UCO Bank (UCOBANK) Earnings Call Transcript & Summary

Good afternoon, everyone. Welcome to UCO Bank Q2 FY '26 Earnings Conference Call. It is my pleasure to introduce to you the senior management of UCO Bank. We have with us today Mr. Ashwani Kumar, MD and CEO; Mr. Rajendra Kumar Saboo, Executive Director; Mr. Vijay N. Kamble, Executive Director; and other management team from UCO Bank. We will have the opening remarks from the MD, sir, post which we will be open to your questions. Over to you, sir.

Thank you. I welcome you all, all analysts and investors to this post September quarterly results of UCO Bank. Along with me, I have our EDs, Mr. Saboo and Mr. Kamble; top management team, including CFO, CRO and all other executives. First of all, I welcome you all to this analyst meet. Just to give you about the brief of the bank, performance in this quarter and half year ended September '25, business of the bank grew by 13.23%, of which deposit growth was 10.85% and credit growth was 16.56%. Deposit -- CASA grew by 9.53%. Saving growth was 7.50%. And current account growth was 23.94%. We were able to maintain CASA 38.11%, and the guidance given was 37% to 38% CASA growth -- CASA percentage. Consistently, our CASA is in the range of 37% to 38% for the last almost 3 years. When we look at our credit growth within the credit, our RAM growth, retail, agri, MSME put together, grew by 22.87%. Within the RAM, retail growth was 25.4%, and retail growth was supported by housing loan growth of 18.94%, car loan growth of -- vehicle loan growth of 72.87% and agriculture was 17.28% growth and MSME grew by 23.8%. Our RAM percentage increased to 65.23% of the total advances. Now coming to the profitability parameters. Our operating profit grew by 10%. Our operating profit for the quarter ended September '25 stood at INR 1,613 crores, registering a growth of 12.64%. Net profit stood at INR 620 crores with a growth of 3% on a Y-o-Y basis. Our operating profit growth and net profit was supported by growth in net interest income for the year -- for the quarter ended September '25. The growth was 10.08%, and fee-based income growth was also more than 10% during this period. Our net interest margin global stood at 2.90%, and domestic NIM stood at 3.08%. This NIM is calculated excluding onetime interest income of INR 107 crores, which was realized by -- in a TWO account, that was exceptional item. So that has been excluded. If that is included, our NIM -- global NIM and domestic NIM improves by another -- more than 15 bps. Now coming to asset quality. Our gross NPA has reduced by 60 bps -- 62 bps on a Y-o-Y basis, to 2.56%, and net NPA has reduced by 30 bps on a Y-o-Y basis, to 0.43%. Our PCR further improved to 96.99%. Tangible PCR, excluding TWO, improved to 83.68% as against 78% earlier -- a year before. Total recovery and upgradation for the quarter ended was INR 792 crores. Recovery, upgradation and TWO recovery in previous quarter, it was INR 756 crores. For the half year ended, it was INR 1,548 crores against the target -- full year target of INR 2,200 crores to INR 2,700 crores guidance we have given. Now coming to the slippage ratio. The slippage ratio for the quarter ended September '25 was 0.26%. Annualized, it was 1.04%. It is again within the guidance given of 1% to 1.25%. When we look at the slippage, slippages are mainly -- this quarter, are from agriculture, INR 238 crores, basically because of the KCC portfolio, half yearly, there is a phenomenon. Last year also same quarter, it was INR 206 crores. This quarter, it is INR 238 crores. Apart from that, the slippages are under control and overall slippage ratio remains within the guidance given by the bank. When we look at SMA 1 and 2, more than INR 1 crore. And SMA 0, 1 and 2, more than INR 1 crore. All three categories put together, our SMA is INR 1,790 crores, so which includes 0, 1 and 2, and that works out to 0.77% of our total advances. When we look at restructured portfolio, our restructured portfolio has been consistently coming down. Normal restructured portfolio as per RBI guidelines, September '24, it was INR 2,786 crores. Now it has come down to INR 1,561 crores, which works out to be 0.65% of the total advances. Apart from that COVID-19 restructured portfolio, that was INR 1,718 crores. In September '25, it has come down to INR 7,283 crores. That is, again, a