State Bank of India

Good evening, ladies and gentlemen. I am Pawan Kumar, General Manager, Performance Planning and Review Department of the Bank. On behalf of State Bank of India, I am delighted to welcome the analysts, investors, colleagues and everyone present here today on the occasion of the declaration of the quarter one financial year 26 results of the bank. I also extend a very warm welcome To all the people who are assessing the event through our live webcast. We have with us on the stage our Chairman Sir Sri C.S. Shetty at the centre. Our Managing Director Corporate Banking and Subsidiaries Sri Ashwini Kumar Tiwari. Our Managing Director Retail Business and Operations Sri Vinayam Tonsey. Our Managing Director, Risk Compliance and Saji, Srirana Ashutosh Kumar Singh. Our Managing Director, International Banking, Global Markets and Technology, Sriram Mohan Rao Amara. Our Deputy Managing Director, Finance, Srimati Saloni Narayan. Our Deputy Managing Directors, Heading Various Verticals and Managing Directors of our subsidiaries are seated in the front rows of this hall. We are also joined by Chief General Managers of different verticals, business groups. To carry forward the proceedings, I request our Chairman Sir to give a summary of the Bank's quarter 1 financial year 26 performance and the strategic initiatives undertaken. We shall thereafter straight away go to question and answer session. However, before I hand over to the Chairman Sir, I would like to read out the safe hour statement. Certain statements in today's presentation may be forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual outcomes may differ materially from those included in these statements due to a variety of factors. Thank you. Now I would request Chairman Sir to make his opening remarks. Chairman Sir, please.

It gives me great pleasure to present the results for the first quarter of FI 2026, another milestone in State Bank of India's journey as the nation's largest and most trusted financial institution. The global macroeconomic environment has remained fluid since June till now amidst geopolitical tensions and tariff policy uncertainties that have increased. Central banks in many advanced economies kept policy rates unchanged as the last mile of disinflation turned out to be stickier than expected while also awaiting clarity on the trade tariff front and its implications for inflation. Domestic economic activity held up in June with high frequency indicators pointing to mixed signals of improving prospects of Karif agricultural season and continuation of strong momentum in the services sector on one hand and deceleration of tax collections, industrial activity and vehicle sales on the other. RBI estimate GDP for FI26 at 6.5% and inflation at around 3.1%. The MPC in its latest meeting, as you all are aware, has kept the repo rate unchanged at 5.5% and maintained a neutral stance. We close the quarter with a 22.17% share of domestic deposits and 19.24% share of system-wide advances, reinforcing our position at the heart of India's banking system. Even more encouraging, we added 14 basis points of incremental loan market share year on year, led primarily by high return on risk weighted asset segments such as retail mortgages and secured small business credit. So why are customers choosing us in greater numbers when choice has never been wider? The answer lies in a various virtuous combination of value, brand, reach and fairness. Low to zero fee structures on everyday products, transparent pricing of floating rate loans, and the reassurance of our blue-chip balance sheet continue to attract new depositors while deepening existing relationships. Our omni-channel reach with 22,981 branches and 90 million users on our digital platform, you know, puts the bank in the pocket of customers wherever they are. Above all, we have maintained an uncompromising stance on charging what is fair, never what the market can be pushed to bear. In an era of rising rate volatility, customers recognize and reward that stance. Second, our performance is powered by people. Attrition remained below 1% during Q1 FY26. Banking here is viewed, quite literally, as a career for life, supported by clear growth paths and the sector's most extensive learning ecosystem. Our ambition is not merely to grow, but to grow profitably and sustainably. We reaffirm our structural targets of return on equity above 15% and return on assets of 1% through the cycle. The first quarter delivered an ROE of 19.7% and ROE of 1.14%, underscoring the resilience of our franchise even as funding costs normalized. Coming to the results for Q1-FI26, the net profit for Q1-FI26 stands at 19,160 crores, up by 12.48% year-on-year. At the end of first quarter, our whole bank credit growth was 11.61% year on year, with the domestic credit growth at 11.06%. Deposit growth at 11.66% year on year, while the CD ratio domestic was 68.88%. Operating expenses has decreased by 21.92% during the quarter, with containment in overheads which decreased by 37.98%. Our net NPA ratio has also declined by 10 basis points year-on-year and stands at 0.47%. Slippage ratio has improved by 9 basis points year-on-year and stands at 0.75%. PCR was 74.49%. The results for Q1-FI26 demonstrate the bank's ability to operate profitably at scale due to our substantial core strengths. These advantages stem from our institutional framework, which is guided by continuous improvement in processes and a commitment to fairness for all stakeholders, as I mentioned earlier. To keep our bank future ready and be ahead of the curve in partnering India's journey of Vixit Bharat and to realize the vision of reimagining the entire gamut of operational processes, preparation of a time-bound roadmap and facilitating the smooth transformation An initiative has been launched under SBI's operations process re-engineering project called SURL. It is a transformative step to reshape the retail operational processes across the bank. The way SBI serves its customers enhance employee satisfaction, productivity and resources optimization. The objective of Project SURL is to simplify, automate, centralize, and outsource various operational activities of the bank, encompassing retail operations, centralized processing centers supporting retail operations, liabilities, third-party relationships, and retail loan collections. Aided by modern technological tools like AI to improve productivity and resilience, while ensuring best-in-class customer service and employee enablement. Looking ahead, we expect credit expansion to outpace both nominal GDP and industry growth, driven by calibrated exposure to consumption-linked retail loans, government CapEx pipeline and green energy projects. A disciplined, risk-adjusted lens on every incremental rupee of credit, combined with our unrivaled, low-cost deposit base, gives us confidence in maintaining healthy spreads without sacrificing asset quality. In closing, allow me to reiterate what defines State Bank of India. We combine scale with agility, innovation with prudence, and growth with inclusivity. Our dominant market share is the by-product, not the driver of an operating philosophy that places the customer first. the employee at the center, the shareholder as a partner, and the nation as a beneficiary. As we advance into FY2026, we remain steadfast in our promise to deliver superior returns, best-in-class service, and uncompromising governance. Together, with your continued trust, we will keep creating value for every stakeholder in the SBI ecosystem. My team and I are now open to take your questions. Thank you.

