Thank you, sir. Good afternoon, ladies and gentlemen.

I, Ajay Bansal, Head of Investor Relations, welcome you all for Union Bank of India earnings concall for the period ended December 31st, 2025. The structure of concall shall include a brief opening statement by respected MD and CEO sir, and then the floor will be open for interaction.

Before getting into the concall, I will read out the usual disclaimer statement. I would like to submit that certain statements that may be discussed during the investor interaction may be forward-looking statements based on current expectations.

These statements involve a number of risks, uncertainties, and other factors that cause the actual results to differ from the statement. Investors are therefore requested to check this information independently before making any investment or other decision.

With this, I now request our respected MD and CEO sir for his opening remarks. Thank you, and over to you, sir.

Thank you so much, Mr. Ajay Bansal ji.

Good afternoon, everyone. With great pleasure, I welcome all of you to Union Bank of India, your bank, financial results for quarter ended 31st of December 2025.

Actually, we are meeting first time in this calendar year and the third time in the financial year. On behalf of Union Bank family, I wish you and your family a very, very Happy New Year.

Also, today being a good day, it is a Sankranti, it is Lohri, and Pongal. All are coming since yesterday to next few days, which is a festive season across India.

From behalf of entire Union Bank family, I wish you and your families happy festivities. Before we go to the figures, let me just set the tone, the context.

The first is the economy of the country. Like last year, it was 6.5% to 6.7% band and other things, and now we see that expert around 7.4% in this year.

I think we are in the Goldilocks phase, which is a high growth combined with low inflation. If you take the few initiatives, various reforms are taken by various regulators, various reforms are built in by the government.

A few of that, related to the government, the GST, which came as a really enabler for various industries, various participants. The government capex, which is supplementing to the private capex as well.

As far as banking is concerned, our regulator, since last one year, I think 126 basis point, 125 basis point, there is a repo cut. Then CRR almost 100 point, and then liquidity easing through OMO, FX, and everything has happened.

I think rationalisation of various circulars, so, I think these are giving the positive environment, conducive to the growth, and the same is happening. Coming to your bank, Union Bank of India, just as a part of initial brief, in the EASE agenda, which run by IBA and monitored, supervised by DFS, it is across all public sector banks, majorly with an objective of creating a good ecosystem, facilitating to the growth, to the digital, and to the customer service.

EASE stand 2.0, and recently too few days back, we had IBA Tech Award, and our bank has received four technology awards, also the Best Fintech Award. I think with this brief, we had a board today and our audit committee and the board has adopted the financial statements.

The same in the form of a presentation, it has been uploaded to stock exchanges as per the regulations. You will see that as far as the business figures are, they are mostly generally what the questions are asked, we have tried to embed within the presentation itself.

Meanwhile, the important point is related to the staff members. That is why you will see one or two slides pertaining to our staff.

Because I am from this bank, and when I came back, I always say, the Union Bank staff, Unionites, are the best. Everybody will say, but then, yes, it is a perfect sentence for me.

That also gives a colour, how many engineers. Almost, I think out of 74,000, 32,000 approximately are like FRM, engineers, CAs, and other streams.

That is also a good composition. It is about training and other things.

Similarly, the bank has started a Project Muskaan, which is also related to ease of doing business, actually. More than 500, we have actually done some bottom-up approach survey.

We have done a lot of groundwork, and within that, we are trying to sort out and streamline the things so that there is a muskaan, and Project Muskaan is nothing, but a very small thing, the muskaan in the face of our staff members and the customers. The purpose and objective of that project is to streamline, smoothen, and at the same time, strengthen risk mitigation across the bank.

Suddenly, when you do all these things, there is a cost cutting for sure. There is a technology as I briefed initially, there is a lot of the technology already in-built in the bank, whether AI sort of thing or whether the robotic process automation or whether even I would say the bank is one of the banks where 2 DC and 2 DR are there, all the four, correct?

I think that is one thing. I think on technology, our ED sahab will also brief whenever you are having any questions.

At the same time, coming to the financial performance, net profit of your bank stood at ₹5,017 crore for this quarter ended December 25. Interest income stood at ₹26,443 crore.

The business growth, certainly here you will see the figure 5.04%, and the gross advances increased by 7.13%, and the total deposit grew by 3.36%. Here, before going further deep in the financials, I would like to just inform you that very carefully, we actually scrutinized, worked upon, thought, and actually brainstormed on each of our portfolio.

In a very nutshell, the four pillars we worked. The first thing is that we already had the fund inside.

Around ₹40,000 crore, ₹38,000 to ₹40,000 crore, we have shed off the bulk deposits, which was at the higher cost. That is point number one on the first pillar.

The second thing is the treasury is contracted by ₹15,000 crore, so that has moved to the credit side. The third thing is that we had an IBPC, which we discussed in the last concall as well.

That is now 20,000 is not there. I think that is become zero.

Then around 10,000, we had some portfolio on a very low yielding, that actually we moved to long-term loans. There again we could gain something.

Now, coming to the point, in the December 24, our NIM was around 2.91%, and though there is a rate cut of 125 basis point since then till 31st of December 25. Then, if you see from 2.91%, we stand at 2.76%.

I think that is where we could shield it, and from September quarter, if you see, there is an increase in the NIM opposite way. I think that is the key point, which justifies that the work which has been done on the four pillars, how it has been worked or impacted upon.

