The Federal Bank Limited (FEDERALBNK) Earnings Call Transcript & Summary

Good morning, everyone. Welcome to the 92nd Annual General Meeting of the Federal Bank Limited, request all participants to please rise for the National Anthem. Welcome once again. I'm Amit [indiscernible], Secretary of the bank attending meeting on the registered office of the bank in Kerala, as we are collecting this AGM through video conference, please note that all the shareholders are kept[indiscernible] for smooth and seamless conduct of the meeting. Please also note that all the required registers, like the register of Directors, KMPs, contracts, arrangements and other documents required under the companies act are available for inspection. We will be able to provide copies of it based on a request through an email. Now I cordially invite Mr. A.P. Hota, Chairman of the bank, who is attending the meeting from the registed office of the bank in ottowa in Canada, to preside over the meeting and to address the shareholders. Thank you. Over to you, Hota Sir.

Thank you, Mr. Sameer. Good morning to all shareholders, the Board members and the other officials of the bank who are attending the 92nd Annual General Meeting of the bank. As the requisite quorum is present, I now call the meeting to order. Before we continue, I would like to request the participants for a few moments of silence in honor of all those who have left us during the year. Thank you. I now call upon the directors to introduce themselves.

Good morning. This is Sadananda Independent Director, logging in from [indiscernible] .

Good morning [indiscernible] , Independent Director, attending from a [indiscernible]

Good morning. This is Sudarshan, Independent Director, joining the meeting from New York, United States.

Good morning. This is [indiscernible] joining this meeting from Bengalore.

Good morning. This is Ramanan Moku joining this meeting from my office in Bangalore.

Good morning. This is Shyam here joining the meeting from my -- from the registered office in Alua Kochi.

Good morning, everybody. This is [indiscernible] Here, Executive Director, joining the meeting from the registered office in Alova.

Good morning, everyone. This is Harsh Dugar joining the AGM from Federal Bank office in Chennai.

Good morning, everyone. This is Venkatraman. I'm joining the AGM from the Head Office in Alova.

Let me once again extend a warm welcome to all our shareholders who joined us today for the AGM. The bank is conducting its fourth Virtual Annual General Meeting in compliance with the applicable regulatory guidelines for conduct of Asia. The bank had provided the facility to all the shareholders of the bank to cast their ports electronically on all resolutions set forth in the notice through remote e-voting from August 15 to August 17. This shareholders who have not cast their votes electronically through remote e-voting and who are participating in this meeting have an opportunity to cast their votes during the meeting through e-voting system provided by NSDL as per details mentioned in the Asian notice. The Board of Directors has appointed CS [indiscernible] Practicing Company Secretary as the scrutinizer to supervising the e-voting process. The result of the voting of all resolutions would be announced by the bank within the regulatory time line and would be made available in the bank's website, websites of stock exchanges of BSE and ANE and on the NSDL website. The regulations shall be deemed to be passed today subject to receipt of requisite number of votes. The notice of convening the 92nd Annual General Meeting and the annual reports were already circulated to all the members and hence, all the resolutions of the 15 agenda items as set out in the notice of Annual General Meeting is taken as a rate. The shareholders are requested to note that there were no qualifications, observations or comments on the financial statements or matters, which had any adverse effect on the functioning of the bank, mentioned in the audit report. Now I would come to the formal part of the Chairman [indiscernible] . Good morning, dear shareholders. I'm deeply honored and excited to be present before you as the Chairman of Federal Bank on this momentous occasion, the 92nd Annual General Meeting. Let me begin by expressing my heart felt appreciation for the invaluable guidance provided by our former chairman, Mr. S. Balgopal. Although I'm just 2 months old at chairman, I have 5 years of tenure in the board. Mr. Balgopal Saga City has laid the groundwork for our incredible journey. I had a privilege to witness during my tenure as a board member over these years. As we assemble here to reflect on accomplishments and advancements of the past fiscal year, I'm reminded of the indomitable spirit that characterizes the bank, enabling us to surmount significant challenges and emerge stronger. I feel our -- your bank is one of the most resilient banks in the country. And you would possibly, it would be very interesting or very thing possibly you would be delighted to know that today, we are at a place 5 years back right on this day, the ground floor of this building was submerged in water, just always informed by MD MCO. In fact, I find myself exceptionally delighted to take -- taking the role as Chairman at this juncture. There could not have been better time in history than this to lead Federal Bank. Our country India is currently experiencing an co-inspiring, it is presented that India will surpass Japan and Germany to claim the position of world's third largest economy by 2027. In the same [indiscernible] , India stock market is anticipated to become the third largest globally by end of this decade. This exceptional growth potential and the opportunities that will arise out of this scenario presents the bank with a unique opportunity to pursue our aspiration of building the most admired bank, especially our recent achievements, the successful qualified institutional placement, QIP and the [indiscernible] shares amounting to INR 4,000 crores has helped fortify our capital base, which is the raw materials for the required growth. This empowers us to seize the opportunity that lie ahead, giving us the leverage to lead, innovate and shape the future landscape of bank. Before we delve deeper into the Banks's performance, which will be elaborated by our MD later I wish to highlight some significant insights delivered by [indiscernible] Shaikan, Governor Reserve Bank of India. He emphasized the importance of governance practices for banking institutions. The guidance of the Board is drive a culture, where the expectation goes beyond baseline compliance and regulatory requirements and aim for higher best-in-industry staters, and this is what we strive for constantly at Federal Bank. Customer service ethical employee behavior, data privacy and cybersecurity are indeed the cornerstones that underpin our success. These pillars give even greater significance emerse innovation change and disruption. Over the years, the bank has nurtured and reinforced a robust internal control system. This system is fine-tuned to our risk appetite and mirrors our operations, sites, scale and [indiscernible] . The audit and inspection policy endorsed by the Board of Directors delimits the scope and authority of the internal audit functions. We have fortified our data privacy and cybersecurity measures to safeguard our customers and trusted information. Our commitment to cutting-edge technology is matched by our dedication to ensuring the security of our customers' data. We have reinforced our audit mechanism to ensure independent oversight. Our supervisory functions stand as the final bastion ensuring transparency and compliance across our operations through well-defined policies and training programs, we instill in our employees a sense of responsibility towards holding the highest ethical standards. High-end region Federal Bank, not just as a financial institution, but as a catalyst for transformation in the entire banking sector. Our commitment to innovation, excellence and ethics has propelled us to embrase digital era with open arms, and we are here to stay. Our digital at fort, human at the core philosophy embodies our commitment to harness the power of technology, while never losing sight of human touch that sets us apart. Our recent campaign. [Foreign Language] exemplifies this brand beautifully, making banking more accessible, personal and convenient. We seek to humanize banking in a digital landscape. We have embraced technologies like artificial intelligence, machine learning and robotic process automation to create personalized experiences for our customers driven by insights gained from robust analytical capabilities. Through strategic partnerships with diverse fintech companies, we have extended our reach to underserved segments democratizing financial services across the country, extending our impact to under sub dates. This aligns perfectly with our expansion plans which focuses on establishing 80 to 100 new branches annually over the next 3 years. We can emphasis on regions like Gujrat, Maharashtra, Tamil and Karnataka. These plants are grounded in the success of our recent branches, which have risked breakeven status sooner than anticipated. The fiscal year '22, '23 has been one of the monumental achievements for Federal Bank. We have set new records in terms of deposits, advances, total business, total income, net interest income, operating profit and net profit. This exceptional performance has been driven by our customer-centric approach, strategic use of digital capabilities, robust financial management and prudent risk management practices. Our commitment to innovation and forward-thinking strategies has been recognized to our such -- has been named on top India's best workplaces, building a culture of innovation by all, by grid place work. Additionally, our efforts towards digital advancement were economist with the best digital banking product, private sector bank award for federal [indiscernible] at the Lenta Digital Lending Transformation Global Summit 2022. How do you stay into the future? We are excited by the possibilities lies ahead. Our journey to success is not merely built on numbers and profits. It rests some trust, integrity and our unwavering commitment to stakeholders. Our value framework, build up CARES, C for commitment to excellence, A agility, R relationship orientation, E ethics and S sustainability. CARES will ensure that we uphold the highest standards of conduct and nurture strong relationships with all stakeholders. We will be hosting our 100th AGM in 2031, just 8 years away. With all our growth engines working in full throttle, we are sure that. By the time we will, indeed -- by that time, we will indeed be the most admired bank, not only on business sites or geographical footprint or magnitude of operation, but also on quality of service and impact on the customers and society in general. We would be a leading player in green finance riding on deep commitment to sustainability goals and sharp focus on technology-led innovative banking. Prominently, we acknowledge the need for continually reflect on the role of expectations of our governance architecture to ensure that Federal Bank remains at the kind of excellence during times of rapid change and uncertainty. I extend my deepest gratitude to our valued stakeholders for their unwavering support during the challenging times. Your trust and partnerships have been crucial in our journey. I'm confident that our dedicated teams efforts would lead us to even greater heights as we continue on our path to becoming the most admired Bank. Thank you for your time and continuous support. Now I call upon Mr. Shyam Srinivasan, MD and CEO of the bank, to address the shareholders.

