Analyst - Ashok Ajmera, Ajcon Global earnings call questions

Indian Overseas Bank CC-May26.pdf ·

Compliments to you sir the entire team of Indian overseas bank for the fantastic result, not only for this quarter but for the whole year i mean mind-blowing numbers, if you look at the entire, I mean deposit, advances, business, everything, total business has gone up by 20.76% and the credit is 24.16%. Deposit which has been a challenge for many of the other banks has grown by 18.03% against very modest targets given by you of 12 -13% or 14-15%. So, you really deserve rich compliments for the same, sir. Having said that, I got a couple of, I mean, some questions, some observations from my side. The one thing which I observed is that in the presentation, and here also on the presentation given here, the SMA numbers have not been disclosed. So that will give a better picture about any kind of stress coming forward now with this West Asian crisis also and the geopolitical other uncertainties. Is there any pressure in the month of March or are you feeling something in April now also? Any pressure of that kind, especially from the MSME clients or some small clients, or some export clients on that front. So, this is my just first question if you can answer that. My other observations are that now with this ECL now guidelines finally coming out from RBI and you have written there that you have got a buffer of 1750 crores in ECL. In this quarter only you have given 250 crore more through that and you also got old COVID-19 amount also of about 900 crores. So, with that, are you comfortable taking care of your ECL requirement, expected credit loss requirements? So, if you take it up these two, can I then, or shall I talk about all other points now only?

Sir, point well taken, sir. And it's very good to know that you are going to take care of the entire amount and not going to spread over either one, two year or five years, which is allowed, which is good to know, strengthen the balance sheet. Having said that, some data points are the employee cost in this quarter has gone down by almost about 340 crores and other operating expenses have gone up by about 200 crores. So, employee cost has gone down because of the bond yield adjustments or is there any other reason and how much per quarter run- up we can take up for the coming year 2026-2027.