CSB Bank Limited (CSBBANK) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. I am Madhavan Aravamuthan, Chairman of CSB Bank. I'm attending this meeting from the Chennai's zonal office of the bank. A warm welcome to all of you to this 100th Annual General Meeting of the CSB Bank Limited. This meeting is being held through video conferencing and other audio visual means in accordance with the circular issued by the Ministry of Corporate Affairs, MCA; and Securities and Exchange Board of India, SEBI in view of the continuing COVID-19 pandemic and the social distancing norm, a norm which is to be followed consequently. This is the second year that our AGM is completely being held in virtual mode to maximize the experience of a meeting held in person, including the opportunity to participate in the meeting and for the shareholders to vote and ask questions. The bank has taken the requisite steps to enable members to participate and vote on the items being considered in this AGM in terms of the above such circulars and also with the provisions of the Companies Act 2013; SEBI, (Listing Obligations and Disclosure Requirements) and Regulations 2015 and the rules made thereunder. A live streaming of this meeting is also being webcast on NSDL's website. Before we start the main proceeding of the meeting, I request my colleagues in the video conference to introduce themselves. Mr. C.V. Rajendran, MD, CEO.

Good morning, everyone. C.V. Rajendran, Managing Director and CEO of the bank. I'm attending this AGM from the bank's administrative office in Mumbai.

Thank you, Mr. Rajendran. Mr. Madhavan Menon? Mr. Madhavan Menon, please unmute yourself.

I am Madhavan Menon, a Director on the Board of CSB joining this meeting remotely. Thank you. Thank you.

Thank you, Mr. Madhavan. Officer, Sumit Maheshwari?

Good morning, everyone. I'm Sumit Maheshwari, Non-Executive Director of the bank. I'm attending this AGM from my residence in Mumbai. Thank you.

Thank you, Mr. Sumit Maheshwari. Mrs. Bhama Krishnamurthy?

Good Morning, everybody. I'm Mrs. Bhama Krishnamurthy, Independent Director on the Board of CSB Bank Limited. I'm attending this Board meeting from my residence at Mumbai. I'm also the Chairperson of Nomination and Remuneration Committee of the bank. Thank you.

Thank you Mrs. Krishnamurthy. Mrs. Sharmila Abhay Karve?

Good morning, everybody. I'm Sharmila Abhay Karve, Additional Director, Non-Executive and independent of the bank. I'm attending this AGM from my residence in Pune. I'm also the Chairperson of the Audit Committee.

Thank you. Mrs. Karve. Mr. Sudhin Choksey?

Good morning, everyone. I'm Sudhin Choksey, Additional Director, Independent Director of the Bank, and I'm attending the AGM from my residence in Ahmedabad. Thank you.

Thank you, Mr. Choksey. Mr. Sunil Srivastav?

Good morning, everybody. This is Sunil Srivastav. I am also an Additional Director, Independent Director on the Board of CSB Bank. And I'm attending this meeting on my residence in Mumbai.

Thank you, Mr. Srivastav. I request President, Chief Financial Officer; and the Company Secretary on the media conference to please introduce themselves. Mr. Pralay Mondal?

Mr. Deva -- this is Pralay Mondal. I'm the President, and I look after Retail, SME and Technology and Operations in the bank. I'm [indiscernible] to be part of this meeting. I'm joining from our corporate office in Mumbai. Thank you.

Thank you, Mr. Mondal. Mr. Divakara?

Good morning, everyone. I'm B.K. Divakara, CFO, attending from the head office of the bank in Thrissur . Thank you.

Thank you, Mr. Divakara. Mr. Sijo Varghese?

Good morning, everyone. I'm Sijo Varghese, Company Secretary. I am attending this meeting from head office, Thrissur. Thank you.

Thank you, Sijo. Thank you, all. Apart to them, we also have Mr. P.V. Antony, General Manager, Accounts and other key executives of the bank joining this meeting through video conference from their respective locations. Mr. Vaibhav Shah, Senior Partner, B S R & Co. LLP, the Chartered Accounts Mumbai, they are statutory central auditor of the bank is attending from Kochi. Mr. Vincent P.D., Managing Partner, M/s. SVJS & Associates, Company Secretaries Ernakulam, they are secretarial auditors of the bank is attending from Kochi. We have the requisite quorum present through video conference to conduct the proceedings of this meeting. Participation of members through video conference is being reckoned for the purpose of quorum as per the circulars issued by MCA and Section 103 of the Companies Act 2013. The quorum being present, I call this meeting to order. The bank has taken all feasible efforts under the current circumstances to enable members to participate through video conference and vote at the AGM. I thank all the members, colleagues on the Board, auditors and the management team are joining this meeting over video conference. I hope all of you are safe and in good health. This being the AGM through video conference and other audio visual means I request Mr. Sijo Varghese, the company secretary, to take you through certain instructions regarding the participation of the meeting. Mr. Sijo Varghese, please.

Thank you, sir. Good morning, everyone. Members may note that this Annual General Meeting is being held through video conference in accordance with the Companies Act 2013 and circulars issued by the Minister Corporate of affairs and SEBI. The facility of participation at the AGM through video conferencing or other audio/visual means is being made available for 1,000 members on a first-come and first-serve basis. All the members who have joined this meeting are by default placed on mute mode by the host to cover any disturbances arising from background noise and to ensure smooth and seemless conduct of the meeting. The bank had provided the facility to cast the vote electronically on all resolutions set forth in the notice. Members who have not casted vote yet electronically and who are participating in this meeting, will have an opportunity to cast their votes during the meeting through e-voting system provided by the NSDL, provided they're not barred from doing so otherwise. Members can click on the vote tab on the video conference screen to avail this feature. Those shareholders who have cast their vote by remote e-voting prior to the AGM can also attend this meeting, but shall not be entitled to cast their votes again. Bank has received a request from a few members to register themselves and first speakers at this meeting. Accordingly, the floor will be opened for these members to ask questions or express their views. The moderator will facilitate this session once the Chairman opens the floor for question and answers. Members can also post their views on the question or the -- ask a queue tab on the web video conference screens before 11:30 IST. It may be noted that bank reserve the right to limit the number of members asking the question, depending on availability of time at this AGM. Registered directors and key management personnel, registered contracts with the related parties and contracts and [ bodies ] et cetera, in which directors are interested, certificate from statutory auditors in terms of Regulation 30 of SEBI's share based Employee Benefit Regulation 2014, Employee Stock Option Scheme 2019 with the changes proposed, auditors report and second auditors report has been made available electronically for inspection by the members during the AGM. Members seeking to inspect such documents can send their request to board at csb.co.in. As the AGM is being held through video conference, the facility for appointment of proxy by the members is not allowed. Hence, there is a no proxy registered for inspection in respect of said meeting. Members are requested to record the instructions provided in the notice or appear in the video conference page for seamless participation through video conference. In case, members face any difficulty, they may reach out on the helpline numbers as provided in the notice of the AGM. Thank you very much. Now it is the time for Chairman's speech. I request Chairman, Madhavan Aravamuthan to address the shareholders.

