Indian Bank (INDIANB) Earnings Call Transcript & Summary

Good evening, ladies and gentlemen. We welcome you all to Indian Bank's post results conference call for the first quarter of financial year 2026, hosted by Emkay Global. From the top management, we have with us Shri Binod Kumar, MD and CEO; and Shri Ashutosh Choudhury, Executive Director; Shri Shiv Bajrang Singh, Executive Director; Shri Brajesh Kumar Singh, Executive Director. I request the MD, sir, to briefly summarize the key highlights from first quarter FY '26 results and also provide some strategic direction on growth, margins and asset quality, post which we will have the Q&A session. Over to you MD, sir.

Good afternoon -- good evening, ladies and gentlemen, my colleague on the board, Mr. Ashutosh Choudhury, Mr. Brajesh Kumar Singh, CGMs. We have come out with our first quarterly result for the financial year, '25-'26. I will say result is in line. So total business has grown Q-o-Q 1.5% by 1.52% from INR 13.25 trillion to INR 13.45 trillion. Y-o-Y growth is 10.25%. Deposit has grown Q-o-Q 0.97%, Y-o-Y 9.26% from INR 7.37 lakh crores to INR 7.44 lakh crores. Current account has -- in fact, CASA saving current both has degrown. Current has degrown in Q-o-Q basis at 3.67%, however, Y-o-Y growth is 10.70%. Savings fund, again, Q-o-Q, there is some marginal decline of 1.76%, but Y-o-Y growth of 3.27%. CASA Y-o-Y growth of 4.23% Q-o-Q, there is degrowth of 2.03%. CASA ratio has also -- domestic CASA ratio is at 38.97% against in March, it was 40.17%. And CD ratio, domestic is at [ 78.32% ]. Advance, we have grown from Y-o-Y by 11.50% plus from INR 5.39 trillion to INR 6.01 trillion. And Q-o-Q also, there is a growth of 2.21% from INR 5.88 trillion to INR 6.01 trillion. RAM has grown by 15.93% Y-o-Y. Q-o-Q, it is 3.52% and reached to INR 3.63 trillion. Retail, retail has grown by Y-o-Y 16.52% and Q-o-Q 3.83% and reached to INR 1.24 trillion. Agri has also grown by 16.4% and Y-o-Y Q-o-Q 4.75%. MSME also where we were struggling earlier in the range of 5% to 6% growth, now we are growing in the range of 14% to 15%. Last quarter also, it was 11% to 12%. This quarter, it is 14.45%, and we reached to INR 20.95 trillion. RAM share has increased from 64.23% to 65.34%. Corporate credit has grown, Q-o-Q basis, it has marginally degrown by minus 1.41%. However, Y-o-Y, there is 1.77% growth. Here, I would like to highlight one thing. In NBFC, our growth -- our balance outstanding has come down from INR 62,000 crores to INR 56,000 crores. So there is marginal decline in NBFC and some WCDL where we have very competitive rate. Even on the last date, I allowed some money to be repaid because of the pricing issue. However, having said that, I will like to add in this quarter itself, we have sanctioned -- total sanction of INR 27,000 crores -- we have sanctioned in this Q1 itself, which was INR 18,000 crores in the last -- in the previous quarter of the financial year FY '25. So there is a growth of our sanctions around 25 -- around 50%. So we are on track there. It was a strategic decision. The net profit -- the net profit grew by Y-o-Y 23.69% Q-o-Q 0.57% and it reached INR 2,973 crores. Operating profit is at INR 4,770 crores with Y-o-Y growth of 5.97% and Q-o-Q marginal decline of 4.96%, primarily on account of 2 factors which will come in the other income also. Around INR 300 crores, there is a degrowth in other income. That is primarily because of 2 factors. In last quarter, interest on income tax refund, we have got around INR 180 crores and INR 86 crores we have recovered P&L charges, which we recover on a half yearly basis. That means September and March. So that amount was not there. So that is the reason. Otherwise, other components are on track. Net interest income Y-o-Y basis, it has grown by 2.93% to INR 6,359 crores. However, there is a marginal decline from INR 6,389 crores to INR 6,358 crores, only INR 30 crores. Other income, as I explained, it has degrown from INR 2,743 crores Q-o-Q basis to INR 2,439 crores. But if we see Y-o-Y basis, Y-o-Y basis, our other income has also grown by 28%. NIM -- domestic NIM, it has come down from 3.48% to 3.35%. That means there is a decline of 13 basis points. Return on asset, we have given guidance of in the range of around 1.20%, but we have been able to maintain 1.34% in this quarter. Return on equity also, we have been able to maintain at 20.26% where we have given guidance of around -- in the range of 19% to 20%. Cost-to-income ratio -- staff expenses, other expenses remained flat. It was INR 2,700 crores in March. Now it is INR 2,612 crores. Other expenses also INR 1,413 crores, and now it is INR 1,415 crores. So it is almost flat. Cost-to-income ratio has slightly gone up from 45.05% to 45.78%, but that is not on account of any increase in the cost. That is basically, as I explained earlier, it is on account of the -- some reduction in the other income. PCR ratio is at 98.20%. Credit cost has come down substantially from 0.81% to 0.28%. And earnings per share has increased to 88.28%. Cost of deposits, there is marginal increase from 5.10% to 5.14% because repricing of deposit is yet to happen, which part of that will start from this quarter. Yield on advances, despite 100 basis points passing on the external benchmark linked loan, we have been able to contain the only marginal decline from 8.64% on Q-o-Q basis to 8.58%. Gross NPA has come down from 3.77% to 3.01% on Y-o-Y basis, that means 76 basis point reduction. And Q-o-Q basis, 8 basis point reduction. Net NPA has come down Y-o-Y basis from 0.39% to 0.18%, 21 basis point reduction and on Y-o-Y -- Q-o-Q basis, 1 basis point reduction from 0.19% to 0.18%. Slippage ratio in the last June, it was 1.50%, now it is 0.94%. For quarter ended March, it was 1.09%. And for financial year, it was 1.11%. So we have been able to contain slippages. Recovery since September '22, our recovery is more than consistently slippage. This quarter also, we have been -- against the guidance, we have given guidance of -- recovery of between INR 5,500 crores to INR 6,500 crores. We have been able to recover INR 2,059 crores in this quarter itself. Out of that, we have also given guidance of AUC of INR 2,000 crores, but we have been able to recover around INR 815 crores already in this quarter itself. SMA, if you see SMA number has gone up. SMA-2, if you see particularly, if not entire SMA. SMA overall has come down from 13.32% as of March -- June '24 to 7.99% as of June '25. So there is a substantial decrease of around 5.32%. But if you see SMA-2 has gone up basically because of 2 PSU accounts, which were in a SMA-1, it has come to SMA-2. But now SMA-2, which was more than INR 5 crores, which was INR 4,586 crores as