Bank of Baroda Limited ($BANKBARODA)

Good evening, everyone, and welcome to the analyst meet for Bank of Baroda's financial results for the quarter and year ended 31st March 2026. Thank you all for joining us. We have with us today are MD and CEO, Dr. Debadatta Chand, and he's joined by the bank's Executive Director and CFO. After brief introductions, we have a presentation on the results with the highlights of the performance, which our CFO will take you through, followed by opening remarks by Dr. Chand and then we will start with the Q&A session. And sir, I would request you to begin.

Thank you, Raja and all my analyst friend, a very good ending to all of you. will be visited today because 3 banks announced their financials today. So thank you so much for joining. And just to introduce the management team, I'm Debadatta Chand MD and CEO of Bank of Baroda. With me, Mr. [indiscernible] the Executive Director; he looks after the corporate credit, the rational banking and moving with the treasury team. We have Mr. Sanjay Mudaliar he's the Executive Director. He looks after the IT function of the bank and including the retail asset, which is, again, a large book is on today, apart from a couple of other platforms. Then we have Mr. [indiscernible] Director. He looks after the SMB vertical, which is stress asset management vertical, including HR and also the MSA, the department also a part of his portfolio. We have [indiscernible] the operation of the bank, the CCO reports to a including the risk management, many of the platform funds, including the compliance control audit and also the retail liability, which is again a large franchise for the bank. I know we have the CFO, Mr. [indiscernible]. So he has been there for a couple of quarters, interacting with all of you. With this, I hand it over to [indiscernible].

Yes, sir. We will now have the presentations. I think you may be on mute.

It's my privilege -- Good evening, everyone. It's my privilege to present for you the financial highlights of Bank of Baroda for the quarter and financial year ended 31st March 2026. As at the end of 2026, the bank's global business volume has crossed a milestone of INR 30 lakh crore and stands at INR 30.7 lakh crores, registering a Y-o-Y growth of 13.9%. Our global advances have grown by 16.2% Y-o-Y with domestic advances growing at 14.5% and international at 24.4%. Within the bank has continued to focus on gram advances. Our organic retail book grew by 17.9%, agriculture by 20.7% and organic MSME by 15.6%. Corporate loans have grown by 11.2% Y-o-Y, within the Retail segment, we have seen smart growth across the portfolio, with auto loan by 20.6%, mortgage loans by 19.3%, home loans by 6% and education loans by 10.9% and personal loans by 8.7%. In terms of deposit growth, our total deposits have grown by 12%, with the international deposits growing by domestic deposits by 12.8%. The domestic CASA deposits have grown by 9.8% and term debts restated growth of 14.8% Y-o-Y. As of March 31st March 2026. Bank's domestic credit deposit ratio stands at 83.4%. The CASA ratio stands at 38.9%, up by 45 bps quarter-on-quarter. With regard to our quarterly profit metrics, our operating profit for the quarter stands at INR 9,169 crores, restring a growth of 1.5% Y-o-Y. The bank has adopted new metal teams for driving it the AS-15 liability, which led to an increase in the employee cost by INR 50 crores. Our net profit for Q4 2026 stands at INR 5,616 crores, registering a growth of 11.2% Y-o-Y, which is the highest ever quarterly net profit. Return on assets remained consistently. Above 1% at 1.13% in Q4 2026. Return on equity stands at 17.2% for the quarter. For the full financial year FY 2026, our operating profit stands at INR 32,259 crores. Our net profit for FY 2026 stands at INR 2,021 crores, which is the highest ever net profit. Return on assets remained about 1% at 1.06% in FY 2026. Return on equity stands at 15.39% for FY 2026. With regard to Key ratios. Our yield on advances stands at 7.4% for the quarter and 7.7% for FY 2026. Bank's cost of deposits for the quarter stands at 47%. It stands at 4.87% for FY 2026 as against 5.10% in FY 2021. With regard to our net interest margin, it stands at 2.89% for the quarter, registering sequential improvement of 10 bps. It stands at 2.89% for the whole FY 2026. Now we come to our asset quality, which continues to remain robust. Our GNP ratio has improved by 37 bps Y-o-Y and stands at 1.89%. Our net NPA ratio is below 1% at 0.45%, an improvement of 13 bps by [indiscernible] our provision coverage ratio, including KW is comfortable at 93.94%. Our slippage ratio for Q4 2026 has reduced by 11 bps Y-o-Y and stands at 0.8% Slippage ratio for FY 2026 also reduced by 6 bps Pat 0.72%. Credit costs for Q4 FY 2026 has increased to at 0.44% in Q4 FY 2025 due to the prudential floating provision of INR 1,500 crores made by the bank during the quarter. Credit costs, excluding the floating project would have been 32% for the quarter. Credit costs for the full financial year stands at 0.46%. Again, the credit cost, excluding floating provision, would have been 0.34% for the full year. Coming to our SME and collection efficiency. Our click SME 102 as a percentage of our standard advances reduced to 0.18% as of March 26, as against 0.33% for [indiscernible]. Our collection efficiency, excluding agriculture, remains revisit 98.9%. In terms of our capital adequacy, our capital position continues to be strong with CET1 at 13.1% Tire 1 at 13.64%, and overall CRAR at 15.82%. Our quarterly average in C remains healthy at approximately 127%. Bank has declared a dividend of INR 8.5 per share subject to requisite approvals. Thank you. And over to you for your opening remarks -.

