Please note that this conference is being recorded. I now hand the conference over to Mr. Sumant Kathpalia, MD and CEO IndusInd Bank Ltd. Thank you and over to you sir. Good evening and thank you for joining this call. Let me start with some macro commentary and then get into bank specific details. Domestic economic activity sustained momentum during quarter one after delivering a robust GDP growth of 8.2% in financial year 2024. Manufacturing activity continued to gain traction on the back of strengthening domestic demand while services sector maintain its buoyancy. In banking system liquidity conditions remain in deficit but improved marginally compared to the last quarter. Looking ahead, recent budget has maintained continuity while laying down the future and policy agenda for new development towards the goal of becoming a developed economy. Adequate budget allocations have been made to support the rural economy including allocations to the flagship MGNREGA scheme compared to last year. These along with the steps taken recent budget augur well for the rural recovery and rural spending would be outpacing urban settings. Coming to the quarter-specific developments, the bank navigated a challenging quarter where a typically seasonal weak first quarter was coupled with issues from heat waves and election-related disruptions. The key highlights for the quarter were healthy deposit growth. Our deposit growth accelerated to 15% year-on-year and 4% quarter-on-quarter. We maintained our traction on retail deposit mobilization with retail as per LCR deposit going at 16% year-on-year ahead of our loan growth. Increase in cost of deposit at 5 basis points quarter-on-quarter also remain under control despite ongoing liquidity conditions. Loan Growth Trajectory. Our loan growth was at 15% year-over-year and was driven by 18% year-on-year growth in the retail loans and 13% year-on-year growth in corporate loans. We were cautious on disbursements in vehicle and microfinance during the election phase and run rates have already picked up this month. Corporate growth continues to be driven by mid and small corporates. Overall the headline loan growth should see pickup going forward with seasonality benefits. New Initiatives. Our digital banking offering INDIE continues to see strong traction and we now have 1.3 million customers on the INDIE app. Our liability initiatives of affluent and NRI banking maintain robust traction growing at 23% and 33% year-on-year respectively. Our home loan growth grew by 31% quarter-on-quarter and now stands at INR 2,348 crores. Asset quality focus on collections resulted in gross slippages improving to 0.45% versus 0.47% year-on-year. Despite the external challenges this quarter, our gross NPA and net NPA were at 2.02% and 0.60% respectively with healthy PCR of 71%. Our restructured book continues to run down to 0.434% compared to 0.40% quarter-on-quarter. We maintained our contingent provision of INR 1,000 crore. Robust core profitability. Our net interest margin was stable at 4.25%. We have not used any contingent provision this quarter. Adjusted for this, the core profitability remains resilient for a seasonally weak quarter. Our core PAT adjusted for contingent provision and reversal grew by 10% year-on-year and 2% quarter-on-quarter. Our capital adequacy remains healthy with CET1 of 16.15% and overall CAR of 17.55%. Now coming to individual businesses. Vehicle finance. Our vehicle finance business grew by 15% year-on-year and 2% quarter-on-quarter. Vehicle disbursements for the quarter were at INR 11,260 crore. The quarterly disbursements were lower due to subdued demand during the election phase, extreme heat in most regions, and quarter one being a generally weak quarter. Within vehicle segments, we saw sequential growth in commercial vehicles, cars, and construction equipment. Two-wheeler and tractor segments were weaker and degrew during the quarter. The gross slippages in vehicle finance improved to 0.75% versus 0.77% year-on-year, showing stable asset quality in spite of external disturbances last quarter. The restructured book in vehicle finance also reduced to INR 417 crore from INR 547 crore quarter-on-quarter, and majority of the reduction was due to upgrades and recoveries. First quarter of the financial year has generally been a seasonally weak quarter and the second half of a year contributes larger share of disbursements as well as recoveries. With election-related uncertainties also behind us, we expect to trend to continue this year too. The timely onset of monsoon and government capex in recent budget has also augurs well for the outlook of vehicle business overall. We've seen activity levels improving from July. We expect vehicle demand to pick up pace as the government spends resume post the budget and monsoon period gets over. We should thus see acceleration in the vehicle loan growth as the year progresses. Bharat Financial Inclusion Limited's outstanding loan book originated via Bharat Financial now stands at INR 42,350 crore growing at 17% year-on-year with microfinance and merchant loan book growing at 16% and 25% year-on-year respectively. Growth was driven by client acquisition and active loan. Clients increased by 11% year-on-year. Share of non-MFI books stands at 13%. The collection efficiency was impacted during the quarter as mentioned earlier. The organization however prioritized collection