Central Bank of India (CENTRALBK) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Central Bank of India Q1 FY '24 Earnings Conference Call hosted by Antique Stock Broking Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Raju Barnawal. Thank you, and over to you, sir.

Thank you, Aman, and good afternoon, everyone. On behalf of Antique Stockbroking Limited, I welcome you all to the Central Bank of India Q1 FY '24 Earnings Conference Call. And I thank the management for providing me the opportunity to host the call. From the senior management side today, we have with us Mr. M.V. Rao, MD and CEO; Mr. Vivek Wahi, Executive Director; Mr. M.V. Murali Krishna, Executive Director; and Mr. Mukul Dandige, Chief Financial Officer. Now without further delay, I hand over the call to M.V. sir for his opening remarks, post which we will have a Q&A session. Thank you, and over to you, sir.

Yes. Thank you, and good afternoon to all the participants. And let me thank wholeheartedly for your time investing in our analysis part. And with this, I will give the brief highlights of our performance for this June quarter, and detailed financial presentation will be done by our CFO. And coming to the highlights, let me share the happy news that this is the ninth straight quarter where bank has reported a net profit, and this net profit has jumped by 77.87%. Now it stands at INR 418 crores compared with June '22 amount of INR 235 crores. And coming to the gross NPA, which was 14.90%. Now it has come down to 4.95%. So net NPA stands at 1.75%. And then provision coverage ratio now stands at 92.23, and operating profit grew by 50.53% now stands at INR 1,838 crores. Net interest income, NII, increased by 48%, now at INR 3,176 crores. NIM improved to 3.62%, registering a growth of 74 bps. And return on assets, there is an improvement of 16 basis points, now stands at 0.43%. And return on equity is 1.63% vis-à-vis 0.98% of financial year '22. And CRAR, our – i.e., capital to asset ratio has improved to 14.42%, of which Tier 1 is 12.13%. Coming to the other ratios, like yield on advances, now it stands at 8.29%, which is 195 basis points higher than the previous June '22, which was at 6.34%. And the yield on investments is at 6.50%, which is 37 basis points more than the previous June '22. Cost of funds slightly increased because of the increase in the rate of interest in all the deposits. Now it stands at 4.42%. Cost of deposit is okay. Coming to the NIM. Now it stands at 3.62%, which is 74 basis points more than the June '22, which was at 2.88%. And coming to the credit cost, now it stands at 0.45%. And in the previous June '22, it was 1.78%. Coming to the ROA, already I told you, it is at 0.43%. These are all the financial highlights, and regarding the detail, so now we have uploaded our presentation in the website. Probably, you must have gone through. But anyhow, our CFO will explain with a little bit details. Thank you.

