State Bank of India

Good evening, ladies and gentlemen. My name is Hemant Kumar. I'm deputy general manager in performance planning and review department of the bank. On the occasion of declaration of the financial results of the bank for third quarter of FY20, it gives me immense pleasure to welcome the analysts, investors, and our colleagues present in this hall. I also extend a warm welcome to the analysts, investors, and colleagues who have joined us for this presentation through live webcast. We have with us on the stage our chairman, Sri Rajneesh Kumar, Managing Director Retail and Digital Banking, Sri Parveen Kumar Gupta. Managing Director Global Banking and Subsidiaries, Sri Dinesh Kumar Kharap. Managing Director Commercial Clients Group and IT, Sri Arjit Vasu. Our new Managing Director in Charge of Stress Assets, Sri C.S. Sethi. And our DMD and Chief Financial Officer, Sri Prasanth Kumar. Our Deputy Managing Directors heading various verticals and Managing Directors of our subsidiaries are seated in the first row of this hall. We are also joined by the chief general managers of different verticals and business groups of the bank. To carry forward the proceedings, I request Chairman Sir to give a brief summary of the bank's Q3 performance. We shall thereafter straight away go to question and answer session. However, before I hand over to Chairman Sir, I would like to read out the safe harbor statement. Certain statements... In these slides are forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. Now I would request Chairman Sir to make his opening remarks.

Good evening to all of you and a very warm welcome. I think presentations have all been loaded and are available with all of you. So a very strong operating performance, you can see. And there will be many questions I know around that. Exceptions, SRST, Rewan housing. But that is all part of the game when you are in the bank and the banking industry. So otherwise also, if we remove all the exceptions, the bank's performance is very consistent. So that is the first thing which I would like the analyst community to note that we are very consistent in terms of the performance, whether it is NII, whether it is name. The profit, of course, dependent always on what is the tax rate and what are the loan loss provision. Asset quality, consistent improvement quarter after quarter. Gross NPA, quarter after quarter, they have been coming down. Net NPAs are coming down. Provision coverage ratio is consistently going up. I don't think that there has been a quarter where we have not increased our provision coverage ratio, whatever be the circumstances. So this is about, I am not repeating the numbers. The one thing which we have given in our press note as well as to the stock exchange that the reversal of DTA as far as the DTA related to the loan loss and that 1300 crore we have provided and that is why otherwise the profit would be around 7000 crore. So that is one important point to be noted and in the current quarter which is now March 20, we will be to the revised corporate tax rate which is 25%. So whatever performance comes hereafter that will be with the revised tax rate. This is highest ever profit but I believe that if it goes well, so this will not remain highest ever. We can probably show better performance than what it is. And on the business front, I don't have any concern as far as the deposit growth is concerned. CASA percentage, you may say that it has come down, but the fact is that even on term deposits, SBI's rates are one of the lowest, but still, the rate of growth for term deposit is higher than the Current and savings account. So that's why CASA percentage has come down. Our loan growth has been very good as far as the retail is concerned. And international banking book has also grown by 16%. So only corporate credit which has been much discussed and is being discussed everywhere. There the growth is negative till date. But hopefully that reversal also should happen going forward because our sanction pipeline is fairly good. And the underutilization of working capital limits. I am hoping that as the demand picks up in the economy, that reversal will also happen. In terms of the leadership on the technology front, UNO has been doing very well. And as we speak, we have crossed more than 1.8 crore registration. Now, 90% transactions of the bank happen outside the branch. It's a different matter that even that 9% still our branches are crowded. And 63% of savings accounts are opened through UNO, which is digital onboarding. Multiple products, 34 plus products are available. The personal PAPL loan book has crossed 10,000 crore. And number of transactions which are happening on UNO platform, whether it is Yono Cash, that is cardless withdrawal from ATM, more than 100,000 transactions now. And whatever facilities we have provided on Yono, they are being effectively used, all features. So, which is a very encouraging sign that it is not just the number of registration is increasing, but the actual usage of the features is also increasing. on continuous increase and still the impact on the cost to income ratio. It has not yet come, but it will come. I am very confident about it. As we realign all of our branch processes, that productivity gain will be visible. And financial inclusion, again, bank has done phenomenal job in the area of financial inclusion. Number of accounts, DVT, number of transactions, the social security schemes, performance. So everywhere there is a growth and a good growth. And finally the performance of the subsidiary, all of them. It is continuously improving. All of them, as I said, that they are Either leader or on course to become leader. SBI mutual fund, I think, number one, number two? Number two today, but number one very shortly. So SBI, general again, it is one of the fastest growing private sector. SBI Life, its illicit company, its results, they all have been before you. So whichever subsidiary you take, they all are doing very well. So all business segments, all subsidiaries, the costs, I would say other than one cost which is relating to the retirement benefits, all other costs are very much under control and well within whatever was budgeted for. HR, we have not put a slide, but even on the HR front, the kind of initiatives bank has taken to recruit talent as well as to upgrade the skills of the people, the reorganization of the credit verticals, as well as now a major shift or major reorganization which is happening in what we call our retail and digital banking group. A massive reorganization is planned, which will happen from 1st of May. And again, we believe that it will do many things. One would be definitely a visible improvement in the customer service. And second is the capability to compete in the micro markets as well as the what we call the retail segment markets. So many of these things they don't come in the presentation. That is an internal reorganization, internal process. But its benefit are going to be immense. So these are some of my opening observations and then all your questions I will answer other than yes. So please, floor is open.