With this, I think the capital ratios are all good, the liquidity ratios are good, we have given in the presentation. The growth in the RAM sector certainly increased by 11.50%, 21.6% growth in retail and 19.

Robust growth is coming into the RAM segment. Even there is a growth, I would say, in the corporate, but it would not be visible because 20 plus 10, ₹30,000 crore we have churned within the portfolio.

Certainly it is a inflow from new proposals, good proposals, and if you see the portfolio, the AAA to A, it is almost I think how much, 95%. I think that is the level of the book which the bank is carrying.

While coming to the stressed side, the GNPA and NNPA both have reduced, both are at comfortable range. Coming to the SMA-2, we are again at the lowest level of ₹4,285 crore above ₹5 crore.

I think this is also gives a good colour that the first time bank has crossed ₹10 lakh crore of advances as a bank. The return on asset is approximately 1 point, not approximately, exactly 1.35%, which is again the highest one.

The ROE is again the highest one. CASA, certainly this point to be noted, 1.40 basis point is increased from quarter to quarter.

I think this is one of the good things which has happened. You can see within the three months, the reduction in the cost of fund and deposit is really very steep.

With this all, certainly the quality of assets is being maintained very well. The SMA is maintained very well.

The PCR is almost more than 95%. We are comfortable.

Cost of credit cost is again too low. Slippage ratio is again low.

Keeping in view on this, we have not actually put our money into the provision, but we have put into the growth. I think this is one of the main points of this working of the entire senior management which are sitting in there in this boardroom, including of our vertical heads, GMs, CGMs, and all.

With this, I hand over to you, Mr. Bansal, and to all our esteemed investors for any query which they have.

We would, along with me, I am accompanied with my Executive Directors, Shri Nitesh Ranjan ji, Shri Rama ji, Shri Sanjay Rudra ji, Shri Amresh ji, along with my all CGMs and vertical heads. You may please start the query.

Thank you, sir, for your opening remarks. Now we can start, sir.

ahead. Hello, congratulations, sir, to you and your team.

Sir, I had a couple of questions. Firstly, if you see your interest income break-brown, then the other interest is high.

It's around ₹205 crore, ₹206 crore, and it's been in the range of around ₹100 crore in the last few quarters. What is the breakdown of this other income?

Other interest income, that's my first question, and then I have one more.

Hi, Mahrukh. We'll come back to you on the exact breakdown, but it also includes our income that we get from the PSLC deposits that we place.

That's a component. We'll give you the exact breakdown, but it includes the RIDF.

If it is recovery, I think. RIDF.

RIDF, yeah. RIDF interest.

Correct.

Sorry, RIDF?

RIDF where we have invested some funds, that interest is being recovered is being done. That is being shown as the other income, actually.

Other interest income, okay. How much is that?

It's around, it's ₹100 crore or what? The exact amount

See, other income consist of some more parameters, which we will send you across in full details. Now, coming to NII, madam, let me brief you, there were two rate cuts in between.

For that our book MCLR is around 38%. The other remaining is the T-bill and the EBLR, that is repo-linked benchmark rate.

I think the work which was done extensively, the NII which we can, because there is a good growth in the RAM sector and the also corporate book, which we actually worked a lot upon that. I think that is why even though there is a good amount of rate cut and it was conveyed further, but then we could have a more sort of a income, even when compared to the.

RIDF is 198. RIDF is 198, actually.

That is the only thing, madam. I think that is also in terms of NII which you asked.

Also, when you sanction it, we still have a around ₹24,000 to ₹26,000 crore of disbursement. Generally you will see that most of the quarter you will not get to use that interest income.

Because it is, once you start sanctioning, then it takes 10 to 15 days, 20 days time for the disbursement. Then something has been sanctioned in October, November, then most of the things in December.

Certainly the, but the continuous and the regular the book which was sanctioned and disbursed, I think that has given a good results. Over to you, madam.

Sir, yes. Sir, my other question is that based on the draft ECL norms, what would be the run-rate impact?

As in, what will be on an ongoing basis the increase in your credit cost if ECL were to be implemented as it is in the draft form?

We have worked upon it, madam, and if you take the total requirement under ECL keeping in view our book and the provisions we are already holding, if we come to the netting position, it is hardly ₹4,200 to ₹4,300 range. It is not more than that required.

Right, that is the transition impact. I'm talking about on a run-rate basis.

Say. Mahrukh, I think even on a run-rate basis, you can see that our credit cost has generally been varying between the 20 to 40 bps mark.

While these are still draft and we've made some certain recommendations in terms of some changes that we want. Let's discuss it once the final guidelines come, because that will actually be the right way to look at it.

We're not expecting too much of a change in terms of our current credit costs versus the expected under ECL.

Even if we see the SMA-2, our is hardly ₹4,285 crore in the entire book. The credit cost, slippage ratio is well, well, well within control level.

Now I am coming to, which is not an SMA. So, 95% of the corporate book is A and above, rated one, to be named, BBB and above.

I think that is the inference which you can draw. The loan book is quite strong enough.

While meanwhile, the bank has implemented various early warning signals and now that fin-techs. There is a software, there is a feet on street, and the entire system is working.

Bank has strengthened the credit collection systems. I think that is a robustness is there, we do not much worried about.

The transition, as you said migration, it's not much right now, but the run is, as you said, let us see how it happens, but then we are on a safer side.

Sure. What would be your SMA-2 below ₹5 crore?

