Hello everyone, and welcome to Q1 FY27 earnings conference call of Punjab National Bank. Today we have with us the management of the bank, headed by Mr.

Ashok Chandra, MD and CEO; Mr. Paramasivam, Executive Director; Mr.

D. Surendran, Executive Director; and Mr.

Amit Kumar Srivastava, Executive Director. With this introduction, I would like to hand over the call to Mr.

Sunil Kumar Goyal, Chief General Manager, Strategic Management and Economic Advisory Division, post which the MD sir will address the conference. Thank you, and over to you, sir.

Sunil Kumar Goyal (Chief General Manager, Strategic Management and Economic Advisory Division):

Good afternoon. I am reading out the disclaimer.

The statements made during this meet may contain forward-looking statements apart from historical information. These forward-looking statements involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements.

Punjab National Bank undertakes no obligation to update forward-looking statements to reflect events or circumstances after the present date. Thank you, and now I am handing over to our MD sir for opening remarks.

Good afternoon, ladies... We have started the financial year on a strong note, building on the momentum of the last few years.

Our performance this quarter reflects balanced and sustainable growth across all key parameters: business expansion, asset quality, profitability, operational efficiency, and customer service. We remain firmly on track to achieve the guidance and strategic priorities for financial year '26-27.

Our growth strategy continues to be driven by the retail, agriculture, and MSME segments. We are expanding our customer franchise through focused acquisition, digital-first delivery, and a calibrated expansion of our branch network.

During the year, we plan to open 250 new branches, with a special focus on strengthening our presence in the southern and western region. Technology and digital transformation remain at the heart of our growth strategy.

We continue to invest in digital capabilities, automation, and analytics to enhance customer experience, improve productivity, and build a scalable, future-ready banking franchise. Our asset quality continues to strengthen, supported by disciplined underwriting, robust monitoring, and focused recovery efforts.

At the same time, our emphasis on business quality and operational efficiency has translated into steady growth in both operating profit and net profit. With this brief overview, let me now take you through the bank's performance for the quarter.

First, I will touch upon the business growth. The quarter ended June 2026 marked another period of consistent financial performance, driven by balanced growth and sustained strategic momentum.

Our gross global business reached to ₹29.98 lakh crore, making a healthy 10.2% YoY growth. Our advances grew by 12.7% YoY to ₹12.73 lakh crore, despite a ₹22,411 crore low-yielding reduce low-yielding IBPC exposure, largely from the retail portfolio.

Excluding the impact of the IBPC book, core advances recorded a strong 15.4% YoY growth, underscoring sustained credit demand and healthy business momentum. Our core RAM book has witnessed decent growth, with retail book, excluding IBPC, growing at 17.5%, MSME is growing at 19.8%, and Agri priority sector at 16.4%.

Credit growth momentum is expected to remain strong, backed by a robust sanction pipeline. The bank sanctioned more than ₹95,500 crore of credit facilities during this financial year of this particular quarter, and total of ₹1.38 lakh crore is pending for disbursement.

Global deposits of the bank have reached to ₹17.25 lakh crore, up 8.5% on YoY basis. Our CASA strategy is centered on deepening individual savings account balances, which grew by 9.3% YoY, reflecting steady customer acquisition and stronger customer engagement.

The credit-deposit ratio increased to 73.8%, however, still provides adequate balance sheet flexibility to support credit expansion while allowing the bank to remain selective in raising higher-cost deposits. Now I will touch to the profitability part.

Improving profitability remains a key management priority. Profitability is a core agenda item in all our business review meetings with field functionaries and has been incorporated into their performance evaluation framework.

In the previous meets, I informed that we will see QoQ improvement in the margins in FY '26-27, and we have started to witness the same. Our domestic NIM, which was 2.47% last quarter, it has gone to 2.64%, and the global NIM, which was it was the domestic NIM was 2.61% in the Q4, which has moved to 2.64%, and the global NIM was 2.47% in the Q4, which has gone to 2.5%, 50%.

I am confident to witness healthy QoQ improvement in margins in the coming quarters and achieving our guidance for the financial year '26-27. Our NII, which was negative in previous financial year, has also turned positive in the Q1 and has remained at ₹10,798 crore, with sequential growth of 4%.

Operating profit of the bank is also increasing on a sequential basis. Operating profit for the Q1 for of this year is ₹7,519 crore, as against the ₹7,081 crore of Q1 of last year, witnessing a growth rate of 6.2%.

