Bank of Maharashtra (MAHABANK) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Bank of Maharashtra Q2 FY '27 Earnings Conference Call hosted by Systematix Group. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Siddharth Rajpurohit from Systematix Group. Thank you, and over to you, sir.

Good evening, everyone. Thank you for joining Bank of Maharashtra's Q2 FY '27 Post Results Earnings Call. From the management today, we have Mr. Nidhu Saxena, the MD and CEO of the bank. We thank the management for giving us the opportunity to host the call and congregate on the strong numbers. I hand over the call now to Mr. Saxena for his opening remarks. Thank you, and over to you, sir.

Thank you, and good evening to one and all, and thank you for joining this investor call. The business and the numbers for this quarter has been quite encouraging for the bank. We had set out the year with a set of guidance numbers across all metrics of growth, profitability, asset quality, capital adequacy and so on. And I'm happy to share that each one of those guidance numbers have been met, and this is getting consistently met also is one good feature. I will quickly take you through to the highlights, the business for this September '26 has grown by 25%, within which advances have grown at the rate of 30% Y-o-Y. A large contribution -- significant contribution has come from the IPO and minus the IPO, also the credit growth in the bank Y-o-Y has been healthy 23%. So all verticals of the RAM retail, agri, MSME have grown individually and have grown more than 20%. The large credit growth, which is seen is also Y-o-Y growth of 38%. So INR 36,000 crores of large credit has grown Y-o-Y. And as I just said, 50%, 18,000 of this has happened in the Gift City IBU branch of the bank. The rest, 18,000 has happened in the domestic large credit, which is again a healthy 19% growth. As against the domestic credit growth of 23%, the deposits have also grown healthy 22% Y-o-Y. So even if we exclude the FCNR B, the deposit growth has happened at the Y-o-Y rate of 19%. Within which CASA has grown in the bank at 12% Y-o-Y and bank has added in absolute terms INR 19,000 crores of CASA over the last FY. GNPA also has improved. It has reduced by 47 basis points and GNPA stands at 1.25%. Likewise, NNPA also registered a reduction by 6 basis points, and NPA for the bank is at 0.12%. Provision coverage ratio is at a healthy level of 98.53%. Stress in the loan book also has been well managed. It has also reduced overall, 167 bps year-on-year from 4.93% to 3.26%, within which the SMA 1 and 2 portfolio has also shown a reduction of 50 basis points and it stands at 1.37%. And we have seen the improvement in the stress levels across the sectors, retail, agriculture, MSME, every sector has registered improvement. Above INR 5 crores, the NPA -- the stress is near 0.13% and exclude 1 state account, it is only 0.11%, which also has improved 4 basis points. The cost of deposits and overall cost, we have been able to manage and maintain well. We have been exercising the various options of availing refinance, raising through infra bonds from time to time. Today, in the bank, we have an outstanding of INR 18,300 crores of refinance book, which is between 6% to 6.5%. Likewise, infra bond raises, which happened in the last FY. Outstanding is INR 2,400 crores. These have been also supporting the credit growth at reasonable, and able to give reasonable profitability levels to the bank. So cost of deposits also has reduced for the bank year-on-year by 4 basis points, stands at 4.38%. Likewise, cost of funds overall have reduction -- show a reduction of 25 basis points. It stands at 4.07%. So with slippages is also staying under check. Profitability for the bank has been good. Operating profit has shown a growth of 31% Y-o-Y, while the net profit has grown year-on-year, 41%. As a result of this, the ROE has shown a sharp improvement ROE has improved by 440 basis points and has reached 27%, 26.98 to be precise, NIM has improved by 12 basis points to 3.97%. And the ROA has improved by 20 basis points to 2.02%. The capital adequacy is also maintained at the healthy level and above our guidance number, CET1 is 15.61%, and CRAR stands at 18.51%. Bank is maintaining a good LCR. The LCR is standing at 123% and NSF are at 127%. So this is overall highlight from my side. I think we should take some questions from the investors.

