Bank Of India

Good evening Ladies & Gentleman, Good evening once again a very warm welcome for today’s analyst meet of Bank of India’s Q4 results for FY26 which is being conducted in hybrid mode being attended physically as well as virtually by our analyst from Pan India.

We have with us on dais Shri Rajneesh Karnatak ji our MD & CEO sir, joining him on the dais are our Executive Directors, Shri P R Rajagopal sir, Shri Subrat Kumar sir, Shri Rajiv Mishra sir & Shri Pramod Kumar Dwibedi sir. I request our MD & CEO sir to kindly address this gathering to begin with, over to you sir.

Thank you Madam. So good evening, everyone. Thank you for joining us today on the eve of publication of our Bank’s Financial Results for FY 2025-26.

This year has been another significant milestone in our Bank’s Journey marked by resilient financial performance, strengthened asset quality, robust business growth and continued commitment towards nation building.

During the year, the Bank recorded healthy growth across key parameters including deposits, advances, operating profit, and digital transactions. Our focus remained on calibrated credit growth with emphasis on quality underwriting, sectoral diversification and responsible lending practices.

1. Institutional Initiatives: o The Bank is establishing Zonal Deposit Centres at all Zonal Offices to accelerate CASA accretion and its market share. This initiative is designed to ensure long-term retail stability and foster deeper, more meaningful customer relationships. o The Bank integrated the UMANG App with its BOI OMNI NEO platform, creating one stop digital solution for a wide range of Central and State Government services. This strategic partnership with the National e- Governance Division allows our customers to conveniently access essential public services through a streamlined redirection model directly within our banking app. o The Bank has launched the Bharat Connect Biller Operating Services, enabling corporate customers to on board themselves as billers and offer their customers diverse digital payment options. This initiative enhances digital reach and streamlines the collection process, ensuring a more convenient and efficient payment experience for all stakeholders.

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o The Bank has established dedicated MSME Desk Helplines to address borrowers’ concerns directly. This initiative facilitates structured, regular interaction, ensuring a transparent and responsive grievance redresses mechanism for our MSME partners.

2. Business: o Global business grew by 14.57% YoY from Rs. 14.83 lakh crore in Mar’25 to Rs. 16.98 lakh crore in Mar’26 with an incremental growth of Rs. 2.16 lakh crore. o Global Deposits increased by 13.56% YoY from Rs. 8.17 lakh crore in Mar’25 to Rs. 9.27 lakh crore in Mar’26 with incremental growth of Rs. 1.11 lakh crore. o Domestic Deposits increased by 14.30% YoY from Rs.7.00 lakh crore in Mar’25 to Rs.8.00 lakh crore in Mar’26.

o CASA increased YoY from Rs.2.80 lakh crore in Mar’25 to Rs.3.01 lakh crore with incremental growth of Rs. 20,449 crore in Mar’26 and CASA ratio stood at 37.64%. o Global Gross Advances increased by 15.82% YoY from Rs. 6.66 lakh crore in Mar’25 to Rs. 7.71 lakh crore in Mar’26 with an incremental growth of Rs. 1.05 lakh crore. o Domestic Gross Advances increased by 16.10% YoY from Rs. 5.64 lakh crore in Mar’25 to Rs. 6.54 lakh crore in Mar’26. o RAM advances increased by 19.11% YoY from Rs.3.23 lakh crore to Rs.3.84 lakh crore in Mar’26 constituting 58.74% of Advances in Mar’26.

3. Profitability & Asset Quality: o Operating Profit improved by 4% YoY and stood at Rs. 17,049 crore for FY26 against Rs. 16,412 crores in FY25 and for Q4FY26 stood at Rs. 5,026 crore witnessing a YoY growth of 3%.

o Net Profit increased by 14% YoY and stood at Rs. 10,527 crore for FY26 against Rs. 9,219 crore in FY25 and for Q4FY26 stood at Rs. 3,016 crore witnessing a YoY growth of 15%.

o NII increased by 3% YoY and stood at Rs. 25,172 crore for FY26 against Rs. 24,394 crore in FY25 and for Q4FY26 stood at Rs. 6,730 crore against Rs. 6,063 crore for Q4FY25.

o Non-Interest Income increased by 10% YoY and stood at Rs.9,874 crore for FY26 against Rs.8,994 crore in FY25.

o Global NIM stood at 2.52% in FY26 against 2.82% in FY25. o Slippage ratio stood at 0.83% in FY26 against 1.36% in FY25. o Credit Cost improved to 0.48% in FY26 against 0.76% in FY25.