Our core operating profit, excluding recovery from written-off accounts and treasury gains, have witnessed a YoY growth of 35.7%. Net profit of the bank for Q1 stands at ₹5,253 crore.

Now I will touch upon the efficiency ratios. Our return on asset is consistently above 1% and is at 1.04% in Q1 of this financial year.

Our return on equity stands at 17.33%. EPS is 4.57, not annualized for this quarter.

Our tangible book value per share as on 30th June 2026 is 108.58, which has significantly improved from the level of 92.64 as on 30th June 2025. We are quite mindful of improving our cost-to-income ratio, and the same has reduced to 50.31% in Q1 of this year, as against 55.31% in Q1 of last year.

Asset quality: asset quality continues to strengthen, with gross NPA declining to 2.78% as on 30th June 2026 from the level of 3.78%, 100 basis point decline is there, and net NPA improving to 0.28% as on 30th June from the level of 0.38% as on 30th June 2025. So 10 basis point improvement is there in the net NPA also.

This reflects our disciplined credit and recovery framework and keeps us well on track to achieve our financial year '26-27 guidance for both gross NPA and net NPA. As of now, we have not seen any material impact of geopolitical tensions on the bank's asset quality.

Our slippages remain contained, SMA accounts are stable, and the overall credit portfolio continues to perform well. Our PCR stands at 97.23% as on 30th June 2026, which is well above our guidance of more than 96% for financial year 2027.

Total fresh slippages during the Q1 of 2027 was ₹2,080 crore, as against ₹1,886 crore in Q1 of FY26. Our guidance for slippages ratio was to remain below 0.9% in FY 2027, and we are well within our guidance level, as slippages ratio for this year is 0.68%.

Total recovery stood at ₹2,789 crore for Q1 of this year, and our recovery is 1.34x of the slippages in Q1 of this year, reflecting our commitment towards improving asset quality. We have made additional floating provision of ₹390 crore on prudential basis in Q1 of this year, making our total floating provision at ₹2,435 crore.

There is consistent improvement in the SMA book, and overall SMA stands at 2.9% of the overall loan book. I will highlight the asset quality and underwriting standards.

In fact, from the 1st July 2020 to 30th June 2026, that is a six years period, we have sanctioned around ₹14.74 lakh crore loans, out of which we have disbursed around ₹12.92 lakh crore loans. The outstanding in these loans is ₹8.94 lakh crore, which is close to 70% of our total outstanding loan book.

The NPA in this book is hardly ₹5,486 crore, which is only 0.42% of the disbursed amount under fresh underwriting, which is for the last six years. This speaks about the credit underwriting standard of our bank.

Now I will highlight the capital structure. Our capital adequacy is 18.13% as on 30th June 2026, compared to 17.50% as on 30th June 2025, against the regulatory requirement of 11.50%.

Our CET-1 capital stands at 14.52%, against the regulatory requirement of 8%; Tier-1 capital stands at 16.03%, against regulatory requirement of 9.5%; and Tier-2 capital stands at 2.10% as at 30th June 2026. More than 86% of the total externally rated advance above ₹25 crore are above A-rated, and more than 52% are AAA-rated, which reflects our balance sheet strength from risk point of view.

Bank is doing a lot of activities on the digital front, and digital banking continues to be a strong growth driver for the bank. After crossing the milestone of ₹1 lakh crore in cumulative digital loan sanctions earlier this year, we are on track to add another ₹1 lakh crore during the current financial year.

In Q1 alone, our digital credit sanctions are more than ₹19,000 crore. This growth is being powered by innovative solutions such as Digi Lakhpati Didi, e-Prime Minister SVANidhi Scheme, and our newly launched emergency credit line, helping us expand credit access and improve customer convenience.

Digital adoption is accelerating rapidly. While every third loan was sanctioned digitally in the last quarter of the previous year, today every second loan is being sanctioned through the digital channel.

On the transaction side, over 95% of the customer transactions are now digital. We are also actively supporting the RBI and government initiatives on CBDC and other digital public infrastructure projects, reinforcing our commitment to India's digital transformation journey.

Artificial intelligence is emerging as a key growth and transformation driver for the bank. We have already deployed AI-powered solutions across customer service, employee productivity, learning, and credit processes, delivering tangible business benefits.

Going forward, we are scaling AI and machine learning across operations, analytics, risk management, and decision-making, with a strong focus on responsible AI, governance, and regulatory compliance. We believe AI will be a key differentiator in making our bank more agile, efficient, and customer-centric.

PNB is taking early steps towards becoming quantum-ready. We have deployed quantum-safe encryption in customer-facing applications and developing quantum-based banking use cases such as mule account detection.

