Canara Bank (CANBK) Q4 2026 Earnings Call Transcript

Good evening, everyone.

We welcome Canada Bank's Q4 FY26 earnings conference call. I would like to thank the Canada Bank management team for giving us the opportunity to host this call. From the management side, we have with us Shri Hardeep Singh Anuwalya, MD and CEO, Shri Bhavendra Kumar, Executive Director, Shri S.K. Majumdar, Sir, Executive Director, and Shri Sunil Kumar Chuk, Executive Director. With this, I now hand over the call to MD, Sir, for his opening remarks, post which we will start the Q&A session. Thank you, and over to you, Sir.

Good evening to all. Let me first share the highlights of Canra Bank results. So, our global business stood at 28.0 lakh crore, and it grew by 12.11%. Our global deposits grew by 9.71% and stood at 15.68 lakh crores. Our global advances grew by 15.30% and stood at 12.37 lakh crores. Net interest income. For the quarter was 9,808 crores. It grew by 3.88% YOY. Our operating profit for the full year is 33,019 crores and it grew by 5.19%. Our net profit for entire year was 19,187 crores and it grew by 12.69%. Our provision coverage ratio improved by 151 basis point and stood at 94.21%. Our credit cost it reduced by 33 basis point and stood at 0.59%. Our GNPA for the entire year, there was a YOY decline of 110 basis point. It stood at 1.84%. Our net NPA, there was a decline of 27 basis point year on year and stood at 0.43%. We are proposing a dividend of 210% of paid up capital. And our share price is 2. So, the proposed dividend is 4 rupees 20 paisa per share. Our, the credit, your advances growth was led by RAM credit. RAM credit grew by 19.73% and stood at 7.30 lakh crore. Retail credit grew by 32.93%. and stood at 22.96 lakh crore. Housing loan grew by 17.55% and stood at 1.24 lakh crore. Vehicle loan grew by 26.33% and stood at 26,070 crore. MSME credit grew by 12.85% and stood at 1.57 lakh crore. Our earnings per share Improved by 12.68% and is at 21.15. Our CRAR improved by 71 basis points and stood at 17.04%. Our slippage ratio 12 month is 0.69 which declined by 21 basis points. So, these are the all key highlights of our performance. Joining me is Shri Bhavinder Ji, Shri Majumdar Saab, Shri Chuk Saab, and all my vertical heads to take all your queries and answers. Thank you.

Thank you. We will now start the question and answer session. Participants who have a question, please raise your hand. The first question is from the line of Mr. Ashok Ajmera. Thank you, and over to you, sir.

Yeah, good evening, sir. Good evening, Ajmira sahab. Aliwalia sahab. As far as the business is concerned, the business growth is good. I mean, especially if you look at the credit growth, you have grown in this quarter also by 3.79 or 80%. And overall, for the whole year, 15.30%. So, on the business front, there is no concern. I mean, you are growing well, much above the targets which you had given. But, sir, however, there is a pressure on the profitability in the bank. I mean, both the operating profit and net profit has gone down, which is generally not seen in the other PR-4-5 banks of your size. That the operating profit has gone down by 2,361 crores as compared to the last quarter only, where I can understand in which there must be some gain of that HSBC Canada, the treasury front, but still the treasury income also has gone down even comparatively also if you net it out from 1,050 crores to 272 crores. And the recovery from the return of account also which generally should be better. In the in the March quarter has also gone down to 1646 crore against 2051 crores in the last quarter. So, sir, on the profitability front, and that has resulted in a much lower name than the expected and the target. Also, I think your quarterly name was 2.54 and the overall annual name is 2.51. So, On that, I mean, is there something special which has resulted in this lower profitability in the bank and coming forward, those issues may not be there? How do we see the now coming quarter and the coming year now in view of these results?

