Good evening ladies and gentlemen. On behalf of Bank of India, it's an honor to welcome all our esteemed analysts who have joined us in person as well as virtually. We are pleased to announce Bank of India's financial results of Q1 FY 2026. As you all can see, the dais is already graced by our MD and CEO Sir Shri Rajneesh Karnatak Ji, who is flanked by the Executive Directors Shri PR Rajagopal and Shri Subrat Kumar Mishra. Thank you all for joining us today. I would like to invite, or rather it's my honor and privilege to invite our MD and CEO Sir Shri Rajneesh Karnatak Ji to please address this gathering. Sir. Thank you so much, Madam. Ladies and gentlemen, good evening and welcome to today's analyst meet. As I share with you the financial results of the bank for Q1 FY 2026, it is my pleasure to welcome each one of you for the interaction. Thank you for joining us. As the world advances towards the later half of 2025, the global economy is steering through a tepid growth environment emanating largely from trade tariff frictions and escalating conflicts. However, domestic growth underpinned by easing inflation continues to shield India from global headwinds. Its multidimensional economic framework, combined with policy responsiveness, strong foreign exchange reserves, increased public CapEx, and prompt trade diversification, helps to sustain against the external shocks. Alongside, the RBI, through a combo of rate cuts, liquidity injections, strategic bond operations, and digital infrastructure enhancements, is actively stimulating the demand, easing credit costs, and backing the fiscal stability. Together, these indicators have been contributing towards maintaining investor confidence and moderating the spillover impact of disruptions on growth and inflation. Rapid digitization and fintech collaborations are transforming operations and customer engagement in the financial world. Against this backdrop, the Indian banking sector is emerging more resilient and dosed by stronger balance sheets, higher capital adequacy, and lower NPAs. The key focus of our bank will be enhancing customer experience through all channels and acquisitions of new customers consistently by providing innovative and niche services. This will lead to fortification of low-cost deposits, i.e., CASA and retail term deposits, for sustainable credit growth. My speech will be divided in three parts for this coverage. First part with respect to the initiative, second part with respect to the business parameters, and third part with respect to the ratios and the profitability. On the initiative sides, the first part within that is with respect towards banking for Viksit Bhara t. Here we have the first thing: repo linked export credit facility in Indian rupees for corporate borrowers. To capture export credit business, we have devised a repo linked export credit facility in Indian rupees for corporate borrowers. Second thing, with a view to support green energy initiatives and to expand our green finance portfolio, the bank has introduced BOI Star Energy Saver Vendor Finance scheme to provide tailored financial solutions to vendors executing residential and commercial power projects, solar power projects. My correction, digital initiatives functionality for linking pre-sanctioned credit lines to the UPI platform has been implemented. This initiative aims to broaden UPI functionality by allowing transfers to and from pre-sanctioned credit lines in addition to the traditional deposit accounts for driving paperless banking. A new next-gen document management solution is being implemented with enhanced customization and complete data migration. On the HR initiatives, during Q1 FY 2026, the bank has rolled out the next step of Project Saksham, which includes selection of sector champions. The project has been undertaken to improve every employee's sector-specific knowledge and to develop financial solutions for cluster-based finance, more particularly for the MSME segment. Second, a new rewards and recognition policy, BOI Star Grace, has been introduced to enhance employee engagement, motivation, and satisfaction while aligning individual and team performance with the bank's strategic objectives, and the third one being the revamped job family policy. Job families will be closely aligned to the bank's learning and development initiatives, including customized training and mentorship programs at our esteemed centers of excellence. As regards the business initiative, business part is concerned, the first being global business has grown by 10.37% from INR 13,64,000 crore in June 2024- INR 15,05,000 crore in June 2025, with an incremental growth of more than INR 1,41,000 crore. Global advances have increased by 12.02% on a year-on-year basis from INR 6,00,000 crore- INR 6,72,000 crore in June 2025, with the incremental growth of more than INR 72,000 crore. Global deposits have increased by 9.07% on a year-on-year basis from INR 7,64,000 crore- INR 8,33,000 crore in June 2025, with the incremental growth of more than INR 69,000 crore. Domestic gross advances have increased by 11.24% on a year-on-year basis from INR 5,08,000 crore- INR 5,65,000 crore in June 2025. RAM advances have increased by 16.69% on a year-on-year basis from INR 2,81,000 crore- INR 3,28,000 crore in June 2025, constituting 58% of the total domestic advances as on June 2025. Domestic deposits have also increased by 9.62% from INR 6,48,000 crore- INR 7,10,000 crore in June 2025. CASA has also increased on a year-on-year basis from INR 2.75 lakh crores- INR 2.82 lakh crores as on June 25 with an incremental growth of more than INR 6,000 crores, and the CASA ratio has stood at 39.88%. As regards the key profitability and asset quality, things are there. Operating profit has improved by 9% on a year-on-year basis and stood at INR 4,009 crores for Q1 FY 2026 as against INR 3,677 crores in Q1 FY 2025. Net profit has increased by 32% on a year-on-year basis and stood at INR 2,252 crores for Q1 this year as against INR 1,703 crores in Q1 of FY 2025. Slippage ratio has stood at 0.33% in Q1 FY 2026 as against 0.35% in Q1 of FY 2025. Credit cost has also improved to 0.68% in Q1 FY 2026 as against 0.85% in Q1 f or FY 2025. Non-interest income has increased 66% on a year-on-year basis and stood at INR 2,166 crores as against INR 1,302 crores in Q1 FY 2025. There has been improvement in asset quality with reduction to gross NPA and net NPA ratios. Gross NPA ratio has improved by 170 basis points on a year-on-year basis to 2.92% in Q1 FY 2026. Net NPA ratio has improved by 24 basis points to 0.75% in Q1 FY 2026. As regards provision coverage ratio is concerned, it has improved to 92.94% in June 25 as against 92.11% in June 24. As on June 25, Bank CRAR has improved to 17.39% from 16.18% as on June 24. In tune with growth of the global economy, the guidance for global advances growth will be at around 12%- 13% and the global deposit growth would be at around 10%- 11% in FY 2026. The key focus area will be low-cost deposit mobilization for protecting our net interest margins and increasing the high-yielding advances for consistent growth in the business with emphasis on digital initiatives and improvement in asset quality and arresting the slippages. The endeavor of the bank will be increasing efficiency and profitability along with the focus on compliance and better corporate governance. I would like to thank all of you once again for your continued support. The floor is now open for discussions