Bank of India Limited ($BANKINDIA)

Good evening, ladies and gentlemen. Good evening once again. A very warm welcome to today's Analyst Meet of Bank of India's Quarter 4 results for FY '26, which is being conducted in a hybrid mode being attended physically as well as virtually by our analysts from Pan India. We have with us on the dais Shri. Rajneesh Karnatak ji, our MD and CEO, sir. Joining him on the dais are our Executive Directors, Shri P. R. Rajagopal, sir; Shri Subrat Kumar sir sir; Shri Rajeev Mishra sir; and Shri Pramod Dwibedi sir. I request our MD and CEO, sir, to kindly address this gathering to begin with. Yes, sir. Over to you, sir.

Thank you, Madam. Good evening, everyone. Thanks for coming. Good evening, ladies and gentlemen. Thank you for joining us today on this eve of publication of our bank's financial results for 2025-'26. This year has been another significant milestone in the bank's journey marked by a resilient financial performance, strengthened asset quality and robust business growth and continued commitment towards the nation building. Despite global uncertainties, geopolitical tensions, evolving interest rate scenarios and cycles and changing regulatory expectations, the Indian economy has demonstrated remarkable resilience. In this backdrop, our bank has continued to play a proactive role in supporting economic growth while maintaining financial stability and prudent risk management. During the year, the bank recorded healthy growth across key parameters, including deposits, advances, operating profit and digital transactions. Our focus remained on a calibrated credit growth with emphasis on quality, underwriting, sectoral diversification and responsible lending practices. My speech is in 3 parts today: first part being institutional initiatives that we have taken, the second part being the business that we have done and third part being the profitability and the asset quality. So on the institutional initiatives, the bank is establishing zonal deposit centers at all zonal offices to accelerate the CASA accretion and its market share. This initiative is designed to ensure long-term retail stability and foster deeper and more meaningful customer relationships as far as the CASA franchise of the bank is concerned. The bank has also strengthened the Umang app, which is the Government of India app with its own BOI Omni Neo platform, creating one-stop digital solution for a wide range of central and state government services. The strategic partnership with the National E-Governance division allows our customers to conveniently access essential public services through a streamlined redirection model directly within our own banking app. The third is the bank has launched the Bharat Connect biller operating services, enabling corporate customers to onboard themselves as billers and offer their customers diverse digital payment options. This initiative enhances the digital reach and strengthens the collection processes, ensuring a more convenient and efficient payment experience for all these stakeholders. The bank has also established dedicated MSME desk help lines to address the borrowers' concerns directly. This initiative facilitates structured regular interaction, ensuring a transparent and responsive grievance redressal mechanism for our MSME customers. The second part is with respect to the business. The global business has grown by 14.57% on a Y-o-Y basis from INR 14.63 lakh crores in March '25 to INR 16.98 lakh crores in March '26 with an incremental growth of nearly INR 2.16 lakh crores. The global deposits have increased by 13.56% on a Y-o-Y basis from INR 8.17 lakh crores in March '25 to INR 9.27 lakh crores in March '26 with an incremental growth of INR 1.1 lakh crores. The domestic deposits have increased by 14.30% on a Y-o-Y basis from INR 7 lakh crores in March '25 to INR 8 lakh crores in March '26. CASA has increased on a Y-o-Y basis from INR 2.80 lakh crores in March '25 to INR 3.01 lakh crores in March '26 with an incremental growth of more than INR 20,000 crores in March '26 and the CASA ratio stood at 37.64%. Gross global advances have increased by 15.82% on a Y-o-Y basis from INR 6.66 lakh crores in March '25 to INR 7.71 lakh crores in March '26 with an incremental growth of more than INR 1.05 lakh crores. Domestic gross advances have also increased by 16.10% on a Y-o-Y basis from INR 5.64 lakh crores in March '25 to INR 6.54 lakh crores in March '26. Our RAM advances have increased by 19.11% on a Y-o-Y basis from INR 3.23 lakh crores to INR 3.84 lakh crores in March '26, constituting 58% of the total advances as on March '26. As far as the profitability and the asset quality in the bank is concerned, our operating profit has improved by 4% on a Y-o-Y basis and stood at INR 17,049 crores for FY '26 against INR 18,412 crores in FY '25 -- INR 16,412 crores in FY '25 and for the quarter ended FY '26 Q4 at INR 5,026 crores with a Y-o-Y growth of more than 3%. Net profit has increased by more than 14% on a Y-o-Y basis and stood at INR 10,527 crores for FY '26 as against INR 9,219 crores in FY '25. And for Q4 FY '26, it stood at INR 3,016 crores, increasing -- witnessing a Y-o-Y growth of more than 15%. Net interest income has also increased by 3% on a Y-o-Y basis and stood at INR 25,172 crores for FY '26 against INR 24,394 crores in FY '26 and for Q4 of FY '26 stood at INR 6,730 crores against INR 6,063 crores in Q4 of FY '25. Noninterest income has increased by 10% on a Y-o-Y basis and stood at INR 9,874 crores and for FY '26 as against INR 8,994 crores in FY '25. Global NIM stood at 2.52% as on FY '26 as against 2.82% in FY '25. Slippage ratio stood at 0.83% as against 1.36% in FY '26 and credit cost has improved to 0.46% in FY '26 as on -- FY '26 as against 0.76% as on FY '25. There has been improvement in the asset quality with reduction in both gross NPA and net NPA ratio. Gross NPA ratio has improved to -- by 129 basis points to 1.98% in FY '26 and net NPA ratio has improved by 26 basis points on a Y-o-Y basis and stood at 0.56% only in FY '26. Provision coverage ratio has improved to 93.57% in March '26 as against 92.39% in March '25. As on 31/3/26, bank's CRAR has improved to 18.01% from 17.09% as on March '25. Now to conclude, in alignment with the prevailing global economic conditions, the guidance for the global advances growth will be around 15% to 16% and the guidance for global deposit growth is around 13% to 14% for FY '27. The bank's primary focus will be on strengthening the deposit franchise for a higher share of low-cost funds while driving the growth in high-yielding advances to support the margins. Additionally, focused efforts will be there on maintaining the balanced CD ratio, which is the credit deposit ratio and enhancing the return on assets will deliver a stronger financial performance. Investment in digital infrastructure and cybersecurity will continue to enhance efficiency and resilience. Together, these actions will enhance the measure expansion of the bank -- measured expansion of the bank business and reinforce long-term value creation for all stakeholders. The detailed annual report being released will provide comprehensive insight into the bank's financial performance, strategic direction and also governance practice and the future outlook of the bank. I would like to thank you all for your continued support. The floor is now open for discussions and question answer. Thank you all for coming here and [Foreign Language]