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

The name of my company is Ajcon. Congratulations, Nidhu and the entire team of Bank of Maharashtra for yet another very good quarter for good of numbers, fantastic results. In fact, we have reached many of the milestones. The business for the first time, I think, has crossed INR 7 lakh crores, if I'm not wrong, credit is also more than INR 3 lakh crores. Your EPS for the first time has gone above 3, ROA is above 2 and many more such milestones and the reports which you have created in this quarter and the half year, congratulations for that, sir. Having said that I've got some couple of data points, some observations and some questions. Sir, on the provisioning side, there is a low provision for the -- I mean the provision for the standard asset and the restructured asset has gone up to INR 603 crores from INR 76 crores in the quarter. But at the same time, in the contingency side, which was for the COVID-19, we are gradually reducing our provision from INR 1,200 crores to now in 3, 4 quarters coming down to INR 510 crores. Coupled with that, the ECL provisioning, which is required to be done, all these 3 questions in as having only one answer from your side. What is our ECL preparedness? How much do we need to provide? And how are we prepared for it?

Thank you, Mr. Ajmera. I think have covered the top line also issue. Let me confirm that, yes, business for the bank crossed INR 7 lakh crores for the first time. coming to the second part, which is provisions. So I will just like to highlight that provisions for NPAs and provisions for standard, I'll give you the number the NPA provisions September '25 quarter last year, June '26, that is the Q1 of this FY. And September '26, the current quarter, we are discussing the number you must have seen reduced number. So 580 has come down to 120. So there are 2 broad reasons around this. One is that with the high provision coverage ratio, we are maintaining of 98.5% plus. Our incremental requirement that comes every quarter for providing for NPS is a very nominal amount. This particular quarter, also, we have experienced good recovery in the Q2. And even the upgradation number has been good. Yes, there is a support also from the some recoveries in the debt waiver has come because that book also was 100%, I mean, we were holding with 98.5% provision. We were holding -- it was almost 100% provided for book and whatever recovery has come also has aided towards that. So net, this is one reason that this provision for NPA requirement has got reduced, and this is how it is. Second, the standard provision book, if you see INR 158 crores was last year. This year was INR 603 crores. So this is on account of ECL provisioning that we have done of INR 500 crores. So that's how in the standard assets, you are seeing that provisioning has increased number has increased from INR 150 crores to INR 600 crores. And in terms of ECL provisioning requirements, we had our assessments done way back when this draft guidelines under discussion and INR 250 crores upfront front ending we had already done previously for ECL. This quarter, we have done INR 500 crores. Our total assessment was that INR 2,500 crores is our ECL provisioning to be done in 4 years. Yes, we have put some systems in place and validation is going on. maybe this number appears to even go down. But assuming INR 2,500 crores, today, with 250 plus INR 500 in this quarter, INR 750 crores of ECL provisioning that we have already done, this is covering more than 1-year requirement. So FY '27, '28, we have provided for in terms of ECL already by September '26. Going forward, we see no challenge in making the provisions.

Sir, the credit growth is also phenomenal -- and some part of it, the credit goes to IBU also. You said the large credit of INR 18,000 crores came from the IBU. So is it going to be -- and must be some credit growth might have come for the lending on the FCNR deposits, which you have collected through the IV, I think the credit must have gone. So do you think that this kind of credit growth will be maintained because your overall target for the year is much, much later than what you already achieved in this half year. So where do we -- like from the credit growth point, whether this momentum is going to be continued now when there is no opportunity for the FCNR that special vendor, which was opened. And Along with that, this recovery also from the written off account, which has been exceptionally high in this quarter, INR 737 crores as compared to INR 305 crores in the last quarter, whether that trend is also going to continuous ways to give you a color on the future profitability of the bank.

