Ladies and gentlemen, good day, and welcome to the Punjab National Bank Q4 FY 2026 earnings call hosted by Elara Securities. As a reminder, all participants line 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 this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Palak Shah, ma'am. Thank you, and over to you. Hello, everyone, and welcome to Q4 FY 2026 earnings conference call of Punjab National Bank. Today, we have with us the management of the bank, headed by Mr. Ashok Chandra, MD and CEO; Mr. Paramasivam, Executive Director; Mr. Bibhu Prasad Mahapatra, Executive Director; Mr. D. Surendran, Executive Director; and Mr. Amit Kumar Srivastava, Executive Director. With this introduction, I would like to hand over the call to Mr. Ajay Kumar Singh, Strategic Management and Economic Advisory, to read out the disclaimer statement, post which the MD sir will address the conference. Thank you, and over to you, sir. Sir, please go ahead. Good afternoon, ma'am. Just two minutes, time is required. Just give us two minutes. Without cutting, why you gonna cut? Ma'am, there is just, five minutes delay. Please, wait for five minutes. Sir, please go ahead, Sir. Yeah. At the outset, let me read the disclaimer. This representation contains certain forward-looking statements apart from historical information. These forward-looking statements involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Punjab National Bank undertakes no obligation to update forward-looking statements to reflect events or circumstances after the present date. Now, I request MD sir to address the analyst. MD sir, please. Good afternoon, ladies and gentlemen. Welcome to the Q4 and financial year 2025-2026 analyst meet of the bank. During FY 2026, the bank delivered broad-based sustainable performance across all core dimensions: customer service, business growth, asset quality, profitability, and operational efficiency. We met or exceeded our stated guidance for 2025-2026 financial year across most key parameters. The only areas of variance were the CASA ratios and margins, which were largely influenced by liquidity and interest rate dynamics. To drive growth, the bank is sharpening its focus on retail, agriculture, and MSME segments through targeted outreach campaigns. A calibrated network expansion is complementing this. We added 144 branches in FY 2026 and plan to open 250 more in current financial year. These branches will be primarily in the southern and western regions. A new zonal office in Bengaluru has already been operationalized to strengthen our presence and execution in the southern region. We are also leveraging digital enablers to accelerate growth and enhance operational efficiency. A key initiative is the Digi MSME Prime schemes, launched on our 132nd foundation day, offering end-to-end digital MSME loan up to INR 10 crore. We remain highly vigilant on asset quality, delivering a sharp reduction in both GNPA and NNPA. Our sustained focus on profitability has driven sequential growth in operating and net profit, reaching their highest ever levels. Now, I will touch upon the segment-wise business figures, profitability, asset quality. First, business. The bank's financial performance for the period ending March 2026 reflects steady growth coupled with ongoing strategic realignment. Our gross global business reached INR 29.7 lakh crore, marking a healthy 10.7% YoY growth. On the asset side, advances grew by 12.7% YoY to INR 12.59 lakh crore, despite INR 18,231 crore reduction in IBPC exposure, which we have done consciously. Excluding the IBPC book, underlying average growth remains strong at 15% YoY, reflecting robust core business momentum. Our retail book, excluding IBPC, grew by 18.2%, MSME by 19.9%. Agri priority sector witnessed growth of 16.2%. Future credit growth remains well supported by a strong pipeline. The bank sanctioned over INR 4 lakh crore in corporate credit lines during financial year 2025- 2026, with INR 1.18 lakh crore still pending for disbursement. Global deposits of the bank have reached to INR 17.11 lakh crore, up by 9.2% on a YoY basis. CD ratio of the bank is at comfortable level of 73.6%, which gives us comfort to grow in advances while being mindful of raising high cost deposits. On account of various customer-centric initiatives and revamped products, the CASA ratio of the bank has stabilized at around 37% and was consistent around 37% in all the four quarters of the financial year. In CASA, we strategically focused on enhancing our individual saving account balances. Over 35% of our customers are under 30 years of age, giving us a strong foothold in the next generation segment. We are focusing on serving them across their financial life cycle with tailored digital first solutions, driving long-term relationship value. Coming to the profitability, our domestic NIM stood at 2.61% for Q4, whereas global NIM stood at 2.47%. In Q3, the impact of the December rate cut was limited to 26 days, whereas in Q4, it played out over the full quarter. While we had anticipated an offset through moderation in deposit rates, deposit rates remained sticky and did not fully compensate for the compression in yield on advances. We expect the margins to improve moving forward and our NIM to witness QoQ increase from the level of Q4 2025- 2026. We expect our global NIM to remain in the range of 2.6%-2.7% for financial year 2026- 2027. Operating profit of the bank increased on a sequential basis. Operating profits for the Q4 are INR 7,500 crore as against INR 6,776 