Good evening, ladies and gentlemen. I am Pawan Kumar Kedia, General Manager, Performance Planning and Review. On behalf of the top management of SBI, I extend a warm welcome to all joining us today on SBI Q1 FY 2022 Earnings Conference Call. On the call today, we have with us our Chairman, Mr. Dinesh Kumar Khara; Mr. CS Setty, Managing Director, Retail and Digital Banking; Mr. Ashwani Bhatia, Managing Director for Corporate Banking and Global Markets; Mr. Swaminathan J, Managing Director, Risk, Compliance and Stressed Asset Resolution Group; Mr. Ashwini Kumar Tewari, Managing Director, International Banking, Technology and Strategies; Mr. Alok Kumar Choudhary, Deputy Managing Director Finance; Mr. Charanjit Attra, Chief Financial Officer. Before I request our Chairman to give a brief summary of the bank's Q1 FY 2022 performance and the strategic initiatives undertaken, I would like to read out the safe harbor statement. Certain statements in these slides are forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual outcome may differ materially from those included in these statements due to a variety of factors. Thank you. Now I request our Chairman to make his opening remarks. Thank you. Thank you, Pawan. Good evening, everyone. Thank you for joining this conference call. Well, friends, the quarter one financial year 2022 results we have already declared, and I would like to place on record that it was quite a challenging quarter for all of us due to the second wave of COVID-19. I hope all of you and your loved ones are safe and healthy. I want to start by thanking the support of all our stakeholders during these challenging times. During the first and the second wave, our employees have continued to provide banking services to our customers, often at risk to their own well-being. As always, the bank has delivered on its obligation to stakeholders, even in the face of the extreme challenges, which is an inherent aspect of the culture of the bank. The same could be possible due to our focuses on processes and structure in which every employee of the bank has space to make a difference. Having said that, I would also like to bring it to the notice of all that almost 74% of our employee base have already been vaccinated to ensure we should be in a position to tide over any future challenges which we might come across. When we look back at quarter one financial year 2022, considering the extreme challenges that all of us have faced, we are proud of our performance. As all of you already have our presentation, I would like to highlight a few key aspects of our performance. Keeping in view of the seasonality factor and its impact on the bank's business, comparison of the performance has been essentially focused on YOY basis. Our slippage ratio in the quarter is 4.41%. This is higher because of the impact on collections. A significant amount of these slippages have come from the retail portfolio, which is essentially effort lasting. The good news is that in July 2021, we have been able to regain some ground and are confident that we will be positioned to pull back and see much better performance in the days and weeks going forward. In the context of challenges faced in quarter one, we believe these results are strong and comparable. All of you will notice that we have fared well on the asset quality through financial year 2021 and now in quarter one of financial year 2022 as well. The books have now undergone two stress tests, one during the first wave and the second in the more serious second wave. Through both these tests, we have delivered reasonably well on the asset quality. Our net NPL level at the end of Q1 stands at INR 43,000 crores with a provision coverage ratio of almost 66%. Additional provisions, including COVID provisions, not included in this year, are INR 29,816 crores. To put a context to those numbers, our operating profit was INR 71,754 crores in FY 2021, and the same is INR 18,925 crore in Q1 FY 2022. The bank has been able to deliver this level of operating profit despite the relatively low credit deposit ratio. As far as the capital is concerned, our CET ratio as on June 2021 is 9.91%. Given our competitive positioning and our value drivers, we believe our current capital and future internal accruals will be adequate to support our long-term growth targets. Given the dynamic situation and the likelihood of a third wave, coupled with the intricacy of economic linkages between enterprise and individuals, leading to reprioritization of obligations in time of adversity, we would like to refrain from giving any forward-looking guidance at this point of time. However, my team and I are focused to achieve our long-term sustainable ROE target of 15%. Challenges due to COVID-19 and its resultant impact are still very real. We believe that Bank can weather these disruptions and come out stronger over the medium term. To ensure this to happen, we have a sharper focus on YONO, which is our flagship app. We have seen a significant increase in number of people who have downloaded this app, the effective registration now exceeds INR 4 crore. It is actually growing at a fast pace. To my mind, it has already scoped at INR 10 crore. Our online banking channel has got almost 14 million customers already using this. Additional INR 4 crore customers coming through YONO gives us a distinct leverage to ensure that we are in a position to reach out to our customers and offer them the services, even in the most difficult circumstances. In the current financial year also, we have successfully dispensed to more than INR 4,500 crore worth of peer-to-peer personal loan with the help of YONO, which is end-to-end digital. Going forward, we'll be enhancing this capability by offering even the two-wheeler loans, and also the recently introduced Kavach loan also has been made available through YONO. To conclude, I once again thank you for all your support, and we remain committed to reward your trust in us with superior sustainable returns for the long term. My team and I are now open to taking your questions. Thank you. Thank you very much. We are now beginning the question- and- answer session. Anyone who wishes to ask a question may press star and one on their 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 will wait for a moment while the question queue assembles. Please note, participants are requested to ask two questions per participant. If time permits, please come back in the question queue for a follow-up question. The first question is from the line of Mahrukh Adajania from Elara Capital. Please go ahead. Yeah, hello. My first question is on margin. What was the interest income reversal during Q1? Interesting. INR 300 crores. Last quarter, in the fourth quarter, it was around INR 3,000 crores, including the bond interest. What changed such a sharp drop in yield between March and June? That was essentially because for the full-year, we had not really reckoned any of the NPA and naturally, the interest