Punjab & Sind Bank (533295) Earnings Call Transcript & Summary

On behalf of Punjab & Sind Bank, a very good afternoon, ladies and gentlemen. I would like to thank you all for taking out time in joining us today. I welcome you all again to the virtual analyst meet on the announcement of the Punjab & Sind Bank's quarter 2 half-year ended September 2020 (sic) [ 2022 ] financial results. [Operator Instructions] Before we begin, I would like to introduce the management who would be addressing today's virtual analyst conference. On the panel from Punjab & Sind Bank's management, we have Shri Swarup Kumar Saha, Managing Director and CEO; Shri Kollegal V. Raghavendra, Executive Director; Dr. Ram Jass Yadav, Executive Director; and Ms. Mahima Agarwal, CFO. [Operator Instructions] I would now request our Managing Director and CEO, Shri Swarup Kumar Saha, to address the gathering. Thank you, and over to you, sir.

Thank you, Diksha, and good afternoon to all the participants in this Q2 analyst call of Punjab & Sind Bank. I will mention some of the highlights of the results that were declared today. The total business at the bank is INR 178,977, showing a growth of 5.60%. The deposits was at INR 105,238, showing a growth of 3.27%. And advances was at INR 73,739 crore, showing a growth of 9.12%. The CASA grew by 13.89%. The net profits of the bank significantly improved on a Y-o-Y basis to INR 278 crores. That is a Y-o-Y growth of 27.51% and 35.61% on a sequential basis on a Q-on-Q matter. The NIM of the bank has also shown improvement to 3.06. The gross NPA has been significantly brought down by 487 bps on a Y-o-Y basis to 9.67%. The net NPA has also shown a similar trend and has been reduced to 2.24%. The provisional coverage ratio has been increased by 472 bps to 89.16%. The cost-to-income ratio has shown both sequential and a quarter-on-quarter downfall. The RAM advances has grown by 16.18%. The breakup of the growth story of RAM is retail has grown by 18.95%, agriculture at 11.86% and MSME at 17.46%. The net interest income has also shown a satisfactory improvement of 25.61% on a Y-o-Y basis. The return on assets was at 0.84%, showing an improvement of 12 bps. The return on equity also has shown an improvement of 483 bps. The yield on advances stood at 7.67%. The operating profit has shown a sequential growth of 26.19%. These were the -- some of the highlights of the Q2 performance of the bank. And now I am opening the floor for question and answers. Thank you.

[Operator Instructions]

So while on a year-on-year basis or the quarter last year '21 to '22 basis, the performance seems to be good. But sir, as compared to Q1 to Q2, I mean, on most of the parameters, especially the credit growth, when the whole industry is growing very fast now for the last 2 quarters, our bank, in spite of being comparatively having a small base, which has lot of opportunity to grow faster than other banks, peer banks, has grown only 1.39% on credit. So this is my first question that why are -- is it that our policies are very rigid? We are too overcautious? Or because of the past happenings which has made us overcautious that we are not growing our book because your CD ratio is still only, I think, 70%. So this is my first question and observation. If you may please answer, then I can go for my other questions.

Yes. Can you have the second question also, so I can answer them back to back?

Okay, sir. So now is our slippages also as compared to the last quarter of INR 321 crores has gone up to INR 377 crores, and cash recovery has gone down from INR 305 crores to INR 192 crores. So sir, I want to have your view on the future next 2 quarters of the FY '23 that however we placed as regard to the total overall slippages and cash recovery target for FY '23. This is my another -- on the recovery front and slippage and NPM movement front. This is my another observation. Third one is that, on the treasury front, we seem to have done little better because in the -- if you look at the treasury income, INR 7 crore as against INR 50 crores of losses. So going forward, with the interest rate still hardening up, U.S. Fed has also increased again 70 basis points and there is a chance of RBI also increasing maybe 50 to 60 basis point, where do we stand on our treasury book and treasury trading operations? And how are we going to close this FY '23? And what is the outlook for that? So advanced credit and treasury, these are my first 3 questions and some observations, sir.