Ajmera, sir, if you see that our NIM improved 9 basis point and our net interest income, it improved 549 crores. If you compare our peer banks, so our NIM has improved, our net interest income has improved. Only as rightly pointed, why there is a drop in operating profit and net profit by 2300 crores. So, sir, last quarter, we had listing gains from Canra HSBC and Canra Rebeco of 1930 crores. So, that was substantial enough. Secondly, due to geopolitical situation, the bond yields moved from 6.59 to 7.05. And the share market corrected by 4000 basis point. So, this has resulted into MTM losses of 800 crores. This may not be going ahead for the quarter, this may not be there in the June quarter, but the one-time listing guesswork factored in the last quarter of 1930 crores. And regarding the TWA recovery, generally our TWA recovery hovers around 1500 to 1600 crores. If you see last year for the full financial year, the TWA recovery was 6800 crores. And in this financial year, it is 6500 crores. So, in the total TWA recovery, there is no substantial dip, but only some high ticket resolutions come in a particular quarter, but normally it hovers around 1500-1600 crores per quarter.

Now, sir, yeah, point well taken, sir. Even I had analyzed it that there was some additional profit in the last quarter because of those two listing gains. But having said that, sir, now these two things are clear now. The RBI has given the clear guideline for the ECL. So on that now, As far as the provisions are concerned, how much buffer provisions to take care of that or the planned provisions, which we already have in our books, and how do we plan to meet now going forward the provisioning norms as per the final guidelines given by RBI?

Sir, if you see that our SMA is best in the industry, it is only 2.75 percent, while the advances is growing up. In absolute numbers, our SMA is coming down. In December 25, our SMA book was 35,000 crores. Now it is 33,728. So, although the advances is going up, our SMA is coming down. Now, coming to the ECL part, now, sir, on ECL front, stage 1 and stage 3, both all almost at par with the IRAC norms. Our PCR is 94.20 for stage 3, it is adequate enough. For stage 1, it is at par with IRAC norms. Only at stage 2. We see that in stage 2, the regulatory floor has been moved from 0.4 to 5%. So, additional provision will be required and we presume it will be 2500 crores. And the probability of default in stage 1, stage 2 and stage 3 will be additional 2500 or maybe it may range up to 5000 also. And additional non-fund requirement will be 2500, total requirement will be 10,000. And it can be staggered to four years. And our profit is in the range of 19,000 to 20,000 crores. So, bank is in a very good position to absorb the entire in the first go itself. If we absorb in the first go itself, then there will be a drop of 1% in the CRAR. And bank is adequately capitalized. Our CRAR is 17.04, much above the regulatory level.

Yes, sir. So, you are well prepared for that. Sir, now, going forward, the government has also announced, because you also referred that there is some geopolitical situation, which is, I mean, which is building up now in the pressure. In fact, in the March, the effect might not have been seen because of the West Station, this West Station war also. But now, I think you must have started feeling the heat. And government is equally, you know, being a proactive measure, has announced ACLG 50, creating a lot of buffer, I mean, two and a half crore rupees of the plant, this thing. So in our bank, have we calculated that how many customers, I mean, how much amount the customer can use through this line? And how are we prepared for that? And will it not add to our credit growth which we have already planned? Will it not give a fillip to it?

Are you feeling any stress already? Sir, see this quarter our slippage was 2771 crores. Last year, in the same quarter, it was in the March, because we have to compare from the previous March only. So, last year also, the slippage was 2,702. This year, it is 2,800 crores, roughly. So, it is in the similar levels. So, in the March, what happens, sir, some MOCs are, because branch audit is conducted across the country. So, some MOCs are, we should not compare from the December. We have to compare from March to March. So, we do not see any stress building as on date because it is almost at par with the previous March. And out of this 2771, 1333 is for MSME. So, MSME, some slippage has been observed, but not through that exposure. And coming to your point that ECL 5, bank has already worked on that one. And the entire portfolio that is affected is about 90,000 crores. And the additional exposure will be around 18,000 to 20,000 crores. Definitely, it will give some flip to the advances.

So, going forward, sir, there is no concern, according to you, and no concern has been, I mean, is building up even in April, May also, because of that war situation.

No, sir, if you see our slippage ratio is 0.69%, and our SMA is 2.75%, both are industry-based, actually. So, as on date, no concerns, and going forward, this ECL-5 will definitely help the affected area. All right, sir. Thank you and all the best.

Thank you

Ashok sir. The next question is from the line of Param Subramaniam. Param, you are unmuted. Please go ahead with your question.