Yes. So thanks, [indiscernible] to all my analyst friend, let me make a couple of qualitative comments on the financial that we have announced for this year and also for the quarter. I think we have a very strong growth, both on the balance sheet and also on the profit and loss. Couple of numbers that we see on the balance sheet. This year, we crossed the lake of 30 lakh plus kind of a business and the business stands at INR 30.7 lakh crore of business as on 31st March. At the same time, a couple of other milestones that we see on the financial is that we crossed INR 2,000 crores of net profit for the stand-alone entity and the profit becomes INR 2,021 crores for the financial year. And the profit for this quarter of INR 5,600 crore possibly is the highest in any quarter for the bank for many years, maybe for the [indiscernible] on the advances side, although our guidance was 11% to 13%. But in terms of the [indiscernible] that we have announced is the advanced global advance growth of 16.2% and the domestic advance growth 1.5%. At the same time, the deposit side, we have seen one of the best quarters, which, again, a couple of quarters, we've seen our deposit are not catching up to the growth in advances with the deposit growth is most 2 full local deposit CASA at 9.8% and the savings growth at 9.1%. I think these are the numbers which maps very well with regard to our focus on low-cost deposit and our focus to grow under CASA because we are last many years, we are focusing on the CASA deposit. And we have, I mean, improved on the services side, product side, building our products to actually improve on the consumer. Both the growth of advances and deposits, if I see this is the best quarter in the last 10 quarters. So I mean, we have seen the journey of banks -- the journey for the industry for the last 10 quarters in terms of growth positive. But our number of the percentage growth in this quarter has been the best till last 10 quarters. On the profitability front, the NII growth has been positive. And we would have seen our numbers saying that increasing interest income has been higher than the interest expenses. That's something in earlier quarter slightly, it was going negative in terms of the interest income, not going up to the extent of the growth in interest expenses. So I mean, this quarter, I mean, the trend is different. The interest income growth has been higher than the interest expenses. Consequently, the NIM, the NI is at INR 2,494 crores, which is a growth of 8.7%. The NIM domestic as 3.04lobalarea 2.89. And this NIM percentage is also higher than that of last quarter. As the CFO said on the employee front, because of the hardening of the yield the lives on AS 15 has gone down. But at the same time, the bank decided to migrate to the new mortality table where there is additional require liability requirement of INR 520 crores, which we have provided for. So I mean the employee cost that you would have seen, including AS 15, and the trend is in line with the system what other banks also have announced. Couple of numbers in terms of the operating profit of more than INR 7,000 crores. I mean we are announcing this more than INR 7,000 crores of operating profit for the last 14 quarters. And this quarter, it is INR 96 crores. net profit were announcing more than INR 4,000 crores for last 13 consecutive quarters. Similarly, the ROA of more than one that is one of the guidance numbers we have that you are having more than 1 for the last 15 consecutive quarters. The accretion of book value, which is, again, one of the fundamental factors in terms of what you look as an investor, it has improved from INR 148.8 from March '23 to at INR 51.7 in March 2026. The increase of incremental addition of book value to the extent of INR 12.90 Asset quality has been 1 of the best as far as the numbers are concerned, GMP at 1.89. The net NPA at 0.45, both in terms of the [indiscernible] ratio and also the credit cost, the credit plus full as compared to 47 both within our guidance range. I think the asset quality and in terms of the creating data in terms of SMA 1 and 2, more than INR 5 crores also it has gone down from almost from 0.36. So with this, I think the asset quality has been 1 of the good as far as we are concerned. Secondly, a couple of initiatives that I want to highlight before you is that the bank recently raised a INR 10,000 crore of [indiscernible]. This is the first in India to raise a [indiscernible] and the response was 3x of the amount that we wanted to mobilize. We have outstanding green deposit as of today to the extent of INR 1,899 crores, and I think that far is the has deposit in the system. Also announced this time that we're going to raise capital in the form of AT1 and Tier 2 to the action of INR 6,000 crores in this financial year. I'd also remind you an earlier announcement, wherein we announced that the bank would be can to raise INR 8,500 crores of equity capital over a medium term that is up to FY '28. So in terms of capital base, it's almost like we have the, what you can say, not pipeline, but room to raise INR 14,500 crores, consisting of INR 8,500 crores equity and INR 6,000 crores of AT1 and Tier 2 for this year, 2,627. Let me recruit a couple of guidance as normally we give -- the loan guidance, we are upsizing from the earlier guidance of 11% to 13% to 12% to 14%, considering our pertinence, subject, the global headwinds doesn't impact big time to the Indian market. The deposit growth is from 9% to 11% earlier, it has been upsized to 10% to 12%. The NIM, we achieved 2.8% this quarter, but we are slightly looking at probable repricing of asset liability we're projecting at 2.75 to 2.95% for the full year. The ROA continued to have more than one that [indiscernible] guidance also continue to have the same guidance slippage rescue also still kept at the same level of 1.25 and the credit cost below 0.60. So these are a couple of ideas, I think, are important for you with this close I'm done with my opening remarks, we'll open for question and answer.