reversal was also not accounted for. Since it happened for almost for the full-year, it was INR 3,000 crore. This time for the first quarter, it is INR 800 crore. Yes, sir. I'm just comparing QOQ. QOQ also the names have. You have to appreciate that last year, though it was at a quarter end, but it was for the full-year. Because of Supreme Court directive, the NPAs were not recognized. On the pro forma basis, we've been declaring. All those NPAs were recognized in the last quarter, and the relative income which was booked earlier was reversed. Correct. Sir, between fourth quarter and the first quarter, that is fourth quarter ending March 2021, and then first quarter ending June 2021, there has been a sharp drop in low yield. Is it because of the product mix change or what explains that? You respond. In the loan, you will find that there is a YOY decline of around INR 3,000 crore, which is again, mainly because of the low interest rates which we charge in this period. Remember, if you note that our MCLR was around 7.75% in the month of April 2020, which came down to 7%. That is why in the first quarter, the MCLR was 7.29% effectively. Thereafter, we are booking only 7% kind of MCLR plus other additions in that. This sharp drop in the yield, that has led to this kind of behavior. Otherwise, YOY, we have a growth in advances of more than INR 1.1 lakh kind of growth. There's an interplay between the growth as well as the yield on account, which has come down sharp. Okay, sir. My other question is that you have a buffer provision of around INR 29,815 crores, and you've given a breakup. The first is INR 15,700 crores asset provision. These are the RBI mandatory provisions, correct? Yes. Yes. Okay. Just to give 1 clarification. The RBI mandatory provisions, these are the normal 0.25%, 0.40%, 0.50%. Sorry. Sir, I can't hear you. RBI provisions are there, other part in this is also some of the specific provisions which the bank does on its own on account of its understanding of an asset. This is a combination of two, three factors in this, the another part here is the restructuring which we did, the provisions on account of restructuring, that also and which remain at the standard. That part also is included in that INR 15,600. Three, four factors combined. Okay. What would be the RBI mandatory provision there? RBA mandatory provision will essentially flow from RF 1, RF 2, on account of the restructuring. Apart from that, on the standard assets, which is at 0.25%. I'll just give you for this quarter as you know. Maybe specific we can share. We can share details. We will get that fixed from CA. Okay. Just one last question on home loan slippage. You gave a number of 1.53% in the press meet. That is annualized, correct? Which means that the home loan slippage is around INR 1,900 crores. Is that the correct figure? No home loan slippage is at. No, we have given retail personal slippage. Retail personal also has been given, so that is the reason why it is so. When it comes to our home loan NPA, it is essentially at 1.39%. If we reckon the pullback, it will actually come to 1.14%. Got it. The number you gave of 1.53% of slippage in the press meet, this is annualized, correct? Which means it's a INR 1,900 crore kind of slippage? All slippages are annualized only. All slippage ratios are annualized. It is around INR 1,900 crores. I'm not sure where that number is coming from. We have said the retail personal loans slippage is INR 5,268 in Q1. This includes home loans. Yes. Home loans separately it is INR 3,123. 3,123. Yes. Thank you so much, sir. Thank you. Thank you very much. Next question is on the line of Nitin Aggarwal from Motilal Oswal Securities. Please go ahead. Yeah. Thanks for the opportunity. Couple of questions. Firstly, when you refer to the significant pullback that you have seen in July, what are the segments where you have seen these pullbacks? We have seen the pullback coming back from practically all the segments. It is home loan, it is also in the SME and also in the personal loans. All segments have seen the pullback. Can you also share some around collection efficiency as where we were in June end and where we are as in July? We were somewhere around 92% in June end, now we are actually more than 93%. Recovering in 93. Actually it is somewhere around 93.5. It has improved by almost 4.5%. Okay. Secondly, what is the quantum of the ECLG loans? When I look at the SME slippage now they are higher than what they were last year through this quarter. ECLGS loan, we had sanctioned INR 30,000 crore and disbursements took place about INR 27,000 crore and the current outstanding is at about INR 22,000 crore. Okay. I'm asking, sir, in the context to the SME slippages that we had in first quarter, now this is higher than the same as we had last year. What kind of comfort do you draw on this portfolio as this sort of moratorium starting next quarter? You see, the point is that when it comes to SME slippages, they have actually come from the fact that their cash flows were totally disrupted in the first quarter. Out of 90 days, 60 days, there was hardly any activity, and there was a huge restriction on the mobility. I think the post situation where the lockdown situations have been eased out, there is a scenario where we expect that the cash flows of SMEs will get repaired, and they will be in a position to come back faster when it comes to the recovery piece is concerned. Sir, lastly, now we are seeing an increasing use of digital channels and cost income ratio has shown some improvement. How much room do you think is there as like because with higher usage of YONO and business being chose there on both asset and liability side, where could we be on the cost side, cost income ratio in next few years? As I've been sharing from the very beginning, that cost-to-income ratio is one of our major focus. There are certain structural issues, but when it comes to the non-interest income is concerned, the mobility is one of the major important factor, and that will actually help us in addressing one lever. The other lever is the rigidity of the cost structure. Hopefully, I think maybe give us another quarter or two, we should be in a position to give some kind of a trajectory as far as the cost-to-income ratio is concerned. Awesome. Thank you so much. Thank you. Thank you. The next question is from the line of Adarsh from CLSA. Please go ahead. Yes. Hi, sir. Just on margins, the last question that it had dropped in margins from fourth quarter to first quarter after adjusting for reversals. Can you please explain that again, because the hit is quite sharp. When it comes to the margins, NIM essentially, we have seen that because of the low economic activity and the real economy being where it is, the credit deposit ratio have actually seen a further reduction. That is something which is one of the contributing factor. Apart from that, there was a pressure on the yield advances because when it comes to the quality corporate, there