National Development Bank PLC (NDBN0000) Earnings Call Transcript & Summary

So I will go to all of you once more. Welcome to the investor webinar, and thank you for connecting with us. As all are of our investor webinar, so this webinar too will be presented by our Director and CEO Mr. Dimantha Seneviratne. He will first take you through a prepared presentation, at the end of which we will open up the forum for questions and answers, during which he will be joined by a panel comprising of senior management of the bank. So which -- without much ado, I will now hand over to Mr. Seneviratne to take the presentation forward. Thank you.

Okay. Thank you. Good morning all and also those who are reaching from device, good afternoon, in webinar -- investor webinar to our 2021 results, one year full results, I believe, I have been doing this every quarter, these are our [indiscernible]. With me in presenting, we have all the business line heads and also Sanjaya Perera, who is heading Personal Banking & Customer Experience; Deepal, who is our Chief Operating Officer; Suvendrini Muthukumarana, with the Finance; Niran, who is heading Treasury; Indika, who's heading SME and Middle Market; Ishani, who's heading Project Finance and Credit Control; Vinoj, who's heading Wholesale Banking; Zeyan, who's heading Branch & Product Development; and Shanka is the one who's heading Corporate Planning & Business Intelligence. So they'll be joining with me when we share whatever the answers to your questions. Today I did [indiscernible] talk about the corporate profile, a brief operating environment and then the financial performance. And then we'll share [indiscernible] and then later we have time for the Q&A. So I'm sure that corporate profile most of you are quite familiar. Those who are joining new probably, I mean, the details are there even in our website. 41 years in operations, more than 3,000 staff, 113 branches, 150+ CRMs, that's our reach to support our clients. And as the NDB Group, we do have a full spectrum of capital market services offered through NDB investment banking, wealth management, stockbroking arms. In terms of diversity, I think the staff is well diversified. We are the only corporate in Sri Lanka who got certification for gender equity. And one important aspect is, I think we have won more than 70 awards, accolades in 2021 and [indiscernible] has rated us as the best awarded corporate this year, and also the great place to work this year, we got certified because of the best practices. Bank's credit rating is at A+ stable. And we have been winning several awards including the Global Finance Best Bank Award and also the Asiamoney's Best Digital Bank Award, [indiscernible]. So operating environment is naturally very, very challenging coming out from COVID -- year fully impacted by COVID, several lockdowns during 2021. As a result, GDP contracted last year, last quarter, 1.5%. And that also has a huge impact on the foreign currency reserves and also the -- that was managed by having certain restrictions on imports. But despite that, the [indiscernible] of the tourism income, which was giving quite substantial income for the last 2 years, especially since [indiscernible] actually had led to quite a big vacuum in the foreign exchange situation. Country's ForEx reserves as of December was LKR 3.1 billion, now it has further come down to around LKR 2 billion. There was a sovereign downgrade as well by all international rating agencies, unfortunately Sri Lanka now at CC. Sri Lankan rupee was depreciated by 7% in '21 and the inflationary pressure has also escalated, especially during the latter part of 2021, headline inflation, core inflation by around 14% and then CCPI at 12.1%. So -- and we see that similar inflationary pressure coming in January this year as well. And we are seeing Central Bank adopting a tightening monetary policy stance from last quarter 2021. Statutory reserve ratio on rupee deposits also increased from 2% to 4% in September. And in January this year, SDFR and SLFR were increased by 50 basis points to 5.5% and 6.5% and then as a result, [ the key ] market interest rates moving upwards, especially the long-term rates and also in the short term also we see the rates are going up. You'll see these in the graphs that have been shared, AWPLR is also moving up from 5.7% in early 2020 or 2020 financial year, now moving up to around 8.3% level. This is a snapshot of financial performance on the fund-based income. There's another slide prior to that ... Before moving on, there is another slide prior to that, yes. So financial performance, these are overall at a high level. The NDB had a solid balance sheet growth. We maintained that throughout, despite all the economic challenges. And we crossed LKR 700 billion, which is 12% year-on-year growth on the total assets. And gross loans and receivables, we had 19% year-on-year