Thank you, Chairman, Sir. Ladies and gentlemen, esteemed shareholders, a warm and hearty welcome to the 92nd Annual General Boarding meeting of Federal Bank. It is an honor to address all of you our shareholders, as we come together to reflect on our journey that has led us to this point. My gratitude goes out to all of you, our loyal shareholders who have stood by us all along and also to our new investors who have come on board most recently during our well-subscribed QIP. I take this opportunity to express my heartfelt thanks to our esteemed board for their steadfast support and guidance all along. And for leading the Board as Chairman for the past 2 years, it is a great acquisition that I extend my thanks to Mr. [indiscernible]. Looking ahead, I offer my sincere congratulations to Mr. Hota the father of NPCI for taking on the role of the Chairman of the Board. I also thank my colleague [indiscernible] whose term ended as Executive Director, but has agreed to stay on for a year or more to help mentor many of our colleagues. Thank you, [indiscernible] I also extend my warmest greetings and congratulations to Harsh Dugar for his well-deserved elevation to the position of the Executive Director on the Board. Now let me delve into the core purpose of our gathering today to present our bank's aspirations and to retrospectively examine the lessons garnered from the previous year. Our sites are set on working our way to be amongst the top 5 private sector banks in the country in terms of scale, size and of course, to be the most admired bank. This, we will ensure by fortifying our core tapping into the mega trends and thoughtfully investing in adjacencies. All this while we keep our eyes sharply pinned on delivering quality across the board. FY '23, as we all know, was characterized by fragile economies actions geopolitical conditions nonlinear growth patterns and incomprehensible index movements. Amidst these challenges, the resilience of the Indian economy shown brightest. While the world grappled with uncertainties India remains steadfast as an economic stronghold. The resilience reflects our nation's adeptness in navigating complexities and advancing with unwavering determination. As noted in our annual report, I firmly believe that new India is emerging in this dynamic world. As evidenced by the stability of our financial sector, backed by the foresight of our regulators and aided by the remarkable resilience exhibited by our fellow countrymen. It is often quoted in the world of banking, numbers are our best friends. I'm sure you all have had a chance and noticed in our annual report, the numbers arise increasingly well for us this past year. Despite the highly competitive environment in the banking industry, that led to war for customer deposits, we grew our deposits by 17% year-on-year. We also delivered an impressive 20% year-on-year increase in credit. Clearly evidencing all round market share gains. As a result, we achieved significant milestones with our annual profit surpassing INR 3,000 crores for the first time, and our total business volume is crossing the INR 3.8 lakh crore mark. I'm sure all of you have already acquainted yourself with the details of our annual report, which is now conveniently accessible on our website in an engaging and interactive format. I will avoid reiterating the subjects comprehensively covered within it. Instead, I would like to take this opportunity to share a theme that is central for our future plans. Our focus on focus. Let me explain what I mean by FOCUS and what it stands for as what it means for us. Fortification of our core, with a steady growth in business and the attendant complications that go with growth, fortifying our core is imperative. This notion of fortification is akin to strengthening the very essence of our identity. Just as a tree strength and longevity stems from its routes, we are committed to fortifying the core elements that define us. This commitment to discipline will be the cornerstone of achieving the targeted outcomes and enhancing tangible value. The well-received Rishta campaign launched earlier this year reinforced our identity and Federal Bank's commitment in nurturing relationships, a reputation, which has now become legendary. Our relentless commitment to creating an excellent workplace has been recognized by the great place to work institute. We were the only bank, only bank, I repeat, the only bank from India to feature in Asia's top 100. Furthermore, we proudly boast of a diverse workforce with 41% of our employees being women and 24%, that's almost 1/4 of our branch network headed by women. And this number 10 years back, was 27% of workforce as women and the number of branches headed by women was less than 110. Our HR practices are evident in our industry-defined low attrition rate of 3.75%, which fares very well in an industry where attrition rates are soaring. On the digital front, we continue to be an innovation leader. This year's achievements include being the first bank to list our payment gateway on the new tax platform, launching 2 bus as a platform branches and introducing cross-border BBPS services. We also successfully piloted India's first instant Kisan credit card in partnership with RBI's Innovation Hub, showcasing our embrace of cutting-edge technology. Digital transactions constituted 90% of our total transactions. To further enhance customer experience, our AI-powered customer support assisted Freddie handles 69% of are customer queries. Our latest data suggests it's nearly 75% now, allowing us -- this allowing us to reallocate resources more effectively for core business activities. Our online self-service portal Freddie point, adeptly processed 23 lakh customer requests resolving issues seamlessly through technology-aided processes. Collaborative growth has been the cornerstone of our strategy. We've cultivated partnerships within the [indiscernible] fintech systems, fintech ecosystem in the country, enabling us to offer cutting-edge solutions. Our collaborations with over 75 Fintech companies has positioned us as the preferred partner living up to our brand name in this country. This first helps fostering innovative solutions in areas like credit cards, personal loans and investments. Through a network of branches, relationship managers, direct selling associates and business correspondents we've seamlessly integrated digital and fintech systems effectively