Yes. Good evening. Sorry, I did not catch it properly. You said that there has been a release of INR121 crores, which you have not written back. So it would have been written back in the gross credit cost? Is it means the provisions would have declined by INR121 crores. Is that what you meant?
Okay. But since you already have been tightening over the years, your provisioning policy, why did you not choose to write this back?
So my question is on credit cost. So if you see the provisions, while it's a very low number, it's a small number, there's huge volatility across quarters, right? So last quarter, it was INR72 crores and this quarter, it's INR12 crores. So how do we think about it going ahead? How do we model it because it's so volatile? And then write-offs remain elevated. So when do you see those coming down? And you said that the trajectory of credit costs will be down in the next 2 quarters. Could you guide to a range? Will it be substantially below 9%? Any range? And last time, you had said that you would like to wait for some time before giving guidance on what credit cost - - where credit costs would normalize at, right? Like over the next 1.5, 2 years, do they go down to the old levels of a little higher than 6% or they remain in the range of 7%? That's -- those were my questions.
Yes, was the provision. So this write-off and provision, yes.
So my question is on credit cost. So if you see the provisions, while it's a very low number, it's a small number, there's huge volatility across quarters, right? So last quarter, it was INR72 crores and this quarter, it's INR12 crores. So how do we think about it going ahead? How do we model it because it's so volatile? And then write-offs remain elevated. So when do you see those coming down? And you said that the trajectory of credit costs will be down in the next 2 quarters. Could you guide to a range? Will it be substantially below 9%? Any range? And last time, you had said that you would like to wait for some time before giving guidance on what credit cost - - where credit costs would normalize at, right? Like over the next 1.5, 2 years, do they go down to the old levels of a little higher than 6% or they remain in the range of 7%? That's -- those were my questions.
Yes, was the provision. So this write-off and provision, yes.
My first question is on the Credit Cost. Your ECL reset happened in the 1st Quarter and the 4th Quarter credit costs were lower. So, when you say range bound , because the reset is done, do you think it reverts to the 4th Quarter level or range bound at the 1st Quarter level?
Okay. And in terms of receivable growth, it's down to 7%. So , we are still confident of 13% to 15% for the year. Maybe 13-ish or early teens?
I had two questions. Firstly, on growth, when do you see it improving to, say, mid-teens, right? Because I guess a bit of discussion on this happened last quarter as well. But what is your view now? When do you see it improving to mid-teens? And there has been already a lot of discussion around margins. But all I want to know is that will you -- I mean, usually, credit card yields are quite sticky. They don't fall much, and they don't fall very steeply like, say, home loans or other rates. So, are you expecting to cut yields? I mean, how does it -- I know that the investment book can reprice. But just in terms of card yields, are you -- would you be doing major cuts as the rate cut cycle progresses? Or how do we view this?
Got it. Got it. And just one clarification. There is no regulatory nudge on credit card yields as such, right?
Hello, congratulations. My first question is on your outlook on margins, right? You already expanded margins by 24 bps over the last two quarters. So, where do we see margins from here on, given that the growth in mid and high segments is already very strong. So, I guess it will stabilize from here on. So, what is your outlook on margins for the next 2-3 quarters, assuming no further rate cuts? And even for the longer term, where do you see them stabilize? And my next question is in your fee income on the distribution income. If you could throw some light that was not very strong this quarter. So, those were my questions.
So, you usually have a T+1 repricing except for new loans, right? So, part of the repricing would have played out this quarter or no?
My first question is on margins. So we've already done a good job on margins. They've come out better than expected or even better than guidance. How do you -- do you expect them to improve further in the second half? And then in terms of the CASA ratio, right? So once balance sheet growth picks up, you've consolidated in the segments, which were low yielding and grown in mid-yield to high yield. But once overall balance sheet -- once that consolidation through, and I believe it should have been through last quarter. But once that is through and when overall balance sheet or loan growth picks up, how will CASA behave? I mean, just now the growth is also low. So o verall deposit growth is low, that is also helping the CASA ratio. So that's my first question.
Okay. But from -- so 3.06% is the current NIM, what is the normalized level of NIM, say, over the next 1 to 2 years? I mean, would it be 3.3x? Or what is the normalized level...
