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

Ladies and gentlemen, good day, and welcome to the earnings conference call of Indian Overseas Bank arranged by Veritas Reputation PR. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Ms. Sonali Pandey from Veritas Reputation PR. Thank you, and over to you.

Good evening, and welcome to Indian Overseas Bank conference call to discuss our financial results for quarter 3 FY '25-'26 ended December 31, 2025. Indian Overseas Bank, IOB, headquartered in Chennai continues to strengthen its presence with over 3,438 branches with around 3,622 ATMs and 9,041 business correspondents across India. IOB also provides services in four countries: Singapore, Hong Kong, Thailand and Sri Lanka, with a trust of 41 million active customers and banks hold. Our comprehensive suite of services spans personal, corporate and agricultural banking, along with credit cards, loans and insurance products. Our financial results are available on our website and stock exchange platform. Before we proceed, please note that today's discussion may include forward-looking statements subject to risks and uncertainties that could impact future outcomes. We encourage you to consider these factors when evaluating our performance. Joining us today are Shri Ajay Kumar Srivastava, Managing Director and CEO; Shri Joydeep Roy Executive Director; Shri Dhanaraj T, Executive Director. We will begin with an overview of our quarter 3 performance followed by a Q&A session. Now I invite Shri Madhaw Jha, Chief Financial Officer, for the bank, to present the financial highlights. Over to you, sir.

Thank you, Ms. Sonali. Good evening to all. I'm pleased to present the overview of the bank's performance during the quarter and 9 months ending on 31st December 2025. It is a proud moment for the bank today that bank had reached a new milestone by reaching all-time high quarterly net profit of INR 1,365 crores for this quarter with a 56.18% year-on-year increase. Regarding the performance of the bank for 9 months ended 31st December 2025, bank has achieved a business mix of INR 644,276 crores, recording year-on-year growth of 18.71%. CASA also has increased to INR 142,676 crores and it is recorded at 40.85% for 31st December 2025. We are able to manage more than 40% for this quarter. Total deposit growth achieved at INR 349,302 crore with a growth rate of 14.48%. Growth advances, at year-on-year basis, it has increased to 24.13%, reaching to INR 294,974 crores against INR 237,632 crores last year 31st December. Bank has shown the operating profit of INR 2,603 crores, again a record and it is overall of our growth of INR 14.87 crores based on the last year performance. Net profit of the bank has increased to -- increased by INR 491 crores and this to INR 1,365 crores, as of December 2025, as compared to December '24 growth -- ring December 2024, recording a year-on-year growth of 56.18%. This year's Provision Coverage Ratio increased to 97.49% from 97.07% last year. Capital adequacy ratio increased -- stood at 16.30% against the -- earlier it was 17% now as per as the requirement it was 11.50%. So we have achieved that--so it is 16.30%. NIM again we have recorded the figure of 3.32% continuously it is growing, last time it was 3.21%. The CD ratio of the bank has increased to 84.45% and with regard to NPA management, gross NPA reduced from INR 6071 crores to INR 4,530 crores year-on-year basis and net NPA reduced to INR 708 crores from INR 976 crores last year. GNPA ratio has come down to 1.54% from 2.55% last year. Similarly, net NPA ratio has been reduced by 18 bps to 0.42% on December 2024 to 0.24% in December 2025. Slippage ratio is contained at 0.11% during this quarter. And with respect to valuation, there is a significant improvement on the return of assets, that has increased to 1.28% for quarter ended 31st December 2025. With regard to book value of share, it has improved to INR 13.90 as on December 2025 while the same was 10.66% only during December 2024. There is a significant increase in return on equity with a 312 bps, year-on-year, currently ROE is 20.98%, whether, last time it was 17.86%. Earning per share, EPS, on 31st December 2025 is INR 0.71 which is improved by 54% from INR 0.46, for the last December 2024 quarter. This is all about the performance of our bank, which I want to present to you. And I request to proceed.

[Operator Instructions] We take the first question from the line of Ashok Ajmera from Ajcon Global.

