Ladies and gentlemen, good day, and welcome to the earnings conference call of Indian Overseas Bank arranged by Veritas Reputation PR. At this moment, all participant lines are in the listen-only mode, and later we will conduct a question and answer session. At that time, if you have a question, please press star and one on your touchtone keypad. Please note that this conference is being recorded. I now hand the conference over to Ms. Sonali Pandey from Veritas Reputation PR. Thank you, and over to you, Ms. Pandey. Thank you. Good evening, and welcome to Indian Overseas Bank's conference call to discuss our financial results for quarter one FY 2026/2027, ending June 30th, 2026. Indian Overseas Bank, IOB, headquartered in Chennai, continues to strengthen its presence with over 3,522 branches with around 3,691 ATMs and 14,401 business correspondents across India. IOB also provides services in four countries, Singapore, Hong Kong, Thailand, and Sri Lanka, with a trust of 46+ million total customers in bank's fold. Our comprehensive suite of services spans personal, corporate, and agricultural banking, along with credit card, loans, and insurance products. Our financial results are available on our website and stock exchange platforms. Before we proceed, please note that today's discussion may include forward-looking statements subject to risk and uncertainties that could impact future outcomes. We encourage you to consider these factors when evaluating our performance. Joining us today are Ajay Kumar Srivastava, Managing Director and CEO, Mr. Joydeep Dutta Roy, Executive Director, Mr. Dhanaraj T, Executive Director. We will begin with an overview of our quarter one performance, followed by a Q&A session. I invite Mr. Raghuram Mallela, Company Secretary, Indian Overseas Bank, to present the financial highlights. Over to you, sir. Thank you, Sonali. Good evening, all. I am pleased to present an overview of the bank's performance during the quarter ending 30th June 2026. It's a proud moment for the bank today that the bank has reached a new milestone by achieving an all-time high quarterly net profit of INR 1,659 crores for this quarter, as compared to INR 1,111 crores as on June 2025, with a 49.32% year-on-year increase. Bank has achieved the operating profit of INR 2,693 crores, registering a year-on-year growth of 14.21%. Regarding the performance of the bank for the quarter ending 30th June 2026, bank has achieved a business mix of INR 6,98,325 crores, recording a year-on-year growth over 17.72%. CASA in absolute terms stood at INR 154,415 crores with year-on-year growth rate of 6.61%. CASA ratio domestic as on June 2026 stood at 41.45%. CASA global stood at 41.05%. Total deposits reached at INR 376,193 crores as on 30th June 2026 with a year-on-year growth rate of 13.72%. Total advances increased year-on-year by 22.75%, reaching INR 322,132 crores as against INR 262,421 crores as at 30th June 2025. Provision coverage ratio improved to 97.67% as on 30th June 2026 as compared to 97.47% as on 30th June 2025. Capital adequacy ratio stood at 19.36% as against the regulatory requirement of 11.50%. Net interest margin global for the quarter ending 30th June 2026 is 3.37%, with an increase of 12 bps as compared to 3.25% as on the last quarter, March 2026. Net interest margin domestic stood at 3.48% for the quarter ending June 2026 as compared to 3.35% for the quarter ending March 2026. With regard to the NPA management, GNPA, Gross NPA, reduced from INR 5,178 crores to INR 4,292 crores year-on-year basis. Net NPA reduced from INR 816 crores to INR 588 crores. GNPA percentage has reduced by 64 basis points year-on-year from 1.97% as on June 2025 and reached 1.33% as on June 2026. Similarly, net NPA percentage has also been reduced by 14 basis points year-on-year from 0.32% as on June 2025, and it stood at 0.18% as on June 2026. Slippage ratio of the bank is reduced to 0.06% for the quarter ending June 2026 as against 0.10% as on June 2025. With respect to the valuations, there is a significant improvement in return on assets, which stood at 1.41% for the quarter ending June 2026, a 27 basis points increase as compared to June 2025. With regard to book value per share, it improved to INR 15.79 for June 2026 when compared to INR 12.41 for June 2025. Similarly, improvement is evidenced in return on equity with 369 basis points year-on-year. Currently, return on equity stood at 22.69% when compared to 19% for June 2025. The earnings per share for June 2026 is INR 0.86, which improved from INR 0.58 as on June 2025. This is all about the financial performance of the bank for the quarter ending 30th June 2026. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. Participants who wish to ask questions may press star and one at this time. The first question is from the line of Mr. Ashok Ajmera from Ajcon Global. Please go ahead. Yeah. Thanks for giving me the opportunity first. Compliments, Srivastava, Joydeep, Dhanaraj, and the entire team of the Indian Overseas Bank for the fantastic results for even Q1 2027. You are just a whisker away from INR 7 lakh crores business, which will be achieved soon or might have already been achieved by now. Compliment that you made all the parameters or the targets which are given. Even in the current quarter also, there is a good credit growth of 3.77%, an overall annualized basis 22.75%, which is commendable. Having said this, sir, I got a couple of observations and some questions. In the profitability, which is one of the highest now in the net profit, I was told just now INR 1,659 crores. Even pre-profit is also good at almost about INR 2,700 crores. There is a major component of PSLC, commission of INR 863 crores and reasonably good recovery from written- off account of also almost about INR 490 crores. Fee-based income has also gone up. This PSLC and equally in the investment, in the treasury book also, the profitability is there. That is the major contributor of this profit in this quarter. Going forward, can you give some color of how are we going to close this FY 2027 as far as the profitability is concerned, whether the consistency will remain there in spite of some of the sectors which may not be materialized in the coming quarters? Thank you so much. Good evening, Mr. Ajmera. Good evening, sir. This is Srivastava. Both the AD are sitting with me along with my team. Regarding this profitability, you need to look at NII also, interest income, and expenses. NII we have grown by 34.30% year-on-year. That itself is showing that out of operations, the lending activity and whatever you are doing on liabilities work. NII growth is one major part of driving profitability. In addition to this, you talked about PSLC and recovery from technical written- off account. These are routine activity. Every quarter it happens. If you remember earlier also, the same type of query was there that whether this PSLC income or recovery from technical written-off account will continue going forward also. In fact, if you look at last eight to nine quarters' numbers, these two parameters are there in all quarters. PSLC sale income. What I'm trying to convey is that this is an integral part of non-interest income, and that will continue. Of course, it is stable, and it will continue going forward also. NII, of course, interest income is increasing quarter-on-quarter, year-on-year. Going forward, I do not see any challenge in maintaining this profitability. Last 10 quarters, if you see the trend of operating profit and net profit, quarter-on-quarter, it is only one dimensional, that is increasing. Yes, sir. Hello. Yes, please. Yes, sir. Profitability. Yes, please go ahead. Sir, on the credit front also, this quarter has been good for almost every bank. Suddenly, a lot of demand has emerged. There was some clarity in between on this West Asian war also. Again, that conflict started again. Now going forward, number one, on that ECLGS, how much was our sanction and disbursement, whether have you started seeing now any pressure again coming back to the smaller accounts or SME accounts on the recovery front or on the delinquency front? What are the numbers of the ECLGS? If you can, how many people have already availed it? How much is the amount of disbursement? Yes. ECLGS total universe from IOB side, whatever number of eligible accounts and amount is there, that is around INR 4,400 crores. Out of that, we have so far disbursed around INR 2,600 crores based on the requirement of the individual borrowers and in terms of ECLGS 5.0 Requirement. INR 2,600 crores is already done. INR 1,800 crores is expected to be done over the next 1.5 months. Demand is there, request is there. We are pretty sure that 95%-100% of ECLGS disbursement will certainly take place by August 10 or September first week. Regarding West Asia issue and stress on any small borrowers or SME accounts, so far we have not seen. Individual cases are there. As one product or one sector, that this particular product or sector is struggling because of West Asia crisis. Earlier also, there was no such sign, and right now also we are not observing anything of that type. Okay, sir. Point well taken, sir. Now, on the ECL front, how are we prepared? Are we continuing the same what was there in the last quarter, that we will be in a position, the impact may not be that sizable, and we will be able to take care of it without taking the benefit of those four years or so on the ECL? Yes, sir. What is the total buffer provisioning on that, sir? Yes, sir. The same