[Operator Instructions] So let us begin. Yes, who's going to be the first one? Nobody from here. So let us take if Mr. Ajmera is online because I got a text can you put him through Mr. Ajmera...

In fact, I don't have the question. I have major observations. A few observations, some compliments. So my compliments to the entire team of Bank of India for yet another good quarter of very good results. Even good business growth, good profitability, very good control on the asset quality, good control on the slippages. And overall, a fantastic quarter and a year, compliments for the same. Can you hear me?

Yes, we can hear you clearly.

Yes, sir.

Yes, sir. Karnatak ji, compliments to you. Sir, having said that, I have just a basic question which is coming to the mind is that the ECL guidelines are already announced now the final guidelines. So how our bank is prepared to meet the provisioning for the same starting from 1st April 2027? Are we equipped fully to not take the benefit of those 4, 5 years, which are allowed? My second question is on the ECLGS 5.0, which has been announced by the Government of India 2 days back only. I think with that, a lot of -- I mean, the more room will open for the credit growth. So how much growth are you expecting? I mean, have you done the analysis of the customer who are eligible for this emergency credit line? And how much of that can -- you are expecting to materialize as a credit done?

Yes. Thank you so much, and thank you for joining also for this con call. As far as the first question is concerned with respect to the RBI ECL guidelines, which have come out, which are effective from 1st April 2027, we have already done a lot of homework and preparation since the draft guidelines have come. We have already onboarded one of the big 4s for the transitioning towards the ECL regime. And already, the teams have already been made in our head office from the risk department side on the calculations of the various ratios and other things. So as far as the impact is concerned, not much of an impact will be there that much I can assure you. And with the kind of asset quality and the SMA numbers that we are having and the declining trend in the SMA numbers, the transition for Bank of India to the ECL guidelines of RBI will be smooth. As you rightly said that it is for 5 years, starting from 1st April '27 to 31st March 2032. And the impact will be spread across the next 5 years. As per our calculation that we have done, the impact will be only 0.50% per annum, aggregating to total 2.50% over the next 5 years. So just to give you a sense on that, we have a net profit of presently, as we have shown in this financial year, INR 10,000 crores of net profit, which is improving the CRAR of the bank and the CET1 of the bank. And if you remove the net dividend also of around INR 1,800 crores to INR 2,000 crores that we have to pay, still the accretion to the net worth and the CRAR is by a good INR 8,000 crores. So not much of impact will be there on the CRAR and the overall impact per annum will be only 0.5%, which we have sufficient cushion in our net worth and the CRAR and the CET1 to absorb. Presently, as I told you that our CRAR is 18.01% as against the RBI mandated 11.5%. So as regard the ECLGS is concerned, 5.0 announced by the government for a total gross of around INR 2.55 lakh crores. So as you are aware, there also, it is for both MSME and non-MSME. MSME is having a credit guarantee of 100% and non-MSME is having a guarantee of 90%. And the payout is 5 years for the MSME and for the airline sector, for the MSME and non-MSME, it is 5 years. For the airline sector, it is 7 years. So we have already started -- our teams have already started doing the calculations and finding out the list as far as our MSME borrowers are concerned and also allied sector in the agriculture is concerned, our mid-corporate team has also started that through the ECLGS branches, the emerging corporate branches that we have 19 branches and the large corporate team has already started identifying the accounts under which we'll be eligible for the working capital. So as you are aware, 20% of the working capital of the peak of the Q4 will be eligible, 20% for the ECLGS. So we have done some ballpark computation calculation in that. So we expect around INR 10,000 crores to INR 12,000 crores, we will be able to fund under the ECLGS scheme this time. So the next week, we'll be going to our Board for approval of this scheme for our bank. And after which it will immediately get rolled out in the branches. And we expect that a lot of MSME borrowers and also allied sector in agriculture and some of the corporates and mid-corporates will be immediately coming and availing this facility in this financial year. Thank you.

