Bank of India Limited (BANKINDIA) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Bank of India conference call. [Operator Instructions] Please note that this conference is being recorded. We have with us today, Shri A.K. Das, MD and CEO; Shri P.R. Rajagopal, Executive Director; Shri Swarup Dasgupta, Executive Director; Shri M. Karthi Keyan, Executive Director; Shrimati Monika Kalia, Executive Director; and other top management team from Bank of India. I would now like to hand the conference over to Shri A.K. Das, MD and CEO, thank you and off to you sir.

Thank you. Good afternoon, ladies and gentlemen. I extend a very warm welcome to each one of you for today's interactive session and share with you the financial results of the bank for Q1 of FY '21-'22. Q1 of the current year, as you all are aware, was a period during which the second wave of the COVID-19 pandemic played its havoc, which was beyond expectations. The banking sector has no exception to this, not only our business suffer, but our people suffered a lot. Of course, there has been remission in pandemic situation since June. With the vaccination drive in progress, the situation will improve further and activities of all the economic segments are likely to rebound again. During the quarter, the business growth in the banking system, as you all know, remain tilted in favor of deposits, with deposits growing by about 9.8% year-on-year and advances by 6.1%. Banks under the guidance of RBI and government, came out with new financing schemes for the health care sector in MSME and corporate sectors as well as personal loan schemes. Also, fresh stimulus package announced by the government of India and restructuring and other measures announced by the RBI have pave the way for a better and conducive environment for growth. Coming to the financial results. Our bank has bettered its performance during Q1 over the previous quarter, that is Q4 of FY '21 in certain parameters. The operating profit has gone up by 34% to INR 2,806 crores and net profit gone up by 188% to INR 720 crores. Sequentially also, NIM has improved to 2.16% from 2.01% in Q4 of FY '21. There has been a reduction in gross NPA, both in terms of amount and percentage. Gross NPA ratio has improved to 13.51% from 13.77% in March 2021. Slippage ratio has fallen from 2.05% in Q4 FY '21 to 1.09% in Q1 of FY '22. Similarly, credit cost has come down from 3.36% to 0.95%. All these overall for sustainability of better performance in the future in terms of profitability and efficiency. In terms of business growth, in line with the industry trend, although advances growth remained lower, our RAM advances rose by 11.02% with all the 3 segments, that is retail Agri and MSME registering growth of above 10%. Our CASA grew by 13.8% and its share improved to 43.22% from 41.27% in March 2021. As regards to various initiatives may I bring to the floor, various IT initiatives, including implementation of e-platform, migration to Finacle 10 will be made operational during the current year. Enabling the bank to have an edge in digital space. Improved IT-based system is also being put in place for enhancing collection efficiency and rigor mechanism. Our business growth and improvement impact specialized processing centers are already operating in the area of MSME, retail and agri fields, and depending on requirement, their numbers will also be further increased. For improving profitability and efficiency parameters, we are rationalizing our liability portfolio and augmenting credit growth in RAM segment as well as mid-corporate segments. We expect the business growth of 6% to 7% during the current year, with reorientation in liability and asset structure. Along with this, initiation of better collection and rigor mechanism will enable us to improve our NIM to at least 2.5% by the end of the financial year. We have already improved our capital adequacy ratio to 15.07% through better management of risk-weighted assets and, of course, increasing our capital, and the government has also through our AT1 bond rates. We will continue to have a capital adequacy ratio, which will support higher and profitable growth. I would again thank you for all the continued support, and I believe the presentation has been shared with all of you. So there may not be a requirement for a detailed presentation. So with this, I once again thank you and open the floor for discussion. Thank you.

Sir, can we open the call for a Q&A session now?

Yes.

[Operator Instructions] The first question is from the line of Sohail Halai from Antique Stockbroking.

Sir, just a couple of questions from my side. First, in terms of -- if I look at your margins, it's at 2.16% right now. So in terms of how do you plan to actually move the margins? And secondly, would you continue with your strategy in terms of lending to the PSU pockets or you're even moving towards a private corporate lending?

