Bandhan Bank Limited ($BANDHANBNK)

Ladies and gentlemen, good day, and welcome to the Bandhan Bank Q4 FY '26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I will now hand the conference over to Mr. Vikash Mundhra, Head of Investor Relations, for opening remarks. Thank you, and over to you.

Thank you, Leon. Good evening, everyone, and welcome to Bandhan Bank's earnings call to discuss our business and financial performance for the quarter and full year ended 31st March 2026. Thank you for joining us today. We fully appreciate your time and participation. During today's call, we will walk you through our operating performance, key developments during the period and our strategic priorities going ahead along with our view on the operating environment. Joining us this evening are Mr. Partha Pratim Sengupta, Managing Director and CEO; Mr. Ratan Kumar Kesh, Executive Director and Chief Operating Officer; Mr. Rajinder Kumar Babbar, Executive Director and Chief Business Officer; Mr. Rajeev Mantri, Chief Financial Officer, and other members of the senior management team. I'm Vikash Mundhra, Head of Investor Relations. Following the management's remarks, we will be happy to take your questions on the quarter's performance and our outlook. With that, I would now invite our Managing Director and CEO, Mr. Partha, sir, who will share his opening comments. Over to you, sir.

Thank you, Vikash. Good evening, everyone, and thank you for joining us today. On behalf of Bandhan Bank, I am pleased to welcome you to our earnings call to discuss the financial performance for the fourth quarter and full year of FY '26. We appreciate your continued trust from us. It has been an important and challenging year for the bank, and we look forward to share our perspective on the quarter, the evolving operating environment and our priorities going forward. This quarter marked an improvement across many key parameters, reflecting strengthening fundamentals across our core businesses. We saw encouraging momentum build through the quarter underpinned by disciplined execution and a sharp focus on balance sheet quality. On the asset side, advances continued to grow at a healthy pace. The EEB segment has not only stabilized but also delivered good sequential growth, reinforcing our confidence in the portfolio. At the same time, our secured book continued strong growth trajectory and adding resilience to the overall loan portfolio. On the liability side, we made meaningful progress in improving the quality and granularity of our deposits. CASA growth was strong during the quarter, and retail deposit mobilization continued to grow at an elevated trajectory. In parallel, we consciously reduced the share of high-cost bulk deposits, which has helped strengthen the liability profile and improve granularity going forward. These actions are reflecting in our profitability metrics as well. Margins showed an encouraging upward trend during the quarter supported by the sustained reduction in cost of funds. Fee income also saw a healthy pickup led by the strong growth in recurring and predictable streams such as processing fees and third-party product income, further enhancing the stability of our revenue profile. Asset quality strength during the quarter were constructive. We saw not only a decline in slippages on a sequential basis, but also a meaningful improvement across the [indiscernible]. This reflects improving portfolio behavior and the effectiveness of our early warning and monitoring mechanisms and improved collection efficiency. While the progress this quarter has been encouraging, we remain clear on the areas where we are sharpening our focus for that. Granular deposit growth, including CASA continues to be a key priority, and we are intensifying efforts to deepen customer engagement, create digital journeys and enhance product propositions to further strengthen our liability franchise. Operating expenses were elevated during the quarter due to some nonrecurring items, and we remain focused on driving tighter cost discipline and improving operating leverage over the coming periods. Additionally, even as slippages and SMA trends improve, we continue to place strong emphasis on recovery efforts, limiting incremental stress and moving steadily towards our medium-term credit cost aspirations. This remains a core area of management focus. Overall, the quarter reflects improving fundamentals, strengthening business momentum and continued balance sheet resilience. We believe the actions we are taking today will position the bank well for sustainable profitable growth over the medium term. While my colleague and CFO, Mr. Rajeev Mantri, will shortly walk you through the financials in detail, I would like to highlight a few key performance indicators from the fourth quarter of FY '26. At the end of FY '26, our gross advances stood close to INR 1.54 lakh crores, delivering a healthy 13% Y-o-Y growth. Deposit balances scaled up to INR 1.66 lakh crores, supported by strong traction in retail and CASA deposits, reflecting our strategy of strengthening the quality and sustainability of our liabilities. Retail term deposits continue to scale up at a strong pace, recording growth of over 30% Y-o-Y, reflecting growing customer confidence and the effectiveness of our brand-centric distribution strategy. CASA balances strengthened sequentially and now account for 29% of total deposits. Consequently, the overall retail deposit composition, including CASA and retail term deposits improved further to [ 74%, ] reinforcing the stability and granularity of our deposit base. Our focus on optimizing the composition of the loan book continued with the share of secured lending remaining largely stable over the quarter. The pace of growth of secured book over the last year has been strong, enabling us to achieve our targeted portfolio alignment earlier than planned. We expect to sustain the current mix in the near to medium term with gradual increase. The quarter saw healthy margin expansion, which means improving sequentially to 6.2% as funding costs softened. Credit costs continued their downward trajectory and asset quality metrics strengthened with gross and net NPA at 3.3% and 1%, respectively, and provision coverage at 85%, including technical write-offs. On Q4 '26, our net total income stood at INR 3,566 crores while our operating profit was INR 1,441 crores. I'm pleased to inform the bank reported a PAT of INR 5,534 crores for the quarter, reflecting a growth of 68% Y-o-Y. Our capital position remains robust. The capital adequacy ratio improved and stands at 18% and Tier 1 capital at 17.3%. This provides ample headroom to support the future growth. We also continue to expand our distribution footprint, taking the branch network to 1,955 branches. During the year, apart from adding new branches, we have upgraded most of our housing finance center to fully pledged banking branches and some of them also got merged with the existing branches. Further, we also have 4,400 EEB banking units spread across the country. This expansion and reach enhances and further strengthens our ability to serve customers more effectively. Furthermore, I'm pleased to inform you that the Board of Directors has recommended a dividend of INR 1.50 per share, subject to the approval of the shareholders at the forthcoming annual general meeting. To conclude, the performance this quarter reflects the tangible progress we have made across growth, profitability, asset quality and balance sheet strength. The improvement we are seeing is broad-based and driven by a clear strategic direction, disciplined execution and a sustained focus on building a resilient and sustainable franchise. While we remain mindful of the external environment and accessing implications, our priorities remain unchanged, strengthening our core businesses, improving the quality of growth, driving efficiency and consistently enhancing shareholders' value. With a strong capital position, improving fundamentals and a clear road map ahead, we believe Bandhan Bank is well positioned to deliver steady and sustainable performance going forward. With that, I would now like to hand over the call to our Chief Financial Officer, sir Rajeev Mantri, who will take you through the financial performance in greater detail. After that, we will be happy to take your questions. Thank you.

