Hello. Good evening, sir. This is Sohail here from Antique Stock Broking. Can we start the meeting? Hello, Satyanarayana, Sir. Can you hear us? Yes, sir. We can hear you. Good evening, sir. Can we start the meeting? Yes, sir. We can start the meeting. Okay. Good evening, everyone. We welcome you all to Q4 FY 2023 earnings web call of Canara Bank. Thank you, sir, for giving us this opportunity to host the call. Today we have with us Satyanarayana Raju, our MD and CEO, Mr. Debashish Mukherjee, Executive Director, Mr. Ashok Chandra, Executive Director, Mr. Hardeep Singh Ahluwalia, Executive Director, along with senior members of the team. Without further ado, I hand over the call to MD, sir, for his opening remarks, post which we can open the floor for Q&A. Good evening to all of you. Good evening to all our well-wishers who are attended this interaction session, sir. I wish to present a few highlights of that, our Canara Bank's performance for the financial year 2022, and 2023 to all of you. I know that you might have gone through the presentation already, I would like to share some of the few highlights once again. Our global business has stood at INR 20.41 lakh crore with a growth rate of 11.72%. Our gross advances, global advances, have grown at 16.41% and stood at INR 8.62 lakh crore. Our domestic advances also has grown more than 15%, 15.01%. Our RAM credit has grown at 13.23 and stands at INR 4.77 lakh crore. With this, improvement in the business has resulted to an excellent growth in the operating profit. This current quarter also, we have recorded a YoY record growth rate of 16.94% and an operating profit of INR 7,252 crore. Year-on-year, if you look at that, sequentially for the whole financial year, our operating profit growth has increased from INR 23,090 to INR 27,715 crore with a growth rate of more than 20%. This resulted in a quarterly growth, year-on-year growth of 90.60% in our net profit, and that is, we stood at the net profit of this quarter, the March quarter is INR 3,175. Here, I would like to share with you that the first time a Canara Bank in the history of this Canara Bank, it has crossed the five-digit figure for a financial year in the net profit. The whole financial year, our net profit together has crossed INR 10,604 crores as against a previous year of INR 5,600 odd. Our net interest, this net profit or operating profit, whatever the growth we have shown, it was led by a net interest income with a growth rate of 23.01%, and the current quarter it stood at INR 8,617 crores. With these good numbers in the profit, bottom line, our gross NPA has reduced considerably to the extent of 5.35%, the present level is, within a YoY decline of 216 basis points. Our net NPA also has considerably shown a decline, declining trend, with 92 basis points YoY decline and stood at 1.73% as against a commitment of the Canara Bank at 2%. Again, we continued our strengthening the balance sheet, future-ready balance sheet. This quarter also we have tried to provide as much as possible. That has resulted to an improvement in our PCR at 87.31% with an YoY increase of 314 basis points. Further to add this, sir, some more actually the key parameters we would like, I would like to share with you is our housing loan portfolio has thrust area in our retail lending portfolio, that has grown at 14.27% and stood at INR 84,364 crores. Our gold loan portfolio is continuing our trend. Whatever the last two, three years we are showing the growth rate, this year also we could record the same growth rate, the growth rate is around 33.82% year-over-year and stood at that the portfolio is INR 1,23,185. Our retail credit has shown a growth rate with the support of housing loan with a double digit growth at a 10.91%, our overall outstanding balance stood at INR 1,40,000 crores. With all these things, I would like to share that the board has recommended for a dividend of 120% of the total paid up capital as against the 65% which we announced last year. For every INR 10 share price, now we are recommended for a dividend of INR 12 as against earlier last year recommended amount of INR 6.5. With all these initiatives and our return on equity has stood at 19.49%. Among the public sector banks, one of the best figures we can reflect in this balance sheet with a jump of almost 667 basis points. Our CRAR is 16.68%. We are continuing above the 16%. Though that we have shown the credit growth rate at more than 16.4%, still we are able to show the CRAR above 16% because of our internal accruals. Our return on assets also we have achieved at 0.95% year-on-year with the basis points of 38 basis points improvement. Our cost to income ratio, this is sequentially for whole financial year, we could maintain a below 45%, the 44.79% with a 137 basis points improvement. Our net interest margin, as we are promised to that, committed to the investment community or stakeholders that we will manage above the 2.9%. As against 2.9, the last two quarters we are reflecting our NIM of more than 3% and the just concluded March quarter also, we could able to show that the 3.07% NIM with an YoY improvements of 14 basis points. If you look at the poor five complete financial year, our NIM is now stood at 2.95 as against our guidance of 2.90. These are all the few highlights, sir. Now it's open for the dias, the people, the investors or our well-wishers. We are ready. My all the whole time directors, executive directors, Sri Mukherjee Sir, Sri Brij Mohan ji, Sri Ashok ji, Sri Hardeep ji along with me and our CFO and all our top management people, we are ready to take any of your clarifications and to clarify you, Sir. Over to you, Sir. Can we open the floor for Q&A, Sir? Thank you, sir, for your brief opening remarks. We'll start with Q&A. Participant who wish to ask a question can raise your hand. We'll take the first question from Gaurav Kochar sir. Please unmute yourself and ask your question. Yeah. Hi, good evening, sir. Thanks for taking my question. Sir, I have a few questions. Firstly, can you clarify what is