State Bank of India

Good evening, ladies and gentlemen. I am Rohan Kumar Kheria, General Manager, Performance Planning and Registration. On behalf of the top management of SBI, I extend a warm welcome to all joining us today on SBI Q1 FY22 Earnings Contract Call. On the call today, we have with us Chairman Mr. Dinesh Kumar Khara, Mr. CSFC Managing Director, Retail and Digital Banking, Mr. Ashwini Bhatia, Managing Director, Corporate Banking and Global Markets. Mr. Swaminathan J, Managing Director, Risk, Compliance and Stress Asset Regulation Group. Mr. Ashwini Tiwari, Managing Director, International Banking, Technology and Security. Mr. Alok Tiwari, District Managing Director, Finance. Mr. Karanji Patra, Chief Financial Officer. Before I displace our chairman to give a brief summary of the branch C1FI 22 performance and the strategic initiative undertaken, 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. The financial outcome may differ materially from those included in these assessments due to a variety of factors. Thank you. Now I request our chairman to make his opening remarks. Thank you.

Thank you, Pawan. Good evening, everyone. Thank you for joining this conference call. Well, friends, the Q1 Financial Accounting True Results we have already declared and I would like to place on the court that it is quite a challenging quarter for all of us due to the second wave of COVID-19. I hope all of you and your loved ones are safe and healthy. I want to start by thanking the support of all our stakeholders during this challenging time. During the first and the second wave, our employees have attempted to provide basic services to our customers, open at risk to their own safety. As always, good night and delivered on its obligation to stakeholders, even in the face of the extreme challenges. This is an inherent aspect of the culture of the bank. The same could be possible due to focuses on processes and structure in which every employee of the bank is faced to make a difference. Having said that, I would also like to bring it to the notice of all that almost 74% of our employee base have already been vaccinated to ensure we should be efficient to tide over any future challenges which we might come across. When we look back at Q1 2022, considering the extreme challenges that all of us have faced, we are proud of our performance. As all of you already have our presentation, I would like to highlight a few key aspects of our performance. We have assessed the severity factor and its impact on the the performance has been essentially focused on YOY basis. Our slippage ratio in the quarter is 2.41%. This is because of the impact on collections. A significant amount of these slippages have come from the retail portfolio. This is essentially our particular fault. However, the good news is that in July 2021, we have been able to gain some ground and we are confident that we will be patient to pull back and see much better performance in the days and weeks going forward. In the context of challenges faced in quarter one, we believe these results are strong and comparable. All of you will notice that we have fared well on the tech quality through financial year 21 and now in quarter one of financial year 22 as well. In fact, the next book have now undergone two stress tests one during the first wave, and the second and the most recent wave. And through both these tests, we have delivered reasonably well on the first wave. Our net NPA level at the end of quarter one stands at 43,000 truckloads, with a provision coverage ratio of almost 66%. Additional provisions, including COVID provisions, not included in the figure, are 29,816 crores. To put the context to those numbers, our operating profit was 71,754 crores in financial year 21 and the same is 18,925 crores in quarter one financial year 22. We have been able to deliver this level of operating profit despite the relatively low credit deposit ratio. As far as the capital is concerned, our CET ratio as on June 2021 is 9.91%. Given our competitive position, with our values diverse, we believe our current capital and future internal exports will be adequate to support our long-term growth targets. Given the dynamic situation and the likelihood of a third wave, coupled with the increase of economic changes between enterprise and individuals, leading to reprioritization of obligations in time of adversity, we would like to refrain from giving any forward-looking guidance at this point of time. However, I think when I focused to achieve our long-term sustainable ROE target of 15%, challenges due to COVID-19 and its resultant impact are still very real. Do we believe that COVID-19 better disruptions can come out over the medium term? To ensure this will happen, we have a sharper focus on Juno, which is our flagship app. And we have seen a significant increase in number of people who have downloaded this app and the effective registration now exceeds 4 crores. And it is actually growing at a fast pace. To my mind, it has already reached 4.10 crores. As we have, our online banking channel has got customers already using this. Additional core customers coming through, you know, gives us a digestive leakage to ensure that we are efficient to reach out to our customers and offer them the services given in the most difficult circumstances. And in the current financial year also, We have successfully deferred to more than 400,000 govors of peers. We have purchased a loan with the help of Yono, which is M2 and Jesus. Going forward, we will be enhancing this capability by offering even the two-wheeler loans and also the recently introduced Kavach loan also has been made available to Yono. To conclude, once again, thank you for all your support. We remain committed to reward your trust in us. It's a big assessment of returns for the long term. My team and I are now open to reading your questions.

Thank you.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press the button 1 on the question column. If you wish to remove yourself from the question queue, you may press the button 2. Ask the question to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the questions are assembled. Please note, participants are requested to ask some questions for participants. In time comments, please come back in the question queue for a follow-up question. The first question is from the line of Maru. Please go ahead. Hello.

