21:30 21 minutes, 30 seconds Uh yeah sir in Q4 this trend is always there sir. operating expenditure 21:38 21 minutes, 38 seconds the budget which was allocated and the provisions which are made in the uh year end is always there's a gap of 200 300 21:45 21 minutes, 45 seconds cr it is always there in Q4 sir this is a normal trend if you look at quarter 21:52 21 minutes, 52 seconds wise analy s there is a little now looking at the current geopolitical situation and the 22:00 22 minutes west Asia war situation pand how do you See I mean is there any stress again uh already started building 22:09 22 minutes, 9 seconds up or in this first quarter do you feel that there will be some stress because even 22:17 22 minutes, 17 seconds in this quarter also the fresh slipages have increased to 2023 as against 1660 in the last quarter and secondly uh even 22:26 22 minutes, 26 seconds though SMA2 numbers have come down but SMA1 numbers have almost doubled so 22:33 22 minutes, 33 seconds do you see that any any kind of the aggression I mean this war uh effect maybe there in this coming quarter or the running quarter. 22:43 22 minutes, 43 seconds So we actually you know we are very closely monitoring the entire west AC crisis this all these things and uh as 22:52 22 minutes, 52 seconds such we have not seen anything very unusual up till now and we are also monitoring what is the inward 22:58 22 minutes, 58 seconds remittances flow last year and this year we are also monitoring import numbers and uh remittances total remittance 23:06 23 minutes, 6 seconds import remittances we are also monitoring where it is hedged not hedged and other things. So what we have seen 23:13 23 minutes, 13 seconds is that there are two things two three things are impacted like one is the energy 23:20 23 minutes, 20 seconds sensitive sectors where gas commercial gas and all. So those particularly industries they suffered a bit like mori 23:29 23 minutes, 29 seconds and all and uh a few more places are there which were actually based upon the energy these energy sectors. The second 23:37 23 minutes, 37 seconds one is that remittance overall also has has come down. But up till now we have not seen anything and at the same time 23:46 23 minutes, 46 seconds when this all these things happening the let me share with you the government of India and there is a bank both have come forward and tried to put a cushion with the initiatives which they have taken. 23:58 23 minutes, 58 seconds Now we are in that and even uh let me share with you we have a data also which I can part with you uh on the the scheme 24:08 24 minutes, 8 seconds J summer portal we got around 306 uh this I am saying that status of CGSC 24:15 24 minutes, 15 seconds application that is credit guarantee scheme for exporters to provide 100% credit guarantee coverage in that 210 24:22 24 minutes, 22 seconds are sanctioned and 180 is dispersed around uh 700 kores And on the other side where you know the 24:30 24 minutes, 30 seconds RV also came with the trade relief measures extension of PC extension of post shipment and conversion of accured 24:37 24 minutes, 37 seconds interest. So we have received only five sorry uh applied 59 people only applied 35 applications in PC extension post 24:47 24 minutes, 47 seconds shipment only three and FIT which is only 40. So we have not seen anything. 24:52 24 minutes, 52 seconds So the preliminary figures what we are observing that uh uh as of now is not uh 25:00 25 minutes you know giving any very adverse or very critical signals uh to us 25:07 25 minutes, 7 seconds in this round coming sorry for interrupting Mr. Please for more questions. 25:14 25 minutes, 14 seconds Yeah coming to SMA actually from SMA 2 we have moved the lot portfolio to SMA 1. So I think it is a better signal that 25:23 25 minutes, 23 seconds from SMA2 we have moved to quite a lot by recovering the installment and we have moved to a better proposition of 25:31 25 minutes, 31 seconds the stage uh two like you know one I think with the 60 to 30 to 60 days. 25:37 25 minutes, 37 seconds So it is a better proposition and uh over to you. Yes sir. Thank you very much sir. 25:45 25 minutes, 45 seconds Okay. 25:48 25 minutes, 48 seconds Next question comes to the line of Maruk Alajana with Tara Capital. Please go ahead. 25:55 25 minutes, 55 seconds Hello. Good afternoon sir. So I had a couple of questions. uh firstly that our 26:00 26 minutes corporate loans have grown um 9% QQ and then if you see the sector corporate uh 26:09 26 minutes, 9 seconds the the certificate of deposit data which is available for all banks then our CD mobilization was also very high 26:18 26 minutes, 18 seconds compared to other banks during the quarter. uh and our LCR is now amongst the lowest and margins have also fallen 26:28 26 minutes, 28 seconds more than what uh we had guided for. So uh what would be a what would be a what 26:36 26 minutes, 36 seconds would be the strategy going ahead? Would you continue to pursue corporate growth uh even if it's low yielding? What about 26:45 26 minutes, 45 seconds deposit mix? And uh given where LCR is, would you rather focus on margins or 26:53 26 minutes, 53 seconds would you from now on focus on growth if you have to choose one of the two? 27:01 27 minutes, 1 second See we are choosing growth with quality number one and with profitability. Now I think in my initial address and I think 27:10 27 minutes, 10 seconds when Mr. Rajira was asking I have made it very clear that though you cannot see those growth in these numbers but 35,000 27:18 27 minutes, 18 seconds cr of IBPC at a very lower rate which we have uh you know shed it off number one 27:25 27 minutes, 25 seconds then around 