Ladies and gentlemen, good day. Welcome to the Kotak Mahindra Bank Limited Q1 FY 2027 earnings conference call. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ashok Vaswani, Managing Director and CEO of Kotak Mahindra Bank Limited. Thank you, and over to you, sir. Thank you, Chhagan. Thank you so much. Good afternoon, everyone. Thank you for joining us this afternoon. I will, as usual, begin with some opening remarks before handing over to Devang, who will take you through the financial performance. Anup and Paritosh will cover the retail and institutional businesses respectively. Jaideep will provide an update on our subsidiary performance. For the quarter, the group delivered INR 5,480 crore in profit after tax, which is a growth of 23% on a year-on-year basis. Let me first talk about the bank and then the subsidiaries. The bank delivered profit after tax of INR 4,123 crore, up 26% year-on-year. I've always said we seek responsible and profitable growth. Not just growth for growth's sake. In the current environment, we have prioritized stability, profitability, and efficiency without any compromise to our overarching strategy around the four focus customer segments. We've calibrated growth in the low ROE businesses and businesses potentially affected by the geopolitical crisis. At the same time, we have taken advantage of better spreads in the corporate segment and volatility in the treasury markets. Our focus on the four customer segments, independent product businesses, and driving automation and digitization continues to drive strong results. Customer assets growth of 16% on a year-on-year basis was driven primarily by our focus segments SME and institutional banking. We continue to grow in absolute terms in the unsecured retail segment, with encouraging sequential flow growth now also seen in credit cards and MFI. Total average deposits grew by 14% on a year-on-year basis. Within this, our CASA and fixed rate SA book grew by 15% and 16% on a year-on-year basis respectively. This is despite CASA growth being affected by moderation in capital market deals. We continue to focus on increasing the granularity and stability of our deposit franchise. This is reflected in our cost of funds, which went up quarter-on-quarter by only one basis point. The discipline on quality of both deposits and advances helped us deliver steady NIMs at 4.53%. I had mentioned earlier that driving efficiencies through automation and digitization would be a key priority for this year. In Q1, our costs grew by 8% on a year-on-year basis, further reducing cost to total assets from 2.83% to 2.66% year-on-year. We will continue to drive this effort on an ongoing basis. Our operating profits thus grew by 10% on a year-on-year basis. Credit costs remained well under control at 46 basis points. As you know, we entered into a definitive agreement to acquire Deutsche Bank's retail banking, private banking, and wealth management businesses in India for INR 281 crore. The businesses comprise of 150,000 customers with INR 29,000 crore of advances, INR 16,000 crore in deposits, and INR 10,500 crore of wealth AUM. The transaction is a strong strategic fit with Kotak's affluent and SME franchise and is expected to be ROE accretive and creates incremental cross-sell opportunities. This is very much in line with our inorganic philosophy. While the transaction is expected to close in September 2027, this will help us deliver above-system growth rates. These inorganic opportunities continue to form an integral part of our strategy. Coming to the subsidiaries, profit after tax grew by 20% year-on-year, with standout performances from Kotak AMC, Kotak Prime, Kotak Securities, and our alternative asset businesses. Kotak Life also had a very good quarter. Geopolitical tensions impacted the capital market businesses, particularly investment banking. However, we have a very robust pipeline going forward. With this, the subsidiaries contributed to 33% of consolidated profit after tax. The consolidated book value per share increased by 14% year-on-year. The operating environment remains extremely dynamic, and there are several significant factors which will play out, such as FCNR(B) and ECLGS. This requires us to be extremely nimble and agile while maintaining our focus on the relentless execution of our strategy. With that, let me hand it over to Devang to take you through the financials in greater detail. Thank you, Ashok, and good afternoon, everyone. Let me take you through the key highlights of bank standalone and consolidated performance for Q1 FY 2027. Let me start with the standalone bank performance. Our end of period customer assets, including the credit substitutes, grew 16% year-on-year and 5% quarter-on-quarter basis. Q1 growth was largely driven by corporate and retail segments, and in retail unsecured business segment by MFI and credit card businesses. Our total deposits grew 12% year-on-year on year-on-year basis, while average deposits grew 14% year-on-year and 4% quarter-on-quarter, within which the average current account balances grew 15% year-on-year, average fixed-rate savings account balance grew 16% year-on-year, and average term deposits grew 14% year-on-year. Bank delivered a profit before tax of INR 5,463 crore, which grew at 25% year-on-year, with operating profit growth of 10% of INR 6,131 crore. The key contributors to profitability were NII growth of 9%, fee income growth of 11%, consistent improvement in cost-to-asset, which reduced from 2.83% to 2.66%. Reduction in credit cost from 93 basis points in Q1 last year to 46 basis points in this quarter. All of the above resulted in increase in return on asset by 20 basis points from 1.94 to 2.14. On a sequential basis, PBT grew 2%, while operating profit increased by 5%. Net interest margin for the quarter, 4.53, remained consistent with Q3 FY 2026 and adjusted Q4 margin. As you would recall, we had reported 4.67% NIM margin for Q4, but as it happens at every quarter four, because of the anomaly in the number of days, the adjusted margin for Q4 was 4.54%, and therefore