Good morning, ladies and gentlemen. On behalf of IndusInd Bank, I warmly welcome you to our Investor Day. Thank you so much for taking your time out. We have an exciting day planned ahead as we share our future focus areas. The day will commence with a strategic overview by our MD and our CEO, Mr. Sumant Kathpalia, followed by presentations of individual businesses. I would like the esteemed audience to also know that we set up an exclusive zone outside the ballroom. This zone will be open during lunchtime and after we've finished with all our presentations. Please take a moment to visit each one of these booths and get an experience of our offerings. Without any further ado, I'd like to invite on stage our Managing Director and CEO, Mr. Sumant Kathpalia, to address the audience and set the context for the day. Good morning and welcome to the investor presentations and the Investor Day. I think it's very important to do these type of meetings. It gives a brief, you know, cursor and an overview of what the bank is doing and what is the bank all about. Why did it do the things which it did, and what is the way forward for the bank as we move forward? It's also an opportunity for you to meet and interact with the management team and see live some of the products and the capabilities which we have created or are in the verge of launching. I think the stalls out there will give you an insight into what IndusInd is all about and what IndusInd is planning to do. I think we've got a complete agenda for you today. I think, I do my first presentation, followed by the Consumer Banking presentation. I think important why Consumer Banking, because liabilities is a focus, and we will talk about liabilities and how... what we are going to do on liabilities. At the Affluent Banking, which is a new vertical of the bank, what is it that differentiates us from the rest of the world? Why do we say Affluent Banking is going to be a big business for us. Our vehicle finance, our domain specialization, followed by lunch. Microfinance, again, one of our domain. Corporate Banking, the changed Corporate Bank. It's not the same Corporate Bank which you saw. I think what is the new changes which have happened in Corporate Bank? Diamond Group. I think a lot of people have questions about our diamond. We've never exposed our diamond head in the business in a detail. We will expose the whole and what do we do in the diamond business, and why is it so profitable as a business. Our digital banking, and I think the new way, we are not looking at this as an enablement. We're looking it as a business unit, and I think what are we going to bring in the bank. If we have time, we will go to the product groups. If we don't have the time, we will cut there, and we will show you a brief cursor into the, a new product launch, which we are going to have, a new business launch, which we are going to do. I think then we will go into the experience center. There are many presentations. We'll cut it short if it's time is required to cut it short. I think if we do it by 5:00, I think we should be over. We will see if the product presentations can be accommodated today or not. I think the presentation covers three big parts. The first part of the presentation is really towards the backdrop to our strategy. Where are we coming from? What is it that we made us revisit our strategy? Why did we do what we did? I think a brief preview of the past to look at things which were happening. How have we molded ourselves as we move forward? Are the building blocks in place today? We will show you some data on it. How are we looking? Whatever we said that we were focused on, have we moved ahead or are we still lagging on those data points? How will we achieve the growth as we go forward? I think one thing you must remember, this bank has to be looked as a compounding bank and not as a volatile bank. It's a sustainable compounding 22%-25% CAGR bank. That is how you should look at this bank as we go forward, yeah. It will be a very, very predictable, sustainable bank, and that is what our focus was, and that is what we have created as we move forward. I think before I go into the presentation, I think the operating environment has changed, and I think, we must look at how the bank is coping up with the operating environment. I think a lot of buzz is around in the market, and I think it is very important to address that buzz, and that's the precursor to the presentation. Tightening liquidity. Will the bank be able to grow? The questions which are asked is: Will the bank be able to sustain its growth in a tightening liquidity? The confusion which is happening is liquidity, granularization of liability, and funding are three different issues. I think there is a mix, and I'll talk later in my presentation, how people are combining these three issues and creating an issue across the board. I think if you look at liquidity, yes, there is a tightening of liquidity. The RBI has sucked up liquidity from the system. We are now INR 2 lakh crore excess still in the system. That doesn't mean that the bank is not liquid. We have an LCR of 125%. Surplus liquidity of INR 47,000 crore in our balance sheet and a cash deposit ratio of 82%. We've not gone to 95%, 98% or 100%. We are liquid. Our growth is intact. Till we are able to touch 30%, 35% CAGR for the next year, we don't believe we have a liquidity issue. When we talk about the liquidity and the funding, I will talk to you how our funding is completely different from the rest of the industry. Competition of deposits, HDFC. It's going to come. Everybody else will not be able to create deposits. As a consequence of that, the demand for deposits will go up. Yes, in a tightening liquidity situation, there is a rise in the COD. The rise in the COD is also being countered by different, you know, retail growth which we have been doing. If you look at our retail growth, our retail growth has been 16% overall, and our deposit growth has been 15% higher than the market, higher than the 9% growth with the industry. Say that the bank will not grow and there will be a competition deposit, we've said we will continue to grow liabilities at any cost and the annualization of liabilities. I am making that statement again. Healthy credit growth. We said in Planning Cycle Five we will do 16%-18%. Second year was. First year got wrong. Second year was a complete washout with COVID-2 playing out. We did a 10% growth. This year we said we will grow at 20% above. We're already at 18%, and quarter three and quarter four, you will see the growth. We will touch the 21%-22% growth which we have said, and our growth will be there to meet the targets which we have set for ourselves, 16%-18% CAGR over three years, and we will meet our growth targets. Interest rate cycles. I think and banks like us which have more fixed rate book of 52% and a less floating rate book of 48% will have a NIM issue. Our NIM expanded by 4 basis points. Of course, the industry expanded. Some of the banks expanded by 30-50 basis points. You have to look for yourself whether that NIM is transitory or is it sustainable. When we talk of our NIM, we talk about sustainability of our NIMs. I think we will always be in the margin range of 4.15%-4.25%. We've always said that, moving into a different margin range of 4.25%-4.35% as we move forward. I think it's a, it's a very differentiated play. We don't have a mortgage book. 18% EMI increases in the mortgage book and 70% of NIM expansion happening through the mortgage book, which we don't have, is a, is a, is a way which you have to predict whether that can continue to be expanded in the way that industry has expanded. We are doing well on NIMs, and we will continue to deliver the NIMs and under the guidance which we have set. Improving asset quality, that was another one of the thing. People are showing 20 to 40 basis points, and I think, yes, we are in a benign environment on this. The portfolios which we have are differentiated. Please understand microfinance is 15%, 13%-15% of our book, and CFD, which is the vehicle finance portfolio of ours, is 23% of our book. 46% of our book are prone to a little bit higher flow. If you compare it with the industry, and we will show you, we are at least 40% better than the industry on this value. You will continue to have flows, we've said our guidance is 120 to 150 basis points of credit cost, and we should be able to deliver that guidance this year. Going forward, we have given a guidance of 110 to 130 basis point, and we should be within that guidance of 110 to 130 basis points. Let's start with the presentation. These were some of the concerns the market had, and I wanted to address them upfront. What happens is a lot of talk happens around these topics, and I think it is very important to address it. Let's get down to the backdrop of the strategy. I think before I talk about it, you have to understand what are the management beliefs and why have we got the strategy and which we've got. Our business philosophy lies on two basic foundations. The basic foundation is we are a universal bank. We are not a microfinance bank. We are not a vehicle finance bank. We believe all segments and all businesses are profitable in this country, and that's why universality plays in this. We believe even the corporate bank is very profitable if it's done correctly. I think we will continue to balance our growth and have all segments participating in our growth as we move forward. That's the number one hypothesis of the management belief. The number two hypothesis of our management belief is you must have a differentiator in the market, and that differentiator comes through the domains. 45% of our businesses are where we are number 1 or number 2 in the business. Growth is not important. Quality of growth is very important for us, and that's what domains over a period of 30 years of experience has shown how domains have created value for the organization and have sustained the quality of which we talk about in the businesses, and we will talk about this as we go later in the presentation. Our approach towards customers. I think we believe digital is the way forward. We don't believe digital will take over completely or branches can take over completely. I think what is important, confidence will always come with the physical distribution. I think the growth will be driven through the digital value propositions. I think that is a mix of physical and digital, and how you integrate that and convert them into a value proposition is what you will see as we talk about. It's not about enabling. If you do products and services which are available in a traditional branch in a digital, I think it's not. It's an enablement. It doesn't create value in the long run. Those values are already embedded in your cost-to-income ratios. Everybody has achieved that. How you create a model which is differentiated from the branch distribution and create value, which converges with the branch over a period of time, is the value which I'm talking about and which is the way forward for this country as we move forward. I think personalization in client engagement, I think is very, very important. How do you personalize and create experiences which the clients want at his time and at his moment? I think you will see what we are creating on customers as we move forward. I think on technology, three parts play a role. Is your infrastructure capable to manage scale? I think scale is the new buzzword. I think payments have scale. Digital payments have huge volume increases which have happened on the digital payments, whether it's on UPI, whether it's on cards, whether it's on IMPS, everything, I think. How do you manage security as you manage your infrastructure? The cybersecurity risks are very, very important as you create this. The other is to deliver UI/UX, and I think there is a big differentiator. The banks were used to back-end systems and maybe a mobile device, and engaging with the mobile. I think today's world is about UI/UX and how you create a front-end capability, which distinguishes you in a very different way, and creates an experience for a client, I think is what technology is all about. The uptimes on that, on the front-end systems, the uptimes on the experiences which we give to the client, and personalization which we give to the client, I think is all about the new technology. I think governance, and I think the governance is all about the culture of the organization. Are you creating the right culture and right capabilities in the organization to take care of sustainability and continuity of the business? I think, I think, the management belief is all about the sustainability is very clear. Quality of earnings is more important than the quantity of earnings. It's a very big statement which I'm making. Please remember, the bank will always focus on the type of earnings which you will see are more granular, more annuity-driven, and more process and technology-driven. I think that's a big differentiator which you will see in the management belief as we move forward. What is IndusInd? What do you like IndusInd for? I think it's a diversified franchise. It's a very different franchise when you compare the big banks and us. You'll find this franchise has unique propositions which are very, very differentiated. If you look at our domains, we provide livelihood loans. 43% of our business comes from these domain specializations. In every category, you will see us number one, number two in that category of domains. As a consequence of these domains, our funding profile is completely different. These are not domains which we have created. These are businesses which have been there for 30 years and have seen differentiated cycles, different cycles on geopolitical risks or demonetization or even in the pandemic, and have come over and continue to sustain themselves over a period of time. I think that makes us a very, very differentiated, a large bank with holding domain specializations, 3 domain specializations of a very differentiated nature, and all the 3 we'll present to you today in a very differentiated way. Robust liability funding I wanted to add the funding. One of the issues and angst against us was the liability was not granular, and we were dependent on bulk deposits or market borrowings. I think if you look at our data, and we will show it to you later in the presentation, you will see our dependency on market borrowings, market deposits, bulk deposits has gone down considerably. We are not anymore a bank which is on a CD ratio of 100% and above. We We are at 82%, 83%. We're not a bank which is dependent on borrowing or short-term funding from other banks. It's not the way we do our business anymore. I think if you benchmark us, I think you will benchmark us that we are best in class among the peers in that. The granularization exercise is still on. We are 41% as per Basel III LCR norms. We want to move to 48%-52%, and we are moving at a very fast pace. I can assure you this much. So I think, the funding profile and liability franchise also what we've created. I think when you hear Shamitha's presentation today, you will see how differentiated the liability franchise is. We are not throwing arrows in the open market and saying it should strike. We can't. As a mid-sized bank, you cannot. You've got to have a very defined strategy on liabilities and saying, "How are you going to grow liabilities, and how are you going to grow market share in certain geographies, certain segments? And how-- what is the next phase of that segmentation?" I think you will hear that presentation today, and how we differentiate ourselves in the liability franchise. Strong product groups. I think, did you all know that we are the third-largest treasury in the banking industry, in the Indian banking? We have a global market group which is one of the best-in-class. We are overweight on a global market book 10 x the size of the balance sheet which we carry. You can see that, you can compare it, and I think it's a business which we are proud of. I think, if we have time today, we will run through that presentation. Our transaction banking group. People talk about ecosystem. People talk about how I do the ecosystem. We were always doing it. Maybe we've not advertised. I think our transaction banking group carries a huge weight with the small size of balance sheet which we have on the corporate bank. It's the type of businesses. We will give you some experiences and examples of what we've done in that area, and I think you will feel proud as to how this bank has differentiated itself. For example, we are the largest escrow holder in the country, whether it's RERA, whether it's NBFCs. We're very strong in these two verticals, real estate and the NBFC vertical. We get all the flows out of these. RERA, there's an escrow account. We manage the RERA account. 90% of the RERA accounts are with us. Lot of NBFCs' growth escrows are with us. That makes us a differentiating proposition as we move forward. We have created capabilities using Bharat Financial and how we do the power distribution and do the collection capability. You will see those examples and say, "Why have we got the best product groups to support our business units and get the value experience for the client?" I think disproportionately large distribution. When we look at our distribution, don't talk about 2,300 branches. We're not 2,300. We may be 2,300 physical branches on branch banking side, but we have 1,900 BC-led branches in the microfinance side, and another 1,700 branches in this vehicle finance side to support our business. It makes us equivalent to the large banks which are operating in India. We can convert them into deposit-taking branches tomorrow. We've already got the capability and the ability and investments done in the distribution as we create our business logics. Please understand this bank is not a 2,300 distribution branches. It has what people call Bharat. We have a bigger distribution reach in Bharat than anybody else, 3,500 branches sitting in Bharat, tier 3 and below. We have 2,800 and 300 physical branches of banking-related business. We are completely different as a distribution franchise, and we've already invested in that capability as we move along. I believe we have one of the fastest and off the blocks on Digital 2.0, not as an enablement, but as a business. You will see the launch or some shades of it in the launch, which is our individual launch, and then followed by the SME, which we will launch in 3 months or 6 months down the road. You will see what capabilities and what areas we've gone and how we have differentiated ourselves from the others as we move into that business. It's not about a product, it's about an experience. It's not about selling a product through a channel. It's about basically experience, how product flows in into the clients. I think it's a very, very differentiated experience, and a very, very experienced management team. I think what you will see over a period of time, and I will introduce the management team members, a lot of you have not met the management team members as a consequence. A lot of management team has changed, but we did it slowly and gradually without affecting the business. There are no more the large oaks who were sitting. Absolutely young, energetic team which is there, who've taken on the businesses, specifically in the domains which we have and how we are running those domains. This is our management team. I will request the management team members to at least raise their hands because a lot of people have not met them and have been introduced to them. I think, Arun Khurana, Deputy CEO. When we say about a Deputy CEO, we say, "What is a Deputy CEO? Can two CEOs co-exist as a consequence?" We've seen how we've divided responsibilities and how we've run the business in a very... Arun continues to have specialization in global markets and our global markets, I think the whole foundation, and he runs the product piece for the bank. Arun Khurana, I think the Deputy CEO of the bank. Arun, can you raise your hand so that people see you? Yeah. Sanjeevani Anand, Head of Commercial Corporate Bank, I think been with the bank for long. It's the orientation which has changed over a period of time, the way our businesses have undergone. I think Arun, Sanjeevani. Biju, the stalwart of the diamond business, I think been with the business for around 30 years, runs the business. I think we don't have so many accounts relation. We just run 50 relationship, but we run them deep. That's the business. The 4% or 5% of our book comes from Biju as a consequence. Sriram, who took over from Partha, you've known. I think he's been running this business since 18 years, 20 years experience in CFD, runs the whole and see the transition, and we've never seen such growth what we are seeing and disbursements which we are seeing on the business. Very well-acquainted with all basics of the business as we go along. Soumitra Sen, Head of Consumer Bank, he took over from me, runs the full consumer bank in and out, including the consumer assets piece of the bank. J. Sridharan, I think, a ex-CFD guy, moved into banking, understood the CFO and has managed the transition. Has managed the full volatility in the microfinance which he took it, and has seen the growth in the microfinance as we came along. I think Samir Dewan, Head of Affluent, comes from RBC. He was the CEO of RBC in Singapore as private banking. Runs the whole affluent banking channel for us and has created a fantastic business model which you will hear. Siddharth Banerjee runs the global markets piece. Been with the bank and a lot of experience in global markets now. Rana Vikram runs the liability piece as a standalone individual, creates programs and what, how the liability should move, creates the transition. Govind Jain, the CFO of the bank, I think a lot of you should interact with him when you have the time. Runs the finance function of the bank completely. Ramaswamyappan, I think, runs CRO. As a continuity, we have the CRO who's there. I think Ramesh Ganeshan runs the technology and the CGMO piece and been with the bank, manages that whole technology transition and this global markets. Zubin Mody continues to run the HR piece of the bank. Anil Rao runs the whole solution delivery and the operations piece of the bank. Anish Pal runs the wealth and para banking piece. Anish, not there. I didn't see him. Charu runs the whole digital and the strategy piece of the bank. This Roopa Satish, who was the corporate, I think, run, has done a fantastic job on the ESR capability and the portfolio management of the, of the bank in the, in the thing. Murali, who's not there today, is the compliance head of the bank. Jyoti Prasad comes from Yes Bank, runs the internal audit. A huge candidate who's been into... Indrajit Yadav. Sanjay Malik used to run the investor relation. Indrajit Yadav runs the investor relationships. That's the management team all about. I think it's very important to put the faces behind it. I think except for 5 people, all are new into this unit. Everybody is new into this unit. What was the bank known for? The bank was known for scale with profitability. I think you will recognize this bank again, except for the 2 year. We believe in scale, we believe in domain specialization, and we believe that we have to grow faster than the market in the phase in which we are in. I think we've, over a period of years, have given you a 23% CAGR on the asset side of the business, and domains have run that business. You will continue to find domains getting added as we talk about the new strategy. I think you will see that domains have been a very, very integral part of our business. When they did not grow, we did not grow our businesses. Deposits also, people may not think, 21% CAGR on the deposit side of the franchise. I think you will continue to see the growth. I think the retail growth will be higher than the asset growth as we move forward in our businesses. Our branch expansion has continued. We continue to believe in the branches. We are at 2,345. We will end this year at 2,500. We will talk how we will come and how we will do our branch expansion. We've continued to invest in our employees. I think we have 36,000 employees in the bank roles. We have another 28,000 employees in Bharat Financial and another 17,000 employees in IMFS. We are a very, very large distribution and a capability which we have built over a period of time. The bank, however, and we must realize, faced external and internal challenges. I think concerns on the corporate book payment, I think our corporate book, I think there were 5 accounts, 5 relationships which bled us. I think whether we took inordinate highly exposures on them, and I think that's a learning which we've imbibed into the team. If you look at, you know, our corporate bank today, I can tell you it's very, very granular and very, very. I think we've learned from those experiences, and we've gone ahead and moved ahead. I think government deposit. That's where the granularization of liabilities is happening as a consequence. I think our high impact items, you know, high touch contact businesses got affected during COVID. Microfinance business as well as our CFD business did get affected during the COVID period. I think we've countered that, and we've come out of it very, very fine. Even if you look at the restructured book, we did not restructure Microfinance so much because we believe that restructuring is not meant for. We restructured the bus segment, where we believe that there is a value proposition. We believe in the medium and heavy commercial vehicles where there was a value proposition. We did not restructure the personal vehicle segment. We did not restructure cars. We did not restructure scooter. Whatever the small amount we restructured is because of the political pressure and which we had to do it. I think otherwise, our restructuring was to do only valid restructuring. We did not restructure BBG so much. We did not restructure cars so much. We did not restructure personal loans. I do not believe they are meant to be restructured. It's better to let them flow and take the hits as and when. That is how I can clearly say, I carry a book which is much more stronger than ever before because I've not restructured anything which is not meant to be restructured. I think if you look at it, the bank's profit over a period of time, I think has grown gradually, except for one year where we talk, we saw a dip because of the COVID and we took more provision. I think the bank is back. I think already you would have seen quarter two results. We've delivered a ROA of 1.81% and a profit of about INR 1,800 crores. I can only tell you, what you will see from us is the granularity of the profit and no volatility in our earnings as we move forward. You will continue to see this growth happening and at a very stable pace and at a compounding space. You will see that as you go along in this business criteria. We are very well covered on our provisions. I think we've created contingent provisions and our CCR is 72%. All books are at 100%, 95%-100%, except CFD, where we believe we've done a PCR of 40% because there's a repossession and the loss on sale of repossession is 30%, 25%-30%. Otherwise, all our books, whether corporate, we provide 100%. Future, I provide 100%. You go to microfinance, 95%. You go to cards, 100%. I have created more, and I believe that's the right way to provide a 90 DPD, rather than carrying and dressing your losses over a period of time. I don't believe in that. I think that's the right way to run the these businesses, and that is why these businesses are doing what they are doing as we move forward. I think the bank responded, and I think we created the PC five vectors. I think our PC Five theme was scale with sustainability. We changed scale with profitability to sustainability. I think there was a very big. The learning was how do you create sustainable growth with scale without creating volatility and such issues in the business which we face them. I think the five themes which we adopted in that period were leapfrog digital banking, and we will see how digital has played a role when the digital presentation comes into play. Fortifying liabilities, and when you hear consumers presentation, how have we fortified and how have we grown higher than the market in this place in what we have done. Scaling up domains of expertise. I've always said domains creates value. Domains will continue to invest in new growth engines. We will talk about what are the new growth engines and how they have performed. Conservative and robust practices, specifically on credit, on technology and on operations, and how the governance has played a very big role as we move forward in the business. I think strategic priorities were retail liability search. We gave a target of 48%-52%. We will come at by the end of this year, we should be at 42-43, and should move to 48%-52% as we move forward because the liability has grown faster, overall liability. Fine-tuning the corporate bank approach completely completed. I think corporate bank is now ready for scale. You will see scale coming back in corporate bank. Holistic rural banking. You will see how rural banking is the new. People talk about Bharat. We already had Bharat in bed. How holistic rural banking and what contribution it has to our business. Scaling up of domains and how will we enhance the domains as we go forward and new growth boosters. I think, these were the sustainability metrics. Ready to deposit ratio less than 95. We were around 116%. I think we said we will all should be between 92%-95%, and how we've maintained that. Certificates of deposit between 5-10. We're less than 5% right now on the certificate of deposit. Retail LCR between 45 and 50. You will see how closer we will get. We were 19% and how we've moved ahead on the LCR deposits. Unsecured retail in the credit card and personal loan and in the non-vehicle asset, less than 5%. We have the microfinance book, we continue to be at 3.5-4% on that book. TCR of greater than 65, we are at 72% on the book. Lower non-funded to funded ratio, we are at lower to non-funded ratio right now. We also gave some numbers. We said our loan growth will be between 15-18% CAGR, we will meet that number this because this year's growth will be in 20s. The CASA ratio greater than 40, we are already at 42-43% on that. Our revenue growth exceeds balance sheet. It's happening. Our revenue growth is exceeding. PPOP loans greater than 5%. We are at 5.6%-6%, I'll show you the trend is greater than 5.5% today. Branch network, 2,500 we will achieve. Customer base, I think we will end up at 33 million-34 million because it got affected with the COVID wave to large extent, and that year the acquisition was slow at that point of time. I think, this is the background on what the planning cycle. Where are we today? What have we done which is so differentiated, Are we really leapfrogged into the future as we're talking about? I think if you look at all the eight areas, whether it was liabilities, whether it was corporate bank approach, whether it was maintaining healthy margins, operating profit margins, continued investments on growth boosters, I think we have achieved each one of them, and I will go into details. I think look at these items. When you go through the foundation for the growth is almost there. Yes, on granularization of a liability is a journey. It will reach another two years to get there. We are already very stable on our funding and the growth profile of the business. Let's start with liabilities. That's the talking point these days. I put that as the first slide. 80% of our growth which has happened, has happened on liabilities in the retail part of the business. That's one message which I want to give you. All our growth which is coming in now in liabilities is granular growth. It is not bulking money which is coming into play. We are very, very focused on granularization of liabilities as we move. This has happened as a consequence of our NTB shaping up. The NTB which has shaped up, has shapen up to about half a million accounts, you know, which has gone. I think that is the run rate increase, which I think in a quarter which you've seen on the business which has happened. I think what you've also seen is the narrowing difference, differential with large peers in the distribution network. We've continued to invest in distribution. A lot of banks, for example, our peers all stopped investing in distribution. We continue to invest in distribution as we move forward and scaled up the new initiatives. Affluent and NRI came into their own. In a very tough scenario, affluent and NRI delivered outstanding results for the bank as we do it. Our cost of deposits went down. During this time, when the market is up 190 basis points, we are up 50 basis points. I'm showing you the cost of deposits also and the impact. It is because the long-term nature of the liabilities which came into play. Of course, our liability will increase, the cost of deposit, but it'll not be at the same pace as what our, what our CS market or the repo rate is increasing. Of course, our reduced concentration of deposit. We're now at top 20 depositors, 17, and we believe we will end this year at 13% of those. We are already in line with the big banks on all this. We were 27%. We brought it down over a period of time. I think there has been all these six sectors show you what? They reflect that the bank is on right track and its dependency on the bulk deposits, on the market borrowings has reduced substantially. The large bulk deposit rates today are at 7.9%, and they were at 5.5%, 5.6% about 6, 9 months back. If my dependency was high of 30%, 40%, my cost of deposits should have increased at a faster pace than what it has increased right now. Please understand this, the dependency is reducing on market borrowings and on costs. As a consequence, the granularization of liability has come into play. We will continue to be 50-75 basis point higher than the market on our pricing, which was 200 basis points earlier. We said till the time I achieve 48-52% in Basel III LCR norms. Strong liquidity buffers, this is a question where I think a lot of confusion gets created on how the growth will get sustained. The questions are about growth, the question is, are about sustainability. I think our LCR ratios are at 125%. All banks, good, bad, ugly, we are in the top tier on the LCR. We've continued to maintain our LCR ratios at 123%. With buffers in place on average liquidity, we've continued to maintain liquidity. I could have increased my NIM by reducing the liquidity. I would have dropped my liquidity, I would have improved the NIM because I'm lending at a very low rate in the reverse repo market. I said, for the sake of the organization and sake of growth, continue to maintain liquidity for the tough times, we've continued to maintain liquidity. I think our credit deposit ratio reflects that we've not over-leveraged the market. Our dependency on certificate of deposit is 3%. Our dependency on borrowing has gone down to 13%. In the borrowing, 60% of our borrowing, this is what the funding franchise comes because of the domain specialization businesses which we have. We get funding from SIDBI, NABARD at very attractive rates. For example, we just picked up money from SIDBI in the month of October at 4.5% for 3-5 years money, which has no stack costs, no regulatory costs, so 80% margin plus here. Our portfolios are eligible for refinance from the developmental associations, whether it's international, whether it's domestic, and we get funding and we can raise this to 20%-22% at any point of time. It's just that we want to remain at a bar of 15%-20%, and that's why we've not grown that business. It is refinanced and we told. If you look at our short term foreign currency, it's only 5% against the market at 8% or 7%. We are at 5%. All others are long-term borrowing, money for us. We are not going and doing borrowings at a different level and doing short-term funding. We're not doing that. Our funding profile gives us the capability to manage the liquidity and manage our growth. That is where you will see our cost of funds, where cost of deposit is higher, our cost of fund is only 25-40 basis points higher than the market because of the capability which we have, because of the businesses which we possess. I've talked about corporate bank, you will hear the presentation, but I can tell you on restructured book as run-off, it's very less now. I think, what is our standard book is now gone into 0.5% and go to 0.3% as we move forward. Our corporate book franchise is now very granular and very capable of running the business and is now pivoting towards the growth. What did we do in the corporate bank? While Sanjeev will go into details on the corporate bank, I think the granular book has come into play. If you will look at this book now, it had long-term and large concentration. I think that has gone away in the business, and I think we have taken, we've sold it down or whatever hits had to be taken, we've taken, and we've moved on with it. I think portfolio rebalancing has been done to chunky exposures. I think the credit has come out very, very beautifully. We've understood and we've rewritten the rules of the game on the credit side. I think build specializations on specific verticals. Five verticals which we believe are very important, health, RE, NBFCs, logistics, and education and one more. I think it's agri, I think. The five businesses are all of them verticals, and you see the growth on those verticals which has happened. Look, ROA focus is a very clear focus, and we believe this with the reduced NIMs and everything can still deliver a 2% ROA. I think what the focus on 2% ROA is a very, very important thing. Fee income is more granular than what it was earlier. There is no investment banking income. You would have seen it. Their fee to asset ratio still is between 1.6-1.7. They cannot deliver 2.4% because it's become very granular. It does not depend on any bulky fees which has come into play. I think this is something which I just wanted to share. I think this is the advantage of domain. Our book is at least 30%-40% better on 60 DPD and 90 DPD. This is index assets than the market. Whether it's microfinance, whether it's CLB, we are much better than the market. I think this is a testimonial of what domain specializations and what businesses which we have. When people say, "Oh, they have a high-risk, high-return book," I do not believe we have a high-risk, high-return book. I think we have businesses which are prone to high risk, which are managed very well, and the bank keeps contingent provisions against those businesses to reduce the volatility in the earnings. Please understand, these 2 businesses have done fantastically and come off very well now. Our Gems & Jewellery, which people, "Oh, this is a very high, high risk." We have no SMAs, no restructuring, no SMA One, no SMA Two in this business. This is what we like. This is the slide which I like the best. Stable NIMs. Our NIMs have been range-bound, and this is what you should get from us. Granularization. Our investment banking fees has disappeared. Our fee mix has moved towards consumer. Our fee mix is not dependent on bulkier deals. Our fee mix, our corporate fee is coming from very granular effects and treat as a consequence. Very different fees are range-bound, you know, its cost to income ratio. It may go up, it'll come back. It's range-bound, 41%-43%. It may be up right now for some time, it'll come back because it's range-bound, the operational leverage is coming back. I think, which is important, PPOP margin, which is among the best in the industry, range-bound. We're not fluctuating on our businesses and healthy provision coverage, again, range-bound with significant contingent provisions carrying. I think, the vectors of the business look very, very solid as we move forward. Very range-bound, very fortified as a consequence of the provisions and the contingent provisions which we carry and the businesses which we carry. We will continue to deliver improvement in margins as we move forward. When you hear the PC stage, you'll see how our margins will improve as a consequence of the stability which we have created in our businesses. This is, I think, a new investments which we did. Our rural businesses have gone into 18% of the book. Sorry, can you get the presentation back, please? Yeah. Our net relationship value on an affluent, and when you talk about affluent, why are these guys getting into affluent? They're not a big wealth management people. You will see how the strategy has played out. If you would have played the wealth way, you would have lost the business completely. We cannot compete in the wealth right now. We don't have an AMC, we don't have an offshore branch. We competed in our expertise and created the wealth as a consequence of our expertise. You look at the affluent banking and you will see how the business is doubling almost every second year as a consequence of it. Our NRI banking, in spite of NR sustained flows going down and our ability to retain flows going down because they were all being used for consumption. I think the NR book has continued to grow. We are now at 2.8% of the market. We should end the year at about 3.2%. We continue to grow this business as a consequence. Our tractor finance, we are 9.5% of the market, and we are third in this market. A lot of this business is with Kotak and some NBFCs. Kotak is number one in it. We are number two in it. I believe we should continue to see the scale up on this. Affordable housing is a little bit of a disappointment. We thought we will touch INR 4,000 crore this year. I think we're still getting our act together on the affordable housing, but it's a business which we like and we continue to grow within the CFD domain because clients belong to that domain. Our merchant advance is a new line of business which we have created. I think we will touch about INR 3,500 crore by the end of this year, INR 4,000 crore, and you should see this business going to INR 10,000 crore in the next two years. This is a business which comes at 23.6% yield at a fee of 3.5%-4% and at a credit cost of 2.5%. It's a fantastic business which we have created. We're 62 year to second-60 of business doing fantastically well. A very differentiated business through the Bharat Financial franchise. Of course, we continue to invest in our people. I think, the structure in the corporate bank is a testimonial of how we've created the structure. All our people. Our digital unit has been created as a separate BU and 100 people are on board. We've created a digital experience center. I think it's a completely different capability which we've created. I think, our governance, our social, our... Our audit, we have created a completely different assurance function in the bank to make sure that all the three units of the bank, which is risk management, compliance and internal audit, come together and create an assurance function for the bank, which is very critical as we move forward. We are the only ones who've also created a system and a capability to manage the assurance function as we move forward. I talked to you about risk management. I think, I think the learnings have been imbibed into our capability. I think, I think, I think we are focused now on granular loans and working capital loans. It's not that we don't do term loans, but we do term loans for clients who have working capital loans as a consequence. I think conservatively, we have focused on sector focuses. We've reduced the focus, we've not grown our RE exposure. It's still at INR 41,000 crores. We've maintained that as a consequence. I think that's something which we've done, tightened our overall group exposures as well as sectorial exposures. I think data has played a very great role. We've invested in data analytics. We've invested in early warning signal