crore for Q4 of 2025. This is witnessing a growth rate of 10.7%. For the full year, there is a 9.2% growth, well above the guidance of 8%-9%. Net profit of the bank for Q4 of FY 2026 stands at INR 5,225 crore as against INR 4,567 crore for Q4 FY 2025, depicting a healthy YoY growth of 14.4%. Coming to the efficiency ratio. Efficiency ratios of the bank are increasing consistently. Our return on asset is at the level of 0.89% for FY 2026, as against 0.97% for FY 2025, as the bank has taken one-time hit on account of switching to new tax regime in the Q1 of 2025-2026. In remaining three quarters, return on asset has consistently remained above 1% at 1.05% in Q2, 1.06% each in Q3 and Q4. Return on equity stands at 15.67% for FY 2026. Our tangible book value per share as on 31st March 2026 is INR 102.95, which was significantly improved from the level of INR 84.83 as on 31st March 2025. We are quite mindful of improving our cost to income ratio. The same has remained at reduced to 51.79% in FY 2026, as against 54.59% in FY 2025. Coming to asset quality. Our asset quality is improving consistently and our GNPA has reduced to 2.95% as on 31st March 2026 from 3.95% in March 2025. Similarly, the net NPA percentage, which was 0.40% in March 2025 has reduced to 0.29% in March 2026. We are well within our guidance for gross NPA as well as net NPA ratio. Our PCR stands at 97.14% as on March 26, which is well above our guidance of more than 96% for financial year 2025-2026. Total threat slippages during Q4 2026 was INR 2,674 crore as against INR 2,904 crore in Q4 of FY 2025. Our guidance for slippages ratio was to remain below 1% in FY 2026, and we are well within our guidance level as slippages ratio for the full year is 0.60%. Total recovery stood at INR 4,082 crore for Q4 2026, and for the financial year is INR 15,501 crore. Our recovery is 2.4x of the slippages in FY 2026, reflecting our commitment towards improving asset quality. We have made additional floating provision of INR 270 crore on prudential basis in Q4 of this financial year, of financial year 2025-2026. I will provide and I will talk about some underwriting standards. I will provide analysis on underwriting standards, which will provide confidence regarding the asset quality and underwriting standards of the bank. From 1st of July 2020 to 31st of March 2026, almost 5.75 years, we have sanctioned around INR 14.28 lakh crore loans, out of which we have disbursed INR 12.46 lakh crore. The outstanding in this loan as of 31st March is INR 8.75 lakh crore, which is close to 69.5% of our total outstanding loan book. The NPA in this book is hardly INR 5,034 crore, which is only 0.40% of the disbursed amount under [ERIS] underwriting. I will talk about the capital. Our capital adequacy is 17.74% as on March 2026, compared to 17.01% as on March 2025, which is 73 basis points above March 2025. Our CET1 capital stands at 13.62% against the regulatory requirement of 8%. Tier-one capital stands at 15.15% against the regulatory requirement of 9.5%, Tier-two capital stands at 2.59% as on 31st March 2026. More than 85% of the total externally rated above INR 25 crore in advance. A-rated and more than 52% are AAA -rated, which indicates our balance sheet strength from risk point of view. Institutional participation has strengthened progressively throughout the year, underpinned by our proactive and structured investor outreach across both global and domestic markets. FII holdings increased from 5.71% to 6.39%, while domestic investors and mutual fund shareholding rose from 14.67% to 15.95%, signaling rising conviction in bank strategy, performance and future trajectory. I will talk about digital banking. Punjab National Bank is rapidly evolving into a faster financial powerhouse, leveraging advanced AI, machine learning and analytics to drive unprecedented operational efficiency and growth. We have established end-to-end digital journeys across most lending products, which are being leveraged to scale digital lending and drive growth. We have sanctioned and disbursed more than INR 20,873 crore through digital mode in Q4 to 4.8 lakh customers. Every third loan is being sanctioned in digital mode in our bank. On gross basis, bank has crossed the digital sanction of INR 1 lakh crore, demonstrating commitment to our faster technology-enabled credit solutions. The digital-first approach has shifted the landscape of the bank's operations, with digital transactions now accounting for more than 95% of all transactions. The flagship PNB ONE mobile app leads the charge, offering 350+ features and enterprise-grade security like mobile threat detection and SIM binding. There is a very good traction in our corporate mobile apps, PNB One BIZ, which serves to 3 lakh customers with more than 200 features. Number of WhatsApp banking users had grown by 77% from INR 61.5 lakh as of March 25 to INR 1.09 crore as of March 26. Combined with a robust WhatsApp banking platform and an internet banking ecosystem, PNB is delivering a highly accessible, secure and automated banking experience built for the scale of modern India. Human resources. Under our Udaan transformation initiative, the bank is driving growth through a robust objective performance framework aligned with strategic priorities. We have revamped the digital performance management system to strengthen accountability, integrating new age metrics such as conduct risk and customer feedback, alongside launching the Unnati Path to accelerate women's leadership development. We