the margin for the quarter one and the last three quarters, that means Q3, Q4, and Q1, remains at 4.53%-4.54%. Cost of fund was stable at 4.46%, similar to the previous quarter. Non-interest income for Q1 included dividend from subsidiaries and FX higher gains. In comparison, as you know, Q4 includes higher income from distribution of insurance product. Trading gain on fixed income book, net of OIS and FRA accounted during Q4 FY 2026 got reversed in Q1 FY 2027 with market movement. The staff cost increase in this quarter reflects impact of annual salary increment and reversal of Q4 benefit and retirement cost arising from movement in the discount rates. Coming to the operating cost, bank continues to invest in technology, which continues to be around 13% of our total cost. Q4 operating cost included elevated marketing and brand awareness spending. Coming to the asset quality, the gross NPA reduced to 1.18% vis-à-vis 1.2% on a sequential quarter basis. Net NPA of 0.27% as against 0.25%, and the provision coverage ratio continues to remain over 78%. Credit cost for the quarter stood at 46 basis points compared to 39 basis points in quarter four. Repayments increased to INR 1,321 crore from INR 1,018 crore in the previous quarter. While the unsecured portfolio continues to show improvement, the increase in credit costs and slippages was largely driven by commercial vehicle and tractor finance portfolio, reflecting seasonal trends on expected lines. As of June 30th, the bank's network stood at INR 140,924 crore, which includes INR 9,701 crore of mark-to-market gains on strategic investments. Of this, INR 1,592 crore gain accrued during Q1 itself. These gains, as you know, have been recognized directly in the AFS reserve, have not been routed through the profit and loss account. ROE for the bank is 11.98% for the quar ter with CET of 22.4%. If we're to adjust the mark-to-market gain on the equity investment, which I just said, the ROE actually improves to 12.8%. Overall capital adequacy ratio of the bank is 22.8%. To sum up, the quarter performance reflects stable margin, continuing improvement in the operating efficiency and normalization of credit cost. Moving to the consolidated businesses, customer assets stood at INR 635,812 crore, growing 16% year-on-year. The group investment in AUM increased to INR 8,05,531 crore, an increase of 8% on a year-on-year basis. The consolidated network stood at INR 1,88,214 crore at 30th June, while the book value per share increased to INR 189 with a six-year CAGR of 17%. Consolidated PAT is at INR 5,480 crore, which grew at 23% year-on-year and 5% on a quarter-on-quarter basis. This, of course, including the gains on Infina divestment which we had. Q4 FY 2026 subsidiaries performance was impacted by adverse market movements, which were largely reversed during Q1 FY 2027. Jaideep, of course, will take you through the performance of our key subsidiaries in greater detail. With that, I hand over to Anup to discuss the highlights of our retail businesses. Thank you, Devang. I will take you through the retail business commentary. Our strategy remains anchored on two focus customer segments, high-net-worth individual and Core India. The HNI franchise comprises of private banking and Solitaire. It is a relationship-led business focused on deepening customer experience, relationship, and increasing wallet share. Solitaire's premium proposition continues to deliver strong outcomes. As of 31st March 2026, the bank managed a combined relationship value of approximately INR 12.78 lakh crore, contributed by 78,200 families. Kotak 811, the Core India strategy, continues to be scalable digital-first platform for customer acquisition, life cycle engagement across branch, sales, and our corporate salary channels. Engagement has strengthened through differentiated offerings such as metal debit card, Super X, and four-in-one bundled propositions. Kotak 811, the Core India strategy, delivered a 32% year-on-year growth in savings balances, now contribute to 12.7% of bank's total savings book. These two segment strategy is reflected in the continued momentum of our liability franchise. For quarter ending June 2026, CASA grew 13% year-on-year. Average total deposits grew 13.6% year-on-year. Moving on to the asset side, mortgage, home loans, and loan against property remain central to building long-term relationships, particularly among affluent and self-employed customers, while enhancing value through associated deposit buildup. Supported by improved distribution, faster turnaround times, and enhanced digital journey, the mortgage portfolio grew at 15% year-on-year. Gold loan, which remains a small business but is a significant important focus area for us, has continued to gain traction, supported by distribution buildup at the branches and significant process improvements. The bank's unsecured retail lending portfolio, comprising personal loan, business loan, credit card, and microcredit, continues to drive engagement portfolio yields while maintaining disciplined risk management. The unsecured retail portfolio grew INR 707 crore in absolute terms this quarter. Personal loan, business loan, and consumer durable grew 5%. It still has some impact of rundown of the Standard Chartered portfolio. Otherwise, the growth has started in double digit. Excluding this portfolio, PL growth remained double digit as I spoke about. The credit cost has come down significantly in our unsecured. Traction is expected to improve, supported by distribution initiative, offerings such as PL overdraft to our Solitaire and HNI customer, in addition to personal term loans. The credit card portfolio has been strategically restacked around right product to right customers philosophy. While Solitaire continues to scale among affluent HNI and private banking, Air+, Cashback+ are gaining traction in emerging and mass market segments. Rising incremental acquisition and healthy spend trends supported by 4% quarter-on-quarter growth on spends versus flat to negative trends seen after the embargo. Retail microcredit grew 