substantial reduction is there. So overall, restructured portfolio, both the schemes put together is INR 2,784 crores only. Then coming to our ratios -- key financial ratios. Our cost of deposit has been contained, and it has come down from 4.88% in September '24 to 4.73% in September '25. Though our CASA is around 38%, but we are able to manage our cost of deposit well by managing our liquidity on an ongoing basis. Similarly, our cost of fund also has come down by 22 bps over 1 year, from 4.79% to 4.57%. Cost-to-income ratio, which used to be very high, once upon a time, around 61%, has been consistently coming down. Now it is 52.79% in this quarter. Our yield on advances on domestic is now at 8.39%. Yield on investment is 6.84%. It has improved from the last quarter. Our business per employee has also improved from INR 22 crores a year before to INR 25 crores. Business per branch has also improved from INR 145 crores to INR 161 crores in this year. If we include the exceptional income of INR 107 crores, that is onetime interest income of INR 107 crores in this. While calculating our yield on advances or NIM, our yield on advances stood at -- global stood at 8.25% as against 8.06%, and NIM global stood at 3.03% as against 2.90%. And yield on advances, domestic stood at 8.60% as against 8.39%. And NIM domestic, which stood at 3.23% as against 2.90% -- sorry, 3.08%. So in all these parameters, there is a considerable improvement. Now coming to capital adequacy ratio of the bank. Capital adequacy ratio of the bank has been consistently strong. And this quarter also without adding profitability for the half year ended September '25, our capital adequacy ratio stood at 17.89% and with Tier 1 capital of 15.90%. CD ratio has improved to 75.47% as against 71.77% a year before. So there is an improvement in the CD ratio as well. And this CD ratio is again within the guidance we have given at the start of the year. Most of the parameters, whatever guidance we have given at the beginning of the year in business performance, deposit growth -- target guidance was 10% to 12%, our achievement is 10.85%. Credit growth, our guidance was 12% to 14%, achievement is 16.56%. CASA percentage was 37% to 38%, achievement is 38.11%. RAM percentage, we projected 61% to 63%. We have achieved 65%. CD ratio was in the -- guidance was 75% to 77%. We are at 75.47%. Credit cost, less than 1%. Our credit cost is 0.72%. NIM global was 3.0% to 3.10%, which we have revised to 2.8% to 2.9% in view of the sharp reduction in repo rate by Reserve Bank of India. That now, we stand at 2.90%. Gross NPA, our year-end projection is at 2.50%. We have already reached 2.56%, and we are poised to improve to 2.5% -- below 2.50% by the year-end. Net NPA, our guidance was less than 0.35%. We have already reached 0.43%. We are still 2 quarters, and we are confident that we will be achieving this net NPA ratio also. Total slippage ratio was also 1% to 1.25%. Now our ratio is 1.05%. Recovery and upgradation, our guidance was INR 2,200 crores to INR 2,700 crores, achievement is INR 1,548 crores. So these all are the financial performance parameters of the bank, which I wanted to highlight in this forum. Now I'll come to the various initiatives bank has taken and which are under pipeline. As you all know that we started Project Parivartan, digital transformation, last year, September. And till now, we have already digitized 27 digital journeys across retail, MSME, agri and all liability products, 5 more journeys are in pipeline. The bank's total digital business has reached INR 10,554 crores as on 30th September 2025. Our mobile banking users have increased from 14 lakh in March '23 to 57 lakh in September '25. Our mobile banking rating, mobile banking app rating on Google Play Store has improved, and it is consistently now at 4.8. Our mobile banking channels are available 24/7 for all activities with regard to transfers or payment or liquidation of FDR or premature FDR or payment of FDRs, anything. We introduced Tab banking in the last financial year, in March, to all the branches. Today, around 57% of our accounts are opened through Tab Banking in the branches. WhatsApp Banking was also launched last year. Today, when we speak, WhatsApp Banking user base has increased to 15 lakhs, and now we are offering 46 services in 5 languages: Hindi, English, Bengali, Assamese, and