Yeah, hi, sir. Thanks for taking my question. Firstly, on the advances growth guidance that you've given of 11 to 12 percent, so we have closed this year with 15 plus. So any reason we are calling for a moderation in the credit growth next year?

No sir, actually bank has a tradition of giving some conservative numbers because GDP growth is projected at 6.9% and we have seen what earlier guidance has been given by us and accordingly it has been projected. I am confident that bank will end up much above the guidance numbers as it ended up in this financial year. Perfect, sir. Very useful.

So, secondly, on the PSLC, sir, some of the private banks are, you know, they are facing issues on their PSL compliance. Would it be fair to assume our next year our PSLC income will be higher than this year? Or any comment you can give on that?

So, PSLC, sir, continuously our PSLC income is around 2500 crores, we derive that income and this year also we are confident that we will derive this PSLC income because we are above in priority sector credit, we are exceeding all mandated norms. So, definitely, we will gain advantage out of selling the PSLs.

So, sir, it should be similar to FA26 next year? Yes, sir. Yes. Okay, okay, okay. Sir, and the comment you made on ECL, I understood the one-time impact, but on the run rate impact of how much it can affect your, say, credit costs on a run rate basis. If you could speak a bit about that, say, from FY28, and whether a bank can still sustain 1% plus ROA even after implementing ECL on a run rate basis.

Sir, our credit cost is continuously coming down. That is because our SMA in absolute number is coming down. If you see that the SMA from 3%, it has come down to 2.75%. And so slippage will be hovering around this range only. So we don't see any threat in coming up.

Sir, even after implementation of ECL, you think you can maintain similar credit cost guidance?

I presume that we will maintain this.

Okay, sir.

Because our SMA levels have come down substantially. Yeah, fair enough. In December, in absolute terms, the outstanding was 35,604. This year, it is 33,000. In March, this is 33,728. So although my credit is growing at 15%, and if you compare from last March, last March 25, my SMA book was 40,481. Now it has come down to 33,728. So, I am confident that I'll be able to maintain this slippage numbers and credit cost.

Okay, sir. One last question. Sir, on NIM, you have given your guidance, but will you have passed through the entire December rate cut? And from here, how do you expect margins to trend, say, from first quarter onwards? Because your guidance is 2.5 to 2.6, on a trajectory basis, if you can.

Sir, you see in this quarter, our NIM improvement was 9 basis point. So, already we are very, very, because our credit growth is very high at 15.30. So, that places us uniquely to negotiate on pricing. So, we are not entertaining low yield advances. We are capitalizing on expanding RAM credit. And we are very, very conscious on bulk deposits, pricing of bulk deposits. So, the combined effect, our NIM has taken an uptake of 9 basis point on this quarter and 1 basis point cumulative. So, we presume that it will over around 2.5 to 2.60.

Very useful, sir. Just your LCR number, if you can share. That's my last question for this quarter.

So LCR was 118%. It is much above the regulatory level of 100%.

Okay, sir. Thank you so much and congrats on the call. Thank you, sir.

Thank you, Param. The next question is from the line of Jai Mundra. Jai, you are unmuted. You can go ahead with your question.

Hello, can you hear me? Yes, Mundra, sir.

Namaskar. Namaste, sir. Hi. Sir, a couple of questions, sir. First, just a clarification, sir. On gold loan, how much is the total gold loan outstanding in retail and non-agree?

Sir, my gold loan portfolio is 2,45,000. Okay. And out of which agriculture is 1.54 lakh crores. The remaining non-agree is 91,000.

Right. Okay. So, okay. So, that is good. So, that has also grown, right? So, last quarter was, I think, 2.2 trillion. It has now become 2.45 lakh crores, right? So, the gold portfolio, even on a QOQ basis, is growing at a decent pace. So, going ahead, do you see that now this is a 20% of the overall loans? Would you believe the growth here to be single digit or you believe it will still be in double digit even though it moderates? Is there any thoughts there?

Sir, it will be in double digit because traditionally our number of branches are high in South India, sir. Here people don't place on deposits. That is why we are lacking on one side, we are struggling on CASA. But on asset side, we have this advantage of gold loans. People are more comfortable going to branches availing this gold loan. So that is why we are confident that it will grow with the same pace.

All right.

Okay. Sure, sir.

