Thanks, sir. Good afternoon, ladies and gentlemen.

I, Ajay Bansal, Head of Investor Relations, welcome you all for Union Bank of India earning con-call for the period ended March 31st, 2026. The structure of the con-call 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 con-call, 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 the current expectations.

These statements involve a number of risks, uncertainty, and other factors that cause 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. Bansal, and good afternoon and welcome to all the analyst, investors, and to this analyst call, analyst meeting.

We had today board audit committee and the board, and and the results are adopted by the board. We had a press meeting, and just now from press meeting, we have switched to analyst meeting.

Now as you know the current scenario, which was from January-February onwards, macroeconomic environment has been influenced by ongoing global conflicts and war-related disruptions and other things, but at the same time, the Government of India, RBI has come forward to put up a cushion so that the impact is not much of that. We have seen various measures the RBI has come and also various measures the Government of India has come, and which has well taken in the market.

Now similarly, if we come to Union Bank of India, all of you are aware that that initial, in the last September when we had a con-call and 28th or 29th of October, and 13th January we had for December quarter, and I think the third time we are meeting right now. From there, we have moved a lot.

We also placed our provisional numbers on 3rd of April to the stock exchanges. Initially, yes, we had a muted, and not many questions were also there from our analyst and press and investors that on the growth side.

Certainly, these last six months, we have made a good stride on the business front, whether it is a CASA, whether it is even a deposit or or a retail term deposit, I should say, or maybe advances on all retail and MSME and the large corporate. If you see the business of last six months, it has increased by ₹1,71,000 crore.

The growth was around 5. sorry, say around 6.56%.

If you annualize, it comes about 25% sorry, it is almost 13 13%. We could make it, and even our strategy was very clearly that we wanted to be more on a CASA.

Yes, CASA is increased. You can see around if you see half and half year basis, it is around 2.7 percentage which has been increased.

The second one is that when we talked about the retail term deposit, because we were purposefully shifting from bulk deposit to retail term deposit, put together, it is ₹1,10,000 crore we could garner. Here if you see on the the growth, the figures which I we will be giving to you, the global deposit certainly you may feel around 2.72%, but then around ₹46,000 crore we raised alternatively in which ₹25,000 odd amount which came we shrunk the treasury book so that it moved to lending book, number one.

Number two, on the refinance and other things, around ₹18,000, ₹3,000 infrastructure bond. If we add that ₹46,000 with the actual increase in the deposit, I believe there it gives ₹7.29 actually lakh crore, which is almost about 9%.

That is not, but the thing is that we are very cautious about our cost. We cautious about the NIM.

We are cautious about very clearly about profitability, and that is why we are working on the efficiency parameter. You may see that we are above 80 CD ratio, much comfortable; LCR 114, much comfortable; and NSFR also much comfortable.

All maintaining all regulatory and and the liquidity and other guidelines, we are on the good footing. Now this six months we could have a very good increase in business.

If quarter-to- sorry, quarter-to-quarter only if you take, it is 6.52. If we take global business, then certainly in totality, putting together asset and liability side, it is into four if you annualize, and then it is coming around 13%.

I think we could make it the headway in the last six months. With this background, we will come to the figures, and first of all, the Board of Directors have recommended a dividend of ₹5 per equity share, 50% of the face value, for year ended 31/3/2026, subject to the requisite approvals.

Net profit of the bank stood at ₹18,697 crores, and interest income of the bank is stood at ₹1,05,009, approximately ₹1.06 lakh crore. The business growth is around 5.78 YoY, wherein gross advances increased by 9.74.

Total deposit grew by 2.72% YoY, which for which I have already told, if we take ₹46,000 the additional one which we have raised alternatively, then the total business grew by ₹23.85 lakh crore. With this, the RAM segment which we were focusing, it is 12.56 YoY in which 16.75 growth in retail, 18.75 in MSME.

The domestic advances RAM advances is 57.49%. The gross NPA is reduced by 78 bps on YoY basis to 2.82, and net NPA reduced by 15 bps on YoY to 0.48.

The strong capital ratios, the capital adequacy CRAR at stood at 18.10, increased from the earlier one, and the CET-1 ratio, which is important, its own money, is improved from 14.98 to 15.69. If we take the return on asset and the return on equity, return on asset is YoY is flat, 1.25, the same almost levels, but if you take the quarterly, the last quarter we were at 1.35, this quarter we are at 1.36.

One more highlight which I would like to give to you that this time, apart from this, we have kept ₹700 crores of an additional provision, general provision sort of, just as a as a when good time is there, it is always better to keep aside. This ₹700 crore is not impacting either the net profit, or it is impacting the impacting the the capital.

This we have kept, and depending upon the situation, whether ECL framework comes or whether or whether West Asia or anything, any eventuality. We had, and last time our profit was ₹5,017 crores, and now it is better much better than that, and secondly, the dividend also last time it was 4.75, this time it is 4 5%, and if we take the payout ratio, it is 20.61 or 65 levels.