this INR 720 crore which is there in the other provisions? What does this pertain to? Sir, this is the 720 crores is just to strengthen the balance sheet for future ready. Whatever we feel that there is some stress in some area, where even if it is in the news or something. To take care of that future shocks or any sudden things, to strengthen that balance sheets, these 720 crores have been additionally provided, sir. Okay. Okay. How much of- Not the specific. These are all additional cushion what we have in the balance sheet, sir. Great. Great. Sir, what would be the total quantum of these additional provisions today on the balance sheet other than PCRs? No. Actually, for against the mandatory requirements, we have quite comfortable additional surplus is there, sir. That our PCR is, itself is reflecting that we are at now 87%. Every quarter we strongly committed that at least 100 basis points additional cushion has to be brought to this, the whatever the NPAs are there. The same journey is continuing, and this quarter also we have strengthened our PCR from 86%-87%, more than 87%. That itself reflects the cushion, whatever it is available in that system, sir. Right. One is PCR. If there is over and above PCR, like you have provided INR 720 crore, just wanted to understand what is the total that you have already provided. See, you look at that, sir. Actually our absolute numbers in the gross NPA is around INR 46,000. Right. Whereas when it comes for that net NPA, it is only INR 14,349. That means that the remaining entire amount is under the provision available. That much cushion is there. Of course, as per regulatory requirement, we are supposed to provide certain amount, but we always go beyond that regulatory requirements and provide the additional, the provision. Ultimately, our aim is to see that our net NPA should come below 1% at the earliest. That is the motto we are moving on that. Got it. Got it. The next year credit cost at 120 basis points is assuming the PCR to increase further and in net NPA going below 1%. Is that the way we should look at it or no? Actually, our efforts will continue further, sir, but we have given that commitment to our commitment figures in the last PPT of the last page, that we are committed for the 1.2% in the credit cost. Of course, we are a little conservatively we are giving that, but we are confident that we will be much better than that. Sure. Even net NPA, we have given in guidance that 1.2%, but we are definitely confident of 1%. Got it. Got it. Sir, giving to margins, currently your full year margin was 2.95% for fiscal year 2023. Next year you're guiding for 3.05%, which is 10 basis points higher. I just wanted to understand what will drive that expansion. Will it be the MCLR linked loans that will come up for repricing, or will it be more of a mix change towards the RAM books then? See, entire thing, actually the initially also last two, three years we are communicating to the, our stakeholders that our composition of RAM and corporate will continue at a 55% and 45%. 2% here and there, depending on the opportunities available. Suppose we have a bigger opportunity in the corporate, we grow 2% more in that. If we look at that higher return side RAM, we divert it to that RAM. Ultimately our composition is that's the 45%, 55%, we may move to 43%, 57% or some. That's the range we may look at that for. Keeping in the margins are in our intact. That's the focus on the margins. The second one, what you are asking about MCLR and all external benchmarking rates. Our 49% of total asset book is under MCLR. This MCLR, even now we have 40%-43% of the portfolio is still yet to be repriced. Most of these MCLR linked accounts will be reset annual basis. That's the better comfort the bank is having in our hands. That remaining 40% of the portfolio still yet to be repriced. That will be repriced in the days to come whenever their respective account, loan account is completed one year, and that gives the additional income. Got it. sir, on the same question on the liability side, what percentage of the term deposits are already repriced and what percentage will come up for repricing in the next six-12 months? Actually, whatever the one year period what we have taken that's the entire thing repricing is going on. We are now repricing. We are able to reprice at a lower rate of interest. Whereas in the last two, second quarter, third quarter and fourth quarter, especially second and third quarter, what we have taken in the form of CDs or bulk deposits, we have raised rate little higher side. That we are now because in the first quarter there is no much traction from other banks, we want to encash that and we are able to encash it. We are repricing that in the downward trend. At the same time our focus more on the CASA deposits this time. Under the increasing last one year because of the high rate of interest regime, we along with the other industry players, we also have suffered in the CASA front. That has been little bit stagnant in the first two, three quarters. In the fourth quarter, we have seen some traction. Some quarter-on-quarter in the CASA itself, we have grown 4.26%. We want to continue that trend. That trend we want to continue in this, all the quarters of this current financial year. That will address a majority of my repricing, whatever it is to be done. Okay, understood. Okay. Just last question, sir. Gaurav, can you please rejoin the queue? Just last question, if I could squeeze in. Okay. Tell me, sir. Please go ahead. Yeah, sure. Thanks. Sir, the growth that you're guiding for fiscal year 2024 is around 10.5%. If you look at the ROE of the bank is well ahead of 19%-20%. In that context, do you foresee any capital requirement or you think that the internal accrual will be enough to meet the growth targets in the near term? Sir, we have given a guidance of a credit growth at 10.5%. Right? Right. The present CRAR in for the Canara Bank is 16.68%. I think we are one among the top, the highest CRAR banks among the peer banks in the