strategy continues. Our initial assessment or internal assessment, I will say, it is to the tune of INR 3,000 crores of additional requirement. Till March, we created a forward-looking provision for ECL only INR 1,700 crores. Okay. This balance sheet, we have added INR 400 crores additional. Against INR 3,000 crores of provable requirement, we have provided already INR 2,150 crores to meet this ECL provisioning requirement. In coming quarters also, we will be equally making a provision going forward so that by the end of this financial year, the entire requirement of ECLs can be taken care of in one shot. As part of our internal discussion, we do not intend to go for a four-year dispensation. Very encouraging, sir. Sir, last question in this, rather a data point. In our net worth which has gone to INR 29,256 crores in this quarter from INR 28,114 crores. In addition to the profit, there is an addition of INR 554 crores in the net worth. Is it because of the AFS, some addition in the results because of the revaluation? Because of the valuation or the profit of the AFS book or some other components, if there in this INR 550 crores, some DTAA or some other thing? If you can? Yeah, DTAA we have done around INR 400 crores. Sorry, about INR 200 crores? Reverse to INR 400. Sorry, sir. I couldn't hear, sir. DTAA? DTAA. This time INR 200 crores, sir. DTAA, you have INR 200 crores? INR 196.65 crores. That reversal has happened, +1 or 2 minor entries will be there. Nothing substantial, sir. AFS, any addition to that? Sir, MTM addition is there around INR 300 crores. That is there. Okay. That is also there in the book, sir, yes. In the results only. Last quarter it was a negative impact of INR 500 crores. Correct. This quarter, it is better. Yes. It has come in the positive now? Yes. MTM is positive now. Yes. Yes. By around INR 300 crores. That's very good, sir. Just last question going from this round is that, sir, your NIM is very good and increasing also. One thing is that whether it can be maintained in the remaining three quarters. Second one, sir, somehow I couldn't find out the SMA numbers. SMA-0, 1, 2 or SMA above 5. Either I have missed the slides. Can you give some color on that, sir? Yes, sir. SMA is around 4%, sir. Total SMA. SMA- 0, 1 and 2, I will give you separately the numbers, but total SMA is around 4%, and it is coming down because one month before it was 4.95%. Yeah. We are paying attention to that. The first question was? NIM. About NIM. NIM, sir, last one year, if you see, we have been successfully maintaining NIM between 3.3%- 3.4%. This year also we gave the same guidance that it will be maintained at that range. For June number, if you see our domestic NIM, it has gone to 3.48%. Correct. Yes. We are pretty sure that going forward also, sir, NIM will be in this range only around 3.3%-3.4%. In this range it will move. SMA numbers right now we are having, I can tell you SMA -0 is around 1.78%. SMA-1 is 0.95%. Sir, can you give that in absolute number, sir? Absolute numbers, yes, of course. SMA-0 is INR 5,733 crores. Yeah. SMA- 1 is INR 3,068 crores and SMA- 2 is INR 4,246 crores. Total SMA is INR 13,000 crores. Percentage terms, it is 4.05%. Sir, it seems I don't remember exactly. I think this SMA- 2 numbers have a little bit increased in this quarter. Isn't it? SMA- 2 as on March was INR 3,646 crores. Yeah. Around INR 600-INR 700 crores increase is there. INR 600 crores it has increased, yes. If you look at percentage terms. Yeah. March 26 was 1.20% now 1.32%. Yes. INR 500 crores it has increased, yes, over March. Any concern or it is already regular? Hello? Hello? Hello? Mr. Ajmera, may we request, please stay connected. We have the management line with us. Yeah. The line went off, I think. Is it on now? Ladies and gentlemen, we have the management line disconnected. Please stay connected while we reconnect the management. Ladies and gentlemen, we have the management line reconnected. Yeah. Hello. Ajmera sir, SMA- 2 has increased by INR 500 crores over March. That is correct. Total SMA, it has come down by INR 2,000 crores-INR 2,200 crores. Yes, sir. Any concern on that, sir, the SMA- 2 numbers increasing or they are now regularized by now? Mostly it is regularized, sir. If you look at our slippage ratio, sir, if you map that with SMAs, you can see that slippage ratio is 0.06% for June. March it was. Yeah. It is substantial. It is almost 50% of March. What I want to know, is there any government guaranteed account or anything out of this INR 4,246 crores, or these are all? Part of that, not government guaranteed, sir. I will say that CGT SME coverage or CG FMU coverage from smaller accounts will be there. Nothing alarming, sir. Slippage ratio for last 10 quarters has been around 0.10%- 0.12%. Asset-wise, quality-wise, we are absolutely 100% sure, sir. Very good, sir. Very good performance. All the best to you. I think a lot of other people are in the queue. I'll step off from here and if time permits, I'll come back again. Okay. Thank you. Thank you, sir. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit the questions to two per participant. The next question is from the line of Bimal Panchal from Bimal Panchal & Associates. Please go ahead. Hello. Yes, please. My name is Bimal Panchal. We have approval of INR 5,000 crores equity raising plans. Which way are we planning, say, QIP, OFS, rights with the Government making not subscribing or which way we are looking? This INR 5,000 crores, are we planning in one shot or in installment? Just wanted to know. It is true that INR 5,000 crores of capital raising plan has been approved by the Board, and we are in the process of obtaining all other statutory approvals before hitting the market. We expect that in this quarter it will happen. Maybe in Q3 or Q4, depending on the market conditions, we will go to the market maybe in one or two or maybe more than two tranches also. The method, QIP, OFS? It will be QIP. Okay. Thank you very much, sir. Thank you. Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Ashlesh Sonje from Kotak Securities. Please go ahead. Hi, team. Good evening. Sir, few questions from my side. Firstly, if I look at the yield on advances has gone up by about 10 basis points QoQ. If you can just explain what is happening, and along with that, if you can also share what has happened on the corporate. What is the strategy on the corporate loan book because that has declined 10% QoQ? Yes. Yield on advances has increased because of pricing issue, of course. About 54% of the credit portfolio is linked to MCLR and 37% to RLLR. Because of good quality lending at reasonable pricing, yield on advances has increased. The corporate book, I will say that there is a pipeline of around INR 14,000 crores already sanctioned and in different stages of disbursement. We expect that corporate loan book also by the end of this year will grow by 12%-13%. Understood, sir. Sir, when you say the yield has gone up because of better pricing, can you elaborate a bit more which segments you are seeing this exactly, and what is the response from the borrowers? See, 80% of the portfolio is RAM, Retail, Agriculture and MSME. This yield is coming from everywhere, Retail, Agriculture, and MSME, a part of it is coming from corporate also. It is not only one area or product specific. It is uniformly spread across. Sir, is my interpretation right that yield has gone up across all segment? Or you are saying there is something else? Yes, more or less, yes. Okay. Sir, in the corporate advances which have declined 10%, would you have a sense of where the borrowers are going? Are they going back to the bond market or they are going to some other bank? See, for IOB this 10% decline is because of one bigger account amounting to around INR 10,000 crores, which we in the first month of this financial year, in the month of April itself, since pricing was not matching, we came out of that arrangement. This corporate loan book of 10% decrease is because of that. The INR 10,000 crores of impact was more, but around 40% of that we covered in the quarter one. After coverage of 40% of corporate loan book, this 10% negative growth is visible, which of course in this quarter it will be covered and as I said, by the end of the financial year, we'll be showing a growth of 12%-13%. Having said that, if you look at the total overall credit growth, year-on-year, we have grown by around 22%. Quarter-on-quarter also, I think we have grown by 4%. That's it. Understood, sir. Sir, is it possible to share which sector this exposure belong to, this INR 10,000 crores exposure? It was corporate government account. Understood, sir. Okay. Sir, secondly, the cost of deposits has also improved. It has declined by about 10 basis points QoQ. Can you explain what has happened there as well? We have focused on CASA very aggressively and despite 13% or 14% growth in total deposit and 18% growth or 17% growth in retail term deposit, we have been able to maintain CASA of 41% on a consistent basis, and that is the only reason how cost of deposit has come down. We are not very aggressive in high rates of interest bulk deposit field. All along, we maintain around 6%-7% bulk deposit ratio out of total deposit of the bank, and that strategy that focusing on CASA and not too much of reliance on bulk deposit. Combined impact of these three, four strategies has resulted in reduction in cost of deposit. Sir, one follow-up on that one. Is there any part of your term deposits which is yet to still reprice downward or