Good evening, ladies and gentlemen. I'm Pawan Kumar, General Manager, Performance Planning and Review Department of the bank.

On behalf of the State Bank of India, I'm delighted to welcome the analysts, investors, colleagues and everyone present here today on the occasion of the declaration of the quarter one financial year '27 results of the bank. I also extend a very warm welcome to all the people who are accessing the event through our live webcast.

We have with us on the stage our Chairman, sir, Shri C.S. Setty; our Managing Director, Corporate Banking and Subsidiaries, Shri Ashwini Kumar Tewari; Our Managing Director, International Banking, Global Markets and Technology, Shri Rana Ashutosh Kumar Singh; our Managing Director, Retail Business and Operations, Shri Rama Mohan Rao Amara; our Managing Director, Risk, Compliance and SARG, Shri Ravi Ranjan; our Deputy Managing Director, Finance, Shri A.S.

Paul. Our Deputy Managing Directors heading various verticals and Managing Directors of our subsidiaries are seated in the front row of this hall.

We are also joined by Chief General Managers of different verticals, business groups, chief General Managers and other senior officials of the circles and various offices are connected through our live webcast. To carry forward the proceedings, I request our Chairman, sir, to give a summary of the bank's quarter financial year '27 performance and the strategic initiatives undertaken.

We shall thereafter straight away go to the question-and-answer session. However, before I request Chairman, sir, I would like to read out the safe harbor statement.

Certain statements in today's presentation may be forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances.

Actual outcomes may differ materially from those included in these statements due to a variety of factors. Thank you.

Now I would request Chairman, sir, for his opening remarks. Chairman sir, please.

Thank you, Pawan. Good evening, ladies and gentlemen.

A very warm welcome to all of you, and thank you for joining us for today's analyst meet following the announcement of our financial results for the first quarter of FY '27. We greatly value this interaction as it provides us with an opportunity to go beyond the reported numbers and discuss the strategic direction of the bank, the operating environment and our priorities for sustaining growth over the medium and long term.

The first quarter has unfolded against a global backdrop marked by geopolitical uncertainty, evolving trade dynamics and continued volatility across commodity and financial markets. Despite these external challenges, the Indian economy has continued to demonstrate remarkable resilience supported by strong domestic demand, healthy investment activity, robust services growth and a well-capitalized banking system.

Credit demand has remained healthy across key sectors, and we continue to see broad-based opportunities for sustainable growth. As India's largest bank, our approach has always been to continuously evolve while balancing growth with resilience.

As we continue to revisit and transform our internal operations, we have further simplified several customer-facing processes, including the launch of our digital re-KYC journey, which enables eligible customers to update their KYC seamlessly through a digital interface. We continue to strengthen the YONO ecosystem by introducing new digital customer journeys, including a seamless, one onboarding process for savings, demat and trading accounts.

We also introduced YONO Ji, our agentic AI-powered virtual round-the-clock assistant on the YONO business and expanded WhatsApp banking for our current account customers. At the same time, we integrated our trade finance suite into YONO business while adopting artificial intelligence and trade finance operations to improve turnaround time and customer experience.

On the credit side, we launched MSME Dream through which we extended our business rule engine to cover SME loans up to INR 10 crores from the earlier INR 5 crores, enabling faster credit decisions while maintaining underwriting discipline. In the Agriculture segment, we expanded digital document execution across the nation for Kisan Credit Card and Agri Gold Loans to further improve customer convenience.

Technology is also strengthening our risk management framework through PRISM, our predictive stress monitoring platform. We are leveraging internal and external sources to identify early signs of stress in borrower accounts.

This initiative also enhances our preparedness for the implementation of the proposed expected credit loss payable. Collectively, these initiatives reflect our continued commitment to building a bank that is digitally enabled, operationally efficient and well positioned to deliver sustainable growth.

Against this background, I'm pleased to share that the bank has delivered another strong quarter. Our net profit reached a record INR 21,121 crores, supported by healthy operating performance and disciplined cost management.

Operating profit grew by 9.77% year-on-year, while our domestic net interest margin remained resilient at 3%, reinforcing our confidence in maintaining our guidance for the financial year. Our balance sheet continued to expand with the total business crossing INR 110 trillion, while deposit exceeded INR 60 trillion mark and advances crossed INR 50 trillion mark.

Underpinned by our diversified business model, growth has remained broad-based across retail, agriculture, MSME and corporate segments, reflecting healthy demand. On the liability side, we have continued to maintain robust deposit growth in a highly competitive environment.

Our CASA franchise remains one of the strongest in the industry, providing a stable and cost-effective funding base. Strengthening and leveraging our liability franchise remains one of our key strategic priorities as we continue to optimize the balance sheet.

Equally encouraging has been the sustained improvement in asset quality. Gross and net NPA ratios have further improved and remain at their lowest level in over two decades.

This is a reflection not only of a supportive operating environment but also of years of disciplined underwriting, stronger credit monitoring and improved collection mechanisms. Our robust provision coverage ratio and strong capital position provide us with ample flexibility to support future growth while maintaining prudent risk standards.

Digital transformation continues to be an important differentiator for the bank. Customer adoption of the new YONO platform has been increasing with the digital acquisition continuing to grow steadily.

Increasing digital transactions, wider use of analytics and AI and continued automation of internal processes are helping us improve productivity and enhance customer experience and optimize operating costs over the long term. Our subsidiaries have continued to perform well and remain important contributors to shareholder value.