Thank you, Chairman, for the opening remarks. We now invite questions from the audience. For the benefit of all, we request you to kindly mention your name and company before posing the questions. Further, we also request you to restrict your questions to maximum two at a time so that all the questions can be accommodated. In case you have additional questions, the same can be asked at the end. And the first question would be from...

No, sir, sincerely, I mean, you definitely deserve very rich compliments, the entire team of the State Bank of India, because this is not that this kind of a profit has been generated by in the normal time of business and economy doing well, in the normal. This has been generated in the very, very abnormal time, which is very encouraging and really commendable. And what is more important is that your own confidence and statement that this is not the best. Best is yet to come and immediately in the next quarter, I mean the current quarter in which we are. So that gives a lot of confidence. And you have been so transparent in your discussions everywhere that there are very few things which are left to be asked which are hidden or which may come out of the discussion. But still, I mean, just for little more clarity and to be updated. And after all, you have come all the way here. It's not only because to complete that formality, but yes. So on this Diwan housing now, the HFL, the time has come now when the provisions have started. So I believe that the overall exposure is around 10,000 crore if you take that bond and loan together. And as you said that you already provided on bond 50% and the remaining 20% on this thing. So overall around 30% has already been provided. Now, how do you look towards the resolution or the recovery from this account so that when you go to 40% in the coming this thing, how much net impact could be there from this? Yes. And yes, on other little more details on the accounts in ICA, the recovery prospects, a little bit on insight on the NCLT cases and which are going to settle and the money is going to come in in this current quarter, which are in March quarter. And how do you look at the future loan growth if you, you know, a little bit more segmented actually into the various segments of the economy and how your overall perception now going forward in this coming year. But before that, just a small direct question you already explained to some extent. This income tax provisioning, Can we know a little more full clarity that out of the nine months profit of 10,000 crore, 9,000 crore is the income tax. So total pre-tax profit is 20,000 crore. And if you take this quarter, then of course it is 5,583 and versus the provision is also 5,386. So what is the clarification on this and how it has been calculated and what would be the impact in this March quarter whether there will be a ride back substantially where you go to 25% so on that if a direct some calculations can be done.