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o There has been improvement in asset quality with reduction in both Gross NPA ratio and Net NPA ratio. Gross NPA ratio improved by 129 bps YOY to 1.98% for FY26. Net NPA ratio improved by 26 bps YoY to 0.56% for FY26.

o Provision Coverage Ratio (PCR) improved to 93.57% in Mar26 against 92.39% in Mar25.

o As on 31.03.2026, Bank’s CRAR has improved to 18.01% from 17.77% as on 31.03.2025.

In alignment with prevailing global economic conditions, the guidance for global advances growth will be around 15-16%, and global deposit growth around 13-14% for FY27.

The Bank’s primary focus will be on strengthening its deposit franchise with a higher share of low-cost funds, while driving growth in high yielding advances to support margins. Additionally, focused efforts on maintaining a balanced Credit-Deposit (CD) ratio, and enhancing Return on Assets (ROA) will drive stronger financial performance.

Investment in digital Infrastructure and cybersecurity will continue to enhance efficiency and resilience. Together, these actions will enable measured expansion of the business and reinforce long term value creation for all stakeholders.

The detailed Annual report being released will provide comprehensive insight into the Banks financial performance, strategic direction, governance practices and future outlook of the bank

I would like to thank you all for your continued support. The floor is now open for discussion and Q & A.Thank you all for coming here and Namashkar.

Thank you very much sir. Before we proceed, please raise your hands. If you would like to ask a question, a little improvisation here that if you could stand a little, it will be easier for our volunteers can see you so that the mics can be passed on in an orderly fashion.

Again, repeating with it's an earnest request that kindly put only two questions at a time so that maximum people can raise their questions, because there are already a lot of questions coming online. We'll come back to you for additional questions for sure.

Thank you for your cooperation. And for those who have joined us virtually, you will notice a small icon on your screen, a hand sign. Once you press this, it'll alert us that you would like to ask a question. We'll go around one by one. The analyst asking the question will be unmuted. You will get a notification on your screen to unmute yourself, kindly click on unmute and identify yourself and your organization before asking the question. For I have already shared the WhatsApp number earlier, so I'm sure questions are already on the way. So let us begin, yes. Who's going to be the 1st one? Nobody from here.

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So let us take from Mr. Ajmera, he is online because I got a text. Can you put him through? Mr. Ajmiraji.

Good evening and thanks for taking me. I don't have the question. I have major observations and some compliments. So my compliments to the entire team of Bank of India for yet another good quarter of very good results, even good business growth, good profitability, very good control on the asset quality, good control on the slippages and overall fantastic quarter and a year. Compliments for the same. I have just a main basic question which is coming to the mind. Is that the ECL guidelines are already announced now the final guidelines. So how our Bank is prepared to meet the provisioning for the same starting from 1st April 2027? Are we equipped fully?

My second question is on the ECLG 5.0, which has been announced by the government of India two days back only. I think with that, a lot of I mean the more room will open for the credit growth. So how much growth are you expecting? I mean, have you done the analysis of the customer who are eligible for this emergency credit line and how much of that are you expecting to materialize the credit growth sir?

So as far as the impact is concerned, we do not expect much impact on us and I can assure you that with the kind of asset quality and the SMA numbers that we are having and the declining trend in the SMA numbers, the transition for Bank of India to the ECL guidelines of RBI will be smooth. As you rightly said, it is for five years, starting from 1st April 27 to 31st March 2032 & the impact will be spread across the next five years. As per our calculation that we have done, the impact will be only 0.50 % p.a aggregating to total 2.50 % over the next five years. So to just to give you a sense on that, we have a net profit presently Rs. 10,000 crore which is improving the CRAR and CET -1 of the Bank and even if we remove the net dividend also of around Rs.1800 to 2000 crores that we have to pay, still there accretion to Bank’s net worth and CRAR remains substantial Rs 8,000 crores. So there will not be much of impact on the CRAR and the overall impact per annum will be only 0.5 %, which we have sufficient cushion in our net worth, the CRAR and the CET-1 one to absorb the same. Presently as I told you that our CRAR is 18.01 % as against the RBI’s mandated 11.5 %.