10% year-on-year and 5% quarter-on-quarter, following 8% quarter-on-quarter growth in March 2026, with credit cost declining due to risk-based underwriting within our appetite and coverage under full CGFMU scheme. This scheme is important in setting off future risk cost. In tractor finance, which we run like a non-bank model, in a way, the bank retained its position as the second largest tractor finance in India with 11% year-on-year portfolio growth. However, we remain watchful of any adverse weather condition impacted by El Niño. Our digital strategy is built on two focused app platform, Kotak Mobile Banking for affluent NRI and business and Kotak 811 for Core India's everyday banking needs. This dual app strategy enables tailored experience, stronger customer relevance, and deeper digital engagement across segments. Investments in technology across retail business are delivering lower acquisition, servicing cost, reduced branch congestion and improved service level, strengthening the scalable growth and improved customer experience. I will now hand it over to Paritosh to take you through the wholesale and the SME bank. Thank you, Anup. I will now take you through the performance of the institutional businesses. Our SME and institutional propositions continued to drive growth while leveraging the group's diversified financial services platform. The SME franchise, which accounted for 24% of the bank's advances, strengthens primary banking relationships and delivers diversified balance sheet growth. The institutional business complements this with a capital-efficient fee-based model that generates higher ROE. During the quarter, fee income from corporate bank grew 27% year-on-year and contributed 20% of the bank's total fee income. Cross-selling investment banking and institutional brokerages products added about 85 basis points to corporate banking ROE during this quarter. Corporate banking delivered healthy growth this quarter with the loan book growing 15.5% year-on-year and 4.8% quarter-on-quarter. Credit substitutes too grew at a strong pace of 27.2% year-on-year and 37.6% quarter-on-quarter. We continue to focus on granular expansion. Mid-market business continued its momentum this quarter with strong customer acquisitions. Growth was driven primarily by granular working capital lending while maintaining prudent risk selection. In large corporates, we continue to focus on profitability through higher cross-sell, flow-based business, and deeper transaction banking penetration. Our trade book grew strongly driven by domestic trade, supply chain finance, and continued digitization. Gift City continued to scale both trade and non-trade loans and grew strongly this quarter. Asset quality across customer segments continues to be resilient. Now let me move to beyond balance sheet. In the institutional business, we continue to strengthen fee-led businesses. Fee lines including FX grew strongly this quarter while debt capital market maintained a strong momentum with a healthy pipeline. Our collections and payment franchise continued to expand through technology investments and deeper client engagement. Capital markets businesses, including investment banking, institutional equities, and custody, were relatively muted during this quarter due to FII outflows and geopolitical uncertainty. However, we continue to maintain leadership position across these businesses and have a robust pipeline. Through our SME franchise, we continue to build a relationship-led business model. The franchise delivered healthy growth during the quarter, with advances growing at 20.5% year-on-year and 2.6% quarter-on-quarter to about INR 1.26 lakh crore. Growth was driven by healthy working capital demand, new customer acquisitions, and deeper wallet share with existing customers. Asset quality remained resilient through disciplined underwriting. The bank has also been an active participant in the government's ECLGS program, supporting MSME and businesses by extending close to INR 3,000 crore of ECLGS credit till 30th of June 2026. Turning to the commercial vehicle and construction equipment business. The business is managed as an independent product business within the bank and accounts for about 9% of advances with a portfolio of approximately INR 45,000 crore. In the commercial vehicle space, the first quarter is seasonally weaker than the preceding quarter. We maintained a cautious stance amid heightened geopolitical uncertainty while continuing our disciplined risk selection. In construction equipment, industry conditions remained soft, though actively improved towards the latter part of the quarter. Recovery will depend on improved raw material availability and a pickup in government spending. Finally, we continue to invest in enhancing our digital capabilities. Our fyn platform continues to witness strong traction, with active users increasing 37% year-on-year. We further strengthened our digital merchant and collection capabilities, while digital loan disbursements and the proportion of customer servicing requests on a DIY journey continued to increase substantially. I'll now hand over to Jaideep to take us through the subsidiary performance. Thank you, Paritosh. Good afternoon, everyone. Let me talk about our subsidiaries now. In Q1 FY 2027, our subsidiaries reported profit of INR 2,022 crore, up 20% year-on-year, contributing to 33% of our consolidated profits. This reflects strength of our diversified and fully integrated financial conglomerate structure. With 100% ownership in subs, the group retains the entire profit and embedded value. The unique strength of this model lies in Kotak's ability to both manufacture and distribute every major financial product within a single platform. The PAT growth for the quarter was partially aided by reversal of the MTF loss recognized towards the end of March 2026 on capital market-linked equity investments and movement in ease during the quarter. I'll start with the lending subsidiary, Kotak Prime. Kotak Prime PAT for Q1 2027 stood at INR 354 crore, up 30% year-on-year. The business