Thank you, Sijo. Dear, shareholders, very good morning to all of you. It gives me immense pressure to welcome you all for the 100th Annual General Meeting of our bank. I feel privileged to address you for the first time as the Chairman of this great institution, which has a glorious existence for over a century. I'm also delighted to extend a special welcome to those of you who have become shareholders of the bank since the last Annual General Meeting held into late 2020. This year has been an extraordinary in every sense. The pandemic has cost over 3 million lives so far, and many million jobs. For long periods, large part of the world have been in some form of lockdown or the other up to half the global population at a time. Let us stand with them and exhibit our solidarity with them. Maybe please observe a minute of silence, please. Thank you. Due to the unfortunate circumstances in the context of COVID pandemic, this year, too, we have to resort to AGM virtually though we were earnestly hoping to meet you all in person. But we also feel this virtual meeting will enable all our valued shareholders to participate from different locations, including overseas. As you all know, in the financial year 2021, our bank has completed 100 years of its glorious existence an achievement very few institutions can claim. We owe our gratitude to the visionaries who gave shape to this great organization and it's our collective responsibility to take this progressively forward. Essentially all trust capital fortified by the growth capital provided by FIH Mauritius Investments Limited, part of Fairfax Group, has driven the required terraforma for team CSB to build a new age, full service bank. Rising through the challenging, the team CSB played an active centenary tribute to the organization by recording an all-time high net profit and returning to the growth trajectory with a bank without compromising on asset quality. Further, your bank would also achieve a historic milestone of opening 101 branches in the 101st year of existence, brilliant execution on the ground with respect to pandemic and performance. Our results sets have come in the backdrop of challenging macroeconomic environment induced by the pandemic along with the a severe threat to human lives and livelihood. As per the latest estimates, the GDP of the country shrunk by 7.3% in FY '21. The non-food credit growth at around 5% was the lowest in the last 4 years. Deposit growth at 11% was more than 2x the credit growth, causing the credit deposit ratio to fall from 76.5% to 72.5% in March '20 to March 2021. In FY '21, despite heavy parts, your bank with group advances booked by 27% and deposit booked by 21%, powered by growth in business, fee income, treasury profits, interest cost reduction propelled by improved CASA mix and the tailwinds of soft interest rate regime, net operating income grew by 65% year-on-year, while operating profits grew by 119%. Bank has built adequate provision buffers both on standard assets and NPA front. And even after that, return on assets close to 1% could be attained. Indeed a stellar achievement in testing times. Significant improvement is seen in all key performance ratios, earnings per share improved from INR 0.88 to INR 4.59 and book value per share rose from INR 113.04 to INR 125.67 Banks listed price more than doubled, enhancing the shareholder value. Bank's NPA position has significantly improved as compared to the previous financial year, both in absolute and percentage terms. Unfortunately, we have certain regulatory restrictions as declared in the Director's report, we are not in a position to declare dividend this year. My colleague Mr. C.V. Rajendran, MD and CEO, will elaborate more on our performance in his address. Since we began our transformation journey, the prime focus was on building the much-needed operational resilience and reducing earnings volatility. We have some overall excellence in terms of balance sheet risk management, NPA reduction, building provision in buffers and expanding our markets, especially in niche areas and selected locales. Corporate governance philosophy. As a significant player in the country's financial systems, any nonconformity to government norms can jeopardize the bank's very survival resulting in the exposing customers, employees and investors to enormous financial risks. In recent years, we have seen a few financial entities going through adverse situations leading the regulators to press the reboot button. The bank gives paramount importance of corporate governance principals and hence, the corporate governance philosophy of the bank is set to promote corporate fairness, transparency and accountability so as to maximize long-term value for our stakeholders. Your bank is committed to high standards of corporate governance and practices. And of course, fairness and trust in all its dealing with its stakeholders, in line with the corporate governance philosophy. This philosophy is realized through the bank's endeavor in working towards portfolio, operational and reputational excellence, I believe this philosophy helped the bank be rated as the second best bank among all banks in India by Forbes business magazine in April 2021 edition based on parameters of general satisfaction and key attributes like trust, fees, additional services, financial advice, et cetera. On the governance and risk management, the Board and the senior management team are following the regulatory norms in letter and spirit. And I'm privy to this since my joining the Board in December 2018. Digital technology penetration. With the augmentation of digital technologies, consumers have become more demanding of virtual experience in today's time. The pandemic has only amplified the need for easy access to banking products, services and information and surged the need for stress-free access to banking products and services. In this direction, your bank has acquired technology for delivering improved customer experience as well as to be able to compete with the leading peers in the field. Digitization is engraved in our strategy. And in recent years, we have made pricing pulling out various digital initiatives, including improved Internet and mobile banking options. The increased share of digital transactions in FY '21 is a testimony that our strategies are delivering their expected results. Our team, along with their technology partners, are working relentlessly on enhancing the bank's digital capabilities to bring in more ease and better experience to the customers. Customer service, in the customer service front, your bank has always endeavored to provide high-quality customer service in tune with the changing times. Your bank has put in place our well-defined customer grievances redressal mechanism to address any of their grievances. Your bank strongly believes that customer service will continue to be the most important factor in maintaining and improving the bank's role within the Indian banking industry going forward. We were at the beginning of the biggest reinvention in CSB's history. We're working from being an old generation loss-making bank to a name in the industry to reckon with, competing with the new generation and public sectors banks alike. And we can now see that CSB's new strategy is starting to work. It has just delivered a strong set of first quarter results as well. CSB is indeed performing, while transformer itself. This development only strengthens our belief that CSB's new direction is the right one. So we have reasons for optimism about the years ahead and what they hold for CSB and our shareholders. But we also recognize that the journey thus far has been demanded difficult decisions, turning CSB into a leaner, nimbler and more efficient bank, what we call reinventing CSB. And I believe CSB's new financial frame and investor proposition, should instill confidence as the CSB is making strong progress in meeting its financial realities. I expect the progress to continue at a healthy pace. The impact of the COVID-19 pandemic is likely to pose challenges to Indian banks improving financial performance once asset quality risks manifest in the financial year 2022. However, the tapering of the second wave, coupled with aggressive vaccination push has brightened the near-term prospects for the Indian economy. As a [ hearty ] financial environment and continued policy support have contributed to nurturing the recovery, the game changer has however been the speed and scale of vaccination under consequent unlocking. We will closely monitor the external situation as well as keep ourselves agile to mitigate its negative impact. We firmly believe that setting our strategic intel clearly being consistent with them and moving in rhythm with the environment around us is the surest way of making our journey successful. In this background, with a new high-quality leadership team in place, I'm very exited about the future. We sincerely believe that seriously best days are just ahead. Acknowledgments, on behalf of my colleagues in the Board, I place on record our gratitude for the support and guidance extended by the Ministry of Finance and the Ministry of Corporate Affairs, Government of India, Government of Kerala, Reserve Bank of India, SEBI and other regulatory authorities. I would also like to express my sincere thanks to our valued shareholders and customers for their continued support and for the confidence we post on the bank. I would like to use this opportunity to thank Mr. Rajendran, MD and CEO, and the entire management team, along with their staff for their efforts in turning around the bank as far as laying the foundation for a strong and successful future of the bank. Our people have continued to work under tough COVID restrictions. I want to thank each one of them, in extraordinary times, they have responded with extraordinary commitment and sincerity. Just as I'm grateful to those on CSB's operational frontline and back office support, I'm also grateful of CSB's leadership for the commitment they have shown in executing the strategy that the Board has set out. They have achieved major changes while running CSB's operations effectively and efficiently. This will be a long journey and a challenging one. I would also put on record my gratitude to the electronic and print media for their support in all our activities. My grateful thanks are also due to other stakeholders in society. I wish to make a special mention on the invaluable contribution of Mr. Madhavan Menon, my predecessor Chairman, for setting up a good corporate governance frame in the bank and also for the sheer professionalism that he displayed during his tenure by sharing unbiased decisive and professional opinions, keeping in view of all stakeholders interest at hand, though he is part of the promoter of the bank. Permit me to conclude by stating that your bank is committed to continuously improve its operations and differentiate itself in the marketplace through customer focused innovations in products and services with the aim of building a strong and sustainable bank in the coming years. Stay safe. Thanks for your patience. Now I request, Mr. C.V. Rajendran, Managing Director and CEO, to address the shareholders. Mr. Rajendran, please?