expanding our business each to almost 18,000 of the 19,000 odd pin codes in the country. I repeat, we now reach out to almost 18,000 to 19,000 pin codes in India today. Lastly, as a direct measure of the fortification is reflected in our NPA figures. Despite meaningful credit growth, we take pride in maintaining robust credit quality across segments. Maintaining a healthy credit quality remains a top priority, ensuring Federal Bank's sustainable growth. There are opportunities all around that opportunity. I always believe that India when plotted on an X-Y axis with 4 quadrants representing different population orientation holds ample potential for multiple banks to tap into for long many years to come. Opportunities are limitless in our country, however, identifying the quadrant with the highest growth potential is key. Business opportunities are the currency of growth. Our commitment to recognizing and capitalizing on emerging prospects ensures continuous expansion -- continuous expansion, embracing a mindset to pursue opportunities wisely positions us as agile navigators of the evolving market landscape. Businesses like MFI, gold, SME, unsecured lending are crucibles of growth. Our agility in recognizing and harnessing these prospects propels our expansion. We don't merely seize opportunities to share them into shareholder value. In the last year's AGM, I spoke about exploring new business opportunities and our ventures into credit cards, personal loans, commercial vehicles, construction equipment financing and of course, micro finance. Our MFI business, you may have noticed witnessed impressive growth of over 200% last year. Facilitated by our [indiscernible] technology solution called Fredme. Similarly, the commercial [indiscernible] commercial equipment business registered 71% growth and ensured that we crossed the INR 2,000 crores lending figure in commercial rise. Let me turn to customer centricity. The third in the focus team, customer centricity, customer centricity [Foreign Language]. When it comes to our customers, they are more than just account holders. They are the north star guiding our path. The experiences needs ambitions steer our direction. We've invested in the state of integrated CRM solution, that helps deliver smart customer experiences seemlessly touch points. Our dedication to customer centricity signed through exceptional service and tailored solutions. Our journey success is closely owned with the trust and satisfaction of our valued customers. Customer centricity isn't a mere strategy. It's in great in how we operate. It will get once famously said, your most unhappy customers are your greatest source of learning. This isn't just a quote. It's a philosophy we are trying to live by. In this era of digital dominance we've taken, you may have noticed the theme of our annual report is about humanizing banking. We remain committed to being digital at the fore human at the core and to pursue NPS levels that make us future-proof. Let me turn to unsubscribing from dated mindsets. In a world where everyone has asked to like, subscribe and follow we are choosing to unsubscribe to boldly go where no man has gone before is a famous cash base of the 90s. We are firm believers to be a cut about the rest we must unsubscribe from the ordinary and take roads that are less traveled by. We believe in shedding dated mindsets, reaching untapped segments and segments and markets. Some setting obsolete paradigms is crucial in a rapidly changing landscape. We empower our dynamic workforce to break free from traditional thinking and fostering innovation and forward thinking. The average age of Federal Bank employee is now around 36 years, which speaks for the fact that the thinking process of the bank is new age. This approach of infusing younger employees into the workforce is in line with the plan to make Federal Bank a hub of creative concepts. Our preparedness for new challenges underscores our commitment to fostering a culture of growth and inclusivity. Sustainability isn't just buzzword. We believe sustainability isn't a buzzword, it's a cherished responsibility. By embedding sustainability into our practices, we ensure our institutions longevity and the well-being of the communities we serve. Our Rishta extends not only to customers and shareholders, but also to the environment, society, employees and of course, technology. The recent Refinitiv ESG score reaffirms our strong ties to the environment and society, positioning Federal Bank as the fourth amongst 62 banking service providers in India, 25th amongst 723 Indian companies and 74th across 934 banks globally. Our CSR initiatives such as speak for India, august memory scholarships, seed, swaim shakti, dream have all positively impacted over 3 million people across the country. Federal Skill Academy another of our CSR initiative remains steadfast in its mission to equip the youth and women with the knowledge and expertise needed to thrive in a competitive world. Through such initiatives, the Academy aims to promote inclusivity, skill enhancement and women empowerment in the community. Additionally, we have disbursed over INR 3,000 crores of green loans conserve 84,000 liters of rainwater saved 108 lakh sheets of paper preserve 1,074 megawatt hours of energy and prevented 1.8 million tonnes of emissions, significantly contributing to the planets well being. Sustainability isn't just an investment in the present. It's a legacy for future generations. This commitment is deeply ingrained in our values, ensuring a lasting impact on both our institution and the world. In a world, that's constantly changing, we are, as you would have noticed, focusing on focus, a fitting compass for our journey ahead. So let me assure you that each one of you that focus on FOCUS is not just a concept. It's the heartbeat of our strategy and the wind we need our wings. Fortifying, taking the opportunities, customer focus, un-subscribing from the ordinary and sustainability. These drives and this will remain our focus. In conclusion, I want to express my heartfelt gratitude every member of the Federal family for the dedication and tireless efforts that have contributed to the bank's significant achievements in the last fiscal year. Their commitment to excellence and customer-centric approach has been instrumental in driving the bank's growth and success. In closing, I remain proud to be a Federal. Thank you very much.