Below ₹5 crore, I think it will be hardly in the range of 24, something like that.

Sorry, how much?

24, 25. 24, 25,000, because generally what happens, no, that when you apply the interest, and many of the companies, it comes very next day, next day in the sense morning itself.

SMA-0 is. Mahrukh, we'll give you the exact number because we don't disclose that in our presentation.

We only disclose above ₹5 crore, we'll come back to you on the below ₹5 crore.

Thank you.

Hi, good afternoon, sir, and congratulations on a good number and revival in loan growth. Sir, my first question is on the loan growth.

You also talked about that there are ongoing mix changes within corporate and some of the lower yielding loan book getting transferred. Amidst all this, how should one look at the loan growth going ahead?

Is this mix change is broadly over and can you sustain this 4% 4% or maybe higher Q-o-Q loan growth, and how soon can you reach industry level loan growth on a Y-o-Y basis?

See, you have actually grabbed it. Around ₹30,000 crore in the corporate itself, which we have churned out.

That is explicitly actually it is visible how it is and what would be the actual growth. Now, it is a very big bank, it is a exercise which we have taken very cautiously.

There will be something going forward in this quarter as well, but the thing is that the way in which we have grown in this quarter, certainly the growth in this last quarter will be more than that. Because when you galvanize the entire machinery and you move into Even right now, in the corporate only I am saying, around ₹24,000 to ₹26,000 crore is the sanction and disbursement pending.

We further have a good pipeline in various stages of sanction. I think this is the start bit.

We expect better than this in this quarter, and yes, the aspiration, the market which is having the growth is certainly is our aspiration. We'll be moving in that line only.

Sure, sir. To conclude what you're saying is that this kind of run-rate growth on a Q-o-Q basis can be sustained and you would be hopeful of achieving industry level growth Y-o-Y basis soon, right?

That is, despite all

this churn. Yes, better than this one we expect in the coming quarter.

Right.

Thank you, sir. Secondly, sir, if you can highlight, was there any provision carved out for gratuity, leave encashment under the new labour code?

Because I believe that was mandatory, right? At least the gratuity part was mandatory.

Have we provided if you can quantify that number?

See, there are two things in the labour code broadly. The one is on the welfare benefit side, certainly what is there in the code and what is given in the banking industry under bipartite is much better.

That is out of question. Now coming to the second one, the leave encashment, gratuity, and other things.

You see, this is bank which are for a long, like we are 107 years old. Now, this impact is more which are younger age banks, because moving from 5 years to 1 year and other things.

Now, up to now they were not in that group, because 5 years was the minimum. In case of the banks like our and other public sector banks, the impact may not be much.

At the same time, as per our calculation, maximum it will be in the range of 10, because some of the code, some of the rules yet to be received. That is what we are waiting even right now.

Because see, as per the bipartite, there is a basic pay and then there is a special pay. There is some even clarification and other things which is under discussion.

Then, maximum, I think as per our calculation, it is coming in the range of ₹10 to ₹15 crore, not much.

Okay. This is what you have done already in this quarter, or this is the only impact, right, ₹10, ₹15 crore, nothing materially

higher? It will not, because gratuity actually we are already doing, no?

That will not make much of a, yes.

Understood. Sir, another thing is on trade relief measure, right?

During the quarter, RBI had given a dispensation for moratorium for exporters. If you can quantify what was the request in rupees crore for our bank?

Actually, till date, we have sanctioned around 78 of the proposals, around ₹500 crore. Within which 61 proposals of ₹216.64 crore are already disbursed.

This was.

Yeah. Actually we already met with various clients in last three months, and there were some specific pockets as well.

We understood the requirement, and as the conducive for the economy and the measures which are taken by the government of India, and all these are very good companies, actually. Various rated also and the good standing.

There are a few more proposals actually are there, but which are in pipeline. This what figure I am giving you is the sanction and disbursed.

Good afternoon. Thank you for giving this opportunity.

Good afternoon, sir, Asheesh sir, and the entire team of the Union Bank. Compliments to you for specially for the net profit going beyond ₹5,000 crore, ₹5,017 crore in this quarter, which is very heartening to note.

The bank has been in the range, which has come, I think, in the fourth quarter of 2025 at around ₹4,985 crore. Crossing ₹5,000 crore and coming to ₹5,017 is really a commendable job as far as the profitability of the bank is concerned.

Having said that, sir, I echo the same sentiments of one of my other colleagues also about the growth in the business, that is overall the advances and the deposits. While in this quarter we have addressed the credit growth, at least in this quarter we are positive, 4%.

Going forward, you already assured that the coming quarter will be better. Still, if you look at the deposit growth, that is just 0.95%.

The overall, if you take nine months also, it is only 3.88%. Unless we match that, how are you going to increase your advances when your CD ratio is already 83.89%, your CRR has come down to 16.49%?

How do we with this kind of deposit, in spite of all the churning, because if you look at even last seven quarters also, the deposit growth is only 2.19% over the seven quarters right from Q1 of FY '25. What is going to be drastically done by you so as to bring the deposit also up to match with your credit growth target, sir?

See, Ajmera sahab, thank you so much for the appreciation to my bank, your bank, and the staff members. I would put it one very clear way that the raising of deposits is not an issue and it was not an issue.

Actually, we knew where the money is and where to deploy. This is what exactly we have done last three months.

