Ladies and gentlemen, good evening, and welcome to the Q1 FY25 Conference Call. As a reminder, all participant lines will be in the listen-only mode, and 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 then zero on your touchtone phone. Please note that this conference is being recorded. We have with us from the management, Shri Nidhu Saxena, Managing Director and Chief Executive Officer, Shri Asheesh Pandey, Executive Director, Shri Rohit Rishi, Executive Director, and all General Managers of the bank. I now hand the conference over to Shri Nidhu Saxena. Thank you, and over to you, sir. Thank you. Good afternoon, and thank you everyone for joining this con call. And we are here with the Q1 performance for FY ' 24, '25, and data by this time has reached, you must have also seen that. So broadly, I will just in my opening statement talk about few parameters, and then straightaway we can go for the queries and your questions and answers. So our total business has seen YoY growth of 13.5%, stood at INR 4.76 lakh crore. Advances grew by 19 at INR 2.09 lakh crore. Total deposits grew by 9% YoY, stood at 2.67. CASA also has seen a growth. Current grew by 10%, SD grew by 6%. Term deposits also have YoY growth of 12%. CASA share is 50%. Then come to the advances. Advances 19% growth, within which RAM segment also experienced a high double-digit growth, and retail grew by 25, Agri by 15, MSME, 20. Corporate book also has grown YoY 39. My GNPA, NNPA numbers we are maintaining at a very healthy level, and there is no challenge. We are maintaining around that level only. Whatever guidance we have set for ourselves for this FY '24 '25, on all these parameters I have discussed. So we are in line, in sync with the guidance that we have kept for ourselves. Certain areas of concerns that we have identified and which are, I consider also not specific to our bank, but in the system, we are seeing that the credit growth is outpacing the deposit growth, and there is a stiff competition in this segment. And we are also trying to see that we get retain our share and get some additional share of deposits, which are my raw material, to fund and fuel this growth in the credit, where we are seeing a lot of traction in each of our RAM and other segments. My slippage and the asset quality are well within my comfort zone. Yes, we are mindful of these parameters. None of the parameters should be slipping, and we are very confident and very happy that this is again a set of another good quarterly results that bank has come up, which is a performance now consistently coming for last 13, 14, 15 quarters, and we are maintaining that trend without any deviation in any of the, you know, outlined parameters. My PCR stands at a comfortable 98.36. CD ratio has improved to 78.17, which I consider at a healthy level. There are some initiatives we are taking, especially for deposits. Maybe I have a quick mention on those. So we enjoy a lot of government departments, ministries and entities bank with us for their current and saving deposits. So we are, as I last time spoke about creating a vertical new business acquisition, that vertical, headed by a general manager, has been given the complete machinery, and they are working, and I am able to see some green shoots out of their efforts. So traction is seen, and we are now further going one level, ahead, to see that we can strengthen this outreach. So my existing client is- Sir, your audio is coming a bit off, like a magnetic sound. Should I disconnect, connect? What do you suggest? Sir, I can, we can do that. We'll disconnect, and I'll call you back once again. Okay. Ladies and gentlemen, the line for the management is not clear. Please stay connected while we reconnect the management line back. ... Ladies and gentlemen, thank you for patiently holding. The line for the management is reconnected, so please go ahead. Yeah. Thank you. Sorry for that little interruption. Technology gives us a lot of challenges, so treat this as that, one of that challenge. Now, coming back to where we got disconnected. So as I said, some initiatives in the area of deposits. So very quick steps that we took to see that there is no flight of deposit from my bank to, you know, other players, because as I said, due to intense competitions, some banks are giving allurements with higher rates of interest. So we also had worked out some special schemes as per my ALM requirements and gave them some better rates, so there is a retention of my deposit, no flight. Also, we were trying to focus through this enabler, can we get more deposits, more customers added to us? So new CIF IDs that added with this scheme is what we are actually focusing on. Then, as I said, we have some government relationship, departmental relationships. We are reaching out to them, existing, both new relationships, and trying to understand from them, how to deepen the relationship or what is that we can do to solve their, any issues while they are doing their, basic banking needs. So, things like... We encounter that there is a requirement for integration. Some, you know, they, they run some ERP and they have some APIs through, which they can connect with us, and we can solve their, you know, transactional issues, while transactions can... So a lot of technology can take care of their basic needs. Keeping that in mind, we have created a cell, and whenever there is a reach out from that new business vertical and requirements are coming, so they are being looked at at office in a defined timeline, and we are able to get the objective of getting this, you know, existing relationship further deepened and new relationships, we are able to see some green shoots are getting established through this vertical. We are also looking at the very powerful channel in the, you know, digital efforts from any lender today is the mobile banking app. So we are upgrading our app for many features, and rather there is a process wherein we will be revamping our entire mobile application, and we will be through a lifestyle banking solution, which we'll be launching as a new version of our existing mobile app. So we are, all these small initiatives also will be ultimately you know helping the bank in easily onboarding clients, making them active on our digital