UCO Bank (UCOBANK) Earnings Call Transcript & Summary

Good afternoon, everyone. Welcome to UCO Bank Q3 FY '25 Earnings Conference Call. It is our pleasure to introduce you to the senior management of UCO Bank. We have with us Mr. Ashwani Kumar, MD and CEO, sir; Mr. Rajendra Kumar Saboo, Executive Director; Mr. Vijay Kamble, Executive Director. We will have opening remarks from the MD, sir, post which we'll open the floor for the question-and-answer session. Thank you, and over to you, MD, sir.

Thank you. I welcome all analysts and investors to this post quarter 3 results analyst call. First of all, I would like to share the business performance of the bank in quarter 3, our guidance, initiatives taken and planned. Then we will have your observations and our comments on your observations. See, our bank's business has grown by 12.28% in quarter 3 for the year '24/'25 on a Y-o-Y basis, of which deposits grew by 9.36%, advances grew by 16.44%. In the deposits, savings grew by 6.23% and current grew by 25.74%. Our CASA ratio maintained at around 37.97% as against 37.61% a year ago. Our CASA growth was around 8.24% on a Y-o-Y basis. In advances, our retail grew by 31%. Within retail, home loan grew by 19.36% and vehicle loan grew by 51.93%. Agriculture grew by 20.04%. Within agriculture, our focus was on SHG and gold loan, agri allied activities. So these are the 3 components where growth was there. In MSME, the growth was around 12.75%. If I come to asset quality, Bank's NPA -- gross NPA has come down to 2.91%. There is a 94 bps improvement over last year. Net NPA improved by 35 bps to 0.63%. Our PCR improved by 95 bps to 96.16%, and our tangible PCR, excluding TWO, also improved to 78.90%, that is 350 bps improvement over last year. Profitability parameters. Our net interest income grew by 19.62% on a Y-o-Y basis. Our noninterest income grew by 37.75%. NIM domestic improved by 36% (sic) [ 36 bps ] on a Y-o-Y basis to 3.38%. NIM global also improved by 33 bps on a Y-o-Y basis to 3.17%. Our yield on advances domestic also improved by 25 bps to 9.06%. Our yield on advances global also improved by 22 bps to 8.70%. Our operating profit for the quarter improved by 41.73% on a Y-o-Y basis to INR 1,586 crores, and net profit improved by 27% on a Y-o-Y basis to INR 639 crores. I'll now go to the guidance, which we have shared at the start of the year. Our guidance was domestic -- our deposit growth, 8% to 10%. We have achieved 9.36% in this quarter. CASA growth guidance was 8.8% to 10%, our achievement is 8.24%. Credit growth was 12% to 14%, achievement is 16.44%. CASA 37% to 38%, we are at 37.97%. RAM mix was 60% to 62%, we are at 62.36%. CD ratio, we have planned for the year, 74% to 75%. We have achieved 74.45%. Credit cost was less than 1%. Now for this quarter, credit cost is 0.49%. NIM global was 3.00% to 3.10%, we have achieved 3.17%. GNPA less than 3%, we have achieved 2.90, and net NPA less than 0.65, our achievement is 0.63 in this quarter itself. Slippage ratio was 1 to 1.25In this quarter, it is 0.92So all guidance parameters have been achieved in this quarter performance. Our CD ratio, which was around 69.93% a year ago, has improved to 74.45% in this year. Business growth, I have already spoken. Priority sector, all targets have been achieved for the priority sector lending. If we look at our rating mix, 81% of our portfolio is -- 78% of our portfolio is BBB and above. Now coming to fee-based income, noninterest income, it improved from INR 861 crores to INR 1,186 crores. That was INR 100 crores -- more than around INR 100 crore improvement in the recovery in written-off accounts and in our charges and commission for advances around -- from INR 106 crores to INR 130 crores. Charges and commission from others, INR 145 crores to INR 180 crores. And treasury income also improved from minus INR 25 crores to INR 145 crores. So that was the reasons for our improvement in our noninterest income. If you look at our cost of deposit, our cost of deposit in December '23 was 4.91%. Now it has improved to 4.90%. Cost of funds was 4.78%, has improved to 4.75%. Cost-to-income ratio, it was 60.72% a year ago. Now it is 55.50%. Sequentially, quarter-on-quarter, it is coming down. Our business per employee, which was around INR 20 crores a year ago, it has touched now INR 23 crores. Similarly, business per branch has also improved from INR 135 crores to INR 150 crores. So operational efficiency parameters, there is a