Indian Bank (INDIANB.NS) Q3 FY2026 Earnings Call Transcript & Summary

Sure. Yes, good evening, ladies and gentlemen. I welcome you all to Indian Bank's post results conference call for the third quarter of financial year 2026 hosted by Emkay Global. From the top management we have with us Sri Binod Kumar-ji, MD and CEO; Sri Ashutosh Choudhury, Executive Director; Sri Shiv Bajrang Singh, Executive Director; Sri Brajesh Kumar Singh, Executive Director; and Ms. Mini T. M., Executive Director. First, I would request the MD sir to briefly summarize the key highlights from the Q3 FY '26 results and also provide strategic direction on growth, margins and asset quality. Post which, we have the Q&A session. Over to you, MD, sir.

Good evening all, and thank you, Anand-ji, for hosting and all the participants for joining. We have just published our results and total business of the bank has grew by 13.34%, INR 14.30 trillion. Deposits reached INR 7.91 trillion with a Y-o-Y growth of 12.62%. CASA also with a growth of 9.86% reached to INR 2.96 trillion. Advances, also, one thing I will highlight, my bulk has remained at the same level, whatever it was in the September. Overseas, advances grew by 14.24% and reached INR 6.39 trillion. Corporate grew by 8.16% and reached -- crossed INR 2.01 trillion. RAM grew by 16.65% and reached INR 3.90 trillion. Retail grew by 18.54% and reached INR 1.36 trillion. Agriculture also grew by 15.14% and reached INR 1.49 trillion. MSME grew by 16.41% and reached INR 1.05 trillion. My CD ratio is 80.77%. Coming to P&L, net profit grew by 7.33% and reached INR 3,061 crores. Operating profit also grew by YoY 5.79% and sequentially 3.87% and reached INR 5,024 crores. First time we have crossed operating profit of INR 5,000 crores. Net interest income, Y-o-Y growth, we have seen 7.5% and Q-o-Q 5.27% and reached INR 6,896 crores. NIM, domestic, it has improved from sequentially from 3.34% to 3.40%. ROA, also, I mean, there is a marginal decline from 1.32% to 1.30%, but that is well above the guidance, whatever we have given of INR 1.20%. 1.32% is for the 9 month, ROA. Provision coverage ratio is at 98.28%. Cost-to-income ratio of 46.90. Credit cost, 0.21%. Capital, we are well capitalized 16.58%. INR 2,000 crores of year Tier 1 bond has retired, but we have not gone for raising fresh Tier 1 because we are still well capitalized. CET1 is 14.54%. Gross NPA has come down to 2.23%. And net NPA, 0.15%. Fresh slippage during the quarter has been INR 997 crores and recovery is INR 1,453 crores. Recovery, if I talk of the 9-month recovery, 9-month recovery is approximately INR 5,200 crores, to be precise, INR 5,153 crores against a guidance of between INR 5,500 crores to INR 6,500 crores. So we are on track of that. Slippage ratio has come down from 0.79% to 0.69%, which is within the guidance. Slippage in absolute number is also only INR 997 crores. SMA, it has come down substantially. There is substantial improvement in SMA from 11.88%, it has come down to 5.05%. SMA 2, on top of it, it seems like it has gone up from INR 632 crores to INR 3,689 crores. But there are 2 PSU accounts, which keep on oscillating between the SMA -- from at times, it is in SMA 1, 0 or 1 or 2. So because of that, if we take that number, SMA 2 is also very much under control. My loan -- I mean, MCLR-linked to loan book is 46.07%. And out of that repricing in this quarter is also due of around 37%. Next quarter also because wherever quarterly reset or half yearly reset is there, that reset. So that is 20%. Deposit also repricing is due 18% in this quarter and 53% in next quarter. Many initiatives we have taken for CASA. CASA, like salary account, as I have been discussing in previous quarters also, we are focusing hugely on CASA -- salary account also. And this quarter, we have provided fintech solution to around 22 different state government departments. We have added non-SMA account of more than 1,000 accounts. And average balance in saving fund accounts has gone up from INR 26,000 to INR 36,000. Similarly, average balance in current account has also gone up from INR 2.12 lakhs to INR 2.44 lakhs. And we have launched 5 new products in July. So in that product, we have opened more than 5 lakh accounts, and we have garnered business of INR 1,500 crores in that. Account opening, account opening also, we are seeing good traction. Whatever we would have opened last year, we have surpassed that in 9 months itself, saving fund also current account also. And sanction, also sanction whatever we would have sanctioned in the last entire financial year, INR 2.62 trillion. So far in this 9 months, we have already sanctioned INR 2.95 lakh crores and we are also focusing on non-fund business, and that's why there is improvement in the -- if you see, processing charges and LC BG commission, there is improvement we have seen in our traction. AUC recovery, we have guidance -- given guidance of INR 2,000 crores. We have already reached that figure INR 2,000 crores, we have already reached. NCLT recovery, one good account, one chunky account has been recovered during this quarter in that around INR 300 crores recovery has come -- recovery through NCLT is INR 338 crores. We are digital -- on digital front, we are investing hugely. And going forward, I expect that benefit of that will -- has already started accruing, but not to the extent we desire. So we are taking various measures for increasing our digital adoption so that benefit of that may come to us. Now I will request my colleague, Mr. Ashutosh Choudhury to discuss about the digital products and thereafter, we can proceed with -- and last point, we have a good pipeline of around 50,000 in the corporate credit. Over to Ashutosh.