all the repricing is already complete now? All repricing done. Already done. Yes. Completed. Okay. Six months ago. Okay. Understood, sir. Sir, thirdly, if I look at the fee income for the quarter, it has grown quite handsomely about 20% YoY. Can you just explain what has happened here? The growth is quite good. Yeah. Two major components are, one is PSLC commission, second is sale on retail term deposit, third is processing fee, plus all other usual charges. Sir, if I look at the presentation, I'm talking about this component which was INR 476 crores, so the PSLC income is sitting outside that number? Let me see the number. I can't- What you call exchange and commission, that number. Exchange and commission, that is INR 90 crores you're talking. It shows as INR 476 crores here. Okay, INR 476 crores exchange and commission. Perfect recovery, technical return of PSLC commission. INR 476 crores will be normal exchange and commission, LC commission, BG commission, non-fund business, plus locker rents, plus all other charges, demand drafts. Sir, just trying to understand what has led to the growth here. It's grown about 20%? See, base is low, so it's looking at 20%. If you look at the numbers, last year June it was INR 398 crores, absolute numbers you see. From INR 398 crores-INR 476 crores. Base is low, so it is 20% you can see. In absolute numbers, it is in that range only. Okay. Sir, in any of your loan segments, have you changed your fee structure in any manner materially? Processing fees or something. At the time of sanction, whatever terms and conditions are part of the sanction, the same continues. In between, we do not change generally unless and until rating downgrade happened. Okay. Understood, sir. Sir, lastly, if you can share what is the outstanding loan book which you have under CGTMSE as of now? CGT MSE around that data exactly I'm not having, I can share with you, but it will be around 15%-16% of the total credit portfolio. Broadly, I'm telling you. Understood. Perfect, sir. Thank you. I'll come back into the queue. Yeah. Thank you. Thank you. The next question is from the line of Aditya Mundra from MyTemple Capital. Please go ahead. Thank you. Am I audible? Yes, please. You are audible. Yeah. Sir, it's actually more of a bookkeeping question. Thank you for the opportunity. Sir, the book value per share that we disclose in our presentation is about INR 15.79 from June 26. If I calculate as per our net worth divided by the total number of shares, it comes to about INR 20.5. This is the kind of difference that we see in all the quarters and in all the time period ends. When we disclose the book value, sir, what is the kind of adjustments we are making when disclosing this book value? It will be some adjusted value, some adjustment would have happened. Can I come back on that? Yeah. Sure, sir. Sir, just what would be your full year guidance on the ROE? It was not audible. Can you come again? Full year guidance on? What would be your full year guidance for the growth as well as ROE? Growth on the advances side and the ROE numbers. See, our credit growth, we are intending to grow at around 13%- 14%. Okay. I always say that having said that, this is the minimum we want to grow. Beyond that also, we'll be growing. Last three years, we have grown in the range of around 20%, over last three years. Yes. 13%-14% is the minimum we intend to grow. ROA at 1.41%, that is, we are very comfortable with these numbers. Internally, at all point of time, we want to maintain it above 1.20%. Going forward by end of this year maybe, financial year maybe, we are looking at around 1.45%- 1.46% like that number. Okay. Sir, in your view, that would largely driven by, will it be NIM driven or a reduction in OpEx driven? Because credit cost seems to have bottomed out. It will be NIM driven. NIM driven. Okay. That would be because of the mix change. Because again, on the mix side also, I think we are maximum on the RAM side, already about 75%-80%. Yes. Will it be more liability side then, cost of deposit reduction? What would drive that NIM, sir? It will be both sides. It will be increase in interest income and it will be decrease in interest expenses. Both sides we have been working consistently. The same trend will continue, the same strategy will continue. NIM driven ROE will be basically driven by increase or improvement in NIM. Okay. You see a further upside because of the product mix. There could be some upside on the product mix, basically? Yeah, product mix, it depends on the type of requirement in which geography. That is a very dynamic thing. Our RAM is around 80%. We intend to maintain around that level. Okay. There is no pressure going forward on the cost of deposit or the cost of fund side, in the sense that it