good improvement in the bank. See, we had a slippage of around INR 418 crores in this quarter vis-a-vis INR 860 crores in the previous quarter and INR 483 crores in December '23 quarter. Last quarter, we had one big account that slipped. We discussed that account last quarter. But this quarter, the slippages are across segments, it is not that in one segment it is lopsided. Slippages are there in retail, agri, MSME and corporate also. But our overall recovery and upgradation in this quarter was INR 1,064 crores and against -- cash recovery and upgradation, INR 309 crores, written-off INR 1,064 crores in this quarter. And total slippage was INR 418 crores only. And on a quarter-on-quarter basis, we are seeing that our slippages are lower than our overall cash recovery and upgradation in our advances, NPA accounts. If we look at our segment NPA, retail credit NPA ratio is 0.74% only. And in our agriculture, NPA ratio is coming down on a quarter-on-quarter basis from 14.44% in December '23 to 11.70% in December '24. Similar in MSME, it was 7.46%. It has improved to 5.78% in December '24. Now the SMA, stressed account more than INR 1 crore. We declare every quarter SMA accounts more than INR 1 crore. The amount of SMA in 0, 1, 2, in all 3 categories, more than INR 1 crore has come down to INR 1,468 crores. This is 0.70% of the total advances. Previous quarter, it was 0.79%. And prior to that, a year ago, it was 1.04%. So the asset quality has been improving on a quarter-on-quarter basis. Our restructured portfolio is also coming down with repayment on a quarter-on-quarter basis. Our total restructured advances as on December '23 was INR 3,663 crores, has come down to INR 2,706 crores. So that is a good improvement. But let me also share that on restructured advances, whatever RBI-mandated provision is required, that is already there. In addition to that, we have already made additional COVID-looking provision of INR 530 crores. Though the portfolio is coming down on a quarter-on-quarter basis, but we are holding on to that provision, additional provision in our books. Capital adequacy of the bank is 16.25%. But if we look at 9 months profitability and we add 9 months profitability into our net worth, then our CRAR will be 17.5%. We have 3,298 branches as on today. As on December, it was 3,263. But as on today, 3,298 branches are there. Average age of our employees is 38 years and 74% of our employees are less than 30 -- 40 years of age. Bank and our team has been working in digital parameters. Our active mobile banking users have doubled in a year's time with a growth of 97%. Active mobile banking users has also increased by 82% in a year's time. And our digital business, that is opening of RD and FD digitally has also increased by 81% in 1 year. UPI transaction volume has also improved by 36% in 1 year and 10% in 1 quarter. WhatsApp banking users have also improved by 304%. We introduced WhatsApp Banking a year ago. Now around 5 lakh customers are using our WhatsApp Banking. In 1 quarter, improvement is 71%, but in 1 year, it is 304%. Now the initiatives taken by the bank. Bank has launched last quarter -- last to last quarter, bank has launched digital transformation project, Parivartan, where we have planned digitization of at least 25 journeys across various liability and asset segments, of which 9 journeys have been made live till now and many more journeys are under plan. Every month, we'll be coming out with the digital journeys. We had planned for INR 6,000 crores of digital business in this financial year. And I'm happy to share that on asset side, we have crossed around INR 1,300 crores of digital business. And on liability side, we have crossed around INR 7,000 crores of digital business, that is opening FD, RD and other deposit products. And current outstanding is around INR 5,000 crores in all those digital business parameters. We have also introduced various enhancements in our mobile app and Internet banking, which, as a result, our corporate mobile banking app, which is one of the unique mobile banking app for our current account holders, that rating has also raised to 4.7. And mobile banking -- for retail customers, mobile banking app rating is also 4.7. We have also launched various partnerships in our digital marketing space, that is our discounts with Plutos using the UCO debit cards; Zomato discounts using UCO debit cards; BookMyShow buy one, get one offer; Positive Pay features on