You have asked seven questions in one question. Thank you. So this tax part I will leave it to CFO to explain. And rest of the question about the Diwan housing. So net we are carrying it now at 7,000 crores. 3,000 crores is already provided. And expression of interest has been invited by the administrator. That process is on. What I believe that if not by June, by September 20, this account will be concluded. So your loss will ultimately be crystallized in next three quarters. March 20, June 20 and September 20. Unlike in the past when you had the luxury of D1, D2, D3. So in IBC regime or in when any NBFC is under administration within 12 months in any case it gets crystallized. So This quarter again we will watch the situation and we will do some more provision. This quarter means now March 20 quarter. But overall my own assessment is that the recovery to the all set of creditors is expected in the range of 40 to 50 percent. That is what the expectation is but that is not to You know, guide anybody, whoever is willing to put an EOI. It can be better. It may be not what I am expecting, but that is the range and that is the range from the beginning. We have taken a worst case scenario. And in such a scenario, you can imagine that if we save, for example, by March 20, if I hold a 5000 crore provision, I think we would have completely aligned with the estimated loss. And if there is something remaining, so June and September quarter, as and when it happens, we will crystallize. So this is the situation on the Diwan house. ICA, in all there are 32 cases, or were 32 cases, there is no new addition. So eight were fully resolved. And this is the break-up we have given on slide 21. 9 are in NCLT so additional provision requirement is just 1100 crore and 397 crore is what could potentially slip in this quarter which is March 20 so ICA impact also is very very manageable and 1100 crore is the worst case scenario where the accounts under category 3 if nothing gets resolved by March 20 Otherwise, it will be lower than this. So, this is about your ICA. Then, other than that, we have our normal aging provisions which kick in. And all taken together, I think our provision in March quarter may be in and around 10,000 crore. 1,000 crore minus or 1,000 crore plus. That may be the range. Or we may even do better than this. But I am just taking a sort of a worst case scenario for the bank. On the recovery side, at least three visible recoveries. One is a textile account, so almost 1800 crore. Motion power and steel is in advanced stage of resolution. There is a rate in undertaking. It was coming in this thing. If that gets revolved, that is another 4000 crore for the bank. Then there is one power asset where we are expecting another 1000 crore. So 7000 crore is something which is over and above what I call the normal. In normal course also we have smaller recoveries 300, 200, 500. And the last quarter anyway the profit is always higher. So currently if you look at it on a quarterly basis, the bank's profit average is coming around 14,000 per quarter. All exceptions excluded And so that is the scenario that where you can in normal profit PVT anyway 17, 18,000 crore happens and plus we have certain plus SBI card IPO. So that is scenario that is why this gives me that optimistic statement I made that maybe this is not the highest ever and we can look forward in this quarter. to beat the performance in this quarter, but there are variables which are quite a few. And about the credit growth, of course, retail, I don't see any issue. We are growing at a very decent pace. Corporates, if the demand comes, then I think we can easily go up to 10% also. We may not exceed 10%, but that all depends upon how does the corporate book performs. Anything else I am missing? So this is a good sign. Sanctions are happening. Across. It is across. There is balance sheet funding. Not necessarily. It is across because loan processing fee, it comes retail, SME, corporate, project loans, upfront fees. So it is very difficult to pinpoint any particular sector. It is broad based and this itself is an indicator that the number of sanctions in this quarter have been higher. And our people also have been very careful that there is no income leakage. As soon as they sanction, they recover also.

Yeah. So that is one indicator. Yeah. Or you might have increased your fees.

No, we have not. Nobody allows us to increase our fees. Okay. So Prashant, just on that income tax thing, if you can explain.

So in case of basic... For the first nine months, we have calculated the provision on the tax at the higher rate of taxation. And now at the end of the third quarter, we have decided to move from the higher tax rate to the lower tax rate. At the beginning of the year, we were carrying a DTA of almost 10,000 crores. So now since we have decided to move, this DTA we need to revalue at the current rate. So there is a hit of 2838 crores because of the revaluation of the DT. Similarly we were also carrying a MET credit of 554. So that would also not be available once we move to the lower tax rate. So the total impact is 3392 crores. Since now we have decided to move to the lower rate for the entire 9 months. Now we would calculate at the lower tax rate. So the benefit which we are getting out of this, because of the 9 months we have earlier calculated at the higher rate, and now we are calculating at the lower rate, the benefit is 2059 crores. So the net impact is 1333 crores, which we have taken a hit through our P&L. And as of now, the entire DTA has been reversed. The entire DTA which you are carrying has been reduced. It will be at 25%.

Yes.

Right from the fourth quarter we will get the benefit. Yes.

So what is the right back through NII of your NPL recoveries this quarter?

4,000 plus.

Through the net interest income. 4,000.

4,000 crores.

Yeah, 4,000.

Approximately. 4,000 crores. Okay, and provisioning right back is the... 7,800. Sorry?

7,800 crores.

So these two add up to the total recovery income. 7,000 and 4,000. Okay, sir. Sir, and the other question is that in your slippage under IBG... Also, you have recognized the housing finance account. So how much amount is there in the IBG?