Thank you, Partha, sir, and a warm welcome to everyone on the call. We'll begin by reviewing the bank's operating performance for the quarter. I will brief over the key financial highlights. Along with that, we'll also discuss our business progress over the period. We will start with the advances portfolio where the development this quarter underscores the steady headway we are making in repositioning and strengthening the balance sheet. As of 31st March 2026, the loan book stood at INR 1.54 lakh crores, delivering 13% year-on-year growth and a healthy 6% sequential expansion supported by momentum across all major businesses. The EEB portfolio at INR 53,906 crores remains lower on a yearly comparison, which was a industry-wide phenomenon. But it posted a strong sequential growth of 8% during the quarter. Growth in the non-EEB segments remain robust with the portfolio expanding 25% year-on-year. This book represents close to 2/3 of total advances, reflecting continued progress in portfolio diversification. Within this, retail assets recorded strong growth of 46% year-on-year, driven largely by secured products such as commercial vehicles, construction equipment, auto loans and gold loans. Wholesale banking also delivered solid expansion of 33% year-on-year, aided by deeper client engagement and disciplined execution. Secured book grew 25% year-on-year and now forms nearly 56% of the overall portfolio, supporting further improvement in the asset quality and risk revenues. Overall, the advanced mix is more balanced and [ deconcentrated ] with no single segment dominating the book. EEB group lending accounts were 23% of advances, small business and agri loans at 12%, wholesale banking, 31%, housing 23%, and retail loans nearly 11% of total advances. Turning to liabilities. The total deposits stood at INR 1.66 lakh crores as of 31 March 2026, reflecting a 10% increase over last year and a sequential growth of 6% compared to the previous quarter, which was broadly tracking expansion in advances. Growth was consciously moderated as we focus on strengthening retail-led deposits without tapping incremental bulk funding. A key highlight has been the continued moderation of bulk deposits, which declined 7% year-on-year. Share of bulk deposits now stands at about 26% of total deposits, down from 31% last year, reflecting a clear and deliberate move away from higher cost, less stable funding sources towards a more resilient and granular liability structure. Within our bulk deposit base, it is also important to highlight that around 89% of these deposits are [indiscernible] in nature. This provides meaningful visibility and stability to our funding profile. Our retail deposit franchise continues to steer well. Retail balances, including CASA and retail term deposits grew 88% year-on-year. Retail term deposits, in particular, showed strong traction with 30% year-on-year growth underscoring customer confidence and deeper engagement with the franchise. On CASA, balances increased to [ INR 48,752 ] crores, delivering strong 14.1% sequential growth, driven largely by a sharp pickup in the current accounts. Savings balances also moved up 7% during the quarter. As a result, the CASA ratio improved to 29.3%, up by nearly 200 basis points quarter-on-quarter. Let me now turn to asset quality, where we continue to see consistent improvement across the key parameters, reflecting better portfolio behavior and disciplined execution. Starting with collections, performance strengthened further during the quarter. Overall correction efficiency excluding NPA improved to 98.9% in March 2026, up from 98.1% in December 2025. Within the EEB portfolio, collections remain strong with quarter-wide efficiency at 99.3% versus 98.2% in Q3 FY '26. And for the month of March, specifically, it was 98.6%, up from 98% in December. This represents the collection efficiency ex NPA. Additional details for this is available on Slide 22 of our investor deck. If we talk about the collection efficiency ex bucket, that reflects even a better trajectory. It used to be at 99.3% in quarter 3, has improved to 99.6% for quarter 4. And in fact, for the month of March, it was at 99.7%. Improvements are equally evident in slippage strength. Gross slippages at the bank level declined sharply to INR 1,028 crores in Q4 compared to INR 1,314 crores in the previous quarter. This moderation was largely driven by the EEB segment where slippages reduced meaningfully to [ INR 690 ] crores compared to INR 942 crores in Q3 FY '26. At the same time, recoveries and upgrades improved sequentially, though marginally taking a total to INR 350 crores during the quarter. Early delinquency indicators are also moving in the right direction. In the EEB book, the 0 to 90 DPD pool declined to about 3% of advances, down from 4.6% in the prior quarter, with a sharper reduction seen in the SMA-0 category. See Slide 23 of the investor deck for more details. As a result of these trends, inherent asset quality metrics strengthened further, gross NPAs remained stable at 3.3%, while net NPAs improved to 1%. Credit costs moderated to 2% for the quarter compared to 3.3% in Q3 and stood at 3% for the full year of FY '26. Provisioning coverage remains comparable with PCR at 71.1%, which rises to 74.2% if we include the provisions against security receipts and it rises to 84.9% when adjusted for technical write-offs, which will be including technical write-offs. With that, I'll move on to the financial performance for the quarter, beginning with net interest income for the quarter stood at INR 2,796 crores, reflecting a 1.4% year-on-year growth and a 4% sequential increase. Therefore, accompanied by strong expansion in margins with NIM improving to 6.2%, up from 5.9% in Q3. The margin uplift was primarily driven by nearly 23 basis points quarter-on-quarter reduction in deposit costs along with a 14 basis point improvement in advances deals. Turning to other income. Performance was encouraging with growth of 10% year-on-year and sharp 12% increase over the previous quarter. Within this, the third-party products distribution income rose significantly by 34% year-on-year, reflecting improved branch level penetration and stronger cross-sell execution. Processing fee income also rebounded, supported by higher disbursement volumes, especially within the EEB portfolio. Moving to expenses. The operating cost for the quarter came in at INR 2,135 crores, representing a 10% increase sequentially. This was largely attributable to nonrecurring items, namely PSLC-related costs and technology expenditures. On a full year basis, however, operating cost growth remained well contained at 9% year-on-year. While the OpEx to average asset ratio rose to 4.4% for the quarter due to the 2 nonrecurring items. For the full year FY '26, the ratio remained at our guided level and was at around 4%. Consequently, operating profit for Q4 stood at INR 1,441 crores. After accounting for provision and taxes, the net profit for Q4 was INR 534 crores, representing a 68% increase over the same period last year and 159% increase over the previous quarter. Return metrics for the quarter also strengthened. The return on assets for the quarter was at 1.1% and the return on equity was at 9%, reflecting improved operating efficiency underlying profitability. Briefly turning to the full year performance. NII for FY '26 stood at INR 10,830 crores, a decline of 5.8% year-on-year on account of moderation in NIM led by continued expansion on secured book and impact of the repo rate cut. Operating profit stood at INR 5,855 crores, reflecting resilience in core earnings. NIM OpEx to assets and credit cost for FY '26 were 6.1%, 4% and 3%, respectively. Higher credit cost was on account of pressure on the EEB book industry-wide phenomenon that we saw layout during the year. Net profit for the full year FY '26 was INR 1,224 crores, resulting in an annualized ROA of 0.6% and ROE of 5%. To summarize, the quarter reflects steady progress across growth, asset quality, margins and balance sheet resilience. Actions over the past 2 quarters are translating into more stable portfolio improving profitability while staying disciplined on risk and costs. We remain focused on sustainable growth, strengthening the liability franchise and further improving the return metrics. With that, I'll now hand it back to the moderator, and we'll be happy to take your questions.