My first question is on... Mahajan, what was the interest income reversal during Q1? Okay, and last quarter in the fourth quarter, it was around 3,000 crores including the bond interest. What exchange rate have dropped in Eid between March and June?

That was a change rate because for the whole year, we had not really reckoned any of the entry and naturally the interest reversal was also not accounted for and since it happened for almost for the full year it was 3,000 crore this time the first question is yes sir I am just comparing QOQ so QOQ also the name that you have to appreciate that last year though it was at the end but it was for the full year Because of the Supreme Court directive, the NPAs were not recognized. So, on the performance basis, it was indicated. So, all those NPAs were recognized in the last quarter and the relative income, which was booked earlier, was reversed.

Correct. So, between fourth quarter and the first quarter, That is fourth quarter ending March 21 and then first quarter ending June 21. There has been a sharp drop in low yields. So, is it because of the product mix change or what explains that?

In the low yield point, there is a YY it ran around 3,000 crore. Which is to say, it really was a low interest rate, which we charged in this period. What do you think of that? Our NCRR was around 7.75, the number that came 20, which came down to 7%.

So, that is why I am the first water, the NCRR was 7.29% effectively. And then after that,

we are cooking on some kind of a filler, plus other additions in that.

So, this drop in the scale has let's put this kind of G there. Otherwise, we have a routing advantage of more than 1.21 fillet kind of growth. So, this is an interface which brings a growth as well as a yield on and on, which has a long time.

Thank you, sir. And my other question is that you have a buffer provision of around 31.15 crores and you've given a great price. The first is 15,700 crores as a backup provision. These are RBI mandatory provisions, correct?

Yes.

Okay, and this?

Just to give one clarification.

RBI contains provisions to be of the normal 1, 2, 5, 1, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 62, 63, 62, 63, 62, 62, 63, 62, 63, 62, 63, 62, 63, 62, 63, 62, 63, 62, 63, 62, 63, 62, 63, 62, 63, 62, 63, 62, 63, 62, 63, 62, 63, 62, 63, 62, 63, 62, 63, 62, 63, 62, 63, 62, 63 That also, and I envision it as a standard.

So, that part also is included in that stream composition.

So, we will see both aspects in mind.

Okay, so what would be the RDA mandatory provision? RDA mandatory provision will essentially go from RF1, RF2 on the count of the reset string and perform that on the standard effect which is at 0.25%. I will just give you... Maybe a specific we can share.

Okay. Okay.

And just one last question on home loan slippage. You gave a number of 1.53% that is annualized, correct? Which means that the home loan slippage is around 1900 crores. Is that correct, Raghav?

No, home loan, it is at... No, we have given retail personal data. Retail personal also has been given, so that is the reason why it is so. But when it comes to our home loan NPA, it is essentially at 1.39%. If we recommend another pullback, it will actually come to 1.14%.

So the number you gave of 1.43% of slippage in the press means this is annualized, correct? Which means it's a 1900 crore kind of slippage.

All slippages are annualized only.

All slippage ratios are annualized.

So it's around 1900 crores. Okay. I'm afraid that number is coming down. So we have said the details in detail. personal loan, which is 5268 into Y. It includes home loan.

Yes.

Home loan separately is 3123. 3123. Yes.

Thank you so much, sir. Thank you.

Thank you very much. Next question is from the line of Nathan Agarwal from Mootila Law School.

Please go ahead. Thanks for the opportunity.

A couple of questions, please. Question like, when you refer to the incident feedback that we have seen in July, what were the segments when you have seen these feedbacks?

So, we have seen the feedback coming back from practically all the segments. It is home loan, it is also in the attorney and also in the personal loans. So, all segments have seen the pull down.

Can you share some alone clips and efficiency of where we were in June and where we are in July?

We were somewhere around 92% in June and now we are actually more than 93%. So actually it is somewhere around 93.5%. So it has improved by almost 4%. Okay.

And taking on the... what is the quantity of ECLG loan and when I look at the SME system now they are higher than what they were last year.

The CGLS loan we had pension 30,000 crore and the investment took place about 27,000 crore and the current outstanding is at about 22,000 crore.

So I am asking sir in the question to the SME system that we had in first year now which is different than the last year

What kind of control do you draw on this portfolio as it comes out of the moratorium starting next month? Actually, the point is that when it comes to SMEs' messages, they have essentially come from the fact that their cash flows were completely disrupted in the first quarter. Out of 90 days, 60 days, there was hardly any activity. There was a huge restriction on the mobility. I think the post-COVID situation where the lockdown situation has been eased out, There is a scenario where we expect that the cash flows of SMEs will get secured and there will be a position to contact PASTA when it comes to the recovery piece is concerned.

And lastly, now we are seeing an increasing use of digital channels and cross-discharge income improvement.

So how much room do you think is there as like because with higher uses of UNO and digital free tools, they run both at the lab utility price Where could we be on the cost-to-income ratio?