Thank you, Mr. Srinivasan for having addressed the shareholders and also elaborating at great length, the achievements for the fiscal year and also describing the focus compass for the future. Now it is time for the speaker shareholders who are already registered to express their opinions and to seek clarifications on matters related to [indiscernible]. Speaker shareholders are requested to cooperate while expressing their views, so as to give sufficient time to all the shareholders who have to speak today. And now I request the -- our partner for [indiscernible] organizing to [indiscernible]

Going ahead with a very first person on the list of speaker shareholders. We have with us Ananda Kumar De -- so you have been unmuted. [Operator Instructions] Can we have your question with the video turned on if possible?

How do we turn on the video?

So there would be the video option available on the bottom of the screen.

Okay. Okay. Okay. I'll go ahead. If you can hear me, I think that. Respected [indiscernible] Chairman of Federal Bank, respected Shyam Srinivasan, MD and CEO, members of the Board of Directors, officers of Federal Bank, my dear fellow shareholders. Good morning to all of you. And let me express my gratitude for making me the first speaker shareholder in this esteemed meeting. The performance of the bank in the financial year 2023 and in the first quarter of 2024 has been exemplary. I take this opportunity to congratulate teams [indiscernible] , the Board and team Federal for this commendable achievement. We, the shareholders of the bank whole heartedly support you. I'm glad to state here that I have already voted in favor of all the resolutions proposed and recommended by the Board of Directors. The significant achievement in FY '23 is that for the first time in the history of Federal Bank, the book value per share of the bank surpassed INR 100. With an EPS of close to INR 50 and a conservative dividend policy are plowing back almost INR 14 to the capital of the bank. Please allow me note the management of the conservative dividend policy as the importance of adequate capital cannot be overemphasized at this phase of accelerated growth for the bank. With an ROE of 15% no capital infusion is needed from outside for a credit growth at [indiscernible] . Now with INR 3,000 crores already raised through QIP and another INR 1,000 crores being raised by placement to IFC back up the envelope calculation reveals that the bank can afford to have a credit growth of 31.5% in FY '24 without diluting our CRAR. Of course, the bank has indicated that this capital is meant to take care of the growth in this age for the next 3 to 4 years. The current scenario of [indiscernible] a lot of responsibility on the bank. It may be recalled that the recent infusion of capital was at less than 9x of the EPS. It has to be ensured that this infusion does not lead to an EPS dilution. This is a real challenge considering the contraction in NIM experienced during Q4 FY '23 and Q1 FY '24. Sir, please recall that in AGM's of 2022 I had mentioned that meeting the targets set for FY '23 was not difficult, but achieving the guidance of 15% ROE and 1.3% ROA is set for FY '24 could be a Herculean [indiscernible] , if not something impossible. The major challenge is to manage the various trade-offs, growth versus asset quality, increased deposits versus lower cost on funds, wholesale versus retail, secured versus unsecured, et cetera. Media reports and the various interviews by Shyam Srinivasan and other senior executives of the Bank gives me confidence that they are aware of the challenges ahead. In a recent brilliant interview, the MD and CEO talked with commentable priority that unsecureds are not as an unsecured as they used to be. As borrowers in the digital era is digital footprints [indiscernible] . Also, it is expected that fintech partnerships in the past 3 or 4 years will gain traction in FY '24 and attain critical in mass. This, combined with the new strategy of branch extensions are going to yield the growth Federal Bank aims in the near future. We have tremendous faith in the new and team Federal sir. The clarity of thought capabilities of the officers and their willingness to work hard will give us confidence that the best is yet to come. Wish you good luck in raising the INR 8,000 crore Tier 2 bonds at an attractive coupon rate in the immediate future. Wish you good luck in making a successful IPO of Fedfina in FY '24. Wish you good luck in uploading the shares of Yes bank, we hold at a great price in the current financial year. Wish you good luck in getting a sizable portion of the remittances from abroad converted into deposits of the bank. Wish you good luck with the portfolios like gold and credit cards in the coming months and years. Main branches being opened breakeven from their inception onwards. Let me conclude by reminding you of something I have been seeking in the last couple of AGMs. Please go for a stock predictive face value rupee 1 at the earliest. This will be a great consolidation for those among us who feel that the dividend payout is less this year. I can assure you that with the initiatives I described above the bank's initiative for scaling up the businesses Federal Bank will not become a penny stock after such a stock split. Congratulations once again to the very good job done distributions for an even great job getting done in 2024 and thank you once again, [indiscernible] Hota, Shyam Srinivasan, the Board of Directors, Team Federal, consisting of senior officers and employees of the plant for burning midnight oil and trending that extra mile to maximize the wealth of we, the shareholders and make ours the most admired bank in the country, Jai hind. Thank you.

Proceeding with the next person on the list, we have with us Mr. Umesh Kantilal. Mr. Umesh, you have been unmuted.

Respected Chairman, managing Director, distinguish Board of Directors. Distinguish Board of Directors and also fellow shareholders. Thank you very much for giving me an opportunity to participate on this platform to have my views on to the -- I mean this platform. Sir, let me tell you, I take a congratulation first of all for the results for the yearly end quarter results are showing that back performance is going ahead, and we are on the right track. I have also voted all resolution in favor. But one thing I'm totally disappointed is that dividend field. I think it should be noted with a proper objective by saying that share price has gone up and the dividend is in the entrain the balancing with the share price and this thing is not the correct portfolio way to measure and lowers morally followed, share price may go up or down. We are not going to set the share. It is just a it's just like asking my family wealth or your capital to sell it off. Sir, let me hear let me point it out here, especially to Mr. Shyam, there is a definite low advisory from depo department of investment and public asset management and Indra has followed that model, they go 30% of the net profit of 5% of the net worth, whichever is higher. That is listing of the department of investment and public asset management is the advice that in fact, they are saying that if the profits are there. On network, they are asked to pay interim dividend at the end of every quarter in term of munching them at for the year-end. There is also a missing spirit. The market regulator stay from 2016 has mandated all the 500 to 1,000 companies who declared or disclose their dividend distribution policy not only in the annual report, but also -- what that means not on that later, but also with the spirit, DDP dividend distribution policies should include the circumstances under which the shareholders of the listed entities may or may not expect that dividend. The financial parameter that should be considered while declaring the dividend, internal and external factors that should be considered for the deterioration of dividend and so and so forth. I can provide you this sites report. So if you can send someone from the bank in Mumbai, I can provide you to provide you some sir, of the Managing Director, this particular report. And this will be followed by the later and spirit both its just a letter but the spirit. The profits have gone up from INR 2,200 crores to INR 2,000 crores. And dividend provided less of 1.8% to 1%. It's a big hit to the shareholder view depending on the dividend. It is like there are some dozens of companies create which is already following. They have talked that or to INR 10,000 crores, but the dividend increased to 1.7% or 1.4% in last 5 years. [indiscernible] It then or we have to compete with the both governance company. Sir, please look into it. That is what my humble request. My second point I have been all set this is a problem in terms of bank I have given today I got [indiscernible] Annual meeting. I sended email to send me an annual report for the [indiscernible] a lot with moving -- no for them loss the are sending they will since use of sending an annual report after the [indiscernible] Of getting annual decount after it is like asking the to come for a mere after receptor. [indiscernible] Annual report to be able to get time our right [indiscernible] The annual report of the it once we request you and hard copy should be provided. I last year to Sameer and Sandeep this time was not received also. And last one more thing, last time also special both to Mr. Sameer and Mr. Sam that we decovery frequently in Mumbai. In mumbai and so many years to give me a personal audience, let us meet once in a while, some take out the time, but we don't have time for shareholders. So my request is now you take out the time. I am in Mumbai you are in Mumbai, I could see Sameer also. I could see Sam also. So please give me some time audience interarticular meeting, the AGM so that we can have 1 to 1 meeting we can more we are the last group, which shareholders of your bank. Thank you, and Jay Hind. Thank you very much.

Going ahead with list of registered speaker shareholders, we were supposed to have Mr. Bill Nawaz, Sam [indiscernible] , but unfortunately, he couldn't join us today. So going ahead with the next on the list, we have Japan Lal Bardia joined as JL Bardia. Can we have your turn on to the question please?

Can you hear us? Mr. Jatin Am I audible? Yes, I can hear Good morning chairman, board of director and the shareholders to them in the meeting. I am [indiscernible] express by my earlier on shareholders.

Sir, Mr. Marda, we can't hear you very well. Maybe you can switch off the video and or remove the earbud.

