Union Bank of India (UNIONBANK.NS) Q2 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Union Bank of India Earnings Conference Call for the period September 30, 2025. The bank is represented by the Managing Director and CEO, Shri Asheesh Pandey; Executive Directors, Shri Nitesh Ranjan; Shri Ramasubramanian S.; Shri Sanjay Rudra and other members of the top management. [Operator Instructions] Please note that this conference is being recorded. Now I hand over the call to Mr. Ajay Bansal, Deputy General Manager. Thank you, and over to you, sir.

Thanks, Madam. Good afternoon, ladies and gentlemen. I, Ajay Bansal, Head of Investor Relations. Welcome you all for the Union Bank of India Earnings Con-Call for the period ended September 30, 2025. The structure of con call shall include a brief opening statement by respected MD and CEO, sir, and then the floor will be open for interaction. Before getting into the con-call, I will read out the usual disclaimer statement. I would like to submit that certain statements that may be discussed during the investor interaction may be forward-looking statements based on the current expectations. These statements involve a number of risks, uncertainties and other factors that cause the actual results to differ from the statement. Investors are therefore requested to check this information independently before making any investment or other decisions. With this, I now request our respected MD and CEO sir for his opening remarks. Thank you, and over to you, sir.

Thank you so much for this. Good afternoon to everyone. I extend a warm welcome and sincere thanks to all of you for joining us today for this investor call analyst presentation. Actually, your continued interest and trust and engagement with Union Bank of India is truly appreciated. So before moving to -- we have already uploaded the presentation in our website and also as per the required regulation to the NSE-BSE stock exchanges. So I'm very sure it is available to all of you. But in brief, I would like to just give you the macroeconomic environment in which the banking industry is working upon. So the first is, as you know, there is a bit of global economic conditions, some a bit sort of uncertainty, maybe evolving trade dynamics, tariff-related developments or maybe related to the oil or geopolitical situations, et cetera. But then if we see on the domestic front, the key macroeconomic indicators are well supported by the policy interventions by the Government of India as well as on the monetary policy from the regulator. So I think the total outlook is very optimistic. And if we see externally the IMF data, the GDP growth is projected around, say, 6.7% to 6.8% range. We're one of the fastest on the developing economies across the world and then driven by government capital spending on infrastructure and rural India. Similarly, the -- our projection as far as the bank is concerned is around 6.7%. That is -- it is actually higher than the last year, our real GDP expectation of 6.5%. So that is again good. With this background, at the same time, I appreciate and acknowledge the -- our customers, that is their lineage with us and the vantage which the bank enjoys with the customers across the country. And I believe that is the core values of the bank and the staff members who are there to support the sourcing, the servicing of the customers. So here, I would say, the bank performance, the strategic focus remains as at pursuing sustainable growth and real calibrated balance between top line expansion as well as bottom line strength. So while the bank is working upon the business side, the growth in the business, but at the same time, the bottom line is taken considered. With this, the key financial highlights in this background, I would say the net profit for Q2 FY '26 stood at INR 4,249 crores, making a Q-on-Q increase of 3.25%. For the first half of FY '26, the net profit reached INR 8,365 crores. The OP, if we take is for only quarter 2 '26, it is INR 6,814 crores. And for the first half is total INR 13,723 crores. The profitability ratios, ROA is comfortably at 1.16. The return on equity stood at 15.08. The capital adequacy is one of the best in the industry at 17.07 with CET1 ratio at 14.37 percentage points. Similarly, there is an improvement in the asset quality, which is an important parameter for any of the bank in the industry. The gross NPA reduced by 107 bps Y-o-Y to 3.29%. The net NPA declined by 43 bps Y-o-Y to 0.55 percentage points. The PCR stood at 95.13 reflecting a well-provisioned balance sheet of the bank. The credit cost and slippages, again, reflecting the asset quality of the bank, the credit cost stood at 22 bps for quarter 2 FY '26, which was 109 bps in quarter 2 FY '25. The slippage ratio was contained at 0.91 in quarter 2 FY '26 compared to 2.40 in Q2 FY '25, that is Q-to-Q. The gross slippages for half year '26 stood at INR 4,496 crores. The recoveries of half year FY '26 stood at INR 6,284 crores. And during the first half of '26, gross recovery has surpassed the gross slippages by INR 1,800 crores. I think this is a very important parameter, so that is the reason I have covered in my opening remarks. While NIM was maintained at 2.67%, the net interest income registered a go -- there is a degrowth, but then the noninterest income had a robust growth of 11.37%. Coming to the business growth and strategic priorities. So we have actually cautiously curtailed high-cost bulk deposit mobilization, so around 21.85 Y-o-Y in September '25. So there is a reduction in that, and that is actually giving a sort of a good support while we say we are cautious about the NIMs on maintaining margins. So total deposit, that is the reason has grew by 1.9% Y-o-Y and advances registers the 5% almost growth, precisely 4.99 on Y-o-Y basis. While we say that we have shelved out the bulk deposit, yes, because of the cautious being the maintaining margins. But the retail term deposits plus CASA grew by INR 1,03,000 crores Y-o-Y basis. The retail lending growth is around 23.98, the MSME lending growth is 14.88 for the period. So strategic mix, there are 2 important things. One is the retail to bulk deposit, which is 75-25. So we are striving for that and the ramp to corporate lending at 55 is to 45. So in the same way when we say ramp 55, we tend to increase it to 58% going forward so that the portfolio is diversified and there is a better retail because when retail comes, it comes along with the CASA and the other cross-selling the ancillary business, the other benefits. So while the corporate credit, similarly, wherever, why I'm saying that it is from 45, we would like reduce because there are certain STS which are below like our benchmarks. So probably with that actually, we are shifting from lower to higher yielding while maintaining the same asset quality. So with this, I conclude my opening remarks and the entire senior management team of the bank is with you post the result, and you can have the question-and-answer session with us, please.