Odia to our customers. Many new features have been added, Positive Pay System, Re-KYC, Aparajita Debit Card Issuance, account balance in Sukanya Samriddhi and STP journey lines. But many more features are planned in the WhatsApp Banking in the near future. In mobile banking, we have launched Beneficiary Lookup for the convenience of our customers to book slot. So slot booking option has been given in the mobile banking also. Re-KYC has also been introduced through ATMs also. We have introduced Eterna Metal Card for HNI customers, 250 new ATMs have been installed, and 59 recyclers have been installed. Number of -- we have started API gateway and API integration in a number of -- with a number of corporates, have been done. Last year, we started with CBDC, which has now become operational. And now CBDC app for the Android customers is already launched. And we have also migrated to the new website -- to the new domain that is .bank.in as per the direction of the Reserve Bank of India. In IT, a number of new initiatives are also planned, which are underway in this half year, coming half year and the next year, like application performance monitoring software, cybersecurity vault, [ near DR ] at Kolkata, robotic process automation, omnichannel, interoperable cardless cash withdrawal, Android ATMs, CBDC, more functionalities will be added in the CBDC, face authentication for quick reset, that will be added. So against a budget of around INR 1,000 crores, which we have kept for the IT enhancement, INR 275 crores has already been spent. Another INR 300-odd crores is in pipeline. Maybe by December, we'll be spending that also. So that is also on track. Now various more initiatives are being planned, which are underway. That is Murex treasury solution, which we started last year. Now it is going to be live in the next quarter by December. We have also planned to launch our CASA back office for onboarding of new customers. Forex TC, that is also being launched. DMS is already on way. Consolidation of data center is already in process. Video KYC will be launched soon. We are also launching capital market cell for various activities. Tie-up with various mutual funds are being explored for the -- to boost our fee-based income. Branch expansion plan, which is approved by the Board, we are now planning to have 150 more branches by March. We are aggressively working for the improvement of our branch ambience. And tie-up with various OEMs to boost our retail, agri and MSME outreach. Omnichannel experience, omnichannel project is also underway. And maybe by next year, that should be up and running to give a uniform experience across channel to our customers. Plus on the employees' side also, a lot of initiatives are being taken. Bank is recruiting more and more skilled manpower to support the new realities of today's world, like in IT, digital and also in cybersecurity, AI/ML-driven grievance redressal system is being introduced. We have already created AI/ML cell. And now we are exploring use cases where we can use AI/ML in a big way. To enhance our customer service, we have launched -- revamped our UDAY chatbot also, with live agent and balance inquiry, mini statement, et cetera. IVR system has been upgraded to 35 services with priority option for senior citizens, NRI, CKYC information. Employee-specific feedback has been introduced to understand the behavior or the services rendered by our staff members. Priority services have been flagged for Divyangjan customers. We have also integrated with the RBI MuleHunter to combat this mule account problem. Integration with I4C has also been completed. We have already launched new 8-digit toll-free number in line with RBI guidelines -- government guidelines. Integration has been completed with the suspect registry also. API has been linked with DoT for MNRL and FRI usage. Enhanced enterprise fraud risk management for proactive transaction monitoring has been done. So these are the number of initiatives the bank has already initiated and are in pipeline, which will be seeing light of the day in the quarter and the next quarter and next year also. So these were the few thoughts I thought before we open up, I must share with you all. So now we are open for your question and answer or your observations, which our team is there to respond to your queries. Thank you very much.

