The Karnataka Bank Limited (KTKBANK) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to The Karnataka Bank Q2 FY '23 Earnings Conference Call hosted by Karnataka Bank. [Operator Instructions]. Please note that this conference is being recorded. On behalf of Karnataka Bank, today's call is attended by Mr. Mahabaleshwara M. S., Managing Director, Chief Executive Officer; Mr. Balachandra Y. V., Chief Operating Officer; and Mr. Muralidhar Krishna Rao, Chief Financial Officer. I now hand over to Mr. Mahabaleshwara, MD and CEO, to give his opening remarks before the session. Thank you, and over to you, sir.

Yes. Good evening to all the borders. Welcome to the concall of Karnataka Bank on its Q2 FY '23 results. I'm Mahabaleshwara M.S., MD and CEO of the bank, accompanied by my COO, Mr. Balachandra Y. V.; Mr. Muralidhar Krishna Rao, CFO; and Mr. Abhishek Bagchi, CFO Designate. Apart from disseminating the Q2 FY '23 results through the exchanges where the stock is listed, we have also sent communication to the shareholders whose e-mail ID is registered with our RTA and also uploaded the investor presentation in our website, after sharing the same with the -- with both the exchanges. I'm sure you are all well aware of these official communications. Hence, it is well within your knowledge that the Q-o-Q net profit of Karnataka Bank went up by 227.70% to INR 411.63 crores from INR 125.61 crores. This is an all-time high quarterly net profit for our bank. Similarly, the half yearly net profit of INR 525.81 crores is also a new record. In this process, in just 6 months of the current year, we have already surpassed the last year's total annual net profit of INR 507.99 crores. As far as the operating profit is concerned, it showed a Y-o-Y growth of 17.06%. Interest income, a healthy growth of 13.95%. Yield on advances further improved to 9.45%. And on account of all these, the NII, net interest income, also jumped by 36%. Overall expenditure is also well contained as the same is at 8.81% Y-o-Y. As far as the margins are concerned, NIM has further improved to 3.78% for the Q2 quarter, and thus for the H1 FY '23, it is now at 3.56% as against 3.15% a year ago, thus recording 41 bps increase. ROA also improved to 1.70% for the Q2 quarter, and thus, for the H1 FY '23, it is now at 1.10% as against 0.53% as of September '21. Similarly, ROE also jumped to 22.31% for the Q2 quarter, and thus, for the H1 FY '23, it is at 14.36% as against 6.89% a year ago. Thus, NIM, ROA and ROE have shown positive tractions. As far as asset quality is concerned, the NPAs have further moderated consistently. The GNPA has come down both in percentage and in absolute numbers. It is now at 3.36% as against 4.03% as on June '22 and 4.52% in a year ago. The NNPA has also come down both in percentage and also in absolute numbers. It is now at 1.72% as against 2.16% as on June '22 and 2.85% as on September '21. The slippage ratio for the quarter is 0.53% as against 0.89% in a year ago. Credit cost is minus 0.01% for the quarter as against 0.24% in a year ago. PCR has also improved significantly to 79.97% as against 71.67% in a year ago. CRAR is now at 15.28% as against 14.48% as on September '21, both excluding the current year's profit. CASA has grown at a rate of 12.78%, and now, the CASA constitutes 32.82% of the total deposits as against 30.88% as on September '21. The advances also grew by 10.18% Y-o-Y. So overall, the digital transaction is now at 93.17%. As far as the digital underwriting of the loans are concerned, KBL Xpress cash loans 100% is being sanctioned under the digital channel; KBL Xpress car loans, 79% of our daily sanctions are happening under this channel; KBL Xpress Home Loans, 76%; and KBL MSME loans, 75%. Further, about 59% of the SB accounts are now being opened through KBL Xpress SB account platform. Going forward, we will continue to focus on consistency by minimizing the negative surprises. Thus, we will focus more on further strengthening the fundamentals of the bank. As far as business is concerned, our priority areas would continue to be credit augmentation. As I said, we will be targeting for about 15% growth in the credit portfolio. Credit monitoring would further continue, and CASA and RTD, retail term deposits, would also continue to engage our attention because our intervention is to take the CASA to a level of minimum 35% by March '23. And all our transformation initiatives under KBL VIKAAS, that is KBL NxT journey, that would be fast tracked. You all know that we have already started our Analytical Center of Excellence at Bengaluru very recently. We had already started our Digital Center of Excellence about 3 years back during our transformation journey. So in future, majority of our decisions are driven by data, which would help us in scaling as well as taking force the decision driven by the analytics. Thus, I'm optimistic of the future as well as its sustainability. With these few opening remarks, now, the forum is open for discussion. Thank you.