30,000 cr so almost 60,000 cr 65,000 cr of such advances which were low yielding otherwise how we would have 27:34 27 minutes, 34 seconds shielded the entire limb which was 2.91 to 2.70 which is only 21 basis point reduction is there. It would not have 27:43 27 minutes, 43 seconds been possible if in case what you are saying it would have been correct. So we have actually tried. Now coming to the 27:49 27 minutes, 49 seconds CD the CD is almost in the same range which we had the earlier. Yes. So you have seen like you know the the CDs 27:58 27 minutes, 58 seconds which are raised but then there were maturities also so which has to be replaced. So for a bank we have an internal sort of a ceiling limit where 28:07 28 minutes, 7 seconds we keep you know CDs and FDs and other uh things in the same fashion. So that 28:14 28 minutes, 14 seconds is the reason we have gone with the the CDs. So we have gone within that range and that was actually we were getting a 28:23 28 minutes, 23 seconds better rate during those days. uh you know otherwise actually if you see we have mobbed up most of our requirement 28:30 28 minutes, 30 seconds during the January February onwards not much in the March and there we could get otherwise March was really heated up 28:37 28 minutes, 37 seconds market if you say deposit rate or CD rate so that is why we are very cautious about the name about the profitability 28:46 28 minutes, 46 seconds and about the quality of the asset and like going forward we would like to maintain our our you know the the the 28:55 28 minutes, 55 seconds around 13 to 14% credit growth and around 10 to 11% of and also one thing when you ask about the we have raised in 29:04 29 minutes, 4 seconds between I am sure you must be aware around 3,000 cr of infra bond in between and that is also it is a part and parcel 29:12 29 minutes, 12 seconds and actually the subscription was very huge but then we were cost conscious so we have not gone beyond a certain 29:19 29 minutes, 19 seconds acceptable range and we have cut off at 3,000 only so probably in the coming here once everything stabilizes what we 29:27 29 minutes, 27 seconds will be finalizing internally going to the board and AGM and other things and then we will be coming up with the entire capital and bond issuance and the 29:36 29 minutes, 36 seconds plan uh with the market. So I think it was like you know growth certainly we like to grow industry plus something 29:45 29 minutes, 45 seconds number one profitability even in last 6 months uh sorry quality you will see that we are continuing the same quality 29:52 29 minutes, 52 seconds of the whether corporate book or a retail book which we have given in our investor presentation on 700 and above 29:59 29 minutes, 59 seconds though the bureau says 680 and above is the prime customer but we have continued with 7 700 and above uh and uh and the 30:09 30 minutes, 9 seconds triple B on above also we have given the figures so we are continuing that we also have around 50 to 60,000 of a book 30:18 30 minutes, 18 seconds pipeline with the us in the large corporate so I think with that we are of sure of going forward but then we would 30:27 30 minutes, 27 seconds not be compromising on the quality and also on the profitability got it sir so any margin outlook you 30:34 30 minutes, 34 seconds would have for Q1 and for the full Yeah. See um now uh we have seen the 30:42 30 minutes, 42 seconds last MPC also and the stance has been continued in the in the same levels. Now 30:50 30 minutes, 50 seconds keeping in view the macroeconomic scenario and and the stance which has taken if we continue like this so last I 30:57 30 minutes, 57 seconds think December midway somewhere uh this 0.25 cut was there. So which has if you 31:05 31 minutes, 5 seconds see has not been uh reflecting in our figures though around 53 58% is based on 31:12 31 minutes, 12 seconds the table and the report rate benchmark but even then if you see the mean uh uh 31:20 31 minutes, 20 seconds it has been quarter to quarter I'm saying it has been from 2.76 to 64 only 12 basis point not the entire so I think 31:29 31 minutes, 29 seconds uh there uh from here keeping in view the same We expect that we we will be moving positive from here and we'll be defending at this point of level. 31:42 31 minutes, 42 seconds Okay. So you will be able to maintain margins at 2.64. Yeah. We would like to even better it. 31:52 31 minutes, 52 seconds Okay. And that would be driven by sir. 31:58 31 minutes, 58 seconds uh see uh if you see very clearly that uh in the last quarter also we kasa is increased from 32.51% 32:07 32 minutes, 7 seconds which was our uh kasa percentage in the month of September and uh which have increased to 35.21 32:17 32 minutes, 17 seconds as of March. So certainly when you shift bul deposits to the kasa and you shift 32:23 32 minutes, 23 seconds your bul deposit to retail term deposit and you can see the growth in both the factors both the parameters. So 32:31 32 minutes, 31 seconds certainly it will help you to build build on the on the positive side on the name. And then not only this but there 32:39 32 minutes, 39 seconds are other factors also you know when you better talk negotiate discuss and you make a relationship management the quality of asset you write. So those 32:49 32 minutes, 49 seconds things also help you and what we have under it and the quality is there but certainly the the the the rate and other 32:56 32 minutes, 56 seconds things which we were charging I think uh that is also helped us. So going forward we will be banking upon this and the 33:04 33 minutes, 4 seconds deployments of funds in most most effective way. I think that is the main thing which you would like to tell. Got 33:12 33 minutes, 12 seconds it sir. That's very useful. And also if you could explain the increase in MSME slippage in the fourth quarter and if 33:19 33 minutes, 19 seconds that's just a one-off and nothing uh and you know how it will pan out in the next few quarters. 