As I have been sharing from the very beginning, that cost-to-income ratio is one of our major focus. There are certain structural issues, but when it comes to the non-interest income is concerned, the mobility is one of the major important factors, and that will actually help us in adjusting one lever. The other lever is the rigidity of the cost section. That also we are trying to address. And hopefully, I think, maybe give us another quarter or two which is beneficial to give some kind of a trajectory as far as the costing condition is concerned. Okay. Thank you so much. Thank you. Thank you. The next question is from the line of Adarsh from CLSA. Please go ahead.

When it comes to the margins, them essentially, you know, we have seen that

because of the low economic activity and the real economy being where it is, the credit deposit ratio have actually seen a further reduction. And this is something which is one of the contributing factors. From that, there was a pressure on the individual advances because when it comes to the quality profit, there is a whole lot of challenges there. So, nevertheless, in terms of, you know, The corporates are not really availing the limit. The unutilized portion has gone up even further. When it comes to large corporates, it is, as I said, about 40% now. When it comes to SMEs, there is a slight improvement, which is 50%, which is about 25%. So I think co-parties is underutilized, and co-parties is also attributed to the fact that the credit deposit ratio needs to be improved, which of course is a function of the real economy. Once the real economy improves, it should be sufficient to support the credit books and which will certainly help us in improving our business.

So, just to ask your opinion, we had good margin in the first nine months and then it dropped because of the drop in the last quarter and now because of the yield and figure ratio pressure,

Do you expect that we can get back to margins where we were in the first phase last year?

Because the textbook yields are low, actually if you stop this flow, margins are unlikely to get back.

We are actually celebrating our portfolio also. Hopefully, we should get a patient to come back to the first stage actually in some time. You are very nice. If we think a calculation, it is the average earning effect. Normally what happens is, the average earning effect becomes a kind of, you have moving effect growth and then the average earning effect becomes Slowly it's moving. Now I will give you the case of 2021. The average in the method was 3155 and this time it is 33. So in the first quarter of 2020 the average has increased. It remains the same. And NIR, in recent NIR was not that great. So that is how the NIR was preserved from 3.24 to 3.25 on a QOTO environment.

Got it, sir. And just one more question on the same topic. When you look at

The incremental loan yield feature between an existing loan virtue of the stock, how large is the gap? And the same question on the purchase fund, because I think, you know, what I'm trying to understand is if the yields were the next amount this particular quarter on the full loan base, what are the incremental yields that we kind of generated in the last couple of years? The total yield would be somewhere around it could be around around 1.7 just give me an insight I think we will have to look into what is the incremental yield I think we will get that you just may not be ready available with us we will have to get back to you on this my last question is the SME book right the

Sir, a lot of dispensations were given to SMEs due to CLGS restructuring, and some of those dispensations continue.

In spite of that, we've got slippage at this time of day because of waste flow. But as you go into the next few quarters, you will actually have a real test of debt services for some of these SME loans.

So, what's your expectation for the SME stress Because that did enjoy a lot of dispensation benefits last year.

Actually the point is, as I was mentioning, the way the stressors come into the SME book, it might even go away at the same pace as the cash flow. That's a belief and that is what we have seen also. And the cash flow disruption was essentially on account of the restricted economic activity And once the unlock situation happens, I am quite confident that the cash flows will get suppressed and we will have a situation where they will continue to be. Some of them, yes, of course, IIDs, they are damages beyond the bill and of course, they will go away. And for that, I think we have, I think we have already stated, whenever we are doing any destructuring, As a means to mandated provisions for RBI, we are generally keeping little higher provisions for any restructuring. In our past experience, the course is not representative in the true sense of the word. We have seen that almost 50% of such restructured accounts survives and dwells. That is in the normal situation. These have been very abnormal situations where the cash flow destruction also happened very suddenly and the repair also is expected to happen at a very fast speed. That's all I visualized at the moment. Thank you, sir. And my last question or two questions.

Thank you. Thank you, sir.

So, one is, on this corporate loan, you know, can you just elaborate what you're asking, given the growth is weak sequentially?

And also, what are your interests on the telephone exposure, you know, given the comments that you're hearing? And the second is on, you know, I can take that as a follow-up.

The first question relating to the corporate book, well, the growth is quite muted. We have seen it. And there is a e-growth. And if we reckon the loans, I mean, the subscription to the CPs or the commercial paper and the bond, then it still looks a little reasonable. It shows about margin of growth. The fact remains that there is a hedge fund pipeline. There are underutilized limits, almost about 3 lakh crore. Also, almost when it comes to the foreclosures and pipeline, there are almost no one left at 2004. So that is something that is what is there in the corporate book. Also, there is also the fact that, you know, the delivery which happened in the corporate in the last one year, that is also another contributing factor for the limited group seen in the corporate credit. So I think part of it would be the kind of liquidity which is seen in the system along with the liquidity which comes from overseas markets. Where is supporting the Indian market is one question. Second is the revival of the dim point which is probably another investment scheme. That is the other very important factor which will have an impact on the credit growth in the corporate book. The other question is this is larger in dimension and we are engaging with all the stakeholders to see how best it can be resolved and I think we will have to wait and watch for outcomes. We are trying to insert our money from any shop which might terminate this. Maybe I will have a session right here also to supplement. Yeah, so everyone is aware of the problem on the telecom side. We are also worried. At the same time, we are engaged with all the parties concerned. I mean, if you just talk about the editor, it's like quite okay, but the liabilities of the company

So, PAPL unsecured loans, if you do, this is unsecured loans, right? Do you know what is the total outstanding disbursement under PAPL?