The successful listing of SBI Funds Management Limited marks another significant milestone in unlocking value within the SBI Group, and we remain committed to supporting the long-term growth of each of our subsidiaries. Looking ahead, we will continue to focus on improving the quality of growth along with growth in volumes.

We remain committed to maintaining a healthy balance between profitability, asset quality, capital efficiency and customer franchise. At the same time, we will continue to invest in technology, analytics and AI to ensure that SBI remains well positioned to meet the evolving expectations of customers and the changing dynamics of the financial sector.

As we progress towards our 75th anniversary in 2030, we are building an institution that is not only larger in scale, but also stronger in capability, more agile in execution and better equipped to support India's growth aspirations. Before I conclude, I would like to thank all of our stakeholders for their continued trust and confidence in the bank.

The performance we have delivered this quarter reflects the collective efforts of our employees, the enduring confidence of our customers and the continued support of our shareholders and investors. Thank you once again for joining us this evening.

My colleagues and I will now be happy to take your questions.

Thank you, Chairman, sir. We now invite questions from the audience.

[Operator Instructions]

Complements to you all, sir, for the fantastic results as far as the profitability goes, definitely, I think the highest operating profit and the net profit of the bank ever had in a quarter, even surpassing that Q3 '26 which was also a good quarter profitability-wise, so it is one of the highest. Having said that, sir, as far as the business growth is concerned, while we have seen that in some of the other banks, this quarter has been excellent, very -- I mean exceeded the -- whatever the expectation for there -- for the entire deposit credit or entire business growth.

In our case, if you look at the percentage terms, of course, this quarter has not been that good as compared to many of the other banks, though they are smaller in the size, so our deposits grew only by 0.5%, advances 2.32%, of course, is good, but the overall business is 1.33%. Secondly, sir, there is an element in the other operating expenses, which has gone down in the miscellaneous expenses, if you look, it has gone down by almost about INR 3,600 crores in this quarter.

Overall, the other operating expenses have gone down by almost about INR 5,800 crores or INR 6,000 crores, which are added to the profitability of this quarter. So one of -- I mean, I don't remember exactly miscellaneous expenses, what was there in the last quarter of INR 7,774 crores, which has now reduced to INR 4,108 crores.

If you can just give us a little highlight on that. The other thing is, sir, I think after about many quarters, for the first time, there is an uptick in the absolute numbers of the gross and net NPA in this quarter.

And at the same time, the SME numbers also, if you look at SMA too, it is doubled in the last quarter and even overall SMA also have gone up a little bit. Fresh slippages also has gone to INR 7,000 crores from INR 5,500 crores.

So does it give any indications that there is some stress which is building up in the system, on that? And what do you see going forward in the coming quarters, whether it will continue?

Similarly, if you look at the provisioning, of course, a small number, but the provisions have gone up. Other provisions have gone up to INR 1,270 crores as compared to a reversal of INR 366 crore in the last quarter.

So what is the reason for that? On the whole, a good quarter, but a few items like as I said that in the miscellaneous income, also as well as the expenses.

Miscellaneous income also has come down in this quarter by almost about INR 4,000 crores in the other income side, so these are some of the pointers, questions, if you can answer, sir.

I think a few questions I will answer, and my colleagues will take over from there. Deposit growth has to be seen from the lens of the liquidity, which is available to us.

And deposits have become extremely competitive landscape. And the lot of wholesale deposit rates have gone up, which is not the rate which we are willing to pay.

Our retail franchise done extremely well. If you see our retail deposit, term deposit growth is 14%, continues to be 14%.

Even in the last quarter, we did 14% deposit growth on the retail term deposits. And more notably, savings bank with the balance of INR 17.5 lakh crores base has grown by 10%, and with the whole industry is actually struggling with CASA, probably we are an exception that we have posted CASA growth rate.

And we also have very significant liquidity in our balance sheet. As on 30th June, we had an excess SLR of INR 3.06 lakh crores.

And as we speak, also contributed by the FCNRB flows, we have excess SLR of INR 4 lakh crores. So which means that we strongly believe, I mentioned earlier also that the bulk deposit is a treasury activity.

So the treasury will decide whether they need to access this bulk deposit or they can go to the market and borrow, whatever is more acceptable rate. I think we really got this balance right in Q1 and which is actually reflected in our cost of resources, overall cost what we paid for the resources and contributing to the NIM stability, almost 7 basis point uptick has come mainly because of the cost of deposits going down.

And on the gross and net NPAs, first slippages, I think we should not really be worried about this. Just to give you a number of fresh slippages, normally are higher in the Q1.

If you see -- I think you should compare from Q1 of the last year to this, and out of this INR 7,000 crores slippage is what we had. As we speak, we pulled back almost INR 1,450 crore or INR 1,500 crores, so there's no concern in any of these gross net or SME front.

And on the miscellaneous expenses, if you we some data on that, you can respond.

So in the miscellaneous expenses, apart from insurance expenses, where we have clubbed the insurance expenses to miscellaneous expenses this time, if I see, apart from insurance expenses, this quarter, it is INR 2,085 -- INR 2,385, as against INR 2,266 of quarter one of previous year, so there's hardly any increase. And the insurance expenses as against INR 2,074 in quarter one last year, we have expanded INR 1,723.

As compared to the last quarter...

No, no. Don't compare with the quarter.

INR 774 crores.

No. So what happens in the quarter four, most of the expenses get carried over in the last quarter.