33:27 33 minutes, 27 seconds So I think if MSME you see the the almost it is sort of a flat only I think from 2 4 to 4 to something levels I 33:37 33 minutes, 37 seconds think some 10 15 bits only. So it is almost flat but then uh there were like 33:44 33 minutes, 44 seconds you know the few cases only which has impact and otherwise up till now whether it is a west Asia or in general our book 33:51 33 minutes, 51 seconds we have not seen any much of the impact on on the our book and quality. So going 33:58 33 minutes, 58 seconds forward we we actually we would like to reduce uh you know with the recoveries 34:05 34 minutes, 5 seconds which are already NPA in either of the these four sectors sectoral which you have asked and uh that is why we have 34:12 34 minutes, 12 seconds built a very team even now centralized that even below 1 cr sort of in portfolio we'll be monitoring from the 34:20 34 minutes, 20 seconds central office level. So I think uh the the core recovery I would talk about uh we will be trying to improve it much ahead much further from here onwards. 34:34 34 minutes, 34 seconds Okay sir. Thank you very much. All the very best. 34:40 34 minutes, 40 seconds Thank you. A reminder to all the participants please restrict yourself to two questions. Next question comes from the line of chair Mudra with ICA securities. Please go ahead. 34:52 34 minutes, 52 seconds Hi, good afternoon sir and thanks for the opportunity. Uh sir my question is also broadly similar. Uh I heard you that you said said that you know we'll 35:01 35 minutes, 1 second focus more on growth along with quality and profitability. 35:05 35 minutes, 5 seconds The profitability focus is clear. I mean we've defended elevated ROA. So that is uh well appreciated. But sir what I 35:12 35 minutes, 12 seconds wanted to know is when you assume charge um Union Bank was one of the few banks which was uh you know not too much 35:20 35 minutes, 20 seconds concerned on the loan growth but they were depend they were defending name or consolidating liability franchise and 35:27 35 minutes, 27 seconds hence NI was growth was very minuscule because you were not growing as much also then you put a shift in the loan 35:36 35 minutes, 36 seconds growth trajectory but still the NI growth is you know similar you Third quarter was a good quarter in the 35:43 35 minutes, 43 seconds sense that NI increased 56% QQ but this quarter again while the growth has been 6% but NI growth has been uh flat. So is 35:53 35 minutes, 53 seconds there any uh thoughtout strategy or this is just market forcedriven that you will keep going on the loan growth on quality 36:01 36 minutes, 1 second and the NI outcomes will be dependent on the on the on the market competitiveness or you have some visibility on the NI 36:10 36 minutes, 10 seconds growth also sir. Thank you. That is the first question. 36:13 36 minutes, 13 seconds Yeah, actually we would like to improve what has happened. No, around 25 basis point there was a uh there was a cut in 36:22 36 minutes, 22 seconds the I think in the midway of the December which has conveyed to conveyed along the entire uh benchmark rate link 36:30 36 minutes, 30 seconds loans. So that is what you have seen a bit dip on the on from 2.76 to 664 on a 36:39 36 minutes, 39 seconds quarterto quarter basis and that is where you can you are seeing flat but then we are doing two three things one 36:47 36 minutes, 47 seconds is the we work upon the average advances and average figures on both asset and liability side and that's the reason we 36:55 36 minutes, 55 seconds are inching towards that it has to be uh better than the earlier ones. So I think there we are uh thinking that how to 37:04 37 minutes, 4 seconds build the the NNI growth also and also to keep the quality and as well as the profitability intact. So it is not like 37:13 37 minutes, 13 seconds you know that we are uh maybe writing underwriting maybe good quality but maybe underwriting underwriting a very 37:21 37 minutes, 21 seconds uh you know no margin loans or maybe the second one if I would say that we are underwriting a bit lesser one and then 37:30 37 minutes, 30 seconds charging more no that's why I said that growth yes that is the first key thing but at the same time profitability and 37:38 37 minutes, 38 seconds and the quality We would like to maintain and grow in this space but then going forward we 37:46 37 minutes, 46 seconds would like to have because as of now everything is settled like till you know we have a further scenario on inflation 37:53 37 minutes, 53 seconds and further scenario on rate cut and other things. So from here again you would like to defend and move it better that you will be seeing further quarters. 