Thank you very much. The first question is from the line of Sameer Bhise from Dymon Asia. Please go ahead.

Congrats on a fantastic set of numbers. Just wanted to understand the provisioning breakup for this quarter. Given that it is slightly higher on a sequential basis, does it also involve any floating or standard asset provisions? I can also see that PCR has gone up. But if you could elaborate the thought process here, I think it will be helpful.

See, we had INR74 crores provision for NPA vis-a-vis INR40 crores for the last quarter. And the provision for tax is almost stable at INR85 both years and the standard asset provision increased from INR7 crores to INR22 crores. See, the logic is when I hand over, I have to reduce the NPA level as much as possible. And we have achieved our targeted ROA of 1.5 percentage plus, and we are going for higher provision to improve the coverage ratio and also reduce the net NPA numbers.

Yes. Okay. Fair enough. And secondly, if one were to look at incrementally, how should one look at slippage ratios going ahead because we are entering -- we are now on a reasonably strong growth trajectory and also share of retail assets continues to inch up. So if you could comment on that, especially for FY '27, if you can share some thoughts, that will be great?

See, basically, for many quarters now, the total recoveries of live NPA and technically written off NPA together are more than the slippage numbers. And using that and also having some incremental provision, we were slightly behind the pack in terms of gross and net NPA percentage even last year, which we have caught up to a greater extent. Whenever we feel that gross NPA and net NPA numbers are comfortable and we can go for higher profits, we'll be taking the call, and we will be reviewing that situation. And probably Vijay will also concur with me like based on that decision, the incremental credit provisioning will be decided.

The next question is from the line of Anand Dama from Emkay Global.

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 sir, basically, we had a repricing on deposits, as mentioned in my commentary, almost INR14,200 crores got repriced. This is from the deposit side. And from the advances side, we have moved to fixed rate in gold loans. So that is now stable. And in MSME also, we are targeting the numbers what we are supposed to as well in retail secured. I think the combination of these factors is helping us in getting it right.

So do you expect the interest on loans to go up further?

I don't think so, sir. Quite difficult.

Yes. One more thing which you have to keep in account, Anand Dama, the reduced CRR ratio also is helping us. And also, we are operating at a slightly inched up average CD ratio, all are helping us to have a better margin.

Okay. And that basically gives you confidence that in fourth quarter margin should be largely flattish.

Yes. That's why we have -- like us -- as usual, we have given plus or minus 10 basis point band.

And sir, how should we look at FY '27? Should the margins be in the range of about 3.9% or should inch up further some?

Ask for 1 quarter at a time. The -- you are still not sure how the RBI rate cuts are, going to move. There are multiple factors which we have to look into. But whatever that happens, our endeavour is to have 3.75% to 4% is what we had done in the previous cycle for a few quarters. That stability is what we are targeting and trying to work out.

But assuming there is no rate cuts, then you should expect a stable to better margins next year?

Yes, yes.

Sir, secondly, what is driving up your other opex during the current quarter? It was INR254 crores versus INR230 crores last quarter. Is it more related to business or there was some one-off over here?

No, I think it's almost same. It was flat. We are at INR455 crores in Q2, and we are at INR484 crores. So majorly, it's going to be technology expenses and salaries, nothing much.

You've largely taken the Labor Code impact, right, this quarter itself?

See, fortunately, we are not getting impacted because right from the beginning, our calculations on the retiral benefits and all are based on the basic plus DA basis only. It was not purely based on the basic. And also that both the things would come above 50% is also not making any impact to us. Only thing is impacting us in a minor form is the gratuity you have to give for even 1 year, unlike what it was 10 years in the past, for which we don't expect a big impact and all. We have not yet got the actuarial calculations from LIC which is managing our fund. Expecting those things, we have made a marginal provision of INR2 crores for the current quarter.

Okay. And sir, ECL provision you made last quarter. This quarter, you not made any ECL...

This quarter also about INR4 crores, INR5 crores we have made. So this quarter, we have not made any incremental provision for ECL.

Okay. So you expect you to make this quarter?

Yes. See, basically, after that SMA numbers are coming down, we are keeping a tab on that and trying to look at how we can take it forward.