Thank you, Chairman, sir, for the presentation. We now invite questions from the audience. For the benefit of all, we request you to kindly mention your name and company before asking the questions. To accommodate all the questions, we request you to restrict your questions to maximum two at a time. Also kindly restrict your questions to the financial results only and no questions be asked about specific accounts please. In case you have additional questions, the same can be asked at the end. We now proceed with the question and answer sessions, please.

Thank you. Sir, this is Ashok Ajmera, Chairman, Ajcon Global. Sir, the main silver lining in these results is maintaining or improving the net profit in spite of a very difficult quarter overall for all the banks where it has gone up substantially. And overall group profit also has gone to 21,201 crore as against 19,325 crore in the last quarter which is commendable. It means all other group companies are also contributing something to the profits of the bank. Having said that sir, we had a sanctioned pipeline of I think 3.4 lakh crores for the last figure given. But in this quarter, we have grown only by 0.80% in the credit. So, while I understand that yes, there was slackness, transfers, this, but still, could we not have done little better on the credit front with this kind of sanctioned pipeline? Are we reviewing those conditions of sanctions that people are not in a position to adhere to or fulfill those conditions? Or they actually don't want to draw the money. So this is, I am not talking about the fresh sanctions. Another point, sir, is on the fresh slippages, which have gone up to 7,945 crore as against 4,222 crores. And that is why affecting our gross NPA, net NPA, I mean all other numbers also in this quarter, a bit negative. making them little ah negative and of course finally the other income dropped by substantial almost about 6500 6700 crores though offset by reduced operating expenses also by about 6 and half to 7000 crore so what are the major factors in both this other income Coming down at the same time the expenditure also substantial coming down. I see one item sir in the miscellaneous income. Other income as a miscellaneous income which has gone down to 1711 crores as against 4575 crores. And similarly in the expenses also miscellaneous expenses which have come down to 1711 crores as against 4575 crores. So these are the and ultimately resulted in little lower NIM. I mean below 3 now 2.9. So sir your view on that and again any fresh guidance for the overall FI 26 on all these major parameters credit, deposit and the business growth also. If you can a little bit of cover in the recovery from return of account because our recovery otherwise also in this quarter from the main NP account is also little lower. So these are few treasury also of course must be doing well. Contributing but have not contributed as much as we were expecting. in the profitability of the bank. And last one, if you can just give a little color on that buffer provision of, I think, about 30-31,000 crore, which we had. Have we used anything out of that in this quarter? These are the few questions in this round, sir.