Okay. Thank you, Mr. Ajmera, for your questions. First of all, on the credit growth that -- the concern that you have raised regarding growth of the bank vis-à-vis the growth of the other banks, I'd like to mention here, yes, on a sequential basis, maybe our growth doesn't seem to be showing a positive trend to a large extent. But if you see the trend of the bank over the last 3 quarters, in the March financial year of last year, FY '21/'22, we had a year-on-year growth of 3.8%. In Q1 of the bank results, our growth was above 7%. We have brought the growth to the level of 9.12%. We may still argue that this growth is not as per the growth of the system, primarily because the bank has taken a conscious call of rebalancing its portfolio within the corporate and the RAM segment when the bank was going through a rough patch due to mounting losses and a lack of adequate capital. So there was a direction on which the bank has decided that we will be consolidating more on the retail, agri, MSME segment and reduce our percentage exposure to the total advances in the corporate segment. We are conscious of the fact that we need to grow. And for that matter, if you see our RAM segment, growth has been over 16%, still in the system, with a healthy growth of retail in 18.95%, agriculture at 11.86% and MSME at 17.46%, which is more or less in line with the systemic growth in this segment. So we are conscious of this fact that we will try to improve -- increase our credit growth in line with the system. But because of the legacy that we had carried for a long time, we are slowly pacing ourselves to that level. So 7% Q1, 9% Q2, maybe around 12% Q3, and we are giving a guidance of over 15% for the financial year end. So we would like to bring that -- pace it up in a gradual manner. And if you ask me on what would be the composition of the growth story, we expect that, as I said earlier also in my earlier Q1 interactions with all of you, that we expect a 20% to 22% growth in the RAM segment, and we are looking at a 7% to 8% growth in the corporate segment. And to the extent, at least on a Y-o-Y basis, we have moved a bit positive -- we were at a negative trend, so we have reversed the trend a bit, and we have grown 2.53% on the corporate segment also. So we are going to move that upwards and maybe at around 7% and 8%. So my overall mix of RAM and corporate to be between 50% -- 54% and 46%, with a bias towards RAM segment. So that was as far as the credit side. On the asset quality side, our sequential slippages, though, has shown an increase of around INR 55 crores from INR 321 crores to INR 377 crores. That was mainly due to 1 mid-corporate chunky account of around INR 75 crores. But what we can tell you and that we have recovered that additional slippages beyond Q2 of INR 54 crores already during the month of October. And in fact, I'm happy to share with you that, during the month of October itself, we have already had a recovery of upgradation of over more than INR 200 crores. So our gross NPA and net NPA has been -- gross NPA has come below 10% now. Net NPA is around 2 -- it is below 2 -- now it is at 2.24%. So we are conscious of the fact that our asset quality has to improve. And as far as your point sir regarding recovery and upgradation in the Q2 vis-à-vis Q1, if you refer to Slide #27, you will find that our actual recovery and upgradation has increased to INR 505 crores compared to INR 383 crores in the first quarter. And if I see a half year comparison, and if you see in my Slide #28, my half year slippages is INR 538 crores compared to INR 1,835 crores last year in the same period. So we are moving in that direction. As I said, certain accounts, one of the chunky account had slipped into the NPA category. But for that, we have already provided 50% in that account upfront, and we have provided INR 210 crores of additional provisions beyond the requirements in this Q2 itself, so that my provision coverage ratio has now increased to 89.9%. So that will be a cushion of my -- in my going forward on my asset quality front. And on the treasury front, yes, things do not look -- it has tapered a bit, but still it is not that bright. And as far as the treasury income is concerned, we have reversed some negative trend in Q2, as you said. But with a hike which is likely to happen, but I feel that the hike of 58 to 60 bps, as you are estimating, has already been discounted in the market. But we are -- we have brought down our modified duration, and we will monitor the situation further and bring down the duration consciously so that we don't have too much of impact on our portfolio. But going by the current trends, we feel that we have a fairly comfortable position in terms if further something -- unless and until something drastically moves in the market due to the global situation that we are in.

What is our modified duration period now?