Do you know? PAPL, you rightly said that these are unsecured loans and the total outstanding PAPL would be actually reflected in the excess, which is around 25,000. it is around 25,000 crores out of about 2 lakh crores which is there in extra credit so that is a kind of a because we started around at the end of the first quarter we were printing about 5,000 crores this year in about 40 days time we have dispensed about 4,000 crores so that is a kind of a number but it is all analytics driven and it is all offered to those who are maintaining The next question is from the line of Gautam Shah from ICICI securities. Please go ahead. Yeah. So, in terms of the international books, so that seems to be a massive focus, in fact, we would have added almost 40 or 1000 crores out there. So, how is the demand over there and how should we look at this book in particular, the growing amount of sequential digits in this book?

So, what would be the outlook with respect to international books?

I am quite hopeful that it will grow because The kind of activity which we are seeing in the developer is something which is quite encouraging. And we are seeing the activity and we are in a position to support it well. And also, we are also getting rupee dollar swap, which is also helping us in sort of funding it at a very, very cheap cost. And also, maybe I'll request you to add. Yes, sir, just to add to what the chairman said. we are seeing very good opportunities available in the developed markets like the US, UK and Hong Kong. So, we are exploring those and we are doing largely very good credit qualities around the high investment rates of assets. And therefore, it is secure and yet it is also offering a good amount of traction in business. So, that will be something we look at the international book to grow this year while we are still you know going out and the investment is improving in India at that time this is providing us a good diversification geographically and also in the kind of loans we do.

Sure. In the sense of this coverage loan which is also the personal loan, so again would that be accounted in the tax credit or it would be there in the personal loan? And when we look at in terms of the cash flow today, just to know what the situation generates, we used to see, in fact, at this time, the growth has been three or thousand odd crores. So, is it in terms of making the creditors hunger out there, or is it more a demand thing, or maybe the incremental loans and coverage has been booked in other sector loans, and it's not being there under the excess credit, that's the reason.

The coverage loans are categorized under the other other pieces my clones and we have and then we have we have distributed about 1000 for workshop which one and it got started in the middle of June so that is where it stands and excess credit you know part of it is also because the customers are expected to really do bit of an activation on the you know and only then it is dispensed So I think it is not that we have, as far as the filters are concerned, filters have remained the same. But maybe I think filters, at the material point of time, probably people were not as much focused in terms of raising credit as they were probably focused on the field of themselves and their family members.

Sure.

One last clarification, these names are 3226 or FI21. and Q4 was actually 3.11 so actually sequential there is an improvement from 3.11 to 3.1 so that is what we have to look at ok this is right this is right yes that is right ok ok ok thank you the next question is from the line of Abhishek Muradam from HSBC East Mohan hello good evening

So, first question, one on exit credit, can you share what is the growth outlook? I know YYDF is obviously because of the growth which is good, but incrementally, how do you see growth there? Second question on that is, what is the credit cost you factor in normally in a normalized rate for the portfolio? And can you also share the subject to exit credit report?

ExpressCredit has not seen much of this.

ExpressCredit has not seen much of this. ExpressCredit has not seen much of this.

ExpressCredit has not seen much of this. ExpressCredit has not seen much of this. ExpressCredit has not seen much of this. ExpressCredit has not seen much of this. than 75%. So we have a working growth potential there. Currently we are growing even in July we are growing around 24%. We assume that 25 to 26% growth rate is possible in this credit. In the express credit, NPA 56 is less than 0.7%.

The question is not about existing budget cost, it's just about in the product what kind of head cost you will give when you price it.

That question, that answer, I think we'll have to look at that.

I'm not able to respond to that. Okay. I should say that 1 star T-segment product, it is a stable product.

And very highly yielding. The returns are very good. So, if you're talking of a number, maybe it would be not more than half a percent.

Okay. And what are the fees in this product, sir? Sir, 11 percent. Okay. And so the second question is on the corporate portfolio. Can you share the yield on the corporate portfolio? Maybe 1.2 and 1.2.

We will give you those details. We will not have it right now.

Okay. Thank you for this, Kishan, and last question. You had shared the NPA and Gold Loan at the July end in the S&E. Can you share the similar entry number at the July end for S&E and etc.?

Yeah, this is in the 6th of February, not in the S&E. Okay.

All right. Thank you so much.

Thank you. The next question is from the line of Sameer Bhatia from ICOM. Yeah, hi.

Thank you for the opportunity. Just, so you mentioned that there are proposals of around 1.3 lakh crore on the corporate side. Can you elaborate on what type of projects or proposals are you maybe sectors or any directional commentary on that side will be helpful. Thank you.