[Operator Instructions]. We will start the first question with Rikin Shah.

Just two questions. First one, on your reported global yields on advance and cost of deposits, both have moved down. and the cost of deposits have gone up, but the margins are higher. So presumably, that's due to some interest on IT refund. So while I do acknowledge that you have called that to be core in the past, but if you could just quantify the amount of the same. That's number one. Second question is specifically on cost of deposits. So if the overall -- sorry, the global as well as domestic cost of deposits have marginally gone up in this quarter versus the last quarter. how is the outlook on the Fair to say that the TD repricing is already done for us completely. And how will only the cost of deposits move? And the third and the final question, sir, is on the OpEx. To moving parts, as you pointed out. Now with this mortality rate change, how should I think about the ongoing OpEx going ahead, employee expenses specifically?

Okay. I mean, on the margin and particularly the yield on advances in the fact of deposit, I think this denominator for both the things are different, right? Whereas the NIM takes care of the full -- on the asset side. So the spread and margin are different. So we should not compare the spread and margin because that would give a different picture. At the same time, I do agree there is a line item with regard to the IT refund. And [indiscernible] also I said, because since we have a large -- I mean, the provision on the IT, we keep on getting this as a normal flow. It can be higher or lower in a particular year and precisely for that risen, although we had a 2.89% NIM for this quarter, we projected at 2.75 to 2.5. So that accounts for any volatility that may be because of the IT refund. But for me, the name is one, that's a cool name and what we announced the [indiscernible] so that is with regard to -- I mean, we should not get confused with the spread and margin because margin competition is different than the spread.

But would you like to quantify, sir, the interest on IT refund in this quarter? I think last quarter, it was about INR 300 crores or INR 100 crores.

No, actually, we don't have a number. I don't have a number we can offline connected number. But again, on the same thing, I reiterate because there are refunds -- significant refunds coming every year that we have seen. And the can be higher and lower. And precisely for that reason actually have given a guidance lower guidance at 2.75%. But the -- whatever amount that's very insignificant to the overall I have an income base of almost INR 26,000 crores. So in that way, that's not a very significant impact on the margin. Cost of deposit, you are right, I think it's getting sticky at this point of time. So if I compare March over December all know the cost of deposit as far as we are concerned is one of the lowest in the market, right? At 4.78%, I think we are one of the lowest in the market on a customer deposit. But going by the liquidity scenario prevailing because suddenly in the March quarter, the geopolitical issue came with time and which is still positioning. So in that way, my sense is that the -- I mean, the cost of deposit is going to stick. Maybe there is just a scope of relying on the asset side. But as of today, I don't see cost of deposits further going down at the current scenario, if the liquidity continue to be the same like it is as on today. So in that way, slightly mindful of the repricing effect of other assets rather than the deposit because deposit tab has been fully repriced as of today, best on the current level. On the mortality I think the CFO is the right person. But before that, [indiscernible] anything you want to say on the cost of deposit?

No, sir, [indiscernible],I think it is likely to remain at the same levels because it will be elevated. March quarter, we saw a slight increase in the cost of deposits, and it is likely to continue for this quarter as well. because we don't see it coming down anytime -- at least for the next 3 months.

So Mr. [indiscernible] can you just address the [indiscernible].

Sir, actually, the onetime impact that we have taken due to movement in mortality is INR 520 crores. This is 1 time. Going forward, the recurring impact will be very negative

Got it. Perfect. And sir, if I can just add on 1 more question. In the SBI call just prior to over call they were alluding to some scope to improve the yields on advance as the corporate borrowing moves from the bill to the -- is this something that we can also possibly do? Or is that a likelihood or a positive kicker on yields on loan going ahead?