systems. I think an analytical team which has been created in the risk management unit is completely different. We've updated our policies and procedures here. There were policies and processes which had not been removed for nine years where the business has moved. We've now got a completely different automated system to track our policies, procedures, and governance around that. I think law and digital management policy mutual ensuring timely review of these policies and procedures. I think our risk management, our operational risk management has completely changed in the bank, and that is very important for you to know that the bank is not talking about numbers. It talks about compliance, governance, and culture of the organization as we move forward. Of course, on technology, I think our focus on technology has been on four specific different things. One is, how do we create scale and manage scale? I think in today's environment, how do we create and manage scale, and what is the infrastructure which we use? What should be on cloud? What should not be on cloud? Should we invest on our own infrastructure? Should we... I think we found our answers, and I believe we have a very robust acknowledged by the RBI that we have one of the best technology infrastructures which we create. For example, we created enterprise payment hub much ahead of the others, where payments, instead of going through one route, can actually get stored and forwarded at a very different time because Finacle as a system has limitations to process transactions. It's how you manage the volume of transactions and how you create capabilities has been. That's the number one capability which we create. Customer experience is our second. What is the UI/UX capability which you will create? How do you create personalization into this? What are the type of applications you need to create personalizations? What do you need to do to do that? I think we invested in those applications. Our front-end capabilities and campaign management modules now is not. You download and do it. It is interactive with the clients at the point. Your new capability which you created, which personalize your screens, or personalize your thing as to what you want and what transaction you are doing and what is important. For example, if your bill is due, the first screen on mobile screen will show you your bill is this much, due on this day, and but your balance is this much. Do you need to use the line of credit to pay the bill? That's the type of. Your screen change bases your persona. If you are doing a shopping, did you know that you also have a shopping offer next to your house at this place? It's a very, very personalized and it's very intuitive to what you are doing as of now. You'll see a very differentiated experience in this. I think top-line IT, cybersecurity, best in class. I cannot ever say we've gone ahead of the market, but we are with the market on investment decisions on cybersecurity and our product innovation, and I think, we will continue to invest in product innovations on IT to create the structure which we want to create. I think, when people are struggling on IT, I can tell you we invested last two years, and as we talk, we have INR 700 crores of capital expenditure in the IT to get to more new things as we move forward, because we want to keep ahead of the pace on the IT, and that's our backbone. We've invested heavily into the IT space as we move along. Of course, our HR, I think, we never talk about it. I think the type of things we've done, we believe that employees create a long-term brand and a reputational value. We've not seen any attrition in one, two, three, four, up to four levels in the organization. Where we've seen attrition is in the front-end level, and we are coming out with an employment engagement strategy there also. I think the type of initiatives which we've rolled out, I think, for example, we actually rolled out a program under Elevate for women in the organization. We do paternity leaves for parents and when they have babies, up to N number. Thirty days of paid leave can be taken during the year at any point of time. That's the type of things which we do for our employees, and I think we don't talk about it. Everybody will do a learning module, chatbot or a mobile app. What we do, we add that little bit of personalization into our employees, and I think that is very important, and that is the stickiness. Employees who stick with us post 1 year stay with us forever. Our attrition is within the first 12 months. It is not after 12 months. That is where we are addressing the core issues. I think we want to become the employer of choice, and you will hear it later in the presentation. As you grow your organization, employees play a very, very important and a very critical roles as brand ambassadors of your organization, and we are investing on our employees. This is what we moved. I think, I think sustainability, credit to deposit ratios less than 95%. I think our certificate of deposits continue to be at 5%-10%. Our retail LCR continues to be at 45%, 41% against 45%-50%. Our unsecured retail is at 4.3%. Our PCR is at 72% and our lower funded ratio at 2.85x. So we are completely aligned to the way we said on the sustainability. We met all our sustainability index, which we had set for ourselves with the board, and it is with the board, and it's in my KPI, that these are the sustainability metrics which we will do. Of course, now I'll come to the third part. So this is what has happened. How do we go further? What is the growth parameters for this organization as we move forward? I think there are, again, 6 parameters which we are going to face the growth on. I think loan growth acceleration. I now believe this bank is ready to 23%-25% CAGR. Bank will deliver a 23%-25% CAGR as we move forward into Planning Cycle Six. I continue to believe that this is what the bank is all about. This bank was not about 10%-12% growth. This bank is about 23%-25% with sustainability metrics in place. So the only difference is sustainability will come into play in all our businesses as we do. Deposit mobilization will continue till we achieve a 48%-52% Basel III LCR. We will continue to give interest rates. It's not that we will stop the deposit mobilization, Our whole focus is granularization of liability because we've seen as the interest rate cycle rose, we did not if we were 40%-45% bulk deposits the way we were, our cost of deposits would have risen very fast compared to the other. That is the issue. The cost of deposit has started more. While you may give a higher, the moderation in the cost of deposit in a higher interest rate cycle happens because of the retailer deposits which come into play. Leapfrogging digital, you will see us a big player in digital. Our experience is that we should be 5 million accounts in 3 years with a balance sheet of INR 25,000 crores in digital. That is the balance sheet which we want to create in digital. We want to be the biggest player in digital. We will become. We have a digital completely different BU created. I think they have a business and a P&L number which they are going to go after. New growth boosters. We will talk about the new growth. We've identified the new growth boosters for PC6. You will see how new growth boosters will accelerate our business as we move into becoming the employer of choice. I've told you can't now your. If you are growing at 23%-25%, that means your balance sheet will touch INR 550,000 crores-INR 600,000 crores on assets. If that is the funded asset balance sheet which you're going to get, you've got to be the employer of choice. Your people matter. You can go digital, it's about people. I think whoever you have in the organization, you have to become the employer of choice. I think the employer of choice creates a value in itself for the organization. That's a theme which we are going to play with and sustainable banking. ESG will play a very important role in how we, how we grow our business as we move forward. We've already inbuilt this into our credit, into our lending now. We are the only bank, when you talk about ESG, yeah, who's in the Dow Jones index, and I think we've got the best Euromoney award on the ESG right now. I think we are very, very strong on ESG, and I think the type of businesses which you do lend itself to ESG also automatically. I think we will talk about it. ESG is a foundation on which we will... It's a huge booster for us as we grow our business. I think domains will lead the growth. I continue to believe that we will maintain our market share or increase the market share in our domains. You will see us focusing on domains, and I think we will be ahead of the market on growth. That means we are gaining market share on this. I think these are businesses which have done well, and we will continue to maintain our domains. I think most of our domains are coming from cyclical lows as of now in the last two to three years. I think we have a huge opportunity there. Grow corporate bank. You know, when people talk, "Oh, would you grow the pub?" We will continue to grow the pub. I've always said our business will tend towards 55%-60% towards retail and 40%-45% towards corporate. It's not that we will stop the corporate growth. It is very important to get the risk-weighted assets in the bank going at the right pace because all retail businesses come at 75%-100% risk weight, whereas corporate bank comes at a very different risk weight, depending on which assets you do as a consequence of that. Scaling up of Subspace, specifically the non-vehicle assets. I think there is a huge opportunity to more than double the book in the next three years. I think you will see that in the presentation. I think deposit mobilization, and I think our core is very strong. Then I will give you some themes where, you know, Sumitomo can expand. I think the segmentation which we do in our core is completely different from the segmentation which we do. Our market share on liability is about 1.7% against Kotak, maybe 1.8%. In the home markets which we operate in, we are at 3.4%, and we want to expand our home markets and go to 5% in the home market. That's a very differentiated strategy on universal banking. We focus on segments, we don't focus on math. We're not in the salaried segment. We focus on NRI, we focus on affluent, we focus on business owner. As we go forward, we've done client segmentation. We will focus on communities. I believe India is very vast. If you look at Southwest banks, ING Vysya, for example, is a community-based bank. I think there are different communities which may not be on caste, maybe on business. Example, diamond is a community. We are very big on diamonds. We are number one in the world. There are 1 million workers which are employed in diamond. They have a INR 1 lakh average salary. Look at the opportunity which we are sitting on. If you go into another segment like doctors. You don't have to go to doctors. Go to cardiologist and the gynecologist. It's a very different opportunity of a different nature. I think we've identified five segments like this, and we believe community-driven room, playing with the ecosystem is a very differentiated way of doing liability. The next phase of our growth will happen through home markets and community banking. Community banking will take a very different way of life in this bank as we move forward on that. Continuous scaling up our new affluent. We're doubling our book on our affluent and doubling our book on our NRI segment. Our SME and business banking will continue. They come with liabilities and of course, the rural banking, the micro banking, and which you will hear J.S. talking about, is a huge liability wallet which we are waiting to get. Invest, I think merchant acquiring acquisition gets you 35% of their asset growth comes in the liability business because of this. They are self-funded. Agency business of the Government of India and digital in-initiative focused on individuals, which I said that if she can create an INR 25,000 crore book, we are completely out of the issue as far as the liability is concerned in the way forward. Of course, this is the roadmap I think where we've enabled, we've created capabilities. We have the best capability on credit card and personal loan today. We can do a churn out of credit card in 2 minutes. We can churn out a personal loan in 3 minutes. Completely automated, completely digital capability. We are churning out individual loans of SME in less than INR 2 crores, approval rates in less than 5 minutes as we move forward. What you will see, the individual launch and the SME digital, a completely holistic capability, segmented capability coming into play in the next success. You will see in the first quarter, on the financial year, calendar year, sorry, you will see the individual launch. In the second quarter, you will see the SME launch coming into play. Of course, the scaling up of new existing vectors. I've talked about affluent, NRI banking. Tractor finance is another vector which we believe in. We believe it's a great business. It adds to the agri. We want to be number one in it, stated number one financial in tractor finance. We want to be that. Affordable housing. If we are not able to do it, we'll go the inorganic route, but we want to scale up in affordable housing, MSME and the merchant acquisition business. All these businesses will be very, very large-scale businesses in the bank as in. Adding new growth boosters. I think home loans, we've started the home loan business. We believe in 2 years we will have an INR 10,000 crore-INR 15,000 crore book in the home loans aside. Investment banking is going to get launched this year. You will see the investment banking coming into play. We've had the team. We've grounded the team for the last 6 months to 9 months, and you will start seeing the results in the short while from now. Of course, para-banking is a very big area where we want to get into. We continue to await RBI's approval, I think it's an area where we believe we can make a huge impact in the... Of course, I don't want to comment on it, I think employer of our choice may mean different things to different individuals. I think the more important part, I think, is the environment and the culture which we create in the business as a policy. I think what we do, we have a career progression, and I think we have a continuum. All our senior managers now, going forward, will come as a consequence of the internal. While we will hire 20% from outside, 80% will be all in-grown talent. We have enough pool now, and we believe all our branch managers, regional heads, zonal heads and the various other segments, operations heads, will all come internally. We are not going to hire from the market as we move along. I think pay and benefits, market link pay and benefits, and I think the pride and trust has to come into play as we move forward in it. I think in next two years, you should see us being the employer of choice in the banking industry as we move along. Of course, we've talked about it. I think we've done a lot of work on the ESG side. I think our themes have played out on the ESG. I think our credit is all about having. I think we're going to now launch differentiated products for women, solar financing, EV car finance. We are going to create products which are linked to the ESG business and are going to get into it. Green deposits is one such example, but I think there are differentiated products and diversity and inclusion will be a big thing which we will do. Whether it's in our employee pool, whether it's with women entrepreneurs, I think diversity will play a very, very big role as we move forward in our business. Of course, this is the Planning Cycle Five. I don't want to repeat it. We are already meeting our objective of it. I again, what are the themes of Planning Cycle Six? I think this is an important. I think domains to contribute greater than 50% of our business. It's 43%. That means our domains will continue to be very, very strong. We will maybe add one more domain as a consequence. 50%-55%, we will be a big bank in the businesses in which we do. We are a large bank in the businesses which we do, we're number one or number two in that industry. That is surge in client acquisition. We will acquire 500,000 accounts a month. We will increase our run rate to 400,000 with the digital moving to 500,000 a month. We will acquire 5 million customers, branch banking customers a year. That is very, very important for us. From 1.22 million, we will just surge it to a very different scale, a different level of business. I think continuous gain in the market share, specifically in vehicles, SME, MFI, cards, and deposits. You will see us gaining market share in 5 businesses. I think that is something we will continue to gain market share on. I think digital 2.0 will play a very, very big role, and I think you will see us being a very, very... A different sub-brand coming into play on digital anything. Home loans will play a very, very big role for us and private banking will get launched, the bank, as we move forward. I think sustainability to the core. I think ESG will play is a very dear area. Para-banking, we await the license, but we want to get into 3 areas: AMC, securities, and non-life. That's our stated intent. We want to get into these 3 areas. These are the themes which will drive our business as we move forward. Ramping up of secured retail assets, and I think mortgage, affordable housing are 2 themes which we want to work on. Tractors is the third theme which we want to work on. I think these are 3 businesses where we believe we can make a huge impact in the business. Micro-banking in rural India. When we talk about MFI, we're not going to do JLG only. JLG will be very small part of our business. Maybe from 90% it'll go down to 60% of our business. 40% of our business will come from three other areas: merchant acquiring business, home improvement loans against property in the sense of occupied residential property, and scooter loans. We will become very, very big in this. We will create a book of INR 60,000 crore in micro-banking and INR 30,000, INR 20,000 crore to INR 25,000 crore will come in these areas of business. The JLG business will be INR 30,000 crore to INR 35,000 crore. These also come at a very high yield, so, as a business. Used vehicle scale-up. We are going to become the biggest players in the used vehicles. We're already at INR 3,500 crores at less than 1% delinquency at 15.5% yield. We believe this is an opportunity to go to INR 10,000 crores. We have a very big plan to grow this business. We want to be the number 1 aggregator on used car business. We have created a portal. We've created capability, digital capability. You will see that launch. We're completely online, real time with the aggregators of this business. We want to do that. IndiLaunch, which is our individual launch of the digital, and ScaleUp will be the next big opportunity on the digital side of the capability. Investment in distribution, we continue to go to 3,500 branches. I believe we should expand our distribution. We need that type of distribution in the branches. Continue to expand that. Doubling of affluent and NRI, which is a very important initiative, including launch of private banking as a consequence of that. Digital SME and MSME penetration. Digital will play a very big role in this. We want to be a market leader in this business. How we do it is a plan which we are coming out with. Imbibing ESG in our business. We continue to maintain number 1 position in the ESG. We want to be the number 1 player in the ESG. A lot of funding to the bank comes in, capital comes in as a consequence of ESG, as a consequence. I think we will be. I think addition of fourth domain. You will see us adding a fourth domain. Whether it's, I told you 50%-55% of our portfolio will come from domain. We will add a fourth domain to our business, which will be a 10%-11% market share of that business, which will come in, into us. Whether it's, we've identified the businesses which we want, I think it's only a matter of time that you'll see the domain coming up into the play. Of course, loan growth ahead of PC five. We said 16%-18%, we are saying 23%-25% growth rate. I think loan mix will change from 50%-60% retail, 40%-42% towards corporate. CASA ratio greater than 45%. We are saying we will be able to granularize and go to 45%. I think PPOP of loans, we've raised the target from 5% to 5.5%. We are already at 5.6, so then we are. Branch network greater than 3,000 crores and a customer base of 50 million clients as a consequence. That's all I had. I think I can answer any questions which you have right now and take it forward. Just if we can have the question and answer session for about 10 minutes. The management team is here. If I'm not able to answer, some members of the management team can answer. If you can raise your hands. Yeah. Yeah, this side. Yeah. First table, yeah. Hello, sir. Thank you for the opportunity. Sir, my question on the home loan product side, you said we are going to launch home loan product. What is the target segment for that product? Secondly, what is the yield, basically yield and the targets customer segment for the product? When you look at a home loan, please understand, home loan never gives you a 2% ROA. Let me tell you. It is a product which works between 1.3%-1.4% ROA. Yeah. If you look at it as a product, but if you look at us as a customer, I think the customer profitability is very high because the customer ownership of product goes to about 5-6 on a home loan product. I think our focus is to cater to our branch banking customers. Our branch banking customers are near mass affluent and above. That's the market which we go on to the mortgage side of our business. We are not interested in INR 10-20 lakh or INR 30 lakh home loan products. It will be rolled out to all our branches. Which will be rolled out to? All our branches. We are rolling out to about 20 centers in our 20 states right now. We're not going to roll out pan-India. Okay. Secondly, sir, on the tech spend side, you said INR 700 crores of something we have spent for last two years. In terms of one is the product innovation side and the new experience for the customer. Third is the team of you said 100 + people working the digital side of the activity. In terms of our cost- to- income ratio, which is if I compare to other retail banks, our is on a higher side. Obviously, because of mix, it is a higher side. When we'll see the benefit of those digital initiatives coming into in terms of better efficiency and a better cost to income ratio? If you are comparing us to HDFC, which is at 37%, it's wrong to compare. They are a balance sheet of INR 10 lakh crore and the operating leverage comes into play. Operating leverage comes into play at a particular point of time. We've said our cost to income ratio should be in the range of 41-43%. We are at 44.6%. You should see the leverage coming back into play in the next 2-3 quarters. We will go back to 41-43%. As a consequence, in the next 3 years, you should see us at about 38-39% operating leverage. Thank you. I think you should assess us on the PPOP margin rather than the operating leverage margin. It's very important. We'll continue to invest for growth. Yeah. Just wondering, you mentioned the fourth domain. Yeah. Sorry, just the speaker. Fourth domain, you mentioned Para Banking, AMC, retail broking, whatever. How soon do you see we getting approvals or scale starting that? Para banking, I cannot comment. The fourth domain will come in very soon. Through acquisition or? Inorganically or organically, I think we have a size. We've always grown through inorganically on the domains. Let's wait and watch what else is. Good luck for that. Yeah. Hello. Sumant, I just want to ask you at the rate at which you are going, I don't think you'll need capital for the next 2 years if you are gonna grow at 23%-25%, generating a healthy ROE. Is that a correct statement or? We continue to assess our capital requirements every six months. That is the way we should assess. I think we don't want to be below CET1 of 14%. That is something which has created a hurdle rate for ourselves. I think, in my view, the internal accruals are enough to take care of growth. I think, we will in three quarters from now assess whether we need capital or not as of now. If there's an acquisition coming in way, we may need a capital at that point of time. For the growth of the organically, I think what you say is right, that we may not need the capital for some time. It's only the inorganic initiative which will sort of need the value. Yeah. We feel that the macro environment is such. We don't wait for the macro environment to get down to a level where capital is not available. We may raise capital at that point. I think we don't need it right now. We'll evaluate in two to three quarters from now. Thanks. I'll come back to the. I will inform you much before whether we are raising capital or not. We don't need capital as of now. Thanks. Yeah. Back. Somebody has to go back. Hello. Sorry. My question is on the retail deposits. Yeah. As you have set targets of 45%-50%. If you see in terms of strategy on liability or branch banking, it's on, it's more focused on NRI or affluent banking. Community banking. Community banking. For what... Yeah. Which by nature are, more wholesale in a way and less of retail. Right. Yeah. There's a disconnect between, you know, how we're going to bridge this gap on the retail deposits because the HNI or the affluent banking will bring in more wholesale or bulky deposits. No, no. You're absolutely wrong. All HNIs come in with deposits of INR 1.5 crores-INR 2 crores individual. They're actually individual. If you look at communities, it will all be individual. Home markets are all individual. They don't come in with this, these type of deposits. No. No, we saw this trend in this quarter itself, how the HNI deposits, some of them actually ran down as we saw the rates go up. No, ma'am. What ran down? It is absolutely wrong. What ran down was an agency account. Agency account where RBI now has said on the nodal accounts where they transfer monies to the bank, whether it's shipping, whether it's transport sector, whether it's aviation sector, defense sector. They've taken out five sectors, and they said on these agency account or health, in these agency accounts, money will not go to the bank from the treasury. It will go directly to the end user. They are now working through their own treasury. That is the reason. There is no such flow. It is a treasury flow of the government of India, where they change the way the flows happen. All treasury flows used to happen to banks, and from banks it used to go to the other. They said, "My flows will go to the end users." That's it. For example, if they were to distribute money on the any subvention, it will directly go into the customer account. It will not go or come to the bank. That is the way our Government of India Treasury is working now. Okay. Thank you. It's not the HNI flow out. It's absolutely wrong. Yes, okay. Yeah. Go ah ead with the question. I wanted to understand your thoughts on the fintech partnerships. We see a lot of banks partnering with various fintechs with the viewpoint of acquiring customers, probably coming at a low cost. What's our thought process on fintech partnerships when it comes to adding new customers? That was the first question. The second question was, also a lot of banks are focusing on payment platforms. Payment, I believe is a very big thing for the banks, I probably missed out or did not hear anything on the payment platform strategy for the IndusInd Bank. These two things, if you could highlight, would be great. Thanks. Payments, so let me answer the first, the fintech part. I think, we continuously believe that, collaboration is the way forward. I think, the rules are getting more and more clear on the fintech relationships and how we have to move forward. I think the digital lending norms or the fintech relation data privacy laws are now coming into play, and I think these are laws which were, which are preventing us from doing very deep-rooted fintech relationship. I think there is a way out now which we feel is the way forward. We've just approved, we've sent to the board a note on how the fintech relationship. I think please understand, I think while we will do collaborations and partnerships to get best in breed, which we do already, and you'll hear it in the digital presentation, I think creating your own real estate asset is also very important as you move into the digital. I think while partnerships will play a very big role, and you have to create value-added partnerships rather than core partnerships. If people say savings account acquisition can come through a fintech partnership, I don't think it's a value addition. What can come through a fintech partnership is a merchant supply chain partnership, to arrive. That is the way. You have to say where you create a value of a very different and complements you. Where you create a value to support you in what you are doing to scale up, I think you will suffer in the long run, is my opinion in this. I continue to believe banks which are saying that they are tied up with Open or they're tied up with XYZ, and they will do the business and they will start, I think it's a great way to acquire a customer, but the customer is never theirs and it will not do a cross-sell capability. The profitability of that customer is very negligible as a consequence of that. That's number 1. On the payment side, I completely agree with you. I think there are 3 ways to do. 1 is to build your own stack. I think we have a payment capability now on UPI, on payments, which we have created. We are also now in discussions with the digital. We have acquired a payment capability through M2P. We believe it's a very, very big initiative for us. In the digital, you will hear how that stack has been created and how payments is going to be a differentiator. We are also talking to a strategic partnership with the payment firm, and I think whether we take a participating stake or acquire it is a different issue. I think a strategic partner with a participating stake in that place, in the payment space itself. Cool, sir. Thank you. Sir. Yeah. It was a great presentation. I can't hear you. Yeah. Where is your- Here. Ah. Yeah. Over at the last. Yeah. I am Rajotshi Palit. I am an ESG associate at Quantum Advisors. Mm-hmm. I had certain questions with respect to social end of the bank. Mm-hmm. The bank is lagging behind its peers on gender diversity. What steps is it taking to bridge the gap, first? Secondly, there was this entire executive exit which happened in BFIL. Mm-hmm. there were some issues with respect to proper procedure, HR procedures which were not followed. What kind of steps is bank taking to reduce such or remove such issues which can happen in the future? Let me answer this. Gender diversity. We are very cautious about gender diversity. I think if you look at the banking part of our business, yeah, you have a very good gender diversity. If you go to CFD, where it's a very rural and a very different business, the gender diversity is low. We have to say, how do we balance that? That is the concern. Bharat Financial also, in the deep rural areas where you have to work, I think a little bit of a gender diversity issue comes out into play. We are finding ways to address that. It's not simple to address it, but we are finding ways to address those issues. And maybe banking business becomes more gender diversified. In collections in these areas, you can't put a gender diversity because it creates... You can put them in telecalling centers, you can't put them at feet on street at that point of time, and I think, we are cautious about that, and that is the reason. Our call centers are becoming more gender diversity-based, and that is where we will balance this. I think we are very clean on the steps which we have to do, and yous will see this moving to 21%-22% from 18% what we are today to 21%-22%, which is the best in class in the, in the banking sector or in the industry. Let's go to your second question. On the HR side, there were HR issues. I think there were multiple issues, not HR issues. I think the HR issue was that we did not know that these guys were looking out. How? That's not an HR issue. It's a market issue. That the guy is looking out and doing a deal, that's not an HR issue. The HR issue is that there was a contract which said that they can, they cannot take employment anywhere for 12 months. We found out legally that you can't reinforce the contract. Let me tell you, the applicability of a non-compete agreement which is not registered in law and not available by law can be done on good faith basis, but cannot be reinforced with the person. You can do a case, but you can keep on fighting that case. I can assure you, there is no value addition of that in the... Specifically, the bank had to take control of the businesses. We were running it like a microfinance institution. I think we sent seasoned there to take charge of the business as a bank. I think that is what you are saying. The agility of microfinance with the processes of the bank have come into play in the institution now. As we talk, we are very comfortable with the microfinance business. Yeah. Thank you so much for your time. Just a question around the microfinance business because your vision is to shift towards a microbanking sort of a structure. You know, with the changes in norms around individual loan exposure versus household debt, you yourself have mentioned that rejection rates have gone up. How do you see this microbanking vision strategy and a structural ROA of this division going forward? In fact, it is in line with the strategy what the RBI wants to do. It is in line. You are balancing the book. They were scared about over-leveraging in the unsecured side. Let me be candid. That is what. What people were doing is clients were being moved into an unsecured business in the team of business loans, ECLGS or whatever you call them. They were being given loans of INR 150,000-INR 200,000. We said, going against the grain and giving INR 200,000-INR 250,000 to a client whose loans today are INR 40,000 is against the grain. There's a difference between intent and ability, and how do you find the right balance in the intent and ability? I think the right balance is you have clients who are doing well, do their household assessment, create a scorecard, and give them a secured lending as a consequence, and as they move forward. The secured lending and what it comes to comes as 18%, 16%-18%, and with a very secured, you know, self-occupied house and property or a home improvement loan or a scooter loan. All these yields are comparable to the individual yields. The biggest thing is grow the working capital business in the tier 3 to tier 6 cities, where the yields are at 23%-26%, and you can continue to earn, and that will balance out the yield if the home improvement or this comes at 6%. The balancing of the book while you continue to grow, the ROA of this business will continue to be between 4.5 To 5%. It will never be 7% because we'll keep contingent provisions. Does this answer your question? Yeah. I'm there. You can ask me more questions. You'll hear the individual presentations. I'm available for any questions throughout the day, and I think during lunch we can have an informal chat also, I think. Thank you so much, and thank you for coming and spending a day with us. Thank you so much. A very good morning and thanks for joining us. I think, you know, I think, Sumant's, you know, the first, I would say 1 5 Hours, I think, you know, he really give you some, you know, insights of how we are running the business and what are the future, what are the beliefs which we have. My name is Soumitra Sen. I look after the consumer bank. I have additional responsibility of also handling the marketing for the organization. Been with the organization for the last 14, 15 years now, was in the same pack of 2008 when we came in from ABN AMRO to IndusInd. Prior to taking over the consumer bank, I was handling the branch banking business that was there for the last 11, 12 years before I graduated to get the consumer bank. As Suman was mentioning, consumer, yes, it's about liabilities and the assets. Just to give you a bit of a, you know, that what consumer stands for for the organization. If you look at the balance sheet on the liability side, it's anywhere between 65%-67% is consumer. Okay. If you add, you know, the affluent business, okay, which is a subset, out there, you can add another, you know, 12 odd. So around, you can say 80% of the overall consumer deposits on the liability side is between consumer and affluent. There's also a small piece with the BFIL, which I think Jayesh will cover in the afternoon. If you look at the asset side. Assets, if you look at the non-vehicle, okay, we will be around 11%-12%. It's a, you know, as of today, it's at INR 27.5 thousand book, will at least go to a 30+ by the end of this financial year. If you add the, you know, the, you know, the BBG, which is another INR 12 odd thousand, then, you know, the overall book is around 17% to, you know, 18 odd% of the overall asset book. On the fee side, you know, without even affluent, we are around 50%+. Okay, he spoke about 71. The rest, obviously, there is affluent and there's the microfinance and CFD, but 50%. It's a consumer is a big dominant, you know, I would say a BU for the organization. To start off, I think, we actually take pride that as an organization, we are, especially on the consumer side, we are a very differentiated organization. I will actually explain why we say differentiated, because somebody was asking about, you know, why we look at NRI, why we look at, you know, PIONEER, why not a salary account or whatever. It's not that we don't do the BAU business of household accounts or the salary accounts, but also understand that, okay, in this commoditized market, okay, IndusInd is slightly, you know, laggard out there, right? You know, we don't do... On paper, we have 27 or 28 years of vintage, but the actual consumer bank out of that is only in the last, you know, 12 to 14 years is what we have done. When you talk salary, when you talk, you know, the household, yes, we are there. Those are BAU business for us. Can I take a dominant market share out there? Perhaps not. I will talk more of that. How we still get to that market share gain? At the end of the day, two, three things as a leader I keep on, what is the market and how much market share I gain? It is not internal focus, it's external focused. Okay? We have to create those differentiation to move ahead of the, of the, of the pack. That's why we actually claim that, okay, we are differentiated in our business unit. The way I have actually paced out is that we'll talk about our core. Suman spoke about the bank. I'll talk about what consumer core beliefs are. The team, because I, you know, I'm a, I'm a firm believer that, you know, it's the people who actually makes a difference. The leadership, the thought process which is there actually makes a difference. I'll talk about the leadership, you know, team and what are the building blocks for this differentiated, you know, thing. I'll talk about the distribution, I'll talk about the segment strategy which we have. I'll talk about the, you know, the intelligence, the client intelligence we put in. We'll talk about how we are trying to grow the asset side of the book. Okay? Obviously not, you know, to let go is the service levels and what we are doing to improve those. Obviously at the end, I will give a bit of a, you know, some kind of a direction or a guide that what consumer will be delivering in the next 2 to 3 years. What are the core beliefs? I think Suman touched on that. This is not today. We always believed that India is a phygital model. It'll never be digital. Obviously cannot be just a physical model. Okay? What has changed? We have been, there's a slide which will show you, is that across the last, you know, 8, 9 years, we have been opening branches. Every year, we open around 200, 250 odd branches. Except one year, you know, during the peak of COVID, between 2020 and 2021, we opened 100 branches. Otherwise, we have been opening. We believe that, you know, the experience will come from, you know, visiting the branches, but the convenience factor will come through digital, obviously. You will see our account opening is around 90-95% digital. Our, the processing, you know, which we do is around 90% digital. That is a enabler which is already there. Will the physical model go off? No. The formats of the branches have changed. You know? To cut down on the CapEx, we used to open, you know, previously 2,500-2,600 sq ft branches, large mega branches. Today, if you see even in a metro branch, I'm at a 1,100, 1,200. It's a boutique branch, it's a more of a sales and service branch. Operations are centralized. OpEx is actually, you know, cut down by 50%, but we are still there. I think Suman showed that, okay, we will, you know, end this year at 3,500, and we will add another, you know, 1,000. Rather, we'll end at 2,500 and add another 1,000 to get to 3,500 by PC 6. We will keep on opening the accounts. What actually is helping is that if you look at the artificial intelligence and the machine learning, when these are getting integrated, what as a bank we are, you know, getting the benefit is that we can anticipate, you know, client needs. We have become much more intuitive, okay? We have been able to service them better. That's the digital part which is, you know, playing up with the phygital. As a bank, we believe phygital is the model ahead. Suman spoke about, you know, the domains. Within Consumer also we have domains. We have NR as a domain, and you know, we have slides. I will not take much. You know, now, I'll explain it later on. We have home market as a domain. We have, you know, the affluent as a domain. We keep on, you know, you know, you know, the business owners, because especially on a developed market, which is the metros, will you be able to play with your household and the salary? I think perhaps we are late. We can still make a mark by getting into the business owner segment and, you know, from there on, getting into the wealth of the promoters, directors and the staff. There are different ways of doing it. Business owners also is a, you know, domain. I will talk about how, you know, we will expand on those. Data intelligence. To me, it is not about the wealth of data or the analytics. It is all about how you make these, you know, data into more tangible, actionable and a bite size, where the execution team can actually absorb and actually can convert. Because, you know, data intelligence or, you know, the data as such doesn't mean. If I can make it into bite size, I can give it to the front line, you know, my sales guy, the RMs, the SGMs. When they speak to the client, if I can give the what are the next best offers, I think that makes a difference. That's all what we stand for, and we have been working overtime on this front. Assets is for two reasons to me. One, obviously it gives a very healthy yield. You know, our gross flows are practically now coming into in line with the market. I don't see any risk, you know, down the line. What actually it helps is for the liability business, because most of your question is liability, is that it helps me to get fodder for my liability business. For the credit card guy whom I bring in, the personal loan guy whom I bring in, the, you know, the LAP guy whom I bring in, I'm being able to open those savings account and current accounts. It's also a fodder, you know, to my liability business. This is the team. You know, I spoke about myself, I don't need to, you know, speak. If you look at the, you know, team, especially on the left-hand side, all these people joined along with us when we came in in 2008. Ritesh, Vikas, they are the, you know, the products and the program guys sitting in the country office. Ritesh looks after the personal banking, the payments, and Vikas looks after the all-important business owner segment, the NR and the, you know, the GPG business, the government business. We have done two new fresh, you know, recruits from the market. You know, Sai Giridhar, who has come in as the head of retail assets. You know, one year old in the system, but around 26, 27 years of experience. Was with us in ABN AMRO, moved on to HDFC for, you know, a decade or so, and then joined us from Yes Bank. A solid guy. Some of you may know him. Solid guy on the retail assets. Vineet Narain, you know, looking after the all-important branch banking, because that's where the distribution and that's where the, you know, all the liabilities and the asset growth will happen. Again, a ICICI banker for some 17, 18 years. Yes Bank for the last 3, 4 years. Has joined us from there. Both these recruits, you know, are, you know, very experienced in their own fields. You have the head of wealth management, which is the insurance and investments. A gentleman by the name of Ashish has been there with us for 10 years now. Good part is the, on the functions, the support function, and Suman spoke about the governance model. What we have done, one big change which, you know, I think Suman incorporated when he came into the thing, is that have a compliance, you know, which is policy and processes, you know, inbuilt into your business. Manish Jain joined us from Axis, you know, around 26, 27 years of experience. He keeps on going through, you know, it's like a, you know, concurrent audit within the, you know, system. The policies are getting implemented there or not. What are the deviations? Is there any rate deviation? Is there process deviations? That's a, you know, even before the bank audit picks up, he keeps on doing it every month on month. Quite a lot of, you know, help I've got from this. You have the head of, you know, the design or what we call the solution delivery, okay. Has a, you know, dual reporting. Reports directly to Anil, who looks after the general operations of the bank, and a second line to me, because all the product developments and all to see the light of the day, he's the guy who helps me out. You have the marketing and the HR functions. What has changed? I think, this is a very important slide. I was also exchanging some, you know, notes just before the presentation here. Is that we did a, you know, presentation to the buy side, maybe a quarter back, and now we are doing it, you know, rather that time we did for the sell side, now we are doing for the buy side. Is the retail growth okay? Everybody is talking about it's got muted. You know, the industry is growing at 9.5%. Assets are growing at, you know, 16.5%, 17.5%. How the hell, you know, will you be able to do it? I will talk more about it. If you look at our performance, okay, we were growing, you know, 3% quarter-on-quarter on the retail side. We have jumped it up to 4.7% last quarter. You know, in this market, yes, you can survive and can do better. That's what we have done. On the interest sides, Sumanth made that, you know, comment that earlier we were around 200 basis points. Now we are 50 to, you know, 70-75 basis points higher than the market, and we'll continue till we get into the Basel III norm of around, you know, 48%-52%. Look at us. What we did was on the FD side, yes, we were, you know, a bit of a front runner earlier, but we knew that the interest curve is going up. What we did was we were out in the market, we garnered quite a lot of, you know, fixed deposit and the retail fixed deposit guys are, you know, it's all 87% above 1 year. 87%. 