The private corporate, we are very open to that. The only issue there is lack of any CapEx demand there. See, last year, we sanctioned about INR 92,000 crores, the offtake as expected and as secularly found across the industry, the offtake was less. This first quarter also, we have sanctioned about INR 11,000 crores, but the disbursals have remained almost at 20% there. So it's a function of the credit demand and the activation of the real segment, which is still some time away, I believe. As regards other segments, RAM segments and government and government guaranteed PSU segment, we will continue our foray into that. So the same strategy will continue, but we are open to more of corporate segments also. So I think in the near term, at least up to Q2, the chances of ramping up our corporate exposure very significantly looks a little difficult going by the industry trend, but we are not averse to make that.

Sir, this actually came in from the understanding as well that your risk-weighted assets to overall assets is actually far, far lower. So probably in terms of when you are seeing some amount of stability in terms of asset quality, are your risk appetite in terms of if you could speak about -- do you intend to leverage more in terms of the credit risk so that your margins could also expand because that is fairly low right now, right?

The margins are low for a variety of reasons, not alone one that you are mentioning right now. Then there is a slide in the presentation regarding our loan distribution amongst various rating categories. You will see there that 88% of our portfolio are located in accounts rated A and above plus government guaranteed PSU backed accounts. So you are aware that not too long ago, we were the bank which was planned for PCA and all. So we have learned a hard lesson there. That's why we are also trying to see to that there is no adverse selection, and our credit underwriting standards are also prudent. This is one aspect. But I believe the major factors for the low NIM was basically two. One is the transmission impact, the last financial year onwards from April 2020 when the report cut has been to the extent of 40 basis points, we have passed on about 85 basis points to the customers. And MCLR, I think 60% of our advances are linked to MCLR. And the second thing is our revenue stream was falling short of our interest cost, primarily because of very high growth in deposits and low growth in advances. So one way forward is, which we are seized up now is to ramp up the advances numbers. Once the advances number pick up there and reach our MCLR level of 6% to 7% at least overall, RAM segment, 14%. I think this volume will help us improve our revenue stream. And accordingly, it will help our margins to improve.

So we are going fairly well in the retail segment. I assume that, that will continue. MSME segment would be a little stressful to grow right now, right? So that's why my pertinent question was are we looking to leverage into the corporate lending as well?

Sohail, one thing you should understand, now -- you also know that hardly any demand in the corporates today. Most of them are deleveraging and the value-rated corporates are into bond market, and they are getting very good rates over there. So there is hardly opportunity for us in terms of leveraging in corporate insofar as our credit risk profile is concerned. So basically, what we are looking at, as rightly pointed out by you, is we would like to grow in retail substantially, one. And we don't have the kind of issues, and most of them are typically score-based and we get a good margins over there. That is one thing. MSME, one thing I would like to tell you is there is a stress, no doubt. But the thing is our market share is very less. If you see banks like State Bank of India or HDFC their market shares are in double digits. We are hardly in single digit. We would like to actually grow at 5% [indiscernible] they're in takeover of accounts from other banks. Now when we talk in terms of takeover of accounts from other banks, we are talking in terms of those rated CMR 1, CMR 2 or CMR 3 accounts, where we can take over at better rates. So because of the rate passing that we have done, we have got one of the best competitive RBLR rates available in market today. So there is inorganic credit growth that I can achieve in MSME. Organic, of course, it is difficult. So in that sense, my margins will certainly improve. Another thing I would like to point out is the margins have substantially come down because of my international book, which has got -- we just squeeze the margins to a great extent because of the global interest rate scenarios. So once it picks up, once the Fed starts picking up all this, rate of interest will go up, then my margins there in international segment book also will improve. So our current demand would actually grow on that basis.

Okay. And the other question related to it is, our cost of funds has actually come off and probably with liquidity being there in the bank for us right now, we would look at a prolonged cost of fund being lower, right? So for 6 to 12 months, we would not be hiking the rates in the term deposits any sharply. So we are looking for a cost of funds that would continue to remain low for a longer period of time?