[Operator Instructions] The first question that we have is from Ashok Ajmera.

Ashwani sir, Vijaykumar ji, Saboo ji and the entire top management team sitting there, first of all, yes, compliments for yet another good quarter, both on the profitability front as well as the asset quality front, there are a lot of improvements. Having said that, and of course, you have maintained even that -- a little bit of CASA also has gone up, which is under pressure in some of the other banks, even this percentage-wise. So they are all very good points. My major point which generally comes to my attention is, number one, is the credit growth. Though on an annualized basis, you are talking about 16.56%. But if you look at the current FY '26, now 6 months have already gone. And we are still at about, I think, INR 10,000 crores or something only, plus INR 30,000 crores more is required to be sanctioned and disbursed to meet your target of 14% on this. So on the credit front, this half year has been comparatively slower if you talk about the entire FY '26 end results. So on that -- your views on that? And what is the sanction pipeline? And how are we going to meet and whether we are going to -- because in our corporate book also, there is a fall in this quarter by about, I think, INR 4,000 crores. So are we again looking at the -- again, rebuilding the corporate from here to meet this shortfall as well as also to increase the corporate book? Or you are going to continue to have the retail book only even on growing further? So your thoughts and planning on that? My second question is on the ECL. On the SMA 1 and 2, you have made a provision of INR 462 crores. So what has gone into -- I mean, in this calculation because SMA 1 and 2 is around INR 970 crores something. So on that, the provision is -- you made is INR 462 crores as per your note in the accounts, above INR 1 crore. So on the overall picture on the ECL, what kind of calculations have you done and what will be required to be -- to meet these guidelines and whether we are within the comfortable zone for that? So some light if you can throw on that. Sir, another one is, sir, on the income and expenditure front. Our income in this quarter has gone down -- non-interest income has gone down because, mainly, one is treasury income has gone down, from INR 198 crores to INR 104 crores this quarter. And the recovery from written-off account is also about INR 45 crores, INR 50 crores lower than the last quarter. And because of that, I think the non-interest income is under pressure in this quarter. One another thing which I would like to know, sir, is that we have a recovery through the NCLT resolution of INR 104 crores in this quarter. So can you throw some light on that also? And what are the recovery prospects in the remaining 2 quarters on that? So -- and similarly on that one SR, there is a note of the government secured the NARCL, that INR 274 crores applied revised norms. So on INR 274 crores SRs, you applied the revised norms. So how much in absolute terms any effect has come into P&L in this quarter because of that? That is Note #19. So these are some of my data points which I asked and some of the observations on which I seek your comments, sir.

Thank you, Ajmera ji. I think most pertinent and relevant observations made by you. See, so far as credit growth is concerned, you will find that our retail, agri, MSME is growing well. In corporate, we have degrown. And if you look at our corporate where we have degrown, if you go a little deeper into that, more than INR 2,000 crores is from PSU segment. So basically, that is because of the yield pressure. So when we wanted to give them at a higher price, they had the option of taking it a lower price from some other competitive banks or peer banks. So we did not agree to the lower pricing. And we thought that instead of bringing our NIMs under pressure, so it is better to not go for a top line growth without any -- having any margins in the yield. So that was the intent and because of that only. And there were certain IBPC, which were there, which became due for the payment, but we did not agree for the pricing which they were offering. So now the balance sheet is totally free of IBPC. There is no IBPC outstanding as on date. So that is -- because of this only, there was a degrowth. But if you look at previous quarter, every time there was a growth in corporate credit book also. And so far as the next half year is concerned, let me also tell you that around INR 17,000 crores to INR 18,000 crores sanctioned pipeline is there. It is again subject to agreement on the pricing. If we agree to the pricing or corporates agree to the pricing, we'll be able to lend them. Otherwise, we'll look for more and more new opportunities, which are now, I think, available in the market in various renewable segment, your data center, your battery swap segment, this smart metering. So a number of opportunities are there in the market where we are targeting new business opportunities, right? The second was about ECL. See, if you look at our June, we have already made some provision on SMA 1 and 2 book of INR 189 crores, and INR 190 crores of forward-looking provision was there. So it is nothing, but we have clubbed that towards ECL. We have not done any calculation. It is same thing. Some additional provision has been made on the book. So next quarter, we will be doing a detailed exercise. And then we'll be allocating it to different segment, like Stage 1 and Stage 2, like that we will be doing in the next quarter. We'll start doing. But our intent is that before the new norms kick in, we'll have at least baseline provisioning required, baseline provisioning for different, different -- so that baseline provisioning should be available within the bank. If you look at our SMA 1 book, more than INR 1 crore. More than INR 1 crore book is around INR 1,700 crores only. More than INR 1 crore, 0, 1, 2, all. So 0, 1, 2, INR 1,790 crores, I think, this much is only...

Yes, yes.