public sector front. Comfortably in a common equity, we are comfortable in tier one and Tier 2. This 16.68 we could achieve it for the last one year, though the last year credit growth is more than 16%. Yes. Even if the regulator introduce Ind AS for an accounting system and the loan loss provisioning is to be required, that this time available is five years, and every year we need actually INR 8,000 crore. We assessed our requirement that in the five years our total requirement is INR 42,000 crore. Out of these INR 42,000 crore, every year approximately we need INR 8,000-INR 8,500 crore. Our net profit first time we have crossed INR 10,600 crore. I am sure with that even after announcing the dividend, 20% of my net profit, my existing accruals itself is enough to meet the additional requirement, whatever the regulator expects from us. If you maintain, even maintain at the double-digit growth in the credit, for the next two to three years, our CRAR without going to the mark we can easily manage above 14%. At the same time, in the next board meeting again we are going to the board only to replenish of our AT1 bonds or Tier 2 bonds which are maturing or which are at a higher rate of interest when the market is in our favor. We don't mind doing that. To that extent only we go to the board and get a permission in the next board meeting. We are not in plans for any common equity in the next one or two years because we are comfortable in that. Sure. Sir, just to clarify, you mentioned INR 8,000 crore of provision required for Ind AS. Can you explain a bit? No, sorry. Ind AS not here. This is not Ind AS. Far it has not been implemented in India. See Ind AS, that is a loan loss provisioning, credit loss provisioning. If at all even regulator comes for that, implements that, we are very active on that. That demands a higher provisionings. Okay. Also we can meet from our internal accruals. As it is, we are so comfortable at 16.68%. It is the highest among the peers, public sector peer banks, 16.68%. We don't require any additional capital at this moment. Sure, sir. Got it. Thanks. All the very best. Thank you, sir. Thank you. Participants, please restrict your question to two to three short questions. We'll take the next question from Anand Dama. Please unmute yourself and ask your question. Okay. Thank you for the opportunity, sir. Sir, first, if you can just help with, like you know, the broad breakup of slippages. What we observed is that for you basically the slippages have come up, but for other banks slippage have been on a higher side. If you can just spell out what's the aggregate slippage during the current quarter and how it compares with last quarter, and similar for the corporate and MSME. Your question, I understand that is regarding the slippages, sir. Yeah. Your voice is breaking. I understood that you are asking about the slippages. I'll explain to you that slippages, sir. Just you look at that, the slippages, our focus is very much on the slippages as well as on the recovery, both the fronts. If you study that the last entire financial year, that quarter-on-quarter, the slippages is coming down. The March 2022, our slippages were INR 4,736 crores. It has come down to the December 2022, the slippages were INR 3,210 crores. Whereas now the current quarter, March quarter, our slippages are further down, and now the current quarter was only INR 2,973 crores. As against that, the cash recovery in the current quarter was INR 4,349 crores. As against that slippage of INR 2,973, our cash recovery itself is INR 4,349. There is INR 1,400 crores more than what we allowed the slippages. Here, I would like to share with you that, sir, our SMA position, if you look at that, our SMA position also has drastically come down. Last March 2022, our SMA, if you look at that INR 5 crore and above, 1.53%, which it has come down to 0.76%. Even 50% almost it has come down. That's the way we are working on that in the both the fronts, together to address this NPA position, sir. That's the actually we could reflect, we could brought down the gross NPAs to the, what the% we are announcing the gross NPA and net NPA%, that we could show that 5.35 and 1.73. Sir, my question was about the broad breakup of slippages during the current quarter in terms of Agri, Corporate, MSME. Broad? Slippage bifurcation you want, sir? Breakup of slippages. Yes. INR 2,973. INR 2,973. Actually, there are no account has slipped from the corporate, sir. This entire INR 2,973 from the RAM sector. INR 1,450-1,500 crores is from the MSME sector. INR 980-1,000 crores is from agriculture. Approximately INR 500 crores is from retail. Okay, sure. Sir, secondly, you have a recovery from return of accounts of almost about INR 2,000 crores in the other income. What is the broad breakup of that, where from this recovery has come from? No, recoveries in return of account is continuing whatever the... We are doing it regularly for every quarter. This quarter, March quarter, we got a good amount because we got some recoveries from IL&FS Group companies and some NCLT resolutions. Otherwise, in the small ticket size, whatever we are able to do it for the continuously for last three, four quarters, this quarter also has been yielded the good results. That's the reason we are able to show good results in the bottom line, both in the operating profit and net profit. It has contributed to us almost INR 2,150 crores, sir. sir, how much was from IL&FS, sir? It's two accounts we got some resolutions, sir. The amount is around INR 600 crores, sir. INR 600-650 crores. Any further resolution expected, sir, in first quarter? Definitely, sir. That's the Action is going on. exactly we cannot say that in this quarter or next quarter. We are expecting in this financial year also some resolutions on that through NCLT, whatever the process is there. Anand, can you please rejoin the queue? Thank you. We'll take the next question from Mr. Ashok. Please unmute yourself and ask your question. Yeah, this is Ashok Ajmera. Good evening, sir. Namaste Ajmera