And, sir, on ECL, right, you mentioned that, you know, SMA 1, I mean, total SMA you have given, but if you have the number separately for 0, 1, and 2, I think that will be useful. If you have the number separately for 0, 1, and 2 together.

SMA 0 is 10,961. SMA 2 is 9,732 only. SMA 1 is 13,035. So, the total is 33,728.

Okay. So, SMA 0 is 10,000. SMA 1 also around 11,000 and rest 900 only.

SMA 1 is 13,000. SMA 0 is 11,000.

Right, sir. And, sir, on your provisioning, right, so, and ECL and provisioning, I think few banks, they have said that they want to raise capital, maybe for ECL, because asset quality across banks have been, you know, much stronger and there is a strong growth in regulatory capital also. So your thought process, sir, if ECL, like you mentioned, 100 basis point impact, which seems very moderate, even if because you also have five years, any thoughts on capital raise or any need for that, sir?

Sir, our profit ranges between 19,000 to 20,000 crores. So, this will continue, I think, for the next year also. So, if need required, we will go for capital raising. And since it has not moved to the board, once board permissions, then I will share it with you. I think within couple of months, we will share that number with you.

Okay, sure. And lastly, sir, on your NIM question, you mentioned a stable NIM guidance going ahead, but sir, you also raised TD rates in the month of December and January by around 3035 basis point. So, how should one look at cost of term deposit or cost of deposit on a blended basis? Do you think that cost of deposit now has bottomed and even including Q1, FI27, this should start inching up or you think that the blended cost will still decline?

Sir, we are very conscious on pricing on bulk deposits and CD. So, we work on the blended model only and we are very conscious what is the rate of inflow and what is the rate of outgo. So, that margins we keep always in mind while quoting price. That is how our NIMS have improved in this quarter.

I don't know, sir, going ahead, do you think, because we raised, not all banks have raised term deposit rates, we did in December by around 35 basis point. So I wanted to check, sir, has the cost of deposit bottomed out or you think because select maturity only have raised interest rate, but you may still gain on bulk or otherwise. So how to look at the incremental, sorry, the blended cost of deposit?

Sir, why we had raised, because our retail term deposit, even after raising, was much cheaper than the bulk deposit rate, and the idea behind to have a more flow in retail term deposit rather than bulk deposit, and that is what exactly has happened in the fourth quarter, which benefited us, and our cost of deposit has substantially came down, if you see.

Great. Great. Okay.

That is what you see. That is why you can see the fantastic impact on net interest income of 549 crores you can compare with peer banks. Ours is much better. Correct. No, no, sir. Absolutely.

It is much better. And sir, I just wanted to check two things since you mentioned peer banks. If you have the number of corporate loans or the overall loans which are linked to pay bills, that is one. And, sir, we have a TW recovery of around 6,500 crores this quarter, this year, as a full year. If you have any number which goes to NII line item out of this NPA recovery, because that may or may not grow as much as the loan growth, right? Because the TWA recovery. So three things. One, TWA recovery outlook. Number two, TWA recovery that goes to NII line item and see the T-bill link corporate loans. Thank you.

So, sir, in T.W.O., your interest income on your T.W.O. advances, so it ranges about 350 to 400 crores. Almost it contributes to every quarter, this interest income is contributed. And we are confident going ahead, it will continue, sir. Okay. And TWA recovery also, it hovers around 1500 to 1600 crores in a quarter. That may vary because of one big ticket resolution. If you see for the financial year 25, it was 6,800 crores and this year it is 6,500 crores, almost at same level. So, it will continue. This will also continue.

Sure, sure. All right, sir. And, sir, T-bill number if you have and all the very best.

Jai, we request you to come back to the queue for the remaining questions.

Thank you, sir.

The next question is from the line of Maruk Adhajaniya. Maruk, your line is unmuted. You can proceed with your question.

Hello.

Good evening, madam.

Good evening, sir. Can you hear me? Yes.

Yes, yes.

So I had a question. If your cost of funding, you know, you're confident about your cost of funds and the balance sheet is in a good shape, then why is your loan growth guidance not as good as other banks? Because other banks are giving a much higher guidance. What is the constraint here?