There are 2 reasons [indiscernible] would remain grow. Number one is we are actually -- we have had bulk very, very aggressively, one. Two, there like -- we are already giving a very, very fine interest rates, which is even less than reverse repo insofar as the bulk rates are concerned. So there are hardly any term deposit growth effects. Instead, what we would grow be retail term deposits and CASA aggressively. So naturally, the cost of funds would remain low for quite some time to come going forward.

And sir, final question from my side, if you could just quantify the overall restructured book?

Overall restructured book...

Sir, overall restructured book for the bank is [ INR 33,147 ]. But in terms of the numbers of first COVID restructuring and second COVID restructuring. First COVID restructuring was to the extent of INR 714 crores. And the second restructuring as on Q1, it was INR 5,299 crores. But one thing [indiscernible] first COVID. When those INR 714 crores was restructured our borrowers were able to pay that. They think there is a good resilience available along the [indiscernible] and the present outstanding is INR 5,098 crores. Second, there is a good action of recovery in restructured book as well.

No, I actually did not understand this because Slide 44 that you have given, in that you have given resolution framework 1, which is about INR 6,000 crores, resolution framework 2, which is about INR 5,300 crores and onetime restructuring about INR 7,300-odd crores. So these altogether put INR 18,000 crores, right?

That's correct.

Yes. So I should take this as overall restructuring. So I did not understand in terms of INR 33,000 crores number that you actually mentioned.

Standard restructured.

I was mentioning about standard restructure INR 18,471 crores.

Okay. So standard restructure INR 18,471, right?

The next question is from the line of Suraj Das from B&K Securities.

So I have a couple of questions. First question is on the follow-up of the last question. So your total restructured book would COVID 1 plus COVID 2 plus the standard restructure book?

Yes.

Yes, COVID 1, COVID 2 and all put together it's called Standard restructured, my dear.

Okay. So it would be INR 18,471 crores.

Yes, yes.

Understood, sir. And the second question is the upgrade in this quarter, and it has been healthy around INR 2,000 crores. So is this -- does this include one of large accounts, couple of large accounts? Or is this over a granular account?

Yes, it is definitely including the one-off large accounts. But nevertheless, that is about 65%. The rest of 35% came from regular upgradation.

Okay. Okay. Understood. And sir, on the recovery side, so what is the recovery pipeline that you are expecting in this couple of coming quarters or for the full year?

Sir, the gross NPA presently, it has improved from 13.77% to 13.51%, which you are aware. The slide is there with you. Going forward also, we -- if you see the fresh slippage, the fresh slippage is presently debt is INR 3,942 crores. But overall, if you analyze that, the total fresh slippages were around INR 8,216 crores but the net slippage is only INR 3,942 crores. That means there's a good recovery happening in those accounts which have been slipped also. So going forward also, we'll have a very good recovery numbers which improved by 3% to 4% per point for Q2. That is our credit.

I think he is asking about recovery for the remainder of...

Remainder of the quarter is around INR 5,000 crores.

Around INR 5,000 crores. Our projection for this year, recovery is total INR 10,500 crores. So we have done around INR 4,000 crores, now we'll be targeting further to achieve INR 10,500 crores.

Okay. Okay. Understood, sir. And one last question from my side. So do you have any other restructuring in pipeline as of now? Or this INR 18,471 crores is kind of the total restructuring that you can take?

We can assure you that none of our eligible customers are left untouched. All of them are being covered. Yes, there is another 2 months down the line, the regulator disfunction is available up to September. So we will take whatever that comes in our way and will not let our customers suffer [indiscernible].

So any ballpark number for the pipeline restructuring?

Around...