2. -- yes, Disha, over to you?

[Operator Instructions]

Can you hear me?

We can hear you.

I wanted to ask you about the asset quality. You are saying that there is a recovery of about INR 200 crores in October. Can you please explain that bit?

Yes, because some of the accounts which were -- because in the last week of September, we had certain unexpected slippages, so we got very strongly, and we moved through the field very strongly. And from that respect, we have already recovered in a certain segments and in the middle ticket accounts, we recovered around INR 55 crores from that segment. And we had 1 or 2 good recoveries in the corporate segment, which has made a total of around INR 200 crores plus.

So the corporate recovery, is that the consortium lending? Or it's just your single lending?

No, it is multiple consortium or mixed.

Okay. So it's not a resolution through the NCLT or anything like that?

No, no, no. It is not an NCLT resolution.

Okay. And what is your SMA 1 and SMA 2? How does that look?

We have shown in our slide of this number is...

I just wanted to know like if there will be any unpleasant surprises going forward considering that the interest rates are also rising.

I know, I know. See, my SMA book in SMA 2 book -- SMA 2 above INR 5 crores is INR 288 crores, and that we have already reduced to nearly INR 219 crores by 31st October. My SMA 1 book, which I have shown above INR 5 crore as INR 542 crores has been reduced to [indiscernible] So -- and we have 1 mid-corporate type account, which has been -- which is technically NPA as per the regulations, but there is a litigation case going on in a high court, wherein the court has put a stay on classifying the account as NPA. So we have not classified that NPA, but we are holding much above the required provisions. We have already provided for around 40% to that extent. So we have covered that well enough. And we have provided, as I said earlier, additional INR 210 crores of additional provisions has been already kept in this, which is due to hedging and some 1 or 2 corporate accounts.

The SMA 1, you said, has been reduced from INR 542 crores to INR 342?

40.

INR 340 crores. Okay.

SMA 1.

Okay, okay. And what is your outlook for the asset quality? I mean, will there be any surprises considered that the interest rates are rising so -- quite fast and...

Yes. But we think, yes, of course, there will be some stress in the SME book because of the accounts which were restructured under various schemes and all that. But we feel that the -- for our bank of our size, the portfolio that we carry, we are well in control of the things. And there will be no -- of course, on the corporate side, there's no surprises. And on the small-value, small-ticket loans, we are monitoring this very closely, and we have created war rooms. We have declared war against NPA, the field functionaries are on the field, on their toes going after each and every borrower. So let us see how it pans out. But as of now, we have nothing -- too much to worry about on that front. If you see our recovery upgradation, I think I missed out that answer of Mr. Ajmera there that we are giving a guidance of recovery of upgradation of over INR 2,000 crores for the current year. And already, in the first half year, we have done INR 729 crores. So those things we have lined up certain NARCL accounts also, which will help us in this process.

NARCL, how much will you transfer?

We are -- the process is on -- as you are aware, the process is all on, but identified account is 7 for us, amounting to INR 1,579 crores, round about INR 1,600 crores. These includes the 2 slides also of INR 1,400 crores.

Okay. INR 1,400 crores. Also -- and but that I think will take some time to transfer this...

Yes, it will take -- but the pace in which it was earlier moving, the pace has really moved very fast now. I mean the news are already coming. The have the 1 resolution is going to happen. There's another resolution of Meenakshi, which is very closely being done. So we are having 7 accounts. We feel that 1 or 2 may have impact -- have some conclusion in the current quarter. But in Q4, we expect, yes, some more of them.

Okay. And which other under NARCL is close to resolution?

We have Jaiprakash Associates of Pioneer Gas Power, GMR, Rajahmundry. And future retail, we have a very small component. I'm just mentioning the name only, but it is a very small component of over INR 5 crores. But the major ones are SREI and Jai Prakash family, Meenakshi and GMR.

Okay. Okay, okay. And on the deposit front, can you tell me like what are your preparations to -- how are you preparing yourself?