over growth and was able to contain forward flows. The gross slippages from Bharat Financial were at INR 338 crore for the quarter. Total liability franchise sourced through BFIL now stands at INR 2,346 crore driven by new customer acquisition, cross-sell of liability products and now 93% of loan disbursements are done on IndusInd account. Microfinance. While quarter one disbursements are typically lower, we were also watchful for any upward developments due to election activity. Our average loan outstanding per customer at 42,031 was reduced by 4% quarter. The collection intensity continues this quarter and we aim to receive normalcy in the overdue book in a few months. We remain comfortable with our full-year microfinance credit cost to be broadly stable. On Bharat Super Shop we now have 700,000 merchant borrowers under this program. The merchant loan book stands at INR 5,344 crore with 25% year-on-year growth. Bharat Money Stores on the Kirana store model we have 88,000 Bharat Money Stores up 27% year-on-year providing banking in remote areas. These merchants have sourced around 2.6 million savings accounts registering the growth of 68% year-on-year. Overall we focus on asset quality during the quarter to mitigate impacts of several external challenges. We are already witnessing center meeting discipline restoring with good monsoon production and external disturbances getting behind the industry. We are well placed to participate in the large rural opportunity and our deep distribution network while transiting from a microfinance to micro banking. Corporate Bank, the corporate bank book grew 13% year-on-year with growth continues to be led by mid and small corporates within corporate. Large corporates grew by 10% year-on-year, mid corporates by 14% year-on-year and small corporates by 22% year-on-year. The healthy growth in the mid and small corporates continues with increasing company focus on this segment and focus on selected industry segments. The diamond business showed sequential growth after a few quarters of contraction due to weak global demand. The asset quality on diamond remains pristine with no NPA or SMA1 SMA2 customers. The proportion of A and above rated customers has been at 79% versus 76% year-on-year with weighted average rating improving to 2.48 from 2.6. YOY the gross slippages in corporate book were only INR 48 crores for the quarter and net slippages were only INR 4 crores only. Overall, we continue to progress on building corporate bank franchise. Focus on selective areas of competitive advantage with granular risk profile. Other Retail Assets during the quarter, our retail assets grew by 23% year-on-year. Our MSME book under business banking is at INR 16,683 crore which grew 13% year-on-year and lending book maintain a steady traction with 12% year-on-year growth. We tracked the branch operating. We tweaked the branch operating model last year to facilitate sourcing MSME asset customers. We have also redefined our SME branches enhanced capability and upskilling of the branch staff. This is showing results in terms of increased contribution by branch-led origination. We are also revamping our onboarding journeys and credit assessment engines by bringing them in the desired digitization and database analytics in credit assessment and onboarding of the customer. With a focus on the branch sourcing and digitization in process and client capability, we expect MSMEs to become a meaningful growth driver for the bank. Our home loan product continues to scale with loan book now at INR 2,348 crore as of June 24th growing 31% quarter-on-quarter. We recorded a healthy credit card spend INR 74,019 crore growing by 19% year-on-year. Our spend market share has further improved to 5% as per latest available RBI data. We have been cautious in maintaining share of unsecured card and PL shares of 5%-6% of the overall loan book. Overall we continue to focus on growing our consumer assets while improving the balance towards secured mix. With the scale up of home loans and MSME now coming to liabilities, we accelerated our deposit mobilization to 15% year-on-year narrowing the gap with the loan growth. We also maintained traction on retail deposit mobilization with retail as per LCR deposits growing at 16% year-on-year, share of retail deposits now stands at 43.7% versus 43.4% year-on-year. Cost of deposits increased by modest 5 basis points quarter-on-quarter driven by the mix in favor of term deposits and some repricing. The bank opens its milestone 3,000th branch in Mumbai last quarter with a total branch count of 3,013 as of June 24, 2024. We continue to scale our initiatives on affluent and HNI during the quarter. Affluent segments grew 23% year-on-year to INR 54,679 crore during this quarter. Affluent AUM was also up 25% year-on-year to INR 86,000 crore. The bank is slated to take the affluent banking to the next level with the launch of Pioneer Private Banking next month. This will be curated offering for customers with over INR 30 million Net Relationship Value. We are confident that this addition will provide another growth leg up for our already sizable up north franchise. Our non resident Indian i.e. the non resident Indian segment continues to see robust growth momentum on the back of strong NRI deposit flows. NRI deposit grew 33% year-on-year and 9% quarter-on-quarter during the quarter and further achieved a milestone of