83% is above, you know, you know, I will say 87% is over 1 year. 83% is out of that, you know, over practically a 2-year period. It's long-term money for us. Now you see how the other interest rates are going up. It's a, it's a win-win for us. What we did was, you know, you know, on the savings account side, we used to give 6% earlier. We actually reduced it to 5.5%. Yeah, as we stand today, we had to again take it up because everybody is now moving the rates up, again, we got back to 6. During the time, we actually from 6 dropped it down to 5.5, and then, you know, got back to now 6%. I spoke about the assets, the retail assets, I think is booming in the industry. Okay. Two, three points to note is that the highest disbursements ever we have done is INR 2,500 crores, is what we did last, you know, quarter. This quarter we are trying to get to INR 2,700 crores, INR 2,800 crores. It's, it's booming, you know. You know, money is there, you know, to lend. What we have to always be, if you look at some of our peer banks, they are focusing on the unsecured business. The yields are higher. Yields are higher for me also. As a bank, we have kept that balance. If you look at 51% of my growth has happened from secured business and 49% from the unsecured. It is not about only cards and PL, because that's where, you know, the market is. We are, you know, recalibrating ourselves. We want to, you know, be very cautious and then, you know, do the growths. The growths have actually happened on LAP, growths have happened on the LAS, growth have happened on the gold loans. It has also happened on the cards and on the PL. It's 51%, 48%. The quality, I think Sumant made that point, that it's not about quantity, it's about quality. We are very, very focused on that. The learnings of COVID has been already implemented. The gross flows are looking, you know, southwards. You know, if you look at the TransUnion data, I always believe that 30 + is the best, you know, barometer to look at because that's, you know, on the, on the 90s you can play the, you know, write-offs and all those stuff, but on the 30s you cannot. Our 30s are looking as per the market. There is absolutely very, very eagle's eye on the quality of business which we do. Now, let me start with the, you know, the basic of any retail deposits or what we call it liability is the LCR, right? We have grown 1.8 times, you know, the industry. Industry was, I'm talking, not even talking now, I'm talking about the last 2 years, they were growing at 11-11.5%. We were growing at 21-22%. Okay? So that's what we have done. The LCR, okay, what we call it the Basel III thing. We have both on CASA and CASA TD, we have actually doubled it. That means when my deposits were growing at a roughly around 20-21%, on the retail part, I was actually doubling it every 2 years. So that at least the LCR, if you see from at 26% in 2018, nothing to talk about, we have reached a healthy 41%. What we have, you know, discussed internally is that we should exit at a anywhere between 42%-43%. Over the next, you know, 3 years, you will see that in the PC6 plan, we want to be anywhere between 48%-52% odd%. The best in class is obviously at around somewhere anywhere between 50%, 57%-60%. I think I don't want to get too much into it. I'm sure in the product groups, you know, it will get covered. It is also covered by Sumanth. Our, you know, funding profile is very, very different than any of the peer banks. If you add that 15%, 16% out there, if you talk about 50% and that 50%, 15%, 16%, we are also at a comparable 65% odd%. Don't look at only the LCR to, you know, do your computation combination. It is the overall funding. We will get into a 48%-52% odd percent in the next three years. You've seen that, okay, we have been able to scale up and with the funding profile which you have another 15, 16 you can add, we are safely at the, you know, 65, you know, plus plus. The, the, you know, the, you know, left-hand side, you know, you will see that obviously, you know, no guesses, you know, for that. The first bank one is, the biggest retail bank which you have. That's at, you know, 23. Look at us, we are just after that, 12. Obviously, you know, the size matters, but I'm clocking much better than the others, including the other big peer banks. That's the LCR growth. How LCR growths are earned? It's there in the RBI data. Take it out, divide by the number of debit cards, you will get the answer. Nobody announces that, okay, I have this many clients. The best way to do it is, again, that's RBI data. Take the debit cards, divide the, you know, LCR ratio, which is published by RBI, and you will get the data which is there. We are right there on that. ATS. You know, the thing is that when you go for volumes, what happen is that your ATS goes for a toss. We have kept a very healthy 1.68. Is it the best in class? I don't want to be best in class. The best in class means that you have bulk deposits. I'm there with the peers. They're all at a 157%. I'm at 168%, you know, 149%. I'm there. Yes, there are some, you know, big accounts, and we are trying to now reduce it. You've seen, I know Sumant Kathpalia spoke about it. As we go into the PC six, you will see we will keep on moderating that. Our top 20 was once upon a time 20%-23%. As we stand today, it's around 16%-17%. If you take one of those biggies out, then we are at a, you know, 10 odd%. We are looking at the top, you know, contributors, and we are trying to slowly, you know, reduce the exposures out there. Look at the number of, you know, customers. Again, what we have done is that best way to do it is, you know, divide it by the debit cards, and we have indexed it. In 4 years, we have doubled the, you know, the clients. Believe me, this is the place where we need to do more. If you look at our per branch, you know, clients, we are at somewhere around 3,600. Our peers, the top 4 are all at, I will say top 3 are all at 8,500. I'm lagging behind out there, let's be honest. Obviously, there's somebody who took the, you know, plunge on the digital side. He, you know, that particular bank is over 13 and a half now. The quality, you know, there you will see that the ATS is much lower. Yeah, they have, you know, volumes there. With the INDIE getting launched, I think that gap between that 3,600 to 8,000 will get. Suman spoke about that. It will get neutralized. It's a matter of time, but clients matter because, you know, to get your retail and get your, you know, the cross-sell product holdings, it matters. Yes, we have done well, but I think there is a scope of improvement out there, and we are absolutely, you know, focusing on to get the number of clients up. You know, this, you know, what we call it, the differentiated strategy and, you know. I've tried to explain that what are the core beliefs, how we want to drive this consumer business. One is that, which I said, there's a physical model. We'll keep on opening branches. When you expand, one thing is very important, especially I keep a hawk's eye on that, is what I call it unit, you know, profitability or unit, you know, efficiency. Is every branch making money for you? That's what counts. Unit profitability is what we look at. As we expand, and I have a, you know, slide on that, so I show it, is that we keep a hawk's eye on the cost and the revenue. We have a beautiful model where my branches actually get, you know, I will say, 63% of my branches get actually break even, you know, with the allocated costing to it. That means total cost in 9-12 months. There is only the balance, you know, 37% odd, which actually takes a 15-18. These are mostly branches which open in the metro because the rentals are quite high. We have a beautiful model where overall as a new branch portfolio, that means when I open 250 branches as an overall portfolio, I, you know, my, you know, branch efficiency is somewhere around 66% and the overall efficiency is somewhere close to 96%. I break even the branches on a portfolio every year. The segmented strategy, you know, it's a belief which, you know, started off with, the, our consumer finance, then obviously the microfinance, the diamond, that wherever we have a domain, you get disproportionately higher, you know, market share. It has happened in the consumer side also. I will talk about it, how we have done better than the market in NRI, how we have done better than the market, and I'm sure, you know, Samir, during his affluent discussion will talk about how we have done better on the affluent side, how we have done better on the home markets, okay? I will talk about that. There's a, you know, we have a very differentiated model to play on the domains. I think somebody was talking about the, you know, the partnerships. Yes, we do have, okay? We do have partnerships to boost up the acquisition. You will see more of this coming, you know, once we set up the digital bank out there, which should be from the next quarter itself, you will see that the partnership and all. Apart from that, you know, you will see that our, you know, the values have gone up by at least 1.7 times, and the numbers have gone up by around 2 times already. Obviously, you know, we need to double that again in the next, you know, 2 to 3 years. Intelligence, I spoke about. I think, it's not about the overall, you know, the wealth of data. It is how, you know, we use that data, you know, how we create that platform to do a upsell and a cross-sell. I'll talk about that also. Customer responsiveness and the innovations, it goes hand in hand, okay? As a bank, you will see that, okay, in this commoditized consumer market, we have kept on, you know, innovating. That was one of the four things you, and some of you will be well aware that when you go to the market and check with clients talk about that you have superior products. I have people joining from competition to us. When they come and start working, they say, Soumitra Sen, I think we have very good products in the bank. Innovations have been, you know, a belief which we have that it will help us to stay ahead of the pack, and that's what is happening out there. Last but not the least, that's a very... You know, and Sumant Kathpalia spoke about employer of choice. You know, you know, I think this is something in the management team, we drive it. I personally love that is that if you have happy employees, they're far more productive, they're far more, you know, you know, engaged with you. Their productivities are much higher, and they give superior, you know, customer service. I think we have some very transparent way of how we monitor in the consumer bank. In the last few slides, I will talk about it, how we, you know, you know, monitor them on a month-to-month basis. How we, you know, you know, reward them. We don't wait for the appraisal cycle, but we'll keep on rewarding and recognize the people who are doing well. At the end of the day, the full appraisal process, how it's, you know, it's a very, very, you know, a transparent, clean way where beginning of the year, any person in the bank, you can walk into that, they will know that, "Okay, if I do 1, 2, 3, 4, I will get into my next level." That's something which I believe when you run large teams, you need to have this kind of policy and processes in place to, you know, take care of your employees. That's, that's there. First one, I think, you know, in this, you know, expanding market, if you don't get your right in one of the biggest investments you are doing, which is the branch infrastructure, you will go wrong. I think the way we do it is that, obviously, this RBI data, the bureau data, which is there, everybody does it, I also do it. We also look at, you know, those, you know, the business chains which are coming up, the community which is coming up. We try to own those. Any business corridors which is coming up, any of the smart cities which are coming up, we try to be there. We play the density, and this is what I will, you know, talk about when I talk about the home markets. How in a very, very, you know, tier 2, tier 3, you know, cities, how we played this density game and got disproportionately more, you know, market share in these markets, even when the PR banks are present out there. Plus, you know, let me take couple of minutes. When you open a branch or when you walk into any of the IndusInd Bank, you know, I believe that, you know, India is a big city, big country. You cannot have a big canvas, and you can't paint it with one brush. It cannot happen. We have a segmented strategy on the branches. We have, you know, NRI branches. We have affluent branches. Sometimes you would have seen those full-page ad which comes out when we launch those. We have, you know, business owner segment, you know, branches. These are client segments. When I drive my distribution for profitability, I look at one more cut. Even in a, you know, a vintage branch, you know, there are places where branches are doing well, so I put them as a, you know, performing branches, and I keep it aside. The vintage branches which don't, you know, give me any balance sheet or, you know, fees. When I dive deep, you know, these are clients where the branches where they are clients, but they have not been able to engage with the clients. Even in a city, I split up into four parts. These branches where it is vintage, they have clients, but they are unable to do it, I call them client engagement branches, and I put more RMs. I put more wealth RMs. I put more ECRMs, depending on the profile of that, to get, you know, interact, enhance the client relationship. There's another set of vintage branches where, you know, there's no clients. They have been there for three, four years for whatever reasons, but they don't have clients. What we do is that we go back to the drawing board and put more acquisition, you know, teeth on those. Hence, what happens is that These branches are monitored on a month-to-month basis, is that we focus on acquisition in the next 12-24 months. They come up the curve and either become a performing branch or the client engagement branches. The last is obviously the new branches which we set up. I know we have at different, you know. Not in all places, but in some places in high density, we have different RHs only manning the home markets, the new branches. What happens is that if I give too many vintage branches to somebody, they keep on focusing on those vintage branches to get the revenue. I have dedicated regional heads to focus only on those, you know, new branches in that particular city to scale it up. As I said, 9-12 months is my break even. That's how we have been able to do it. Very frankly, you know, you know, till date for the last 10 years, you know, I have given you for the last 8-9 years, we have been opening, you know, 250 odd branches, except that 1 year where I think 2020 and 2011 we opened an 104 branches. We have been actually consistently. Even we will end this year, okay, though you see only a 50, 60, you know, you know, as of now. In the second half, you will see that, you know, we will open another 200 more branches. We will exit at 2,500 odd, you know, by this financial year. This is, you know, you know, for some of you who want to just have a, you know, look at the, you know, the distribution, okay? You will see that, you know, we are not a rural player. We have around 57% of our branches, and we keep on opening in the metro and the urban branches. 57% actually, you know, is there, and the rest obviously, you know, rural obviously is there. As per guidelines, we have to be at 20-22%, that's why we are there. 1.7, 1.6, you know, times of our new branches are coming up in the urban and the metros. That's why sometimes, as I said, our rentals play, you know, a spoil spot on my efficiency. In the 15-18 months, I cover it up. I make these branches, you know, profitable. If you look at our geographical, you know, we are not a, you know, a south segment or a, or a north oriented. Yes, there are some, you know, north obviously slightly heavy at 36% of my network. You will see correspondingly my balance sheet and my fees are also slightly higher on the north, but I'm well distributed on the west, south and east. It's not that we are one oriented, you know, you know, geography where we operate in. We are well distributed out there. Now comes the, you know, the why, you know, the segmented strategy and, you know, and I'll try in the next, you know, 4 or 5 minutes try to explain that what are the concept behind it. I'll give you 2, 3, you know, before the start point. One is that we always look at which business can give me LCR accretive, you know, deposits. If any business gives me sticky money, LCR accretive, I try to do those, you know, businesses. One. Second is, I think Suman mentioned that our, you know, deposit market share, and that's an open thing, you can check on your RBI data, is we are 1.7, you know,% market share. Not much, but yeah. Kotak will be at 1.8. Obviously, HDFC high at 9.6 or 9.7. I can be off by 5, 10 basis points, but that's where it is. Obviously, you know, Axis will be somewhere around 4+, and ICICI at 6%-7% odd. Obviously my next best is obviously, you know, Kotak and we need to, you know, fight that out. How we do it is that every, you know, initiative which we take, we put a tag of how much market share I can gain, and it has to be much more than that 1.7. If I have to move that 1.7 to a, you know, 1.8 and a 2, I need to do businesses which are, which gives me far, far bigger market share. That, that is a, you know, what I call it the, you know, the bedrock when I take a initiative. Start with affluent, okay. Affluent, you know, I was just reading a, I think a Morgan Stanley or CLSA report where they were talking about the household income, okay. The household income in 2019 was somewhere close to around 5.24, they're projecting that in, you know, 2030, okay, it'll move to somewhere around 7.32. That's what? Around 1.4x. In India, the affluence is actually, you know, climbing in a big way. If you know look at the elite class, they are actually growing at 2.3 times in the same, you know, 2019 versus 2030. The affluent is moving up by around 2.1, the base is, you know, 1.4, which I said. Even the, you know, the aspirants, people like us, we are moving up by around 1.6 times. Affluent was a, you know, a spot, sweet spot which we had to. You know, Samir will, you know, take you through. There is a client continuum which happens, and also there are RMs to get the new NTB. Our proposition is perhaps one of the best. We fight it out with HSBC Premier and Citigold. We are far above. It is not private banking. As Sumant said that private banking will launch in the PC six. It is banking for the well-to-do. You know, you know, Samir will explain our, you know, strategy behind it. Next comes the NR, okay? The NR, if you see your data again, it is at INR 10 lakh 77 odd thousand. You know, the last I think update which RBI sent is August. We are, you know, closing November, but the last data available is, I think it comes in a two-month lag. It is INR 10.77 lakh. Now, if I look at the August data, we were around INR 28,000-INR 29,000 as the NRI, you know, book. If you do your math, we'll be around 2.6%-2.65% odd. Okay. The journey started in 2019, where we are, we were at 1.58%. I spoke about 1.7% my deposit. I'm already at 2.6%, 2.65%. As we stand today, we are already at, you know, INR 30,700 crores. In the last, you know, three months also have increased. My guesstimate is that when the October, November data comes in, I'll be anywhere above around 2.8, 2.85%. Okay? The stated objective that before we get out of this financial year, we should be around 3-3.1%. That's the guidance which we are giving, that we should be a dominant player on the NR side. Some of the things which you should look at, you know, you know, when we talk about the NR business, I'll have a slide, so I'll talk more about that. Business owners. I think I will say this is BAU, but not BAU. This is a dominant, you know, thing. If you look at the developed markets, developed markets for us is basically the four metros, you know, Delhi, Kolkata, Chennai, Mumbai. We have a Hyderabad, Bangalore, and you have a Pune. These are the seven developed markets which we have. In these markets, the Big Four are already well entrenched, and you have host of all banks, you know, also operating. Can I, you know, go again with the same household, same, you know, salary accounts and try and, you know, knock and get it? I don't think we can make a mark. Remember, our theory is that we have to gain market share out there. What we did was we have an excellent proposition on the current account side. It's married with the transaction banking. It's It's married with the FX restructuring, you know, structuring, which we do FCY forwards, the, you know. As a composite, we'll go and try and get the business owner or the self-employed guy onboarded. Once I onboard the self-employed guy, the business owner out there, I try once he's, you know, banking with me for three, four or five months, then I get into the personal accounts of his. I start managing his wealth. The concept is, you know, help the, you know, the business owner to do what he's best at, what he's actually doing, his business. If I can build efficiency into his business by giving solutions out there, then obviously tomorrow he will definitely bank with on the personal side also with us. By doing that, on the developed market, we have been able to, you know, crack open, you know, some part of it. That's the, you know, the, you know, the strategy on the business owner side. You have the salaried and household. It is not that we have vacated that. We have an open market team, we do only around INR 50 odd thousand, you know, in a month. Maybe Kotak does around 75 to 80 odd thousand accounts in a month. I'm a laggard out there. What we have done is, again, on this part that Sanjeev will speak about it when he, you know, speaks about the Corporate Bank, you know, later during the day, is that we have given lending to these, you know, banks. We have a very good equation with the decision makers out there. We actually tap those, what we call it the OPDT, owners, promoters, directors and trustees, okay? We offer the PIONEER, which is the affluent, you know, offering out there, try and start, you know, banking, with them. Once they bank, it's the influencer model. Your boss is banking, so why not you? I try to do an inverted, you know, funnel and try to, you know, start getting those salary accounts. Tested, mediocre success, but the top management, because my proposition PIONEER is very high, I have been able to swing deals out there. That's how I'm being, you know, getting into the corporate salary. You know, government, defense is another place. We, you know, because we are strong out there, we have, you know, a decades-old relationship. Now we are looking at how to get those salary accounts of those government business. We have got cards specifically for the government, you know, cater out there. We are trying to do a very selective way, but we are there in the corporate. Not in mass market and open, very selective out there. Through the corporate banking where we have relationship, or the government or the, you know, defense, we are trying to capture the employee accounts from there. Rural, you know, again, J.S. will, you know, talk about it in the afternoon when he covers the BFIL. I don't know if you have seen, you know, because of my rural network which is there, which is more than 2,500, I am being able to get to the last mile. When you do government business, when you want to go to the last mile and open those accounts, my Bharat Money Stores actually plays a big part of it. HDFC is tied up with, the, you know, the customer service units out there, or customer service centers, what they call it. We have our own, you know, Bharat Money Stores. Which is better? Somebody else's, you know, infrastructure or your own infrastructure? We play deep in the rural through our own, and I have a, you know, again, a slide on that how I capture the full money trail. I will talk about that where. Rural plays a big part in that life. As I said, you know, you know, we are already at a 2.6%-2.65% odd percent of market share. What is very important is that in the last 2 years, you know, we have been able to capture 9% of the flows. 9%, okay? We are not a big bank. 9% of the flows. You know, as I said, my book is around now 30,700. We are definitely the 4th largest in the country. You know, I'm talking about the top 4, you know, peers. We are above Kotak. You know, Axis is not far off. My own ambition is to, in the next one year, go above Axis, and then we will see how much to, you know, do for that. The outward remittance, the LRS, okay? If you talk about 2020, it was somewhere around $12.6 billion, which was the remittance out. 2021, it actually moved up to $19.6 billion. Our share out of that is 20%. We are $3.8 billion, you know, thing. You see that when I say domain plays up and it actually gives you disproportionately more, share, look at it. I'm being able to capture 9% of the flows of India. I'm being able to do 20% of the LRS. I've been able to get 2.65 odd% market share when my overall market share is only 1.7%. How do we do it? We have a digital account opening. 5 minutes, anybody sitting anywhere in the world can open accounts in 5 minutes. Yes, RBI still, you know, looks at the physical documentation, so we have tied up with DHL, okay? In next 7 days, you know, the physical, you know, documents come in. Your account is active, you can start doing your remittances. Yes, it's on a debit freeze. You cannot, you know, get the funds out. You can, you can open the accounts. I have a 24 by 7 video branch. All time zones gone. You know, at any point of time, sitting in Australia, sitting in New Zealand, you can actually talk to me. I'm there, available 24 by 7. I have a very superior, you know, remittance platform, okay? You know, you know, you know, in Singapore, Thailand, it's already started. Test marketing is on. Like, if you are shopping in Singapore, there's a QR code, you can actually, you know, scan it and the money gets transferred. We are one of the first banks to, you know, tie up with NPCI, and we are doing it. It's on the test market. We'll launch it, you know, in the next coming few months. These are some of the things which we have done, you know, to get the NR. NR is not easy, but it's, once the money comes in, it's sticky money. Money doesn't go. NRIs come only once a year. Sometimes they don't visit. There was a study which was done, I don't remember by one of those, I think EY or somebody, they've done it. That 40% of the remittance which the NRIs bring in, it goes into the maintenance of their family or they support their family. Like, I may be sitting in London and I want to support my parents, my brother out here. 40% of the remittance which I bring in actually goes in for that, supporting the family. 30% actually goes into bank deposits because obviously, India still offers the much better interest rates than the thing. 30% is their own, you know, either investments or they want to buy properties, whatever, so that side. As a bank, we are more interested on that 70%. I told you that, you know, the rates are better, my proposition is better, so I get that 30%, I get a chunk out there. On the 40%, which is the family maintenance, my NR, and I have close to 300 NR RMs who actually scout around and, you know, open these accounts. There are two ways of doing it. One, obviously, the digital marketing in countries like the UAE, the U.S., Canada, the Australia out there. Also my guys, we have, you know, practically home states like Kerala, Punjab, you know, you have Gujarat, where these, you know, RMs physically visit because most of the households out there have NRIs there. They start, you know, from there, open the NRI accounts and also the domestic, the kids accounts. So all NRI guys are, you know, when they open a NR account, they are tasked to open at least 2 or 3 domestic account, especially the mandate holder. What happens is that when the money comes in, the money actually stays within the family. That 40% which I, you know, told you, the study was talking about 40%, I try to capture that. That 40% and 30% is what I concentrate, and that's why our market share is going up. That's the plan for the NR business. It contributes 23%, you know, to the LCR. That's a big one. I think affluent contributes around 30%-32% on the LCR side. These are very strong, granular, sticky money stays with you. I spoke about the, you know, the business owners. Let me take 2 minutes on, you know, what the branches are tasked on. The branches are tasked at, okay, two kilometers on the left-hand side, right-hand side, get all the current accounts in. Starting with that small kirana shop, the grocery shops, the tailors, the saloon, which, you know, he operates. Through the QR code and the POS machines. POS is what we launched, you know, 24 months back. We are clocking around 6,500, 7,000, you know, machines per month. We want to, you know, exit this financial year by at least 10,000 or, you know, machines per month. What is happening is through this route of POS, we are being able to get the current account of that, you know, you know, small shop, which is there. We also go into the enterprise, merchant. One of those enterprise merchants, say maybe a Theobroma's out there or a Noble Medicals in Bombay or the Pothys in, you know, in Chennai. What we try to do is we convert one of them and then talk to their management and try to, by giving them funded limits, non-funded limits and, you know, getting the full, you know, the ecosystem out there. Starting with the POS, giving funding, getting the current account and, you know, getting giving them transaction banking benefits to capture the flows out there. That's another way of cracking the current account in a market which we do. The last but not the least is the EXIM. Very, very attractive, okay? Because and what we do is that we have port data available, where every ECRM, Emerging Corporate RM, is given a 100, 200 list, where through the port data you know that how much transactions the EXIM guy or the exporters or importers doing. The RMs are tasked to get, you know, convert, you know, the new to TFX what we call it, or get the flows in. That's what the, you know, the supervisors keep on tasking on. As we speak, you will see the flows, you know, I've indexed it. We have moved up, but, you know, our last year market share was 1.54%, okay. You know, though it fell down in 2021 because of COVID, from a 1.42 it moved to 1.44. We exited last year at 1.54% market share on the FX volumes, Pan-India volumes. This year, you know, FY 2023 when we exit, I think we should be anywhere between 1.7-1.75. It gives me very, very strong, you know, TFX fees. Somebody was asking about the, you know, the fee, you know, breakups. The wealth, you know, on the consumer bank, wealth gives me around 20-22%. FX gives me around 25 odd%, and then the assets and, you know, the other products. FX is a big contributor to my, you know, you know, fee kitty. That's what we do. The home markets. It is cities, it is also states. The home market is where, you know, when we started off. This is an initiative which we started some 6 years back. Where to dominate and to increase market share, we thought that the way to go ahead is get to places where it's still not that competitive, the deposit growth is there, and you can capture more than disproportionate share of the client's wallet. What we did was we started with around 12 odd home markets. As we stand today, we are 17 in the home markets. Our market share in this places are close to actually it's between a 3.94%, 4.1%. That's the market share. It goes up and down a bit, but that's the market share which we have. Compare that with our overall market share of 1.7%. What are these markets? Markets are, if you look at the north market, it's places like Kanpur, places like Lucknow, places like Chandigarh. Chandigarh, for that matter, we have a 9% market share out there. 9% market share. We are a very dominant player out there. Places like Gurgaon, Noida, we don't as a bank, we don't NCR as one. We have Noida, we have Gurgaon separate plans. Delhi is part of my, you know, developed markets. Again, in Gurgaon, I don't know, some of you may have visited, I'm a dominant player in the Gurgaon market. Closer home, this side, you have places like Surat, you have Ahmedabad, you have Indore, you have Nagpur. Those are the places, you know, where we have home markets. In the south, we have Coimbatore, we have Vizag. In east, you have Raipur, you have Patna, you have Guwahati. These are places where we have seen that competition is still not. When I say competition, it is the peers, the, you know, the top four, top five, you know, banks. They're still not there with that entrenched. That's why we didn't go into Goa. We didn't go into Pune because access was already there. We chose to ignore those. These are the places where we have, you know, put up density of branches. 19% of my network actually is housed in these home markets, but I get 38% of my branch fee from these. We control ±144% of the market share in these markets. Also remember, which I don't always flag it, when you open a branch in a metro city, and when you open a branch out here, my OpEx goes down by at least 25 to 30 odd basis points. It's a far more effective way of doing business in the home markets. I spoke about, the home states, you know, and how where we are strong, how we are playing a different route out there to get, you know, the LCR money in. I think some of you would have read, in the papers also it came out, Uttarakhand is one such example. What we have done, we always used to have the central mandate out there. From a central mandate to Uttarakhand capital, which is Dehradun, we took that. The Panchayats, okay, the 13 districts, all the 13 districts banks with us. The Panchayats and the Nyaya Panchayats, there are some 8,000, you know, Panchayats, all of them banks with us. All of them, okay? Plus, we have opened 600 Nyaya Panchayats, you know, account. These are Nyaya Panchayats are nothing but a group of, you know, seven, eight, 10 Panchayats coming, and there is a Nyaya Panchayat out there. That's how the Nyaya Panchayat concept also came out. To get to the last mile, the farmers, we have already opened around 1,500 odd, you know, farmers, and we will keep on expanding on that. That is where the BFIL, you know, comes into play. That's where the Bharat Money Stores come into play, where, you know, perhaps HDFC may be looking at the, you know, the customer service, you know, centers, we have our own outlet out there to do it. Last mile. You know, we have already captured INR 1,200 to INR 1,500 odd, you know, crores out there. You may think it's chunky, but look at I have already opened some 10,000 more accounts out there. What is it? It's INR 11, 10, 11, 12 lakhs, nothing more. Playing on the domains, yes, we are strong on the government business, but how we actually getting into the last mile, the last, you know, a guy who's using the money and getting his account. That's how I capture the full tree. This is a new thing which we are starting off, and, you know, there is this study, you know, which happened in the U.S., okay? It's by, you know, FDIC. If you look up, you will see. It's about community banking, okay? I think they did a study in 2019 or '20, I don't remember. There are, you know, some 4,750 community banks in the U.S., and they have 29,000 branches. Okay? That was one aspiration and inspiration for us. Second, I think Suman spoke about the Southwest banks. Where, you know, the community, the Vysya community and all, you get those flocks together, the cooperative banks out here, they play. They have niche out there, they're getting their, you know, value for money from there. We played that where we thought that, okay, let's start owning some of the communities. What we are trying to do, one bank approach. You have a corporate bank, I've put those three bulbs there. And Sanjiv will also spoke about that out there when he speaks. Logistics, education, you know, healthcare, these are also what corporate bank is looking to lend. If both of us together can go and capture the ecosystem. Community banking is nothing but capturing the full ecosystem. What happens? The study in the U.S. says that, you know, the ROAs are much better and faster in these community banks. The quality of business is much better in this, you know, community banks. You know why? Because it's a very known. You know, I don't want to default when I know Indro is there, because if I default, Indro might be laughing at me. The peer pressure actually keeps the quality going. That's what, you know, the U.S. banks have taught us. From there we have started, and you will see that we have already, you know, started off the diamond bank within the organization, because that's one of our, you know, domains. We are strong out there. We, you know, the decision-makers are already banking with us through lending. Now what we are doing is that we are trying to capture the full ecosystem. There are 2 epicenters out there. One obviously is Mumbai, the other one is Surat. We have actually, you know, our branch in the diamond bourse out there, okay? They cater to around more than 1,000-1,500 odd offices in those bourse. What we go into is that the decision makers, the owners, promoters, writers, we get into their wealth, their, you know, trust accounts, their family accounts, and their ancillary businesses which are there. We never knew that there is actually ceramics. They actually invest in the real estate. We are now capturing those through the diamond and our merchants out there. We are looking at how to capture the, you know, the staff out there. Let's take Surat. Surat is where the, you know, diamond finishing happens, the polishing happens. These workers are not from Surat. They come from 100, 200 km away from Surat. What we are trying to do is that get into their family and get into their communities. We are actually supporting. We have, you know, already opened some 80 odd branches. These are all small, you know, 400, 500 sq ft branches manned by 2, 3 people, so that the family can bank. The money which goes, they still are not that digital, you know. They love that physical, you know, presence, small boutique, you know, thing. They have a branch out there. We get into their, you know, like, you know, during the Diwali, those Garba and all there, we sponsor those. The family sees IndusInd all over. DMU already banking with us, lending relationship with us. The staff banking with us. Money sent to the, you know, the villages for the usage of the family. They see IndusInd, and they bank with us. By capturing all of that, we feel that we started, you know, in this quarter itself. We feel INR 2,500-3,000 crore we can absolutely build up in the next two years. That's how we are building communities. Suman spoke, we will have another three, four of them. In the PG six, we'll announce another three, four of them, which will help us to, you know, get that. These are all LCR accretives. When you know, I'll pause a bit out there. When you talk about HDFC, when you talk about ICICI, when you talk about Kotak, yes, everybody has their own, you know, strengths. We play on our strengths. We play on our domains. We play on the segmented approach. Tell me, on most of you also visit the other, you know, you know, workshops. Do they have this kind of a segmentation or do it? When people ask that, "Vir, you've done well, but do you think in this, you know, coming, you know, 2, 3 years, you'll be able to keep the momentum up?" Absolutely, yes. Very confident. I was, you know, telling Bill, the thing. Only thing is that if there's any, you know, macroeconomic changes which happens, I can't help it. To get to a, you know, a INR 600,000 crore, INR 620,000 crore or, you know, you know, crores, I don't see that to be an issue. Very frankly, if you ask me. As the leader of the pack out here, I don't think it's an issue at all. As I said, you know, I'm not talking about the BU business. BU business continues as is. I've not even spoken what, you know, I think HDFC speaks about, that the vintage of branches will bring more deposits. Because I have been opening branches for the last 6, 7, 8 years, 58% of my branches are below 5 years. When my branch from a 5 years move to 10 years, I get a 5.5, you know, delta, times delta. When that by a branch actually moves to 10 years, I get 11 times delta. Those are there. I'm not even talking about it. When all these new branches come in, you have more people. My productivity normally increases by 10% to 12%. Same with this, the same guy doing more, 10%-12% every year. Those I'm not talking about. Those are BU forming. It'll happen. I have this segmented strategy to, you know, you know, talk about. I can only say that in front of you is that in IndusInd, if, you know, Suman spoke about the funding profile, I'm not even touching on that. There's no issue out there. Also utilization and all the liabilities, I think I'm not trying to become another HDFC and ICICI. I have to do that 20%-23% growth. I'll be able to do it. I don't have any issue. One big thing on the liability side is acquisition, okay? Yes, COVID time, we saw that, you know, the ETB, the existing book also grew by or deepened by around, you know, 6%-7% or 8%. In a normal, believe me, look at any data, take out the corporate salary because corporate salary gives you a, you know, year-on-year growth. If you take out the corporate salary, most of the, including HDFC, ICICI and all, it's flattish. If they do a 2% growth, they feel damn good. To retain clients not attriting is a big one. It's the acquisition which actually fuels the growth. You look at how we have actually, we have grown the values by, you know, 2x. We have grown the NTVs by 1.75 x. We will also keep on growing. Somebody was asking about the alliances. Alliances will play a part. As we stand today, we are already tied up with Paytm, we are tied up with Airtel Money, we are tied up with Groww, we are tying up with Motilal Oswal for the 3-in-1 accounts. We are. Once the digital kicks off, you will see how this whole thing combines, and Suman is talking about that 5 million accounts. That's something which will happen. We have a absolutely a robust acquisition plan in place to fuel the liability growth. I'm sure this slide all of you have seen multiple times. What I'll do is that I will just give you a couple of examples to tell you that how we use this data, you know, to our benefit. How do we do the execution? We have this, you know, say Forex card, right? I personally use it, but I'm also giving you the example, is that you load, say, GBP 2,000 when you are going to U.K., and you are shopping. Shopping, Harrods, Selfridges, whatever you do, suddenly, you know, it comes down to, you know, you've already utilized 1,500, 1,600. There's a automated, you know, SMS which will go saying that, you know, "You have utilized 70%-75% of your thing. You can immediately, you know, refill at a better FX. No markup, better FX, you know, within a couple of minutes." You just do a, you know, a touch, the money comes in. That's what it is. We are talking about NRIs. When NRIs come and visit, the moment they do a UPI transaction or goes through the ATM, the RM is getting alerted saying that, "Okay, your client has come, please meet, greet, and try to take the, you know, relationship forward." When there's a RM and, you know, his client is actually doing vendor payments, if we have certain thresholds, if it's of a certain value, obviously he will get intimated. If he's doing multiple times, the RM is getting intimated that why don't you go and tap that vendor because you know the money then, the money trail will skip, you know, with you only. Those are the real-time, you know, things which we are doing. That's how we are being able to build our product holding on the, you know, obviously affluent side is, you know, 5.2 odd. On the mass banking also, it is somewhere close to around, you know, 4.1 odd%, which is not bad, and it's growing every month. This slide talks about that, you know, we, through the virtual, you know, RM and through our, you know, high, you know, what we call it, the high value or the best RMs, the PIONEER, the, you know, the business owners, the NR, where we have a, you know, very strong, you know, 750 odd RMs, they actually handle the top HNIs. The rest, we have a, in the middle market, we have a select and a CAM, and they manage the relationship. In the below of the pyramid, we have the virtual channels to come in. We have virtual RMs, and we have virtual service managers to handle that. 76% of our book is covered by relationship management, so that we know that, there's somebody to talk to and, you know, of any need, there is somebody, you know, who can help out the client. You know, I've given you the breakup of our Sa and Ka retail books. It is not bulk or, you know. 52% of my book is on the Sa side above the INR 20,000, you know, max. That's why my ATS, if you look at it, I'm at a 1.68. That's because my sourcing is on the right direction. Even on the current account, you know, by opening individual and, you know, sole proprietorship doesn't give you funds. What you need is the partnerships and the companies. 