Saab. Namaste, sir, all of you. Fine, fine, sir. Fine. Happy to see you, sir. Sir, good to see you as the MD and CEO of such a large bank as Canara Bank, sir. Having said that, sir, compliments to you. Thanks. -for the fantastic performance of the bank. As you yourself said, I mean, you have already crossed INR 10,000 crore of the profit. Even in this quarter also, the performance is very good overall, even the profitability point of view, we see. I have a couple of questions and some observations, sir. On the treasury front, sir, because of the existing pressures which were there in last, you know, about 6 months or 8 months time, even in the last quarter, this quarter also couldn't perform so well. Rather, the treasury income and the profits have gone down. Now, when the things have little bit easing down, you know, the rates are coming, I mean, have taken a pause. Where do you see treasury contributing to our profitability in the coming quarters, sir? This is one. On the credit growth, sir, though the overall growth this year has been good, but in the last quarter, I think our growth was muted. In the domestic credit, if you take it's only 1.39%. You have given a very conservative target also of 10.3%. Going forward, how do you immediately start, like this quarter, what is the development so far in 1 month? Are we going to achieve this credit growth above 4.5% or 4% and from where it will come? Whether the corporate also will contribute to the it. On the technology front also, sir, the bank is very fairly placed, but we would like to know what else is going on the digital journey of the bank and what kind of budgets are allocated. End-to-end solution for the entire operations of the bank, is there any plan and when those plans will be fulfilled, sir? These are the couple of questions. One on Agri loan acquisition. We have acquired the loan of INR 1,322 crore. What is the nature of this loan? You have stated that most of it is double A, triple A, but what kind of agriculture loan is that where the security is nil as per the table given. These are the few questions and observations. Sir, treasury related, our ED Mukherjee Sir will answer you. First, I will answer the other questions, whatever it is there on that. First, you have spoken about the credit growth, what we have projected 10%, what we have recorded in the front of the March quarter credit growth. Sir, March quarter also RAM actually even in absolute numbers, we have grown considerably the INR 15,000 crores in the RAM credit itself. The corporate also we have grown INR 6,000 crores. Generally, when you look at in a year, it is a INR 25,000 crores absolutely numbers. If you grow it reflects in the 3% point growth in the quarter-on-quarter basis. Actually the overseas you look at that our exposures were little higher in the oil companies, which we were lent earlier there to the extent of INR 15,000 crore to the Indian oil companies on a short term basis. The domestic corporate credit still continued that to grow that. The only thing that there is, there are repayments in the overseas corporates of oil companies, not in the any other companies. It's only in the oil company. These are all Indian government oil companies only. That the short term people are there. Again, they may avail it in the June quarter. It's not that they will not avail. It's a short term purpose. We have met that requirement and it has, payment has come down. The domestic corporate credit, there is a continuation of credit is there even in absolute numbers also there is almost INR 6,000 crores growth there. The way we gone little slow is to address the bottom line, the whatever the stress on the margins. Margins like NII. NII, we don't want to compromise on that because you are all very much aware that the last previous two quarters we are resource mobilization, we are depended more on the term deposits. That gives some pressure on our NIMs to address that. In the advances, we have started repricing of certain loans. That's where actually the growth you look at that it is little slow, but at the absolute numbers we were doing that the good growth. There are good sanctions on hand. We already have more than INR 22,000 crore of sanctions even now. Last in 1 month also we have considerable sanctions we have made. Every quarter there is a board CAC is sanctioning the new proposals to address that we don't want to keep anything beyond seven days. The sanctions are there. Disbursement are expected to happen in those sanctions. We look at that the credit growth in the corporate, whatever we have seen in the last two to three quarters, that will continue in the domestic front. The, because the overseas front, that whatever the INR 15,000 crore we have given it short term loans, that will be repayable. Partly it has been repaid in the March, partly now also it has been repaid. The, to that extent only it looks that it is a little low, but it's nothing to do with that our domestic credit growth. RAM, we have given an emphasis on the RAM. We want to grow much bigger in the RAM side because we want to improve our ratios little further in that. Last quarter you see that from 54% to 55% we have improved. This time again, we want to improve from 55% to 56% or 57%, depending on the opportunities available, where we see that the higher returns will be there and the lower risk will be there. That's where the actually the restudying of our portfolio. It's nothing but that's the reason initially also we announced that our standard is the 45%-50%, but always keep a cushion of 2% growth anywhere, whether it is in RAM or whether it's a corporate, depending on that respective quarter or the financial year, depending on the availability of the opportunities. Our opportunity look at that higher returns, sir. We focus on quality at the same time higher returns. These two while keeping in that, this is the actually the thing. Otherwise, literally there is no question. June we are expecting the quarter-on-quarter growth of 2.5%-3%, and we are confident of doing