channels. My video KYC functions even on Sundays and holidays, which probably my sense tells me that it's a differentiator for Bank of Maharashtra, that on the liability side not many banks have taken initiatives. Digital journeys have been on the asset side, but my video KYC is working fine, and I'm giving that option 24/7 on Sundays and holidays. So I'll, wherever I'm maintaining some relationship with some organization entities, I'm seeing that whether I can give this comfort of them opening the account on a Sunday holiday at their convenience, so which is also going to help me. We are looking at few more initiatives, which I can quickly talk about. We want to see that how that co-lending portfolio that we are holding, how it can be further strengthened. We are exploring. We have done some tie-ups, and we are exploring more tie-ups with the high-rated NBFCs, where the risk, governance and other things are well managed. The business is properly getting conducted. We would like to join such NBFCs. For my infra funding also, I'm trying to see the term term lending institutions, can I partner with them? And where they have the expertise to assess proposals in the renewable sector, in the infra sector, and I can participate, and I'm getting some leads that, yes, this is possible, and there are projects where they have given the initial term loan, COD s achieved now, or some operative account is required, some escrow mechanism is required, and we can, that's how build our relationship with these term lending institutions in India and onboard our infra book also, further. We have been also talking about verticalization. We have created a lot of verticals to centralize operations, centralize processing of loans, and see that we get good underwriting done in the bank, and these centralized operations will help us have a clearer oversight on these critical functions of underwriting, monitoring of loans, and seeing that my asset quality and the monitoring is done properly. So these verticals going forward, we are only going to strengthen. And then, yes, we have looked also at product level, so lot of new products for the segments in the deposit like segmented products for Ultra HNI, HNI, NRIs, some trust associations, clubs. We have existing offerings, but we are going to improvise and see that the products are found attractive. And then the process of onboarding themselves is also completely happening seamlessly. We have also looked at our retail loan schemes. We have mostly revamped most of our schemes, make them more market friendly while seeing that the risk that is there is properly addressed. So, in the recovery, we have been doing consistently quite good, but, like, for write-off, our recovery for full last year was INR 1,000 crore, but we keep a target of INR 1,250 crore-INR 1,500 crore this year. In the write-off book, I have a write-off book of INR 20,000 crore, and my total write-off plus NPAs is INR 24,000 crore. So board has approved us an NDND scheme, where I can on very liberal terms do the OTS with these this thing. So up to INR 1 crore is what my board has approved. INR 8,000 crore is the portfolio that is eligible under this NDND scheme, and out of my INR 6.22 lakh NPAs, I have INR 6.18 lakh in NPA accounts, which are eligible in this scheme. So there'll be a lot of small accounts which we can clean up through this exercise. We are trying to see that how we can ramp it up. We have around 500-plus properties which are with me through physical possession. So we will do, we have started the exercise. Maybe by September, we'll come with a mega auction of these properties, where my success rate is always better. So 2025 is the success rate if it is a physical possession property that I'm selling and trying to dispose of through auction. So we will do all these initiatives also to see that the more traction is coming in our balance sheet and we get overall advantage. I think this is broadly from my side, and since all the information presentation is there with you, we can open for your Q&A, please. 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 their touchtone 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. Our first question is from the line of Rohan Mandora from Equirus Securities. Please go ahead. Good afternoon, sir. Thanks for the opportunity and congratulations on good set of numbers. So my question is on slide number 24. If you look at the market risk weighted assets, that's come down to INR 426 crore from INR 7,500 crore last quarter. Probably this would be on account of the recent change in regulation. So then if you can help us understand what will happen on the investment book in this, and also because the yields have moved up sharply on yield on investment. So if you can explain how the recent circular is impacted on the investment portfolio, that's one. Second, yields on advances have declined by 18 basis points Q- on- Q. So is there any one-off here or what explains the decline? And third, if you can just share your observation on the agri portfolio, how is it behaving? Any delinquencies there? So that yield part, there is a slight decline, but it has no other reasons. But, if you recall the regulatory guidelines, that the penal interest, which is, earlier was part of that, is now not charged as a penal interest. It is towards the charges. And, that is one of the reason, this change in the regulatory guideline, which has impacted, this yield. It's a minor dip and has no specific reasons other than this. I think I'll ask my CFO to take the next, Yeah. The first question. Regarding market risk, as you know, as per the new investment guidelines, in respect of HTM and AFS, there is no market risk. Credit risk will be applicable. That's why we could save INR 7,500 crore plus. And market risk, there was an increase in credit risk by INR 1,600 crores. So this is the impact of the new change guideline. Talking about yield on investment, ... You know that, as per new investment guidelines, the RBI now, they are not allowing shifting of the security from HTM to AFS. Earlier, the banks used to shift the high-yielding security from HTM to AFS, and they used to sell to market and the trading portfolio on the higher side. Definitely, when you are selling your high-yielding