As if X would not be there with us, but nevertheless it is essentially coming from the infrastructure sector.

Largely government driven targets I believe?

No, because it is X. I mean I see that infrastructure sector are the major players.

Fair enough. This is helpful. Thank you and all the best.

Thank you. The next question is from the panel from MC program. Can you comment?

Yeah, thank you for the question. So, first, you know, the entry permission that we have seen for selling to different loan segments, not just the trade, but the high loans and the gold loans. What really explains that?

Was there a difficulty in terms of recovery or the underlying customer interest going to the Fed? and and uh you know it can also help us with what you know what we've done in the month of july so when it comes to gold loan because it actually is a restriction on the mobility because what happens is in the gold loan as well there is a drop in margin so naturally they are required to come in and deposit some money etc that is something which was which is coming in the way and we have in fact post uh um june onwards we have seen decent cold rate in the gold on the count. So that is what explains what really was a contributing factor. What else you were asking? So how about home loss? Home loss also is high because it is all upper deluxe and since with the recovery effort as I was mentioning, this number which is at 1.39% by around 30th June looks at 1.12% as of 31st of July. So that's a reflection of the effect which is seen on a full-to-full loan.

Because I think in Prismit you said that the taxed home loans are the equals of the category. And those are the customers who seem to be because of the law.

No, see the point is that in the case of the cash flow system, it is our people reaching out to them. So when people reach out, we put full-to-full loans in these loans.

Okay, sure. On the car deposit, we have seen a suspension drop in the current deposit. Is it more seasonal or you are also seeing some disruption coming in from the peers because of the recent RJ guidelines?

No, for the cause of the RJ guidelines, in terms of value, I think it has suffered only just about 10%. In fact, our car has actually increased. on a YOY basis. But yes, of course, if you will look at your, I mean, quarter on quarter, quarter on quarter, March always has got a bulge. So, which will not be there as in the subsequent months. Current account, we have actually seen a decrease of about 15 basis points. It's more seasonal in nature for the current month. Yeah, current account is always female and that is the reason why we have put up I am present on a YOY business. Thank you. Thank you. My question is on line of call of nature. Miraiya, please call in. Hi, good evening. Thank you very much. On the overall recovery in July, what was the conclusion that you were able to get in the month of July? The recovery, the July we have done about 4,790 codes.

Okay, sure. You said it would be across the segments.

Yes, across the segments. Okay. Which is essentially to the head, which is essentially to the head to the head of both SMEs also. Other than SMEs, we have a little bit of a fragmentation. SMEs agree for the home loans.

Okay, okay, sure. Sir, of the remaining 3,000 or 4,000 which is left, how much of that or what portion of that do you think will be covered in the next couple of months?

Okay, we'll have to wait and watch after we're all on the ground and we'll try and do that whatever best we can with which we're able to do that. Sir, on the MSMEs, the MSMEs introduced with license on the higher side, any rationale for not restructuring these loans if borrowers were stressed? So, we are doing the restructuring in case of at the same time. Also, we have already restructured about 3,345 crores. Okay.

So, I mean, if it is that it couldn't hold up to... These would be expected. I mean, GIFs would only be covered.

If I can just respond, sir. Although they picked on 416 there which was saying GIFages, already around 2,000 GMS code has been upgraded by the recovery. Now it is 4,108 code. How can they still be structured because they are all standard as a technical part in a reasonable project?

Sir, that can be. And on the reasons for this, sir, around 2000 crore, only 2000 crore was towards specific homelock. That was also in other provision. And even in the provision covers, even repeat 3000 code is a provision. Over and above is a provision. That is going to be used in some cases or cases is also a part of provisional continuity.

Now see, when it comes to other provisions, other provisions would also have... So it contains two things, other provisions. One is that, as you know that... It's a re-instructuring. I will have to use 5% intention. But we have, what do I explain, around 2100 crores, we have put it here on our own in Agarpur region. And around 2800 crores would be on the NFP side. The non-funders for that also, we have done some research. Actually, those ICA forms, which are restructured, there for the NFP, there is a requirement for for breaking the program, which is something which has been talked about by all.

Okay, okay. And this last question, if I can squeeze in, for the collection efficiency you mentioned of 90% and this is only on the overview, but it's not on the overall.

90 days GPT. 90 days GPT, based on the 90 days GPT. Other than agriculture? Other than agriculture, of course it's not covered under the 30 days GPT. Thank you and all the best.

So the question is on the excess credit gain and I think we need to have something called a special PATL loan where the balances are at roughly 2000 crore and more

Related to that, I mean, what is the current balance right now? And incrementally for the June quarter of the total business that we might have done, what is the total top-up loans that we do?

You know, the top-up in both the pension loans, there, all this. No, in fact, pension loan at the end of the call covered under other three segment loans.

There is no special... No, we had special pay to you, but we have disbanded you.

There was only 9,000 during the COVID period and we did not get great traction there. So, the special PA TL is given to us.