Good evening all. The bank's digital business footprint is at INR 1.98 lakh crore for Q3 9 months ended FY '26. That is a growth of 66% year-on-year. And cumulative digital business has crossed INR 4.52 lakh crore. So our fintech partnership has gone up to 169. The digital transaction has grown by INR 12.54 crores. We have 147 digital journeys now and our mobile app rating is 4.4. Like the digital transaction is 94% and the branch transaction is 6%. In the digital banking, the mobile bank user and the transaction has grown 21% and 14%, respectively, Y-o-Y. The UPI users and transaction has increased by 21% and 28% Y-o-Y. So the users of Internet banking has grown by 5%, and the debit card has grown by 7%. So our mobile banking app has 2 features. One is for retail and one is for MSME. In the retail, we have a total number of 2.25 crore customers and having a financial transition value of INR 50,000-plus crores during this quarter. The best part is that our MSME app, which is launched last financial year in February '25, has a customer base of around 25,000 customers and the platform has a log-in of 2.42 lakh and transaction value -- their financial transaction value is INR 14,000-plus crores during this Q3. So the digital business against a target of INR 2,25,000 crores, we have already achieved INR 1,98,350 crores till 9 months ended and we are pretty sure to surpass this particular target. If you see the digital adoption, it has consistently increased year-on-year. The liability has increased from 37% to 43%. The retail asset has increased from 74% to 92%; agri from 83% to 96%; MSME is from 86% to 94%. We have launched 10 new MSME journeys, so that is yet to pick up. That is why the overall is showing a 73%. The EBG issuance has grown from 4% to 27%. So last quarter, we launched a separate set of niche customers, that is Virtual Banking Experience customers. In a single quarter, we have reclassified 6.33 lakhs of customer into that segment. Then with RBI ULI also, we have sanctioned more than 1 lakh of loans amounting to INR 12,000-plus crores against a target of INR 9,000 crores. We have implemented 13 initiatives in the last quarter, and the same kind of pipeline is there with us in the future also. If you see for the customer engagement, we have launched a virtual ATM. We have launched a lot of things, but I'm only concentrating on virtual ATMs, where we have through an aggregator, we have tied up with the 6 lakh plus merchants where the cash can be withdrawn. So we have also introduced a new FASTag system during Q3 and there are some ongoing projects. The CRM project, 2 models we have launched, another 3 models we are going to launch soon. So Employee Assist, it's a new concept that we have introduced in our bank for our own employees to assist them about the process, guidelines of the bank, and banking industry. Then, there are -- we have also started using agentic AI and some of the use cases are in customer onboarding, corporate ecosystem, than lead nurturing and management, personal finance management segment, then grievance redressal system and tracking suspicious transactions. So these are the use cases where we are going to use and you are using also. If you see in the operational efficiency parameters, we have migrated to cloud for our optimum utilization of hardware, then we are going for a data lake project and some of the process, we are planning for robotic process automations. So for -- well, we are going very fast on digital and also swiftly moving towards our intelligent banking system. We have -- also, we are planning to establish a Resilience Operation Center in the near future. With that, sir, the digital part is over. Thank you.