I will be asking the first question. In fact, my question has a combination of questions and observations and some clarifications. So compliment to you, sir, Srivastava sir, Joydeep ji, Dhanaraj ji and the entire management team of the Indian Overseas Bank for the yet another good quarter rather the better quarter than March quarter, of the results. What is actually happening to note is that the bank business has grown tremendously, especially the credit. In the 3 quarter itself, it has gone up by about 18% growth. And I'm sure the way the last quarter has done, 6.12%, you will end the year by 24%, 25% of the credit growth, which will be one of the highest or rather the highest in the entire PSB space or the banking space. So my compliments to you for the same, sir. Having said this, sir, I have got some -- rather some clarification that now with this kind of credit growth, our CD ratio has already come to the top band like 84.45% and our CRR has proportionately has come down to 16.30%. So with this growth and this kind of CD ratio already achieved, how do you see that growth momentum to continue? I mean what are the plans for that to maintain the CRAR also on the higher credit numbers? So this is my just first question. And if you want, I can speak others also, but if you can answer this, and then I can take the further question, sir.

Yes. Thank you so much. I will be replying to all these three observations first. So credit growth, of course, we have grown year-on-year, it is 20% December-over-December, if you see. And over March, of course, your question is right. So maybe here, we will be ending the year with a growth of around 24% to 25%. That is what we are also expecting. And this credit growth is coming from all sectors, retail, agri, MSME and a little bit of corporate also. So the next point is CD ratio you're talking. CD ratio, 84% whatever you are watching, that includes overseas centers. If you exclude that overseas centers, then CD ratio is around 81% domestic because overseas -- overseas centers, there is no concept of deposit loan against it. So it is around 81% -- 81.18% or something CD ratio, which is very much within the region, manageable thing. And the second part, which you have not pointed out is that retail term deposit, we have grown by 16%. [ SB ] we have grown by more than 11%. So deposit growth is also happening to that extent. And third part is that -- third part is that there is a concept of LCR, which RBI monitors on a daily basis, which for our banks, will mandatory peg that 100%, it should be there. We are consistently maintaining it around 120% plus. On 31st December, it was around 127%. Yesterday, it was 122%. So there is no issue on the aspect of liquidity. So CD ratio is 81%. LCR is more than 180%, 182%, 121% 122%. So that aspect is very well taken care of. And going forward also, it will be maintained like this. The third part of CRAR, CRAR 16.30%. One aspect is that it is still very early against mandatory requirement of 11.50%. And having said that, this 3 quarter's net profit of INR 3,700 crores is not factored into capital so far. It gets factored at the end of the year. So if this INR 3,700 crores we factor then the CRAR as on 31st December, it is around 18.40%. There is no cause of concern on the aspect of CRAR also, sir. So all bases are fully covered. Strategy is in place, and we are successfully implementing it.

Yes, sir. Point well taken, sir, and you have properly explained the whole thing. Now coming to this, sir -- this -- our profitability. Yes, because of the good credit growth and the good business growth, we have grown our operating profit also. This quarter, also our operating profit is INR 2,603 crores as compared to the last quarter of INR 2,400 crores. And -- but for only INR 2 crores tax provision. Because the other provision this year has become -- this quarter has become very high. If you look at the -- for the overall provisions, it has gone up to INR 1,236 crores as compared to INR 672 crores. So -- but for this major reduction in the tax provision, which has come down to INR 2 crores from INR 501 crores, our net profit would not have been -- would not have remained same or rather it would have gone down than the last quarter. So what do you have to say, sir, on this? Number one, the higher provision where the other provision component is INR 928 crores as compared to INR 552 crores in the last quarter. So what is this extra other provision? And secondly, why the tax provision is only INR 2 crores?

So sir, 2, 3 things are there in this. First in this provision, whatever number you are talking, that is inclusive of around INR 800 crores of additional standard provision, which was not needed, but we have created it as a buffer. In addition to this INR 800 crores, sir, we have done forward-looking INR 1,500 crores of ECL provision in the name of ECL. That INR 1,500 crores also we have done. That is away from whatever numbers we have given. So INR 1,500 crores is one part that is ECL. INR 800 crores, we have given additional provision, standard provision, just as a cushion. And third part is so far, we were under DTA, sir. DTA was around INR 2,900 crores. And bank was having -- is having accumulated losses. So this tax was not applicable to that extent. And in this December quarter, this DTA has been made nil. INR 900 crores DTA was there, that has been made nil. And as a consequence of that, sir, we have new tax regime. In previous conference, sir, if you remember, you have been asking this question when we are planning to move to new tax regime. So December, we have moved, sir.