Sure. And sir, lastly, RBI supervision would be over by now, hopefully, you would have got the final report. Any observations over there in terms of PSL or anything else?

No. I think if you remember, we had that hit about 3 years back. After that, this cycle is over and nothing to market.

The next question is from the line of Haresh Kapoor from 360 One Capital.

So my first question is your gold loan portfolio in agri has declined 2% on a Q-o-Q basis. So anything to read into that? That's my first question. My second question is what proportion of the deposits are yet to be repriced in quarter 4? And my third and the last question is within the overall advances, last time around you quoted that there is INR500 crores renewable energy portfolio, which is slightly higher yielding than your core MSME portfolio. So just within the overall advances, what proportion is the high- yield portfolio? And what would be that proportion, say, 2, 3 quarters down the...

So gold loans we don't expect much. It's almost -- it's an agricultural gold loan, which has come down. And again, based on the season, harvesting and other things. So we don't expect that I think it should be back to normal. So nothing much materialistic in this. With respect to your next question of repricing of deposits, another INR1,782 crores to go. This is a repricing which is going to happen in the next couple of quarters. So this is on your second question. Sorry, I missed your third question. I'm sorry, sir.

Yes. So third question was, so last time in the last quarter's con call, you had mentioned that you have started doing renewable energy portfolio, which was around INR500 crores end of Q2. And there were certain other segments where you are earning slightly higher yield than trying to understand what are those segments? And what would be the proportion of those segments, say, 2, 3 quarters down the line?

I think you are linking what we got from the IFC. The purpose is kept for the solar. And many of our customers are asking and that is a slow and steady progress. And our expectation is that we should be able to complete that before the completion of the calendar year 2026. So the progress is slow and steady without much issues so far.

The next question is from the line of from Pritesh Bumb from DAM Capital Advisors. Please go ahead.

Congrats on a great set of numbers. Just a few questions. One is that what is the growth outlook from here on? So we've seen a very strong loan growth. You had guided in the last quarter that we may also do something around 18%, 20%, more than that. So how do you see that from here on?

Sir, as I explained in the summary, we are expecting it to high teen. So we will continue to grow like this, high teens.

And sir, if I want to ask a follow-up on that is what CD ratio we are comfortable on from here on...

Want to be between 85% to 86%. That's the number we are looking at.

85% to 86% is where we are comfortable at Right. Sir, can you give some data on this how much is EBLR fixed MCLR as a share in our loans?

EBLR around 48%, MCLR around 17% and 32% by way of fixed rate for gold loans and 3% towards gross NPA.

Okay. Got it. And last question was on write-off. We've seen write-off going up a bit quarter-to-quarter. Last quarter, we had -- quarter-on-quarter, it has fallen, but as a number still looks like we're growing about plus INR1,000 crores. So what is the thought process there? And what is intervening that write-off?

Kamakodi here, there are thought process involved in this. One, wherever we have made maximum provisions and all, we are using this opportunity to reduce it so that the management of gross and net NPA will be better. And number two, it also helps in the taxation purpose also. So considering both -- and you can also see that we continuously have a decent stream of recoveries from the return off assets. Even this year also, we had a very reasonable sum. So these technical write-off is one instrument, which we are using for quite some time, and we feel comfortable with that. And our future also, we feel we will be continuing with the same methodology.

Sure. And sir, if I can squeeze one more. Our tax rate has been consistently lower at about 20%, and we managed to keep that for some time. So can that continue for some time more, given -- is there some rule there? You mentioned about write-off.

It will go as far as we are, let's say, once again, depending upon how much write-offs we are doing and how much incremental provision we are making. So it will take a comprehensive step on all these parameters put together. This will probably continue for at least another 2, 3 or 4 quarters, maybe even to the completion of the next year. And future will be depending upon increase in your NPA, slippage cycle, which we hope we should be another -- not less than 4, 5 quarters away.

The next question is from the line of Rohan M from Equirus Securities.

Congrats on good set of numbers. Sir, in the previous -- in the repo cuts which have happened up till now, we have been able to manage by not transmitting the entire cut to the borrowers. So, for the 25 basis point cut that has happened in December, like will that be a complete transmission or we will be able to manage with lower cut? And has that got reflected in the yield this quarter?