that. The 10.5%, whatever we have given the guidance to the market, that will be quite comfortably achievable. It's not an. Whatever the trend we are maintaining 8% we have projected and we have achieved a double digit. This year also our tendency will continue. Only while growing that we are keeping margins in our mind. We are not compromising that margins. That's except that nothing, there is no change in our approach or anything. The second one, the technology front, what you asked is, we are taking last continuously. This is the third year we got our board approved budgetary allocation for even the capital CapEx investment in the IT exclusively. That's more than INR 1,200 crores. That INR 1,200 crores will continue. Every last 3 years we are investing in the IT more than INR 1,000 crores. Though little bit it impacts on my operating expenses when I'm investing heavily, in the keeping in view of technologically transforming so that I can reach the younger generation. That's ultimately where the wealth is. There you cannot neglect that younger generation. We are coming out with so many new initiatives. On April first week itself, we have kept our house ready for with the transfers and all those things. We have announced several new products, both in the technology as well as to attract the CASA also. You might have seen many advertisements also is coming. We are very aggressive in meeting the people and all. We have come out with premium payroll package to attract the salaries of big corporates. Simultaneously to make the corporates comfortable to deal with us, we have come out, we have launched API Banking in the first time with the 50 more features, 50-plus features. We want to upgrade that features this year with another 150 more features, so that this year we want to introduce the 200 features and no corporate need to come to the bank for operating it. That's the one act two we are considering it that, sir. The cross-border transactions where to tap the NRIs and all, Bharat Bill Payment, whatever, it is the first Indian public sector bank who had a tie-up with the Bharat Bill Payment from Oman country. Those NRIs whoever is there, they can make the all the payments directly by using that, and that tendency will continue. We are directly working with the RBI, the research wing at the Bengaluru, and we are in regular touch with that. Recently also, we have launched a form number 15 G, 15 H. Submission of that form number 15 G, 15 H through our website, through only Aadhaar OTP. Nothing else, no paper, nothing is there. You need not visit anything. That has been first introduced by us only. That has been again, another initiative. The one more initiative is UPI, whatever the credit card on UPI, public sector bank, we are the first initial banker to come on that. Our CBDC, the Central Bank Digital Currency, we are already live, sir, in that. They have permitted us in 13 cities. We are working on onboarding the board, the customers as well as, the merchant establishments also. We are working on that. Like that, we are initiating many initiative, new initiatives, ultimately our aim is to re-meet the requirements of the younger generation and tech-savvy people, that we want to make ultimately the branch banking in their mobile. For any purposes, they need not come. We are about to finalize our digital lending end-to-end platform. I think it commences its operations from June month-end. Business analytics already it is very active. Among the EASE, we are the highest earning banker for Business Analytics. To strengthen further for big data analytics, we have taken a project. We are working on that big data analytics many more initiatives, sir. Here afterwards, any technological initiative, you will see the Canara Bank is the forefront forerunner in that every initiative you will, we would love to see our Canara Bank in that. These are actually initiatives, some initiatives, sir, so many are there. Because of time constraint, I'm not explaining all those things, but we are moving in the right direction to attract the younger generation. I'll request our Mukherjee sir that to address your third question, that's regarding the treasury and all. Thank you very much, sir. Mr. Ajmera, to respond to your question with regard to treasury, how we are looking forward, with regard to, you know, income and profits in the quarters to come. Let me tell you, that because of this change in yields, you know, yields going up and then coming down slightly, we have not been able to do well that much what we had expected in the previous quarter. Now with the yields coming down, there is an opportunity because we have a very high HTM holding that has helped us, that has come in good state during our previous quarters, where which has increased our portfolio yields from 6.28% to 6.63%, which is one of the best among our peers so far as our HTM portfolio, this thing is concerned, holding yield is concerned. We want to capitalize on that because we have a high, you know, HTM holding now that the yields are coming down, but they are not coming down to that extent where we can, you know, get so much of profit. Yes, we will definitely try to leverage this situation of lowering of yields and try to maintain a profit, which will not be extraordinarily high, but which will be there in this quarter at least. We will see the market and then see how it happens. What is the duration? Our treasury portfolio duration, average duration, and minimum duration is 4.26. Out of that AFS duration is around two. That also, you know, is very much under control. Sir, my one question was on the Agri loan acquisition. Pardon. Which one, sir? Loan book. Which one, sir? On Agriculture loan acquisition Acquisition. 