growth to across LKR 526 billion, and total deposits, 13% growth to LKR 552 billion. So this is the first time in bank's history that we have both loans and deposits crossing LKR 500 billion and assets crossing LKR 700 billion. Despite all the challenges, the profitability remained intact. Profitability, pretax profits, were up by 12% to LKR 10.3 billion. And return on equity of 12.27% despite we raising capital in the 2021, about LKR 9.5 billion new capital raising that was done. So as of now, the enhanced capital position, our capital adequacy ratios have being quite strong and our total capital adequacy ratio has moved up to 15.4%, one of the highest in the last 5-6 years. Notable improvements in the key performance ratios. We saw net interest margin picking up from 3% in 2020 to 3.25%. CASA ratio from 25% to 27%, should that help to improve our margins. Cost income ratio a remarkable improvement from further 37% to 33.7%, and NPL ratio as well, quite a good improvement from 5.35% to 4.65% despite all the challenges we faced. And also, the group also performed quite well as a group, the subsidiary companies also. Unlike previous years, we saw a good performance coming in, especially with the capital market activities getting increased. So at group level, the ROE was 12.47% compared to 11.2%, ROA at 1.6 versus -- 1.67 versus 1.58. Earnings per shares, profit attributable to shareholders actually crossed LKR 7 billion from LKR 5.1 billion last year and total group assets at LKR 709 billion. That's about 12% growth. So this is on the fund-based income -- financial performance fund-based income. You would see that the interest income, there's a slight drop compared to last year from LKR 53 billion to LKR 52.6 billion. This is mainly due to the rate reductions. However, we had 19% growth in loan book. So that -- despite the rates coming down, then the interest expense, again, because of the rate reduction, there is about LKR 4 billion reduction in interest expense. So all in all, the net interest income has had a 22% improvement from last year. That's about LKR 3.8 billion increase from last year to cross LKR 21.6 billion. You would see that fund-based income, the CASA ratio also improving from 2019 figure of 20% to 25% in 2020 and now at 27% and NIM also at 3.25. Nonfund financial performance around fund based, it's mainly the fee income. So we had -- this is where we have really done very well. Net fee and commission income, we had 32% growth from last year to cross LKR 5.6 billion, a LKR 1.3 billion increase. Other nonfund-based income also at 11% growth. So total non-fund fee-based income has improved from LKR 7.6 billion to LKR 9.3 billion. That's about 23% growth. That's mainly driven by; one is the growth in business volumes as I shared with you the loan -- because loan book increased by 19%, but also, we concentrated on developing the exporters, developing our transactional banking reach. So all that has helped to get the fee-based income plus also our digital banking approach, the NEOS, all that has helped us to get good fee-based income. In addition enhanced income also we received from ForEx trading. One -- the main reason was the depreciation of the rupee but more importantly, the more trade activities helped us to get the ForEx income also high. So composition of nonfund to fund-based income as we kept it at almost last year's level, 70% interest income and about 17%, 18% in fee-based income. So resultant total operating income was LKR 31 billion, which is up by 22%. Then the other key area is the impairment charges, and this is where we were compelled to take quite a high impairment charge reflected in the aftermath of the COVID situation, the moratoriums that have offered, the low economic growth, all that has contributed in we reassessing the quality of our asset book and taking precautionary impairments. So impairments actually increased from LKR 6.2 billion to LKR 8.1 billion, almost LKR 2 billion, LKR 1.9 billion increase, that's about 31% increase in impairments. And in addition to that, there was a significant impairment on investments. These are the sovereign exposure and the USD exposure of SLDBs and all. There was a significant increase because of the probability of default calculations were revised from 10% last year to 30% this year, on 2020. So resulting almost LKR 1.5 billion increase in impairments on these investments, so from LKR 500 million to LKR 2 billion. So that's substantial. Mainly this is beyond the bank's control, but mainly because of the entry downgrade and resultant risk parameter increases that compelled us to take a higher provision on that. So despite that, the credit quality improved, our impairment coverage has gone up, you would see from the slide or the graph on the bottom right corner from 3.55% to 4.5% impairment coverage. This is the accumulated impairment provision