The entire, I think, 1694.

So it's 1500 in IBG and 5500 in the domestic offices.

Got it. And that would be what, ECB?

ECB, but crystallized.

Okay. Yeah. Okay. Okay, thank you, sir.

Sir. Hello. This is Raj Desai from Valium Capital. Sir, my question was the telecom sector exposure that you have given, that is the total exposure, that is fund-based plus non-fund-based? Only fund-based. Only fund-based exposure. What is the non-fund-based exposure, so BBB and below, sir?

No, there is no BBB and below. I think it is about 11,000 if I am not mistaken. 11,000 crore non-funded but that is for spectral charges which have been deferred by the government for two years. So that guarantee at least we are saying.

For two years it can't be invoked. It can't be invoked. So we have taken the entire divergence provision this quarter.

Not only this quarter, we have taken earlier quarter also. So many of the divergences which came in March as per the supervisory review Many of those we have recognized in first quarter, second quarter. What was the remaining when we did the stock exchange? Finally, all those numbers were given, they all have been accounted for in this.

And my last question is, sir, we saw very good growth in housing. So what are the reasons for that? Any specific reason for such good growth in a housing finance?

But housing finance, we are going at that rate, 15 to 16, 17 percent. So as the size of the book grows, so in percentage term growth comes down a little bit. But otherwise, the demand for housing loan from the State Bank of India, it is very good. And the sanctions, the disbursements, all are going up.

And on a wind power account, we provided completely?

Yes.

Even the non-fund base?

Yes. September only?

September only. Thank you.

Sam Neelam from MK Global. So I wanted to ask out of your corporate slippage is about 9500 crores. So apart from DHFL that you mentioned is 5500. What are the other major accounts?

But normally like we don't mention the individual accounts.

So even sector would be fine?

Sector is a separate thing. So basically if you see the remaining part is only hardly 3000 crores of slippage. And this is not particularly related to any specific sector. And not a very large account is there, number of accounts.

Thank you.

Sir, Ramesh Bojwani from Meta and Vakil. In your opening remarks, you laid a heavy emphasis on digital transactions. You said 1.8 crore people are on board and 91% transactions are through other than normal channels. That expression gave me a thought that your technological backbone should be so powerful that it should prevent, avoid going forward any kind of data pilferage, data attack and cyber security or cyber attacks because this phenomenon which I am speaking globally is the best of the best can't stop it. As a bank, we have initiated this. Along with that, if we can initiate a fireproof, failproof system It cannot be 100%. It will help going forward.

So, no, I think it is a very, I would say, very valid and timely observation because data security and cyber security are the two real threats and particularly for a bank like the State Bank of India, which is a very important institution in the country. So that way to the best of our capability, one, in terms of providing the resources, whether manpower, financial, or the partnership with the best in-class vendors. So that is very much there. Time to time we keep on doing our vulnerability testing. And many new companies and particularly startups and fintechs They also have very good solutions. So bank is very actively engaged with these fintechs and we are very impressed with what they are doing. So it is a continuous process and we have a state-of-the-art SOC that is there. So further improvements, it is a, I would say, The people who do mischief, they keep on upgrading themselves. We also keep on upgrading ourselves.

On SOC, yeah, exactly. On SOC, we are going into a next-gen SOC. So we already have a security operations center. We have approved a next-gen SOC, which should be operational, which has the, as of now, whatever is the cutting-edge technology that is available. So this is...

top of our mind as far as... Yeah, that's very nice to hear that you are virtually trying to keep one step ahead of the criminal cyber fellow. That I don't know. Whether they are one step ahead or they are one step... Nobody knows. And sir, the second thought was You have, by virtue of your size, you lend to almost all sectors of the economy and all segments, large, mid, medium, micro and everything. How are you seeing and reading the situation which has arisen even from quarter three till date? Are you seeing small signs of improvement, recovery, confidence coming back, or is there a crisis of confidence, or maybe a quarter from now you will be in a better position to answer and address this?

I don't believe we can prove it.