security, your yield on an issue will come down. Now, because of new guidelines, most of the banks, all the banks, including us, we have not shifted. So this has protected our yield. Of course, you will see that the interest income from treasury has increased, whereas the trading profit has come down. As regards to agriculture, everyone says, there is a growth, you would have seen that 35% growth is there. Of course, this is the sector where the stress is high, NPL levels are high, but it is on the reducing trend. Now this time it is 7.88, and whatever growth we are doing, it is now we are doing away with farm credit, and we are going more into the investment credit, like cold storages and, food processing units like that. So we are taking the balanced view of this, and we are controlling the stress also. Sure. So just on the market risk weighted assets movement, so what you explained was, on the HTM and AFS, credit risk was applicable even earlier, and now after the change in regulation, it is applicable on HTM? Yeah, it is applicable, but market risk would not be there. So that's why you will find that, market risk, in March 2024 was INR 7,540. It has come down to INR 426 crore. It is only applicable in respect of the HFT portfolio. Okay. HFT portfolio. Got it. And, sir, lastly, this- Yield is there, we have also created higher-yielding securities. It is also impacting positively the yield on investment. Got it. it. Got it. Yes, sir. Go ahead. Go ahead. Sure, on term deposits, sir, I believe that a good amount of term deposits should be auto, would be getting auto-renewed for us. So just want to understand, what is the proportion of such deposits and at what rates do they auto-renew vis-a-vis the peak rates offered? So, yes, the trend is always towards the, unlike the cost, the saving, TD is a price sensitive issue. But 20, 25 basis, if market offers more, my client who has been banking with me for years may not, you know, they may... All of them have exercised the auto-renewal option, and automatically at the due dates, the renewal is happening for them, and whatever the applicable rate is, you know, for the tenure it is getting renewed, will apply in the fixed deposit. But we, we are mindful of this, so we have to also see that our retail customers are getting adequate, you know, returns vis-a-vis the market. My scheme should be competitive. So for that reason, what we have done is, looking at my requirements, specific requirements as per my ALM, I have created buckets of 400 days, 666 days, 777 days, and we have offered them something more than the which is applicable to the retail investor. So that becomes a incentive for them, too, and they are able to, on maturity, retain the mostly it, it may get auto-renewed, or the customer can exercise the option of closing that FDR and then moving it to these special schemes. And when, of course, there's that 20, 25 basis incentive to them, but I'm also fulfilling my ALM. As per my need, I am taking those... I've created those buckets as per my requirements. Sure. So essentially what I was saying- Sorry to interrupt. Mr. Mandora, may we request you return to the question queue for follow-up questions? Sure. Thanks. Thanks a lot. Thank you so much. Our next question is from the line of Darshil Jhaveri from Crown Capital. Please go ahead. Hello. Good evening, sir. Thank you so much for taking my question. I'm sorry, sir, I just joined the call a bit late, so maybe you've already spoken about it, but could you just give me the guidance for our current year, sir? Guidance for? For our asset growth, forward. Okay, okay. Yeah. Yes. Sure, we didn't, don't worry. Guidance, it is total business. We are keeping a guidance for this year 16%, and my advances, within which would be growing at the rate of 18%-20%. Deposit, I know it's very competitive, so guidance we have kept is 12-15. CASA, we maintain around 50% CASA share. My RAM verticals, RAM to corporate will be 60-40 ratio, and there'll be ±2 basis. My interest income growth, 18%-20%. NIM, for the last two quarters, we have achieved a NIM of 3.97, but we are mindful of, the, you know, the impact which may be created, tomorrow if a rate cut is given. So a NIM guidance of 3.7, 3.75-3.9, we should be maintaining that. Non-interest income also is growing, and we keep a guidance of 15-20. Cost to income, I am 37-38, and I'll keep it below 40. ROA, we are, we have clocked 1.72, but the guidance of 1.5-1.6, we are comfortable to maintain that. GNPA is below, it is 1.85% around, and we will maintain it below 2. NNPA between 0.2%-0.25%.... So these are broadly what the guidance I would like to share. My CRAR between 16%-17%. The credit cost, sir? Credit cost is 1%. Okay. Okay, fair enough, sir. I just wanted to get, you know, maybe like an idea from you that what kind of major, you know, you know, kind of roadblock or, you know, like a competitive intensity is there in deposits or anything else that you would like to share that, you know, can, you know, as on a macro on a business industry level, that can be problematic to our bank? So if it is the deposits you are trying to ask, so this point definitely was discussed, but I can very briefly tell, yes, this is a very intense competitive area. Now, every lender in the system is also seeing that credit growth is outpacing the deposit growth in the system, and I'm not out of it, and every bank is getting that same impact. So what we are trying to look at is I enjoy a lot of patronage from my clientele, so I am trying to reinforce that, first of all, and then we are taking a lot of initiatives around to deepen this relationship, taking care of their other banking needs. So that relationship, you know, is strengthened and we reinforce ourselves that there is no takeover of this kind of, you know, business of my clients. Then over and above that, we are taking some proactive steps that we will be moving to get new clients added, new customers added, whether in the retail segment, whether in the institutional segment. Both require a different set of strategies. So my products are getting strengthened. We are improvising our products. We are introducing new products. We are looking at facilitating the onboarding process, making it more simpler, more easier. So