I think we have maintained all, and with this, I I hand over to the coordinator for for Q&A for all of us. Thank you.

Thank you for giving me the opportunity. First, congratulations Pandey sahab and the entire team, Asheesh sir, for a very good quarter, or rather I would say, the last six months have been good for the bank comparatively as compared to the previous four quarters before that, and at least to a great extent, we have covered as far as the credit growth is concerned, 6.07% only in one quarter and 9.74% for the whole year, respectable figure.

Having said that, sir, but on the deposit front, even though in this quarter we have performed very well, 6.87%, but the overall for the year, the deposit is 2.72%. Now going forward, though presently we are good at CRAR, but going forward with the kind of the growth, I would like to know the credit growth target also, as well as how are we going to match the asset liability if our deposit growth do not match with the credit growth, sir, going forward?

Okay. Thank you, Ajmera sahab.

As I said, this time also, if you see the 46,000 which I we Actually see, let us understand banking that we raise resources, and we deploy resources to productive investments. We invest it, whether in the treasury or in the loan book.

Then we harness the interest income and the fee-based income related to the transactions happening. Now coming to that, if you see, we have raised ₹46,000 crores.

Under in which the treasury, means this I am saying not raised, but the resources which we have tried to build. Our treasury book was reduced by ₹25,000 crore odd, which we shifted.

If you see the last year, the March '25 levels, at that point of time, the the CD ratio was around 77. Now it is around 3.5% up.

Now the question is that whether the CD ratio we are very, very comfortable, comfortable in the sense very nicely regulatory, but at the same time, very efficient above 80 levels, number one. Number two is that our LCR, NSFR, all liquidity ratios are very comfortable range.

Comfortable in the sense again, very efficient, because last time our LCR was average 123, but this time it is around 114. We could reduce by by 10 basis point on the LCR, which was on the excess side.

I think that this what was the challenge, not the total deposit, but the challenge is on the CASA front and on the retail term deposit. Now if you see these two figures, as far as Union Bank is concerned, we have made a very good stride in that.

Now put together, I think more than ₹1,10,000 crore which we have increased during the this period. Now the CASA, which was because see, again if you see YoY, then certainly at March '25 level it was more, and September it was only 32.51.

From 32.51, we have come up to 35.21. So 32.51 to 35.21.

There is increase of 2.7 percentage points, I'm not saying basis point. That is the first key thing which is very clear from the the working which has been done by the entire team of Union Bank, that we have tried and focused a lot on the CASA, and we could achieve that.

That is point number one. Second is, we were very cautious to increase our retail term deposit because that is stable, point number one.

Point number two, it has an LCR impact also. That is the reason during the entire year now, if you see our bulk deposit, we have shed off by ₹70,000 crore.

That is a very clear thing why how we want to churn. Basically, exactly what we are doing is just churning a portfolio towards a better one.

If you take the the cost, if I take this 70,000, then certainly I can say that that they must be having the weighted average above seven. When we talk of, converting this to retail term deposit and CASA, my average cost would be somewhere 4.5 or maybe 4.75 levels.

Where and again, now I am just linking this with the February somewhere '25, where from there and until now the repo has been reduced by 1.25 percentage points. If you see the the NIM of our bank, which was 2.91, has right now at 2.70, that is only 21 bps point.

I think this is the only thing which is helping us to, and we always say that we want to defend our NIM, we want to defend, we continue saying that. That is what we tried, but then I think the last moment when there was an increase in the G-sec yield and there was an increase in the the deposits as well, and that was the reason.

Then from here onwards, and if you see the last cut which has happened in December, the entire 50 basis basis point was conveyed for the entire quarter. Then also our if you see the NIM, from 2.76 to 64, it is only 12 basis point.

This is the reason, that cautiously we worked upon each parameter of the balance sheet, each parameter of our asset and liability. Even on the credit side, though you are saying 9% good, but then there is one thing which is not coming forth is, on the large corporate, we have ₹35,000 crore of IBC IBPC, which is zero now, number one.

Number two is around ₹30,000 crore we had on which is at below 6% levels, which is almost is not there. Now somewhere it has churned up with the new business.

When the old has gone out, somebody new business has come. Now if you add that, the team has worked, and team has worked well, and actually if you see these figures, we have worked better than the industry average.

Yes, the figure is figure. If you see the the year-on-year basis, certainly you see somewhere this dip, but then we are working upon the average, whether it is CASA, whether it is deposit, whether it is advances, whether it is RAM.

Now that's the reason our profitability has continued towards an upward trend, and that's the reason that even recovery we are trying hard to improve, and that's the reason that we are having the profit of more than ₹5,300 crores. Even then, we have kept ₹700 crore aside for, anything, contingency or anything.