have also announced the tentative dividend. I think, we need to wait for the AGM approval, but the board has approved INR 3 for every INR 2 of the face value, the shareholding. Almost it comes to 150% of the face value. While concluding, Punjab National Bank is sharpening its strategic focus on core franchise strength with targeted efforts to build a stronger CASA base and expand the RAM portfolio, supporting better margins and operating efficiency. A disciplined approach towards risk management, anchored on containing slippages and accelerated recoveries continues to reinforce asset quality trends, while digital and workforce transformation are reshaping operating capabilities. Bank has strengthened three important verticals: credit card, cash management services, and supply chain finance. We will see lots of transaction in current financial year in these segments. With these structural levels in place, the bank is poised to sustain growth momentum and progressively strengthen its competitive positioning across all the segments. Thank you very much. Along with me, all my executive directors and the top management of our Bank is there here. I welcome any clarity or any query or anything which you would like to discuss about the financial result of our Bank, 2025-2026. Thank you very much. Thank you very much. We'll now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Ashok Ajmera from Ajcon. Please go ahead. Yeah, thanks for giving this opportunity. Compliments to Ashok Chandra and the entire team of the Punjab National Bank for achieving most of the, I mean, parameters, guidance on the main, most of the parameters, especially very heartening to note that the credit growth for FY 2026 has been 12.7%, which is better than even the guidance which was given, and everybody was apprehensive about that, which you achieved very good, even reasonably good deposit growth also, and good business growth also. Having said that, sir, I have got a couple of data points and some discussions, some comments of yours on a few points. Sir, if you look at the slippages in this quarter, the slippages in this quarter has gone up a little bit higher by almost about INR 800 crores and SMA-2 numbers have come down from INR 1,800 crore to INR 450 crores, in which measure is MSME and Agri, which has come down. Does it mean that many of these accounts have slipped because you have given only SMA-2 numbers. We would like to also know the overall color on the SMA book because of the present situation and also about the slippages, sir. This is the first question, sir. Thank you very much, Ajmera Sahab. First I will touch the slippages part. See, in this financial year, the slippage is INR 2,758 crore. If you compare it with the last financial year, 2024- 2025, that time the slippages was INR 3,001 crore. It's almost INR 3,000 crore. We have seen the trend almost every year, Q4, because of the review renewal that falls in this particular month, the quarter from January to March. Most of these MSME loans and Agri loans that comes for the review renewal and because of those things, in this particular quarter, there will be slightly elevated slippages will happen compared to the Q1, Q2, and Q3. Still, if you see the overall slippages which has happened in the bank- Yeah. It is well within the guidance which we had given, 0.60%. Our guidance was below 1%. We have kept the slippages fully under control. I will give you the figure also. In the retail, INR 439 crore has slipped compared to INR 490 crore had slipped in 2024-2025 in the same quarter. Agri, it is INR 1,069 crore, which was INR 1,400 crore, which has slipped in 2024-2025. MSME, INR 1,100 crore, whereas it was INR 995 crore. Almost in all parameters. Okay. We have brought it down, and it is fully under control. Absolutely, there is no challenge. Now, SMA-2, you have mentioned that, INR 5 crore and above, which we have given in the analyst presentation. I will give you what is the total SMA 0, 1, 2. The actual number is 3.30%. Okay. It is lowest ever in our bank now. Everything is fully under control. Retail it is 8.21%. Agri, it is 3.06%. MSME, it is 6.43%. Others, it is 0.28%. Almost all segments put together, the grand total is only 3.30% for SMA 0, 1, 2, irrespective of the amount. Yes, sir. Point well taken, sir, and you explained it very well. Sir, just now ECL guidelines have been finalized by RBI. We have been talking about it for last four to six quarters about the preparedness of the bank, every bank on the ECL. Now the guidelines having come out in full and final, where do we stand to take care of the additional provisions which will be required? Like you already said that you have got a floating provision additional of INR 2,045 crore. Is it to take care of the ECL provisions only? How are we prepared and how do we plan to take care of that, sir, in the coming years? If you see our capital position, the CRAR and the CET1, both the parameter, the capital is 17.74% in the CRAR, the CET1 is also 13.62%. We have enough cushion to take care of any requirement which will come on account of implementation of ECL from 1st of April 2027. That is first thing. Second, keeping in view that additional provision which is likely to come, we have already kept more than INR 2,000 crore, which already you have also mentioned, INR 2,045 crore in precise. It is kept for the floating provision that can take care of my ECL requirements or any eventuality which comes because of the Middle East crisis or anything. We have enough room to