Only -- before coming to Q&A only one thing I will add. Last quarter, I have made provision of 5% on SMA 1. This quarter, I have increased it up to 10%. So additional INR 380 crores provision we have made on SMA 1.

[Operator Instructions] Yes, we have a first question coming in from Ajmera-ji.

Yes. Thank you, Anand, for giving the opportunity first as usual. And compliments to you, sir, for the fantastic quarter. I think you're not only -- according to me, not only surpassed the operating profit, the highest operating profit but even the net profit also. I think post-tax and provision also is the highest as I see in 8, 10 quarters. So it is probably maybe the highest ever net profit also. So my compliments to you and the entire team of Indian Bank.

Thank you, Ajmera-ji.

Even on other parameters also you performed very well. Your asset quality also has improved and your net NPA now has gone to 0.15%, 15 basis points. So below that, there is hardly any scope for getting it down. So the provision may be not be required so much. But having said that, sir, my first question is on the -- basically on the ECL that the provisioning will continuously still will be required to be made. And you said that you have made the additional provision on SMA 1, even in this quarter also of INR 380 crores and some other floating provision. So where do we stand as far as our preparations for the ECL implementation, which is coming soon is there? And how much -- I mean, are you going to absorb everything before the April 2027 or you are going to take the benefit of those extended period allowed or permitted?

See we have assessed the ECL requirement on various permutation and combination. So I'm not giving that number because that will not make sense. Because we have also -- I mean, that draft guidelines was open for discussion and for comment. So we have sent some comments to RBI. And I expect -- I mean, don't know, but let us see what comes finally in the guidelines. So based on that, but as far as my preparedness is concerned, my endeavor will not definitely to take 5 years. So first year itself, we will -- whatever we have to do, we'll do. Quarter-wise, we'll see, let us see how many quarters that will take. But definitely not more than 1 year. So that much I can tell you. And this philosophy will continue that, wherever we can make some provision so that the quarter we shift to ECL impact is minimum.

Sir, in your -- in the initial remarks, you had covered some, I think, SMA 2. But as I see the total overall number of SMA 2 of this quarter is INR 4,309 crores as against the last quarter of INR 1,448 crores. So I just couldn't hear properly. I mean, what is the explanation that you said you are comfortable on that.

Yes. Yes. So there are 2 PSU accounts where a state government guarantees is available. So last quarter, that was in SMA-0. This quarter, it has come to SMA 2. So I mean, chances of slipping these accounts are, I mean, very less.

How much is that quantum of these 2 state government accounts?

3,000.

Okay. So basically, we are only 1,309 if you remove those state government accounts.

Yes. Yes.

And there is no chance of slipping them in NPA. Isn't it, for that?

No, no.

Sir, this -- as far as the overall business growth is concerned, of course, on an annualized basis, still we are at comfortable this thing. But if you see the 9 months numbers, on credit growth, we are 8.62%. And on the deposit side, we are 7.29%. So you have a strong pipeline, you said. But at the same time, on the capital adequacy wise, we are at almost -- I mean, nowadays, whatever the normal CRAR is there of the banks, we are at the little lower side of, say, 16.58% of the CRAR. So considering and CD ratio is 80.77%. So considering all this, whether you will reach the target, you will surpass the target given? And whether your pipeline and the other adequacy is available that you reach the target or cross that on the -- especially on the advances front?

Yes, yes, whatever guidance we have given, we'll surpass that. There is no doubt in that. Because see, even in this quarter, I have sold IBPC of INR 7,000 crores. Not sold, that will add to my growth only.

No, no, that is there. But I mean, where is it coming from? Like your corporate, I think you said INR 50,000 crores is the sanction...

Pipeline is there. So yes, yes, RAM, we are seeing good growth. Retail also, if you see, we have grown by 18%. MSME also, we are seeing good growth of 16%. Agriculture also 15%. So good growth is coming through RAM sector. And in few sectors, in corporate also, we are seeing good demand like green finance. There are various subsets of green finance like EV, solar panel manufacturing, solar power plant itself. So few sectors you are seeing good demand. And then one, logistics sector is also coming up. So lot many proposals we are getting for the warehouse development. So we are seeing good, yes.

Sir, last question in this round, sir. On the treasury front, I think we are doing reasonably well. So what is the -- going forward in this remaining quarter of the FY '26, where do we stand as far as our treasury performance is concerned?