I had a couple of questions. Now that you already started focusing on maybe loans and there was progress on that even in the fourth quarter, and do we expect that most of the consolidation on the lower yield segment is done? And can we return to the high teen loan growth in next year, that is in this year FY '26? That's my first question, and then I have a few others.
Yes. Okay. Then in terms of deposits, congratulations on the strong growth in current accounts. You had already -- that was the key takeaway even in your strategy day . But is most of it very sticky because for many other banks, the year-end CASA is not very sticky. But given that you've kind of started on a low base, will most of it be very sticky a nd will stay on the book. And also in terms of margins, right, there are many -- I mean, there are many more or at least 2 more repo rate cuts expected? So where do you -- and then you will have an uptick in your mid -yield proportion. So what according to you is the level of margins below which you will not go overall for FY '26, right? Because the EBLR book is a high proportion. If you just do a rough math, it shows a big decline. But then the loan mix is also changing. CASA is also improving. So where do you see the bottom of margins in FY '26? These are my questions.
Hello, good evening. I had a couple of questions. Where do you expect the full year and the next year credit costs to settle? I understand that there were holidays, but even so, there is like a 54% increase in SMA-0, which is the sharpest. I know you explained, but even so, where do you see the SMA-0 set and you gave some October number, but where do you see the SMA-0 settling in the third quarter? And also, if you could highlight on the credit cost? That ’s my first question. My second question is that your PPoP margin, right, PPoP-to-assets has really fallen to a low in the 2nd Quarter. And it hardly cover, I mean, there ’s very little margin now to cover the credit costs, right? So, how do you strengthen the PPoP margin ? Because the book will play out in terms of the change in mix and its impact on margins. So, what are the levers we have to improve the PPoP margin to take care of the volatility in credit cost? And my third question is that in the Bihar election manifestos of opposition parties, debt waiver figures and a lot of soft to self-help groups figures are being talked about. So, how much of that would you expect to rub off to MFI in case these things come through in Bihar? These are my questions. Yes.
How much did you cut your MCLR by, say since April?
Hello. My first question is on credit cost again. So, in terms of your guidance, the credit cost guidance will stay here as in at 1.25 to 1.35 for 18 months. That is because of the below 3 -lakh segment, or just because of the earlier strong growth which leads to the seasoning of the book?
Got it. And just in terms of growth accelerating in the second half and then even more in FY'26, do you see any green shoots for growth or was there some growth that you were earlier avoiding and now you feel more comfortable doing? And of course, I heard you on the bit of housing growth or affordable housing that you would be looking at?
Hello, good evening. So, my question was just on the ECL working. So, would it be fair to assume that the base would be somewhere on September 2020 that would be the referral base? Is that why the credit cost looks very high, though your asset quality seasonally has actually seen improvement? And then, if the base is adverse, does it continue into the next year as well as we roll forward? So, that was my question on ECL.
My second question was about the base next year, like when you do that. But now it will be this year itself, right? Because you will refresh the ECL in March. So what is…
So, my first question is that how do you view disbursements from here on? Like any rough outlook on what the disbursement growth would turn out to be given that there are some segments identified with higher risk or lower yields, which you don't want to now b e doing. So, a brief view on disbursal growth. And then most of the margin improvement would be driven by cost of funds only. Would that be the correct takeaway? And the third question is on asset quality, right? So, do we see the PCR stabilizing here now? How do you view it? Because the improvement in the fourth quarter in the 2, 3 has been very minimal, right? So compared to other fourth quarters, which you had already alluded to. So, it's not as if you had not guided to it. But how do we view it from here on? Is most of the stress over now? How would asset quality and ECL pan out?
Thanks a lot.
Hi. Welcome, Rajiv. It is good to have you on the call. Just a couple of questions. So, now that you have spent a few months, what is the rebalancing in the book you would like to do, maybe in favor of a few assets, in favor of a few lending segments, any such thoughts? I mean, basically, I know you will share your detailed strategy at some point in time with us, but just wanted to get a sense of what kind of normalized margins would you be looking at in a one year out or two year out time period?
Got it. But what would be the timeframe to reach 1% RoA?
Yes, I just wanted to know what happens to the unvested options of Girish?