Thank you. Dear shareholders, on behalf of the Board of Directors of the bank I take immense pleasure in welcoming you all to the 100th Annual General Body Meeting of CSB Bank Limited. Let me start with the prayer that all of you and your family members remain healthy and safe during these difficult times. First and second waves of COVID did pose many challenges in all walks of lives and we are slowly and gradually recovering from that trauma created by the pandemic. As the possibility of the third wave cannot be ruled out, we have to take all the precautions, get vaccinated and observe all the COVID-related protocols meticulously. Though financial year '21 was tough for CSB, we worked together through thick and thin, and [indiscernible] the situation. The challenges brought in by the pandemic would not dissuade us from our transformation plans and our clear focus kept us on track in growth as well as profitability. The fact that financial year '21 marked overall improvement in top line, bottom line, asset quality, the [ value ] expansion and capital position is a testimony to this. Even all successful in retaining -- we are also successful in maintaining the top-notch rating of A1+ to the certificate of deposits and [ start on ] deposits program of the bank. Additionally, CRISIL rating assigned, CRISIL A stable rating, the proposed Type 2 bond issuance program on the bank. We could achieve a historic milestone of opening 101 branches in the 101st year of existence of the bank. Out of 101 branches, 9 branches were opened in the whole state, and remaining 92 branches were opened outside Kerala. That's embarking on with journey of becoming a leading bank with the PAN India presence. The annual report of the bank for the year'20/'21 is already made available to you and with your kind permission I take it as read. Let me summarize the major highlights of fiscal 2021. On the top line, I take pride in announcing that the centenary year, the bank has grown a 1/4 of the total business it grew in the past 99 years. We clocked an overall business growth of 24%, where deposits grew by 21% and advances by 27%. Overall, CASA has grown by 33%, and mix has improved to 32% from 29% year-on-year. Our net advances grew by 27%, predominantly driven by 76% growth in gold loan portfolio. Agri, and MFI verticals business crossed INR 500 crores. The 2-wheeler portfolio grew by 120%. Now coming to the financial performance. The bank recorded an all-time high net profit of INR 280.40 crores in financial year '21 as against INR 12.72 crores in the financial year '20. A whopping will be increase of 1,617%. Our income, too, increased to INR 2,273.11 crores in financial year '21 from INR 1,731.50 crores in financial year '20. Interest income during the year was INR 1,872 crores as against INR 1,510 crores in the previous year. Asset quality improved as the gross nonperforming assets feel to 2.68% of the gross advances as of March 2021 as against 3.54% by the end March 2020. In absolute value, the gross NPAs amounted to INR 393.49 crores compared to INR 409.43 crores a year ago. Net NPA also fell to 1.17% from 1.91%. Net interest income of the bank improved from INR 592 crores to INR 941 crores, recording a growth of 59%. Treasury gains, sale of PSLC, recovery of bad debts, and growth in fee income tend to boost a noninterest income to INR 222 crores to INR 401 crores. Total staff costs for financial year '21 amounted to INR 497 crores, with an increase of 50% year-on-year on account of increase in headcount, the change in actual assumption on mortality, VRS and AS 15 provisions, et cetera. Bank is holding an amount of INR 156 crores provision for NPA accounts over and above the RBI provision in-house as for the accelerated provision policy followed by the bank. Further bank is holding additional standard asset provision amounting to INR 89 crores in excess of the RBI requirements. CD ratio, net of the line, improved by 345% -- 345 basis points from 71.98% to 75.43%. CASA ratio of the bank to 32.19% from 29.17%. Provision coverage ratio of the bank stood at 84.89%. Yield on advances improved from 10.56% to 10.97%. Cost of deposits reduced from 5.91% to 5.07%. NIM improved from 3.74% to 4.81% with an increase of 107 basis points. CR/AR ratio of the bank is 21.37% against a regulatory requirement of 10.875%. Cost to income ratio of the bank is 54.31% -- sorry, 65.53% as on 31/03/20. We continue to operate in a highly uncertain economic environment, it will take some time for the real unlocking to happen. Your bank is secure the situation with a strong balance sheet. The total provisions that we are holding in excess of RBI's requirement as on 31/03/2021, is about INR 250 crores. We are optimistic that when the economy will opens up, the growth will come back with vengeance. The key drivers was CSB for the current fiscal will be focused on tapping the huge potential for gold loans where we have the experience and expertise. In fact, the opportunities in agri and MSME segment, low SME corporate in select segments, basis of our risk perception. Roll out new verticals in the retail segment, tie-ups in business and digital space, broadening the product suite, quality and customer acquisition, creating a larger digital vision for the bank. We live in a [indiscernible] world with volatility uncertainty, complexity and ambiguity. In response, we have another [indiscernible] vision to service shareholders, understanding of the needs of the customers, customer-friendly strategy, agility in response to crisis situations. In crisis, action is more important than strategy. Throughout the pandemic situation, we are focused on ensuring the safety and well-being of our employees while maintaining continuity of our operations. CSB team was swift in taking charge of the situation, quickly adapted to the new ways of working and were productive and dedicated. I would like to appreciate all the firefighting the team has done and thank the employees for their remarkable contribution in such a difficult year. People who succeeded our momentum, I'm sure the team will leave no stone unturned to take this organization to the next level in this financial year. We aim to align with the shareholders' interest and are committed to deliver long-term value. Strategically we have drawn clear plans for the short, medium and long-term goals and the experienced team on the ground is all set to execute it. Thank you for your continued support and for having faith in our ability to deliver. I take this opportunity to thank the governments, regulators, stock exchanges and auditors for the support and guidance during financial year '21 and request continuing patronage from all the stakeholders. We already started seeing visible up shots on the ground and are determined to constantly improve. We are working on improved product offerings and processes to bringing more customer delight. We are on a progressive journey with the customer centricity, when I say customer centric, the most important aspect during this tough situation is empathy, and we will be holding it to the core. I'm sure this attitude will make a difference. Sounds make trees stay deeper rooted. We are all well capitalized and have resilient balance sheet and are poised for growth with [indiscernible]. Though we have not -- we may have to wait for some time to understand the full impact of COVID-19, we are optimistic in our outlook. We will continue the good work in financial year '22 as well. Thank you.