is a rollout challenge which is there. Nevertheless, in terms of the corporates are not really availing the limit. Unutilized portion has gone up even further. When it comes to large corporate, it is as high as about 40% now. When it comes to SMEs, there is a slight improvement. It used to be 30%, now it is about 25%. I think partly it is underutilization, and partly it is also attributable to the fact that the credit deposit ratio needs to be improved, which of course is a function of the real economy. Once the real economy improves up, we should be in a position to support the credit content, which will certainly help us in improving our margin. Just to ask your opinion, we had good margin in the first nine months and then it dropped because of the runoff in the last quarter and now because of the yield and CD ratio pressure. Do you expect that we can get back to margins where we were in the first half last year? Because asset book yields are low, activity pick up is slow, margins are unlikely to get back there. No, we are actually celebrating our portfolio also, and hopefully we should be in a position to come back to the past trajectory in terms of NIM. As far as NIM is concerned, there's a matter of the numerator and denominator. Sorry, can't hear you. Yeah. NIM, if we see the calculation, it is average earning asset. Normally what happens, as the year progresses, the average earning asset becomes a kind of you have moving asset growth and then the average earning asset slowly it moderates. Now, I'll tell you in case of Q1 2021, the average 2021 earning asset was INR 3,135 and this time it is INR 33. In the first quarter, as normally the average earning asset, it remains settle and the NII, being an NII was not that great. There is a pressure on NIM from 3.24% to 3.15%. Amit, QOQ, why was this? Got it, sir. Just one more question on the same margins. When you look at the incremental loan yield which you are booking on existing loans versus the stock, how large is the gap? The same question on cost of fund because I think what I'm trying to understand is if the yields were the next amount this particular quarter on the full loan book, what are the incremental yields that we kind of generated in the last quarters? Incremental yield would be somewhere around, it could be around 7.7%. Just give me a minute. I think we'll have to look into what is the incremental yield. I think we will get back to you. This number may not be readily available with us. We will have to get back to you on this. My last question is the SME book. Sir, a lot of dispensations were given to SME being ECLGS restructuring and some of those dispensations still continue. In spite of that, we've got slippage up understandably because of wave 2. As you go into the next few quarters, you will actually have a real test of debt servicing for some of these SME loans. What's your expectation for the SME stress because that did enjoy a lot of dispensation benefits last year? See, the point is, as I was mentioning, the way the stress has come into the SME book, it might even go away at the same pace at which their cash flow gets repaired. That's our belief and that is what we have seen also. The cash flow disruption was essentially on account of the restricted economic activity. Once the unlock situation happens, I'm quite confident that the cash flows will get repaired and we will have a situation where they will once again be very active. Some of them, yes, of course, I agree if at all their damage is beyond repairs then of course it will go away. For that, I think we have adequate buffer we have already created. Whenever we are doing any restructuring as against the mandated provisions by RBI, we are generally keeping a little higher provisions for any restructuring. In our past experience, which of course, is not representative in the true sense of the word, we have seen that almost about 50% of such restructured account survives and do well. That is in the normal situation. These have been very abnormal situation where the cash flow disruption also happened very suddenly and the repair also is expected to happen at a very fast pace. That's how I visualize SME. Thank you, sir. My last question. I'll request you to come with the question. Just a follow-up question. Thank you. The next question is from the line of Gaurav from JP Morgan. Please go ahead. Thank you, sir. Sir, two questions. One is on this corporate loans. Can you just elaborate what you have given the growth this week sequentially, and also what are your thoughts on the telecom exposure given the comments which we are hearing? The second is on YONO. I can take that as a follow-up. The first question relating to the corporate book. Well, of course, growth is quite muted. We have seen it and there's a degrowth. If we reckon the loans, I mean, our subscription to the CPs or the commercial paper and the bond then it still looks a little reasonable. It shows about some marginal growth. The fact remains that when it comes to pipeline, there are underutilized limits almost about INR 3 lakh crore. Almost when it comes to the proposals in pipeline, they're almost worth INR 1 lakh 30,000 crore. That is something that is what is there in the corporate book. There is also the fact that the deleverage which happened in the corporate in last one year, that is also another contributing factor for the muted growth seen in the corporate credit. I think part of it would be the kind of liquidity which is seen in the system. How long this liquidity which comes from overseas markets, whether supporting the Indian market is one question. Second is the revival of the demand, which will probably enhance their investment spend. That is the other very important factor which will have an impact on the credit growth in the corporate book. Your other question relating to telecom related matter. This is bit larger in dimension and we are engaging with all the stakeholders to see that how best it can be resolved and I think we'll have to wait and watch for outcomes. We are trying to insulate our balance sheet from any shock which might emanate from this. Maybe I'll request Ashwani Bhatia also to supplement. Yeah. Everyone is aware of the problem on the telecom side. We are also worried but at the same time we are engaged with all the parties concerned. I mean, if you just talk about the EBITDA, it's quite okay. The liabilities of the company are outside the balance sheet. That is a worry. Just hope something works out. That's all we can say at this point. Okay. Thank you, sir. The second is on YONO so PAPL loans that you do, I am guessing this is unsecured loans of INR 27 and INR 37 dispersed. Do you know what is the total outstanding dispersed under this PAPL in YONO? PAPL, you rightly said that these are unsecured loans, and the total outstanding in PAPL would be actually reflected in the Xpress Credit portfolio, which is around 25,000 crore out of about 2 lakh crore, which is there in Xpress Credit. We