1,322 gross. I just wanted what kind of loan book has been acquired by the bank during the quarter. No, it's not that acquisition, sir. You might have seen that the growth rate, whatever this is there in that. There is no, it's a routine way of doing that agriculture banking, whatever we are doing for the last. See, the percentage of, if you look at that previous December 22, it was a 24% agriculture. Now in that 25% agriculture. It is supporting by the gold loan as well as for the regular self-help groups and for food processing and all. Where you have seen that the acquisition actually No, note number 17, sir. The accounts acquired note number 17. Ajmera ji, please rejoin the queue as there is several participants are waiting for that. Note number 17. We'll come back to you, sir. Acquisition of under note number 17. We'll take the next question from Mayank Gulgulia. Please unmute yourself and go ahead with your question. Hi, sir. Thanks for taking my question. My question, topic is related to like the previous participant where you shared, like, ACL provisioning requirement could be INR 42,000 crore and translate to INR 8,000 crore-INR 8,500 crore. INR 42,000 crore will be incremental ACL requirement on top of whatever we are holding right now. Am I understanding that right? Is my understanding right? The question clarity is not there, sir. Why, sir. Sure to that. Sir, can you repeat that question, sir? Yeah. ACL requirement is INR 42,000 crores. That we have shared like to previous participant question. That. And- Okay. That's right. That translate to like... Expected loss, credit loss provisioning. Yeah. -credit loss provisioning, isn't it? Yeah, yeah. that translate to. What is the question on that? Yeah. That translate to almost 5% of loan book. That seems to be on relatively higher side. What is driving such a, like, high requirement on ACL, whether it's any particular segment or is it higher relatively SMA-2 book? No, nothing, sir. It's a overall. Entire thing is only expected credit loss provisioning. This assessment of INR 42,000 crore is for that entire Ind AS. Whatever that various regulations, because of that regulations, whatever the extra provisioning it is expected from the system, we are well prepared to face that. That's what actually the our communication is because our internal accruals are so strong that we need not go to the market for depending to meet that re-regulatory requirements. That's the actually the communication, what we are communicating to you. Always rising from the market is one source that is available to the Canara Bank. We can anytime, we can rise without any hesitation, there is so many customers, the investors are there to invest in this. At this moment, since our CRAR is already more than 16%, it is the highest among the peer banks. We don't look at, to see anything that hurry that we have to go to the market for bringing that. Again, I am telling you, it's not the expected credit loss only. It's the remaining, the so many features, it is total together as per that Ind AS. That is for five years, not in one year. The one-year requirement is only 20% of that. That comes around INR 8,000. The quality of the credit, ma'am, that it is not because there is a quality is less and all those things. You can look at that our risk-weighted assets is the lowest among the peer banks. Our risk-weighted assets is only a 65%, whereas all the peer banks risk-weighted assets is 74% and above. There is a gap of 9% cushion to the Canara Bank. What we told the other banks requirement will be much, much higher. Our bank requirement is we are quantified and we are well prepared to face that. That's what actually our communication. Thanks for that. Mayank, please rejoin the queue. Mayank. We'll take the next question from Jay Mundra. Please unmute yourself and go ahead. Jay, please go ahead. Please unmute yourself and go ahead with your question. As there is no response, we'll take the next question from Mona Khetan. Please unmute yourself and go ahead with your question. Yeah. Hi, sir. Good evening. I have two questions. Good evening, Mona ji. Yeah, hi. Firstly, the MCLR loans, you mentioned that about 40%-45% is yet to be repriced. This is as a percentage of advances, right? The 40%, 45%. Yes, madam. Let me say that it's not that 40%-45% of total advances but what is actually total portfolio of INR 8,62,000 crores, 49% is under the MCLR regime. That means the 50% let us say that INR 4,30,000 crores. Out of that 40% is still yet to be repriced. Okay. That means around INR 160,000 crores. Okay. This is likely to be repriced largely in H1 of next, this fiscal. 100%. 100%, madam. It's actually the generally all these loans know the resetting, interest resetting will happen annually. As in when it happens, the first quarter, whatever last year happens, that will be repriced now. The second quarter, this second quarter, that's the way it is, it moves on. Got it. My second question- Mona, can you please rejoin the queue. There is several participants are waiting for that. All right. Thank you. We'll take the next question from Ankur Gupta. Please unmute yourself and go ahead with your question. Good evening, sir. Good evening, Ankur-ji. Yes, sir. Sir, thanks for the opportunity. Sir, first of all, congratulations for the great set of numbers. Thank you, sir. Sir, we have achieved all the parameters as guided for the FY 2023 except CASA. Sir, regarding CASA, I would like to understand what is the reason behind the such low CASA because if we compare to our peer banks like SBI, BoB, PNB, all are having CASA of about approximately 45%, and we are having CASA at around 33.47%. Just want to understand your view on CASA. Sir, further... I'll split your question. Sir. Sir. One more, sir. Further, what are the steps we are taking to improve the same? Definitely, sir. I'll split this question into two parts. One is why the last year, it was stagnated or it is a low. That the last year is of course is a industry level experience. When the highly interest, regime is there and there is a competition in the market and every bank is for sourcing that resources to meet their resources requirement, when they are offering at 8% for the retail term deposits, it will be tempting for the everybody to their keep the part of their savings into the term deposits. That's the major