[Operator Instructions] The first question is from the line of Jai Prakash Mundhra from ICICI Securities.

Yes. Sir, first, congratulations on your new assignment here at Union Bank. Sir, I wanted to check if you have had time to review the bank's portfolio to provide some insights about the bank's growth trajectory? Union Bank has been behind the system loan growth for 1, 2 quarters, if not more. If you can diagnose -- I mean, we have charted a trajectory wherein we are focusing more on profitability, but sacrificing loan growth, maybe corporate loan growth. So where are we? I mean, and how soon can we reach system level growth? That is my question number one, sir.

Yes. I think the -- if you see the team before even I have taken charge has worked well on the entire issues. So though if we see that the growth is muted somewhere, I will agree with that on the deposit, but then it is very clear in the opening remarks that almost 21.85 of the bulk deposit we have cautiously shelved out. So it was a basically trade-off between the margins and the profitability and the business and the team has done well. Now coming to the going forward, so let me share with you that the -- on the basis of CASA, the team, which we are looking at to increase by 1, 1.5 percentage points somewhere going forward and coupled with the retail term deposits rather than the bulk deposit. So we'd like to maintain the CD ratio of between 78.5% to 80% levels. And we have analyzed the book as well whenever we speak of the large corporate book or EBIT corporate or MSME or retail agriculture. So on the all side, that is the retail agriculture RAM, so that is the reason we are saying that we would like to move from 55% to 58% around so going forward. And also on the large corporate or the corporate -- the private spending, certainly, so we are having the concrete plans with us. So fine, the past 6 months, it was a bit sort of a muted growth. But going forward, you will see on both, we would -- as we are cautious about the margins, we'll continue and defend and continue for that sort of NIM. And also, we would like to -- the growth, if we say the GDP is around -- moving around 6.7 to 6.8, so certainly, we would like to have around 9% to 10% of the growth on both the asset and liability side. So we have that aspiration, and we'll continue for moving towards that as we go forward from quarter to quarter.

Sir, I wanted to check by when Union Bank can be similar to system loan growth? If you have had the opportunity to review the bank's portfolio and strategic priorities? Of course, there is a trade-off as of now between growth and margins, but if you can provide some insights as to by when Union Bank can be similar to system loan growth?