I spoke about the initiative of video KYC working for me seven days a week. So even on a Sunday and a holiday, any holiday, the customer can take this option and onboard himself or herself by opening the account. We are revamping our mobile banking application, which we know and we consider that is a very powerful medium today. The most used channel among the digital channel is the mobile banking app. So that is getting strengthened, and we are rather in the process of introducing an entire new lifestyle banking option, where I'm targeting by September, December, the first few set of services will be onboarded, and where we'll be able to showcase and give to our clients much, much easier, more, more number of services through that application. So, okay, okay, fair enough. Thank you so much for detailed answer. Yeah, that's it from my side. All the best. Thank you. Thank you. The next question is from the line of Bunty Chawla from IDBI. Please go ahead. Thank you, sir, for giving me the opportunity, and congrats on a good set of numbers. Sir, as we have seen historically, there has been a strong improvement in agricultural NPA, which has supported us in terms of credit cost and improvement in the ROE. Now, the scenario around farm loan waiver, which is cutting, and specifically, if I talk about the Maharashtra state, there has been announcement from the government that there should not be any CIBIL score for the farm loans. So how one should see the impact of this agri NPA going forward, and specifically credit cost and asset quality and ultimately the ROE impact next year and next to next year? Thank you. So a little bit, my general manager recovery has spoken about the agriculture, that we have, you know, migrated, deviated ourselves from doing KCC loans, farm loans to going for towards investment credit. So to certain extent, that takes care of my problems. Yes, these developments does have impact on our recoveries also at times. But we are also trying to track and the monsoon predictions this year are, you know, towards normal or above normal rainfall. And all these things ultimately lead to better crop output, and we don't see major challenges coming out from this segment. And so far, whatever is there for us, it is agri NPA has been continuously getting reduced. Things are well within control, and if this monsoon is favorable, I think going forward, we don't see a major challenge, building up for, any banks for that matter. Sir, I agree from the incremental basis, agree, and we have been focusing on the NPA on the investment agri side, on the investment portfolio. Already we have done a lending to that. Have we taken care in terms of 1% credit cost, which we have guided for? Have we taken some bit of increase in NPA, which we are seeing in the agri portfolio? Yeah. So you see that, during this quarter, so additional INR 300 crore provision in the standard provision we have made, that is for the agriculture. As you told that, you know that agriculture is subject to natural calamities and waiver, you talked about that. So we are also mindful of such things, and when your balance sheet is strong, you can create such provisions also. So that, we already have created provision, and this quarter, roughly INR 300 crore, we created provision in the balance sheet to take the unforeseen shocks. Great. Great cost is higher today because we are providing almost everything. You would have seen that our PCR is 98.38, and then entire thing is being provided, net NPA is 0.20. So that makes my rate cost more. Regulatory requirement, rate cost is absolutely below 30- Point four. 0.4. So that will, conservatively, we said one, because we are keeping this trend of overproviding everything to reinforce ourselves. ... Okay, sir. Lastly, on the infra book, if we have seen, there has been a good, as a percentage of advances, there has been an increase from last two years. And now this infrastructure provisioning, which part, which has been the circular from the RBI side, any rough estimate we have done, any calculation on the provisioning part on that, on infrastructure? As per the draft guidelines, sir, we have estimated, it is coming around, marginal, around INR 490 crore, okay? But as per the draft guidelines, the provision also be there if it is implemented starting from 2025 to 2027. That's over a period of three years. So if I make it, INR 490 crore over a period of three years, our impact is very less. And alternatively, we also come, done some analysis, whereas since this additional provisioning, we can pass on to the increasing interest to the customer for maximum to 0.4%-0.5%. Sorry to interrupt, sir. Have I heard rightly, INR 490 crore you said? Yeah, INR 490 crore, and roughly our additional provision will be there. As per the RBI draft guidelines, that provision also we can pass on to the over a period of three years, starting from 2025 to 2027, if at all this guideline is implemented, okay? That is why currently it is a draft. That is why I'm telling this INR 490 crore, we can pass on to the over a period of three years. Alternatively, we also see that, yeah, we have the option that we can give some additional provisioning to increase our interest rate to our customers who are coming under the under construction phase. That analysis, based on our analysis, we have seen that we can increase the loan pricing by 0.4%-0.5%. Yeah, Chawla ji, actually, if you see mostly the infrastructure and construction related loan, their construction risk is there. There is always two set of rate of interest. One is the pre-COD and post-COD. So generally, the difference between the two somewhere lies between 0.5, approximately. And certainly when you know it is a guideline sort of, then the depending upon the competitiveness, depending upon the rating of the company, and depending upon the other participants in the industry. So certainly there is always a chance, you know, where you can pass on this. So that is the assessment which us in our bank and also the other banks which they have done and discussed. Thank you very much, sir. That was very helpful. Best of luck for the future. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please restrict your questions to two per participant. If you have a follow-up question, you can rejoin the queue. The next question is from the line of Ashlesh Sonje from Kotak Securities. Please go ahead. Hi, team. Good afternoon. Two questions from my side. Firstly, on the recoveries from written-off accounts, have you already started using the NDND scheme for your OTS? Because your recovery from written-off accounts is fairly high in this quarter, at INR 470 crore. Yes. Yes, this scheme is already there. We focus on the small accounts for recovery and written-off accounts. And this quarter, what you referred, this more recovery is also because of one account which was actually previously recovered, having some legal causes there, and that is why that is accounted this quarter. But averagely, our recovery is around 1,000-1,500 we envisage in return of accounts. What was the quantum of this one large recovery? INR 200 crore. Okay. Sir, secondly, what is the conversation that you are having currently with the RBI around the ECL provisions? Any, any clarity on the timeline and calculation methodology? The RBI issued a draft guidelines, but still there, it has to be finalized. And we have been submitting the half-yearly pro forma financial statement to RBI, where we are crunching the ECL numbers. So looking to the our probabilities and the time mandate given by the RBI for amortizing the EC, that ECL provision, we are quite comfortable. Sir, the question is around the timeline for implementation. Any clarity on that? Implementation, that, it is up to RBI when they come with the final guidance. But at our side, we are keeping ourselves ready. Already, we onboarded Oracle for this software and E&Y for the implementation, and take another nine months to 12 months to start the thing. Perfect, sir. Just one last data keeping question. What is the amount of provisions that you are carrying on the restructured advances? On the outstanding provision. Roughly, it is INR 250 crore. Okay, sir. Thank you. Thank you. The next question is from the line of Ashok Ajmera from Ajcon Global. Please go ahead. Thank you for giving me this opportunity. Congratulations, Nidhu sir, and the entire team of Bank of Maharashtra for yet another good set of numbers, sir. Sir, I have got some data points and some observations. Data point is, sir, if you look at our balance sheet, the reserves and surplus is INR 14,083 crore, as compared to the March INR 12,593 crore. So INR 1,490 crore, our net worth has gone up, our reserves and surplus, whereas the profit is INR 1,293. So this is INR 197 crore, which has been added to the reserves and surplus.... Is it on what account? Is it because of the change in that investment that the profit of the AFS book goes to, up to market goes to the reserve or any other reason for this? You rightly said, this is on account of the appreciation which has gone to the reserve. You know, as per the guidelines, whatever the AFS gives, Yes. - that will go to general reserve. So it has strengthened the reserve on subject. And, second point is that, keep that appreciation, you cannot take back in P&L account. That's why you see that trading income is muted, in the first quarter of the year. Is that entire INR 197 crore, or it has element of some other items also? Mostly it is that, appreciation in the investment group. So now coming on the credit and the business growth of Bank of Maharashtra over last almost three years, 3.5 years, is known for its excellent, performance or accelerated growth. You know, the time was there when CASA was 55%- 56%, the credit growth was 26%- 28%, and equally the deposits were also good. But of course, I can understand that the bottom line, I, I mean, the, the base also has gone up. So now we are coming slowly, little on the lower side. Like in this quarter, our credit growth is hardly 2.65% or something. So you have given the target of 18%-20%. So how do we actually intend to grow our credit portfolio from here? Because if it is only 2.5% now, are we, are we growing by 15.5% in remaining 3 quarters, planning? And how do, how do we achieve that? This is on the credit side. And on the deposit side, we are declining on the overall deposit book as compared to the March. I think it has gone down by about INR 3,000 crore. So that is also equally a very, very important point, though you have maintained the target of CASA 50%. That's a very welcome move. So on both this deposit and credit growth, the overall business growth, what are your actually the plans and how do we increase the credit and under what segment? Because the agri is already too much, and our MSME book is too low as... I mean, especially the medium, if you leave the small and micro. Your comment, sir. So, Ajmeraji, absolutely there is no cause of concern is what we are looking at. Because maybe the Q1 is always a muted quarter, quarter, which is, in the industry seen with, you know, muted, a lot of activities on it, this movement of the staff, annual transfer exercise, all these have some bearing and impact. We also had the general elections and, these things actually, little bit, disruption gets, created in the, normal functioning. So, Q1 is, performance is no worry for me. If I look at the YoY also, so YoY growth, that has been achieved in advances is 19%. So this quarter, June 2023, also had similar challenges, June 2024 had the same set of challenges. We have done a YoY growth of 19% in credit, so it's not a major cause of worry for us. But yes, going forward, we have to look. See, you rightly pointed out that for some, 2.5, three years is what you said, I think, or three, 3.5 years, we have been performing at certain level, and we have been generating those numbers. We also, going forward, want to now become a bank of greater significance. So maybe if we have to grow in size, we, we will have to also open up to new opportunities, new areas, and then we have to look at how we, you know, currently, maybe we are doing selective basis. We'll have to open up and maybe the kind of NIMs that we command, what do we do with that? Whether we enter into new areas to grow in significance. So those kind of challenges will be there, which will be keep debating and working out. But I don't foresee this Q1 muted performance, where Q-on-Q YTD growth is what you pointed out is not a worry point for