and question and answers. Thank you so much. Thank you very much, sir. We are open now for the questions. The representatives will be handing over the mics to you. Kindly raise your hands and please stick to two questions at a time. Kindly introduce yourself and your organization. Thank you. Hi team. Thanks for the opportunity. This is Bhavik from NCGRID Capital. I have a few questions. Firstly, as in net NPA is down to 0.8%. Hello. Yeah, net NPA is down to 0.8%. How far do we go to reduce this further? Any target for this year and credit cost guidance? I'll follow up this with like few q uestions after you answer. Credit cost guidance for this year, our net NPA ratio is 0.8%. What do you target to get to i n FY 2026. As far as the credit cost is concerned, we have shown a credit cost of 0.68%. In March we had a credit cost of 0.76%. As far as the guidance on credit cost is concerned, we are giving a guidance at around 0.70% for FY 2026. As regards the other question, it was with respect to. The net NPA as. Do you want to take it down to 0.5%? Yeah. Net NPA. Yes, we have improved our net NPA. Also, as I said, we are presently at 0.75% as against 0.99% in Q1 of FY 2025. The guidance for net NPA is also 0.70% that we are giving. Okay, so the 70 basis point of Credit cost partly is because of reducing the net NPA. Yes. Okay. Sir, what has been the interest on IT refund this quarter versus last quarter?[audio distortion] Income tax refund? Income tax refund? I don't think we have it this quarter. We did not have any income tax refund. Okay, the recovery from written off was quite muted this quarter. Is there any guidance for the full year? How should we think about the treasury gains? Very strong this quarter? Do we assume that 70%- 80% of the treasury gain is done for the year? As far as the recovery from written off accounts are concerned, in Q4 we had some three lumpy accounts in which we had recovery because of which you see a very big figure in the Q4 number as far as that is concerned. This time as far as the return recovery from the written off account was concerned, it was not that kind of big ticket accounts which were there. That is why you are seeing a muted number over there. The second part is with respect to the treasury gains, yes, this quarter has been a good treasury income for us. As you are all aware, when the rates are coming down then the treasury makes some profits over there. During this time there was not much of margins as far as the advances were concerned because of the reduction in repo rate and that 60% of our advances are EBLR external benchmark linked. We expect that in the coming quarters, in Q2 and Q3, this thing would improve, start improving now that we are expecting that the migration, the transmission of interest rates, particularly on the liability side, would be happening. The rate cuts on the deposit side started happening from the month of October 2024. The one year cycle will get completed in October 2025. With the next quarter going forward, we should be expecting the transmission in deposit rate. Once that happens, both the net interest income and net interest margin would start improving. Okay, sir, thank you so much. I'll just come back in the queue. If I have any more questions. Yes, thank you very much. I have got a question online from Mr. Niteen S Dharmawat from Aurum Capital. Can the AD factors team put him through? Welcome Dharmawat. Hello, am I audible? Sir, hello? Can we have Mr. Niteen Dharmawat? Yeah, I am there, ma'am, can you hear me? Yes. Begin. Okay. Thank you for the opportunity, Sir. I must first congratulate you for the improvement in all important asset quality parameters in this quarter, including gross NPA ratio, net NPA ratio, PCR, CPG ratio, credit cost. As we know that this comes at a cost, our ROA has come down now to 0.82% from 0.98% in the previous quarter. What will be the guidance for ROA for the full year, and when are we expected to reach at least 1% ROA, and what will it take to be there? Thank you so much for this. As far as the NIM is concerned, see, we have. ROA. The first question was on the [NIM also]. No. As far ROA. Yeah, it was on ROA. Yes. Okay. As far as the ROA is concerned, we have shown a ROA of 0.82% in this quarter. If you see the ROA for the whole year, last year it was 0.90%, and for Q1 of FY 2024, at the 30th of June 2024, it was at 0.70%. We have improved the ROA by nearly 12 basis points as far as the ROA is concerned. We are giving a guidance of around 0.90% for FY 2026, only because of the fact that the net interest income and net interest margins are in pressure in this financial year. We are giving a guidance of 0.90% for FY 2026. Thank you, sir. My next question is. When are. W e expected to reach at least 1% ROA. What will it take to be there? Just a follow up question on this. If you see the data in Q4, we were very near to 1%. In fact, we were at 0.98% in Q4 of FY 2025. This year, once this stabilization of the interest rate happens and the passing on of the interest rate happens on the liability side and the NIMs start improving, net interest income definitely we will be in a much better position to give you guidance when we will be reaching that 1% mark. Got it. My next question is, sir, our cost T o income ratio has gone up by 300 basis point quarter on quarter. What are the reasons for this, where is it likely to stabilize? It is right now at 51.47% versus 48.53% in the previous quarter. The cost to income ratio, we are at 51.30%. If you see our Q1 numbers of the previous year, at that time it was 51.47%. The guidance that we are giving is at around 51%. For the simple reason that Q1, normally the income is muted in the books and the interest expenses are also there. With the ensuing September and December quarter, we expect that the credit flow will improve, interest income will start coming to the bank, and the cost to income ratio would also get moderated. Thank you, Niteen, for joining us. Yes, Choksey sir. Good evening. Congratulations on very stable numbers in challenging times led by liquidity and global uncertainty. The monsoon has been very good. It seems that global tariff challenges may get over. India still needs to figure. Most of the geographies which do global trade are already in the list with tariff numbers. We have done well on RAM. First, how is visibility on RAM led by the India positive factors, and retail growth is likely to exceed the market expectation? What is the yield on RAM? First. First question, yeah. As far as the RAM is concerned, as you have seen, we have grown well in the RAM advances. The YOY growth also has been more than 18% in the RAM segment. If you see the entire component of the book, our RAM component is at around 58% of the portfolio, the remaining being corporate advances. With the kind of growth that we are seeing in the RAM book and the kind of pipeline that we have, we have a pipeline of around INR 80,000 crore as we speak. Out of that INR 80,000 crore, INR 10,000 crore plus is the pipeline in the RAM segment and the remaining is in the international and the domestic corporate book. We would be growing our domestic corporate book also quite healthy. Nonetheless, I can say that the component of RAM and corporate would be at the same level at around 58% and 42%. My next question is we have done exceedingly well compared to most of our peers in CASA. I'm sure that Bank has taken a lot of initiative led by technology, tap banking and various things. Do we