Thank you, sir. So the total interest income has improved by 30.75% on a Y-o-Y basis, and it stands at INR 7,225 crores. The total interest expenses have gone up by 19.65% at INR 4,049 crores. And in net interest income, as M.V. sir said, it has registered an increase of 48.27%, and it stands at INR 3,176 crores now. The operating profit, which is a significant part, has improved by 50.53%, and it stands at INR 1,838 crores. And the net profit improved by INR 77.87 crores (sic) [ 77.87% ], and it stands at INR 418 crores as compared to INR 235 crores for the last quarter of the '22 year. The fee-based income has remained more or less the same at INR 401 crores compared to INR 406 crores for the previous quarter. The major part of fee-based income is our -- I mean, service charges, which is at INR 276 crores, the treasury income, which is at INR 282 crores. Then the expenses part, if we come, the interest expenses have moved to INR 4,049 crores, registering an increase of 19.65%. And the interest paid on deposits, which is the major component, has registered an increase of 20.07%, and it is at INR 3,930 crores. The operating expenses have increased by 31.11% at INR 2,297 crores. Major portion of that is the staff cost, which is now at INR 1,490 crores, registering an increase of 31.98%. As far as the provisions and contingencies is concerned, the provision made for NPAs is INR 244 crores, which is lower by 70.39% on Y-o-Y basis. The standard asset provision has increased to INR 632 crores from a write-back of INR 38 crores. The tax outflow has increased to INR 607 crores compared to INR 73 crores during the same period last financial year. So the total provisions are at INR 1,420 crores. The asset quality, as I mentioned, the gross NPA has moved from 14.90% to 4.95%, and the net NPA has moved from 3.93% to 1.75%. In absolute terms, also the net NPA amount has come down from INR 6,785 crores to INR 3,718 crores. If we see the sector-wise NPA, there also, there is substantial improvement during this quarter. And the net NPA in total net NPA is 1.75%, with retail at 0.74%. Agriculture & Allied at 4.58%, MSME at 3.13% and the corporate and others at 0.38%. The capital adequacy ratio is at 14.42% compared to 13.33% in June '22, wherein the CET has improved from 11.41% to 12.13% now. And similarly, the leverage ratio has improved from 4.32% to 4.94%. This is after reckoning the net present value of the recapitalization bonds with the government of India has issued. Thereafter, the business performance that we see -- the special mention accounts, if we see, the above INR 5 crores book, if we see the outstanding was at INR 1,200 crores in June '22, that has gone up to INR 2,750 crores in June '23 because of 1 major account under corporate category, where it has come under stress. Thereafter, if we see the business performance, our total business has improved by 8.55% and stands at INR 5,83,261 crores. The deposits have shown an improvement of 6.05% and stands INR 3,63,398 crores. CASA grew at 3.17% and has crossed INR 1,80,000 crores mark. And the total advances growth was 12.95%, and the total advances stand at INR 2,19,863 crores. RAM, which constitutes almost 66% of our total advances, has grown by 13.15%, and it stands at INR 1,44,477 crores. Deposits, within deposits, the total constitution currently has slightly de-grown by 2.76%. Savings has grown by 3.81%, and the core time deposits have grown by 9.07%. The retail, which is one of the focus areas of the bank, has grown at 17.11%. MSME has grown at 15.46%, and agriculture has grown at 5.51%. So that comprises -- that constitutes the total growth in advances at 12.95%. The credit risk-weighted assets also have remained more or less the same, and we continue to be under 65% of credit risk-weighted assets-to-total gross advances ratio. The bank has got a very diversified loan book with, I mean, risk spread across various sectors, housing loan, auto, personal loan and education loan, comprising the total retail, I mean, book of INR 63,641 crores. Agriculture comprises INR 40,812 crores, 19% of the book. MSME is INR 40,024, which is 18% of the book. And corporate credit is INR 75,386 crores, which is roughly about 34% of the total book. The total composition of the retail book is home loan constitutes almost 62% of our total retail portfolio. And the growth in home loan was 24.37%. Auto loan is roughly 5% of the total loan book. The growth was 2.65%. Education loan, we have done a lot of education loan for the elite institutions of IITs and IIMs, and the growth there was 8.04%. The personal loan segment, because of a very low base, has shown a good improvement now at 26.70%, and it constitutes only 5.96% of the total retail advances. Rated standard advances as the bank has got a policy of -- I mean because of the advantage in CASA that we are enjoying. So we have that luxury of getting good rated corporate accounts. So we have continued that journey, and AAA, AA and A-rated advances have shown an increase in the total rated advances book. Out of INR 78,094 crores worth of eligible accounts and retail accounts, INR 66,423 crores comprises of BBB and above [ record ]. The sanctions and disbursements under normal and also full lending have shown a very good uptick. And our co-lending group, where we had the first-mover advantage, we still continue to hold on to that advantage. And the co-lending book has touched INR 7,178.50 crores as of 30th June of 2023. We have achieved all the mandated targets under the priority sector. And not only achieved, we have surpassed those targets. As far as the other important ratios are concerned, the provision coverage ratio is at 92.23%. Our net interest margin, as M.V. sir has told, it is at 3.62% for the current financial year -- this current quarter. So those were the other highlights of our performance. Now I can request for any of the questions. We are open for question -- yes, investment book, because it comprises almost INR 1,43,500 crores of our book. So investment book has remained almost same, but it is very, very well spread out, and government securities are at INR 1,06,125 crores. The debentures and bonds are at INR 31,009 crores, and the others are at INR 2,819 crores. If we see the yield on investment has shown an uptick at 6.50%. And the yield on investment, if we include the trading profit, it has crossed 6.81%, all this keeping the M duration under check at 1.93%, whereas the 10-year benchmark is at 7.11%.