[Operator Instructions] We take the first question from the line of Piran Engineer from CLSA.

Yes. Team, congrats on the quarter. Am I audible?

Yes.

So this first question is what led to the strong average CRAR growth this quarter doubled?

[indiscernible] will answer this.

We had focused on current account affluent segment where we could manage a good growth in the current account at the granular level month-on-month, which has resulted in the total growth, which has happened throughout the year.

Okay. So there's seasonality in this, right? It won't fall in 1Q?

These are small SMA customers who have opened the current accounts with us. There is no seasonality in this. Our [indiscernible] department has also continued to show deposits from the very first matter also added. The financial results of all the business initiatives and efforts, right, geared towards improving the current accounts.

And is there any particular target CRAR ratio that we have in mind?

So we'll continue to improve. So that is -- we have not yet crystallized the target to what percentage we'll come. But definitely, our focus is that we will continue to improve. Last year also, we were at 31%. The sooner we achieve, access this milestone to set up a goal to fix our next target.

Yes, I think our overall CASA CPI has gone up from 27.3% to 29.3%, within that CRAR has improved further. As Partha has mentioned, we'll continue to improve it further. We are also broad based on introducing more products within the table of current accounts and savings that will help us in terms of improving the CASA further.

Understood. Okay, okay. Fair enough. Secondly, how are we thinking about neutralizing our PSL shortfall and go back to that era of selling PSLC rather than purchasing PSLC?

So a number of steps have been taken in this regard. So this year, the cost has been definitely quite high. And in the Q4 also, we have to incur a cost of around INR 60 crores. So what we have done is that we have revamped our entire trade process in our EEB segment and also focused on our direct agriculture loans. So the effect of these are going to come. So this year, we are expecting that the cost would come to, I would say, almost 50% to what we have incurred last year. That is our aim this year. Going forward, next year, it will be almost neutralized or coming to 0. And after that, we will continue to earn from this PSL portfolio.

And sir, this is all from direct agri loans?

It will be more from the EEB segment also where allied agri loans will be covered and also the agri loans also and also the small marginal partners for some [indiscernible]. So it also improved the [indiscernible] process that we have for microfinance loans on the EEB segment, and the percentage of EEB loans for [indiscernible] has been improving steadily, which will also help us going forward.

Okay. But then, Rajeev, what sort of EEB loans today do not classify for PSL and going forward, they will classify, like what is the change, if you can?

No. Again, I'm telling you that it is more of a revamping of a process. So currently, what was there, the agriculture of the allied agriculture loans that we're giving it are not getting captured into our system. So we have made that available and I can tell you that currently, a year ago, it was only 10% or 15% of the EEBs, which was coming under the PSL, qualifying for PSL. Now it has already increased to 40%. Going forward, it will increase to 60%, 65%. So the revamping has already been done. And you see for the RBI also the circular clearly mandates that we have to follow a certain process and procedures to get them qualified. So those steps have been taken, and we are now -- already we are seeing the gain show. As I told you that almost 40% now have been covered on the EEB segment. So going forward, this percentage would increase. And apart from that, we are also focusing on the agriculture loans. That is a direct to consumer, which will have the PSL.

Understood. Understood. And sir, my next question is about the vehicle business. Vehicle finance now with the book is INR 5,000, INR 6,000 crores. It's a decent size. Can you talk a bit about it? How much -- firstly, who is our typical customer who comes to us? Secondly, how much of the cross-sell happens to own deposit customers versus open market? And is this entirely car loans or is it 2-wheelers EV, et cetera, also?

Yes. So [indiscernible] will be answering, he's our retail head.

So for -- this is like to answer your first question, the retail loans includes 2-wheeler as well as car loans. And the majority of this customer segment is [ salaried ] and [indiscernible] mix, but majorly, it is salaried segment. When it comes to other vehicle finance which we talked about, the commercial [indiscernible] construction equipment, where our major focus currently is on a strategic and super strategic customers. And some [indiscernible] about 9%, 10% of our customers are retail who are holding the fleet of less than 10 vehicles. And about the cross-selling. So currently, about almost 20% of our volume comes from our own customers, which we call it in an existing branch customer. So that is about 20%.

Okay. Sir, just broadly, what is the mix of loans between CV, PV, 2-wheelers?

Okay. So about INR 3,000 crores is commercial vehicles, and about INR 1,700 crores is construction equipment, about INR 1,800 crores is car loans and about INR 900 crores is 2-wheelers.

[Operator Instructions] We'll take the next question from the line of [ Diwan Gao from Scofield. ]

Just on the operating expenses, you mentioned there are some [indiscernible] sectors. Do you mind to give some color on [indiscernible].

There is some disturbance. Can you just repeat a little bit?

Do you want to repeat the question?

Yes. Am I audible now?

Your line is very -- yes, better now.

Okay. On the operating expenses, you mentioned there are one-off factors. Do you mind quantifying those one-off factors and which were they?

Yes. So I think during the quarter, we had a couple of items which actually do not appear to be recurring. So one is the PSLC cost, the Priority Sector Lending Certificate cost, which as we said that we have taken actions that this should go -- will get reduced. So during the quarter, we had roughly around INR 50 crores of increase that came through because of the PSLC costs. Apart from that, we had an increase in the IT expenses also, which was also amounting to a similar level of around [ INR 50 crores. ] Within this, there are a number of items which were more timing-related issues, and therefore, we don't expect that to get repeated [indiscernible]. These 2, I think, are a couple of key recurring items, which came through during the quarter, roughly amounting to about INR 120 crores.