We don't see there are certain eligible accounts. Now the point is restructuring is basically a function of customers coming forward and seeking restructuring. So that's -- Okay. Now initially, the restructuring demand was a little higher, but now it has been tapered in the last 1 quarter. we feel that it will continue to be tapered. So therefore, it is very difficult for us to say what has been the number of amount of restructuring ballpark. And it also dependent on how the third wave will come about. So it is very difficult for us to predict a number now.

[Operator Instructions] The next question is from the line of Ashok Ajmera from Ajcon Global.

In fact, there was -- earlier the P&B meat was also there. So there were the overlapping we came a little late. Sir, compliments to you for a very good set of numbers, a good profit of INR 720 crores. My -- I was little -- initial stage, I was not there in this meeting. So maybe my question might be overlapping with some of the questions you might have answered. Sir, I would like to know about the sanctions pipeline, sir, on the -- because of the advances growth only the future will depend -- So what is our sanction pipeline, sir, for this year, or even today?

Sir. This year, in working capital, that means overdraft limit and CC, we are having around 30% unutilized limit. Over and above, we are having a current sanction of around INR 18,000 crores. And recently, we have sanctioned [ 7675 ] in 11 accounts, further. The sanctions are there, but the drawdown is not taking place.

All right, sir. So it's -- the way the things are looking and if the economy picks and third wave do not disturb us. In that case, we can think of some good credit growth.

Yes, yes.

And what would be your target for the credit growth, but for all these things if it doesn't affect the third wave or something this year?

6% to 7%.

Okay. So effectively, about 8% to 9% -- 9% to 10% will be required in the next 3 quarter?

Yes, yes.

Yes. just in that provision of INR 900 crores in Note #9 of 6 borrower accounts, what is the total outstanding in those accounts which would not be resolved in 180 days, 365 days?

Can you please repeat the number? We got the...

Note#9 of the audit -- this our report -- our audited accounts. You know that INR 900 crores provision...

Yes, yes. We are aware of that -- was that the number? [ 2,573 ] [indiscernible].

Okay, sir. In total outstanding.

Yes, yes. Net outstanding. Net outstanding.

Net or -- I mean, it is INR 3,473 crores or I mean.

Yes, yes.

So gross is INR 3,473 crores.

Yes.

Sir, just treasury has performed, again, very well, and we have got a very handsome treasury operations. INR 2,347 crores of the income. If you look at the segment-wise this thing. So what is our view for the future next 3 quarters on the treasury side because this is going to be the main component and so far it has been. So how do we look at the future? And my second question with the treasury is that this HTL to asset transfer of INR 8,109 crores, which had a book value of INR 7,495 crores. So this INR 600 crore book value to transfer value, what is the impact -- was that on the profit of the bank of this quarter?

Mr. [indiscernible] would like to take the question?

I'll take that question. The total noninterest income was INR 2,377 crores, of which, there is one account wherein we had a capital gain of INR 407 crores on account of retention of cost. If you exclude that, the other income continues to be robust, right? So our guidance for the next quarter is concerned. There is definitely going to be some amount of moderation in the gains from sale of investment, so also some profit from active transactions. But [indiscernible] this moderation will be offset by increase in interest income. You would understand there is always a trade-off between the interest income and the income from sale of securities where the interest rates are going up, the interest goes up and your ability to profits and make capital gains on sale securities reduces. So anyway, there will be moderation of around INR 200 crores in the next quarter.

I have got 2 small observation, this note number 22, a penalty of INR 4 crore has been levied on the bank. Generally, the regions are given. In this there is no region, it just says that the RBI during the quarter has levied a penalty of INR 4 crores. What was it actually? And whether it is a recurring nature or is a one-off kind of penalty?

So this is a one-off kind of penalty based -- only 3 reasons were there. This was -- one is delayed reporting of a fraud account. And second is some KYC issue in small accounts. And third one is transfer to DEAF account delay, delay in transfer to government deposits to DEAF account. Again, that was a one-off case. So there is no question of any recurrence. So these are the reasons for which the penalty was imposed.

And the bank has taken note of it and has set up something like how can...

Yes, that's what -- this was one-off case. So we have taken steps now. So as not to happen any kind of a recurrence of this.