see accelerated performance where CASA is concerned? Despite challenging times led by initiatives at Bank of India, they should be stable between 38%- 40%. Internally at the top management side, we are targeting that we should be at 40% for FY 2026. That is the CASA growth that internally we are targeting within ourselves, that our CASA percentage should be 40% in FY 2026 when we close the financial year. This year also, this time also, if you see in this quarter, we are a shade below 40%. There was a lot of pressure as far as the CASA numbers were concerned in the entire banking system. To just give you a number, we are still above, sequentially above the March number in the CASA as far as CASA is concerned. Incrementally, if you see on the YOY side, we have grown by around INR 6,700 crore CASA on a YOY number. Many initiatives we have taken within the bank for improving the CASA numbers. The resources department is working quite efficiently over there. We have now designated regional relationship managers. We have 1,000 branches which are high net worth individual branches, key branches. We have a lot of digital initiatives which we have taken on the CASA. We have opened 200 new branches in the last financial year. 203 branches. New branches will be opened in this financial year also. All these initiatives taken together, we are very confident that we will be able to sustain our CASA numbers and to meet with the credit growth. Obviously, we will be taking retail term deposits and bulk deposit also. Nonetheless, we will be targeting within ourselves that we maintain the CASA ratio at around 40%. Sir, in most of the bankers in the Q and A indicating at the back end of the year we should have quarter 250 bps and majority say two cuts, not one cut. Keeping that in mind, with deposits getting repriced mostly in Q2 or Q3 year on year basis, how do you see treasury and yield on most of the advances panning out over the period of year? At present, already there has been a 1% repo rate cut from 6.5% to 5.5%, and in the short term we do not see any further repo rate cut coming because for the simple sense that enough liquidity is there in the system. When we see yesterday, there was a liquidity of more than INR 2002 billion, and there already has been announcement from RBI side with respect to the CRR cut. There also, 1% cut has happened, which will come effective on the 6th of September in four tranches. Again, there will be liquidity coming into the system. In the short term, we from the in-house do not expect that further repo rate cut would be there, and we expect that the transmission of deposit rate to be happening in Q2 and more so in the Q3 quarter, and when the NIMs should stabilize and should start improving from there. Q3 quarter specifically led by RAM and the initiative which you're taking for betterment on that, what kind of digital spend and spend on human resource and connected whereby the Bank of India's performance improves and your cost to income ratio gets more rationalized or stable compared to where we are. Yeah, just to follow on the previous answer, I would just like to add one more thing that we have also opened nearly 20 of our emerging corporate credit branches. We are focusing on our emerging corporate branches also in mid corporate advances, also emerging corporates which will become corporates. From there also, we are getting good traction, and the pipeline which I said of INR 80,000 crore also improves, the pipeline which is coming from the emerging corporate credit branches, because that is where we see the margin for the bank. There we can lend at MCLR rates, there we can get better LC/BG commission, better process fee, better upfront fee. That is one piece, that is one strategy to improve the margins for the bank, that is one part. Second thing is, as regards the digital initiatives, I can tell you that more than INR 1 lakh crore of underwriting which has happened during the last 12 months has been on account of the fresh sanctions through the digital initiative. Already our RAM book, whether it is retail, whether it is agriculture, whether it is MSME, they are on the digital platform. If you see our presentation also, nearly 20 products are there in the RAM segment which are under the digital mode. The sanctions are going on the digital mode. On the liability side also, many products, in fact six products, are there on the liability side which are automated under the digital. A lot of initiatives we are taking on the digital side to build operational efficiency, number one, to build the kind of platform wherein the branches are less burdened with the footfalls which are happening at the branches and the customers are able to do the transaction through the digital mode, through mobile banking, through internet banking. This is a clear initiative as far as the spending on IT is concerned. We are seriously spending on IT, not only on digital but also on the technology part itself, IT and also on cyber security. Last year, we had spent nearly INR 2,000 crore. We had a budget of nearly INR 2,000 crore, out of which we were able to spend nearly INR 1,850 crore. This year again, we have kept a budget on IT. When I say IT, again on IT, digital and cyber security, of nearly INR 2,000 crore. Again, this year we'll be spending majority of the money to build more operational efficiency within the system so that more we go into the technology and automation, so that there is less burden on the staff and they are more focused on sales and marketing. Sir. In my first question, indicative yield on RAM should be 9% or better. Yield on exactly number exact number two I am not having at present for the RAM. Yes, it is around. Yes, 9% should be at around 9%. Yeah. It has 9%+.[audio distortion] Thank you.[crosstalk] for answering it. It should be somewhere more than 9% only. The best in class housing loan we are giving to the customer which is rated 840 and above CIC score is 8%. That is the lowest we are giving. Otherwise, our rates are above 9%. In RAM we are expecting a rate yield to be more than 9%. Thank you, sir. Thank you.[audio disortion] Thank you very much. Sir, I'll just take one online question. This person is waiting since long time. He's Mr. Dheeraj. He's a retail investor, sir, and he has put the question that the bank has reported INR 1,160 crore worth fraud cases with 100% provision. W hat specific controls failed and what measures are being implemented to prevent recurrence? Also, can you clarify how many of these were internal control failures versus external frauds and any staff collusion? Mr. What is his name? Siraj Dheeraj. Mr. Dheeraj. Mr. Dheeraj, if you are listening, my answer is this. This time what has happened is, there was a Supreme Court judgment which came up which said that in all those cases wherever no bank has already declared fraud, we have to again re-examine and then see whether there is a fraud or not. So this INR 1,500 crore that we have declared this time is actually a re-examination of the earlier frauds and again reaffirmed as frauds in the bank. There are no internal control failures as such out of that. Most of them are credit related frauds, where in terms of RBI definitions and all, this became a fraud. There are no operational frauds as such in the entire INR 1,500 crore that we are talking about. INR 700 crore, one big account, another is INR 600 crore. Plus, more than 94% of these frauds are all credit related frauds which are already declared