Yes. So as you're observing in the market here, again, with the inflation rising and the credit offtake happening in a big way. The bank -- all banks are now actually in the market for mobilizing deposits and are offering quite competitive rates in the retail segment now. To match them or to be competitive, to remain competitive in that market, we have also designed products of 601 days and 300 days. On the 601 days, we already started publicizing the -- now. and we are giving to a level of 7.85% on the super citizen -- super senior citizen category. So that is the highest level, and the senior citizen and the normal. So we are prepared. We have taken out of product from the 300 days also. And one more thing that is we have now started is mobilizing of salary accounts. What we are trying to do is that, because of our low CASA base, we need to mobilize not only savings account, but we need to mobilize more and more salary account. What we have done is recently in 2 success stories [indiscernible] is that with the municipal corporation of Chandigarh, we have opened 10,000-plus accounts, salary accounts of their employees recently, with under a package. And we have also opened more than -- yes, in the process of opening. We have already opened around 50%. In the process of opening 14,000 salary accounts for Nagar Nigam employees of Lucknow. This is an area which is giving us a lot of traction, and we have given competitive rates in some of the higher categories of savings accounts also let mobilizing S&A deposits. So overall, we -- on the term deposit side, retail side, we are aggressively in the market for -- in terms of rates. And on the CASA side, we are on the -- also trying to generate more and more salary accounts for the bank.

And you are also in the bulk market? Are you also...

Yes, yes. Bulk market, we are in the market to the extent of like credit requirement. So that is the balancing factor we do. But we will -- because sometimes bulk rates are now and sometimes lesser than a segment. But we are conscious of what is requirement, when is our deployment going to happen. Accordingly, we claim our policies or take deposit...

Excess SLR you have? No excess SLR?

How much excess SLR we have?

You have. Okay.

12%, 12%.

Manju was from Indian Banking News. We'll get -- try to get back to you. [Operator Instructions] So we have questions in our chat box from others. Mr. Shah, I'll read the questions out to you one by one. So Manoj from Pioneer has asked regarding NPA. He has asked what is the status of NPA in this term and if there's any improvement from last term. If not, what steps bank plans for better improvement of NPAs?

Yes. I think I'm happy to share that my asset quality has continually shown improvement. When we started in March '22, we were at -- gross NPA was at 12.17%. We reduced it to 11.34% in Q1, and now we are at 9.67%. And if I call [indiscernible] my 9.67% is compared to 14.54% in September '21. So there is a good improvement in my gross NPA. We have been brought -- we have been able to bring it down to a single-digit figure. On the net NPA side, we are at now 2.24 and against the 3.81 in September '21 last year. So that shows significant improvement also. As I said earlier, my recovery of duration has improved from INR 383 crores to INR 505 crores. And sequentially, my PCR has improved 39.16. My credit cost is at very low at 0.09. And my slippage ratio is at 0.58. So overall, we have given a guidance that our gross NPA should be below -- we had earlier went below 9%. Now we are revising the guidance, and we are saying that it will be below -- sorry, below 10% we had given earlier. Now we are saying that it will be below 9%. Our net NPA, our guidance still remains at below 2%. We have given earlier guidance of PCR of over 88%. Now we have marginally improved it, and we are saying that it will be over 89%. And the credit cost will remain below 1%, and my slippage ratio below [indiscernible] Overall, I think the asset quality will continue to show improvement in the current -- in the future quarters of the current financial year.

Our next question is from Vedanta Lahiri from Echo of India, Kolkata. His congratulations for good RAM growth of 16.18%. And what are the reasons for such good numbers? And what are banks projections for quarter 3?