WhatsApp; on Swiggy, debit card user offers are there. And we have also exclusive banking partner with Bali Yatra Utsav, Asia's largest open trade fair in Odisha. On ESG initiatives, bank has been taking various initiatives. We have launched a special concessional rate of interest on EV schemes. We have launched PM Suryodaya scheme as announced by Honorable Prime Minister. We have also launched Green Deposit scheme, where we offer higher rate of interest to our customers than the normal rate of interest. We have also obtained green certificate from CESC for purchasing 25% of renewable energy. We have planted over 22,000 trees across India. And our renewable energy portfolio has also increased to around INR 3,700 crores in this quarter. So these were the few initiatives which we have taken in this quarter. One more thing, we have given a guidance of around INR 3,000 crores of recovery in this financial year, out of which around INR 2,700 crores has already been recovered in 9 months. And further initiatives have been taken for enhancing the customer service. Digital queue management system has been introduced in high-traffic branches for quick and secure and seamless customer experience. WhatsApp banking has been launched, wherein we are providing 35 services in 5 languages, Hindi, English, Bengali, Assamese, and Odia. Multichannel feedback system has also been introduced in branches, website, mobile banking, IVR, QR code, queue management system to enhance customer satisfaction. For our retail customers, we have launched UCO Utkarsh, a preferential financial support to students admitted to premier institutes; Aspire 2.0, this is enhanced educational loan scheme for financing meritorious students studying abroad. For female customers, UCO Udaan Scheme special concession rate of interest has been given. Women-centric policy has been introduced in the bank. Policy on learning and development, policy on local bank officer has also been introduced. Bank has advertised around 250 local bank officer posts, which has just gone live last week. Bank is also planning to bring talent by inducting specialist officers in IT, CS, law, risk security officer, HR, fire officer, and economist. For women customers, special incentives have been given in home loan scheme of 0.05%; in MSME, 0.25% concession for women under MSME; education loan, 0.5% concession under IBA Model Scheme. Special scheme has been launched for MSME entrepreneurs, women entrepreneurs, UCO MSME Nari Samman, special scheme for women entrepreneurs. Similarly, for women customers, UCO Aparajita debit card has been launched. That is exclusively for women with enhanced benefits. Exclusive products for saving, current, and flexi RD for women under the umbrella, Pink Basket, has been introduced, which is loaded with accidental insurance plus attractive discounts on our lockers and other services. In IT and cybersecurity, a number of things have been implemented. We have established gen next network operations center. We have upgraded bandwidth of our branches. We have introduced re-KYC through phone banking. Tab Banking has been introduced and around 50% of branches are opening accounts through Tab Banking. Other branches have also been provided with a Tab. And hopefully, by this next month end, all branches will be equipped with the Tab Banking and opening accounts with the Tab Banking. We are also planning to launch CBDC and Eterna card for HNI customers, that is a Rupay debit card with premium privileges for HNI customers. We are also planning to launch slot booking through mobile banking, so that the customer need not wait. We are also launching now MSME Yuva Shakti for young entrepreneurs, supply chain finance, Forex, PC. So many things are in pipeline. Hopefully, in this quarter, things will be getting launched. And next year we will see the operation of all these things going live. We have embarked on a branch expansion plan of 130 branches at the time of start of the year. Happy to share that in our 82nd year of Foundation Day from 82nd year to 83rd year, that is on 6th of January 2025, we have already opened around 82 branches and the remaining branches are under process. And hopefully, by March, we should be completing another 20, 30, or maybe 40 branches by March. So that was on expansion plan. So these are the highlights which I wanted to share with you. I will now pause here and will be available for your questions and answers and queries. Thank you.