This reflects our commitment to staying ahead in quantum-safe banking environment and innovation. Bank is doing very well under the human resources front and strengthening the employees' engagement.

The bank has partnered with 29 professors of practice and four premier institutions: ISB Hyderabad, MDI Gurgaon, IPE Hyderabad, and UNext Learning by Manipal Academy, to strengthen capability building through specialized training, research, and future-ready learning. The bank has introduced AR and VR-based training modules available in eight languages to deliver immersive learning and strengthen workforce capability through technology-enabled training.

In partnership with Microsoft, the bank has launched an AI training and certification program for all officers to build future-ready digital capabilities. My concluding remarks: the bank is strengthening its core franchise by expanding its CASA base and accelerating growth in retail, agriculture, MSME portfolio, laying the foundation for sustainable growth, stronger margins, and improved operational efficiency.

Our disciplined risk management approach, supported by prudent underwriting, controlled slippages, and focused recoveries, continues to strengthen asset quality, while digital and workforce transformation are enhancing productivity and customer experience. Credit cards, cash management services, and supply chain finance continue to emerge as key growth engines, delivering strong business momentum and supporting diversification of our revenue streams.

With a strong balance sheet, disciplined execution, and multiple growth drivers in place, the bank remains well-positioned to deliver consistent and sustainable value creation. Thank you very much, and I am open for any question, clarification related with the performance of our bank.

Hello, sir. Congratulations.

Sir, I have a couple of questions. Firstly, in terms of margins, I know you gave your guidance and outlook, but how sustainable are these?

Because we are seeing margin expansion at state-owned banks, and we are seeing margin contraction in quite a few private banks. How sustainable are these margins?

Do you think you can hold these margins? What are the pressures of positive triggers going ahead for margins?

Also in terms of growth, while you've done well on NII, your growth is slightly lower than other PSUs. What is the plan here in terms of catch-up and in terms of focus areas?

These are my two questions. Then also if you could talk a bit about your target of FCNR deposit mobilization and whether you are already seeing good demand or not.

First, I will touch the margin part. If you recall our interaction in the last quarter, where I had mentioned that almost all the higher deposit repricings are likely to be completed by May, and that has already happened now.

Bank has also mindful of the higher cost deposits, and that is the reason we are absolutely not there in the bulk deposit market and the CD market. Very consciously, we have kept the deposit growth at 8.5%.

This has contributed in the cost of deposit, and 34 basis point improvement has happened in the cost of deposit if you compare the YoY. We are going to continue this strategy, because since beginning, I'm talking about the profitability and re-jigging of the balance sheet we are doing it, like I'm talking about the low-yielding IBPC which the bank was holding it.

We have started diluting those things, and despite diluting ₹22,000 crore IBPC YoY, still we are having a growth of more than 10% in the credit overall. This is going to continue, and whatever the low-yielding corporate advances are there, that also we have shed to the tune of around ₹34,000, ₹35,000 crore in the first quarter of this year.

With that, we are still able to maintain a growth in the credit, and that too the growth in the NII and the NIM. This strategy is going to continue till we are coming out of all these low-yielding advances, and you will see the improvement in the NII and the NIM in every quarter now onwards.

That is the first point which I wanted to address to you. Second point related with this itself is the growth.

Growth, if you see, I will give you some numbers. The retail growth, if I exclude the IBPC, which I am mindful of reducing it wherever the low-yielding IBPCs are there, if I exclude from the retail part, we have grown at 17.5% in the core retail.

MSME, we have grown at more than 20%. Agri sector, in the priority sector, we have grown at 16.4%.

Corporate loan book is also has grown at 10%. It is only because there are some rebalancing we are doing it in the loan book, we are seeing the overall loan book is growing at around 12.5%.

Otherwise, bank is absolutely poised for the good growth with profitability. Profitability is the topmost parameter we have kept ourselves, and within that, whatever business generation is likely to happen, we will do the business.

Now coming to the FCNR part, I think it is a appropriate time this RBI has announced, and this has brought down the deposit rate in the market. Overall mobilization which the bank has already announced that we are going to mobilize $2.5 billion USD under this route.

Already $425 million USD we have mobilized till yesterday, and we are seeing a good traction. Whatever the commitment which we have given, and we have set the target for ourselves, that is the $2.5 billion USD through the FCNR route, we are going to mobilize that.

To that extent, I think our cost of deposit will also come, because you are aware that whatever mobilization we are doing it, it will not go for the CRR and SLR. That exemption is also there.