Now, if you see the three, four things, then probably you will understand that otherwise access money has cost more rather than creating a value more. The first thing was the treasury, because we have shed off ₹40,000 crore of our bulk deposit and which actually helped us in reducing the LCR requirement.

We had a huge excess SLR and other securities as well, non-SLR. So, ₹15,000 crore of treasury book is contracted and we have shifted.

There was a gap of 3% to 4% because our domestic CD ratio is below 81%. In that case, we had 3% to 4% of the range to go about it, second point.

Third point is our CASA, the CASA of the bank is increased by 140 basis point. Now, if you take the CASA, around ₹8,000 to ₹9,000 crore CASA is increased, meanwhile, the retail term deposit.

Actually, there the question comes. They are put together both, around ₹15,000 to ₹16,000 crore there is an increase.

Now, that portion ₹15,000, ₹16,000 plus further if you take ₹15,000 crore of my treasury book, straight away you are getting ₹31,000 crore, which is a resource for me for the and even if I am not taking the CD ratio increased by 3 percentage point. That is the reason outcome if you will see, the CD ratio is within range, the LCR is within range, the NSFR is within range, and all the ratios which are required are the board approved, are well within range.

For here, absolutely no issue. Now, coming to the coming quarters.

Now, coming quarters, every bank is having the asset liability buckets, and certainly we are working upon that. More so, we are working more on increasing the CASA.

Last quarter itself, we could get 140 basis point. That is a very steep increase and which has resulted, even though the two rate cuts from September onwards.

I think even in that scenario, if the NIM is increasing, that gives a good sort of a colour and influence. Now coming forward to this, and also when you talk about deposit, it is not the only resource.

There is a resource of refinance, MSME refinance also we have done to an extent of ₹5,000 crore. We have various as a bank, when you manage things, you have various resources.

Keeping in view resources, and that's the reason that all the ratios there is no abnormality or aberration and actually this is the reason why this time at least five efficiency parameters are touching the highest ones. Now, coming to this quarter, we already have a strategy in place.

There are three, four new structures are created. One is the Ecosystem Banking and the team is working really hard, and it is a very very structural some changes which the bank has done.

Probably when next time we meet somewhere in April, certainly we will be in a position to speak more about it.

Sir, no, point well taken, sir. Only thing that now at least a time should come when we are at par with the industry, or even better, which you used to be sometime back also.

That will ultimately be requiring the deposit by whatever means it comes so as to match the growth. There are other means available.

Liquidity is there with you, but this mismatch has to be answered, sir. Point well taken, sir.

Sir, one of my other small observation is while the operating profit has gone up by about ₹100 crore in this quarter, ₹120 crore something, our net profit has gone up substantially. The main reason is that the provision on standard asset has come down to ₹176 crore as compared to ₹882 crore in the last quarter.

Going forward, and that is the reason our credit cost is also very, very minimal. Going forward, can we take it as if the provisioning will be less only, and the more profit will remain coming in the books only?

Coming to a provision, certainly you need to look into three, four, five ratios or parameters. One is the SMA, one is the loan book, and one is the PCR, how much, and one is the GNPA, NNPA.

I think these four, five things very clearly tells credit cost and slippages. I think these seven parameters.

This gives a very good inference that what would be the provision requirement going forward, number one. Number two, coming to the OP, see, when you are seeing this growth, you are always there because in all the concalls and when we meet in the month of June, September, and now this quarter.

You have seen, what happens, no, what corporate credit book you are seeing, you think even if I add ₹30,000 crore further, it's 9%. See, what happens, no, it doesn't happens on the 1st of October.

It happens during the 90 days time. Now, that something would have been done, because if you start working, then something happens in November, something happens in December.

That is why the important thing is, what is your average advances growth and average deposit and average CASA growth. Actually, in our bank, we are totally working upon these three figures.

Now, the thing is that once you have achieved a growth, in the next quarter certainly you will be in a position to get this interest income out of that. You cannot eventually spread out for the 90 days.

Probably in the month of December, because once you sanction, sanctioning itself, I will tell you, it takes a minimum 20, 25 days, but then the disbursement further takes 10 to 15 days. I think this also gives an probably how it would have been spread over the 90 days.

I think you asked OP, we expect OP to be, though, I will tell you, OP is the net interest income, and you see again the factor of reducing rate of interest. Then, we have shielded within even in the 90 days period with the given circumstances which you brief you.

Even then we have shielded, we have made it better. I think we actually expect a better than this performance in the coming quarters.

Sir, can you give some colour on our technology upgradation and the technology budget, IT budget? Where are we placed, and is there any major ease of doing business, something major is being done in the technology front?

I think initially itself I told about EASE and I told about IBA Technology Award and Project Muskaan. Since our ED sahab is running this project and so many things in the bank and actually when we get a Best Tech Award, I would like him to address this to all the investors.

Thank you. Ajmera ji, as you heard MD, CEO in the beginning that the current focus of leveraging technology is also to create convenience for our employees, which will ultimately get converted into convenience for our customers.

Under Project Muskaan, we have currently identified around 300 odd processes which we are trying to simplify so that our employees can serve the customers in a better way. As we progress, more and more processes will be covered under this project for the simplification.

Otherwise, as you asked about the budget, we have for this year around ₹1,600 crore of capital budget for the technology, and it is higher than the previous year's level also. That is going on the strengthening the infrastructure, network, as well as strengthening our cybersecurity framework.