It is not like like, any any any dent or any suspicion on the book. We have already given in our presentation that our 90 more than 95%, 99% I think is a more than 700 CIBIL score in retail and other portfolio, and more than 95% in BBB and above.

I think that gives a color of the the business also last six months which we have done. I think this this background, I could I think I could answer that going forward, you can expect the industry trend, we will be meeting it, and we would like to be better than a bit more than that going forward in the coming years.

Can we expect it 13-14% growth in the credit, sir, in the FY '27?

Certainly. I think we are on that line.

Yes.

Sir, now coming to the profit and loss account, our profitability, you have clarified that the profitability would have been much higher, but for the 700 other standard provision which you have done, which according to you is just to take care of any provisions for ECL or other things, and nothing is to take care of any known account. That is good point well taken.

Sir, our one other reason of the profit being little high is there is a reduction in the employee cost in this quarter of by about almost about ₹600 crore. The employee cost reducing in this quarter, which is also actually a March quarter, what could be the reason, and going forward, are we going to maintain that 3,700-800 per quarter, or is it going to be lower in the coming year?

Because ₹586 crore employee cost is lower in this quarter. This, along with another point is that the operating expenses have gone up in this quarter by ₹522 crores.

Offsetting each other to some extent. Another point is that income going up is there is a handsome recovery from the written-off account, a very good recovery of ₹1,567 crore as against ₹667 crore in the last quarter.

Can we have the individual explanation or some details on these three, four numbers on the profit and loss account so that to have a clear idea for going forward where do we stand?

Ajmera sir, namaskar. Nitesh Ranjan.

Sir, as you observed, there is a reduction in my operating expenditure, particularly establishment expenditure. This is due to the discounting rate factor, sir.

Last year, 31st March 2025 discounting rate was 7.07, and this year it was 7.87. Due to that, the overall liability we estimated earlier was provided higher in the earlier quarter, and due to that, the final liability which were on a lower side.

This was the impact of establishment expenditure, sir. Now as far as the TWO recovery, which is close to 1,600 in the quarter as compared to ₹666 crore in the last quarter, as sir we have that Sterling Biotech group account, sir, which was settled during this quarter, and the income of ₹658 crore was booked during this particular quarter.

These two factors and what was the third one, sir, you asked? No

sir, employee cost has reduced, and operating expenses have increased. Other operating expenses.

Other operating expenses have increased, yeah.

Sir, in Q4, this trend is always there, sir. Operating expenditure, the budget which was allocated and the provisions which are made in the year-end is always there is a gap of ₹200-300 crore.

It is always there in Q4, sir. This is a normal trend if you look at the quarter-wise numbers, sir.

All right, sir. Sir, now looking at the current geopolitical situation and the West Asia war situation, Pandey sahab, how do you see, is there any stress already started building up, or in this first quarter, do you feel that there will be some stress?

Because even in this quarter also, the fresh slippages have increased to 2,023 as against 1,660 in the last quarter, and secondly, even though SMA-2 numbers have come down, but SMA-1 numbers have almost doubled. Do you see that any kind of this aberration, this war effect may be there in this coming quarter or the running quarter?

Sir, we actually, we are very closely monitoring the entire West Asia crisis, this all these things. As such, we have not seen anything very unusual up till now.

We are also monitoring what is the inward remittances flow last year and this year. We are also monitoring import numbers and remittances, total remittances, import remittances.

We are also monitoring where it is hedged, not hedged, and other things. What we have seen is that there are two things two, three things are impacted, like one is the energy sensitive sectors where gas, commercial gas and all.

Those particularly industries, they suffered a bit, like Morbi and all, and few more places are there which were actually based upon the energy these energy sectors. The second one is that remittance overall also has has come down.

Up till now, we have not seen anything, and at the same time, when this all these things happening, the let me share with you, the Government of India and the Reserve Bank, both have come forward and tried to put a cushion with the initiatives which they have taken. Now we are in that, and even let me share with you, we have a data also which I can part with you on the the scheme, JanSamarth portal we got around 306 this I am saying that status of CGSE application, that is Credit Guarantee Scheme for Exporters to provide 100% credit guarantee coverage.

In that, 210 are sanctioned and 180 is disbursed, around ₹700 crores. On the other side where, the RBI also came with the trade relief measures, extension of PC, extension of post-shipment, and conversion of accrued interest.

We have received only five sorry, applied 59 people only applied. 35 applications in PC extension, post-shipment only three, and FITL which is only 40.

We have not seen anything. The preliminary figures what we are observing that as of now is not, giving any very adverse or very critical signals to us.

Coming to SMA, coming coming to SMA,

Hello? Coming to SMA, actually from SMA-2, we have moved a lot portfolio to SMA-1, I think it is a better signal that from SMA-2, we have moved to quite a lot by recovering the installment, and we have moved to a better proposition of the stage two, like one actually which is 60 to 30 to 60 days.