as frauds in the previous years, which again have been reaffirmed this year. Thank you very much, Sir. I think Mr. Dheeraj is satisfied with the answer. Yes, [audio distortion]. I'm Ashok Ajmera, Chairman Ajcon Global. Sorry if I go. We got terribly stuck in the BKC traffic to come from Centrigis. Of course, I don't know how these people made it. They must have immediately left. We had an interaction with the MD and Redis. Having said that, sir, on this fraud point only, because I'll just pick up from here only, those accounts which were reviewed, I mean where the client was called and that process was completed, the outstanding was only INR 4,050 crore outstanding balance. Whereas the total fraud outstanding in this quarter is much, much higher, for which also you have made 100% provision. I would just like to know that in this quarter, how much provision on account of fraud we have made which has gone to provision in P&L account. I'll give you exactly. Basically, what has happened is already these provisions are held in these accounts. They were again carried during this quarter, that's all. INR 1,500 crore of accounts already had provisions. We never reversed it. After reaffirmed again, these provisions are carried from the earlier quarters. That's all you want to buy. Clear. [crosstalk]Second offline. Because in this quarter also there are fresh frauds, for which also you are seeing. No fresh frauds a re there only INR 30 crore worth of fresh frauds are there? That's [audio disortion]? Sir. Of course, first, compliments on a very good business growth. I mean, in these difficult times, other people also might have complimented you. Good business growth, good. I mean, coupled by credit and deposit growth at the same time, good asset management. Even our gross NPA ratio and net NPA have also gone down, well provided for. Having said that, there is some additional or extra pressure on the operating profits, I think by about INR 850 crore, the operating profit is vis-à-vis the last quarter, not the sequential. Yes, sequential quarter. Out of that, again, INR 500 crore is offset by decrease in the salary in this quarter, if you take it from the March. Quarter. Something added by the lesser recovery from the return of account, which is also substantial, will be the last quarter. What I would like to know, number one, the reduction in the salary which is shown, which is there in this quarter, whether this is going to be the run rate for the remaining three quarters as far as the salary is concerned, so that we can take it as the normal expenditure and nothing of March i s going to spill over here. This is number one. Number two, again, recovery from return off account. Of course, I can understand in June there is a slackness, but going forward, what is our target for the whole FY 2026 for recovery from return off account as well as there is a pressure on the recovery of the cash recovery also. I mean, if you look at the NPA sheet, there also. Overall, what is the total recovery target for FY 2026? Out of that, how much is from the written off account and the normal recovery and upgradation which is there? I think for the first time after many quarters, we have gone below 40% in CASA. Is it a one-off quarter? Will we regain that 41%, 42%, 42.5% in the coming 3/4s? One more, if I can add on, is something on fresh slippages, which in the first quarter in some of the other banks is much, much lesser than the March quarter. In our case, it is almost the same, I think INR 2,082 crore, rather a little more than the March quarter, INR 2,149 crore. On the overall color on the slippage for the full year, these are some of the questions. Whether any SBLC commission is there in this quarter which has been taken in the other income? Okay, so thank you. First of all, I'll reply the first thing which is related to the staff expenses. In Q4 of last financial year, we had booked the expenses with respect to the made provision for the PLI. There is a performance linked incentive from the DFS, PLI1 and PLI2. The entire amount which we have to pay out to the staff, we have made the provision. No more provision will be required for the last financial year, FY 2025. That is one part. That is why the inflated figure you are seeing in the staff cost in Q4 as against Q1. The run rate of staff expenses will be near to that number only in the ensuing quarters of Q2, Q3, and Q4. That is the first clarification. Second is with respect to the operating profit. Here again, as you rightly said, there are certain items which were in the written-off accounts. There was a bulky item, there were three in fact big ticket advances wherein recovery happened in Q4 of the financial year, which we can see that non-interest income had increased, which was not there in this quarter in Q1. We are expecting that in Q2 there will be certain recoveries which will be coming from the written-off accounts. Number I cannot give you at this moment. There will be certain recoveries coming from there and also from the accounts which are NCLT accounts in Q2. That will be there. The operating profit will again get improved. As I said, with the transmission of rates happening and with the deposit rates coming down and the interest expenses coming down from starting from this quarter, more we should be seeing improved net interest income from this quarter, which will help us to improve the operating profit going forward. That is another part. The third part is with respect to the recovery. As far as recovery is concerned, we are expecting a recovery. Last year, we had done a recovery of gross cash recovery of nearly INR 9,500 crore. This year, internal target is that we should do a recovery, gross cash recovery, which includes recovery from written-off account, which also includes recovery from UCI and URI, which is the interest which has been applied, somewhere at around similar figure of around INR 9,500 crore. If you are able to maintain that kind of run rate with a gross cash recovery of INR 9,500 crore again this year, we should be able to give very good numbers as far as the gross NPA ratio, net NPA ratio, and the provision coverage ratio is concerned. That is that part as regard the CASA percentage is concerned. You are very right that we have dipped below 40% after a long time. You should appreciate the fact that there have been many banks which have been facing furthermore challenge than us. In fact, if you see the numbers, if you see on a YoY number, we have grown by nearly 3% on CASA which is a rare thing today. If you see sequentially also, our CASA number is above our March number; the June number of CASA is above the March number. We have been able to maintain that CASA number which is there. As far as the dip is concerned, had we not grown our credit to the extent 11%-12% of credit growth which was there, then we would not have raised the deposit also, then we would have been able to maintain the CASA also percentage. It is just below by only 20 basis points. We have dipped below 40% by nearly only 20 basis points. However, if you see the overall retail deposit growth in the bank is concerned, bulk deposit continues to remain within 14%. We need to appreciate that in this tough environment our bulk deposit percentage is still below 14%, which means that our CASA percentage plus the retail term deposit is 86% of the entire domestic deposit. The entire franchise which is there for the bank, which is 5,300 branches and all our BC points or the other