So the right way of comparison would be year-on-year.

While we also realized that the Q4 bump will always create this confusion, we have decided that some of the expenses, the bulk expenses will amortize over three quarters from starting with this quarter. So then you will not see that uptick, which happens in the expenses in the Q4.

Particularly in the miscellaneous income side also which is...

Miscellaneous income, again, don't compare with the Q4.

Lower than INR 1,600 crores compared to INR 6,600 crores.

In Q1 of the previous year.

No, no. Sir, Q1, in the whole year, the overall business gets expanded to 10%, 12%.

The whole picture changes. So some of these items are comparable with the last quarter, then give the better...

Not necessarily. In our case, a lot of income is also booked in the Q4, so I think earlier also, we mentioned that sequentially, the numbers sometimes can be a little confusing because either bulk expenses, our bulk income is booked in -- in fact, for example, in Q1, the whole locker ends are recovered in Q1 itself.

But you don't see that number in Q4. So there are variations in terms of what are those bulk income streams, which are available in each quarter.

And ideally, it should be the year-on-year comparison.

Sir, you refer on the FCNR deposit? Overall, under all these three items, how much money have you already generated?

And the leveraging -- I mean, how much it added to the -- our credit growth of this quarter?

The credit growth is...

Because of this FCNR.

FCNRB will contribute credit growth to our foreign offices immediately, but it augments our deposits here. So we have had almost $6 billion FCNRB deposit mobilized.

And we also have done one way FCB of $1 billion and $300 million of ECBs. So in all about $7.3 billion have been funded by our -- mostly our foreign offices.

So the $6 billion contributed predominantly to almost INR 45,000 crores in this later part of June, I think only INR 7,000, INR 8,000 was there in the June quarter.

Congratulations. I had a couple of questions.

Firstly, your fee income has been very strong this quarter, and it's been strong for the last few quarters as well. And in this quarter, the government fees have also grown quarter-on-quarter, which is not usually the case in the first quarter.

So if you could give some outlook on fees on how sustainable this is going ahead. So that's my first question.

And then I have my question on margins. So if you could give any outlook on margins now, we did not give any outlook on margins in the fourth quarter.

But now because now there are a lot of moving parts, there's FCNR and there's competition in some segments. So if you could throw some color on your outlook on margins, that will be helpful.

And on FCNR, if you could clarify, the deployment will be in overseas loans only? Is it or no?

No, the credit growth would be visible because leverage is provided by our foreign offices. And you're done or do you have some more questions?

These questions.

The fee income, broadly, I think, is I believe one of the positive developments in the last few quarters definitely have been on the fee income side. We still have a long way to go when compared to many banks, fee income to overall income, we still are just about 15%.

We have a potential definitely go to up to 20%. So our -- the focus on the fee income continues to be there.

Whatever are the subthemes in that, whether it is loan processing charges, government business, CVA activities, I think every area is being focused on. But specifically on the government business, I think the INR 500 crores improvement, what you see is a combination of a bit of accounting treatment because auditors have insisted that some of the cash management solutions, what we provide to the government entities should be -- the income should be booked on an accrual basis, not on the actual basis.

So 50% came from that accounting treatment, and the rest of the thing has come from the usual growth, particularly on the railway side. Anything, Rama, you want to add?

Yes, sir, you are right, sir. In fact, but for the adjustment, the growth would have been just around 29% year-on-year, which is like in a year, it happens.

But this -- we have switched to accrual system now, so this is more robust.

What are the other things, Mahrukh?

Margin outlook.

Margin outlook, I still hold. I'm not going to give you a quarterly outlook.

This is a full year outlook of 3%, which I mentioned right in the beginning of my speech. We are sticking to them.

My name is Manoj Alimchandani. A couple of observations.

One is hats off to you on delivering on everything you promised since the last quarter, an excellent value over 10% in just in a quarter. At that time, we were around 920, 930 and today 1,100 plus.

I would like to have your thoughts on a couple of very important issues. On the day you took over, you started building the blocks for value creation, and then we won the award for the best global consumer bank.

And we did the QIP also at a very good valuation. Now a couple of thoughts when we look at your aspiration and the people management here on being the most valuable bank in India, valuable bank as far as listing price is concerned, one is that, and also the valuable group when we consider the value of all our listed entities of the bank.

How we are looking at that from the day you took over, there was a big gap between the two banks, the leading private sector bank, everybody knows that, and us, there was a big gap. Now apparently, that bank gap, when do we become #1 and most valuable bank in India?

And on a sustainable basis, sustainable basis, and also, along with our subsidiaries and associated entities hats off to you, we did the value unlocking of the -- our mutual fund, which is -- which will be coming in the current quarter. Without that, we have achieved such great numbers, and the value unlocking in NSE is yet to come possibly in the third quarter.

So would look at the thought process you are having and all of us on how we look at being the #1 bank in India, valuable bank, and a valuable group as a BFS entity, one is that. Second thing is your thought process on this today, credit growth of 18%, is that a one-off blip or we exceed a sustainable, credit growth of 18% plus and being the leader in credit growth in the credit cycle ahead because apparently, the worst is over on the geopolitical front and inflation front also, and very clear signals given by the Fed and the RBI.

And also one other besides, I would like to have your answer in detail, my congress to all the EMC team and the people sitting here for the value unlocking and also congrats to you for getting a CFO for next 5 years, you promise that and you delivered that, hats off to you, and CFO has also great experience in handling similar size and large fundraising, just a few days back, leading road shows worldwide. So looking to your answers.