There is no constraint. We see that GDP projection is at 6.9%. So, accordingly we project and we see last historically what we have given the guidance. Although we have surpassed these numbers and also we are confident that we will surpass it again. So, the basis has been this only. The GDP growth projection and the past historically, how much guidance we have given in the last three years. That forms the basis of giving the guidance.

Okay, sir. Got it. And, sir, coming back to ECL, is there any way to find out what will be the run rate impact? So, on an ongoing basis every year, how much will ECL add to the credit cost?

So, that we have not worked it out because it is a forward-looking provision. So, that probability of default of any loan for the next year. So, we have roped in a knowledge partner E&Y and the system level implementation will take place in September. Roughly, we have calculated that the impact will be about 10,000 crores, and looking at our profits, we can absorb in one go, but there is a provision that we can absorb in four years. So, bank is very, very comfortable on ECL front.

Okay, sir. Thank you. Thank you, sir. Thank you.

Thank you, Maru. The next question is from the line of Suraj Das. Suraj, your line is unmuted. You can proceed with your question.

Yeah, hi, hi, sir. Thanks for the opportunity. Two, three questions. First, on the gold loan, while you highlighted that the retail gold loan is growing, it seems like your IGRI gold loan is not growing for last two, three, four quarters almost. Last quarter, it was 1.5 lakh crore. It seems like this quarter is also 1.54 lakh crore. And in the beginning of the year, I think it was 1.4 lakh crore. Any challenges there, sir? Or it has to do anything with the RBI revised guidelines or something like that? Thank you.

My colleague, Bhavinderji, will answer this.

No, no. Actually, our figure is 2.4 lakh crore, and it's not that we have not been growing in the last two or three quarters. So, with the aftermath of RBI direction, we have changed certain restricted customers, how they can engage with the branches. The income numbers. So, because of that little slowness is there, but not that we have consciously taken anything in that direction to stop. So, nothing is there because our retail portfolio is growing as it was growing earlier.

So, from April 1st, my question is on the agree gold only. On agree gold only. And in the beginning of the year, it was 1.4.

Shall I say, if you see that whatever loss you are seeing in Agri is compensated in retail, it is a deliberate attempt from the bank. If you see in other than rural, that is semi-urban and urban, we are most… In rural also, we are growing at 14.9%. That in these areas, we are giving only retail. So, if you see overall, you have to read both put together. If you are seeing in one side, agriculture is showing us lower growth, but retail is taking up its place. It is both combined, the growth remains constant. So, you should not look at it in isolation. It should look at combined portfolio in compliance with RBI guidelines. This is mostly in compliance with RBI guidelines. We have devised this.

The Gold loan portfolio is growing at 33-34% of which the AgriGold portfolio is growing at around 15% and we have to comply with all RBI guidelines also. So, I presume that it will go in the same manner.

Sure, sir. I will probably reach out separately for any further clarification. Sir, two last questions. One on the current account. I think the growth has been sharp, negative number. Any reason for that?

There were four accounts which were having big, big ticket four accounts. So, I cannot name that. So, that is causing the variation in current account. Apart from that, current account is growing at a healthy pace.

Sure. And so, last question, if you can give your stage 1, 2 and 3 provision as per the IREC norm, whatever you are holding currently in absolute terms, roughly rough ballpark figure will do.

So, ECL, you are talking about ECL provision?

Right. No, I think you said in the opening commentary that stage 1 you are adequately provided. Stage 2 is where you need some buffer provision. And stage 3 also you are adequately provided. So, I just wanted to check the absolute number if it is readily available. Else I can reach out separately.

Absolute number can be shared only after the implementation of system. That I can share only after the implementation. Roughly we have worked around 10,000 crores and we are making a profit of 19,000 to 20,000 crores. And this also can be staggered for 4 years. So, easily we can absorb entire in the first go itself.

Sure, sir. Okay.

What is your total standard provision number? My standard provision number? 4,500. Thank you so much, sir. And apart from that, there are three big ticket accounts, which are in SMA, where there is no need for provision, but we have made, as a prudent banker, we have made a provision of 1890 crores in that.

Okay, sure. That's all from my side.