avenues which we are utilizing as a strategy for increasing our resources, they have been paying well. In spite of the tough market and the tough challenge which is there as far as resource is concerned, we have been able to maintain our retail deposits at 86% of the total domestic deposits. As regards the fresh slippage is concerned, yes, we agree that the fresh slippage has been more sequentially. If you see from Q4, in Q1 it is higher. If you see on a quarter-on-quarter basis, it was the similar kind of number which was there in the Q1 of FY June 2024 also. I am not taking any excuse for that, but the number has been the same. Normally, if you see for us, the Q1 is normally a bit muted as far as the collection efficiency is concerned. Once the second quarter comes, the collection efficiency improves and many of these accounts which have slipped in this quarter will get upgraded in this quarter which got slipped in the Q1. Last year we had a fresh slippage of around INR 7,500 crores. I can say INR 7,600 crores. This year, when we are saying that we are giving a guidance, we are giving a guidance of slippage ratio of 1.20% only. Yeah. Thank you very much s ir. Sir, I'll take you. There is one gentleman waiting online, he's by the name Azizuam Schindler. I hope, sir, I have correctly spelled your name, pronounced your name rather. Mr. Schindler, is he still on the line? Hello, am I audible? Yeah, hello. Yeah, hi. Congratulations on good set of results. I just have two questions. Number one is on the MSME, can you give some color on why SMA go up by 60% quarter- on- quarter? Is any specific accounts or what's the situation on the ground or MSME segment? Yeah, yeah. What I could understand, your question was with respect to the MSME portfolio and that too on the SMA number of this MSME. You are right that if you see last year June 2024, the MSME SMA was INR 10 crore. It has gone up to INR 1,630 crore. That is correct. If you see over there, the increase in the SMA numbers is also because of the low collection efficiency which was there in Q1 of this financial year. That is the basic reason why the MSME SMA has gone up. We are very confident that in the coming quarter, in Q2 and Q3, we will be able to arrest this number. The collection efficiency has already started improving as we are in the month of July, at the end of July month. This number, I think, should be the peak number as far as the MSME SMA number is concerned for the bank. Thank you very much, sir. Thank you, Mr. Schindler, for joining us online. Yes. I have another question. I have one more question. Yes. If I'm okay, thanks so much. Just on the guidance on 0.9% ROA for FY 2026. What kind of G-Sec [audio disortion] You are not. I may interrupt in between. Mr. Schindler, you are not audible. Kindly keep your mic a little closer. Yeah, your voice is not clear. Am I audible now? Right. Yeah, kindly go ahead. Sorry about that. Just on the guidance of FY 2026, 0.9% ROA. What are we assuming for the mark to market gain? Because for first quarter that's 25% of our profit. Mr. Schindler, I would request you to kindly text your question. I'll take it because we are not able to hear you properly. Right. [Thank you]. [audio disortion] Yeah. As far as the ROA is concerned, the ROA has come down to 0.82% in this quarter as against 0.90% in Q4 of the financial year. Let me explain to you that in Q1 of last financial year we were at 0.70%, so there has been an improvement of 12 basis points as far as the ROA is concerned. As far as the guidance for ROA is concerned, we are giving a guidance of 0.90% for FY 2026. The dip in the ROA is also because of the main reason that there was a lot of pressure on the net interest income and net interest margins. That is one of the main reasons why there has been a dip in the ROA sequentially if you see from Q4 of FY 2025. Thank you, sir. Yes, sir, kindly please hand over the mic to this gentleman sitting here. It's working, sir. Yeah. Your bulk deposit is about 14%. Can I know what is the cost of this bulk deposit? Yeah, the cost of the bulk deposit. The weighted average deposit of our fixed deposit is around 6.98%. I am only asking for bulk. That figure we are not having. We can give you separately. At this moment, we are not having that figure. The question is if the bulk deposit rate is high and your average, you know, deployment rate which is advances is about 8%, then are you focusing more on growth or profitability? Because if you are focusing on profitability, this bulk deposit number should be low. In fact, you should let go a lot of business which is not making sense to the bank. NIMs are under pressure. NIMs should not be under pressure. Basically, you have to understand that why is the stock trading at much below the book value? Because your focus is not on profitability, your focus is on growth. Thank you. Yeah. Being see as a bank, we have to balance both the things. We have to balance the growth and also the profitability. When we say that bulk deposit, let me give you a data that when I say that our bulk deposit is less than 14%. It is one of the best in the industry among the public sector banks. Other banks are having bulk deposit which is much higher than us. When we say bulk deposit, it does not mean that it is at a rate which is higher than the normal deposit rate. It can be at the same rate at which the market liquidity is working at. That is the only thing which is there. We have very strong relationships with some of the central PSUs or the state PSUs, central government and state government where we are having salary accounts and other accounts where we get bulk deposit checks over there of INR 100 crore, INR 150 crore that we cannot refuse because there is an existing relationship going on with that PSU, central or state PSU. We have to continue with those relationships and by not taking that deposit if they are offering the deposit, say INR 150 crore, or if they have surplus liquidity with them. As far as the trade off between this growth and these margins are concerned, I can say that if you see our corporate book, we have degrown our corporate book by INR 3,000 crore. When I say that we have grown the corporate book by INR 3,000 crore, you can also see that there has been a growth on a year-on-year basis corporate of around 3% - 4% only. What has happened is that there have been quite a few advances at least where we have left the outstandings because the rates were very fine and we did not want to grow the book just because we want to grow the book and the margins are not there. We have shed some of the bulk advances, corporate advances over there. However, having said that, let me also tell that we have a pipeline of nearly INR 80,000 crore as I said, of which the RAM pipeline is around INR 10,000 crore and remaining is the corporate pipeline. We are treading a very fine line between our growth and margins. Both we have to balance. When we say that we are a public sector bank and one of the large banks, we have to balance both the things, growth and the margins. One thing I would like to add to your comment is bulk deposits basically is only 25% of the total term deposits. Even if you take into consideration only the term deposits, the weighted average term deposit rate that our MD has just told actually is as good as the bulk deposit rate. What happens is bulk deposit rate is not picked up in one go. Okay? It is actually picked up over a period of time depending upon what rates are available