That's what I said actually when I said the deposit is sticky, that is the only scope for us to realign the asset pricing, right? When the rates are really low, many NCLR linked loan got replaced with the external benchmark, more particularly team in the elevated -- I mean, the rate structure, which is prevailing because of the geopolitical issue, I think there is a scope for realigning that portfolio, and that is what actually our strategy to look into those pricing very closely.

The next question is from Jayant Kharote.

Thank you for the opportunity, sir. My question is on the ECL guidelines that have come through. You have been in the past transparent about the impact. I think you've called out around 18 bps sort of a steady-state impact. Is the final guideline to your earlier calculation telling with it? Is it better than that? Or could it be higher than that? That's the first question.

Thank you very much. Actually, earlier it was a guideline. So it was possible to estimate or estimate those impact, right? So now that your final guidelines, so what -- I mean stance is that unless anti will compute fully on that, it's not proper to quantify that at this stage. But my sense is that whatever guidance we had given earlier, it is not going to -- it would be aligned to those numbers. So I'm not expecting any significant change with it the only, I mean, although that was more of a tentative calculation in that one, but we want to see the real impact and then possibly articulate better and that would be a proper to art rather than giving any number at this stage. So that's what actually I said in the media metals, and I'm seeing it.

Understood. Sir, second question is on the trajectory of margins. While I understand your full year guidance is in that 2.75 range, is it fair to assume it will first move down and then move up in the second half given the near-term pressure on deposits? And given the asset repricing strategy that you're trying may take a while before it shows up on yields?

You are right. One thing that we are assuming for this quarter, at least that the cost structure is going to be sticky. I mean, as I said, the cost of deposit further models going by the current scenario, we are not looking at -- so the only way the name we can manage is regard to realigning the asset pricing and that would be 1 of the key focus as far as our -- I mean, management work is concerned. But at the same time, while slightly will give a conservative number because this IT refund is a flow, which is almost a continuous one, but it can go up and down in every quarter. And that depends upon the refund order that we get. So keeping everything in mind, so we have given a slightly conservative guidance on the lower side. Not necessarily it would happen in the Q1, maybe at the latter quarter. But that all depends upon how do you do all this -- what you can say, match together so as to protect the margin.

And I assume the 2.75% is the lowest number extra IT refund. That's why you kept that.

Four quarters together, I think we should not be bridging this lower threshold in [indiscernible] refund. That's why you're confident I think that's why you are trying to -- so we have some positive guidance. Estimate of the IT refund for the full year based on the orders and the seasonal or whatever the past trend. So best on that is the red.

Understood. Sir, sir, lastly, on the incremental I do understand, is there any revision on employee base because of the yield movement that you have taken in this quarter?

No, the AS 15 impact already articulated as CFO, I think just go ahead to the AS 15 impact. So there is the only OpEx that may be slightly maybe interested in now.

Yes. Actually, the [indiscernible] tables, which we have adopted are the latest tables. With that, the onetime increment in the thin obligation is around INR 530 crores that we are fully absorbed in this quarter. Going forward, the recurring impact will be negligible. Regarding your question, I think it pertains to the base agreement, which is still not at [indiscernible].

SP1 Our next question is from Kunal Shah.n.

Yes. Am I audible? Yes. So firstly, when we look at it, the increase in the bulk deposits, which have been there, and I think the earlier question on cost of deposits, I think it would be also the factor of bulk deposits getting raised, which was almost like, say, 14% quarter-on-quarter and 25%, 26% year-on-year. maybe a few quarters back, we had seen an incident wherein all of a sudden, we reduced both the bulk deposits as well as the wholesale portfolio at 1 point in time, and we saw a significant reduction in the balance sheet size. At any point in time would again, we'll be pursuing that in terms of the margin management or ROE management exercise. If you can just clarify that. So that's the first question. Second question is on floating provisions, INR 1,500-odd crores. So this would be towards ECL transitioning, I believe. And how much more do we plan to create it further? Is it like maybe -- so obviously, credit cost was much higher during the quarter, including this porting, but would we see that continuing for a couple of more quarters? And on recurring from return off again compared to our guidance of INR 750 crores, INR 50-odd crores we saw a substantial increase. There seems to be some one-off accounts out there. But otherwise, in terms of the guidance for FY '27, do we continue to maintain crore, 50 crores, you alluded to most of the other parameters in guidance. But this time, we are not giving it for recoveries. So just would want to reconfirm that as well.