Thank you, Mr. Rajendran. The notice dated July 5, 2021, convening the meeting, the statement of profit and loss account for the year ended March 31, 2021, and the balance sheet as at that date, together with the reports of the Board of Directors and auditors thereon have been in your hands for quite some time. With your permission, I take the notice convened in the meeting as read. I now request Sijo Varghese, the Company Secretary, to provide a summary of the auditor's report. Sijo, please?

Thank you, sir. The statutory auditors, BSR & Co. LLP, Mumbai; and the secretarial auditors, SVJS & Associates, Kochi, have expressed unqualified opinion in respect to the auditor's report for the financial year '20/'21 and the same is now being put up at the meeting. There were no qualifications, observation or adverse comments on the financial statements and matters which have any material impact on functioning of the bank. The statutory auditor's reports are available on to Page #152 of the annual report. The secretarial's auditors report is enclosed as Annexure 5 to the board's report on Page #103 of the annual report. Thank you, and back to you, sir.

Thank you, Sijo. As the notice is already circulated to all members, I take the notice convening the meeting as read. Before we proceed, I'm pleased to bring to your notice that as required under the Companies Act 2013, the bank has provided you all the facility to cast your vote electronically on all resolutions set forth in the notice. Members who have not cast their vote electronically, but are participating in this meeting will have an opportunity to cast their vote through the e-voting system provided by NSDL. Members may please note that there will be no voting by show of hands. We shall now proceed to deal with various business of the meeting in their order as set out in the notice of the meeting. We will open the floor for any questions by the speaker shareholders after all the resolutions are tabled. Item #1. Adoption of bank's audited financial statements for the year ended March 31, 2021 along with the report of the Board of Directors and the auditors thereon. The financial statements of the bank including the consolidated financial statements for the financial year ending March 13 -- March 31, 2021, including the reports of the Board of Directors and the auditors have already been provided to the members. Item #2. Reappointment of retiring Director, Mr. Madhavan Menon. I invite the attention of the members to Item 2 of the notice. Item #3. Ratification of the additional fees to the statutory auditors, BSR & Co. LLP, chartered accountants. I invite the attention of the members to Item #3 of the notice and the explanatory statement on the item. Item #4, appointment of joint statutory auditors and fixation of the remuneration. I invite the attention of the members to Item #4 of the notice, under explanatory statement. We request the shareholders can take note of the new address of BSR & Co. LLP, chartered accountants, as 14th Floor, Central Wing, Tower 4,, Nesco Center, Western Express Highway, Goregaon (East), Mumbai - 400063, India. And the address given in the resolutions, be modified to that extent accordingly. Further, we would like to inform you that Reserve Bank of India vide letter No. DOS. ARG. No. PS107/0807005/2021-2022 dated July 23, 2021, conveyed their approval to appoint BSR & Co. LLP, chartered accountants, Mumbai along with Mukund M. Chitale & Co, chartered accountants, Mumbai as joint statutory auditors of the bank for the year 2021/2022. The approval is sought for at the meeting is to appoint BSR & Co. LLP, Chartered accountants, Mumbai and Mukund M. Chitale & Co, chartered accountants, Mumbai, to hold office from the conclusion of the 100th Annual General Meeting till the conclusion of the 102nd and 103rd Annual General Meeting of the bank, respectively, subject to specific approvals of the Reserve Bank of India of each year during the tenure in terms of Section 30 (1A) of the Banking Regulation Act 1949. Special business. Item #5. Appointment of Ms. Sharmila Abhay Karve as Nonexecutive Independent Director of the bank. I invite the attention of the members to Item #5 of the notice and the explanatory statement on the item. Item #6. Appointment of Mr. Sudhin Bhagwandas Choksey as nonexecutive independent director of the bank. I invite the attention of the members to Item #6 of the notice and the explanatory statement on the item. Item #7. Appointment of Mr. Sunil Srivastav as Nonexecutive Independent Director of the bank. I invite the attention of the members to Item #7 of the notice and the explanatory statement on the item. The next 2 items in the notice are, one, Item #8, which deals with my appointment as part-time Chairman of the bank and approval to remuneration for the position. And to Item #9, which deals with my reappointment as an Independent Director of the bank. Since I'm deemed to be interested in the items, with your permission I request Mr. Madhavan Menon, senior most Director of the bank, to take forward for transacting this items. Mr. Menon, please?

Thank you, Mr. Madhavan. With your permission, I proceed to deal with the next 2 items in order as set out in the notice of the meeting. Item #8. Approval to appoint and the terms of appointment of Mr. Madhavan Aravamuthan as part-time Chairman of the bank. I invite attention of the members to Item #8 of the notice and the explanatory statement on the item. Item #9. Reappointment of Mr. Madhavan Aravamuthan as Non-Executive Independent Director of the bank. I invite the attention of the members to Item #9 of the notice and the explanatory statement on the item. As both items have been dealt with as for the notice, I request Mr. Madhavan Aravamuthan, Chairman, to continue to preside over the rest of the meeting. Thank you, and I hand you back to Mr. Madhavan Aravamuthan.

Thank you, Mr. Menon. Now, we will take up the remaining items in the manner as listed out in the notice of the meeting. Item #10. Reappointment of Ms. Bhama Krishnamurthy as Non-Executive Independent Director of the bank. I invite the attention of their members to item #10 of the notice and the explanatory statement on the item. Item #11. grant of 433,150 stock options to Mr. C.V. Rajendran, MD and CEO of the bank, as performance grant for the period December 09, 2016 to March 31, 2020. I invite the attention of the members to Item #11 of the notice and the explanatory statement of the item. Item #12. Payment of variable pay to Mr. C.V. Rajendran, MD and CEO of Bank for the financial year 2019/'20. I invite the attention of the members to item #12 of the notice and the explanatory statement on the in. Item #13. Addition in the fixed pay of Mr. C.V. Rajendran, MD and CEO of the bank, with effect from April 1, 2020, and payment of variable pay for the FY 2020/2021. I invite the attention of the members to Item #13 of the notice and the explanatory statement on the rate. With respect to variable pay recommended for the financial year 2020/2021, thank you note that, that Nomination and Remuneration Committee of the board in August 2020 had recommend a targeted variable pay to Mr. C.V. Rajendran, Managing Director and CEO, in the range of 50% to 300% of the fixed pay for the financial year 2021 based on scorecard set for the same period, which consisted of 6 rating parameters in the nature of overall business growth, profitability, asset quality, capital adequacy, branch network expansion, liquidity and compliance and governance. The committee posted a declaration of financials of '20/'21, evaluated and reviewed the sales operations report based on the scorecard set and awarded 5 marks out of 5 and recommended a variable pay of INR 6 crores, which is 300% of the fixed pay that is INR 2 crores for the financial year 2020/'21. The variable pay recommended was based on achievement of the target set for the same period, which is linked to ratings based on balanced scorecard covering both quantitative and qualitative aspects. Number 14. Appointment as Mr. Pralay Mondal as Director of the bank. I invite the attention of the members to item #14 of the notice and the explanatory statement on the item. Item #15. Appointment of Mr. Pralay Mondal as Deputy Managing Director of the bank and approval for the terms of his appointment. I invite the attention of the members for Item #15 of the notice and the explanatory statement on the item. Item #16. To approve amendment in CSB Employee Stock Option Scheme 2019, I invite the attention of the members to Item #16 of the notice and the explanatory statement on the item. The text of the resolutions along with the explanatory statement is provided with the notice circulated to the members. If any member decides to ask questions pertaining to any item in the notice he or she will do so now. Now, I will take the questions from speaker, shareholders and invite these speakers who have registered. To avoid repetition, the answers to all the questions will be provided towards the end. Members may also note that bank reserves the right to limit the number of members asking questions, depending upon the availability of time. Members are requested to keep the questions brief and specific. The Company Secretary will now announce the name of shareholders who have registered as speaker shareholder one-by-one. Sijo Varghese, please?

