Can you help me like what is the LCR for quarter?
You plan to maintain it around these levels or you want to take it up?
Questions across 29 calls
Anand Dama
Emkay Global
The Federal Bank Limited
Yes, sir. Thank you for the opportunity and congratulations for the strong operating performance. My question is on the stress again , like you said that microfinance, we have seen a stress in this quarter. If you can quantify what the stress is in microfinance and I believe our portfolio is towards Kerala ra ther than Karnataka or state where there were ordinances related impacts. So, what basically led to this kind of higher stress in microfinance? That is my first question. Second, is that CVCE book that also seems to be now freezing out and so business Banking, can there be some surprises over there in terms of asset quality that you see going forward?
Yes.
Bandhan Bank Limited
Sir, thank you for the opportunity. Sir, one question that I had was on your credit costs. So, this year, should we expect a credit cost somewhere about 1.5%, 1.6%? Now that the EEB stress obviously is easing out, and I think initial impact will be largely taken through the balance sheet. So, is that a fair assumption in terms of credit cost for FY27?
Okay. And are we largely done with the sale of NPAs pull now?
Sir, the labor code impact that we have given is about Rs 120 crores, mainly towards gratuity. Is there any more provision to be made towards leave encashment or pension or provision fund, which possibly would come in fourth quarter? And if yes, if you could?
Okay. Any ballpark impact that you feel that could be there?
Sir, first question is on your SMA -0, where I think you said that you started billing on the holidays and that's the reason the SMA portfolio has gone up. Can you explain like how is that happening and what is the industry practice? Secondly, your SMA-1 and 2 portfolio has actually gone up now. So what explains that market moment? Is it specifically states likes West Bengal or Assam or there is something more to it? Number one. Number two question is that when do you see your 5% of the Bandhan Plus 3 portfolio unwinding, whether it will take another about 6 months for that portfolio to unwind, whether ultimately, theoretically, it has to go down to 0, right? Also when that unwinding will happen?
My second question was about when do you see 5% of your Bandhan Plus 3 portfolio unwinding?
City Union Bank Limited
Congratulations for a good set of results. Sir, what is basically driving up our margins? We saw your interest on advances actually shooting up this quarter despite most players reporting a rate cut. Is it that last year or basically earlier on, we had a lot of interest reversals, which is not happening now, or the incremental loans are basically coming at a better yields. The MCLR-related regulatory issues that we had, that also seems to be largely behind. So what basically explains the jump in the interest on advances that you're seeing at this point of time?
So do you expect the interest on loans to go up further?
Sir, first, I mean, you had a margin expansion during this quarter. I think there was some non- core part as well because the future margins have expanded. What is that contribution in terms of margin expansion, if you can explain?
I think you had talked about some interest in IT refund, and I think your investments that is also coming on the high side.
Yes. Thank you for the opportunity. Our growth has been trending very well at about 16% Y-o-Y. Whereas you said that you would want to grow 2% to 3% above the system. So that's more of just a statement and you would continue to grow at more than 15% or 15% to16% range? Or you believe that this growth run rate will actually come down during the year?
So do you really see any micro disruption or any asset quality risk on the SMA space? So to say, that there will be some risk on the growth trend in next 6 to 9 months?
Yes, sir. Thank you for the opportunity. Wanted to check, sir, how do you see the retail portfolio shaping up in FY '26 and FY '27 because you have been very strong on the gold loan front, housing is also your strong forte, which are the new products that you are going to introduce or scale up number one? On people front, have you made any new changes? Have you hired some new team as such, in the retail team as such, and whether that will have an impact on the overall cost in FY’26? I think in the initial comments you talked about some increase in the cost. Is it more related to the retail business as such or there is something more to it?
Great. Sir, on your SME book, wanted to check, like now that the rates have been cut. So are you passing on all the rate cut to the customers or you are trying to delay that by few months by increasing the risk premium because the macro disruptions are certainly up there? And so you can always increase the risk premium. Are you doing anything of that sort and that is basically the reason why you seem to be more confident on the margins front or maybe in the guidance seems to be more optimistic as compared to what one would have expected it to be?
Punjab National Bank
Thank you for the opportunity. Si r, what explains the sharp fall in your investment yield? And how do you see margins on a quarter-on-quarter basis? I know that for a full year, basically, you have downgraded the margin guidance. But on a quarter -on-quarter basis, how should we look at th e margins here on? And if you can explain why the investment yields have fallen on a quarter-on-quarter basis?
But sir, if you look at from where it has come down, it was about 6.9% or so. And there from...