See, treasury, we should be able to maintain -- I mean, although if you see yield has hardened as compared to the last quarter, but still we have generated profit of around including ForEx around INR 500 crores. So treasury, next quarter, I'm expecting somewhere around INR 350 crores. So there will be -- I'm expecting some moderation in the treasury income. So around INR 350 crores, I am expecting that.

Okay. So it is a little bit tapered down and...

But if you see Q2 also was only INR 330 crores.

Yes. But in this quarter, it was even investment, if you see in the other income also, it is INR 342 crores treasury. So I mean, the estimate of INR 350 crores overall looks...

Yes. Yes.

A little conservative. And then impact of this new labor code also will come sir, now, I think. So there also the gratuity and the leave encashment, I mean all those factors are there, has that been assessed for the calculating the profitability for...

Yes, yes, assessed. We have impact of only INR 56,00,000 to be precise, INR 55.86 lakh.

Next question we'll take from [Kayuri].

I just wanted to know whether the asset quality and loan growth will incrementally improve by...

Sir, were you able to listen to the question?

No. I mean, her voice was breaking. Can you repeat?

Can you hear me now? Sir, I just wanted to know whether the asset quality and the loan growth will incrementally improve for by [indiscernible].

I think she's asking whether the asset quality and loan growth will improve from hereon.

Got it. So asset quality, we are already at very good level. Gross NPA 2.21%, net NPA, 0.15%. So what improvement, I mean, we will maintain that. I have already given guidance of less than 2%, we'll maintain that. Net NPA 0.5%, we can do 0, but then after 0 what to do. So we will maintain that and expecting slippage ratio, I'm also expecting that this level of slippage ratio will continue. Only aberration remains March. In March because branches where people go for audit to the branches, at that time, some MOC is being passed by them. So to that extent, there will be some impact on the asset quality. But after that, it remains steady. Credit growth, I'm hopeful that, see, credit growth is also a function of the how economy is doing. If you see most of the estimates for credit growth is also coming around this calendar year also next calendar year also, they are giving good guidance of between 6.5% to 7%. So my expectation is even next year credit growth, whatever we are doing -- we are maintaining, we will be able to sustain that.

Sir, in that context, how do you expect the deposit growth to pan out, right? Now we have scope to improve the LDR, but deposit growth in that system certainly remains a challenge. So what is that you think like how deposits will mobilize? How CASA is going to come through? And whether that's going to be a challenge for you?

Yes. Yes. See, I'm part of the industry. So I cannot be aloof of them. So impact of that will come definitely on us. And already, if you see after December, already bulk rate has gone up by 20, 30 basis points because credit growth is good, deposit is not coming. And CASA, CASA, what I'm feeling CASA is a structural change. Behavior of the people is a structural change, and they will shift to other modes of investment. Having said that, we are taking so many measures on CASA, and we are instead of relying on 1 or 2 bulk, chunky deposits, we are trying to make it granular so that we can have float volume is there. Then that's why if you see a lot of efforts are being put on the technology side, QR code, salary account, cross-sell. So because of that, we will be able to -- I mean, not increase CASA, but I mean we'll be able to maintain or maybe marginal decline. Going forward, I may be not only in this quarter going forward, I am seeing. Not immediate future, but going forward, I mean, maybe, may not require next year as a part of the strategy. But going forward, maybe if deposit is not coming, bulk is very high, then we have to see other sources of deposit raising. Like we may go for some bond, et cetera. So these sources will come into play going forward. So net to net impact will be -- there will be some moderation, some impact on the NIM. Ultimately, even if we are getting so many facility in our saving fund product or credit cards. So ultimately, these are adding to our cost only. So it will happen, but it will happen gradually. It should not -- it's like overnight, it will drastically change.

Sure, sir. Sure. Next question we'll take from Parth Gupta. [Operator Instructions]

So sir, on Slide 19, within the OpEx line items, the insurance cost has gone up materially during this quarter. Any specific reason for the same?

Yes, yes, DICGC, they have changed some formula. I mean a few accounts for which they were not asking earlier the premium. They have added these accounts, and they have also asked for the -- for yesteryears. So DICGC cost itself has gone up by INR 128 crores. Out of that INR 82 crores relates to previous years, remaining relate to this quarter, which will also be going forward, that will continue. Around INR 60 crore increase in DICGC premium will continue.