Thank you, sir. Dear shareholders, thank you for joining our 100th AGM today and for taking time to participate in it. Before we go live with the question-and-answer session, here are some points to note for your convenience. Name of the speaking shareholders will be announced in turns. Speaker shareholder will be thereafter unmuted by the host. To start, speaking shareholders are requested to click the video on the button to the center of your screen. Those shareholders who are unable to join through video for any reason, can speak through audio mode. Please mention your name, folio number and the location from where you are joining. Each shareholder will have 3 minutes time for their questions. To avoid repetition, bank will respond to all the questions at the end. Once you have asked your question, you can log off and continue to watch the proceedings. In case there is a connectivity problem at speaking shareholders end, the next shareholder will be asked to join. If connectivity improves, speaker shareholder will be called again to speak once the other shareholders who have registered complete their turn. If a member faces any technical issue, he can contact the helpline number mentioned in the notice of the AGM. We will respond to as many questions as possible during the meeting. If we are not able to address any questions during the meeting, we plan to post the questions and answers on our website after the meeting. We also plan to post a recording of this meeting on the website at csb.co.in after the meeting. Members may note that as this meeting is being recorded. Please do not disclose any sensitive personal information or personally identifiable information belongs to you or any other person that has no bearing on this meeting. Now we will move to the Q&A session. Finally, note that bank has received request from 6 shareholders to speak at the AGM. The name of the speaking shareholders will be announced in turn.

First shareholder registered for the -- Mr. Ravi Kumar Naredi. Now I request Mr. Ravi Kumar Naredi to kindly proceed with the question. Mr. Ravi Kumar is holding 260 shares of the bank. [Operator Instructions] I think he has not joined for this meeting, sir. So now we will move to the next speaker, sir. Now we have a question coming from Mr. Xavier VM. Mr. Xavier is holding 133 shares of the bank. We request Mr. Xavier to go ahead. Sir, I think he's -- he also not joined for this call, this meeting. Now third speaker is Mr. K. Bharath Raj. Mr. Bharath is holding 1 share of the bank.

Mr. Chairman. Am I audible. Hello?

Yes. please, you are audible.

Yes, sir, first of all, I must -- Board of Directors congratulating for completing 100 years, centenary celebrations. And I'm happy to see you all safe and healthy and fine. I thank Mr. Sijo and his executive department for arranging a wonderful video conference, sir. Sir, in this happy occasion, sir, I'm very happy that our bank is #2 brand in Fortune, sir. I'm very proud of to say under the leadership of you, our bank is growing vastly, sir. And the revenue also, sir, the profit when compared with the last year, this year, improved 2,000x, sir, it is wonderful, sir. I don't know what miracle you have done. But in your hands, something magic is there, sir. You're taking our bank to the next level. I'm very proud of it, sir. And wish that it will be -- this legacy will continue, sir. Sir at present, we have branches in 16 states, sir. Can we expect our expansion maybe in the next to 20 states. And maybe you want to make our -- PAN-India, what is your future plan, sir? Because we have completed 100 years with this brand, we should go PAN-India, sir. So what is your plans? You want to expand into other states also, where the existing -- we are not existing, can you take the footsteps of CSB into the other states also? Regarding the branches, sir, we are at present 500 branches. Can you expect 1,000, sir -- target 1,000 branches in next 5 years? And my another question, sir, is our employs all have been vaccinated, sir. And the vaccination is provided by our bank or through other sources, sir? Any death incidents happened to your employees? And how you have taken care, sir? That is my -- sir, in this happy occasion, sir, till now Catholic Syrian Bank, never declared a dividend, sir. There is no bonus in 100 years. Sir, recently it is listed. Mr. Chairman, under your leadership, we expect a bonus, sir. Because 100 years centenary at least INR 100 as a dividend payout, sir. We will be more happy, sir. Because in 100 years, there is no one dividend, sir. Because it is not listed now it has been listed. Sir, please consider sir, with the whole hearted in this happy occasion. Please give INR 100 as a dividend, special dividend, sir. Once again, I thank the management and entire Board of Directors, sir. Please, we trust in your leadership and definitely, our bank will expand all over India under the leadership of our Chairman and the Managing Director. Once again, sir, god bless you all. Thank you, Mr. Sijo, for arranging a very good VC, sir. God bless you. All the best.

Thank you, Mr. Bharath. We have noted your question and we will respond you at the end of the session. Next speaker is Mr. Babu George MP. Mr. Babu is holding 6 shares of the bank. [Operator Instructions]

Hello? Hello? Hello? Am I audible? Hello?

Sir, yes, audible, sir.

First of all, I'm very happy. On this occasion of this centenary I'm remembering the founders who started this bank about 100 years back. The growth of the bank was -- now there is a -- we want -- these many new [indiscernible] -- lot of branches, because the centenary is very rare occasion to the history of a company or a bank. For example, the number of banks now diminished in -- from India. Because you're now the biggest banks -- Syndicate Banks [indiscernible] likewise, this CSB stood for the last 100 years and now it has financial system, [indiscernible] who are star-lords in the banking industry. But this is paining for me that we are attending this Annual General Body of the 100th year centenary year, nothing is given to the shareholders. Moreover we expect some dividend, let's not delay. And as [indiscernible] even though there is profit of [ 200 ] for previous year's losses, to such that they will not pay your remuneration. We approached the finance ministry and Reserve Bank of India. This has been -- since this year is the centenary year, please consider giving some dividend to all shareholders, they will consider. Please take all steps for that and declare the dividend. And also request you to issue bonus shares and rights issue in the near future. Moreover, I'm very much worried that your staff and offices are not paid revision of salary. In all the banks in India remuneration is [ started ] almost, in all banks the arrears are paid. What about Catholic Syrian Bank? CSB must transform from government and give some wage [ rise ]. Considering it is their part of the execution, their hard work will result in very good results to continue on that side. Moreover, I request, I want to know how many shareholders, Directors, ex-Directors, officials and staff has expired due to COVID-19. If you have not any information lesson, please inform. Any compensation paid to the existing staff who expired due to COVID-19. There is chance of third wave in the near future. So I request our management to deliver okay [indiscernible] good quality to all the shareholders who attended this meeting as well as to all the staff or beds, to just how much oxygen they are having and this is a [indiscernible] of tests. This will be useful. Please consider this as a gesture through Catholic Syrian Bank's centenary. Once again I thank you, the management for giving an opportunity to speak. And one more thing I want to know is lot of in this year that a -- lots of complains received this year. In the annual report it is mentioned that 3,331 complaints received. And complaints pending is 97. So there is lot of customers complained to me about [ PSB ] because CASA deposti, we are [ suffering ] no invest deposit. But in the matter of SB deposit the true -- at percent 2.5% is given. Whereas in the other banks, it is 2.9%, some banks give at 3.5%. So this is the lowest. Consider giving at least 2.9% to SB account holders. And huge amount is debited from their accounts without informing them for SB account maintenance. And that is as per the other charges like that. It's not good. This will affect the [indiscernible] and image of the bank. This is not the way to increase the profit of the bank. For increasing profit give a good advance, put [ lots ] and takes steps for recovery of the [indiscernible]. Still there is lot of NPA accounts pending, please take urgent steps on a war-footing basis, and all NPA must be removed from the bank. Another thing I want to know is the first quarter performance of the bank, that is from 1st April to the 30th June this year. How is that first quarter? Is it profit -- is there a profit or loss? Our NPA figure, like that, please inform me. Is the figures are not available, I would send the questions to you. Please reply by e-mail. Once again I thank you very much. And that my best wishes. Please consider my request favorably and do justice to the founders of Catholic Syrian Bank, at present CSB Bank. Thank you very much.