Yes, INR 1,720 crores. So per se, this provision is applicable to the entire portfolio. And even below INR 1 crore also, we'll be spreading it, so that next quarter, we'll be doing a detailed exercise. This quarter, we have just clubbed it, and marked it towards ECL going forward. Yes, treasury non-interest income, if you look at fee-based income, there is a growth in fee-based income. But because of treasury and write-off, write-off recovery, you all -- you can see every quarter, we cannot have same set of recoveries that whatever we recovered. If you remember, in March, we have a bumper recovery from one account. And that helped us to register a good amount of total overall recovery and good amount of profitability also. So that is the reason we have already reduced our target of recovery because that was expected in this last quarter. But if you look at the overall recovery, including upgradation, recovery and written-off, we are well within our guidance given, right? In spite of our slight reduction in treasury income and in non-interest income, our operating profit has gone. So that clearly shows that other channels have participated, maybe NI or fee-based income. That has led to the growth in our operating profit also. Regarding that SR note, I think, if you can explain?

This SRs basically, this is a government guarantee in line with the RBI guidelines is INR 275 crores pertaining to government guaranteed SRs has been deducted from the capital. Accordingly, the capital position has been reduced.

So no impact during the quarter or anything in P&L?

No.

No, nothing in P&L?

No impact on P&L.

Okay. And that NCLT recovery of INR 104 crores through the resolution has come this time. So...

Yes, that is -- I think in a few accounts, it has come, and few accounts are already in pipeline where maybe in the next quarter, we'll get some recovery. These 5 accounts through resolution, it has come INR 104 crores. Other than INR 104 crores, it is through SARFAESI auction or normal recovery or upgradation. So out of total recovery of INR 758 crores, which we have reported...

INR 792 crores.

INR 792 crores. Out of INR 792 crores, only INR 104 crores is through NCLT auction. Other recovery is through SARFAESI auctions or recovery and upgradation efforts by the branches.

And sir, one point on this -- our DTA because of the carryforward losses, and we have a huge DTA, even now also, I think, of INR 5,258 crores as reported in Note #7. And -- but with this kind of profitability, which we are having, INR 620 crores, INR 50 crores per quarter, maybe around INR 2,800 crores or INR 3,000 crores maybe for the whole year. So is there any calculation done that by what time we can go under the new regime of taxation by setting off the entire DTA available to us?

I think, it is -- we have another 2 years. '27, '28, we should be going into the -- because now as we are going forward, 83% of the portfolio is already provided for our tangible PCR. So that provisioning requirement will come down. So once the provisioning requirements are coming down, naturally, you will have an opportunity to declare more profits. And then as you declare more profits, more reversal will be there. So hopefully, in the next 2 years, we should be consuming it.

The next question that we have is from Sushil Choksey. Sushil, you can unmute yourself.

Happy Diwali to all UCO Bank team and congratulations for a very stable number.

Thank you. [Foreign Language]

My first question is we are showing very good growth on some new segments, which have started, specifically car loans. I mean we always had a product, but some new initiatives are there. We are talking about retail loan growth. Now with the new credit -- new guidance come from RBI, co-lending and other verification, new policy, CLM 1 and 2, what kind of initiatives are we taking to energize our RAM sector on a higher trajectory?

See, Sushil ji, you are right that car loan has been growing well. We have revamped our product in housing loan, car loan also. And we -- that segment is growing well now. In light of this RBI new guidelines on co-lending, we are planning to -- we have started looking at certain tie-ups with certain NBFCs to enter into some relationship with them so that this co-lending thing can be taken further. As far as at present is concerned, we have a co-lending exposure -- currently, we have a co-lending exposure of INR 2,100 crores, and we expect that in light of the new guidelines, we should enter into relationship with new -- more and more NBFCs and take it forward. Pool exposure is around INR 10,700 crores. But the target will be that we'll enter into a co-lending where we have more control and visibility about the customers to whom we are onboarding.

Sir, RBI also allowed a lot of capital market activities, whether lending against shares, now merger acquisition. You also have an international position from Singapore, Hong Kong. Do you see that this year, the traction will come from that segment too and in the retail product share advances and new IPO financing?

See, this new announcement made by RBI, I think it is going -- definitely going to open up a new stream for the banking sector as such. So once the guidelines are in place, I think we should be open to looking at the opportunities for participating in those M&A activities. Having our presence in Singapore and Hong Kong, we should be very keenly looking at those opportunities.

Sir, are we -- we can set up from GIFT City also, sir?