Should we open the line for Q&A, sir?

One second. I'll also tell you about the distribution across HTM, AFS and HFT of the treasury book. So under HTM, we have almost 74.05% of the total book at INR 1,04,712 crores. AFS is INR 36,431 crores, at 25.76%. And held for trading is only INR 261 crores. This was June '22, vis-à-vis if we see now in June '23, out of INR 1,43,500 crores, the HTM book is INR 1,06,097 crores, which is almost 74%. AFS book is 25.73% at INR 36,924 crores. And HFT is INR 479 crores, which is 0.33% only. The modified duration, if you see during this financial -- I mean comparable period, now that modified duration stands at 1.93. And the modified duration only for the SLR portfolio is also at 1.62% only. So that is all I have to say. Now we are open for any questions that analysts may be having. Thank you.

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

Before I start, let me congratulate Mr. Mukul Dandige for having his name having been cleared to be appointed as the Executive Director, our compliments to you, sir. And compliments to Mr. Rao and the entire team for a very good set of numbers. If you compare this number with the corresponding figures because in last -- even 1 year also, the bank has really performed very well. Having said that, on this particular quarter on the June quarter, sir, I have got certain observations and some questions and some few clarifications. One is that, that our -- we have done a major write-off in this quarter, in fact, of a huge amount of almost about INR 8,000 crores as against INR 9,500 crores of the entire year last year. So what was the strategy and the -- I mean, what is the planning went behind it? And what is the reason? Of course, it's a very good thing that we have come -- our gross NPA has come below 5% for the first time for many years. Secondly, on net advances, I'm talking mainly on the quarter sequential, has gone up to INR 2,12,690 crores against INR 2,02,980 crores. So about -- almost about INR 10,000 or INR 9,500 crores increase, increment in the net advances. Where has this come from, I mean, this sector? And again, if you can give some color on that. And third thing is on the HTM book for this quarter. I think the book has gone a little bit deteriorated, if you compare with the last quarter. Above INR 5 crores, it has gone up to INR 2,750. And in fact, SMA 2 has gone up to INR 180 crores against INR 40 crores only. Similarly, below INR 5 crores, it has gone to INR 3,581 crores against only INR 267 crores. And if you check the -- here also the SMA 2, I'm talking about mainly. And even SMA 0, SMA 1, SMA 1, of course, has come down, but SMA 0 and SMA 2 and overall. So what do you read in it? I mean are there more delinquencies? And what is the future? I mean in the coming quarter, what are we going to see? Are we going to see some pressure on that? And other one is on the income front. We have done well on the profit before tax, [ INR 1,025 crores ] as compared to [ INR 930 crores ] in the last quarter. But because of the higher tax provision of INR 606 crores against INR 332 crore, so this INR 606 crores on a profit of -- I mean is there any other element other than the direct tax and whether the tax is stable or the DTAs -- all those adjustments are taking care. So net amount payable is maybe less or something. So on this tax front, if you can just highlight -- I have got a couple of more questions also on the investment book, but then I'll come later once you please give the answers to these questions.

Mukul can give the clarity on the tax issue.

Tax part, sir, I can clear. See, if you see, sir, the provisions majorly have gone up on standard assets, where I do not create any DTA. So because of that, the tax outflow has been there. So that is why it appears that the effective tax rate is almost like 69%. So because standard asset also, I have to create -- I mean, tax outlook will be there at [ 34.599% ].

INR 632 crores the provision we had on the standard assets?

Right. Standard asset, [indiscernible] provision [indiscernible], maybe we do not create any DTA.

Yes, correct. I understand. Right, sir.

And Ajmera sir, regarding the SMA accounts, your observation was very much in the right perspective. Just so I would like to give a clarification. This is the bank where we give the entire SMA book that compare, that gives above INR 5 crores and below INR 5 crores put together. It is not just above INR 5 crores we give. It is the entire SMA book we provide to all our investors because to maintain the transparency and to have a clear insight of the SMA book. Having said that, regarding the above INR 5 crores, there is an increase that you -- what you observed. It is just because of one big account of the aviation industry whereas coming to the SME zero.