Thank you, Mr. George. You have noted every question you will respond at the end of the session. Now the question is coming from Mr. Abhishek J. Mr. Abhishek is holding 2 shares of the bank. [Operator Instructions]

Sir, kindly allow me to switch on the camera as well, sir. Sir, this is Abhishek, shareholder of the company, my DPID IN301637 and Client ID is 41359155. Sir, first of all, I congratulate the management on the eve of 100th Annual General Body Meeting. This is our centenary year. So as the previous shareholder said, we too have a lot of expectations from the management for this particular annual general body meeting. But unfortunately, the management has not declared a dividend. Hope the management will fulfill the wish and desire of the minority shareholders by declaring an interim dividend before the conclusion of the 100 year. Sir, my family holds more than 2,500 shares. And I hold around 70 account, DEMAT accounts in my family. So accumulatively, we hold that much of shares. So trust, all is well with you and your family in this challenging situation, our company deserves much more respect than the current market cap after completing more than decade of successful operations, profitability and becoming one of the strongest bank in our respective banks. So I would also like to know, sir, that how are we going to spread our wings and to reach North India as well because our banks are restricted to South India. So what steps are we going to take to reach across the country. And however, bank is being impacted in this COVID time, in these past 2 years. Coronavirus and the subsequent lockdowns have left virtually no industry untouched after the COVID. So any employees we have sacked, hired, salary cut in percentage if any. Any salaries cut was being taken by the management? And what is the view of the management going forward, sustainability of the profit earnings roads are going to remain challenging in the coming quarters. And who are the -- kindly share the details of the top 10 defaulters list, sir. Were there any public limited company also involved in the top 10 defaulters list, I would like from you, sir. And I would request the management who kindly arranged for con call, quarterly presentations and meeting with global investors on a regular basis. Sir, what are the management's efforts to reduce the other expenses, legal professional charges and the audit fee, sir. Myself and my team are running a legal firm in the name and style of 7Works Associates in Chennai, so I would request your to goodselves kindly enroll our firm is the impanelment of the company, and we will be glad to extend our services if required in Chennai. And I have made a request last year AGM also sir, but I have not received any revert back from your end. I would request your goodselves to kindly put me through the legal teams so that I can share my details and credentials with them. Whatever required, we will comply, sir, accordingly. And what is the policy related to dividend in our company, sir, as most of the senior citizens are only dependent on that. And in the NSDL portal, where we get access for this particular Annual General Body Meeting, we are supposed to update our instruction of documents like register of members, register of TNP, and register of contracts, if any. But unfortunately, it is not being updated, sir. So I would request your goodselves to kindly update the same for the inspection of the members, those shareholders who want to inspect, they need not disturb the company. They may very well do the same from the NSDL portal itself. And since this is a 100th Annual General Body Meeting and this is the centenary year I've been attending your AGM regularly up to 2018, physical AGM. But unfortunately, due to the COVID pandemic these 2 years, we are not able to meet physically. So I would like to send you a -- send our Chairman, Managing Director with -- honor our Managing Director with the shawl and a memento. So I will send it, the shawl and memento to your registered office. Kindly accept it, sir. I would request your Company Secretary to kindly share the details so that I can share the consignment details with them so that they can receive it correctly. So nothing much to ask, sir. I wish the company and I once again congratulate the management on the eve of this 100th year. I wish the company and the Board of Directors great success and prosperity in the coming future. Thank you for giving the opportunity, sir. Thank you very much.

Thank you, Abhishek for your question. We have noted to your question. We will respond at the end of the session. Now question is coming from Mr. Nalin Shah, he's representing NVS Brokerage Private Limited. NVS Brokerage is holding 175,000 shares of the bank. [Operator Instructions]

Mr. Nalin Shah, you have to unmute yourself. Mr. Nalin Shah, you have to unmute, you're on mute mode.

Am I audible now?

Yes. Yes.

At the outset, I'd like to congratulate our CEO and Managing Director, Mr. Rajendran for the excellent performance of the bank. Not only that, but I think what Chairman mentioned today that during his evaluation, he won 5 out of 5 points on the kind of performance evaluation which was held by the bank management. So I must congratulate for this outstanding, I would say, achievement on behalf of the bank. I would also like to congratulate the Chairman for the -- conducting this meeting in a very seamless manner. My points are, I don't want to go into a very, I would say, micro points but I would like to understand the macro position in terms of bank this thing. We are seeing that currently there are some payment bank and some finance companies, which are coming out with the IPOs and entering the market. Are coming out at a price which is much higher in valuation, which is much higher than even our bank, whereas their profitability is, I think, questionable or in many cases, it is negative or very, very negligible profitability. And still, they are commanding twice, thrice our kind of valuation. So I would like to understand as CEO, Mr. Rajendran mentioned during his address that there are short-term, medium-term and long-term plans of the bank to scale up the bank. So I would like to understand on a short term, let's say, '22 and '23, what is the kind of the performance yardsticks you are setting up for yourself in terms of PAT or in terms of deposits and in terms of advances, in terms of scaling of the business, at least on a short-term basis. And on a medium to long term, I would just say on one parameter, if you can tell us that when do you expect the bank to hit, say, INR 500 crores in terms of PAT and INR 1,000 crores, it comes of PAT during next, whatever, 3, 5, 7, 10 years. So this is my -- because ultimately, it is the market cap, which is very important for all the investors. Secondly, when the bank is going to be qualified for the declaration of dividend, as per I mean what was mentioned that we could not declare dividend because of certain legal issues involved. So if you can let us know when the earliest you can come on the dividend list. And I would like to just understand that -- when do we -- when do you expect to reach something like all India kind of -- this thing, footprint for the bank so that we command a much bigger in terms of -- I mean valuation aspects, I think people look at the all India presence of the bank. So these are my few questions. Once again, thank you very much for giving me this opportunity, Mr. Sijo and his team, congratulations.

Thank you, Mr. Nalin. We have noted your questions. We will respond at the end of the session. Now Mr. Xavier VM. He's now joined for this call. So if he would like to talk send response. Now Mr Xavier is holding 133 shares. [Operator Instructions]

Am I audible?