take care of anything which happens in the system. Since I have already mentioned the underwriting standards of our bank and the SMA position, we do not see any much challenge in implementation of the ECL from 1st April 2027. Okay. One thing I observed in the employee cost, which has gone tremendously, I mean, down as compared to the last quarter of INR 5,089 crore to INR 3,747 crore. Does it mean that in the earlier quarters, little more provision for the employee cost, I mean, were taken, or is it because of the rate change in the pension and other this thing? What is the reason which can be for INR 1,342 crore reduction in this quarter? If that would not have been there, then our profitability would have got terribly affected. I must see in the financial ratios, there is always if and things will be there. If this happens. I will tell you why and how it has happened. One is the some additional provision which was kept during the Q1, Q2, and Q3. Definitely some plow back has happened because of the additional thing. AS 15 also, what has happened, bond yield has gone up. If it would have reduced, it would have increased my treasury income. My treasury income is very subdued in this quarter. Yes. Yes. Somewhere that impact will be there. That impact has come on the AS 15 positive way. In the entire system, somewhere some challenge will be there, somewhere some opportunity also will come. Now, in the Q1, Q2, and Q3, we had calculated as per the yield which was prevailing at that point of time. Now the yield has hardened, that has affected my treasury income. That has put me in the gain by the actual calculation which has happened through the actuarial. We need to see the overall how the bank is performing, and it is not a one time the operating profit has happened in this particular order. See Q1, Q2, Q3, Q4. All four quarters, we are more than INR 7,000 crore of operating profit, more than INR 5,000 crore of the net profit we are giving. It is the consistency will be there. You see our chart, whether it is a net profit, operating profit. Yes. Or the ROA, all those ratios if you see, very, very consistent growth is there. I can assure you to you and your entire investors who are here that this consistency will be there in the system. Yes, sir. Quite well taken, sir. Treasury income has gone down, and that is what is reflected here. Because of that reduction, the treasury income loss is offsetted by the reduction in the employee cost. Yeah. Sir, one thing we again see in the taxation also, sir. In the first quarter the hit was taken of INR 5,083 crore coming into the new regime. Right. it is INR 1,700 crore, then INR 1,200 crore, then again now INR 1,852 crores. Is that some other factors? Because in this quarter the profit before tax has increased only by INR 745 crore. On that, the tax is increased by INR 621 crore. Almost 90% of the 85% of the additional profit before tax. Is there any still some items which are going in the tax or some of the items which we do not know about? Yeah. Yeah. I will ask my CFO, Mr. Grover, to answer this question. Sir, last quarter our, this rate of actually we are paying at the rate of 25.168%. Yes. Last quarter, quarter three. It was 19.44%. We also conveyed earlier in this investor meet that quarter three we got a refund of about INR 506.01. It was not a refund, it was a release of the earlier provisions which were made in anticipation of our higher tax outflow. Last quarter was this reversal, and this quarter 26.16% is our rate against our 25.168%. [Non-English content]. Which is even beyond 25.17% also it is more by about INR 60 crore-INR 70 crore. Sir. Anyway. One minute. I mean. [Non-English content]. Okay. Okay, sir. Now one point last is on the NIM, that you had given a very good target of the NIM of 2.8%-2.9%, but we have lended up to 2.57%, and that is what is the scenario. I mean, everybody is under that pressure. Going forward, you have given the 2.6%-2.7%. Can we not think of again giving the guidance of 2.8% or 2.9% something and try to achieve it, rather than slimming down or loading down the NIM target? This is one. What is happening in the West Asian crisis, the war which is going on between Iran and U.S.A. and Israel, have you started seeing any impact on our accounts, especially the MSMEs? Some pressure is being seen or we are almost neutral on that or muted on that. First of all, sir, NIM part, I will touch that. See, we could have done that, 2.8%-2.9%. Considering the prevailing situation which is there and the deposit rate, which is still at a very elevated level even in the first month and first quarter of this financial year also, we do not see much change happening in the deposit front as far as the rate is concerned. Deposit is available. There is no challenge in the liquidity. Rate is little bit high. You are seeing the totally environment, the bond rate is very high. Things are totally different at this point of time. Okay. That instead of giving 2.8%- 2.9%, and showing a very rosy picture and coming down. We thought let us keep that 2.6% - 2.7%. We will watch the situation for Q1 and Q2, and then if it is any required to be modified, we'll take a call in the third quarter of this financial year. Now, coming to the stress. As of now, we have not seen any challenge in our book now. In fact, we had a interaction with my exporters and importers of the all these affected areas, and we had conducted twice a webinar with all those people. We have also told them that any challenge which comes in the