See, going forward, you will see that the system level, we will be at par with the industry. But now since past 6 months has gone, what I am saying is on a cumulative basis. So going forward, you will see that we will be like at the system level, which growth is there, you will see the similar in bank. So I have -- we have gone actually in the opening remarks and also when the reply to your queries that to a granular level that when we are saying about the sustainable growth from which sectors it is going to come that is what we have gone. But on a broader basis, what you are seeking, so quarter-to-quarter, we will be moving with the same as in the industry. So only we were saying cumulative basis for March '26.

Okay. So just to clarify, sir, you are saying that right now, we are 6% loan growth, system is 11%. By March 2026, you would be able to catch up with system or every quarter, you will be growing more or less similar with system on a Q-o-Q basis, and hence, the conversions will happen at some point of time?

Very true. As you said, but we are aspiring even better than system level for quarter-to-quarter here onwards.

Okay. Understood. Okay. So the March '26, what was that number? So you said by March '26, every quarter, it will be similar or higher than system and the convergence may happen as and when it comes, right? There is no hard and fast deadline for March '26? Or you think by March '26, you can become like 10%, 12% -- 11%, 12% loan growth bank?

I would say because if you take -- that is why I used that annual cumulative basis, if you take, then it would require a much, much higher growth to build that to maintain the 11% to 12% for the whole year. But here onwards, you will see the system level growth, which is happening in the bank also. That is we'll be going ahead. But we are aspiring better than that so that it is not converging as usual, but we would like to expedite it converges a bit earlier.

Sir is talking about the sequential growth Q-on-Q. And gradually, we will try to achieve the year-on-year also.

Right. Understood. And secondly, sir, on your cost of deposit and yield on advances, it looks like there is a bit -- there is a high mismatch in the sense that your strategy says that you are cutting down bulk, but your cost of deposit is only down 5 basis points, which is the lowest. It was even higher in Q1. You are saying that we are not -- we are focusing on RAM, but your yield on advances has gone down 16 basis points quarter-on-quarter. So somehow what -- your strategy and the actual numbers are very different?

Yes. Actually, as you said, I think you have said perfectly. So when I said that the strategy and if you see that 21.85 bulk deposits we have shelved off or reduced, see, it doesn't happen in the month of, say, July. It would have happened in the month of something in the more, so in the month of August and September. Impact is yet to come. So generally, whenever you adopt any strategy, so I think you will see at least that 21.85, the full impact you will see in this quarter, point number one. Point number two, when we have taken a strategy and shifting from bulk deposit to the CASA as well as to retail term deposit, then again, it will continue to some quarters; still, it is a balancing between the book. Now coming to the loan book, there are 2 things. One is the loan book, I'm seeing on the asset side, deployment side of the fund. So one is on the treasury side, another is on the loan book side. So then similarly, loan book, you will see there are certain portions which are at very low yielding. That is why you are seeing that a steep -- there is a reduction in the yield of advances. And the second is if you take a yield on funds also, which is on the treasury side. So again, there is -- we have a plan to move a certain portion from the treasury to the loan book. So certainly, the yield which is there in treasury and the yield which is there in the advances side has a good difference and that is why we are very much confident that our NIM will be protected, and we will be trying to take it forward from here, keeping in view what the scenario emerges as far as the repo is concerned.

Understood, sir. And last question, sir, is on provisioning. So there is a INR 880 crores of standard assets provisioning. And I think in the BSE notes to account, it says some INR 130 crores of prudent provisioning. If you can elaborate a bit more here, is this ECL provisioning? Is this SMA provisioning? I mean, what is the nature of the standard assets provision?

Yes. The notes to account, which I mentioned is the INR 133 crores, Jai, this is Avinash Prabhu, is to do on a 6-monthly basis because last year also, if you recollect, we had taken some standardized risk provisioning. As far as the INR 800 crores that you're referring to, yes, we have taken some standardized risk provisioning, on 2 counts, one is also start moving towards reducing further the impact of ECL. And two is on some names, we felt that it is prudential to take some provisions at this stage on a conservative basis. So that's the reason why you see a provision for standard assets in this quarter.