of June end, 30th June. Now it is only INR 815 crores. In these accounts, we have government guarantees available. NBFC exposure, I explained, it has come down from INR 62,000 crores to INR 56,000 crores. Sanction also, overall sanction, if I talk of including all the different segments of different -- I mean, different verticals. In last year, it was INR 60,000 crores. Now this year so far, it is INR 88,000 crores in first quarter itself, we have been able to achieve. Capital adequacy ratio is at 17.80% with CET is at 15.26%. RWA density has slightly come down because of -- if you see our AAA-rated exposure has gone up from INR 49,000 crores to INR 60,000 crores and also some reduction -- because of some reduction in RWA NBFC. So coming to the external benchmark linked loan, it has slightly inched up from 39.06% to 40.46%. But primarily, that is because of the dual loan being classified in retail. So retail loan is necessarily linked to external benchmark. So that is on account of that basically. Coming to the guidance, various guidance, we have given deposit in the range of 8% to 10%. It is now 9.26%. Advance, we have given guidance of 10% to 12%. It is in the range of -- it is 11.50%. CASA, yes, CASA, we have given guidance of around 40%, but our endeavor will be to maintain that 40%. This quarter, it has come down because some money has to flow in, somehow could not. So that is the reason CASA slightly come down to 39% approximately. Our gross NPA guidance, less than 3%, we will definitely achieve. I mean, maybe we can go even up to 2.5%. Net NPA, same range, 0.1%, 0.7%, 0.65%. I mean, we have already provided hardly INR 1,000 crores is there. So that does not make any difference now. NIM, we have given guidance of 3.15% to 3.30%, we are at 3.23%. And I'm hopeful that we will be able to maintain the NIM guidance of between 3.15% to 3.30%. ROA, we have given guidance of 1.20%, but we have been able to maintain at 1.34%. Credit cost, we have given guidance of 1%, we are at 0.28%. Slippage, again, we are maintaining slippage less than 1%, we will definitely achieve that. And recovery from NCLT, we have given guidance of INR 800 crores. But in this quarter itself, we have been able to recover INR 451 crores from 1 NCLT account. We don't have much exposure in unsecured or even in MFI NBFC. Our exposure is only INR 855 crores in MFI NBFC, and that is in all good rated accounts only. And personal loan is at INR 7,000 crores, so that is not a cause of concern there also. Credit card exposure is also flat at INR 561 crores. So there is no concern in that. We are focusing on opening saving fund accounts. So we -- against last year, we have been able to open 10.89 lakh accounts. This quarter, Q1, we have been able to open 12.17 lakh and current account also 0.33 lakh to 0.34 lakh. So these are the numbers. But a few initiatives which we have taken, which I would like to share with all of you. CASA since is a cause of concern, we have taken some initiative on CASA. We have launched 5 new CASA products like for one we have opened for MSME sector, one also we have opened for women also, one for pensioners also, one for professionals also and one for IND SAMPOORNA for salaried accounts also. We have given many benefits in that. So hopefully, that will help us in garnering some CASA. And otherwise, also, we have taken some initiatives for CASA, which we will explain subsequently. We have very recently opened 51 branches, which will definitely help in garnering some new CASA business because new branch on an average give INR 20 crores to INR 25 crores, INR 30 crores business in a year. So these branches will add further value to us. And this is our 119th year. So we are planning to open 119 branches in this financial year. So 51 we have already opened, around another 68, we are -- we will be opening 69 more branches. A few initiatives we have taken on the digital side. We have launched a lighter version of our IndSMART app for the transaction only and UPI, we have launched. So with the expectation that we will be able to -- I mean, our customers use our UPI instead of going to another platform. That is the motive behind opening this -- launching this app. Then we have also opened MSME business app so that people can take kind of loan on their own instead of visiting to the branches. So around 13 digital journey we have launched in MSME. So that will further help in getting the business. Then KCC digital journey wherever land record is digitized. In these states, we have launched a digital KCC journey. Senior citizen branch, we have opened one senior citizen branch and let us see how that pans out. We have expectation that we will -- not CASA, but we will get some good sticky deposit at least in that branch. And we are really providing good services in that branch. We have Agentic AI, we have launched it for collection. So that will further help in containing our SMA and slippage. And we are also trying to automate corporate credit assessment. So in our Board note, around 10 sections are there. Out of that, 4 sections we have digitized and remaining we will take in a staggered manner. So these are the few initiatives we are going to -- we have taken. And on digital side, we have taken some initiative, and we are going to take like CRM, we have started and by September end, I think we will be going for few of the -- going ahead with a few of the services we will start in that. Then data lake journey, we have started data lake for that. And then next-generation call center, we have already floated RFP. And hopefully, that will help us in further -- vendor has been onboarded for next-gen call center. So that will again help in reducing our customer complaint, improving customer service and resolution of the complaint. And we can use this for various purposes like for collection, for lead generation, lead monitoring, et cetera, we can use this also. We are also in the process of launching EFRMS, new software. So that will again be the revamped version of EFRMS solution. So these are the few initiatives we have taken. Further, we are also planning to revamp our training system entirely because training system knowledge gap is one thing, which I believe is cause of concern for not only customer complaint that also impacts our business. So we are -- we will be -- that will take a year or so, but we will be revamping our training center completely, the way training is imparted basically. It should be very interactive like quizes, various small quizes, presentation, case study, et cetera. So these curriculum -- we will redefine our curriculum completely. So these are the few initiatives we have taken. And Ashutosh -- I will request Ashutosh to briefly capture digital.