Yes, the mic to the first. Okay.

First of all, congratulations on a good set of numbers, sir.

Kindly introduce yourself.

Nishit Shah here from Visolitech Investment Advisors. My question is regarding your retail deposits. So what we've seen is that reliance on bulk deposits has increased. No doubt, there has been a very tight competition when it comes to retail deposit. RBI has also said that banks need to innovate. And I think you are the first one to start with no minimum balance scheme, right? I think it has to be more pronounced because every other bank is doing and we are having a product which is innovative. That is one suggestion. And what is the comfortable CD ratio because I think your asset growth is much higher than your liabilities growth. That would be my first question, sir.

Yes. So thank you. So as far as our retail franchise is concerned, so if you see in our presentation also, so our CASA percentage, 37% and retail deposits at around 44%. Our retail franchise of the domestic resources side is around 81%, 82%. So the remaining percent is the bulk term deposits. As you rightly said that there has been a structural change which has happened as far as the deposit color of the deposit is concerned. And a lot of funds are flowing out of the banking system into other asset class like equity, like mutual fund, like gold, like real estate and others. So there has been a lot of competition among the banks how to fund this credit growth, which is coming. So that is one part. However, if you see from our presentation, you will see that in spite of all these headwinds, which are there, we have been able to grow our CASA in absolute terms by more than INR 20,000 crores from INR 2,80,000 crores to INR 3 lakh crores. Similarly, on the retail term deposit side, in spite of that, we have been able to increase our retail term deposit percentage from 45.89% in absolute numbers, it has now touched INR 2,19,000 crores. So that is the kind of number it has already touched. So we have taken a lot of initiatives and made strategies to improve our retail term deposits and particularly the CASA numbers, which are there retail deposits. One thing is we have already launched our Project Uran, which is under the Big 4, under which we are giving very strategic importance and monitoring to the branches and the targets which we have given to the branches for both the SA and the CA and also the retail term deposits. That is the first part. And our head office department, resource department is totally attuned to that and a lot of monitoring and VCs are happening to the field functionally like the branches, the zonal offices and also the FGM offices. That is number one. Second is that we have 69 zonal office and 13 FGM offices. So there, we have posted one resource, which is the resource RM, which will take care of the resources side in the bank. So 82 RMs have been posted for this kind of work. Apart from that, the new initiative, as I said in my speech, is that we have also started the Zonal Resource Center, which we call the ZRC. There, the officer, along with his team will be posted, and they will be monitoring the branches and also calling out to the customers and moving out in the market to garner new CASA and the retail term deposit. That is another initiative we have taken. We have also identified nearly 1,000 HNI branches across the country. We have 5,500 branches, HNI branches, which will be like for more of business. And what are these HNI branches. These branches are which have majority of the accounts, saving accounts, which have average quarterly balance of more than INR 5 lakhs, that is another initiative that we have taken as far as that is concerned. Then we have a subsidiary, which we call [indiscernible]. There, we have started feet on street. So asset side sale of products, we have already started this year now we have started in Q1, the liability side also. So these are the feet on street who will be moving in the market for opening of saving account, current account and retail term deposit. That is another new initiative we have taken. Apart from that, we will be building a new sales vertical in the bank, which will be headed by a general manager right from head office, general manager sitting only for sales and marketing up to bottom at the branch level. So it will not only be for resources, this sales person, they will also be selling the asset products and also the wealth management products. So basically, we are creating a vertical for the sales vertical in the bank for the first time, where the general manager will be in charge for sales and marketing in the bank for retail products, liability products, asset products and the wealth management products, which are there. And then apart from that, we have already opened 200 branches in FY '24, new branches. 200 branches were opened in this financial year FY '26, new branches. Another 200-plus branches we will be opening in FY '27. So these 600 branches, the idea is to garner resources like CASA resources and retail term deposits on one side, loan products like RAM products on the other side and thirdly, the wealth management products. So all these things taken together, all these strategies will help us in improving our franchise, our strong franchise that we have on CASA and retail term deposits so that we are able to reduce our cost of deposit, number one, so that we are able to improve our margins in the long term. And as far as your other question is concerned, with respect to the CD ratio is concerned. So see, if you see the RBI guidelines which are there as far as the CD ratio is concerned, we have to put money in SLR and CRR. So 78%, 79% can be the idle CD ratio, which is there. If you see our CD ratio, it is around 82%, 83%. But that is because of the fact that the CD ratio is higher because obviously, there is a crunch of resources which is there. So we are having a higher CD ratio. In order to optimize our resources, we have a higher CD ratio at around 82%. But that CD ratio is helping us in improving the overall business of the bank. And if you see our numbers more granularly on the slide, you will see that the 2 lakh delta, which we have created on the deposits -- total business side, the deposits have grown more than the advances on the Y-o-Y basis also. And if you see sequentially, the quarter-on-quarter basis, there also, we have grown more deposits than the advances. So we are very cognizant of the fact that whatever accretion of the advances, which we do, like we are giving a guidance of around 15% to 16% of raising of advances. So we are very cognizant that majority of that advances raising will be happening through the raising of deposits, which is to our 5,500 branches.