system, we are there to protect them, we are there to help them. Any such eventuality comes, definitely, bank is there to take care of those requirements. As of now. Okay, sir. Thanks a lot, sir. Absolutely, absolutely no challenge. Thanks a lot, sir, all the best to you, sir. Thank you. Thank you. Thank you, Ajay, sir. Thank you. The next question is from the line of Mahrukh Adajania from Tara Capital. Please go ahead. Good evening, sir. sir, I have a few questions. Yeah, good evening, Madam. Good evening. On your provisions, see earlier also there was a write-back from ILFS, one of the accounts, and you had not taken it into the numbers. Now other banks this year have this quarter have taken another account, you know, Sterling Biotech, in their numbers as a write-back. Have we accounted for the write-backs on these two accounts in our numbers now? Were they both accounted for in 4Q? Under which line item? Yes, Sterling has been factored, madam. Sterling is, technically write-off account. That amount is factored in our operating profits. The ILFS, still it is in the standard provision it is kept. We have not taken up in our the operating profit. We will see that maybe Q1 or Q2, depending upon the situation, we will take back in the operating profit. There was a reversal in your standard asset provision also this quarter, right? Yeah. It's a negative number, what was that for? That is because of the 7th June circular implementation, the restructuring which we keep it, and the account gets upgraded. Those things, the reversal happens, madam. The NPL release of [Non-English content] madam. Yeah. NPL also reversal has happened because of the RBI modified guidelines. No, sorry, I didn't get that. Sorry, sir, could you please explain again? There was a release of INR 727 crore. Kept in the standard account provision. Because of the Large Borrower Account Framework Okay. Under the guidance, guidelines of RBI, which the RBI modified that guidelines, and it was effective from 1st January 2026. Because of that, there is a release of INR 727 crore in the standard account provision has happened. Got it, sir. Okay, sir. Sir, these were my questions. If I have more, I will come back. Thank you, madam. Thank you. Yes, madam. Thank you. Thank you. The next question is from the line of Jayant Kharote from Axis Capital. Please go ahead. Thank you, sir. First question is on the LCR. What was the average LCR during the quarter? And what is our comfort for the next year? At what levels do we want to run it? Around 125% we would like to keep it. We are at the almost at the same level as on March 26, 125%. Okay. The second question is in your guidance. I can see that you are building in a NII growth of 7% despite the fact that. Yeah. You expect NIMs to be slightly better and credit growth of 12%-13%, which means essentially you are running down your non-loan assets, right? It could be investment book or others. Your LCR doesn't have that headroom, so how do you plan to achieve that? See, two things which we are planning now, and we are already started working on that. One is if you see our the CASA growth, and especially in the CASA SB individual, there has been a very significant growth has happened. 9.2% growth has happened in the SB individual front, which is a core deposit. Last year, lot of initiative in the bank has taken. Entire CASA products of the bank was revamped, and more than 40 lakh new quality accounts were opened. In that, good traction has happened. Because of that, 9.2% growth has happened. We are expecting in those accounts further accretion will happen and the new account will get opened. One is that we are expecting the good traction should happen in the CASA deposit this quarter. Second is the retail term deposit. The bank is putting lot of focus now. Because of these two things, we are expecting that cost of deposit going forward, it will come down. Second important aspect from the asset side is that, we have started putting last year onwards, focus on mobilization in the RAM portfolio, Retail, Agri, and MSME. We have seen the impact that is happening. 20% every quarter there has been a growth in the MSME front. We know that MSME is the largest contributor and highest contributor in the profitability of the bank, not only our bank, in all the banks. High yield will be highest in the MSME segment. There we want to build up a good portfolio. Second is the agri sector. We have grown at 16% in the agri priority sector. Retail, we have grown at 18%. Core Retail, Agri, and MSME, last year a lot of activities have happened. Lot of outreach at plants there happened. Because of that, this growth we have seen, and this momentum is going to continue in this financial year also. Already in the first month itself, massive outreach activity for the retail has happened in the more than 200 centers. We have mobilized INR 9,000 crore of the retail portfolio in the lead we have generated. 