Good set of numbers. Congratulations. Couple of clarifications to questions earlier asked. One is on the debt level; did I hear the figure right that INR1100 crores is your gross debt number as of 31st December '24?
So does that mean that it has come down by INR170 crores? Because as of 30th September, this number was INR1,270 crore from what I can see.
The question I have is that on the cost side, it has been a very benign environment driven by some write backs on account of pension provisions as well as way below normalized cr edit cost. So, the question is that as we look forward to the next 2 or 3 years, what do you think would be a sustainable cost to income ratio on the operating side and what would be a sustainable credit cost number? And with that in mind, what do you thin k would be a reasonable long-term ROA and ROE target if I may ask?
And so, my conclusion from what you just said is that the increase in fee-based income will offset the normalization of credit costs with the ROA being possibly in the area what we are seeing now on a sustainable basis?
The question I had related to the provision that you have made during the year for frauds in the notes to accounts amounting to 2 41.76 crores, which is roughly, you know, give or take about 25-26 basis points of your loan book. So, I just wanted to ask, I mean, how do you look at this number? Is this higher or in line with what the Banking sector generally experiences and should this be ongoing or other systemic investments you are making towards technology and various other things, are you likely to see this number go down? How should I think about this?
So, this would be similar to what other Banks in the system are also experiencing.
Congratulations on a very, very, strong quarter and wonderful result. So I had a few questions one is of course the ESPS, I saw that the ESPS is still not being considered for capital adequacy calculations. Where is that process now?
Okay perfect that is great. Second is that your cost to income ratio has obviously improved better growth in balance sheet and the growth in net interest income and profits after tax has also grown so I wanted to ask, when you think about the next two to three years, where do you think the cost to income ratio can go? Do you think that a target of somewhere in the early 50s is possible , how are you thinking about cost to income ratio?
The question I have is that as you look out for the next 2 to 3 years, how do you expect the various levers to move? I mean, I see the revenue mix improving or margin mix improving. At the same time, cost to income should stabilize once your branch rollout is over, but credit costs should normalize. In conjunction to that, where do you see leverage going? What would be an acceptable level of leverage? And therefore, in the medium -term, say 2 to 3 years from now, what kind of ROE expectation would you have, assuming the credit cycle remains without accidents?
Second question I had was that what are you seeing on the ground, I mean, I heard the comments from the credit team and there seem to be no worries at this point, but what we're also seeing is a slowdown of industry in general. And in that context, how confident do you feel that the self- employed and the i nformal sector borrower will not be cause for pain point? I mean, are you seeing anything on the horizon that worries you?
So, my first question is with the net interest income drop, right? You have the yield compressing and the cost of borrowing going up. Now, I understand some of the yield compression is because of the change in mix, corporate going to retail and leaning towards salaried. So, I have multiple questions here. One is that, how do you get the drop back up or do you think that this is the new normal? Number two is linked to that; this is the AA+ rating, what does that do to your cost of borrowing? What should we expect the net interest margin or the spread to look like both for the 4th Quarter as well as for Fiscal Year ‘25? That's my first question.
So, if I think about, you know, could you quantify the benefit on cost of borrowing both from the NHB refinancing that has become available to you as well as the rating upgrade? I mean, quarter on quarter, the cost of borrowing declined by one basis point. I mean, what do these two events mean to cost of borrowing?