City Union Bank Limited CC-Nov25.pdf · 2025-11-03
See, it depends upon how we want to have the net NPA and all. It will be a comprehensive call. So, the only thing that we have a clear-cut visibility on is that we will be having our recoveries more than the slippages, as we have seen in many quarters. So, that trend could continue for a few more quarters. How much we provide, what is going to be our target net NPA, all these things we will be taking a call as and when it comes.
See, Mundhra, if you look into regulatory announcements where even in the last policy changes, how much reduction in the rate happened, and how much got passed, and all was given for the industry level. And our numbers are also by and large matching. So, in that, there are two things. One, not only that from last year, that 30% gold loan became a fixed rate. In fact, we also had a marginal increase in that portfolio, which has helped us to maintain the margin to a greater extent. Just to answer your question directly, whatever margin you have seen now is basically that we could manage both cost and also by the proper repricing. Because, as Vijay Anandh earlier told, the term deposits which are maturing currently are at 8.1. So, when they get repriced at 6.75% and maybe 7% for the senior citizen, for that portion, we get a good cushion. And the fixed rate gold loans also give that cushion, and that is why we were able to not only maintain the previous quarter net interest margin, but also we could have about 5%-6% basis points. These variations in the interest recovery from the, what you call, NPA, will vary. Like last year, like I said, last quarter it was INR 7 crore, INR 8 crore, and this time INR 15 crore. It depends on things. There is nothing lumpy or anything that has happened here. It is very difficult to predict beyond that.