impact. Otherwise, nothing that's a serious impact on that. It's a bigger interest rate, driven impact on the CASA for the last year, muted growth, which we even we could not, achieve the target what we have set for that. That's the industry level experience. Historically, this bank is 117 years old bank, sir. In this is a basically South-based bank. Even during the amalgamation, again, one more South-based bank has been merged with this. These South-based banks historically is an experience that they are since the beginning 100 years together, that's their CASA ratio is very, very low. The reason may be the tendency of majority of their exposure is in the South India. Their more branches are located in South India, where actually the branch, the CASA are there, these banks presence is less comparatively that. That might be the 1 reason that otherwise there is no other reason to say that why it is low. It is in all the South-based in banks if you study it, you will realize this that the CASA is historically is low. In Canara Bank, we were also in the last three years, post- amalgamation, we started our journey at 39%. Last year, we went up to the 35% from 29%. The last year, you know that the market conditions, the rate of interest is in a higher side, and there is a rate war in the industry for grabbing the resources. That has yielded every bank, not the Canara Bank, that their CASA has been to that extent indented. Otherwise there is no such special things. To address this, what we are taking the initiatives is we want to be very active in the first week of April itself. We kept our house ready. We have completed our process of internal promotions and transfers in the first week itself, we made the people in their respective positions, especially in the key positions, within seven days. We launched on April 3rd, almost in the addressing the CASA only, more than five initiatives. In that initiatives, the major thrust we have given it to the salaries accounts. The salaried accounts, the product we have brought it is a salary premium payment, case, the salary product we brought it. In that first time we covered term life insurance for the salaries based on their fitment into that whether it is a silver product or a gold product or a diamond product, there are four products are there. Depending on that, we cover their life coverage from INR 1 lakh to INR 6 lakh crores. That's the first time in India. No other bank has come forward. We are looking at the overwhelming response from all big corporates because we realized that this salary package has to be driven from employer, not from the employee. Our target is on that. We are moving on the right direction. Simultaneously, when you want to attract a higher quality corporates, the big corporates, they need a technological front support. To strengthen their requirements, same day we have launched API Banking so that these corporates need not come to the branch for meeting their any of the day-to-day requirements of the banking needs. We have started our API Banking with 50 plus features. We are upgrading it in every quarter with 50 odd new features on that. Non-salaried class also we have come out with one more product as a select in the rural, semi-urban and urban and metropolitan. That will take care of the requirements of the non-salaried class. We kept in mind in the super seniors, where the 75 years and above, where we have a little courtesy towards them because these were all the loyal customers for the Canara Bank for decades together. We want to give an additional incentive so that we need not make them to wait in the branch for their meeting their requirements. In wherever the doorstep banking is available in 200 places. Around 200 towns it is available as on date and across the all the banks through outsourcing model. Whatever the 14 services are available for meeting their requirements, so far it is being paid by the customers. Here based on the average income and all, monthly three services we ourself wants to absorb the expenses. That gives more comfort to those super seniors. We are also working for two more new products for women-centric as well as professional students-centric, which we will launch it very soon. We also launched a current account product. That is also going well, and we are modifying it to further requirements of that. We have launched one single number for contact cell. Our contact center, that is 1030. If you anybody can do that 1030, they can get 35 services in 12 vernacular languages. These are all the initiatives, few initiatives we have taken, sir. We are taking much, many more such initiatives to address this CASA. Thank you for the detailed answers. Sir, one last question, sir. Thank you. Sir, one last question, sir. We'll take the next question from Jay Mundra. Please unmute yourself and go ahead with your question. Yeah. Hi, sir. Good afternoon. Hi. Sir, you mentioned. Hi, sir. Sir, you mentioned that on the loan repricing side, INR 1.6 trillion worth of loans, you know, will come for repricing and hence we will have yield benefit. If I look your term deposit side, right? On absolute number, the term deposit itself is some INR 8 lakh crores, right? Which will also reprice. How are you then expecting a margin increase for full year? Sir, actually, term deposits, they need not wait for one year to reprice their deposit. The depositors are at liberty to reprice their deposit. Whenever there is a higher rate of interest, they can switch over to the higher rate of interest within just one day. Most of that, whatever the, actually the one-year period, whatever the deposits, what we have taken, almost more than 90% deposits have been repriced and kept in that 666 scheme or 400 day scheme or even 444 scheme, whatever it is going on now. That repricing has been happened already, sir. Our the deposit side, whatever we are looking at the repricing is on the bulk side. We want to reduce that rate of interest because in the first quarter there is a less traction from other banks. We are trying to reprice