So, the balance probably would have come down from 6,000 what you are seeking. I don't have the nimble. But the product is not offered anymore.

So, the special PA TL is now converted into a coverage loan. Is that how? No, no, no. Coverage is an absolutely fresh loan which has been given and that's for those who suffer from COVID. And it was based on the expenses which people have incurred.

And sir, what is the total profit in the tax credit across all the products?

The top up actually is something, it is an annual feature because people depending upon their salary, they come back. So, I don't think we will have that kind of product available with us right now. Okay, okay.

So the second question is on the restructured assets. I think in the market quarters, the pipeline, including implementation was I think implemented in 1800 or so. Out of which I think we have implemented almost 13000 or so. Is the talent going to come or that's folded into OTR system?

No, only 2,000 probes of applications are pending for resection. That's everything else we have done. Any residual on this?

No, nothing.

Nothing on the first one. Nothing on this. Nothing on this one. Okay.

All right. Thank you, sir.

Thank you.

Sorry, sir. Sorry. It's an additional question. The additional operations that we do on the NSD, which is the standard application that you disclosed.

Yes, these are non-fund-based facilities that are outstanding against accounts that are under restructuring under the ICA mechanism where there has been an overview. So, this has been laid on a prudential basis on the MFD outstanding.

So, this would have been Rs. 79,850?

Yes.

So, this is becoming part of Rs. 571.

Because the standard asset provision will be only against the fund-based outstanding. The position that is made against non-funded outstanding is always classified into the other positions. Sure. Understood.

Thank you. Thank you. My question is from the organization. Please go ahead.

I think one is on the side that is can I have what is the outstanding deep structure loans at the end of this quarter?

And if you go to your site, if you go here. Our spending re-sector accounts would be Total re-sector Total re-sector would be about 5,995. 5,246. So, that is our total re-sector. And if we reckon our pending re-searching also which is 2,046. Then the total deceptive comes to 20,297. 20,297.

This is just a marginal increase compared to their last year. It is even about 2.5 crores of revision. But why is the revision for the year one of so much discrepancy? The workbook has defined QoP to 3.5 crores of revision.

Actually, yes, that is what we are working on. For the restructured book, we are keeping 5% extra provision over and above what's our base.

For any requirement, we need to keep 10% for general and 5% for MSME. But on a flat 15% basis, we are waiting for 15%.

If I do 0.4, it translates to about 10,000 crores of provisions. This is on the loan book.

So you have 5,500 crores of extra provisions or a 30,000 crores of each fixed loan.

This seems to be much higher.

I can give you the break up, but 0.4 to 10 is not uniform. There are asset classes under which different provisioning requirements exist. And also, as a matter of prudence, on the stressed textures, additional provision is also made with support approval. So, this is something which, point 4 is the minimum guideline that is expected. It will be worked out in a granular process on different asset categories, as well as different textures. The unique thing in the past one year has been the restructuring provision that we are making on The accounts that are inspected under the restructuring package 1 as well as package 2, the resolution frame of 1 and 2, as well as the additional provision that we are making at 15% instead of 5 or 10%. That's how the numbers are still a little elevated. These are just kind of backwards that are being created over and above the regulatory requirements.

And it will have a benefit of the 37 gross infrastructure loan cost factor?

We do have the backup. I can broadly share with you. About 8000 sold are in to the retail personnel. 10,000 sold in retail personnel, SME 3000. Corporate is just about 48,000.

Okay. In fact, non-investment online recovery funds return off.

Was there any last item that was looked at for this regular runoff score that is now being issued?

I mean one item which is one account recovery of 1096 crores And that had no impact on the yield line, right? No, this is an account which is already fully provided or until part of AUCA So, it directly goes into the other income.

I am just the reason I am asking this question. If it is pertaining to the mediation section, because we covered this a few times, we have made some decisions on the NIA line as well. Is this trying to understand?

We have not done anything. We have not done. It's just miscellaneous income only. That's why it's shown under the other income. Because this is actually provided for and written up. It's a compound part in advance of the collection. So, it does not impact the NIA line. The account was in the live ledger still. This is, they have provided and taken out and this part has been out.

I think we have got an annual target of about 14,000. 14,000 sold and only we should be patient to recover that. We are excluding any sale to India. Yes, we are excluding that. I think the pricing is done. I think the pricing we have not done. But it is at the portfolio level we hope that we should be patient to recover that. Thank you. The next question is from Reynolds. from certain investments. Please go ahead.

Hi, my question was actually regarding the salaries that the top management gets. You know, it's quite lower compared to the top private companies and I want to know if the management has, you know, actively pursued about, you know, getting it to industry level because I think we will not be able to retain talent on the top level if we continue giving such low salaries to the talent and, you know, the management.