Yes. Whatever the rate cut which has happened by December, this has completely got transferred to the customers, and there is nothing much left in EBLR.

So, effectively 25 basis points has got transmitted?

Yes.

For all the loans which are which are in EBLR. So, we have 30 percentage in gold loans. Those portions will not get that. So that is why the overall impact will be less than 25 basis point. And just to give you our overall annual impact because of this rate cut comes to about INR40-odd crores, INR45 crores, which translates into about INR11 crores per quarter because of this last rate cut whatever we had. And one thing is that in this third quarter, it has happened only towards the last one month or so. But this impact will be there for all the three months in this current quarter. But you will be having that compensation from the benefits we are getting on the repricing of term deposits, which Vijay Anandh gave a figure of about INR14,000 crores to INR17,000 crores or something like that. So, with that, taking both these things into account only, based on our expectation that our NIM will be by and large stable, may even have an upward bias, but will be in the band of plus or minus 10%.

And sir, just on the yield on the MSME portfolio, how would it have moved in the last 9 months, whether March to December?

MSME, we are maintaining at 9.5. The yield is more or less same. So there is nothing much material. Broadly no changes in the quarter, sir.

March also it was -- it would have been at a similar in March?

By and large, yes, same.

Plus or minus 10, 15 basis points.

And sir, on the standard asset provision of INR22 crores this quarter, is it only linked to the increase in the balance sheet or is there any other component here?

Only increase in the balance sheet.

And sir, with the reduction in SMA, where do we stand on the ECL requirement -- ECL provisions versus requirements?

We have, in fact, discussed about this in the -- I think last quarter or I think even on the second quarter, we discussed that at length. And we are seeing negative bias even in that requirement in the last couple of quarters because of the lower SMA numbers. You can probably get the details from last quarter con-call, we have discussed at length on these numbers.

Right. Sir, but as per the assessment, as of 3Q…

I also clearly said I will not be giving any exact number till other banks give the exact numbers. I stand to that statement. I will not be the one of the first banks to give that. But directionally have given everything possible with which you can make your own assessment. And after I declared that, there is still downward bias on that requirement is what I can add.

The next question is from the line of Subramanian K. from Itus Capital. Subramanian K.: Congrats on good set of numbers. My first question is, what are the segments in retail facing competition and how is the yield for each segment has changed after the rate cut?

So, retail -- our major focus is on LAP and home loans. And of course, we are leveraging our rural branches for affordable home loans. LAP, I think we are down by 20, 25 bps what we used to do before. What advantage we are getting is our DSA sourcing, so- called third-party sourcing is negligible. We don't go beyond 10, 15 percentage. So that's giving us a benefit. So as we speak, the LAP is around 9.4, 9.5. Affordable in rural, we have been consistent with the brand sourcing and that's giving us a double-digit yield. So there is -- in home loans, we are always at around 8.8% to 9%. That's been our core thing.

Yes. Just to add to Vijay Anandh's comments and also just to give a right perspective to your question, after RBI rate cut, at industry level, we are not seeing any equal or substantial reduction on the new files procured. So, by and large old rates are holding up because of liquidity position in the overall industry. And we had a few weeks when we could even negotiate increase in the rates also. But overall speaking, on weighted average basis, there is some downward push, but it is not exactly correlating with the 25 basis point rate cut. It is somewhere in between. Subramanian K.: Got it. My second question is on the deposits. So, deposits is currently growing at a low teen base. So, going forward, how do you think this will be growing at a high base?

See, we have given, like, adding the CD and other things, both have grown by about 21 percentage is what you are seeing from one point to point basis. And for us, what we have seen is that it is not that every quarter the growth rate of deposits and growth rate of advances will match. There are fluctuations here and there. As explained by ED, Mr. Vijay Anandh, the focus for us is on retail term deposits and also granular CASA. And we don't have anything to currently suggest that the deposit growth will not be matching with the credit growth or whatever it is. Both deposit and credit growth on overall business basis on a, what do you call, one year full basis. As suggested by ED, Mr. Vijay Anandh, it will be in low to mid-teens. Now we are saying mid to high-teens. Some amount of positive bias we are able to see. And we don't get any threatening now to suggest that we will not be having sufficient deposit growth and all. That could be quarterly operations. To manage that liquidity position only, we have made trials on the certificate of deposits and understood the process and all and keeping it as a backup. One or two-quarter liquidity management can be done by that. But overall growth rate of our business will be from the retail term deposits, granular CASA, and also on advances front MSME, gold loan, and secured retail.