Thank you, sir. In the digital journey, I will just capture in the 4 different phases. The first one is the transactions. If you see our UPI transaction has grown substantially from INR 2.12 crore per day to INR 2.82 crores per day. The mobile banking transaction has also improved this quarter, INR 59 lakhs per month. The rating of our mobile app has substantially increased from 4.1 to 4.4. We have launched 11 digital journey this quarter Q1, so taking the total to 132. And if you see the digital transactions has gone up from 90% to 93% in a year. And the biggest contribution to that is our UPI channel in the digital transaction. In mobile banking, Internet banking and in the card also, we have seen good traction. In the mobile banking, after launching of our IndSMART mobile banking app in last year, we have seen a lot of onboarding in that particular app, which is user-friendly, a lot of features are available. Hence, we have seen a lot of traction in that particular category. If you see the digital business, digital business, this particular quarter, we have done INR 57,955 crores, and we are aiming to do INR 225,000 crores of digital business this particular financial year. Most of it will be from the digital asset side. One good thing we have done is that this e-bank guarantee we have started issuing, we are popularizing this. We are handholding our customers. We are imparting knowledge how to use that. That will also help a lot to the bank in nonfund business. If you see the adoption, the digital adoption has gone up substantially, more particularly into the retail side, which was 69% 1 year back. This has improved to 87%. So also the agri business from 90% to 96%. And we are putting good efforts to increase the MSME business, which is at present 78%. With that, it will grow in a good manner. The bank has also onboarded itself in the ULI platform and garnered a business of almost INR 6,350 crores. So sir has told a lot of digital initiatives. So I'm not telling all those digital initiatives right now. But 1 or 2 things that I would like to tell here. We have launched Employee Assist. So these particular things will enhance the customer experience because this assist is a chatbot, which will immediately provide all the answers related to bank's internal guidelines, process and systems, so which will help the employee of the bank to reply to the customer promptly. So rest sir has told. And one more thing I would like to tell here is that the Agentic AI for collection that we have introduced, which is right now in 2 languages, that is English and Tamil, with the success and with more use cases, we will expand it to other regional languages and Hindi. So that will help us in our collection systems, improve our collection system. And that particular Agentic AI system will definitely take it forward for our business cases in the days to come. Thank you, sir.