Thank you, Suraj. The next question is from the line of Gaurav Kochar. Gaurav, your line is unmuted. You can proceed with your question. Gaurav, are you there?

Hello, am I audible? Hello? Thank you for the opportunity. So I have a couple of questions, sir. First is on the PSLC. Sir, if I look at the, I'm just looking at the small and marginal farmer because I'm assuming that large part of our PSLC come from selling PSLC of small and marginal farmer. So if I look at, let's say this year, the excess that we have is about 2.5%. So we did about 12.5% versus 10%, which is required. If I look at the same number last year and last to last year, that number was much higher at 3.4% and 6%. So is it fair to assume that the surplus that you carry this year is slightly lower than what you had last year?

No, no, no. We have worked it out, and this will be at the same level this year also. Okay, okay.

So, the PSLC income you expect to be similar as last year?

6,500 crores.

Right. 6,500. Okay, got it. 6,500, sir. I think 2,600 was the number this year. It is 3,000. It will be around 3,000. Okay. Okay. Got it. Got it. Answer the second question is with respect to the recovery from return offs. While you've alluded to about 15-16 billion per quarter sort of a recovery, but let's say in the immediate quarter, do you expect any large ticket account getting recovered? So for let's say this Q1 FY27, you expect 15-16 billion to continue?

Everyone, already we have one big ticket part amount has been recovered. Okay. Of 300. We are very confident that this number also we will be achieving this quarter.

Understood. Perfect, sir. That's all from my side.

Thank you, Gaurab. The next question is from the line of Ashlesh Sonjay. Ashlesh, your line is unmuted. You can proceed with your question.

Hi, sir. Good afternoon. Sir, first question is again on gold loans. Wanted to check if you have taken any increase in the pricing on either agri gold loans or retail gold loans over the past 1, 2, 3 quarters.

So, that increase in pricing is factored, but we are very, very conscious about LTV. We operate well within the LTV ratios prescribed by the regulator.

Okay, sorry, sir. Let me clarify. The question is about the pricing of the interest rate on gold loans. Has that increased over the last few quarters?

No, no, no. No, we have not increased. And the LTV ratio, we have kept maximum at LTV.

Not increased.

And LTV also, we have kept in check.

Under 70%. Would it be fair to say that all the agri loans are largely linked to MCLR and all the retail loans are largely linked to repo? Is that a fair understanding? Yes. And the average yield would be somewhere around 9%, right, on both the portfolios?

Yes.

Near 9%. Near 9%. Understood. The second one, in the provision, in the provision line in the P&L, there is a negative provision in the other provision line. Can you explain what that is coming from? And thirdly, if you can also share the segmental breakup of slippage for the quarter.

So provision in the large borrower framework, there is a release as per the RBI guidelines, some 307 crore release is there because it is no more required. So that is one of the factors.

But if I look at the number, it is close to 800 crores.

Earlier, there was 3% prescribed by the additional provision for large borrowers. Now, this has been dispensed by the regulator. So, there is a release of 307 crores.

Understood, sir. But the negative provision is close to 870 crores. That is why I wanted to ask you.

You see, in standard accounts, also in three big accounts, we were maintaining additional provision, their balances has gone down. So that is why some release is also there.

Understood, sir. And if you can also share the segmental breakup of slippages, that would be good. Sir, and just lastly, one comment from you. I understand that there will be any, as in we will go through the ECL transition over the next few years. But in spite of all of that, you believe the bank can deliver a 1% ROA?

Sir, I presume, yes, bank can deliver that. Although we have kept it at a conservative level. Bank can deliver that. That is why we have given it our return on asset more than 1%.

Understood, sir. Perfect. Thank you. Those are all the questions I had. If you can also share the segmental slippages, that would be helpful.

Segmental, I can tell you, 2,771 is the total slippage that has happened in this quarter, out of which 1,333 is for MSME. Agriculture is 886, corporate 80, gold loan 41, and retail some 431 crores.

Understood sir. Thank you very much. Thank you.

Thank you, Aushlesh. The next question is from the line of Parth Gudka. Parth, your line is unmuted. You can proceed with your question. Parth, are you there?

Yeah, hello. Can you hear me?

Yeah, yeah.