over the gross lending ratio, gross lending portfolio. But more importantly, that KPIs denoting the asset quality, that's quite a good improvement. As I mentioned, the NPL ratio reduced from 5.35% to 4.65%. The net nonperforming ratio, this is net of provisions that has substantial improvement from 3.2% to 2.29%. And then the impaired loan, the Stage 3 ratio, which was introduced since last year, it's 4.55%, I think compared to 2020 or it's around somewhere around same 4.47%. And impairment Stage 3 to Stage 3 loan ratio further improved to 32.8 from 31.6. Now this is about operating expenses; again, we have a remarkably good story here. You would see from the graph year cost-income ratio from high level of 49% in 2016 end over the last 5 years, coming down now to 33.7%. I think this is -- I would believe that this is the best cost-income ratio in the industry. It's a remarkable story. I think we have been managing sustainable cost savings using even the digitalization, technology-enabled automation, the robotic process automation, the workflows, all that has helped us to have a very sustainable level of cost savings. So that's a good rebound improvement. All in all, personnel expenses are up, though the total operating expenses year-on-year, there's 11% increase. Personnel expenses, the salary and related expenses, we have 10% increase and also the other expenses, about 15%. But all in all, still 11% compared to the inflation and other pressures, escalation of prices, all that. So I think credit to all who were involved in managing our costs down in a very sustainable manner, making one of the best cost-income ratios in the industry. And this is on taxation and the profitability. So we have contributed LKR 3.9 billion, almost LKR 4 billion in total taxes last year, increased from LKR 3.6 billion in the previous year, 7% increase. VAT was revised on financial services, so as a result there was higher component paying VAT from LKR 1.8 billion to LKR 2 billion. So you would see the profitability on the other side, profit before taxes, we had 12% growth year-on-year from LKR 9.2 billion to LKR 10.3 billion. And then profit after tax, 15% growth from LKR 5.5 billion to LKR 6.3 billion. And group profits, again improved 35% from LKR 5 billion to almost LKR 7 billion. And you will see the profitability trends in colored graphs here, you would see that all those aspects have improved over the last 5 years. And now this slide, the right-hand corner, that's about how the transformation over the last 5 years, you may recall that we introduced the Transformation 2020 strategy in 2017 and got the bank's balance sheet growing up to about LKR 500 billion. And since then we introduced Voyage 25, the next 5 years' strategy. And all that are working very well. I think more important thing is how we effectively execute these strategies. So you will see from 2016 end or beginning of 2017, the NIM was 2.64%, that has improved to 3.25%, CASA ratio from 22% to 27%. Cost-income ratio, as I mentioned, from 49% to 33%. And loan to deposit, I think 5 years ago, we -- our loan book was partly funded by borrowings. So that was loan-to-deposit ratio was about 112%. Now it has improved to 95%; a healthy sign because banks are funding our asset base using the depositors' funds. And prior cumulative average growth rate in pretax profitability, I think 14%, that's one of the highest 5 years year-on-year, maintaining every year 14% increase. And this is on the balance sheet performance. Again, as I mentioned, balance sheet total assets crossed LKR 700 billion, so 12% growth or about LKR 76 billion increase in total assets and gross loans, there was 19% growth or LKR 83 billion in quantum to cross LKR 526 billion. Deposits grew by 13%, LKR 62 billion in quantum to cross LKR 552 billion. And the other important thing is the equity side, 32% growth in equity with the equity raising and retained profits. So from LKR 45 billion in 2020, it has gone up to LKR 59 billion. Again, I would draw your attention to that 5-year trend. In beginning of 2017, the total asset figure was LKR 335 billion. Now we have more than doubled that. By 2021, we have crossed LKR 700 billion. So they have the cumulative average growth rate of 16%. And gross loans from LKR 228 billion book, again, we have more than doubled that to LKR 526 billion over 5 years, again, 18% cumulative average growth rate and deposits from a meager LKR 204 billion, now we are at LKR 552 billion, a 22% CAGR over 5 years is the best in the industry for deposits. I'm sure even the ratios are best in the industry, maintaining year-on-year growth, which is normally the challenge, but I think sustainable growth that has been the -- I think key highlight of NDB, maintaining sustainable growth in the balance sheet. So solid deposit performance as well, I think that we have -- despite the low interest rate, we