The next question is from the line of Param Subramanian from Investec.

Firstly, on the quarter-on-quarter opex growth, so there is no meaningful change in our channel sourcing or payments to DSAs or any such thing, right, because the quarter- on-quarter opex growth is up. And if not, what is driving this? Some colour and how we should think about this going ahead.

Very negligible for DSA payout. As I said a couple of minutes before, the DSA sourcing is hardly from 10% to 12% for us. So there is no DSA…

Just to give you a perspective, in third quarter, there will be a provision for the Diwali bonus and things like that. Last year, if you look into our salary increase between Q2 and Q3, it was INR178 crores to INR196 crores, about INR18 crores growth -- last year, it happened in the fourth quarter. And some amount of quarterly aberrations will be there based on when we give the variable pay and other things for these things. So there is an increase on salary between Q2 and Q3, about INR6 crores, INR7 crores and about INR30 crores increase in the overall operating expenditure. In that, depreciation also increased from INR25.7 crores to INR29 crores, another INR4 crores. Like that, in different items, another item basically on GST taxation payment. So it increased from INR12.25 crores in the Q2 to INR21 crores in the Q3, about INR9 crores. So this, the INR35 crores -- INR29 crores incremental cost, the breakup is coming from about Q2 to Q3, breakup of increased salaries about INR3 crores-INR4 crores. The GST payment by about INR8 crores-INR9 crores and the depreciation about INR4 crores- INR5 crores. Like that, it is getting segregated among multiple headcounts. Depending upon the situation, it is overall cost-to-income ratio, whatever we had indicated during the year beginning, it is holding up and feel, in fact, there is a small reduction in the overall cost-to-income ratio also.

Fair enough. So largely all business as usual. So nothing…

Nothing abnormal in the pattern between Q2 and Q3.

Okay. Fair enough. Sir, next on the gold loans, if you can tell us what is the LTV on sourcing, roughly, and on book also?

At the onboarding time, it is around 65. When you add the interest for the one-year period for all the non-agri gold loans, it comes to 72 or 73.

72, including the interest, okay. And on your book basis, on average, roughly, you would have an idea?

After the increase in the gold price, it is worked out around 55% to the overall portfolio.

Okay, so fair amount of equity is there. Okay, that part is clear. Thirdly, sir, how to think about growth going into FY '27? I mean, I heard in the opening commentary, we are clearly surpassing our normal trend line. This is our best growth since FY '18, as you called out. But how to think about growth going into next year?

So we have given, what do you call, a lot of sentences on this question asked. And you are asking a question for which we have not any -- we don't have any written answers with us. But what we can -- you can infer is that we earlier, we said we will be growing from low to mid-teens. So now we say mid to high teens.

Okay, fair enough. Congratulations on the quarter, sir.

The next question is from the line of Gaurav Jani from Prabhudas Lilladher.

Congrats. Just one question on the gold book, right? You mentioned 30% of your total book is gold, right?

Yes.

Okay. And that is fixed rate. So what would be the tenure of these loans?

Okay. So within 12 months, these can be repriced.

Yes.

Thank you. As there are no further questions from the participants, with that, I now hand the conference over to management for closing comments.

Thank you all for attending this conference. And if you have any more questions, you can always contact Mr. Jayaraman or our ED, Mr. Vijay Anandh. And as I explained to you, I have successfully completed my 59th quarter. And so far, so good. Things have been working out well. And I think going from here, on every parameter, you will start seeing improvement. So, with these few words, I once again thank you all for joining and also thanks to Ambit for arranging this. Thank you all.

Thank you. Ladies and gentlemen, on behalf of Ambit Capital Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.