Thank you, Ajmer Ashab, for your compliments. But after your questions, nothing is left for the other analysts to ask. I think you've broadly covered every question. But I'll try to answer a few and then leave something for the others also to ask. Okay. I think fundamentally you are coming from quarter to quarter. The ideal way is to look at year on year. Because this quarter-on-quarter comparison, particularly from Q4 to Q1, it does not give any indication. Because Q4 generally is a good quarter across the bank, and SBI is no exception to that. Particularly the items which you mentioned in terms of miscellaneous income, other income, recovery, almost all these elements show uptick in the Q4. I think ideal way is to compare with the Q1. But still, your question in relation to the credit growth quarter on quarter being low, I would like to answer that question. But if you see most of the segments in the details, we have done well. Barring express credit, we could have done better. We hope to do well going forward in the express credit. But home loans, we have done extremely well, 15% growth rate year on year. And overall, the quarter also we have done on this segment. What has been the challenges on the corporate credit side? It is not in terms of what you said, whether terms are being renegotiated. We have not seen that. But what we have seen is that a lot of prepayment has happened in any declining interest rate cycle, particularly on the loans which are fully disbursed, one or two years old. The cash flows are stabilized. Everybody wants to refinance and negotiate for repricing. There, some of the exposures we let go. We almost had around 12,000 crores prepayments because we did not want to go to that level of pricing considering the risk pricing in view. So around 12,000 crores is something what impacted the corporate in the current quarter by their prepayments. We also had a few large corporates accessing the CP market because CP rates have become extremely competitive. And we wouldn't have offered to give that rates. So that also led to almost 16 to 18,000 crores movement towards CP market by the corporates. This is, in my view, is a recurring phenomenon whenever the rates of interest are on the downward movement. So pipeline, yes, we still have a robust pipeline. We almost have 7.2 lakh crore pipeline, both on the sanctions but not disbursed, as well as proposals in pipeline, which gives us confidence that we will be able to get back to a double-digit corporate credit growth in the next quarter onwards. Slippages again the comparison should be with the Q1 of the previous year if you see that I think very marginal moment. But let me also assure you that there is no concern on the asset quality in any of the segments we have not seen. And even among those slippages which we have witnessed in the Q1 as it happens every Q1 there has been a significant pullback. as we speak, in the last 30 or 45 days. So there is no great concern on the slippages in any of the sector. Recovery, yes, we had given a guidance of around 7,000 to 8,000 crores in recovery from ACA, which means that 2,000 crores every quarter, but it is not uniformly distributed. Again, you see my Q1 of previous year, it is almost similar to what we have had now. But we are confident that we will be able to achieve the guidance what we have given on the recovery front. And the buffer provision, we have not touched the buffer provision at all. And many other questions. Full bank. Full bank I have already mentioned around 13 to 14. Miscellaneous income again in Q4. Again you mentioned Q4 comparison. Q4 we have lot of miscellaneous income coming by way of inspection charges. Locker will come in the Q1. Inspection charges, folio charges, there are so many miscellaneous income which is recovered at the year end, which is not available in the Q1. Anything else which I missed out? No, no, SMA numbers also I have moderated. That is only, I think, again you have to see Q1 comparison. There is no untoward development.

Yeah.

I mean, we could have offset it or increase the operating profit. I mean, instead of decrease in this quarter.

No, again, Q4 you are comparing very marginal decline, but I think I request you to.

What happens is a lot of water gets flown. You know, in the last quarter, in this quarter, our figures, numbers, base, everything changes. Yes. So we cannot also at the same time compare with the Q1 of the last year. No, there are variations.

I just would like you to request to Q1 because there are variations in income booking and expenditure booking. A lot of expenditure gets booked.

What I actually wondered is nothing unusual or nothing one-off or nothing of that kind? No.

So just one point I will add. President, even if you compare the Q4, I think in the area of profit and account of sale of securities, we are more or less the same in Q4. But only in terms of forex, we always say it's a combination of trading income versus the derivative MTM movement. So this quarter, we did not experience the same positive movement as the Q4, which is beyond the banks' control as well as the market factor movement. So that's the only reason. Otherwise, the core income is continuing to contribute.

All right. Thank you.

Hello, sir. Hi. Congratulations. Sir, I had a couple of questions. Firstly, on express credit. Sir, it's not been growing and, you know, we have a lot of government employees, so they should not be really affected by the macro movements. Plus, we also have a lot of repeat business in express credit. So why have people stopped taking that repeat business? It appears to be the case, right, that even the repeat business would have been lower because express credit has not grown for a few quarters. So why have people stopped taking repeat business on express credit as well? So that's my first question. And second is what is the margin outlook from year on? Basically, they have declined 10 basis points. That's possibly a little better than expected, than what we had expected. But how does it pan out from here?

Thank you. Express credit, we have had some systemic improvements when we saw that. Some of the low net monthly income group, even among the government employees, which are predominantly our customer base, we have seen some over leverage happening there. So such segments have been, temporarily we have had a relook at it. That is in the last year. In the Q1, we have seen that NMI, EMI profile of our customers, even at the lower end of the income segment has improved. So we are again reactivating some of these segments which we have not considered earlier to be brought back. So you are right, I think express credit is basically a rollover product where people take clothes and then take and many a time their income levels also go up and they take more loans. So that is happening. Otherwise, the portfolio would not have remained at 3.5 lakh crores. And the amount of repayment which happens every quarter is phenomenal in this. Because while it is given for 6 to 7 years, the average tenure of the loan is 2 to 3 years only. That means faster repayment happens here. With this improvement, we also have what we have done is we completely reoriented the process. In the last quarter also I did mention that we have made it completely a digital process. And this also had taken some time to stabilize. People still have to come to the branch and sign the paper because in some of the areas digital documentation has not been rolled out. But we are seeing a good comeback in the current quarter. Q1 was slightly disappointing for us also we have expected the growth to come back in fact I said that we may reach double digit growth in express credit it is taking a slightly longer time to get back to that growth rate but in this quarter I am seeing a good development there in express credit and there are also some practical difficulties for example in the defence area our major segment of customers. During this, you know, disturbances, many of these defense areas were not available for access. Neither they could come to the branch or branch people could not go. That also had some impact. I'm not saying it's a major impact, but all of them have collectively have resulted in lower growth in Q1 than what we anticipated. But I'm seeing a good growth coming back there. As far as margin outlook, We are still standing by our 3% guidance on NIM. As I mentioned earlier, I think the NIM trajectory will be U-shaped. It probably will come down in Q2. While we are not hazarding it, guess how much it will come down. But I think it will definitely improve from Q3 to Q4 for two, three reasons. One is the deposits get repriced, predominantly the fixed deposits get repriced. We will also have the full benefit of savings bank account rate reduction. And the CRR yield, I mean, contribution which will come from the CRR cut. So we are seeking to achieve this in guidance. Thank you.