We'll come back to you. We'll definitely come back to you. Yes gentlemen, would you like to ask a question?

This is Namit Arora from IndGrowth Capital. Sir, I would like your assessment on any likely impact on credit quality given the recent geopolitical developments because there may be some lag effect of, let's say, crude price or input costs or logistic disruptions. Since you are a very large institution, I would like your thoughts on any potential impact on credit quality?

Yes. So the global headwinds, which are there presently, so definitely, it has some impact. See, we already are seeing that there has been a rise in Brent crude prices, say, at $102 per barrel. Number two, the interest rates are also rising. Another thing is that with the interest rate rising and Brent crude happening, there may be a chance that the inflation may also go up. And there are certain rating agencies which are saying that the growth in the country, the GDP may also come down. So from 7%, it has been said that it will now come down to 6.9% RBI has also said that. With all these things happening, there are certain headwinds which are there. And the supply chain is also disrupted both for the importers and the exporters. And there has been a significant increase in the Baltic index, which has happened by nearly 2x -- 2.5x to 3x. So -- but what we see from the media and other kind of things, we feel that a solution will come out very shortly, maybe by the end of this quarter, and we'll be able to tide away with this crisis, which is there. But if it does not and if it continues, definitely, there will be some headwinds. But one thing I can assure you is that this ECLGS scheme, 5.0, which the government has announced, it has come in the right time. And whatever the stress which may come into the MSME and the non-MSME accounts, particularly in terms of working capital requirements because of the increase in supply chain, increase in the cost of their operations and other kinds of things, that will be tied out through this 20% immediate relief, which we are giving by way of the ECLGS. So whatever stress which may come, that will get eased out through this ECLGS, but there are certain sectors definitely, which is particularly exporters and the importers and also certain segments within the industry like you can say ceramics, pharmaceuticals, chemicals, which may be feeling the heat of this geopolitical situation in the immediate term.

You would like to ask something.

Congratulations to Team Bank of India for excellent performance. Sir, I heard some of your initial comments about growth on deposits, advances. Can you elaborate some numbers on ROE, ROA, NIM and your CD ratio, you've already indicated how do you balance corporate and RAM advances, the new initiative which you've taken for deposit mobilization through new zonal office and others. How are these touch points looking? What kind of growth aspirations are being looked at? Because if that number moves from 37% to 41%, 42% in 2 years, the bank may have a sizable impact on positivity. This is the first question.

Thank you so much. So some of the points as far as the ROA is concerned, if you see our ROA, we have now touched in Q4 ROA of 1.01%. So we are above 1% as far as the Q4 is concerned. However, having said that, our overall ROA for the year is 0.93%, and it is above the ROA of 0.90% in March '25. So there has been an improvement because of the net interest income issue, the ROA, we could not improve to the desired number which could have been. But definitely, we have touched the ROA of 1.01% in the Q4. As far as the guidance on the ROA is concerned, for the whole year FY '27, we are giving a guidance that we'll be touching a number of 1% for March '27. As far as the NIM is concerned, again, as I said in my opening speech that our NIM is at 2.52% global NIM, which has come down by nearly 30 basis points from 2.82% in March '25. Having said that, I would like to clarify that as you are aware, we have a very strong international franchise and 14% of our book is the international book, where the NIMs are quite compressed and it is in the range of 1.10% to 1.30%. But our domestic NIM, as far as the domestic NIM is concerned as on March '26, it is at a very healthy 2.78%. And with the kind of strategies, which I already said that as far as the raising of resources is concerned that we are very confident that we'll be able to protect our NIMs in FY '27. And certain strategies, which I can elaborate is one of them is that we want to increase our MCLR advances. That is one part. Second part is that we want to increase more of our RAM advances because there the margins are much better. Third point is that we also want to increase our mid-corporate advances through our emerging corporate credit branches because, again, the NIMs are much better. We are able to get better rate of interest, number one. And we are also able to get the noninterest income in terms of better process fee, LCBG commission and other kinds of things. Apart from that, we are strategizing in this year that we increased our CASA deposits through our Project Uran, where we have onboarded one of the consultants over there, increase our retail term deposits so that we reduce our cost of deposits and through the MCLR and other kinds of initiative on the asset side increase and improve our yield on advances so that we improve our net interest income. So these are some of the things which we are planning to do. Apart from that, we also want to reduce our fresh slippages. Once we are able to reduce our fresh slippages further, we have already reduced them to INR 5,500 crores, if you see our presentation in the entire year, and we want to further reduce it to INR 4,000 crores in this financial year. If we are able to do that, there will be more earning assets for the bank, which will help us increasing the net interest income and finally, the net interest margins and overall profitability of the bank. So these are the brief thoughts that I just wanted to share as far as the margins are concerned.