So Ajmera, let me take FCNR First, we had a mobilization of $820 million and $760 million was IB loan, where the leverage from the IBU is 560 million only. So INR 7, INR 8,000 crores of FCNR. And so this is what has actually gone into the IB overall book of INR 18,500 crores, INR 560 million of levering from the thing. So going forward, yes, this window is not there. But coming on the domestic side, I have the guidance number of 18%, and we are -- other than IO, we have grown 23%. So if you see individually, all verticals have grown at 20% plus. And even the large credit is showing a robust growth, it has grown Y-o-Y 19%. In terms of credit pipeline that I'm holding, currently, we have INR 23,000 crores of proposals in pipeline and up to March '27, we have estimated INR 10,000 crores out of this will be getting dispersed, sectors where we have taken exposure and where this proposal of INR 23,000 crores live are mostly infra within power around 18% infra-road HAM projects of NHAI and 12%, renewable energy, 10%; and metal and other space, 10% We are doing niche segments like data centers and other things, which are actually the growth opportunities available to banks. So this is now plus annually you might have recall, you can recall 200 branches annually, we are opening. So in the segment of retail and MSME business, fresh business is getting added to these branches as and when they are opening in the bank. In this half year, we have made 77 branches functional. So whatever branches these business branches are -- new branches are getting is also ultimately adding to the growth, both credit side, deposit side. So I don't see a challenge at all to maintain a pace above our guidance of 18% in credit in future also.

Sir, whether this drought situation, especially in Maharashtra, and we are predominantly present in Maharashtra. Has it -- I mean, it started showing some signs of I mean, getting the negative effect of it? And how do you see it is to be played out, whether still -- I mean, you see this 18% or 20% growth is not going to be dented or affected because of the broad prevailing drought situation in the -- especially in Maharashtra and in the whole major part of the country, sir?

So if you ask about current scenario, I -- in my opening remarks, has said that the stress levels have actually gone down, and the same has happened also in the agri book. So Agri book, the stress has improved. Stress level has gone down from -- by 35 bps to stand at 3.1 -- so currently, there is no stress as such, which is visible to us. Whatever growth has happened in the agriculture I would say a very substantial part of this is through agriculture gold loans. So we are very mindful of taking exposures in any segment. This agri gold loan is all backed by security. We don't foresee any issues around our gold loan growth in the bank. So that's how it is currently. But yes, with the El Nino talk around, we are mindful, we are monitoring. But as of now, as I said, the entire growth which has come in the bank is through secured gold loans, there is no anticipated stress that will build through the El Nino. But we are monitoring the situation closely.

Sir, my last question in this round is on our digital.

I'm sorry to interrupt you, sir.

Just last question. Just one question. On the cybersecurity front and the digital front, technology front. Now as you know, the a lot of things are happening, and especially everybody has to have become very, very conscious even though we were prepared for that. But what is the extra preparedness for it. And now with this DPP act also coming in and many of the new challenges are to be faced -- how are we prepared for that? Is there any extra budget which we are preparing -- I mean, kept for this? Or how are we going to deal with this kind of situations, which are happening around, sir, on the digital front.

So Ajmera, I think the question that you have raised is a very relevant one, but it is -- cannot be answered in a line or 2, there will be so many things that bank is doing, and doing in association with various entities to safeguard the bank, to safeguard the customers, to maintain the trust that the people have in the banking system as such. So there are various entities, regulators who are doing so many things around this. It's very difficult to answer. But I can tell you, very proactively, there is absolutely in terms of providing budgets in doing any in the cyber area, we have never -- we have been very upfront and proactive in taking whatever steps suggestions that are coming from the various entities, certain and all for '24, '25, we had provided a INR 900 crore budget for IT, where a large part is going towards the cyber. Because a lot of things in terms of hardware replacement, in terms of upgradation has already been achieved. In '25, '26, we have kept INR 985 crores. So major part is going there. we don't see budget as a constraint, first of all, and there is nothing as such not to do to safeguard the interest -- so this is how things are moving. But as I said, this is a very pertinent but very lenti answer is required to holistic give you