Okay, sir. And my second question is within the -- again, within the OpEx within the employees benefit, that line item has also gone up as in the increase in the line item is much more than the overall OpEx growth. Anything to highlight there, sir?

AS 15, we have made. If you see last quarter -- from last quarter, it has gone up by INR 102 crore. So that is based on the -- purely based on the actuarial evaluation.

Next question we'll take from [Darshil].

Hopefully, I'm audible.

Yes, yes, audible.

Sir, you've previously given guidance in regards NIM and ROA, but we are already outperforming that guidance. So are we -- can we -- is there a positive upgrade that you would like to issue because I think we were saying around 3.1% to 3.3% in NIMs, and we are already at 3.45%. And similarly, ROA is also -- we are performing much better than what we've guided. So maybe for next year and this year, are we upping the guidance, sir?

I mean this year, even if I don't upgrade already, I think we will surpass that, both NIM and ROA. ROA also, I expect for the year also, it should remain around 1.3, it should remain because in 9 months, it is 1.3 -- but this quarter, maybe we have 1 or 2 basis point ROA impact -- negative -- sorry, NIM negative impact may come because MCLR book is repricing around 37% in this quarter, including a 3 months, 6 months all. Out of that, 1 year MCLR is around 19% is repricing. And impact of 25 basis rate cut, 2 months will come in this quarter. So there may be some impact out of that. But part of that will be offset by deposit repricing, which is 18% in this quarter. So maybe 1 or 2 basis points, maybe it may go down in this quarter.

Okay. Okay. But and sir, for FY '27, so we can have the same level or higher than this also, like can we find...

Let us see because see, as I told, after December, already bulk rate has gone up by 20, 30 basis points. So let us see how this quarter pan out. Then it will be better to give guidance for the next quarter, I mean next financial year.

Okay. Okay. Okay. Fair enough, sir. And sir, just wanted to understand like when you say that there is some cost of fund is increasing for you. So structurally, what do you feel that there will be more intensity like there will be pricing issues like from other banks also that will push this cost of funds higher or how do we see that, sir, because our reach and network is there, we'll be kind of shielded from that. So how do you see that intensity, sir?

No, no, definitely. See, if -- because around 18% of my deposit is through bulk. Even if you see against a rate cut of 125 basis points, even term deposit rate cut has been around only 60, 70 basis points. So impact will come -- we will also be impacted. If bulk rate goes up, then definitely we'll also be impacted. Cost of fund will go up.

Okay. Okay. Okay. So we can -- for next year, maybe we can expect some cost of funds going up?

We will see because see, many things come into place. So some strategy also evolve. We are also working very -- I mean, on how to at least maintain CASA share. So many things we are working. So let us see, but I mean, that will purely be the function of how deposit -- I mean, term deposit and this comes out, term deposit and bulk deposit rate, how it comes out.

Okay. Okay. Fair. And the last question from my end sir. Like credit cost, what do we expect, sir, going forward, like for this year and next year, sir?

Credit cost we'll maintain this level, I think we'll be able to maintain. Although I have given guidance of less than 1%, but I think at least next quarter, I will be able to maintain this around 20 -- maybe a little bit, it may go up because as I told in last quarter through some MOC, some slippages increases. So maybe a little bit 1, 2 basis point here or there.

Next question we'll take from Jai Mundhra.

A couple of questions. Sir, first is this IBPC transaction that we have done. Sorry, I missed the amount, what was the amount?

This quarter, we have done INR 7,000 crores.

Okay. So sir, this INR 7,000 crore you have sold, but you could have received some NII, right? Is there any positive -- I mean, there will be some positive impact on NIM. Can you quantify, sir, if possible? I mean how much you would have earned without being in denominator thing? Rough number will also be okay.

INR 240 crores. Percentage term, INR 240 crores absolute number.

3%, 3.25% for annual. So half yearly, it was half yearly. So 1.87% roughly on INR 7,000 crore, that's going to be roughly 8.6 -- to roughly [1.6%] annually.

So percentage you can calculate around say, differential, you can say around you can take 2%. So on INR 7,000 crore, 2% means around INR 140 crores.

All right. So INR 140 crores is the additional interest earned on this.

Not interest, on interest saved.

Correct. Saved. Right. And there is no implication on the fee or other income, right?

No, no, no. No implication.