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So as regard the ECLGS is concerned 5.0 announced by the government for a total outlay of around 2.55 lakh crores. As you are aware, it is for both MSME and non MSME borrowers. MSME borrowers are having a credit guarantee of 100% and non MSME borrowers are having guarantee of 90 %. The pay-out is five years for the MSME and seven years for the airline sector. So, our teams have already started doing the calculations and identifying the list of MSME borrowers. We have 19 Emerging Corporate branches and the large corporate team have also already started identifying the accounts which will be eligible for the working capital. So, as you are aware, borrowers are eligible for ECLGS funding upto 20% of their peak of Q4. So, we have done calculation in that and we expect to fund around 10-12 thousand crores under the ECLGS scheme.

Okay

So the next process will be going to our Board for approval of this scheme for our Bank and after which it will immediately get rolled out in the branches & we expect that lot of MSME borrowers and also allied sector in agriculture and some of the corporates and mid corporates will be immediately coming and availing this facility in this financial year.

Sir, First of all congratulations on a good set of numbers. Nishit Shah over here from ViSolitech Investment advisors. My question is regarding your retail deposits. Is that reliance on Bank deposit has increased? No doubt there has been a very tight competition when it comes to Retail deposits. RBI also said that Bank’s need to innovate and I think you are the 1st one to start with No minimum balance scheme, right? I think it has to be more pronounced because every other bank is doing and we are having a product which is innovative. That is one suggestion and what is the comfortable CD ratio because I think your asset growth is much higher than your liabilities growth. That would be my first question.

Yeah. So thank you. So as far as our retail franchise is concerned, so if you see in our presentation also, our CASA percentage is 37 % and retail deposits at around 44%.

Thus, our retail franchise of the domestic resources side is around 81-82%. So the remaining is the bulk term deposits, as you rightly said that there has been a structural change which has happened as far as the deposit is concerned and lot of funds are flowing out of the banking system into other asset class like equity, like mutual fund, like gold, like real estate and others. So there has been a lot of competition among the Banks how to fund this credit growth which is coming.

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So we have taken a lot of initiatives and made the strategies to improve our retail term deposits and particularly the CASA numbers. We have already launched our project “UDAAN”, under which we are closely monitoring branch-level targets relating to Savings Accounts, Current Accounts, and retail term deposits. The Head Office Resource department, along with zonal offices and FGM offices, is actively engaged in monitoring and conducting regular reviews. That is number one.

Second is that we have 69 zonal offices and 13 FGM offices, so there we have posted, one Resource Manager, who will take care of the resources side in the Bank, so 82 RMs have been posted for this kind of work. Apart from that, the new initiative as I said in my speech is that we have also started the Zonal Deposit Centre, which we call the ZDC.

The one officer along with this team will be posted and they will be monitoring the branches and also calling out to the customers and moving out in the market to garner new CASA and the retail term deposit. That is another initiative we have taken. We have also identified nearly 1,000 HNI branches across the country. We have 5,500 branches across country.

What are HNI branches and CD ratio you propose to maintain?

These HNI branches are which have majority of the accounts being saving accounts which have average quarterly balance of more than Rs.5,00,000. Then we have our subsidiary which we call the BOI Service Ltd, where we have started Campaign “Feet on street” for sale of products of asset side. Now, we have already started this campaign for liability side also, these are the feet on the street who will be going in the market for opening of saving account, current account and retail term deposit. Apart from that, we will be building a new sales vertical in the Bank which will be headed by a General Manager from Head Office. A General Manager will be sitting only for sales and marketing from bottom at the branch level. So it will not only be for resources, the salesperson, they will also be selling the asset products and also the wealth management product. So basically we are creating vertical for the sales vertical in the Bank for the 1st time where the General Manager will be in charge for sales and marketing in the Bank for retail products, liability products, asset products, and the wealth management products which are there.