me. Replying to your other area, this thing, RAM Corporate, we have a guidance for ourselves, 60/40, and this Q1, it was 61/39. So we are within that guidance, and we will see lot of, we see lot of traction coming for retail advances, and we are growing there under each of the segments of RAM. There is no problem. Yes, the private CapEx cycle, which we all have been discussing at several forums, those things have yet to be seen, and I think couple of quarters ahead, that also will come and then we'll get more and more opportunities. Currently, we are trying to look at infra, renewable, you know, portfolios within Infra, LRD. These are areas where the government PLI is there. Those sectors are our preferred sectors. So we are focusing on them, and as and when demand is coming from these sectors, we are there to participate as per our appetite and see that what we are able to gain for the bank. So going forward, growth will not be a challenge, and specifically, a lot of initiatives around, you know, products, the processes, our turnaround time in communicating decisions. If we are improving on those, using as much as possible technology, I see there will not be a challenge to, you know, become bank of greater significance. And we have, you know, we are also mindful that today, we want to see that when we grow, this growth is sustainable one. And we should not, we should have a strengthening of our risk and governance and, you know, technology structure is strengthened to let me take care of the technology risk, the cyber risk. So we have, keeping all these things in mind, we have recently gone for a, you know, specialist recruitment, where 195 officers will be onboarded in the risk management, the Treasury, the Forex, the risk, and the technology. So this will all help me strengthen my risk and governance culture, compliance culture, also strengthen my, technology structure that is there, and ward myself, you know, to properly guard myself from the technology risk, that we are seeing in the, this thing. So, with all this, we are properly, I think, moving in the right direction, and, growth and a sustainable growth is what we are targeting. Point well taken, sir. My, sir, one point is on the, we have a COVID reserve, you know, for a, I think for last almost two years, one and a half years, of INR 1,200 crore. Do you have any, and even auditor also has pointed out in the measure, in the emphasis, that we have a COVID-related provision of INR 1,200 crore. Do you have any plans to, though our provisioning is within control, but in order to show a better profitability as compared to other banks, do you have any plan to use this, part of this, COVID provision, which no more is required and no chances of as such, of any contingency on account of COVID is there now, of this INR 1,200 crore, any plans for that? My second thing, little more information on the... We have been talking about digital and tech front, but, you know, like, earlier there used to be a report in our quarterly results also, that how many cycles have we completed? What is the kind of budget which was there? How much have we consumed? How much budget do we have, and where are we heading finally on the technology front? So these are the two things, sir. So two parts, I think, sir. The part one is, my silver jewelry, family silver or whatever we call, which we'll keep the... If you look at broadly the guidance which is coming, the advices which are coming from the regulators, not only India, world over, that when the good times are there, you may create extra provisions for yourself. And so you start plan, you plan for, you know, bad times that may hit you later on. So we have been just following that, strategy. Good times are there, so we are keeping, extra provisions on that, and we don't intend to, touch on those things because my operations and we should, intention is that every quarter can we just add up to that. So we live with that same philosophy, that good times you should plan and make extra provisions more than what regulatory prescriptions for you know times when they change, when the times to move towards the hard times. I think for the technology, I will ask my ED to respond, budget and other things. Anything you want to add, Srivastava Ji, on the provisioning part? To supplement MD sir, he's actually said, these are our silvers. We, in this quarter, we have also added INR 300 crore in that silver. Yeah. When the MD sir have told, when good days are there, you try to accumulate the things, so that can be consumed by days. So we are not seeing bad days for the longer terms also. So we will continue to accumulate such provisions in our books to strengthen the balance sheet. Sir, yeah. Ajmera sir, coming to your, the second one on the digital front. Yes, sir. Yes. We always share that, you know, what is our budget and utilization. So last three years, this year it is almost INR 1,000 crore approximately, which we are having. And, if you see our, on the technology front, last 2.5-3 years as I take, then all our three switches, which is one is a EF2 switch, we have already migrated. The second one is a Fi switch, we have already migrated. Now we will be in a position to onboard almost 9,000 bcs in a phased manner in next six months to one year period. So, and with more than 100 services. So that Fi switch recently only, I think some 15 days back, we have migrated. The third one, UPL, we are in line in that. Now, coming to the DC, DR and near DR, all the three are, you know, not upgraded, even shifted to the best, best in class. So that is the second point. The third is that most of the our cloud and the what we say Nakshatra 2.0 and for cyber security covers 2.0. So we have now invested huge. All these RFPs are on the closure side and moving to implementation side. Still, because as our MD sir has said, that we have plans to, you know, deepen the relationship and also to give good onboarding, convenience to the customers. So on that, three, four things are very much required. One is the CRM solution. The another is the lifestyle banking, covering both mobile and this, and the third is the Microsoft entire suite. So Microsoft, we are on the verge of now implementation, GIP is going on. The entire audit, because when we talk