[Operator Instructions] We'll take the next question from the line of Mahrukh Adajania from Nuvama.

Congratulations on your appointment. Sir, I have a couple of questions. My first question is on the upgradation. So there is a bulky upgrade this quarter, is it from any lumpy account and is there a provisioning reversal associated with it? That was my first question, sir. And then I have a few more questions.

There is one account upgradation has happened, that's a reasonably sizable amount. And remaining is the overall upgradation that has happened in small ticket. But overall recovery, we are almost in line with the guidance.

Okay. But could you quantify the amount of the account?

Close to INR 600 crores.

Okay. And an equal amount of provisioning would have been reversed?

Yes, that's right. Yes.

Okay. So that is the reversal in the provisioning. All right. And sir, could you at all quantify how much is the recovery interest in the total interest income, like you always do? Is there anything more or less compared to the previous quarter?

A similar trend is being maintained.

Sorry?

A similar trend as it was happening in the previous quarters.

Mahrukh, this is in line with the previous quarter. So roughly, it's about INR 400 crores to INR 500 crores every quarter. So that's the number in this quarter as well.

Got it. Makes sense. And just my last question, probably Jai also asked that. So a lot of -- a lot of banks are seeing 20%, 30% deposit repricing benefit every quarter, but for you, the deposit repricing benefit is lower in Q2 also compared to Q1. So will there be an acceleration in the second half? Is that the way your deposits are structured? Or do we assume that the bulk of the repricing is already over?

Yes. See, that is the -- I think the first -- Mr. Jai Prakash, which -- he had a similar thing query on that. So the deposit which you are asking, which we have done 21.85 were shelved off. So basically, it is spread over from July to September. Moreover in August and September, its full impact is yet to come. So that's the reason you are seeing that our cost of deposit reduction is not that much. But yield on advances, the reduction is a bit steep. So I think that was the reason. Now you will see more impact and it will be more sort of wherever we will be reducing the bulk deposit.

But as I said, I will add to that. Actually, if you see the absolute number on the interest and deposits, it has come down by INR 430 crores. So slightly, there is a denominator effect also because we have not taken an additional deposit. Deposit has come down. That is why you are finding only 3 basis point reduction in -- or 6 basis point reduction in cost of deposit, but actually, it is slightly more.

Got it. And sir, if at all, you can quantify anything or give us any color on the transition to ECL. I know it's a draft right now, but any impact on the back or the existing book? But more importantly, any rough estimate on what the run rate of credit cost will be post implementation of ECL because that's important, right? You will have a bigger SMA book, and that will have Stage 2 -- that will need Stage 2 provisions. So what will be the run rate of credit cost post ECL implementation?

Yes. So ECL is not new. In fact, we have been doing ECL calculation for last almost 2.5 years. Every half year, we have been reporting to RBI also. We have also seen impact of new guidelines, and it is a little bit of changes are there compared to what we have been doing. In terms of system capability and all other things, it is already in place. Numbers, we are aware of the numbers and numbers are not really significant. If you look at the draft guideline, it allows us to spread this impact in next 5 years. But we are in a position to spread the impact in much lower number of years, so that we will take a call. And this is a draft guideline, so we have not disclosed the number as such. But numbers, we have been calculating on a regular basis, and we have been making plans to take additional provision as and when required.

Got it. But just in terms of run rate, so say if ECL was already on right now, would your credit cost for the quarter be substantially different?

Yes, it is almost at similar level, not substantially different.

The next question is from the line of Dixit Doshi from Whitestone Financial Advisors Private Limited.

So if you can elaborate on the NIM. So we are at 2.67% now. So how do you see it from Q3 onwards with already the rate cut must have been passed on. So by year-end, what kind of improvement we are expecting?