continues to benefit from healthy growth of 11% in customer assets to INR 45,960 crore while maintaining a disciplined approach towards portfolio quality. On the capital markets side, Kotak Securities delivered a strong quarter with PAT of INR 533 crore, up 14% year-on-year. The cash market share improved to 10.4% from 9.8% sequentially, while derivatives market share increased to 15.9% from 15.3%, with the overall market share rising to 13.8%. Interest income also benefited from growth in the MTF book with market share of about 14%. Q1 FY 2027 was relatively muted for our institutional capital market businesses, that is Kotak Institutional Equities and the investment banking business KMCC, due to subdued primary market activity. However, we continue to maintain our leadership position in these businesses. On the asset management business, the Kotak AMC and Trustee Company PAT for Q1 2027 stood at INR 399 crore, up 22% year-over-year. This was on the back of average AUM growth of 16% year-over-year, which stood at INR 609,499 crore. The scale of this business continues to translate into strong cost efficiency and operating leverage, supporting healthy margins and steady profitability through the cycle. On the alternate asset business, Kotak Alternate Assets continues to be one of the leading domestic alternate asset managers in India. Q1 FY 2027 PAT stood at INR 126 crore, up 112% year-over-year, largely driven by gains from exits during the quarter. On the insurance side, Kotak Life Insurance shareholder's PAT stood at INR 336 crore, up 3% year-over-year. The gross written premium grew 28% year-over-year, reflecting good momentum in the franchise. The retail term assured grew 57% year-over-year, reinforcing our focus on protection-led growth and long-term value creation. I'll now request the operator to begin the Q&A session. Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touch-tone phone. 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 will wait for a moment while the question queue assembles. Your first question comes from the line of Piran Engineer with CLSA. Please go ahead. Yeah. Hi, team. Congrats on the quarter. Thanks for taking my question. Just firstly, can you talk a bit about trends in the CV segment, more importantly in terms of collections and what are you waiting for in this space to kickstart growth again? Yeah. Hi. This is Paritosh. See, the CV segment, we have been consistently seeing improvement in our collections. As I'd mentioned during my commentary that Q1 is a little slower compared to Q4, the growth has been muted. We expect that with the right selection between different segments, we should look at it going forward. Can we hit 10%, 12% growth this year at least in this segment year-on-year? We don't really give a forward guidance on the growth, but I would say we will maintain the market share. Understood. Just, sorry if I may follow up on your point. When you're saying you see improvement in collections, is it at a level where it used to be one and a half years back, or is it still above steady state levels? As in, are slippages still above steady state levels? I think I would say, our slippages are reducing, and we have been maintaining the pace of improvement quarter on quarter. Understood. Okay. Thanks. Secondly, on personal loans, again, here the book was flattish quarter on quarter, and this is when we called out two quarters back that personal loans is now fine. How do we really read into this? Hi, P iran. This is Anup here. When you look at the personal loan that comprises of personal loan, unsecured business loan, and consumer durable, all in together. On the personal loan side, last year we had a Standard Chartered portfolio bought in, so that of course is running down faster. If you net that, the growth on the organic personal loan growth is quite strong now. That is the first. On the unsecured business loan this quarter, we have been little more cautious because of whatever issues we are seeing on the SME side because of three months back, things were looking very bad. At aggregate level, we have started growing on a PL. You'll start seeing numbers improving from here because the organic growth is now on double digit plus, so that's my point. Okay. Organic loan book growth is double digit plus. Yeah. On the PL side. Consumer durable obviously is a business we now don't focus on. Got it. Just lastly, your customer count has been declining for the last few quarters. It was 54 million a year back, 50 million today. Is it just simply an MFI thing sort of cleanup, or is there something to read into this? Yeah. A couple of reasons for that. One is there is an MFI cleanup, and two, also some amount of dormant and inactive customers which we're just kind of closing out. Yeah. In fact, that's a protective measure to make sure we don't get into that mules kind of problem. It's more of a cleanup of the book. Understood. Okay. Yeah, that's it from my end. Thanks, and wish you all the best. Thank you very much. Thank you. Your next question comes from the line of Kunal Shah with Citigroup. Please go ahead. Kunal, how are you? Yeah, all good. Particularly on the deposit side, across the board, if we just compare amongst the private banks, there has been this step up on the deposit growth, be it on end of period as well as the average deposit growth has been quite strong across the board. For us, maybe we had seen some moderation out there. Maybe what would be the strategy highlighted? We touched upon a lot in terms of the different initiatives on the deposit side, it appears that amongst the top four banks, in fact, we still seem to be relatively lower in terms of the growth. How do we tend to address that both on the average as well as EOP? On that basis, maybe what is the LCR for the quarter? It appears maybe we would have seen some decline in the LCR. Yeah. Okay. Kunal, hi. Anup, here. On the deposit strategy for us continue to remain multi-pronged, driven through four focus segments, which we spoke about, and it continues to yield results. As a bank, we place greater