Yes. I do [indiscernible] by my shareholders about being dividend process and more of dividend [indiscernible] to shareholders to justify their investment. And I would [indiscernible] in the year 1974 when the CR revenue transfers opened, and I have been telling my house with you since then and that time, the sales were given in a small point, it is about INR 50,000, INR 20,000 to the good customers of the Bank. But now this wonderful and those INR 15,000 crores to several lakhs without the Federal Bank has given [indiscernible] to its investors. It's a very good bank and been working and growing as a [indiscernible] bank has been doing -- it used to be our [indiscernible] by us [indiscernible] than we used to advertise our product. That was the time when the proposal about 5 lakh used to be passed by them the Chairman, [indiscernible] and [indiscernible] Materion and Anthony plus the key officer to deal with. Time which is started as an agricultural bank to have most of the directors as agriculturist. The service of the bank is very good, I how I came to the Federal Bank I just tell you in the 1974 the local kalkutta, banks used to meet the demand drop after 4 PM we deposited some amount in the Federal Bank and we went to the manager, the manager of our [indiscernible] we requested that we have deposited this amout and we need the demand draft. He was very kind [indiscernible] be booked before the book of the bankrupt and this will be taking would be any differently expect such servicing we provided in [indiscernible]. We are potentially dealing with the CR revenue branch. The manager -- chief manager and [indiscernible] are very corporate. They are very serviceman and they are visiting for all products business to all the shareholders. Thank you very much.

So this was Mr. Jatin. Going ahead with the next registered speaker shareholder, we have with us Mr. Manohar Lal Singhania Sir, you have been unmuted. We are ready for your questions.

Good afternoon, everyone. I think it is a Good Noon or Good Morning to Chairman, [meeting] director and all the directors and the shareholders. Of course, I'm a technical person, I'll not be able to do the detail as a [indiscernible] under balance sheet of [indiscernible]. But one thing for the sure, I can say, that Federal Bank right from I am a customer on the Federal Bank and I'm operating my account for the last 23 years. I have grown along with the Federal Bank for last -- in these years. Only thing I found that Federal Bank is very conservative, while we have another company also where [indiscernible] around INR 900 crores. But this company where I'm operating at your Borivali branch. That is doing only my [indiscernible] around INR 28 crores, INR 30 crores or something like that. Sometimes the retailers, sometimes they wanted our business. But I think that with HDFC and others, they are not able to complete or whatever the services HDFC they were giving. They are not able to be meet but at the same time I -- in general, I find that the banking in [process]. Bank all the manager who so enever has come. I don't want to name one, but yes, I'm operating at Boriwali best branch. And I found everyone very considerate, the staff is very considerate. And not only that, they value customer. But as I say, being very conservative, how you will expand if you cannot pay the big business, like I said that another company running INR 900 crores business over here. And my another counterpart, I think somebody can know also Mr. Karnes, Okay, my another company that is there in Indore, they may be known [indiscernible] , okay? They are hitting the business of INR 3,600 crores this year. So what I mean to say is that we cannot take the bigger accounts and view the same kind of subsidies as it is being given by the leading banks like HDFC or others, they need to definitely spoke for the expansion for the bank is limited. I cannot comment on the financials. Of course, I'm holding a good amount of the share, okay, for a long time. But I cannot -- on the company financial and other things because I'm not -- to be very frank I did not studied those all the things. But being the customer, I can very well say that we have definitely increase to look into this aspect. Otherwise, in this era where you say the [indiscernible] loan, whatever it is there, it is not a problem. But at the same time, the security is there, where everything is there. Companies, the book value is better, company is doing much better. If you are interested to take those kinds of accounts, then you are working in a very limited area. That's what my opinion is I think Director should look to this, Chairman start looking in to this and a new managing director is there, okay, they will look into this. And I'm very happy with the bank. Of course, I say that this bank is the lucky charm for me because I as an entrepreneurs started with this bank, okay? And right from that time, we have grown to this level. Thank you very much.

Going ahead with the next register speaker shareholder, we have with us. [indiscernible]. I believe you have been unmuted. We can proceed with the question.

Respected Chairman, Board of Directors, [indiscernible], Shalini madam, my fellow shareholders, my dear friends. We are eagerly waiting to meet our time -- I am sorry, for this year. Unfortunately, this year also, it is online. I would like to congratulate board for the excellent results they have presented before us. Almost all figures are at the record position and better than the industry average. Let me discuss some selected figures. CSR allocation for the year was INR 43.88 crores. Of this INR 2 crores for clean internal projects, our founders will lead. On the expenditure side, proportion have come down considerably. How it is possible? It is surprising to see employee costs coming down this year, and the number of employees going up. Operating -- going up our operating expenditure and rent shows big increase. Noninterest income as a percentage of working funds have come down. Percentage of NPA from overseas business, I mean this city is on higher side, a number of floors reporter have adjourned 1298 noncredit-related floors, INR 23.16 crores income from investments in consolidated is lower than stand-alone. Insurance, remain contributor of fee income brings only INR 130 crores. We may evaluate this figure, as this business involves a great effort. Speaking about the offline is [indiscernible] serious concern to make a rise before the board -- as the shareholders from the founded place who are not terrible to.

[indiscernible] I think you would switch off your video . I think you can switch off the video Pols. Then it will be clearer.

Is it clear?

We can hear you. Please go ahead. Okay.

Why the shareholders from founder's village were not able to attend the commemorative lecture like conductor at Grand Hayatt on March 17. I came to know the lecture being conducted only when someone forwarded the recorded video. Till this year, I have attended every lecture going through the video, it's appeared to be a typical investors meet with the main attendance of business course. Remember, our founders family do not retain any size of our holding in our bank. I think it was not at all fair to leave us from the list of participants. As [Shyam sahab] said, we successfully completed our INR 4,000 crore capital issue recently. Of this INR 958 crores was preferential allotment. And with this IFC become the largest shareholder with more than 7% holding. We all know our QAP was subsidized 7x. Then why we say IFC1 known to make more investments and we allow preferential allotment. It is quite natural for me to watch the big brother has stealed influence or major future decisions. Even after the 2 years of IFC becoming part of us and the preferential allotment. Now our share move in the 121 [indiscernible] even in favorable market. We are to disinvest our subsidiary in a [indiscernible] earlier we merged [indiscernible] placements up to 27% on small premium. Will someone explain what were the compelling reasons for raising some share premium. When the parent company is received enough reserves. Recently, we do our advertising campaigns in Hindi and translate it into regional languages despite the fact that our main customer base is [indiscernible]. Regret to say that these cancellation versions do not convey or communicate at all. We are at the third place in terms of per employee business. We are honored with awards for good employee relations like most preferred workplace. At the same time, it is interesting to see the core appoint and intermediary to settle issues of the employees in the bank. I think it is for the past time in the history of the bank but the management and the employees are [indiscernible] always on good talking terms. As per the report, salaries and wages of employees and offices up to scale 3 is as per provision. So 11th by parts segment. I hope in the future reports, we will raid it as all by partners settlement. ESOS was implemented in the bank with the aim of creating a sense of ownership and belongs among employees. Nowadays, ESOS have mostly become very much a part of the welcome package of C2C recruits. These two new ESOS 2023 and [ECS] 2023, bringing 64%, top level [over] 92%. We can see the sense of belongingness ESOS creates in these [people]. Actually, it may be counterproductive as the existing employees may feel to be left side. This year, bank has come out with a program to honour pensioners and family pensioners such nearby branches. Banks subsidies a substantial part of medical insurance premium for us retired federals. We express our gratitude for everything done for us seniors as stated in the report, let us strive hard to address pressing issues such as environmental sustainability and economic inequality. Proud to be a Federal. Sorry for the disturbance in network, I have low network here in at my home. Thank you.