GoAir?

I do not want to give the name, but what you are saying must be in a similar line, okay? Because of 1 account that has gone up above INR 5 crores, so we have enough buffers in that, which we have given to stock exchanges when this item came up in the newspaper just 1.5, 2 months back. And coming to the up to INR 5 crores, there is an increase. In that increase also when we have analyzed, the majority is from the GECL book. Actually, when we have seen the GECL, total sanctions, what we have in the GECL is around INR 6,900 crores. And right now, outstanding is only INR 2,932 crores, in which total SMA book in this GECL is [ INR 1,467 crores ]. So this is the actual, SMA granularity spurt where that spurt is there in the up to INR 5 crores bracket. This is the SMA analysis. And to give the conference to all the participants here, let me make it clear that our slippage ratio is 0.53, and going forward also, we have a full grip on the regularization of these accounts. Even if something extreme happens because the GECL book is completely protected in terms of the coverage -- guarantee coverage that is available. But this is not the point for complacency for the bank, but recovery efforts will continue. And our endeavor at that point of time is to ensure that these units start working and they continue to work. If something happens, it comes into NPA, our recovery measures will continue. This is a limited submission. If something extra details required, we are ready to provide. Thank you.

Sir, on the credit, the net advances increased to -- by INR 9,706 crores. That was my first question. What is the component of the retail in the segment?

As we said, retail advances, if you see retail, there is a growth of 17.11%. MSME, there is a growth of 15.46%. And agriculture, there is a growth of 5.51%. Corporate has grown by 12.58%.

Talking only for this quarter, sir. You mentioned both, which is INR 2,12,690 crores net advances versus INR 2,02,984 crores. And then [ INR 6 crores ], where has it come from these segments and where?

See, net advances basically [Foreign Language]. So because of the technical write-off also, there will be a -- so because the provision held earlier quarter was comparatively higher. So the net advance was comparatively lower. Now this time around because of this technical write-off of INR 7804 crores, the net advances have increased.

You want the details of this [indiscernible].

No. What point I'm deriving is that in this quarter, the advances then indeed is real advance, real credit is mute, maybe 0.5% or 0.6%, isn't it?

No, it is reversed. Actually, whatever the increase that you are seeing from March to June and the technical write-off also to that, the actual increase in advances will cross to 16%, 16% to 17%.

So that's what only I'm saying, sir, that if there is a real credit in this quarter, where does it come from?

You want retail, how much disbursements and sanctions in this quarter? Yes, we will give you the details.

Because it is net to net.

Yes, we understand.

The growth, I can understand. It is because of the technical write-off, the -- anyway, sir, I will pass this question. We will -- I'll take it offline. Then my question is on, sir -- another one is on co-lending. Co-lending, you have performed very well, and our book is now more than INR 7,700 crores. Can you give some color on that, sir? What kind of yield are we getting? What is the slippage or NPA situation there? Is there any particular problem in some of the accounts or some segments?

Let me tell you, sir, in co-lending, we have a total outstanding of INR 7,178 crores. In this, SMA is around INR 218 crores. And actual NPA, what has [ slipped ] is INR 2.79 crores. It's all -- it comes into decimal totally. I cannot put it in percentage because out of INR 7,178 crores, it is only a fraction that has gone into the NPA and a very small amount, less than 1%, 1.5% will be under total SMA.

That is greatly commendable, sir. What is...

Mr. Ajmera, sorry to interrupt you. May I request you to join the queue for any follow-ups as we have several participants waiting for their turn. The next question is from the line of Sushil Choksey from Indus Equity Advisors.

Sir, congratulations to Central Bank team for a very sustainable result and very growth-oriented outlook for the year on the guidance side. Sir, my first question, I'll take it from Mr. Ajmera, where he left. You've done remarkably well where co-lending is concerned on INR 7,000 crores. Can you just break up what sectors? Is it more on housing or MSME? Or what is it, starting with...

Maximum is in housing. And in that, it constitutes around INR 4,600 crores. And followed by the MSME, it is INR 2,562 crores.