We will now open up the floor for Q&A session. [Operator Instructions]. Mr. Ajmera, please unmute yourself, and can ask your question.

Binod Kumar ji, compliments to you, sir, for keeping at least the -- I mean, the bottom line at least intact. You are in profit -- on the net profit front. Many of the banks are finding it difficult. And even the business growth, the credit growth of 2.21% in this quarter is commendable. Overall business also has -- so in spite of so many challenges you have met, I mean, you have given -- declared good results, good numbers. And in your presentation and Ashutosh sir's digital journey presentation, you almost covered, I think, everybody's 70% to 80% questions or the queries. So there is hardly anything to ask. But yes, there are some couple of questions on some observations and some data points for the future 3 quarters now because there is no -- you already explained everything in detail. Like one was on SMA-2. And you said that 2 government accounts are already -- I think one of them has already been regularized under SMA-1 or SMA-0. So what is the exact number of that? Now where do we stand now vis-a-vis the June number on SMA-2?

SMA -2, these 2 accounts constitute around INR 3,300 crores. So total SMA-2 more than INR [indiscernible] and INR 4,586 crores, so these 2 accounts have come out of SMA-2 and now SMA-2 is INR 815 crores only.

Yes. So that's a very good encouraging, I mean, statement from you because that was the major cause of worry that are we slipping or having the future NPAs or -- and even the NPA...

I don't think these accounts will slip to NPA...

Even the NPA provision in this quarter also is very less. So there is hardly any chance like for any further numbers going -- NPA increasing. Now sir, with this part of the benefits or part of rather, I would say, the hit of the rate cuts has already been factored in, but still some part is left out of the earlier rate cuts. And now 2 more rate cuts of 25 bps, so total about 50 bps is also expected in this year also, maybe a little -- I mean, later half or later part of the year. So where do we -- because the NIM today is comfortable at 3.23%. But going forward, will you be able to protect that 3.1% or 3.15% with this lag effect as well as the future effect on the -- I mean, effect of the future rate cuts?

I think we will be able to, because see, from this quarter onwards, bulk rate has come down by more than 100 basis points. So impact of that will start coming in this quarter. Plus rate cut has also happened in retail term deposit. So impact of that will also start coming out. In another 3 to 6 months, around my INR 86,000 crores will reprice. So impact of that will also start coming in. So I am hopeful that I will be maintaining around -- between 3.15% to 3.30%.