in the market. It averages around 6.9%. Even our retail deposits are also very high. If you see most of the banks, their weighted average term deposit is also very high for a very simple reason. The market doesn't make a very great difference between retail deposits and bulk deposits. Bulk deposit is actually a function of market data. Term deposits, if there is a liquidity issue, will continue to actually rise at a higher rate. Your point is taken. The spread, as you rightly say, the interest spread that we talk about should be at least 3%. We are trying to achieve that on a continuous basis so that our profitability improves. We have been trying to do that. It is actually a one-off quarter where the interest rates have not actually gone up because the liability rates have not come down. We have reduced the liability rates and then the passing on effect will happen in the second quarter. In the third quarter, once it comes, interest rates grow up. Today my interest rates continue to be at around 2.8% or so. We near each 3%, maybe in September, maybe in December. Then automatically my profitability goes up. Overall, you have to look at it on an annual basis. Quarter- on- quarter, there will be aberrations. The point which you are making is that the retail term deposit rate is almost equal to the bulk deposit. That is the situation today. No, I mean that's 6.9% for retail term deposit and 6.9%. Yes, bulk deposit. That's how it is. That's how the market is. Thank you. Thank you very much. There's one more gentleman who has joined virtually by the name Mr. J. Mundra. Gauri, kindly put him through. Hi, good evening. Good evening jay Yeah, hi, good evening, sir. Am I audible? Yeah, I can hear. Yes. Yes sir. Thanks sir. Thanks for the opportunity. First question on NIM and you know, you mentioned that there is no interest on IT refund, but if you can specify was there any. What was the amount of NII recovery, sorry, NPA recovery in NII and how do you look at net interest margin. Going ahead, assuming there is no rate cut from here onwards? Recovery, you see. NII recovery. See, basically the net interest income. Again, coming back to your point, J is. I had just answered earlier. If you see, the NII is a function of both the liability price as well as the asset price. Now, on the liability side, I have already told that the pricing that we do on the liability side is yet to actually come down. Even though we have actually reduced the prices, it has to get passed on. It will take transmission time, takes a little time in liabilities. It may take place in December. That's what we are expecting. Maybe September. There will be some runoff in the liability prices in terms of liability cost as well as pricing, and by December we will be able to actually achieve good interest rate. Once interest rate comes, then naturally your net interest income also goes up. Recovery will happen in December and accordingly, in terms of NIMs, also recovery will happen in December. If you look at my domestic NIMs, we did not see a lot of erosion in domestic NIM. We had around 2.91 last corresponding quarter. Now we are at around 2.82. So, around 8 bps erosion was there. That is precisely because liability prices h ave actually yet to kick in. My liability cost also is yet to come down. It will take maybe another quarter for me to actually achieve that. That is right, sir. Assuming all this thing play out, I mean of course this thing will play out that your cost of liability will come down with the lag. This asset pricing has already started but based on your best guess, you know, 2.91. Sorry, the 2.55% margin, how should it behave? I mean in next quarter it will go down and then it will recover. What would be your guidance on the NIM for the full year? Yeah, so as far as the NIM is concerned, see we are showing a NIM, a global NIM of around 2.55%, and the domestic NIM within that is 2.82% as on 30th of June. When we say the guidance for FY 2026, let me say that we have bottomed out as far as our NIMs are concerned at 2.55%. As far as the guidance is concerned, we should say that it should be in the range of between 2.5%- 2.6% for the FY 2026. I am saying that because of the fact that as we say, as far as the liability side is concerned, the repricing will start happening. Not everything has happened, and the reduction in the pricing in the liability side started from October 24th. The cycle should get completed by October 25th. Once that gets completed, Q3 and Q4, these are the full quarters where we should see actually the cost of deposit coming down for the bank. From there onwards, we should be seeing improvement in the NIMs and the net interest income for the bank. Thank you very much, Mr. Mundra, for joining online. Yeah, Jay, are you there online? Jay. They must have [left him] [crosstalk]. Okay. Yes, somebody has raised here, gentlemen from there. Yes. Hi team, good evening. Ashlesh here from Kotak Economies. Yes sir. Sorry, sorry. Ashlesh. Sir, I am here. Yes, people have unmuted. Did you ask? Did you ask about what is the interest component that we could get from the recovery as part of NII? Did you ask that question? Yes sir. Yes sir. See, one thing that I can tell you is now in the first quarter it is always muted in terms of interest income contribution through recoveries. For a period of the whole year, we get average around INR 1,300- INR 1,400 crore of interest income in the whole year because we keep recovering from the written-off accounts also. Average recovery in written-off accounts also goes up, then cash recovery also goes up, which actually contributes to my interest income. It will get restored in December and March quarters. It will get restored. That's what. It will not be a major contribution. What I am looking at is major contribution comes through the core spread that we talk about in terms of the asset and liability prices. Sure, sir, sure. Just to conclude, sir, you said that 2.55% margins have almost bottomed out, right? It should start recovering. Yes, yes, yes. See the. You should distinguish between global margins and the domestic margins. Our global margin is always less because you know we have a lot of global presence. We almost have around 18% of the book in global. Naturally, you know our NIMs globally will be less, but you know we'll actually be able to achieve it around 2.7, 2.8 globally, whereas domestic NIMs will be around 3% and will kick in maybe in December and March. Thank you so much, sir, for taking my question. you. Thank you. Yes sir, you may take the question. Sir, first question is on the SMA2 book in the corporate segment that has gone up quite materially. So can you share which are these accounts which have moved and what is the expectation of recovery from there? Yeah. As far as the SMA2 book in the corporate is concerned, it is there in the presentation, it is around INR 3,400 crore. There are around 4 accounts - 5 accounts, 4 accounts in fact, which are there. All these accounts are pertaining to one state, state PSU accounts, all of them. They have moved to the SMA2 category. We are confident that there will be no further roll forward in that and they should not be becoming NPA as we speak. We expect that some recoveries will be coming in that, collection will be coming in that, and we'll be able to roll them backwards to at least SMA0 level. All these accounts were SMA0 in June 2024, which have now rolled forward to the SMA2 category. We are confident that they will not