27th of April, we had the MSME outreach activity at MSME clusters at 200 centers, 220 centers in the country. We have mobilized INR 21,000 crore of lead under that MSME segment. Then 8th March, we are going to have a Agri the expo at more than 200 centers. These are the activities which we are doing it so that the dependency on the corporate loan book as of now, which is there to the extent of around 46%-47%, we want to bring that share down to, in the long term it is 40%, short term it is 42%, and in the RAM we want to bring it to 60% in the long run and around 58% in this financial year. If that composition happens, automatically my yield on advances will go up, and that will contribute in a bigger way in our NII. Sir, this would be baked in your NIM guidance of 2.6%-2.7%, right? This we are definitely Yeah, definitely we are going to do this. I'm just trying to understand why would you guide for an NII growth of only 7% then when you're expanding, expecting NIM expansion and 12%-13% credit growth? You are talking about NII? Okay. Yeah. See, when we are talking about this growth to happen and it is not that the entire scenario will get changed. When I, when my NIM will be in the range of 2.6% - 2.7%, I don't think and we should not expect that NIM will grow at 10%-12%. It will not happen. If my NIM is just growing by 10 basis points improvement is going to happen, then definitely I think the NII also will be in the same range. We are going to revisit. Uh- Because of the present situation, we have kept this for the next two quarters. We'll watch the situation, how the deposit rate happens in the system and how the credit outflow happens. Based on that, we'll revisit in the month of October. Sir, just one data point, I don't know if you've given already. What was the adjustment in the employee cost on the yield hardening, the amount? Total impact of, positive impact is INR 2,121 crores. INR 2,121 crores. Yeah. Thank you very much. Yeah. Thank you. The next question is from the line of Jai Mundhra from ICICI Securities. Please go ahead. Yeah. Hi, good evening, sir. Good evening. Continuing from the previous question. Sir, it looks like mathematically, you know, the guidance, if you were to break down, loan growth will remain at 12%- 13%. NII, we are saying, will be lower than credit growth. Mathematically, NIM should decline, right? How these three things tally if the NII growth is lower than credit growth, then ideally your NIM should decline. If NIM is expanding, then NII growth should be higher than credit growth. That is the question, sir. No, no. NIM number is exit quarter, though it does not look like that, but just wanted a clarity there. We have kept this NII at 7% as a conservative level because the portfolio under the deposit and portfolio under the asset side, still a lot of things have to happen in the system. Our core RAM growth, RAM share in the overall credit is around 54%. In this financial year, we are trying to at least from 54%-56%, 57% we are trying to reach now. If that happens, there will be some improvement in our yield on advances. As of now, Bank is totally it favors towards the corporate side. We had, in fact, one year back, we were having around almost 49%- 50% in the corporate loan book, which we have brought it down to around 46% now. The moment my corporate loan book starts coming down and it comes to around 40% and the RAM share becomes 60%, I think the lever of the NII will definitely it will improve now. Then we will have a total visibility that at what rate we have quoted and what rate the asset is started, I think that is going to continue. Corporate loan book, every day there is a challenge. There is a uncertainty in the corporate loan book, and that is the reason we can't forecast that my NII can grow at 12%-13% since our credit growth is happening at 12%-13%. That doesn't happen. We need to rebalance and redesign our portfolio in such a way that there has to be sustainable growth in the interest side, it should be there. That is the reason we have kept some conservative level at the NII level. Okay. Sure. Secondly, sir, this portfolio core retail, core RAM and the reported RAM- Yeah. It looks like that IBPC portfolio is still INR 70,000 crore. Is that the number? No. Broadly correct? Sorry. No, no. Okay. It has come down to INR 32,000 crore now. Okay. This will come down to almost a negligible level by, let's say, FY 2027 end? Yes, yes. Okay. See, last year almost INR 19,000 crore we have said, and that too in the retail segment. Because this was all the low-yielding advances. Despite that, we have grown at reasonably well. What we are doing is we are going to replenish all those IBPC at whatever is there at the lower range and around INR 18,000 crore-INR 20,000 crore further it will be reduced. We want to totally come out of this IBPC business. In fact, going forward, a lot of things you will see happening in the Retail, Agri and MSME side, the core activities. Right. Right. No, sir, I'm just looking at the slide 10, which says that retail INR 2,80,000 crore and Retail excluding IBPC is INR 2,51,000 crore. Roughly INR 29,000 crore there. Agri, and Agri PS. Okay, only Agri PS is priority sector, right? The difference is not- Yeah the IBPC. Correct. IBPC sitting is only in retail. IBPC is only in the retail. Only in the retail. Okay. It is only in the retail. Okay. Okay. Sure. Sure. Okay. Sir, sorry, coming back to main question. There are two components. One is yield, which you explained as this core, retail portfolio improves. Yeah There will be uptick in the yield. On the cost of deposit side, this quarter the cost of deposit has only declined by four basis points. Maybe there was some activity on the wholesale bulk deposit, short-term, also. How should one look at cost of deposit? Will your cost of deposit keep declining or they will be broadly stable or they will start moving up? How to look at cost of deposit? I think, we are seeing and we are very closely watching our incremental cost of deposit. I have compared the January, February, March and April. That is April also. There has been