So seeing our book at INR 39,000 crores on housing currently and where our MCLR stands, do you foresee that our net advances on the annual basis in FY '24, almost 25% of our advances or almost nearing 27% to 30% would be housing loans in the book?

Yes, it should range in a similar way. See, one thing, sir, what we are doing here is consciously, we are maintaining the balance of 65-35. I always -- I'm explaining this 65-35 part there. Even in the 65 RAM segment, retail, agriculture, MSME, almost it contributes 30%, another 30% remaining is 40%. So in that similar proportion, whatever the disbursement we are making, we are consciously seeing that growth should be in such a way that this broader ratio should not get disturbed. In that way, we are acting. And coming to the nitty-gritties of exact housing, your observation will be right that we will be reaching a growth of 25% to 27% in housing.

My next question is more on treasury outlook Mr. Wahi last year had forecasted very well. And we were the first of the block among all the banks, whether it was private or public on forecasting. What's the outlook of the bank and Mr. Wahi on the quarter and the year to come by on treasury?

See, the treasury forecast, more or less, continues to hold what I had expressed in the quarter of March. There could be a miniscule rate hike possible in Indian [ tax ]. In the U.S. economy, of course, we are eyeing at least 1 or 2 hikes, but almost Indian bond market again 7.25% continues to be a top-ish level. Presently, it is [ 7.10% ]. So from Q4 or now, of course, it is a dynamic situation. From Q4, we are seeing some a reduction in the duration as well as we also -- that is why we are building a little bit on our duration book also. So this is our forecast, and we are still holding on to that.

Sir, a couple of questions I'm combining. One is, what is outstanding sanction limit? Second thing, what's the outlook on subsidiaries? I see a great profit achieved in all the Gramin banks and some of the subsidiaries. And third is, do you estimate our advances growth much higher than the system? Because based on our CASA matching advances, we have much higher and better potential on a sustainable CASA to garner at least retail advance is higher than the system.

Sir, as far as growth in advances, we will be very, very conscious. We will never put the accelerate around that level be aggressive. Having said that, since our CD ratio is 60, and to achieve a reasonable bottom line, we should reach at 70, but whatever forecast we have given for the March '24, we'll be reaching around 66% to 67%. So in a similar way, our activity will be there.

But will it led by retail or it will be...

65-35, that's what I am saying.

I see you'll maintain the ratio.

Bigger picture always remains the same on the credit book. So whatever the percentage that is required, accordingly, we will tweak, and we will accelerate our activities in that particular direction.

The brand Central Bank is attracting a lot on RAM and specifically on retail and including co-lending. So that was the question pertaining. So before, too many questions come on the airline account. How much of provision and assets we have as security? I understand that there is not going to be any liability on the bank where this account on provisions are -- I mean provision may be required, but NPA is not likely to happen in absolute terms.

See, in absolute terms, almost we are holding 67% of the provision. So we are not much worried on this account because we have already built up the enough buffer for the extreme scenario.

But is my understanding right that we hold sufficient assets where other than the airline in terms of guarantee, personal guarantee and others to back the loan program, which we have originated for the...

Yes, I think in the entire industry, this is the account where we have good collaterals.

Sir, on the subsidiary, you didn't answer the profitability as well.

Just a minute. Both are profit making. Both the RRBs are profit making. What is that specifically you want on the RRBs?

Is the profit sustainable because that can add to a part [indiscernible].

Yes, it is sustainable because these 2 RRBs already, they have presented to a 3-year road map for their turnaround. And already 1 year is over, and they are on the same track. And wherever that is required, our bank is also providing hand holding for them. So they are on track, and they are showing the profits. And whatever the liabilities that were there regarding the pension liabilities as per the Supreme Court, that is also fully provided for. Now there is no amortization there anything in that book.

Our share of profit based on the numbers provided is sustainable for the year. That's what you assume based on the economy.

Yes, yes. Correct.

Sir, my last question on the government holding, I think we have reached the stage that we may be taking a little positive flight on the -- much faster than the system. What is your outlook on the holding pattern?

That is -- let me not divulge the things which are right now under discussion with the government. Let us wait for some more time.