It is a better proposition, and over to you.

Yes, sir. Thank you very much, sir.

Hello, good afternoon, sir. Sir, I had a couple of questions.

Firstly, that our corporate loans have grown 9% QoQ, and then if you see the sector corporate the the the certificate of deposit data, which is available for all banks, then our CD mobilization was also very high compared to other banks during the quarter, and our LCR is now amongst the lowest, and margins have also fallen more than what we had guided for.

What would be a what would be a

what would be the strategy going ahead? Would you continue to pursue corporate growth even if it's low yielding?

What about deposit mix? Given where LCR is, would you rather focus on margins, or would you from now on focus on growth if you have to choose one of the two?

See, we are choosing growth with quality, number one, and with profitability. Now I think in my initial address, and I think when Mr.

Ajmera was asking, I have made it very clear that though you cannot see those growth in this numbers, but ₹35,000 crore of IBPC at a very lower rate which we have, shed it off, number one. Then around ₹30,000 crore, almost ₹60,000 crore, ₹65,000 crore of such advances which were low yielding, otherwise how we would have shielded the entire NIM, which was 2.91 to 2.70, which is only 21 basis point reduction is there?

It would not have been possible if in case what you are saying it would have been correct. We have actually tried.

Now coming to the CD, the CD is almost in the same range which we had the earlier. Yes, you have seen like, the the CDs which are raised, but then there were maturities also, which has to be replaced.

For a bank, we have an internal sort of a ceiling limit where we keep, CDs and FDs and other things in a same fashion. That is the reason when we have gone with the the CDs, we have gone within that range, and that was actually we were getting a better rate during those days.

Otherwise, actually if you see, we have mopped up most of our requirement during the January-February onwards, not much in the March. There we could get, otherwise March was really heated up market if you take the deposit rate or CD rate.

That is why we are very cautious about the NIM, about the profitability, and about the quality of the asset. Like going forward, we would like to maintain our our, the the the around 13 to 14% credit growth, and around 10 to 11% of And also one thing, when you asked about the we have raised in between, I am sure you must be aware, around ₹3,000 crore of infra bond in between.

That has also, it is a part and parcel. Actually, the subscription was very huge, but then we were cost-conscious, we have not gone beyond a certain acceptable range, and we have cut off at 3,000 only.

Probably in the coming year, once everything stabilizes, we will be finalizing internally, going to the board and AGM and other things, and then we will be coming up with the entire capital and bond issuance and the plan with the market. I think it was like, growth certainly we'll like to grow industry plus something, number one.

Profitability even in last six months, sorry, quality, you will see that we are continuing the same quality of the whether corporate book or a retail book, which we are given in our investor presentation, on 700 and above. Though the bureau says 680 and above is a prime customer, but we have continued with 700 700 and above.

The BBB and above also we have given the figures. We are continuing that.

We also have around 50 to 60,000 of a book pipeline with the us in the large corporate. I think with that, we are of sure of going forward, but then we would not be compromising on the quality and also on the profitability.

Got it, sir. Sir, any margin outlook you would have for Q1 and for the full year?

See, now we have seen the last MPC also, and the stance has been continued in the in the same levels. Now keeping in view the macroeconomic scenario and and the stance which has taken, if we continue like this, last I think December midway somewhere, this 0.25 cut was there.

Which has if you see has not been reflecting in our figures, though around 53, 58% is based on the T-bill and the repo rate benchmark. Even then, if you see the NIM, it has been quarter-to-quarter I am saying, it has been from 2.76 to 64, only 12 basis point, not the entire.

I think there from here, keeping in view the same thing, we expect that we we will be moving positive from here, and we'll be defending this point of level.

You will be able to maintain margins at 2.64?

We would like to even better it.

That would be driven by, sir? See,

if you see very clearly that in the last quarter also, we CASA is increased from 32.51%, which was our CASA percentage in the month of September, and which have increased to 35.21 as of March. Certainly when you shift bulk deposits to the CASA and you shift your bulk deposit to retail term deposit, and you can see the growth in both the factors, both the parameters.

Certainly it will help you to build build build on the on the positive side on the NIM. Then not only this, but there are other factors also, when you better talk, negotiate, discuss, and you make a relationship management, the quality of asset you write.

Those things also help you, and what we have underwritten the quality is there. Certainly, the the the the rate and other things which we were charging, I think that is also helped us.

Going forward, we will be banging upon this and the deployment of funds in most most effective way. I think that is the main thing which you'd like to tell.

Got it, sir. That's very useful.

Also, if you could explain the increase in MSME slippage in the fourth quarter, and if that's just a one-off and nothing and, how it will pan out in the next few quarters?

I think if MSME you see, the the almost it is sort of a flat only, I think from 24 24 to something levels, I think some 10, 15 bps only. It is almost flat, but then there were like, the few cases only which has impacted.