See, currently we are in the process of implementing phase two of the resilient center of excellence, which is more a proactive approach for responding to the threats and the disruptions. The next-gen cybersecurity center of excellence that we have established, that is also almost at the kind of closer stage.

In a couple of months, we'll be doing. That is again the most advanced technology so far as the security operations center and the cybersecurity management is concerned.

You'll also be happy, investor community will be happy to know that bank is, as MD, CEO told in the beginning, that we are already running on the not only the DC-DR, but near DC and near DR also. On top of that, the digital banking platform that we have established, it is actually having a four-site architecture, which means it's always active-active and auto load balancing.

In terms of the usage, if you look at, and I think we have given the numbers also somewhere, that today almost 80% of the liability side relationships, liability side accounts are getting opened using the digital means. Similarly, on the lending side, for the low-ticket loans on the retail, agri, and MSME, we are already doing on this.

You would have also noticed in our presentation, we have touched a bit on what we are going to do in the next for the digital and technology, because now we have the right set of infrastructure and we have to leverage in terms of business. We are setting up a digital business vertical, which will ensure that we are approaching our customer and serving them digitally through the three approaches.

One is the do-it-yourself for the customers who are very tech and digital savvy, who can get the banking services on their own through the links and the icons available on the website, apps, and the social media channels. Second is the assisted channel, which through our call center will be assisting the customer in completing the journey.

Third is that doing the digital approach of business at the branch level. That is what the approach is.

I think today we are all set to kind of ramp up the business contribution, profitability contribution from the digital. Thank you.

Thanks for the opportunity. A couple of questions.

Firstly, in terms of provisions, you did mention that it has come down, but going forward to meet the ECL provisions, do you expect that we'll increase the standard asset provision, or it will remain at lower end only? My second question is so in H1, we did not had any PSLC income, but a small amount of ₹100 crore has come in this quarter.

Going forward from next year onward, can we go back to the level of FY '25 what we have done?

Doshi ji, for this, a very good question and I am thankful to you. You have noticed very keenly.

The first part related to ECL, I would request my ED sahab Rudra ji, and for PSLC, I would request my ED sahab Mr. Rama ji to answer.

Good afternoon. I am Sanjay Rudra here.

Regarding the provision part which you said has come down, basically if you see our total slippages for the quarter, December quarter is around ₹1,800 crore. Almost the recovery and upgradation is also to the extent of the similar amount.

There is and we are standing at a PCR of 95%. Whatever the provision was required for the fresh slippages accounts, we already had a adequate release from the recovery and upgradation which has happened.

There was limited requirement for provisions. That is why our credit cost and provisions requirement has come down.

Going forward, whether it is a sustainable or not, yes, we are working very hard on the containing the slippages. If you see there is no corporate slippages has not happened, and going forward it should be also be well-managed.

We are confident that our provision requirement going forward will also be on a lower side. Regarding ECL, see, we have already made the adequate provision.

As the I-GAAP we have made a 95% provisions and on half-yearly basis we are making the assessment on the Ind AS also. What we observed that there is gap between earlier the gap was high, but gradually over a period of time in 2-3 years, as we reached to a 95% provision, our ECL provision requirement has come down.

There is not much gap between the existing provisions and the required provision under the ECL guidelines. Bank is well-placed.

Bank is having the adequate profit to take care of the provision requirements under the ECL. In fact, in the guidelines that 5 years dispensation is given to meet the requirement of the provision requirement, but most likely bank may not go for that type of facility.

Bank is well capitalized and profit is adequate to take care of ECL provision requirement in the first year itself. That is as far as the ECL is concerned.

Regarding PSLC profit, yes, we tried, but in the first half of the financial year, we were not having any opportunity to sell the PSLC certificates, which we did in the last year. Last year, we did a very good business on account of the PSLC sale.

It was around ₹950 crore of the profit we booked in the first half year. This year that opportunity was not available, and gradually the portfolio was built.

In third quarter, we were able to sell a small amount and we booked a profit of around ₹108 crore. Going forward also, the department is working very hard on the priority sector lending, and we are hopeful that next quarter also, if possible, we'll try to sell some PSLC to have a additional profit.

Definitely the going forward in the next year onwards, we think we'll be able to leverage the PSLC, PSL book, and we'll be able to make a good amount of profit going forward.

Thanks for the opportunity.

Hey, hi. Thanks for the opportunity, and congrats, sir, on very good numbers.

Sir, two things. First, sir, if I look at the investments book, I understand we have sold a lot of mutual fund investments, around ₹10,000 crores.

Overall also, we have sold some SLR securities. Your income on investments in the interest income earned line has gone up by 6% quarter-on-quarter.

I just wanted to understand what's happening here, if you can kind of help explain. Also, is your treasury gain mainly because of the mutual fund sale income, or yeah?

No, it is, I think, the normal treasury operations. If last quarter also if you that NSDL if you decrease, that was around ₹500 crore, that is in the same range.

Now coming to the treasury, the banking job is to lend first and on the quality assets and created long-term assets. Even if now if you see what is the yield in the SLR or non-SLR, and if you see what the option you have when you lend it into the retail or I will not say retail, but the MSME and corporate, under-lead corporate.

Probably certainly the option number two is much better. That's the reason we contracted our treasury by ₹15,000 crore and shifted it to better yielding and better quality assets.