Yes, sir.

Indeed, I'm very happy to be a part of the AGM of CSB Bank Limited in its 100th year. Like, Rakesh Bhatia was the MD of Bank, long back. I gave a suggestion in writing that the name of the bank should be changed to CSB Bank Limited. It took a long time and it was in the period of Mr. [ MVR ] Rajendran sir, you have the name because we want to give cosmopolitan picture of this bank. Otherwise, it will be known as the bank of Christian community. Now, this bank is growing like anything. Now this is the right model of all the banks in Thrissur and in Kerala. And I know the profitability is growing up every year. Last year, when we looked at share price, it was only INR 222 today, now today the price is more than 322. So the bank is doing a wonderful performance. And I'm sure getting dividend is not only the concern, dividends, even if we are not getting the dividend, the value of the share company is going up. That is more than enough. Dividend is not an important issue for us. And I'm very grateful to the management because you are creating more wealth for the shareholders. I am a shareholder as well as a bank account holder for the last 46 years. And I've fully satisfied with the performance of this bank. And when we take the financials of this bank, we know the capital adequacy ratio, the NPA ratio, these are all in a favorable position, maybe the best in this industry when you talk -- when you take the performance of other banks in, Thrissur as you know Thrissur is the capital of banks, especially in Kerala. Out of the 5 banks registered in Kerala, 4 of them are from Thrissur. And after the 4 banks from Thrissur, CSB is the best out of the 4. I have to really congratulate Mr. Rajendran and team as well as the new management team, management people who have taken over this bank or invested more funds into this bank.. I'm really happy that this bank will be doing better performance in the coming years. And the management don't mind, one more humble suggestion I would like to give, now we have a INR 10 face value share, like can you split it to INR 1 or INR 2 share so that these shares can be bought and sold by ordinary people in huge quantity, that's all. And I take this opportunity to wish all the best for the CSB in the future. Thank you. Thank you for giving me this opportunity and wish you -- once again with you all the best. Thank you.

Thank you, Mr. Xavier. We have noted your questions. We will respond at the end of the session. Sir, with this, we conclude the question session from all the shareholders. Now I hand over back to the Chairman.

Thank you, all. Received all the questions and all comments and observations from all the listed speakers and shareholders, barring one. Now let me respond to this cases, which I'm supposed to answer. Those questions are related to operations of the bank, Mr. C.V. Rajendran, MD and CEO will respond. And those related to the resolutions proposed, none of them have been raised. So Mr. Rajendran, please.

Thank you, sir. Sir, consolidated questions I have taken down in one round. Firstly regarding the expansion of the branch network. We have operations in 16 states, when you will reach out to the other states is one question. We have ambition to reach out to all the states over a period. But opening one branch or 2 branches in one state doesn't make any sense. And that is pose us a lot of administrative problems also. So one by one, we adopt the states and we open a reasonable number of branches in those states so that there will be a cluster of branches to support each of that, and they will be in a position to progress. We are progressing very well, in spite of the COVID last year, we were able to open 101 branches. And during the current year, we have planned to open 200 branches out of which 83 branches are likely to come in the first half itself, remaining may have to come in the second half. Of course, this second part is little difficult, many places, we have not -- permissions are not allowed to work even. So we will see, if everything goes well, another 200 branches will be added during the current year. Somebody asked when you will reach 1,000 branches it is our ambition that -- by the year 2024, we should have about 1,000 branches. That is a plan with which we are working, if everything goes well. So all the branches have to break even during the first year. If it is rural or semi-urban, it is urban or metro, they have break even in the 18 months that is the target given to them. We will observe how these branches which already opened are performing. If they come to our expectation we'll be in a positive to expand more and reach the 1,000 target by 2024. And as far as vaccination is concerned, we have provided vaccination facility to all our employees. And we have provided vaccine through various tie-ups with the hospitals and all. Not only the employees, their family members were also provided with this facility. Employees were given free vaccination, family members were asked to pay a part of that cost. That is how we have gone ahead with it. And more than 800 people availed this facility, 865 people got the first dose, and 67 people got the second dose. Unfortunately there are 4 employees who passed in COVID during this period. And comparative to -- compared to the industry level it is much less. But we also remember Kerala is still running very large number of cases reported every day. Most of them are on a -- seniors, almost 59, 60 years older. They have other issues also. So they got affected in this. Otherwise, we have given all necessary protection to the employees. We asked them to follow all the protocol. In Kerala, particularly it was only alternative working days as per the government plan for quite a long time. Now only they have opened up for all the 5 days. And Saturday continues to be a holiday till last week, only this week Saturday opening, Saturday alternative Saturday working has started. So we are compliant with all the guidelines given by the government and we are also insisted the protocol is to be maintained in our bank. As far as dividend is concerned, we wish that we must come back on dividend. We were a dividend paying bank for the past 94 years, let's say, 94 years. But when you incur losses as per the Companies Act, there are a certain restrictions until you wipe out the accumulated losses, you cannot pay the dividend, it is the first thing. And there are RBI restrictions. And we are booking the profit in the HTM portfolio, that profit should be transferred to the reserves. So there was some pending amount which was not transferred year-on-year, which is completed during the last year. The accumulated losses to a large extent is wiped out during the last year. Maybe about INR 131 crores is left out, I hope that during the current year, we will be in a position to wipe out the losses, most probably, we will be in a position to give dividend, from the next year onwards. The current year also it maybe difficult now going by that numbers which we are seeing. maybe the next year onwards, we'll start giving dividend. As far as the splitting the share is concerned, we will take your advise and we will evaluate, whether it is feasible at this point of time, I will wait for some more time to decide on that. Some questions were not relevant to the shareholders, but still about the salary revision. Our productivity was very low when compared to the other banks. We insisted with the unions that we must bring up the productivity to the industry level before going for a salary revision. Our salary outflow is 23% of the total income, whereas for the industry it is only 10.5%. So we are asking our employees to improve the productivity, even yesterday, we had a meeting with all the unions in the bank. And they've also agreed to work on these numbers. Once this productivity improves, we will consider salary revision at the appropriate time. But in the meantime, all the performing employees are given a bonus, which is not the industry practice, but they've got a settlement, we have given a bonus to the employees who are performing to retain them. Across the board revision, we will consider once the productivity improves. As far as the charges are concerned, that is a normal to the industry, the minimum charge, balance charges of the ATM charge, these are all the expenses, which are incurred by the bank for running them for which have to be recovered from customers. Every service comes at a price, okay? This is the minimum which the industry is charging. We are at par with many of the banks or lesser than many of the banks. And we not more than most of the banks currently. This has to continue. This is not to make profit, the intentions to recover the costs incurring in rendering these services to the people. As for providing an oxygen plant. We have very small amount as the CSR eligibility for the calendar year we are less, which we have started spending on the COVID-related issues only for the current year as per the direction of the management. Our largest shareholder, Fairfax has invested INR 70 lakhs in oxygen plant in Thiruvalla for a Mission Hospital. And for the government hospital in Thrissur district, they are spending almost INR 2.5 crores to build a large oxygen capacity, which will be coming in to existence within the next few weeks, maybe another 2 weeks, it should be available for these hospitals. So we are spending almost INR 3.20 crores through our promoters from their own funds, not from the bank's funds. That much is spent from its bucket, INR 3.20 crores to put in 2 plants in the Kerala. And we'll continue to spend the remaining amount of CSR funds for the COVID relief. As far as the first quarter performance is concerned it is a published data available in the public domain and it is available in the website. You can go to our website, all the details which you asked for is available in that. As far as the expansion in the North is concerned, we have expanded a lot in Delhi, in Punjab, in Haryana, Gujarat, and in Rajasthan, Madhya Pradesh, we already opened quite a few branches. Chattisgarh is in the -- [ Raipur ] we may open shortly. And few more branches will get opened in the other places also. Our brand reach is very good in the southern parts. So the business comes immediately when you open a branch in the southern part. It takes little longer time in the northern parts to break even. So we will take a calculated move. We will expand in the north. We will become a PAN-India bank over a period, but we must take into consideration the profitability also before expanding in every place in any particular geography. As far as valuation is concerned, among the old private sector banks, we are a highly valued bank today. We are valued at 3x our book value. Most of the banks are valued less than 1x book value. Most of the public sectors banks are also valued at a fraction of the book value. Whereas we are valued at 3x. We must thank the market for the valuations they have given. If you do the right things, I think market value is at appropriate place, right? There are banks which are valued at 4x, 4.5x in the market. I'm sure when our performance improves, market will recognize and value us at a appropriate multiple of the book value. We will work hard for the performance. As far as the target of when will you achieve the INR 500 crores and INR 1,000 crores to be a forward-looking statements, I may not be in a position to make a commitment. But certainly, it is our ambition that we must reach to INR 1,000 crores over a period of next 3, 4 years. I think I have answered all the questions, which were raised in this question. And there is one question which has come in the chat box that also I will take it up. Mr. C.S. Ramaswamy Iyer Wasudeva, has asked a question. What is your plan in the next 3 to 5 years and 5 or 10 years? The 3 to 5 years, we'll consolidate our position in the places where we already opened and introduce all the retail products. We have some missing products in retail, we don't have a credit card. Mr. Pralay is working very hard on introducing a credit card with tie-up arrangement. And similarly, a lot of other new products are also -- the retail team is working on. We will complete our product bouquet of offering for the retail people, including the wealth management and other products within the next 3 years. Over a period of 5 to 10 years, we will emerge as a full fledged bank with a substantial market share and a bank to reckon in the market and having all products and proper proportion of asset allocation. As of now, our plan is that we should have -- we have almost 50% of our assets in the retail; 25% in wholesale banking; and almost 20% in the SME banking; and another 5% in other areas. Over a period, our intention is 60% should become the retail; 20% will be the wholesale; 20% will be the SME and others. That is the asset proportion which we are targeting, depending upon the opportunity and we will try to achieve this over a period of next 5 years. And we will become a PAN-India presence. And what are the plans for moving out of Kerala? There is no plan to move out of Kerala. Kerala is our home state. We would like to conserve it and strengthen our position in Kerala. We have opened many branches in Kerala during the last year, 9 branches we have opened. Simultaneously, we closed down some of the loss-making branches. In Thrissur district we have more than 100 branches. So that is too large for a small district. So that we are reducing, we may reduce further. But we you don't have much of branch network in the northern part Kerala. So we are expanding in nothern parts of Kerala. We will expand and consolidate in Kerala and emerge as a major player in the Kerala market. There is no plan to move out of Kerala at any point of time. Mr. Pralay Mondal, in his new avatar, what he will do? So he is in charge of the retail, IT, operations and SME also. He is mobilizing the team now. He is working on the products and processes and so he -- last month they have introduced a [ lap ] in the new avatar and other lucrative products are getting introduced. He is also talking to many FinTech companies for a tie-up and he is also working on introducing a credit card in tie-up arrangement. The focus will be on retail to start with and SMEs already a functionality. We are trying to bring in more business in the SME vertical also. These are all the responsibilities of the [indiscernible]. Thank you. That's it. If there are any more questions in the chat box, you can tell me, Sijo?

