Yes. My question is on gold loans. So last 2 years, we have increased the mix from 25% to 30% currently. So till where would we be comfortable? And also what would be our outlook on gold loan going forward, especially if the prices don't move up, slightly declining going forward?
Questions across 6 calls
Akshay Badlani
HDFC Securities
Karur Vysya Bank Limited
Yes. Hi. Thank you for taking my question. My first question would be around the commercial loan book. Our average ticket size has been increasing in the last 2 -3 years. I just wanted to understand, is this by strategy that we are going for higher ticket sizes or some, in terms of asset quality, if you could get some color as to amongst the ticket sizes that we disclosed is the higher ticket size performing better or something like that?
Understood. And would that be like yield accretive or because probably in lower ticket sizes , it would slightly be more ROA accretive?
Union Bank of India
Yes. Hi, thank you for taking my question. So, on the credit cost, just wanted to understand, so why, like we used to be around 65-75 bps kind of an average run date. We have come down to 10 bps as of now. So, is it largely because of slippages coming down or is there some one-off in terms of write backs or recoveries that we are getting that the credit cost is at this range? And what would be your steady state credit cost that you would guide for, going forward sustainably?
Understood.
City Union Bank Limited
There is one question. It is around the asset quality, especially in the MSME book, because we have been growing that book for the past few quarters. And overall, how do we see the asset quality, and what would be a guide for the credit cost overall? Are we seeing the credit cost declining at a normal average run rate? Or is this probably a one-off quarter, or how do we see that going forward? Because overall, we were thinking, the stress was building up in MSME. But how are we seeing, you know, are there any pockets somewhere if there is more stress, or overall, the stress is receding?
Just one more question on the PCR. So, I think PCR has increased this quarter as well. Where do we see it settling going forward? What would be the comfortable level for us for the PCR number?
Bank of Maharashtra
Given the fact that the ECL provisions, the impact is Rs. 100 crore to Rs. 125 crore per quarter. So, what are we sensing in terms of a credit cost, like a sustainable credit cost guidance, if we could get? Also given the fact that our tax rate would get normalized also maybe to some extent in FY'26 or '27. So, what could be the normalized credit cost range that we are looking for?
This is including the ECL impact as well that we will additionally provide for the next four to five years, right?
Thank you for taking my question. The first question is more on the strategic side. I think whenever we see our MSME , NPAs, overall asset quality in the MSME book, it stands out compared to other PSU banks, so what are we doing separately? Or what are we doing differently compared to other PSU banks that our underwriting has been superior for quite some time now when we compare it to other PSU banks?
The second question is around the OPEX intensity. I think this quarter, we have added around 850-plus employees and you had mentioned in your opening remarks as well that we are focusing on new recruitments and higher equipment. My question is, what exactly is the way we are recruiting now, how has it changed vis-a-vis earlier how we used to recruit or from here, which segments used to recruit? Secondly, when I see the OPEX for this quarter, it's not reflective of the additions that we have made in the employees and branches. Is that impact going to kick in, in the next few quarters? Or is it something else?