Okay. Sure. And secondly, sir, I was under the impression that some of the -- let us say, you are midsized to small-sized bank and there is a lot of news flow about M&A merger. So other smaller banks, they are showing much faster growth, right, to maybe to avoid any likely M&A, right? And at the same time, you are actually shedding INR 7,000 crore in this quarter and last quarter, you also shed. So I was thinking that maybe you will show more base versus you are actually keeping yourself lean.

That decision of amalgamation will not depend on the 1 quarter growth. So that will get, of course, depend on long-term viability.

Okay, sure. Secondly, sir, if you can specify the total SMA , now you have 10% provision on both SMA as well as SMA 2. And if you can specify, sir, what is the absolute amount of SMA 1 and SMA 2 and SME 0, if possible?

Yes. SMA 0, total SMA book is INR 31,488 crores. Out of that, SMA 0 is INR 12,000 crores. SMA 1 is INR 8,000 crores. SMA 2 is almost INR 11,000 crores. So INR 11,000 crores -- [INR 19,000 crores], 10%.

Right, right. Okay. And sir, on ECL number. So assuming I mean, do you intend -- do you have a number in mind which you want to reach? Or now you have 10% on both SMA 1, 2 you are there?

No, no, not there. Of course, because see, that guidelines say, we have simply one guideline. They are saying LGD of 65%. That itself is huge demand will generate. Then they are saying on restructure, they said all 100% PD. So huge amount will be required. So many things, let us see how it pans out. But yes, of course, I will be working on to minimize the impact going forward as far as possible. In the first quarter itself or in the second quarter so that we can absorb all these.

Correct. Correct. So sir, what would be your assessment, let's say, you have around INR 1,900 crores as standard assets provisioning. Where do you want to reach? I mean, would it be like INR 5,000 crores, INR 10,000 crores, how much will be that amount?

See, I don't have -- I mean you cannot reach unless you have a profit. So I have to worry of the ROA also, I have to see other parameters also. But any surplus whatever we are getting, maintaining ROA, et cetera, we will try to give cushion to the balance sheet. Not any specific number in mind.

Okay. Sir, other banks have given like 1% of RWA number. So that is why I was just trying to benchmark. So let's say, your ROA number -- I mean your RWA number would be around INR 4 lakh crore. Other banks have said around 1% of RWA.

That is -- Jai, I'm telling you scenario. So if they are accepting to the request of the banks that restructured asset, not 100%, they still makes 50%, there will be huge impact. They accept to the request of, say, LGD from 65% to 60%, there will be a huge impact. So I mean, the banks, we are giving, their best case scenario there is worst case scenario. So though who is talking, what we don't know.

Next question we'll take from Antariksha.

Am I audible?

Yes.

Sir, just 2 questions. One is in the jewel loan or gold loan portfolio, can you tell us what is the incremental LTV that you're doing business in, both in retail and in agri?

Somewhere around 65%. LTV 65%, mic on, in mic you can also tell.

Sir, in agriculture, we are having 75% sir now, as of now. And other retail and MSME we are ranging from 65% to [78%].

But we have done one thing. We are pricing taking price of the gold on the moving average.

Okay. So it's 1 month, 3 month moving average, something like that, isn't it?

Last 30 days or last day, whichever is less we are taking.

Okay. Okay. Sure. And the second thing is, sir, you mentioned about bulk deposit rates going up. Incrementally, I'm assuming these would most likely be about 3 months, 6 month tenure, right?

Up to 1 year also.

Across all the buckets.

Across all buckets.

So if you just do a blended duration, what would be the incremental bulk rate today? I mean if you were to do fresh borrowings, be it 6 months, 1 year whatever it is?

Not less than [6.70%], [6.80%].

So then I was thinking, if your incremental borrowing of short tenure loans is at 6.70%, 6.80% and there are some loans which we are -- total yield on book today is about 8.1%. And so fresh shield, I'm sure would be less than that. There is a spread of 100 and 125 basis points on an incremental basis for some loans. If you take the most expensive source of liability at the most cheapest cost of assets. So if you load your costs and some credit cost on that incremental basis, there are some loans which are hardly making ROA, why do...

Yes, that is the reason, if you see our corporate. Corporate, we are, I mean, very careful in giving the rates.

But if that is the case, with you, it should be true for the whole system, right? So then...

Yes. Yes. It's true for the whole system.

Why is pricing still so low is my question.