And yes, of course, I can understand that. Sir, in this PCLC, sir, we paid INR 46 crores to buy the agriculture portfolio of [ INR 2,000 crores ]. A bank like Bank of India, why it is falling short of the basic minimum requirement of the loan composition, especially the agriculture loan or these kind of things. I mean are we not in a position to penetrate a little more inside and get the agriculture loan portfolio to be up to the limit rather than paying this INR 46 crores just simply at the premium?

No, it's not like that. Whatever we have assumed, actually, we are now very aggressive in gold loan segment and our SK also we activated. So to certify positive results, the way we won, because it's always -- if you see quarter-on-quarter, there is a shortage of 1%, 1.5%. That gap will be filled by these measures we have already taken. And coming quarters, this type of aberration will be minimal.

Sir, point well taken. Sir, just last point, sir, this Delhi Metro. Out of this INR 222 crores of outstanding INR 124.62 crores is provided. What is the composition of principal and interest in this?

Interest is not provided for my dear. It's only principals...

No, no. I will -- you see this INR 222 crore, Is this total principal?

It is total principal. Because, see, basically the only asset classification has not happened, Ashok. Otherwise [Foreign Language].

But if you look at the other banks, I mean, if the interest income was booked earlier...

[Foreign Language].

Okay. So only about INR 98 crores is remaining to be provided on that in case anything comes up against...

Yes, yes.

We take the next question from the line of Bunty Chawla from IDBI Capital.

Sir, if you can share the collection efficiency, how it has been April, May, June, July, if it is possible for you, sir?

Collection efficiency for sector wise or month wise.

No.

Sectors wise this 72% in agriculture...

[Foreign Language].

Month wise, in month of May is 94.90%, in month of May it is 93.67%, June, it is [ 92.77% ], on an average it is 94.5%.

Okay. Okay. And sir, can you share theme how the restructured -- collection efficiency in restructure is happening?

Restructured assets, most of them are under moratorium, okay?

Okay, okay.

So naturally, there is a hardly any collection over there into restructure assets because most of them enjoy payment holidays.

Okay. Okay. Sir, so can you share what is the restructured plan we have done with the borrowers? How much is the moratorium? And what is the...

Yes, within 6 months to 2 years, my dear. It's range of 6 months to 2 years.

Okay. Okay, sir. And sir, if you can share the data on ECLGS scheme, how much we have disbursed till Q1 FY '22?

It's -- in ECLGS 1.0, we have disbursed about INR 4,900 crores take it INR 5,000 crores and ECLGS 2.0, we have disbursed INR 500 crores.

Okay. Anything on 3 and 4?

Three and 4 just made a beginning.

Okay. Okay. Okay, sir. And sir, if you can share any guidance if it is possible. What will be the slippage ratio in FY '22 as if we don't consider the third wave impact? And second is almost out of the picture for us now. So if you can share any guidance on that, sir?

The slippage ratio has come down from 2.05% to 1.09%. There's a very good sign that the recoveries are happening. And going forward also, the Q3 in the COVID wave is not there. we can -- we are able to bring down much below 1. So I don't think there will be any -- because as you see, the fresh slippages also we have -- the total numbers are very much at the level of or INR 8,216 crores, but the actual slippage is only INR 3,942 crores. That means... [Technical Difficulty]

Requesting participants to please stay connected. We are just trying to reconnect the management back to the conference. Requesting you all to please stay online. Thank you. Ladies and gentlemen, Sir, we have Mr. and alanine. You may go ahead with that question.

Yes, Chawla. Were able to hear us?

No, sir, I was on the slippage ratio for FY '22. You were saying something on that.

Yes. So the slippage ratio presently come down from 2.05% to 1.09% this quarter. So we were just saying that slippage ratio, which was in the range of 4.81, 31 March '20, has now come down to 1.09 [indiscernible] tough call, and there's been a good response in terms of recovery. That's what we wanted to make a point.