Thank you, Manoji. I think the first statement, what you made, I consider as a blessing than question, so I'll leave it there.

The second question on the credit growth. I'm not answering the first one because I thought that is more of an aspirational one, but if I really have to answer that question, I would rather would like to say that, just reiterate what we -- I mentioned, right, in my speech that we are building the bank for future.

Whether that future rewards us in terms of market capitalization, creating value, is the market perception about us. But our perception is that we would like to build a bank for four important stakeholders, which I always mention, our employees, customers, shareholders, government and regulators, together, the last piece.

I think this is something what we consciously and every day, try that, how do you improve in terms of satisfying the expectations and aspirations of all four stakeholders. So maybe the outcome and the byproduct of that is improved market capitalization, we would be happy to realize that.

As far as your credit growth question is concerned, I think 18% credit growth has to be seen from the base effect. I think Q1 of the previous year has been a muted quarter, and this is not only for SBI, the whole banking system had a muted credit growth in Q1 of previous year.

So that's the reason we have given the guidance, which is anchored on the nominal GDP expectations of the bank. We believe that maybe the nominal GDP would be around 12% to 12.5%, and SBI always grown 2% to 3% more than that.

That's the reason we have given the credit growth guidance of 14% to 15%, which means that 18% in my view, seems to be a little difficult proposition. Our own internal estimate for the industry is 15% to 16%.

So if any economic activity actually gets primed more than what we see now, probably we may go to that 16% level. But our broader guidance is on the 14% to 15%.

On the CFO front, yes, I hope this 5-year term, what you have spoken about will stand good, and we are happy to welcome Mr. Agarwal to our fold.

One more observation. I think you have got 2 more years to go.

What I would like you to aspire, you did one great QIP at a great price. I know Mr.

O.P. Bhatt, Arundhati and everybody used to mention about fundraising and you really did it.

Before you go, always strike when you -- in market cap principle is when you get a good valuation, go for it. Now I think the time is yet to come.

I think we may go up to 1,200, 1,500, but before you retire, that would be the great time to hit that record, and we do the capital advocacy for the next leg of growth. I hope that aspiration will be on your corporate planning team.

I must also acknowledge because of the -- as I mentioned, we consider this interaction more of an educated one. I remember, I think, two, three quarters later when I took over.

Many of you mentioned that please remove a line that the capital may be raised and ratios may be -- seem to be -- and from that angle, you said that either you drop this line or raise the capital, so thank you for that advice, and we were able to overcome that issue of QIP over.

Team SBI, congratulations for excellent performance and good luck for the year. I think you're going to beat everyone on the street.

So first question is aspiration of India, aspiration of SBI and growth of India is far dependable on what SBI does in the new emerging businesses which you have formed a vertical. Others are lagging behind, they are waiting for data from you.

So looking at those aspirational eight, nine divisions, starting from data center GPU, hydrogen, solar required for all of them, CapEx cycle needs almost INR 30 lakh crores in the next 4 years. Part of it will be funded by global players, part will be India.

To meet those requirements, how are we gearing up to meet those industry needs and because this will be all large giants, I'm not counting Amazon, Microsoft, those hyperscalers asking for debt from you. But the domestic partners and domestic companies which are emerging, which may be not visible to the street today, they may be less than $1 billion capital.

But I understand you have sanctioned few and you're assessing a few, so I need a little guidance on that aspect because SBI's future would be far brighter than most of them because most of the other bankers are doing RAM, RAM, RAM.

Ashwini, you can take this. I will supplement after Ashwini's response.

So you're right. One is this center of excellence, which has come up as you pointed out.

And it is developing deep expertise in all these sectors. Our teams used to do that already, but this is fully focused on the [indiscernible] So these are still early days.

They have assessed a few and they have updated the risk models, which our teams used to do by having more deeper engagement with the industry players, so we are having some pipeline there. But even in the merger and acquisition space, which is, again, a newly opened space for us, we're seeing very, very good traction for us because everybody is consulting us and we have a lot of opportunity which we see there, including some in this space as well.

So it's like turning out some new segments, new classes of customers, which we earlier were not able to handle. For example, software never borrowed from us, but now they are under -- they actually want to acquire companies, they are borrowing from us as well.

So I think there's much, much opportunity which is available. And yes, we will set those benchmarks and everybody else is welcome.

We will share the knowledge as it stands.

One of the constraints, as you pointed out, would be that how do we fund this requirement? Where is the capital pool coming from?

I think this brings me to my favorite narrative that the shift in the household savings, which has happened. And this kind of growth of INR 30 lakh crore cannot be funded by the banks alone.

One is, of course, how many banks really will be getting into funding this capital expenditure. The other thing is that capability of the banks to fund this capital expenditure, so the overall structure of funding has to change.

As I mentioned earlier, if the household savings are going to pension funds, mutual funds, insurance companies, they all have to contribute to this capital expenditure in some form or the other, so what are those structures which will emerge. Number two, many of us have a kind of illiquid asset portfolio in our books.

Take home loans, for instance. I did mention earlier also, again, I'm reiterating.

The overall system has got INR 30 lakh core or even more home loans -- INR 34 lakh crore home loan portfolio, which is absolutely illiquid, so whether we can bring a securitization structures. But if securitization structures come unless these nonbank participation is there, this is not going to really work.

So I think we are consciously working as a market leader to bring those structures and help this funding capability in the system to grow.