have been working hard on getting quality deposits, good granular CASA coming in, especially coming from retail banking and business banking side. Using the transactional banking initiatives from the corporate side by reaching out to these clients and that has actually really worked well to get some good operating accounts, making it a CASA ratio the best so far in the bank, making CASA base of LKR 150 billion in 2021. Another important aspect is the funding that we raised in 2021. We were successful in raising -- we went for a LKR 8 billion rights issue, but we ultimately ended up in raising $9.5 billion. And that again, 1 key important investment was by Norfund, who came up with a LKR 1.5 billion investment so that now Norfund has 10% of the bank's total shareholding and that Norfund investment came despite the country's situation getting downgraded in the beginning of last year, and that has really helped us also to get the image up and also a lot of contribution coming from Norfund also in providing -- I mean they have one board seat and the input that they are getting was quite useful. And then we also successfully raised debt capital as well in latter part of 2021, raised LKR 8 billion Tier II listed debentures. And actually, that is also -- now we see the rates going up, the long-term rates going up. So I think it was a timely raising of Tier II capital so that, that would sort out some of our capital requirement for this year. And then I would like to share with you as well, we recently signed -- actually, this week, we signed the agreement with Development Finance Corporation of USA for a funding line of USD 75 million. And we are quite comfortable that we should receive those before the end of this quarter, making us, again, the ability to provide some low-cost funding to the SMEs and the needy area using this USD 75 million, that's about LKR 50 billion. So this is about the interest ratios on the financial performance. Unfortunately, though, we have done so well, the closing price of the share, naturally reflecting the market sentiment has further come down from LKR 78 to LKR 68 or LKR 69. Earnings per share annualized -- from LKR 23, it has come down to LKR 20 mainly because of the number of shares that we [ retruded ] with the increase in the share capital base, the denominator has gone up. So that is why the EPS has come down. ROE annualized level, again, 12.27% compared to 13%. This is again because of the high capital base but the returns -- our return is high. ROA almost at last year's level of 1.59, 1.55 in this year, and book value of the share also has come down, because of again the number of shares being increased, from 192 to 165. Price to earning ratio remains around 3.3 and price to book value at 0.4. I think all the banking sector assets are priced at this level, unfortunately not reflecting the real potential. However, that's some ratios on the investor -- investor ratios. Then on the capital and liquidity position, we are quite strong here. Basel III common equity capital base at 10%, again improved from 9.1% to 10%; group level, it is 10.5%. Then the total capital ratio from 14.3% to 15.4%; so about 100 basis point increase, minimum is 12%. So we are quite above the minimum requirement at a 15% total capital ratio. Liquidity ratios are very much above their minimum requirements, 193% liquid coverage ratio, net stable funding, all are much above the minimum requirements as per the regulatory requirement. And let me touch on a few things on the strategic focus area as well. That's about the future. I think that's the key, how we -- on this strong footing, how we are moving forward. So end of 2020, we came up with V25 strategy. Having achieved our 2020 goals much earlier ahead of 2020 plan. And in that, the one key area is doubling the balance sheet to cross LKR 1 trillion. And we are well ahead of that. I think we have crosse LKR 700 billion this year, and also tripled the bottom line mainly through more fee-based income. So there are key areas that we are focusing. One is the digital drive. Now that's where we have been investing and also reaping the benefit. We have seen that we have changed our market or the brand positioning also to now rebrand us as The Future is Banking on Us, showcasing our digital capabilities. And I think we are in a very strong footing as a mid-sized bank to launch these digital technology. And we have been doing it quite well. We -- latter part of last year, we introduced NEOSBIZ, this is actually based on the success of the NEOS app. On NEOS app alone, last year, we had more than LKR 137 billion transaction through the new NEOS app. On that success, we introduced NEOSBIZ; this is mainly for the SMEs, business banking clients so that they can do the activities, the banking activities using the mobile app. And also, we launched the first time the virtual KYC so that the