[Operator Instructions] The first question is from the line of Anurag Jain from Green Lantern Capital.

Congrats on a great set of numbers. I had a couple of questions. So essentially, I wanted to understand that our cost of deposits is actually down on a Y-o-Y basis and flat sequentially, while at the same time, yield on advances and yield on investments has jumped substantially. So wanted to understand, I mean, the reasons for the same and how sustainable are the margins moving forward. And that's my first question.

Your second question?

Second question was I wanted to know from you, there are any recoveries, interest recoveries in NII, if there is? And last from my side was the SMA1 has jumped substantially -- in sequentially. So I wanted to understand what is driving that, and would it eventually fall through into the NPAs as well. So these are my questions, if you can address that.

So you have totally 3 sets of question, not 2. Okay. Anurag, as far as the first question is concerned, I think it is on cost of deposits as well as the yield on advances and investment. So cost of deposit for this particular quarter, it stood at 4.46%. Whereas last corresponding year, it was at 4.64%. And for the half year, it is at 4.47%. And last year, it was at 4.73%. I think this is the best cost of deposits that we could think of. Going forward, it is already started showing moving towards northwards. But one thing is the increase in the interest rate that we are offering to the retail term depositors, it all gets started accumulated during the current quarter and the fourth quarter, and I think the full effect of this would be visible during the next year. So we may not be able to enjoy this type of cost of deposit going forward that we have already factored in, but we have also taken note of to what extent it is going to increase. And also, to what extent our yield on advances would increase. Because in the yield on advances, since around 56% of our -- these advances are linked to the external ratings and other things, the transmission is quick. So all in all, what I'm aiming is as of now, even though cost of deposit increase is quite visible, so also the yield on advances. But our focus would be to maintain and help the interest spread. For this quarter, we had recorded about 4.99% interest spread for the -- as against 4.27% about a year back. But I'm sure that going forward, we should be able to, even during the next year also, we should be able to have a healthy interest spread of more than 4%. Then interest recoveries in NII. I think you are referring to one of the major accounts, which we have treated as NPA, even though that -- as of June, even though that account was recovered by fourth of July. And on account of that account, there is about INR 40 crores interest reversal during this quarter. And SMA account. Yes, so your question was not on SMA2, but on SMA1. As far as SMA2 is concerned, so last year, I had an SMA2 portfolio of INR 1,240.36 crores. Now, it is brought down to INR 795.82 crores. But SMA1 compared to the last year, it has gone up. But all efforts are being made to further reduce that. I'm not very optimistic that it will not have any negative surprises as far as SMA1 is concerned. So this is in a nutshell for the -- as far as asset quality is concerned.

We'll move on to the next question that is from the line of [ Atmiya Boricha ] from NVS Brokerage.

This is Nalin Shah from NVS Brokerage instead of Atmiya. I'm Director of the company. At the outset, I would like to congratulate the management of Karnataka Bank for a really, really, I would say, super performance for Q2. I have a very small question, Sir, that whatever you have narrated, based on that, we would like to know that whether for this kind of performance which you have done, can we take this as, I mean, base or similarity for the purpose of Q3 and Q4 second half of the year also? And expect a similar kind of performance? Net-net, your NII, that is net interest margin, remaining at the current level plus the -- your, I think, NPA written off were very, very, I think, meager or there was a rather -- I mean, the credit entry. So can we expect both of this to remain at the similar kind of performance?