Sir, you rightly answered my next question, but if you're considering hydrogen, solar, connectivity, now REITs and invite funding, domestic M&A plus global M&A and INR 82 lakh crores of mutual fund size today as of June, keeping a combination and CD ratio at 82% today, the bank's capital requirement at SBI may be met. There may be opportunity for SBI caps and yourself to underwrite and down sell to many banks because they are -- depending if SBI writes, I'll write the proposal.

So keeping all those aspects in mind, I see far better prospects for SBI in the next 4, 5 years, specifically for these sectors compared to what others are thinking right now. And there may be overhanging -- one other fold on other bankers of merger and acquisitions between themselves.

Maybe SBI lines up with one or two. So what happens to the nation and what happens to SBI?

That's why I'm asking this.

No. In some manner, you are right.

I think there is a greater opportunity emerging. What is required apart from the capital which we have spoken about is the capability.

This is what Mr. Tewari mentioned in terms of our center of excellence, CHAKRA initiative.

So that at least a dedicated band of people who understand the emerging industries and what are the -- not only opportunities and the risk associated with funding them. You mentioned that if SBI underwrites, others will participate.

SBI itself has to develop that confidence and capability, which we are investing now in our people, through this CHAKRA initiative. And I believe, I'm sure -- I agree with you in terms of the emerging opportunity in these areas and how do we position SBI to be the premium bank in that, we consciously are working on it.

Main contributor is that we were given a tax holiday until 2047 along with Malaysia and the data centers.

Kunal from Citi. So a couple of questions.

Firstly, on the overall loan book, so if we look at it compared to the other banks, we have seen almost like a flat growth on the corporate side, and growth has primarily come from SME, retail and agri on a sequential basis. So one is maybe, did we actually transition to this MCLR pricing, which you were indicating last time from T-bill to MCLR, and that would have taken the rates up, and we have seen some rundown or competition out there.

Was that the reason or maybe we will see the uptick on the corporate side going forward? Because overall, at the industry level, still corporate growth is quite strong.

Now it has outpaced the overall system growth. So that's the question.

And secondly, within the loan book, when you look at it, even express credit, maybe the sequential traction is not strong, it's still like 8-odd percent. So anything to read into it?

We were expecting to take it into double digit over a period, so how is the traction out there on the PL side? Then secondly, getting on to margins, so in terms of the entire MCLR transitioning on the corporate, is it largely done during the quarter?

And is that reflected in the yield improvement, which is there? And bulk deposits, if you can just give the proportion of what is the proportion of the bulk deposit today, and how -- maybe as of June and how much it was last quarter?

And any interest on IT refund if it was there within the margins during the quarter?

So on the corporate side, we did mention that there have been a significant growth on the T-bill linked pricing, so what we see on the corporate side is a combination of moving a part of that portfolio to MCLR. And obviously, in the process, somebody who is not willing to pay MCLR looked for alternatives.

But largely, the T-bill pricing itself is renegotiated in many cases, improving the yield. We still is a work in progress.

It's not full transition, has not happened. But there is a general awareness both in our teams as well as among the customers that what is our pricing expectation.

So what -- the growth probably would be based on these expectations only. There have been some instances where obviously people have moved.

So if you see, sequentially, our growth rate has been lower, but we used to have a strong dip sequentially every year, and that dip is much less than what it used to be earlier. So I think it should be seen from that angle.

Maybe others are growing in -- but we have a very fairly large book. Our base, 30% -- 33% of our book is corporate book.

I don't think anybody in the system has such a large book. Even if they grow the percentage terms, it looks bigger, but we have good visibility.

I would ask Ashwini to respond further on the corporate book. But coming to your express credit, we are seeing a good amount of sourcing and good amount of disbursements in the current quarter and also the quarter which we just finished.

But it is not going into the double-digit territory because of the gold loans. We have seen that many of our -- the normal express credit customers are opting to take gold loan.

Obviously, there's an interest rate arbitrage almost 3%. So as somewhere, this gold loan juggernaut will slow down and some movement will happen to express credit.

But we have an opportunistic growth in terms of gold loan. And we are doing it in a full basis, both on the personal gold loan and agricultural gold loan, so no worries on that.

MCLR transition, as I mentioned, is a work in progress. We don't disclose on the bulk deposits proportion.

So I think we'll stick to that because this number is a treasury activity. And every time you guys get worked up, bulk deposit going up, bulk deposit going down, and your financing models and your Excel sheets all will go for a toss.

So I would rather stick to that...

Because bulk deposits has improved...

I will not go into the bulk deposit thing. But one thing I would definitely say that the proportion is significantly coming down.

And broadly will be helped by the FCNRB flows. If you have INR 1 lakh crore flows of FCNRB, which we expect to have, I think to that extent, predominantly, it will be reducing our bulk proportion.

Entirely because there would be some leverage also. So in terms of this INR 1 lakh crores, we heard that you mentioned INR 10 billion of FCNR.

What do you expect the leverage from our own balance sheet, which will be the SP1 Yes, currently, it's fully on our balance sheet which will be there...

It is -- currently, it is fully on our balance sheet.

Entire?

Entirely on our balance sheet leverage now. Overseas also...

What is the quantum? So like INR 6 billion also, which we raised, still there.

It's like...

I mean, I don't want to -- we don't want to comment on the yields and the leverage which we are providing. I can tell you that it is all leverage, mostly is provided by our own foreign offices.

Do you want to add anything on the corporate side?