That's very good, sir. Sir, you have been giving a little conservative targets -- goals and achieving it. That's very good. But looking at the current trend and with your INR 88,000 crores of the sanctioned or in pipeline, I think it was INR 88,000 crores isn't it? You said...

Yes, INR 88,000 crores we have sanctioned in this quarter.

Is there any chance of upgrading the targets for the credit going to maybe 13%, 14% or we will stick to that 10% to 12% only sir?

As of now, we stick to between -- we'll try to be on the higher band of the guidance -- the lower band of the guidance, but higher band of the guidance, we'll be there.

Okay. Sir, one last thing in this round. You had said in the last quarter's meet that you are not encouraging much -- I mean, the co-lending or increasing your book by participation by others because you are not fully geared up or prepared digitally. Your digital capability is not there to that extent. So whether any change is there now? Would you be looking for those kind of arrangements to increase your overall loan book? And secondly, coupled with this, with RBI now relaxing the collaterals, gold collateral for the agri loans of less than INR 2 lakhs, do you think that some major chunk can go there now when you can accept the collateral and give the loans?

No. Actually, what had happened, let me explain you. Co-lending, our -- we are still not in preparedness for our digital platform. So as and when our digital platform is ready, we are not against co-lending, only technological requirement is there. So as and when we have technological requirement, we can go up for co-lending, number one. Number two, agriculture [indiscernible] this gold loan up to INR 2 crores, they have allowed now to take...

INR 2 lakhs, INR 2 lakhs.

INR 2 lakhs, if they are willingly providing. So when draft guidelines came, we have already initiated for shifting this gold loan to retail loan. So now at least with this, we can further take them as agriculture.

The last one is, sir, on the treasury. Indian Bank is known for making very good treasury profit, good arbitrage, good arbitrage even in the foreign currency. So going forward and with the rate cuts already there and further rate cuts coming, do you think that we will make some bumper -- good profit on the -- from the treasury in the remaining 3 quarters?

No, definitely. So even if you see last quarter also, we have from ForEx arbitrage, you can say, we have earned around INR 158 crores. And treasury profit, we will book as per requirement because, say, if I sell some of the higher yielding, then again, whatever we'll purchase that will be low yielding. So we will book profit as per requirement only. I mean, not a very bumper or something like that, very...

Okay. Just if you can tell me any buffer provision, which we still have now in our books?

No, see, we have various policies for providing on -- even on standard assets. So we are following that policy. And we are making -- like I may share with you, like on SMA-2, we have a policy of providing 10%, which is not required, but we have a policy. So similar, there are various pockets where as per our policy, we keep on providing.

We'll take next question from Jayant Kharote.

So the question is on the asset yields. How much of the current rate cut has been passed on? And also, if you could highlight on the MCLR book, how much of the book would be corporate where competitive intensity could sort of drive some repricing decisions for us?

See, MCLR, my MCLR book is 52% and external benchmark linked is 40.46%. And within MCLR, 1-year MCLR linked is 41%. So a substantial portion of even MCLR is linked to 1-year MCLR. Coming to your question of...

Transmission, how much of...

Transmission. So external benchmark linked is immediately, we have on the very next day of the rate cut, we have passed on. So around 40% of the book, it has already been passed on. Coming to the MCLR, since cost of deposit has not come down. So although in last 3 months, MCLR has come down by 5 basis points each month. But going forward, only MCLR will start coming down as and when our cost of deposit starts coming down and marginal cost starts coming down.

Sir, the question is on margin trajectory, would you expect the second quarter margins to take a further hit because of the 2 months that will be left?

Yes, yes, there will be some margin reduction further.

And you're still comfortable with the full year guidance of 3.15% to 3.3%.

3.15%. I think we'll be able to maintain unless there is some very aggressive rate cut, then -- of course, then we will have to think. Otherwise, we'll be able.

Sir, last question on the deposit mix. So there is some pressure on deposit growth. And we've seen the CD books of a lot of banks rising. How comfortable are you with the mix of CDs moving up? And if you could also help us understand what is the growth in that book?