Okay. I mean that's a great thing. It will give the benefit to the bank in the coming years also accordingly of the reduction in the new -- as per the new tax regime. Sir, one small observation that the salary amount has gone up by about, I think, INR 175 crores this quarter as compared to last. So whether this new labor code, which has come in and the gratuity liability, have you factored that into this? And because of that, it has gone up or still the load is yet to be passed on?

No. That is yet to be figured out, sir, and we'll start working on that. So this INR 175 crores does not reflect that. This reflects INR 160 crores of additional surplus provision we have made towards pension and gratuity liabilities, which was not supposed to be made, but since we are having cushion available, so we have made INR 160 crores additional provision on HR regarding this. So that is how INR 175 crores you are looking at. But actually, it is INR 15 crores increase only.

Sir, this quarter, we have also observe...

Sir, I request you to please reach out...

Just last one. Sir, in this quarter, we have observed that asset quality has further improved rather the gross NPA has gone down drastically from 1.83% to 1.54%, and that is because of the little higher write-off of INR 601 crores as against INR 108 crores in the last quarter. So whether this write-off things is over or it will continue in the next quarter also so as to bring down the gross NPA [Audio Gap].

And it is done based on the requirement, sir. [Audio Gap] so recovery, we have at around INR 890 crores. And recovery has been consistently, we are doing more than slippages for last many, many quarters. So as total of this, the -- you talked about GNPA. GNPA has reduced. It's total of recovery plus technical write-off plus whatever OTAs we have sanctioned a part of write-off has come from that plus ARC sale, all those things have happened. And right now, we are at 1.54%, and we expect that another 5 to 7 bps, it can reduce in this quarter in Q4.

What is our total written off book, sir? The written off book amount -- outstanding amount?

Around INR 23,000 crores, sir.

We take the next question from the line of Pinaki Banaljee from AUM Capital Private Limited.

Congrats for the great set of numbers. Sir, actually, coming to the Page 16 of your presentation regarding that advances -- regarding this corporate advances of about INR 51,000 crores odd, sir, can you please give us a breakup of this to which sector or industry, this advances have been given?

It is a mixture of PSU, private players and plus NBFCs.

Okay, sir. And sir, actually, compared to the other segments like retail, agri and MSME, which have shown a double-digit growth, why is it the corporate loan growth is languishing in single figures?

No, it's not languishing. It's -- I will say that it's a well thought-out call part of the strategy. See, you have to understand the dynamics. We are having 3,400 branches. All these 3,400 branches can do retail, agriculture and MSME. Corporate is done by at least 20 branches across the geography. So since number of branches doing retail, agri, MSME is more, so naturally, retail, agri, MSME happens more. And there, we get good rate of interest also. Risk is spread out and capital requirement is lower. So that becomes priority, of course, RAM and all my branches can do. And corporate, we are very selective about onboarding customers. First thing is, of course, good corporates with good rating. And second part is that we should be able to get proper pricing. We are not in the business of lending at 6% or 6.5%. So wherever we are getting good value, we are lending there only, and that is how we are managing corporate. All along, we have been -- RAM sector has been around 75% to 76% of our total portfolio. And corporate continues to be around 23%, 24%, 25%, and we intend to maintain like that.

Okay. Sir, and last one, just a hypothetical question. Sir, your last dividend declared was quite a number a few years back because understanding that you are under prompt corrective actions. So now that you have come out of this, can we expect dividends in the coming times?

Yes. So we came out of PCA in 2021 -- September 2021, long back. So PCA story is very, very old. And next year, of course -- next financial year, we'll be in a position to give dividend, of course.

We take the next question from the line of Samraat Jadhav from Prosperity Wealth Adviser.

Congratulations on a good set of numbers. I have two questions. One is like our overseas gross NPA remains around 8.5% on higher side, elevated basically. So any idea or a road map or time line for this book, how we will -- how we are managing it all covering up?

Okay. So 8.5% overseas -- see overseas, we are supposed to be guided by local regulations. There we do not have that [ OFS ] or DRT or those things are not available to be implemented there. The only thing which happens is through the courts. And in all these cases, cases have been filed and they are in the process. Whatever the securities we are available that have already been sold with the permission of the court and we have appropriated the money. So it will come down, but you know court decision, how much time it takes. So we cannot give a definite time line, but of course, all cases are under recovery process.