Got it. And then the next question is actually thinking about, I know the macro concern, assuming kind of relatively stable environment, how should we think about ROA for FY '27?

I think the -- sorry, the audio wasn't very clear. Will you repeat the question?

The line is working naturally. If you can speak a little bit slowly, I think it will be better.

Sorry. Yes, any thoughts on FY '27 ROA?

Yes. So I think ROA, okay, so ROA, we saw improvement from 0.4% in Q3 to a 1% in -- 1.1% in Q4. And the reason for this is, one is we have seen improvement in the income as we had highlighted the cost of deposits have come down. And also the other income has seen an improvement. Apart from this, we have seen a reduction in the slippages, which led to a reduction in the provisioning of the credit costs. And these factors, despite a bit of a partial offset to increase in expenses, overall, we still saw the overall profitability improved sequentially. And going forward, as we have been guiding the market, we will be working towards seeing how we can gradually keep on improving the ROA towards the guided level of between 1.6% to 1.7% ROA by the exit of FY '27, give or take 10 basis points. So we intend to make sequential improvement towards that aided by multiple factors and also further sort of improvement in cost of fund [indiscernible].

So just to give more clarity on it, the major -- one of the major factors is that we could reduce our credit cost. So 2%, number one. Number two is the NIM has increased as we've seen to 6.2%. And these are the 2 major factors. And definitely, the other income has also gone up. This is the third one. And the fourth is that despite an increase in the operating costs, the operating costs have increased, so the trajectory of 1.1% has been maintained.

[Operator Instructions] We take the next question from the line of Jayant Kharote from Axis Capital.

So first question is on the month of April, now that elections are almost closing in tomorrow. Anything that we should -- I mean I think this time, we didn't have any interruption, so to say, from collections. So fair to say the collection trends would have held up in -- through the events of April as well?

So let me tell you a clear picture that till now, there is no adverse effect on collection on account of, I would say, either election or war. So the collection efficiency, what Rajeev has stated is still continuing. But definitely [indiscernible] I think [ 1, 2 ] basis point, it comes down in the month of April, but which is quite common for that. But on the ground, no adverse effect is being seen. And we are hopeful and expecting that this trend will continue.

Great, sir. Sir, second question is on the RBI ECL impact. I don't know if you already spoken in the past about this, but given that the direct -- I mean, the final guidelines are exactly as what the draft was, you would have had some time to calculate. So how would your steady state credit costs look like? I'm not concerned about the onetime impact. I'm asking about the steady state credit cost. And just a corollary to that question also, on your unsecured book, what is the standard asset provisioning that you currently do?

So Rajeev here. So I think on the ECL, we do have the transition impact, which is based on the December 2025 portfolio based on the earlier draft circular. Yes, I think the latest circular came through yesterday. We are still going through if there are any further changes to that and what will be the implications of it. But based on the earlier draft circular in December 2025 portfolio, the transition that we expect is to be roughly around INR 1,250 crores, which as we are allowed to transition it or spread it over 5 years would translate to about INR 250 crores per year impact. Given the [indiscernible] circular talks about this can be passed through the retained earnings or capital results, we expect roughly 15 to 17 basis points of impact on the CRAR every year for those 5 years. So that's the indication based on the transition. The flow impact is still being computed. We don't have a number as of yet. As that gets computed, we'll have to assess the new circular implications and then we'll be able to come back to what the flow impact should be. But as of now, this is a range of impact based on the transition that has been shared with you.

So the standard asset provision.

Yes. On the standard asset provision, we basically -- on the unsecured portfolio, which is, let's say, micro finance, which is the largest one.

So to understand correctly, we are having around INR 1,072 crores provisions on the standard assets. So that [indiscernible] that includes 2 additional provision. One is that upon the standard assets, we take an additional 0.75%. And also, we have got an additional provision of around INR 136 crores. So with this, I think INR 1,072 provisions are already there in our books. So our impact on the ECL going forward, that is only 5% in most of the cases, expecting some [indiscernible] flowing a little bit here. But since we are already continuing to make 1% additional provision on the standard assets, which is 75 basis points higher than what is now required as for direct norms for the [indiscernible]. So in fact, maybe that will be 4% on the [indiscernible] value for the [indiscernible]. But I think that going forward, the way we are managing our assets if we can manage our SMA-1 and SMA-2 books much more correctly, this requirement will not have that much of effect on our credit cost.

And I think if I can translate these 2 percentages, for EEB, the requirement is 0.25%. We maintained 1%, which is 75 basis points higher, like Partha has mentioned. On personal loans and on ABG, it's around 0.4%, in line with the other requirements.

So just to rehash everything, EEB, you're already maintaining 1%, non-EEB unsecured is the only portion where you have to go from 40 bps to 1%?

That's correct. That's right.

Congrats on the quarter.

We take the next question from the line of Ankit Bihani from Nomura.

I wanted to know that what proportion of your deposits would be [indiscernible]? And the second question is, how should one think of margin trajectory from here on? Should we see improvement or a 4Q -- generally, 4Q is a seasonally strong quarter, so can we see some moderation from here?

Yes, sure. Our [ debt land ] banking is going good.

So our government deposits on the CASA side will be around INR 6, 000 crores out of the total deposits that we have [indiscernible].

The retail composition is overall 74%, as you've seen for the year, we have improved [ 59% ] last year. So we have improved to 64%. We have reduced dependence on bulk deposits and majority of these deposits used to come from the government department also. So that portion, we have reduced it. So earlier, it is almost INR 3,200 crores. Onetime wise, we have reduced that over the last year from the rate and percentage is almost 7%.

So the CASA share also was around 12%, 12% of CASA is from the deposits.

And on the margin trajectory, just adding on to that. So [indiscernible] repricing is largely done or we should see cost of fund benefit following through in the coming quarters as well?

Yes. So I think as we have guided, we expected the cost of funds to continue to improve in Q4, Q1 and Q2. We have seen the improvement comes in Q1. The term deposit repricing has happened. And therefore, we had seen sequential improvement. And as a result, the margins have gone up from 5.9% to 6.2%. The 30 basis points increase is largely driven by the cost of funds, partly also due to the impact of lower slippages, resulting in lower in terms of our sales, right? As we go through the next 2 quarters, we do expect further improvement because there are further term deposits coming in for renewals. So we do expect at least another 10 to 20 basis points of improvement over the next 2 quarters.