Going ahead with our next registered speaker shareholder, we have with us Mr. Babu George. Sir, you have been unmuted, and we are ready for your questions.

A very good morning to everybody. My congratulations to the new Chairman who is old Director as well as our Managing Director and other several -- other directors for the splended performance. In this connection, I raise to request your attention about the dividend declaration. Last year, 1.87% was declared whereas this year, it has come down to INR 1 rupee per share. I request the Director Board to consider the percentage scenario in our country and increase the dividend rates. If it is not possible at percent, raise to declare an interim dividend at the time of the deepawali. Because most of directors and our customers are from North India and Bombay. This will be an added advantage to the bank and also consider issuing bonus sales in the near future. Regarding the NPA figures are also not good. Last year, it was INR 655.28, this year, it is in INR 661.55. There is also an increase and order taxation INR 600.88 and there are a lot of finance [demotion] by some Bank of India amounting to INR 630.65 and number of instances of deficiency in not adhering to the same bank instructions is also only increase. Because our staff and officers and management team are very excellent, very good people, but what happens. Please, explain. Moreover, in the matter of CSR funds, there is a figure shown, CSR funds unspent INR 3.29 and Hormis Memorial fund INR 39.26 and please clarify, Total NPA comes to INR 41,837, probation INR 691.80. And also I'm very much worried about the frauds -- number of frauds are increased. It is also where we gratified. And I am attending the 50th Annual General Meeting of I am becoming a shareholder. I am a senior citizen of 72 years. Perhaps I may be the second Malayali to spoken in this meeting. I remember late honorable Mr. [indiscernible] former [indiscernible] then general manager came to my house when I was in and meet my father and ask them to invest in Federal Bank and we are all investors and we are [indiscernible]. Mr. Chairman's, legacy, Mister later honorable [indiscernible] legacy is already done a lot of things for this [indiscernible] bank. Now it's spread all over India. And please consider all the shareholders and when you say some other bank, belongs to North Paravur [indiscernible], the [indiscernible], [indiscernible] and other places. They are still holding the shares. Their attachment to the bank is very high esteem. I again congratulate our MD, who already completed tens years as MD of Federal Bank. I hope in the future, you can go very good research and consider my request for giving home benefits to shareholders as well as the staff, your decision to grant tax insurance benefit to Federal employees and offices is very commendable and appreciated. Remembering old staff is very important. The [indiscernible] set is the foundation of this great bank. In this connection, I have another question, our North Paravur branch manager, one lady manager [Ranjhini] who -- her services are exemplary and commendable. She is a very good asset for the bank. I wish her all success in our career and the main [indiscernible] [Foreign Language], I wish everybody from North India as well as from South India, a very good order [Foreign Language].

Going ahead with the next speaker shareholder, we have with us Mr. Saket kapoor. You have been unmuted. We are ready for your questions.

Thank you, sir, Especially for this opportunity and technology has enabled investors to join from the new came corner of the country also and also preferrably any part of the world, if it's feasible. So I applaud the MCA for continuing with this facility, and this is probably my fourth AGM that I would have attended or maybe the first or second, I don't remember, but it's indeed a good opportunity, a good platform. So I would request to your understanding that this facility should be continued as, not only for the COVID as a reason, but also for broader participation. So we hope that a proper delegation would be laid from the -- not only from our bank, but from other listed companies also in favor of how the investors participation can increase with minimum cost. Coming to the banks for tutor I remember last time in the AGM, Mr. Srinivasan. Sir, very category mentioned that this would be a year variance will be rising from the lower profit to the higher profit regime, and he promised that the [Foreign Language] in terms of the numbers. And I applaud the team for guiding correctly to your investors and delivering very good set of numbers. But now at these high interest regime, Mr. Srinivasan and how confident are you that we would be able to maintain our NIMs going ahead since the liability franchise also will get reprice and has also been repriced. And now with Fred speaking for this higher interest rate regime to continue longer, I think so it may point to better prospects for the banking industry. as the higher interest rate and their transition would definitely cement your position on better NIMs. So if you could give some -- although you are speaking to us on a quarterly basis, guiding us, the entire team is there. So not only you set the entire team is to be thanked for that. But any other thoughts you would like to share, especially on the NIMs part, the ROA front, the NPA how are you seeing this personal loan becoming a cause of concern for the bank. So I won't be taking much of the time since we get adequate opportunity to speak to you, but give me one more understanding, sir. This question is directed to Srinivasan, sir, and also I would request the Board's attention also here. Mr. Srinivasan, in the last con call, you did point out -- the earlier speaker also spoke on lowering of the dividend this year. Sir, I point out, I marked this point, lowering of dividends, we would be sidelined as the only bank, only bank in the listed space, which have lower rate, lower the dividend payout to its investors. And the analogy provided by you, Mr. Srinivasan and particularly to me, it did not went down well. Sir, you mentioned that the stock price has improved. So we can reduce the dividend. In my wisdom, sir, maybe he said, I'm a very small minority shareholder but in my wisdom, I cannot understand how did you correlate it to the point that dividends payout and stock prices are correlated, sir. So I did ask you there also, but it will be the [indiscernible] of time and not the right platform, but here, sir, our interests are hampered. And how can you justify this point, sir, firstly, that on better profitability, you went for capital raising, you have adequate CRAR ratio. You have the best balance sheet and at the time of declaring dividend you lowered it, Sir. And also the wisdom of the Board to please answer this back for us, this is a listed bank, and we minority shareholders' rights should be protected. So make us understand this fact of lowering of dividends, especially in a year, in a particular year where the banks have posted good profit and the Board and the banking system guiding towards better numbers had we been in a year where the next year would have been tough for us. We would have understand that reserving cash would have been a good -- would have made good sense. But Mr. Srinivasan, you are guiding us for better exit at NIMs at 3.2% or 3.25% ROI above 1.2%, and then giving us a guidance for FY '26 also on a higher base and then lowering the dividend and then giving us the understanding that stock price [Foreign Language]. So very, very strange answers, very sorry to use hard words, but it is my interest and minority shareholders, which got hampered because of the lowering of dividend by -- and this is not a single man decision, it is the reason of the Board. So I would request the Board members will jump to come in to put into thought of why considering lower dividend. Although it is a tax incidence proposition. Many of the investors are happy that if you pay in lower, we will be paying lower tax. But lowering it from previous year did not get went on good, sir. And I don't know, sir, whether other investors, you are attending so many investor conferences, you went for successful QIP issue didn't even bothered to mention. But we mentioned you earlier speaker also mentioned. I hope there should be some rationale behind it, and would love to hear from you. but I thank, firstly, the transformation there under you, that cannot be negative with this with my thoughts. Over a period of time, you have built an institution that will test the time going ahead. And now coming to the shareholder value creation idea, sir. How do we shareholders get now convinced that when our dividends are not at your mercy to be reduced at any moment on an ad hock basis, why should investors remain committed? If even dividend cannot be protected. So what's the message, sir, for us, sir? That is my point is. We know the banking sector is going through a good fit. But our bank will not get the real value. if these are our policies going. This is my personal view, and I'm a minority shareholder, and I reserve my right to be wrong. So I seek your understanding on how will you create value for us. If these are the steps the board has taken to lower our value in terms of dividend payout. Please do consider and make us understand because bill-to-book, I think we are tailing at 1x or closer to 1x. Our ambition may be closer to 2x going ahead. But on your path to reaching 2x what steps are you taking with where our stock is also get revalued, sir. We investors have invested our money for two capital appreciation and dividend payout. So when are we going to be adequately rewarded. These are my points. And I think the secretary department. I thank the people who are running the show for conducting the AGM, very diligent person they, sir. And they keep on communicating to her Mr. Jacob and then Madam also called me up to keep track of things. This is very good. This is extremely good for investing community that you have a good team. But again, sir, please do answer to my point and hope to join you again in the next con call, sir. Which i'll be waiting to hear from you. Thank you, Mr. Srinivasan. Thank you to the Board. Thank you to every people. They are providing me an opportunity to speak here. And all the best to you, sir. [Foreign Language] thank you.