See, there is a, I think, 9 basis point decrease on the sequential basis in the NIM. But if you observe from March to June quarter and June to September quarter, the sequential decline is now coming down. And if you recall, we had also guided that given the 100 basis point rate cut, maybe up to September quarter, there will be a decline in the NIM and post that, perhaps we should be able to recover. So at this stage, if you assume that there is no further rate cut, then perhaps we are close to the bottom and maybe Q3 onwards, you should be able to see the NIM kind of remaining stable to improving.

The impact of the CR rate cut will also start playing out because that has started towards the end of September. So you'll see the NIM gradually increasing, so kind of stabilizing in the December quarter and then improving further. This is, of course, subject to no further cuts from the RBI -- rate cuts from the RBI. We'll obviously have to reevaluate the numbers in case there is a rate cut.

Okay. And my second question is regarding the PSLC. So I think this year, we won't be having any PSLC income, but will it come back from next year onwards or it will not?

So this year, we have not done the PSLC sale. But as of now, we are meeting the priority sector targets and sub targets. And the objective is to build on a good buffer so that maybe towards the third or fourth quarter of this year or maybe definitely the next year, we should be able to have a sufficient buffer in the priority sector to kind of gain from the PSLC sale.

Okay. So from next year onwards, something can come, maybe not at the magnitude what we used to do?

Yes, yes. I think whatever we have done in the last financial year, at least that kind of quantum would be possible from the next year.

The next question is from the line of Ashlesh Sonje from Kotak Securities.

A few questions from my side. Firstly, I missed your response to the question around creation of standard asset provisions. So if you can elaborate the reason for adding those provisions further in this quarter as well? Secondly, if you can elaborate on the composition of the incremental loan growth that you intend to build, whether retail, agri, MSME, what is the expected growth in those segments? And if you can also share for us to understand the trajectory of cost of deposits better, if you can share what was the cost of term deposits this quarter and last quarter?

Yes, Ashlesh, what -- thing is that see, normally, you can understand that standard asset provisioning we used to do. The accounts are still standard and doing very well also. But because of certain regulatory guidelines and prudent measures, like last time also, we had done it; this time also, we have been doing it on a very conservative basis, we have already done that. This is on a continuous basis. After watching the account performance, again, we may take a call on that. But presently, we feel that it can be -- these accounts, we can make a standard account provisioning, which has been done on that. The second one?

Yes. And Ashlesh, this will also help us in terms of building up towards ECL. So that's the reasoning behind taking that provision in the current quarter.

Next 2 questions is?

On the loan growth composition that you expect going forward?

As MD sir in the opening remarks also told that presently because of the margin pressure, we will be more towards on the RAM sector, which will be going now -- it is around 57, we will be even crossing 58, 59. If at all corporate sector, if there is a good asset at a good pricing comes, certainly, we are there to take that.

Understood, sir. Sir, and lastly, if you can share the cost of term deposits this quarter and previous quarter for us to understand the trend over there?

Separately, I think we have to provide. We will communicate to you one-to-one basis.

The next question is from the line of Sushil Choksey from Indus Equity Advisors.

Sir, congratulations on your appointment and good luck for the years to come. Sir, your rich experience, be it Union Bank for over 2 decades, Bank of Maharashtra along with your ex colleagues and current colleagues at -- how would you reenergize the bank from a perspective, which is the most key essential part is deposit franchisee and the touch points of all the unionites and the Union Bank future business where RAM is concerned or corporate is concerned?