In the current environment, how are you seeing growth, specifically the visibility on pipeline led by as India is transforming, a lot of new sectors are emerging, whether it's renewable, data center, warehouses, new roads, maybe a few more states are now being added after election for a lot of infrastructure expansion. At the same time, how do you see a balance between corporate book and RAM? I understand that I'm sure you're targeting 60% and above on RAM, but what would be a visible number if we look 1 or 2 years beyond?

So as far as the RAM book is concerned, we are targeting a number of, say, around 62%, the RAM book and 38% the corporate book. So that is for the strategy for the next 3 years for March '29. That is the strategy as far as that is concerned. But having said that, let me clarify that it does not mean that we will not be growing our corporate book. So when we say that 62% will be RAM book in FY '29 and 38% will be corporate book, our advances will also be increasing, and we are targeting advance of somewhere around INR 11 lakh crores as on March '29. So which is the number through which the corporate advances will also be increasing simultaneously along with the RAM advances. That is one point. Second point is that we are going very strong as a strategy in the emerging corporate credit branches that we have opened 19 branches through which we want to increase our corporate advances, which are between the ticket size of INR 50 crores to INR 250 crores. That is another thought that we have, and we want to increase that base, which is there between INR 50 crores to INR 250 crores. As far as the sectors and segments are concerned in the corporate, we have a lot of good pipeline, which is there, as I said also earlier, that INR 70,000 crores nearly is the pipeline that we are having INR 65,000 crores to INR 70,000 crore pipeline we are having in the corporate total pipeline that we have as on date when we speak. Out of that, around INR 15,000 crores is in the the RAM book. Remaining the pipeline is with the corporate book, which is around INR 50,000 crores. And in that pipeline, we have infra pipeline also, which is roads, which are there. Power sector is also there. Data centers are also there. Apart from that, there is an industry, which is also there in the pipeline. EV vehicles are there, battery is there. Solar panels are there, manufacturing of solar panels is there. Apart from that, some LRD transactions loan lease rental discounting transactions are also there with us. Biogas is also there with us and rare earth metal mining is also there with us. So such kinds of proposals are also there with us, which are already in the pipeline, which are new gen proposals. There we will -- we are seeing a lot of uptick, which has happened even in the gas pipelines, which are there, some of the transmission pipelines, which are coming and some of the new road projects which are coming in some of the states. So all these put together, we are very confident that the guidance that we have given for this financial year, 15% to 16% of credit growth we will be able to achieve.

Can we see domestic NIM of 3%? Domestic NIM of...

Yes. So we are saying that, yes, we will have a NIM of somewhere around from present 2.52% at somewhere around 2.70% to 2.75% NIM we are targeting -- we are guiding for March '27. Domestic NIM, definitely, we are targeting to get as close to 3% as possible.

So there's one online question which has come up from Mr. Vansh Solanki from RSPN Ventures. He says that we have seen in many other PSU and private bank results that due to GSEC yield rising, they have increased their discount rate for actuarial valuation of employee liabilities. And thus, there was a major decrease in the employee expenses in Q4 in many PSU banks. So we -- so have we also done the same? Are we expecting any positive on this in Q1 results?

Yes. So can we share any number present we have any number on that?

Our CFO will respond there. CFO is there.

CFO, sir, kindly pass on the mic to Kumar, sir.

Kumar, you have any number with you or we can answer it later, whatever you feel.

In Q4, we have not taken anything as far as Q1 is concerned, presently, we don't have any number. We'll update later.

Okay. Mr. Vansh, the updates will be given to you. So there's one online person has raised his hand. It is Mr. Nitin from Aurum Capital. Ganesh, is he still around?

First of all, congratulations on a good set of numbers considering the prevailing conditions and results from other PSU banks. The bank really did a commendable job over here. And especially on the provisioning and NPA front, also the ROA has gone past 1% range that you mentioned, which was promised earlier also. Also, the growth remained broad-based, which is very healthy. So this is super overall. I have just 2 questions, and I'll ask both together. Otherwise, ma'am will cut me short and may not give opportunity. The first one is we have an elevated provisioning versus Q3 from INR 605 crores provisioning to now INR 1,211 crore provisioning. So what has happened there? My second question is again related with NPAs only. So what is the status of recovery in state PSU and central PSU defaults that we reported earlier?