That, see everybody pursue their different strategies. Somebody pursue aggressive growth, somebody thinks about the, I mean, moderate growth, somebody thinks about bottom line. So it depends on the strategy of the person, I can say.

Okay. Sure. Okay.

And bulk, if you see, for us, bulk is around only 18% of the total deposit.

Yes, yes, you mentioned that, correct. And that number should be going down, right, because the rates are high?

Going down, I mean, it depends. Going down, going up, cannot say. That will depend on the market situation. But endeavor will be to get it down or maintain at this level.

Next question we'll take from Ajmera-ji.

Yes, sir. Sir, my one question was on -- it's basically a general question, but it is impacting everyone today that what is going geopolitically in the world the kind of disturbances and, of course, started with Trump tariff and now so many things are happening. And it is affecting various businesses at various levels. So first thing is that have we made any assessment of a kind that all these sanctions and so many turbulences and the tariffs and other things, whether our -- if we look at our customer profile, even a smaller business man, MSMEs or this thing that -- is there any sizable impact going to be anywhere and are we prepared for that?

So I will say, reply you in 2 parts. First of all, what will be the impact on growth because of the geopolitical tensions. This year also, a lot of geopolitical tensions are there, but still our economy is doing good. So I expect our economy also, and if you see most of the external agencies also, are saying that Indian economy will be the fastest-growing economy and will grow in the range of 6.5% to 7%. So don't see any challenge on the growth part, number one. If we don't see any challenge on the growth part, I think the impact on -- I mean, asset quality would also be not huge. Next question, any particular impact to the tariff. Tariff, yes, we have assessment. We are not seeing much impact. Our total export business is very miniscule. I mean, I have exact number, but it is so small that I don't want to tell you. And within that also, exposure to U.S. is only 4% to 5%. So I'm not seeing any much of the impact of that.

Okay. That's good to know. And sir, one last this thing, on gold loan portfolio. And in that also, the bifurcation between the gold, agri loans, and non-agri loans and what kind of yield are we having on the gold loans of the both agri and non-agri? And in our growth plan, are we aggressively pushing gold loans? And similarly, our NBFC -- funding through the NBFC or NBFC funding, whether the -- I mean, you call it as a co-lending or direct lending. And what is the picture there? And are we -- I mean similarly bullish on that also?

No, you see, gold loan is a very safe type of loan. Only thing or only risk we carry is some fraud happens. So we have put in various measures to avoid fraud. And since we were traditionally doing so our system are robust. So don't see much of the challenge on that. Yield, we are getting good yield. You can tell? 8.7, 8.70, we are getting approximately.

That is overall or non-agri?

Overall.

Overall.

Good. I mean it's a reasonably good yield. Yes, sir. And on...

Next question we'll take from Darshil.

All my questions are answered. Just one question from -- my last question from my end. So in terms of credit growth, when we are trying to reach double-digit 10% to 12%, is there -- are we looking that maybe next year with good GDP numbers expected and good growth happening, can we aim for a higher maybe mid-teens level of growth? Is that -- or maybe just 15% or something? Like is there any type of plan being formulated to reach that growth? Or are we willing to just have around top line growth of 10%, 12%, sir?

I think 12%, 13% growth is good, Darshil. 13%, because see -- if you pursue very aggressive growth, then you will start asking why your NPA is going up. So because of that reason, we are pursuing very -- I mean, growth so that our NPAs should not go up. I'm more -- remain more worried about that. Risks should not build up, see because risk is always built up in a good time. So I always remain careful of that.

Last question we'll take from Sushil Choksey-ji. Sir, keep your questions limited. And sir, before I think when Ajmera sir was asking one question which came in a chatbox was that have you done or basically extended any moratorium to the MSMEs? And if yes, what's the quantum?

MSMEs, you mean to -- because of our ForEx business, I mean which was carried...

The export related disruption, which has come -- yes, yes.

So far we have not extended.

Sure.

Congratulation to Team Indian Bank for excellent performance and market is also rewarding.

Thank you, Choksey-ji. Yes.

Sir, my first question -- if I take 12, 24-month outlook, what would be a balance between RAM and corporate book? Any board policy or direction?

We will like to maintain same ratio.

65-35?

Yes. Yes. I mean, yes, 65-35. Reason I'm telling you because see, as a responsible banking, we also need to participate in the building up of the country. And if you don't do corporate, then -- banks don't do then who will do. I mean infrastructure lending, we have to do. So as a part of a strategy, we like to maintain between the 65-35.