Yes, I think a very valid point at the very valid time you have raised this. So thank you for your best wishes. Now there are 2 things which you have raised. One is on the energizing maybe on the staff side, soft side of the organization and the another one which you have raised is on the deposit franchisee, which the bank typically has in its touch points. So on the first, let me share with you because in my entire career of banking that has seen certainly these 2 banks, but then the others also in being in the industry for so long, I always believe that the unionites, which is the staff of the Union Bank, which is around 78,000, are really one of the best in the industry. The second one I have seen why I'm saying this on whether on the skill set or the patience or the resilience and comeback, and responsive to, I would say, the demand of the time. I would not say any corporate call or I would not say any specific. But then the way in which for ages now you must be seeing, we'll be very soon celebrating 107th Foundation Day. So this is what -- my tenure is not that long, 107, but then the history says that the staff of the bank are really wonderful and that is the reason if you see in the month of October as well, even in September, so I think they have done -- the growth is muted only because of the cautious decision of shelving out the high-cost deposit of INR 21.85 crores -- 21.85 percentage points. And similarly, there is certain portfolio which has moved from low-yielding advances that is short-term loans to slightly better ones. So I think the team, which I have seen from the day 1 and my earlier also for me, since you have asked that side that I'm basically from this bank and I'm back to the bank, so for me, it is like the home coming, it is [Foreign Language] for any lady like that. So I do feel that it is a strength and asset for the bank of this staff. And coming to the deposit franchise, yes, there are certain pockets which are actually the good yielding sort of the deposit base for the bank, and that is the reason that if you see the last 3 to 6 months, the -- though the 21.85% of the bulk deposit is reduced, but then the CASA as well as the retail term deposit has replaced it well. So it is not like as such any degrowth or very substantial reduction, but the bank has poised. So I am very sure that going forward, you will see like the first query when Mr. Mundhra -- Jai Prakash Mundhraji asked on the business growth, so he was very like -- very keen in detail on the first half and the second half, and we all as a team have replied to it. So I think both the points which you have taken is going to certainly yield as a system level growth in this bank also. And you will see because the things are very much in place. And IT is one of the things which enables the bank. So in IT also, you must be seeing the bank is a lot many -- gained advantage when the bank is getting so many awards and acknowledgments across industry. And the only thing is that we are going to capitalize it hugely on the customer service and staff ease of doing business. So certainly, anything which culminates into business is all these things only.

[indiscernible] rich experience led by you along with Mr. Nitesh Ranjan, Mr. Rudra and Ramasubramanian cumulatively for the top management team to drive the entire bank to a betterment. Knowing the bank from listing day in the capital markets, the vibrant visibility and how viable the franchise compared to peers where you go, that is the only question which I was asking on an accelerated basis. You have answered most of my questions when Jai and Mahrukh have questioned you. I'm happy to hear all the positivities. Let's look for betterment. Congratulations and best wishes.

Thank you.

The next question is from the line of CA Dr. Ashok Ajmera from Ajcon Global.

Asheesh, sir, very rich compliments and congratulations to you, sir, for having come back to Union Bank as the MD and CEO. And my -- basically, most of these questions have already been answered in the detailed discussion right from Jai to Sushil. But I would also emphasize on that only, sir, your rich experience of this bank as well as the wonders which you have done in Bank of Maharashtra. Now looking at our condition today, what we were 6 quarters back in this bank, we are only 3% or 4% for last 6 quarter growth if you take right from Q1 of '25 of INR 21,08,000 crore business to INR 22,09,000 crore. That is only 4.8% in last 6 quarters. So sir, now with you having come back to Union Bank and now as the MD and CEO, do we expect that in your tenure of 3 years, we will be a INR 31 lakh crores, INR 32 lakh crore business bank, number one, which you already shared that accelerated growth? But to be more specific, for reaching this kind of growth again to the system growth of 12%, 14% -- 13%, 14%, we will have to look at not only retail, sir, which is already 23% growing this thing, MSME is also reasonably, I think the time has come when we'll have to start with mid-corporate and large corporate also to accelerate this credit. And I want to hear your plans for that. Overall, how do we increase the total credit growth because for the bank to remain in good profits, ultimately, the credit is the main business of the bank. So advances [Technical Difficulty].

I'm sorry to interrupt, Mr. Ajmera. Please hold the line while we reconnect the management. The line has just got disconnected. Give me a moment, please. Ladies and gentlemen, thank you for patiently holding. I would request Mr. Ajmera to please continue.

Before the line got disconnected, how far you have listened to me. But I think I was on our business and credit growth and looking at you, what do we expect now? How do we go about it, sir?