emphasis on average balances rather than end of period balances. Overall average deposit grew 13.6% year-on-year, while average term deposit grew at 14% year-on-year. Our average CASA balances grew 15.2% year-on-year. Trade and transaction balances continue to witness good traction during Q1 FY 2027. However, this quarter, growth in CASA was impacted due to moderation in capital market activity, which resulted in lower deal flow related balances. Moving specific to CASA, average fixed deposit CASA balances grew 16.4% year-on-year, again, very granular, reflecting strength of our focus customer segment strategy as seen in our granular low-cost deposit mobilization. As I already spoke about the 811 CASA who grew 32% year-on-year, again, fully granular, which now accounts for 12.7% of total CASA. Similarly, we continue to see good traction on the HNI and Solitaire segment. However, this quarter, we saw some moderation in balances, primarily driven by flow movement from private banking segment of reallocation of funds from savings to investments. To that extent, these are one-off, but we continue to remain focused on granular, focused on average rather than EOP. That will continue to remain our strategy because that flows into straightaway to optimize the cost of funds rather than a template number of EOP. Kunal, like last time you checked, you kind of asked the question on increase in deposit rates in longer tenure buckets and will it have an impact on our cost of funds. You can see that our cost of funds has only gone up by one basis point. It has had no such impact. Exactly as we had mentioned. Yeah. No, true. That's commendable that margins are sustained. Yeah. That's good enough compared to the guidance which was there in the last call or maybe the trends. That's good enough. Secondly, when we look at it now, credit cost, even in, say, seasonally slower quarter, we had seen it settling much at a lower level. Now being comfortable on the asset quality on the delinquency trend, would we look at stepping up on the advance growth as well? We have seen some uptick in, say, corporate, SME, some of the unsecured segment, MFI and all. All around when we look at it's been still 15%, 16% odd for quite a while we had seen other banks stepping it up beyond the industry average. When do we see that? Because there is a lot of comfort on asset quality. Kunal, I think you should look at it as multiple kind of perspectives, right? The first thing, yes, we are very comfortable with where we are from a credit perspective, right? A lot of the hard work over the last two years to clean up the credit card portfolio, PL portfolio is now behind us. We are very comfortable. It's within our guardrails. It's all working quite well. Okay? Like we've said, unsecured, we will continue to grow. In INR terms, we'll continue to kind of do that. As Anup mentioned, business loans, we were a little cautious this quarter because of all the stuff that's happening, because of the supply chain disruption and impacts of that. We will continue to grow where we get opportunities and think about growth. Don't think about growth only in one quarter, right? Think about growth over a certain period of time. Both organic growth and inorganic growth, between organic growth and inorganic growth, we will deliver nicely over the system kind of growth rates on advances, both secured and unsecured. Including the inorganic one? Including inorganic. Okay. Got it. Got it, yeah. Thanks. That answers the question and all the best, yeah. Thank you. Thank you. The next question comes from the line of Ankit Bihani with Nomura. Please go ahead. Hi, Ankit Yeah. Hi. Thank you for taking my question. My question is first on margin. If we look at the reported margin decline of 14 quarter-on-quarter. I think last quarter there could be some day count impact. If you could share, if you normalize the day count impact, what would be the decline? The second question is, does our margin commentary now change, given that we have seen the wholesale funding rates also come down? The funding environment is set to improve from here on. Any comment on that? Hi, Ankit. Devang here. As I had indicated during Q4, the adjusted NIM as against 4.67, if you were to adjust for the day count, it would have been 4.54. Therefore, if you see, in fact, my colleague is reminding me, in fact, since Q2, if you see Q2 was also 4.54, Q3, which is December quarter, was 4.54. If you look at the March quarter, which is equivalent of 4.67 is 4.54, and for this quarter it is also 4.54. The margin has remained actually consistent. In terms of the future part, I think there are very multiple variables which are governing the outcome of this and which are constantly changing. We would not like to provide any specific guidance on the NIM going forward. This doesn't change your guidance, basically, which you had provided in Q4. Anything on that? You did provide some guidance in Q4, right? Yeah. The guidance was at that point of time, but as you know, after that, so many things have changed, right? In terms of whether FRB- No, one second, Ankit, one second. We didn't provide guidance. Yes. We basically said that there's an industry commentary and there was a Kotak-specific commentary. I think some of it got mixed up. We said on an industry basis, we will see some margin decline. By the way, we were absolutely right for Q4 and Q1. We said as far as Kotak is concerned, because we've got multiple horses in the race on the deposit side, and we'll manage the asset side in a nimble fashion, we will be fine. That's exactly how it's played out in Q4 and Q1. The commentary about margin decline, I repeat, was an industry issue, not a Kotak-specific issue. Okay. That's very clear now. I missed out on the LCR part. What is the average LCR for the quarter? we report- For the bank. We report the group LCR, which is actually increased from 134% in the Q4 to 143%. The reason if you know that we were of course having significant liquidity at March end itself. From first April, as you know, there are norms on LCR have changed, which