If you are talking about me, I am not going to leave it to you, Sam. I took priority from the bank. And likewise, I think my other enemies. From a long-term perspective, I don't need sustainable to pay. I go a little to the top-level management. See, it's in the context that in the bank, the top management comes from within the bank only. Correct. Why do you want sustainable? Because then you won't be sustainable compared to privatization. I think it is a big factor which is beyond any one of us. So I think we will have to live with that situation but we have no grudge against what the world. It may be generally feels, it may be generally pressed in the market but we are quite accustomed to this. We have worked in companies also where people draw much more. I think it's not a challenge at all. We have much bigger goals to look at than the market. Yes, yes. I have really got in the long term perspective about 10 years down the line, 20 years down the line that That's all. Maybe things might change a little bit. Okay. Thank you. You are so persistent. Maybe things might change a little bit. I hope so. I hope so. Thank you. Next question is from the line of Anand Lata from HAC Mutual Fund.

Hello, sir. In the first quarter on the plan, in the fifth quarter we had a 6,000 crore fit rate and we had to look at a quite steady one last year. The full year we had a 8,000 crore fit rate.

So any view, any sense you want, if you are looking for the full year and what sort of results are we targeting? We have to see it in the context. Last year, full quarter, the fit rate could be reckoned only towards the fourth quarter. And also, the fact remains that this year, the first quarter in terms of the purity was much tougher. So, in that, I mean, this number has to be seen in that context. And also, there was a lot of challenge in terms of mobility. You know, at a point of time, all of us were under obligation to run our show with just votes. 15% of them were 1-5%. They had to run the operations. So, we have ensured that the operations are complete. and we should be efficient to contribute to the economy. I think in that context, it has hit the most. But nevertheless, if the condo reaches a ceiling, and hopefully with the economic activity coming back, I mean, quarter on quarter, things may not move in a very linear manner. It may be different depending on the situation.

No, no, I was talking about last year, full year, we had 20,000 customers today. So, here is what we had to see. So, one has to take a full year view of 532. So, where do you see, or what do you think is the future design for the full year?

Also, on the recovery upgrade side, do you see in the next nine years, do you see more recovery coming up?

Is there any interval that we haven't done all the time? So, internal budgeting we have done, but it is all based on certain assumptions. How far those assumptions are maintained, how far those assumptions are relevant, that is something which you have to wait and watch. We are going through very, very uncertain times. I think giving any kind of prediction at this stage may be very inappropriate, but maybe after second quarter, maybe we will have some visibility and perhaps The potential threats of WIP3 also will be behind us. That will be a point of time when we can probably come out with some kind of an indication how the year looks like. Perfect. Thank you. Thank you. The next question is from the line of Kishore Sambha from Hina Investments. Please go ahead. Thank you for the opportunity. So, it is more like you know It is more like what we expect, how far will the elevated happen to be seen. We would like to be as efficient as the best of the institution irrespective of the ownership. So in that context, I feel that we have got distribution reach of more than 30% which is spread out across the length and breadth of the country, rural, semi-urban, metro, all locations. Keep in mind, we are moving away from the pure banking to the status of a financial support firm. And if at all, it becomes a reality, we can perhaps leverage these 2,000 plus branches for distribution of products from our various companies as well as apart from dispensing the banking-related services. Having said that, it would not be out of place to mention that when it comes to various products from our subsidies. It's actually a blue ocean opportunity for us. And if at all we succeed in doing that, it will actually shore up our other income significantly and also it will be the bank actually like also in many respects. It will probably help us in improving our ROE and as well as ROE. You know, if one looks at your procedures, they are already, in terms of performance, in terms of rating ratios and data and all. Only in times where one feels that there's a lot of hope. And, I mean, if you look at, for example, Bajaj Finance, they've managed to significantly increase their rating ratios.

So, a lot of support for them.

Why is this coming in and out?

And I think it's just a case of the handshake. Yeah, sorry. Thank you sir for the detail. They are already very efficient and we have best in class ratio.

If you go to where I think there is a huge amount of scope and if you look at for example Bajasthan and the vegetable cost significantly over the course of the year. If I want to get a sense in terms of standard is better to target something like that, you know, and maybe an S3 target. I think we are actually taking some steps. Maybe it is too premature for us to talk about that in the feminist week, but maybe another quarter or two, we should be in a position to articulate those thoughts also. It will probably help us in reducing our costs. But the answer which I gave you was essentially from the point of view of improving our income, because in the cost to income ratio, income is a very significant component. And if at all we can improve our other income, it will go a long way in terms of Thank you. Next question is full line of Ashoka Ajmera, commanding global services, please go ahead.

Thank you sir for this opportunity. I got it very late and most of the questions have already been answered by you. Well, my compliments to you. You are the highest, I think, quarterly president of the bank, over 6,500 crores. And even in spite of all this little bit of pessimism, which has been expressed by all of you, very optimistic that you are going to do well in the next few quarters and years. Having said that for him, I would just like to know the options he knows. That whatever he has sanctioned, pipeline, I mean how much have he got sanctioned, this has not been, how much he is out of the existing, what he has done, sanctioned regularly, he could already be there, which is still not been. So something is there on the, if everything goes well, and if there is no such thing, that there, Where can we go, you know, from here?