Yes. See, as far as NIM is concerned, so for this particular quarter, it is at 3.78%. I'm [indiscernible] the view that it could be sustained at that level. But our effort -- in the past also, you might have heard me, the effort was to take it to a level of minimum 3% that we have achieved. We believe that it would stabilize somewhere around 3.4% to 3.5%. If it stabilizes above 3.5%, definitely, we are also elated as that of you. As the NII is concerned, so for the current Y-o-Y, it is at 26%. For that INR 40 crores one reversal of interest, [indiscernible] further advances also happening during the current year as well as the -- current quarter, as well as the subsequent quarter. Never and ever should be to have a comfortable NII, do not add 26% because I am realistic. As far as the ROA and ROEs is concerned, the aim all along was to take the ROA to a level of 1% and above. That goal has achieved, so definitely, we will try to sustain it. And ROE also, in fact, last conference call, I said that by March '24, we may be able to achieve 14% plus. Having achieved 14.36%, our endeavor again there would be to sustain that. So definitely, as I said in my opening remarks, now almost we have come out of all the negative surprises. Consistency, we are on the consistency track. And definitely, I'm confident that we should be able to give a sustainable performance going forward.

Excellent, excellent, sir. Once again, I'd like to offer congratulations for a wonderful team work, which has come.

The next question is from the line of Rahul Kumar from TCS.

Yes. My name is [indiscernible]. So I have a couple of questions. Sir, first of all, in your opening remarks, I don't know -- like, I just want to confirm it from you. Did you say that you're targeting a 15% growth in advances in FY '23?

15% plus.

15% plus. Okay. Second question is, again, related to that same -- like, the growth in advances that I see that you have grown your loan book at approximately 2% quarter-on-quarter. Whereas when the other banks have come out with their numbers, except for 1 or 2 banks, most of grew their loan book at 4%, 4.5% to 5% quarter-on-quarter. So do you feel that there is a pressure on, like, let's say there is a pressure on the bank when it comes to market share? I mean, can you just give some color on this whole thing?

Yes, yes. It is very relevant. I really appreciate this type of questions. There is no question of market pressure for the simple reason, I have about INR 6,000 crores plus sanctioned limits which are get to be disbursed. So -- I mean, our borrowers are also watching for the overall economy and its movement and all, especially in the manufacturing and the trade sectors. So that is why they have slightly delayed availing this. So our field level information is that this releasing activity, apart from the sanctioning activity, would pick up during the third and the fourth quarter and preferably during this next 2 to 3 months. That is why I'm still holding on to that 15%-plus credit. It is more out of the field-level conditions. If, at all, any such variations are there, I think I should be able to come out with those numbers when I interact with you during the Q3 result con call.

Okay. Just one final question, sir, now on the deposit side. Because for the last couple of months, we have been seeing that the entire banking system has been having some difficulty gathering deposits. So the loan book rate, I mean, the growth of loans can be affected because the deposit rates aren't going at the same pace. So here also, I see that -- I mean, like, what is Karnataka Bank doing to increase the deposit base? I mean, if you can again just give me some color to this. This is my final question.

Okay. I am continuously focus on increasing the CASA, and I have already constituted a separate the CASA vertical. In all my 14 regions across India, we have CASA regional sales executives and the CASA marketing officers. As a result, you have seen that CASA is consistently growing. It is now at 32.82% of the total deposits, whereas it was at 30.88% about a year ago, and the CASA has grown at a rate of 12.78%. And whereas the overall deposit, it has grown at a rate of 6.13%. Now going forward, definitely, there is competition which is hotting up for RTD. But definitely, our focus would continue to be CASA and RTD also, we will not lag behind because we are in an effective and competitive stage, wherein we are in a position to gain a good returns to our customers also. And as I said, keeping an eye on the yield on advances, my spread, I will be pricing the retail term deposits cost also. And the other thing is, apart from the mobilizing the resources from the deposits, we have other sources like refinance and all which was not effectively tapped during the previous seasons and the years, and we are now focusing on that also.

Okay. That's very helpful. Just one last thing, sir. It's like, if we look at the large private sector banks, their CASA in the range of 44%, 45%. I know you don't give guidance that far ahead, but do you think after the transformation of Karnataka Bank, like, can we see that kind of CASA? Can we presume to have that kind of a CASA going forward, in the -- probably 3 to 5 years' time?