Finally, the cost of deposit will come down in the long run.

Sir. Thank you very much, and all the best.

Thank you. Thank you.

Thank you, madam.

Hi, sir. Good afternoon.

Thanks for the opportunity. Sir, you mentioned in your opening remarks that SMA 1, SMA 2 at the bank level is around 2.9%, right?

Can you also share SMA 1 number, sir, at the bank level?

Yes. SMA 1 is ₹7,942 crore, and percentage-wise it is...

Percentage-wise, okay, sir.

SMA 0, sir, would be how much, sir?

SMA 0 is 1.59%, SMA 1 is 0.64%, and SMA 2 is 0.75%. All put together, it is 2.9%.

Sure. Sir, now, last time when we had spoken on ECL, I think the final guidelines had come, and you would have had chance to have a thorough look on the ECL.

What is your assessment on the transitional provisioning requirement under ECL, one-time? Then if you can talk about the recurring impact, because you may have to provide on the non-funded exposure, etc.

See,

the final digital calculations are on way now, and last time also has indicated that in the month of October, through the digital route, we will be able to figure it out. Rough calculation which the bank has done, and last time also we had indicated, and as on today also, we are in the same range, around ₹9,500 to ₹10,000 crore.

That is the one-time exercise bank has to do, and I think going forward also, we have seen around 10 to 12 basis point impact will be there on quarter-to-quarter basis.

Sure. Sir, on IBPC, right?

If I look at this quarter presentation, they still have around ₹28,000 crore of IBPC, right? Correct.

Correct,

correct.

Do you think this will run down over the next one, two quarters, or the run-down could be slightly gradual?

Now fortunately, there are around 80% of that is at a very good price. See, why IBPC we had reduced is because of the low-yielding side.

Now almost we have cleaned. There are around ₹7,000 to ₹8,000 crore still it is at a lower rate, and that is getting matured in this quarter.

We will be totally out from that. Final outstanding for another 90 days or, yeah, 120 days will be around ₹16,000 ₹16,000 to ₹17,000 crore.

That is at a good price. That is matching with our requirement here.

Right. Then no more IBPC drag will be there, right?

After this quarter, after you, let us say, remove ₹10,000 crore. Okay.

That is good. Sir, on FCNR(B), you mentioned that you have raised already $400 million USD.

You are also offering leverage product, right? Or how does this work?

What is the blended, let's say, leverage that you may be offering?

No. We are offering the leverage also.

We have not exercised the leverage as of now in a bigger way. Most of these things are coming without leverage.

I think 100 out of $425 million, around $200 million, $200 million has come through the leverage side. Otherwise, all the core deposits under the FCNR has coming.

We have the leverage product, and we are working on that.

Okay. Sir, if I may, last question from my side is, sir, what has happened to this IL&FS Tamil Nadu Power?

There I thought we had excess provisioning there. We had resolved.

As you accounted everything, or what is going to happen there?

No, no. We are still holding it.

Around ₹1,000 crore provision still we are holding it. That is the kitty we have now, positive side.

Okay. What stops you from not accounting, and...

We will use this. In this financial year, we will use this.

Maybe in Q2 or Q3, we will use that fund.

Do you need any approval from any auditor or RBI to use that, or that is your discretion kind of a thing?

No, no. All the approvals are in place now.

No challenge now. We can do that.

All those approvals are there.

Okay. All right, thank you, sir, and all the very best.

Thank you.

Thank you.

Hi. Thanks for the opportunity, and congrats on a good number, sir.

Sir, I have two questions. One is on the provisioning, that extra provisioning that you're making every quarter.

What is the overall approach that you're looking at, by when do you look to complete this provisioning requirement? Any set timeline that you're looking at in terms of coming up to the total number?

Yeah.

Shall I answer now, or you have any other?

Yeah. I'll go ahead with the second also, sir.

Second question is around the OpEx growth. Now for us, OpEx growth this quarter is like a decline, and we used to incur a high PSLC cost.

Where it has come down, and by when do you think we will be able to completely plug this gap and, in fact, go on to earn PSLC income? How are you seeing that trajectory?

Therefore, overall, how are you looking at the cost-to-income ratio, because that has been one of the drag on our ROA versus other banks?

All the three things I will answer you. First is the floating provision which the bank is keeping it.

This quarter, we have kept ₹390 crore, and thereby, the total floating provision is ₹2,435 crore. We will be doing it in every quarter of this financial year, and anyway, from the next financial year, 1st April onwards, I think ECL has to be implemented.