No. Just -- let me explain you why my credit deposit growth has not been there. If you -- I mean bulk, I'm saying, including CD and bulk also. So that book in March was 1.41%. And in June, it is only 1.45%. So only hardly INR 4,000 crore increase we have taken. So not much of bulk, we are not taking very aggressively because that is at a cost.

And are you comfortable growing the bulk book in case retail falls short to fund your growth?

I mean if no option left and still we are making some margin, we will.

Sorry, the question is essentially growth versus margin. You will pick growth over margin?

No, no. We will strike balance. Like I told in the corporate book, we said around INR 12,000 crores. So that will depend on what stage -- what margin we are getting. That will depend on that. So, we are -- at times, even bulk at times, we get very cheaper. So at that point of time, there is no harm in taking even bulk.

The next question we'll take from Mahrukh.

Congratulations. Sir, I had a couple of questions. I think Jayant already asked, but just to dwell a little deep, so our margins have fallen by 14 basis points this quarter, right? And next quarter, there will be some impact of the June rate cut and there will be some amount of MCLR -- small amount of MCLR repricing as well. So given all that, would you say that the quantum of margin decline would reduce in the second quarter or it could be similar?

No, quantum of margin decline will reduce from this quarter onwards because bulk will also start repricing, and we have also gone for revision of rate in retail term deposit. And also, we have gone for some rate rationalization in saving funds. So this quarter -- from 1st of July -- so this quarter onwards, this rate of decline should be -- should come down.

Okay, sir. Got it. And sir, just in terms of retail term deposits, how much would they reprice in 1 quarter? Because we know all banks have 13 to 15-month maturity, but it may be lumpy in some quarter, not lumpy. So on a ballpark, what could you say would be the repricing in the second quarter?

So my retail term deposit is around INR 250,000 crores -- INR 288,000 crores. So out of that, INR 86,000 crores is repricing in next 3 to 6 months.

INR 86,000 crores in next 3 to 6 months. Okay, sir. Very helpful. And just one last question in terms of competition, right, where do you think private banks are more aggressive relative to PSU banks? For instance, PSU banks have recouped their market share in home loans. So where are private banks really very aggressive in pricing in which segments?

Very rightly, you are saying, but maybe because of their strategy also, since they have some CD ratio constraint in the past quarter, so maybe -- and very openly, he came and told we will consolidate. So certain segments like MSME, we are seeing good competition from the private sector banks and certain export-oriented units, there also, we are seeing very high competition.

Okay. And in corporate, it's largely PSUs only, right? Like, say, in the A category or AA category, would it be PSUs or private?

Mostly PSUs. 1 or 2 private banks come, but -- smaller banks come, but that is for a very small amount.

Next question we'll take from Mona Khetan.

Congratulations on a good set of numbers. So firstly, on the bulk deposits, you mentioned about INR 1.4 lakh crores. What would be the maturity pattern of these deposits between maturity between 3 months, 6 months and so on?

50% 1 year and 50% below 1 year.

Okay. So 50% will be after 1 year?

50% will be...

Or at 1 year?

Or at 1 year.

Okay. So in the next...

Normally bulk, we are not taking for more than 1 year. In very few circumstances, we take for more than 1 year.

Okay. So is it fair to say that in the next 6 months or so, about 50% of this will mature? Is that a fair understanding? Or in the next 9 months, that's the case?

No, in 6 months because around this quarter itself, INR 33,000 crores will reprice. So out of INR 104,000 crores, INR 33,000 crores will reprice in this quarter itself.

Got it. And sir, secondly, if I look at your -- you've made significant provisions, which is the PCR on your existing NPA and the trend on slippages have also moderated. So is it fair to assume that sort of credit costs will settle down between 50 to 70 bps? Or what are the risks you're seeing to credit cost, if any?

No, no. Very rightly, you are saying, although we have given guidance of credit cost less than 1, but it will settle somewhere between 50 to 70 or maybe less than that.

Sure, sure. Got it. And also, you've been providing on standard assets. This quarter also, you made some additional provisions. So if I have to look at the outstanding standard provisions, including general restructured and everything, where would it stand?

I think restructured, et cetera, where smaller loans are there, we have -- 100% we have made. Restructured, we have made 25%. And -- but various -- we are taking various measures for providing like one example I told you even in SMA book, SMA-2 -- we are making 10% provision. And wherever we see -- yes, Mona.