38:02 38 minutes, 2 seconds Okay. Sure. And sir you have given a decent disclosure on the bulk deposit right. So on in the December quarter or 38:11 38 minutes, 11 seconds in the March quarter there was a lot of there was sharp spike in the bulk deposit rates. So could you quantify sir 38:19 38 minutes, 19 seconds what was your blended bulk deposit rate a ballpark number will also do and has that started to come off in a significant way? 38:30 38 minutes, 30 seconds Yeah, see if you see the you know like you know when I when we touched upon the last quarter so then I said that we have 38:38 38 minutes, 38 seconds shrunk by I think I told around 15,000 K or so and now you see it is 25,000 K. So what happens now that you start trying 38:47 38 minutes, 47 seconds to trying to uh reallocate the portfolio. So it is shifting from one to another and in between the portfolio 38:55 38 minutes, 55 seconds also you try to build in from low to better yielding portfolio like IBBC which we have shared off and other 39:02 39 minutes, 2 seconds things. So what we did that that certainly when you are having a good growth in the in the in the advances 39:11 39 minutes, 11 seconds side so certainly you need to raise deposit. So we raised in between 3,000 cr in mold and the other things which I shared with you along with that we 39:20 39 minutes, 20 seconds needed deposit so that you know we are comfortable range a good range uh on the on the LCR and NSF NCD ratio. So that 39:30 39 minutes, 30 seconds was the key thing in mind and that is why most of the deposit we raised during the January itself and uh so that we 39:37 39 minutes, 37 seconds knew that probably going forward in the month of March probably nobody was aware that how it will behave market will 39:45 39 minutes, 45 seconds behave west Asia crisis how it will deepen and not deepen and the other issue but then you can tell you can tell 39:52 39 minutes, 52 seconds the blended rate So on a bulk side uh the blended rate 40:01 40 minutes, 1 second for the quarter was uh little less than seven around 690 or so. So around 7 we can say okay and that has come down significantly sir as we speaks. 40:16 40 minutes, 16 seconds So uh it it's all depend upon the market currently the April month there are not 40:23 40 minutes, 23 seconds lot of activities happening in the market on the CD front as such. So current level a little uh lower than the March uh that is there. 40:35 40 minutes, 35 seconds Okay. So sir the reason why I asking was this if I tally say a bulk deposit rate on an average at 690 our yield on 40:44 40 minutes, 44 seconds advances is 7.98 which is the total the corporate would be even lesser right. So 40:51 40 minutes, 51 seconds does it make sense to to to do this corporate lending when we have to raise bulk at 690 and maybe lend at 750 720 41:01 41 minutes, 1 second 730 I don't know which whatever the lower than 7.98 number because that uh that that increases absolute amount of 41:09 41 minutes, 9 seconds NI but depresses the margin so that is the question yeah I think I would give you a very good you know the scenario not scenario 41:17 41 minutes, 17 seconds the actual scenario see you are thinking that entire which is raised at 6.90. 41:23 41 minutes, 23 seconds Since you asked what is your blended rate on the bulk deposit you asked only the bulk deposit so we have told only on the bulk deposit not the entire now 41:32 41 minutes, 32 seconds there is a kasa and kasa and return term deposit increase is around uh huge I think more than 1 lakh 10,000 cr and 41:41 41 minutes, 41 seconds then if you see the the blended uh cost to me on that must be around 4.7 levels 41:48 41 minutes, 48 seconds so this is I'm saying incremental I'm not saying it is a total now there is a total huge portfolio. So my my CASA itself is stands around 35.21. 42:00 42 minutes Now if you add retail retail term deposit how much percentage basis of the total deposit 42:07 42 minutes, 7 seconds plus 79% 79%. So my RGD and CA is around 79%. So certainly I save the cost there. But to 42:17 42 minutes, 17 seconds maintain the growth and maintain everything it has to be blended with the with the fixed deposit and uh maybe 42:24 42 minutes, 24 seconds sometimes in that there will be different scenarios. There may be between 3 to 10 cr because retail term deposit we say only below RBI guidelines 42:33 42 minutes, 33 seconds of below 3 cr but then 10 to 50. Now there will be various deposits uh JG 42:40 42 minutes, 40 seconds where you know which are LC margin BG margin and all those for 3 months 9 months 10 months period 1 year period 42:48 42 minutes, 48 seconds which may be at 550 and around 6%. So I think uh the how you correlate to the 42:54 42 minutes, 54 seconds mean is on the total portfolio and that is what I just wanted to put forward that uh this particular quarter which we 43:03 43 minutes, 3 seconds took from 1st of January to this this is somewhere coming we blended it but the the the the 43:11 43 minutes, 11 seconds deposit which we have shared off around 70,000 then again it was a different rate but the March particular piece 43:19 43 minutes, 19 seconds which we have the maturity was around 7.70 levels as a blended rate. 43:26 43 minutes, 26 seconds Right. Understood, sir. And if you can share sir the few data points uh uh if you can help with the uh uh loan mix by 43:35 43 minutes, 35 seconds benchmark, EBLR, MLR, T bill and AFS reserves. Uh and how much is the change uh versus last quarter? 43:44 43 minutes, 44 seconds Which reserves? AFS reserves. 43:50 43 minutes, 50 seconds So I think 58% 44:02 44 minutes, 2 seconds uh that you can tell right now 54% 54% 44:10 44 minutes, 10 seconds is my external benchmark link portfolio sir and TL and MCLR is how much sir 36% 44:21 44 minutes, 21 seconds Okay. AFS reserves. AFS reserves movement. AFS. 44:29 44 minutes, 29 seconds What is AFS reserve? 44:33 44 minutes, 33 seconds If uh can you clarify AFS is what exactly you want? 44:38 44 minutes, 38 seconds Sir, uh under this new investment classification, the MTM hit on AFS has to be uh Got it. Got it. 44:48 44 minutes, 48 seconds Yeah, Mr. Kah will hear. Yes. 44:50 44 minutes, 50 seconds So, uh from uh December it was around 800 or so increase in AFS result in this. 45:01 45 minutes, 1 second So, you have seen an accretion sir is it? 45:05 45 minutes, 5 seconds No. No. It's a uh it's a negative figure sir. Right. 