has effectively added approximately 9%-10% incremental LCR. While on an average basis, depending on the advance and deposit mix-up, actually it is showing an increase. I think for the month of June and going forward, it will obviously start utilizing as we efficiently utilize this LCR amount to fund our balance sheet growth. Okay. On the standalones from the last quarter you had highlighted it was 125%. This quarter, any number on that for the standalone bank? Standalone, I think again, the advantage for this increase in this thing came only in the standalone. The standalone Q4 average will be around 125%. Okay. When Q- No, I'm sorry. Q1. What I meant is Q1 is Yeah. It's 125%. Q1. Yes. Okay. Thank you. Thank you. The next question comes from the line of Rikin Shah with IIFL Capital. Please go ahead. Hi. Thanks for the opportunity. Just had two questions. The first one, Kotak's loan and deposit growth is now about 350 and 150 basis points below the system respectively. Despite having excess capital and lower scale, why is there a bit more unwillingness to accelerate without diluting the ROEs when some larger peers are able to deliver this? That's the first one. Second question is on Deutsche's portfolio acquisition. Could you talk a bit more about the profitability of the business acquired in terms of ROE, et cetera? You did provide all the other details. Just was curious to know that the comment on ROE being accretive for Kotak, was it because of the excess capital being put to use or even if you could just provide some colors on ROEs as well. That's it. Thank you. Yeah. See, look, as far as the asset growth is concerned, our focus always has been secure, profitable, and responsible growth. Responsible and profitable growth and not just growth for the sake of growth. Right? We focus on growth in high ROE kind of businesses and businesses which from a credit perspective are good. Right? Like I said, I don't think you should look at advance growth just for one quarter. Look at it for a longer period of time, and between organic and inorganic, we will comfortably drive over system-level kind of growth. Right? I think deposit side, Anup took you through a lot of detail on how we're thinking about it and how we're driving. We continue to be very focused on the core customer segments. It's worked really well for us. It's granular, it's low cost. You can see that we've maintained margins, therefore we are driving both growth on the asset side and on the deposit side in a sensible and a profitable and responsible kind of manner. As far as Deutsche is concerned, these are opportunities that come along. Like I've always maintained, we look at every single inorganic opportunity there is. The first question we ask ourselves, does this strategically make sense? Deutsche is 150,000 customers, affluent and SME customers. Two of the customer segment focus areas, which we are very focused on. Strategically, it makes a lot of sense. It's a pretty sizable transaction, INR 29,000 crores of advances and INR 16,000 crores of deposits, INR 10.5 thousand crores of wealth AUM. It'll add meaningfully to the Kotak kind of transaction. Yes, we definitely believe that the price at which we've paid at INR 281 crores, this will be ROE accretive to us. The transaction actually closes in September of 2027, the full contours of the transaction will only be got to know there. I'm not going to hazard a guess as to what the RO will be. Obviously this will, as we grow the balance sheet to this extent, it will consume some of our excess capital. Also, as we look at the Deutsche portfolio that goes into our core focus segment philosophy of Solitaire HNI, that strengthen that franchise. It's a great fit for us from a customer segment point of view. 150,000 customers. Yeah. 150,000 HNI Solitaire customers will come around. SME Solitaire. SME, yeah. Just to follow up with clarification on the second one, Deutsche. Sir, if I may. While of course, I understand you can't talk about the transaction ROA down the line, but what was that in FY 2026, if you could share that? I also had one additional question, if I may. In terms of the new CEO appointment, given your announcement, what should be the next steps and the potential timelines that we should be looking forward to? Deutsche Bank, I don't know what ROA they made. It's difficult for us to quote that kind of number. I don't know that point. It's also a function at what price we bought it, right? As you know, we bought it at a pretty attractive price at INR 281 crore. As far as the CEO succession is concerned, it's pretty straightforward, right? It's as per the RBI timeline and the regulatory timeline that has been kind of set down, and the board and the NRC are totally committed to making sure that gets done within the regulatory timeline. Rikin, this is Paritosh. Just to go back on your point about asset growth. If you see this quarter, we have grown our corporate assets and SME assets. Corporate and the credit substitutes. We found the market gave an opportunity. Short-term yields had gone up, we took an advantage and grew our credit substitutes group by 38% quarter-on-quarter. Even corporate book also has gone up very significantly. SME, we continued with our growth pace. That's what I want to say, that we will look at opportunity, and if there is an opportunity, we will capture that. Fair. Thanks, Paritosh. Just one correction. I had mentioned the LCR. The LCR for standalone bank Q1 on an average basis is 134%, not 124%. My apologies. Thank you. Thank you. Your next question comes from the line of Pranav with Bernstein. Please go ahead. Thanks. Thank you for taking my question. My question is more on the Core India segment, which you highlighted as a key area of focus for you. What percentage of your 811 customers would have a credit account or credit relationship with you today? Because you do share the contribution of 811 to SAR. What would be the equivalent on the credit side? How high do you think it can go, and what will it take for the bank to get there? Look, we don't disclose