Okay. Thank you. Thank you so much for your compliments and wishes. So let me tell you coming to the bank. See, there are important thing to -- when you think of a business at a system level or maybe better than system level. See, 2, 3 things are very much required. The -- one is the people, another is the technology and third is the required structures. So I'm very confident and happy to share that these 3 things are already there as there was a question from Mr. Sushilji and the earlier -- the officials. So this structure is already in the -- so the base is ready. Now coming to the third point that when the Mr. Mundhra and Madam Mahrukh, they asked about the growth. So we clearly told that the system level growth and at least better than that we are aspiring. So certainly, we will go by it, and we are going for that. Now coming to the strategy or maybe the past experiences, as you have pointed out. So I believe that, yes, the bank has already discussed, I think, last 20, 25 days, internally, we have done the root cause you say or maybe a top-down approach, maybe a bottom-up approach, all sort of because we had a field conference also for almost 2 days wherein all our regional offices, general offices, verticals, we all have discussed about the same. So I believe everything is in place, and we are going to do it. But then specifically, as you said, what would be the key differentiators? So certainly, we are working upon some of the products which can be niche for the bank. The second one is that we are poised for our Foundation Day, which is going to be held soon. And we are again thinking of launching some of the digital initiatives. And in that one will be like related to the mobile banking for business people. So like that, some versions of products in the -- related to the CASA. So these are the things. And then fourth is most importantly, you can have product, but then strategy to implement. So internally, we -- last 20 days, the thought process which has evolved is back to basics and the core to implementation, core to execution. So certainly, we will be having the geography level thought process strategy and then whether it is in retail, which sector, which specific area, which geography, which part of the salaried people, so already that is almost final. As you said, for 3 years, so I'm not going to the figures which you have said. But yes, that we are working upon a document. Right now, we are taking 2, 3 months' time and 1 year, 3 year, 5 years, along with our subsidiaries, along with our joint ventures, we are building the strategy document, which will be the rolling one, which will be the reviewed and mid-course correction taken every quarter or every half year. So certainly, the bank is poised with a lot of positivity going forward. And I'm very sure that you will see the same sort of, as you said, which was some 6 to 8 quarters before. So I think it will be in the same range and maybe better than that. This is, I think, we expect on those lines.

Thanks for such a reassuring statement, sir. Sir, my second one is something -- some color on the treasury because the treasuries generally are under pressure in every bank because of the rate movements. But still in our case, in the other income, our treasury profit has gone down to INR 192 crores from INR 961 crores in the last quarter. Similarly, there is a depreciation also, which has also gone up by about -- almost about INR 450 crores, INR 642 crores from INR 192 crores. So going forward, how do we see the treasury movement, like apart from the changes due to the rates? Now since the better time will be there in the second half for the treasury with further 125 basis rate cut expected, can you give some light -- can you throw some light on the treasury going forward with the income as well as the income -- which comes in the other income?

[ Abhijith ], here. So as you have mentioned that it all depends upon the -- how the -- what kind of regulator gives the comfort to us. But as you have seen that last -- what RBI has said in the last [ NPC ] also, there is a dovish lookout. So there is always a scope that there would be an expectation of rate cuts, that we are also believing in that. So these things are there, see the CRR cuts, the fully CRR cuts benefit will be available in the current month and this quarter. So these are the good aspects, which will be improving the liquidity in the system. And also what we feel that the public spending will also improve in the current quarter, which will also improve the liquidity in the system. So putting all this put together, we feel that there would be a good market condition in the current quarter, in the coming quarter. So the interest rates is benign, so there is no issue on the interest rate part. So I think there would be a better quarter coming in this December and March. So the profit that we have shown now -- so may not be the profit that we have seen last quarter, June being there is OMO and switch auction where from we have got a very good income. But the level of profits will maintain from another 2 quarters.

Sir, there is a lot of opportunities in the IPOs and the equity also nowadays. I think you must be making some good money on that also, sir?

So we are actually putting up in most of the IPOs where we feel that this company is going to do well, and we can get a good listing gain in this company. So we are there, sir.