No, I think, I mean, if you look at, particularly if you look at retail, I think on the retail, we have been seeing continuously that recovery is happening. In fact, we didn't see slack there at all, actually. So retail has generally been performing well. On the other side, we are seeing a lot of sanctions happening. See, we are seeing some decline in even SME portfolio or even in the corporate growth. It is mostly on account of working capital limits not getting utilized, actually. So we do believe that, you know, we were expecting by this time the utilizations would improve. They have not improved. But there is a good pipeline. A lot of sanctions are happening. So hopefully going forward, so, you know, those... Things are not getting used. I think it's basically chicken and egg story. You know, the consumption and investment, what happens first actually. So we want investment to happen. The consumption, unless that is there, the investment doesn't get justified actually. So hopefully at some stage the cycle will start moving actually and we'll see a lot more growth coming.

Perfect.

Hello, can I ask a question?

The March ending, can we see a ROA of 1%? March 20? Yeah. We are not superman.

We are at 0.6 today. So we will remain at 0.6. Okay.

Now if you see the ROA for the nine months, we are 0.39. 0.6 is for the quarter. Yeah. Okay. So cumulative it is 0.39. So from 0.39 in one quarter to one is just.

Thank you.

I just want to bring to your attention that cyber cafe just want to bring to your attention that there is a lot of siphoning happening from swift so I wonder if you are aware of this or paying attention to it something new to you and I just want you to be careful of that that's all because there is a very huge siphoning happening from there

We actively track, in fact, wherever any incident happens globally. And there is a system where we get alerts also from various sources. So it's a very proactive approach we take, but nobody in today's world can claim that Nothing will happen. But we are very mindful of the fact that as the largest financial institution in the country, we are the most vulnerable. That goes without saying. So that's why the responsibility is more on us than any other institution in the country.

Hi, sir. This is Vishal Goel from UBS. Thanks for your efforts in this challenging time. Slide 25, you mentioned that around 6,800 crores are, you know, worth five accounts, which are regularized by other banks. The footnote, 6, 7, 8, 8 crores. So how much of this are NPA for us?

No. No, nothing.

They are all standard for us.

All the banks. All the banks. It's not written other banks. It's with all the banks they have been regularized.

Okay. Because they were part of that first category, right? Yeah. Where you have some provisions.

Why this statement has been made to make it clear that it is not that it is standard with us. It has been because it is ICA and unless the account is standard and regularized with all the banks. You cannot put in this category. So it is treated as fully resolved because all banks, there is no overdues. Okay, so 8 accounts fully.

What is the color of this in the sense of sectors? These are all power or?

Not all power, different sectors. 32 accounts.

No, no, 8 accounts. 8 accounts.

One would be power, one major account in power sector. But some other is smaller accounts also.

Sure. And also want to reconcile your net interest income number from previous quarter to this quarter. So now when you say 4000 crore is let us say the NPL kind of recovery in NII. So that means our NII went down by 1000 crore quarter over quarter.

Is it so? No. Not as much.

Let us see. See the quarter 2 NII income was 24,600. Correct. And this time it is 27,779. When we are giving you 4,000, this is approximately 4,000. So NII is almost flat. If you take out the recovery of interest on account of these two things.

4000 is not, one is not an impact on NII. 4000 is the impact on the interest income. So that would be. So you have to take interest income, quarter two was 64,000 crore. This is 67,692 crore. So it is almost the same as far as for quarter two, marginal decline only. I am considering that MCLR has come down. So it is a good performance and then you make up by reducing your cost of deposits or borrowing costs.

Okay. So maybe I will have to understand it much better.

No, I think you have understood correctly. The only thing is you are saying this is a much decline. We are saying it is almost flat.

That is the only difference.

Okay. And I think the question which you already kind of forbidden, I am asking a different way. Will SBI be required to do any kind of national surveys, not especially one bank? I mean, there can be another bank, you know, which can come up, which could be in trouble. Or you think that for some reason SBI need not be called and somebody else might be required to, you know, to bail those banks out.

If you can give some kind of... Why are you asking this question? So one is that I have always maintained that we did our duty by merging six banks. Right? So after having done that and being the largest bank with 23% market share in deposits and 20% market share in advances. So from any risk management perspective, it doesn't make sense that you go for any other acquisition and merger. So there is no business case that we scout at all. Does that answer your question?

It won't be a business case for you anyway.