Interest on IT refund?

Interest on?

IT refund.

I think this quarter, we don't have any.

No interest at all?

INR 220 crores is what we had.

Compare to INR 1,000 crores last quarter...

So last year, first quarter, we did not have any. But quarter 4, we had INR 1,001 crores.

You want to add something on the corporate side?

No, nothing much. The pipeline is very strong.

Overall, if you include the term loan undisbursed, the working capital not utilized and pipeline, it exceeds INR 9 lakh crores. The strong pipeline for corporate credit.

And as I explained, the M&A is a very good opportunity we are seeing, very strong interest.

Sir, a couple of questions. Sir, first on FCNRB.

So there are two legs, right? First, it will reduce the bulk deposit, so it should be helping in overall cost of deposit or cost of fund.

But the overseas book that also sees an increase by the equivalent leverage amount, there the spread should be very minimal, right? So what is the net impact of FCNRB on the margins?

Would it be margin dilutive? Or would it still be margin positive for the bank?

I will ask -- I will respond on the domestic side and overseas, Ashutosh will respond. Domestic, I don't see any significant negative or positive impact because, as I mentioned to Kunal, that we don't have a significant proportion of bulk, so even if it is INR 1 lakh crore on a INR 60 lakh crore deposit base, it's not really going to move the needle, okay?

On the overseas side Ashutosh, you can just...

So overseas side, we don't see any major impact on our overseas book because we have a large trade finance book there, where NIM is -- you know that what is that NIM means in a trade finance, 1/3 of the book was trade finance. So we'll have some maybe a remix in the portfolio of the foreign offices, but net-net, there will not be any impact on the overseas offices.

So what the foreign offices are doing is that if they are funding FCNRB by providing leverage, they are reducing on trade finance. The margins are equivalent.

Or sometimes the margin on supply chain is much lower than what they are getting on the FCNRB. So overall, I don't think there is any impact either on the whole bank NIM or domestic NIM.

Sure. Secondly sir, on gold loan.

So what is your outstanding gold loan on the agri side? And what is the yield that you charge on gold loan, both on retail and agri?

So our personal gold loans -- just 1 second, is in the order of INR 1.25 trillion. And agri gold loans is up to the order of INR 1.85 trillion.

So both put together, we crossed INR 3.1 trillion as I know.

And the yield, sir?

Typically, they are in the range of 8.5% to 8.9%.

The personal gold loan is slightly higher. And agri probably is lower.

Sir, actually, this is an observation. You are growing retail gold loan a 100% almost, right?

And this is one product where there's no competition from private banks, large private. They are small players, regional players, which are reasonably active, and their yields are 10% to 11%, if not higher.

This is the only product where you're growing at 100% almost. Industry is also growing at 100%, and the entire growth is contributed by PSU banks, right, and there's no competition.

And the yields that you're charging is actually much, much lower than comparable private peers. Is there a scope to increase the yield here?

Or you think this will remain like this?

No. We will definitely be looking at -- I think we have enhanced the yield on gold loan over the period.

But you also must understand what is the ticket size of this gold loan. If lower the ticket size, you have a better option of pricing it better.

People are willing to pay in a lower ticket size. But we don't want to get into that lower ticket side.

Our average ticket size is almost INR 2.5 lakh to INR 3 lakh or even more. And our loan-to-value is less than 55%, 56%.

So with these metrics, generally, the people who come to us are basically coming for the price. So there's not much -- we will never be moving to double-digit territory there.

And I also believe that this gold loan growth need to be seen from an opportunistic point of view. This is not our core portfolio.

So today, the growth opportunity is there, and there's no capital allocation. The virtually risk weight is 0.

So from that angle is ROE accretive, while small compromise on the margins. And it's a safe portfolio.

Sir, and lastly, on personal loan side, right? So RBI data suggests that banking industry is growing at around 10%, 11% personal loan.

Same is the case with SBI and, let's say, large private, but if I look at other lenders, like NBFCs, they are growing at 20%, 25% on the personal loan side. Maybe they are targeting self-employed sector, self-employed segment.

And it looks like banks are shying away from that segment.

So one of the reasons I don't know whether I mentioned with you, is that the deeper penetration of a product is not there. For example, you take our express credit, 99% of the borrowers are salaried customers, and if you want to go to a self-employed and professional category, even if they are good quality customers, you need to have a strong collection mechanism.

I think the differentiator between mainstream banks and NBFCs is the collection mechanism. So we also realized that we need to increase the depth of each of our product, whether it is home loan or personal loan or many other products, even MSME, for instance, that collection intensive segments are not tapped by us despite having our pricing power reach.

So we have, for the first time, embarked on creating a full fleshed collection vertical. Is our CG on Collection is here?

Yes. So we -- Hemant is our Head of Collection vertical.

He will be driving the full-scale collection mechanism to be built. We are building from scratch because virtually in a bank like SBI and Xpress credit, let me tell you, 75% to 76% of the recoveries happen by way of moving funds from savings bank account to loan account.

That is not a collection, right? So you need to have a very strong collection mechanism to take these products to self-employed and professionals, where our yield improvement will happen.

But before we get into that segment, we want to ensure that our collection mechanism is strong, robust and field staff is available to us. We are creating feet on street across the country.

Almost 6,000 is our estimated number, which we will be deploying in feet on street through our SBOSS that is our subsidiary, and we are extensively using our analytical and AI capabilities to develop the models and combine feet on street, branch network and contact center to create ecosystem of collection. And that would help me to go into the product range what you are looking for, while we have the product, we have to deepen that.