10 to 20 basis points improvement on cost of fund savings?

Yes, based on the cost of funds improvement on the [indiscernible].

And on the credit cost line, how should one think? Should we consider 4Q as our base? Or again, as you highlighted, there were lower the [indiscernible] due to lower slippages. So do you see the slippages moderate from here or we could see a slight inch up in 1Q on [indiscernible]?

Yes, I think we have -- as I mentioned, our [indiscernible] bucket collection efficiency has improved to 99.6% for the quarter and in March months, it was 99.7%. If we are able to maintain these levels, we definitely expect these slippages to continue to remain at these levels. We aim, of course, to be wary of the implications of the war that's happening, what exactly happened on that trend as well as any other externalities. But based on the efforts that the team has taken and the improvement in the collection efficiency, we do expect these slippages to hold at these levels and maybe improve marginally as well. What I'm telling is that EEB has made a remarkable improvement. So the slippage have been -- last quarter, it was INR 1,328 , it has come down to INR 793. It's a little bit of point I'm just taking for the [indiscernible]. And also in the slippage, even if you see the drop slippages has also reduced from [ 942 to 690. ] So the trend is still continuing. So we are quite hopeful.

Yes. I think this is an important point. The overall DPD pool also, we have seen an improvement. The DBD pool has come down from 4.6% to 3.1% across SMA-0, SMA-1 and SMA-2. So the biggest reduction in SMA-0. And that will also help us in terms of [indiscernible] for the next quarter at similar levels.

Okay. And any growth outlook on the deposit and loan growth front? As I remember earlier, we had guided that deposits will continue to grow faster than advances, but currently, we are lagging. So how do you think deposit environment panning out? And what would be your guidance, given our balance sheet, we are still running at a lower rate versus the industry loan growth. What could be outlook for FY '27, '28 for the loan and the volume growth?

So our guidance remains the same here. We are particularly aiming a growth of around 14%, 15% in the credit. And the endeavor would be to have a better deposit growth rate. But yes, a challenging factor is that the [indiscernible] industry has now reversed. If you look at from November onwards, incremental credit growth is more than the incremental deposits growth. So we have to also look into the industry scenario accordingly also. But definitely, the [indiscernible] whatever the guidance about there, so it will continue.

Also to highlight on our credit growth, whilst the overall number is around 13%. If we exclude EEB, I think the non-EEB book has gone to almost 25%. And we know that the EEB has gone through a cycle year-on-year, it's been a contraction. We have been able to reduce the contraction to only about 5% year-on-year compared to the industry, which actually has been contracting much larger. So therefore, actually, EEB market share has improved even further during this last year as well. So our numbers are not exactly comparable with the peer group because of a little larger portion of micro finance that we have in our books. And on the deposit front, we have consistently shown higher deposit growth in advances. But this time, as we mentioned, consciously, we have reduced the bulk deposit share. And if we exclude the bulk deposit, our retail deposits have grown almost 17.8% or roughly 18%, which shows a very healthy growth rate.

And on the deposit market front, are we seeing any competition, intense competition there? Or is there a chance of [ TD ] rates rising across the banking sector? The [indiscernible] across the banking sector?

I think the deposit competition is definitely intense, and we did see in the month of March itself, the deposit rates go up quite significantly being offered by the competition. And therefore, we have been focusing on improving the structure of granular retail deposits, and that's where the focus has been, and we want to remain steady on that particular strategy. And therefore, we took a call to not grow the bulk deposit significantly during the Q4. And that should help us going forward in terms of optimizing our cost of funds.

And lastly, what was your average LCR for the quarter?

Our period end LCR was around 131%. Average LCR, I think would have been ranged from between 130 to 140.

Okay. So basically, your margins might have been supported by some liquidity, LCR coming down as well? Because as far as I remember, 1Q, we had an LCR of about 200-odd percent. So that has come down gradually to 130 or so, right?

Yes, it's a result of the bulk deposits coming down, which is helping us on the LCR also.

We take the next question from the line of Anand Dama from Emkay Global.

Sir, one question that I had was on your credit costs. So this year, should we expect a credit cost somewhere about 1.5%, 1.6%? Now that the EEB sets obviously being out, and I think initial impact will be largely taken through the balance sheet. So is that a fair assumption in terms of credit cost for FY '27?

So we are keeping our guidance unchanged because if you look at the last year's performance. So the credit costs have substantially improved, and we have ended up at 3% over there. And going by the current trends in the EEB, especially in the EEB segment rate of recovery and the collection efficiency for that. So I think that there will be some improvement in the credit cost going forward. But yes, definitely, there are certain concerns like the war. We don't know the impact. How will it come? And how will it impact the economy, the fuel price, availability and then the cascading effects on the other sectors of the economy which is there. But as you said that going by the current trend, the economy is moving and the portfolio of our bank is also showing signs of a lot of green shoots. I think that we can keep that guidance, and we will be trying to achieve as close to that.

So our guidance, you have mentioned was between 1.6% to 1.7% by the FY '27, which is FY '27. And we will still endeavor to work that out.

Okay. And are we largely done with the sale of NPAs full now?

So it is an option. [indiscernible] is a part of NPA management option is micro. Now we are following [indiscernible] also. So we have not yet crystalized anything. So there's some opportunities we will be looking if we get some good prices of [indiscernible] of our books, we may [indiscernible] the cash flow, that's only the only advantage that happens on [indiscernible]. So it is something as a part of management, it is till now, I can say that we are not crystallized on that, but at the same time, an option available.

I think the two other factors, the [indiscernible], the slippages have come down. The collection efficiency has built up. The ARC sale that we did in Q3 prior to that we did 3 years ago. So it's not something that will be done every quarter. But as Partha has mentioned, this is an option that is available for the bank. And we will look at it whenever we need to do any kind of an NPA management, but there are no immediate plans as of now.

And sir, lastly, in FY '27, with that, the credit cost will come down. Should we expect an ROA above 1%.