Sorry. Thank you, sir. Sir, Anand here from HDFC Mutual Fund. Sir, if you can do, what was the interest reversal on Devan housing exposure this quarter? Interest income reversal on the NPA? Okay.

We don't have sir. We can.

Because it is first quarter. Interest reversal hits you when there is an account which is a restructured account and then backdated suddenly you have a standard restructure and field restructure and it becomes D3. Then it hits you. Or the interest reversal on agriculture when backdated they become NPA. That interest reversal because it is like one quarter only and it has moved to substandard.

Not a very... I think we recognized it even before it became NPA.

So in terms of order of the account, it would not have become an NPA as of 31st December. But because of developments, the investment had turned into an NPA and the fact that it was taken into NCALT, that is why... That's right. We could have recognized and kept it standard as per the RBI guidelines. But we chose to declare it as an entity.

But these interest reversals, they keep on happening every quarter. Ultimately, what you get here, the interest income, it is net of all those reversals. That is an automated process, no manual interventions.

Sir, on the slippage slide, there was a slippage from the international loan book also. Which one? On the slippage slide, you see, there was a slippage from international loan book also.

That is again the same account. Again for the same account, housing finance account.

So out of 7,100 crore, 5,500 is there and rest is this is an international bank and one more small account.

1,500 crore is on account of the housing finance company and the other small account.

And so if I look at the provision line, this time we have a mark to market provision of almost like 3,000 odd crore rupees.

out of which one is on the bond of the HFC, 1500 crore, 700 crore mark to market, and rest on SR, security receipts.

And sir, what's the outstanding security receipt you are having?

7700 crore. About 8000 crore, sir.

7700 crore. Sir, there was news article that we have also done a tie-up with a developer in which we are gallanting the construction. You can give some color on that. What's our plan? Are we looking more such style? Do we earn extra fee because of the gravity for our project?

So the way the scheme has been designed, one is that we determine first that what is our comfort or the exposure which we are willing to take on the builder. That is the first idea. And obviously, they will all be top quality builders. where bank will do its due diligence and based on the cash budget method, which bank historically has done, we determine the exposure limit. And within that exposure limit, whatever money gets mobilized from the home buyers, so that is deducted and becomes a non-funded exposure in a way. The idea was just to give confidence to the bank. home buyers and give us little bit of a boost to the segment. And seven centres we have said that to begin with. So we are looking out and it has generated good interest. So our department is working on it and the response I would say initially it is a good response. And as I said that it is all we are treating it as an exposure on the builder. We are just facilitating that if the money comes from home buyers. And we have tried to make it not legally but otherwise bankruptcy remote. Because we will be the sole creditor to the project. That is the intent. If at all it goes to bankruptcy, it will be SBI which will take it to bankruptcy, no one else. So that is the structure. And obviously, when we issue the guarantee, we will get our guarantee commission from the builder. Whether he recovers from homebuyer, what does he do, that is up to him.

How much, sir, should I expect or how much project do we think we will be able to do in next six months or any plans we have, sir? Okay.

Prasad, you are there. What is the demand for this product? Maybe 10,000 crore we can do in 6 months. 12 projects.

Sorry for interrupting. We will come back to you in

Kunal over here from Edelweiss. So if we adjust the margins, then the domestic margin seems to be below 3%.

No, it's higher than 3%. 3.22%.

Okay, it should be higher than. And where do we expect it to settle? Maybe given this kind of an environment. Okay, so maybe it's somewhere around.

More or less stable. Because our interest rate on deposits, we are almost at the bottom, right? And whatever was the repo rate cut, all that we have passed on. So it will be the margin or the NIM gain is largely coming from the quality of the portfolio. As we have more performing loans, then your net interest income improves. So that is where the margin gain will come. That's all. NII improvement also.

And in terms of the employee cost with this new mortality table which has come in, are we taking any hit in this fiscal or are we planning to do it in due course?

We are doing it as per actuarial valuation quarter after quarter and that's why if you look at on the expenditure side, the normal salary increases are just hardly 3%. Whatever increase in employee cost is coming, it is all coming because of the actuarial valuation and the requirement to provide for the retirement benefit.

So this new mortality table we have adopted for all. I presume so.

I think we are already adopting this new mortality rate for last four, five years. Nothing new has come so far. Okay. So nothing new. Nothing new has come.

Okay. Here.