some decline happening in the incremental cost of deposit, and that is one part. Second part is that, 2024-20 25, we had one special scheme, which I had mentioned last time also, 7.25% and 7.75% for T-bill holdings. Almost 95% of those things also have been repriced by end of the Q4. What was the new deposit which we are garnering it, and that too if it is happening at a lower cost. We are expecting that the Q1 and Q2, definitely there will be some improvement on account of this in our, in our NII. Maybe around five basis point I am expecting that definitely some improvement it will happen in the cost of deposit side. Right. Right. Sure. Secondly, sir, on the SMA book and ECL, sir, last quarter we had said that INR 9,000 crore-INR 10,000 crore was the provisioning shortfall as per the draft guidelines. Now, if you had a chance to look at the final circular, does that ECL transition impact of INR 9,000 crore-INR 10,000 crore, does that broadly number remains or there is a revision to that number? I think, for the final number, I think, we just wait for another two quarters, because already we have onboarded the digital platform now, and the modeling is also in place. I can assure you one thing that, the credit, the capital adequacy which the bank is having and the provisioning, the floating provision which we have kept, it is sufficient to take care of my ECL requirement, which will start from the first April. Absolutely we don't see any challenge and any the threat on our balance sheet at all. Right. No, no, sir. Capital is very robust and maybe all-time high, and that NPA anyway has been coming down. Yeah. One more thing I will tell you towards this capital side. See, last year we had taken permission for INR 4,000 crore CET1 and INR 4,000 crore of AT1. INR 8,000 crore of capital raising, which we had planned, and we had taken the approval from the board. We didn't get an opportunity or didn't feel that we should go to the market, and we have not raised any capital last year. Despite that, INR 5,489 crore got matured. AT1, INR 495 crore, and Tier 2, INR 5,000 crore maturity was there. With all those things and not raising the capital, our capital position is 17.74% now. To some extent, the interest which we were paying on these bonds, that also we have calculated that how much additional gain which we are going to happen because of non-raising of the bond. That amount is coming to around INR 175 crore. That accrual will happen in this financial year. We are very mindful. In fact, this year also INR 5,890 crore AT1 bond plus Tier 2 is they are completing now. We are not going to raise any capital. Okay. Sure. Sir, if you have this number in absolute INR crore for SMA 0, 1, and 2. Yeah. You had given 3% for total. I just needed- Yeah The 0, 1, and 2 separately at the bank level. I will give you. Yes, sir. Yes. I have a question. Yeah. Yes, sir. What you want, retail segment-wise you want or SMA 0, 1, 2 you want? SMA 0, 1,2 sir. Okay. SMA 0 is INR 24,643 crore. Okay. SMA 1 is INR 13,970 crore. Sure. SMA 2 is INR 2,922 crore. All put together it is INR 41,534 crores, 3.30%. This is irrespective of amount. Right. It is the entire SMA 0, 1, 2 portfolio. Right. Last question, sir, on AFS reserves, right? We have had some I think INR 500 crores of revaluation. Yeah. Negative number. Last quarter we also had one listed investment which keeps fluctuating. Was it due to that? What was the change in AFS reserves? What is the outstanding AFS reserves as of March 31st versus maybe December 31st? It is only because of that particular asset which you are mentioning. Mainly because of that only the fluctuation has happened. One asset only. Okay. sir, we had taken the MTM hit in last quarter also, and then this again we had a. Yes. MTM hit. You see the. Right. March 26th what has happened because of the crisis, market has deeply. Okay. Fallen down in that particular day. Okay. We take the figure. Okay. As on March 26th. And now it has started, it has gone up now, that is the challenge in the system. Right. Right. Take it. Sir, you have shared the number for outstanding AFS reserves as of March and maybe as of December. That will be it from my side, sir. AFS reserves. AFS reserve. Will give. You can give now. Yeah. We'll give you. We'll give you. Sure, sir. No problem. I will take it from you. No problem. Thank you. Yeah. Thank you. The next question is from the line of Param Subramanian from Investec. Please go ahead. Yeah. Hi. Good evening, sir. Thanks for taking my question. Good evening. Sir, firstly, on the ECL, I think you spoke about the one time adjustment, you know, rough numbers about that. On a, say, on a run rate credit cost basis, have you evaluated what can be the impact? So like you're saying, like credit cost is below 0.4% is your guidance for FY 2027. Yeah. Say if you were to implement ECL, how much, say, would the impact be on your run rate credit cost? Yeah, yeah. We have roughly calculated. I will tell you that for ECL, let us wait for another two quarters. By July, I think we will have a very clear visibility that what is going to happen in our system. Rough calculation which we have done, we are perfectly in line with the capital requirement, what is to be done, and the asset quality, what should be there. We don't have any challenge. Floating provision, we have already kept more than INR 2,000 crore, INR 2,045 crore. Rough calculation which bank has done, we are able to meet all those things which is going to happen in the system from 1st April 