So is that a 1-year target or is it quarter...

This is 1 year. All other elements are in place, except that we need to get feet on street because they are qualified people.

We don't want to have any reputational risk. We have to train them well, we have to bring the DNA of SBI in their activities.

And lastly, sir, if you can answer the pension provisions. I mean, on a full year basis, are we passing that hump wherein the pension provision should start declining in respect to interest cycle, depending on the employees who are on the defined contribution, defined benefit proportion.

It is happening. I think the pension, it's a combination of what contribution we are making to the regular contribution, which we are required to make.

That seems to be on a declining trend. But the real impact will be post-2035 because 2010 is where NPS is introduced, so until that time, it will be an incremental decrease, but I think significant decrease will come post-2035, I think, right?

But we also are getting benefit of actual assessments and many other things, I think that is reducing the pension. Do you want to add anything on India?

The pension MTM gains on pension and gratuity fund, if I compare this quarter was INR 935 crores. Quarter 1 was INR 1,125 crores, so the whole -- every quarter, actually comes and revalues it.

And depending upon the yields and all, it is made.

Yes. In terms of cost, I think a significant reduction, you will see in a couple of -- maybe 3, 4 years later.

Param here from Investec. So first question -- firstly, congrats on the quarter.

So first question on the ECL, a number of your public sector peers have given out numbers on broad impact on a run rate credit cost as well as the onetime net worth hit. So if you can call out something, if we've done an assessment on that.

If you're looking at a number, I'm not giving any number at this moment, for two reasons. One is, of course, I did promise that in Q1 results, we would be able to give some number, it took longer than what we expected in terms of pushing the whole data into our IT systems.

My team tells me that the 18th August, probably they would be pushing all the models and data into the IT system. The correct way of doing it is that probably when we meet again in Q2, we'll give you the numbers.

But one assurance I can give you, it will not have any major impact, for two reasons. One is we will have some capital augmentation because of the mutual fund and hopefully, on the other divestment, major divestment, which we are planning.

And we also intend to take the regulatory dispensation of transitioning, which means that annual impact would be less on the CRAR.

Sir, on the run rate credit cost, right? So I mean, there will be a bump up.

Most banks are talking about it. I want to ask you, sir, conceptually since you are the lender who sets the prices in the market, will this be passed on to the customer, say, if it's 10 basis points, 12 basis points, will this be passed on to the consumer?

Because logically, I mean most of your loans are EBLR plus risk. And if the cost of risk is going up because of ECL, will that be passed through in a lending rate as well?

.

At this juncture, it's hypothetical because first of all, we don't know what could be the run rate on -- because much of the stock will be absorbed, right, on the 1st April '27, and all of us are looking at strengthening our collection mechanisms. Again, I forgot to mention that the ECL is also one of the compulsions what we need to strengthen our collections.

Our roll forward from any of these SMEs is very limited into NPAs. Stage 1 and 2 hardly become Stage 3 for us.

But we still have floor rates to handle on SMA-1 and 2, which probably would have some run rate impact. We don't currently envisage a very major impact, which forces us to pass on as a cost to the customers.

We should be able to absorb those costs. Unless there is a credit cycle moment, if credit cycle moment adversely and those costs go beyond a certain level, it may happen.

But I think I don't foresee -- in the first year, I think everyone will be fine-tuning their models, watching how to improve the positions instead of looking to immediately pass on the cost.

Sir, any numbers on, say, SMA-1 and 2 at a bank level regardless of ticket size?

At this juncture? We have never disclosed those numbers.

They're very dynamic.

Sir, question on the FCNR. You mentioned a number of about $10 billion.

We've already done more than half of that. And we've seen that generally the FCNR flows based on the last episode, it tends to be back-ended.

So why are we talking about a number that is -- its appears low from where we are? Or how are we approaching the problem in the sense that should we be going out to get as much as we can get?

Or are we setting ourselves a target that we want to achieve so much and we will...

We don't have any target in mind, honestly. But I also don't think that it will be back-ended as much what we have seen in 2013.

Most of the back ending in 2013 happened because the leverage confusion was there and most of the public sector bank adopt leverage in the later part. SBI alone, the 70% of our deposit was raised in the last period, in last cycle.

But this time, there's no confusion on leverage. There's no confusion on whether you can give SBLC or no SBLC.

So flows seem to be more spread out if you see. Some moment definitely will be there last mile, some people may come, so we -- our estimate is based on the inquiries, visibility and customer outreach what we are doing.

We may exceed also, I'm not very sure. But it appears that $10 billion seems to be a reasonable number.

Sir, one last question. I think this was asked earlier.

There was a INR 1,269 crores other provisions in this quarter. Is that a potential provision that was made?

No, so the INR 1,269 mostly consists of the PLI provisions.

See, the PLI provision, we back ended last year, but we decided to spread out four quarters this year.

Congrats once again.

Pritesh from DAM Capital. Sir, two questions.

One is on the corporate yield side, once we see a significant flow of FCNR, the liquidity will obviously go up. How do you see yields after September, especially on the corporate side?

You mentioned about bulk deposit as well. So both sides of the leg, how do you see that?

And the second question is, there is one slide which you have mentioned that a lot of incremental loans are being generated through analytical leads from AI. What does that mean in that sense, what is analytical leads?

And INR 22,000 crores which is raised in retail largely express credit or any other product?