started around last year at the end of the first quarter, we were dispensing about 5,000 crore. This year in about 40 days time, we have dispersed about 4,000 crore. That is a kind of a number. It is all analytics driven and it is offered to those who are maintaining their corporate salary package accounts with us. Okay. The average ticket size will be INR 3 lakh, right? I mean that's what I get as approximate number. Would that be the correct number? Pardon. If you can repeat your question. Average ticket size will be INR 3 lakh for these loans. Yeah, somewhere around that number. That's okay. Thank you very much. Thank you. The next question is from the line of Kunal Shah from ICICI Securities. Please go ahead. Yeah. Firstly in terms of the international book that team I think since past two quarters in fact we would have added almost INR 40,000 crores out there. How is the demand over there and how should we look at this book in particular because that's growing on a sequential basis in this quarter. What would be the outlook with respect to international book? International book I'm quite hopeful that it will grow because the kind of activity which we are seeing in the developer is something which is quite encouraging and we are seeing significant activity and we are in a position to support it well. Also, we are also having rupee dollar swap, which is also helping us in sort of funding it at a very cheap cost. Also, maybe I'll request Ashwani to add. Yes, sir. Just to add to what the Chairman said we are seeing very good opportunities available in the developed markets of the U.S., U.K. and Hong Kong. We are exploring those and we are doing largely very good credit qualities, real maintenance of high investment grade kind of assets. Therefore, it is secure and yet it is also offering a good amount of traction and yield. That will be something we look at the international book to grow this year while we are still coming out and the investment climate is improving in India. It's sustained. This is providing us a good diversification geographically as also in the kind of loans we do here. Sure. Again, in terms of this Kavach loans, which are also the personal loans. Again, would that be accounted in the Xpress Credit or it would be there in the other personal loans? When we look at in terms of the Xpress Credit, compared to what situation run rate we used to see, in fact, at this time the growth has been INR 3,000 crore. Is it in terms of making some credits because they are stronger out there or is it more a demand thing or maybe the incremental loans under Kavach are getting booked in other personal loans and it's not being there under the Xpress Credit for that reason. No, Kavach loans are categorized under the other P- segment loans. We have distributed about INR 1,000 crore worth of Kavach loans and it got started in the middle of June. That is where it stands. Xpress Credit, part of it is also because the customers are expected to really do a bit of an activity on the YONO and only then it is dispensed. I think, it is not that we have, as far as the filters are concerned, filters have remained the same. Maybe I think filters at the material point of time, probably people were not as much focused in terms of raising credit as they were probably focused on taking care of themselves and their family members. Sure. Just one last clarification. These NIMs are 3.26% are FY 2021 and Q4 was actually 3.11%. Actually sequentially there is an improvement from 3.11% to 3.15%. That's the right way to look at it. Yes, that is the right way. Yeah, that's right. Okay. Thank you. The next question is from the line of Abhishek Murarka from HSBC. Please go ahead. Hello, good evening. First question, one on Xpress Credit. Can you share what is the growth outlook on a YOY basis? Obviously because of the base the growth looks good. Incrementally how do you see growth there? Second question on that is, what is the credit cost you factor in normally in a normalized state for that portfolio and can you also share the slippage in Xpress Credit in the quarter? Xpress Credit has not seen much of a slippage. Maybe you can respond to that. Yeah. On the Xpress Credit, I think, as you know, we give Xpress Credit to mainly our corporate salary package holders. These are who have salary accounts with us. If you look at our CSP account, we have about 1.7 crore CSP accounts and the current penetration for Xpress Credit is about 25%-26% less than 30%. We have a good growth potential there. Currently we are growing, even in July we have grown around 24.6%. We assume that 25%-26% growth rate is possible in Xpress Credit, at least in the current year. The Xpress Credit NPA, if you see, it is less than 0.7%. The credit costs are virtually very small there. The portfolio is of a high quality. The question really is not about the existing credit cost, it's just about in the product, what kind of credit cost do you build when you price it? That question, that answer, I think we'll have to look at the details. I do not have. I'm not able to immediately respond to that. Okay. Actually suffice to say that amongst our fee segment product, it is the safest product. A high yielding product also. Very high yielding. The returns are very good. If you are talking of a number, maybe it could be not more than half a percent. Okay. What are the yields in this product, sir? Just out of curiosity. Sir? 11% +. Okay. Sir, the second question is on the corporate portfolio. Can you share the yield on the corporate portfolio, maybe both in Q and 1 Q? Is it on the data or it's not there as of now? We'll give you those details. We may not have it right now. Okay. Just a final last question. You had shared the NPA in core loan as of July end in the press meet. Can you share a similar NPA number as of July end for SME and Xpress Credit, if possible? Yeah, we'll just check it out. What we not initially shared, we'll share. Okay. All right. Thank you so much, sir. Thank you. The next question is from the line of Sameer Bhise from Axis Capital Limited. Please go ahead. Yeah, hi. Thank you for the opportunity. You mentioned that there are proposals of around INR 1.3 lakh crore on the corporate side. Can you elaborate on what kind of projects or proposals value, maybe sectors or any directional commentary on that side will be helpful. Thank you. Specifics would not be shared with us, nevertheless it is essentially coming from the infrastructure sector. Largely government-driven projects, I believe. No. It is mixed. Iron and steel and infrastructure, et cetera, are the major players. Fair enough. This is helpful. Thank you and all the best. Thank you. Thank you. The next question is from the line of Anand Dama from Emkay Global. Please go ahead. Yeah. Thank you for the opportunity. The NPA information that you have seen, particularly into the personal loan segment, not in tech space, but the home loans and the gold loans. What really explains that? Was there a