Yes, GIFT City, we have already got approval from Reserve Bank of India to open GIFT City branch. And now we are getting into all the infrastructure in place. So once the GIFT City comes into play, at that time, GIFT City will be a major contributor to this segment. And then third one?

Capital market financing.

Yes. See, IPO financing, yes, definitely, this is an area which is, I think, a very interesting area. We should be looking at getting into this area. We have not yet ventured into this, but definitely, we'll be looking into this area now.

Sir, my question is more pertinent to because cross-sell of mutual fund, cars, insurance, car loans, share advance, new IPO financing will attract a lot of customers from CASA point of view, which would help the bank's margin to improve.

Then definitely, mutual fund, I tell you, although we have already a platform through which the customers can onboard on the mutual fund, but we are also exploring direct tie-up with the mutual funds. The benefit is that we will have more percentage as a commission than a shared commission. So we are exploring that also, and we have already taken the ARN. Now we'll be going ahead in entering into a partnership or MOU with the mutual fund so that we onboard through that some channel and then gets more commission. Because many of our customers are directly getting into that mutual fund, SIPs are there or onetime mutual fund investments are there, so that also we are exploring. Definitely, that will -- as we engage more with the customers, stickiness of the customers improve, it will have a positive impact on our CASA also, apart from our fee-based income. It will have -- give us more cross-sell opportunities for car, housing, whatever we think. So that is another area where we are working on.

Sir, what is your outlook on global NIM and domestic NIM and also on balance between corporate and RAM?

See, corporate and RAM, we have given a guidance of 61% to 63% in RAM and 37% corporate. We continue to have that guidance of 61% to 63%, though we are at 65%. The 65% is basically because of some reduction in our corporate to INR 4,000 crores in this quarter. Otherwise, we were at around 63%. And second...

Those advances must be low-yielding ones, that's why you have said it, no?

Yes, yes, yes. That was low yielding advances. And second, on global NIM and domestic NIM. Earlier, global NIM, we have given a guidance of 3% to 3.1%. But subsequently, in June, there was a sharp reduction in repo cut by RBI. So we have revised our guidance to 2.80% to 2.90% for global NIM, and 3.0% to 3.10% for our domestic NIM.

Sir, what is our digital spend? And what is your outlook on treasury for the year?

See, digital, I've already told our target is around INR 1,000-odd crores in this year, out of which INR 275 crores is already spent, and another INR 370-odd crores projects are in pipeline, which are under ordering stage or RFP stage. Further new projects will come. So I believe that by the year-end, we'll be spending around INR 800 crores to INR 900 crores in the digital spend. That is one. Number two, in the treasury. If you look at treasury, we have slightly built our book in this quarter. Earlier, our total book was around -- the investment book was around INR 91,000-odd crores, and now it is INR 94,000 crores or INR 95,000 crores. So to take advantage of the slightly harder yield during this quarter, we have built some portfolio. And hopefully, whenever there is an opportunity in the times to come, either some repo cut is coming or some other treasury yields are falling, that time we'll have an opportunity to make use of those securities and to book some profit on those securities.

Okay, sir. Second thing, sir, I hear that you are also getting good capital market gains. Is that to be assumed it's a sustainable profit to your treasury?

Which gain? Capital market?

Treasury gains.

See, treasury gains are depending upon, again, the market situation and transaction to transaction.

No, no. Sir, you are assuming only on bond. I understand equity is also contributing well. That's what I'm asking.

Okay, IPO. IPO opportunities are always there, and we are all regularly participating in IPO opportunities also. That we are already -- recently also, there were 2, 3 good IPOs we participated. And definitely, we had a good gain in those IPOs. So that opportunity base, wherever is there, we'll continue to encash on those opportunities. We have a very active treasury now.

Yes, yes. Second thing, sir, how are you positioning yourself that there is a commodity boom likely because of hard assets are under more likelihood. You've seen what has happened in gold, silver. Now I understand minerals as our next phase. Are we capitalizing because we are based in East where a lot of headquartered companies are in this business? Are we seeing any green shoots in that business for mineral mining and all is concerned? And second thing on green energy, that is green financing, if you have taken any steps?