That is our transformation aspiration, that is to reach, take it to that level. Because when we started our transformation journey, it was just at 25%, 26%, and now we are at 32%. And for the current year, my guidance is 35% plus. We are now focusing on 3 areas as far as the CASA is concerned, definitely one from the general public. And the second one is from those institutions. There are a good number of educational institutions, there are a good number of mid corporate, there are a good number of corporates where I can get both CA as well as SA of their employees and other things. Third one is I'm also focusing more on government business. Recently, our bank is also empaneled by the regulator for the government, the agency business, and we are making a lot of inroads in that area. And that is where my -- this confidence is stemming so that we could reach a level of minimum 35% by March '23. And thereafter, of course, going forward could be 38% or 40% in a couple of years.

And finally, congratulations on a great set.

[Operator Instructions] The next question is from the line of Sarvesh Gupta from Maximal Capital.

First of all, congratulations on a very strong set of results. Sir, first question on just to clarify on the NIM part, we are at around 3.78%, and we expect around 10% lower to be the normalized sort of a NIM going forward between 3.4%, 3.5%. Did I hear it correct?

Correct, correct.

Okay. And secondly, sir, on the cost to income. So we did not -- even after such a strong profitability, we were not able to sort of come down on that. So how do we see all the OpEx shaping up for us when we see around 15% sort of a growth on the loan book?

Yes. See, as far as cost-to-income ratio is concerned, we are heavily banking on our subsidiary, that is KBL Services Ltd. My cost-to-income ratio as of March '22 was 52.57%. And now for the half year ended, it is at 47.40%. I have given a guidance in the past that it could be somewhere around 45% to 50%, and for another one or a couple of years, it could be there at that range. And going forward, we are optimistic that it will further improve. And one factor which was slightly affected during this year, there is a superannuation benefit of around -- superannuation benefit cost of around INR 50.80 crores for this particular quarter as against INR 23.09 crores for the last corresponding year quarter. So that is also one thing. Otherwise, the cost to -- this cost-to-income ratio, I presume that it is behaving as per our original planning.

Understood. And finally, on the cost of deposits. So you mentioned that currently, the cost of deposits is around 4.46%. Surprisingly, it was even lower than what was there 1 year back, so if you can throw some color on that. And going forward, what is the incremental sort of the cost of deposits that you are incurring, especially given the fact that if you have a 15% growth target, then you will need to ramp up quite quickly on the deposit.

The cost of deposit is bound to increase. No question about it. But at what rate it is increasing? Our expectation and the calculation, conclusion is that for the current year, it may not show significant increase. And for the next year, yes, it is going to have an impact. And as I have already mentioned, this 4.46% is the lowest. My lowest as of [indiscernible] below that. So this is -- as of now, this is the lowest. In fact, as of March '22, our cost of deposit was 4.66%. That means 4.64% as of September '21, 4.66% as of March '22. Now, it is at 4.46%. So going forward, as I said, this is already factored in, but we will be focusing more on maintaining a healthy spread.

So this NIM guidance of 3.4%, 3.5%, does that hold true for next year also? Or will we see a further impact because your cost of deposit...

I am on that. Next year, let us see. Anyhow, we are meeting during the next quarter and we will -- definitely, we will share that. But I think once we reach that, we will definitely be able to sustain that, as you have seen the PCR. PCR also, I think in my last many concall I have been telling that I want to have it at 70%, 75%, now, 80% and all. So no question of letting it down.

The next question is from the line of Amit Mishra from Indus Equity Advisors.

Congratulations on really good set of numbers, sir. Sir, my first question is on recoveries. The account for which we have reversed INR 40 crores, what was the recovery amount for that?

One minute, my CFO will answer that. So it's a total outstanding balance on that account of INR 348 crores, and the entire INR 348 crores has been returned without sacrifice. There the balance of INR 348 crores, that was comprising of INR 40 crores interest and INR 308 crores principal, so that entire amount is reversed -- recovered.

Recovered. Okay, sir, understood. And the second question is, sir, what are our strategies on brand expansions? And what are our digital spends likely to be in FY '23 since we are opening digital banking units. And how many more such units are we planning to open? And what is the response of such units?