IDFC First Bank Limited
My first question is on your capital raising. So you have raised INR7,500 crores. Obviously, the capital is yet to come. Any covenant changes which have happened in that? And is there any risk that basically this capital, particularly from the investor side , not talking much about the regulator, but is there any risk that you see from the investor side that possibly this capital might not come or there could be a delay in that? Is there any risk that you see?
Not at all? Okay. Sure. And secondly, on your credit cost. So where do you see your overall credit cost settling for the full year? Secondly, your cost -income ratio also has come down in this quarter to about 69%. Obviously, business, there will be some gr owth, which will actually kick in basically during the year and because of which the DSA cost and possibly might go up. So where do you see your cost-to-income ratio settling over the next 3 quarters? And also, if you can give a guidance on the overall credit cost for FY '26?
My first question is on your opex. I think you said that 18%, 19% of opex will go down to 13%. Any 3 to 4 key drivers that you see where basically you will see this kind of a cost reduction going forward?
Is it better now?
SBI Cards and Payment Services Limited
Thank you. Is it possible for you to spell out what the overall credit cost would be for the full year? I believe you said that it will be somewhere between what we have seen in this quarter and our 4th Quarter, but still like it could be around the 9% that you are expecting for the full year despite the flow rates coming off and the sale impact largely been taken care of?
Sure. So, basically, is the higher leverage levels the reason why you are not so confident on the credit cost coming down meaningfully at this point in time? Or are there many other things at play?
RBL Bank Limited
Good results compared to what I think was expectation after the third quarter. Sir, number one, is that you've been saying that microfinance is where there will be a contraction? Or basically, the pickup will take some time. Card is where I think you were expecting an normalization to happen. But if we future forward ourselves into next 2 to 3 years, what will be the share of microfinance and cards as a percentage of our overall portfolio?
Yes, exactly. I expect that to be lower, but what could be that l ike? Could it be around 10 -odd percent or 10% to 15% in next 2 to 3 years? That's a fair assumption?
Sir, you said that credit card slippages also should come down in fourth quarter, whereas the micro finance slippages might remain elevated in the fourth quarter. So in fourth quarter, if we continue to make these kind of provisions with no one-off gains being there, can we expect that we might run into a net loss in fourth quarter? And from first quarter onwards, I think we are entering into a far better zone where we are largely done with the heavy lifting in terms of provisions and micro finance and credit card and then on we'll move on away from -- maybe, say a better thing from p revious quarter, is that the right understanding?
And secondly, sir talked about cost control, CASA and credit costs. So I think the other factor certainly will take time. But on cost front, what exactly are you planning to do in FY '26 to control it, that maybe if you could just elaborate on?
Basically m y question is on the staff cost. So this quarter, you said that there were higher payouts. There were I think increased collection cost also, because I think you have hired lot of employees. So how do you break that into kind of – how much you have hired and how much basically the cost will come down in the 3rd quarter...
And secondly, on the credit card, you said that the slippage obviously will gradually normalize in the credit card too. But what about the collection of the loans, which have actually become delinquent in the second quarter because of the transition?
IndusInd Bank Limited
Sir, what explains the higher slippages in the tractor , small CV segment? And also, if you can provide the MFI exposure in the state of Karnataka, where there are basically new rules coming up? And do you see any impact of that on your portfolio?
But do you see any early signs of stress building over there because of this new laws coming in?
The Jammu & Kashmir Bank Limited
Sir, there was a notification regarding appointment of RBI Nominee Director on the board. So, wanted to clarify, is it a new appointment or there was a nominee on the Board and if not, then basically why there is an appointment of RBI nominee?
Sir, secondly, now that we have a new state government altogether. In the past, we have seen intervention from the state government. So, how are you seeing, are you sure that you not have spent too much time in the Bank, but any intervention that you see from the state g overnment? And secondly, there was this capital infusion, which was supposed to happen from the Ladakh Government. Whether that has happened or any timeline that you see when it will get….
Karur Vysya Bank Limited
Congratulations for great share of results. S ir, the first question that I have is related to higher other income. So what basically is the treasury gain during the current quarter, recovery from written-off? If you can provide some...
And how much was treasury?
AU Small Finance Bank Limited
So first, basically, I think at the beginning of the call, I think you alluded that the margins have actually improved quarter-on-quarter because of the lower cost of funds. Is it possible for us to tell us like what's the pro forma merged NIM for fourth q uarter? And how basically -- what is the kind of improvement that we have seen during the current quarter?
And sir, secondly, it is good to see that basically you've started again building contingent provision. But a specific PCR has been slipping down now to about 65-odd percent. Is it possible that we will inch it up during the year to close to about 70 -odd percent, while we also continue to build the contingent provisions? And basically, whether the credit cost guidance that we have given includes this kind of increase?