I'll take it offline. Sir, no problem will discuss. Thank you very much, sir, for giving this opportunity and all the very best of the bank. You have been doing a phenomenal job. I think this kind of growth is unheard. And in fact, one part, I mean, Bank of Maharashtra had achieved 26%, 27% and now coming in 29% and 25% of the business growth, crossing INR 70 crore. No more that the people used to have in mind a small bank or if they're saying the Bank of Maharashtra is fully ready to take off from here now. And the kind of growth which we are having it, we can see the INR 10 lakh crore bank very soon. Thank you. Thank you and all the best.

The next question is from the line of Parth from 360 One Capital.

Sir, what is the proportion of the EBLR book in the overall loan book?

So Mr. Parth, it is 47%, which is linked to the external benchmark.

Okay. And second question is our cost of deposits have increased sharply on a quarter-on-quarter basis. So what has actually happened here?

So if you see Y-o-Y basis, we have seen a reduction. But if you ask me, we have been very mindful of doing business and doing business profitably. We have been very consciously looking at alternate sources of raising our resources, whether it is through the refinance window, whether it is through raising intra bonds whether it is through capitalizing on our strong investor engagement and going for debt issuances, whether for the bank in its 92 years of lifetime. This was the first time that we took assessment, which is around INR 2 billion is what we had in mind is what we can have an appetite for raising through the RBI swap windows for OFCs and FCNRB and we decided to do around INR 1.5 crores. I can tell you that we did INR 1.65 billion putting FCNRB and OFC together. And there also, we are going to get the rate advantage in this scenario of interest rates going up, both domestic and global markets, I think the MTN program, where we rate it was the first ever foreign bond issuance for the bank. And we got 3x the issue size as subscription from the investors. And at a very good rate, it was very well timed. And this is a fixed component for the next 5 years for the bank. We have our calculations in place, some ballpark numbers as to what in terms of profitability is 1 initiative of fundraising through foreign bonds will lead to the bank. So those numbers also are there. And I think -- so the point is we have been very cautious if we have done a lot of FCNRB some high-cost bulk deposits, we have consciously allowed to leave the system and focus more on low-cost components of the deposits.

Okay. So from next quarter's perspective, should we expect the cost of deposits to inch up or stay at similar levels? Because next quarter, we'll also have some impact of the FCNRB deposits.

So FCNRB is actually fixed 6.51%. And if you ask me the CD 1-year, CD is 7.75% somewhere hovering even touching 7.9 or something, 1 year CD. So all these mobilizations, fundraising have been at a very good rate, 6.11% was my [ OFCB . ] So -- and it's a fixed 5-year fixed cost kind of a thing. So -- and yes, the focus will also always remain to see that we are able to attract core stable retail deposits into the bank where from time to time, if we have to offer attractive rates through some special schemes, we'll keep doing that. to maintain that. But then high-cost bulk deposit is not the preferred mode to raise resources. We have very consciously with this refinance that we took we have been able to see that our overall cost on Y-o-Y basis, gone down, actually, cost of funds has gone down by 25 bps and many such raises don't attract the CRR and SLR requirements, the PSL requirement. So they are actually beneficial in many ways to the bank. So the point is the growth -- top line growth, we are very careful, mindful that how it is impacting and whether the growth is happening in the bank and profitable growth is happening, that is a fair amount of importance. We always have our complete site over that part.

Sure, sir. And my last question, sir, this recovery from written-off accounts of around INR 200 crores. How did it impact the interest income line item?