new customers need not come to a branch to open up their accounts so that you've seen the V-KYC with the tie-up with the registrar persons and also through the analytics and robotics, assessing the customer's virtual behavior and then matching it so that you need not come to a branch to verify your V-KYC. I'm happy that we have seen quite a good progress in opening new accounts, even not even in Sri Lanka and overseas accounts and also even remote areas where customers are -- it's difficult for them to come to the branches, so they have been opening accounts. So that's actually quite a good initiative with a lot more than we have been planning, the act that we are working on, on the share trading platform and some of the others that have been planned on the digital front. We also launched the NDB Zee product. That's for the youth with various features, again getting them to use the mobile app and also on the digital platforms, giving low-cost services. We also launched NDB Privilege Select Plus. I think we had the best privilege or the highly net worth account base and then also NDB Family Banking. Banking on women is also another initiative that we worked, again, building the ecosystem, getting women to participate more in the economic development of the country and sharing and giving them opportunities to grow. So we started Vanithabimana award scheme in 2020. And this year also, we have second phase going on, and we had a Grand Finale on 8th of March, The Women's Day, recognizing the women contributors and also encouraging them. And despite all that, I think despite a pandemic, we have been continuing support to our customers, affected customers and also the staff, ensuring their safety. So all that, I think, all around good performance and a lot of focused area in terms of the strategy, especially on the customer centricity. Looking at what customer wants and provide solutions rather than we selling what we have. So that would be the hallmark and I'm sure the V25 strategy, all the staff have been advised, so that I think with -- now things picking up, we will be -- it's accelerating our V25 focus to reach these numbers quite fast. And I think it's my last slide on the way forward, the tax implications. We saw FSVAT increase to 18% from 15%. So that's one challenge that we have. There's a one-off surcharge of 25% that will be introduced for the corporates, who have earned more than LKR 2 billion. So naturally, based on last year's earnings, there will be a substantial tax payment on that. And then the social security contribution of 2.5% on turnover that has gone up again. So effective tax rate of the banking system is more than 50%. So that's one challenge that we had to basically manage. But on the other side, we see opportunities in the local manufacturing and import substitution program and also growing and supporting the export side and also growing our remittance base because that's a key area that we are focusing on and also supporting the exporters. And that's where with the DFC funds coming in, that would actually help us to support these at a lower rate and also provide some longer-term funding. And then we -- on the risk side, I think we continue to see some stress in the credit quality. Now the customers are coming out from the moratorium early this year, some of the tourism customers from mid-this year. So there would be some stress. So that's why we have taken some precautionary impairments as well, but we need to manage this carefully. We need to support still those customers, pull the umbrella and get them to come to a level that they can service their debt. Another area is the exchange rate volatility that we are expecting, also the current exchange crisis, the lack of exchange, that is also another challenge that would have an impact going on -- going forward with regard to future fee-based revenue and all naturally because the lack of dollars. It's not only limited to NDB, but all the banking sector is faced with this current challenge. So that one concern and the potential implications coming from the challenging ForEx reserves, plus now the additional rising inflationary pressure that we are seeing, most likely the rates might go up. So that's another risk that we are faced with. But I think Bank has a very capable team, a very strong management team who have seen these ups and down, all these cycles, and we have been carefully managing all that, and I'm sure this year as well, with these challenges, still we should be able to overcome and do well as we move forward. And that basically ends my prepared presentation. I would thank the finance team for putting these numbers together and having this ready for me to present. And we are now ready to take up any questions. And with me, we have my team that I mentioned, for us to share whatever the questions that you may have. [Operator Instructions]