Excellent response to QIP. Great management and a very good fair price also. It's really phenomenal the way every member of the board managed. You got a good price, phenomenal response, you know. Largest QIP ever, over 1 lakh. To heads up to you. And good numbers. Now couple of things. And also good numbers. Quarterly numbers. Credit growth. ROE of 19.7%. Good results by the funds business and insurance business. They are given a boost. Couple of things come to the mind on particularly questions. Where you can update us. One is a slide number 23. Now what we see. Little number we can see with little scepticism that 7.88% growth in operating expenses which is very good and which gives us cost to income ratio of below 0.5. Now when we go on identifying the items, now below 8% is a little skeptical, that's what I said. Would like to know on an annual run rate basis, what can we expect? Of course the size of business will also grow, so can we expect the cost of income at 4.9 or below? to the ground level numbers you would know. Second question is, there is a huge challenging uncertainty which you addressed in the press conference also. Now this has resulted in temporary supply chain disruption in trade manufacturers who are dependent to a good extent on exports, whether in India and abroad. Now this supply chain disruptions, cancellation of orders, maybe even a 1 billion order cancellation by this Walmarts and the like, can disrupt and have a spiraling impact on the business, working capital, receivables, inventory, and the spiraling is more worrisome to all of us. Now being a premier bank, would like to know at the ground level, You would be knowing last few days the cancellation of orders. So shipments getting held up. And that can have a huge impact. Maybe disruption could be a few months. Would like to share whether we need to worry about it or the ground level PMI numbers and growth numbers seem apparently good. And how do we look at it on a sustainable basis?

Thank you. First of all, I was waiting for someone to compliment on the QIP. So show the QIP slide. I'll just spend a couple of minutes. Of course, it's well known what we have spoken widely about that. But I must thank all of you for the confidence which you have. I think some of you have definitely helped us to reach out to the investors. Even if some of you have become part of the deal, some of you have not become part of the deal. But your engagement with SBI and your engagement to help us to reach out to the investors, I must acknowledge through this forum for those people who are present here and also on the call. I think I must thank and also maybe I will request my team to acknowledge by way of an applause for all the investors. So it's not only, I think, the largest QIP ever, largest equity issuance. But what was heartening that, you know, more than 60% of the investors are cross-border investors, foreign investors who had bid for that. And we were happy to see some of the investors for the first time looking at our stock, which shows success. the confidence in the institution and also the confidence in Indian economy. So that's one. The other one is in terms of cost to income ratio, I think what you have observed is right. I think this historically low operating expenses year on year are difficult to replicate. There could be some increase in operating expenses going forward. But in the Q4, there have been some front-loading of the expenses. That also is one of the reasons why you see a lesser growth in operating expenses. But our effort, what I mentioned in my speech also, the project Surrell, what we keep talking about, is aimed at increasing the productivity. While we still are sticking to our guidance that the cost-to-income ratio, our effort is to keep below 50%. I am not giving any number whether it is 47, 45. The effort is through the cycle we would like to maintain the cost to income ratio below 50. I think that is something what I wanted to convey. As far as supply chain disruption and the tariff order, I think I did mention in my press conference and I would like to reiterate. There are two elements of this tariff narrative. One is the direct impact on supply. The sectors, there are four or five sectors we are all familiar which probably have more impact. But these sectors from a banking system perspective do not pose any systemic risk because they are not very large exposures on this sector. Definitely for SBI, very, very minor exposures on these sectors, number one. So you need not worry about the institutional credit quality point of view. But from a larger perspective, I think more than the direct impact, the uncertainty surrounding the tariffs, both in terms of investment decision, in terms of the trade disruptions, offtake, is something what we should have, definitely we have a concern. And I am sure the government of India is working very hard to ensure that The issue of tariff-related negotiations are concluded at the earliest and the clarity emerges there, while keeping the nation's interest paramount. I think we fully respect and support that approach. And from the ground level, we do hear anecdotally that there are some people who want the shipments to be held on, but we have not heard so much to cause concern at this juncture. So, this is what I can respond immediately, but let us wait and watch how it is going to evolve.

Thank you. Sir, second thing is on the monetization of assets, particularly S Bank, which we always discuss as intrinsically higher value. Now, once part of a deal was signed for a small portion, not a full portion. Now, that portion, the money does not come for a long time. Then the price announced 21.5%. Doesn't it become and the market has also gone up significantly. Should not we expect upward revision in the price?

Clearly.

These are binding offers. But the time of the payment is also important.