45:11 45 minutes, 11 seconds Sir I have few questions if you ask. 45:15 45 minutes, 15 seconds Yeah. Yeah. Understood. It is the reduction. It is reduction of 800 crores. Correct? Yeah. 45:21 45 minutes, 21 seconds And how much is the outstanding amount now sir? Is in the balance. 45:29 45 minutes, 29 seconds Outstanding isative8. 45:35 45 minutes, 35 seconds Okay. Sir I have few question. If you want I can ask them now or I can come back in the 45:45 45 minutes, 45 seconds you can send us I wanted to check this LCR new 45:52 45 minutes, 52 seconds guidelines uh have you calculated the new LCR under the new guidelines as in what would be your LCR let's say uh 1 45:59 45 minutes, 59 seconds April or you know what is your sense of the we have we have calculated and uh The 46:07 46 minutes, 7 seconds negative income impact is around 14,000 K and positive impact is around 21,000 K. So 7,000 K is a positive impact. 46:18 46 minutes, 18 seconds Okay, this would mean how much sir Mr. 46:20 46 minutes, 20 seconds Monra sorry for interrupting. Uh please reach on the queue for more questions. 46:27 46 minutes, 27 seconds Thank you. Next question comes from the line of Pam Subramanyan with Invest. Please go ahead. 46:34 46 minutes, 34 seconds Yeah. Hi sir. Thanks for taking my question. Uh firstly uh I wanted to ask just to clarify once again on NIM is 46:40 46 minutes, 40 seconds there any uh oneoff or seasonality or any such thing in the margin quarter on quarter or you are just saying it is 46:48 46 minutes, 48 seconds mainly the mix and the uh the December rate cut. 46:54 46 minutes, 54 seconds It is basically December rate cutting is much uh lesser than the rate cut. 47:05 47 minutes, 5 seconds Okay. Okay. So, one thing I can see is the interest on Reserve Bank of India balances that is down. That is mainly the decline in LCR is it? Um 47:14 47 minutes, 14 seconds just clarifying on that number. So, that number is down 500 plus cr on a Y basis. 47:21 47 minutes, 21 seconds Yeah. Interesting. But I think I am not very sure on that sir. Okay, I'll take that offline. 47:28 47 minutes, 28 seconds And there is no impact of the And there is no impact of the RBI NOP circular uh at all for you either on interest or other. 47:36 47 minutes, 36 seconds Yeah, actually we had kept ourself very cautious during this u disruptive time. 47:44 47 minutes, 44 seconds So we were not taking long range calls. 47:48 47 minutes, 48 seconds So our uh exposure was only uh 30 million. So we were much below 100 million what that circular was. 47:58 47 minutes, 58 seconds Okay. So zero impact on zero impact on that. 48:02 48 minutes, 2 seconds Perfect. Okay. Uh sir and then on the PSLC um and also your credit score since you I'm just loving two questions together. 48:11 48 minutes, 11 seconds Uh so on the PSLC uh see uh this year has been soft PSLC fee income but you used to acrew close to,000 cr right on 48:20 48 minutes, 20 seconds an annualized basis. Should we get back to that run next year? 48:25 48 minutes, 25 seconds So see last time actually we had a complete period of that that is why the amount is also 800 plus. This time we 48:34 48 minutes, 34 seconds started PSLC in the month of Q3. So we could book I think 120 80 cr something 48:42 48 minutes, 42 seconds like that and uh this then this quarter it was very hardly any period left for 31st of March. So we already booked this time 48:51 48 minutes, 51 seconds also but then uh the the the total amount was uh less. So that is the reason because number of days that 48:59 48 minutes, 59 seconds functionality is there. So that's the reason but then we would like to continue on that. 49:05 49 minutes, 5 seconds So we should be able to do 1,000 cr plus which was your number say last year. 49:10 49 minutes, 10 seconds Right now uh right now it is not we will assess it because um you know the entire 49:17 49 minutes, 17 seconds portfolio has to be seen on SMS and other things and then we will take a call but yes we would like to deploy in 49:24 49 minutes, 24 seconds this year. So okay sir perfect. And lastly on credit cost I think uh very good numbers there. 49:31 49 minutes, 31 seconds Uh so 23 basis points for the year. Do you think it is sustainable? Right. Um so right now coming to the credit cost 49:40 49 minutes, 40 seconds uh we are not seeing anything very adverse on because of disruptive situations. But if you see the credit 49:47 49 minutes, 47 seconds quality uh the SMA is uh same level at 3,800 levels SMA 1 and two of the entire 49:54 49 minutes, 54 seconds portfolio and also if you see 25 K and above almost more than 95% is the 50:02 50 minutes, 2 seconds tripleB and above and if you see the the prime customer which is taken 680 but we taken 700 M of civil scope uh trans 50:11 50 minutes, 11 seconds union and other bureau score which is around 99%. So I think the the quality wise like you know this uh score matrix 50:20 50 minutes, 20 seconds and the other way it is uh the quality is in front of you. So we are not seeing anything you know go right but then we 50:29 50 minutes, 29 seconds always say for comfortably because we don't go aggressive. It is better to better to you know get the better 50:39 50 minutes, 39 seconds figures but then we say around 1% we keep as a as a in general guidance for the year. 50:47 50 minutes, 47 seconds Okay. So and the 700 cr has nothing to do with any pressure you are seeing that you have made this 50:54 50 minutes, 54 seconds it is primarily for ECL transition. If if yeah maybe see always you know the 51:01 51 minutes, 1 second regulator and everybody says that in good times you if you have money