Yes. So as I was saying earlier in a reply to an earlier question, that our bank will primarily try to grow in the RAM segment and have a mix of around 55% RAM and 45% of corporate. So we are working towards that segment. The current RAM segment growth of 16.18% has been helped by a strong retail growth of 18.95%, that is, approximately 19%, agriculture 11.86%, MSME 17.46%. Within the retail, our housing loan has grown nearly 10.81%. Vehicle loan has been 19.76%. That's [indiscernible] the 100%, I would like to submit here that the bank has brought out a new product on preapproved personal loan category, which is our database -- data analytical base and it is on the digital front now. So that is also giving me traction. We have already done a portfolio of around INR 130 crores up to September. It has increased further now. It is more than INR 150 crores now. So again, our new product has been brought in. So that is giving traction. Home loan, 92.58% of Y-o-Y growth. On the MSME front and on the housing loan front, we are having co-lending tie-ups with various NBFCs. We have already built a portfolio of around INR 500 crores, in fact more than INR 500 crores as of now, and we intend to make it around INR 1,500 crores to INR 2,000 crores by the end of the financial year. So all in all, if I sum it up, my RAM segment, we expect a growth of around 20% to 22%, [Foreign Language] and corporate growth around 7% to 8%. So my overall credit growth of 15% growth still remains as per our earlier guidance.

Our next question is from Hardeep from Ajit. And he is asking if there are any special offers for benefit of customers?

Yes. So as I said now, just a few minutes back, that we have recapped our deposit products and our loan products also. On the deposit front, we have taken all special products on the retail term deposit of 600 days and -- 601 days and 300 days with very, very attractive rate of interest. We have taken out salary products for the banks to garner more and more salary accounts. We have taken out current account, smart biz accounts, which has good attractive packages in terms of our -- to augment our current account delivery. And on the asset side also, during the festive season, we brought out various schemes, wherein we have waived process fees. And our rate of interest has become very attractive in the asset side and particularly on the retail and MSME side. So we are finding good traction in those segments also and [indiscernible] that whatever corporate goals are regarding our growth story on the credit side will be achieved by these -- such sort of measures.

Also another question from Rajiv, who is from -- and he has asked regarding new loan schemes for benefits of customers.

New loan schemes. Mahimaji, can you -- I just give the briefing. On the new loan scheme, as I said, on the asset side, we have brought out a very attractive pledge scheme for warehouse receipts. This is a very, very attractive scheme. I think very few banks have this scheme, wherein we are doing warehouse receipt financing through the e-visit methodology. So that is an attractive scheme for the customers of the bank. We also took out the MSME -- various MSME schemes, and [indiscernible] rate of interest for the new 2 bank customers and the -- we carried out a campaign in the name of -- MSME scheme and we gave a very attractive scheme on that front. We are also running a current campaign now also on the MSMEs and the housing loan front. So these with attractive rate of interest and various concession in the processing fees and other fees. So anything you want to add here? Of course, another scheme of which is very attractive is the preapproved personal loan scheme. We will build this portfolio. We have identified around 40,000-plus customers under this scheme where we have given them offers on a PAPL methodology. And now digitally, we are enabling them and these loans or preapproved personal loan will be done in 3 clicks only. We have devised our systems, and procedures will be coming out shortly in the market with this marketing of this scheme. However, the scheme is already on. Now we have brought it on a digital platform. So this will help me to augment our other schemes in a big way.

I will read out another question to you, who is from [indiscernible] from Uttam Hindu. He has asked that in spite of more than 40% branches in North of India, what is your plan specifically for this area?

Yes. what we have -- as you have rightly said, but my concentration of my network is primarily in the northern belt of the country, and we have more than 600 branches in Punjab itself. So we have taken a call on this, and we think that, for to expand, we need to expand primarily to the other segments in the first phase. So we have identified the approvals internally, we have got for 50 branches. So initially, we will be -- we have identified places of 25 branches pan-India, other than the Northern Belt, particularly in the eastern -- western sides and the southern sites. And we already opened 2 out of them in Rajasthan very recently in October itself. So we'll be opening 25 branches in the current financial year and the next another round of 25 in the next financial year. One more area where we, in terms of our delivery network, we'd like to increase our corporate VC network. So we have floated an RFP for a corporate VC. So we expect to engage 2,000 to 5,000 BCs in a very -- in a period of over 6 months' time, so that, that will also enable my financial services delivery to the common services of the country.