All types of loans. So we use AI models, we've been using for quite some time, this is not new.

And these analytical leads based on our data analytics across the product segments are given to our operating people. It could be home loan, it could be Xpress credit, even gold loan.

Some of the analytic leads are generated in gold loan also, for the gold on purpose and MSME loans, so all kinds of spectrum of loans leads are generated and given to the feet on street and branches to convert these leads into business, that aggregated to INR 22,000 crores. On the corporate side, I think the pricing will be more determined not by the liquidity which is available.

I think what happens in the market? Because we've been -- I think some one of my DMDs has mentioned, the shift from market to bank and bank to market is kind of very fast now.

Earlier, we used to have a lag. The market prices, market rates and bonds and CPs go up, people used to take a long time to come back to banks.

But they seem to be allocating, the shift is very fast. So I believe that the corporate pricing will be more determined by what is the CP rates and NCD rates, which again will be determined by the liquidity in the system.

There could be some moderation there. As I mentioned, right, in the beginning, as far as SP is concerned, we have conveyed our pricing expectations.

I don't think that we will deviate too significantly from that part.

Just a few questions. Firstly, on this INR 1,269 crores other provisions, you said it's all for PLI?

Partly. INR 750 to INR 800 is PLI.

And you're amortizing it this year?

Yes. So every quarter, we are making that...

Amortization, see expected PLI is around INR 3,000 crores. Instead of taking in the last quarter, we are taking every quarter, 1/4 of that.

Sir, secondly, on your current deposit growth, current accounts, like last quarter, it was low, but we said that there was a base effect. There were flows in 4Q FY '25 due to which the Y-o-Y growth was low.

But this time, again, it's been only 4%, 5% Y-o-Y. So what exactly are the reasons for this?

And what are we doing to improve this?

Current account, I think we have performed better than the industry, if you really see in absolute numbers. We used to have mostly sequential declines, that will continue.

The current account overall market is going through a difficult time. What is interesting, what I mentioned last quarter also I've seen in this Q1, 2, is that while the governmental current accounts are virtually drying up, we've had 14% growth in nongovernmental deposit.

This is what is actually is very interesting to note that while we have -- we've been one of the biggest current account holders for the government balances, that is drying up. Still we are holding on the current account market share because our penetration in the nongovernmental is increasing significantly, 14% growth rate on the nongovernment.

So I think we are doing fairly well. We can do much better.

But I think overall, current account balances in the system are going to go down.

And sir, secondly, our ForEx revenues or ForEx fee income was INR 500 crores. Is that because of the NOP guidelines?

Yes.

It will normalize now to INR 1,500-ish from next quarter, right?

You want to say something, sir? [indiscernible]

But is it now here to stay at this level of INR 500? [indiscernible] Sir, if I may squeeze in one last question.

Sir, in one of your interviews you spoke about listing SBI General Insurance also.

Did I? Anyway, I did mention two companies, which could be potential candidates for listing.

And one company anyway, we are listed, right? The other company I've not given any time line.

I'm still thinking that SBI General is the next candidate for listing, but no time line.

Due to paucity of time, we'll now take up a few questions coming in through the online webcast, which will be addressed by the Chairman, sir.

So this is a question from Sneha Ganatra, is FCNR deposit is also covered under insurance? Yes, FCNR deposits also covered up to INR 5 lakh under DICGC insurance cover.

Vishal Gupta, the bank has revised FY '27 loan growth guidance to 13% to 15% from 12% to 14%, with segments retail SME corporate or agriculture. By the way, we have revised our corporate 14% to 15% credit growth.

Credit growth remained, as I mentioned, broad-based, and we expect that it continues to be broad based. Banti Chawla, expected amount of FCNR deposit to be raised and its impact on cost of deposits.

I think we fairly answered this question, about INR 1 trillion would be our total deposit mobilization, and we don't see any significant impact on the cost of deposits. Nasir Shaikh, fresh slippages increased sequentially in Q1, could you provide more color?

During Q1 '7, our fresh slippages were INR 7,046 crores, out of which we have already pulled back INR 1,400 crores as of date, and segmental numbers are also given, but I'll just read out, agri 2,600; SME 2,300; personal segment, 2,100. Anand Agarwal, was there any one-off in noninterest income?

What was the amount of dividend from subsidiary this quarter versus Q1 last year? There's no such one-off in noninterest income.

Dividend income during Q1 was INR 72 crores in Q1 FY '26, INR 31 crores in Q1 FY '27. Normally, dividends get paid only in Q3 and Q4.

Mayur Parkeria, impact of FCNR and NIM, I think we already answered this question. Subramanian Ramaswamy, don't you all think that the guidance of 14% to 15% being too conservative compared to your past performance so far?

So we did explain that due to base impact, our year-on growth is more than 18%. And our expected growth guidance is essentially based on the nominal GDP and what we grow over nominal GDP.

Subramanian Iyer, Morgan Stanley request you to help us with the number for the interest on income tax refund. Interest and income tax refund was INR 220 crores.

Thank you, Chairman, sir. I trust all the questions have been addressed.

We'll be happy to respond to other questions in offline mode. Let me end the evening with thanking Chairman, sir, MDs, DMDs, top management team, senior officials of the circles and various officers connected through webcast, analysts, investors, ladies and gentlemen, we thank you all for taking time out of your schedule and joining us for this event.

To round off this meeting, we request you all present here to join us for high tea which is arranged just outside this hall. Thank you.

Thank you so much.