Good evening, Mr. Park. Yeah, hi, sir. Good evening. Thanks a lot for the opportunity, sir. So just, you know, in terms of RAM and corporate mix, we have now, you know, reached 59% of RAM and around 41% of corporate. So how far, you know, we can increase our RAM mix in the overall loan mix?

We endeavor to reach at 60-40, 59 Ram and 40 Corporate.

Okay, okay. And within the Ram, we will continue to grow the retail segment. And, you know, because our Agri and MSME has been, as a proportion of overall loan, has been coming off over the last four quarters. Is that the right understanding, sir? Yes, yes. Okay, okay. Thanks a lot, sir.

Thank you, Parth. The next question is from the line of Sushil Choksi. Sushil, sir, you can proceed with your question.

Good evening. Congratulations to Team Canada for a very stable result. Good evening, Chok Siddharth.

Good evening.

Sir, looking into FY27, can you tell me what is undisbursed credit and how is the corporate pipeline looking when you are guiding at 60 RAM, 40 corporate? Because RAM will have adequate support coming from government for the new scheme. At the same time, there would be demand, whereas Southern India is seeing a robust demand by manufacturing, GCC and many other sectors are likely to come up. So, what is the outlook on corporate hook?

So, corporate demands are already NBG that is sanctioned by us. So, we have to finalize the proposals that is lined up at around 20,000 crores. Another undisbursed corporate is around roughly about 20,000 crores. And the ECL, we expect that 18,000 to 20,000 to grow. So, we should make up the guidance number comfortably.

Sir, in data center, are we funding data centers with GPU or without GPU? Yes, yes. And sir, how is the pipeline between power sector and

data center? Data center and power, both we are financing, sir. No, no. You are financing, I know. How is the pipeline, sir? Pipeline also, we can share separately with you. We can share that pipeline. Sir, how is that? I don't have a breakup of the pipeline in this gross numbers I am having.

Sir, please.

Regarding these two.

So, in view of now, everything is getting digitized and initiated, so many other... New programs have been done at Canera. How is the cross-sell working? How many touch points from each wallet are we doing? And what is the digital spend we are likely to do this year?

So, we are very, very conscious about the number of products we can offer to our client. We already have 3000 customer relationship managers, very, very active on that front. So, we want to penetrate the customer, not only to the customer, but to the family. Now, this year, these customer relationship officers will be penetrating to the entire family and we have products for that. So, we will try to have more and more wallet share out of each individual, sir. And regarding digital penetration, sir, we are growing at a very, very handsome growth. Thank you. For the last year, the number was 1204 crores digital transaction. Prior to that, that was 940 crores. So, good impressive growth has been seen. Our mobile app is ranked number one in Google Play Store. So, people are accustomed to our app and they are popularizing that. So, digital transactions are improving.

Sir, any update on mutual fund and insurance and the Canfin Homes? From your side, not the complete outlook.

Okay. What is any update on Canfin Homes? So, they have their own individual boards, sir. They will be announcing that result separately.

No, no, no. I understand that. I'm not saying that we are a stakeholder. Every now and then we talk about monetizing that stake. At the same time, there are a lot of opportunities to come by.

Further dilution, we don't foresee, sir. Already 14.5% in Canera HSBC and 13% in Rebeco, we have already done that. And we have gained some 1920 crores in the previous quarter. Going ahead, we don't foresee any dilutions. Thank you for answering all my questions and good luck for the year, sir. Thank you, sir. Thank you, Sushil.

Thank you, Sushil sir. The next question is from the line of Mr. Manish. Manish, your line is unmuted. You can proceed with your question. Manish, are you there? Okay, the next question is from the line of Dixit Doshi. Dixit, your line is unmuted. You can proceed with your question.

Yeah, can you hear me? Yes, Dixit ji, please go ahead.

Yeah, thank you. Thanks for the opportunity and congratulations for a decent performance. I have one question. So now, as you have mentioned that we are now 20% of our book is now gold-owned. And recently, we had some news of gold-owned fraud in April, some media articles. So, if you can just elaborate a bit that what we are doing to, you know, check that, what are the checks we do so that these kind of frauds don't happen.