Here.

Sir, first question is can you update us on the MSME restructuring that was announced last year? Where are we today in terms of total amount and the provision levels?

See, most of the eligible accounts have already been restructured and we restructured about 70,000 accounts worth about 3,600 crores.

Anything this quarter? Anything this quarter? No.

In this quarter, yes, this quarter also quite substantial. About half of it would be in this quarter. Okay.

And so second one.

Yes.

That is.

That is one of the conditions.

That is the condition for the restructuring that only standard accounts.

And what kind of pipeline do you see for the next few quarters? No, as I said, most of the eligible accounts are already over.

As per Argi's scheme, it's all done. And if there is any new dispensation comes, we will see.

Okay. And second, clarification on the SMA 1, 2 versus the standard ICA. Any sort of overlap there or two separate? No.

No overlap.

Okay. And what is the current non-fund outstanding on the entire NPA and the SMA group?

No, every month we are seeing 300 crore.

The non-fund based is actually typically around 25%. At the most of the fund-based, if you take the overall book of any account, if you take the overall book, in some accounts the non-fund-based is a little higher. We can give you the non-fund-based number also for all these accounts.

And so third is on SBI cards, where are we in terms of revolve rates and what has been the provisioning number for six months and nine months? Sorry, the third quarter and the nine months.

Yes, sir. As far as SBI card is concerned, the percentage of NPA, net NPA is at 0.83%. Gross NPA is at 2.67%. And credit costs? Credit costs, I'll have to check the number. I may not have it readily available right now. All right. Thank you.

Hello. Yeah, hi, sir. This is Jai Mohundra from BNK Securities. Sir, I wanted to know, I mean, we had shared this corporate rating profile in our analyst day. It was around 7% of the total corporate book. So if you can share if there is a change in the corporate rating book, specifically double B and below corporate rated.

Sir, actually on the investor day, this was given in the rating. But what we have seen, there is an improvement like for investment grade, triple B and above. We have improved by almost 2%. That is the position.

And secondly, sir, on this ICA slide that we have given, Now the first row of that table says that there are some 8,000 odd gross accounts and some of them have already resolved. So how does the provisioning, I mean what is the timeline when we can reverse this provisioning?

One year. One year.

In case of additional provisioning, if you refer to the NCLT till it is admitted you need to hold 10%.

So if you see the first one and then you can Yeah.

So in 8314 accounts 702 is held on Restructured account. So that will be reversed only on one year. But there are other cases where we have completely recovered. So there is no provision there.

That is it. Thank you, sir.

Yeah, good evening, sir. Ashwani from Nippon India Mutual Fund. My question was, your retail book has grown to 740,000 crores. So in a slowing economy, which is gradually recovering maybe, do you see a risk to retail loans of NPS? That's one. And second is, in terms of the National Infrastructure Plan, as they propose to double the investment in the next five years, how well is the bank prepared to take advantage of that situation?

So we don't have any concern as far as our retail portfolio is concerned. For the simple reason that our housing loan portfolio, as you can see, that we have brought down NPA percentage from 1.60 in April 17 at the time of merger to 0.92%. And it is hovering around that. And in terms of LTV, in terms of EMI and MI ratio both, the bank is very well placed. 92% of these housing loans are where people live in those houses. So these are many things which ensures that home loan portfolio quality remains strong. And same goes with auto loan. Express credit, which gets classified under unsecured, but earlier also I clarified that these are all salaried people Either government, defense, teachers, which are not impacted by the current slowdown. Our market segment for this is slightly different. And project finance, of course, we have strengthened project finance team. A lot of specialization has been built in. And with the opportunity in most of the cases, SBI is leading the transaction and will continue to do that.

Sir, also when we, let's say, see on the news channels, etc., there is one complaint which comes from some section of MSME, etc., that there is lack of funding. So would you like to say a few things about this? What is the situation? I mean, are you also very serious in your credit standards? Are you saying no to giving loans in some markets?

Ravi?