In a true way, all this floating provision which is there, I think that will be used for the migration purpose now. Thereby, rough estimation which we have done around 10 to 12 basis points on running basis, the credit cost will be there on account of the ECL migration.

This is all about the ECL transmission. Bank is totally poised to have one-time migration also.

That decision we will take at appropriate time. We have enough cushion in the capital front, and I think there is no challenge as far as the ECL implementation is concerned.

Second part is PSLC. I think last year, if you remember, in every con-call, I was touching upon this point that PNB has a large presence, having 10,300 branches, and most of the branches are in the Agri sector.

Lot of activities we started, coming out the Agri outreach activities, Self Help Group outreach activities, and all those efforts have yielded good result. Field has responded very well, and the ultimate result is that last year, in the first quarter, we had incurred ₹893 crore, almost ₹900 crore, to purchase the PSLC, and this year that amount is only ₹360 crore.

With this activity which the bank is doing it, I think next year, we don't require the PSLC, and internally we have set a target at least ₹5,000 to ₹10,000 crore we should be the seller in the market. With the activity which the bank is doing it, with the Agri gold loan, which was very subdued in our bank, and that is growing at 100% now.

That gives a lot of cushion for us to use that PSLC for all the gap purpose, and also for the selling purpose if we have enough in the next financial year. I will give you the number.

Last year, under the gold loan, our total exposure was ₹15,694 crore in the June '25. Today, we have ₹31,880, almost ₹32,000 crore.

So 103% growth is there. What was happening, we had only 3,000 branches, they were doing the gold loan.

Now with the RBI policies in place, guidelines are there, there is full clarity on the gold loan front now. Thereby, another 3,400 branches we have added this year in the gold loan banking, and we have provided all the infrastructure and everything.

We are expecting that around ₹59,000 to ₹60,000 crore our portfolio should be there by end of this financial year, and that will help us in reaching the PSLC as well as if any surplus will be there, I think we will be able to sell it. Definitely, next year, we don't require the purchasing of the PSLC.

Sir. Yeah.

The

third part was the operating profit and the operational cost.

Yes, cost-to-income, yes.

See, the cost-to-income ratio, every quarter there is a reduction now, and from 55% last year in the same period, we have brought it down to 50% now. All the activity which the bank is doing it, especially the PSLC which the bank was purchasing it, I think all these things are going to help in reducing the cost-to-income ratio, and we are setting a goal that we should be, I think, 47%, 48% by end of this financial year.

Right, sir. That'd be very good to see.

Thank you so much for answering all the questions.

Thank you.

Congratulations to PNB team for very stable and a good outlook. Sir, my first question is, what is your outlook on treasury as yields are hovering around 6.75%?

We're estimating a good amount in FCNR(B). Second is, your written-off book, what kind of recovery are we likely to see?

Third is, what is our digital spend to enhance bank's capability in the current year? Hello?

Hello?

Sir, congratulations to team PNB for excellent results and a stable outlook. Sir, my three questions are: what is treasury outlook, what is our digital spend likely for the bank enhancement of capability this year, and third is in our written-off book and technical written-off book, what is our recovery estimate for the current year?

First is the treasury outlook. We are expecting that every quarter, around ₹900 to ₹1,000 crore we should be able to earn from the treasury side.

This is the outlook which we are giving you now. This quarter also, around ₹1,100 crore we have got the income from the treasury side.

Next is the digital spend. In fact, last year, we had taken the board approval of ₹3,500 crore, and we utilized around 82%, 84% of that amount for our various IT and digital activities.

This year also, our total budget for the financial year is around ₹3,400 crore, and we are augmenting our data center. We have come out with a new data center in Gurgaon.

Very high-tech data center has come out. Then we are also working on the AI, GenAI, and the quantum technology, which I have mentioned in my opening remarks also.

Lot of activities, lot of trust we are giving for improvement of the customer service, product improvement, and the employee engagement through these digital initiatives. We have come out with the AI-powered customer chat bot, which we call it as Pihu.

You can go to our Punjab National Bank website, and you can interact with Pihu for anything related with the product, services, ATM network, branch network, which is related with the Punjab National Bank, Pihu will provide you and guide you. Then we have also come out AI-enabled employee engagement.

That chat bot is Rahi. Sitting across the counter, our employee can chat with the Rahi and provide the instant solution, instant guidelines to the customer now.