Yes. Very, very good question, Amit. I'm really appreciative of you. Future is in digital mode. So that is why in our second phase of transformation journey, we have already gave to emerge as the digital bank of future when we start our second century saga. Next year is our centenary year, so we have already started preparing ourselves for the centenary year, and all these preparations started when we embarked upon our transformation journey. It was mainly with an intention to have strong numbers, strong fundamentals and also to have an healthy underwriting practices and also to have a healthy credit portfolio as well as the liability portfolio. So this being the case, so we will continue to have a few brick and mortar branches, but our effort will be to have more and more digital touch points across India. DBU is one such initiative wherein very recently, the Honorable Prime Minister of India has inaugurated 75 DBUs across India from all the banks. So in that 75 DBUs, there are 2 DBUs from Karnataka Bank also. Apart from that, we already have a digi branch, digi centers and quite a number of e-lobbies and all such things. So going forward, the physical branches that is the brick-and-mortar branches, that would act as one of the channels or one of the touch points for the customers. So we may not aim big for opening new branches, but definitely, we are aiming big for more number of digital touch points.

Okay. Understood, sir. Understood. Sir, my next question is on cross-selling. Are we doing cross-selling, and which products are we doing?

Lot of effort is going on in my bank as far as cross-selling is concerned. In fact, we have started an initiative called Each One Sell One Every Day. So I have 8,500 team members across India, so they have taken up this responsibility of each one, selling one each and every day. So I have given them about, apart from the asset and the liability products, there are about other 19 revenue-generating products as well. So one simple example, it could be FASTag, it could be co-branded credit card, all such things. So they have been amply trying about the product knowledge as well as the sales skills. So our team is out there, and I'm optimistic that both the cross-selling as well as upselling will continue to be the hallmark of Karnataka Bank hereafter.

Okay. Sir, one last question. So can you give me the absolute number of CA and SA? The breakup of CASA?

Yes, yes. The total CASA is INR 26,790.39 crores. Of that, SA is INR 22,127.97 crores, and CA is at INR 4,338.68 crores. And balance sheet's overdue deposits, that is just INR 323.74 crores.

Congratulations once again.

The next question is from the line of [ Darshil Trivedi ] from Crown Capital.

Sir, congratulations on a great set of numbers. Sir, I just wanted to ask the process that we are focusing right now on sustainability. But -- so what do we see as our credit cost going forward? What would be your process sustainable number?

Yes. Credit cost, as I said, during this quarter, for the first time, it is at negative. Last year, for the full year, it was 1.04%, and for the current half year, it is at 0.67%. So definitely, it may not go up, but let us be conservative in projecting the credit cost at less than 1%.

Okay. That is clear, sir. And sir, we're talking about sustainability, sir, of pre-provision profits that would also sustain at this level. Could we -- because you're planning a 15% growth in loan book, so what kind of growth could we see in our pre-provision profit?

As far as the profit is concerned, I don't think -- yes. As far as operating profit, yes, definitely, it is sustainable. And since our provision pressure, everything has significantly come down. So naturally, it should help us in having an optimistic number in that front.

The next question is from the line of Manish Dhariwal from Fiducia Capital Advisors Private Limited.

The stupendous results that have come out, fantastic, sir. It was a great performance. So I just basically wanted to understand the quarter-on-quarter differential that has happened. So the 2 components, which I wanted to get an understanding on. Sir, one was the other income. So other income has actually improved from INR 132 crores to INR 260 crores. So I just wanted to understand the breakup of it? And secondly, sir, like you -- the employee costs have gone up from INR 178 crores to INR 262 crores. So what has caused this increase on a quarter-on-quarter basis?

Yes. I will hand over the mic to my CFO, I think he will give that.

The operating profit, what you are comparing, INR 132 crores was for the first quarter, other income. As well as the second quarter, it is INR 251.37 crores. So in fact, if you take the recoveries also, because there was one item of recoveries from written-off account is there, so that has been made a good performance there. You are talking about which income, sir? Other income, no?

Other income, sir, other income. So it was INR 132.79 crores. Sir, my understanding was this increase, this recovery actually goes into the NII. It does not go into other income.

No, no, sir. Recovery made from written-off accounts is other income only.