57% of my, you know, current account sourcing is with partnerships and the corporates, so that my ATS goes up. Coming a bit on the asset side, okay? Assets, as I said, you know, couple of points out there. One, you know, to keep the COAs going, I think we have a big, big, you know, play out there, especially for IndusInd Bank, is that we never utilized our branch channels to sell assets. We never did that. Okay? Right, wrong, but that's something which is there and we can play up. We do, you know, roughly around 85,000 cards, you know, on a monthly basis. Branch does around 10,000-12,000. There is enough scope to get to a 20,000-25,000 out there. My ambition is to get to a 1 lakh card and then stabilize and look at the qualities out there. I can get that from the, from my, you know, the branches only. On the PL side, I have scaled up post-COVID to a 350-360 odd per month. Okay? Branch used to be practically 0, so I used to do around, you know, 200 odd. I have now taken the branch from 0 to INR 82 crores. Last month was INR 82 crores. Is that good? No. I'm saying that, okay, when I am growing the asset side, it is not only about going to the DSA, which is high cost. I'll use my own network to source the, those accounts. I will do some partnerships. I will use, you know, our intelligence to. Like in our lab, you know, some time back, there was huge attrition which was happening. Okay. What we did was we got a trigger with the, you know, TransUnion, so that if anybody was checking the data, I was getting intubated, and we were trying to tap the client even before he thinks of doing a balance transfer or a top-up with somebody else. We used intelligence very, very sharply to, you know, grow my asset book. Obviously, the digital, what we have done for the credit cards and the PL has really, really made our life. Like Suman said, I can actually issue a card in five minutes. I can do a PL in, you know, now 5. That's what the branches are utilizing to do it. No more mid-offices, no more, you know, people involved. It's all digital. That's why we scale up from a 35,000 cards to 85,000, right, you know, 200 odd PL to 350. It's all happening through the Chokata and the, you know, the digital. Yeah, sure. You know, not much to talk about. We are present in all the segments. Most of the products on the retail side, we are covered. The growth is very, very healthy. If you see, you know, I've given the VBG lab, you know, credit cards, PL, Agree, you see that, okay, as I said in my opening slide, that I'm not only focusing on the unsecured to do my you know, growth. That's risky. Okay. I am, you know, calibrating it between a secured and unsecured. Secured is 51%, unsecured is 0.9%. That's what it is. I have, you know, crossed the 2 million mark on credit cards. We took some 11, 12 years to do it, but the next 1 million, I've told Suman, it'll be done in 1 year. That's what the aspiration is. You know, credit card is something very close to my heart, and for every segment, we are actually there. I know that Suman is saying that, okay, not much of time, but we have some very, very innovative products like the middle one, the Nexxt Credit Card, the Duo Card. Okay. The Nexxt, I have it during the lunch break, I can show you. We were all talking about buy now, pay later, right? All of us, and we think that was the big thing which is coming up. It's withering off, but still it's a big thing. I have a product in my credit cards where I have three buttons. Okay. One button will give you that it can use it as a normal card. The second button you can flush off all the reward points which you have. All of us use cards, many of us are bankers and financials, we don't know how to use our reward points. You just press the reward points, give it to the merchant. The reward points will, you know, get utilized out there. The third is very important. You can actually, without even telling your, you know, the neighbor who is standing behind you to buy that same 75-inch because you want to see the World Cup, you don't want to tell him that, you want to take a EMI, you don't want to go to that Bajaj Finance guy who's standing, you just press the button. You can make the EMI into 6 months, 12 months, 18 months, 24 months. You just press it and give it to the merchant. Automatically it becomes a 6 months, 12 months, 18 months, 24 months thing. I have very, very innovative products to stay ahead. Duo Card. In 1 card you have a debit and a credit. You don't need to carry 2 cards. You have a debit and a credit in 1 card. The spends are looking very healthy. We are one of the, you know, you know. Apart from, I think, Amex or we are just tied up with Amex on the spend side. You see the CIF, you know, going up. As I said, we just crossed the 2 million. We are doing around 85,000 cards per month. The spends market share is also, you know, crawling up. This is another... I will not just talk about VBG as a single, you know, standalone product, but it is very, you know, linked with the business owner segment and with my current account. This is driven through the branches. Okay? You will see that, okay, it is mirroring as per the market scenarios. COVID, yes, we slowed down, the market slowed down, establishments are closed, but the time it started to climb up, I'm already at a 2.5%, you know, quarter-on-quarter growth. We will go to a 3%-4% in this. It is helping me not only, you know, to do those, you know, INR 2 crores below templated lending from the branches, but also to capture my liabilities and also my, you know, build a stable loan book out there. I covered this. This is the innovation slide. Okay? I think, you know, consumer is a very commoditized market, you will see that at every step, the ones which has that, you know, the flag says 1, 1, we were the first one to actually launch in the market. There are some out there where even today the competition doesn't have it, which is perhaps the choice money in the ATM. Even today, none of the competitor banks have it. We have actually, you know, always disrupted the market and we have kept ahead by doing, you know, innovations. We don't go and flash it, you know, awards follow us. You see, you know, in MeitY, we are the number one private bank. We got the best savings award, you know, the year before. I spoke about the IndusEasy Credit, which is the PL and the cards, we have got an award. On the merchant deposit machine I talked about, we have got an award. Awards follow. We believe that you innovate, you come out with a, you know, good product, awards will follow you. This is the last section on people and how we run the business. I think retail is all about being detailed, being disciplined. We have a Bible which actually tells the, you know, the staff how to behave, what to wear, how to do a PPD, how to do an email. Everything is in a, in a book. That's what I call the Bible of to-dos, which are there. You know, the leaders keep on speaking to these people. We do those, you know, the awards. If somebody has done good service, we actually, you know, recognize that person so that, you know, we inculcate the habit of having good service across. We have steering committees where we pick up, you know, and that's from the complaints. You know, we try to figure out that what are the root cause of those complaints. Then we are steering committee, and these are the top 10 which I have actually put. There is a measurable that after intervening on the processes, it's all about building client convenience. It's all about making the client into a from experience to a delight. We have, and that's the, you know, the metrics we follow. This is also shared, you know, in the, in the customer service board meet which happens. We, you know, very recently have started the NPS. You know, prior to that, we had a CS-CSAT, you know, thing, which was the litmus test which used to do. For every transaction, the client used to get a SMS to say that, okay, you know, what was the, you know, the satisfaction levels. Now we have gone into NPS, and I think, you know, you will see in the next slide or, okay, this slide. This is very important, the last one. You know, this is I'll give you from where we have got it. All annual reports of all banks have the number of complaints. That's the number of complaints we have picked up from all the annual reports of the different banks. Then we have divided that total complaints by the debit cards, because that's the number of clients which you have. If you do that, look at IBL at 4.4. What good work which we are trying to do on the service and, you know, getting into the process and trying to correct those processes is actually helping out to do that. This is what our, you know, the customers talk about. I'm not playing it, but it's there in the, you know, YouTube. At any point of time, you can go and, you know, see it. The big part which I spoke about. When you run big organizations, you know, you need to create transparency. Why people leave? It is not about money. It is about that, what's in it for him or her? How I can give a career progression to this guy? We have our KPIs very, you know, transparent KPIs beginning of the year. Every month, starting with a service to a RM, to the sales guy, to the branch manager, to the regional head, to the zone lead, have qualities and the quantitatives there. I've given you just two branch manager and the regional heads. Everybody has a different. You know, proportions differ. A sales guy will have high, you know, quantitatives, low on qualities. Everybody has quantitative and qualities. If those person meet the annual, you know, thing, till a branch manager, there's something called continuum. Without even questions asked, you get into the next level. What are the two things which we check is compliance and, you know, the, you know, any frauds if this guy has done. If no, if you met the numbers, you got into the thing. What is happening is that it is helping me to keep the attrition under check. This is what I was explaining. We have absolutely from the teller level to the senior branch manager to the regional head, I have a continuum which plays out. You see that, okay, our, you know, attrition rates are actually being able to tame down by 20%, 30%. This is the rewards and recognitions we do. We follow a principle that every month we do a digital event, you will see people like Kapil Dev, Harsha Bhogle, they come and do a talk with the people. One, you know, face-to-face meeting every quarter. That's how. In a large sales organization, you have to keep the, you know, the team pepped up all through. Just a guidance is that the, you know, the client acquisition, Suman spoke about it. We'll double it in, you know, in FY 2024. Okay? On the domains, NRI, I said we will actually exit at 3% +. In the next, you know, financial year, in the PC six, we'll definitely try to get to a 5%+ market share. Home markets, we are already 4%, roughly ± 1. We'll try to get to 5% by next year. Also add from that 17 branches to 25 branches. In the PC six, I'll take it up to 40 branches. We'll play on the domains out there. On the utilization of deposits, by next year, we have to exit at 45%. The stated objective in the PC six is that we will get to a 48%-52% odd. With the funding profile we have, if you add that another 15%-16%, you are at a sitting at 65%, 66%, which is the best in class across. Even HDFC Bank is at 62%. Assets will always be ahead of the market. We will, as I said, the non-BBG part will be around 30,000. In the next, you know, 3 years we'll get to that 60. That 12,000-13,000 we will exit on BBG. We will, you know, try to be at 18-19 out there. That's the guidance, you know, for the going forward. That's all from me. If you have any questions. Hi. Sir, can you hear me? Yeah. Kaushalesh Mishra from ESG Quantum Research. My 2 questions I do have. First is about the average ticket size in the credit card, sorry, NR segment, where we do have 150 client. If possible, I would like to know the geographical diversification in the NR account. Second is, sir, our bank is moving toward the QR scan business, where we already have a lot of competitors like GPay and Paytm and other people. Just want to understand what kind of growth we are expecting in that, and what is the average ticket size if you are talking about the QR scan business. Thank you. Okay. Just to answer you on the NR side, you know, it is roughly around 3.5x of the domestic. Domestic, I told you that we hover around 1.5, 1.6. On the, you know, SaaS side it is 3.5 times that. On the deposit side we are around 12x of the domestic. Please understand it will always be high when the guy is bringing money, he's thinking pounds, he's thinking dollars, and actually putting money in, you know, in INR. Obviously we get that delta of 3.5 for transaction accounts with savings account and, you know, 12 times on the fixed deposit. On the, you know, the geographical, you know, spread which you talked about on the NR, we are very strong. Kerala is a big home state for us, but we are very strong on the Punjab side, we are very strong on the Gujarat side, and the new 2 markets which are coming up is Maharashtra and actually Delhi. We are not that very strong on the Hyderabad side. On the IT, we are still not that. We're trying to build. That's something which we are trying to build on that. On the, you know, the GPay and I couldn't get the, you know, question here, but I think it will get covered when we do the digital presentation, you know, in the afternoon. Hello? Soumitra. Hello. Sir, my question on the repo rates have moved by 190 basis points since May 4th policy meeting, and how much we have increased our FD rate since then? That is first question. Second is, since we are coming into the busy season and the deposit rates, what is your view on the deposit market? Where, how much we can expect repo rates to move up to reflect the complete transition of from the policy rates? Repo rate has gone up around 1.9% odd, all of you know, in different phases. We were once around, you know, 5.75. You know, we were always that, you know, what Suman said, that we were 50-70 basis points, we touched 6. As we stand today, we were at 7%. We passed on, obviously, not fully, but passed on. As I said, you know, if you see the ad for Axis, they already have 7%. That change happened last week. HDFC, if I am, you know, right, is already offering 7.3% odd now. I'm forced to, you know, as we speak yesterday, we had a mini ALCO. We are deciding to now move our rates to 7.25%. We passed on, but we didn't pass on the full 1.9, but we did, you know, pass on because that's what is required. On the deposit, you know, growth, you know that 9.5% is the deposit growth rates. We are clocking much higher. Last year was around 21%. We are trying to get to at least 18%-20% internally. I'm talking about internally. The stated objective with Suman and us is on the retail side, we have to be practically 2x what the market is. Market drops to 8, I'll try to be at 16, 17. Market, you know, goes up to 10, I will try to be at 20. I because, see, I'm coming from a small base, you would understand. With the segmented strategy, I'm playing deep on these pockets. I should be able to get more market share. Hence, you know, I'm saying that, okay, we should be, and I have already done that, 1.8 to, you know, 2 x of what the market is. Thank you. Soumitra. Hello. Yeah. A couple of questions. First is on self-funding ratio for retail assets. If you could give some perspective of how much liabilities you are able to mobilize from your retail assets customer. The second question is relating to attachment rate of term deposit within your customer base, if you could give some perspective. One clarification on community banking. I thought the bank already used to mine the promoter and promoter family accounts of Diamond customer base. What incremental changes have you made? If you could talk a little bit around that would be useful. Thanks. I'll start with the last one. I think the Diamond Bank, I think we spoke maybe a quarter back. That's the time when Sumant said that we are starting this thing of community banking. I told you why this community banking. The U.S., you know, we have seen some success. In the South India, we have seen some success. What we are now trying to do is that we used to only talk about the promoter accounts. Now we are not only talking the promoters, but the salary and their families in the small villages. We have gone two steps below that. It is as of today only Diamond, but we will also do the other piece also.What was the first one you said, you know, about? Oh, self-funding. Okay. I told you, okay, yes, I remember. Is that on the asset side, specifically the retail assets, we didn't play the branch route, okay? I gave you the number that out of the 85,000 cards which we do, branch only sources 10-12, okay? Out of that, the guys who actually are opening accounts with me is as low as 10-12%. I want to take it up to 50%. Actually, I've told my guys that it has to be full 100%, but I'm feeling that, okay, it should be at least 40-50%. Same goes for LAP and PN. As we, you know, talk today, the%s are very small. That's the, you know, the opportunity which we have. We look at HCAC. What is the story of HCAC? Is the cross-sell between clients. I have that potent base, and now I will be doing it. On term deposit attachment of term deposit with existing customer base. I've come out with a, you know, good thought out there, and I've implemented yet to see too much of success, but, you know, we will. Is that, see, when I'm doing that 85,000 credit cards, I'm actually sourcing 2.70 lakh-2.80 lakh apps, okay? To get to that 85,000 cards which I'm rolling out. Now, in this, the rejects which we see is that is because of poor CIBIL, because of, you know, stability of employment or receipt. What we are trying to do is that, and we learn from all these, you know, Policybazaar of this world, where they talk that, okay, how they can, you know, correct or cure their CIBIL scores. We have come out with this innovative thing that we have a secured credit card, right? Where we are telling the guy that, "Okay, why don't you open a FD with us of INR 15,000, INR 20,000, INR 10,000, whatever. I'll give a 90% limit. If your payments are good, you can upgrade yourself to a normal credit card, either with me or somebody else." What I'm trying to do is, one, attach a FD out there. Second is, you know, it's new to bank to me, both on the liability side and also on the card side. Sir, hi, this is Antariksh from ICICI. Just two quick questions. One is, this LCR retail deposit that you're saying that you're focusing on. Is there a ticket size cap you're placing on top of it being an LCR retail? If I'm not wrong, that cap is INR 7.5 crores. INR 7.5 Crores, absolutely. Which is quite high. It's RBI guidelines, so it's INR 7. 5 Crores. We are also, you know, internally focusing on something called OSMOS, which is below INR 2 crores. Which RBI still don't track it. There's no published data. Right. LCR is a published data, obviously that we need to correct. We are, you know, we are absolutely low now. We are at 41. Stated objective, 48-52 odd%. It's INR 7.5 crores. Yes, you're correct. Right. The second is when we look at the industry data on credit cards, on an average card or whatever basis, industry comes up at about twice the system, right? The average spend per card or average transaction amount per card, it's INR 8,000, industry is at INR 4. Is that. We are much higher. If you see our data, we are anywhere clocking during festivities, it went up to 28,000. Mm-hmm. You know, on a normal, if you don't have festivities, around INR 24,000 odd. We are far higher. We actually compete only with Amex out there. Is there any reason for that? Is it because spend- No, it is not. It's the client base which we have, okay. You know, it is more on the upper strata we don't have. I gave you those, you know. You will see most of our, you know, cards are based on the upper strata of the economy. The other answer is that, see, if you look at other, you know, peer banks, they have a large, you know, salary base. Because the salary base, they have given those cards. I don't have that. I don't have that mass salary base. Hence, my cards in the lower strata is slightly lower than what is there in the other side. Sure. Thank you. Hi, this is Kunal from Carnelian. I've just one question on this NR strategy of ours. Just wanted to understand, is there any concentration, I mean, when it comes to specific, say, I mean, few banks have got concentration at a particular region, community? Anything of that sort when it comes to IndusInd Bank? Good. I think good question. I'll give you. This is the last one because I think we are running late. I'll give you two data points so that, you know, you get the answer. I showed you last four years data where, you know, from a market share 1.58, I've moved up to 2.6, 2.65. In the four years back, my base was 83,000, you know, clients. Today, as we stand today, I'm at, you know, 140,000. It is around 1.7 times I have increased. If you look at my market share also, I've practically increased by around 60-65%. It is absolutely. It is all retail. It is not bulky, okay? Bulky can be maybe five, six, and that is also in the below, say, maybe INR 10 crore-INR 15 crore. It will be maybe somebody, a really high value client putting INR 2 crore or INR 5 crore. These are all LCR money, which is seven and a half crores. 97% of, you know, the NR and affluent is LCR, you know, thing. There's no chunking. On the geographical thing, we don't have those kind of segmentation that, okay, suddenly I'm totally Kerala based or whatever. I gave you the balance sheet spreads also. Our home markets in, you know, in NR is Punjab, Gujarat, Kerala, and the newer markets is, you know, Maharashtra and Delhi. Okay. just one related question is you said that 25% of the fees comes from Forex. these are pure transactional fees or what kind of fees is this? You know, these are FX flows both on the, you know, export, import and all the NR inflows remittances which comes in. That's it. This is Conzuma, I'm not talking about the bank. Conzuma is all about trade flows, which, you know, my clients give. I have, as we stand today, I'm at a 1.54% market share. I think I should exit at around, you know, 1.7%-1.75% end of this FY 2023. These are all transaction flows with the importer, exporter is doing inward, outward, and the remittance flows which comes in for affluent and NR. There is no contingent liability related fees which would basically sit here of any sort? I mean, any liability product for these transactions, contingent liability kind of products? No. They are pure transaction-oriented fees. No, it's purely transaction fees. Fair enough. No contingent liabilities. Okay, thanks. That's it. Thank you very much. I'm available during lunchtime, so or rather, any point of time you can always, come. Thank you so much. Thank you. My name is Sameer Dewan. I oversee affluent and international business. Thanks everyone for taking this time out today. It's great to see a full house. There are some movements at the back, but I think that's fine. Today I'm going to start things off with an overview of my business and discuss some areas of growth. We'll wrap it up with a Q&A. I have been allocated about 30 minutes of time. I'll try to be on time. I'll spend about 25 minutes on the presentation. Then we'll wrap it up, 5 minutes, keep it for Q&A. Then we move on. Before I start my presentation, I would like to just make an overriding observation, which is despite the scale and size of this business that we are talking about, and I hope you will see that in the numbers that I will show in the presentation, actually the growth is accelerating faster now than ever before. In the last three years, I think Suman showed in his slides, even in Soumitra's, the business has almost doubled in almost every financial metric. I'm quite confident that the growth will continue, or in fact even take a higher pace as we grow more stronger and dominant in this, in this space of business that we do. With that background and, you know, I will move with on the slides. I'll try to cover it up as quickly as possible. This chart that you see, it moves from right to left being the premier layer of clients. As we go along on the left-hand side, that's the bottom of the pyramid. For us, our business strategy is essentially based on, it's a very client-led business model. All clients with INR 50 lakhs or above are considered affluent customers. For me, my sweet spot is the clients who have investable surplus of, say, INR 1 lakh to INR 100 crores. These are, this is a, for very good reason, this is a very attractive segment. These clients, the segment is growing fastest. There is some NYT rank out there which says about INR 6.11 lakh. If you see this one, I mean, at this point in time, you're talking about just two, so it's growing three times. The good part about this segment also is that not only that this segment is growing, but even the wealth of these HNIs are growing at even faster pace. So I get double benefit. One is my universe increases, and at the same time, even those guys who are in this universe, their business increases. So I, you know, I get double benefit. I grow with these guys. It's also a very cost-efficient segment. I continue to, you know, get fees from them. They are not as sensitive about the fees. The moment we move to little bit more towards left, we know that, you know, the margin starts to squeeze, the spread starts to go down. This is, you know, absolutely fitting in the right spot. Also, these customers still even today, they still depend on financial intermediaries like banks to do their transaction and meet their banking requirements. Again, if you move towards the super HNIs or ultra high net worth individuals, we are seeing some, you know, already emergence of family offices, so it makes it more difficult to go and reach out to them. This segment also fits very well with our stated in strategy. I think Soumitra and Suman both mentioned it. We are playing deep in the tier 2 markets, this fits in very well. The home markets that we talked about. These are the clients which are sitting out there. What I would also like to show you actually is that not only that we have, if you look at all the financial metrics here, in most of the metrics, we've either doubled or have grown more than that. Right? In the last 3 years, you know, the business has been really lucky. Of course, we had a little bit of a tailwind. The market has been extremely favorable to my business. You know, we had, we had the environment was very favorable. We had the market which was in a bullish trend. Liquidity was very high, and even interest rates were almost all-time low. You know, we've had a big advantage of this, this one. The good news is that even though there was almost a U-turn, starting this financial year, the market went into bearish mode, liquidity is an area of concern, and the interest rates are almost at the highest level in the last 10 years. We have continued, our growth has continued the momentum. I've had one of our best quarters in the last, in Q2. You know, I'll move to this one. In fact, while the last 3 years were very good years, we also spent some time building a very granular, a very consistent, and a very annuitized business. When we started this business of affluent, Suman had thrown a challenge at us saying that, "Look, you need to have a model which works in both good and bad market. It cannot be that" He said that the market will not, will never be always secular, will not have a secular trend. Market will have good and bad, it will go up and down. It can't be that when there's a good market, you know, I have a great business. When the market goes down, which will happen cyclically, I'm struggling for my numbers. I think I'm quite confident, in fact, the last six months is a validation of the fact that we managed to create a model which is showing that, you know, as I said, my last quarter two, has been the best ever quarter that I had, and I've had a great first half in this year. This model essentially, and I'll go into details in terms of when I start discussing this model, it rests on three pillars. One is that, you know, we've diversified our fee, and you will see that in the next slide, how we have diversified our entire fee structure, how it comes and from where it comes. The service which I call it as a bedrock of my business, I believe that particularly spend, you know, especially so for this segment, the customers, these clients may talk about price, but they eventually end up buying on service. This is an extremely important parameter for our business. Of course, you can never succeed if you don't have a capable team. People is a very dominant part of this business. It's a very people-oriented. If I move to the next slide. You know, when we looked at the model at that time, we said, "Look, we need to diversify our business." If you see the wheel right now, this wheel looks totally different, this pie chart that you see from what we had in the last, let's say 1 or 2 or 3 years. Right now, what you see is that almost 50% of the income is coming from the business owner segment, and the rest of it is coming from the individual or assets. What we did was that, you know, when we started this business, we created an RM, and we created an ecosystem around an RM. Every RM has a product specialist next to it. When an RM identifies a need from a customer, he will go in the second meeting with a product specialist. It could be an asset specialist or a trade specialist or an FX specialist or an investment specialist. That's how, you know, it the whole thing started, and it has given us a great dividend, and we are finding that even when the market is not reacting the way it should or in our favor, we continue to see the growth in this in other side. Additionally, you know, we focus on full family segment. Most of our clients, you know, we have on an average 1.8 client per household, which means that almost every customer that we have in the affluent segment, there are at least two customers there as in terms of a family member. Every client, we have at least one family member. We have gone, you know, very focused on this family, full family segment account, which has again, given us big help. I mean, this could also be a business account. In some cases, there could be one individual customer, but there could be a second business account. Therefore, the household average becomes 1.8 per household, 1.8 customer per household. We have close to about 300,000 customers and 1.5 lakh of households. Right? That's the way. I'll now go in slightly deeper into each one of them. On the client experience side, as I said, I mean, this is really my competitive advantage. The way we have created a service environment around all our customers. We have a dedicated service manager for every client, and these service managers have no fee or a revenue target. The only thing in their KPI is the client experience. You know, and we've also digitally enabled them. I think Som mentioned something similar for some of on the consumer side. Here, every customer, if he gives a service request, may be it a statement request or a interest certificate or a checkbook or whatever that may be, and it could be from any channel, whether it is done in the branch, it is left by with the contact center, or it's done on mobile banking or on internet. The moment the service request is placed, an alert is sent out to a service RM, and it becomes the responsibility of the service RM to ensure that request that has been raised by a client is fulfilled and closed within the given turnaround time. It has really played out very well for us, and this entire stuff. You know, non-resident owner, again, NRI, sorry, is again a very, very critical segment for my business as well. We've created again a separate, you know, segment for these guys. We leverage on the setup that Consumer Bank has. These guys have 24/7 service call center, a client can call from any place, any location, at any point in time. We service them at any point in time of their choice and convenience. They could be calling from U.S. or Australia. Our contact center is open and available to them to answer any question that they may have. We have created separate. I think there was a question which was asked that do we see any particular concentration of NR clients in the geography? Well, I won't say that there is a concentration, but definitely, I mean, we have, for example, the GCC area, which is the UAE, the Dubai area, we have, you know, larger part of our customers sitting there. We've created a separate proposition for them. Normally the proposition is not just for the customers when they come to India, but also while they're in Dubai, for example, we help them. There's an airport pickup for them in Dubai. We have a Dubai Zomato tied up. You know, we do their car insurance, you know, renewal, which is supposedly or a registration renewal, which is supposedly a painful process. We take care of that bit for these customers, which is again, very well appreciated, and again, giving us, very high dividends. The metal card, that I would like to speak to you. Again, all convenience, stuff that we have created, this is the best in class card that we have. We give both the customers metal debit and credit card, loaded with features. We have taken now the service to even the next level. I think we saw these pictures, as I think someone mentioned, that when we see an ad, you know, we have been launching these branches in many cities already. We have about 10 cities that we are covering. These branches don't look like a branch at all. They look like a lounge. You can see in these pictures, actually, these pictures also don't do justice to the way this place looks. We have about 10 or 12 of these now already in there. Two of them just coming up as we speak, within the next one week, two weeks, three weeks kind of stuff that's happening. Our debit card is a very strong card. It gives you a zero markup. The, I think, we spoke about the FX card, but even on a debit card of, for PIONEER, if a customer is using it in U.S. or in U.K. or anywhere else, the debit, the conversion that you see is almost or exactly as the, you can check on the XE app or on the IBR rate. It's exactly as per that rate. You know, of course, we also powered it with unlimited golf games. Golf is again a very popular game for our kind of client segment and is very well used as well. Cards is doing very well. The other thing we do just to ensuring in terms of the service, we have moved away from an RM scorecard now to a client scorecard. What it means is that now we start monitoring every client and see what the score of that client is. We look at one, as I said, one of the very important vector, the household segment. We look at the household for these clients. If every client has been, at least the family has been penetrated. We look at the product holding. Is the client holding one product, two, three? On an average, an affluent, the client holds 4.9 products, which means that every customer in my segment today on an average, have 4.9 products of the bank, are using 4.9 products of the bank. Digital enablement, of course, we also track the transaction intensity of the customer. If we find that the clients are not transacting enough on our account, that means maybe that we are not a primary bank for the customer. We go back to the client, we speak to them, explain them the benefits, you know, also show them some of the digital capabilities that we have. It helps us again, to build that bit and strengthen the liability. The one big thing that this dashboard has done for us is that it has taken away, you know, from a Gulshan approach, which means that no RM. If I'm an RM and if I have 3 very good clients, I can actually survive because I will get a very good fee from those clients and work with them, or maybe 5, 10 clients. What this does is that even if I have 5 clients, I may get full score on these 5, but the remaining 150 clients that I have, I'll probably get no score, and it will show up here. The RM gets exposed. It forces the RM to ensure and, you know, engage with the remaining 140 clients as well, because we know that there is value in the entire 150 customers that we have. This has helped us big time in terms of, you know, improving our margins, our number, our productivity per RM. The way this business is, I mean, one is clearly as much as we scale, we will see more value out of it and, but it can't be just linear. The productivity is a big game here. The more, you know, productivity that we show for the RM, and the growth becomes, it starts compounding. The last is the people and the distribution. Again, as I said, you know, this is extremely critical vector for us. My business is very people dominating business. Clients, it's a relationship business. The clients actually buy, you know, the word of the RM who's there in front of him. You know, we continuously, we invest a lot in terms of training. There are regular trainings happening. There are regular market calls happening almost as regular as weekly, just to ensure that the clients are fully aware of what's happening around them. Reward recognition, I think it was mentioned also by Som. You know, we do it on a regular basis. In fact, I was this weekend or last week or this weekend, we were in Kochi celebrating the winners of the first half of this year. As I said, I mean, we've had a great first half. So we have been celebrating. In terms of distribution, we are already on ground for over 50 cities. We have about 10, as I said, PIONEER branches, two coming up. These PIONEER branches have been super success. I heard in the past that it takes even for HDFC to reach up to INR 150 crores in three to five years. We have seen in terms of the success of these branches, you know, it takes less than one year to get to INR 100-INR 150 crores. My Chandigarh branch, which is about seven-month-old, is already past INR 100 crore. I have a branch in Kolkata, which is seven-month-old, is close to INR 100 crore. I have a branch in Delhi, in Punjabi Bagh, for those of you who are familiar with that place. It's about INR 500 crore. It's been the oldest branch. It's about 2.5, 3 years. We are seeing great, you know, advantage of this visibility that we are creating, plus these branches that are coming up. I have few testimonials, we just picked it up from some of the customers. The focus, you know, what we try to do is we try to focus that every client interaction has to be made delightful. If you read this, I mean, you don't have to read them actually in details, but the common theme that's