Okay, sir. Sir, lastly, you have shared the sheet on the NCLT, there is approximately INR 38,000 crores outstanding. So in Q1, we are able to reduce these accounts at INR 147 crores of reduction. So any ballpark number for FY '22, we can have a reduction or a recovery from these accounts and NCLT?

We are having a ballpark number of around INR 150 crores to INR 200 crores. That's what our numbers are.

He's asking for rest of the -- you are asking for second quarter or for the rest of the financial...

For full year. For full year, for full year FY '22.

Around INR 2,000 crores, that's will include the bigger accounts. There are a couple of bigger accounts that [ INR 2,000 crores ] will be definitely be net positive.

The next question is from the line of Jai Mundhra B&K Securities.

Sir, first is on -- I mean on the SMA 1, 2, that you have reported, if you can also include the below INR 5 crores number, what would that figure be I mean, SMA 2, 1, 0?

INR 33,000 crores. SMA 0,1, 2, below and above INR 5 crores which translates to about 7.96% of our gross advances.

Okay. And sorry, sir, I missed that because I joined a little bit late, but have you mentioned the 0, 1, 2 separately, including everything?

The total -- the SMA 0 will be in the range of INR 8,158 crores and SMA 1 will be INR 8,449 crores as of [indiscernible] and SMA 2 is INR 16,537 crores. Total, all put together, it's INR 33,144 crores, which has come down from INR 51,720 crores, which you are well aware, during 31 March 2021.

Right. Now sir, out of the SMA 2 specifically, the above INR 5 crores is -- number is very manageable. But it looks like that the stress is more than below INR 5 crores and hence, the number is huge. And probably, you would have a little bit a little less what is paying, right? Because it would be like houses of accounts. So any sense on how -- I mean, the slippages that you mentioned that you will try to control it at around 1%. But I mean would this be the major pain area, I mean, which could actually still, going ahead? Or how should one look at this number, SMA 2, which is mainly from below INR 5 crores number?

As we already said, see, if you take the December results, it was around INR 80,000 crores. From INR 80,000 crores, the SMA level has come down to INR 51,000 crores, INR 51,720 crores for March and now it stands at INR 33,144 crores. So this deceleration is happening. We are not -- as you rightly said, the number is more in the terms of below INR 5 crores, but we are using this technology for that process. And contacting the borrowers from, and counselling them that this [indiscernible] irregularity should be avoided. The borrower has just put it well. So we are afraid, messages are being sent to them periodically. And our follow-up from the AMOs who are area managers and the branch managers has been very good because the data which is being provided to them on a daily basis is well taken by the field and follow up with more close. So we are anticipating a lesser pain in that segment, sir.

I think Jai, I can just sum up in one line, the worst is well behind us now, having come down so significantly from a very high number there will be only upside in the right side. It can only improve further.

No, no, point taken, sir, I mean, of course, from INR 80,000 crores to INR 33,000 crores is by no means a small reduction.

Yes. Yes.

Right. Understood. And the second question is, sir, on your upgrade, right? So the retail account would have upgraded. I just wanted to check what happens to the bond exposure. There is -- there will not be any movement there, right, because the loan only has been restructured.

bond is also restructured.

Margin also restructured, Jai.

Okay. Okay. So -- and then bond will -- I mean, there would not be any change in the rating or the provisioning or -- It will not come in the movement of NPA anyway right because it is bond?

Yes. There is a certain amount of provision that is being highlighted instead and there would be a mark-to-market provision on this.

Right. Okay. And sir, if you have -- if you can provide some guidance on the credit cost for full year FY '22 because it looks like the -- I mean the credit cost for this quarter is around INR 800 crores, INR 900 crores, and then you include some standard assets provisioning. But how should one look at the -- for full their credit cost in rupees crores?