Thanks, Kunal. You said right with regard to -- we said -- and maybe 2, 3 years back that we want to reduce the dependency on oil deposit. When I say dependency at that time, bulk is to be almost like -- I'm talking about the total deposit as a percentage was almost 23%, 24%. And we went down to almost a level of 17% at some point of time, maybe 2, 3 quarters prior to this. Having said so, because of deposit dependency, yes, the balance at size has not -- actually, it was growth. I mean the balance sheet continued to grow strong. The strategy was to replace the bulk with the low-cost deposit. And there, we have been doing consistently well for last many quarters. And this quarter also, you would have seen our saving growth is 9.1%, and you can compare with many banks who have declared and what is the growth they do have. So the strategy has really worked in terms of focusing on the saving, and that's why we have one of the highest CASA percentage within the peer banks. I mean currently, also, it is almost at 39%, and you have the comparison available, so you can make it out how the strategy. On the balance sheet, we have grown significantly. But in the same time, we could be able to change the bulk percentage from bulk to low-cost side. For the March quarter, particularly the geopolitical what has happened, there was a liquidity possibility -- the loan growth has been very at to 2%. So you need to be there in terms of managing both our liquidity. At the same time, maybe you need to mobilize a bit of a deposit, both from the bulker City together. We have a component of city in the bulk number that we see -- so CD, as you know, these are again slightly the duration less the cost also lower than the double deposit because typically be deposit is [indiscernible]. So is that where the bank is managing the liability -- I mean, the liability profile in a man of which is, again, optimal in terms of liquidity, optimal in terms of pricing, optimal in terms of margin. So that we have been doing since long, and I think there's something a positive trajectory of the bank for the last many quarters and years now. On the floating provision, the provision has been cleared typically for the balance sheet for any extraordinary scenario, not for tagging with any ECL provision pose reason in this for rutile cannot be touch unless and until there is a regulatory approval for that. So it's basically buffering the balance strength to create fruiting closure rather than tagging with any particular ECL impact. If [indiscernible] to be taken in the books directly, we'll take it on the books are without touching the floating provision. So I mean this to are not linked to that. But obviously, yes, any headwinds that can create both globally also any such headwinds, I mean, because of the geopolitical issue, we are mindful of offering the balance sheet in terms of creating balance trend. Third, with regard to -- you said right, the TWA this time has been, I mean, higher as compared to because normally, we give a normalized guidance of around INR 70 crores, INR 80 crores. This time, obviously, March quarter is always a productive quarter in terms of slightly making your efforts more in terms of recovery, and that has resulted into a higher recovery, particularly from -- and I'll continue to have the same normalized guidance of INR 750 crores to INR 800 crores. My book is almost INR 2,000 crores. So estimating any such recovery quarter-to-quarter is -- I think it's appropriate or is number [indiscernible]

Yes. But would there be chunky account of INR 500 crores, INR 700 crores in recoveries this quarter?

There are many [indiscernible] It all depends upon when the resolution happen and only recover money. There are legal processes, ancillary processes, multiple as things. So -- we only been pointing that it can happen in a quarter, it's not possible, but then we are hopeful because it, it's quite 6,000 to 2,000 is quite a large no.

No, no. I'm saying in Q4, was there any chunky account of INR 100 crore, INR 700.

Not any chunky one. It is -- I mean, midsized some of the exposure, which is midsized maybe INR 2 crores 50 crores couple of subsecond there.

Next question is from Parth Gupta.

Sir, what was the LCR as of the March end?

It was 127%.

Okay. And of this recovery from TW of INR 1,400 crores, has some amount gone to the interest income line item?

It is so yes. interest income and also on the recovery on that. Roughly a question.

Sorry, sir, I missed the amount.

INR 100 crore has gone to the interest income part.

Next question is from Ankit Bihani.

So my first question is on the growth and deposit growth guidance. So still, we are expecting loan growth to continue to outpace the deposit growth going ahead? And given that how much buffer do you have about the NCR front now? And what would be the comfortable LCR that we would like to maintain. And my second question is again on the interest of an refr.while you call out its core contribution to core NIMs, but this number is very volatile. SP1 And do you expect this to sustain perpetually because somewhere, this has to come down, right? Because in our calculation, I think it is contributing around about 10 to 15 bps to your ROE. So what has this -- so how long your interest on deferred can continue?