No, no. The binding offer is valid for certain period of time. That period is not elapsed.

Okay. Okay. So it will remain. Maybe in the next round should be higher price.

No, next chance has no control. I mean, no limitations on our either pricing ability or when do we exit. There are no such restrictions. So we are free to look at that opportunity.

Lastly, another compliment to you. Your bank is doing well in case of large fraud accounts and maintaining your highest level of ethics and follow-up action. Whoever is a... borrower, large accounts, you have done well on fraud accounts. Keep it up. We are all behind you.

Hope you get some recoveries. So one question around asset quality while you indicated that things are all going good and there is no risk lurking around but given how the credit environment is shaping up and we are seeing very high delinquencies in unsecured segment with many other lenders do you see any risk of spillover of the same to SME, MSME which traditionally have been more vulnerable segments?

Unsecured personal loan see in our SME book barring the micro loans which are essentially Below 20 lakhs, you know, the government-oriented schemes and all. Most of the lending either is secured lending or it is backed by the CGT MSC guarantee. From that angle, I think we need to say that, you know, we are well protected there. But in terms of the asset quality, we have not seen any great concern on the SMA book so far. And the underwriting of SME also has improved tremendously. As I mentioned last time also, the business rule engine which we have adopted. Now we almost have crossed more than 65,000 course worth loans which are processed using the business rule engine where the data sets are much more robust. We have GST data, income tax data, our own account statement. So we are able to, and historical default data. And we were able to develop a rule engine where the assessment in my view on underwriting has tremendously improved. And so while SME definitely is more vulnerable than any other segment, but we are confident that the kind of loans which we are underwriting today may not pose any major problems. As far as unsecured personal loans is concerned, as we keep saying, our express credit is more secured than the secured.

Right sir and so the other observation is around the cost of deposits. So we have reported a small rise in cost of deposits this quarter while we have seen like stagnation or improvement by many other banks. So how to look into it are we expecting this to inch up further before it stabilizes and come down and therefore the margins outlook any color like when we will see the bottom 2 key or can it like get delayed to 3 key also.

I think the cost of funds uptick is essentially a significant moment towards fixed deposits. If you see our FD growth rate is almost 14% and very large FD book at that. But some of the rate cuts on the fixed deposit what we have done we will get the benefit in the quarters going forward. And a fixed deposit book also will get repriced predominantly in the next 8 to 12 months. Every month, of course, there is a repricing which happens on maturity. So, and the reduction in CASA year on year also, and particularly from Q4 to Q1, that also has impacted the cost of deposits. But I am sure that I think it will moderate.

Right, sir. And lastly on the ROA wherein you have suggested to maintain ROA above 1. Now this quarter we are at 1.14 while of course it has come in on the back of significant treasury gains but does this imply that the 2H ROA will be lower than 1H?

2H will be lower than 1H? I think there will be some contribution coming from the CRR card and many other things which are in the offering. That will also improve the earnings. NIM will be improved and ultimately some impact will be seen if the treasury gains are not as robust as we are today. But I believe that that's the reason our guidance is 1 and above. We are not giving what level of above that 1, but we are sticking to our 1% guidance on that way.

Thank you, sir. I'm sure all the rest.

Hi, sir. This is Bhavik from Ingrid Capital.

Yeah.

Yeah, sir. As you rightly started, there's a lot of pricing competition on corporate and NBFC loans. So we have cut SAR dates, we have cut term deposit rates almost by 65-70 basis point. So do you incrementally take the lead and plan to cut term deposit rates further?

We will see. I think how it is playing out is not appropriate to comment at this juncture. But we will look at, you know, see earlier also I mentioned that deposit for us is a franchise activity. And as I mentioned my inaugural remarks, though it sounded a little philosophical, I think we want to take care of all our constituents. So we never want to shortchange our depositors and we want to provide and we have a large base of savers, right? And also senior citizens. So we need to take care. So, while I am not ruling out, but I think we will be mindful of those elements also while before we take the rate cut on the deposits.

Okay. I answer two more questions. So, one as in your, so the interest earned is split into three, four buckets. So, interest on what we have earned on RBI and interbank borrowings, that has kind of gone up from 1000 crores to 1800 crores. Which item is that? It's within the interest earned. Which is earned, yeah. And similarly, we have seen a sharp drop in the interest expense. Again, that is from whatever we pay to Interbank and RBI. What kind of operations were there as in any color would be helpful?

We don't give that kind of granular data. See, both our borrowing, market borrowing and market lending are depending on the liquidity management. I think it's... is not in terms of supporting any credit growth. We do not borrow to support the credit growth. It is essentially the liquidity operations. So, not any great variation in that. But the cost will come down because most of the Treps and Comps rate have significantly come down there.

Okay. Okay. And the last question, sir, NSC stake What methodology we use to value the stake in NSE Limited? What is the methodology we use to value?

Is it appropriate to talk about an individual investment on that? When the NSE gets listed, you will come to know what methodology we are adopting. I just wanted to understand what... No, no, I think that's not appropriate. And where will we stop?