Okay. And what percentage of our new retail loans are now digitally sourced?

Around 13% to 14%.

We take the next question from the line of Niteen S. Dharmawat from Aurum Capital.

So our CASA percentage was coming down on a year-on-year basis, though there is some marginal improvement on a Q-o-Q basis. So is there any challenge that we are facing over there? And how does the bank plan to balance aggressive credit growth with deposit mobilization?

Sir, two things you have to understand here. CASA consists of two parts, CA and SA. And if you look at SA, year-on-year, we have grown by 11.4%. In absolute terms, it is INR 1,910 crores. So SA growth has been in double digit -- growth is happening. Current account because of its nature of the product, the money comes and goes. And as a matter of prudence, we are not encouraging those transactions, which happened for only 1 day, last day of the quarter. So that we have purposely not encouraged. And that is how current account, we have not been able to grow to that extent. Of course, if you wanted, you could have room for 1 day and numbers it will have been shown here, but those numbers have not been realistic. So SA is growing. And because of that, CASA growth is from 11.4%, it has come down to 7.8% growth is there. Second part, CASA percentage, you are talking about. CASA percentage is a game of numerator and denominator. If my total deposit, my retail term deposit is growing at a faster pace, then actually percentage will move. So my retail term deposit has grown by 16.3% year-on-year. In absolute terms, it is almost INR 25,000 crores. To that extent, SB and current has not grown. Of course, they have grown, SB has grown by INR 12,000 crores. So absolute terms growth is there. But in percentage terms, since retail term deposit comes into play, which has grown at a higher rate, so that is how percentage has come down to 40.85% global. But domestic, if you see, overseas branches do not have CASA deposit concept. So CASA domestic is 41.29% and only three public sector banks in the system are having CASA percentage above 40%, and we are one of them. And we have been consistently maintaining CASA percentage above 40%, 41%.

So do you see that [indiscernible] the CASA percentage could come down as the growth will happen and as you are suggesting because of the challenges...

Certainly not because SB, you can see we have grown substantially, very handsome growth of 11.4%. I think that will be one of the best in the system. Current account, we are working on it. And maybe in this quarter, we can show good growth in current account also. So I do not see that CASA percentage going below 41%. Of course, we cannot aspire to go beyond 45%, but we will be very successfully maintaining CASA percentage above 41%.

And my second question is about technological and operational strategies that are driving the bank's digital transformation goals. So what are those specific -- if you can elaborate on that front and how we are implementing that? Have we hired new consultants or how much investments we are making on those lines? What is the vision of the bank on that? If you can elaborate on those points?

Yes. So I'll start from budget. So every year, expenditure on IT infrastructure, both on in Prism. Last year, it was INR 1,200 crores. This year, we have taken approval of Board for INR 1,600 crores, both capital and revenue expenditure and almost 70% of that has been spent also. And a lot of regular upgradation happens in IT infrastructure. Recently, we have done the entire core banking modernization with a probable expenditure of around INR 600 crores that we call tech replay that has happened. State-of-the-art data center we have created. And core network infrastructure upgradation has happened. So a lot many things, branch network modernization has happened. Lot many things in IT area, IT infrastructure. It's an ongoing process. And that is one of the top most priorities of the bank to ensure that IT infrastructure is matching with whatever is needed to be done for running the bank smoothly and to compete at that level. So we are at that place -- at that level, and we get full support of our Board also for this. And IT infrastructure, I can say that it is one of the best in the system.

Got it, sir. My next and final quick question is about the competition with private sector bank in general. I see that PSU banks, there is a complete resurgence and they are grabbing the business compared to private sector banks. So do you also see the similar kind of thing? Are we grabbing the business from private sector banks or our growth itself is organic and we are growing naturally and they are unable to capture that business because of the changes which have happened in the banking sector, especially the public sector bank. Can you shed some light on that?

Yes, it is a fact that we are grabbing business from private sector. Many of their clients are moving to public sector banks. Many of the clients who left -- I will talk about IOB 4, 5 years back, they all are trying to come back. Many of them have come back also. And because of lots of improvement in the efficiency and IT infrastructure and lots of products, public sector banks, the total space, public sector, they are giving, I will say, good banking experience to the general public, and that is how things are happening. And the overall image of public sector banks as a doer, as decision-maker as actually delivering the things, that has improved a lot.