Okay, there is a question, will NDB declare a dividend for 2021? I think, of course, yes, I think, I mean, the bank is making returns, do we have to declare dividends, but we have to also have a balance in terms of capital adequacy and all, but probably it is up to the Board of Directors to also decided by the indications. Certainly management would also recommend some dividend declaration, keeping the capital reserve ratios also intact. So question is the clarity on social security level of 2.5%, will it be on NII or interest income or total operating income, probably Suvendrini, you can take that question.

So this fees is still not legalized and we have yet to receive clarity on it. There are many interpretations. So even we are not quite sure of the base.

There is one more on, what your expectation from the 4th March Central Bank policy meeting? I wish I have a crystal ball to talk about it or Niran can you share your views. Niran, our Head of Treasury?

Yes, it's a tough question to answer, but anyway, as per the market sentiment, since the treasury bill yields and the treasury bond yields also have slightly picked up over the last couple of options, there is sentiment that there might be a rate hike addressing the inflation as well. But we still feel that since they have done a revision and the rates have adjusted upwards to some extent, probably because of the current economic situation, also the high borrowing cost will dampen further the borrowers or the SME sector. So probable chance is there that even they can pull the rates as well unchanged. But the sentiment is there for a rise in the rates, but we are not 100% sure what the Central Bank will do taking other reasons also into consideration, especially the borrowing costs going up will have dampened the economic growth, [ possibly so ].

Yes, another question, thank you for the presentation. Have you seen a deterioration in debt services level of import-relying customers? Yes. I think going forward, we would see that because the limited available foreign currency, so you need to ensure that, that is distributed among the clients. So we have a very structured way of allocating these funding. Every morning, there is a committee that will decide. So we also prioritize the essential items. There's a priority list also, which is in line with the regulatory direction. So I am accommodating this. But in that process, there can be some customers who may not be able to get the required level of foreign currency to do the transaction. So that might lead later on to some of the serviceability of their debt. So in which case, we have to look at restructuring them and then supporting them knowing that it's a genuine situation, and then we have to support them. He has another question, which downgrade has triggered further impairment on foreign currency bond side? What was the probability of default, should the 20% and [ LGT ] is used for this increase and how much in total taken as impairment for foreign currency bond portfolio so far? Is there anybody who like to take that?

Yes. So on the [ PDs ] we have applied a [ PD ] of 30%, that's based on the country downgrading by Fitch and the other rating agencies and that has been mapped to a rating scale. So that was applied across the industry. And in terms of [ LGT ] we have applied 20%. So all in all, we carry approximately 2.3 billion as impairment for foreign currency bond portfolio.

Next one on excess liquidity. Niran, you can take this. [ Core net excess equity ] is requisite around LKR 700 billion. You see this easing anytime soon?

That, of course, I think we have to see some inflows, foreign inflow so that you can set it off against your reserves and your liquidity level. So the chances are less right now that it will ease into a comfortable level. So we might see this shortfall for extended time period.

Okay. There's one more. Your thoughts on NDB's foreign debt payment capacity. I think we are quite comfortable with that. If you look at our balance sheet, about 17% of the exposure is in foreign currency. But yes, they have been deployed in foreign currency loan portfolio. So it's the ability of these exporters to repay and naturally exporters are doing very well, so that we are quite comfortable at our ability to service these foreign currency obligations as and when those are matured. Was the previous probably of default on foreign currency bonds at 20%? No, I did that...

10%.

10%, that was increased to 30%. How with this your ISP portfolio, are adding or reducing? I think we are not adding, we are reducing. We saw a payment even in January this year, and there are some maturing in July. So we are comfortable that we should be able to get that reduced as well. But all in all, I think annual report would give the details once it is published. But very high level, we have roughly around $150 million in [ ISPs ] at various tenors, maturing. What is NDB's outlook on asset quality for 2022? I think we had seen, despite all the COVID situation and all, NDB's case, I think the question is related to NDB. So in our case, we are quite comfortable that we should be able to further improve the asset quality. We saw an improvement despite the COVID challenges and all, so that NPL ratio improved to 4.65%. This year, most of the customers who were under moratorium are coming out from their moratorium. So that's why we have been individually approaching them, especially the business banking, SME teams approaching them. And so far, our feedback is that we will be able to serve these exposures. So at the moment, we are comfortable that we should be able to manage this but it's all developed -- depends on how the economic revival is also happening, current exchange situation, the power crisis and all that -- these are all another combination of factors that might affect the overall banking and the industry environment. That might lead to some deferments, which is something we have to be mindful. But at the moment, we are quite comfortable that these customers should be able to come out from their challenges. How much of the loan book is still under moratorium? I think somewhere around 15%, 16%. Yes, it's around 15%. It has come down from 20% to 17% now around 15%. Okay. That's one on how much of [ ISPs ] for NDB got matured? I think I did this too much updated. I think we don't want to get into those details. Next question is by how much has your SME book grown year-on-year, quarter-on-quarter? Indika you would like to take that?