Otherwise, up till now, whether it is a West Asia or in general our book, we have not seen any much of the impact on on the our book and quality. Going forward, we we actually we would like to reduce, with the recoveries which are already NPA in either of the these four sectors, sectoral which you have asked, and that is why we have built a very team even now centralized, that even below ₹1 crore sort of in portfolio, we will be monitoring from the central office level.

I think the the core recovery, I would talk about, we will be trying to improve it much ahead much further from here onwards.

Sir. Thank you very much.

All the very best.

Hi, good afternoon, sir, and thanks for the opportunity. Sir, my question is also broadly similar.

I heard you that you said said that, we'll focus more on growth along with quality and profitability. The profitability focus is clear.

We have defended elevated RoA, so that is well appreciated. Sir, what I wanted to know is when you assume charge, Union Bank was one of the few banks which was not too much concerned on the loan growth, but they were depend they were defending NIM or consolidating liability franchise, and hence NII was growth was very miniscule because you were not growing as much also.

Then you put a shift in the loan growth trajectory, but still the NII growth is, similar. Third quarter was a good quarter in the sense that NII increased 5-6% QoQ, but this quarter again while the growth has been 6%, but NII growth has been flat.

Is there any thought-out strategy, or this is just market force driven that you will keep going on the loan growth on quality, and the NII outcomes will be dependent on the on the on the market competitiveness, or you have some visibility on the NII growth also, sir? Thank you.

That is the first question.

Actually you would like to improve. What has happened, no, around 25 basis point there was a there was a cut in the I think in the midway of the December, which has conveyed to convey along the entire benchmark rate linked loans.

That is what you have seen a bit dip on the on from 2.76 to 64 on a quarter-to-quarter basis. That is where you can you are seeing flat, but then we are doing two, three things.

One is the we work upon the average our advances and the average figures on both asset and liability side. That's the reason we are inching towards that it has to be better than the earlier ones.

I think there we are thinking that how to build the the NII growth also, and also to keep the quality and as well as the profitability intact. It is not like, that we are maybe writing underwriting maybe good quality, but maybe underwriting underwriting a very low margin loans, or maybe the second one if I would say that we are underwriting a bit lesser one and then charging more.

No. That's why I said that the growth, yes, that is the first key thing, but at the same time profitability and and the quality, we would like to maintain and grow in this way.

Then going forward, we would like to have, because as of now, everything is settled. Like till, we have a further scenario on inflation and further scenario on rate cut and other things.

From here, again we'd like to defend and move it better, that you will be seeing in further quarters.

Sure, sir. Sir, you have given a decent disclosure on the bulk deposit, right?

On in the December quarter or in the March quarter, there was a lot of there was sharp spike in the bulk deposit rates. Could you quantify, sir, what was your blended bulk deposit rate?

A ballpark number will also do. Has that started to come off in a significant way?

See, if you see the, like you know when I when we touched upon the last quarter, then I said that treasury we have shrunk by I think I told around ₹15,000 crore or so. Now you see, it is ₹25,000 crore.

What happens, no, that you start trying to trying to reallocate the portfolio. It is shifting from one to another, and in between the portfolio also you try to build in from low to better yielding portfolio, like IBPC which we have shed off and other things.

What we did that that certainly when you are having a good growth in the in the in the advances side, certainly you need to raise deposit, we raised in between ₹3,000 crore infra bond and the other things which I shared with you. Along with that, we needed deposit so that, we are a comfortable range, a good range, on the on the LCR and NSFR and CD ratio.

That was the key thing in mind, and that is why most of the deposit we raised during the January itself. That we knew that probably going forward in the month of March, probably nobody was aware that how it will behave, market will behave, West Asia crisis, how it will deepen and not deepen, and the other issues.

Then you can tell You can tell the blended rate. Blended rate for the quarter was a little less than 7, around 6.90 or so.

Around seven, we can say.

That has come down significantly, sir, as we speak?

It is all depend upon the market. Currently, the April month, there are not lot of activities happening in the market on the CD front as such.

Current level are little lower than the March that is there.

Okay. Sir, the reason why I was asking was this, if I tally, let's say, your bulk deposit rate on an average at 6.90, our yield on advances is 7.98, which is the total.

The corporate would be even lesser, right? Does it make sense to to to do this corporate lending when we have to raise bulk at 6.90 and maybe lend at 7.50, 7.20, 7.30, I don't know which whatever the lower than 7.98 number, because that that that increases absolute amount of NII, but depresses the margin.

That is the question there.

I think I would give you a very good, the scenario, not scenario, the actual scenario. See, you are thinking that entire which is raised at 6.90.

Since you asked what is your blended rate on the bulk deposit, you asked only the bulk deposit, we have told only on the bulk deposit, not the entire. Now there is a CASA, and the CASA and retail term deposit increases around huge, I think more than ₹1,10,000 crore.

Then if you see, the the blended cost to me on that must be around 4.7 levels. This is, I am saying, incremental.