Yes, no sir. Please go ahead.

Yes. So wherever we see some sector also, there is some stress though we take proactive measures.

Right. So if I have to understand the outstanding standard provisions, where would it be? You can tell me X of general and restructured as well, particularly into these accounts, because you've been consistently providing. So just wanted to get the outstanding number.

That number, we'll see. Exactly, I don't remember. We'll see.

Got it. Got it. And also, just finally, on the recovery from written-off, it looks fairly strong from a Q1 perspective. So anything you want to highlight there that has played out...

No, no. It is basically on account of one big account has been resolved. In account itself, about INR 3,040 crores has come -- INR 340 crores has come. So that is because of that.

If you could just come back on that outstanding provisions number, standard provisions, that will be very helpful.

So before we take the next question, there was one question in the chat, which talks about like what's the recovery from written-off that you expect in second quarter and for the full year? I believe you gave a guidance of about INR 1,800 crores to INR 2,000-odd crores, but I think you already had INR 450 crores in first quarter. So you want to revise that number? And any color on like second quarter, what could be the recovery from written-off pool? Additionally, you also talked about that the PSLC, there is some relief, which has come from the RBI now. So then you intend to book some PSLC fees in second quarter?

No. So AUC recovery, whatever we have given guidance of INR 2,000 crores will not revise because already what account has come, we have already accounted for that. So it has come in this quarter. But in this -- next quarter also, AUC recovery will be in the range of INR 400 crores to INR 500 crores. And PSLC, we have already booked. If you see, we have already booked in this quarter of INR 258 crores.

Okay. But can that run rate go up now that there is a relief? That's the question.

No, no, no, because -- since that guidelines was applicable from 1st of April, so we have already taken measures in PSLC wherever we have already sold, around INR 1,000 crores PSLC income will come during this year. Out of that, pro rata, we have booked 1/4 in this quarter.

Sure. Sir, secondly, your SMA pool, if you look at and the SMA pool of another bank where they had this government-related agri project. What's happening on that? I believe you also have an exposure to that agri project. Is it stressed? Do -- are you getting timely recoveries due after some delay? What's happening over there in that account?

No, we are getting recovery in these accounts. I don't think they will slip because with some delay, we are getting recovery.

Okay. So you don't expect any -- I mean, that account to turn NPA, right?

No, no.

Government guaranteed also we have provided.

Sure. Next question, we'll take from Devendra Kumar.

Thanks for the good set of numbers even above the guidelines -- guidance. Sir, actually, I just want to know what type of initiatives are being taken for increasing customer base like advertisement and other things. We are taking good steps for digital transformation. But those information, how those information are shared with normal public so that they can attract towards bank.

So we are taking various measures and publicity is one of them. We are making good publicity of our products on various visible platforms. Digital marketing also we are adopting. And apart from that, we have a very strong team of RAC, resource acquisition centers. 100 we have RACs. So [ DI ] people also go on -- go on for marketing. And we have a subsidiary IGSS. So we are using the manpower also for canvassing our liability products and also generating lead for asset products like home loan, car vehicle loan, et cetera. So multipronged approach we are taking.

We'll take last question from Sushil Choksey.

Congratulations to team Indian Bank for excellent results. Sir, my first question is, what is the likely balance between RAM and corporate for the year-end?

65-35.

Sir, what is the average yield which we are getting on RAM today?

RAM average yield do we have? Average yield on RAM we'll share with you. Right now, I don't have.

No problem, sir. I'll take it offline. Secondly, most of the bankers in the Q1 con call are indicating whether it's a murmur on the street or general assumption, there will be 2 more rate cuts in the second half. In view of that, what is the outlook on treasury? And what -- how are we prepared for if there are 2 more rate cuts on overall business scenario?

So overall business scenario, we have given guidance, we will achieve that. Advance, we have given guidance of 10% to 12% and deposit also, we have given 8% to 10%, we will achieve that. I'm quite confident in that count. If there are 2 rate cuts, so treasury, there will be basically -- of course, there will be profit booking in treasury. But when we have given guidance of 3.15% to 3.30%, we have taken into account 100 basis point rate cut in the year. 75 already happened. And if as you are saying another 50 happens, then of course, then we will have to think about our NIM strategy. So how we can protect at least whatever guidance we have given. We will have to revert that.