And sir, one question on the specific question on some data, this thing, that other operating expenses in this quarter has gone up by INR 342 crores from INR 2,743 crores to INR 3,085 crores. I couldn't find time to get into details. So what could be this INR 342 crores extra in the other operating expenses, sir?

See, Ajmeraji, I think what we -- if you just look at it on a full year basis, right, our total operating expenses last year were about INR 26,000 crores. And if you look at -- just extrapolate the 6 months total operating expenses on a full year basis, you'll see that the increase is only about 5.5%. So it is in line with the trend. It is just that there were -- the expenses we booked in the second half of last year were on the higher side as compared to the first half. So I think we're trending in line with our plans. And so therefore, we are comfortable in terms of where the operating expenses are currently panning out.

Okay, sir. Point well taken, sir. If I'm -- permit -- can I ask something on this? Our 0 SMA numbers, which have gone up substantially from the last quarter, is there any specific reason or they have been regularized on time? Because there is not much pressure on the SMA-1 and 2 as compared to the last quarter, except the SMA-0. So is there any particular region or particular account which was off for a few days?

No, these are getting regularized on -- so it's not a matter of concern. We are very comfortable in that number. Yes, there has been an increase in the current quarter, but it's under control.

All right, sir. All the best to you. And we'll see the bank again reaching to the past glories.

Thank you. Thank you, so much.

Ladies and gentlemen, due to time constraint, we will take one last question for today, which is from the line of [ Rakesh Kumar ] from Valentis Advisors.

Congratulations on the appointment. Sir, just one question and related to that also, there is one question. So just on this investment depreciation reversal that we have, so has it come from HTM book?

It's on our trading book.

So the number is quite sizable, so that is what I was...

This includes the gains that we had from NSDL. As you're aware, we had a holding there.

Okay. And in the HTM book, like there is a drop in the duration. So have we sold anything from there apart from NSDL or...

No.

So HTM, we have not sold anything. So means that is mostly it is because of one stock that we have sold, some part we have sold. So there is no much selling maybe because of the redemption that might have happened in between.

Okay. The duration change is quite sizable in such a large book. So it was a bit puzzling. I was not able to understand.

It was done from redemption.

Okay. And this sharp rise in this risk-weighted asset, is it coming from the credit risk weight or market risk weight?

It is coming from credit risk.

And which book like in which -- what kind of portfolio that we have added, which led to such a sharp rise as compared to credit growth number on a sequential basis, sir?

Some of the entities which are otherwise rated, but for our own exposure, those are not rated -- in rating, listed is not disclosed. So those -- at those places, we need to keep it unrated and that's right.

Ladies and gentlemen, as that was the last question for today, I would now like to hand the conference over to the management for closing comments. Thank you, and over to you, sir.

So thank you, madam, and thanks to all the officials of the investor community. Thanks for being with us and posing the queries you have. But then this is as per the ritual after the Board, we had a press meet and we uploaded the results and we had an investor meet. But then going forward, there will be a lot of engagement with each one of you. We will have physical one-to-one meetings and as we move forward. And the thing which we have assured and discussed with you today and we do have certain plans. And here also, when we are talking to you, the entire senior management team of the bank is sitting. So we already had a discussion and we are moving to our strategy document we'll be finalizing maybe in the next 2 months' time. But then the implementation is already in the stages. So you will be seeing going forward like the industry level sort of the growth and maybe a better sort of -- and going forward, since we are very cautious. And actually, if you see, as I said, 107, 107th Foundation Day, we will be celebrating on 11th of November. So typically, this bank has been a conservative side on the expenditure side also as far as the concern other than business. And the second one is on the margin side. So we'll continue on the both side. And going forward, you will see much contained the cost to income and the other parameters. And certainly, the bank is poised and the team is poised for a good growth, and we will be requiring your help and support. And certainly, we'll have more engagement with you. Thanks to you, all of you for being connected to us for this investor meet and this presentation. Thank you. Thank you so much.

Thank you, members of the management. On behalf of Union Bank of India, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.