coming across in all these three testimonials is, you know, speedy resolution, proactive approach. You know, we have, we try to create as much convenience as possible and superior service that we can offer to the customer. In fact, I'll tell you, I had an opportunity to meet a customer last week, and he's been banking with us, in fact his family's been banking with us for almost 24 years. He was, now we have his family account, his children account, his grandkids are also banking with us. We have few of these multigenerational clients. I mean, it's really it makes you feel really proud when you meet them. In fact, it was very cool, when he said to me that, "Sunil, we would have not been where we are if without IndusInd Bank." That's the kind of relationship that is there between these customers and some of our bank and the RMs. It's clear that that's really the bedrock of relationship. Am I doing even faster than that, right? Maybe. This is my last slide, actually. You know, this is a forward-looking slide. I have, you know, this is essentially, I have no hesitation in saying if I look at the past trends that I'm confident that I'll double my book. In fact, I'll grow faster than what I have grown in the last three years, seeing the track record. I mean, we are compounding in numbers, every year, in terms of how we are heading out in, heading forward. We are able to push. I think, someone, maybe Vikram mentioned outside that we are able to push on the strategic advantages that we have or the model that we created better, than some of our competitors. We didn't stick. You know, initially when we started, you know, we started as a pure play wealth player. Very soon we realized that, you know, we can't just be a one-horse pony. You know, for the same reason as what Sumanth had mentioned, that, look, you can't be just dependent on one product as wealth. If the market doesn't go in your favor, you start, you know. At that point in time, we realized that, look, I mean, we have such a rich HNI base, and we are able to do a lot more than just, you know, restricting ourselves to the wealth, but probably able to, you know, have, meet all their banking requirements. We've seen a big success out of that. I mean, with those customers, the relationship that we have or we had, we are getting all their business transactions. We are getting their business requirements. You know, although, you know, when you saw the pie chart, it shows that we have now almost 50% income coming from the business owner segment. It doesn't mean that our wealth income has gone down. It's just that we have increased on our business owner side far more, much faster that it's right now looking like the 50/40. Of course, in this market, this becomes more conducive when the market is also favorable on the wealth side. In summary, we are excited about this business, and I'm quite sure that we will further succeed by driving our business, driving our synergies, and we will continue to invest in technology and also in the new initiatives. A lot of work still to be done, but I'm quite certain that the large part of the heavy lifting is already over. We've done that in the last three years. Our models changed over that period. We used that time when the market was great in that period. I think right now we have a good model. We have the right platform, we have good people and all the resources that are available for us to meet our numbers in the PC 6. In the next 3 years, I'm quite certain that we will see this business doubling for sure, or if not, we're doing better. I guess that's my time. I think I've taken 25 minutes exactly on the presentation. I'll open up for Q&A, if any. In the affluent category which you're talking and the high HNIs and everything, they are opening international accounts. Right. Mostly with foreign banks because you are allowed to send quarter million per person and park it outside. Are you offering a product where I don't have to go to a DBS or another foreign bank and open a foreign currency account with you? Yeah. You don't have to go to DBS at all. We can do whatever what DBS or HSBC or Citigold could do. At this point in time, there is an arrangement where you can have your LRS money, which is about quarter million dollars every year, which you can move as an individual outside of India. And we offer that. We have tie-up with the foreign banks as well, where we will allow you to do that. The other thing that's happening in this space is the GIFT City. GIFT City allows right now to hold balances or funds in foreign currency. At this point in time, you know, the way they have opened it up for resident individual investors, it's, you know, it's not playing out very well. You can't hold the money in foreign currency for too long. I think they give you a grace period of about 30 days, and within that you have to transfer it outside. We have been speaking to GIFT City as well. GIFT City also forms part of this business where we are able to actually then be able to park that money. Right now you can make some investments in a predefined, you know, products which are largely sovereign products. Assuming not the GIFT City, you said you have tie-ups with certain banks outside. Right. Your own branch outside. We don't have a branch outside. What we have. Currently you don't. We don't have a booking center. Yeah. We do have a rep office. We have rep offices in London, Dubai, Abu Dhabi, where we help in terms of more servicing the customers. We don't have a branch outside, so we don't have a booking center. Who would be your partner, preferred partner banks? We have Banque de Luxembourg, we use if there is a need for our clients who want to transfer fund, park some money outside of India in foreign currency. Thank you. Thank you, Vikram. Yeah. Hi. Yeah. I just want to get a sense of the competitive, you know, scenario in this space. Who do you acquire customers from? Are they customers who are coming through from, say, the larger private sector banks where customer service is an issue and they look to, you know, a better customer service offering like you or, you know, the earlier questioner also alluded to some of the Foreign banks are now not so intensive in their marketing cities, you know, in a state of flux and probably losing customers as well. When you index yourself, say most of your customers would have multiple bank accounts. Right. How does the journey happen? Does it start with small balances and then over time you acquire a larger part of their wealth? Just to onboard the customer, you know, you don't onboard the customer till the large amount of wealth comes on board. I just want to understand who are your major competitors, how do you acquire customers, how is the customer's journey through your relationship? Yeah. Are you seeing as a book that customer balances are improving all the time because you're offering a better service and they're drawing from balances with the other banks that they have relationships with? Sorry, long question, but, just trying to figure out. No, I think you have a good understanding of this business. The answer is yes and no. Yes, you know, in most cases, we do start small with our customers, and then over a period of time, the balances starts growing. In fact, in this financial year, we've acquired close to already, you know, 10,000 customers. On an average, on my every month, I acquire a certain acquisition value. In fact, I, you know, it was very intriguing that if I acquire 100, let's say 100 every month, that's my acquisition value. In the six months, I should have been 600, but it's 2,500. That's how fast and how quickly this segment, you know, starts growing. It's a lot depend on the trust that the client has. He won't place a lot of trust immediately when he comes into you. The other part of our acquisition strategy, as I said, is full family banking. When we go to full family banking, there is already a trust established there. A client is actually referring us because of his experience or her experience that they've already worked with us. Those are the clients who are giving us even larger value, and we are seeing some, you know, immediate and initial large value checks coming into us. The third and, you know, that's where I say that this model has played out very well. Even from a competition perspective, to answer that question, is that, you know, we do a universal banking. I am not restricting myself only to wealth. Wealth is my foot in the door strategy. When I go to the customer, when I reach out to the customer, my first, you know, maybe port of call is towards the wealth. Very soon and immediately, because we have a lot of business owner segments, we are able to actually offer clients a full, you know, suite of transactions or b-banking requirements that this customer may have. In this case, frankly, there are not many competitors who are offering for these customers. ICICI Bank recently I've seen, in the last 1.5 months, they are coming up with their private banking ads, and also I've spoken to some people there. They are adopting this similar model, where not only the wealth, but they will also looking at the business interests of the customer. The other ones like Burgundy or HDFC Imperia, they are still very limited and restricted. The last, you know, the acquisition that we get is from, we also acquire a lot of RMs. We are able to give the ability to our RMs to do, you know, a larger business for the same customer, which in many banks is not possible. Therefore, they end up making better revenue credit and better incentive, and this place becomes a place of choice. Thank you. A quick follow-up is on geography. Traditionally, most players have focused this business in metros. I should speak to most. Given the strategy that Soumitra was also referring to in terms of home markets and you're trying to move out, is that your large opportunity from a five-year perspective, slightly underserved, smaller towns where the market is large, but the competition is sort of ignoring? I mean, I think the metros definitely remain large right now. I mean, they take the lion's share. Clearly, we are seeing value, and particularly value for our business because, A, we are one of the later entrants into this market. In the smaller towns, in the tier two cities, where we already have, as IndusInd, we call them home markets. We already have our intensity in terms of the presence is already there. We are seeing huge value coming out. Markets like Patna, Jharkhand, Jaipur, Chandigarh, you know, Kanpur, Bangalore, Ahmedabad, Hyderabad. I mean, these are the markets where we are seeing, you know, we are deepening and we are seeing huge value. In fact, in many of these markets, and I gave the example of Patna, we are clearly the preferred choice for every client. We are very large. We are the largest, in fact. There are only few markets where I can say that we are largest from a wealth perspective, from an affluent perspective. That market is where we are largest in that market. Now also, doing a similar bit in Ahmedabad, we are seeing and also in Hyderabad. Thank you. Thank you so much. Yeah. We are leveraging on a presence basically where we have already. Thank you. Sorry, there's a question right at the back. As per my understanding, when it comes to wealth management business and this affluent clients, HNI, RMs play a very vital role because they bring in these clients. There is a certain tendency that when the RMs leave, so it also punctures the client. Clientele, right? What kind of attrition rate we are looking in this business of RMs, and what kind of measures you are taking, let's say if a RM is leaving, so with that, the client does not go away. Right. You're right. I mean, RM is, you know, a very high dependency business for us. Client, the individual. That's why I said that, you know, the people is one big focus area. In fact, I tell this to Zubin that my biggest business partner is HR. Just to ensure that because, A, retention is big key and, B, the hiring is the second one. We do a lot of stuff to make sure that at least we retain our high, you know, high-performing RMs. As I said, I mean, I just came back from an R&R, where we celebrated success of a lot of, you know, performances that happened in the last, in the last half, first half. You know, we've also created a segment of RMs, we call them, you know, elite RMs, where we give them special, you know, stuff. These are all the RMs who do a fee or a liability of a certain, beyond a certain threshold. You know, so we try to ring-fence these RMs as much as possible. We do see attrition, yes, but not necessarily that, you know, when an RM attrites, you know, we see about 20-25% of flight off for the clients as well, but it's not anything beyond that. In fact, it's becoming also more difficult for RMs now, particularly because we have the model where client is RM is able to service clients a lot of his, you know, banking requirements, which if he moves out, he may not, he may have to give up half of those that business or the credit that he gets today. In terms of% of RMs, I mean, I would say, you know, there are 2 type of RMs that we lose. One is regrettable RMs, where the guys who are performing and we are not able to, you know, hold them back, for whatever reason. There's also another part of non-regrettable RMs, where there are some RMs who are not able to come up the curve, which we continuously on a regular basis, I won't say we fire them, but, you know, I mean, by not giving incentives, by not giving increments, they come under pressure. By regrettable, leavers, I don't know, Zubin, just correct me if I'm wrong, but I think it'll be within the range of 25%-26%. I mean, yeah. I think we are fine as long as it stays around 20, below 20. Yeah. Sameer, just to add on that, I think, you know, one thing which I want to just add to what Sameer said is, I think IndusInd is, especially on the PIONEER side, is perhaps the only, you know, institute or bank which has a concept of service RM. I think your question was that, you know, if the client will move out. In our case, I can say no, because any client is actually mapped to two people. One is a RM, which Sameer spoke about. The other one is a service RM. Mostly what we have seen is that the sales RM moves out. The service RM doesn't because remember Sameer said that, okay, they don't carry targets. He mentioned it in his presentation. They don't carry targets. These people are, you know. We envelop the clients in, you know, two ways. One through the sales, the other one through the service. The client, there can be an attrition on the RM, but my client doesn't go out because I have one leg already there. In fact, there's a third leg. You know, every customer who's beyond a certain threshold, you know, there is a mandatory meetings of the supervisor. If he's even beyond the further threshold, there's a meeting of a regional head, zonal head. You know, in terms of our better and good customers, we ensure that they stick around and they stay with us. Yes, we do lose some clients. Right. Right. Okay. That's my time. Thank you very much, guys. Thanks a lot. I'll leave it here. Good afternoon. I'm Sriram. I have taken over from Mr. Partha, CEO of Consumer Finance in January 2022. I have been with this company for nearly 30 years. Before taking over this role, I have been heading commercial vehicle construction equipment and light commercial vehicle as national head. Even before that, I have handled other products like three-wheeler cars and construction equipment, as stated. I have adequate experience in this unit as a whole. Post I taking over, the entire industry has turned around. More than the experience, I would say, like, I'm lucky to. Now moving to the. I'll start off like MD did, like, on talking about the macro developments and how CFD has handled that. One of the major factor is the growing vehicle sales. There has been a huge increase in vehicle sales post-January. Like all the vehicle segments, starting from two-wheelers to construction equipment, everything has picked up, and the numbers are looking good month after month. We also, like, have done much, much better. We had earlier clocked around INR 9,000 crores in the previous quarters. Now we have come to INR 10,000 crores. In Q4 of the last year, like, we did INR 10,000 crores for the first time. In the Q1 and Q2, which are supposed to be the weakest quarters of the year, we have done INR 10,200 crores and INR 10,800 crores. It bodes very well for our future. Generally, like, nearly 45% of the business comes in H1, and the H2 contributes to nearly 55%. Here, like, we have done more than 21,000, so I'm pretty sure, like, we'll be doing around 25,000 in the next half. Rising interest rates. This is as everybody was feeling like nearly 2% increase has been there in the repo rate. Like, we have been trying to increase our interest. Like, we have managed to increase by around 114 basis points for the December numbers. We were doing around 12.35 in December. Now we are doing the incremental disbursement is happening at 13.50. It has been a good increase. Secondly, our book is entirely like a fixed book. The kind of volume we do in the peak of the interest cycle, it will go a long way to increase our bottom line in the future also whenever there is a interest rate drop. The most important factor I would say is the increasing freight rates. There has been lots of disruptions in the market, there has been COVID, after that accident load norms was there, and then there was the diesel price increase. Everything was not occurring very well for the commercial vehicle segment. The increasing freight rate is one thing, not only negated all this, but it's also giving hope to all the people to buy the new vehicles. Like, the entire industry is banking on the freight rates to improve, it has improved quite a bit. Nowadays, like, there is a 90% efficiency in all the vehicles. The vehicles were plying earlier for, say, 75%-80%. People were getting the onward loads, but, return loads, people had to come empty. Now there has been a like good demand for the return loads also. 90% of the cases, people get a return load, so it is very, very profitable right now. There, there are some other developments which has happened or supposed to happen. Like, one is the NBFC, like the NPA norms has been changed by RBI, wherein like it will become NPA on the 90th day of default. For going forward, unless they pay up the entire overdue, it cannot be upgraded to standard. This is a huge change for NBFCs. This kind of change, like it takes nearly six to eight quarters for the entire NPA to show up. The entire NBFC industry, they operate at nearly 10% SMA-2, apart from NPA levels, which range between 6%-9%. The entire SMA-2 will flow into NPA some point of time, because none of these guys will be able to pay up the overdue in full. That is one thing like we are banking on to NBFC to slow down. We as a unit, we are better equipped to capture whatever is the slowdown by NBFC. We are addressing the same geography as the rest of the NBFCs. We are also having the customer profile, which is similar to that of the NBFC. I think like we are best positioned to take care of any slowdown in NBFC funding. The growing digital adoption by CFD is another factor we are banking on. Like, in two-wheeler and cars, like, we have adopted a digital journey wherein we will be giving approval in 15 minutes to 1 day. Our present time is somewhere between 3 to 5 days, that we are improving it to 15 minutes to 1 day. This will also give us like more business. It will also help us to increase our productivity. This is the disbursement I was talking about. Like, we have moved from 3,213. Now, the last month, like we were 4,437. Before December of last year, we had hardly crossed INR 3,000 in 4 months in the entire tenure of CFD. In the last 12 months, we have crossed INR 3,000, and in November also, we are looking good for a INR 4,000 number, which will help us to close the quarter at INR 12,000 crore. Going forward also, JFM, we look at another INR 12,000 to close the year at somewhere around INR 45,000-46,000 crore disbursement is what we are looking at, which will be all-time high for us. Last year, we did around INR 34,000, and before that, INR 36,000 was the highest ever we have crossed. We are very sure of crossing beyond INR 45 this year. I have compared only the monthly peak before that. I have not compared with the previous previous year's number. I have compared with the previous peak which CFD has done. 8% over the previous peak of April, 10% over the previous peak of May, 24% over previous June, and now it is nearly 40%. November is also looking good for another 40%. This is the rate of interest I was talking about. From nearly 12.35%, we have nearly clocked up to 13.50%. Going forward, I think another 10, 20 basis point, it can increase in the future by a better product mix. We were doing two-wheelers, we were the number 2 in the industry, due to slow digital process, we had slipped to 4th position. Now we are aiming to get back to second position, which will give a IRR of nearly 24%, two-wheeler. Once we change the product mix, we should be able to get a much, much higher yield in the product segment. Portfolio as a whole like the whatever is the income for the yield is only 12.75%. We will improve in the near future. We should get to 13% in the next 2, 3 months, like we should be able to get it to 13%. Apart from this, we do also make other income of nearly 1.4%. This is, these are the USPs, like generally like CFD has been using to get to this position. 1 is the vintage. We have been here in this industry as either Ashok Leyland Finance or as CFD for more than 30 years, and all the people are very, very experienced. Most of the people have done nearly 15-20 years in this division. Like, we are able to use this vintage, like kind of, they have seen at least 2, 3 recessions. The COVID may be a new thing, but all other kind of recessions they have seen in the past. They do not get, like, bogged down by recession. They always take business calls even when there is a recession, because they know the kind of business we write up in the recessionary period, like, is generally more profitable and more safe than the rest of the time. The network. We have nearly, like, 800 branches like, pan-India. 800 IMSS branches, apart from nearly 400 branches of IBL. Totally 1,200 locations, but we serve nearly 43,000 PIN codes in this entire branch network. There is no part of India which is unserved. Maybe, Kashmir is the only state we do not lend to. The rest of the country, like, we have a very good presence. All our branches are very, very yield conscious. Our, like, focus on the tier two, tier three locations, that gives us the entire profit. Like, these kind of locations are generally not, are not having a competition from the bankers. We get a much more yield because the competitors or NBFCs who have a much higher rate than CFD. We are able to get our income up and balance out whatever our metro, wherever we have to compete with the bankers. The process. We have the best in class TAT in all the segments. We range between 3 to 5 days to give a sanction, which is itself one of the best, except two-wheeler, where we have lost out the rest of the industry, like we are very much the best player in that. Service. Our, this is one of the unique thing with CFD. Like, the branch head handles both collection, credit, and business as a whole. Like, they underwrite the business. Up to 1 to 2 vehicles, they can underwrite the business itself. Apart from collection and business sourcing, they do it. This is what, they give what you call wholesome service to the customer. It's not that they can do the business and run away from the customer. They have to service him for the entire 3-5 years tenure he's going to be with the company. There's no way, like, he can escape from the customer for a service need, and later on he cannot approach the customer for a business. No way the customer will entertain. They always have a balance between like service and business. That way, like it has been holding very, very good for this unit. Stable manpower. Our business, like, generally, there's no, not much attrition. Beyond the branch head level, there is very, very minimal attrition. Whatever attrition happens, it's below the branch head level. It is also more because of there is no movement in the beyond branch head level, people do not see much of a growth. People in the business executive role, they quit. Otherwise, once they get into the branch head role, their growth path is more or less defined. People do stick on for the entire journey out here. Relationship. Our relationship with the dealers and OEMs is one of the best. Not only their feet on street has got a best relationship with the dealer employees, even the dealer owners or the dealer or the OEM employees, they have a good relationship with the people. They know whom to escalate a matter to. If there is something which is not being attended to the field level people, they immediately take the phone and speak to the next higher level. This way, like, we are able to attend to all their problems and attend to all the customers also. Collections. This is one of the USP, like, we are very, very proud of. Generally, like, other NBFCs and banks, they allot only whatever is the bones to take to a collection employee. What we do is we allot around 250 contracts to an employee, whether it's overdue customer or if he's paying on prompt, promptly also, he's allotted to that employee. He keeps the service, like, part of those customers also. These customers, they have, like, need for NOC. They have a need for, like, statement of account. They have other needs like insurance to be renewed. Everything these customers approach these collection people. Collection people also derive some income out of it. They do refer some used vehicle transaction which is required by these customers to our business executive and get also certain incentives. That way, like, they also maintain the contact with the customer. They also earn, and the customer also get their service needs. This way, like, we also get upfront information. When our customer is going bad, we know better than the rest of the industry. Even when the first month slippage is there, the collection person informs us whether that guy is profitably running and whether he's siphoning the funds or he's not able to run it or he has got other problems in the family which he can tide over or it is only a area specific problem which can change over in the years to come or months to come. This is the entire top level team. It's not that we are banking on one person or the entire product heads. We have 8-9 product heads who are in CFD. All of these people have come from a stated level. They have been promoted to zonal heads, zonal head to national product head. I also come the same route. All these zonal heads are also come from business executives. They have been promoted up to zonal heads. They are in the 45-50 age range. They are the future bet of the organization, and they are doing extremely well, except Dinesh, who has come from outside. Rest of the people have been grown inside the organization. These are the rest of the products. Again, here, all these people have more than 15 years experience within IndusInd Bank, apart from some experience outside also. All these people are our future product bets. This is our market position. Commercial vehicle, we are number two in the industry next to HDFC. This is the one area where we have lost market share in the near past. We were having a market share somewhere around 12%. We had slipped to 9%, Now we are up to nearly 10.5. The present run rate is around 10.5. The slippage in the, whatever is the market share, is mainly due to the interest rate, which is mainly offered by HDFC as such for Sundaram Finance kind of bankers and NBFCs. These people offer those rates which are not very profitable for us, We do not compete on this rate front. We have lost out some amount of market share. More so like the retail, whatever is the retail demand from the commercial vehicle segment has slowed down. Earlier, there used to be, like, 50% of 1-2 vehicle owner which were buying those vehicles. Now it has more turned towards the strategy kind of thing, it will change in future. Right now, like, we touched a low of 9.5, we are already up to 10.5, which augurs well for the future. When there is a strategic demand itself, we are maintaining 10.5. When there is a retail demand, I think we'll be one of the best. Construction equipment here, our market share has been steady at 13%, we are steady at number 2 position. It's more than 5, 6 years we have been number 2 to HDFC, we are maintaining the position out here. The total PA, I mean, principal outstanding in this segment is around INR 9,000 crores. Light commercial vehicles, this has been one of the thrust areas in the last year. Like, we had, light commercial vehicle and commercial vehicle together as a unit, but in last January, like, we split it into a separate unit. From market share of nearly 4.5%, we have increased up to 9% because of the split. The current run rate is around 10%, like, last two, three months we are doing at 10%. This is one area, like, we think we can reach into the top very soon. The IRR in this segment is much, much higher than that of commercial vehicle. Like, the profit also is much, much greater. Small commercial vehicle. Here, like, we were a major player before. Like, we used to have a, I mean, number one position in the kind of passenger vehicle segment. Due to COVID, the passenger vehicle segment in three-wheelers has slowed down quite a bit. There are not many takers. Even the existing takers are, I mean, existing customers are finding it difficult to run it. It's not very easy because the share autos and autos are not plying fully. There is a problem there. Slowly we changed over to the goods segment. From passenger, we changed to goods. Therein, like, there is quite a bit of viability post-COVID. People are able to operate it fully. Slowly, whenever there is a passenger vehicle segment, we should be able to catch back that, number one position we earlier had. Tractor and farm equipment. This is the one of the latest entry for CFD. Like, we entered only in 2014. Before that, we never were funding a tractor segment. We were funding as a portion of construction equipment, but as a separate unit, it was formed in 2014, so that we can do kind of agri tractors. There we are doing very, very well. Like, from 0, like, we have gone up to 9% in 6 years. Like, we are the number 4th in the industry. Slowly, like, all the four are very close by nearly 9%-12% of market share range, all the four people or all the four bankers. We should be able to catch up 1 or 2 in the next 2, 3 quarters. 2-wheeler loans. This is another area where we have slipped up in the past. We were number 2. We had market share was like nearly somewhere around 7.5%-8%. We have slipped on market share also and also on position. As I said earlier, like, we are entering into a solution through BCG and Salesforce wherein, like, we will be able to give a 1-day TAT. Post that, I think we should be able to catch back whatever is the lost market share and also improve our share. The passenger vehicle, this also has been one of our, like, very good performer in this year. Like, we have increased our market share from 3%-4%. Though we are number 7, the auto loans, whatever is the amount which is generated every year by business is very, very good. Slowly, we have caught up to INR 18,000 crore, which is same as the commercial vehicle. Very shortly, with that should be overtaking commercial vehicle as the leading product in this unit. Our total disbursement, I mean, total PAAS is 70,000 as of today. Sorry, I didn't mention, like, there is a INR 24,000 crore MSME loan which is getting placed, and we are getting a refinance on that. Apart from that, agri loans from tractors of, say, INR 8 thousand, which not only helps in our PSA lending, there is also funding, easy funding available on those. Coming to the collection, this is the Equifax report what we are getting from Equifax every quarter. We are comparing ourselves with the industry. The orange one is the entire industry. The other gray one is like only our peer, or the main bankers like HDFC, ICICI, Axis Bank, Yes Bank and Kotak. We compare ourselves with them. Except in 30 plus, the other thing we are either in line with the peer in the industry or even better than them. If you look at commercial vehicle, except in June quarter, where we have slipped and gone beyond peer 1, which is mainly because we slipped in Odisha, wherein they introduced a export duty on iron ore, which made it very, very unprofitable for iron ore exports. People curtailed and curtailed their operation, and they were not even mining or exporting. That placed quite a bit of burden on our customers who were doing all the kind of transports from the mines to the port or to the industry. Now that export duty has been totally like in the last 2 days, it has been, what you call, canceled. It is back to the old levels. I think in the coming months, we should be able to get back to the difference like before what was existing. Same thing in the construction equipment. Though in the June 2022 quarter because of the iron ore and also in the September 2022 quarter, we have slipped a bit because of Odisha. We should be able to catch back in the coming quarters. PV. PV new, the auto loans, like, we are the best in the industry, both by overdues and also by NPA level, like ours is one of the best in the industry. We are performing better than the peer in the group itself, the other bankers itself. Our NPA levels are sub 1 and nearly 0.5 to 0.75 is the NPA level, depending on the time period. It is one of the best product available in our system. Two-wheeler, here we have not compared the peers because HDFC is one of the major peers. Like, as the major disbursement of the industry is skewed towards HDFC, Equifax is not giving a report because you will be able to gauge what the HDFC portfolio itself out of that. They are not giving it any peer comparison. We are comparing only with the industry. We are, even against the industry, we have slipped up in 60+. Mainly, not due to the NPA increase, mainly due to the denominator also decreased actually. Like, we were having INR 6,000 crore portfolio, whereas we slipped down to INR 4,500. Because of that, like, due to COVID, we had stopped business during around six months in the first COVID and three months in the second COVID. The portfolio dropped. That had a huge impact on the%s. Hence, like it looks worse than what it is. In the coming months, we should be able to reduce it or rest it to 5% by at least a year-end, both by getting the actual NPA down from the INR 350 crore level now it is, and also increasing our base from 4,500 to somewhere around 5,000 or 6,000 in the next 3 or 4 months. Already the last two months are looking good. We are doing, clocking not less than INR 500 crore in each of the months. I think with the Salesforce, what our journey I was talking about, I think we should be able to increase it much further. This is a tractor. This is one of the late entry for us into tractor segment. Hence, like we are more or less in line with the industry. I think once we get experience in this tractor segment, I think we should be able to perform much better than the industry as such. These are the focus areas, like MD said, like a used car, commercial vehicle is one segment, which is more profitable also. The kind of, whatever is the NPA credit cost coming out of it is not very variant from the. It is more than, new vehicle, but not very variant considering 4-5% extra income what is coming out of used vehicle. I think it is a good bet to be in. The kind of, you know, thing like a used vehicle composition, what we have is nearly 60% comes out of the existing customer who have repaid the loans. Another 25% comes out of the customers wherein the customer himself is selling, and he generally refers our buyer to us for financing. These two are a bit safe area because, 1, there is no transfer of vehicle involved in the first case. Second case, there is transfer involved, but he is our customer, so we know like whether the seller is fraudulent or not, whether he will run away from transferring the vehicle. That kind of risk is not there. Only the risk of buyer not performing is only there. This 85% of the cases wherein, like there is no risk in transfer of vehicle. The customer, anyway, like we are evaluating these kind of customers only for new vehicle also. We don't see like it will be too variant in this 85% from new vehicle. The other 15%, we do take up cases wherein we fund before the name is transferred to the buyer. Here, there can be some hiccups like from transferring from one customer to another. There are certain RTO issues. There are within that time, like the engine will like conk off. The buyer will not like, be interested in taking the vehicle. That kind of problems exist. Other 85% is safe. This 15%, there is some amount of risk, but there is an increased margin available. The new light commercial vehicle, that is what I was talking about. Already, we have made the inroads into other competitors. I think we should be able to get to the top very soon. Affordable houses, this is one area like we have slipped up, though we have started in 2018. We have run up a book of only around INR 2,000 crores. From, this was run up even before COVID, this INR 2,000 crores. After that, it has been steady at INR 2,000, though we are not able to increase it. We will be focusing in the next 3, 4 quarters whether we can scale up this volume. Tractors, again, from start from 2014, we have come to a stage wherein we are nearly INR 10,000 crore portfolio. This is one segment which gives like PSL advantage also. We are focusing on this segment, and the return out of this segment is also quite good. These are the digital initiatives what we have taken, which has helped us like very good advantages. Say IndusEasyWheels is one this thing wherein we are marketing our repossessed vehicle through this segment. This way, like, we are able to improve our price realization also and gets us also like comparative quotes all are available digitally, so that when customer goes back to quote stating that price is low, we are able to show them the auction platform, everything. That way it is useful. Going forward, I think we should be able to get also customers, like the buyers also into financing terms. This is one area. The IndusDrive, that is what I was talking about. We have come into a solution wherein we'll be able to give a sanction from 15 minutes to a day. That is one area. Both these, like, we will be demonstrating in our stall outside. Please do look into it. We also service our clients through WhatsApp banking and the IndusMobile, wherein customer asks for statement of accounts or their interest chart or anything regarding the loan, we are able to answer them, and we are also able to send them promotional materials of what our schemes what we are having and what is the benefit out of these schemes. Thank you. Open to questions. Yes, sir. In the presentations that were made on the analyst day couple of months back, you had also shown 30 DPD, 60 DPD and 90 DPD for all the businesses. There was a clear trend that for CVC tractors, 30 DPD is not materially different from peers. Gradually, that is with 60 and 90 DPD, we are able to perform better. How should we read this? One thing is, like, we debit delay interest on every month on the delays. Like whenever there is a delay of 15 days in the customer, we do debit whatever is the delay interest as per the agreement into the account. Generally, like, There are some bankers who do it, there are some NBFC who do it, but not all of them do it. Naturally there is a slippage of 1 bucket to another. Whatever is, like, if the customer pays the due alone, if he doesn't pay the delay interest, then it slips to the 1 bucket higher. That is where, like, there is a difference. We make it up in the next 2 months. Like, we do collect it and we get arrest it back. Beyond 60 days, we do not debit the delay interest. When the client reaches a 60+ bucket, we do not debit the delay interest. That is one of the major reasons why 30+ is variant, but 60+ we are able to catch back. Essentially, does it imply that in underwriting or in collection, there isn't much difference between us and peers? It is just it's, you know, accounting or entry-? No, there is no difference in NPA at all. Like, once it reaches NPA, like the entire delay interest, everything is reversed. Whatever is the income is reversed. There is no difference in accounting in NPA. In old new situation, yes, there are certain people who do not debit the delay interest. We debit it religiously. Like, we do not allow it to slip, and we collect it in the next 2 months. Any particular reason we are not able to replicate the same success in two-wheelers? In two-wheelers? Yeah, two-wheelers, our performance is on par with peers. That is because, like, the numerator has, come down quite a bit. Sir, that is the case with peers as well. I mean, a lot of them have not grown their books. See, like, there is a difference between. The main competitor was HDFC. There is a difference in kind of underwriting in HDFC. HDFC was mostly concentrating on salaried employees. We were doing it for kind of masons, carpenters, milkman, like that. There was a bit of a, you know, time period during COVID, wherein these people were not making money. We also never gave them, say, first three months moratorium we gave. After that, we didn't give them the second moratorium. We didn't give the restructure portion also. We totally avoided this restructuring this because the interest rate was so high. If you postpone it, there is a ballooning of whatever is the loan amount. We avoided giving that. All these people ran up to NPA level. After that, collecting all the 3 installment back, it's not that easy, as they are in a trade wherein they cannot pay more than 1 installment. We are slowly collecting it. Maybe in the months to come, we should be able to bring back the NPA level also and increase our outstanding also, which will have a dual impact. You don't feel there is any reason to revisit the lending segment rates, underwriting? We have already revisited. There are changes we have already made. Our new system is, like kind of, giving more so to the 60% we are looking at people who have, income which can be demonstrated with the bank statement, ITR return or, salary, this thing. Earlier it was more than 70% to people who are not having it on records. Now, nearly 60% will be people who will be having the income on records. The rest 40% only we will be playing around with the other kind of categories. Wonderful. Lastly, sir, on affordable housing finance, can you provide some more flavor on the kind of segment you are targeting, yield structure you would want to target? We have chosen nearly 100 locations pan India. Only in these locations we are operating right now. We are looking at all kinds of customers who are coming in that range, wherever a commercial vehicle kind of customer also we are looking at. These kind of industry only are paying the interest rate what we are demanding. We are demanding somewhere between 12.5%-14%. Whereas the salaried owners and our salaried people and all are getting housing loan which is much below 10%. This is the segment we are targeting, and we are targeting also our existing customers and some referred by DMs. We are in a learning process. We are yet to crystallize on which is the exact segment we'll be focusing on. In the time to come, like we should be able to focus on certain segments. Any sense on the average ticket size there? Yeah. INR 12 lakh is the average ticket size. Okay, this business will continue to be driven through the CV franchise. Yeah, right now, yes. That is. Okay. -that. Any desire to go inorganic to build the size, maybe get ready. Yeah, we are looking at, we are trying, we are not able to make inroads, but I think, We have a LOS which is being introduced, Lentra. With the help of Lentra, we are doing it. It is being introduced in one or two places this month. I think for going forward, if you are able to get our TAT down, which is already nearly taking 9-10 days, if we can get it to 3-4 days, we should be able to make in+roads into this segment. The potential inorganic opportunities will be in flavor-wise, similar to what you are doing currently? I'm not looking at that. Maybe MD will be able to answer that better as of... Okay. Thank you. Thank you. Any other questions? Thank you. Good afternoon to you all. My name is Sridharan. Am I audible? Yeah. I think it is a natural order of things that my turn is coming now. Prior to lunch, we had Sumit Roy and Samir Dewan talking about high street banking. Came Sriram, who talks about banking to people who are slightly outside the city side and toward the countryside. Now I'm going to talk about a business which IndusInd Bank and BFIL is doing in deep rural. We are the Bharat. Before I go into a slightly more involved discussion on what has happened to the economy and how we are managing and about our business, I thought that I'll just give a brief one slider on who we are, and we are the new kid on the block as far as IndusInd is concerned. We got acquired by IndusInd Bank in 2019 through a merger. The way it was structured is that after the merger, the business correspondent undertaking will be offloaded to a wholly owned subsidiary so that we do the business for IndusInd Bank as a wholly owned subsidiary. The balance sheet sits in the bank, but the entire business performance is driven by the BFIL unit which continue to manage the business. In terms of an industry, we are an industry leader. This business, BFIL business, which earlier known as SKS, Swayam Krishi Sangam, started way back in 1997. This is our 25th year of business. It started as a mutual benefit trust, then NBFC MFI, then got acquired. Now we are a BC undertaking. In terms of the core strengths and what we actually do and who we represent, I just want to look at the culture of the organization as to who we are and what do we do. Our ethos is basically in one word, responsibility, because we deal with customers who are at the bottom of the pyramid, who are coming into formal banking or formal credit market for the first time or their early entrance. They have to be educated on their responsibilities. We also, as a responsible lender, when you find a large number of clients, there should not be any over-leveraging. The responsibility to the customers and also responsibility to the depositors, the investors, these are the underlying thing of our line of business from the day we started the business. It is not that it has come just only now in the last 4 years or 5 years or 3 years. Secondly, the success of this business, the success of SKS and BFIL business, has been because of the very, very, very strong risk culture. I have got a slide on what I mean by that, but this is one of the biggest strengths. Third, whatever we do, it has got a very high social impact. As I told you that our customers are to a large extent first time coming into the formal credit market and the journey of our interaction with them start with educating them, telling them what do they need to do in terms of this thing. They are all having high aspirations to start a business, we tell them what are the importance of saving, how to support each other in terms of need, and what is the importance of meeting the credit obligations very, very regularly. Thereafter only we start the lending journey. This actually gives a huge social impact to the customer community, and it also gives lot of pride to our operating team. If you meet any of my 23,000 loan officers who are on the field on an everyday basis, each of them is highly charged because each of them talk to clients whose life we are changing. Now in terms of our strength, we are a very, very strongly, deeply entrenched rural business organization. 