[Operator Instructions] We will take the first question from [ Divya Pandey ].

What is your total gold loan portfolio, including agri and non-agri gold loan? And how is the growth in that segment?

[ And ] gold loan? Go ahead, please.

Yes, so you can answer this and then I'll ask the next one.

Okay, okay. So gold loan portfolio is around INR 8,900 crores, currently -- sorry, INR 9,600 crores. So we have a very small gold loan portfolio of INR 9,600 crores. And our growth in gold loan portfolio is how much? 25%?

And also, sir, could you tell the agri and non-agri split?

Yes, yes, I can give you. Out of INR 9,600 crores, agri is around INR 5,581 crores and retail is around INR 2,000 crores and MSME is around INR 2,000 crores, so agri is around 50%.

Okay. Okay. And sir, my next question would be, so the personal loan segment has grown very sharply this quarter. Though the total portfolio is very small at INR 2,000 crores, but growth looks much higher. Could you just throw some light on that?

See, we have started a digitization program called Parivartan, under which PQPL was one product which we launched. And this product is backed by transactions in the account, customers having salary accounts, customer having regular flow of income into their accounts for the last 9 months. Basis those BRE, eligible customers were given offer and they availed that offer. Here, I would like to specifically mention that these are the customers who are maintaining salary account with us or pension loan account with us or are having a regular transaction for the last 9 months. So basis that, this offer is given. It is hardly 1% of our total portfolio.

We will take the next question from Sushil Choksey.

Sir, congratulations on stable numbers.

Thank you, Sushil ji.

Sir, I have a couple of questions on the growth path of the bank. Do you think you have to up the guidance or you would maintain the guidance?

Sorry, Sushil ji, I was not able to hear.

Your guidance for credit growth this year, looking at the numbers, will you exceed the target or you'll maintain the target?

See, our guidance was 12% to 14%. And in last 9 months, we have already achieved around 11.5% growth on YTD basis. On quarter-on-quarter basis if we look, this quarter, our growth was around 5.42%, last quarter 2.42%, previous June quarter 3.41%. So our guidance is 14%. Guidance now looks to be on a conservative basis. We'll definitely surpass the guidance going by the current trend.

Sir, my next question is on your -- the NIM is concerned and your guidance on ROE, ROA, NIM, can you elaborate what is likely to evolve in the Q4. Are there any changes likely to happen there?

See, our NIM guidance was around 3 to 3.10, and happy to see that we have achieved our guidance in this quarter and previous quarter, and we have been -- our NIM has been improving on a quarter-on-quarter basis. On 31st March, we had 3.03, then 3.09, 3.10, and now 3.17. That is global NIM. Domestic also, we have improved from 3.02 in December '23 to 3.38. So 36 bps improvement in our NIM in the last 1 year on a domestic basis and 33 bps improvement in our global. So our guidance continues to be 3 to 3.10, but we will continue to work in improvement of our NIM on a quarter-on-quarter basis, as we have been doing last 5, 6 quarters. And ROA, ROE, if you see, our ROA has been improving. If you look at from June '23, it was 0.28, then 0.54, 0.67, 0.69, 0.7, 0.73, now 0.79. So quarter-on-quarter basis you will see, ROA and ROE continues to improve in every quarter.

Where do you see your gross NPA and net NPA number at the year-end?

Our guidance was less than 3%. We have already achieved 2.90%.

Sir, I'm happy with 2.9%. I'm asking whether you will go to 2.5% or 2.4% by the year end, and 0.63 and 0.5?

Choksey ji, [Foreign Language]. So if everything goes right, then we will further reduce it from 2.90, maybe 2.80 or something like that.

So my intent of question was if your profitability is rising, will you provide more and bring the NPA numbers down, or there is like -- it seems that you had a smart recovery in this quarter also. So the recovery path is going to help? Or is the telecom account having some resolution, which I'm sure some other analysts will ask you later and elaborate, but where is the recovery coming from technically, written-off assets or some other recoveries, some elaboration? Because I see the number on recovery is better than previous quarters.

So recovery has come from recovery in written-off accounts in this quarter also, previous quarter also. We expect the trend to continue, but magnitude may be here and there, but the trend of recovery will come, because many customers are coming forward for resolution also, for OTS also. So on case-to-case basis, we are taking a call to accept the resolution or to accept the OTS amount. Where we get a value for money, there we accept. So that is one on recovery front. On our MTNL, telecom, we are yet to get any final offer or final. There were certain discussions, which JLM has not yet agreed and final resolution plan is yet to be put in place. So once that is in place, that time we will have some good amount of recovery. But to share with you, we are 100% provided for in that account itself in this quarter.

So how are your efforts working towards digitization and CASA growth?