Mr. Choksey, may I request you join the queue for any follow-up as there are several participants waiting for their turn. The next question is from the line of Drashti from Thinqwise Wealth Managers. Drashti, your line is unmuted. May I request you to please proceed with the question? Please unmute your line, Drashti ? It seems there is no response from the current participant. And hence, we'll move to the next question. That is from the line of Akash Jain from Ajcon Global Services Limited.

Congratulations, sir, on a good set of numbers. My question pertains on the outlook on credit cost. What is the outlook for the credit cost for FY '24? And what is the recovery target from written-off accounts?

As far as the credit cost for the FY '24 is below 1%. That is the guidance we have given, and we will continue to hold on to that.

Okay. And with cost-to-income ratio also going down, right now, the ROE is at a subdued level. So what is the expectation in terms of improvement in ROE?

See, the ROE last time -- last financial year, the ROE was at 6.42%, right? So we expect that this time around, it should be in the range of 7% to 8%, minimum.

Okay. And your target for recovery from written-off accounts?

See, written-off accounts, let me tell you, major chunk of written-off that is what I'm saying is that technical write-off, it is not the regular write-off. Regular write-off, it was really only a miniscule part that comes and whereas in the technical write-off, unless until there is some resolutions, whether if accounts are taken by the NARCL or some resolution happens in the NCLT, then we will have some kind of positive movement on the -- in the recovery. As far as March '23, earlier, we had INR 1,200 crores in this segment. Let us wait for the developments, what is going to happen because up to in the June quarter, we had only INR 190 crores only till now. Unless until major change -- major accounts are -- resolution happens, so we can't expect anything in the [ TW ] accounts.

[Operator Instructions] Next question is a follow-up question from the line of Ashok Ajmera from Ajcon Global Services.

Yes, sir. Sir, a little more dwelling on that airline account, on the GoAir account only. So I believe that our total exposure, including fund based, nonfund-based altogether is around in the range of around INR 2,000 crores. Now our provisions are also you said it sufficiently provided for 60%, 65%. But what is my question is that provision is a one thing, I mean, which is an accounting thing and -- but actually, if something goes wrong, how much out of this INR 2,000 crores our bank will be -- because Bank of Baroda is also there. They also got substantial exposure, little lesser than us.

Let me give you the figures. It is almost INR 1,930 crores, that is the total amount exposure, of which almost INR 620 crores is guaranteed by the government on the GECL. So our actual exposure comes to INR 1,400, and in which already we are holding around INR 800 crores provision and whatever the collaterals we'll have, we are sufficiently secured. And we are not seeing any type of haircut or loss even in the extreme situation. Having said this, let us be aware that this company is admitted under Section 10 of the IBC, not for the insolvency or bankruptcy purpose. It is as to preserve and then to take up the operations once again. So in this direction, it got admitted and then necessary inspection that is also happening from the [ DDCA ]. And there is some positive movement in the arbitration, final arbitration at the Singapore arbitration also. So in all possibility, we are optimistic as far as this particular company activities are concerned.

Thanks a lot, sir, for giving a great insight. In fact, that gives a lot of comfort, and you are always very transparent and because this was one major account which suddenly came up like otherwise, even our profitability and bottom line also would have been much better than -- because of this provision, it has affected the basic target, which we were making, not you. And anyway, my second, which I couldn't ask in the last time, is on the overall treasury. Of course, a little bit explanation has been given about the treasury book and the modified duration period. But just going forward, with this I think yield is around 7.11%. And our modified duration is 1.93 or 1.75 in some -- they're saying that we have our compatible AFS book and a very small book for the sale. So what is the future outlook on treasury now going forward? Because our rates are almost stable here. In the U.S., still some pain is there. So considering that...

Let me reiterate our philosophy for our treasury is very simple. When we have seen our credit book and investment book, the principle on which we are operating is let us not have any losses from the treasury book. And we don't expect the profits also. We expect only a reasonable return for the amount, what is being invested in my investment book. For that only, we took a very drastic decision in the previous year so that we could bring this modified duration almost from 6.5 to 1.9 now and then P.V.01, which was hovering around 17, to the existing 5. So this is the principle on which we operate. We do not want to get hit because of any circumstances in the money market or in the broader macroeconomic circumstances. At the same time, we expect a reasonable return from our investment in the investment on which we operate.