crossing INR 50,000 crore of deposits based in July. Our market share in NRI resident segment now stands at 3.7% as per last available data versus 3.3% year-on-year. We continue to invest in our brand. We saw strong lift in our brand awareness during the quarter driven by marketing campaign during the ICC T20 World Cup and where India was crowned as a champion. Our reliance on bulk deposits remains low in the certificates of deposits at 2.5% of overall deposits and borrowings at 8% of total liabilities. The liquidity position remained healthy during the quarter with an average LCR improving to 122% versus 118% prior quarter and average surplus liquidity at INR 43,000 crore for the quarter. Overall retailization of liabilities continues to be the cornerstone of our strategy and our balanced approach towards traditional as well as investments in new initiatives should support our growth ambitions. Digital traction during the quarter INDIE, the digital banking app of the bank completed first full year of operational launch. We have now more than 1.3 million clients on the INDIE app including 1.1 million new to bank and 200,000 existing clients migrated to INDIE. The migrated client has shown an increase of 35% in terms of liability per client and a 20% increase in transaction per client. We are in the process to soon open this app as a platform to all clients of the bank to manage their existing relationship. While new products and services continue to get launched on the app and continuous innovation happens in parallel, we're also going to launch a revamped wealth management offering INDIE for business and revamp experience for NRI clients on the INDIE app within the coming weeks. We are building a new and existing platform continues to scale. While we are building the new the existing platform continues to scale up as well. IndusMobile has a monthly active user base of 3 million-plus and register a growth of 30% year-on-year in recurring bill payments. The rating of the app improved to 4.5 on the App Store and 4.3 on the Play Store. On Indus Merchant Solutions, we launched a new feature for merchants whereby they can add or manage sub users and delegate store operations such as collections to these sub users. On WhatsApp Banking, we have registered base of 9.2 million and conversations and active users by 200% and 30% year-on-year. IndusEasyCredit, the flagship digital retail lending platform of the bank, continued to see scale and now 100% of personal loans, credit cards, small ticket business loans and working capital loans happen digitally via the platform. The platform is now also integrated with the account aggregator and for MSME clients enabled CGTMS E. Now coming to the financial performance for the quarter, net interest income grew by 11% year-on-year and 1% quarter-on-quarter with net interest margin remaining steady at 4.25% versus 4.26% quarter-on-quarter and within an expected range of 4.2%-4.3%. Our cost of deposits increased by 5 basis points quarter-on-quarter while our cost of funds increased by 3 basis points quarter-on-quarter. The increase was offset by 2 basis point increase in yield on assets maintaining margin steady. Our other income grew by 10% year-on-year. Core client fee excluding trading income too grew by 11% year-on-year. Share of retail fee remains healthy at 78%. Our total revenue for the quarter was at INR 7,849 crores with 11% year-on-year growth. We continue to see sequential moderation in OpEx growth. The OpEx growth reduced to 20% year-on-year versus 24% year-on-year in the previous quarter. The sequential growth was curtailed further to 2% quarter-on-quarter. The cost to income however increased largely due to slower revenues due to seasonally weak disbursements in vehicles and microfinance. We should see cost to income improve as revenues pick up during the course of the year. The operating profit for the quarter was at INR 3,952 growing 3% year-on-year on the asset quality and the provisioning. Front collections and cautious disbursements were key focus areas during the quarter given the external disturbances. As a result, we were able to improve loss slippages ratio at 0.45% versus 0.47% year-on-year in an otherwise challenging quarter. The gross slippages by key segments were vehicle finance INR 660 crore, microfinance INR 338 crore, corporate INR 48 crore and other retail INR 490 crore. The restructured book reduced during the quarter from 2.34% to 2.40% quarter on quarter with the bulk of reduction due to upgrades and recovery. The net security receipts were reduced to 32 basis points from 34 basis points in the previous. Overall the GNPAs and the net NPAs were at 2.02% and 0.60% respectively. We have maintained provision coverage ratio of 71%. Our SMA1 and SMA book collectively is at 25 basis points. Total loan related provisions are at 2.2% of loans and 106% of gross NPAs. The bank has not utilized any amount from the contingent buffers during the quarter. Sector credit costs were at 121 basis points for the quarter without using contingent provisions. We thus remain confident of achieving a full year credit cost of 110-130 basis points given equivalent and seasonally weak quarter is behind us and with credit cost outcomes within our expected range. Our core profitability adjusted for contingent provisions remains robust during the quarter. Our core PAT adjusted for contingent provision grew by 