See, if you look at my CASA, we have taken a lot of initiatives, I explained in the earlier quarters also. What we have done in this quarter, we have strengthened our zonal resource team. Earlier, our focus was on central office and corporate office resource team. We have strengthened -- now we have given Tab to all branches. Earlier, it was around 1,700 branches. Now the configuration of the Tab with biometric is going on. I think by next month end, all Tabs will be up and running. So that will help me in getting quality CASA customers acquisition when our people go in the market. But with these little efforts, whatever we have taken in last 1 year, if you see, our CASA ratio has been maintained in 37% to 38% range. We have not seen major decline in our CASA ratio. CASA ratio continues to be around 37% to 38%, and that was our guidance also that it will be our endeavor. Going forward also, our focus will be on quality CASA customer acquisition through Tab Banking, through various salary saving account tie-ups. We have already done a few tie-ups in last quarter. Our teams are giving -- zonal resource team and head office resource team are giving presentation to various PSUs, MNCs to open salary account of their customers. So some are clicking, some are not clicking. So efforts are on and efforts will continue in this financial year also to see that we are able to maintain our CASA ratio.

Sir, every bank is aspiring that I become a consumer bank among PSU banks, and numbers are looking good on many fronts. What are the new products which you have launched in consumer finance in our bank where other than home loans, which everybody talks about, what other products -- I understand we have done something on auto, so I'm specifically asking what products have we launched which is yielding good results at your end?

See, recently, looking at the interest of our customers, we have revamped the entire education loan scheme for our students studying in India, studying abroad, studying in premier institutes, and also for women customers who want to study abroad. So the entire product portfolio has been revamped. In MSME, basis the request received from various zones, we have launched cluster-specific schemes. For the women customers, MSME has launched an MSME Nari Samman Scheme for women entrepreneurs. With attractive features for young generation, MSME Yuva Shakti Scheme has been launched. That is also to attract young entrepreneurs to our scheme of things. As announced by Honorable FM, towards digital push to MSME, this is their digital footprint, MSME Smart Finance scheme has already been launched with digital MSME loans up to INR 25 lakhs. Then GST Smart Finance scheme has also been launched. So that is also attracting a good traction amongst the customers. And apart from that, we are working on bringing preapproved vehicle loan to our existing customers basis their transaction history. Bank has implemented EDW project where 360-degree view of the customer is available. And basis our AI/ML, we are able to generate leads and push those leads to our branches. Branches are connecting to those customers and giving special offer to those segmental customers, either for education loan, housing loan, vehicle loan. So that effort has also started yielding some result in this quarter. Yes, for our HNI customers, we are launching a special metal card, Eterna metal card for our HNI customers with various in-built benefits to our HNI customers. For women, we are launching a special card, UCO Aparajita debit card, to attract our women customers with special benefits to those customers. We are also planning to launch UCO Wealth Corner at our branches, specific branches, maybe 40 to 50 branches across India, because what we analyzed that many of our customers are using our account and they're making some investments in various mutual funds, various share brokings. So we want to offer those services to our customers, specialized services. We are planning, but we are yet to finalize what will be the modus operandi, how it will operate, which branches, which customers. So that is also in the pipeline.

So this will be all done digitally, right?

Yes, yes, digitally.

So our app expenditure, and what is the outlook on the app, which we are trying to enhance the visibility of the app?

Our mobile app?

Yes.

Mobile app, if you look at our numbers, we have given in our presentation also, our mobile active users, we have started tracking in the last 1 year. Earlier we used to track registered users and now we have started tracking active users. In last 1 year, our active users have improved by around 80% to 90%. Our daily logins have also improved by almost double.

Can you share the number, what was that last year and what is the number today?

See, today, our active mobile users are around 38 lakhs. A year before, it was around 17 lakhs, 18 lakhs only.

Sir, secondly, I understand you are doing specific product on secondhand car finance on the luxury segment. This is what I hear from a customer who has done that transaction. What average ticket are we doing and what rate is this finance? Because you are trying to differentiate yourself from other banks who are not doing the product. That's the reason I'm asking that question.

See, we have a product where we finance these vehicles, maybe luxury or not luxury. We got it -- [Foreign Language]. So that is giving us a good yield in the range of 10% to 11% -- in the range of 11%.

What LTV will be this?

What?

Loan to value?

Loan-to-value will be around 75 -- 30-70 or 25-75.