So as far as the provisions are concerned, I can just share the numbers with you. Yes. So as far as the quarter-on-quarter provisions are concerned, if you see our presentation, so for bad and doubtful debts, the provisions, in fact, from December quarter, INR 605 crores, they have gone up to INR 1,200 crores. And for the standard assets, they have -- already, they were minus at INR 29 crores. It's minus INR 221 crores because of the non requirement and the reversal of those provisions. And provisions for before tax total INR 576 crores, they have gone up to INR 990 crores. So that is the provisions as far as the provisions is concerned. So overall provisions, if you see for the year-on-year basis, for the bad and doubtful debts, which is the NPA from INR 4,500 crores, it has come down to INR 3,300 crores. And as far as the nonperforming investment is concerned, so minus INR 282 crores was there in the last year. And this year, there is no impact, no provision on that account. And for the standard assets, which is from INR 333 crores minus, it has further got reduced by INR 290 crores. So not much of impact as far as the provision -- overall provision is concerned. But as far as your next question is concerned with respect to the State and central PSUs impact is concerned. So there was only one central PSU, which got NPA in the last financial year for which we have fully provided also. So there will be no impact on the profitability or provisioning as far as that central PSU is concerned. As far as some other PSUs are concerned, which are coming, if you see our slide on the SMA in the corporate book is SMA-0, SMA-1 and 2, there are 3 state PSUs are there, which are being coming under the SMA category. They continue to move -- roll forward and roll backward during the quarter. But one thing we are confident that they are having cash flows with them, and they will not be slipping into the NPA category. And we are confident that we'll be able to protect the asset -- the NPA as far as those state 3 PSUs are concerned. But yes, they will continue to remain in the SMA category with respect to some challenges on the cash flow side.

Ganesh, is Mr. Ajmera still there? He wants to ask one more question. Yes, Ajmera ji, are you able to hear us? Kindly put him through. I think there is some...

Sir, I mean most of the questions have already been answered. I got just a couple of questions and some observations. Sir, the noninterest income, every bank is trying to increase because of this pressure on the NIM, I mean -- and because of the high cost of the deposit and fundraise. So going forward, what plans do we have to increase our noninterest income? And recovery from the written-off account, which is a major source of noninterest income, the other income, what is our total written-off book? And how much are we expecting in the FY '27 to recover from that?

Yes. Thank you. As far as the net interest income is concerned, if you see the annual entire P&L of the bank, so we are having an interest income of around INR 75,000 crores. And our interest expense is around INR 50,000 crores, which leaves us a net interest income of around INR 25,000 crores. So we have a clear strategy as far as the improvement of this net interest income is concerned, and we are very cognizant of the fact that we have to increase this net interest income in order to improve our overall operating profit in the bank so that the net interest margins also improve. So we have made a strategy as far as the interest income side is concerned, as I earlier said also, that we want to increase our MCLR advances number one. Number two, we want to increase our advances towards the mid-corporate through our emerging corporate credit branches. We also want to increase our advances in the RAM book, retail agriculture and MSME, where we feel the margins are much better. That is on the asset side. On the liability side, definitely, we want to increase our CASA balances and also our retail term deposit balances outstanding, where we feel that we'll be able to reduce our cost of deposits. And on the asset side, we want to increase our yield on advances. So both these strategies together, we are very confident that if we are able to increase our net interest income, in fact, we want to increase our interest income to such a level that the overall operating profit for the bank improves. So that is one part. The second part is with respect to the return of accounts. Yes, we are having a number as far as the written of book is concerned, we have done a recovery of nearly INR 2,500 crores in this financial year as far as the return of accounts are concerned in the bank. And this is a healthy number. And in the financial year FY '25-'27 also, we will be trying to achieve the similar run rate of around INR 2,500 crores to INR 3,000 crores of recovery from these written-off accounts.

What is the total...

Kindly introduce yourself.

My name is Ashok I'm from [indiscernible] Family Office. Sir, this is regarding Page #42 of our presentation. Sir, we have some of the subsidiary to create other income source. So if I see that we started DEMAT services in the year 1996 with NSDL and 1999 with CDSL. But we have never taken it as a serious business. So again, as a broking, we have not started our broking business like the other PSUs and everything. So similarly, in the insurance sector, we just hold 27%. So we have -- we are being a 120-year-old bank. So why we are lagging in this because our PSU brothers has done very well and also private sector has taken a very aggressive lead in this matter and also doing secured and creating other income portfolio which is very large. So what is going forward over next 5 years, what is the plan in this sector?