And then apart from that, we have already opened 200 new branches in FY 25, 200 branches were opened in this financial Year FY26 and another 200 plus branches will be opening in FY 27. So these 600 branches, the idea is to garner resources like CASA resources and retail term deposit on one side, Loan products like retail products on the other side and thirdly the wealth management products. So all these things taken together, all these strategies will help us in improving our franchise, our strong franchise that we have on CASA and retail term deposits so that we are able to reduce our cost of

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deposit. In that way, we are able to improve our margins in the long term. As far as your other question is concerned with respect to the CD ratio, so if you see the RBI guidelines which are there as far as the CD ratio is concerned, we have to put money in SLR and CRR. So, 78-79 % can be the ideal CD ratio which is there. If you see our CD ratio it is around 82-83 %, which is high because obviously there is a crunch of resources. We are having a higher CD ratio in order to optimize our resources and helping us in improving the overall business of the Bank and if you see our numbers more granularly on this slide, you will see that the more than 2 lac crore delta, which we have created on the deposits, total business side, the deposits have grown more than the advances on the YoY basis also. And if you see sequentially, the QoQ basis , there also we have grown more deposits than the advances. So we are very cognizant of the fact that whatever the acquisition of the advances which we do like we are giving a guidance of around 15 to 16 % of raising of advances. So we are very cognizant that majority of that advances raising will be happening through the raising of deposits, which is through our 5,500 branches.

Yes, thank you for the opportunity. Good evening sir, this is Namit Arora from IND Growth Capital. So I would like your assessment on any likely impact on credit quality given the recent geopolitical developments, because there may be some effect of let's say crude price or input costs or logistic disruptions, since you are a very large institution, would like your thoughts on any potential impact on credit quality?

Yeah, so the global headwinds which are there presently, so definitely it has some impact. See, we already are seeing that there has been a rise in crude prices say at $102 per barrel.

Number two, the interest rates are also rising. Another thing is that with the interest rate rising and crude hardening, there may be a chance that the inflation may also go up.

And there are certain rating agencies which are saying that the growth in the country, the GDP may also come down. So from a 7 % it has been said that it will now come down to 6.9%, RBI has also said that. With all these things happening, there are certain headwinds which are there and the supply chain is also disrupted both for the importers and the exporters and there has been a significant increase in the Baltic index which has happened by nearly 2x, 2.5x to 3x. So, but what we see from the media and other kind of things we feel that a solution will come out very shortly maybe by the end of this quarter and we'll be able to stabilized with this crisis. But if it does not and if it continues definitely there will be some headwinds. But one thing I can assure you is that this ECLGS scheme 5.0 which the government has announced, it has come in the right time and whatever the stress which may come into the MSME & Non MSME accounts, particularly in terms of working capital requirements because of the increase in supply

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chain, increasing the cost of their operations and other kinds of things that will be mitigated through this 20 % immediate relief which we are giving by way of the ECLGS.

So, whatever stress which may come that will get eased out through this ECLGS, but there are certain sectors definitely which is particularly exporters and the importers and also certain segments within the industry like you can say ceramics, pharmaceuticals, chemicals, which maybe feeling the heat of this geopolitical situation in the immediate term.

Thank you very much for your detailed thoughts and all the best to entire team.

Thank you very much sir. Choksey ji You would like to ask something, kindly pass on the mic.

Congratulations to team Bank of India for excellent performance. So I heard some of your initial comments about growth on deposits and advances. Can you elaborate some numbers on ROE, ROA, NIM, and your CD ratio? You've already indicated how to balance corporate & RAM Advances & the new initiative which you've taken for deposit mobilization through new zonal officers? How are these touch points looking? What kind of growth aspirations are being looked at? Because if that number moves from 37 to 41,42 in two years, the Bank may have a sizable impact on positivity. So this is the 1st question.

Thank you so much. As far as ROA is concerned, we have now touched in Q4 ROA of 1.01 %. So, we are above 1 % as far as the Q4 is concerned. However, our overall ROA for the year is 0.93 % and it is above the ROA of 0.90 % in March’ 25. Because of the net interest income issue, the ROA we could not improve to the desired number which you could have been, but definitely we have touched the ROA of 1.01 % in the Q4. As far as the guidance on the ROA is concerned for the whole year FY 27, we are giving a guidance that we'll be touching a number of 1 % for March 27. As far as the NIM is concerned, again, as I said in my opening speech that our global NIM is at 2.58 %, which has come down by nearly 30 basis point from 2.82 % in March 25. Having said that, I would like to clarify that as you are aware, we have a very strong international franchise & 14 % of our book is an international book where the NIM’s are quite compressed and it is in the range of 1.10 % to 1.30 %.