Second thing, sir, you -- when you are working so efficiently on RAM. On the digital stack, you have announced many products, you've launched and spent a lot of money. What is likely CapEx for the next 12, 24 months to be more efficient, more connected system, you're tapping salary account, host to a system, many other system, supply chain. What kind of spend will we do to garner a bigger buy from the existing wallet?

Around INR 2,000 crores per annum.

INR 2,000 crores per annum?

Including both CapEx and OpEx. Because majority of IT expenditure is also coming in the shape of OpEx.

Sir, it's a hypothetical question. Let's assume that our book value next year is INR 600. And if your stock is trading at nearly 1.82x book value. Will you dilute equity or equity is not required at all?

No, no. Otherwise, equity is not required at all. But if we -- that's why I have -- if you see this year, I have kept approval from the Board for QIP up to INR 5,000 crores. If you get opportunity, we can, of course. But as a partner, I mean, we don't need as of now. Already at 16.58%. So in March, it will cross 18% -- so we will not...

You may not need equity, but the market is...

Yes, yes, I don't -- I may not need.

You may not need, but if market rewards, you are willing to dilute a small...

That's why, enabling clause, that's why I have kept which I will like to keep next year also if some good opportunity is coming, we can -- I mean, get good rate, why not?

Sir, on the international book, it seems like a lot of opportunities are coming from Indian promoters specifically where you are in the geographies we are present. What is the outlook on that segment, specifically on financing entities, which are Pan-India but growing overseas. People are shifting from Bangladesh to Sri Lanka for textile, auto ancillaries are also repositing some other locations. You already said EV you're doing, battery management led to solar and other things are coming. So what kind of a situation we are in, where these kind of pipelines are concerned?

No, this type of pipeline, a good number of people, if you see, I'll give you just one number. My growth in green finance itself is around 60%. So we have good pipeline of that also. And we are open to get any opportunity. Only thing I remain cautious, only one thing always in green finance. I mean, good name we will do because many new players are coming. I don't want to take that risk and that they don't have much expertise and they ultimately end up in trouble and bring bank also into trouble. So good names, good background, good proven history, we are doing, and we remain open to that.

So your team will not create a negative impact that I'm very assured of. Sir, out of INR 50,000 crores corporate book, which you indicated, how much would be manufacturing?

Manufacturing?

Pipeline of manufacturing.

It's a pipeline of manufacturing. Bifurcation do you have?

[indiscernible] going...

Yes, yes, that I will give you to Sushil-ji. Note down. You give him.

No problem, sir.

Sir, I think in the interest of time, we'll have to take that as a last question. With this, we come to the end of the Indian Bank's post results conference call of 3Q FY '26. I now request the management to give their closing remarks.

I think we have already discussed so many things and very relevant questions had come, but we have taken few [initiatives]. 2 things I will like to discuss as a concluding remark. We are investing usually in IT and a benefit of that is accruing but not to the extent I desire. So lot of initiatives we are taking, how we can digitally onboard our customers. Lot of effort is going on that. We are seeing good traction also and good benefit also we are seeing. Like my target is say, my total business -- digital business is 15%. I want to make it take it up to 50% in next 2 to 3 years. December, January, I have internally set a target that we will double the business figure in 5 years, December -- last December. So from -- that means more than INR 25 lakh crores by December '30 -- '29, we are on track of that also. We have a plan of using AI in various -- I mean, sector -- or various segment of the banking. And we are already in discussion or in -- at some stage, use of AI in current opening. Cross-sell module use of AI in cross-sell module, personal finance management, automatic grievance redressal mechanism, then suspicious transaction reporting. So these are the few sectors we are working on where we can use AI and be more proactive other than reactive. And we will continue focusing on RAM and CASA as -- I mean, as I told, my half of the time goes on CASA. So -- but that is worth investing. That time is worth investing. If I can maintain this percentage of CASA, that will be worth investing. So with that, I mean whatever guidance we have given, we are on track in most of the parameters. Thank you.

Sure, sir. So yes, on behalf of Emkay and the management of Indian Bank, I thank all the participants for joining. Happy evening and good day. Thank you.

On behalf of all the participants, I thank the management and to you also, Anand.

And thank you, Ajmera-ji. I also thank all the participants for sparing their time and joining the conference. Thank you. Good evening.