80% of our business comes from the rural area. Out of about 500,000+ villages in the country, we operate in 133,000 villages. We are present in about 500 + districts. The deep real rural reach is what is giving us one of the strengths. The other thing is that our business is highly templated. The way we start with the customers who are the bottom of the pyramid, my employees are also joining us from the same milieu. We have to give them a very, very focused training. We need to first educate them as to how they need to interact with the customer, how they need to manage, how they have to conduct the center meeting. The entire process is completely templatized and completely clearly articulated. There is no doubt when our Sangam manager or the loan officer completes his 45-day training program, he or she will be exactly equivalent to another person who has been there in the field for the past 5 years. That is the way we train them and then we send them to the field. Third is the technology that we are able to use, especially in the last 5, 6 years. I joined 1 year ago, whatever I'm talking about 10 years ago or 6 years ago is based on what is documented and then explained to me. 10 years ago, when the entire industry was completely on paper, you had to collect the application form, process it centrally, give the loan in cash. SKS at that time was the first company which started introducing computers. From that time onwards till today, in terms of the digital journey, BFIL is leading the pack everywhere. I have got a slide to show you. I also will tell you when the customer journey comes, how it is end-to-end digital. The last strength is our employees. We are a people business. When we manage 80 lakh customers, 80 lakh loan clients, and about 90 lakh other clients who have a savings account with us, this has to be managed by my last mile loan officer. I cannot have a four-eye principle everywhere because I can't have a person to shadow every loan officer who goes to the field. The way we train them, the way we impart values to them should be in such a manner that they are able to exercise their job efficiently and I've got an adequate control process. This can happen only when we take care of our employees very well. Employees are a very, very critical component of our business model and the strength of that, I've got another slide which later I'll show you as to what we mean by our employee strength. As of now, as of September, we managed INR 32,250 crores of asset business for IndusInd Bank, and we also have got a liability base of INR 1,700 crores, which has been organized purely based on our guys meeting them. As of now, this is not through any promotional activity. We just go to them and we tell them that, "Look, there's an opportunity for you to start a recurring deposit account." We open savings account for them instantaneously. If they've got some surplus money, we allow them to put it in fixed deposit. With this, we are able to manage INR 1,660, which is about 5%. Our plans are there to take this to a much higher level. This is what we are. Currently, we operate our business through three verticals. One is the microfinance, which we call member services, which is predominantly a joint liability group based model. This is the largest business unit, one of the oldest business unit. The second is the one which have really excited all of us. We started that in 2019. This is the loan to rural and semi-urban shopkeepers purely on a templated but in a very, very differentiated product offering. This we have scaled up pretty nicely. What started at close to zero in 3 years, 3 and a half years, it is 2,700, and it is clocking upwards 45%-50% year-on-year growth, and it'll grow further. The third is our Bharat Money Store, which is a sub-BC agent network that we built up. As of now, this also we started somewhere in 2017 on a pilot. Even now, we are running this more as a service offering, not as a sort of. We have not yet fully monetized this. What we started as a sub-BC network with a few shopkeepers who we enabled them with the technology to give them AEPS-enabled payment services. With the business which started with about 10 merchants 5 years ago is now around 80,000 merchants. Half of them do transaction at least once a month, and this actually is growing. We would like to monetize it in the next 3 years. This is what we are in terms of our business. Before I go into a discussion on our individual businesses, our organization a little more deeper, I thought that we will spend couple of minutes on what happened in the recent past, especially in the last 6 months, in terms of external environment and what opportunities it gives us and how we have done that. While many things have happened in terms of our industry, I would like to look at only 2 major things. One is the RBI coming out with a unified set of guidelines for the entire microfinance industry. Earlier, prior to this RBI guideline, there was a set of regulations which impacted all the NBFCs, NBFC MFIs, and there was ticket size caps, exposure caps, whereas the banks and small finance banks had a much more freedom, and the way the industry looked at the business model was slightly different and differentiated. RBI came out in March 2022 with a uniform set of guidelines, which is for the entire industry. What has that done for us is something that was a question that was asked in the morning. I thought that is an opportunity for me to explain to you. In terms of the guidelines, RBI has made two principles very, very clear. One, you should look at these borrowers who are at the lower end of economic wealth holding as a household level and do not split them into individuals. There's no way by which you can assess the individual's income. It is all a family income. Any family whose annual income is up to INR 3 lakh and any collateral-free that you give to them, so collateral-free loan you give to them, is a microfinance loan. A very simple definition. It is applicable to all the entities, whether you are an NBFC lender, whether you are a trust who's into licensed by RBI, or whether you are a small finance bank or a commercial bank, whoever it is, this rule is applicable. Second, in terms of ensuring that the lending is more responsible, cash flow approach has been brought by RBI as a mandate. Just prior to this, almost the entire industry had an exposure as the measurement. Why? Somewhere 10 years ago, RBI said that if you are an NBFC and you are lending to MFI, then individual exposure cannot be more than INR 1.25 lakhs. Because of that, the entire industry pitched their business model in terms of what is the exposure that they give to the customer, irrespective of what they earn, where they live, what sort of cash flow that they have. All their lending models was based on that. Now RBI has brought this thing back and say that you need to assess who your household is, what their income, and not more than 50% of that income can go towards loan obligations. You decide your business offering considering this. This brings a great amount of responsibility to the lenders, and this also gives a great opportunity for us. I'll explain this. Prior to this RBI guideline, almost every lender used to say that, "Look, RBI has given a limit of INR 1.25 lakhs, and I will go on giving up to this limit. The only thing is that I'll go and then check the credit bureau where only MFI loans are populated." You only look at the MFI exposure of that client, and then you keep on giving them, whether you've got multiple relationship, multiple lenders to that same customer, as long as you are within that cap and you find a borrower, you give a loan. There is also a requirement to capture the income. That was not part of the factor. As far as BFIL is concerned, and even earlier SKS, as I told you that responsible lending has been our ethos. While the INR 1 lakh or INR 1.25 lakh cap was there, we consciously never went to the extent of giving them unless we are sure that the customer needs it. We had put that in our business model, in our credit evaluation. When RBI guidelines came, we were one of the first of the block to build that. RBI guidelines was announced on March 14. We were just given a 3-week time to switch over. April 22nd, we had the complete end-to-end digital journey stitched together, where we can go to the customer, assess the customer's household income, evaluate the customer's requirement for the loan, and then give the this thing. Second, we are all now forced by this regulation to look at the overall comprehensive credit bureau history of the customer. Earlier, almost every lender was looking only at the MFI outstanding. The customer may have a KCC loan, the customer may have a 2-wheeler loan, the customer may have any other sort of retail loan which is not coming part of the MFI bureau. With the comprehensive credit report and the overall credit exposure coming in, we have a great opportunity to look at the customer, her income, her family's income, her family's outstanding, and then offer products which can meet their overall requirement. This is a great enabler for us to come and then stand here and say that we will not be a micro lender, we'll be a micro banker. The journey from a micro lender to micro banker is greatly enabled by this regulation. As far as we are concerned, we have not found much challenge in doing that because the evaluation of our customer had inbuilt this in some manner or the other. The other thing like transparency and all are part of our, this thing. In terms of the RBI regulations, we were one of the first to implement, even though RBI came out with an FAQ in late July. They said that, "Look, we find that industry is still not this thing. There are some people who want to have additional time. Till 30th September, you can continue to have older practices. We did not revert back. What we implemented in the month of April, we continued because we have already imbibed those guidelines in our business model. As far as the interest rate scenario is concerned, we were able to pass on some amount of the rising interest rate. After a long, long time, we revised the rate of interest from 19.75 for the JLG business, which is the microfinance business, by 75 basis point. Even though the industry interest rate has gone up by more than 190 basis point in terms of the regulatory rate, we have passed on 75 basis point. We are watching the scene. As a large lender, we are still evaluating whether there is any scope for further increasing the rate. We are not going by what some of the other smaller NBFCs have done who have increased the rate by 200, 300 basis point. We are watching the space. As I again telling you that our this thing is more towards a responsible lending. Now with that, let me come to a little bit of who we are, who are our customers, and how do we serve them before I go into a quick discussion on our individual businesses. Our customers are all entrepreneurs. They are as entrepreneurial as any large business person that you can see. The only difference is that these people's economic wealth holding is pretty low. They are at the one end of the spectrum, but these are all entrepreneurs. These people who are small business owners, they are looking for finance. Earlier, Before they come to entities like us, their only funding availability is a local money lender. We bring them from a local money lender. We educate them about the financial industry, lending, group participation, paying on time, and we make them a responsible borrower. In our member services business, all the customers are women entrepreneurs. In the member services business, we lend only to women and only in a joint liability group model as of now. The journey towards individual lending, I'll come a little later as a product expansion. Today, our customers in the member services business, the INR 75 lakh loan borrowers, are all women. They are all organized into joint liability groups. As I told you that they are all coming from bottom of the pyramid. In terms of exclusivity to a large part of them, about seven years ago, we used to be 70% of our customers to be unique to only us. This industry, because of the high rate of interest and better margin, has seen a large number of players coming and then staying for some time, going back, and new set of players coming in. The multiple people lending to the same customer is pretty high. We do have certain standards of how many lenders we do permit. As we speak, 41% of our borrowers are borrowing only from us. They are not borrowing from any other entity, whether it's an NBFC or a bank, whether it's a microfinance loan or a scooter loan or any other loan. 41% of them are unique to us. These customers are predominantly rural, as I told you. 80% of the customer base is rural, we are present in 23 states, 500+ districts, and 133,000 villages. Our customers, someone asked during lunchtime as to what are the industry in which they are there. This is the thing, that most of our customers in the rural area are in agri and allied agri activities. That can be poultry, that can be bovine, I mean, cows and buffaloes or some small this thing, shops, handloom, handicraft, small trade. They buy and sell vegetable, horticulture. Anything in the rural which requires some amount of a business where they need funding, we go and then approach them and then take. In terms of technology, the bottom part is that this is where one of the differentiating factors that has come into our business model. Prior to the mobile penetration and especially prior to Aadhaar, most of the business processes were paper-driven. We have to collect the application form, process it. It had a huge cost in terms of originating the customer, evaluating the credit, and serving the customer. The mobile and Aadhaar penetration has come, we are proud to say that we, as the deeply rural Bharat part of this country, provide a completely end-to-end digital journey to the customer. Our customers, when I say that they're digital, they are not digital savvy that they can do everything on their own. The journey is digital, we are there to support them to start the journey. The sourcing of the customer is not digital. We are not a fintech to originate the customer on a nameless basis. Every single customer who walks into BFL and IndusInd Bank is physically met by a loan officer and also a supervisor. There is no customer who is onboarded without at least two people meeting the customer. These customers, when they come into the system, their journey from start to finish is completely paperless. There is not a single document which I have to collect from them and store them. There is no signature required, the end-to-end Aadhaar-enabled payment. In terms of the key things that differentiate us from the market is our agility, our efficiency, cost efficiency, and our execution capability. In terms of cost efficiency, we continuously monitor our efficiency in terms of cost per rupee of asset or in terms of our cost to income ratio very, very meticulously as compared to the competition. We continue to benchmark much better than the entire industry. Of course, we have got a desire to improve it further. We have got an ambition to do it further. We will certainly improve. In terms of our current operational capability, we are the best in class when it comes to cost to income ratio. The only thing that differentiates us from any other lender is our execution capability. There is also some discussion of on what this organization is about and some senior people have left and what is the impact and things like that. BFL is an organization which is not seen by many other than through the numbers that we put out on investor presentation, quarter on quarter. This is a pretty large, stable organization. I have taken over one year ago to lead the unit, but it is not that the rest of the organization I have brought. The rest of the organization entirely is the same that existed earlier. Whether the head of member services business or head of the Bharat Super Shop or Bharat Money Store, or my people officer or my internal audit head or my accounts head, every single one of them existed there. It is not that these are the only guys who are there. We are a 30,000 +, 35,000 people organization now. The layer which is below them and their layer below them is highly stable. That is the reason why the management change at the top could happen. Of course, some of the impact that what people noticed was more what was perceived based on what you see in the media, what sort of, what to say, news item that is put together. As far as the core of the organization is concerned, when I am present through my 3,500, 3,200 branches, they are there. They know exactly what they have to do morning to evening. Their supervisor layer, which lives, 25 kilometers away from them, their supervisor layer, that entire network is intact. This organization has been successful only because of that sort of infrastructure and that has remained. Now, as far as the organizational chart is concerned, as I told you that we are a BC. As a business correspondent regulatorily, we are permitted to distribute the products. The risk architecture or the product development architecture or the technology architecture or the overall supervision control has to be done by the bank, so you find some portion of the activity which are managed by IndusInd Bank, and the rest of the distribution organization rolls into me, and then I report to Suman, who is the Chairman of the board. Just to give you assurance, in terms of organization, this has been a stable organization. Proof of the pudding is that, for example, one year ago when people had certain apprehension of what would happen, you have seen three quarter results. You have seen results of December, March, June, September. In fact, 4 quarter results have been out and you are seeing the trending. This is a very, very stable organization and I'm proud to lead this organization. I'll just take few more seconds or minutes in describing the member services business first, because many a time when I talk to people, they are not able to relate as to what exactly this business is and what do we do. As analysts, many of you might have gone to the center meeting, might have understood, might have spent some time, especially those who cover MFI business. Just to give a recap, this is a very, very highly involved customer journey. The customer doesn't become a loan client on day 1. As I told you that financial literacy, educating the customer and organizing them to groups, teaching them what they have to do, where they do not know, forms the core of the this thing activity. From there everything else comes. In terms of our lending, it's all exclusively women borrowers. It is a group-based concept. As the joint liability or the what do you say the model of peer lending is completely ingrained in our this thing. We do not give a loan to a customer, the Grameen Bank model. We are true to the Grameen Bank model even today. We do not give a loan to a customer unless the customer is in the center meeting and the other members of the group know that this is the person to whom we lend. Collectively, even though there is no formal guarantee, collectively they all assure that the group will repay because the next tranche of loan will come only when the entire center is completely due, without any overdue. To ensure that this Grameen Bank model is intact, we do lend only in groups. The other thing is that we today, after taking over or after becoming part of the bank, we provide not only micro loans, we also provide banking services to them. As I told you that we give them recurring deposit facility, savings bank account facility, fixed deposit facility. In case the customer does not have a bank account, we instantly open a savings bank account and the entire loan disbursement, whether it is a customer who has got savings account with us or to any other bank, the entire loan disbursement is directly into the account of the customer. There is no cash involved. In terms of repayment, even today, we truly follow a weekly repayment. Every single loan to the joint liability group model, the customer has to pay installment week after week by being present in the center meeting. This brings the discipline of working together and the discipline of borrowing and lending with the women. The small repayment ticket sizes give them the ability to repay cash on a regular basis instead of having a huge burden on a larger ticket on the month end. The process orientation is very, very innate in our business model, both with the customer segment as well as the employee segment. The other thing that differentiates BFL and SKS with the industry is the resilience that BFL has shown in managing whatever shocks that we have gone through, whether it is a large scale shock in terms of, let us say, a demonetization impact or some of the larger floods and earthquakes that have happened or the recent COVID, which was one of the prolonged ones. All through the cycle, you can see that the growth rate of BFIL has always been slightly ahead of the market, and our market share has remained highly intact. Even today, we command 11.4% of the market share in almost every geography in which this business is present. While I can go on talking about more about this business, since time is limited, let me just move over to the next kid on the block, which is the Bharat Superstore. When we looked at the business after the merger, one of the things that we found was that this large franchise is significantly involved in only one model of lending and one type of asset, which is the JLG business. How do we diversify? We picked up from where our strengths lay. Our strengths lay in identifying a customer who is at the beginning of her formal credit journey, educating them and being with them, giving a loan. We looked at the rural... not even rural, the semi-urban mom-and-pop store, the kirana stores, and all other types of small businesses where they require finance, but they do not have access to the formal, this thing. In our business model, we first pick them up, and we have started with educating them. This is not in group, but we go and tell them that, "Look, for you to become a borrower from a formal market, you need to have the discipline of paying regularly." Those customers who do not have a formal credit exposure to anywhere in the country, we start them with a recurring deposit product. We tell the customer that, "Look, I will onboard you. I will give you an instant current account. I also will give you a QR code basis which you can acquire transaction digitally. You also will be given a checkbook in case you want, you should start with us on a recurring deposit. That recurring deposit amount should be something similar to the EWIs that you are supposed to pay. Only when the customer pays four EWIs continuously, we understand that the customer has understood the concept of payment. With this product offering, we were able to scale this up quite successfully. The product offering is that it is not that we look at the customer, we go talk to the customer, and then first give a check and saying that, "Look, this is your loan." Our credit evaluation looks on two principles, whether the borrower is stable in the place of business and whether the borrower has understood that if you take a loan, you need to repay on a regular basis. Once the customer has completed the first cycle without any issue, we then evaluate and move them to a monthly cycle, because monthly cycle gives us a little more loan efficiency, but that we do it on a very selective basis. The success of this business model is the comprehensive credit offering that we make and we being there physically with the customer every week, every month. In terms of operational model, one thing that differentiates this from the JLG is that here the entire repayment, because we open a current account for the customer, the entire repayment is from the account. 80%-82% of the customers, their standing instruction for loan repayment gets exercised at the beginning of the day. There is no need for somebody to go and then remind or collect. Another 12%-14% on the day they make the payment so that the transaction is settled. There's only about 3%-4% where our loan officer has to go and physically meet them and do the collection. In this product, the transaction, whether it is customer onboarding or a loan or even collection, is end-to-end digital, and that actually has given us a fantastic opportunity. In terms of business, we identify the trades to which we will lend and the geographies in which we'll lend. We don't give it to every single person. We started with one activity, two activities, three activities. When I met the investors about 4 months ago, we had 38 different types of trades. We have added another about 12. Right now we are giving to 52 different type of trades to which we will lend, and we keep adding to that, and that's how we expand the business. In terms of the growth, I told you that we were INR 375 crores in March 2021. In one year ago, we could scale it up to INR 1,900 crores, and the last six months we have further increased to INR 2,700 crores. In terms of the service, there's a doorstep banking, a comprehensive product, and this right side picture gives you where our customers are concentrated, these 50 odd trades. I think I'll skip this. This is basically what we have talked about. It's in terms of the growth journey that we have got. Initially, we started with a very small product of 3 months product and 6 months product. Later we have moved to 50 weeks and 100 weeks product. That's why we have completed nearly 4 cycles of loans. This is the Bharat Money Store. In the morning, Soumitra talked about the Uttarakhand initiative, where one of the feature that we could present to the Uttarakhand government is our ability to provide last mile banking services to the deep rural country in terms of account opening, remittances or loans. That was enabled by the Bharat Money Store. When we looked at this in 2017, even prior to merger, some of the problem statement that came before us was that the rural India does not have a point of presence to do financial transaction of both banking as well as simple transaction settlement. Whether you have to go and then pay your utility payments or electricity, gas payment or a mobile recharge. For any of them, they have to travel to a place which is anywhere, taking them from 2 hours to nearly half the day. How do we solve that? Through technology, through association, through engaging the business correspondent network, we can provide banking services to them. That is the genesis. From 2019-2020. For example, these are the services that we offer today in the Bharat Money Store. They can open a savings account, current account, they can do cash deposit, cash withdrawal, all electronically, their account gets debited or credited instantaneously. The BBPS based bill payment they can make, and they also can do any other financial transaction like whether it is an IMPS or an NEFT transaction. Like the Uttarakhand government or the Tata Power, we also provide customized solutions to the larger economy. Starting from 2017-19, we only had Aadhaar-enabled payment and utility bill payment. Slowly, we have increased the product offering. Right now, even through a mobile POS, if somebody has got a card-related transaction, our merchants are able to do that. We have also started attracting deposits through this, and this will be one of the key pillars for our liability franchise going forward. We have also worked with the merchants to improve our point of presence. When I say that we are present in 80,000 merchants, 1 thing that I saw 1 year ago was that the branding was not all uniform. Unless we have a common branding, we can't take the business. We worked with the design agencies and then found out an option of giving them a very simple, very scalable and sustainable cost-efficient branding. The new branding that we see, it costs INR 3,000. We do not invest on our own. We tell the business partner that you start doing this business, it increases footfall to you, and you also make money through AEPS fee. Over a period of time, you will recover this. With this promise alone, they invest that INR 3,000, then they are able to recover the money. As we speak, the branding exercise started about 2 months ago. Currently, we have covered about 6,000 stores. Before end of the year, 20,000 stores across the country will carry this uniform branding, where IndusInd will be very, very clearly visible, and people can know that this shopkeeper is representing through BFIL, IndusInd Bank, and they can safely do a transaction. The journey from BMS 1.0 to 2.0 is basically to make our point of presence, these 80,000 places which will keep increasing, to be more visible and through which we can do our banking business. These are the three businesses I talked to you about. If I look at what actually has differentiated a BFIL or the earlier SKS with the rest of the industry and how it can... 5 minutes, I'll finish it. Is the risk culture that we have got. We were the first NBFC MFI at that time, 10 years ago, post AP crisis, who started looking at enterprise risk management. Our enterprise risk management works on 3 areas. One, looking at the country, strategizing the country in terms of geographies where we will be there. We do not go into geographies, whether it is a state or a district or a tehsil or a village, unless we have studied that. We have a framework through which we identify the geographies in which we'll be present, and that framework gets revised, reviewed every year. We have got caps that we do not, we will not be present. Howsoever lucrative a market looks, we will not be present more than X% in a state. That way, we have classified the country into five different zones in which we'll be operating. In zone A, where we will be present up to 15%-16% of our business will be there. In zones which are highly risky, we will not be doing more than half% to 1%. We have the classification of geographies as one of the first pillar. The second pillar is a normal credit evaluation norm that who you identify as a borrower, how do you lend, and what is the amount that you lend repeatedly at any point in time. Third, which is the most important thing, is that our continuous intervention. We look at, on a daily basis, as to where there is some stress, where there has to be some amount of control, which branch is struggling, which zone is having an issue, where there is going to be some sort of a rain or this thing, storm is going to come. We look at that, and then we keep on calibrating some of the things like, "Here, don't increase the ticket sizes. Don't offer certain products to these customers. Do not give them more than INR 30,000 to the borrower, even though she's eligible for INR 100,000." This constant attention to the risk in the portfolio is the one which has always helped us. On the operational risk side, we are, if there is one thing that keeps everyone in the team awake at every point in time, is the exposure to operational risk because we are largely cash driven. Our collection comes cash, and we do not have a supervisory layer as a third and fourth eye at behind every transaction. The transactions are booked by the loan officers on the field and our supervisor layer sitting slightly away from the geography. We are very, very, conscious about the operational risk. As I told you that the entire if there is something that happens in the business in my Hyderabad office, which is very, very constant, is the continuous churning of the number to look at the data because we have a customer base of 90 lakh customers which keep increasing by about 10, 15 lakhs every year and about 10, 15 lakh customers attrite. When you look at these customers and when they are coming from a large part of the country, you need to be completely analytical in terms of your risk thing. Data customer profiling is a very, very critical component of our risk management. Proof of that pudding is here. If you look at historically, whatever that has happened to the industry, our credit performance is always better than the industry, and we would like to maintain that. At times, the gap between us and the industry is pretty large, which makes us happy. It is narrowing, we would never like to lose that market position and this market position has come because of the culture that we have got. To give a flavor, we are the only microfinance lender in the country who is meaningfully present in all the geographies where it is there. In India, INR 2.7 trillion is the microfinance industry base, and in that, our market share is 11%. This business is large in about 10 states. We are meaningfully present in 9 of them. The only state where the market is big, where we are not fully present or deeply present is Tamil Nadu. No other NBFC or a bank or a SFB can say that they are present everywhere. They are all concentrated in certain pockets. This also adds to our strength. In terms of our lending practices, this is another stratification of how do we look at the industry and how do we look at where our credit origination and our credit skills come. We do not want to over-leverage the market. Even though there are enough number of lenders available, many lenders come and go, we have our own standards. Now, if you look at, I've just classified the entire country into three parts, where the loan ticket sizes are pretty low, there are some states which are there. There are some states where the loan ticket size is between INR 40,000 and INR 45,000, and there are some states where the ticket sizes are more than INR 45,000. If you look at in any of these stratification, our ticket sizes, our loan size is lower than the industry. Even though we are a market leader, even though we have got a very large presence, because this industry works on a repeat loan, the customer is given a loan after 20 weeks to 25 weeks, even though the original first loan is still in currency, she may need another loan of INR 10,000, INR 12,000, INR 15,000. We are there to provide a loan to her, provided she's able to manage that. This leadership in terms of managing the risk is what is helping us in terms of better credit quality. The next is the technology. I used to look at Soumitra Sen, look at how do you treat your, what to say, best customer. There will be a relationship manager, there will be a doorstep banking, that entire client servicing will be digital. When I look at, we offer to every single customer of ours, all of them, every single customer of Bharat Financial has a relationship manager, whether it's a Sangam Manager or the loan officer or a Bharat Money Store officer, he's got a relationship manager. All the products are offered at their doorsteps. We do not ask them to come to the branch. We go, deliver the loan, we go and collect them from there. The transaction is completely digital. This is again another great differentiating factor, and that is because of the technology platform. If you look at in any of the journey, it's completely digital. As I told you that we do not collect any paper. I do not have any document storage costs. My only storage costs are on the cloud where I need to keep the documents in documents and data. There is no storage of paper document. Sumanth was telling in the morning about employer of choice. BFIL and SKS has been participating in the employer of choice for the past 9 years. The 1st year, we were just outside 100, From that time onwards till now, till 2021, we were always in the top 100. In fact, for 6 years, we were in the top 50. Last year, because of some perception, we slipped. We are about 80 or 82. BFIL has been an employer of choice for the past 8 out of 9 years that we have participated. We would like to maintain that. When it comes to people, as I told you that the strength of the organization, the people. In BFIL, hiring is taking place only at 1 level. I hire a loan officer or Sangam manager, and thereafter, the journey from a loan officer to a branch credit manager, branch manager, unit manager, divisional manager, general manager, this entire 5 layers are internal. I have what this business of member services is managed by 75 regions. 