Okay. Sir, is your treasury gain of ₹580 crore mainly because of sale of mutual funds or no, that is not the major component?

See, it will be the foreign exchange income will be there, then certainly when you sell it from the HTM, and certainly sometimes maybe you arbitrage also you do it, some swaps are there. Certainly, Nitesh ji?

All included. You can brief.

This includes the mutual fund income also, besides that HTM sale also is there, then exchange income also, because of the fluctuation, we could garner more exchange income. All these have led to this ₹500 crore treasury income.

If you compare with the Q3 of FY '24, it has grown substantially above that number.

Hi. Couple of questions.

Firstly, on the recovery part, when we look at the recoveries from written-off account compared to the run-rate over past 5-6 quarters, it has come down a bit and overall recovery as well. Where should we see it settling over next 3 to 4 odd quarters?

Kunal, if you're looking at it, see, recovery actually what we are having earlier, you cannot be comparing because the new slippages are being very much less, actually. Bank is also trying to see that what are the leftover recovery, we are being getting with various types like OTS, NCLT, everything.

If you look at it in the last quarter, our whatever the recovery around ₹3,000 crore, ₹2,800 crore specifically are recovered, if you look at it, the maximum recovery in a single account is only ₹130 crore and that is the only account above ₹100 crore. We made a mega account, a small account, try to get the recovery at the maximum extent possible.

Going forward, yes, this quarter some recoveries are expected, but I think it will be based on whatever the leftover portfolio which will be able to do that.

Also there are three levels. One is through NCLT or the other route, another one is you go with the OTS and with the party bipartite, another is the small amounts through Lok Adalat or maybe the property sale and other things, taking SARFAESI action and all.

The normal one is always there and we are actually better than the earlier quarters. Actually, as you said, we actually were expecting some three, four accounts, we cannot name them, it was very close, but then probably we may see fruits only in this quarter, probably.

Sure. Just a clarification on provisioning.

Last quarter you indicated some prudent provisioning done towards ECL, and that's why standard asset provisioning was higher. This quarter, I believe from your explanation, there doesn't seem to be any provisioning towards the ECL in this quarter.

Second is on the fraud cases. Maybe what the provisioning was done, was it 100% provided earlier and there was nothing which was provided during the quarter for the fraud which were reported this quarter?

Kunal, you're right. We did mention in the last analyst call that we've taken some additional standard asset provisioning to reduce the buffer that's required to meet the ECL provision.

You'll see that we've done that in Q1 as well as in Q2. Given the low slippages in this quarter as well as the PCR of 95%, we did not really need to make any standard asset provisioning in this quarter.

That explains why you're not seeing a big standard asset provisioning in the current quarter. 50% provision.

I could not understand. No, first one is the NIM, whether it will moderate or stay stable.

Can you repeat, please? Sorry, we could not get it.

Do you expect the NIMs in FY 2027 to improve or stay stable or moderate? What is going to influence this?

What is going to influence it, okay. You would like to take, Amresh ji?

Actually, what we see that the NIM will further improve because whatever the deposit was taken, that is going to be repriced in this quarter or next financial year. The impact, you have already seen our book that our MCLR related books are only 32% and the balance are in the shape of they are linked with the external rate of interest.

When the rate cut happens, the impact of that rate cut automatically passed on to that yield. The deposit side, cost of financing is being repriced after the maturity period.

Definitely if that happens in this quarter and next quarter onwards, definitely NIM is going to improve. That is our expectation.

I think what you asked, no, just to support ED Amresh sahab, actually last time also same thing was asked. We only said one thing, we would like to defend, yes, but then we have come better.

Again, we would like to say to you, we'll defend. Let us see how it happens in the month of April.

Now, coming to the parameters which is going to influence it, see, the one thing is that in the downward revision scenario when repo rate is being cut, suddenly you will see, because there is a lag the deposit lag behind by few months or quarters, but then there is immediate impact on the loan part, asset part. I think that is one thing, but even then we have defended.

That is one part. Second one is how you place yourself with the CASA and how you place yourself with the retail term deposit and how you place with your the corporate deposit, the nothing deposit.

I think the more important thing for the NIM is that how you manage your average advances during the quarter. Because the last moment will probably not make it more.

I think we all are working in the same line. Just I wanted to supplement the first part which ED Amresh ji has already told.

The parameters which you have asked, I think this one. The second part of your question was that how you foresee the RAM, that retail and MSME and growth and all, and corporate.

What I would like to suggest, my ED Rama sahab will tell you on the RAM side, and from the corporate book side, our ED Shri Amresh ji will brief you.

If you're looking at the retail and the MSME, consistently this year we have been showing a good growth year-on-year. It is around the 22% and 20%.

Agri, yes, we had some issues, but if you look at it in the last quarter, we have picked up and we have shown a good growth on agriculture. Going forward, we will be driving it because these are all have to be done by the field at the branch level.

We'll be driving this business and try to maintain the same 58-42 or 60-40 ratio between RAM and the corporate. Sir,

regarding the growth of the corporate book, sir, MD sir has already said we are having some pipelines, already sanctions are there and some good number of proposals are also in hand which are going to be sanctioned this quarter. We don't see any challenge in growing the corporate book also, sir.

Thank you.

Hi, sir. Thanks a lot for the opportunity.

What is your NIM guidance for FY '26?

NIM, I think we have already discussed. In the last quarter also when we met on 28th or 29th of October, one stand which we communicated that we would like to defend it.