Also, Mr. Lahiri had a request to speak to you. [Operator Instructions]

Sir, a couple of questions in this round. One is on the IT front. On the digital front, I think we made some good progress. And I think at the end of the last previous year, also we have launched certain products. And now you are saying that your personal loan is also digitalized in only on 3 clicks. So will you elaborate a little more on our IT digitalization or going in the digital way, like for the -- all the retail products or MSME product? And how are we going forward? And what kind of budgeting we have for it and the time line for it? This is 1 question.

Can I answer that?

Yes, please, so that I go to another.

Yes, yes. See, as far as the IT technology platform is concerned, we are going through a process of upgradation from Pinnacle 7 to Pinnacle 10, which we intend to complete -- it was started in May of the current year. So any project of this size takes around 14 to 16 months' time. So the technological upgradation of our Pinnacle 7 to 10 will [indiscernible] complete by June '23. That is number one. And number two, till then, whatever physically -- sorry, whatever Pinnacle 7 is adaptable to in terms of improving my digital products, we will be taking them one by one. And once the Pinnacle 7 to 10 migration happens by June '23, we can take the digital agenda very strongly ahead in terms of -- because any digital agenda has to have a strong technological platform. Notwithstanding about this technological platform, what I mean to say is that we are taking out new products on the digital side. Our -- we -- first of all, in March, we made a humble beginning, having the unique app -- my mobile app. There were certain inconsistencies. There are some operating issues that had to be resolved. So one by one, we have resolved them. So my rating on my Unique app, which was around 2.6 in the Google Play store, has slowly crept and moved up to 4.3, 4.4. So it has moved above 4. So first of all, we had to address that issue, that the operative issue for a customer user [indiscernible] discourage him or her for using my app. So that is the first thing we did. Second thing, what we are doing, we are trying to bring in more and more value-added services as we -- we'll be bringing in the PAPL, the pre-approved personal loan through this product. We are also going to bring in the online account opening. We are in the final stage. The video KYC part has just to be the UAT and all that is going on. So maybe in a month or so we'll be able to bring that full-fledged in the system, where we'll be able to open online accounts through the app itself. On the -- and we'll be upgrading -- we have devised various products accordingly. We will be moving to WhatsApp Banking. We'll be moving to cardless cash withdrawal and customer acquisition via digital platforms. So these are some of the areas we need to venture upon. And on the asset side also, we like to be a bit focused on our digital part on -- particularly renewal, [indiscernible] renewal for digital process. So auto-renewal will also be implemented in accounts, at least, we'll start with below 10 lakhs of MSME accounts, STP Mudra. We're also -- on the Mudra type accounts, we'll also bring them on the digital platform and various other areas of products we'll be bringing them one by one on the digital platform. So we have a lot of, what you call, objectives in the digital area. I am very sure that once -- this will move parallel to our technological upgradation project. So once the total migration happens from 7 to 10, I think we will have a launch pad to go very big on our digital journey.

Sir, my second question on this round is, what is our total restructured book, including the COVID restructured and the previous COVID restructured book? And what is the -- can you give some color on that book that how much according to your experience, may slip into NPA out of the restructured book sir, [indiscernible] restructure?

Yes. Under the COVID resolution, we have given in Slide #33, under the COVID resolution 1 and 2, we have INR 1,339 crores plus INR 1,090 crores. So that is around INR 2,400 crores of our book. And we find that, yes, out of that INR 1,276 crores, which is outstanding, under GECL, we find that in Q1, our slippages was INR 16.93 crores. And Q2, the slippages was INR 14 crores. So overall, INR 30 crores have slipped in Q1 and Q2 from the GECL book. And, yes, so that is the color. And Dr. Yadav, if you want to add something on this?

No, I think it's absolutely okay, fine. And we have a very little amount other than this COVID and a framework announced by the RBI. It is -- total is INR 2,604 crores. And stress is not much there.

Sir, coming on this, our loan book, the interest rates have gone up, EBLR is 100% effective immediately. MCLR out of 190 basis points, how much have you passed on to the customer in terms of the like 65 basis or 70 basis points out of 190 points? And what is the composition? Is there any fixed rate advances still there in our books? And what is the percentage of BBLR, MCLR and other rates in the credit book?