Sir, number of checks we have put in place. One is the entire portfolio of a quarter, whatever we have dispersed, that gets reappraised in the subsequent quarter. And for high value gold branches, we have a plaza, a dedicated officer dealing in gold loans. Third is the security systems we have announced. So, where gold loans are more, we have kept additional security guard 24-7 for manning these branches and we have TLTR safe at all these places for safe upkeeping of gold. So, number of checks and balances are there, but one of incidents keep on occurring, but the NPAs are very minimal in gold loan. It is a very productive product to us.

Okay, that's it. And that is insured also. Okay, no, so the question was more towards, so there are two types of, you know, accident happens. One is that, you know, some theft happens. So that's a routine. So it does happen to anyone. But the other thing which happens is if somebody, you know, give a fake gold or something like that. So what we are doing to avoid that thing.

So, we have panel appraisers in place. So, every quarter, the same whatever gold loans we have done, that will be reappraised by a different valuer. That will be sent by a regional office. So, regarding spurious codes, that will be immediately detected after reappraisal, it goes for reappraiser.

Okay, and any update you have on the, from government side regarding the full-time MDCEO?

So, we are also waiting, sir. Okay, that's it for me. Thank you.

We take one last question, which is from the chat box. Can you explain why the yield on advance is declined by only 5 basis points during the quarter in spite of the 25 basis point repo cut impact?

So, 50% of our portfolio is repo linked. And if you see in the December, there was a 25% reduction in repo rate. That is why it has impacted. By basis point, it has come down.

May I ask one question, ma'am, if you permit, if the time permits?

Yes, sir. Yes, sir.

Thank you, ma'am. Sir, when we look at our current run rate of operating profits, excluding the provisions and the contingency part, we posted 6,757 as the precise number. So, taking into account the current environment and taking into account the repricing of deposits also, if you could just give us some color whether we can defend this operating profit number going ahead because the other are more variable number depending upon how the market Dynamics plays out.

So, we are very, very confident that we will protect because this includes your MTM losses. So, very soon, some reversal will be seen. Already, it is showing in our books. So, we are very confident that it will be protected going ahead.

Okay, and you mentioned that the NIMS trajectory will be 2.5 to 2.6, and the ROA will be in the trajectory of 1%. This is what for the current year looks like.

Yes, sir. Yes, sir.

And the growth in business will be 11 to 12 percent.

That is the advances part number you have given. Yes, but we are confident of exceeding that. So last year also, if you see 10 to 11 percent guidance was given, but we ended up at 15.30. This year also, although it is projected at 11 to 12 percent, we are confident that we will exceed. Okay.

And last point is, sir, what percentage of our deposits are linked to the floating rates? So they get reprised as soon as there is any change in the interest rate scenario. In deposit, nothing is there.

Didn't get you, sir. In deposit, nothing is there, which is floating in nature. Okay. Everything is fixed. Yeah, not demand. There is two categories. One is demand deposits. And what is the term deposit? Term deposits are fixed for that particular tenor. Demand can be withdrawn at the will. Savings and current.

Correct. Correct, sir. Right, sir. Thank you, madam. And thank you, sir, for answering and hope for further interaction going ahead. Thank you. All the best to the team.

Thank you. There is one last quick question in the chat box. Please share the number on the Stage 2 Provisioning.

So, it is yet to be implemented Stage 2 Provisioning. Once system level implementation takes place, then we will share this number.

Do you mind me asking just one question? Yes, Madam. While all the indicative parameters have been projected to grow, do you mind going over why earnings per share and return on equity is marked down from the present year numbers?

Yes, madam, you see, this year we had a gain of 1920 crores from delisting benefits of Canera Rebeco and Canera HSBC, where we diluted our share in Canera HSBC 14.5%, in Canera Rebeco 13%. So, this 1930 crores will not be there because it is a one-time income. So, next year it won't be there. That is why it has been kept at conservative level.

We take that as the last question for the day and now hand over the call to the management for closing remarks.

Thank you, madam. All I can say that this year also what we have We have given the guidance numbers. Last year also, apart from two, that is CASA and NIM. So, we could achieve all the out of 13, we could achieve 11 parameters. Next year also, we are very, very confident whatever guidance has been given, we will try to deliver these numbers. Thank you.

Thank you. That concludes the call for the day.

Thank you.