Written off account. So I don't think it was written off, so it was provided.

Yes, yes.

Okay. Sir, can you have a breakup, sir? Like INR 132 crore and INR 260 crore.

Yes, that I can give it to you later. Breakup is there. I will give it to you later.

Okay, sir. Okay. And the other employee cost?

Pardon me?

Sir, the employee cost. Employee cost has moved to INR 178 crores to INR 262 crores.

Employees cost. Employees cost, if you see, there are 2 breakups for employees costs. One is the salary cost margin, superannuation cost. But that -- in the second quarter, the superannuation cost has gone up.

Okay. So you just gave the figure, can you repeat that figure?

Yes. In June quarter, it was one -- total establishment was INR 178 crore. Correct, no? .

Yes. So I'm asking about the superannuation.

Correct. Superannuation, in the June quarter, it was reversal of INR 19.39 crores.

Okay. Okay. And September, sir? What was it?

INR 50.80 crore.

INR 50.80 crore. So that explains it, that explains it. Okay. Sir, this is huge variation that's happening quarter-on-quarter. So anyone who's wanting to basically build an understanding about the way the performance is going to move going forward, so how should one basically understand that how will it move?

It's all market-linked superannuation benefit. We too don't have any control over in it. Whatever the actuary provides the number, we have to provide that number. It again depends on the market yield.

There are 2 events for superannuation activity. One is the yield for the residual maturity of employee. Our residual maturity of employees is around 21 years. So any yield movement in that will affect the superannuation benefit. And number 2 is the increase in the inflation, DA. DA increase is also a part. So now inflation is increasing, so the DA component is also increasing for both retired employees and regular employees. So that will be affecting the superannuation provision.

[Operator Instructions]

Shall we take the last question, or we can even conclude?

Sir, we have the next question from the line of Yashwin Kumar, a retail investor.

Firstly, comment on the [indiscernible] for the Karnataka Bank employees. So congratulations for the [indiscernible]. So everybody has done a great job. So my first question is with respect to the provisions. So any reason why we have not made any provisions to increase the PCR?

No, PCR has increased, no? PCR has increased from 71.67% to 79.97%. That itself is an indicative of increased provision. Yes. So the PCR would not have increased, no?

Right. I understand that. My question is more in terms of since we have made a good set of profit numbers, so is there a part that has been going behind saying that, okay, why can't we increase the provision coverage ratio to more than 80%? Because considering the economic situation at year end, so -- I mean, is there a reason why we could not really think of increasing at much better levels?

I have other 2 quarters, let me look into that. And consistently, we are increasing the provision. The PCR, if you look into the various segments and all. And if you look into the NNPA portion also, I have these portfolios which are well secured. 93% security coverage is there for our NPA portfolio also. So keeping that in spite of that, we have increased the PCR to around 80%. So most probably, we should be able to sustain the PCR at around 80%. That is more than sufficient for the portfolio, but we already have at present.

Okay. That answers my question. And the second question is with respect to the transformation. So -- I mean, right from the beginning, we have been aiming for the -- with respect to the advances, we targeted 20% of large corporate exposure and 30% of mid-corporate and 50% of retail advances. So I see that there is a slight increase in terms of large corporate advances. So going forward, will we be making more -- put otherwise, going more towards increasing our large corporate exposure or otherwise? Or otherwise, we want to stick back to that whatever the numbers that we have started with?

Yes, that's a general guidance that we have. Our general thinking is that we should have retail and mid-corporates at the 80%, with a 50% retail and 30% mid-corporate and around 20% corporate. As of now, I have 49.63% under retail, 29.32% at mid-corporate and 21.04% under the corporate sector, but this is one general guidance. But more significant thing for us how this particular portfolio is behaving, and what are the yield from this respective portfolio? Even though in the corporates, these are all having the external rating, the risk is relatively low. Yield is also low compared to the other sector, so we have to take an informed decision. What should be the composition of these things going forward depending on the external economy, my one risk perception as well as the yield advantages that we are going to have? So to that extent, we will be always exercising our judgment related things, and we will always aim to have a healthy and remunerate of the portfolios out of these 3 sectors from the advances.