So we have started the trajectory that much I can say. So you see that from 0.2% in September, we improved to 0.4% in December and now 1.1%. The endeavor is there. We have not yet changed the guidance for the day and going by whatever the green shoots, we are happy we're seeing in the EEB segment, if that continues, and we are also focusing on the other income front, especially in the wholesale segment. So with all these things and other income by reducing the operating costs on account of [indiscernible] that we have taken for the day, I think that we will try to achieve as we do that. That's all I can say. Definitely is challenged, but we are not changing the guidance as of now.

Just to reiterate the guidance, we had said it was 1.6% to 1.8% of ROA by the exit FY '27, this Q4 FY '27, they were taken basis on. So we will work towards meeting those numbers.

We take the next question from the line of Nitin Aggarwal from Motilal Oswal Financial Services Limited.

Congrats on a good quarter. A few questions I have. Like, firstly, on the NII growth itself, if I see like NII growth this quarter is at 4% Q-on-Q growth. And this has come in despite pretty strong advances growth this quarter, even the previous quarter, we had a decent pickup and margins have improved in both the quarters. So any reason why this growth is lacking the advances growth despite such a margin expansion?

Let me just tell you, the NII, first of all, the interest income last year was affected due to the report [ ex-cut. ] So almost 125 basis points that cuts what's there in the report. Number two is that we also rationalized our own MCLR. So that was -- the effect was almost 200 basis points on that account for it. And if you look at the balance sheet, the advances have taken place mostly incremental growth, 50% of the incremental [indiscernible] growth has taken place in the last quarter. So for the [indiscernible], we will -- we have not got in that quarter itself. So because many loans were diverse, say, in the month of March or end of March for the year. So the effect of May was not given on that. But one good thing is that we could actually address the declining trend of the repo cut, if you look at the interest figure for that because January also, there was a 25 basis point, in fact it was there to pass on to all the borrowers for the day. But still that we maintained at the same level at INR 5,428, it was INR 5,421 during the previous quarter. So the effect of this increase, what you are saying is that we will be seeing during this quarter, I can say.

Yes, I think specifically for your question, Nitin 3, 4 points. One is the advances growth came, but that growth was rear-ended. So we will see the benefit of that in the coming quarter. The second is this quarter has roughly 2 days less. I think just from a day count perspective, there's an indication in that. Third is the repo rate reduction that happened in December of 25 basis points, which had an 11 basis point impact on our book, roughly 46% of the book were impacted. But of course, partly offset by the growth that we saw, the momentum we saw, especially in the EEB growth that came through. Partly, these are 3 or 4 factors leading with a 4% improvement in the NII for this quarter.

Okay. Got it. And the other observation is around the collection efficiency. If I see like for the month of March and for the quarter, that the gap has widened, like while there used to be, like I said, last quarter was a 20 basis point gap, if I look at the collection efficiency, excluding areas at 98% and 98.2% This time, for the month of March, it has stood at 98.6% versus 99.3% for the quarter. So how should one look at it? Has March deteriorated over the 3 months of this quarter? Or how should I read this?

No, no. So I think the way it can be read is that we actually saw improvement in the collection efficiency started to come through the month of November last year. So last year, October was impacted quite heavily because the overleveraging CASA was still paying out. But from November onwards and mid of November is when we started seeing the improvement come through. And therefore, I think we are seeing the difference between the quarter, but the difference between the months to have a difference in the basis points, right?

If I may just add to what Rajeev said, in the month of November onwards, we have been talking current [indiscernible] collection at 99.6% onwards and is big in January and February on a [ 99.6% to 99.7%. ] March last day was a holiday. It impacted as we are already billing, that resulted into 98.9% number or something. And that overall, Nitin, is the quarter at a much better number on the current bucket number, 99.6%. So overall, there is nothing to worry in terms of the March overall not holding compared to the entire quarter. But the quarter under the past year, if I have to compare it to Q3.

Yes, because November, December, December also saw an improved position, and therefore, December to March, you may not see it [indiscernible], but quarter-on-quarter, you'll see a big delta.

I think in 15 November, the situation was not that much [indiscernible]. But definitely, from 15 November onwards, the collection efficiency has improved a lot and steadily being maintained.

And then also, you can see that part of your SMA-0 improvement in EEB businesses is across SMA-1 and SMA-2 as well. All the buckets have kind of come back including slippage numbers. We clearly showed from the November month, the progress has been so significant in all the buckets, including the slippages overall has come down to a substantial amount.

Right. And the other question is around the profitability overall, when we are indicating 1.6 to 1.8 ROA by Q4 '27. So how much of this improvement is hedged around MFI now, now that the collection efficiency has already improved on your normalized levels now already? And how much [indiscernible] is like a further expansion breakeven and recovery in the non-MFI businesses. So can you give some profitability of non-MFI business, therefore, by some split or some color around that to understand this improvement in ROA better?

Yes. I think 3 or 4 key factors [indiscernible] factors. One is the credit cost improvement, as we mentioned, from the current 2% level to 1.6%, 1.7%. So we do see the credit cost itself to provide further uplift on the ROA. Second is, as Partha mentioned, we are focusing on generating higher other income, and this will be the result of other capabilities, which are coming in our secured asset businesses, especially [indiscernible] banking. As these come in, we should be able to see some improvement there. We are also expecting as disbursements pickup, improvement in the processing fees and the momentum of the third-party product income to continue. So I think other income will be one of the key drivers. We do expect at least about 10 basis points to come through there in the other income. And operating expenses, as we mentioned, like PSLC cost itself, if that reduces, I think we should be able to get some delta from there. So these are the 2 or 3 key factors. The overall business momentum is important, and I think we'll continue to maintain that momentum. The good thing also is that as we had set up a target of around 58% secured mix by March '27, we are almost near that now itself. So [indiscernible] that target clearly that a year in advance. And therefore, our growth rates across EEB and non-EEB can start to converge the connection.

Right. And Rajeev, one, like a curious question, curiosity that I have is around the LCR ratio rather because we have been able to maintain one of the better LCRs in the industry, even this quarter after this decline at 130, 140 average that you talked about, is also a very, very healthy number. So what really differentiates Bandhan Bank LCR versus the other large private bank? Because if I compare on the retail mix of deposits or CD ratio, there is not much of a difference. So why the LCR numbers are so much better, not just in this [indiscernible].

One is that the immediate answer is that our dependence on [indiscernible] deposits have come down. So the volatility has been contained or has been reset to a large extent, requiring less amount of LCR to be maintained.