Going ahead with our previously called in a speaker shareholder, he couldn't join us before. In behalf [indiscernible].

Good afternoon, and greetings to the Chairman, Managing Director, Director and fellow shareholders. So I am a shareholder of the Federal Bank, it is only a small part of my holdings. And I am, therefore, not speaking as a shareholder but actually as a customer of the Federal Bank because as far as my banking transactions are concerned, the Federal Bank is my preferred banker, even though my office is located on a road, where all the head offices and main Mumbai offices of all the major banks are located. Mumbai Samachar Marg, next to the stock exchange. I would like to tell you very briefly why Federal Bank is a preferred banker for us. My company, the Bharat Flooring tile company pioneer the cement tile company business in India as part of the Swadeshi movement, 100 years ago and with a high commitment to quality, integrity, service and innovation. But about 50 years ago in the 1970s, the whole profile of Mumbai changed from people who are building their own homes and wanted quality and integrity and service and innovation to builders and developers who are looking for low-cost items of floor quality. And therefore, the company went into major losses in the 1970s and that is when we first met the Federal Bank. We had to retrench staff, and we gave half our office to the Federal Bank against the loan and adjusted against rent. And we continue to be our tenants until 2016, but they continue to be our bankers even now. Not only from the company point of view, but personally, for myself and also for the various trusts that I handle. And the reason for this is that although, the managers have changed many different managers have come over the years. I think that the kind of culture or quality in service has remained very high. And interestingly, my mother was customer #1 of the Federal Bank, Mumbai branch for Indore port. It was at that time the head office in Mumbai. And we -- I continue for 50 years to be also a customer of the Federal Bank. So I would like to just on this occasion of the Annual General Meeting since I've been given an opportunity to speak to express my appreciation for all those who have provided their services to our company, to our family and to our trust solving problems when they arose, extending help when it was needed. And the association continues. I have only one suggestion, and I think this is true for all banks and mutual funds and so on. There is the back office, who we can never see and one has to deal through the branch staff and that being located so far away in Kerala. The kind of delays that sometimes occur are a bit of a problem. So I'm sure with technology, those gaps in time can be there easily pushed and they will be. And the best part is that the local branch management is always most helpful in trying to facilitate work. So we are 100 years old. Our association with Federal Bank is 50 years old. And I wish you all the very best for your next 50 years also. Thank you, everyone.

So this brings us to the end of all the questions from all the registered speaker shareholders. And we would like to go where to Chairman and the Board members to answer the same. Thank you so much.

Thank you very much. Thank you, speakers, shareholders, for your valuable comments, generations, suggestions and questions. Now I request Managing Director and CEO, to kind response.

Thank you, Chairman. Thank you all shareholders. As always, very good to hear from all of you. A very sharp and perceptive insights and we take on board all inputs -- compliments and observations and certainly work on them. I'll broadly summarize, as they were -- you were all very kind in complimenting our performance, which we are very grateful and certainly commit to doing that or even better in the period ahead. You were kind in complimenting our entire staff in different locations. I did, if you noticed in my speech to thank our staff and sort of once again, I echo your inputs and certainly, that is the win beneath our wings. And we'll certainly invest in making sure that experience, which is the philosophy of the bank of digital and the human at the core sort of deeply ingrained in what we do. And you may notice, in fact, I think Madam Dilnaz beautifully said, what we're trying to do is [Foreign Language]. So we are looking at the human element very intensely in the newly digital world. So thank you on account of that. In terms of observations, which many of you did, I have tried to classify them into three principal areas. I'll try and address them. The first was around you heard even amongst the eight shareholders, some argued that the dividend should be lower. Some of you argued meant that the dividend should be higher. And the bank has a very clearly laid out dividend payout policy, which we adhere to. I did hear Mr. Saket mentioned very emphatically about dividend payout. And sir, we've kept very consistent with our dividend payout policy. The observation you made that we were the lowest is probably wrongly advised. There are only three banks that have paid more. Many others have paid less. But that's never the competition. The issue is in a year where we are raising capital we have some -- we have to be thoughtful about how much of incremental payout we do and then how much of dividend capital we raise. So the Board after a deep consideration and deliberation came out and ensured that we are not stopping our dividend payout, but we have to be thoughtful about how much dividend we pay out at a time when we're going out and raising capital. But rest assured, our dividend payout is consistent. We have a track record of having paid dividends across all years, except one year during COVID when the regulator advised banks not to pay. We are very focused and consistent about our principles of how we pay our dividend and rest assured that in the periods ahead, you will be richly rewarded through our performance and both appreciation on the stock, which is what we can perform is get the net worth up, which is what we will focus, multiplier will follow by the fact that we're performing consistently. And the dividend payout is a very established policy, which we will adhere to but the only data point I wanted to share, there were banks that paid way lower, while it's never a competition. Our aspiration is to make sure that our shareholders are richly rewarded. That's about dividend. I heard shareholders Babu talk about NPS. Maybe, sir, you were looking at the absolute numbers. As a percentage, everything has improved, improved materially. And you heard in my speech as also in the Chairman's speech as also in our quarterly results. We give attention to our NPA improvement, and I'm happy to suggest at this point in time, the balance in the business mix that we follow is guaranteeing that the credit quality of Federal Bank will be absolutely top quartile. We are -- I think one of the gentlemen pointed out we are conservative at some point in time. And I'm happy to be conservative because in a banking system, it is good to be conservative and play the long run than to be sort of yo-yo in the near term and then face a problem much later. So I'm answering two questions. One is our conservativeness is appropriate for the occasion and the environment we are operating in. And certainly, our priority is to ensure that the credit quality of the bank is consistent. Here, I may want to point out over the last 13 years or 15 years, Federal Bank is one of the few banks that have never crossed gross NPA of 3%, 3.5%, where even the best banks in the country had 10%, 12%, 13%. At the industry level, credit quality, we will rank in the top quartile, and I'm happy and the Board is very adamant that the quality of credit is defined the success of a franchise, and we're happy to do that sir. So you may want to look at that number, not an absolute, but in percentage terms, the denominator is growing materially. The other observations were around the NIM. It has been a year when the funding costs have started going up quite substantially, banks enjoyed a period where the credit repricing happens ahead of the deposit repricing. But that turn -- that has turned since in the last two quarters. You may have noticed. You may have noticed in Q1 results, our fall in NIM, I repeat, our fall in NIM was lower than the fall in NIM of any bank in the country. And that is because of the model we pursue and I have guided in all our investor calls that our NIMs for the financial year '24 will be somewhere in the [ 325 ] or so, which we are reasonably confident we will deliver and you may see the pattern of that, certainly in the first half will be slightly muted in the second half, it will pick up. So our guidance for NIMs, ROA and ROE have been put out at the beginning of the financial year. We believe we will be consistent to those guidelines -- guidance we have put out and all efforts by everybody in the bank without if the environment doesn't turn very adverse, we should be in a position to deliver on those. In fact, in our capital raise road shows, we made the same commitment, which is out there on the website and all our investors who have come in have understood our portfolio, have understood what we are likely to be delivering this financial year, and the team is very remitted on that as the objective to make sure that FY '24 continues to be on the growth trajectory that we have had and deliver on the NIM, ROA and ROE outcomes. Lastly, there was an observation, I think, by one of them on the expenses for employees, just to clarify, expenses for employee did not go down. It is only a timing issue. The previous year, you may recall, in fourth quarter, we upfronted a large part of the pension cost in this year. Therefore, that was not there. But underlying structural cost have been improving, and we'll continue to keep that going. So all in all, thank you very much for all your observations. All of them have been noted. The bank has a very clear cut dividend policy. The performance metrics are measured consistently by the Board. and we are reasonably confident of ensuring all our guidelines are well served. And once again, a big, big, big thank you. And we, through our Investor Relations team, are available for all conversations and happy to address any queries that come up even outside of the AGM. Thank you very much. good wishes.