to you keep aside and save it. So simply we 51:09 51 minutes, 9 seconds have kept aside not in profit not in capital and see it may not be used for years 51:17 51 minutes, 17 seconds together. Absolutely. So but then it is kept as a question uh it is kept because we do have because other than that also 51:25 51 minutes, 25 seconds our net profit is in comfortable range and we are giving dividend of 5% uh that is 5 rupees per share 50 then I think 51:34 51 minutes, 34 seconds that is the reason we have kept it aside uh for a better you know strengthening the balance sheet of 51:42 51 minutes, 42 seconds perfect sir thank you so much and congrats on the quarter thank you thank Thank you. A reminder to all the 51:50 51 minutes, 50 seconds participants, please restrict yourself to two questions. Next question comes on the line of Jen Karot with Access Capital. Please go ahead. 51:58 51 minutes, 58 seconds Uh thank you for the opportunity, sir. 52:00 52 minutes Just one question. What level of LCR are you comfortable with? If it falls below 110, are you okay to operate at that level? 52:08 52 minutes, 8 seconds See, actually uh what happens? You know like uh the the reserve bank guidelines is of 100 and then board fixed 52:17 52 minutes, 17 seconds guidelines are there for each and every bank. For us also there is a board fixed trigger board fixed first is trigger and 52:24 52 minutes, 24 seconds then the the the re the breach. So but as a see there are like you know two 52:31 52 minutes, 31 seconds things which are uh we we would not like to breach these two figures. So we are 52:37 52 minutes, 37 seconds above that 7 8% level and we actually on a rolling basis we calculate for next 52:45 52 minutes, 45 seconds one or two months and then we take the deposits and raise the raise the resources accordingly. 52:52 52 minutes, 52 seconds So how much would the 7,000 K add to the Yeah. How much 52:59 52 minutes, 59 seconds 7,000 K add to LCR? I think 2 3% how much 3% 2,200 cr. So around 3% it works out uh for an LCR for our bank. 53:11 53 minutes, 11 seconds So which means that the pace which you're consuming uh if you're not able to match deposit growth uh in a quarter or two you'll have to slow down on loan growth. 53:21 53 minutes, 21 seconds No, there is no question of uh not uh not matching the deposit growth. See what happens. Now, suppose if you have a 53:29 53 minutes, 29 seconds money in your pocket, why you will go to ATM and withdraw further? You will first use what you have in your wallet and 53:36 53 minutes, 36 seconds what you have in in in your pocket. So the same thing we did that is what actually since beginning we are sharing 53:44 53 minutes, 44 seconds with all the all the press and this that see I will give you only four figures my 53:51 53 minutes, 51 seconds the March 25 CD ratio was around 77 now we are at 80.5 or some level so it 53:59 53 minutes, 59 seconds mean 3.5 up number one and number two is that uh that our LCR requirement was a 54:07 54 minutes, 7 seconds bit more earlier because we have actually seen each of the items and then we could move from LCR the the items 54:16 54 minutes, 16 seconds like you know financial institution one of factor was straight away 100%. So uh that we have moved from financial to 54:24 54 minutes, 24 seconds non-financial even if we have taken the bulk deposit. So that has reduced our uh LCR that has moved to loan side. Now the 54:33 54 minutes, 33 seconds third comes the treasury we had now you can see in our presentation also nonSLR portfolios reduced. So certainly we have 54:42 54 minutes, 42 seconds moved on a better opportunity on the loan growth. This is the third point. 54:46 54 minutes, 46 seconds Fourth point is then again you have a infrastructure bond and other avenues we have raised 3,000 cr then again we have 54:53 54 minutes, 53 seconds a revenues of refinance wherever possible within our portfolio so the thing is that suppose now with this 2.67 55:02 55 minutes, 2 seconds 67 growth there is no breach in NCR there is no breach in NSCR and then my CD ratio is very good now 55:10 55 minutes, 10 seconds suppose uh listening to all if we increase by 5% basis point and we take 50,000 cr where it will go it will 55:19 55 minutes, 19 seconds straight away impact my my CD ratio to 74% 75%. 55:24 55 minutes, 24 seconds So the question is very very simple that uh when need be take it when need not be. So I think no need to but now again 55:34 55 minutes, 34 seconds you see in the third quarter we have not taken we have shed up much more but in fourth quarter we needed because of the 55:41 55 minutes, 41 seconds growth happening in Kit side though we have uh taken 3,000 cr infra because the growth was good which is evident in our 55:49 55 minutes, 49 seconds figures in the Q4. So then we have generated so actually there are three things one is the one is the offer the 55:57 55 minutes, 57 seconds rate so people have offered even 8% uh 7.90 and above also during the Q4 so 56:05 56 minutes, 5 seconds they have got it but then we tried to take the deposit during January February itself and then we we continued because 56:15 56 minutes, 15 seconds we were very confident on the retail term deposit growth and the CASA growth and we could achieve So rather than 56:22 56 minutes, 22 seconds going to bulk deposit we could achieve this side of the story. So now going forward this cannot be every time. So 56:29 56 minutes, 29 seconds certainly you will see the growth in the total deposit. It may come from karta it may come from retail term deposit and it 56:36 56 minutes, 36 seconds may come from debug deposit. So I think in the going forward see every time you cannot uh manage the book and allocation 56:45 56 minutes, 45 seconds and other things. So the thing is that at least first are you aware of what from where it is raised and where it is deployed. So now with this uh that is 56:54 56 minutes, 54 seconds why the last March 26 you can see we have raised the deposit we have raised the CDs so we have raised the resources. 