68 of them have joined the business as loan officer. We do not hire anyone laterally. My employees are very confident that they come, they spend their time diligently, they grow the organization, they can grow in the rank. This is one of the greatest success. If at all there is something which gives stability to our business, it is our people strength. I can proudly say that you walk to any branch, any part of the business, you will find at every layer people having a very, very high tenure. The average Sangam Manager tenure is three and a half years. Average branch manager tenure with BFIL is 12 years. The average general manager tenure is 15-16 years. The ability to retain people is a great strength for BFIL. The other thing is the investment that continuously we make in training people. Our business works only in training people. Mind you, the loan officers who join them, they are not even college graduates. They are all typically class twelfth passed candidates. To them, we give them training. We make them a responsible member of the society, a responsible loan officer. Each of them on an average manage a portfolio of about INR 1.7 crore loan book. The other pillar is our constant monitoring through internal audit. I mean, it's all known to us. I would like to just skip this. The other thing in terms of technology is that we have a very effective customer outreach program. While I have got a large number of field force which talk to the customer, since I do not have a supervisory layer locally, we give a toll-free number. Any customer who has got a issue they have to talk to, they can simply lift the phone and then talk to us, and then we listen to their voice. Here also technology is playing a part that when the customer calls, the call directly lands into a call center for an appropriate language. We operate in all parts of the country. I've got a call center sitting in Hyderabad which operates eight languages. If the customer calls, automatically my technology will determine that this customer is speaking Odia, so she will go to a desk where, which is manned by a Odia-speaking person. This actually is a great thing. Every customer, when I talk to a customer and say that, "If you have got a problem, what do you do?" She would proudly say that, "I have the number in this loan card. I will talk." What is the time it takes for you to reach? As soon as the ring picks up, within two, three rings, somebody answers. Do they answer in your language? Yes. These are all some of the thing that I thought that I'll share with you because I do not have a great strategy to say that look, we will do this, that, and all. The only strategy that we have got is that how a NBFC MFI lender, which was acquired by IndusInd Bank in 2019, will shape its future. The last two, three years have been impacted by COVID. We could not do much in terms of the growth journey. Now that we are off COVID, we have got technology behind us, there's a huge customer base and the entire Bharat managed by us, where will this business and this customer base go to? Our ambition is to make every single loan officer or a Sangam manager who we have got from a micro lender to a micro banker. There will be a bouquet of products, there will be a bouquet of services, we will be offering to eligible customers individual loans. We will be providing scooter loans. We have been providing scooter loans on a sort of pilot basis. We will increase that. We also will go to rural India and give them affordable housing and a LAP. It won't be the ticket size of 10, 12 lakhs what Sriram was saying. It may be much smaller. From a micro lender to the micro banker journey is what is giving us an excitement, that is the journey that we will see in the next 3 years. In terms of what the contours will be, what targets will be, we all plan in cycle 3 years, 3 years of planning cycle. Our Planning Cycle 6 is about to be finalized in the next couple of months. At that time, certainly, I'm sure that Sumanth will permit us to come with a sort of a more articulated strategy with the targets. The strategy is in our mind. We know exactly what products we need to offer. To the investor community, to the analyst community, we will bring up our plan and then showcase it to you. This is what I have got in terms of my slide. The only thing that, in our company we feel is that what describes every single loan officer who starts his work at 6:30 in the morning is that customer centricity or any of them, it doesn't give them any sort of meaning. They simply say that. For us, once a strategy is decided and the plan of action is there, we will just go and execute. Any target is possible. Open for any questions, please. Yeah. Sir, you briefly spoke about 3 lending. One is the microfinance, one is the Bharat for. Super Shop, the third is the Bharat Money Store. Bharat Money. Can you divide the lending among these three? The member services business is INR 29,500 crores. Bharat Super Shop is INR 2,675-INR 2,700 crores. Bharat Money Store is not typically a lending app. It is basically a liability service point. It has a very small loan book of around INR 70 odd crores. My INR 32,250 crores is predominantly between the micros lending business, JLG business, and the Bharat Super Shop. Today, it's about 94% is in the JLG business and 6% is in the Bharat Super Shop. We will end the year with 90% and 10%. As we grow forward, in the next three years, as Suman told that my JLG business will not be more than 60% of the overall bouquet of product that we have got. Rest 40% will come from other businesses, whether it is the merchant acquiring business, Bharat Super Shop or the new vertical that we'll be launching in terms of a two-wheeler and secured lending or loan to individual clients. Sir, your Bharat Shop, is it collateral-based lending or? It is a purely a liability service point. If in the rural somebody wants to remit money of some INR 1,000, he or she does not have a mobile app to do that. She has to go to the bank and do that, right? Instead, she can come to our merchant based on Aadhaar enabled, because all their accounts, wherever it is connected to Aadhaar, she can give her fingerprint. The system will identify where she has got the account. She can enter the amount, what she wants to transfer, to whom she wants to transfer. The money gets transferred electronically. Like that we provide anything which is Aadhaar enabled or a mobile POS based in terms of transaction we provide. Money shop you're saying? Yeah. This is money shop. If somebody wants to... What is the revenue, sir? Revenue here. The revenue for them is a commission. AEPS transaction comes with a fee for the merchant. We earn a fee. We part a part of the fee to them. That's how their revenue comes. What is our total revenue out of this? See, this is not a very revenue spinning game as of now. It's a pretty small business. It gives us INR 600 crore of liability for us and the future liability business will come. See, today it's, as of now, in the last five years, we have been running this more on a pilot basis. Now we will be monetizing this. Now we will give targets to people to acquire because anyone who wants to open a savings account or a fixed deposit account or the account using Aadhaar enabled can simply go and then open there. The Uttarakhand model is that in Uttarakhand we are not going to open bank branches there. The 600 villages which are the new Nyaya Panchayats, any person who wants to open an account where the MGNREGA payment will come or the subsidy can come, he or she can just go to any of these VLEs, Village Level Entrepreneurs, open her account. Money will come to her. She can transfer, she can receive. This is a liability servicing point, transaction service point. Lot of fintech is trying, Newgen and other people are trying similar stuff. The whole thing is technology based. Sure. Somebody has to go and acquire them, right? Yeah. Sir, you have 2,600 lending Bharat Shop. Yeah. My question was, do you do collateral based lending or it is... This is unsecured. Unsecured. This is unsecured, we take a credit guarantee beyond this thing. Where there is a risk involved, we take a credit guarantee. As of now, this is collateral free. This is unsecured. We are also going to increase the ticket sizes which will come with the collateral. Currently, the ticket size, the average lending is out INR 64,000. We do have products which will give an average loan of about INR 2 lakh-INR 4 lakh. When we go there, that will be collateralized. Okay. Thank you, sir. Yes, please. Hi. On the individual loans, when you are graduating, it's good to hear that you're, you know, the, you're don't have, you know, JLG is saturating and, trying to push it beyond the point is risky. The individual loans, when you're graduating JLG customers to individual loans, that's a relatively untested model. You're losing some of the risk guardrails that a JLG give you, and you're giving larger loans. Just if you could give us some perspective what additional risk protection you're taking when you roll this out. I know credit bureaus exist. I know that you've had a long risk history with these customers, and that will give you some comfort. You're giving much larger ticket sizes. One of your peer banks is trying to do that and, you know, that's, they are suffering fairly large credit losses in that space. Also, you know, Sumanth was at alluding to trying to make the business more predictable and cycle free. As you get into individual unsecured loans at what are still essentially bottom of the pyramid customers, the business will also become more cyclical, right? You will get hit by NPL. You've done a great job in protecting yourself from NPL cycles. That will become more difficult. If you could give us some perspective of when you get into this individual loan business for, you know, graduating JLG customers, how do you plan to protect yourself from risk troughs and NPL spikes in the future? See, first identification of the borrower. You look at who is your eligible borrower. Second is what are the exposure that you will take. Once you crack these two things, you are there. After whatever is the normal loss that any lending business will take, you need to suffer. It is not that INR 100 that you lend, INR 100 will come back and every single customer will repay. There will be some amount of credit losses. Currently we are looking at both these points very, very critically, and that is one reason why we have not rushed to launching it. Even when we launch it, we will launch it in smaller bases. For example, today I've got My customers, 22% of my customers have been with me for the past six years taking loans repeatedly. Now, out of this customer, if somebody Able to understand and balance the ability and the intent equation. If you have paid me five loans, doesn't create an ability to pay. It may have an intent to pay. Ability and intent has to be managed, That scorecard I don't see anywhere in the industry. I am of that view that even if we launch it, I think we have to be very conservative in launching it. We have to see what are the pitfalls and what is the scorecard which you will use, and what are the surrogates you will use to launch. The household income in India, in the rural sector, has not grown that much. How is it that you're leveraging in at that level? I think these are debatable points. That's why we've not launched it. I think we've not been able to come to a scorecard. We've not been able to back test a scorecard which works on this crisis. Until we are able to do that, I don't see you will see us in this segment in a very big way. Thanks. That was exactly my question. Yeah. Thanks for answering it. We are not rushing there. Any other questions, please? Thank you. Yeah. Hi, good afternoon. My name is Sanjeev Anand. I've been with the bank since 2008, and this will be a corporate and commercial banking presentation. Just in terms of the operating environment in the last year or so and how we have responded. Lending rates, you can see that last quarter we increased our lending rates by 40 basis points. This quarter also there will be a further increase. Increase in lending rates are being passed on. In terms of growth, our small businesses have grown by 47%, 46%, and the overall corporate book has grown by 23%. I think this is an important thing in terms of the increase in upgrade ratios. That, for us, last quarter was 2.5. That means we have had 2 and a half upgrades for every 1 downgrade compared to 4 quarters back when it was around 2. This shows the portfolio quality per se has improved. I think the rest you can, this thing on. You know, on the real estate thing, I think one of the important things is we have in March 20, we had an overall portfolio on the developer financing of around INR 14,000 crores. Today, as we speak, we are at the same INR 14,000 crores, and there's been a 75%-80% churn. The portfolio has really stood up for us in the sense that we have been able to sell the portfolio, take additional exposure, churn it, and stuff like that. It's part of a verticalization strategy because a lot of people have questions on the performance of the real estate portfolio, which has done very well for us. The Russia-Ukraine conflict. You know, we are aware that there were certain players who could have been affected by commodity prices and stuff like that. Business and credit regularly, every month, we kind of sit down, we see what is happening, and frankly, there are no real surprises out there. Everything seems to be under control. I'll just, in fact, rush through certain slides and stick to the more important ones. This is basically a slide to show that we have a very experienced leadership team out here. Most of them have been with the bank for a long time. There's one new joinee, Niraj Shah, who's also now, you know, been with us for 13, 14 months now to look after our what we call the strategic client group. More about that later as to why we created that particular segment. Okay, what do we do in commercial and corporate banking? Briefly, we have around 5,000 asset clients. I have another 3,000 liability clients. These are pure liability clients, which could be group companies, other promoter companies, et cetera. In fact, the 3,000 liability clients give me 25% of the liability which my corporate banking book generates. It's an important source of liabilities for us. In the corporate banking, any company which is over INR 150 crores in turnover is covered by the corporate banking group. We obviously have different coverage models, so more about that later in terms of how we cover various segments. We offer pretty much everything. From a corporate banking perspective, I would say we are a universal bank. Right from working capital, term loans, CapEx, project finance, trade, FX, you name it. I think the thing which is missing, which is being also, we are building up is the investment banking team, but this is not the investment banking which, you know, we used to do earlier. This is pure play investment banking, more about advisory and stuff like that, because we have a strong mid-market portfolio, and we believe that it's out there. We can offer a lot of this thing, but that team is being built up. This is just to show how we are diversified. You can see between large, mid, and corporates. I mean, this is as a% of my corporate banking book. The small corporates, which is at 8.7%, 2 years back was at 4%. This is a business which we would like to grow. By region, we are diversified. By ticket size, we are pretty well diversified. You can see there's a 14% ticket size exposure, which is greater than INR 1,000 crore, but those are all double A and above kind of this thing. I mean, in terms of diversification, we are there. I think the important takeaway out here is that the small corporates part of it is something which will be growing, and I'll talk about that a little more. Corporate banking is basically about four things, you know, how do you research this thing? One is what is the coverage model? How do you cover the corporates, like I said, from INR 150 crores onwards? What are the products I offer? The risk management, obviously, that's a very important part of it. Lastly, the digitalization and analytics to help not only the relationship bankers but also from a client delivery perspective. I'll just talk about each one of them now in terms of what we are doing there. This is the coverage model. I would say we have a unique this thing in terms of compared to other... On the right-hand side, you can see we have specialized coverage units. I don't look after Gems & Jewellery, but we show it under corporate banking that Biju looks after, and that's one of our domain, and Biju will talk about that later. The idea is that these are the various coverage, specialized coverage units which we have, and they have really, you know, the fact that we have a specialized vertical has really stood the test of time. Whether it is real estate, whether it is financial institutions and education for that matter. You know, we are aware during COVID, I mean, schools, colleges, everything was closed. It is a test to our portfolio that none of them kind of had a problem. Yes, during COVID, they were a little bit of an overdue and stuff like that, but it showed that our selection was right, the pedigree was right, and today everything is come back to normal. I think, again, the takeaway here is that verticalization for us has worked very well. We will continue with this. There are certain subscale businesses which we will scale up further. Like between agri, education, and healthcare is a INR 10,000 crore-INR 10,500 crore portfolio. You will see the agri part and the, you know, the part increasing. Education and healthcare will be a little cautious in the sense we don't want to this thing, but it'll be a active portfolio churning kind of this thing. On the client coverage sides, we have four units. We have the emerging mid corporates. This is a new business unit we had created, you know, targeting a segment between 150-500 crores. Then I'll go to the third one, which is the global corporates and institutional group. This is for what Niraj Shah, the guy whom I said who had been hired a year back. Here, what we have done is we have identified a list of around 140-150 groups pan-India, MNCs and large diversified groups, and the job is there to penetrate deep into them. More about that little later. Anything which is beyond 500 crores and doesn't belong to the corporates and institution comes under the corporate banking group. PSUs obviously is this thing. That was the coverage part. I said, like, there are four things. There's the coverage, there's product, there's digitization, and there's risk. I think this is a very important slide. I think products, the transaction banking and the global markets and the cash management products are, I think, core to our cross-sell. I think I would believe that we have built some very unique product capabilities out here, which is pretty obvious. You know, you can see, for example, our product penetration is 76%. That means 76% of my clients have at least 1 product which has been penetrated. This is something obviously will keep improving. You know, where we have 1 penetration of product, we want to make it 2, 3, and then there's obviously 24% of clients who don't have any product, this thing. This is an ongoing thing, but something which we are proud of. What the product groups have done, and there'll be a presentation on that, is it has changed the profile of a fee income. Today, around 57%-60% of my fees comes from TFX and this thing, which a year back or a year and a half back was around 40%-45%. This is something which gives me the granularity and, you know, this thing. In products, I've got two slides. First was a slide more about the annuity part of it, which is the TFX and stuff like that. Here are two products again, which I think we are extremely proud of. Again, it's very unique to us in the sense that... They both go hand in hand. Debt capital markets, because this allows us to, and we are number two out here, if you see in terms of syndication, this thing. This allows us to take up exposures, whether it is real estate and whether... You know, I talked about the fact in real estate, we are churning the book. It is because we have a very active debt capital market team. Similarly, we have project finance. Project finance we do very selectively. Broadly, it is in HAM, it is in renewables, and it's in transmission. Bulk of it is there. Look at the right-hand side. It shows you the kind of churn which has happened. I think that is what allows us to do project finance, and the churn happens because of a debt capital market this thing. Again, these are two products which we are, you know, very proud of. We will do it cautiously in sectors we understand, but it really helps us. In fact, we were the first bank to do the HAM project in India. You know, in renewables, we are very big. Renewables, we do project financing, but we get a lot of other stuff also out there. I've covered coverage, I've covered product. Now, this is on the digital side. When I use the word digital or analytics or whatever, we see it into three parts. One is how is it enabling my RM? From an RM perspective, we have a Power BI, which is there, which an RM, you know, can see which client is doing what, how much has the client utilized, how much is funded, non-funded, what is the return on assets, the ROA and stuff like that. That is one part of it. Second part of it is along with the decision science unit, you also get a lot of information on my wallet penetration. They keep giving inputs because they take external and internal data. They'll take data from, you know, acrylic from, what do you say? Balance sheets from EXIM port data to see what is the export imports happening. They keep giving inputs to the RM that maybe in so and so client, you're missing out on this wallet, this thing. Thirdly, they also curate new leads for us. From an RM perspective, it's very useful. This is all something which has happened in the past 1 and a half years. Second is the early warning system, which has again, this thing, we have some 200 odd triggers out here, both internal and external. An internal trigger could be, for example, an LC has devolved, you know, there's an overdue somewhere, there's a sudden utilization in a client, this thing, a bank guarantee has kind of been invoked. External trigger could be that the company's share price has suddenly moved up. Management has left. A PF payment has been missed. A GST payment has not been made. Like this, there are 200 triggers. We have a rule engine around it and stuff like that. The trigger goes to the relationship manager that this has happened. There's a whole process around it which forces the RM to get back to credit. That fine, you know, is it good, bad, what has happened and stuff like that. This is a very important tool, and it's really helped us a lot in early identification of this thing. Then is the customer. Now from the customer side, it is again about a product. We have digital platforms, and I think product will be co-covering it, whether it is trade and FX, our supply chain, finance. This thing in the first slide, I'd shown that 85% of my ecosystem financing is done digitally. Stuff like that. Lastly was the risk. Risk. Now, there are three parts to it. Number one, the first gatekeeper of risk is obviously the relationship manager or the coverage, this thing. After that, we have various committees, depending on the rating, depending on the size of the exposure and stuff like that. There's no individual authority. Everything is through a committee. I think one more thing which we have, which is very important, what we call the CQLAR, which is, it's actually a post-sanction, post-disbursement audit process. It's not that once the disbursement has happened, then we kind of just wait and the RM... You know, the RM anyway has to do his job because he's the person in contact with the client. There's an independent audit function reporting to audit, which their job is that on a regular basis, they go and meet the clients, the new clients which have been onboarded. They see that all the assumptions which were made when we sanctioned the proposal, they validate those assumptions. They see whatever it is, give their remarks. That is jointly discussed between business and credit. Sometimes they ask us to exit. What I'm saying is, it's a very dynamic kind of a thing. You know, from an early warning kind of this thing. Sumant, I think or somebody talked about ESG, all we have, you know, we have for high-risk industries, we have a proper ESG kind of a thing built in. I think we are cognizant of the fact that there could be reputational and credit risk. We have a proper process. There's an ESG committee which sanctions all the proposals, and it's a very, you know, diligent kind of a this thing. Lastly, I think what is important is, see, on the coverage side, I told you we have various industries and stuff like that, but that doesn't make sense if the risk side doesn't mirror it. On the risk side also, we have people's organization structure out there mirrors the coverage structure, so it becomes easy for the understanding and, you know, for the expertise to be built into the organization. I think this all of you know, but just for the sake of this thing. You know, from 2008, 2009, we had a pretty good run, and then there was this blip in those 2 years. There were those seven, eight accounts which kind of put us back. I think the important thing was, what did we learn out of that and what have we implemented and where are we now after doing that? I think that I think that was more important. What were the learnings? I mean, if you look at it, the learnings were both from a risk side and even from a business side. Broadly, I would say from a risk side, definitely there was customer concentration, few customers, too much of concentration, reliance on bulky fees, and somewhere down you will see that my investment banking fees, which was more of debt and all that stuff, was very high. That has now totally come down. Holding company financing. We had a few cases where we, where we did financing at the holding company level without any cash flows. Lastly, delayed identification of risk triggers. These were four learnings from a risk side. From a business side, I would say we realized number one was. That comes in from the customer concentration in the large strategic groups or the large industrial houses. Like I said, we, you know, we have said that we are 140, 150 of them. We were present in just around 10% of them. There was this huge thing which we were missing out for whatever reasons, and that's how we have got this new person, Neeraj, whose job is to kind of diversify, create this thing. I'll talk about that. Secondly, we were also missing out on a segment which is a very niche kind of a segment, INR 150 crore-INR 500 crore kind of a business. What I refer to as the emerging corporates or the SME business. That is something we started. Lastly, very importantly, I think It was not in the DNA of an RM to ask for liabilities from the corporate client. You know, it was just mil gaya toh mil gaya kind of stuff. It has now become a DNA along with the product groups, with transaction banking and all that, doing cash management, stuff. I would say that depending on this thing, pretty much 50%-55%-60% of my asset book is self-funded because it just required a change in the mindset. Those were three kind of learnings from a business side. What did we do? I said on the risk side, I talked about those four learnings. What have we done is pretty obvious. One is we tightened our policy norms, this thing, which is very important. I think what is important is the single borrower norm, which were earlier linked to the net worth of the bank. We have changed it to the net profit of the bank. That's Number one. Number two is RBI. You know, the RBI allows you a certain single borrower exposure basis your net worth or whatever it is. Except two groups, I mean, it's obvious which are those two groups, two very good groups. In no other groups are we anywhere near a single borrower exposure. The idea I'm trying to say is, we are very conservative out there now. Conservative capping of sensitive sectors and sensitive sectors are sectors which are more prone to, you know, asset volatility, asset price volatility, stuff like commodities, stuff like real estate, you know, that kind of stuff. We have again, put in very tight norms out there. Lastly, I think what is important is 2 more things. The early warning signal, which I talked about already, this is something new, those 200 risk, this thing, and that also we keep building on. When we started it a year back, it was 130 items. Today it's gone up to 200, this thing and we strengthened the CQLAR. It was not that the CQLAR was not there earlier. When I say strengthen, what I mean is the frequency of visits is more and more clients are being covered. It's an ongoing BAU process. It's a separate parallel thing which keeps happening. This was on the risk side. What did we do on the business side? Broadly, I mean, what am I trying to say here? Like I said, on the smaller business side, we didn't have scale. That time in 2020, we were 4% of this thing. The coverage model has been put up in such a place that we want to scale up our smaller businesses. Today we are at 8.7% of my corporate book, which I'll take it up to 16% in the next 2.5-3 years. We want to have a sharper focus on the large corporate groups. It's not something there we will grow it random because there the pricing and all that is very different. When I say sharper focus, it'll be RoRWA-driven, it'll be risk-density-driven and, you know, stuff like that. We will continue on a specialized coverage, which is because they have, they have really stood, they have served us well. They give us good RoRWAs, whether it is real estate, whether it is NBFCs, whether it is agri, whatever it is. That we will do through an active churn strategy. There will be a portfolio, kind of a portfolio, this thing around it, but with an active churn strategy and obviously supported by product units. What we have also done is for each coverage, you know, we have because for example, a small corporate requires a very different FX kind of a product compared to say a large guy. Now you have the product groups also are separate for each coverage unit. That kind of helps us this thing. That's what we did on the business side. What has happened? You know, we did this, we did on the risk side, we did on the business side, just a few this thing. This is about the rating, how our ratings have improved. I think essentially what we have said is that in the last 18 months, 80% of our disbursements have been to A and above. What it translates into that in March 20, 63% of my corporate book was A-rated and above. Today it's 73%-74%. I think the bottom slide is important. If you see the gray, this thing, the correlation between rating and ticket size somewhere got convoluted, if you see in March 20 because you see that thing going up out there. That has been corrected now. There's a clear correlation between rating and ticket size, and that's why if you see out there that for ticket sizes greater than 100 crores now, 80% of my portfolio is A-rated. All those things which we have done on the risk and the business side and you know, policies, programs in place, this is what it has kind of resulted in as far as ratings is concerned. On the granularity side, what has this done on the granularity side? Look at the fee composition. In financial year 2020 or the Q4 of financial year 2020, our investment banking fees was 30%. Q2 it is just 3%. I mean, 3% may have been small. I think we will be between 5%-7%. Right now the only investment banking fee is the syndication fee. What we syndicate out. Once we do advisory and all that kind of stuff, then this will go up. That will be pure play equity investment banking kind of stuff. See how the fee profile has changed. Working capital book, if you see the base, it has gone up by 40% in the last two and a half years, and similarly on the tenor, this thing. It shows our strategy has been successful and this is something we'll keep building on. Credit cost. I think all, you know, you have seen this. If you see anything you see in terms of our SMA book. SMA book 1 and 2 today is we are at one of the lowest levels. Our corporate restructuring book except one big case, which is a retail case which went into NPA, otherwise our corporate restructured book has fallen from some INR 2,700 crores to INR 470 crores. I expect another INR 120 crores to go away this quarter or next quarter. That restructured book is under control. SMA book is under control. The WACR of the book, which is the weighted average credit, whatever it is, it's A-rated. Our portfolio is A-rated because of this thing. Essentially what I'm trying to say is I don't think there are any more surprises. Credit costs I expect between 50-55 basis points now on going forward. Yeah. I have 2 more slides. I've talked about this. Essentially, what are we going to do? Let me just go to the next one that will show. My small businesses, I will grow by 35%, 35%-40% year-on-year. Where I said that we were at 4% in 2020, we are at 8.7% today. We will take this up to 16%. The client coverage group, which is the corporate banking and the GCIB, the largest thing, will grow between 15%-20%. The specialized verticals will grow between 10%-15%, like I've mentioned to you. We will continue growing because it gives us this thing. Due to which, this is how the mix will change. You'll see large corporates, which today is at around 57%, will come down to 46%. Mid corporates will go up a bit from 33%-38%. Small corporates will double in terms of this thing. That is how the mix is going to change in the... Yeah, that's pretty much it from my side. Are there any questions? Yeah. Just one on the granularity part, where you mentioned and shown that loan book over 1,000 crore is closer to 11-12% of the book. Just given the growth in this, just trying to understand, we have reduced the lumpiness on the corporate book side, but is there any threshold in terms of, I mean, number in terms of that we don't want to do any business beyond a certain single concentration? 1,000 crore would remain 10-12%. Is that number? Or is it linked to a net worth because the growth. No, no. This INR 1,000 crore is like I said, if you saw they were ratings all double A and above, and bulk of them are PSUs. That's what it is. It's not that we want to grow it or something like that. I mean, we have obviously certain things in mind, you know. When I'm doing a INR 1,000 crore lending somewhere, obviously I'm getting a lot of other stuff from them, whether it is cash or liabilities or trade or stuff like that. From a risk side, from a credit side, and that's what that chart which I showed you, there's a clear linkage now between the ticket size and the rating, which earlier was not there. To answer your specific question on INR 1,000 crore, they are all double A and above rated. This is so it's trending towards double A and triple A kind of asset book. Now the question is there any number in mind in terms of that to reduce lumpiness on the loan book? We don't want to do any single exposure, a certain number, or is it linked to a net worth? Like I said, for borrowers, except 2 groups where we are doing what RC. One is the RBI gives you a certain amount where you can take a certain client exposure and a group exposure. Today, except 2 groups, I can talk about them, the Tatas and the Reliance. There's no other group where I'm anywhere near what RBI allows me to do because I'm linking it to my net profits and obviously I'm seeing who are those groups, what are the individual businesses. I mean, it's a very individual kind of. I can't answer your question what will be the amount I'll take. What I'm saying is we are very, very conservative now compared to what it was 2, 3 years back. Even if you see our top 20 borrowers and stuff like that, the rating profile is extremely good. A lot of it has fallen off. You know, the exposures have come down. There's a dynamic portfolio management out there. Thank you. Hi. Hi, sir. Thank you for your time. Many in the analyst community are talking about the resurgence in the CapEx cycle for India. Are you not seeing any green shoots in terms of large CapEx projects? Because bulk of the growth that you're talking about is largely coming from small business groups, which may be working capital finance, is what I'm understanding? I'll answer it in 2 ways. Number 1, the fact that we want to grow small business is a deliberate strategy because it gives us my granularity, it gives you my margins. Plus, I think today we are at just at 8% and something I believe that we should be at 20-25%. It has nothing to do with the fact whether CapEx is there or not there. That's number 1. Number 2 is CapEx happening. I would say till 3, 4 months back, people were talking about CapEx happening, but only certain large groups talking about CapEx. You know, now more and more mid-market clients also are talking about CapEx. Whether it's due to the PLI schemes, infrastructure, auto, energy, I mean, you name it, the wide variety of industries. Most of them are also. See, there is a demand happening out there. Even logistics, for example, they had built the fact, they had taken an assumption that interest rates will rise. Interest rates rising have not really affected the CapEx plan because that assumption was there. I think people knew that. Yes, the interest, the Forex movement has dampened it a little bit, but the CapEx plans per se are intact. I'm not saying we're not going to do CapEx, and that's why we will do project financing. We will do CapEx, but obviously we do it very selectively. Focus obviously is on building the working capital book. I mean, in terms of is the business there, it is there. We will choose what makes sense for us. We will do that. Small businesses, definitely we want to grow. Okay. I guess there are no more questions. There's one out there. Sir, is there a reason to believe that the new book that we are building would obviously because of the high share of- Sorry, I couldn't hear you. If you can just- Sir, is there a reason to believe now that, you know, with the share of mid-corporate and the share of small corporate going up, the profitability of this piece would be substantially higher than what we used to? No, 100%. I mean, one is definitely mid-corporates and small corporates give you higher margins. You can demand more in terms of cross-sell. 100% it will profit. You know, we will balance it with large corporates because at the end, it's a portfolio. I got to see my risk density, I got to see my return on this thing. Yes, I expect my margins to go up out there. And at the same time, like I said, my credit costs now are back to BAU levels. No more skeletons or something like that in the cupboard. Definitely in one shot, yes, the corporate banking profitability will go up. If I heard it correctly, you said 55-60 basis point credit cost. Yeah. Credit cost, 55-60 basis points. That you said for? For the corporate banking book. On a, was that more on a sustainable basis or- Yeah, yeah, on a sustainable basis. Yeah. Thank you so much. Just to continue her question, can you given the corporates how many end-to-end value chains you have captured? Means their employee base, their vendors, their salaried accounts, how that transition is taking place? Because that was one of the bigger learning. Okay. Let me start with the employee accounts. We started this process a year back. Today, if you ask me in terms of number of corporates, I don't remember offhand, but I have around INR 1,900 crores-INR 2,000 crores of savings accounts from my corporate, this thing, whether it is the owners, promoters or whether it is their employees. That's one part of it, and this is something we'll grow. In fact, corporate and consumer, Sham has created a separate segment specifically to target the corporate segment from a salary account basis. That is something, you're right, today it's at around INR 2,000 crores, but definitely it'll go up. Other thing which we do very well is the ecosystem financing, which is on the supply chain side, where we finance dealers and vendors of large corporates. Today, I would say around 45% is in the auto side and 55% in the non-auto side, both from a dealer and vendor, this thing. Again, my book today is out there around INR four and a half thousand crores to INR 5 thousand crores. This is a book we will double easily INR 10 thousand crores-INR 11 thousand crores. The good thing is. One of the good things about COVID is all these portfolios were tested. Again, on the supply chain ecosystem finance side, our credit costs have hardly been 10-15 basis points, not more. That also because one or two dealers got shut during COVID and stuff like that. I think so this is a business we will grow. This is a business which allows us to break into large corporates. I talked about the fact that we were not, you know, present. We identified some 140, 150 odd names, but we were present in only 10 or 12 names. Today, 9 months down the line, we have established contact with 70 of those people, and these are big corporates, pan-India. We have established contact. 35 of them, we have created some kind of a business. It could be a liability business, it could be an ecosystem financing the dealers and stuff like that. You will see a lot of value happening out there. May I ask one more question? What kind of platforms also you are developing? Like, just to name for the peer, like ICICI is doing like a FastTrack or the ICE stack. What kind of different segmentations or the client coverage units you are building different apps or the platform so that it smoothens their entire journey experience, or it would be a common universal for all? No. Like I said, on the supply chain finance side, we have built an app, it's called Easy Credit or this thing, and where, I don't know if you missed that, 85. It is 85% of my vendors and dealers are on that platform. What it essentially does is very simplistically, when a manufacturer, when my main client, say a Tata is a word, dispatches a good to a dealer, right from the fact that he has dispatched to my financing the dealer and the dealer selling the good and me getting the money, it's all digital now. This happened around 5, 6 months back, and 85% of that is already there. I mean, and the number of transactions, every quarter we do transactions worth INR 32,000 crores. That gives you an idea of the churn which is happening there. Regarding other products, which is, FX and trade and cash management, I think the product groups will talk about it, but those are also, we have digital platforms, so therefore, if a client wants to open a letter of credit or wants to do a remittance or something like that, they digitally reach out to the bank. Whatever is out there, certain things which are not digitally allowed, those obviously are not done. That's what it is. We have for the SME stack, which I think Charu will talk about it, that is something which we are building and you'll see a lot of stuff happening out there. Okay, thank you. Hi, I'm Bijayananda Pattanayak. I have been working in the bank from 2015 when the bank took over ABN AMRO portfolio. I have been in this business for more than 25 years in different places, both in India and overseas, managing businesses. It's a little different. You have been so far hearing about domestic businesses where the clients are in India, the consumers are in India, starting from at the bottom of the pyramid to high net worth individual. We are probably a business where the market is the entire globe, and probably customers are mostly 50% of world's population, that's the women of the species, and also partly a little bit of men. The business and the scope is little different than what is there in the other businesses. We will see that. It's a luxury business. It's not a probably value for money business. When we sell luxury, we always talk about something which is more of lifestyle, more of a dream than probably for some value for something that you people pay for it. That's the business in which we are there. It's different. What's the macro development? You are hearing since the entire world is our client as we are seeing there is inflation, there is Chinese lockdown, Russia-Ukraine war, slowdown and the asset quality. If you look at the inflation, yes, the Western world where most of our diamonds are sold or the jewelry is sold, and that's going through a recession. Having said that, I told you already that the entire world is our market. It does... We know how to steer ourselves through different cycles. It has happened in the past. We have seen the Lehman fall, we have seen COVID time. In neither of the time, we had any stress in our portfolio. Yes, it slows down for a few months. Having said that, the second quarter was probably the best quarter in our entire career, and the first half year of this year has been outstanding also for us, which is. That means we manage the cycles quite well, and there is no problem. China lockdown, yes, it impacts a segment of the goods, but then there are other markets. I told the entire world is our market, so there are other markets who picks up those goods. U.S. is still doing well. We have seen new markets are emerging, especially India, which is moving from gold to diamond studded jewelry. Russia-Ukraine war, we are not so much in a commodity business because luxury is never commodity. Rather that's helping us because the lesser supply of rough diamonds is bringing in some sort of equilibrium in the market. We are using it to our advantage than having any disadvantage due to that. Asset quality, like our MD has already said, I mean, Sanjeev's proposal said we have no SMA, we have no restructured debt, we have no NPA. Not today, not even in the last seven years that we have. The portfolio is operating from in the scene, nor any time when there were challenges. These are. We are very confident that we will steer through all the situations without having any impact on our business. The asset quality will continue to run. We are monitoring. We are now having new clients. We have a GIFT City where we are reaching out to the clients around the globe. We are also looking at financing the ultimate users of these goods through the very brands like Cartier, Tiffany, Harry Winston and others who are buying the diamonds from India and selling there. Since we can now reach out to them through GIFT City, we are looking for those leases to expand business if there is a little bit slowdown in the diamond trading business. That's our response to the macro developments. This is our unit. I head the unit, we have a business manager, we have a client coverage and relationship team, similarly like Sanjeev Anand, and we have a credit structuring and portfolio management. That's all. There is a small team, and we run this business. What about us? We are the number one player in the world. We have strong client relationship. What's the very key to our business is our relationship. We know probably everything about our client and what business it does, what's its capabilities, how it can steer through a situation, whether it can change and adapt to changing circumstances. All these things are known to us. That helps us. We are growing 20% CAGR. We serve both domestic clients and international clients through GIFT City, though we don't have overseas branch, but that hasn't affected us. We are reaching out to the clients in Dubai, Hong Kong, Antwerp, Luxembourg, U.S. and multiple centers through GIFT City. Our clients in India who are exporting diamond and diamond studded jewelry to countries around the globe. We have sustained asset quality. I told you nowhere, nothing is there. 