I think the entire question can be answered in one simple answer that EBLR our component is 31%, MCLR is 51%, total is 82% in this component. So the EBLR is automatically passed on immediately in a T plus 1 basis. And MCLR -- decides from time to time, depending on our cost of funds, et cetera. So 82% of my portfolio is on a EBLR/MCLR.

Much in the MCLR like increase has taken place out of 190 basis points, which has been increased. Our increase in MCLR, how much has been passed on?

Dr. Yadav, do you want to [indiscernible] MCLR? You have an answer to that? I'll give it to -- as we discuss the other questions, I'll give you the answer, okay?

Our cost-to-income ratio is still -- but is still higher at 65.30% as compared to some of the banks have even your size or a little bigger than this. So any plan or any target or object about bringing it down to a lower percentage?

Yes, yes. See, we started the year on a cost-to-income ratio of around 61%, right? So due to the decreased income on the investment side from the treasury, our cost-to-income ratio had increased substantially in Q1. But I'm happy to tell you that in Q2, we have been able, in spite of having a lesser treasury income compared to earlier periods, our cost-to-income ratio, we have been able to roll back substantially from Q1 to 65.30 -- to 65.30. So the strategy is to increase income as much as possible. So my other -- income has to increase. So if you see our core fee income slide, that is also showing some traction in terms of our Y-o-Y and sequential growth. So that's why we are bringing in new products on the third-party -- on the third-party side. We'll be launching a co-branding credit card very shortly. We've been bringing out our stand-alone health partner RFPs also on the final stages. We'll be bringing out a wealth management RFP very shortly. We'll have wealth management. We'll be focusing on our non-fund business of commission exchange. And we have rationalized some of our income charges, et cetera. So overall, we are very conscious of the cost-to-income ratio is absolutely you are right is the highest in the industry, but we'll slowly bring it back. And by March '23, we expect it to be below March '22. And going forward, we will have a -- we'll try to bring it down to 55% on March '24.

That's great, sir. Sir, one thing on this pension -- additional pension burden, which is the revised revision and also the wage revision, which is expected, like how much have we -- I'm not -- because today 3 banks results are there. So I couldn't go exactly in detail of every slide. So what is the -- how much is being amortized for future out of this [indiscernible] and new wage revision again is coming up. So are we cushioned for that? What kind of burden...

Yes, yes, we are adequately cushioned. And in our -- in terms of pension, how much we have? INR 48 crores yearly and INR 12 crores per quarter. So how much is still left? INR 165 crores is still left. So we are -- as per the regulations, we are doing it on a quarter-on-quarter basis on INR 12 crores per quarter. And as for the settlement is concerned, we are okay. We will -- now the process is starting, but we are comfortable in that area. We don't have...

Sir, any kind of divergence in any RBI inspection or anything, or anything?

No significant divergence.

Okay. The inspection is done and the report has come?

It is under process. It has not been formally conveyed to us. But we understand from initial discussions there is no significant -- yes, but we still have to wait for the actual report to come so once we get the report, we'll be able in a position to comment granularly on it.

Okay. So I'll just leave -- again, I thought with you all is increasing the credit book to the loan book, which is ultimately our business and which will only bring down all our ratio, making them attractive because if you -- though I don't want to name, but if you take the example of say, smaller bank, maybe just double of your size on the Bank of Maharashtra, the way they have grown in spite -- and controlled the entire gross, net NPA everything, no further major slippages, 26%, 27%. And a proper balancing of corporate book also. Corporate is, as such, if not bad, you have to be selective. I mean, you have to open up. You have to -- accordingly send the messages down the line to the people that yes, you are -- I mean they are welcome. This is how with a proper composition, we can grow a little faster and make some more money for the bank and make some of these ratios a little attractive for everyone, for the investors also to come in, in this bank and invest -- so the number of shares are very less in the floating, but it's still -- that will give boost the confidence of the people, sir. Great interaction.