57:05 57 minutes, 5 seconds Thank you sir and just just to reconfirm you to 8% above your comfort level on LCR. Yes. Yes. 57:14 57 minutes, 14 seconds very much s and all the way. Thank you. 57:19 57 minutes, 19 seconds Thank you. Next question comes on the line of Aselleshon with Codex Securities. Please go ahead. 57:25 57 minutes, 25 seconds Hi team good afternoon. Uh sir firstly on this prudent provisions which you have created can you just highlight that 57:32 57 minutes, 32 seconds after the creation of these prudent provisions where are you on the ECL shortfall number now? Last quarter you had shared a number of about 42 4200 crores roughly that is one. 57:44 57 minutes, 44 seconds So we are on the same 4,300 K and uh that is that last time also we said we 57:52 57 minutes, 52 seconds will be comfortable on that and whatsoever guidelines come at appropriate time we will decide in the board and according we we will go ahead 58:00 58 minutes with the with the approach. But then since this figure is with us, this amount was with us, we thought of 58:08 58 minutes, 8 seconds keeping aside maybe ECM, maybe maybe any other for circumstances 58:14 58 minutes, 14 seconds where as per the regulatory guidelines and as per the board decision, we would like to then use it otherwise we would 58:22 58 minutes, 22 seconds like to keep it as a strengthening of the balance sheet. 58:27 58 minutes, 27 seconds Understood sir. After the creation of this 700 cr buffer, the ECL shortfall number should decline ideally, right? 58:35 58 minutes, 35 seconds It will not. 58:37 58 minutes, 37 seconds It will not decline because this is a separate. No. So, we have made a very clear it is not impacting your tire one 58:43 58 minutes, 43 seconds or T or capital or any profit. It is just simply kept. So, so it is uh like 58:50 58 minutes, 50 seconds you know we have just kept it uh for uh any any eventually any circumstances like that. Understood sir just one 58:58 58 minutes, 58 seconds follow that what is the total outstanding buffer of standard asset provision that you are 59:05 59 minutes, 5 seconds carrying now you have it 59:12 59 minutes, 12 seconds total total standard asset provision is close to 3,000 uh second question last my Yeah. 59:29 59 minutes, 29 seconds Yeah. Please go ahead. Please go ahead. 59:33 59 minutes, 33 seconds Yeah. So, second one on the um uh sorry to harp on the loan growth and margin side. If I look at the credit rating mix 59:41 59 minutes, 41 seconds of your corporate advances which you have shared on slide number eight, it seems like the share of A and above advances has increased by 2%. PQ 59:51 59 minutes, 51 seconds um so it it's clear that you have not only grown the corporate advances you also grown in you know better quality corporate advances uh however there seem 1:00:00 1 hour this seems to be different from the stance which you had uh conveyed last time that uh you are shedding lower 1:00:07 1 hour, 7 seconds yielding advances uh how should we understand this change this shift in stance what caused this 1:00:14 1 hour, 14 seconds I could not get it see no yielding means low yielding means uh uh you know we had 1:00:23 1 hour, 23 seconds IDPC of around 35,000 cr which is not there so that is point number one and then we have as know in the when you 1:00:32 1 hour, 32 seconds sanction you have STLs you have long-term loans you have short-term loans then sometimes like you know you 1:00:39 1 hour, 39 seconds will give for 7 days 10 days and it will range amount 550 to depending upon a corporate and to 1:00:47 1 hour, 47 seconds 6106 6.25 there we have reduced these two we have reduced so we have now tried 1:00:54 1 hour, 54 seconds to convert short-term into long-terms and other things and from that we have to build in so that we become more profitable but at the same time not to 1:01:04 1 hour, 1 minute, 4 seconds compromise on the quality okay uh to just ask the same question differently would you look to shed some 1:01:13 1 hour, 1 minute, 13 seconds more of your lower yielding advances going forward it is a regular phenomena and we are 1:01:20 1 hour, 1 minute, 20 seconds doing day in day out and wherever we are uh we are in a position to get the 1:01:26 1 hour, 1 minute, 26 seconds opportunity. So that is the reason that actually we have sanctioned more disbbured more but in the portfolio since challenging is happening you will 1:01:35 1 hour, 1 minute, 35 seconds not see that much big growth there but then the things are on good and certainly it is a normal every bank will do wherever possible. 1:01:47 1 hour, 1 minute, 47 seconds Understood sir and just one last clarification uh do you deduct the dividend payout from the net worth in the March quarter itself? 1:01:57 1 hour, 1 minute, 57 seconds Yes, the remaining portion is only taken in network. 1:02:04 1 hour, 2 minutes, 4 seconds Sorry, come come again sir, I could not hear you. 1:02:08 1 hour, 2 minutes, 8 seconds So the the amount of dividend proposed was deducted around 3,800 you have deducted and remaining amount is only taken into my uh capital portion. 1:02:18 1 hour, 2 minutes, 18 seconds Understood sir. Thank you very much. 1:02:20 1 hour, 2 minutes, 20 seconds Yeah, those were all the questions I had. 1:02:24 1 hour, 2 minutes, 24 seconds Thank you. Next question comes from the line of Park and Gutka with 361 Capital. Please go ahead. 