should not increase from here, at least. That's what we can see. In the foreseeable future, yes, of course, I do not see any increase because we are not too much reliant on bulk deposit. It's basically CASA driven deposit area we are focusing on. I think it will be at that level only. Around that level. Okay, sir. Sir, just one second. Sir, I believe in the last quarter you had mentioned that some corporates, you classified as RAM, if I'm not wrong. What would be the criteria of classifying some corporates as RAM? Or maybe that's the MSME side of the corporates. No. There is no definition or change in definition. Okay. The RAM sector also consists of big ticket loans in MSME and agriculture, around INR 300, INR 400, INR 500. Size-wise, they are equivalent to corporate, but classification-wise, they fall in agriculture or MSME. That is what I intended to say. As per RBI definition. That was the point I was trying to make last time. Okay. Thank you, sir. I'll fall back in the queue. Thank you. Thank you. Yeah. Thank you. Participants who wish to ask questions may press star and one at this time. The next question is from the line of [Kushal], an Individual Investor. Please go ahead. Hello, am I audible? Yes, please go ahead. Yes. The question was on fee income. In fee income, slide seven, there was a miscellaneous expense which was, there is a huge growth, like 423% QoQ. Can you put a light on it? Fee income? In fee income section, miscellaneous income. Miscellaneous income, it includes recovery from technically written off accounts. PSLC commission is there. PSLC commission, Priority Sector Lending Certificate commission, out of which it is mentioned here. You are talking of miscellaneous income. The second line it is mentioned out of is PSLC income. These two are the major components in addition to processing fee. Okay. Second question is on agriculture loan. How much agriculture loan is backed by gold and are we seeing any delinquencies? Or are we expecting it any? So far we have not seen any delinquencies in agriculture loan and going forward also we do not see any stress. On gold part? Gold part will be broadly around 40% of the total portfolio will be agriculture general loans. Okay. Looking at the loan book growth, last time we said 13%-14% loan book growth. Are we being conservative or what? No, we are not being conservative. We are giving you that this will be the minimum we will grow. Last three years the guidance has always been 13%-14%, we are growing in the range of around 20 21, 22%. Okay. Are we expecting this growth pace to continue? Yes, if everything remains normal, of course you can expect that. Okay, thank you. That's it from my side. Thank you. Thank you. The next question is from the line of Rana Aryan from Vright Aaryana Holdings. Please go ahead. Mr. Aryan, your line has been unmuted. Please go ahead with the question. As there is no response, the next question is from the line of Sumera Choksi from Indus Equity Advisors. Please go ahead. Yeah. Hi sir, am I audible? Yes, please. Sir, firstly my commendations on a good set of numbers. Just coming to two specific questions, I'll ask them together. Sir, versus the rest of the peer set, we've seen our NIM, ROA, ROE in cost to income has been pretty good. We've maintained that for a while. Aspirationally, because sir you've achieved such a good level, what's your outlook for the next year or so in terms of sustaining or even bettering this? Because I believe, sir, you've reached a level which is quite good, so how would you seek to improve from that? It might not be the easiest challenge, but I'm sure you guys must be prepped for it. Second, sir, in terms of both the asset liability franchise on digital initiatives, how are we looking at growing both our asset and liability franchise in terms of digital initiatives specifically? Any new projects we are looking to initialize apart from our stack we've already built up or something else that you have planned? This NIM, ROA, and cost to income part, I will address that part first. Of course, the level where we have reached, I will say that last six, seven, eight quarters we have been consistently maintaining and improving it also. The strategy, whatever we have thought of, planned, we have been successfully implementing it. Going forward also, we will follow the same plan with maybe little change or some moderation wherever required. If outside world there are no uncertainties, there are no challenges all of a sudden, unexpected challenges, if everything remains smooth and constant, of course these numbers you can see growth further going forward next financial year. Otherwise despite challenges like West Asia challenges, again it is looming large now. We are pretty confident that NIM we'll