Sir, Sushil Joksi in Das Equity. Congratulations on a very successful QIP. The first question is your press meet. You did indicate that you have 7 lakh crores of pipeline sanctioned and what is visible to you which is under assessment. Seeing the current condition led by US tariff, global challenges, India may accelerate domestic development of infrastructure or other schemes. led by central government or state government keeping in view that our negotiations don't go through do we sense that government has already started about roads in the press but power plants are happening because of demand led by data centre or various other factors including manufacturing PLI schemes so lot of manufacturing is coming in India and domestic consumption is also increasing any sense on this infrastructure spin would show a different colour Starting second now.

I will just give some brief and then I will ask Mr. Tiwak to supplement me. See the government capital expenditure, there is a good visibility of government capital expenditure. But I think to the extent what they have committed so far, we will have to see as we progress whether they are going to further enhance that 11.5 lakh crore commitment what they have given on the capital expenditure front. As far as infrastructure is concerned, we are seeing good inquiries on the infrastructure. In fact, some of the power related, other than the simple renewable energy like solar, wind, we are also seeing the green hydrogen and many other new emerging areas people are discussing with us. We are looking at those opportunities also. But as far as the pipeline is concerned, I'll ask Mr. Diwaj to supplement.

So to your specific point, whether in response to the uncertainty by tariffs, is there a government plan to speed up or enhance the investments? I think we have not seen that. It's too early. I think they are still finalizing what they want to do. But as rightly pointed out by Chairman, that 11.5 lakh crores plus the inquiries we are having in terms of not only the power on the renewable side, etc., but also thermal power. Because clearly the base load issue hasn't gone away and that is why the power sector is a big place where a lot of investments are planned and also already sanctioned and these will be dispersed. So there is no question of these not being dispersed and all. Similarly, in other areas, for example, the commercial real estate, both for the malls and the real commercial LRD kind of loans and also residential on the premium side. This again is seeing a lot of uptick. Mumbai city itself has so many inquiries for the slum redevelopment schemes and other similar activities. So we are seeing good opportunities there. It's still a lot of this is in planning stage, discussion stage, etc. One very large redevelopment which is happening near the airport, you are aware of that. So all of this is happening. Having said this, there are some players who are kind of putting things on hold or which they have planned earlier and maybe wanting to know more in certain sectors and some are seeing more consolidation. Cement, for example, is seeing more consolidation. Steel again, there are some plans, but again they are coloured by some developments which you are aware of. So therefore, it's overall a slightly mixed picture. But as rightly said, Chairman, that overall we still think that we might have this year still at around 10-11% in corporate growth. Right now it seems very, very low, but Ultimately, I think the kind of project pipeline we have and we are the strongest player in the project finance space. So we do hope that 10-11% is what we will end up achieving. Thank you.

Sir, most of the banks in RAM sector have shown 17-18% growth. Do you think the second half specifically after the festive season or starting the festive that RAM will get accelerated or do you think the numbers are at peak?

In our book, I think home loans we have done 15% on a base of 8 lakh crores. I think that's a phenomenal growth. But I definitely visualize that the unsecured personal loan segment and auto loan segment. Auto is not all that doing well in terms of the sales and it's also getting reflected in the auto loan segment. These two will pick up in the second half. That is what our assumption and that will have some spin-off effect on the SME also. SME, my view is that 19-21% growth rate is very robust. I don't think it will further get into a higher mode. Even if we are going at 19-20%, it is a good growth rate to have.

So second is you are enabling with lot of initiatives with digitization processes. So I'm sure you are doing an accelerated development whether new products or AI or transformation journey in the current phase. So will your digital expenditure substantially increase or the stable number would continue?

No, we've been investing in technology and digitalization significantly. And many of these initiatives what we spoke about are not very costly events. It's not that we have to spend a lot. It's more in terms of the re-engineering. That means, you know, you look at the process and see what are those redundant steps which we have not looked at for quite some time. And another element is if you really ask me what would be the major investment coming forward would be a build-up of our own AI stack which we are undertaking. But that does not require any great amount of capital expenditure.

Second thing, any plans on listing of any of your other subsidiaries?

No, as we mentioned that we definitely have a couple of candidates for listing, but the timing is not very, there is no sense of urgency there, I believe. And you all have helped us to raise 25,000 crores now.

I think the markets are in good shape despite the global challenges. The only thing is the right choice. You started with RCL on offer for sale a little bit, but there will be multiple other things.

No, there are a lot of things which we have been participant, you know, CIL, NSDL. So wherever the opportunities are there, we will definitely look at.

Thank you for answering all my questions. Good luck for the year.

Hi, sir. This is Jai Mundra from ICICI Securities. Sir, first on your margins, you said 3% for the full year. This is global or domestic? Domestic. Okay, sure. And secondly, sir, if you can call out the amount of bulk deposit that we have, you know, that probably will reprice at a much faster pace. If you have that number, how much is it?

We do not discuss.