difficulty in terms of recovery or the underlying customer income gone into stress? If you can also help us with what kind of actions in terms of NPA have you already done in the month of July? When it comes to gold loan, it was essentially the restriction on the mobility because what happens is, in the gold loan, as and when there's a drop in margin, so naturally they are required to come in and deposit some money, et cetera. That is something which is coming in the way. We have seen that post 16th June onwards, we are seeing decent pullback in the gold loan account. That is what explains what really was a contributing factor. What else you were asking? How is it with home loans? Home loans also is likewise because it is all effort elastic and since with the recovery effort, as I was mentioning, this number which is at 1.39%, as on 30th June looks at 1.12% as on 31st of July. That's a reflection of the effect which is seen on account of pullback. I think last meet you said that home loans are the default category. Those are the customers who seem to be affected a lot. No, see, the point is that one is the impact on the cash flow, second is our people reaching out to them. When people reached out, we could pull back these loans. Okay, sure. Just finally on the current deposits. We have seen a sequential drop in the current deposits. Is it more seasonal or you are also seeing some disruption coming in from the peers because of the recent RBI guidelines? No. On account of the RBI guidelines in terms of value, I think it has suffered only just about 10%. CAR has increased. In fact, our CAR has actually increased on a YOY basis. Yes, of course, if you will look at quarter-on-quarter, March always has got the buzz, which will not be there in the subsequent months. Current account, we have actually seen an increase of about 15 basis points. It's more seasonal in nature for the current account. Yeah. Current account is always seasonal and in fact, that is the reason why we have put a comparison on a YOY basis. Okay, sure. Thanks a lot, sir. Thank you. Thank you. The next question is from the line of Gaurav Kochar from Mirae Asset. Please go ahead. Yeah, hi. Good evening. Thanks for taking my question. On the overall recoveries in July, what was the total quantum that you were able to collect in the month of July? Recoveries, July we have done about INR 4,790 crores. Okay. Sure. This as you said would be across the segments? Yeah, it is across the segments. Okay. sir. It is essentially to retail because it is essentially to the retail loan. SME, regulatory retail, if I may say. SME agri, power and home loans. Okay. Sure. Sir, of the remaining 10,000 odd crores which is left, how confident are, or what portion of that do you think could be recovered in the next couple of months? We'll have to wait and watch. Efforts are all on the ground and we'll try and see that whatever best we can, we shall be able to do that. Sure. On the MSME side, sir, the MSME slippages was likely on the higher side. Any rationale for not restructuring these loans if the borrowers were stressed? No, we are doing the restructuring in case of SME also. We have already restructured about INR 3,355 crores. Okay. You said is that INR 6,400 odd crores. odd crores. These would be restructured in the coming quarters or these would only be recovered? If I can just respond, sir. Out of this INR 6,416 crore which you're saying, slippages, already around INR 2,300 crore has been upgraded by the recovery that is now it is INR 4,108 crore. Some of them may be restructured. Some of them will still be restructured because they are all standard as on 31st March and eligible for restructure. Right. Okay. Sure. That's helpful. On the provisions for this quarter, of around INR 10,000 crore only INR 5,000 crore was towards specific loan loss. There was also other provision. Even in the provision buffers being given, at least INR 5,000 crore is other provision. Over and above the COVID-19 provision. What is that meant for? Is it specific to something or it is also part of the general contingency? No. See, when it comes to other provisions, other provision would also. It contains 10 of yours. Yeah. It contains two things, other provisions. One is that, as you know that this restructuring requirement will be 5% and 10%, but we have whatever extra, around INR 2,100 crore we have put it here on our own in other provisions, and around INR 2,800 crore would be on the NFB side, the non-fund based. For that also, we have done some provision. Actually, those ICA accounts which are restructured, there for the NFB, there is a requirement for making a provision. That is something which is being talked about by us. Just last question, if I can squeeze in. For the collection efficiency you mentioned of 90 DPD, this is only on the overdue book, right? Not on the overall book. What is 90 days DPD? It's a 90-days DPD, based on the 90-days DPD. Other than agriculture and other- Other than agri. Agri, of course, is not covered under this 90 days DPD. Okay. Sure. Including the NCL, the collection efficiency was 93.5% for July. Overall, 93%-93.5%. On some days it is because it is being calculated almost on a daily basis, so it's over from that range. Okay, sure. Thank you, and all the best. Thank you. Thank you. The next question is on the line of Nilanjan Karfa from Nomura. Please go ahead. Hi, sir. Just a question going back. Nilanjan, sorry to interrupt you. Your voice is not so clear. Is it better? Wait a bit. Hello. Yeah. The question is on the Xpress Credit again. I think we used to have something called a special PAPL loan where the balances were at roughly INR 6,000 crore in March. Related to that, what is the current balance right now? Incrementally for the June quarter of the total diversity we might have done, what is the total top-up loans that we do? The top-up in both the pension loans, PL, all those things. No, in fact, pension loan, et cetera, it's all covered under other pre-segment loan. There is no special- No. We had special PAPL, which we have discontinued because that was only meant for during the COVID period, and we did not see great traction there. The special PAPL has been withdrawn. The balance probably would have come down from INR 6,000 what you are speaking. I don't have the numbers, but the product is not offered anymore. Okay. The special PAPL is now converted into a Kavach loan. Is that how? No. Kavach is absolutely a fresh loan which has been given, and that's for those who suffered from COVID, and it was based on the expenses which people have incurred from COVID. Right. Sir, what is the top-up loan, total top-up in that Xpress Credit across all the products? No. Top-up actually is something which is an annual feature because people, depending upon their salaries, they come back. I don't think we'll have that kind of product available with us right now. Okay. The second question is on the restructured assets. I think in the March quarter, the