See, first, let me tell you, green financing, we have a very good appetite for green financing. I think in last 2 years, we have already done around INR 3,000-odd crores of sanctions. And INR 2,000-odd crores is outstanding?

INR 3,000 crores.

INR 3,000 crores is outstanding. So that is again -- this is again done in last -- almost 2 years. 2 years prior, we didn't have much exposure. We are into that Surya Ghar Yojana also, EV financing also, these are the small chunks, which are adding to the renewable segment. And now coming to this minerals, see, though we are there, we have customers who are dealing in all those commodities. So we are ready to explore the funding opportunities in those commodities to those customers who are into manufacturing lines. And we'll try to avoid the customers who are into speculative trade in these commodities.

The next question that we have is from Mr. M. B. Mahesh.

Just one question, sir, can you give us the SMA 0, 1 and 2 for the overall bank as well? What you've given is only INR 1 crore.

But it was bank as a whole.

You've given us for INR 1 crore and above. Can you give us for the entire portfolio?

I think more than -- if I have to give a full number, it should be in the range of INR 5,000 crores. It should be in the range of INR 5,000 crores.

Can you split this between SMA 0, 1 and 2?

[ Take the other bank... ]

See, SMA 0, 1, 2, if you ask me, SMA 0 should be -- more than 50% should be in the SMA 0. And around 50% should be in SMA 1 and 2.

And the number, which you said, sir? Sorry, I'm just kind of...

Sorry?

What is the number that you said? The overall number? INR 5,000 crores?

Overall number should be -- I don't have exact number. It should be in the range of, I think INR 5,000 crores to INR 6,000 crores. It should be in this range only.

INR 5,000 crores. Okay. And the second question, sir, on this itself, as per your understanding, the movement of this provisions on the -- when it's implemented [Technical Difficulty]

Sorry, we are not able to hear you. Volume -- can you increase volume?

See, when you -- sir, just checking on the provisions that you're creating today and if there is any shortfall, the provision goes through the P&L or it goes through the net worth, when you're doing this onetime transition?

Which provision -- if we make the provision, it goes to the P&L.

No, no. That is...

If we make provision, it goes to the P&L on advances and wherever we make the provision.

See, the regulator has given a time period of -- close to about 4 years for implementation. But the question that we are asking is, if there is a shortfall, do you have to charge it to the P&L when the balance sheet opens in '28? Or does it go through the net worth as an adjustment on reserves?

Okay. During that time? No, its entire amount will not go to P&L.

The entire amount will go to the P&L, and then it will be adjusted to the capital...

Capital...

Okay. And the last question, sir, do you have any excess provision outside of this -- outside of standard assets and...

Excess provision.

Yes, excess provision we have kept -- see, in total, we have around INR 1,000 crores of excess provision, which is by way of a COVID-19 INR 530 crores and around INR 460 crores towards ECL, which we have captured this time in our notes also. So it is declared in our notes that around INR 1,000 crores is additional provision over and above RBI mandated provision that is lying in our books.

Okay. Perfect. And last question on the -- what will be the outstanding stock of written-off or technically written off and your current expectation of recovery from that book?

See total written-off...

It will be [indiscernible].

And your expectation of recovery from this?

See, recovery is a very -- a number giving out of that number will be difficult because recovery number we are giving every year based on our assessment at what level of resolution of that asset is. So when we look at our -- technical write-off is around INR 26,000 crores currently. And INR 24,000 crores is -- INR 26,000 crores TWO portfolio.

Ladies and gentlemen, that was the last question for the team. Now I would like to hand over the call to the management for the closing remarks.

Thank you very much to all our analysts and investors who have taken out time to join the conference call post half-yearly results for September '25. And wish you all happy Diwali, and I can again ensure to all of you that bank is doing well. We have been improving our performance in various parameters on a quarter-on-quarter basis, maybe business growth, in various segments, it is well proportionate across all segments. Deposit growth, bank has started improving. And also in asset quality parameters, considerable improvement is there, and it is a sustained improvement on a quarter-on-quarter basis. Our team will continue to work towards further improvement in the coming quarters. Thank you very much.

Thanks a lot.

Thank you. On behalf of Antique Stock Broking, we would now like to conclude the call. You may all now disconnect the call. Thank you.