Thank you. As we come towards the closure of the meeting. The company secretary will tell us the number of shareholders attending this meeting. 168 shareholders are right now the meeting. And we had the privilege of listening to 8 speakers amongst them. And in thanking, I would like to extend my whole hearted thanks to the colleagues on the Board for their sincere cooperation for the smooth conduct of the AGM, I also extend whole hearted thanks to the available customers of the bank, the shareholders and the employees for their support, wishing you all the very best for the bank. I now invite Executive Directors, Shalini Warrier to deliver the quarter. Thanks.

Respected Chairman, Mr. P. Hota, sir, MD and CEO, Mr. Shyam Srinivasan; Honorable directors on the Board, esteemed shareholders, valued members of the Federal Bank family. Ladies and gentlemen, as the 92nd Annual General Meeting of the bank comes to a successful conclusion, it is my honor and privilege to propose this mode of thanks. With the patronage and support of our shareholders, customers and employees, your bank has delivered a great performance in a year that was full of unforeseen challenges and obstacles, particularly for the banking sector. a creditable achievement indeed about which all of us can be proud of. It is mainly the support and patronage of shareholders that gives us the confidence for the future. on behalf of the bank and on my own behalf, I express my sincere thanks to the shareholders for their unstinted support. I also take this opportunity to welcome and thank our new shareholders who have brought with them incredible strength and repute to the bank's balance sheet. Our customers are our strength and our motivation. Many of our shareholders, as you heard today, are also our customers. The existence of the enterprise is because of its customers and for its customers to all our customers spread across the states in India and across the countries globally. I extend my heartfelt thanks for patronizing the bank through the various challenges we have encountered. Now it is my pleasant privilege to thank all those who have been instrumental in making this meeting a success. I especially thank all those who actively participated in the meeting and raised pertinent queries. The meeting is being presided over by our Chairman, Mr. A.P. Hota, a person who has helped to execute a series of reforms in the India Payment Solutions space. His commitment and leadership has been invaluable. on behalf of all shareholders, directors, employees and all those present in the meeting. Thank you, sir, for your sales contribution to the bank. Our MD and CEO, Mr. Shyam Srinivasan, has been leading this organization for 13 years, a period that is symbolized as a yoga in our culture. In Sham yoga, our bank has been run with the mission of his [dealings]. And under his leadership, our bank has stood firm on the pillars of transparency, openness and best practices in everything that we do. He is determined and dedicated to make this bank equally attractive for shareholders, customers, employees, regulators and the society. The excellent results which we all witnessed now is a reflection of his relentless pursuit to take the bank to greater hike. Under his leadership, the bank has expanded from 700-odd branches to nearly 1,388 branches and is counted amongst the top private sector banks in top line growth and profitability, while at the same time, upholding heritage culture and the values laid down by our late founder, Mr. K.P. Hormis. His vision to make our bank as the most admired bank for all stakeholders is a path on which the entire team federal is committed to tread. I thank you, Sham, for your leadership and wish you a long and most successful innings ahead. Directors on our board have rich and varied experience in governance, regulation, banking, accounting, administration, risk management, payment and settlement systems, international banking, MSME, agriculture, legal framework, information technology and many more. And they bring with them to the board the highest level of professionalism. For their guidance and contribution, thank you very much, Madam and sirs. It is our employees at our levels who build the bank through their hard work to all the employees of the bank and particularly to those who have toiled through these difficult times to put in exemplary efforts to ensure the normal running of day-to-day banking operations and servicing of our customers. I say thank you. I also thank all those who have worked hard to ensure that the various requirements prior to when during the conduct of this particular AGM were delivered in a smooth and compliance manner. Thank you. I thank the directors and retired employees who are participating in this digital meeting. The bank has been built on the strong foundation laid by each one of you for which we will remain eternally grateful. On behalf of the shareholders, Board of Directors, management team and all officials and employees of the bank. I express my sincere gratitude to all the auditors for a smooth get highly professional conduct of audits. I take this opportunity to especially thank our central auditors, [indiscernible] Varma and Varma and [lessos] Barka and [indiscernible], who have all throughout maintained a very high level of professionalism and quality in conducting the audits and limited reviews of the quarterly financial statements of the bank. I take this opportunity to welcome our new auditors and look forward to working with them in the coming years. Our bank has been receiving good encouragement from the press and media. And I think thank all members of the press and media who have been covering our bank through the year and particularly thank those of the media who are present here today. I appreciate the good work done by the teams from NSDL and Epitome Corporation Private Limited for making this function successful, and I thank them. Once again, a big thank you to all of you for all that you have done and continue to do for the bank. We remain eternally grateful to you. I also take this opportunity to wish all of you celebrating the festival of Onam, a very happy and prosperous Onam. Jay Hind.

Thank you. Thank you all for attending the meeting, and I hereby declare the presiding closed. Thank you.

Thank you so much, dear members. As instructed by the scrutinizer, we request all the members participating in the AGM to please cast their votes. Please note that the e-voting will be open for the next 30 minutes starting now. Also a 30-minute countdown timer would be displayed. Thank you so much, everybody. Thank you.