pipeline, including implementation, was at roughly INR 17,800 odd crores. Out of which, I think we have implemented almost INR 13,000 crores. Is the balance going to come or that folded into NPA too? No. Only INR 2,000 crore worth of applications are pending for restructuring. Rest everything else we have dealt with. Question was under any residual under- No. Nothing to do. Nothing on the first one. Nothing. Okay. All right. Thank you, sir. Thank you. Sorry, sir. Just a question, additional question. The additional provisions that you do on the NFB, this is part of the standard that we disclosed. Yes. These are non-fund based facilities that are outstanding against accounts which are under restructuring under the ICA mechanism where there has been an overdue. This has been made on a prudential basis from the NFB outstanding. This is included in the INR 29,850 crore. Yes. This is forming part of 5,051. The standard asset provision will be only against the fund-based outstanding. The provision that is made against a non-fund based outstanding is always classified into other provisions. Sure, sir. Understood. Thank you. Thank you. The next question is from the line of M B Mahesh from Kotak Securities. Please go ahead. Thank you, sir. Just a couple of questions. One is, on that slide, can I have what is the outstanding restructured loans at the end of this quarter? If you could give us the ratio of it as well. Outstanding restructured account would be. Total restructured. Total restructured would be about INR 12,995. INR +5,246. INR +5,246. That is our total restructure. In fact, if we reckon our pending restructuring also, which is INR 2,056, then the total restructure comes to INR 20,297. INR 20,297. It is just a marginal increase to the last year, right? It's been about INR 2.5 crores or INR 3 crores. Why is the provision for standard gone up so much this quarter then? Yes. The loan book has declined. Okay. You still made about INR 1,500 crores of provisions. 5% additional provision we are holding on this. Actually, yeah, that is what the whole thing is. For the restructured book, we are keeping 5% extra provision over and above what the RBI stipulates. It's more than that. As for regulatory requirement, we need to keep 10% for general and 5% for MSME. On a flat 15% basis, provision is 20%. We are providing for 15%. Just to understand this, you have a total loan book of about INR 25 lakh crore. If I do 0.4%, it translates to about INR 10,000 crore of provisions standard. This is on the loan book. You have INR 2,700 crore of extra provisions for a INR 50,000 crore of restructured loans. This seems to be much higher. We can give you the breakup. 0.4% is not uniform. There are asset classes under which different provisioning requirement exists. Also, as a matter of prudence, on the stressed sectors, additional provision is also made with the board approval. This is something which 0.4 is the minimum guideline that is accepted. This is worked out in a granular basis on different asset categories as well as different sectors. The unique thing in the past one year has been the restructuring provision that we are making on accounts that are restructured under the restructuring package one as well as package two, the Resolution Framework 1.0 and 2.0, as well as the additional provision that we are making at 15% instead of 5% or 10%. That's how the numbers are little elevated. These are just kind of buffers that are being created over and above the regulatory requirement. Do we have a breakup of this INR 50,000 crore of restructured loans across sectors? We do have. We can provide you. We do have the breakup. I can broadly share with you about INR 8,000 crore are into the retail personal, INR 9,000 crore in retail personal, SME INR 3,000 crore, corporate is just about INR 4,000 crore-INR 8,000 crore. Perfect. One last question. In that non-interest income line, recovery from written off, was there any large item that was booked this quarter or just regular written off pool that is now coming in? Only one item, which is one account recovery of INR 1,692 crores. That had no impact on the yields line, right? No, this is an account which is already fully provided or uncollected part of AUCA, so it directly goes into the other income. The reason I'm especially discussing is if it is pertaining to a litigation settlement that was recovered this quarter, a few times claims were made from interest on the NII line as well. Just trying to understand. We have not done anything like that. We have not done. It's just miscellaneous income only. That's why it's shown under the other income because this is a fully provided for and written off account. It's account parked in advances under collection, so it does not impact the NI line. If the account was in the live ledger still, then it can go into interest income. This is we have provided and taken out and parked it in AUCA. This book, given what you're seeing now in the balance sheet or other trends on the ground, how are you seeing progressively in terms of income from written off? I think we have about annual target of about INR 14,000 crores, and hopefully we should be in a position to recover that. INR 14,000. This is excluding any sale to ARC. Yeah. This is excluding that. actually when the budgeting is done. That kind of slicing we have not done. It is at a portfolio level, we hope that we should be in a position to recover that. Okay. Thank you. The next question is from the line of Siddhant Dand from Goodwill Investments, please go ahead. Hi. My question was actually regarding the salaries that the top management gets. It's quite lower compared to the top private sector banks, and I want to know if the management has actively pursued about getting it to industry level. I feel we will not be able to retain talent on the top level if we continue giving such low salaries to the chairman and the managing director. If you are talking about me, I am not going to leave it to such time. I shall retire from the bank, and likewise, I think my other MD also. In long-term perspective, I don't think it's sustainable to pay so little to the top-level management. See, you have to see it in the context that in the bank, the top management comes from within the bank only. Correct. Why would you want such? Then it will not be sustainable compared to private sector salaries. I think it's a subject matter which is beyond any one of us. I think we'll have to live with that situation, but we have no grudge against whatever. It may be generally felt in the market, but we are quite accustomed to this. We have worked in subsidiaries also where people draw much more. I think it's not a challenge at all. We have much bigger goals to look at than the money. Yes. I agree. In the long-term perspective, 10 years down the line, 20 years down the line. Let's hope. Maybe things might change by that time. Okay. Thank you. If you are so persuasive, maybe things might change also. I hope so. Thank you. The next