So as far as our subsidiaries and this wealth management income is concerned, where we have a very clear strategy for the next 5 years. And if you see the last 3 years also, as far as the income which is coming from the wealth management products of the bank, every year, the income -- noninterest income has been growing for the bank. Every year, it has been growing. So that much I can assure you. If you see the slide in the slide only that you have mentioned that this BOI merchant bankers, the merchant banking activity we are doing. And there also, we are scaling up. As far as your specific question with respect to the trading account is concerned, demat account is concerned, we already have 2 tie-ups with our partners, which we are -- through which we are offering 3-in-1 accounts, which is a trading account, a saving account and also the demat account that is already we have started and already the results with both the partners have started coming. Another important thing is with respect to our subsidiary, BOI Services Limited, which we have now rest at BOI SERVE, wherein we have started the feet on street and they are onboarding DSAs, which are coming from best of the private banks and other public sector banks, and we are selling our products. We have already started selling our loan products through that subsidiary. And we have sold a loan book -- the RAM book of nearly INR 35,000 crores through that subsidiary. This quarter, we are starting the liabilities product under the Project Uran. So feet on street, they will be selling the liabilities product, which is particularly CASA and retail term deposits. And also in the next quarter, they will be starting selling the wealth management products. So that subsidiary also has been totally made active and live as far as we are concerned, and we have a very strong engagement with that subsidiary and the next 5-year plan is very clear for that subsidiary. Apart from that, as you rightly said that even though we are having only 26%, 27% in our life insurance subsidiary, but we are one of the key players as far as the onboarding of the insurance, life insurance products are concerned from our branches. And good growth is happening in the SUD Life subsidiary as far as the sale of insurance is concerned. Mutual fund subsidiary, again, let me just tell you, share with you the numbers. 3 years ago, the mutual fund AUM somewhere around INR 3,000 crores to INR 400 crores, today it is at around INR 14,000 crores to INR 15,000 crores. That is the kind of growth the mutual fund AUM has taken place. And in the -- it is already in public domain that we have already taken one of the consultants as for a process adviser, and we want to have a partner over there, our international partner or a domestic partner, good sales AUM partner for our mutual fund. And once that onboarding happens, so you will be seeing much more incremental growth happening as far as the mutual fund also is concerned. So we have a very clear strategy for the next 5 years as far as these wealth management products are concerned because we are very clear that apart from the net interest income, we have to have a very good growth as far as the noninterest is concerned. Only then we'll be able to show better operating profit and finally, better net profit for the bank.

Can I take one online question and then I'll come to you. This gentleman is waiting since long. Ganesh, kindly put through Mr. Siddharth R from Systematix.

First, congrats to the whole team for a very fantastic quarter. And also congratulations to Mr. Karnatak for an extension in his term. Sir, first, a clarity on the NIM when you say 2.75% and 3% for domestic, is it the exit NIM that you are guiding? And also, what will it be driven by? Will it be driven by yield on advances or more by cost of deposits? This is first. Second is on your other income. What has driven the higher -- technically higher recoveries in this quarter, sequentially, this quarter, we have got INR 1,600 crores. And also what has driven the third-party sales? And third is on the credit cost. So this quarter, we have taken higher provision. I understand we have utilized maybe the higher recoveries that we have got. But how will our credit cost be in the ECL period? The impact you have given, but what will be the onetime impact we have, but what will be the incremental credit cost due to the ECL transition? And the question is also because there is sharp movement of -- between the SMAs for us because of the PSUs, but we have to take that credit cost because now in the ECL, it's required in Stage 2. So how will the credit cost move for us in the ECL period? These are my 3 questions.

Yes. Thank you. So as far as the NIM is concerned, see, as I already said that we are at 2.52% on the annualized basis and for the quarter, it is 2.58%. So we have given a guidance that it will be somewhere around 2.70% for the entire year. As far as the domestic is concerned, NIM is concerned, presently, we are at 2.78%. And as I said, for the year ended March '27, we will be trying to be as close at 2%, 3% as possible. So as far as the strategy for improving that is concerned, that is both sides strategy, as I explained earlier also, we want to increase our yield on advances, number one. And number two, we also want to reduce our cost of deposit so that the overall net interest income improves and the net interest margins for the bank improve. As far as the other income is concerned, so yes, other income, if you see in the other income, we have improved our other income by nearly 10% from INR 8,900 crores to INR 9,800 crores. And the delta is, say, around INR 900 crores to INR 1,000 crores. In that -- within that, as you rightly say that the recovery from written accounts, it has improved from INR 2,300 crores to INR 2,600 crores. And as I explained earlier in my question that this INR 2,600 crores, this run rate we want to continue. And this year, we are expecting that we should be somewhere between INR 2,500 crores to INR 3,000 crores as far as recovery in the return of accounts are concerned. So as far as the SMA is concerned, see, SMAs, if you see our slide, we have been improving our SMA numbers continuously over the last 3 years through our zonal collection centers that we have opened. And if you see in our slide also that the SMA numbers has now come down significantly. And I'll just show you the numbers. Yes. So it is now at INR 4,700 crores, the overall SMA is there, and it is only 0.62% of our total asset book, which was earlier in March '25 at 0.92%. So that has been the slide as far as the SMA number is concerned. And if you see further granularly over there, SMA-1 and 2 constitute nearly 66% and 34% is SMA-0. And it is well distributed between agriculture, retail and MSME and not much figure is there as far as the corporate book is concerned. In the SMA, it is only INR 3,600 crores, which is there apart from the overall INR 4,700 crores. Relation to the ECL is there, if you see directly the Stage 1, Stage 2 and Stage 3, which is there in the ECL framework, wherein Stage 1 is the standard book and the SMA-0, there you see that we have been able to reduce our overall SMA-0 numbers. That is one point. Second point is with respect to the Stage 2, wherein SMA-1 and 2 will be sitting, there also, if you see the overall SMA number is coming down. So this under the ECL guidelines also, the provisions numbers will be coming down. And with the kind of agility and robustness that our zonal collection centers are performing, we are very sure that we'll be able to further reduce the SMA number so that the overall impact of the ECL guidelines is reduced through the provisioning which are there. So as far as the credit cost is concerned and the impact of the ECL guidelines on the credit cost, yes, there will be some impact on the credit cost side because of the ECL guidelines. But we feel that it should not be more than 10 basis points on an annualized basis.