10% year-over-year and 2% quarter-on-quarter. Our capital adequacy ratio remains healthy with CET1 of 16.15% and overall CAR of 17.55% overall. To summarize, the quarterly performance quarter one was a subdued quarter wherein a seasonally weak quarter got added from external factors. The disturbances, the disbursements are already picking up and we remain committed to the 6 growth guidance of 18%-23% growth. Our deposit growth is accelerating along with narrowing spreads on deposit rates with larger banks. A balanced approach on traditional and new initiatives would drive achieving our loan growth aspirations. The OpEx growth has started normalizing and we should see revenues exceeding OpEx growth in a few quarters as the operating leverage and seasonality in key businesses play out. Our asset trends remain healthy, especially seen in the context of turbulence. Last quarter our quarter one credit costs were in expected range of 110 to 113 basis points without using any contingent provisions. We are thus confident of delivering higher growth and improve profitability in the rest of the year. With this we can open the floor for questions and answers. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask the question may press star one on their touch-tone telephone. If you wish to remove yourself from the question queue, you must star two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for. A moment while the question queue assembles participants. You may press star and one to ask a question. The first question is from the line of Kunal Shah from Citigroup. Please go ahead. Yeah, hi. Congratulations. So firstly you indicated that in terms. Of growth, even though it has slowed down to 50, you would still want. To manage at 18%-26% guided range. Can you speak to your answer please? Yeah, yeah. So I was just saying in terms of the growth advances, no doubt because of seasonality and disruption, you had cautiously slowed the disbursements but getting towards 18%-23% odd growth, how much time would it take and maybe growth remains at this level. We saw some kind of, maybe the resolution to raise the equity as well. You mentioned it's healthy capital adequacy. Then what was the. For that resolution? Yeah, so let me answer the first question. Second question first. It's only an enabling clause. We take it every year. So we take a clause every year. It's just an enabling clause. You're absolutely right. Well capitalized as of now, and I think, like we said, every six months we assess the capital needs. And as of now, when we assess in September, I really don't feel we have a need to raise capital as of now, which is our growth remains. We want to be at 18%-23% growth. I think if you look at where we lost out this quarter was the micro finance, and I think there is enough growth headroom available there. We were very cautious because we wanted to make sure that our portfolio was pristine and we do not have so many flows, and we wanted to remain range bound in that flow. And of course in the vehicle finance business also because of the reasons, as explained in the rural economy our growth slowed down. In fact our disbursements were down to INR 11,000 crores instead of INR 13,000-INR 14,000 crores. Crores. In these growth areas. The area where we slowed down was the unsecured business in PL and car. That was intentional. We want, I think the election results playing out and I think that was an intentional decision to slow down a bit and, and see what is happening in the market before we do that. So I think we should see growth coming back and I think we should be in the range of 18%-23% for the full year. I cannot say next quarter or anything, I can't give that timeline, but I can say for the full year we will deliver 18%-22% growth. Okay. And secondly, if you can just share the color with respect to MFI, any particular states, any particular districts, there has been disruption and how the collection efficiency and the behavior of the pool has been, given maybe obviously there have been a lot of concerns out there. So yeah. So first of all let me tell you, we slowed down. Odisha is one such state heavy portfolio. There were a lot of. Overleveraging happening and we slowed down two quarters ago our business in Odisha. We had actually reduced our exposure by INR 3,000 crore in Odisha and at that point of time and actually we've slowed down the other. So I think that's one in UP too. We slowed down our business in eastern UP and we saw that there was pressure and there was a huge growth which was coming from other microfinance institutional lenders. We slowed down in Punjab. If you would have realized that Karza Maafi Andolan which had started. We actually started slowing down the business about three quarters ago and we took the hit last quarter itself and our business has now become very, very small in that area. Jharkhand is another state where we little bit slowed down the business. We think that there is some issues which are developing there and we started pulling out on that state. Otherwise if you look at the business, I think there are good places, Karnataka, I think we are seeing business some parts of West Bengal, we are seeing very good business. We are seeing good business in parts of Jharkhand, Rajasthan, Maharashtra. So I think we are seeing very, very good quality business coming out in these areas. And we feel confident we are range bound