[Operator Instructions]

Sir, I have some questions. [Foreign Language]

For the benefit of all the listeners, for West Bengal, yes, like in any other state, we will be focusing on expansion. We are lining up [Foreign Language] Punjab Sind bank visibility, West Bengal and Kolkata and the surrounding areas [Foreign Language] and we are working towards that. So project to an expansion of a project of [Foreign Language]

[Foreign Language]

Mehraji the question is whether the expansion in West Bengal is in line with other areas of the state -- countries. Growth in RAM is in line. What feedback I get is that [Foreign Language].

[Operator Instructions] So I think we are done with our conference. I don't see any more hands being raised. [Operator Instructions] All right. So we will conclude our today's analyst meet. Thank you, everyone, for joining. Okay. I'm sorry. I think we have Manju.

Yes, I just wanted to ask Mr. Saha, like what is -- what will be your -- how will you now reshape the bank? What are your plans now that you have taken charge of the bank? I mean what will be your...

Yes, so the bank is historic bank of 114 years. And as any organization in any public sector bank in the country, the bank had gone through rough patches, had its ups and downs. But the great part is that the last year in the financial year '21, '22, the bank was able to make a historic turnaround and recorded the highest annual profit of INR 1,039 crores, which is the highest in the history of the bank. So with that base as of March '22, we now intend to make this bank future-ready and a techno-savvy bank. We want to make this bank a bank, which is the most efficient bank in the country. The bank will be small, but we will work on the efficiency parameters of the bank and try to make it the most efficient bank in the country. For that, we have various projects in mind. Number one is to get the technological platform up and running on upgraded version by June '23, number one. Number two, bring the digital agenda in the bank very strongly. So we'll be bringing the digital agenda. We have started taking steps on that. We'll be working on fintech collaborations, aligning with fintechs, co-lending with one of our key business areas. We are tied up with various NBFCs. We are in the online -- platform. We'll be bringing in a lot of more convenience on WhatsApp banking -- [ cab ] banking. So digitally will be one of the key areas. The third area, of course, would be the business growth. The bank, due to various issues of the past, could not grow in a desired fashion and had fallen back vis-à-vis the other banks. So bring the growth story back into the bank, with not repeating the past mistakes with good underwriting skills, underwriting systems and processes. For that, what we have done, we have segregated the sourcing and sanction in a complete way the entire back office -- the entire processing above INR 10 lakh loans is now at the back end. So we have done that part. We are bringing in new products. We are working on succession planning. We will be opening up for, as I said, on the on the asset side and on the deposit side, various products, the bank need to give new and new products and customize them. Call center would be a big project for the bank. We'll try to make the call center as a profit center of the bank, both incoming calls and outgoing calls. The outgoing calls to be utilized not only for sourcing of leads, but also for collection efficiency. We'll be trying to improve the collection [indiscernible] the call center. So we have a host of measures lined up for the bank. And as the bank progresses, as I said, the technological platform also has to be put in place. We need to do technological upgrade, what do you call collaborations on purchasing pool accounts from various NBFCs, so that process is also on. So we are conscious of how the importance of technological integration. Our HR areas, we have -- we are trying to get the best of the people from the market on a contractual basis. We have already positioned a Chief Risk Officer from the market. We are all -- we are in the process of identifying various CXOs also and including our Chief Digital Officer also. So we will be moving in various directions. And on a quarter-on-quarter, I'm sure we'll find the changes coming in the bank gradually. And we'll reveal those things as it comes and when it comes.

Your Internet banking interface is very good, I must say.

Thank you.

Yes, I have a joint account, it's very user-friendly.

Okay. Thanks. That's nice to hear. And we have created this omnichannel, which I think one of the few banks, which has an omnichannel experience in the Internet banking. So we are going to improve the digital platform in a very strong way. And thanks for your feedback. It will encourage us to do better.

Thank you, Mr. Saha, for the briefing. So with this, we conclude our analyst conference for today. Thank you, everyone, for joining the virtual analyst meet. You can also return to me or anyone from my team in case -- if you have any queries or any follow-up questions. We'll be happy to help. Thank you, everyone.

Thank you.