Sir, this is the last question coming up from this gentleman who has been waiting.

I'm [indiscernible] from Motilal Oswal. Sir, first of all, congratulations for your fabulous numbers. Sir, I have 2 questions. Sir, one is your CASA percentage, which has been at 37.64%, which is reduced by like from 40%, 41% in FY '25. So the question is, sir, are we -- with all your initiatives which you mentioned, are we able to achieve the numbers of 40%, 41% in coming quarters? And by when are we going to achieve that? Second question is, as you said, you are more focused on increasing your RMA book, right? So you have a very significant agriculture book of around INR 1,15,000 crores. Sir, with the monsoon forecast being lesser than expected, what impact will that have on the agriculture book? And how are we going to provision for it?

So as far as CASA is concerned, you rightly said that as in percentage terms, it is coming down, and we have now come down to 37.5% in the CASA percentage terms is concerned. But however, if you see the absolute numbers, the delta that we have created is more than INR 20,000 crores. So CASA number, we have increased by from INR 2,80,000 crores to more than INR 3 lakh crores, march '26, we have closed. So as I said that under our Project, Uran, our clear strategy is to increase our CASA in absolute terms. As I said that there has been a structural change in the deposits in the entire banking system, wherein more of the color of the deposit has changed and more of the resources are coming through the term deposits rather than from the CASA franchise, which is coming. Nonetheless, we are still very much confident that the delta that we will be creating in this financial year also as far as the CASA is concerned, we have set ourselves a target that we should be closing our CASA at somewhere around INR 3.30 lakh crores, which is an increase of around 10% in the CASA number in FY '27. So with that thing in mind, definitely, we feel that we'll be able to bring down the cost of deposits. However, having said that, because there will be increase in credit and increase in advances, and we said that we have given a guidance of 15% to 16% in growth in advances. So we'll have to meet those resources through deposits only. This will be the basic through which we will fund our credit growth, which will be there. And definitely, if the CASA growth will be not up to the mark to match the increase in credit, which is there, definitely, we'll be raising both retail term deposits and the bulk deposits, which are there. As far as the RAM agriculture is concerned, as you rightly said, there have been -- the monsoon will be at somewhere around 92% kind of thing, the reports which are coming. But if you see the pattern within the country now, not much of droughts are happening in India. There has been a very good canal network, which is there across all the states. Earlier, we used to see that when the monsoon used to go down, there used to be a drought-like situation in some of these states. But if you see in the last 4, 5 years, there has been some concern as far as the growth of plantation and other kinds of things is concerned on the agriculture side. But drought-like situations are not prevalent in the last 4, 5 years because of the good canal system, which has been developed across all the states in the country. So we are very much confident that the agricultural growth that we are showing. This year, we had agricultural growth of 17%. This financial year, we are also confident that we'll be able to show that number. And whatever the growth also you are seeing in the agriculture, a lot of it also is contributed by the gold loan factor, which is there. So gold loan also we are giving. There the yield is around 9% and hardly any NPA is there. Any asset quality issue is there in the gold loan. So that is one play which is there with us through which we are able to increase our agriculture book with a good yield on advances and also protecting the asset quality and which will finally not impact the overall situation wherein the drought or agriculture rainfall situation is there. So this is just one thing I would like to share. Apart from that, in agriculture, we are focusing not much on core agriculture now. We are targeting allied agriculture, which is a clear target that we have given to our zones and FGMs that we want to increase allied agriculture in agriculture rather than the core agriculture, which used to be there, the KCCs and the term loans, which we used to do to the farmers. The delta that we want to create is through the allied agriculture. So -- but with the kind of thing which is there, we are very confident that we'll be able to increase our agriculture book and also protect the asset quality. Yes. Gold loan advances are somewhere around INR 50,000 crores overall gold loan total. So the entire gold loan book is not classified in agriculture. Some of that is also classified under MSME because wherever the borrower is having Udyog Aadhar with them registration, they are classified under the MSME category also. So that is another thing which is there. So there, as I said that the yield is more than 9% and hardly any asset delinquency is there. The NPA is hardly INR 60 crores something in the entire agriculture book. And as per the SOP, we have in case of NPA within 90 days, it has to be sold. And unless and until it is a spurious gold, the entire recovery happens in such accounts. So agriculture -- gold loan within the agriculture you are asking? So around 40% -- 35% to 40%, it should be there.

Thank you. Thank you, gentlemen. Let us wrap up now. It's been a long time. Thank you very much, MD, sir, and all the executive directors present on the dais and thank you very much for all the analysts who are present here and also those who have joined online. I also want to thank the Concept PR team, the analyst who has taken care of the analyst meet, Ganesh and Gaurav for putting up a good show. And special thanks to bank's team from travel and hospitality, finance, IT and of course, publicity and PR. Thank you all. Good night.