slip and all of them are from state PSU. Have you made any additional provisions on these accounts as of now? Additional provision for only one account we have made because of the RBI circular of 7 June 2019. As per the RBI guidelines, only one account was eligible for incremental provisions. That we have made. Understood. Sir, secondly, the FVTPL book has almost doubled quarter on quarter from INR 23,000 crore to INR 40,000 crore. Correct. What is the reason over there? Yeah, FVTPL book. What is the return. In the last treasury book now, FVTPL book, it has doubled. No strategy. The thing is that what we have done, we created a book anticipating the rate cut and all that. That's why we have increased our AFS book strategically. It's a strategic decision on the part of the bank. Understood, thank you. There are others waiting online. One, Mr. Mohit Jain is there. Mr. Jain, are you still around? Mr. Mohit Jain? Gauri. Hi, can you hear me? Yes, good evening Mohit. Yeah, good evening ma'am. Good evening sir. Just wanted to reconfirm that you said the NIM has already bottomed in the current quarter at around 2.55 for the global and going forward for the year we expect it to be somewhere between 2.5 - 2.6 as the guidance. Yeah, that's correct. We have said that the NIMs have bottomed out for us at 2.55. If you see further into that, you see the net interest income there. We have not done well in the net interest income side. In fact, it is - 3%. The Q1 has been a muted quarter as far as the interest income is concerned. We expect that Q2 and Q3 will be much better as far as the interest income for the bank is concerned. Once the interest income for the bank improves and the outstanding in the advances improves, obviously the net interest income and finally the net interest margins will improve. For that basic logic and also the fact that the transmission of deposit will also happen in Q2 and Q3, with all these things in mind we are saying that the 2.55 global NIM is bottomed out for us. In case on the advance side, the transmission of the repo cut has already been done in respect of those which were linked to the external benchmark, the entire 100 basis point transmission has been done or some will b e done in Q2. No, no, it has been done on the same day when the repo rate cuts happened because as per our board-approved policy, whenever the repo rate cuts, the same evening we reduce our interest rate and 60% of our book is Repo- linked to external benchmark repo. That has been passed on immediately. That is also one of the reasons why there has been a compression in the net interest income and the net interest margin. Thank you, Mr. Mohit. Is there anyone sitting here who would like to put some question? Can I take this gentleman from—yes, sir, I'm looking at you. Yes, kindly. Ramesh Bojwani from Mehta & Vakil I was going through your presentation because I came in a little late. We were in IOB meeting in town and coming to BKC took more than an hour and a half. The one thought which comes to my mind is RBI with inflation coming well under 2% is likely to reduce the Repo rate going forward further, maybe in August or maybe in October, and it has already reduced 125 basis points and another 25 or 50 is coming. What is going to be the incisive impact on our NIMs, on our net margins, and how do we balance, readjust our lending, and balance the deposit rates with that? As far as the data is concerned, economic data and other things, retail inflation is well in control. Monsoons are also quite normal across the country. Right. There is no issue as far as the demand side is concerned. Demand in rural is good, but urban is poor. Yeah, that is fine. Rural demand is the key factor for which overall demand is there in the economy. The GDP growth is also because of the rural demand. Yes, and more or less it is also because of the consumption-led economy which is there in the country. Keeping these factors in mind and more than that, ample liquidity is there in the system. The Repo rate cut that the RBI has done is one of the major reasons not only for reducing the rate but also to give liquidity in the system. If you see yesterday's data, the market had a liquidity of more than INR 2 lakh crore. Apart from that, RBI has also cut the CRR by nearly 1% and that will be effective from September 6 in four tranches. That will also infuse in the system liquidity of more than INR 2 lakh crore. With that kind of liquidity in the system, our view is that in the short term RBI may not cut the repo rate because ample liquidity is there in the system. With that in mind, we feel that whatever the repo rate cut has happened at presently at 5.5%, in the short term it may not get cut. That's wonderful to hear. How do we reprice when these cuts happen on our lending and deposits? It is with a lag period, I am understanding. Yeah, deposit, deposit, Quarter of a lakh. Is there both in deposit as well as in the lending repricing of the rates wherever it is open? Yeah, there is always a lag as far as the deposit is concerned because the migration happens, takes some time. The interest rates which we have given, the fixed deposit that we have taken, say in the month of August 2024, September, and October, they will come all for repricing now. We are in the end of July and now we are entering in the month of August. The interest rate cut started happening on the deposit side from October 2024 when the liquidity started coming back into the system. We feel that once that starts coming, the deposit rates will be coming down, and once the deposit rates come down, then the interest expenses will come down and the net interest incomes will start improving for the banks. That should start happening particularly from the Q3 quarter of this financial year. Wonderful. The second question was, sir, you are a very big bank and you lend to almost all the sectors as per your presentation. Also, virtually every segment of manufacturing, services, NBFC is included. How are you reading the situation? I mean, the urban report is not very comfortable, but rural is very, very positive, even when you have mentioned. Overall, how are you read? H1 is not only as powerful, H2 is the most powerful and most heavy loaded going forward. How are you reading the situation? Will it be too early to say that? Are we kind of partially or somewhat entering into again a crisis, or is it just a fear? No. As far as our bank is concerned, as I told you that we have a very strong pipeline of credit, nearly INR 80,000 crore. Out of that, around INR 10,000 crore is RAM pipeline and the remaining INR 60,000- INR 70,000 crore is the pipeline we have in the corporate and the international book, also domestic corporate and the international book. We are expecting that the disbursements will be happening in the Q3 and Q4 quarters out of that. Once that happens, obviously our credit growth will be there and interest income will also increase for the bank. As far as the, as you rightly said, we have been giving credit, our credit growth in the RAM segment has been very robust as you see that we have been growing at a YoY pace of around 18%. Being a large bank, for us to grow at 18% is a good number. As far as the corporate book is concerned, again we are expecting that good growth will be there and it is across the segment, whether it is NBFC, whether it is infrastructure, whether it is to the industry or to the new segmentation, whether it is warehousing, data warehouse warehousing, whether