Okay. So first thing you talked about LCRI answered. Secondly, on the IT front, let me growth outpacing deposit, Look, a sustained basis, you have the capital, right? So you have a lot of other alternative resources where you can take refinance, you can raise bonds. So we, as a bank, clearly focused on creating a stable resource base, a loss or deposit base. So while maintaining even you would have seen the CDs almost at domestic around 83 mont something on that. improved service last quarter anyway on CDs. So the growth portion is the base of deposit is a larger base as compared to the base of advances, that is point one. Secondly, in a scenario where banks are holding like a bank like us holding more excess et cetera, any deposit we raised may not be put that into a la because the entire money can go to deposit. And that is what a scenario we are seeing in many last couple of years because you are holding excess SLR, the money incremental deposits we are resigned going into the advances. So in that way, I think this gap of 2.5%, 3% is sustainable one in terms of growth of advances and growth of deposits. So that covers our -- the advances outpacing deposit. At the same time, Obviously, I would like to augment the resource place and we want to grow higher on the project. Interest on IT reform earlier also I said, yes, it's a line item, which is export clearly export accounting, but can be volatile, yes. So I do not estimate with regard to what is the year this year, what is going to be here next year. We are all -- I mean, best on the actual tax reform. So that's why accounting for the estimate we gave a margin guidance. And that's why having achieved 2.89 also I'm giving a guidance of 2.75% to 2.95%, accounting for the same amount of money which you've got this year, possibly may or may not be in the next year, best on the available or what is the refund that we expect -- and that -- you issue is, I mean, covered in the margin guidance that you way we typically don't get into quantifying is the line item almost there in the income as for the normal accounting norms. So then why should I significate termage a different amount. Yes, it is volatile at MB. But then we account this estimate in terms of how much we get in this year margin rate.

And lastly, how long this can continue for like 1 year, 2 years, 3 years, 4 years, whatever you can say?

[indiscernible].

Again. So as far as this year guidance, I'm very clear that there is going to be a good amount coming, right? So next year, I suppose I see there won't be any money that I possibly won't account this and give guidance. So my guidance for tax refund is best done. This is only 1 year. So perpetuality will discuss maybe in the next year. SP1

Okay. And sir, lastly, on the ECL front, so I think I missed out on the answer of your there. So any quantification of what could be the impact? And how could that credit cost run rate move on implementation of.

So that is what we said earlier, actually, look, when the drop guidelines was there, actually, it was able to estimate our estimate to regard likely impact and that we articulated in terms of actually absolute number also in terms of a both on the CRA and also on the credit cost. But having issued the final guidelines, it won't be proper to without really running on transaction is difficult to see with regard to any quantification. We'll do that, but we'll do it slightly once we implement and then have a number -- possibly 1 quarter number coming very clear on that. So I'm not articulating any number, but my sense is then today, when I look into the final guidelines and the traffic guidelines, will not be off track from the number that we estimated earlier. It will be aligned to those numbers. Actual -- I mean, once we slightly implement a transaction level and get a clear picture at least for 1 quarter, we will a piston to quantify everything on the ACM impact.

Last quarter, did you guide that the run rate in net could increase by 18 bps, if I'm able to recollect correctly? I mean partly you have to recollect I can't recollect -- but whatever we said, I think my sense is that it's not going to suit significantly.

[Operator Instructions]. The next question is from Rikin Shah.

Relating to the SLR, right? So we do disclose the domestic SLR, which is about $3 trillion on our balance sheet right now, which has just not changed in the last 3, 4 years. So as a proportion of the [indiscernible] It has come off very sharply and it's about 17% right now because I have only the total NDT an not the domestic NDTL. My question to hear is that how much scope do we have for the to -- or how much excess SLR is still left on the balance sheet for us to keep optimizing. That's number one. The number two is, until now, we were able to bring down the SLR excess SLR surrendering a lot of the securities in the Waymo or the switches. The likelihood of the same is probably low going ahead. So even in the event if there is no OMO, would you be willing to liquidate it in the market? And thirdly, just as a philosophical level, isn't it a better idea to lock in bonds at the higher yields right now, sir, rather than lending to the corporates and home loans at the similar rates. Where of course, there will be some amount of capital charge and credit risk also involved?

You're right. The treasury management the bank is running 1 of the largest boat we are amongst the top 3 or 4 in terms of holding. So at some point of time, the SLR holding was almost 6% to 7%. But subsequently, as on today, it is around 22.5% or 23% it's gone floating. But while managing this SLI is not one way that we surrender. I mean we sell or we put that on -- we keep on buying at different level as part of a market condition. So whenever we feel the levels are elevated, we get into the market. So it's a churn happening, maybe 1%, 2% on the SLR is a continuous turn that happening in terms of buying as -- so in that way, it's always optimize on game rather than a selling that SLR and mid profit. So in that way, I think we are managing treasury well in that way. And I think -- that's thing is part of the treasury management because the trading profit comes out of always churn. It's not necessarily you sell only your book and make profit. You have to buy and sell and then only you can make profit. So our strategy on that would continue. But in terms of the comfort lines you want, because see, the advantage of [indiscernible] is that generate liquidity, right? There's a very important or important purpose of running excess as law. And that helps our liquidity, right? So that's very clear. So Bank of Baroda would like to now, as I guess 18 you are at 22 that as you're almost running 4.5% excess L. We like to operate at a safety, I mean excess hold of maybe INR 30, INR 35 at all point of time. Because the purpose is not only on an investment in generating profit or the focus is also generate lipidity at the right time in case you require too. So I think that will be 1 of the strategy as far as the bank is concerned. Mr. [indiscernible], anything you want to add on this?