So there is in recovery in write-offs. There is INR 125 -- in total recovery in write-offs, there is a good contribution, which has come from debt waiver also. And in case of debt waiver, we have around -- see INR 442 is the debt waiver we got in write-off recovery. So there was unapplied interest 2 to 3 -- so of 2, 3 bps, which has come as a contribution to our NIM. So this is what -- but to come -- to respond to your query regarding how we look at the write-off and write-off recovery going forward. So we have a book of almost INR 21,500 crores of write-off book. We have targeted annually for the next 4 to 5 years to recover something like 1,300 to 1,500 annually. Why this range because out of INR 21,000 crores, we have INR 8,000 crores, which is in NCLT. And out of INR 150 crores, 1 cases, 147 cases around are admitted already where this amount involved is INR 7,500 crores. So INR 21,000 minus INR 7,500 crores is the non-NCLT book where we are focusing also very hard to get recovery from the write-off. If I tell you the number our recovery of write-off, which was ranging from INR 600 crores to INR 700 crores, INR 800 crores annually for FY '22 to FY '24. It has been increased FY '25, INR 1,375 crores, almost doubling that FY '26, INR 1,423 crores. FY '27, we've already done INR 1,023 crores. But if you see the stock is still huge for us too. And this is how we are planning that annually for next 4, 5 years, we should be able to target and receive 1,300 to 1,500 annually. That's the target we have kept. We have 2 Board-approved special schemes where up to INR 1 crores in old accounts, we are taking a bank is consciously worked out a haircut looking into the underlying securities that bank hold. Looking in age of NPA and some other issues if there's no security around or we have auctioned for a number of times, but we are not disposing. So the metric gives the nondiscriminatory nondiscretionary to the field functionaries to go ahead and get recovery in these written-off accounts also. So that's how we are pursuing for going forward. And last 2 years, we have seen good outcome from our efforts in recovering in the write-off book. But as I said, despite that, we continue to hold a big gold mine, I would say, of INR 21,000 crores where we can keep targeting recovery. And annually, if anything, we are recovering in the write-off book is straightaway adding to our above-the-line OP number.

Sure, sir. Sir, can I ask one more last question, please?

Yes.

So now considering we are hearing about the drought situation in Maharashta and Karnataka, and so in case the state government announces for a restructuring, how does the debt favor them operate differently from a restructure. Can you just throw some light on the same?

So mostly what happens is whenever there is a drought-like situation, it is discussed also in the SLBC and restructuring plan gets approved, whereby we will restructure the accounts without the accounts getting downgrade. So this is how things will happen. I think the assessment is done at the SLBC level, and that's how the restructuring framework is approved. And any such activity does not let the account downgrade. So the way things El Nino will pan out in various parts of the country. I think this call will be taken. As of now, as I said, we are not experiencing any visible stress in the agriculture book. And since large part of growth that has happened in the last 1 or 2 years, contribution has come from the secured part of gold loans. Currently, there is no reason I see for us to worry, but we are closely watching and wherever the SLBC guidelines are going to come, where we have to allow restructuring, we will be proactively implementing those and going forward, implement those directions of the state.

The next question is from the line of Amar Sahinghani from ICICI Securities.

Sir, continuing the last questions on the previous participant, as you said, a large part of equity growth is done in the coal loans. Can you give out the agri goal number for the bank?

Yes. So 11,000 actually has grown year-on-year in the agriculture book, which is translating to 34%, out of which I think the number is INR 10,700 around this.

What is the number?

INR 18,600 crores. So this is outstanding. So growth, if you are saying -- so see, agri gold loan, INR 6,500 crores was the number in September '25, has grown to INR 18,600 crores in September '26. So it's INR 12,000 crores growth, which has come in agriculture gold loan year-on-year.

Right, sir. Also, sir, our retail gold book has declined quarter-on-quarter. Any comment on that?