33% of our clients are MSME, and they have 20% of our loan outstanding. More or less that's our business. Sorry. It's our client mix. 15% are jewelry manufacturers, exporters, and 85% diamond. Onshore 63% and GIFT City 22%. We are distributors and traders of rough diamonds. There are client who are manufacturing diamonds and exporting the manufactured diamond and give it to jewelry manufacturing and those jewelry are exported. That's our business. We have also through GIFT City to clients. You have heard of lab-grown diamonds. That also is a new line which has been added to this business. We have no claim facilities. Our products are mostly trade. We only finance an underlying cash flow, those underlying cash flow are having either a 90 or 120 days tenure. Within that, you know, this, these cash flows are realized and that particular transaction is paid off. It's not exactly a loan, it's a cash flow financing book, and at any time we have more than 1,000, few thousand transactions which are outstanding. You know, as per Indian regulation, any specific transaction, if it's not paid within its tenure, then it goes to SMA one, two or NPA. In that context, we don't have any SMA one/two. That means all the cash flows we choose and have in our portfolio, all are probably pristine, like our MD has been assuring you all the time. You see that as it is. Sorry. What we do differently, many of you want to know. Many sometimes you also ask me during our investor meets, et cetera. Our basic thing is client selection. You know, we as a business generally have a prospect list and we onboard a client who is in our prospect list. Client selection is essential key for our business. We have risk management. That's like Sanjiv said, it's also the second most important part after the businesses look at a proposal. We track the entire mines to market from where the rough diamonds are produced, till where it goes to a consumer. The entire journey of the diamond and its cash flow is tracked by us, that's why probably we have remained as we are so far. We act as gatekeepers. We never allow a transaction to be written in our book if the underlying cash flow is doubtful. It's not only the portfolio, it is the underlying transaction that's there in our book. We're reading tea leaves. People speak about even India, there is a talk about all the time early warning signal. We know early warning signal is very late in our business because when you get a signal that means something was existing in the client which we did not see. We do reading tea leaves. That is, before anything crystallizes, we are already aware that something may evolve differently leading to some sort of a stress in a client's portfolio. We are, we have taken corrective action so that it never goes to that extent. Compliance. We believe that compliance is very key. It's our right to exist depend on we being compliant with all the regulatory guidelines, all the banks organizational and regulatory, you know, guidelines, not only in our country, but all the countries where we operate, where our clients are located, since we finance clients from Gift City in different geographies around the globe. Mind on the street. We are always keeping track on the what's the development happening in the market, what's happening to our clients, how are they doing. Every little bit of information is captured like a separation in a family or anything because mostly we finance to family-run enterprises. Early strategizing, like the inflation or the Ukraine war, That time already, we are strategizing how we will deal with that. That's why, we charge a premium for our services. On an average, we charge 2% more than all the banks they operate from India. People pay that premium because we have a differential value proposition and a business model. How do we do this? Because how do we do the transaction flow and monitoring? We have 65 principles. Our trade finance gets a transaction. The RM checks it, then we check it before it is written in our books. We have a global tracking of backward and forward linkages of the clients. We also do close proximity and relationship. That's what leads to our personal and commercial global connects with all the stakeholders. Not only with our client, but our client's suppliers, our client's buyers, our client's buyer's buyers sometime. Because sometimes the Indians sell it to wholesalers in overseas market. We also track who the wholesaler is ultimately selling. We observe the professional and personal development at the borrowers, what's happening with them, what's happening to their families. That's also tracked. That's how probably you have seen diamond industry. Quite often you must be hearing that there are a lot of bad guys, this, that, so people always get worried about diamond business. At one point, diamond industry told the government, "It's not that we are all bad, it's because the banks don't do a good job." Government of India had asked IBA for us to share the best practices with them. I had, on the invitation of IBA, had guided the 52 CROs operating from different banks in India about the best practices to be followed to monitor this business in this country. That's our reputation in this market, and we have longstanding drawing experience. You know, the business came from ABN AMRO and most of ABN AMRO has been in this business for a long time, so we have drawing experience probably from 1960. That's also a big advantage for us. We engage with all the global institutions who are our clients' clients, et cetera, so that helps us to know everything that's happening around the world anytime. The current risk factors are inflation, recession, unemployment, geopolitical tensions. You all hear about this. You must be having some questions since we are the number one player, and how are we dealing with this. Trend change, the millennials are preferring other things. There was pandemic. Geological changes, there is earthquake, cyclone, this, that. This carbon vapor deposited lab-grown diamond, conflict diamond, changes in government policies. All these situations that is there, you are hearing, if sometimes the question is there in your mind, I want to tell you, all these things are already factored in by us. Nothing is there which is not there in our thinking. You know, high-end luxury is in-inflation neutral. We see that inflation is there. If somebody is buying a $200 ear stud or a $100 ear stud, probably they're affected if there is a job loss. Quite a large part of our business is inflation-proof because somebody who is giving a $250,000 gift or a jewelry piece, he's not impacted so much by that it's some inflation in the food or in the other items. We have a very diversified portfolio. It is into rough trading, it's into diamond manufacturing, jewelry export, so different aspects of the business we finance. International finance, that is Kimberley Process, where we are also involved. You know global incidents like pandemic you saw last year. During the pandemic we also grew 20% and we had no stress at all in our portfolio. We offered RBI a given that is some sort of an interest payment deferral, et cetera, but our clients never took it because they have their adequate cash flows to meet their demands. We are expanding the wallet. Our MD has mandated us to create a diamond bank, what he spoke and Suhom spoke about the community banking. We are creating a community banking to capture the entire wallet of our client. Every time at the time of a annual renewal, we do a wallet sizing exercise. We look at a client's total wallet, not only of his, little bit like microfinance of his entire family or the extended family. What are the different businesses they invest? We try to capture all those to our counters because we are a full service bank. The how our portfolio, I will not say it is completely insulated. That would be too much for me to probably commit. I can tell you it's adequately mitigated and ring-fenced, and hardly there is any possibility or a fear of we coming across any challenges in this portfolio. Because we don't have any loan which is clean. All are backed by current assets. We also take secondary out collateral by way of mortgages. We have all the personal guarantees of promoters, directors, and the other companies in the group. It's in many ways, it has been collateralized. That's the portfolio like. What are we trying to do? We are trying, yes, first our growth in existing business. We will expand that. We are adding lab-grown diamonds. We only take, like I told you, clients who are with acceptable risk profile. Generally, people like to bank with us because it gives them some respectability in the market that we have accepted them as a client. They provide us the information long before we onboard them. Accordingly, we put them into our prospect list and take them on board. We are looking for blue ocean always. Like I told that we are looking to cross-sell banks all product services, like their different businesses. We are looking at financing their client's client, like the big brands who are using the diamonds from India. Because you know all the diamonds are manufactured here. Ultimately, they are used anywhere by the brands, et cetera. You know brands, luxury is not affected by much. You all read probably yesterday that Tom Ford said his company will be $3 billion in 2025. Yesterday, he sold it for $2.8 billion already in 2022. The luxury business is always... This has helped us since we are a bank without much foreign print by way of branches, but this is helping. It is good news for us when the Prime Minister said we are growing to grow Gift City three times. That will help us to reach more. Liabilities, from last year, we are looking to capture the entire liability wallet of our clients. Many of you know that most of our clients are extra high net worth individuals. We will like to sell them their family office as our private banking business expands and multiple products we can provide to them. We always look at sustainable growth. We don't do anything which is not sustainable. It has to be sustainable. It has to be revenue or the profit accretive. We have very low efficiency, maybe 11%, 12%. That's our efficiency ratio. We like to maintain that. We like to maintain very high efficiency in this business. That's what our way forward. That's what probably it from me. If you have any question, you can ask me anything. Yes, sir. How do you verify inventory value for your lender? Yeah. See, inventory, India doesn't have any diamond mines, so the entire rough diamond is really imported. First, since it's an imported out import, so you know the invoices where they are buying. Yes, there is a specter of fear of people may be under-invoicing or over-invoicing. Like I said, we have direct contact with all the three mining giants, De Beers, Alrosa, and the BHP Group, or all these companies, we exactly know which size of goods are at what price they are selling. If somebody is changing that, he will not probably, he will not like to be our customer. He knows we will be knowing this. So because we exactly know what parcel is at what price the mining company has sold. You know, these are all very large mining companies. There are two major De Beers and Alrosa. They also share every month their sales to India or, and to the world. We exactly know which goods are at what price. It's not very difficult, but We get details about that. Good evening, everyone. I'll try and keep it short. I think, to start off, as we have seen multiple presentations since morning, I strongly believe, as we look into the future, there are only two ways, businesses will survive and businesses across industries, not just banking and financial services. Either the businesses will be enabled by technology or they will just run on technology and they will be technology-led. I think, where we are today, we have an opportunity to do both. While bulk of what we have been doing till now in the last three, four years has been more focused towards how do we get technology to enable existing businesses run better, increasingly in the last year and a half, we have seen success in creating businesses, which are not burn models, but earn models, but can run on the back of technology. An alternate way of doing business, where the operating costs are very different, and it runs very differently. With that, I'll just start off. These are some of the key strategic pillars that at the digital banking unit at IndusInd, we look at. The first principle for us is how do we bring an element of human centricity to whatever we build? I think this is very important, especially when we talk about businesses that will have to run just on the back of technology without any human coming into play. Without any RM assisting a customer about a product, but the customer just discovering it, understanding it, because it is just simple, so simple to get it, that customer takes the product himself directly online. There's a subtle difference here. It's basically about I can add a funds transfer feature on my app, that could be a very product way of doing product. It can be that how do people manage their money? Where do they pay? How do I make payments smart? What is the problem that I'm trying to solve? Can I make it convenient for users to pay? Can I ensure they never miss a payment which is due for them? Be it an EMI, be it a bill, be it any recurring payment that a customer makes. That makes a whole lot of difference then on the way you end up designing the payments product, for example, and likewise on every single product. The focus is increasingly on understanding the consumer problem and then starting from there, instead of creating a product and creating a graffiti of products, you know, on an app and then making it cumbersome for a customer to discover, those on the application. The second thing, which we strongly believe in is that, embedded finance is increasingly a reality. I think, in the first half of the day, there was a discussion around FinTech partnerships and how we are looking at it. There is definitely an ecosystem emerging, and there are many players, where we can collaborate and we can create mutually win-win partnerships. Of course, there is a certain level of maturity which is required, specifically when we talk about customer privacy, customer consent and data privacy. Of late, you know, increasingly the regulator is making it clear in terms of guidelines, be it the co-branded guidelines or the digital lending guidelines. The space is becoming more and more clear to operate in now. The embedded finance models, open banking model, where the products of the bank are embedded in a customer life cycle seamlessly, will be more and more a reality, both for retail individual as well as business owner segments. The third important thing for us, and actually one of the most important things, is the technology has to work. It has to work every second of the day, every minute of the day. For that, we give a lot of thought to the way we architect the solution. The core systems, when they were designed, most of the core systems were not designed with the mindset that they got to be up and running for a customer, let's say, at 2 o'clock in the midnight. Or there could be a surge of transactions as high as 10,000 TPS and sometimes happening at midnight hours. How do we bridge that gap? If time permits, I will talk more about it. Fundamentally, the modularity, having a microservices-based design, having an ability to scale on demand and downscale when the demand is not there. I think, some of these elements, we pay a lot of attention to these elements when we design technology now. Of course, secure and highly available. These are some of the fundamental principles, that are part of our entire tech stack design, whatever we build. The fourth thing, for us is that data is the new currency. Data is the oil, as they say. We cannot build differentiated customer experience. When I talk about building a product which is human-centric, it's starting from a customer need gap. More often than not, to build a product like that, you need a very robust data and analytics foundation at the back. That's a journey in itself that we are undertaking. It starts with bringing your entire data on the data warehouse, and then of course, we extend on it. We start building models on the data warehouse. We create data pipelines across various fragmented systems so that we can bring complete customer DNA in one place. Increasingly now, with all that data, once you have a lot of data about a customer, then you obviously also need to, as a logical step, evolve to compute on cloud. That's where we are on data in a nutshell right now. We are in a data 2.0 journey right now, where we are now looking at compute on cloud and also building a lot of our models on cloud. The last thing, one of the most important things is that, if we have to differentiate on the back of technology, if we have to differentiate on the back of customer experience, there are critical decisions in terms of what we insource and what we outsource. Something which is so critical as a strategic differentiator going forward, it cannot really be built with an outsourced kind of a model. A lot of trust is now on in-housing critical skills that are required to create this new operating model. We have a 150-member plus digital center of excellence based out of Gurgaon now, which we are constantly scaling up. Of course, we also have a bunch of collaborators, technology partners, an equal number if not more, engaged from a lot of our long-term technology partners, continuously working with us across products and platforms. All of this for us is a revenue motive, is a profit motive, efficiency motive. It is not there to just, you know, build and then have the breakevens happening far out into the future. For everything that we build, there are 3 broad areas that we track. One is we of course are doing this to get better customer engagement, better customer retention, and we measure that through our daily, weekly active users on various applications and platforms. We are doing this to bring efficiencies to the existing business models. I'll briefly talk about that using Easy Credit as a case study on how we unlock productivity, how we reduce cost of operations, you know, as soon as the stack is implemented, it broke even within first 3 months because that was the kind of cost that got freed up once we went live with the stack. The last thing is, like I said, how do we use it to build direct business models, which are direct digital and tech-led and don't need a human intervention. An alternate way of doing business where the infrastructure costs are essentially replaced with digital marketing costs to an extent, product costs, and technology costs. You don't have a lot of infrastructure costs or manpower costs that you incur in building those models. This is just a summary of how we stack up today. More than 1 lakh clients we onboard every month using video KYC. We are live, not just for savings account, for personal loans, for credit cards. For current account, we are just in our final stages of CUG, as they say, closed user group testing. Business is mostly originated digitally in deposits when it comes to savings accounts. What is also interesting now is that 30% of the business in savings by volumes now comes digitally unassisted. The customer discovers us through the campaigns we do, through the organic marketing efforts that we do, and he comes to the platform and he downloads and gets started with the opening of a savings account himself. 92% of our credit card business originates digitally. There is no paper originated at all whatsoever. It's a completely end-to-end digital journey. Nearly 5% of the credit card business has already moved digital unassisted. This is new to bank. Of course, a lot of banks have models where to an existing customer, because you know the banking transaction data, you know the bureau profile of the client, you can underwrite an existing client and offer a pre-approved card. What I'm referring to here is our ability to give a new-to-bank client who is building his first relationship with the bank, and he wants to start it with a credit card, having the ability to do that in a digitally unassisted manner in an end-to-end digital flow, with real-time underwriting, using machine learning algorithms. It's 5% and hopefully this month we'll close at close to 8%-10% already because these new business models are seeing that kind of growth, month-on-month. Personal loans, likewise, you know 57% of our business is digital. Wealth is largely digital for us. Now with the extension of Easy Credit stack for small business banking, which we define as all exposures for small business up to INR 2 crore ticket size, in Indian rupee terms. 46% of our MSME business is now digital. We plan to make it 90%+ before the end of this financial year. This is just some metrics on how across our platforms and applications customers engage with us. Our active user base on the app has been growing very healthy, 30% year-on-year growth. We have one of the industry-leading growths on mobile transactions. We double our volumes typically year-on-year every year. More than 6 million users using this mobile, nearly half of them are active users of the app. We have a registered base of more than 6 million. Likewise, the merchant app, which we launched quarter three of last year, somewhere around this time, we brought this proposition to the market, already has a user base of more than 1.5 lakh. This is a proposition which is open for even new-to-bank customers. It's not necessary that, you know, you will open an account, become a merchant, and then the app will unlock for you. We welcome new-to-bank clients also to basically start their relationship with the bank as a retailer, as a merchant. It has complete banking stack, payment stack, and lending stack fully integrated. We offer features like you can order your POS, you can select your rental plan, you can even sign your merchant service agreement in a digital manner using eSign. You can order a soundbox. That's what we last went live with recently. 90% of the people who discovered us, more than half of the people are new to bank entirely. 90% of them actually came completely organically. That's what we see on most of our applications. Without spending marketing dollars, the brand IndusInd has a very decent organic appeal, and we do see a lot of people organically discovering the products and coming, and that's a very healthy thing to have. Ideally, across our digital business models, we would like to have that kind of a pull and pretty substantial and healthy mix of people discovering us organically, instead of us having to spend marketing dollars to get them to discover us. This is just a, you know, snapshot of what impact technology creates on an existing business model. We can give the same example across various other products also, but I picked credit cards as one of the early adopters of this. We went live with Easy Credit Stack. It's a completely microservices-based technology, which means essentially that it is very, very resilient because the entire tech stack is broken into multiple modules, and even if one of the modules goes off, it doesn't mean that the technology stops working. There are many modules which continue working. Of course it is very efficient infrastructurally, if you have a microservices-based design, because you don't budget infrastructure for the whole application. You can budget infrastructure for each of the microservices separately. It's scalable, highly scalable on demand. You can scale up the specific modules, you can scale down the specific modules. API native, everything which is there is also part of our API gateway, which is Cloud Pak, which is hosted on cloud. That becomes our gateway to the world. Anybody wanting to interact with the bank for lending products up to exposures of 2 crores, basically plugs into the bank's secure API gateway and has the entire stack in a secure manner exposed over there. It's a single stack which powers our customer-direct journeys. Our relationship managers and branches use it. Our offline channel partners use it. Our digital aggregators and partners like Paisa bazaar, BankB azaar, they use it. It's a single development and lends itself seamlessly across all the use cases. 92% of the business in credit cards has become digital on the back of this. We do digital KYC, digital AML checks. We have a machine learning-based algorithm basis which we score the clients, and we give them a decision real time. 30% of the clients can actually take a card end-to-end digitally, completely being new to bank, where we don't know anything about the client, in an end-to-end 4-to-5-minute process. We are wanting to increase this 30% to 50%-60%, that's where we are right now. As soon as we launched the stack, there was a 40% jump in sales productivity because there is just so much of additional effort, which completely was removed. There is no form filling. There is no documentation. It's just less than one minute for a sales staff to originate a credit card application. The processing costs, because we don't print any forms, we don't do any dispatches, we don't have scanning, we don't have data entry, is actually lower by 40% per application. That's a huge savings and a huge impact of, you know, launching it on a credit card business model. This is where I was saying that the stack was actually making money because of the cost efficiencies that it unlocked as soon as 3-4 months after the launch itself. The same stack, we currently offer four products on our Easy Credit Stack: credit cards, personal loans, small-ticket business loans, and also secured overdraft products. We are extending it for big-ticket business loans as well as for cash credit limits and holistic working capital solutions all the way up to INR 5 crore of ticket size. This is just a snippet of how customer-direct model is working for us. We of course have not done big budget marketing spends on these models. The focus is on creating earn models and not burn models, like I was saying. We currently, like I was saying, 30% of our savings accounts comes direct digital, which is almost most of these models are coming from a small base, so the growth rates are very high. Credit cards, 8%-10% is now direct digital for us. Customer comes to the platform, discovers us and, you know, takes the product. Nearly 35%-40% of the credit card business is actually now either open banking led, where the partners are using their APIs, or it is basically direct customer journey led. Across these models, the focus is on keeping the cost to income ratios low. The savings account business that we originate digitally works at a direct cost. On a direct cost basis, it works at an efficiency of 60%. It's not a bleed to the P&L. Credit cards, the cost of acquisition is at par with what we acquire it in an offline world also. It's not that, you know, we do spend marketing dollars, but it's done very intelligently. We optimize our campaigns on a very periodic basis to keep only those acquisition channels live which actually drive conversions for us. Personal loans, again, our cost of acquisition is at par with the way you would acquire it offline. On top of that, the yields are actually way higher because are at least 150 basis points higher because the customer is willing to pay that premium for getting it instantly. We've extended the same model for acquiring current accounts and small-ticket business loans and the business right now is small, but growing very fast. Likewise, on partnerships, you know, we do have partnerships with various players in the ecosystem. There are 2, 3 types of partnerships where we engage with FinTechs. 3 types if I have to bucket it broadly. One is where the FinTech provides a specific service to us. Sometimes it's a technology service as well. You know, there are FinTechs which have built very good tech stacks, and we can power a lot of innovative features using that. Those are the type of fintechs that we engage with. Some in the domain of decision science and analytics also, because they have advanced modeling techniques using deep learning, etc., which gives us refinement on top of our models. Then there are fintechs where we just originate a customer with the help of a fintech, but the client life cycle is managed by the bank. There are co-lending frameworks, you know, we have, we do have some partners under those frameworks. What we don't have today are, is fintechs, where you originate the customer with the fintech, and then the fintech also manages the entire customer life cycle. Because that's where the guidelines, were not very clear. The co-branded guidelines have made it clear that customer consent and data privacy is going to be the defining factor in this new operating model. We have set up a lot of guardrails. We want to work on this model in a very compliant manner. With now, with those guardrails and with that clarity coming out, we will now be engaging with some of these fintechs and creating those alternate business models. But like I was saying, partnerships business already contributes about 30% of our credit cards business volumes monthly. And we do have partnerships with Airtel Payments Bank for fixed deposits under a business correspondent model and quite a few others, but we will scale it up further. Just a quick thing on how we look at what goes behind the scenes, what are some of the key building blocks for us in the digital strategy. One is, like I was talking about, the technology architecture being robust, scalable, and how do you blend a legacy core with a new age delivery is something that we have given a lot of thought to. This is how we basically look at our tech stack. There is, of course, a data and analytics layer, and we do have the core tech stacks, which are legacy cores. Then we have a bunch of middlewares which sit on top of the legacy core. These are the new developments that we have invested in. A strong API orchestration framework and an entire business process management layer, and then our applications, and then the marketing tech. I don't want to spend too much time into each of these aspects today, but basically, to call out some of the key differentiating factors that we have built is: One is that our tech stacks are deeply integrated with our martech stacks. Martech stacks are things like AppsFlyer, Google Analytics, things like CleverTap. The stacks through which we get customers to discover us, and the tech stacks, through which we engage with our customers to grow their relationship. This is very important to build a profitable digital business model, in my view, because it allows you to constantly test and learn and optimize your campaigns to focus on the campaigns which drive business value. That's a very distinguishing factor, where we have taken our entire tech stacks and integrated them deeply with our martech stacks. The second thing is that all our applications, whatever we are building, be it Easy Credit, Merchant App, or the new mobile app that we are, you know, going to build, is all cloud-native, microservices-based, API-native, like I, you know, spoke about already. What we have brought in new is how do you deal with the inefficiencies of a traditional core? There is a bunch of middlewares that we have very proactively invested in, like, I think, somebody mentioned about the enterprise payment hub already. Like that, you know, essentially to get the core systems to manage the level of throughput that we want to manage them, we got to create a middle layer, which is cloud native, which is near real-time replica of the core, like a caching layer. Instead of speaking to the core, we speak to that middle layer. That's where a lot of investment has gone. We have our entire identity management hollowed out of the core. We have our masters hollowed out of the core. Even inquiries and transactions, you know, using a digital accelerator product, we have hollowed them out of the core so that we get the desired resiliency and scalability on the client-facing channels. These are some of the things that we are doing on the tech stack. The second thing is how we use data and analytics. It goes without saying, and by default, all technology that we built, everything has to go to an enterprise data warehouse where a customer DNA continues to develop as the customer continues to engage with us on our applications and platforms. Be it the feedback from the likes of Google Analytics or MoEngage or CleverTap or the client application, what the customer is doing on the app. Does he pay his bills? Does he have recurring payments? Whatever type of transaction behavior we capture, the core banking systems, even call center data and payment systems, all of that comes into a centralized enterprise data warehouse where we start building a customer DNA. That essentially becomes the central brain through which we then drive all of our models, all of our campaigns. Broadly, we do three broad areas of analytics. One is marketing analytics. Like I said, how do we optimize our customer acquisition costs when we are operating in a digital kind of a business model? That's where a lot of focus goes. Customer engagement, driving personalized campaigns. Now, increasingly, it is possible to do hyper-personalized campaigns to customers. Third area where we use analytics heavily is in risk management, where we have for lending up to INR 5 crores, it's largely algorithmic for us. We have acquisition scoring models, and we have behavior scoring models, and then we have collection scoring models, through which we manage the entire life cycle of customers on the lending side. This is just an illustrative impact of various campaigns that we do using these models. The mobile app, the transaction intensity has seen an uptick of nearly 50% because of some of these campaigns that we drive. We do pre-approve personal loans, and through ongoing refinements on the models, we are able to lift the approval rates by as high as 50% without adding anything on the risk cost. That's what, you know, we use the models for. Of course, we also look at early delinquency metrics, and we refine our acquisition scoring models as soon as we detect that there is a heat map on the early delinquency in some cohorts. We refine the models and create a new model to arrest that. The last piece that I will quickly speak about is the center of excellence that we have built. Across technology partners and the team that we have, it's a 300 plus member. Some of our technology partners are, like, working with us for more than a couple of years, so they are almost like extended team members for us. These are the key elements in the center of excellence that we have put in place. It all starts with the product vision for us. What is the customer need gap that we are trying to solve? How will we use design thinking to solve that problem? That's where the product owners are responsible for creating that. Then, you know, we have a UI research team and a design team, which helps in bringing the design to life. It's very important. There's a lot of work that happens in this, the information architecture of the applications. If a mobile app has 300 features, how do we make it discoverable for a customer? How do we minimize the clicks? So the UI research and design team does a lot of that. Then we have the engineering team. They are, you know, we have an entire CI/CD pipeline set up now. We do follow the DevSecOps pipeline. We work in an agile manner. That's what the engineering team takes care of. Once the product is ready, we have marketing teams and growth teams that spring into action to enhance discoverability of the product. It's not always about spending a lot of marketing money. If the product is good, it has to have a certain organic pull. The best of the products, of course, at least do half of their business organically without having to spend marketing dollars on it. That's where the growth and the marketing teams market the products and keep the cost of acquisitions low. Content plays a very important role when we talk about building an organic appeal for the product. We have a content team that works on that. Inside sales, we have almost a 100-member team here or, which basically, picks up the drop-offs that we have. If the customer drops off on a platform, they're able to pick it up real-time, assist the customer, and help him conduct the journey end-to-end. Data science and analytics that I already spoke of. This is the digital center of excellence that we have and. As we look into the future, I think one shift that, you know, we see happening is that people are comfortable buying financial products and services online. We will have to build models that are tech-led. We'll have to make the shift from using technology as an enablement to using technology as a way of doing business and creating a business model that rests on technology. For that, experience will play an important role. Like I said earlier, the embedded finance and the partnership and collaborations with the ecosystem is an opportunity that we see is going to accelerate. There is also a bunch of new age tech providers that we are now working with, which enable disruptive innovation because of the composability or the API nativeness of the stacks. A lot of core banking stacks have very straightjacketed ways in which you can engage with them. It's not that you can open up the entire stack and get APIs for every microservice that is there in a core banking or a core payment system. There are, in some places, we have used now new age composable stacks, which will help us create some disruptive products in the market. The other important theme, which is going to play out now clearly is customer consent and data privacy. As we get integrated into the ecosystem, as we build these new models, we'll have to be very sure on how we handle customer consent and data privacy. That's becoming an important aspect of all of our design frameworks across the board. This is what we see happening right now. Nearly 30%-40% of the business, I would say, is like tech-led in retail. It should pivot to 60%-70%. We want to acquire close to 10 million clients over the next three years. Create a business, assets and liabilities put together of more than INR 25,000 crores over the next three years. On data and analytics, we are already... You can call it Data 2.0, but that will continue to get accelerated. We will move towards the Data 3.0 strategy, and the in-house center of excellence will continue to scale up for us. We'll continue to beef up some of the skills. In some of these areas we have good strength. In some areas like UI/UX, we do have a lot of partners and collaborators that we work with. Increasingly, you know, we would like to have more and more of the skill in-house. Hello. Yeah, you mentioned about the credit card. I just want to know this, a lot of fintech like CRED and all that- Mm-hmm. they are sitting in our app. Yeah. They are aiding the payment. Mm-hmm. I don't know whether you are the right person to answer this. A lot of business will now go to them over the period of time they start lending credit card business to credit card lender and they take away incrementally business from the bank. I think, as far as RBI, my reading of the regulation and the environment on this is that you can of course acquire a customer, but when it comes to ongoing lifecycle management of a client, the customer has to always have access to the bank. You know, the customer, even if somebody is, let's say, issuing a card in collaboration with CRED, at the end of the day, the customer does belong to that bank and the customer will have to have, you know, direct access to the bank. Also the guardrails are becoming clear. You know, if you look at the co-branded circular which came out, that the banks cannot share a lot of transaction data with these, with the third party service providers in whichever shape and form, in co-branded or fintechs or whatever. So there is going to be a limitation in my view. There is going to be a certain limitation to the extent to which a player like CRED can extend experience or card lifecycle management to a customer. As an acquisition partner for existing banks, that's the model, you know, that can be explored. How do they get data about the customer spend every year? Is it? How do they- RBI mandate or something like that? How do they get every month billing? How do they get it? Okay. When you download CRED, you do sign up. You consent to share, to allow them to read all your SMSs. You allow them to scrape everything. That's where the customer consent and data privacy framework is also coming into play because some of these consents are in a way that you probably don't even know that you consented for it. No, no. How does it know that it billed every month like say- You get an SMS alert for that. It scrapes it. It knows that you have a bill of a certain bank ending with a certain number, you know, which it. Bank doesn't provide any information to them directly. No. I mean, is it not more of a threat to the credit card business of a bank where people like that can come in and they offer a cheaper rate, a credit? No. They can take like, say, whatever. Suppose I have 1 lakh INR at the end of the day, I transfer that amount to the CRED or something. I take a loan or something, and credit card business, credit card loan gets affected by the bank. I mean, whatever the lending. The revolver rates are only 20 factors. Don't confuse a term loan and a revolving credit. Mm-hmm. It's a very different bill. Sure. Thank you. Excuse me. Ma'am here. Oh, okay. I had a query, like we did discuss about we shown some fabulous numbers in terms of the benefits that we're getting out of the implementation of the technologies, right? By some 40% improvement in efficiency, 7x increase in loan numbers. When we see this in conjunction with our cost to income ratios, our cost to income ratios has remained where they are. Just wanted to understand when do we see the benefit of this flowing into our PNL? We have a target of, say of some... Would be some target that we have that it should start reflecting in our cost to income. If you can please- The way to answer that question, let me answer this. Sure. Sure, sir. The operating leverage comes over a period of time. Our investments are going in branch expansion, digital expansion. What you will see today may be Shades of INDIE, yeah. Technology, infrastructure, capability building. The leverage on all of this comes over a period of time. What you are seeing is your cost to income ratio has gone up to 44.6 from 43. It will start coming down maybe about four quarter in the next 2-3 quarters, you'll start seeing a declining cost to income ratio and we'll come back to the 41-43. We will continue to be at 41%-43% range for a very long time, as long as we are investing in branches, we are investing in new technology and we're investing in people. It will continue to be. When our asset base touches about 3 years down the road at INR 600,000 or something, the leverage starts playing out in a very different way. At that point, a good universal bank will be at 37%-40%, which is what HDFC is. Just to understand, maybe three years down the line is where we expect that our cost to income would reach. Will be between 38%-40%. Yeah. Got it. Sure, sure. Thanks. That is where the operating leverage will be. Sure. Thanks. Thanks a lot. Done? Okay. Okay. Thank you.