We take the next question from the line of Ashok Ajmera from Ajcon Global.

Sir, since I got the time now, one thing is there that our bank -- government holding in our bank is still very high at, I think, 92% or so in spite of the OFS and the QIP, which has been done in the recent past. So in order to dilute and bring it within the SEBI guidelines of 75%, I think almost about INR 12,000 crores of dilution will have to be done at the current market price. So what are the plans on that front? Is it going to be OFS only or a QIP kind of a thing? What plans the Board has approved and are there in pipeline for you to execute to bring down the government stake in the bank?

So sir, right now, Government of India holding is 92.44%. A year back, February '25, used to be 96% plus. So from February '25 till December, we reduced it by almost -- to 92.44%. We are having an approval of INR 4,000 crores of capital raising through QIP. We have got all the approvals. And in this quarter, we are going to raise this INR 4,000 crores, maybe February or maybe in March. The entire process is going on, whatever is needed to be done. And if that INR 4,000 crores with that, this 92.44% will further get reduced by 4%. So in 1 year, you can see that from last March to this March, the holding from 96%, it will come down to around 92% -- around 88%. And next financial year, again, we will plan and we do hope that it will reduce further as per the requirement.

All right. So it will be -- in future, it may be a combination of OFS and QIP again, isn't it? Like maybe after this QIP of INR 4,000 crores, again, government might go for OFS if the rates -- the price is good in the market. Okay, sir. Now sir, a little bit of data points on this gold loan front. What is the combination of total gold loan book between agri and non-agri loan? And what kind of approximate yield which we are getting on the gold loan, agri and non-agri field?

Yield is around 8.5% to 9%. There are different products, different schemes. And there are certain products where really it is less than 8.25% also. And retail and agri -- major part of the retail gold loan, whatever is happening, that is almost 50% to 60% is for agriculture purposes and balance gets distributed amongst MSME and retail.

[Operator Instructions] We take the next question from the line of [ Vimal Panchal ] from [ Vimal Panchal & Associates ]

My name Vimal Panchal. Congratulations for the -- one of the best results in the history of the bank. And a lot of questions has been asked by previous participants. I'm not repeating. My one question is that there has been frequent news, appears that all PSU banks will be consolidated into at the most four or five banks. So any communications from the government regarding this? And because of this, any -- has there been any instructions to hold on branch expansions or fundraising? Is there any break on these two aspects?

So sir, two things. One thing is that this year, we are reporting around 1,200 people and 400 people have recently onboarded, remaining will onboard in another 3, 4, 5 months. This year, we have already opened 120 branches odd, and another around 180 are in the pipeline, which will be opened over the next 3 to 6 months. So expansion plan, recruitment plans, everything is going as per the business plan, which we said in the beginning of the year is going on as usual. And the second part is merger and consolidation. We do not have any information either verbal or written, nothing is available with us.

We take the next question from the line of Rana Aryan from VRIGHT AARYANA HOLDINGS.

Congratulations to the team, IOB, for the fantastic results. My question is around loan book grandity. And so the background is PSU banks historically faced volatility due to large ticket corporate exposure even when headline GNPA numbers look comfortable. So the question is how has the top 20 or top 50 borrower concentration evolved? And what internal thresholds guide incremental exposure decisions today, sir?

So sir, there are two aspects. One is that the total credit consists of retail, agriculture, MSME and corporate. If you look at bank's credit portfolio closely, you will see that all these four are equally distributed to around 25% -- between 25% to 30%. So retail, agriculture and MSME constitute around 76%. Corporate is around 23% to 24%, and we intend to maintain at that level only. And whatever corporate existing accounts are there with us or whatever we have onboarded, all those accounts are absolutely healthy standard running and absolutely regular.

Okay sir. You said corporate 25% and SME is about 70%, right?

RAM, Retail agriculture, MSME, all three taken together is around 76% to...

76% okay. All right. --All right. So my second question is on slippages across the system have been benign over recent quarters, particularly reflecting favorable macro conditions. But so what early warning indicators is the bank tracking to sort of distinguish between sector -- sorry, structural asset quality improvement and cyclical low slippages?