in our credit flows. If you look at gross flows are 3.5 and credit cost is 2.5. And if we think that that is the reason this is a big business which delivers a, a very decent ROA for us success on this is to take early calls and see the trends. I think the processes of Bharat Financial are so strong they're able to see early trends and exit those businesses and territories. Okay, thanks. One data point just in terms of general banking fee. Why is it up to such a large extent? No, no, this has PSLC fees which is, which comes in the quarter one of INR 260 crore included into it. Okay. Okay. Okay, thanks. Thanks and all the rest. Yeah. Thank you. Next question is from the line of Nitin Aggarwal from Motilal Oswal. Please go ahead. May I request to unmute your line and go ahead with your question please. Hi, am I, am I audible? Yes. Am I audible? Yeah. You're audible. Okay. Yeah. Hi. Thanks for the opportunity. So first question on like did I hear you right about saying 18%-22% growth for full year? Yes. Okay. So like how should we look at the CD ratio then? Like any compulsion from last 18%-20% imply like 6.7% growth every quarter in respect to loan growth. So how should we look at that equation? If you look at the credit deposit ratio, we are at 86.5 or 87.2 right now. We always said that we will be between 88%-90%. We are well within that risk. I think also please understand that stable funding is also very important. I think our NSFR as well as LCR is well within the range. I also feel that we have enough initiatives and enough capability of raising deposits. We've now reached 15% year-on-year. We should see 17%-18% this quarter. I think I remain confident of doing that growth which we expect in our call today. Okay. Okay, sure. And secondly, on this LCR draft guideline that RBI came up with yesterday, any early thoughts as to what can be the impact? Any broad range, will it be possible to give any color on that? We can't give any color right now, but I think we are assessing and I think if you look at the preliminary and this is just a preliminary, it will be in the range of 4%-5% for us. Okay. Okay, sure. And lastly, like I'm just taking cue from another bank results call wherein they increase the risk rate on the MFI loans after the RBI increase the risk within November 2023. So have we also done any change on the rest? No such guidance or any circular from the regulator to us to increase the risk weight on microfinance loans from 75%. Okay. Okay, sure. Thank you so much and wish you all the best. Thank you. Next question is from the line of Piran Engineer from CLSA. Please go ahead. Yeah, hi. Thanks for taking my question and congrats on the quarter. Just to follow up on microfinance, you know, I appreciate we've been taking certain steps on. Sorry to interrupt you. Can I request you to speak through the handset and come into a better reception area, please. Your audio is breaking. Yeah. Is it better now? Slightly better. Okay. Should I go ahead with my question? Yes, go ahead. Yeah, just wanted to understand on microfinance. I appreciate we are taking steps to curtail risk, but our NPLs keep rising, so are significantly above some other players. Really, what's going on here? Are we not writing off loans? Is that the thing? Is our write-off policy very different from the others? No, I think we write off, we write off the loans and as per the policy of the bank, we don't keep retail loans more than 180-240 days. So we never keep microfinance loans. The issue is if you look at there are two things which have happened. One is that the base effect has come in. I think if you look at the disbursements have been lower and as a consequence the book has fallen down by INR 2,000 crore. And as a consequence you're seeing a larger number out there. Second if the second theory way to look at is the gross flows in Bharat Financial has been INR 338 crore and I think that's well within our reach of 3.5% and we are very comfortable with that business. And what was the same number last? Could share the corresponding number INR 331 crore. Okay, okay, that is useful. And just secondly from Mr. Sumant I just wanted to get your thoughts on where we are in the auto cycle and not refer to the next 2-3 quarters but just in general are we in still in the middle of the cycle? Do we see that we are closer to the top of cycle? You know, I would appreciate a comment on that. Yeah, yeah. The every commercial vehicle. Yeah. As you said like we are in the peak. Like there is no further movement. We are expecting like it's more or less in the peak but the rest. Of the segment there will be at. Least, i.e., single-digit growth at least and tractors. We are expecting double-digit growth. Rest of the areas at least high single digit growth is our expectation. Including cars? Including cars. Got it. Good. Okay, that that's useful. Thank you so much, and wish you all the best. Thank you. Thank you. Next question is from the line of Abhishek Murarka from HSBC. Please go. Yeah. Hi everyone. Good evening. So my question is again on this deposit growth actually. So if you see the proportion of retail deposits, the growth there has been tapering off in the last 3-4 quarters. Now if you have to accelerate to. 17%-18% overall deposit growth incrementally where does this come from and do you have to take any kind of rate increases and then what is the impact on NIM of that? So just