I am not saying it is a total. Now there is a total huge portfolio, my my CASA itself is stands around 35.21.

Now if you add retail retail term deposit how much percentage basis of the total deposit?

RTD plus CASA is 79%.

79%. My RTD and CASA is around 79%.

Certainly, I save the cost there. To maintain the growth and maintain everything, it has to be blended with the with the fixed deposit.

Maybe sometimes in that, there will be different scenarios. There may be between 3 to ₹10 crore, because retail term deposit we say only below RBI guidelines of below ₹3 crore.

Then 10 to 50, now there will be various deposits, Jai ji, where, which are LC margin, BG margin, and all those for 3 months, 9 months, 10 months period, 1 year period, which may be at 5.50 and around 6%. I think the how you correlate to the NIM is on the total portfolio, and that is what I just wanted to put forward, that this particular quarter which we took from 1st of January to this, this is somewhere coming the blended rate, but the the the the deposit which we have shed off, around 70,000, then again it was a different rate, but the March particular piece which we had after maturity was around 7.70 levels as a blended rate.

Right. Understood, sir.

If you can share, sir, the few data points if you can help with the loan mix by benchmark: EBLR, MCLR, T-bill, and AFS reserves, and how much is the change versus last quarter?

Which reserves?

AFS reserves.

I think 58% is,

hold

on,

yeah. EBLR is 54%.

You can give right now.

54% is EBLR.

Mundra ji, 54% is my external benchmark linked portfolio, sir.

Sir, T-bill and MCLR is how much, sir?

36% is MCLR.

Sir, AFS reserves? AFS reserves movement?

What is AFS reserve? Can you clarify AFS is what exactly you want?

Sir, under this new investment classification, the MTM hit on AFS has to be adjusted from the AFS reserves.

Got it, got it. Mr.

Karra, he will give, yes.

From December, it was around 800 or so increase in AFS reserves in this quarter.

Sorry, we have seen an accretion, sir, is it?

No, no, it's a it's a negative figure, sir.

All right.

It is a reduction. It is reduction of ₹800 crores, correct?

Yes.

Yeah. How much is the outstanding amount now, sir, is in the balance?

Outstanding is -1,008.

Sure. Sir, I have few questions, if you want I can ask them now, or I can come back in the queue.

You can send us

Sir, I wanted to check this LCR new guidelines. Have you calculated the new LCR under the new guidelines, as in what would be your LCR, let's say, 1st April, or, what is your sense on on the

We have we have calculated, and the negative impact is around ₹14,000 crore, and positive impact is around ₹21,000 crore. So ₹7,000 crore is a positive impact.

This would mean

how much, sir? Thank you, Mr.

Mundra.

Yeah. Hi, sir.

Thanks for taking my question. Firstly, I wanted to ask, just to clarify once again on NIM, is there any one-off or seasonality or any such thing in the margin quarter-on-quarter, or you're just saying it is mainly the mix and the December rate cut?

It is basically December rate cut. The impact is much lesser than the rate cut.

Okay. Sir, one thing I can see is the interest on Reserve Bank of India balances, that is down.

That is mainly the decline in LCR, is it? Just clarifying on that number.

That number is down ₹500 plus crore on a YoY basis. Your interest income.

I think I am not very sure on that, sir.

I'll take that offline, sir. There is no impact of the RBI NOP circular at all for you, either on interest or other

income? Actually we had kept ourselves very cautious during this disruptive times.

We were not taking long-range calls. Our exposure was only 30 million, we were much below 100 million what that circular was.

Zero impact on that.

Perfect, okay. Sir, and then on the PSLC and also your credit cost, since I'm just clubbing two questions together.

Sir, on the PSLC, see this year has been soft PSLC fee income, but you used to accrue close to ₹1,000 crore, right, on an annualized basis. Should we get back to that run rate next year?

See, that last time actually we had a complete period of that. That is why the amount is also ₹800 plus crores.

This time, we started PSLC in the month of Q3. We could book I think ₹120-80 crore, something like that.

Then

this quarter, it was very hardly any period left for 31st of March. We already booked this time also, but then the total amount was less, so that is the reason, because number of days that functionality is there.

That's the reason, but then we would like to continue on that.

We should be able to do ₹1,000 crore plus, which was your number say last year?

Right now it is not, we will assess it because the entire portfolio has to be seen on SMS and other things, and then we will take a call. Yes, we would like to deploy this year also.

Sir. Perfect.

Lastly on credit cost, I think very good numbers there. So 23 basis points for the year.

Do you think it is sustainable, right?

Right now, coming to the credit cost, we are not seeing anything very adverse or because of disruptive situations. If you see the credit quality, the SMA is same level at 3,800 levels, SMA-1 and 2 of the entire portfolio.