exactly the credit card numbers against the 811 segment. What we have disclosed in the past is that when we got too aggressive about it, about three, four years ago, that did not pay very rich dividends. Right? I think the way you should think about this is that these are customers who are giving us low-cost, granular SAR deposits. If we can just add any other product, whether that is a lending product, whether that is an insurance product, whether that's an investment product, whether that's a brokerage kind of product, the profitability and the SAR balances go up dramatically. Right? The focus is not so much as putting a credit card product. In fact, a credit card product is a very complex product, and customer education around how a credit card works and stuff like that is not an easy thing. Even when we get to lending products, the initial focus is on personal loans, and only after the customer has gone through a bunch of personal loans do we start getting into credit cards. Also, the one thing I must mention is for this customer segment, what has worked really well is secured credit card, and that's doing quite well for us. No, my question was just broader credit. Just trying to understand what% of these customers would be a segment that you're comfortable lending to. Sure. With the very large base that you have right now. Just trying to understand what percentage. I think, as Ashok said. Lend to the customer. Yeah. What's the lend to the customer base in that whole market? Yeah. As Ashok said, we don't disclose that detail. If you think about these two key segment, focus segment, when you say Solitaire and HNI, you think about it as a value economics When you think about core India, which is essentially mass affluent, which is the largest part of India's unit economics. In a way, it will have the products which are more digitally given and digitally served, but more smaller lines. Over time, what we are seeing is as their CASA buildup is very granular and very strong, you will start getting annuity benefit even on credit. We are cautiously growing it because the idea is we want them to go through the credit understanding and responsibly give them credit to grow. Over a long period of time, if you start thinking on medium term, this is superbly accretive. That's how you should think about it. Understood. Thank you. Thank you very much for taking my call. Thank you. Ladies and gentlemen, in the interest of time, we request all participants to limit themselves to one question each and rejoin the queue for any further follow-up questions. Our next question comes from Sumit from Goldman. Please go ahead. Hi, Sumit. Hey. Hi, team. Hi, Ashok. Congrats on the quarter. Just a couple of questions. One is if you can talk about the impact of ECL, both one time and on a flow basis. Second is. Sorry, on what? The ECL transition. Yeah. Expected credit loss transition. That's the one-time impact on net worth, as well as what should be the increase in credit cost on a steady state basis. The second question is on FCNR. How are you thinking about that opportunity? Any targets that you have? Have you launched the product? Any clarity on that will be helpful. Thank you. Hi, Sumit. I will take the ECL question. As I indicated earlier also, the one-time impact of the ECL transition is less than 2% of our net worth. On an ongoing basis, we expect the credit cost to go up by about 12 to 15 bps once implemented. Yeah. Sumit, FCNR is something which we are quite excited about. Clearly, there is a lot of customer demand from NRIs. The question that we are really talking about is how much supply we can build up for providing leverage. Two, if you get a mix of three-year and five-year money, what do you do about it at this end? Early days yet, we are working through it. I think it's an encouraging start. We should have a much better picture in the next month or so. Got it. Thank you. Thank you. The next question comes from Chintan with Autonomous. Please go ahead. Hi. Thank you for taking my question. Can I come on credit substitutes? It's up 38% quarter-on-quarter. You said you saw opportunities there. Could you tell us a typical duration of the product? How do you see the timing of how much it stays on the book? That's question one. The second question, just to follow up. You told us average deposits grew 13%, average TDs grew 14%, average card grew 15%, average SAV grew 16%. I'm just trying to square the circle. If the average deposit is 13% and all the components are higher, what was the moving part that we have missed in this bridge? Thank you. Let me take the question on credit substitutes. A large part of the growth has come from short-term. A large part of the corporate bank advances are short-dated, and we saw opportunity when commercial papers were providing far higher yield compared to bank loans, and we moved quickly and captured that opportunity. Also, as you would know, on commercial paper, when you invest in credit substitutes or CP/CD, NCD, you do not have a PSL cost end of the quarter. That's a further benefit and it doesn't get counted in ANBC for the next year PSL calculation. To answer your question specifically, large part of the growth has come from short-dated paper. On your deposit question, I think we had mentioned only about the fixed rate SAV. The floating rate SAV balance average has gone down by 18%. That explains your missing point, which is what is reducing. Slide number nine. If you see slide number nine, it shows floating rate Savings Account, which is reducing by -18%. Thank you. If I may slip in one more, just if you can comment on the competitive dynamics in the quarter. Have PSU banks stepped back in any areas in the last quarter or any products where you see less intense competition or more intense competition? That would be helpful. Thank you. I would not say we've seen less intense competition. In fact, I don't think we should build our strategy, our thinking, on a less competitive environment. We actually have to excel and just expect over a period of time competition only to get stronger