Let us see, actually we moved better though the condition or maybe the scenario was towards the downside. Still we will say that we would like to defend 2.76%, but then we hope for better, I think, though you may be finding a different scenario.

Then there was some opportunity in our shuffling from the book which we have done.

Sir. Fair enough.

Second question, how much of the deposits are yet to reprice in terms of retail term deposits and certificate of deposits in quarter four?

See, the deposits which are going to mature in this quarter are in the range of 1 plus around ₹50 lakh. That are under different rates.

It consists of even the bulk side and it also consists on the retail side. How we are looking at it, the composition should be in such a fashion that it doesn't impact my LCR much, number one.

Number two, the high-cost, we are very keen, actually we are very, even when we are quoting, we are very specific to the quote. If it is a financial institution, we are actually not quoting at a higher rate, because the runoff factor is 100% on that.

Meanwhile, we have created a different structure. Probably the only bank which we have created is Ecosystem Banking, which is headed by a very senior official at the General Manager level.

He's having almost 1,600 people under him across India, and he's having units at various locations. That is the effort which initial, if you want to know the initial sort of a results that our CASA has been improved with 140 basis point.

We are actually thinking more of having RTD, having CASA, and then to an extent left out, we will be taking the deposit, but certainly in a range which is acceptable to us.

Good afternoon, sir. Just wanted to ask, what is the size of the gold loan book that you have both in retail and agri?

Gold loan portfolio is around ₹84,000 crore total. Actually, let me share with you we were hovering at the same level for past two quarters, but now this quarter there is an increase of around ₹2,200 crore.

At the same time, it is not like the revenue is not there, it is not like we didn't wanted, but we wanted to strengthen the system and procedure in that. Actually we have done it somewhere in the months of October and November.

Now we are poised for taking it forward. I think that we will move forward and our yield is also good.

Actually, it is coming around up till now, I can take not exactly with a quarter, but the nine months is coming around 8.85%, 9% balance.

This you're saying agri?

I am saying about gold loan, all three, total, retail and agri.

Okay.

Agri is about ₹48,000 crore. Agri is ₹48,000 crore, yeah.

48 is agri. Just one detail,

what LTV are you doing these loans at in agri as well as retail? This is

75 in non-agri actually, LTV, and 85% in agri.

Hi. Thank you for taking my question.

On the credit cost, just wanted to understand. Why we used to be around 65-75 bps kind of an average run-rate.

We have come down to 10 bps as of now. Is this largely because of slippages coming down, or is there some one-off in terms of write-backs or recoveries that we are getting that the credit cost is at this range?

What would be your steady state credit cost that you would guide for going forward sustainably?

I think if you see the movement of the provision, probably it gives a some colour out of it. Coming to the second point, there are six, seven parameters with the earlier questions which I replied.

The one is the corporate book, what is the rating? Around 95% of the total loan book is BBB and above, mostly.

Mostly it is in A and above. That is the first part.

The second part is that the SMA position, which we have already given the presentation, is the almost lowest right now in the absolute terms, which is ₹4,285 crore. This is the second point.

See, then third point is that the slippage ratio is also well within control. Actually, the bank has taken, while you have strengthened the credit book on the one side, the another side is you have developed the better collection efficiency mechanism using the software, apps, and feet on street.

Now actually that has given the results. Going forward, we do not expect some, much of the things.

We think in the same fashion going forward as well.

Understood. My second question.

One more thing, probably you see my restructured book, because there is one more portfolio from where this the credit cost and slippages come. If you take that my restructured book also, even the 50% of that is we have realized, already realized as an NPA.

The question is that when already you have taken care of the things, probably we do not foresee, until unless the situation goes something very haywire, like COVID or something like that, we foresee in a similar fashion to go forward.

Any guidance around credit cost, what we could give?

In similar way, one or two quarters if you're seeing, in the same range. If you look at our nine-month credit cost is about 26 bps, right?

I think what sir is indicating is we would like to try and achieve that kind of a number going forward, including because we have also evaluated as and when ECL comes in, right? It will be a number which will move.

Hopefully around that.

Hi team, good afternoon. Two questions from my side.

Firstly, if I look at the total recoveries which you report in your presentation on slide number 15, in FY '25, you did upwards of ₹15,000 crore on total recoveries going by the new presentation which you're sharing. In so far in FY '26, you have done some ₹9,200 crore.

What do you think about the run-rate, what do you think about the outlook for FY '26 and FY '27 on this front? That is one.

On the recovery front? On total recoveries.

Yes, sir, please go ahead.

On the recovery front you are asking, no, what will be the going forward, correct?

Yes, sir.

That's what I told, just comparing to the last year, portfolio is different now. The slippages are coming down actually.

See, whatever the available, we have already done for 9,200. We expect that as earlier sir has already told, there are some recoveries which we expected in the last quarter which we will be realizing.

We will be ending up around I think most probably with around because we are not given any guidance this year. I cannot exact with number.

You can expect more or less the same average what it has been done in the last three quarters, it will be there actually on that.

Understood, sir. Going forward, is it fair to assume a decline of let's say about somewhere around 10% to 20% every year going forward in that number?

In which one? In the recovery?

See, recovery, I'll put it differently. Not per se about our bank or something like that.

It is the effort you have put in and the structure you have put in for the recovery. Still, the book is always there, but some windfall happens when there is an NCLT resolutions.