about growth, certainly when we are asking about 28%-29% growth and the other things, then we need to have a good GRC mechanism. So our entire audit package is now launched, almost six modules, and now another six months' time. So we are going with the 19 modules in that audit package. So coming to the... I think these 4- 5 things- ... which are the major ones. These RFPs are almost closed, and we are in a process for issuance of the purchase order and implementation as well. So I think the upgradation of the entire infrastructure, not only software, but even hardware. So we have refreshed, and it is all on the implementation side. This is the position latest as of now. Thank you very much, sir, for such an elaborate explanation. Because, you know, the bank is, Sorry to interrupt. Actually, yeah. Okay, okay. All right. Thank you. The next question is from the line of Yuvraj Choudhary from Anand Rathi. Please go ahead. Good afternoon, sir. Thanks for the opportunity, and congratulations on a good set of numbers. Sir, can I get some color on the Agri book? Like, how much would be the share of KCC loans, and how much of the Agri book would be based out of the state of Maharashtra? Thank you. Agri, see- Agri. Agri book, as I already explained, that we are now concentrating more on investment credit rather than farm credit. But still the percentage of growth is there. It is almost 35%. And we are growing in Agri ancillaries, third highest, 38%. As far as KCC is concerned, sir, concentration in Maharashtra is almost 60%, and other than Maharashtra, it is 40%. What, broadly, what was explained, that from, we are moving from production credit to investment credit. Yeah. Focus is towards that. Sure, sir. Thank you. Thank you. The next question is from the line of Bhumika Jain from Desvelado Advisory. Please go ahead. Congratulations, sir, for a good set of numbers. My question was firstly, there is a cost of deposits increased by 10.3%, so what can be the reason for this? [crosstalk] Cost of deposit increase. Cost of deposit has come down. Cost is, if you see, the cost of deposit has come down from 4.86-4.72. It has come down. This is on account of that, we are having the higher average CASA. Whatever CASA we got in March, it was with us, larger portion was with us up to 15 June, and it has helped in keeping our cost of deposit on lower side. Okay, sir. Okay, my next question was, also the capital adequacy ratio has also fallen, so what can be the factors contributing to that? Also, the market cap, firstly, the credit and operational risk has been increased, so that can be included in that, but market risk has fell from 7,500- 426. That's a lot, like, more than 100%. So, can you tell me what the breakdown of that? You know that this year, this quarter, we have not raised any capital fund, and in July, we have raised the fund. So because of there is a dip in the CRA ratio. And yes, there is an increase in credit operational risk, because you know that in operational risk, the new year we have added. So your profit for 2024 will be added while computing the operational risk, so it has increased the operational risk. Regarding market risk, as per the new investment guidelines in the script of the HTM and AFS, market risk would not be applicable and... But the credit risk has increased, and since our advances has also increased, some credit risk has come from the advances side. So overall, if you see, despite not raising the capital, we are able to maintain CRAR above 17%. Okay, sir. Capital adequacy, capital adequacy. I'll just add to what my colleague told is not concern at all, because we are much above the regulatory prescribed, and my guidance is 16-17. We are standing at 17.04. What he just mentioned in on 4th July, we did a raise of INR 1,000 crore. That takes my CAR, CRAR to 17.7. Yes. So we are comfortable, madam, in that. Okay. Okay, sir. Also, I wanted to ask, how do you plan to navigate and stay competitive given the rising competition in your industry? Like, you told me, about some things like, a few minutes back, you told the video KYC thing. Video KYC thing is also available on Sundays. So, what other, like, pointers that, your company is makes you different from others? Right. So see, there are two broad components. One is the asset side, one is the liability side. What we are looking at is the products that we offer in both the segments, asset and liability. So we are looking individually at the products and which is the segment in the market where we want to reach out, and whether my existing product is, you know, of making some value propositions for them or not. So we are looking at, first and foremost, the product improvisations. We also in the process are finding that there is new sector, new segment, which is growing, or there is a new segment which is not well taken care of currently by the bank, and can we introduce new products for them to reach out to them? So that also effort, you know, Ultra HNI, HNI clients. We are trying to look at segments of NRIs. So we will come up very quickly with new products. Products are there, but can we have some more tailor-made schemes that will appeal to them? And then second part with products, so products on the liability side, similarly on the asset in the RAM, we have done a review of all our existing products in the retail, agri, and MSME segments. So all the schematic products have been reviewed, and we have, you know, for the ease and convenience of our field functionaries, and also helping them to explain these products to our clients who come and visit, or we reach out to them to explain. So master guidelines are given, and this guideline, you know, for whatever circulars that were issued on that particular scheme, they're all consolidated and just like RBI comes with a master guideline, and every July they reproduce whatever circulars, even if no change is there, they will give. So all one guideline comes in one place. So that has been done. So small, small things, and there is a long list of these kind of initiatives. Ultimately, all aim to see that the client gets a good experience, get a value, and it's easy to onboard to our system. My field functionaries are properly empowered. They are able to easily market and spend their