question is from the line of Anand Laddha from HDFC Mutual Fund. Please go ahead. Hello, sir. I just wanted to understand, this quarter we had INR 60,000 slippages and if you had to look at FY 2021 last year, full-year, we had INR 50,000 slippages. Any view, any sense you want to give us, what sort of slippages we are looking for the full-year? And what sort of recovery estimates are we targeting? Mostly you have to see it in the context. Last year, full quarter, the slippages could be reckoned only towards the fourth quarter. The fact remains that this year, the first quarter in terms of the severity was much tougher. This number has to be seen in that context. There was a whole lot of challenge in terms of mobility. At a point of time, all of us were under obligation to run our show with just what 15% of the employees, we had to run the operations. We have ensured that the operations continue and we should be in a position to contribute to the economy. I think in that context, it has hit the most. Nevertheless, with kind of restructuring and hopefully with the economic activity coming back. Quarter-over-quarter, things may not move in a very linear manner. It may be different depending on the each quarter. No, sir. Last year, full-year, we had 20,000 slippages. This year, what we had is this. If one has to take a full-year view of FY 2022, where do you see or what is the situation on the slippage side for the full-year? On the recovery upgrade side, do you see it is 90, you see more upgrade and recovery coming in or is there any internal budgeting we have done or which we expect? No internal budgeting we have done, but it is all based on certain assumptions. How far those assumptions are maintained, how far those assumptions stay relevant, that is something which you'll have to wait and watch. We are going through very uncertain times. I think giving any kind of prediction at this stage may be very inappropriate, but maybe after second quarter, maybe we'll have some visibility and perhaps, the potential threat of wave 3 also will be behind us. That will be a point of time when we can probably come out with some kind of an indication how the year looks like. Perfect, sir. That's all. Thank you, sir. all. Thank you, sir. Thank you. The next question is on the line of Tushar Sarda from Athena Investments. Please go ahead. Yeah, thank you. Thank Thank you for the opportunity. I wanted to get a sense of, since SBI is going so much digital, over three to five years, what kind of cost-income ratio reduction can one expect? I understand you will have a lot of constraints because of the structural states and union and all. If you can give a medium-term trajectory on the cost-income ratio. It is more like what we expect. How far will they let it happen to be seen. We would like to be as efficient as the best of the institutions irrespective of the ownership. In that context, I feel that since we have got distribution reach of more than 42,000, which is spread out across the length and breadth of the country, rural, semi-urban, metro, all locations. Keep in mind we are moving away from the pure banking to a status of a financial super store and then if at all it becomes a reality, we can perhaps leverage these 22,000 plus branches for distribution of products from our various companies as well as apart from dispensing the banking related services. Having said that, it would not be out of place to mention that when it comes to the various products from our subsidiaries, it's actually a blue ocean opportunity for us. If at all we succeed in doing that, it will actually shore up our other income significantly and also it will make the bank a bit light also in many respects, and this will probably help us in improving our ROA and as well as ROE. Thank you for the answer. If one looks at your subsidiary, they are already, in terms of performance, best in class in terms of return ratios and expense ratios and all. Only the main bank where one feels that there is a lot of scope. If you look at, for example, Bajaj Finance, they've managed to significantly reduce their cost income ratio over last four, five years. I'm sorry to interrupt you, but a few voices coming in and out. Can I request you to use the handset? Yeah, sorry. Thank you, sir, for the detailed answer. They are already very efficient and probably have best in class ratios. It's the bank where I think there is a huge amount of scope. If you look at, for example, Bajaj Finance, they've reduced their costs significantly over the last four to five years. I wanted to get your sense in terms of% basis or target or something like that and maybe an aspirational target. I think we are actually taking some steps. Maybe it is too premature for us to talk about that in this analyst meet, but maybe another quarter or two, we should be in a position to articulate those thoughts also, which will probably help us in reducing our cost. The answer which I gave you was essentially from the point of view of improving our other income. Because in the cost-to-income ratio, income is a very significant component, and if at all we can improve our other income, it will go a long way in terms of helping us in reaching our cost-to-income ratio goals. As I mentioned, that we would like to be best as far as this industry is concerned, as for the cost-to-income ratio is concerned. Okay. Thank you, sir, for a very detailed answer. Thank you. Next question is from the line of Ashok Ajmera from Ajcon Global Services. Please go ahead. Thank you, sir, for this opportunity. I got it very late and most of the questions have already been answered by you. Sir, my compliments to you. Sir, it is the highest, I think, quarterly profit of the bank over INR 6,500 crores. Even in spite of all this little bit of pessimism, which has been fueled because of the COVID-19, I'm very optimistic that the bank will do well in the next few quarters and years. Having said that, sir, I would just like to know, on the optimistic note, what is our sanctions pipeline? I mean, how much have we got the sanctions which we have not availed? How much is out of the existing working digital sanctions regularly, which are already there, which is still available to be availed? If everything goes well and if there is no third wave, where can we go from here in advances or credit front? Ajmera sir, thank you very much for your compliments. When it comes to the sanction limits which have not been availed, they are aggregating to somewhere around INR 3 lakh crore. The pipeline for the proposals is about INR 1,30,000 crore. Let me share with you, we have sufficient liquidity available with us, and we have enough headroom available in the capital. We are actually gearing to support this kind of a growth in credit. Great, sir. With all these sanctions, all these cost-to-income ratio and everything will automatically come under control. Absolutely with your credit growth and we don't have too much to worry on that. Sir, my second one, data