So here also two aspects. One thing is that if you look at the slippages number over the last 2 years of IOB, you will see slippage ratio around 0.11, 0.12 like that. Quarterly slippage is around INR 250 crores to INR 300 crores over a credit base of almost INR 3 lakh crore. Slippage ratio is very low and consistently slippage ratio at this level, which leads us -- which should lead you to believe that asset quality is good and being properly monitored and reviewed. Another part of your question is EWS, Earning Warning Signals that is already automated. Almost 144 different scenarios have been put in the system, Nexensus software and early warning signals are getting generated on a regular basis. And those alerts are acted upon by the teams, which have been put for this activity. So it works like a well-oiled machinery. And that is how slippages control has been there consistently over the last 2 years or more than 2 years. And accordingly, it will continue like this only in future also.

Correct.

And one more thing. There has not been any corporate slippage over last 2 years, 2.5 years or 3 years.

Absolutely. All right, sir. So another question is I have one valuation re-rating triggers. So like PSU banks open trade at a discount despite improved fundamentals. So my question is what two or three execution milestones would the IOB management views as critical for a sustained valuation re-rating as given that stock...

Our job is to give good numbers, so consistent growth. And consistently, quarter-on-quarter, whatever is supposed to grow, it has grown. Whatever is supposed to come down, it is coming down. So we are very consistent in whatever we do. And beyond that, it is market dynamics on that, we do not have any control.

We take the next question from the line of Ashlesh Sonje from Kotak Securities.

Sir, two questions from my side. Firstly, can you talk about the outlook for margins over the next few quarters? And secondly, how do you think about the traction on bad loan recoveries going ahead next quarter and then in FY '27?

So margin, you can see, in fact, for June to September quarter 2, IOB was the only bank whose NIM margin improved despite rate cut of 1% by the regulator, June quarter. And if you see my domestic NIM, from September to December Q3 also, it has improved by 7 bps, 3.35% to 3.42%. And global NIM from 3.21% to 3.32%. So NIM, despite rate cut -- by rate cut of 125 bps in last 9, 10 months, we have been able to ensure that margin gets strengthen only NIM improves. Right now, 3.32% of global NIM, I think it's very comfortable, very healthy. And we intend to maintain in this range only 3.3% to 3.4% going forward also.

Okay, sir. And second was on the outlook for bad loan recoveries.

Yes, sorry. So recovery, we have done INR 2,600 crores for this financial year in 9 months. This quarter, we did around INR 890 crores. And in Q4, we all know that Q4, everything happens more aggressively in this Q4. So additional in this quarter, we expect that INR 1,400 crores to INR 1,500 crores of recovery we'll be doing. So by the year-end, we will be crossing INR 4,000 crores of recovery as planned in the beginning of the year.

[Operator Instructions] As there are no further questions from the participants, I now hand the conference over to the management of Indian Overseas Bank for closing comments.

Yes. So thank you, everyone, for sparing time and listening to the performance, listening about the performance of IOB. So numbers have already been shared with all of you. And only one thing I have to say is that we have been consistently doing whatever is required to be done as a commercial bank. And second consecutive quarter, we have shown growth of net profit by more than 50%. For September, it was 57% and for Q3, it is 56%. Operating profit also has shown a good growth. Net interest income has grown. And in all the critical areas, ROA, you can see it is consistently improving. Now it is at 1.28%. ROE stands at 20% -- ROE, 20.98%. So bank is on a growth trajectory... Sorry, business, we have grown by 18%. Credit, we have grown by 24%. So bank is on a growth path. momentum is there. And we intend to continue with this aggressiveness only going forward. And our objective and then is to be known as a bank which consistently performs that consistent word, we are more focused on that. And I do hope that the team, which is with me at IOB, 21,000 IOBians, both the ADs and the top management, we all are perfectly aligned to take this bank to the greater heights. And going forward, quarter-on-quarter, we are pretty sure that we'll be able to show the numbers which take us in that direction. So thank you, everyone, for joining and sparing your time. Thank you.

On behalf of Board of Directors and the management team, we sincerely thank you for your participation and continued support. Indian Overseas Bank wishes you a successful and prosperous 2026.

Thank you. On behalf of Indian Overseas Bank and Veritas Reputation, we conclude this conference. Thank you for joining us, and you may now disconnect your lines.