Also if you see ₹25 crore and above, almost more than 95% is the BBB and above. If you see the prime customer which is taken 680, but we have taken 700 our CIBIL score, TransUnion and other bureau score, which is around 99%.

I think the quality-wise this score metrics and the other way, the quality is in front of you. We are not seeing anything go right.

Then we always say for comfortably because we don't go aggressive, it is better to get the better figures. Then we say around 1% we keep as a in general guidance for the year.

Sir. This ₹700 crore has nothing to do with any pressure you are seeing that you have made this?

It is primarily for ECL transition,

is it? Nothing.

Maybe see, always the regulator and everybody says that in good times if you have money you keep aside and save it. Simply we have kept aside, not in profit, not in capital, and see, it may not be used for years together, absolutely.

Then it is kept as a cushion. It is kept because other than that also, our net profit is in comfortable range, and we are giving dividend of 5% that is ₹5 per share, 50%.

Then I think that is the reason we have kept it aside for strengthening the balance sheet of the bank.

Perfect, sir. Thank you so much and congrats on the quarter.

Thank you.

Thank you for the opportunity, sir. Just one question: what level of LCR are you comfortable with?

If it falls below 110, are you okay to operate at that level?

See, actually what happens, no, the Reserve Bank guidelines is of 100, and then board fixed guidelines are there for each and every bank. For us also, there is a board fixed trigger.

First is trigger, and then the breach. See, there are two things we would not like to breach these two figures.

We are about that, 7-8% levels. We actually on a rolling basis, we calculate for next 1 or 2 months, and then we take the deposits and raise the resources accordingly.

So

Sir, how much would the ₹7,000 crore add to the

₹7,000 crore add to LCR, I think 2-3%, how much?

₹2,200 crore is 1%.

Around 3% it works out for an LCR for our bank.

Which means that the pace which you're consuming, if you're not able to match deposit growth in a quarter or two, you'll have to slow down on loan growth?

No, there is no question of not matching the deposit growth. See, what happens, no, suppose if you have a money in your pocket, why you will go to ATM and withdraw further?

You will first use what you have in your wallet and what you have in your pocket. The same thing we did.

That is what actually since beginning we are sharing with all the press and this that see, I will give you only four figures. My March '25 CD ratio was around 77.

Now we are at 80.5 or some levels, it means 3.5 up, number one. Number two is that our LCR requirement was a bit more earlier because we have actually seen each of the items, and then we could move from LCR the items like financial institutions, runoff factor was straightaway 100%.

We have moved from financial to non-financial, even if we have taken the bulk deposit. That has reduced our LCR, that has moved to loan side.

Now the third comes the treasury. Now you can see in our presentation also, non-SLR portfolio is reduced.

Certainly we have moved on a better opportunity on the loan growth. This is the third point.

Fourth point is, then again you have a infrastructure bond and other avenues, we have raised 3,000 crore. Then again we have avenues of refinance wherever possible whether in our portfolio.

The thing is that suppose now with this 2.67 growth, there is no breach in LCR, there is no breach in NSFR, and then my CD ratio is very good. Now suppose listening to all, if we increase by 5% basis point and we take ₹50,000 crore, where it will go?

It will straightaway impact my CD ratio to 74%, 75%. The question is very, very simple that when need be, take it.

When need not be, I think but now again you see, in the third quarter, we have not taken. We have shed off much more.

In fourth quarter, we needed because of the growth happening in credit side. Though we have taken ₹3,000 crore infra bond because the growth was good, which is evident in our figures in the Q4.

Then we have generated. Actually, there are three things.

One is the you offer the rate, people have offered even 8%, 7.90 and above also during the Q4, they have got it. Then we tried to take the deposit during January-February itself.

Then we continued because we were very confident on the retail term deposit growth and the CASA growth, and we could achieve it. Rather than going to bulk deposit, we could achieve this side of the story.

Now going forward, this cannot be every time. Certainly you will see the growth in the total deposit.

It may come from CASA, it may come from retail term deposit, and it may come from the bulk deposit. I think in the going forward, see, every time you cannot manage the book and allocation and other things.

The thing is that at least first, are you aware of from where it is raised and where it is deployed? Now with this, that is why the last March '26, you can see we have raised the deposit, we have raised the CDs.

We have raised the resources.

Thank you, sir. Just to reconfirm, you are 7 to 8% above your comfort level on LCR and

Yes, 7 to 8%,

yes. Very much, sir, and all the best.

Thank you.

Hi, team. Good afternoon.

Sir, firstly on this prudent provisions which you have created, can you just highlight that after the creation of these prudent provisions, where are you on the ECL shortfall number now? Last quarter, you had shared a number of about 42 4,200 crores roughly.

That is one.

We are on the same, ₹4,300 crore, and that is that last time also we said we will be comfortable on that, and whatsoever guidelines come at appropriate time, we will decide in the board. Accordingly, we will go ahead with the approach.