No, that's a very good -- during especially in these times, it's a very good strategy which we are adopting, and of course, even the treasury income is also quarter-on-quarter becoming good only as against INR 128 crores beside treasury income of INR 282 crores. So definitely and thanks for giving your perspective on that. And having said that, sir, I just want to know the overall restructured book, including the GECL. And how much percentage as per our experience, we feel or we think can be slipped?

See, total restructured book, what we have is INR 6,400 crores, of which standard restructured book is INR 4,400. Standard [indiscernible] is [ INR 4,447 crores ]. And in this, what will be the slippage as you are concerned? We do not have much bifurcated issues, except we capture them under the SMA accounts only because in this SMA, we have a restructured book stressed accounts and also GECL stressed accounts also. So the SMA slide will give you the right picture rather than the slide if you see of the restructured book or the GECL book. Because these are all the stand-alone slide, it is given just for the information of further analysis.

So this SMA 0 above INR 5 crores, INR 1,773 crores versus INR 253 crores. So out of that INR 1,773 crores, how much is that airline? This quarter, it is around about INR 500 crores, INR 700 crores, INR 1,000 crores. How much is SMA 0 because I believe this airline account is only in SMA 0 only?

It is almost INR 1,300 crores airlines, out of INR 1,773 crores, yes.

Do you think now it will slip to SMA 1 and then SMA 2?

Yes, yes, yes. See, in the March quarter itself, we have cushioned -- foreseeing some type of stress in this.

[Operator Instructions] The next question is from the line of [ Narendra ] from RoboCapital.

Congratulations on a good set of numbers. I just wondered -- I wanted to know if you could shed some light on the loan book growth for the year FY '24 and also NIM targets that you might have for the whole year.

For the credit guidance, what we have given is 14% for the '23, '24, and our -- definitely, we will be reaching that. That, you can take it as a floor level, 14%.

So there's a chance to improve that too, right?

Yes, yes, there is a chance.

And the NIM?

NIM already previous year also, we have held 4, we have held 3, and we will continue to hold on to the 3 and over and above because of some of the things, one-off incomes also comes in between. But with the 4 operations, we always say we will be above 3.

The next question is from the line of Rushil Dedhia from Antique Stock Broking.

I wanted to ask you, some NIM decline for the quarter was [ 150 bps ], which was led by a sharp increase in the cost of deposits, right, and there was also a fall on the yield side as well. So what percentage of the deposit book on the [ bank ] is actually repriced? And also, what is your outlook on the NIM going forward again?

See, as far as the NIM is concerned, we saw this cost of deposit. This is only if you exclude the one-off item, there is 1-basis-point difference on the March '23 to June '23. Why I am saying March '23 to June '23, instead of taking June '22 is that is a lag effect that what we had on the rate increase in the advances and the subsequent increase in the deposit rates. The deposit rate effect comes after a lakh. So having said this, this point -- 1 basis point, that is the difference of what we have in the NIM. But as far as our guidance goes, we always say that we will continue to be above the floor level of 3 that we are going to maintain. As far as the cost of deposits that increased, definitely in the market, the way rates are being increased. Though we do not have that much of necessity and also having a liquidity of almost INR 35,000 crores to be in the market and protect our turf, we have increased our term deposits. That's why growth is around 8%. So I think in the next 9 months, this is going to stabilize in a similar way, and we are going to protect our NIM the way guidance what we help you well.

Ladies and gentlemen, that would be our last question for today. I now hand the conference back to the management for their closing comments. Thank you, and over to you.

Yes. Thank you for all the arrangements, what you people have did for this conference. And I thank you all the participants for their investing the time. And once again, I assure you that the bank is on a sound footing and then whatever the guidance we are giving that we are sticking to that, and we will continue to excel in the area. Thank you.

Thank you very much. Ladies and gentlemen, on behalf of Antique Stock Broking Limited, that concludes today's call. Thank you all for joining us, and you may now disconnect your lines. Thank you.