Hello! Good evening, sir. Sir, I had a couple of questions. Firstly, in terms of margins, so most banks are guiding to some sort of a recovery or stabilization in the second half. So, that may have been well understood. But in the second quarter, how much do you expect margins to fall -- will it be more than 11 basis points that we have seen in the first quarter or will it be lower or higher, like a rough ballpark would really help?
Because the last repo rate cut would have been passed only for less than a month and the full impact will come in the second quarter. Even then, you would see NIMs holding on?
I had a couple of questions. Firstly, how much of your deposit, retail deposits would have already repriced? I know it's over a year of repricing, I mean the repricing cycle, but how much? 15%, 16%? How much of your term deposits would have already repriced? That's my first question. And related to that, where do you see the bottom of your margin? I know that you may have a full year margin guidance, but they may fall and then they may rise. So, where will the fall settle? That's the second question in your assessment. And then again relate d to that, so the current account deposits have declined very sharply. I know there has been some reclassification as was evident by the business update you gave a few days ago. So, is it fair to assume that it was these deposits which caused the March '25 numbers to change in the Quarterly business update? So, were the current account deposits reclassified as borrowing? So, that's the spread related question. And then I have one PSLC question. If you could explain why the PSLC income fully disappeared and then with the new clarification on the gold loan circular, in what quantum do you see it coming back and when? So, these were my questions.
Hi, good evening. So I had a couple of questions. Firstly, on your margins. So just wanted to recap on your method of repricing on EBLR. So following a rate cut, in how many months does the book, the full EBLR book reprice? Or at least the repo book? And just wanted to make sure that the repo, the EBLR linkage is around 65 %-67%. So that's my first question. And my second question is on growth. Obviously, there's hope that it will recover, but it's only slowing in the interim. So what will trigger growth from current levels right? Because in the first quarter, even HDFC banks, growth was subdued and so was everyone else's. So what will trigger growth? Because it's been falling over the last two quarters for the sector.
Good evening. So I had a couple of questions. Firstly, on this technical classification. So we have seen technical classifications earlier on corporate by many banks. Just as late as last year, there were PSUs who had slipped a central government account as technical. But what actually happens in all these technical accounts is that they get upgraded in the next or the next to next quarter. So usually technical accounts are such that there's a nature or an element of their recoverability in the forthcoming quarters. So are the technical downgrades that we have done recoverable immediately or they are recoverable through sale of collateral as in recoverable sorry that's the wrong way to put it. What I'm trying to ask is are these technical downgrades likely to be upgraded to standard or they'll be recovered because 80% of them are secured. So which bucket or which classification do they fall into? So that's my first question and my related questi on to that is that if these technical slippages would not have happened, of course I can understand that the stock has been recognized. But if these technical slippages had not happened then would your flow of slippage on a run rate basis settle at lower than what you will see in the next few quarters and likewise for your credit cost? And then thirdly, there's a, I mean, we've usually seen technical slippage in corporate and most of your slippage is in retail but you've also called out OTS, cash credit and overdraft. So I'm assuming that cash credit and overdraft will be classified in non-retail and only OTS gets classified in retail. These were my questions?
Sure. Thank you.
Hi, so my first question is on asset quality. You said that you have tightened provisioning policy and that could impact FY '26. So could you just quantify whether it will be like an immaterial impact or a material impact and what has tightened, because you are already following a much tighter provisioning policy on unsecured, so what would have changed? And also, in terms of the security receipts, the write-back of provisions that you see on NARCL SR, so would you have reversed the complete provision that you had or you would have left something as buffer? So that's my question on asset quality. And my second is on deposit growth. So, if you see the period end year -on-year growth, then it's a bit below the sectors. Now that liquidity has improved and RBI has clarified even on its LCR stance, do you see deposit growth coming in line with the sectors in FY '26? So these are my two questions.
Thank you.
Congratulations on your capital raise. I had a few questions. Firstly, what would be the maturity of our average duration of your term deposits? It's 13% to 15% for most. So what would it be for you?
So it will be 13% to 15%. Okay. Okay. And then would you be able to share any proportion between your low-value and high-value savings, so say like below Rs. 10 lakhs, what would be the savings and then above how much, roughly any proportion?