point. You got unresolved cases of the NCLT, 180-360+ days. What is the total outstanding amount and the provision made on that? Cool. Maybe I'll request No. Overall NCLT filed cases is about INR 2 lakh 19,000 crore. If you want a particular breakup on the basis of number of days, that's something I can share with you later. Yeah. Sir, only those cases which are 180 to, you know, 90 days sanction, that is the number of accounts that generally liquidate the amount. Okay, no problem. That detail is not readily available, Ajmera sir. We will share with you. Okay. Sir, this one, the NARCL front. What is the progress there, sir? Are the number of accounts and the amount remains the same? No, it remains the same, what we have indicated earlier also. It remains the same, almost around INR 50,000 odd crore. That is the amount. When do we think INR 2,000 crore? Yeah, somewhere around that only. Thank you. Yes, that's right. That will happen in two months. I think as soon as the progress is quite satisfactory when it comes to NARCL. Hopefully it will happen soon. Okay. That will also come in the recovery, almost even if it is about 15%-20%, that's the INR 5,000 we had calculated last time. Around INR 750 crore-INR 800 crore of cash you can get out of that. Let us hope for a better number via one year. All right. Sir, these other provisions, I think my other colleague was also asking and somehow I missed it. Out of the total provision of INR 10,052, other than interest expense, INR 5,029 is for NPA and even if the profit is lower, out of that INR 2,928 crore is your other provision. Can I get the breakdown of that? The other provision for INR 2,928 crore? That, Ajmera, INR 2,800 is on account of the NFBs, non-fund-based limit relating to those cases which are under ICA and they are restructured. A significant amount of that is on account of that. Okay, all right. That is why the amount was looking a little high. Yeah. Sir. Sir, sorry to interrupt you. I request to come back in the question queue for a follow-up question. Thank you. The next question is from the line of Jai Mundhra from B&K Securities. Please go ahead. Jai Mundhra, may I request you to unmute your line from your side and go ahead with your question. Sure, I'll just check the restructuring numbers that you had given. Total including the pipeline is around 30,000, of which SME is 3,000 and retail personal is 9,000. I think corporate you mentioned was some 4,800. What is the remaining? I just wanted to double-check those numbers. No, I mentioned about retail personal is about INR 9,000 and SME is at INR 3,630. Corporate is about INR 7,800 crores. Okay, wonderful. Right. Lastly, sir, in your annual report, if I see advances to public sector, that has declined, I mean, to PSU enterprises. Any comments there, sir? Public sector advances are somewhere 43% is the share of public sector advances, PSUs and government department. Right. If I see the year-on-year, that has declined by at least 10% or so. Any comments there, sir? No. See, it depends. If at all, some of the public sectors would have repaid also. For instance, some of the public sector undertakings are cash surplus. They have repaid. That's a part of the game. Moreover, when it comes to iron and steel these days, they are having cash surplus and all of them are really trying to deleverage themselves. I think it keeps on happening. Sometimes it will go, sometimes it will come down. Understood. Okay, sir. Thank you and all the best. Thank you. The next question is from the line of Rakesh Kumar. Please go ahead. Yeah. Hi, sir. Just one small question. Specifically the overage number. If we see the difference increase in development expenses, there is some bit of a volatility in that number. If you could help us, what is the reason for such a sharp rise in this quarter? Two major components. One, of course, is we have a large number of BCs now, about 70,000 odd BCs who are really helping us out. Second is essentially relating to this time we had started going for PSLCs right from the first quarters onward. These are relating to that also because it gives us enough leeway when it comes to average private sector loan. That is something as a strategy we decided that we'll start going ahead for buying out PSLCs from the 1st quarter onwards. These are the two major components. PSLCs are the things that we have bought. What is the quantum and in which sub-segment we have bought and at which type of price? What cover we have paid for? It is Yeah. Pick up your mic, Vijay. Overall, 60,000 PSLCs we have bought. 60,000. Around INR 60,000 crore PSLCs we have bought in the first quarter and pricing would differ. It will be from tranche to tranche, will not be readily available with us. What is the tenure of this? How much time it will vary for? For 1 year. Yeah. Generally, it is for 1 year. What is the cost, sir? Cost paid. It will also differ from tranche to tranche because it is something which is market related. It will differ from tranche to tranche. Okay. Thank you, sir. Thank you. Thank you very much. Ladies and gentlemen, due to time constraint, we'll take the last question from the line of Prakhar Agarwal from Edelweiss. Please go ahead. Yeah. Hi, sir. Just a couple of data points. When I look at your presentation, sir, INR 5 crores and below SMA 1, SMA 2 is INR 11,000 crores. What would that number be below INR 5 crores? I don't think we will. I don't think we'll have that number. Okay. Readily available with us right now. Otherwise, that would be within the system, but not readily with us. Sure, sir. Secondly, on agri side, when I look at not understanding what we saw in FY 2021, that we used to see a fair share in coming in Q1 in terms of agri exposure. We have seen that this time as well for some of our peer banks, agri was a contributor to this quarter. Before us, this was not the case. Is it a mere timing difference or what explains this? No, agri, the portfolio has changed quite a lot. That is, sort of INR 2,14,000 kind of a portfolio, which we have in INR 2,03,000 kind of portfolio which we have. Now the KCCs would be just about INR 100,000 crore only. 1,02,000. 1,02,000. INR 1,02,000 crore. The remaining is essentially gold loan, which are as high as INR 70 some crore. We have got loans to SHGs and also some investment credits, et cetera. The composition of book has undergone a change. Maybe that is perhaps the reason. When it comes to the KCC, the repayment happens only according to the cropping seasons as per the RBI guidelines. As and when the cropping season happens, then the demand is raised, and the behavior at the material point of time gets captured in the accounts. Okay. Just one last question. Any monetization plans during the year, if you have any? Any monetization plan? For the year that you probably see any sales. I think it is a little premature. At a material point of time, we'll share with all. Okay. Sure, sir. Thank you. Thanks a lot. Thank you. Thank you very much. Thank you.