at a downward trend. The customer side, their repricing is more than 90% is already completed because there is no bar that they have to wait for completing that contract period. You are saying, sir, cost of deposit should fall for Canara Bank, and that does not seem-? I am telling you, sir, that will be maintained at a present level. I don't say that it will reduce. Right. That depends on how my CASA grows in the next three months. If my CASA grows as we expected, if our efforts comes to the reality and we get good results on that, then definitely there will be a downward. Otherwise we look at that the cost of funds will be already what we have incurred. Our interest expenses, that will be more or less in the same level, sir. Sure, sir. Last, sir, what is? Can you please rejoin the queue. We'll take the next question from Sushil Choksey. Please unmute yourself and go ahead with your question. Congratulations to Canara Bank team for excellent performance and all the milestone achieved. Sir, I have questions. Good evening, Sushil Choksey. Thank you, sir. What is your outlook on treasury as margins, the lending rates have peaked. Treasury is indicating higher rates. Bond market is clearly indicating of piercing 7 and maybe 6.75, and some of the peer bank also indicated for the year end. Secondly, your outlook on subsidiaries. What is the roadmap? Because you are taking lot of initiative and what is gonna be in the subsidiary? Sir, Choksey, subsidiaries first I will address it. Afterwards, our Mukherjee sir already of course he explained about that treasury, but he once again he will reiterate that what he has told. Regarding subsidiaries, you look at that, sir. All our subsidiaries and associates, they are earning a good profits now. As on that, the value of these subsidiaries for us is around more than INR 12,500 crores. We have given a roadmap to all these associates and subsidiaries that this value should be at least a 100% growth. That is to match with the INR 25,000 crores to improve from INR 12,500 to INR 25,000 crores the value of the Canara Bank value. It's not that the subsidiaries value. Canara Bank value to the extent of whatever their shareholding, that has to be multiplied to the double that, to the from INR 12,500 to INR 25,000. In addition to that, we also given a go-ahead with Canara Robeco Asset Management Company and Canara HSBC Life Insurance to initiate steps to go for the listing. These two will come for the listing. They are, generally the expected timelines is around 15 months to 18 months. Once they complete all these formalities from the regulators, but from board level, from the Canara Bank level, we already has given a go-ahead with these two companies for listing of those things. As stakeholders also, we have taken other stakeholders into confidence when we communicate to these respective boards. Your Can Fin Homes, MD has reported he has taken a full control of that, and the results have come down, they declared already, and that also has shown a INR 621 crores profit. I am sure that with the present current MD, he's an experienced guy, and this Can Fin Homes also will do extremely well. The remaining, the computer, Canara Bank Computer Services, we want to strengthen it. There is a scope for that further strengthening. Canbank Venture Capital, we are strengthening that also because there is a lot of scope and tractions in that. The only thing that the Canara Tanzania Limited, we may likely to go for the closure of that. We are already on the process, which is evaluation is going on that. Just for the namesake, we don't want to have any subsidiaries. It should give some value to the bank. That's why Can Fin, the Canbank Financial Services is already defunct. Some litigations are there. Once that litigations have been addressed, that company also will be closed, sir. These are all the actually, our roadmap in short term and long term. Congratulations. Now I request. An excellent person at Can Fin Homes. Yes, sir. Yes, sir. Thank you so much. Now your treasury related question, our Mukherjee sir will address you. Thank you, sir. Good evening, Mr. Choksey. You see, your question was with regard to what will happen to our treasury income in the coming quarter. That's right. Sir as I have told the previous, you know, person, that now the yields are coming down, but very slightly. We have actively built up our HTM book during the previous regime when the yields were moving up. Now we want to capitalize that, and we want to, you know, use that and convert it into AFS and then, you know, go to the market for, you know, earning profits. It won't be a very spectacular profit, but we will continue that trajectory of profit making in the this quarter also. After that, it depends on the market situation. We will see and then we will evaluate and see how it pans out, and then we will move. Choksi sir. Profitability will be there, but at a lower pace. I want to clarify to you, under even that last two quarters toughness, among peer banks, we are the better performer. That will continue. That's the second issue, yeah. Congratulations also to Mr. Mahesh Pai for doing excellent. Thank you, sir. Please do join with him. Thank you. Thank you, sir. Participants, due to time constraint, we'll take that as the last question. I now hand over the call to Sohail Halai from A ntique Stock Broking. Yeah. Good evening. Thank you everyone for joining in. Good evening, Sohail. How are you, sir? Fine, fine. Due to time constraint, we'll end this call now here. Probably if you have any closing remarks, kindly share with us. Sir congratulations for a great set of numbers, and best of luck. I request all the participants, if still any questions are there, they can send to our MD Secretariat mail. That will be addressed immediately, sir, so that your questions can be addressed immediately. Thank you, sir. Thank you so much. Thank you, sir. With this, we end the call of Canara Bank for QFY 2023 earnings. Thanks a lot everyone for joining in. Thank you, sir, a lot. Hello? Hello?