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Apart from that, we are strategizing in this year that we increase our CASA deposits through our project UDAAN where we have on-boarded one of the consultants to increase our retail term deposits so that we reduce our cost of deposits and through the MCLR and other kinds of initiative on the asset side, it will increase & improve our yield on advances so that we improve our net interest income. So, these are some of the things which we are planning to do.

Apart from that, we also wanted to reduce our fresh slippages. We have already reduced them to 5,500 crores if you see our presentation in the entire year and we want to further reduce it to 4,000 crores in this financial year. If we are able to do that, there will be more earning assets for the Bank which will help us increasing the net interest income and finally the net interest margins and overall profitability of the Bank will also increase. So these are the brief thoughts that I just wanted to share as far as the margins are concerned.

In current environment, how are you seeing growth specifically the visibility on pipeline led by, as India is transforming a lot of new sectors are emerging, whether it's renewable, data centre, warehouses, new roads, maybe a few more states are now being added after election for a lot of infrastructure expansion. At the same time, how do you see about a Balance between Corporate book and RAM. I understand that I'm sure you're targeting 60 and above on RAM, but what would be a visible number if we look one or two years beyond?

Yes, so as far as the RAM book is concerned, we are targeting a number of say around 62 %, the RAM book and 38 % the Corporate book. So that is for the strategy for the next three years for March 29. But having said that, let me clarify that it does not mean that we will not be growing our Corporate book so when we say that 62 % will be RAM book in FY 29 & 38% will be Corporate book, our advances will also be increasing and we are targeting advance of somewhere around 11 lacs crores as on March’ 29. This is the number through which the corporate advances will also be increasing simultaneously along with the RAM advances, that is one point. Second point is that we have drafted strong strategy in the emerging corporate credit branches that we have opened 19 branches through which we want to increase our corporate advances which are between

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Can we see domestic NIM of 3 %?

Yes, So we are saying that yes, we will have our NIM of somewhere around from present 2.52 % to somewhere around 2.70 to 2.75 % that we are guiding for March 27. Domestic NIM we are definitely targeting to get as close to 3 % as possible.

Thank you very much sir. So there's one online question which has come up from Mr.

Vansh Solanki from RSPN ventures. He says that, we have seen in many other PSU and private Banks result that due to G Sec Yield rising, they have increased their discount rate for actuarial valuation of employee liabilities, and thus there was a major decrease in employee expenses in Q4 in many PSU Banks, so have we also done the same, are we expecting any positive on this in Q1 results?

Yeah, so can we share any number presently? Do we have any number on that? Kumar do you have any number with you or we can answer it later, whatever you feel.

In Q4 we have not taken anything, but as far as Q1 is concerned, presently we don't have any number, we'll update later.

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Okay Mr. Vansh the updates will be given to you. Thank you. So there's one online person has raised his hand it is Mr. Niteen from Aurum Capital.

Yeah am I audible? Yeah. Thank you so much ma'am for the opportunity! 1st of all congratulations on good set of numbers considering the prevailing conditions and results from other PSU Banks. Now, the Bank really did a commendable job over here and especially on the provisioning and NPA front, also the ROA has gone past 1 % range that you mentioned, which was promised earlier also. Also the growth remained broad base, which is very healthy, so this is super overall. I have just two questions and I'll ask both together, otherwise ma'am will cut me short and may not give opportunity. The first one is we have an elevated provisioning versus Q3 from 605 crores provisioning to now 1,211 crore provisioning, so what has happened there? My second question is again related with the NPA only. So what is the status of recovery in state PSU and central PSU defaults that we reported earlier? Thank you.

So as far as the provisions are concerned, I can just share the numbers with you. Yeah, so as far as the quarter on quarter provisions are concerned, if you see our presentation, so for bad and doubtful debts, the provisions in fact from December quarter 605, they have gone up to 1,200 crores and for the standard assets they were minus at 29, it's a minus 221 because of the reversal of those provisions and provisions before tax, total 576, they have gone up to 990 crores. So, that is the provisions as far as the provisions is concerned. So, overall provisions, if you see for the year on year basis, for the bad and doubtful debts which is the NPA from 4,500 crores, it has come down to 3,300 crores, and as far as the non performing investment is concerned, so minus 282 was there in the last year and this year there is no impact, no provision on that account. And for the standard assets it is from 330 crores minus it has further got reduced by 290 crores. So not much of impact as far as the provision is concerned.