Yes. Sir, actually, apart from this, we also wish to have a comfortable -- and that's where the excess SLR also helps us in maintaining our comfortable LCR post team.

Okay. And sir, the choice between locking in the long-term bond yields at a reasonably decent rates right now versus growing aggressively in the home loan, corporate and auto loan, where the risk-adjusted NIMs or more importantly, when adjusted for the capital RWAs, how do you think about it?

Yes, Mr. [indiscernible], answer this.

So thank you very much. So sir, actually, Rikin, both instruments or both markets are different. So investment yield, investment holding achieved different objectives and remaining in the loan market, whether it is home loan, whether it's corporate book, whether there's MSME, they are different. And loan books gives us -- loan customers gives us deposits also, other cross-sell opportunities also. So it's not straight through interest rate we look upon when we land in home loan, car loan or corporate segment. We also look at the holistic relationship and also we expand the bank's various product profile. So I mean a different liability profile meets these different asset book objectives.

The last question that we'll be able to take today is from Jai Mundhra.

And congratulations on your cum extension Sir, I wanted to check on your capital raising plans. Is that on track? And how soon can this be a

Thanks, there. Thank you very much. the capital announced actually AT1 and Tier 2 for this year. I mean I'm talking about 26%, 27%. We have announced that we'll be raising INR 600 crores. But in case you don't raise then it can also go to the subsequent year because we have award if experience on that. Other we announced an equity raise of almost INR 8,500 crores to be as an enabling provision to raise by FY 2020. So we can raise that money in any year up to '28. So almost INR 14,500 crores is the planned raise of capital, both from the equity and also on the which is slightly. I mean, it can be on this year or subsequent year. So we have taken a medium-term plan of [indiscernible] this capital also, we normally keep raising Infra bone and other -- those are also part of the resources where we have to announce to the exchange. So those if there is a requirement to do that because sometimes you look at the duration of our liability book as whole -- and somewhere, we find that because we compute the duration of assets also and the gap between duration of asset full book, I'm not talking about only investment. So in case you want to tweak something as an asset liability management purpose, we'll keep raising long-term resources also. So it's all the ALM management that would decide whether we need to raise long-term resources in the form of infra and other one, if that with us for the announced low market at that point of time. but is already announced approved by the Board, which are enabling 8,500 equities INR 6,081.

And sorry, the capital raise plan of INR 8,500 crores, that is also on track, right? I mean you have a decent. Very strong CET1, but still despite where debt plan is on, right?

Yes, it is on. It is always on table. And it will depend upon the time at is we really want to tap it actually best on the market conditions and the requirement of capital for the bank for different. I mean any scenario going forward. Maybe a geopolitical or anything, if there is a need to regain. But then it's an enabling that is applicable until FY '28.

Right, sure -- and sir, do you have a number for blended bulk deposit cost for last quarter because I believe bulk deposit rate would have started to cool off? Or qualitatively, if you can comment how much, let's say, the blended bulk deposit rate would have come down for you?

Yes, I don't have -- I mean, data on this in case you want to kind of offline providing. But the issue is that actually, I was just giving you a contract in one of the earlier conversion were in 2, 3 years back, where a larger percentage of bulk as a positive of total deposit among the denominator because people compete in different way they get confused on this. So it was almost 250, 25,000 at some time, and we reduced that to 17% of total deposits a couple of quarters back. Now as you know, the liquidity scenario in March quarter is always a different scenario because of the geopolitical inducing a bit of liquidity tightness. So then from 17% to 22%, 19%, but still below 20%, which is my normal, what you can see the guidance with regard to deposit. So we'll continue to optimize best on the need for liquidity need for the growth on the asset at the same time, the pricing impact also will be mindful by doing this. So it's overall concept of liquidity management meal management that decide how much bulk we need to have and go for roads.