energies in new customer acquisition. So those kind of initiatives are there around products, around processes. So, processes which are easy to onboard, there is no cumbersome. So that, one small thought came that why this video KYC cannot work on a Sunday and holiday. In cities, where most of us are, you know, having no time, in Mumbai, where we can get, so if we give them the option that on a Sunday, you can come and you can do the video KYC functioning and, you know, between 10-6, my video KYC officer is available, and they'll help the entire process of onboarding. So suppose one organization we have reached where there are in the payroll business is allotted to me, and I get 500 employees to be onboarded. So that's how we can use technology. We will make a link and send to them, and they can simply click the link as per their convenience, do the entire account opening process at their ease. There is no manual intervention. Branch is not to reach out. The account completely starts functioning, and we are able to send a account opening kit. So as granular things as, you know, the account essentials, our passbook, how does it look like? Our debit card, does it, you know, give a smart look and the way the clients of today would want it, if we are reaching particular segment. So we are even looking granularly to that levels that my account essentials, card, checkbook, payslip, and these things, whether they are all updated and, you know, customer onboarding is totally frictionless, seamless. So these kind of initiatives, both on liability and the asset side, using lot of technology for all these things wherever possible. So while my ED has spoken about, you know, broadly the structure, the technology structure, we are having DC-DR, Near DR and all those. We are also looking at every spend on technology, how it is making life of my client easier. So with that, I am sure the technology and the returns on my investment through technology is going to, you know, start coming in, in a better fashion. Okay, sir. Madam? Sir, uh- Just, just to supplement, like, you know, say video KYC, we have already launched some 4 or 5 digital journeys in the earlier quarters. Now we are again, you know, tested and now POC is also done. We are about to launch another 4 or 5. So what happens, you know, when you come to a digital journey, so like video KYC, so compliance is done basically within the journey itself, point number one. Point number one, my staff gets free, you know, because it is digitally done. So e-KYC and all, it will be done. Third is the customer convenience. So similarly, I think the in public sector space, Bank of Maharashtra is one, where, you know, the robotic process automation, we have implemented 46. So 46 are live, in which 8-10 are straightaway customer facing. So, you know, within the minutes, their resolution, reconciliation is done. Around 15 are under development. We are close to, probably by September, we'll be close to 60. So that is the second, and third, we are having the cluster approach or a targeted market approach, whether MSME or whether on the retail side. So these are the few, and we have one digital business zone, which is having target of INR 5,000 crore. Already, they have achieved INR 2,500 crore. They only do business digitally, so they don't involve the people in the field functionary. Okay, sir. Also, the last question is, I want to know your company's mode, like, what thing the Bank of Maharashtra is providing that your peers aren't? So, differentiator for the bank is what you are. So yes, I think, see, it's a tricky question, I would take it, because most of us look alike, but we are trying to still find differences. And yes, we have differences within. And, this video KYC, it's a small thing. We have a list of items that differentiates me from the 12 PSBs. And even we are looking at how we can differentiate or what any, you know, new generation private bank would do, can we not do it better than that? Not to replicate, not to you know, go ahead and, see what they are doing and try to copy that. No, we can always better that and do that. So lot of differentiators, we are working on it to when we go out and when we talk for new business, my new business acquisition vertical does not just go and say that these are my products, these are services. We go in a very structured manner, well-researched, that this appointment and this meeting with the prospective client, we understand who they currently are banking with. So for what all their banking needs, which are the banks they are dealing with? And what are the problem points, pain points for them, and whether I can simply go in that meeting and tell to the client that this is something which I understand is your pain point and can and this is what the solution I can give you. So we see that success rate, our hit rate, to convert these calls into real business sitting in my balance sheet is also, you know, increased. And that's what they are very systematically working on and doing it. So we definitely are continuously working on creating differentiators for ourselves and then going to the market. Okay, sir. Sir, one more Sorry to interrupt. We would be taking this as the last question. Yes, sir. Yes, sir. So, I would now like to hand the conference over to the management for closing comments. Okay. I think there was a good interaction, and we will keep, we will keep coming and trying to see that we keep communicating with the strong fraternity at large. And because we have our plans to showcase how the bank has been performing, we have our plans in place to go for some capital raising. We have our plans to, you know, become bank of greater significance, and we, we, we would always need and request, you know, positive indications coming from this powerful community. When you write for us, you write on us, it impacts. So, that's my closing comment, that's my request, and we will keep our engagements with you, and not only necessarily that, with every quarterly, you know, ends. In between also, we will try to plan out and keep engaging with you all. Thank you for joining the call today. Thank you. On behalf of Bank of Maharashtra, that concludes this conference. Thank you for joining us. You may now disconnect your lines.