So if you see the gold loan, there was certain tweak in the Reserve Bank of India guidelines last year, where in some segment of the gold was subject to conditions going to get qualified as SME. Some segment will go into the agri and the nonpriority gold loan will be under the retail category. So wherever after those guidelines have been introduced, wherever branches have been sourcing or even when the existing gold loan is repaid and the customer requires further extension through a fresh loan. And if the customer is eligible for MSME or for a agri, they are renewed accordingly. And since it's a PSL even in terms of our pricing strategy, we had kept the prices for these 3 segments of products. In fact, there was no MSME segmented product as such. But after the RBI guideline, we immediately introduced a new MSME gold loan product. So Agri will attract the lowest rate. MSME will be priced a little higher, 50 bps or so. And the nonpriority will be, again, charge the IS. So with the pricing strategy, even those who are eligible under retail, they've been availing and if they are eligible under MSME, if it's a shopkeeper, small trader and a [indiscernible] and he's been availing gold loan facility from the brand. And when the renewal comes, he or she has moved from the retail to the MSME book. So that's how retail has gone down and a lot of movement has happened interstate. They have not customers who have left the bank but they move from retail to other priority sector eligible buckets.

So sir, can you please give out the MSME gold outstanding book or total gold outstanding book for the quarter, so that would be helpful and comparable.

So we'll just read out the number.

Yes. So the total loan outstanding is INR 33,000 crores. And MSME gold loan outstanding lease around INR 2,000 crores.

Sir, second question, if you can also help me with the number on ECLGS disbursement that we have done a

If you have follow-up questions, please rejoin the queue. The next question is from the line of Sushil Choksey from Indus Equity Advisors.

Congratulation to Team Bank of Maharashtra for excellent performance to sustain this performance entire banking system and the global transforming. For Viksit Bharat, new businesses are emerging, whether it's EV vehicles, battery manufacturing, data center GPU financing, logistic plays, multiple plays. How are we hitting up to enhance our visibility on corporate business, even supply chain with multi and various other verticals being in heart of Puna, which is the second largest engineering center in the country. How is business outlook looking from this point of view in my basic questions.

Yes, sir. And very interesting, sir. In fact, where the economy is growing, where the country is growing, bank is very closely finding those and marking those as sectors, which -- where we are bullish to grow our exposure to. So with the aspiration of developed nation by 2047, we know that we have to be going countries to see a lot of infra upgradation. So whether it is sports, airports, roads, these are the sectors where there is an emphasis coming from the government also. And we are also picked up wherever this road projects under the HAM model from the mouth or the NHAI, we have extensively funded these projects. We have upped our ticket size also, appetite also and we've been doing data centers. In fact, I would not name the account, but the first of the biggest data center in Navi Mumbai is also funded by us. along with [indiscernible] So we have been joining hands with these entities. The -- like [indiscernible] where we have participated in large transactions also. So Infra within infra road power transmission, renewable energy, I think almost INR 140 crores, INR 15,000 crores has been funded in the last 3 quarters. in the renewable energy. And this is where we are seeing that there is a growth emphasis and opportunities, new opportunities coming in. Support from the government is coming in and we are also marking these sectors as bullish for us to grow. In fact, my current pipeline, which is almost INR 23,000 crores of this corporate book we have share of almost 18% from Power Intra, 12% from the road, 10% from the renewable energy, 10% from the metals and the allied sectors. So this is where new opportunities are coming, and this is how we are aligning ourselves participating in the exit Viksit Bharat vision of the country.

Sir, to sum up your reply, do I assume that you're not averse to a large equity backer and a cash flow-driven new businesses to be supported. And second thing to achieve the enhanced performance levels, how is bank supporting the HR, training, digitization, new initiative on digital? Because the new businesses and emerging growth needs a lot of support for good talent within the bank to understand the businesses.