Suppose any customer walks in and he wants to understand what is the housing loan scheme, what are the documents required, the employee can just chat with the Rahi, and instantly he can provide the list of all those documents and list of guidelines. The third initiative the bank has taken is a GenAI-based tools for credit note generation, and we are extensively using it for our CRM tool now.

Lead generation, sales, marketing, we are extensively started using that GenAI. Quantum technology, in fact, we are one of the leading banks and first bank in the country who has deployed quantum-safe encryption in customer-facing applications and developing quantum-based banking use cases such as mule account detection.

Main 86 of our applications, which is the customer-facing, we have already deployed the quantum check now, and that is certified by NIST, US-based organization. Bank is doing a lot of activities on these areas.

The third point was...

TW

recovery, in fact, last year when I had given the guidance, first of all, the total recovery guidance we have given for the ₹13,000 crore. Total recovery will happen through that route now.

Within that ₹13,000 crore, ₹4,000 crore we are expecting that it will happen through the TW route now.

Sir, any outlook on all the three subsidiaries: PNB MetLife, PNB Gilts, and PNB Housing? What are we doing?

Are we enhancing our stake, or any business outlook which you are seeing as a promoter?

Stake enhancement, we are not going to do that. Of course, we are constantly reviewing their performance and giving a very clear direction, because value maximization of the subsidiaries is one of our agenda items.

You have seen that PNB Housing, the new MD has come, and a lot of activities that has started in that organization. Similarly, PNB MetLife, their performance has also improved now.

PNB Gilts also, they're doing very well. Time to time, our interventions are there, and we are reviewing their performance.

Our people are already there on their board now, so that we understand that where they are now and what is the support they require from the parent organization. We are committed for the value maximization of our subsidiaries.

Thank you for answering all my questions, and good luck for the rest.

Thank you. Thank you, Choksey.

Hi, sir. Good afternoon.

Sir, firstly, if I look at the processing fee for the quarter, that has grown very well by 30% YoY to almost ₹1,000 crore in this quarter. Sir, what is driving this growth?

That's my first question. Secondly, sir, you mentioned about shedding some low-yielding corporate advances of about ₹35,000 crore in this quarter.

If you can just explain what do you mean by low-yielding advances? Is there some threshold that you are looking at?

What has happened eventually to these borrowers? Have they availed new loans from you at a higher rate, or they have gone to another bank, or have they gone to the bond market?

See,

processing fee, last year during the same period was ₹728 crore, and this year, the same period, it is ₹938 crore. That is around 27% growth is there.

When we are growing in the corporate loan book, last year, ₹4 lakh crore of corporate loan book was sanctioned. Wherever the sanctions are there or the NBDs are there, I think we make income by way of processing fee.

It is only because of the growth which is happening overall credit, and especially in the corporate loan book, we are getting the good processing fees. Second is the low-yielding advances, what we classify is around 7% below.

That is the benchmark we have created, that whatever the advances are there below 7%, I think in a time-bound manner, we should shed it. We are in a position to replace it and replenish it with the high-yielding advances.

With all those things, we are able to grow at 10%, despite around ₹40,000 crore low-yielding advances we have shed in the first quarter of this year now.

Understood, sir. Sir, and the growth in processing fee, coming back to that, do you think your ability to charge fees on these loans has improved over the past few quarters?

Yes, it has improved. What we are doing it, we have improved the turnaround time, and we are very mindful, and we have fixed up the accountability in the team now that the moment any proposal is sourced, let us have the decision immediately.

Yes or no, let us decide. That is one area bank has done very well.

We have created a tool for that, the TAT tool is there, where any proposal that gets emanated at any level, that has to be entered there, because that gives you the reference number. When the account gets opened in the system in the CBS, that reference number has to be used.

I think we are very guided way we are monitoring the turnaround time. I feel that if the decision-making process is good and if we improve that performance, I think pricing becomes a secondary thing later on.

Understood, sir. Sir, and the other question on low-yielding corporate advances, I was trying to ask is, what has happened to those borrowers?

Have they come back to you at a higher price, or they have gone somewhere else?

No, no, many of those people, that has been repriced, and we are able to sustain them. There are some ₹15,000, ₹17,000 crore we have lost it, and we have not given the rate which they were asking it, and we have allowed to exit from the bank.

Understood, sir. Sir, a couple more questions, data keeping mostly.

If you can share the AS 15 provision which you made during the quarter, and if you can also share the quantum of bulk term deposits outstanding. One more clarification, sir, this ₹25 billion or ₹2,500 crore of floating provision which you have created, is it fair to understand that this is deductible against the ₹10,000 crore of one-time provision you require for ECL?