be able to maintain at around 3.3%-3.40% because of our inherent strength and the type of efficiency we have brought into the system. ROE also between 1.4%-1.5% we do expect in foreseeable two to three quarters going forward. Regarding assets and liabilities, digital side, of course without digital nothing moves in the system, in the banking system also. Everything from asset side also and liability side, most of the things have already been shifted to the digital path. We engaged one of the big four consultants three, four years back and the entire digital product processes, software, everything has got revamped to match with the latest expectations and requirement. As on date around 96% of the total transactions happen digitally in the system. Across the counter transactions are hardly 2%-3%. Lot of efficiency has come in through mobile banking, through net banking. Of course, UPI everyone does. We have created products and systems where people can apply for loan also sitting at home and sanction letter they can get within 10 minutes on their laptop or mobile. Throughout the country, anywhere, anyone can get a locker allotted digitally in two minutes' time. Account opening, customer onboarding, whatever happens, around 75% of the onboarding happens digitally. Lot of initiatives have been taken place and digital is that area where we cannot say that whatever we have done that is sufficient. Every day is a new challenge, every day a learning process, and we are on it, I can say. Understood, sir. Just one more question, sir. I believe in the news recently, and maybe you would like to shed some color on this. I think, in terms of our international operations, we received the IFSCA license for GIFT City. How are we looking at monetizing specifically more on our international options? If you could just shed some color on that. We got this approval around three to four months back, and we have started the process of opening it. Maybe another two months, it will come into physical existence. We will start the process. We are looking to build a book of around INR 500 million by end of this financial year through this GIFT City branch. INR 500 million is the internal budget. Okay, sir. Noted. Thank you so much, sir, for answering our questions. Thank you. Thank you. The next question is from the line of Ashlesh Sonje from Kotak Securities. Please go ahead. Hi again, sir. Thank you for the follow-up opportunity. Sir, I just want to go back and discuss the corporate loan book part again. Sir, if I go back to this INR 10,000 crores exposure, I'm sure you would have thought about whether we should continue the pricing competition. How did you arrive, and then what was the thought process in eventually letting it go? What is the objective function? What are you trying to maximize here? We do not want to do any loss-making business. It's very clear. For us, you look at the credit growth numbers, we have grown by 22%. Whether that is coming from corporate or retail or RAM or overall book, that is not material to that extent as to compare against that, at what pricing we are growing. Just for the sake of increasing corporate book at sub 7% rate of interest, we are certainly not interested into that. This strategy we are following over last more than two years very successfully. The idea is to maximize income and at good price where we have been able to match our cost of fund, cost of deposit. We are lending subject to, of course, asset quality should be good and stress and all those things are not visible. Very successfully we have been doing over last two quarters. You can see slippage ratio, hardly any slippage happens. That shows about the underwriting capabilities. Credit growth of 22% is happening. Color of money is same. Whether we are growing in corporate or retail, or whether we are earning from corporate or retail or MSME, overall NII is increasing, NIM is increasing, ROA is increasing. We are more focused on fundamentals and that, again, I will come back to that point only that any loss-making activity where that business does not make any sense to us, we generally do not venture into that. Understood, sir. That helps. Lastly, what is your plan on mobilizing FCNR deposits? How much have you mobilized already? We have already mobilized, as on yesterday evening, $300 million. Since the time this dispensation came and we created a new product on FCNRB. We are having four overseas centers and we are having more than 4.5 lakh existing NRI customers. We are reaching out to them through personal contacts, through SMS, through mails. We are extensively using our overseas centers and the new customers. As a result of this aggressive outreach, I will say, we have been able to generate round figure, $300 million as on