I think the other factor is that we have a large portion of deposits coming from retail. So our [indiscernible] deposit share is much larger, and that has a much lower runoff factor. As you know, between 5% to 10%. We have a lower share from corporate deposits, which have a higher runoff factor of 40% or 35% or 100%. Therefore, I think to that extent, there will be difference in terms of comparability across the [indiscernible].

And if you add the [indiscernible] part of the bulk deposit, retail plus [indiscernible] add up to 95%. So the fluctuation and the volatility is considered more on the [indiscernible]. So that dependence has come down and that has helped us to maintain a better LCR.

We take the next question from the line of [indiscernible] from ICICI Securities.

This is Jai Mundhra. So at this [indiscernible], I heard your opening comments on ECL shortfall.

Mr. Mundhra, I do apologize to interrupt you there. Your audio is not clear. Could you please use your handset?

Is this better?

Yes.

So Rajeev, my question is you mentioned that there is a shortfall of, let's say, INR 1,200-odd crores in ECL transition, and we have a credit cost guidance of 1.6%, 1.7%. Given that now ECL provides that the transition can be adjusted through reserves, I mean, would you be -- let's say, if you have buffer, you can still flow in the P&L and then you can adjust in the reserves or you would still like to minimize that shortfall? I just wanted to understand your thoughts on this.

No, I think we are, as we said, we are assessing with the latest circular that came yesterday. So we are actually roughly speaking. What the latest circular allows, as we understand, is to take it through the recent earnings and also allow the period of 5 years with which it could be set out. So therefore, we will look at the flexibility that, that offers and how exactly it impacts the balance sheet. Also, the assessment we did or the number we shared was based on December balance sheet, we will have to reassess based on the latest balance sheet. And of course, how structurally we are able to change the balance sheet over the course of the year. So these are the various factors that we have [indiscernible] to be able to take the final approach on ECL.

Okay. Now I mean now the circular allows you to adjust your results, would you be keen to minimize the shortfall? Or would you be keen to adjust it through results because that is allowed? I mean that is the broad question.

I think it will also depend upon the profitability appetite that comes from during the year. Of course, wherever there's opportunity existing, we will try to show up our provisions. But as of now, this is what is the broad approach.

The [ INR 300 crores ] is the estimate roughly on the basis of Q3, so the December numbers. So March number and going forward also is still being crystalized. [indiscernible] may have a lesser effect.

Right. Secondly, sir, on your write-off on provisioning, so let's say, INR 100 slips out of EEB. Is there any set -- right set provisioning policy because I think we have to provide INR 100 by the year in 365 days. So do you follow [ 25, 25? ] Or is there any pattern? Is there any provisioning policy for MFI?

So we do have a provisioning policy, but we just maintained the PCR. If you look at [indiscernible] the PCR including the [indiscernible] we have maintained at 74.5%. So that is the trust we want to maintain it. And two, to maintain that PCR, whatever the additional provisions are required, we do it once the right of our portfolio. So that is the main theme is that we keep the PCR as a target point that needs to be maintained. And based on that, whatever the shortfall in provisions on account of write-offs are there, so it [indiscernible]

So we take a more conservative position than what the [indiscernible] requires. I think for us, broadly, I think at [indiscernible] by itself, we take almost 100% provision for the EEB.

See, excellent, mostly excellent, yes.

Right. That is good. And sir, lastly, the revised circular says that if there is any exposure, which has government guaranteed linkages, it can have very small Stage 1, Stage 2 provisions. So any of your EEB portfolio, either through [indiscernible] or some other scheme, do they qualify for that kind of a status or no?

So for EEB portfolio, currently, we do not have any government back guarantee, but we are evaluating in terms of how do you want to progress it from here. As of now, there is nothing which is guaranteed backed by the government. Currently, we don't have any [indiscernible] coverage for EEB. That option is open for us, so we'll be evaluating.

Sure. And lastly, Vishal, since you are there on the call, if you can talk about your resignation. I thought everything is going on very well. I mean you have almost a turnaround or almost normalized level of slippages. So what happened?

I'll speak with you offline [indiscernible] So bank is now, I would say, much, much more process-driven rather than percent driven. So I expect that we should look at it for the year. We have brought many changes in the EEB. We have transformed the model of the EEB business. And a lot of technology and other inputs have been made, and Vishal has implemented it very meticulously. So it is a personal career growth for that part, and we wish him all the best.

Sure, sir. Sorry, sir, if I can ask one more question. There was media reports on some activity going at promoter level. Is there anything that you can add?

So these are all rumors. So I have already -- we have already said for the guests, these are all rumors. So nothing is going at the holdco level. Nothing is going to affect the shareholding return of the bank. If something is going at the [ CIC ] level, that is their call. Anyway, it's not going to affect the bank.

We take the next question from the line of [ Rahul Kumar ] from [indiscernible] Fund.

Rajeev, just one question on the employee cost as well. I think if I exclude the base quarter number from the 3Q, the impact of Labor Code, I think I see a 14% increase in the employee cost Q2.So what led to that?

[indiscernible] additional employee cost was there during this quarter. This is a common account. Number one is that definitely, this month, there was a number of holidays and we have kept the bank open because to reduce for the collections and there, we have kept a bank of it for 2, 3 days for which are, we have to pay some additional salaries to the employees as part of the rule of the bank. So that has actually increased in the employee cost for the year. Otherwise, personnel costs are in line with what we have incurred in the previous quarters.

So regarding the new Labor Code related impact we had already taken in Q3. And there was no incremental impact that came in Q4. As Partha has mentioned, this was because of a couple of days additional that people have gone and these are the impact of that. and some normal salary incentives.

Okay, okay. And if I look at the reported [indiscernible] actually, the increase in this quarter versus the 3Q despite the repo cut impact. So what [indiscernible] is that?

Yes. I think there are two things. One is, as we have done the [indiscernible] in Q3, a large chunk of the NPA portfolio has gone away. And therefore, you get the indicate benefit of the yield on the overall portfolio in the next quarter, right? Because the NPA book was actually suppressed in the [indiscernible]. So that was one of the key reasons. Apart from that, there was, as we mentioned, improvement in the EEB disbursement as well. And as the EEB book increased by almost 8% on a quarter-on-quarter basis, total advances increased by 6% on a quarter-on-quarter basis, which meant that overall mix perspective, there's some further benefits that came through. I think those are the 2 key reasons.