The next question is concerned with respect to the state and central PSUs impact is concerned. So there was only one central PSU which got NPA in the last financial year for which we have fully provisioned also, so there will be no impact on the profitability or provisioning as far as that central PSU is concerned. As far as some other PSUs are concerned, which are coming, if you see our slide on the SMA in the corporate book, in SMA zero, SMA one and two, there are three state PSUs are coming under the SMA category, they continue to move roll forward and roll backward during the quarter, but one thing we are confident that they are having cash flows with them and they will not be slipping into the NPA category and we are confident that we'll be able to protect the asset. They will continue to remain in the SMA category with respect to some challenges on the cash flow side.

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Thank you very much sir, Mr. Ajmera is still there? He wants to ask one more question.

Yes Mr. Ajmera ji, are you able to hear us?

Hello, Sir, I mean most of the questions have already been answered, I have just a couple of questions and some observations. Sir, the non interest income, every Bank is trying to increase because of this pressure on the NIM mean & because of the high cost of the deposit and fund raise. So going forward, what plans do we have to increase our non-interest income and a recovery from the written off account, which is a major source of a non interest income, the other income? What is our total written off book and how much are we expecting in the FY 27 to recover from that?

Yeah, Thank you. As far as the net interest income is concerned, if you see the annual P&L of the Bank, so we are having an interest income of around 75,000 crores and our interest expenses around 50,000 crores which leaves us a net interest income of around 25,000 crores. So, we have a clear strategy as far as the improvement of this net interest income is concerned and we are very cognizant of the fact that we have to increase this net interest income in order to improve our overall operating profit in the Bank.

So that the net interest margins also improve. So we have made a strategy as far as the interest income side is concerned, as I earlier said also that we want to increase our MCLR advances number one.

Number two, we want to increase our advances towards the Mid Corporate through our emerging corporate credit branches. We also want to increase our advances in the RAM book, retail, agriculture & MSME, where we feel the margins are much better. That is on the asset side. On the liability side, definitely we want to increase our CASA balances and also our retail term deposit balances out standings, where we feel that we'll be able to reduce our cost of deposits and on the asset side, we want to increase our retail advances. So both these strategies together, we are very confident that if we are able to increase our net interest income, in fact, we want to increase our interest income to such a level that the overall operating profit for the Bank improves. So that is one part & second part is with respect to the write off accounts. Yes, we are having a number as far as the write off book is concerned, we have done a recovery of nearly 2,500 crores in this year and this is a healthy number & in the financial year FY 26 & FY 27 also we will be trying to achieve the similar run rate of around 2,500 to 3,000 crores of recovery from these written off accounts.

Kindly introduce yourself.

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Yeah sir, my name is Ashok shah I’m from Eklavya Invesco Family Office Sir, this is regarding page number 42 of our presentation sir. We have some of the subsidiary to create other income source. So if I see that what we started DMAT services in the year 1996 with NSDL and 1999 with CDSL, but we have never taken. It is a serious business, so again as a broking, we have not started our broking business like the other PSUs and everything. So similarly in the insurance sector we just hold 27 %. So, we being a 120- year-old Bank, why we are lacking in this build because our PSU’s brothers has done very well and also private sector has taken a very aggressive lead in this matter and also doing a secured & creating other income portfolio which is very large. So what is the going forward over next five years, what is the plan in this set?

So as far as our subsidiaries and this wealth management income is concerned where we have a very clear strategy for the next five years and if you see the last three years also, as far as the income which is coming from the wealth management products of the Bank, every year the non-interest income has been growing for the Bank. So, I can assure you, if you see this slide only that you have mentioned that BOI merchant bankers, the merchant banking activity we are doing & there also we are scaling up the trading account opening with regard to DMAT account is concerned.

We already have two tie-ups with our partners, where we are offering three service in one accounts, which is a trading account, a saving account and also the DMAT account.