yesterday. We intend to double it maybe by the time this dispensation period, which is coming to an end in September. By September, we intend to double it to $600 million-$650 million. That is the plan. Understood, sir. Perfect, sir. Thank you. That is very useful. Thank you. Thank you. The next question is from the line of Aditya Mundra from MyTemple Capital. Please go ahead. Yeah. Thank you for the opportunity again, sir. Sir, regarding that difference in the book value which you disclosed and as per the net worth, should I contact post the call or is there any view on that? We will get your number and we'll come back to you. Sure, sir. Sir, just one more bookkeeping question I had on similar lines. For example, our cost of deposit is about 4.7%, and our cost of funds is 4.85%. Generally, we have observed with the banks is that cost of funds is typically lower than the cost of deposits. Any particular reason that we will have a cost of funds more than cost of deposits? Is there a different formula that we have for it? Or maybe do we look cost of equity also in that? See, we have seen many cases where cost of fund is higher than cost of deposit, and cost of fund includes borrowing cost also. Borrowing as well as the equity cost. Yes. Actually, our cost of funds, generally it remains higher than cost of deposit. In spite of the equity cost being at zero. In spite of that. Yes. Okay. All right, sir. Thank you for that. The next question is from the line of Rana Aryan from Vright Aaryana Holdings. Please go ahead. Hello. Congratulations to the management for good set of numbers. In fact, very good set of numbers. My question is around capital raising and dilution outlook. IOB recently approved a plan to raise up to INR 5,000 crores by equity and INR 1,000 crores via Tier 2 bonds. The Government of India holds a massive 22.44% stake. My question to you, sir, is what is the precise timeline for the INR 5,000 crores equity raise, and will this be executed by QIP or a public offering to help satisfy SEBI's minimum public shareholding holds for you, sir? Sir, it will be through QIP only. Okay. We intend to go to the market in maybe more than one tranches in Q3 and Q4. Okay. All right, sir. My next question would be around historic asset quality movements. The gross NPAs fell to about 1.33% and net NPA at about 0.1%. This was supported by a tiny slippage ratio of 0.6%. The question that I have is, what is the full year credit cost guidance for this coming quarter? Credit cost for June quarter is 0.24%. Okay. We expect that for the full year, the credit cost should be around 0.35%-0.40%. All right, sir. Thank you so much and have a wonderful time, sir. Thank you. Thank you. Thank you. Participants who wish to ask questions may press star and one now. As there are no further questions, I would now like to hand the conference over to the management of Indian Overseas Bank for closing remarks. Thank you everyone for joining the conference and expressing your interest by way of raising queries on the set of numbers whatever we have generated quarter- on- quarter. I have only to add here that we are very consistent. We want to be known as a very consistent bank. Last 11 quarters of numbers, if you see, the things which are supposed to show positive growth, that is showing positive growth, and the areas, the numbers which are supposed to show negative growth, de-growth, it is happening accordingly. The consistency is the hallmark of IOB. Going forward also, I can assure you on behalf of the entire IOB team that the same type of consistency will be visible going forward also. We intend to grow both sides assets and liabilities by 13%-14%, and as I said, that is the minimum. We are committed to ensure good asset quality and slippages will be closer to minimum only. The capital adequacy ratio of 19.36%, that is against mandatory requirement of 11.50%. That shows the strength of the balance sheet. One particular thing which I would like to inform to all of you is that because of accumulated loss in the balance sheet, for last almost 12- 13 years, IOB was not able to declare dividend. I am very happy to share this information with all of you that those accumulated losses have been made nil by way of internal accrual of net profit plus netting of by share premium. In this financial year, we will be very happy to announce dividend, of course, in consultation with the board. Thank you for joining, all of you. Thanks a lot. Thank you, sir. On behalf of the Board of Directors and the management team, we sincerely thank you all for your participation and continued support. Thank you. On behalf of Indian Overseas Bank and Veritas Reputation, this concludes this conference. Thank you for joining us and you may now disconnect your lines.