Okay. And one last question. I have seen the presentation, I mean, this quarter. I love that information very much. So I hope we continue to do -- I mean, do a presentation like this. And I was looking for this restructuring. I see that there is a restructured portfolio based on geographies. So I was looking for sectoral-wise loan restructuring. So that will give us more confidence on like in which particular area, there is more of restructuring. So do you have that number?

That is the geographical restructure in the area, sectoral and geographical.

I'm referring to Slide #23.

Yes, yes. See, very interesting that slide, Mr. Yashwin. If you look into the GBC and compare it with the NPA as well as the restructured portfolio, I think across all the regions, across all the major performing states, there is implement. Look at the Karnataka state, NPA to the GBC has come down from 2% to 1.53%, as well as restructured portfolio has come down from 9.12% -- no, 4.23% to 3.68%. So this is a general trend. Overall also, the NPA from 4.5% to 3.36%, 7.8% to 6.1% there. You want it to be further elaborated or what it is?

No, no, no. See, okay. So there is a -- look at the Slide #22, with this sectoral loan exposure. So similar to that, I was expecting that sectoral loan restructuring.

Sectoral loan restructuring. Okay. Earlier, I think we have given, but still we can cover that. Going forward, I will make a note to cover that.

Yes, that would be great.

Restructuring, okay. All these things when we have a huge restructuring portfolio, it matters. But fortunately for us, even though about a year back, our restructuring was at around 7.5%. Fortunately, it has already come by about INR 1,000 crores. And going forward, I am optimistic that it will further come down. But nevertheless, I have made note that sectoral restructuring, like what you have said about agriculture restructuring, MSME, housing and that I think we'll try to provide. Thanks for the suggestion.

Yes. And I mean, the reason -- the only reason why I raised that point is because I have been comparing the restructuring with other banks. So we see pretty much 3% to 4% of the restructuring. So I'm hopeful that Karnataka Bank will also soon reach to that level where we are competing with other banks.

Ladies and gentlemen, we'll be taking the last question. That is from the line of [ Ganesh Shetty ], an individual investor.

Congratulations for blockbuster results. Yes, the revenue growth or the NIM, the NII, the NNPA and every phase or area we have performed exceedingly well. This is an unprecedented performance by Karnataka Bank. And it's like what Kantara movie has done in film industry, we are repeating in the banking industry.

We see that movie, Ganesh. We have already booked the ticket to see that movie.

Yes, please say you will see that our own performance is repeating there.

It's across the globe, that is [indiscernible] for Indian [indiscernible].

And nevertheless, our performing is also very, very excellent this quarter. And I also congratulate for sailing the bank through a very difficult time with our visionary leadership. And just one question regarding the NNPA front, that now, as far as our Vision 2020 was concerned where targeting 1.5% of NPA. And now, we are very, very close to it. And going forward, how you are taking special portion for big accounts so that there won't be any substantial increase in NNPA? And what is the role forward for NNPA, can you please explain this. This is my only question.

The asset quality will continue to engage our continuous attention. There will not be any complacency in monitoring our platforms. And while taking any exposure, irrespective of the size of the credit, we have put in place a lot of filters, so our underwriting capabilities have improved immensely. As a result, I am very confident that we will be able to stick on to our original estimation of around 1.5% NNPA and below 3% GNPA, so we are very much on track.

Congratulations and all the best.

Ladies and gentlemen, that is the last question. I now hand the conference over to Mr. Mahabaleshwara M. S. for his closing comments.

Thanks to all the analysts, all the investors, all the well-wishers for Karnataka Bank, for the keen interest they have shown in this concall. And every quarter, we have been having a very insightful interactions, and this time also, it is not an exception, and -- while seeking your best wishes for our continued performance. On behalf of my entire Karnataka Bank team, I convey my greetings to each one of you, and we are determined to continue to give our best as far as Karnataka Bank's performance is concerned. And we will continue to work hard in the days to come to realize the transformation dream of our Karnataka Bank when we enter our second century. So wish you all the best.

Ladies and gentlemen, on behalf of Karnataka Bank, that concludes this conference call. We thank you for joining us, and you may now disconnect your lines. Thank you.