Sir, Indian Bank has taken lots of initiatives where digitization, cross-sell, cash management, back-office services over the number of years and bank has done well to transform. Now this transformation and digital expenditure, which we have done, is it likely that as liquidity in the system is increasing, rates have dropped, our CASA can move back to 41%, 42% in 1 year, 1.5 years?

No, I don't think. CASA moving up will be really a challenge on 2 counts. One, government is also adopting JIT in many states. And this pace of increasing JIT will further increase only. And number two, if you see people are shifting their saving to other alternatives. And this trend, I expect will continue. So maintaining even around 40% will be a challenge to be very candid with you.

Okay. Sir, now second thing is Southern states, specifically where Indian Bank presence is high. There's a lot of reenergizing of the states happening because whether it is China Plus One story, GCC, a lot of global manufacturing capabilities coming to India. So job creation is happening, which ultimately leads to betterment for banks, whether it's for corporate lending or consumer is concerned. Are we seeing in your sanctions such kind of borrowing demand, specifically from new industries?

No, sir. See, the amount of CapEx expected is not happening, private CapEx, particularly. Public government CapEx, yes, it is happening. But we are seeing some traction in a few of the sectors like renewable energy, of course, there is good demand in solar also, solar module also. So some traction we are seeing there. Then city gas distribution also since government is trying to lay down line for the gas distribution. So traction is being seen in that also. And in PLI sectors, also, we have seen some traction. But the amount of CapEx, which is -- private CapEx, which is expected, it is not up to that level. If you see -- and one more challenge is that all good-rated companies are going to market for raising their resources instead of either CP or bond.

Okay. Sir, second thing is India signed an FTA with U.K. Many such more deals will happen. So there is assumption with Bangladesh turmoil, textile, which is the big center of Tamil Nadu and adjoining states. Similar way, leather is likely to be where Tamil Nadu is a big player. Are we sensing on specifically MSME, any demand which is supporting the bank for business growth?

Yes. So I will reply it like this. There was some stress in textile sector. So now we are seeing sign of revival in that.

So prospects of business for Indian Bank may get better in that segment?

In this sector, yes.

Okay. And sir, any specific digital spend, which we are likely to this year and human resource as you've taken so many initiatives, which will be very important for the bank?

Yes, of course, our IT spend will be in the range of approximately INR 1,500 crores for this year also. Last year also, it was around INR 1,400 crores, INR 300 crores. So it will be in that range. Manpower also, we are -- around 3,000 fresh hiring will happen in this year. So out of that part will be in a specialized sector, like we are also going for cybersecurity, IT sector, risk management, ForEx officer. So specialized hiring will also happen and generalist hiring will also happen.

Sir, you highlighted in your opening remarks that you will be opening 119 branches in the 119th year. Very good luck for that. These branches are likely to be more of metro Tier 2 cities or interiors?

See, in a few of the sectors, my presence is not much. Like in Mumbai, Gujarat, even Rajasthan, some sectors, they are -- if you take Mumbai or Gujarat, they are contributing around almost 35% to GDP. Our presence is only 7%. So in these sectors, we'll open the branches where the potential is there. We will not -- it will not be specific to any metro or urban. But in the sector, we'll be opening branches.

This will be along with your mid-corporate, large corporate or it will be all specific branches more of retail?

No, it will be the general branches.

Thank you, Sushil ji. We will take that as a last question. With this, we come to the end of Indian Bank's post results conference call for first quarter FY '26. I now request the management to give their closing remarks.

We have already discussed everything, but 2, 3 things. Asset quality, I mean, we are on very right track of the asset quality. Gross NPA, we have given guidance of less than 3%, but maybe we will do better than that. Slippage also, we will be able to maintain at a healthy number. And growth also, we will be around whatever guidance we have given, our endeavor will be to on the upper band of our guidance. And profit also, we will see steady profit because I don't believe in the -- one quarter going -- showing a very good numbers and then the second quarter going down. So our endeavor will be to provide steady growth or steady decline wherever decline is there, like gross NPA, net NPA, steady decline we will ensure. Thank you, Anand.

Thank you, sir. We thank the management, and we thank all the participants. Have a happy evening. Have a good day. Bye-bye. Thank you.

Thank you.