Secondly, sir, my last question is on provision and contingency. Quarter-on-quarter, we have gone up. I think last quarter we had income back tax write-back. This quarter, we have made some additional provision. Can you highlight what is that for?

Which one, additional provision?

Sir, provision for NPA has reduced and others has increased from minus INR 156 crores to INR 320 crores. So I assume there was an income tax write-back.

Okay. Okay. See, provisions, on some of the other assets, we have kept a provision of around INR 300 crores. And NPA...

Are we doing some accelerated provision for ECL loan, or what is this?

This is a forward-looking provision. I will not say that ECL accelerated -- this is a forward-looking provision we are building in within the system.

Sir, my last question to Saboo ji, sir, [Foreign Language]?

Good afternoon. Treasury outlook, we all know that the yields are moving in a range. Earlier, we saw the yields falling and then again picking up due to various geopolitical and other issues. So I think the yields will continue in this -- our estimate and our anticipation is that the yield will continue to fall -- remain in this range. Maybe if we see some good news going ahead in Indian economy and financial market and liquidity position, we can see 660 type of level, that is maybe, we don't know. But broadly means broadly the range, 660 to 680 will continue. I think that is our view as of now.

Sir, in last quarter, the quarter which we are reporting, INR 710 crores is the recovery written-off assets. Can we sustain this number in this current quarter? Or it will be higher or lower?

Recovery in TWO?

See, recovery -- see, total, we have given a guidance of around INR 3,000 crores of recovery in this financial year. And there were certain accounts which we were preempting that they will come in fourth quarter, but the recovery came in third quarter also. So recovery will be in this range, but a little bit of here and there in this quarter also, because certain accounts which were expected in quarter 4, that recovery came in quarter 3. So that is the reason that our recovery in quarter 3 is on a higher side.

We'll take the next question from Ashish.

So my question is regarding the loan growth. So the loan growth in corporate segment was quite healthy at 5% quarter-on-quarter. So which segment is driving this? And how is the demand outlook on this segment? And what are the total sanctions you have as on date? And which sector contributes to it? So I want to know on this.

See, if you look at our corporate growth, there were certain segments, like road and infrastructure, there was a growth in this quarter, around, I think, INR 1,000-odd crores growth in road and infrastructure. That was a complete road project, that also I can tell you. And then in metals, there was a growth in this quarter. Certain ethanol projects, iron and steel projects, cement, renewables. So these are the projects where we saw some interest coming in. There are many sanctions which are in pipeline and under disbursement also, maybe around INR 10,000 crores of sanctions are there, which are under disbursement. That will take a little longer because gestation period or moratorium period for implementation of the project is there. Second, demand is also coming from the data center. We have already done one. Another data center project is also under process. This is not from one sector, various sectors, we are getting interest across the sectors.

My second one is on, so company is marching towards sustainability and having a lot of sustainability initiatives as of now. What is the company's way forward towards having a green portfolio or investing in companies with green projects?

See, if you look at our initiatives which we have started, first, we have started -- from the liability side, we have started raising green deposit by offering additional interest over our normal deposit rate of interest, number one. Number two, we have introduced asset product, which encourage customers to buy EVs or solar products, and we are offering them an attractive rate of interest. Third, our focus is on renewable projects also. And our portfolio has improved and increased in this quarter. This quarter, we had around -- outstanding is around INR 3,700 crores of renewable energy portfolio. Our focus in the coming quarters, we'll continue to enhance our green financing portfolio by bringing one or the other initiatives, whatever is there. We have also introduced this in our credit rating product also, the initiatives which customers are taking for building their companies as a green company. We have also obtained certification -- certificate from Kolkata Electricity Supply Corporation for 25% of renewable energy certificate. And then we have also tied up with PCAF for assessment of our portfolio. So that will also give us some indication where we are moving, where we need to go and how we need to go.

[Operator Instructions] We'll take the next question from Anmol Das.

So my question was related to the corporate segment, because we have been seeing the banking sector not lending out very easily towards the corporate segment like they used to. So are we seeing that it has already been overplayed and now especially the PSU banks are going to lend more heavily towards the corporate segment in the coming, say, medium term, this next fiscal year?