Yes. [indiscernible] Year-on-year growth is around the 12% and at same time -- [Technical Difficulty]

[Technical Difficulty] SME remedial unit became. As a result, we see -- some of the settlement of highly impacted SMEs as well because with the remedial unit we look at the SMEs and we -- based on the cash flows and based on the present sales of the business, we gave some solutions. As a result, we saw an improvement in the NPL position as well. So I think we expected some of the things beyond our control. We feel like the power cuts and the other -- the dollar prices being there. At the moment, we see the SMEs are resilient, but hopefully, the things get sorted, then we'll be able to further improve the quality side as well, portfolio quality side as well. These are the questions that we have received so far. [Technical Difficulty]. Will the bank rate, the surcharge tax impact adjustment from the next quarter and how is it going to get counted and what is the estimated number?

Okay. So on the tax charge, the impact will be the taxable profit for the year 2020 and not 2021 and it should be on accrued basis and how we will account it is against equity and we estimate approximate around more than LKR 2.5 billion.

Okay, that's a one more; what contributes most in the fee component between digital services and loan? I would say that it's equally contributed; loan growth, we had 19% growth. So there are, again, I think we had focus both on the trade side. So that's helped us to grow most of the trade and fee income. Digital side also quite a substantial growth because it's a low-cost service that we have provided so that very few small fee, but when the volume is high, we do collect fees on that. So I think both have contributed. Does the bank see an upside to solar loans under ongoing power crisis? Yes, of course, probably Ishani, Ishani is setting our project finance, I'm sure she will share some of her insight, but I'm quite happy to share that NDB has been in the last 5 years, providing support for the government's drive in getting the renewable energy sector. So the last 5 years, total Sri Lanka's renewable energy projects, NDB has financed more than 30%, so that also talks something that what NDB has contributed to the economy. So Ishani, can you?

Yes. We have seen a significant interest in solar. And as of now, we have a very strong pipeline, all the project promoters are now finding mechanism of managing the capital [indiscernible] foreign exchange challenges. We see a significant interest.

Okay. Probably Sanjaya answer the next one. The question is, has your CASA granularity improved?

Yes, certainly, it has improved, especially helping help by the products that we have introduced. So that is paying dividends. So therefore, I would say the granularity has improved significantly throughout the branch network, both in terms of individual as well as the business plans.

Thank you, Sanjaya. There is one more on... Will there be a chance of further capital raising on the back of prior tax payment surcharge of 25% and increased risk on impairments? Unlike in the immediate future, I think we are comfortable with the impairment side, but if this tax surcharge continues, so naturally, we would be compelled to but [ at these extra charges ] we have been advising only for 1 year. So at the moment, we don't see any requirement for us to go and tap capital -- but I think later on towards the latter part of the year based on what the developments are, we may have to consider. But right now, there is no need for us to raise capital because, as I mentioned over 15% total capital ratio. So we are quite comfortable on that. There is a question. Will there be a chance of minimum capital requirements being revised back to original levels?

From 8.5, it came down to 8%...[indiscernible]

Unlikely it will remain this year. Those are the questions we have. I think we have answered all that you all have raised. But I'm quite happy to see a lot of questions coming in. So we are happy to provide whatever clarity that the investor community you would like to seek. Okay, I think that ends, probably it is 11:30 so that I would like to thank everybody for taking part and be part of NDB's investor webinar. Thank you for your participation, and thank you for being shareholders and also keen investors in NDB. And looking forward to your continued participation in these webinars because that's one thing that we are quite keen to share is that we are very open about sharing this story, every quarter we have been doing with the Investor Relationship management side. And Bank has a lot of plans, the growth plan in line with our V25 strategy. And I'm sure that we have a great team to work and good staff who can deliver that. So that we are quite comfortable that we should be able to do well and continue this growth momentum that we have been maintaining over the last 5 years in more years to come. Thank you very much, again, for all your patience and taking part in this investor webinar. Thank you. With that, we'll close the investor webinar.