Sure. I think a very valid point, sir, that you have raised, and bank has to gear up itself for facing the new opportunities. And if the skill sets internally will take time to groom and train and then you are able to handle new businesses, or internally, any skill sets which are found not present but bank requests. We have gone for massive recruitment also. And the idea is the assurance functions that are managing of risk, including the technology risk that we will encounter in when we are growing the IBU bank has been doing for 90 years, domestic business. But here, we went into a different the, I would say, domain, we are not a lot of skill sets for there. But -- so we went in for recruiting externally and taking -- onboarding the best talent to manage these elements. In terms of branch openings since we are also aggressively opening branches in the potential growth centers of the country to support this massive branch expansion at entry-level positions. We also have been going for large-scale recruitments. If I have to give you a number, 2 years back, we were 13,000 in terms of the employee strength. But for this manning the initial positions the new branches . But now the number is standing at INR 17,500. And I have not been worried about if the cost to income has to go up it's fine because we need good people, good talent and the right number to take this growth. And as I said, assurance, the regulator comfort with the bank, how we are growing in the IB or elsewhere in the domestic side, that has to be properly assessed, managed because story is a sustainable only if it has been done in a very compliant manner. So we have gone for a lot of recruitment in these kind of specialized skill sets treasury, IBU and IT as well.

If I understand instead of underwriting large projects which we can't because of the size of the bank, you have a good understanding with organization like Natrol, which you indicated an equal organization who are underwriting such projects. So your risk is divided in the of your garnering the business. Am I correct to understand?

Yes, sir. Just to add -- sorry, I will just add on that. And we have increase our appetite also if we have gone for funding projects, large projects of national importance, where we see support coming from the state, from the center, from the World Bank, from entities like Navat. They're also funding and where Navid is there, and we have -- we take the advantage of being the sole commercial banker. And when that happens, we are able to manage the entire escrow and cash flows of those projects, which also give me some business on the liability side also. So this is how we participate with term lending institutions where we wish to take the entire working capital opportunity, and also managing the escrow for that large projects where we get some liability side business also for the bank.

The next question is from the line of Sameer Bhise from Diamond Asia.

Congrats on a strong set of numbers, sir. Just wanted to understand on the treatment of the like recovery from return of assets which probably aided by the Maharashtra loan waiver recovery. You indicated that the impact on the interest line is around INR 125 crores. But if I look at the yield on advances, it jumped like 30 basis points on a sequential basis. So what explains such a large improvement in a quarter? So some clarity there would help. Is there any other like accounts which were upgraded to standard and that has helped the interest line here? Or if you could provide some details, that would be helpful.

So Sameer, first of all, debt favor, there is an eligible around INR 3,500 crores of accounts which are eligible. Our estimates and calculations are that out of which government receivable is around INR 2,750 crores. And in the above 2 lakh category, there is a requirement from farmer to first upfront common deposit then the debt waiver amount is passed on to that account. So around INR 260 crores like that. And in this entire 3,500 eligible portfolio, tentatively eligible portfolio, we have a haircut of INR 500 crores as against which our provisions that we are holding is INR 1,700 crores. So actually, in a practical sense, there is no haircut at all. to us because we have already provided this element. So up to 30th September, out of eligible 3,500 and 2,700 government receivables, we have received around INR 1,200 crores, wherein the write-off recovery is INR 422 crores. The recovery in the NPA side has been INR 465 crores. Rest has gone to overdue accounts. So this is how the breakup is around 50% has been concluded, I would say. The rest 50 will be seen in due course. But we are not counting on this because these are not effort of our branches and verticals. We have already a target approach to the write-off book that we are holding. I had just explained a little while ago on that. And through our 2 targeted schemes of up to INR 1 crore and up from INR 1 crores to INR 50 crores, we try to resolve other than NCLT cases in the write-off in a better, in a bigger way. Last 2 years, recovery numbers have been quite encouraging. And this trend, we will keep maintaining going forward as well. So any recovery, which is coming is adding to the OP number. And we see this as a big gold mine with us. And if we just attend to this in a focused manner, annually INR 1,200 to INR 1,500 crore -- INR 1,300 crores to INR 1,500 is what we have our number in mind, which we'll keep doing for the next 4 to 5 years, I would say.

Excellent, sir. Appreciate the clarification just reconfirming. So there is some element from this, which has helped the yield uptick. Is that a fair conclusion?