No, I think, you know, if you see all the action that we have been taking in terms of even giving public advertisements, asking people to come and take loans. In fact, we have been making so much of outreach to MSMEs to come and take loan. I think as you know that we launched that 59-minute portal also where anybody can go and apply for a loan. Yes, there are, of course, appraisal standards that we have to meet, and anybody who falls and satisfies those criteria does get a loan. From the bank side, there is a very active outreach to, you know, go out and, in fact, contact MSMEs and ask them to take the loan. But I think it's overall the business environment which is probably holding them back. So there are a lot of other initiatives that are in the pipeline, things like adding bill discounting, things, you know, what more can be done actually so that the MSMEs get the money on time actually. So once the overall climate improves, I think the MSME also should improve. But, you know, there is no good MSME who has ever been denied credit by the banks. I can tell you that much.

Thank you, Vishal, the very best. Sir, I just take a couple of questions which are from the webcast. So one question is that what is the reason for increase in the NIMS? I think we have already explained this is on account of almost 4000 crores of interest income which we booked on the some two, three large recoveries. Another question is that why is the investment depreciation so high during the quarter? I think this has also been explained. There is a MTM of 716 crores and there is a depreciation on the bond portfolio of a housing finance company to the extent of 1500 and a provision on the security receipts. And sir, another question is has the wind power account been recognized as NPH? Wind power account. So that has been recognized and 100% proven.

That was recognized as NPA in September itself and what has happened in December is just the standby letter of credit and which we provided in September and it got converted into funded exposure in December quarter and that's why you see increase in outstanding.

And, sir, another question is that have you seen any impact of farm loan waiver on the agriculture portfolio? Farm loan waiver. No, that is visible.

That's why our NPAs are going up in agriculture.

All answer? Good evening, sir. Mahesh from Kotak. Just on slide 12 of the presentation,

So can you just reconcile some numbers there with respect to the reversal that you have done of 2475 as well as the 1752 So 1752 again it is a housing finance company which was not categorized as NPA during the last quarter but we were made a provision of 1400 so that has now gone to the loan provisions And for other provision of 2475, this is the, we were making 100% provision on the non-fund-based facility of a renewable energy plant, which has also now gone to the loan side.

Second question, have you, in the divergence report that you got this quarter, we understand that the divergence also includes some small-ticket loans like Agri as well. And I think in the press meet you made some comment that you've asked for some clarification from the RBI. Has that account, has those accounts been declared as NPS this quarter? Yes.

Whatever is the norms on which the divergence in agriculture was pointed out by the supervisors, all such accounts have been classified as empty.

So, from a divergence standpoint, everything has been... Everything has been. Everything. So, okay, perfect. And the third question to, on the recovery side, have you recovered all the accounts which were in the public domain, like on the power side, the FMCG side, as well as the steel?

So, in the public domain, Bhushan Power and Steel is still remaining.

No, we are talking about SR, Ruchi Soya, Jai Pratap. They all have been termed. All of them. All of them have been completed. Yes, yes, yes. And Prayagraj Power. Yes. And just one last question. Of this recovery that you are likely to see, which you have reported in the power side, what are the timelines that we are looking at now? Because you mentioned only one account in the fourth quarter. If you could just give us some color as to how are you looking in progressing?

No. The power sector, we have given the slide on page number. Where is the slide? Just open that. Okay. So, this OTS likely to happen within this quarter by March 20. Re-stretching, we will try that all four happens. But definitely two will happen. Two may go to the next quarter. NCLT as per the process. We are not taking any guess there. So, this is the position. So, we out of six, row first and row two. So, first two OTS. 99% chance that it will happen within this quarter and restretching all four are possible but two we are more hopeful.

Done?

One is already done.

And how is the recovery environment now in the distressed market? Have you started seeing some activity levels improving from the distressed players after the IBC clarification coming through of SR?

I think a lot of investors are interested in terms of, you know, the liquidity also has gone up after the SAR money is received. There are inquiries, but we'll have to see how actually it progresses. Then, again, the interest is in a few sectors, not across the spectrum. However, obviously, there is an interest. We were able to close a couple of major transactions post-SAR. So there is definitely an increased interest.

The chances are that you will recover good money. Wherever there are not tangible assets or many tangible assets, there the recovery rate will be obviously poor.

Do we have more questions? So I trust all the questions have been addressed. So if you do not have any more questions, let me end the evening with thanking the chairman, the top management team, the analysts, ladies and gentlemen. During this evening, we request you to join us for high tea, which is arranged just outside this hall. Thank you so much.