The thing is that if you are talking about the regular recovery, you may expect better than that, because there are three beat line. One is the normal, regular recovery, another one is, when you get through through NCLT or some the bigger resolutions.

Bigger resolution generally we because we expected actually last last week of last 15 days of the last quarter, but that has not materialized, but will be materializing in this quarter. At the same time, we we do not consider in our forecast, because the thing is that we have to concentrate upon the cases which are in DRT or maybe maybe the SARFAESI actions and taking even the smaller loans are there where you recovery agents you deploy and take the possession of the cars or maybe the house and then you try to put into auctions and all.

Actually, we have strengthened those systems and that is why we are confident that the the the this structure of the recovery, you will see better than expected. That related to the the better bigger one, we are still we still have there, I think that will be yielding going forward as well for maybe few quarters and years.

Thank you for taking my question and congratulations. Just firstly on the LDR side, while we have had liquidity benefit due to the CRR cuts, my LDR has kind of shot up by about 4.5% sequentially.

What kind of LDR levels are you looking sustainably given the fact that capital, we are pretty comfortable at about 14.50% to 15%? That's the first question.

See, there are two types of LDR, one is domestic, another one is as a global consolidated. Typically, let us discuss first with the domestic one.

Compared to the domestic one, we are in the below 81%, and if you see the banks today and the efficiency parameter-wise, I think 80, 81 is a very good, comfortable range for everybody, all the stakeholders. Absolutely that is not and we have achieved it.

The second one is, compared to because the foreign, you will be knowing that including the GIFT City, generally you will see more LCD ratios with them, LDR. Then that is the reason that's globally if you see it is somewhere 82, 83 range.

Otherwise, we are in a comfortable range, we do not foresee any issue in that that this is a good efficiency with that range, subject to that you deploy the assets qualitatively and quantitatively in the right direction. I think that LDR, we do not want to go beyond certain limit, maybe 0.5% to 0.75% here and there.

Understood. Thank you so much.

Secondly, on the opex side, right, last two years opex growth has been kind of low. For the next two financial years, what kind of opex growth do we expect, should it be in tandem with the loan growth?

Opex growth,

operating expenditure. Actually we have taken few steps here.

That is actually we cannot say much, but then probably you will be seeing the, one is the Project Muskaan itself where we are moving towards efficiency, point number one. Point number two, there are a few more which we have taken on the ATMs and similar some sort of a recruitment and other things where we see that certainly because when you are in a economy where GDP is growing everything, the cost of your people, cost of your physical infrastructure increases.

Then what we are looking at it, actually we have identified and identifying further that what are the parameters where we can have a control. Specifically those parameters, the entire team is working upon.

Going forward on an operational expenditure, once we move towards more of a like our ED Shri Nitesh sahab was telling you on the digital push and the digital infrastructure platform which the bank has built, once it is put to use to a good capacity, I would even not say 90% to 100%, but even if it is put to 60% to 70%, you will see good cost cutting along with the risk mitigation. I think probably, and we do have a plan.

Now I will come back to one more point, because you're an investor, you will have a noting of it. We have a plan of opening some 75 branches this year itself and going forward, we want to further open 200 branches.

That is also a cost, but then, even then we would like to come down and bring it into the control. Got it.

Thank you so much.

Congratulations to the team for a good quarter and thank you for the opportunity. I have two questions, sir.

One is, what is our excess standard asset provision that we hold? Second is this project finance provision rules are kicking in.

How do you see that impacting the provisions, and are you seeing any incremental increase in the private capex that is coming out, or when do you see it will pick up?

Okay. I'll take the first one, which is on the excess standard asset provisioning.

I don't think it's fair to look at it from a point of view of an excess standard asset provisioning because what we're trying to do is bridge the gap between ECL and the current level of provisioning. That is something that, even in the last couple of quarters we've been saying that we will make standard asset provisioning and giving you the excess standard asset provisioning would also give you an indication of what would be the potential ECL provisioning, which we've not really necessarily put in the public domain.

We are comfortable in terms of the standard asset provisioning that we hold and we will continue to look at it as and when the RBI releases the final ECL guidelines to see whether we need to increase or whether we need to maintain at the same level.

Sir, and on the project financing? Project finance, I don't think we are expecting much of interest, not much.

In project finance, there is not much provision has been made during this quarter. Of course, there are some project finance where recently we have done it, accordingly the provisions have been made as per the norms, but that is not making a much of a provision on the provision side.

In fact, you are trying to understand what is the impact of the new project finance guidelines and provisioning.

For existing portfolio, there won't be any impact because there either COD has been achieved or COD has been extended. For only new cases where COD is getting extended, which will have some impact.

This will have incremental impact only. Yeah.

Because that will keep on moving based on new project which comes to us in our portfolio and then if extension is required to be given. It will not have any significant

impact. Thank you.

All the best to the team. Thank you.

Thank you so much to all our investors, analysts. We are always thankful to you for being along with us and we always appreciate whenever you tell some lacking from our side and something where we have to improve.

We always welcome those suggestions from you and you have all our mail IDs and everything and certainly we can have a meeting as well. Then, from the Union Bank and we all senior management sitting here, we welcome those and anywhere we would like to take further improvements because you will have some critical eye to make the analysis of the bank and tell us where we can a bit more improve upon.

We are in that process, but certainly we value your suggestion, we value your proposition. Thanks to you for along with us today.

Thank you so much.