Thank you very much for your compliment. And when it comes to the efficient liquids which have not been availed, there are aggregating tools around Shilak school. And the pipeline for the proposals is about 1,30,000 tools. And let me share with you, we have sufficient liquidity available with us and we have enough headroom available in the capital. So, we are actually daring to support this kind of a growth in the city.

Yes, sir. All this cost-to-income ratio and everything, you know, like will automatically come under control. Absolutely. And we don't have to do too much. My second one data point is that What is the total outstanding amount and the provision that you have?

Overall, 25 acres is about 2,19,000 crores, but if you want a particular take-up on the basis of number of days, that's something I can start with you later.

It remains the same what we have indicated earlier also.

It remains the same, almost around 50,000. That is the amount.

I think somewhere around that will happen.

I think as soon as, I think the progress is quite satisfactory when it comes to NSE. So hopefully it will happen soon.

Okay, so you will have to come in the recovery, you know, almost, even if you think about it, 5,000 we have calculated last time, so around 40 to 50 crore cash to get out of it.

Let us hope for a better number.

Why won't we do that? Alright. Sir, this Aadhaar provision, you know, I think my other friends were also talking and somehow I didn't know. You know, out of the total provision of 10,052 Aadhaar grain income tax, 529 is the entry rate. Out of that, 2,928 crore is the provision. And if the provision of that goes, Aadhaar provision of 2,000 crore,

and that 2800 is on account of the NFE non-fund based limit relating to those cases which are under IT and they are restructured so a significant amount of that is on account of that okay alright this is why the amounts are switching little high yeah so what is so I can come here just to mention the question for a follow up question Thank you. The next question is from the line of Jayamundra from PNK 60, please.

Jayamundra, may I ask a question on your line from your side in the work-week session?

Yes, sir. In the restructuring number that you had given, the baseline is around 23,000.

of which SME is 3000 and retail personal is 9000 and I think corporate you mentioned was from 2800 what is the remaining I mean I just wanted to double check this number so I mentioned about retail personal is about 9000 and SME is at 3630

Corporate is about 8,700-8,800 crores. Okay, 100. Right.

Sir, last week in your annual report, if I see advances to public sector, that has declined to TSU enterprises.

Any comments there, sir? Public sector advances are somewhere 43% is a share of above. Public sector advances. CSUs and government departments.

If we see the year on year, Z has declined by around, I mean, by at least 10% or so.

Any comments there, sir? No, see, it depends, you know. If at all, some of the public sectors could have repaid also. For instance, some of the public sector and the tax services, they have repaid. Let's say that's a part of the game and whatever when it comes to R&D these days, they are having cash and all of them are really trying to de-degrade themselves. So I think it's a, you know, it keeps on happening. Sometimes it will grow, sometimes it will come down.

Thank you. Thank you. The next question is from Gulamina Gulakish Kumar.

Please go ahead. Yeah, hi sir. Just one small question. With respect to the overhead number, so if we take a look at the expenses, there is, you know, because of volatility in that number, so if you could help us, what is the reason for, you know, such a large size in this quarter? Yeah.

Two major components, one of course is we have a large number of DCs now about 70,000 lot DCs who are really helping us out. And second is essentially relating to this time we have started going for PSLCs right from the first purchase onwards. So these are relating to that also because it gives us enough leeway when it comes to as it's part of the loan. So that is something that we decided that we will start to go in here and find out PSMTs from the platform. So that is, these are the two major components.

PSMT for the things that we have bought, so what is the quantum number, in which segment we have bought and at which price or how much we have paid for it?

Uh, it is, it, uh, it, yeah. So, overall the 60,000 pieces we have bought. Around 60,000 pieces we have bought in the first quarter. And, uh, lighting would differ and it will be from trash to trash. It will not be, like, readily available with it.

And, uh, like, what is the trailer of this? Like, how much time? It will be very short, for one year.

What is the cost? The cost will also differ from time to time because it is something which is market related, it will differ from time to time.

Okay, thank you sir. Thank you.

Thank you very much. Ladies and gentlemen, the last question will be the last question from the line of

Yeah, just a couple of basic points. When I look at your presentation, price grows and below FMA 1, FMA 2, below 11,000, what would that number be below 5,000?

I don't think we'll have that number. Okay. Readily available at our site. Otherwise, it would be there in the system, but not readily available.

No, actually the portfolio has changed quite a lot.

So, 2,14,000 is the portfolio which we have and 2,15,000 is the portfolio which we have. Now, the TTCs would be less than a lap of crore only. 1,2,000. 1,2,000 crores. So, the remaining is the country's gold loans which are as high as 1,2,000 crores and we have got loans to SIGs and also some investment credits. So, that's how the book, the composition of book has undergone a change. So, maybe that is perhaps the reason. And when it comes to KTC, the retirement happens only according to the cropping season as per our guidance. So, as and when the cropping season happens, then the demand is raised and the behavior at the material point of time that is in the account.

Okay. And just one last question. Any monetization plans during the year? Any monetization plans? for the year that is probably free. I think it is pretty much here. At this point of time, we'll share it all.