Jai, it is not going to increase any further see. One thing is you know very well that the credit cost is basically a function of incremental provisions. We are not looking at huge provisions going forward. Again, which is again a function of risk slippages. If slippages continues to be at the level that BMD stage without taking into consideration the third day, and naturally credit cost also continue to be at the same. So the calculations may get hampered by third, except that there is nothing that we are really worried the current task. So throughout the year, it will be -- one will be the credit costs.

Okay. And what could be the aging provisions, sir. Only aging provision required for FY '22, assuming no meaningful recovery. What could be the, let us say, outer limit for provision for full year '22?

On an average on quarter-quarter basis around INR 1,000 crores is -- INR 1,000 crores approved [indiscernible]. Not INR 1,000 crores, I'm sorry. Overall, the whole year we're talking about INR 1,200 crores something for whole year annual basis, okay? That will not be more than that. Again, the aging provision, most of it for the amount of [indiscernible] very less. Most of it was suspended because of the COVID impact.

Understood. That's very helpful. And last 2 questions, sir. One is on again, on slippages. I think someone mentioned that the slippages at the peak were INR 8,000-plus crores and it has come down to INR 3,900 crores, which is what you have reported. So just to clarify, this was INR 8,200 crores worth of figure in some months, right, April, May, which have come down, as you would have recovered. Is that the understanding or...

The total slippages which you say INR 3,942 crore is the net slippages, which we are seeing at the balance sheet level. But actually, slippages are INR 8,215 crores, which we have recovered around [ 57% ] of that in this quarter itself. That means there is a good recovery happening in the slipped accounts that way. That's why we wanted to mention that. I hope...

Right. Yes, it is clearly just that, sir, I could not understand that if you recover an account within the quarter, it should ideally be there in both slippages as well as recovery or upgrade, right? Or you can put in net figure also?

There are 2 ways you represent the numbers. One is the gross slippages and gross upgrades. Another is the net slippages and net upgrades. So the industry -- across the industry, except some few banks most of them represent a net slippages and net upgrades.

Okay. Understood. Sir. And last question...

Jai, it is very pertinent to mention that these numbers which are quite good going by the situation now equivalent. These are after introducing daily marking of NPA from 15th of April this year. Earlier NPA marking was being done at month end. So in the month end, certain accounts used to breach 90 days also. But from April 15 of this year, we have started marking NPA on a daily real-time basis. Plus from 30th June, we have completely automated the IRAC accounting. So going in that context, I think these are good numbers, which we will try to consolidate further.

Correct. Understood, sir. And last question if I may ask is a slightly detailed one. On restructuring, sorry to come back on restructuring, again, you have BSC disclosure says that number is some INR 8,000 crores. But the PPD sales that the number has come down to INR 6,000 crores. So that is the same number, right? I mean it's just that people got restructured, but they reduced their balance. Is that the understanding?

Yes, Jai. You are right.

Sure. And now, sir, on restructuring, if I were to total, I think you had mentioned that if I want to understand the outstanding standard restructured, I could total INR 6,000 crores plus INR 5,299 crores and INR 7,300 crores onetime restructuring. This would include your MSME scheme also, right which was some INR 4,000-odd crores number?

Yes, yes.

Understood.

[indiscernible] Includes MSME and retail also. COVID 2.0 includes retail.

Correct. And even earlier scheme wherein Air India was restructured, right? So everything is there in this number?

Air India, yes.

The INR 18,471 crores -- the total restructuring, including January restructuring is INR 31,380 crores.

Okay. This is standard number book INR 31,000 crores, or...

Total restructured book. Total restructuring is INR 18,471 crores.

But that will not include your CDR restructuring, right, which was, let us say, 1 year back, that number -- I mean earlier CDR scheme.

No, no. Standard restructuring will not count this. Total restructuring, it will be to...

Yes.

Total restructuring, it includes reversing all kind of [indiscernible].

Correct. So that number is INR 31,000 is standard only, right? It will not include NPA?

It will include NPA also. That's what we are trying to tell you.

Standard restructure is your number, whatever you are...

Total restructuring is 31,318.

It will include NPA.

So actually, I wanted to know the outstanding standard restructuring, including the previous schemes also?