trying to figure out that relationship. Abhishek, this question has been asked to me 10 times now and I asked him the same question. If you look at our NIM, the NIM are very range bound and we've been able to manage our NIMs between 4.2%-4.3%. And I think that's the range which we will be in. I can't say specific numbers but it is range form for us and we've always been able to manage our NIMs between that. Between that range coming out to the However coming to be. We would like to. We've always said our stated intent is to be between 48% and 52% LCR by the end of the planning side next year, which is. And I think we are focusing on that. There will be some quarters where the growth is slow and intentionally so because we expected an interest rate reduction to happen. We said that we will play two different games at this after two different views at this point. I think we see our processes very closely. We also don't want to be stuck with large retail deposits at a very high rate at some point. So we do play, we do manage our book in a different manner because we have stable funding from developmental associations which come in and our stable funding remains intact. Having said that, I think we do not see a risk to 18%-22% of our growth and I think we should be able to manage that. Our LDR between the range of 88%-90% going forward. That's been our guidance and we are very comfortable with that. Sure, sure. Understood. And the second question is on card fees. I think there was a fair bit of drop this quarter. Can you share what's the way forward and what led to the drop this quarter? So there are three things that led to the drop this quarter. One, I think the regulator came back with a directive that over limit fees cannot be charged and that was an INR 24 crore drop on the card fee as a consequence of that in a quarter. So that ongoing basis which you will see happening in the card. Second, our acquisition was lower and I think as a consequence our card fees for higher end accounts and I think we slowed down the acquisition. And the third was the rentals. The rentals. The interchange on rental was eliminated and we stopped doing the rentals from the card and I think that was leading to delinquency and that was also an INR 10 crore income for us in the quarter and that clocked. Okay, so this is, this is all actually structural. So this is not going to revert? I don't think so. It will reverse because rental yields have gone down and I think rental interchanges disappear over limit charges have disappeared. And this is the third. No, the third thing is we will build up the card business again. So it's not that we will stop the acquisition. And I think high end cards are a priority for us. Right. And can you just talk about the asset quality in cards? We've seen a bit of inching up in NPAs. You said previously. I think on the previous call that you're seeing some stress there. Can you just give directionally how I. Think you will see some stress in the car business for next two quarters? Let me be candid. I think there is stress building up. If you look at the 60+ and 30+, I think the 30+ looks 7% right now. So it's not that it's not looking good, it is looking at that. So I think you will see some flows which will happen on the card business and I think. But it's well under control and the ROAs are under control. So we have to just see how to manage it. We're putting all our efforts but there is some stress on the card business right now. Got it. Thank you so much. I'll come back in the queue. Thank you so much. Thank you. Next question is from the line of Sameer Bhise from JM Financial. Please go ahead. Yeah, hi. Thanks for the opportunity. Just wanted your thoughts on the draft guidelines on liquidity which came off yesterday. Any initial comments there if they were to come in the current form? See, I think it's very difficult to comment. I think whenever a regulator gives the draft guideline there is a lot of thinking which goes behind it. I think if you look at one of the regulations which have come in, I think that they want to make sure that the banks are liquid and there is no run on the bank and that's why they are increasing the LCR percentages flow from 5% to 10% on a physical deposit which is the retail deposits and they believe that through mobile or through electronic banking these can be immediately moved. And I think the stability of the system and the liquidity, liquidity is more important to them. And I think these are directed in the right manner and I think it will only make the system much more sounder and I think it's for the fortification of the balance sheet and the liquidity in the system. So I think to me there may be some impact. But I think 4%-6% for us. I think it's very, very important to make sure that. I think we should not get bogged down and we should, we should, we should see how to manage this and it will become a part of the BAU as we go forward. Okay. And when we look at the credit cost guidance of 110-130 basis points includes our prior comment on having excess provisions on microfinance and vehicle. Absolutely right. Absolutely right. Okay, perfect. Thank you. That's all from my side and all the best. Thank you. Next question is from the line of Anand Dama from Emkay Global. Please go ahead. Thank you for the opportunity. So someone basically there was a special deposit scheme which we had launched during