Right, sir. And sir, do you suspect any increase in the retail term deposit rate in the near term? Because I think a few banks have started to increase retail TD rate -- but what is your sense on that? Yes, I'm not predicting any increase in deposit rate, but one thing I've said that the cost of deposit of which we are one of the lowest in the system, if you have better 4.7 going to be sticky on the Q1. sticky in the sense, I'm not expecting that to go down for [indiscernible] think that number may not be very comparable because we have a 20% plus share of overseas which is [indiscernible]

I'm talking about the domestic is a right? That's still below 5%, not many banks below 5. Right?

[indiscernible].

In the -- I mean, sticking is -- I'm not expecting to go down actually going up would depend upon the liquidity scenario in the market.

And sir, have you made any PLI provision for this year and the quantum of that the performance-linked incentive.

Checks and we Yes, we have made provision for that actually a provision.

Sorry, sir, how much is the font -- and you in this sorry, sir, if I could get the quantum of PLI.

INR 500 crores, INR 500.

And this is now you -- I mean, where is it being a staff cost or this is some other provisions because I think they're still under mitigation, right?

So it is on the staff cost.

The very last question is from a Kunal Shah.

Yes. So particularly on the overseas exposure, almost INR 2 like 60,000-odd crores of book. So maybe if you can just clarify in terms of the profile, particularly 2 aspects. One is directly Middle East exposure. And second is how much is trade related, and there have been trade disruptions which have been there. So any risk because today, it's almost 0 NPA overseas exposure. Do we see any risk of the NPA coming up over 2 to 3-odd quarters?

Look, overseas, I mean the trends are normally up to 20% because we don't allow trade book to significantly go up because there is [indiscernible] the trade fine pricing because there's also impact on -- so I think on a percentage basis, the trade is below 20%, exactly if number I can give you because that's what we prescribe for oversight and continue doing business. Remaining exposure are mostly on a local syndications that particularly some of the markets were very big over there. Like U.S., even Give City is a big market, and they are all global syndication where we participate with High Street bank in terms of taking those exposure. Bigbooks in the U.S., Australia, in Singapore for the matter and all those. So I think as of today, there is no impact in terms of their asset quality on this. particularly Middle East, yes, we do have exposure because Middle East, we have a large retail of person over there. And then the outstanding can be in the range of around 50,000, 60,000 today, but that's again spread over multiple countries, which are, again, some of the countries are rated as on today. So the direct impact of this. I mean, all those countries, right, the regulator also, they have announced some kind of measures like the ECLGS we have done in India. So to sustain their operations. So real impact will not get to now until we just see, but end today, there is no concern with regard to asset quality because the other corporates having quite a strong balance sheet. And our large percentage of exposure or local syndication, which is global local syndication where we are marketing names in the book, and they are very big, some of them are Fortune 500. So I don't think any challenge today with regard to the global international

[indiscernible]Is operation, we need to be slightly watchful for a couple of quarters. Sure. And how much ECLGS 5.0 withdrawal are we expecting maybe the drawdown benefit which we might take up. So we participated last time also quite actively.

So I think our book is on like 60% is the MSME book and roughly 55%, 60% of the working capital and taking almost like everybody won't go up to 20% or maybe on a 15% scale, I think 12,000 plus would be amount that we'll be dissolving on the recent lease.

Got it. And one last question. If you look at auto loan, the growth is quite strong. We are seeing many of the PSU banks offering a very longer tenured product, 7 years, 9 years, and debt to at a very competitive rate, okay? Do we see some risk coming up because, obviously, there is depreciation, which happens after 4, 5 years, there would hardly be any value left out there. So why so much of aggression from PSUs on auto? And same with home loan in terms of competitive rates, when do we see PSUs lowering the aggression in these 2 segments on the rate side?

Yes, I don't see a PSU outlook here. But as far as the bank is concerned, we'll continue to grow on a autonomo, tons it's not a productive asset with generate revenue. I mean it based on the cash flow portion is having from which he pays the money. So our selection of borrower in terms of auto loans are only looking into cash flow, solid class where we have done a bulk transaction is bulk tie off. So I think in that way, the growth has been good. As on today, whether I take stress book or the GNPA percentage, I think these are all benign and very, very small at this point of time because the possible the ability of the cash flow to support the payout is still continuing the same way. So going forward, in case there is anything that we see at an elevated level of risk over there. Actually, we do portfolio review every quarterly on all the books. And these are all being done at a very senior level, pool level committee and also anything we see incipient less in this sector, which I don't see on today, and then possibly will available. But as on today, my guidance will continue the same way like we're continuing as

Everyone. I would now request the CFO, sir, to please give the [indiscernible] of thanks.

Yes, I would like to extend my sincere that to all of you for joining us today for the announcement and discussion of our financial results. Should you have any further questions, please feel to reach out to me to our Investor Relations team. Thank you once again for your time and continued support. Have a great evening ahead. Thank you.

Thank you very much.