Sure. Secondly, sir, on SME, right, so we have been doing very well for the last 9-10 quarters, 15% plus growth on a consistent basis. Okay. Would you have any visibility on the self-funding ratio? So usually a lot of other banks when they go reasonably well in SME, I mean they get to own the float also in that business because these typically may have only one or at max two bank. Would you have some visibility that, you know, what is the kind of self-funding that we are getting from these SME pool now?

See, most of these SME loans are full banking loans. Very few have consortium arrangement, which means that the whole cash flow is routed through our cash credit account. If that is what you are looking at, yes, we have a good visibility of the cash flow. And we actually insist that the whole cash has to be routed through us. And that is one of the key conditions.

And just break up only, if you have the slippages, break up for this quarter, especially in agri and retail and maybe express credit.

Do you have that?

Yeah. And, sir, our other retail, right, so express credit and then other retail, just ballpark, I mean, what are the key products there, apart from home loan, auto loan and gold loan, there is some other large.

Yeah, other P-segment loans are educational loans mainly. And pension loans, we also have pension loans. And loan against fixed deposits. That's also a very popular product in our book. Sir, if you have the quantum there or the lap, sir, do you do lap or? We don't do much lap. We do lap, but not very significant. But even if it is there, it will appear in the home loans category.

Sure, sir. During the time, if you can just quantify the number of education loans.

That's not a big number anyway. No, education loans. We will be able to give the break up. There is absolutely no problem.

Thank you, sir. Sir, can I respond to the slippage part? So, in SME, the slippage is 2680. SME is 2680. Agriculture is 2464. Personal is 2602. Total is 7746. And there is some small slippage in CCG, 196 crores. The total is 7942. Out of which 1585 has already been pulled back.

Thank you, sir. All the best.

Hi, this is Piran Engineer from CLSA. So just a couple of questions. Firstly, on the power sector, we have seen that NBFCs are growing faster than banks. Last few years since this power sector, CapEx has taken up. Our book is Flat YOY. Can you just give us some commentary of why this is happening? Are the risks still high in this segment? Because the yields are pretty good, north of 10%. Why aren't banks participating in this business?

I don't think there is any... We are extremely oriented towards the renewable energy which is coming up. Even on the thermal capacity addition which is happening, I think SBI is there. But some of the NBFCs, what you are mentioning, are focused on some of these renewables, for example. So obviously their book will be much larger than what bank books are. So the three NBFCs, what we all know, are actively involved because their mandate is to finance the power sector. So obviously their book will be always larger. And they're also diversifying their book from the conventional DISCOM and GENCO funding to renewable financing in the private space. That is where you see the growth coming for them. But we are not staying away. We are very actively involved in this space. Sir, but then our growth is like 1% YOY. No, see, the challenge in the renewable is the typical short-term execution there. Execution is just less than 12 months. The moment the project is up and running, either they will go for refinancing or most of them are moving into invoices also. So that gets refinanced and the churning happens faster in the renewable space.

Thank you. And so secondly, when we talk about our NIM trajectory and aspiration to reach the exit FY26 NIM at par with exit FY25, what assumptions are we making on like further, I think someone asked this question on further rate cuts. Are we assuming that we will cut rates further to reach that NIM? Or is it simply just repricing of term deposits which will help us get there? And are we assuming CASA ratios to also decline like they have been declining for the banking sector?

So our assumptions are broadly the following. One is, you're right, I think more than the further rate cards, we are building our model based on the repricing. As the book gets repriced, that benefit will be available, both on the savings bank and as well as fixed deposits, right? The second thing also considers the CRR cut. Almost 52,000 quotes get released, which is not currently earning anything, right? So that will also add to the NIM. And we believe that the policy decision of not cutting further rates have established that the retail segment, the rates will be stabilizing on the asset side. So all these elements give us confidence that, you know, the NIM trajectory is what we have assumed. Understood. Thank you, sir, and wish you all the best. Thank you.

Sir, this is Anand Dama from MK Global over here. Sir, you said that there will be a release of about 52,000 from CRR. We have 25,000 odd girls coming from capital side. Do you believe that the 12% growth that we have now at this point of time can become 13%? Hopefully mortgages also should see a pickup in the second half of the year with the rates coming off. Do we are not seeing at this point of time any signs? What is our view on the overall growth and particularly the mortgage growth if you can share?

So the liquidity and capital has never been a constraint. Even earlier also we had adequate CRAR to support the credit growth. While this 25,000 definitely has augmented our capital, it was, as we mentioned earlier also, it was mainly for confidence capital or improving our CET1. So need not be linked to our ability to fund growth. The growth capability was always there. In terms of the liquidity, again, you know, we had one of the lowest CD ratios. And we excess SLR of almost three and of lakh crore. So these are not going to really move the needle. This is not about supply issue ever for us. It is always in terms of what demand is coming in the market. That's the reason we are still sticking to 12%. And as the uncertainties get cleared, probably there is a potential upside of 13%.

Okay, so that is it. And on mortgage, if you can just share some info, because we're not seeing any pickup on the ground as of now, despite the rate cuts which have happened.

You see a 15% growth rate in home loan.