So, nothing sir.

Two questions for Mr. Rajendran. Mr. Abhishek asked top 10 defaulters list, whether it will be made available. Is any public limited company is also in the defaulter's list. And the second question was the NSDL portal CSB records will be updated so that they don't have to bother the company about these records. So these 2 questions, I think we have answered all questions.

The second one, we will make arrangements. All of us are making arrangements. We are working on already that is a facility which is introduced recently. We will get it updated and members can update their address and other things in the NSDL portal. We will do the needful for it. As far as publication of first top ten 10 defaulters list, I don't think that's permitted. We will evaluate if it is permitted, we'll make it available to them, but as we know that -- we don't have much of corporate accounts with us. All the legacy accounts are already completely written off earlier. And during the last year, the largest account, which is defaulted is only INR 12 lakhs. It's a proprietorship company who engaged in the travel business. They were running an Omni buses. They have more than 400 omni buses. Omni buses were not running. So that the account has become a defaulted. That is the largest account, INR 12 lakhs -- net of INR 12 crores. And the second account is only INR 8 crores. These are all mainly proprietorship or partnership companies. Large defaults have were not happened during the last year. So for previously, yes, there was one fitness company which has become a defaulted company. And there are 2 NBFCs, which have defaulted, but the major portion is recovered from them, and these accounts are closed. So none of the major accounts are pending in the NPAs list. Either they are fully provided for or written off already. And then there are 2, 3 cases, which are there in the IBC along with other banks, some recovery is expected out of them. So we don't have any large defaulters in our books at present.

So this is regarding the inspection of documents, we have uploaded all the documents in the NSDL portal. If we receive any specific request from Mr. Abhishek, we can provide all that document to you. So these are online inspections, the condition is that we have to get a specific e-mail from the Mr. Abhishek. And it's available till the conclusion of the AGMs.

Thank you, Sijo.

I think all the questions were answered. With that, I will hand over back to the Chairman for the conclusion.

Thank you, Sijo. Thanks, Mr. Rajendran. Members may note that the voting on the NSDL platform will continue to be available for the next 30 minutes. Therefore, I request members who have not cast their vote yet are requested to do so within the next 30 minutes. The Board has appointed Mr. P. D. Vincent, practicing company secretary, managing partner, SVJS & Associate, Company Secretaries, as the scrutinizer to supervise the e-voting process. Further, I hereby authorize Mr. C.V. Rajendran, MD and CEO to declare the results of the voting and place the results on the website of the bank at the earliest. The voting results along with the report of scrutinizer would be intimated to the stock exchanges and would be uploaded on the website of the bank and on the website of NSDL as well. The resolutions as set forth in the notice shall be deemed to have been passed today subject to receipt of a requisite number of votes. We had 64 members participating in today's 100 Annual General Meeting. Now that all the items of the notice of the meeting have been discussed and taken up for e-voting, I herby declare the proceedings as closed, pending declaration of the results of the voting. On behalf of the Board of Directors, I thank all the shareholders for attending the meetings and also kind cooperation assistance extended for the smooth conduct of the meeting. I am also taking on record that the prescribed number of members required for constituting a quorum was present throughout the meeting. Stay safe. Thank you all. Thank you very much.