Okay. Fair enough. And the last question which I have was on the slippages front, I think even though the expected collection efficiency has improved quarter-on-quarter in this. But you were trying to -- guidance on the slippages front, I think it would be similar to what it is -- it was in Q4. So is there something on the ground which is different versus -- which you expect to be worsening in this quarter?

So we mentioned that slippages will basically hold to improve, right? So that's the range that we have given. So we would expect to have some gradual further improvement as well come through. But we are also very, as we mentioned, of some of the external risks which are coming through, especially we don't know fully if the Board [indiscernible] will come through and what shape and form. So we are keeping some bit of conservatives in there. But at the end of the day, based on the collection efficiency improvement, we are fairly confident on the level of slippages that we've achieved as well as go further, we can improve.

Ladies and gentlemen, in the interest of time and fairness to others, we request you to restrict to one question for participant. We take the next question from the line of Piran Engineer from CLSA.

Just a follow up, just to reconfirm what Partha has said, MFI slippages of INR 690 crores this quarter?

MFI, yes. It is 6-9-0, are what slippage are. What slippage, INR 690. And the recoveries were INR 142. So next slippage is INR 548.

We take the next question from the line of Jayant Kharote from Axis Capital.

Sir, this discussion has been asked previously. When you say that margins can improve by another 15 to 20 basis points, that is on the 4Q number or that is on the full year number, full year number being 6.1%? And just a corollary to that question, it means if your loans are growing at 14, 15. NII growth next year should be ahead of that. Is that a fair assumption?

So the NIM improvement that I mentioned was sequentially on quarter numbers. So our quarter numbers are 6.2%. And on that, we expect 10 to 15 to 20 basis points improvement spread over the next 2 to 3 quarters. So the guidance, as we have been mentioning, is by the exit of FY '27. We expect NIM to be around 6% on total assets, which means on earning asset basis, it will be around 6.5%. So we do have a line of sight of the next 10 to 20 basis points. So we need to find another 10 basis points. So that's the aim that we're working on, of course, on a best scenario basis.

Just if I do the math, 10 to 15 or even 20 basis points on NIM, 10 on fees, another 20 on credit cost. Is there something I'm missing because we need 70 bps post tax, which is almost 90 pretax? So is there something I'm missing for the ROA working point?

So ROA, as we said, we already touched 1.1%, and our aim is to reach 1.6% to 1.8%, right, give or take 10 basis points. [indiscernible] FY '27, totally there's a journey of about 50 to 60 basis points further that we need to climb. Some of these components that we mentioned are the ones which will help us, right, in terms of meeting that. The timing of it will depend upon every quarter-to-quarter, how that we make progress. But we have to also be aware of any kind of external [indiscernible] or risk, et cetera that could come through or any headwinds that could come through. So we will definitely try and see how we can get through these numbers despite those events.

We take the next question from the line of [ Dave from Horsepower Securities. ]

Congratulations on the excellent set of numbers. So as far as my knowledge goes, and how far I understand that you were trying to increase your share of secured book, right? By the end of FY '27, are you trying to target increased share of secured books in your total book portfolio? And what would be that percentage? And if you intend to increase the secured portion of your portfolio in comparison to our EEB books or whatever that unsecured portions are, what would be the effect on your NIMs? Is it going to come down from 6.2% or something. I mean if you are trying to increase your secured loan book portfolio share, like the other the banking units or banking companies, their NIMs are far below from your NIMs. So if you're trying to convert into that part [indiscernible].

So let me let me just explain. So first of all, we had a target of doing our secured [indiscernible] busines of 58%, 42%. So that's what our goal is for FY '27. Exit on FY '27, we have projected a secured book of 58% and 42% unsecured. So we have already achieved that or we are achieving that. As you see in the Q4 results, we are already at 66% and 44% is unsecured. The second part is that [ 256, 258 ] will not have much impact on the NIM. And let me tell you that we are keeping our trajectory of the aim that our EV will continue to be 1/3 of our total portfolio. So in both ways, the unsecured book, the EEB book will also grow. And the secured books will also grow. The question on the NIM. As the NIM is concerned for that is the EEB book is -- the main bigger problem in the EEB book if you look in the past year was the delinquency level of the NPA level and because that's where the interest reversals took place and where the NIM was largely affected. If you can continue even with the 35% share and maintain the present, I would say, NPA levels or the SMA book and the deliquency level, and if we continue to improve it further, it will not have any much impact on the NIM as for the day. So again, if there is any shortfall, let me again tell you about our direction for the day that we are now focusing on the other income of the secured book. So if there is any shortfall in the NIM on account of the growth of the secured book, it will get compensated on the other income. So overall, NIM plus other income, what we have projected is around 6.2 and 1.5, I think 6 and 1.5, 7.5. So that will remain intact. That is the way. So if somewhere, if you say that if you come out at 5.9 or 5.8 on our NIM for that, other income will also go by 20, 30 basis points more in that segment. So overall, that trajectory of 7.5, we will try our best to maintain it.

And going forward in, say, within 5 years, do you continue to stick with that proportion of 58%, 42%? Or there would be something -- I mean, long term, any goal or target that you are continuously [indiscernible] to achieve.

Currently, that ratio remains. It is, again, the experience that we will see. We will have to strategize or we have to change our strategy at that point of time. The reason for going to [indiscernible] both, as we have told that there were 2, 3 reasons. The first one was that we were too much on the unsecured books, and we are a universal bank. It's the depositor confidence is very important. So that's why a secular growth in all the advances comprising secured and unsecured books is principle. This is the first thing why we have shifted. Number two because now, my portfolio is also becoming much, much stronger than what we had been a year or 2 years for the day. This is one thing. So currently, definitely, we have not thought. But again, it will all depend on our experience. So we hope that things like Corona or other things will not happen, or even this war would also end, there will not be an impact. So it definitely will completely depend on the experience that we gather going forward. But as of now, as I told you that we want to remain a leader in the EEB segment. and we continue to do that. The EEB segment is definitely a focus area. So we have seen an [ 8% ] growth Q-on-Q. But definitely, our secured book has grown at 25%. So the focus this year is on the other income part from the secured group, not only on the interest income and along with a reasonable growth in the EEB segment also, and with the interest rate cost, yes, and with the interest rate.

Ladies and gentlemen, we take that as the last question and conclude the question-and-answer session. I now hand the conference over to the management for their closing comments.

Thank you, everyone, for joining, and we hope that you continue to place your trust on our bank. Thank you so much.

Thank you.

On behalf of Bandhan Bank, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.