Essentially your net ECL one-time provision would be 70 billion, ₹70, ₹75 billion? Correct, correct,

correct. It will be.

AS 15, this quarter we have made a provision of ₹490 crore. That, as per the calculation which the actuarial does, based on that calculation, it has done now.

The bulk term deposits number if you have handy?

Bulk deposit, I think we have 17% to 18%. Percentage-wise, I can give you.

One minute, I will get the detail. Bulk term deposit...

around 18%, yeah, 18% it is.

Understood, sir. Perfect, sir.

Thank you very much for answering all my questions.

Thank you.

Yeah. Hi, sir.

Thank you for giving me the opportunity. I just had a question.

You mentioned that this year this quarter, PSLC income was lower compared to same time last year. Is that the right understanding?

No, PSLC not income. In fact, bank used to purchase and continues to purchase from the market.

In fact, we are the borrower. We are purchasing it from the market.

Last year, our total operating cost which was spent on PSLC was ₹893 crore, almost ₹900 crore. This year, it has been reduced to ₹360 crore.

Okay.

It is expense of the bank.

That is the reason why other expenses is lower, right, on a YoY?

Yeah.

What is the reason for lower employee expense on a YoY basis?

That is also because of the AS 15 provision is ₹490 crore, compared to earlier provision of more than ₹1,000 crore. Otherwise, the salary structure and everything is constant.

Nothing changes.

Okay. Yeah.

Thank you, sir. Thanks.

Hi, two questions. The first one is on the monsoon side.

In case we actually end up in a very bad state of monsoon for this kharif season, what do you think could be the potential impact for us? Thank you.

I'll ask the second one next.

No, definitely that will be a big challenge on various aspects, not only in Agri. Agri-related income wherever it is there, I think that also will get affected.

Let us see that how it pans out in another two months' time, because last year also we had seen that monsoon came a little bit late in various parts of the country.

Yeah. Last year also, we had seen that monsoon was a little bit delayed.

Let us see that another two months' time, the August and September, how it happens. Definitely, if El Niño factor is happens, I think there will be some challenges on the various aspects of the economy.

Okay. Sir, on the MSME side, if you can help us to what is driving this 20% growth in disbursements for us, and what portion of this do you think could eventually, in case something goes wrong, then what portion of this could have benefit under ECLGS?

See,

first of all, the underwriting standards have improved in the bank. We have also come out with the digital cash flow-based lending, which got integrated with the various outside network.

Based on that, the assessment happens, and we are giving the loan now. That has brought lot of uptake in the MSME segment.

We know that this is one particular segment where the rough estimate done by the SIDBI, it says around ₹25 lakh crore to ₹27 lakh crore credit gap is there in this MSME space. There is enough room for every institution to grow in this particular activity, in this particular sector.

With our digital initiative and very good outreach activity the bank is doing it, mass outreach program in every quarter, 200 street clusters we conduct all this, where MD, ED, CGM, GM, everybody from the head office also participate. All those activities and the digital process have given a very good impact.

Last year, throughout the year, the growth was more than 20%, and this year also, the growth is more than 20%. We are expecting that we will be touching a growth of around 25% in the MSME segment.

Book is behaving very well. Absolutely there is no challenge in the stress or in the NPA.

Sir,

for us, what would be the mix between secured and unsecured within MSME?

No, it is most of these loans are through the CGTMSE coverage now. That is the best route to do it.

Because we have around 75% coverage now.

Understood. Thank you.

Hi, sir. Thank you for the opportunity.

I have three questions. Firstly, on ECLGS, if you can highlight the amount of disbursement under the scheme.

Second, starting this quarter, there is risk-based pricing in DICGC premium. What is the savings for us, and which bucket are we falling in?

Third, if you can highlight the LCR for the quarter.

First, I will give you the ECLGS. We have eligible amount is ₹40,000 crore, and we have sanctioned ₹15,856 crore, out of applications received ₹20,000 crore.

So ₹20,000 ₹40,000 is the eligible, ₹20,000 crore is the application received, sanctioned is ₹15,800 crore, disbursement is ₹12,335 crore. Through the DICGC fee and the restructuring which has happened, we are able to save around ₹200 crore.

We'd be in the A bucket, right?

Yeah.

Right. If you can highlight the LCR for the quarter.

One minute.

Actually the point is we cannot disclose the rating as such. The point is savings sir has discussed, and by disclosing this, you will be able to backward work out that rating which we cannot disclose.

Got it. If you can highlight the LCR for the quarter.