1:02:32 1 hour, 2 minutes, 32 seconds Hi sir, thanks a lot for the opportunity. Uh, can you just let me know what is the uh uh what is the 1:02:39 1 hour, 2 minutes, 39 seconds portion of the MSME book which is covered covered under CGTMC. 1:02:50 1 hour, 2 minutes, 50 seconds We'll we'll we'll uh uh come back to you on this sir. 1:02:54 1 hour, 2 minutes, 54 seconds Okay. Okay sir. And my second question is sir uh uh while uh you know large part of the growth within MSM would have 1:03:01 1 hour, 3 minutes, 1 second happened uh you know uh in in uh you know second half of Feb and March. What were the conversations you know with the 1:03:10 1 hour, 3 minutes, 10 seconds borrowers because you know at that time the war had already started. So what was you know what were the conversations in terms of order inflows or cash inflows 1:03:18 1 hour, 3 minutes, 18 seconds at that point in time? Yes, that's my question. 1:03:36 1 hour, 3 minutes, 36 seconds See there is actually see always there will be there there will be some people who were asking for some extension of uh 1:03:45 1 hour, 3 minutes, 45 seconds bills which has been sent because everybody was only the war was only developing actually. So everybody was also waiting for that. So presently the 1:03:54 1 hour, 3 minutes, 54 seconds the discussions are going on where wherever it is there they're also handholding them and we are trying to 1:04:00 1 hour, 4 minutes support those MSMES with higher um period for bills those things we are doing it. 1:04:09 1 hour, 4 minutes, 9 seconds Okay. Okay sir. And just my last question, have you changed any of your risk filters in March or for for the 1:04:16 1 hour, 4 minutes, 16 seconds MSME? Uh uh which one? 1:04:21 1 hour, 4 minutes, 21 seconds Have you changed any of your no we Okay. Okay sir. Thanks. Thanks a lot. 1:04:32 1 hour, 4 minutes, 32 seconds Thank you. We'll take the last question that is from the line of Tiki Doshi with Whit Stone Financial Advisor Private Limited. Please go ahead. 1:04:41 1 hour, 4 minutes, 41 seconds Uh yeah, thanks for the opportunity. 1:04:43 1 hour, 4 minutes, 43 seconds Just couple of things. Firstly, uh uh Mr. Zoshi, uh can you speak a little louder? We cannot hear you. Uh yeah, is it better now? 1:04:52 1 hour, 4 minutes, 52 seconds Yes, please go ahead. 1:04:53 1 hour, 4 minutes, 53 seconds Uh yeah. So firstly, uh what is our return of pool now? Uh uh and uh if we 1:05:00 1 hour, 5 minutes see this year uh the recovery from return of account was 4,000 K. 1:05:05 1 hour, 5 minutes, 5 seconds What kind of recovery uh will this number sustain next year as well? 1:05:13 1 hour, 5 minutes, 13 seconds return off pool if you're looking at it is around 71,000 crores actually and most of them around 45 to 46,000 are 1:05:21 1 hour, 5 minutes, 21 seconds under in the NCT it is there pending um as regards to recovery in uh return of accounts we are 1:05:31 1 hour, 5 minutes, 31 seconds we are trying it whatever it is available we are just seeing that and most probably the same trend will be continuing in the current year so 1:05:38 1 hour, 5 minutes, 38 seconds okay so whatever we have done this year is is sustainable Okay. Okay. And my last thing uh uh one 1:05:46 1 hour, 5 minutes, 46 seconds last thing is uh so whatever you have uh you know communicated for throughout the call is it fair to assume that uh you 1:05:54 1 hour, 5 minutes, 54 seconds know kind of the name has bottomed out in this quarter and with 13 14% loan book growth what we are targeting uh for 1:06:02 1 hour, 6 minutes, 2 seconds next year uh the NI growth will be similar uh to the loan book growth 1:06:14 1 hour, 6 minutes, 14 seconds Definitely our endeavor is the same. 1:06:17 1 hour, 6 minutes, 17 seconds Okay. So we can grow our NI as well uh in line with the advances growth because uh this quarter it was lagging. 1:06:28 1 hour, 6 minutes, 28 seconds Yes. 1:06:28 1 hour, 6 minutes, 28 seconds Yeah. it was lagging because um uh because 1:06:38 1 hour, 6 minutes, 38 seconds yeah so considering that uh as of now the rate uh you know rate cycle is let's say a status quo uh our NI growth should 1:06:46 1 hour, 6 minutes, 46 seconds be similar to the advances growth yes okay that's it for myself thank you 1:06:56 1 hour, 6 minutes, 56 seconds thank you ladies and gentlemen That was the last question for today. We have reached the end of question and answer session. I now run the conference over to the management for closing comments. 1:07:08 1 hour, 7 minutes, 8 seconds So thanks to all the all the enlisted participants on this uh call and uh certainly we hear 1:07:17 1 hour, 7 minutes, 17 seconds to you a lot. We work upon your questions and even if you can see what sort of things we are doing depending 1:07:24 1 hour, 7 minutes, 24 seconds upon the queries and wherever you have a concern then we try to try to inform you 1:07:31 1 hour, 7 minutes, 31 seconds what we have done and how. So that's the reason that you know we think of keep on improving 1:07:38 1 hour, 7 minutes, 38 seconds day by day week by week on month. So that is the totally endeavor and and thanks to all of you for participating 1:07:46 1 hour, 7 minutes, 46 seconds in this enlisted call and uh yes going forward we would like to to better it uh like we said in the 1:07:56 1 hour, 7 minutes, 56 seconds earlier quarters and we continued so so and going forward also we'll continue to to make it better. Thank you. 1:08:06 1 hour, 8 minutes, 6 seconds Thank you on behalf of women bank of India that concludes this conference. 1:08:10 1 hour, 8 minutes, 10 seconds Thank you for joining us. You may now disconnect your legs.