Then since this figure is with us, this amount was with us, we thought of keeping aside, maybe ECL, maybe any other for circumstances where as per the regulatory guidelines and as per the board decision, we would like to then use it. Otherwise, we would like to keep it as a strengthening of the balance sheet.

Understood, sir. After the creation of this ₹700 crore buffer, the ECL shortfall number should decline ideally, right?

It will not, because this is a separate, no. We have made a very clear it is not impacting your Tier 1 or Tier 2 or capital or a net profit.

It is just simply kept. It is we have just kept it for any eventuality, any circumstances, like that.

Understood. Sir, just one follow-up on that: what is the total outstanding buffer of standard asset provision that you're carrying now?

Total standard asset provision is close to ₹3,000

crore.

Please go ahead.

Yeah. Sir, second one on the sorry to harp on the loan growth and margin side, if I look at the credit rating mix of your corporate advances which you have shared on slide number eight, it seems like the share of A and above advances has increased by 2% QoQ.

It's clear that you have not only grown the corporate advances, you also grown in better quality corporate advances. However, this seems to be different from the stance which you had conveyed last time that you are shedding lower yielding advances.

How should we understand this change, sir, this shift in stance? What caused this shift?

I could not get it, actually. See, low yielding means we had IBPC of around ₹35,000 crore, which is not there.

That is point number one. Then we had as when you sanction, you have STL, you have long-term loans, you have short-term loans.

Then sometimes you will give for 7 days, 10 days, and it will range amount 5.50 to depending upon a corporate, and to 6, 6.10, 6.25. There we have reduced, these two we have reduced.

We have now tried to convert short term into long terms and other things, and from that we have to build in so that we become more profitable, but at the same time not to compromise on the quality.

Okay. Sir, to just ask the same question differently, would you look to shed some more of your lower yielding advances going forward?

It is a regular phenomenon, and we are doing day in, day out, and wherever we are in a position to get the opportunity. That is the reason that actually we have sanctioned more, disbursed more, but in the portfolio, since churning is happening, you will not see that much big growth there.

Then the things are on good, and certainly it is a normal every bank will do wherever possible.

Understood, sir. Just one last clarification.

Do you deduct the dividend payout from the net worth in the March quarter itself?

Yes. The remaining portion is only taken in net worth.

Sorry, come again, sir. I could not hear you.

The amount of dividend proposed was around 3,800 we have deducted, and remaining amount is only taken into my capital portions.

Understood, sir. Thank you very much.

Those were all the questions from my side.

Hi, sir. Thanks a lot for the opportunity.

Sir, can you just let me know what is the portion of the MSME book which is covered under CGTMSE?

We'll come back to you on this, sir.

Sir. My second question is, sir, while large part of the growth within MSME would have happened in second half of Feb and March, what were the conversations with the borrowers because at that time the war had already started, what were the conversations in terms of order inflows or cash inflows at that point in time?

Yes, sir, that's my question.

See, always there will be that there will be some people who are asking for some extension of bills which has been sent. Because everybody was only the war was only developing actually.

Everybody was also waiting for that. Presently the discussions are going on.

Wherever it is there, they are also handholding them, and we are trying to support those MSMEs with higher period for bills. Those things we are doing it.

Sir. Just my last question, have you changed any of your risk filters in March for the MSME?

No, we have not changed.

Sir. Thanks a lot, sir.

Thanks for the opportunity. Just a couple of things.

Firstly,

Is it better now?

Firstly, what is our return-off pool now? If we see this year, the recovery from return-off account was ₹4,000 crore.

Will this number sustain next year as well?

See, return-off pool if you're looking at it is around 71,000 crores actually, and most of them, around 45 to 46,000 are under in the NCLT it is there pending. As regards recovery in return-off accounts, we are trying it, whatever it is available we are just seeing that, and most probably the same trend will be continuing in the current year

also. Whatever we have done this year is sustainable next year as well.

One last thing is, whatever you have communicated for throughout the call, is it fair to assume that kind of the NIM has bottomed out in this quarter, and with 13-14% loan book growth what we are targeting for next year, the NII growth will be similar to the loan book growth?

Definitely our endeavor is the same.

We can grow our NII as well in line with the advances growth, because this quarter it was lagging.

Yes. It was lagging because it was conveyed from rate cut.

Considering that as of now the rate cycle is let's say a status quo, our NII growth should be similar to the advances growth.

Yes.

That's it from my side. Thank you.

Thanks to all the analyst participants on this call, and certainly we hear to you a lot. We work upon your questions, and even if you can see what sort of things we are doing depending upon the queries and wherever you have a concern, and we try to inform you what we have done and how.

That's the reason that we think of keep on improving day by day, week by week, month on month. That is the totally endeavor, and thanks to all of you for participating in this analyst call.

Yes, going forward, we would like to better it like we said in the earlier quarters, and we continued so. Going forward also, we'll continue to make it better.

Thank you.