it is for the green financing to the hydro or to the solar or to the wind. All kinds of segmentation, EV funding also, we are getting all kinds of proposals are coming to us and there is a pipeline already created to that. We are very confident as far as we are concerned that we will be able to grow our corporate book also and the overall credit growth will be there for us to sustain and improve the interest income for the bank. And also. Thank you very much, sir. I will come back to you later, please, because there are others waiting online. Mr. Sunil Jain, sir, he's waiting online. Gauri, kindly put him through. Am I audible? Yes, you are audible, Sir. I have a couple of questions. One, what is this exceptional item of INR 518 crore? Second, what are the options now available with the bank for recovery in the MTNL default? Is there some sensitivity or is there some discussion going on or will it be continuing in the same way like it is happening? Considering the public money has been involved. Third question is our number of branches have been reduced by 2 compared to the previous quarter. In metro it has been reduced by 2 while in the rural it has been reduced by 5. What is our strategy here going forward? Is it to rationalize some costs? Focus more on the digital or will be having some more branches going forward? These are a couple of questions, sir. Yeah. As far as the branches are concerned, we have domestic branches; we are having 5,304 branches, out of which the metro branches are 972, urban is 856, and rural is 1,901. Last year we have opened around 200 branches in FY2025, and this year we'll be opening around 203 branches. It's a mix of all metro, urban, semi-urban, and rural branches where we will be opening the branches. That all depends upon our strategy at the local office, at the zonal office level, where they see the potential of the deposit and advances growth. Typically, when we are saying we are opening new branches, we are going for CASA deposit, retail, term deposit, and the RAM advances. Wherever we see potential happening over there in these three basic areas of banking—CASA, retail, term deposit, and RAM advances—we are going for opening the branches. As regards the recovery, yes, recovery again, we will see a good recovery. As I said, last year we had done a total gross cash recovery of around INR 9,500 crore, which includes some recovery from the big ticket advances NPA accounts. This year also we are giving a guidance of having a gross cash recovery of the same level at around INR 9,500 crore. There was one first question with respect to one single figure. Exceptional item. Yeah, this exceptional item as Someone regarding the MTNs default. This exceptional item has come post RRB restructuring that the government has done. We have actually been asked to hand over two RRBs to the other banks, one to Bank of Maharashtra, another to Bank of Baroda. The carrying value, the investment there is not what we got in terms of price paid by Bank of Baroda and Bank of Maharashtra. Naturally, the difference has been accounted for as an exceptional item to the extent of around INR 500 crore. This carrying value is much more than what we have got paid. That clarification you will find in note number 14 of our notes to accounts. If you can go through, you'll be able to get that. Finally, regarding the MTNL, I'll just clarify that. See, we had three RRBs, right? The first RRB was Aryavart Bank, which was in UP. That has gone, and in that there was a minus of INR 849 crore, which is mentioned in the notes of accounts. The second RRB was in Maharashtra, Vidarbha RRB. In that, we had a plus of INR 330 crore, so that was coming back to us. The net figure is INR 518 crore, which we have netted from the global book. That is the -INR 518 crore. Thank you, sir. The last one regarding MTNL default, what are we doing on that already? Couple of questions turned into three questions. There are others waiting. Would kindly wait. I'll come back to you later. Sunil, there was one gentleman sitting here. Yes, kind of. Yes, you may ask. Hi sir. Thanks for the opportunity again, sir. In the EBLR book, how much would be T-bill linked? Do we have T-Bill linked? Yeah, see, as far as the EBLR is concerned, we have only repo linked. We don't have G Sec or T- Bill linked. All our portfolio, as per the board approved policy, is all repo linked. Okay, thanks sir. Answer either from RBI or internally when Should we expect the eclipse guidelines to. Be effective for banks? ECLC? There is no clarity at present when that guideline will become effective. Okay. Yeah, answer if you can just give the average maturity of your term deposit. The bulk deposit book will be very helpful. Duration of that duration? Yeah, a range bound duration like normally bulk deposit you take for six months to one year. The duration will be roughly around seven or eight months. Okay, roughly I'm saying. Yeah, term deposits, no detail about will. Be of the same because see we have the core deposits between one to two years. Okay, so average duration is same as bulk deposit. That's what I was referring to when my dear friend has asked that question. Basically, it is like that. Thank you sir, this was very helpful. Thank you very much. I'm taking this last question online. Which has come up. Another thing. Yes. I wanted to clarify because this bulk deposit and retail term deposit question you've been asking. See, basically the bulk deposit is about INR 3 crore and it is based on card rates. Naturally, we balance the payout in bulk deposits very efficiently in terms of managing based on whatever market prices are and based on our appetite to take or not to take. We take only when it is required to be taken. Otherwise, we don't take just like that. In terms of retail deposit, there will be flow, so that flow continues. Most of mine is in poor portion. Between one year- two year portion is the highest. It is across the banking system. It is like that. We always leverage short term funds with long term. That's how the whole banking happens. ALM is like that. Okay, thank you very much sir. This one last question which has come online from one Mr. Pradeep, the board had approved a fundraising plan of up to INR 20,000 crore in June 2025 through various debt instruments including Tier 1 and Tier 2 bonds. However, there has been no updates on any issuance, pricing, or filing since then. Could the management please clarify the current status of this INR 20,000 crore program? Has there been any delay in pricing, regulatory approvals, or market timing considerations? As far as the infra bonds are concerned, INR 20,000 crore. We have taken board approval for this financial year for raising these bonds. Presently, we have not decided when we will be going, but it will be definitely in tranches in Q2, Q3, and Q4. This INR 20,000 crore of infra bonds, as far as the old one is concerned, we have already present outstanding is around INR 12,690 crore in the old infra bond which we have raised. As regards the capital raising is concerned within that, the Tier 1, Tier 2. We have a board approval of INR 5,000 crore for this financial year FY 2026 in which INR 2,500 crore is Tier 1 and another INR 2,500 crore is Tier 2. Thank you very much, sir. Thank you all gentlemen for joining us today for this analyst meet, and thank you, sir, for enlightening us with this enlightening session. Till we meet again, thank you and goodbye. Thank you. Thank you so much. Thank you.