See, if you look at corporate, our growth in corporate on a quarter-on-quarter basis is sustainable. Our corporate book continues to be in the range of 31% to 32% of our -- sorry, 37% to 38% of our total advances. Our RAM segment continues to be in the 61% to 62%. And if you look at this quarter also, our corporate book growth is around 14%, wherever (sic) [ whereas ] our RAM portfolio growth is around 20%. So it's not like that the banks were not giving credit to the corporates. Banks have been giving credit to the corporates on a quarter-on-quarter basis, on a year-on-year basis also. And we'll continue to keep lending to all bankable projects which come to us in corporate segment. As I already told in the question before you asked that in the last quarter, we have funded to basic metal also, we have funded to road project also, that is a completed road project, we have funded to ethanol projects also, we have funded to textile also, we have funded to iron and steel also, data center also. So wherever bankable project, where cash flow feasibility is there, promoter standing is there, our bank has been funding those projects, and we'll continue to fund those projects.

Understood, sir. And on the retail mix, if I say, so retail loan growth has been faster than the corporate. So will you be going ahead than your guidance regarding RAM mixture and go beyond 62% or 65% of your portfolio in the RAM side?

See, our guidance is around 61% to 62% RAM portfolio. We'll continue with 61% to 62%. And if it improves, it is so far and so good. What we have done is, we have activated our branch network from where we are getting leads generated. We have introduced hub structure where they are sending leads. And as a result, TAT has improved a lot for housing loan, car loan, MSME loans. As a result, we see a good amount of growth in our retail segment. And we will continue to grow in retail and in corporate also. And healthy mix of 62% will -- I think it's a healthy mix we need to continue to maintain.

Okay, sir, understood. And a good set of numbers, congratulations.

Thank you, Anmol ji.

We'll take the next question from [ Ashlesh Sonje ].

Congratulations. Sir, firstly on the recovery from written-off accounts, that number has increased Q-o-Q quite sharply. Was there any lumpy recovery here? And if you can give more details about this?

Yes. I already shared that there was a recovery in one big account in this quarter, which we were expecting in quarter 4. And fortunately, that came in quarter 3 itself. So that is the reason that recovery in quarter 3 is substantially high than the earlier quarters. And that was a good recovery, I think. I can't tell you the name, but that has come, that is true.

Which sector has this come from?

Sector I can tell you. It's SEZ -- so that is from infrastructure sector. That was from infrastructure sector. There were 2, 3 accounts, and one we were expecting in this quarter, fourth quarter, but it came in third quarter.

Okay. Got it. Sir, and under the retail loans category, you have a segment called other retail loans, what is classified under that line?

See, under other retail loan, we classify our staff loans, loans against FDR, gold loans, co-lending, and LAP, plus any portfolio which we purchase from some other -- under DA purchase. So that also comes under other retail.

Sir, major portfolio here would be which one?

Major portfolio is staff loans and pool which we have purchased, loan against FDR. So these are the 3, and education loan. So these are the 3, 4 loans. So gold loan. So gold, staff loan, against FDR, pool, and education. These are the 5 components of these other loans.

[Operator Instructions] We'll take the next question from Sushil Choksey.

Sir, what is the update on the equity front? We have hired merchant bankers, which is visible in public domain. There is a rumor that there is OFS likely also for 4, 5 banks, which are in the category, where government has to dilute equity as per SEBI norms, and there is rumor that you may have to force to do a QIP also. So what is the update between 2?

See, as far as OFS is concerned, we are not aware of any such development. What we have approached to the government is for approval of QIP, which we have got the approval in previous quarter, and we have already gone ahead with the selection of VRLMs, legal counsel, everything. We have started meeting investors also. Last quarter also, this quarter also, we have met in the first week of January. And we'll continue this journey after these results also. And hopefully, any time after these results, we will come for QIP.

As there is no further question, I hand over the call to MD, sir, for his closing remarks.

Thank you all the analysts and investors for taking interest and sparing time to attend the post results con call with the investors. And we have given a guidance on various parameters, and we'll try to make sure that we achieve our guidance, whatever we have given. And as we have been improving our performance in various parameters on a quarter-on-quarter basis, our team will continue to improve on all those parameters regularly and we'll try our level best to give the best of the results on a quarterly basis. Thank you very much.

Thank you. That concludes UCO Bank's earnings call. Thank you for joining.

Thank you.