the first quarter. So any impact of that is yet. To come in the cost of funds and because of which should we see some margin pressures going ahead? So I think we had launched at 7.99% and I think we saw enough practically mobilized about INR 7,000 crore of term deposits on that campaign during the T20 World Cup. It was during the T20 World Cup and specific for a specific duration and we've stopped that campaign now and gone back to 7.75%. So I think we mobilized INR 7,000 crore of term deposits at that point of time within that 15-day period. The impact of this has largely been baked in in the first quarter as well. It's part of the thing. Yeah, it's already baked in. Okay. When you look at our growth vectors, so basically which are the segments? I mean you said that basically we're still looking at about 18%-22% credit growth. So for microfinance obviously not doing that well. Card, you know. So which are the segments which are going to deliver this kind of a high growth? Is it going to be a corporate book or the non-unsecured loan? Our balance of book will remain tilted towards 55%-56% renewed retail and 44%-45% corporate. We also continue to believe that our book on vehicle finance as well as micro finance including merchant acquiring will continue to grow. We believe that merchant acquiring and MFI business will continue to grow at 20%-24% for us during this year. Our CFD vehicle finance business will grow at 18%-20% per year. Our retail business will continue to grow at 28%-30% for the year. I think we've just seen a slowdown and I think we will come back into that growth mode in the corporate side of the book. I think we've always said that our mid segment and the smaller segment. Mid segment grows at about 18%-20% and our mid segment grows at 14%-16% while a large corporate is at 10%-12%. Sure, that's very helpful. Thanks and thank you sir. Thank you. Next question is from the line of Chintan Joshi from Autonomous. Please go ahead. Hi. Thank you. Can I ask a question on NII? If I look at the quarter-on-quarter growth, it's 0.6% and when I look at the end of period average earning assets, that's grown 4.4% and yet your NIMs are stable. Does this mean that a lot of the kind of growth is back-ended in the quarter? And is there any other reason for weakness in NII? You know, any kind of one-offs or funnies that kind of explains the NII weakness? I don't think there's any one off in the NII for us. But there was nothing one off. There was no one off in the NII but just the averages which are playing out. I think you will see in this quarter the this normalize some quarters it happens but over three or four quarter period it normalizes. So, can I take this that the weakness is purely management to be cautious in a quarter where there's seasonality in elections? Is that April and May were. Weak quarters, and June is when we started picking up the disbursal, even whatever disbursements we did in the MF or in the vehicle finance. The high-yielding businesses like microfinance, cars, they have not grown in this quarter. So that's why there is an added impact on the NII versus the loan growth. Understood. My second question is on the GNPA on slide 26. You've given a lot of color but there's a general statement in consumer banking practically every segment is seeing increase. Is there something kind of worsening across the industry or is this a signal effect? It's just a seasonal effect. I think the only thing that you should worry about is the card business. I don't think there is anything else which I think I'm worried about right now. I think, and I think the 30+ on the MFI is a little bit elevated right now, and I think, but we still believe that it will be between 3.5% gross loss and 2.5% credit cost. Within others personal loans, are you seeing any kind of kind of deterioration? Not at all, not in personal loan. But I said cards. Yeah, understood, thank you. Thank you. Question is from the Keshav Binani. Hi, thanks a lot Sir. So sir, just firstly one question on LCR front. So we have you know, improved on retail deposit composition over a period of time of say last two, three years. But if we look at the outflow. Rather, there has been, like you know, no impact as such in the outflow rate as per the LCR number. So what is the reason behind that? Yes sir. Yeah, one second. Let's get back to you on this question. Sure, sir, sure sir. Secondly sir, on the general banking fee, if I see. I don't know if you had responded. To this question, sir. So that there is quite a lot of growth that you are witnessing here. They're on the like, you know. There is PSLC fees which is included in this which is a PSL fee which comes once in a month or twice a year. And that is the PSL fee which. Has come in how much? That number 260. 