and better. Thanks. Thank you. We request participants to limit to one question each and rejoin the queue for follow-up. Chhagan, you're breaking out. How about now, sir? Is it audible? It's better. Perfect. Thank you so much, sir. We request participants to limit themselves to one question each and rejoin the queue for any further follow-ups, please. Your next question comes from Seshadri Sen with Emkay Global Financial Services Limited. Please go ahead. Hi. Thanks for the opportunity. Just a quick question on the personal loan business. In terms of profitability and sourcing, I know you don't break it out in the results, but how is the trend? Is the ROA starting to expand now? On the sourcing side, are you seeing more internal sourcing as the years go by and going forward? Out of that, how much is digital sourcing versus branch-based sourcing? Hi, Anup here. Personal loan as a product, our focus is significantly internal sourcing because that's most accretive in terms of cost of doing business. A large part of it is either through the digital asset strategy, which I spoke about the 811 strategy or Kotak app strategy for both the core segments, and a very large part of the business also happens through our branches. In addition to that, I also spoke about in addition to the personal loan term loan business product, we have also introduced the personal loan overdraft product, which we believe is a very good product for the affluent segment. In terms of the return equation, there is good. As a business, you need to be very careful about risk there. Our risk numbers are now quite good and tolerable. As long as you maintain the few basic principles here and take out the cost of doing business, doing efficiency, it remains very accretive. Grow it at a very value compounded rate, not do it too very fast, not too very slow. Keep your eye on risk. My question actually is the trend because, say for example, credit cards, we see the listed company, their profitability has been declining structurally for now seven, eight years. Are you seeing similar trends at a profitability level? Because the headline yields on personal loans are declining as well. I take that you are getting benefit of cost and credit costs, but the headline yields are also declining. Your question was around credit card as well? No, it was on personal loans. I gave credit cards as an example, but the question is personal loans ROAs, are they improving, declining? No, I think we continue to maintain range bound and as Ashok said, the focus is on responsible and profitable growth and not growth at any cost. Understood. Thank you so much. Thank you. Your next question comes from the line of Param Subramanian with Investec. Please go ahead. Hi. Thanks for taking my question. Just one question. Your yield on investments, on a calculated basis, it appears to be dropping for the last two, three quarters. What exactly is happening there? Because even in this quarter, I think the investment book has grown 11%, but the interest on investments has not grown and neither has the MTM and treasury profit is not reflecting it either there. I think investment yield also goes through the number of days concept as the advances I explained. That is, we need to make adjustment according to them as well. Q4 will be higher similar to the advances similarly for the investment as well. It's more a function of the average balances or is the yield really dropping in the investment? No, it is the number of days. It is the number of days which actually makes up everything. It basically evens out over the year. Okay. Maybe I'll take this offline. Yes. Thank you so much. Yeah. Thank you. Your next question comes from the line of Jai Mundhra with ICICI Securities. Please go ahead. Mr. Mundhra, your line is unmuted. Please proceed with your question. Yeah. Hi. Good afternoon, sir. Thanks for the opportunity. Sir, last time you had shared your outlook for NIM for Kotak Mahindra Bank and maybe for the system. If you can refresh that will be very helpful. Thank you. Yeah. Jai, like we said, last time we talked about the industry and what the NIM we thought was for the industry. By the way, we were completely right, both for Q4 and for Q1. We do not give any guidance as far as Kotak NIM is concerned. Like Devang said Q2, Q3 Sorry. Q3, Q4, Q1 has largely been flat. Right? I mean, it's a difference of one basis point or so. Right? It's very difficult to give guidance, particularly with all that's kind of going on. Okay. Sure. Sir any timeline for you to achieve the mid-teen number of unsecured loan? I mean, that has started to grow up in absolute number, the unsecured retails. How fast or how quickly can you reach to, let's say, your desired 15% or mid-teen number? Thank you. Look Jai, you got to be a little careful of these percentages, right? I don't want to hold back secured loan growth just to make a percentage. Correct? What I try and do is I'm trying to grow it in rupee terms, like we promised, we said personal loans will come first out of the gate, then we'll see growth in microfinance, then we'll see growth in cards. It's worked out exactly like we talked about for the last four or five quarters. Right? We continue to say that we will grow in rupee terms, eventually the percentage will be really a function of both the growth in rupee terms as well as the growth in the secured book. We're not going to hold back secured just to make a percentage. Okay. Sure. Thank you, sir. Thanks and all the best. Thanks. Thank you. Ladies and gentlemen, in the interest of time, we take that as our last question for today. I would now like to hand the conference over to Ashok Vaswani for closing comments. Yeah. Guys, thank you so much. Really appreciate your being here. I know this is a heavy day for you, so I'm going to let you go and listen to the other calls as well. Thanks a lot. Bye. Bye-bye. Thank you, members of the management. On behalf of Kotak Mahindra Bank Limited, that concludes this conference. Thank you everyone for joining us, and you may now disconnect your lines. Thank you.