INR 18,471 crores.

[Operator Instructions] The next question is from of Ashok Ajmera from Ajcon Global.

Sir, could you give any update on LARCL, the bad bank? What is the status of those accounts which you have identified? And what is the progress there, sir?

There are 12 accounts. We have intended to...

Involving INR 3,500 crores, right? there are accounts INR 3,530 crores.

INR 3,530 crores is the outstanding amount of the loan account.

Yes, yes.

It's a very small amount. I mean and the valuation might come maybe about INR 400 crores, INR 500 crores kind of a thing?

It looks like that.

15%.

Okay. So we might get some small amount of cash and rest this thing. So nothing much on that.

Cleanup of the balance sheet is a major...

Yes, a whole objective is that only. But when do you think this first lot will be by in the July, September quarter, it will happen?

No, I think it may spill over to the next quarter, Q3 onwards.

And in all our numbers, which we are giving of the future, this thing, we are considering this INR 3,530 crores of drop?

Yes, yes, yes.

Sir, coming back to this, because I was in between -- we were locked out of something like this upgradation of INR 2,057 crores, so what is the composition of it? I mean how much is restructured and how much are actually regularized or begin standard?

That's one-off account, around 65% of that INR 2,000-and-odd crores. But the rest of it is regular updates, around 35% will be of that in regular upgrades.

Okay. All right. Sir, coming again to the credit growth, sir. Can we have a little more clarity, like you said that unused working capital limit is 30%, and then there are sanctions of INR 18,000 crores. Can we get some a little more finer points of this the corporate loans, the credit, the working capital for MSME or subsegment-wise something so that we can draw some kind of conclusion of something that how much at least are we growing and which are the segments where we are growth?

There are 2. One is corporate. The other one is noncorporate. And of course, government and PSU backed entities. So for corporate, as Mr. Dasgupta told, still the drawdown is an issue, not only for us, for the entire industry, that's an issue. So what will be our endeavor is to grow as much as possible another RAM segment, where we are advertising growth of about 14%. Currently, we are trading at 11%. So that is one aspect. Second is new segments where we'll be growing. So for example, pharma sector as well. Under our Starcare we have already done about INR 700 crores. We are planning to build a COVID loan book of about INR 6,000 crores during this current year. We have made some progress. I think still discussions are on. So that is the health care and pharma is the one segment where and renewal [indiscernible] because we are having exposure which are near to the sealing. So -- and of course, now you are seeing PMI index moving up, I believe things may come back to normalcy, maybe from October onwards. So we are very interested for that and very excited that we have built up adequate capital buffers so that there won't be any kind of roadblocks when we want to expand that. But yes, our diligence will continue to be very, very -- we'll be very careful and taking an entry level -- below interlevel strict no growth, and we'll be taking going for higher-rated accounts. And then overall 6% to 7% growth at the moment is what we envisage.

Any thinking on this major co-lending kind of thing where we can expand the book very rapidly?

Yes. We are in talks with 1 or 2 entities. I think by this quarter, we'll be able to complete.

Are we also getting into some kind of gold loan also for co-lending or only the MSME.

Gold loan, not yet. Gold loan, we are on our own. We are doing well there. So basically, in the private sector only, we are looking at.

All right, sir. Thank -- And indeed, the performance is excellent. And I think we'll see much better performance in coming quarter.

Thank you, sir. We value your comments.

[Operator Instructions] As there are no further questions, I would now like to hand the conference over to Shri A.K. Das for closing comments.

So once again, from entire theme of Bank of India, a big thanks to all the analyst friends for interacting in depth on various issues. And as assured in the beginning that we are on a good track now. We will try to move much faster. And we will try to take whatever the odds come our way. So maybe going forward, coming quarters, what we started from Q1, you will definitely see further consolidation in there. Once again, thanks a lot to all of you. Thank you.

Thank you. On behalf of Bank of India, I announce that this conference call concludes. Thank you for joining us. You may now disconnect your lines.