Yeah. What do you want, sir?

Sir, LCR number for the quarter.

LCR number. Yeah.

It is 135% was there quarter-to-quarter also. Last quarter...

Last quarter also it was 136%.

Sir. Thank you.

Good afternoon, sir. Thanks for the opportunity.

Sir, of your corporate loan book of about ₹5.15 lakh crore, could you just segregate it sector-wise, like how much is your exposure to steel, cement, or infrastructure sector like this?

I will give you. Infrastructure, it is 9%.

In

energy, it is 4%.

Then

metal and metal products, 1.8%. Roads and ports, it is 4%.

Food processing, 2%. Iron and steel, around 2%.

That,

yeah.

Sir. Sir, next question, actually could you just quantify the personal loan portfolio, and how much is the segregation between the salaried and the non-salaried class?

No, we don't give personal loan to any non-salaried people. That is the first thing with our policy.

Yeah. Our personal loan outstanding is ₹23,500 crore,

and

entire is the salary-backed loan now.

Okay. Sir, considering the fact that we are hearing that the IT sector is going through some amount of turmoil because of this AI-related things, has there been any slowdown in your disbursement to any IT employees or something like that?

No, we are not facing any challenge.

Sir. That's all from my end.

Thanks and all the best for the future.

Thank you.

Hello?

Yeah. Ha,

yes, sir. Sir, my question, sir, this quarter, quarter-on-quarter, profit profitability remains same, around 500 ₹5,200 crore.

What's the reason, sir? Provisions are being less.

Why the profitability has not increased quarter-on-quarter?

See, we have kept the floating provision of ₹390 crore. See, whenever we are in good time, I think we are mindful of providing for the future.

We know that from 1st April, we are going to have the ECL implementation. We are augmenting ourselves now itself that there should not be any challenge at the time of implementation.

This quarter also, ₹390 crore provision we have kept for ECL. That is one of the reasons why you see the muted profit quarter-to-quarter.

Absolutely, I think profit is on track, and ₹5,000 crore plus we are putting up the profit every quarter. There is no fluctuation is there in the profit.

I think you should appreciate that. If you put the graph, I think 50 quarter is giving now.

Yeah.

Okay. Sir, do you think this is a good idea, as no other bank is doing like you are doing for ECL provision?

This is hampering your share price, sir. Retailers are not able to communicate with the bank, every quarter you're doing this.

No other bank is doing this. They are making the ECL provision just as a one-off at the end of FY27.

You are doing quarter-on-quarter, and that is hampering the confidence of the investor, sir. Do you think this is a good strategy to just do like this?

It is a very, very prudent decision of the management. See, at any point of time, bank has to take a hit on the balance sheet.

You are aware of that. So 1st April 2027, if somebody is not doing it, they will have to provide that.

At that point of time, somebody has to take the entire hit. If I have the cushion, I am providing it so that in future there should not be any surprises.

See, we are very mindful that our operating profit has to grow continuously, net profit should grow continuously, and our efficiency ratio consistently should improve. If all those things are happening, and if I have some surplus, I am keeping it for that.

That activity will happen till 31st of March only, because anyway, from 1st April, it will get implemented. After that, you don't require such type of floating provision, because ECL will be in place then.

Achha,

okay, sir. Sir, what's the guidance for net NPA and gross NPA for the whole year?

Gross NPA, our guidance is less than 2.5%, and net NPA, it is 0.3%. Already net NPA is below 0.3, we are 0.28%.

Gross NPA also, last year it was 3.78, we have brought it down to 2.78% in the first quarter itself. All parameter-wise, if you see the guidance which you have given, we are on track.

Sir. Any stress in which sector you are seeing, any starting stress?

In your presentation see, energy is doing good, infrastructure. Sir, some pain in textile, chemicals, and steel is been there.

Is the early signs? Can you please just before my guidance?

As of now, we are not seeing any stress, and that is the reason if you see, our SMA book is one of the lowest in the few years now. 2.90% is the SMA book now for all put together, SMA 0, 1, 2, and from ₹1 to crores of rupees, this is the total outstanding now.

I think that exhibit that we are on a absolutely right track.

Sir. Thank you, sir.

Thank you very much.

Thank you.

My sincere gratitude to all my analysts and all my investors for reposing faith in our bank. We assure you on behalf of the entire management of our bank that on a consistent basis, we will improve our performance.

We will show a good growth, and we will show a good asset quality. I think overall, every quarter, you will find that growth, profitability, and improvement in the asset quality will happen.

Thank you very much.