Yeah, that is for us. But otherwise, when we speak to a lot of other players, they're saying that... I don't know.

I think... At least we are seeing that good amount of sourcing of applications, sanctions, disbursements, and we probably have historically high level of sourcing going on now as we speak.

And, sir, secondly, do you expect that the ECL norms will come this year now?

ECL? Yeah. No idea on that. Thank you.

Thank you, sir.

Yeah, so Kunal Shah here from Citigroup. So firstly on express credit, so we have been very comfortable with less than 1% NP over there. Now it's gone up to almost 1.2 and that too on a flat book. So where do we see eventually GNPAs in express credit stabilizing? Do we see further inch of the way it has been like last four, five quarters or most of it is now recognized?

So the absolute number has not moved much. It's only the base effect because it's almost stagnant. The book is at the same level. That is actually resulting in the uptick. We don't see major concern in terms of the asset quality in express credit. We may still have some pullback happening on that.

Okay. And if you can share AFS reserves number, so that would help.

Do we have AFS reserves number?

Yes. 7,700. Last time it was 6,600. Some attrition is there.

Okay.

Yeah. Thanks.

We have a few questions coming in through the online webcast now. These will be addressed by the chairman, sir, now.

Yeah. The first question is from MB Mahesh from Kotak. If you could give us the income from return of accounts. Q1 FI26, 1,229 crores. I think it's mentioned in the presentation. Q1 of FI25, it was 1,008 crores. Kiran Shah, can you please give the breakup percentage of your loan mix in terms of based on external benchmark like repo, others and fixed rates? Our MCLR book is 30.69. EBLR is 30.24. Fixed rate is 22.58 and others which includes T-bill link pricing of 15.93. Savrabh Kumar, what is quantum of IT refund in last Q4 FY25 and this quarter? This quarter we did not have any IT refund. IT refund in Q4 was 1319 crores and IT refund in the corresponding period last year was also nil. Aman Nahar, Arman Nahar from Blue Sky FinTech. Do you think pain in unsecured segment MFI have come to an end? I think we never had any issues in our unsecured book as well as our MFI exposure is minuscule. But we believe that from a system point of view, there is definitely an improvement in the asset quality in the unsecured loan and MFI segment, while a lot of upfronting in terms of cleaning up the book by MFIs is also one of the reasons why we believe that situation is better now. Dipanshu, how QIP funds will be used in future? As I mentioned, it is not in terms of... Growth capital, it is definitely to augment our CET1. So today, after this capital raise, the bank assets, the available buffer is 233 basis points over minimum regulatory capital. So we believe that this supports adequately our growth plans. Vishal Gutka from Ask Investment Manager, what is driving such sharp increase in current account balances? given other peer banks are grappling to collect current account balances. So the current account growth has come from both government and non-government accounts. We definitely, you know, focused on many initiatives such as creation of specialized hubs and deployment of dedicated workforce. Relationship manager for current account also are there to look specifically into it. But more than the quarter end balances, what we are witnessing to our pleasant surprise is the quarter on quarter improvement in the daily average balances in the current account. Chintan Joshi, can you give us colour on what you weighted average saving deposit cost? The weighted average cost of saving bank deposit as of June 25 is 2.68%. Radhika Khan Chikar from HDFC Ergo, what is the outlook for slippages? We had slippages of 7,945 across Q1 FY26 out of which There has been some pullback. So we are still sticking to our slippage ratio to contain the slippage below 0.6%. Rohan Mandora from Equiras. Why did your cost of deposit increase during the quarter? Also what is the share of bulk deposits? I already explained that the CASA ratio decline as well as TD significantly increasing is contributed to the cost increase. But we expect it to moderate. And normally we don't disclose the bulk deposit related data. Rohan Mandora again, what is driving growth in SME segment? Is it largely working capital demand? Any signs of initial stress that we may be seeing in the SME portfolio? And our asset quality in express credit has held up well, but we have slowed down the growth in that segment. Is there a lack of good quality demand? I think both these questions I have answered. I don't want to repeat again. As SBA continues to scale its digital banking footprint, how are you envisioning the integration of AI-led underwriting and behavioral risk scoring across the UNO and SME platform in the next quarter? As we continue enabling our digital document execution for the BRE and non-BRE journeys under LLMS, that is Loan Management System. We also have auto renewal journey on the BRE loans, integration of vendor verification module and many things what we are using AI also will be there. As I mentioned, AI stack is something which we are setting up. So this would help us. underwriting BRE is essentially using the you know machine learning models and we probably utilize AI to set the patterns today we are using predictive AI models we also intend to use the gen AI models going forward and with customer migration to the alternate channel end to end digital channel products will be launched I think this is broadly the questions from the calls thank you very much

i trust all the questions have been addressed we'll be happy to respond to other questions in offline mode let me end the evening with thanking chairman sir md sirs dmd madam top management team analysts investors ladies and gentlemen we thank you all for taking time out of your schedule and joining us for this event to round off this evening we request you all present here to join us for high tea which is arranged just outside this hall. Thank you. Thank you so much.