That is already we have started. Another important thing is with respect to our subsidiary BOI Shareholding Limited which we have now renamed it BOI Services Ltd , wherein we have started the feet on the street and they are now on boarding DSA’s which are coming from best of the private Banks and other public sector and we are selling our products through them. We have already started selling our loan products through that subsidiary and we have sold a loan book or the RAM book of nearly 7,500 crores through that subsidiary. This quarter we are starting the liability product under the project UDAAN, so feet on the street, they will be selling the liability's product, which is particularly CASA and retail term deposits, and also in the next quarter they will start selling the wealth management products. So that subsidiary also has been totally made active and live as far as we are concerned and we have a very strong and a very clear five-year plan for subsidiaries. Apart from that, as you rightly said that even though we are having only 26-27% in our life insurance subsidiary, but we are one of the key players for on boarding of the insurance, life insurance products through our branches and good growth is happening in the SUD life subsidiary as far as the sale of insurance is concerned.

Mutual fund subsidiary again let me just tell you and share with you the numbers. Three years ago the mutual fund AUM was somewhere around 3-4 thousand crores. Today, it is at around 14 to 15 thousand crores. That is the kind of growth the mutual fund AUM has taken place and it is already in public domain that we have already taken one of the consultants as for a process advisor and we want to have a partner over there,

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international partner or a domestic partner, good sales AUM partner for our mutual fund, and once that on boarding happens, so you will be seeing much more incremental growth happening as far as the mutual fund also is concerned. So, we have very clear strategy for the next five years as far as these wealth management products are concerned because we are very clear that apart from the net interest income, we have to have a very good growth as far as the non interest is concerned, only then we'll be able to show better operating profit and finally better net profit for the Bank.

Thank you very much sir. Can I take one online question and then I'll come to you? Sure, this gentleman is waiting since long. Mr. Siddharth R from Systematics.

Thank you for the opportunity. First congratulations to the whole team for a very fantastic quarter and also congratulations to Mr. Karnatak for an extension in this term. So first a clarity on the NIM when you say 2.75 and 3 % for domestic, is it the exit NIM that you have guiding?

And also what will it be driven by? Will it be driven by yield or non-advances or more by cost of deposits? This is first! Second is on your other income, what has driven the higher technically written off recoveries in this quarter sequentially we have got 1,600 crores and also what has driven the third party sales?

Third is on the credit cost, so this quarter we have taken higher provision. I understand we have utilized maybe the higher recoveries that we have got but how will our credit cost be in the ECL period? The impact you have given, but what will be the one time impact we have, but what will be the incremental credit cost due to the ECL transition, and the question is also because there is sharp movement of between the SMAs for us because of the PSUs, but we have to take that credit cost because now in the ECL it's required in stage two. So how will the credit cost move for us in the ECL period?

These are my three questions. Yeah, thank you.

Yeah, Thank you so as far as the NIM is concerned, see I have as I already said that we are at 2.52 on the annualized basis and for the quarter it is 2.58. So we have given a guidance that it will be somewhere around 2.70 % for the entire year as far as the domestic NIM is concerned, presently we are at 2.78 %. and as I said for the year ended March 27, we will be trying to be as close as 2.80% as possible, so as far as the strategy for improving that is concerned, that is both sides strategy as I explained earlier also we want to increase our yield on advances is number one. Number two we also want to reduce our cost of deposit so that the overall net interest income improves and the net interest margins for the Bank improve. As far as the other income is concerned, so yes, other income, if you see in the other income we have improved our other income by

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nearly 10 % from 8,900 crores to 9,800 crores & the delta is say around 900 to 1,000 crores. In that, as you rightly say the recovery from written off accounts it has improved from 2,300 crores to 2,600 crores, and as I explained earlier in my question that these 2,600 crores run rate we want to continue & this year we are expecting that we should be somewhere between 2500 to 3000 crores as far as recovery in the written off accounts are concerned. So, as far as the SMA is concerned, see SMAs if you see our slide, we have been improving our SMA numbers continuously over the last three years through our zonal collection centres that we have opened, and if you see in our slide also that the SMA numbers has now come down significantly & I'll just show you the numbers, Yeah, so it is now at 4,700 crore the overall SMA is there and it is only 0.62 % of our total asset book, which was earlier in March 25 at 0.92 %, So that has been the slide as far as the SME number is concerned, and if you see further granularly over there SMA one and two constitute nearly 66 % and 34 % is SMA zero. And it is well distributed between agriculture, retail and MSME and not much figure is there as far as the corporate book is concerned & in the SMA it is 3,600 which is there apart from the overall 4,700. In relation to the ECL, there is stage one, stage two and stage three in the ECL framework wherein stage one is the standard book and the SMA zero. There you see that we have been able to reduce our overall SMA zero numbers. That is one point.