2027. Actual number, let us wait for some time and then we will discuss about the actual number which is there in the system. No, sir. Sir, just a follow-up on that. I think capital, I think we appreciate, right? Yeah. Yeah. Yeah. capitalized. The question is more how it affects your ROA. Will you be able to. No. deliver over one point ROA It is. you know. Yes, yes. Yeah. Absolutely. Why? I will tell you. -you, we have 97% PCR. Right? Yes. At stage three, I think sufficient release can happen in the system now once we get once the ECL gets implemented. Having 97% PCR, INR 2,000 crore of floating provision in the system and 17.4774% the capital adequacy, I think these three things should give the confidence to all the investors that perfectly bank is in a very, very comfortable position. Perfect, sir. And- Sir, another que-. And that too- Yeah. Sure. That too, that too has to be implemented in five years. We don't require five years, I can tell you. We will do it in one or two years itself. Perfect, sir. Look forward to the more detailed, you know. Yeah. numbers that you'll discuss, from next quarter. Yes, sir. Sir, secondly, on your NIM. Last quarter you had given this, you know, on TD repricing, you had given some rough numbers, that 70% of your- Yeah. Term deposits had repriced. Where are we now, roughly? No. As much as. Those special deposit which I had mentioned in our previous call, that is almost 95% have been repriced in the end of March. We have not seen much traction happening or the reduction happening in the cost of deposit. What has happened, we were expecting that the February and March deposit rate will come down because of the repo rate cut and the inflation scenario. That has not happened in the system. Still the deposit rate is little bit elevated. That is one of the reasons why the impact we are not able to see in our NII and the NIM. I will tell you, incremental, the deposit, incremental deposit which we are mobilizing it in the month of February, March and April, every month, there has been a reduction now. Of course, two to three basis point reductions are happening every month. This improvement in NIM that you're talking about to 2.6%-2.7% will mainly be funding cost, or it will mainly be the mix shift? Yeah. You're talking about on the loan book. No, no. What will drive it? Both I'm talking. Both. No, no. Both I'm talking. Okay. One is the deposit side, and second is the RAM share which we are planning to increase and the activity which we are doing it. Both side it will improve now. Fair enough, sir. One last question, sir, on the wage revision. Finance Ministry has started, you know, asking the public sector banks to, you know, start the negotiation. By when can we, you know, where are we positioned, say, if you have any rough numbers that we can talk about in terms of, say? No, no. Yeah. That the wage revision due itself is the first November 2027. Yes. financial year 2026, 2027, it doesn't impact at all. Sure, sir. it is not, you will not start making provisions for this. No, On the full hike. Not. No, no. Not. Okay. Fair enough, sir. Thank you so much, and congrats on the quarter. Thank you. Thank you. Thank you. The next question is from the line of Ashlesh Sonje from Kotak Securities. Please go ahead. Hi, sir. Good afternoon. Sir, firstly, just a clarification on the AS 15 provision number you gave about INR 2,100 crores. Is that the amount of provision that you have reversed in this quarter? It was a negative provision which you made in this quarter. Yeah, correct. My CFO will respond to you. Yeah. Sir, we have a total provision of INR 1,814 crore AS 15 for this financial year. There was a reversal, but not to that extent. It was in three digits only. It is up to INR 736 crore. Okay. In this quarter, the provision towards AS 15 was a INR -2,100 crores. Is that understanding correct? No, no. It was not. Sir, I tell you, first quarter it was INR 1,185 crore we made the provision. Second quarter we have again made a provision of INR 700 crore. Quarter three, again we made a provision of INR 700 crore. This time, because of the hardening of the government security rates, there was no need of making further provisions in AS 15. We treat it as a prepaid AS 15 to the extent of INR 736 crore, and the balance INR 1,814 crore has been booked as an expenditure in the employee cost, sir. Understood. Okay, sir. Sir, secondly, if you can share what is the average yield on your corporate book versus the average yield on the RAM book, so that we can get a sense of how much benefit you can get from a loan mix shift. Yes. Yes. Corporate yield is 7.55%. MSME yield is 9%. If you see our domestic yield, that is 8.23%. Corporate loan book gives us lower than the domestic yield of all the sectors. Understood, sir. Got it. Thank you, sir. Those are all the questions I had. Thank you. That was the last question for the day. I now hand the conference over to the management for closing comments. Thank you very much to all the esteemed, the investors and analysts. I think the way you are reposing faith in our bank, on behalf of the entire bank, I can assure you that we have a very, very robust system in place, and we are mindful of growth, profitability, and asset quality. I think the faith which you have maintained, I request that you maintain the same trust and confidence in PNB. We will continue to give the very consistent profit performance. Thank you very much. Thank you. On behalf of Elara Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.