260 crore-INR 270 crore this quarter. Okay, so is that a reason some of the PSL qualifying loan book we are reluctant to write off? So it's not that I think we write off as per the policy which is there; we don't tinker with the policy. And if the policy said that you have to write off an NPA, we write off if it's a 240 days write off into 40 days. So we don't concur with that book at all. The rules policy and the bank approved board policy and we go with that policy. Thank you. Thank you so much. Thank you. Next question is from the line of Jai Mundhra from ICICI Securities. Please go ahead. Yeah. Hi. Good evening, sir. Most of the questions have been answered. Just two questions. One is, if I look at the cash and bank balance as a percentage of assets, since COVID we have been, you know, utilizing that and the proportion was coming down as a percentage of assets. But this quarter that number has gone up. Is it like more opportunistic, as you said that you were cautious in disbursement and hence the build up, or you know this is something new? It is just the loan growth is down and once the loan growth comes back it will be there. Okay. Right. And secondly on the wholesale side we have been, you know we have been. Following the strategy of large corporate growth being slightly lower and growth being more driven by small corporate, mid and small corporate. But if I look at the yield on the wholesale side, you know I would have expected them to be stable. It's not rising. But this quarter they have actually declined. So is there any clarification or? This is like you know. Normal business which happens and I think it's a 4 basis point decline. It just is a normal part of the business. Thank you sir. That is it. Thank you. Thank you. Next question is from the line of Rohan Mandora from Equirus Securities. Please go ahead. Rohan, can you hear us? Can you speak handset please? Yes, can you hear me? Yes, thank you. Yeah. Hi, sir, wanted to understand what is the impact of the penal interest circular on them? I think there will be an impact of about INR 35 crore-INR 40 crore on the run rate on the penal interest. 30 growth for the quarter. That's the impact INR 30 crore for the quarter. But we have. So there is a. We should be able to see what we need to do and increase the yield to manage that. Okay. Okay, sure. So on the incremental disbursal is. Because just wanted to get a sense on that. So product wise is it flattish Q-o n- Q, is there an increase or? Has there been a decline on incremental disbursement deals on? On which product across the key project we work like the vehicle finance category? LAP depends on which product. I think we are very the vehicle finance. We have an overall disbursement yield of 12.9%-13% and we've been consistent in that field over a period of time and we've been very stable on that. On microfinance we have fluctuated between 20%-23% and we've been very stable on that. On consumer bank our yield depends on the secured and the unsecured mix. This quarter we saw a dip on the disbursement yield because it was more tilted towards secured rather than unsecured. Otherwise if you look at the yield they disbursed at 13.4%-13.5% so that's what we are. In corporate bank it depends on the large, mid and small corporates but we are very stable on our yields. Sure. Until lastly, what would 30 plus book. In the vehicle finance? Vehicle finance we don't give that number. Yes, we. We disclose our SMA1 and SMA2 for the bank, which is a 25 basis points, and that's what it is. Sure sir. Thanks. Thanks a lot. Thank you. Next question is from the line of Manish Agarwalla from PhillipCapital. Please go ahead. Yeah, thanks for the opportunity sir. Had a question on yield on investment. So it will have increases on sequential basis. Anything to read there? Yeah, yeah. So I think some of us are the listed N CDs of various public sector AAA- rated banks which. Which led to a slight increase in that year. Okay. And in terms of going back to the interest question, is that income now as a part of fee income or commission, exchange, brokerage income? Part of this is part of the fee income which is already there. Part of it still has to start coming in. Okay. Okay. Finally, if you can give some, you know, color about which are the geographies noting stress in the MFI. Any specific cases if you want to. Hi, no, I, I told you that I think if you look at our MFI flows and the Bharat Financial process is INR 338 crore for the quarter. So it's not that it deteriorated. We told you that Punjab was an area where we were seeing stress. I think it had already done and dusted. I think in my opinion, I think we reduced our, our book in Odisha. We slowed down our book in Odisha. And I just gave that answer. Got it. Got it and got it. Thank you very much. Thanks for that. Thank you. Next question is from the line of Gaurav from Schonfeld Strategic Advisors. Please go ahead. Thanks for the opportunity. Just one question on your tenure. You know. Applying to RBI on extension. Or given that we are only in. The first quarter is too. In my view, I think the board will have to send a recommendation by September. That's the last date that they have to send a recommendation as of now. I think they should apply whatever they have to apply by August 10th or early September. I think that's where we stand and I think we should just wait for that announcement to happen as and when they do that. Okay. Thank you sir. Thank you very much ladies and gentlemen. We'll take that as the last question. I'll now hand the conference over to Mr. Sumant Kathpalia for closing comments. Thank you for participating in the first quarter call for the. If there are any questions or any further clarifications which are required, me and Indrajit are available. We can take a call and questions and get back to you. We have to get back to you on one question which is on the outflow on the LAP. We will get back. I don't have a comparative number right now so that's why I didn't answer. But I know the outflow is what they are.