Second point is with respect to the stage two wherein SMA one and two will be sitting there also if you see the overall SMA number is coming down. So this under the ECL guidelines also, the provisions numbers will be coming down and with the kind of agility and robustness that our zonal collection centres are performing. We are very sure that we'll be able to further reduce the SMA number so that the overall impact of the ECL guidelines is reduced through the provisioning which are there. So as far as the credit costs is concerned and the impact of the ECL guidelines on the credit costs, yes, there will be some impact on the credit cost side because of the ECL guidelines, but we feel that it should not be more than ten basis point on an annualized basis.

Thank you sir. So this is the last question coming up from this gentleman who has been waiting. Yeah.

Hello sir. I'm Divansh from Motilal Oswal sir, First of all congratulations for your fabulous numbers. Sir, I have two questions. So one is your CASA percentage which has been at 37.64 % which is by reduced by like from 40-41 % in FY 25. So the question is sir, are we with all your initiatives which you mentioned, are we able to achieve the numbers of 40-41 %? In coming quarters and by when are we going to achieve that?

Second question is, as you said, you are more focused on increasing our RAM book, right? So you have a very significant agriculture book of around one leg 15,000 crores sir, with the monsoon forecast being lesser than expected, what impact will that have on the agriculture book and how are we going to provision for it? Yeah, thank you.

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Yeah. So as far as CASA is concerned, you rightly said that as in percentage terms it is coming down and we have now come down to 37.5 % in the CASA percentage terms is concerned. But however, if you see the absolute numbers, the delta that we have created is more than 20,000 crores. So CASA number we have increased by from 2,80,000 crores to more than 3,00,000 crores in March’ 26. So, as I said that under our project UDAAN our clear strategies is to increase our CASA in absolute terms. As I said that there has been a structural change in the deposits in the entire banking system wherein more of the colour of the deposit has changed and more of the resources are coming through the term deposits rather than from the CASA franchise, which is coming.

Nonetheless, we are still very much confident that the delta that we will be creating in this financial year also as far as the CASA is concerned, we have set targets for ourselves that we should be closing our CASA at somewhere around 3.30 lakh crores, which is a increase of around 10 % in FY 27. So with that thing in mind, definitely we feel that will be able to bring down the cost of deposits. However, having said that, because there will be increase in credit and increase in advances and we said that we have given a guidance of 15 to 16 % in growth in advances. So we'll have to meet those resources through deposits only. This will be the basic through which we will fund our credit growth which will be there and definitely if the CASA growth will be not up to the mark to match the increase in credit which is there definitely will be raising both retail term deposit and the bulk deposits which are there.

But if you see the pattern within the country now, not much of droughts are happening in India. There has been a very good canal network which is there across all these states.

Apart from that in agriculture, we are focusing not much on core agriculture now. We are targeting allied agriculture, which is a clear target that we have given to our zones and

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FGMs that we want to increase allied agriculture rather than the core agriculture which used to be there, the KCC’s and the term loans which we used to do to the farmers the delta that we want to create is through the allied agriculture. So, but with the kind of thing which is there, we are very confident that we'll be able to increase our agriculture book and also protect the asset quality.

Yeah, gold loan advances are somewhere around 50,000 crores in total. So the entire gold loan book is not classified in agriculture some of that is also classified under MSME because wherever the borrower is having UDYOG AADHAR with them, they are classified under the MSME category also. So that is another thing which is there. So, there as I said that the yield is more than 9 % and hardly any asset delinquencies is there and the NPA is hardly 60 crores something in the entire agriculture book and as per the SOP we have in case of NPA within 90 days it has to be sold & unless and until it is spurious gold, the entire recovery happens in such accounts.

So, what percentage of gold loan within agriculture?

So gold alone within the agriculture you are asking, so around 35-40 %it should be there.

Thank you gentlemen. Let us wrap up now. It's been a long time. Thank you very much MD sir, and all the executive directors present on the dias and thank you very much for all the analysts who are present here and also those who have joined online.

I also want to thank the Concept PR team, who has taken care of the analyst meet Ganesh and Gaurav for putting up a good show and special thanks to Bank’s team from Traveling Hospitality, finance, IT, and of course publicity and PR.

Thank you all. Good night.