Bank of Maharashtra (MAHABANK) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Bank of Maharashtra's Q4 FY202526 Post Results Conference Call, hosted by Systematic Shares and Stocks. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing start and zero on your touchstone phone. I now hand the conference over to Mrs. Siddharth Rajpur Rohit from Systematic Institutional Equities. Thank you and over to you, Mr. Siddharth.

Good evening, everyone. Thank you all for joining my commercial Q4 post-result conference call. From the management today, we have Mr. Neetu Saxeda, Managing Director and CEO, Mr. Mr. Prabhat Kiran, Executive Director, and Mr. Shushata Kobar Bharti, Executive Director. I would like to congratulate Mr. Bharti for being pointed as the ED to the Bank. We are very grateful to the Bank for giving us the opportunity to host this. I'll head over the call now to Mr. Didu Satseda for his opening remarks, post which we will open the call for Q&A session.

Thank you. Yes, thank you. And good afternoon to all, and thank you all for joining this con call. And I'm happy to share that we have seen yet another good year for the bank, despite whatever, I should say, challenges, geopolitical uncertainties, and a real war for deposits also. But bank has typically shared 18 to 19 parameters for which the guidance was shared beginning of the year. We have done this last year also. And I'm happy to share that all the guidance numbers across the growth parameters, across the asset quality, across the profitability metrics, across the capital adequacy efficiency ratios, we have been able to meet all the guidance And at some of the places with a decent margin above the guidance that was shared in the beginning of the year. To just quickly, the high-level pointers, total business this year has grown at the rate of 17%, and within which advances grew at 22%. Total deposits grew at 14%, within which our focus, which had always remained on CASA. CASA grew at a double digit 12%, and our CASA ratio also was maintained above the 50. We closed the year with 52.51 CASA. Term deposit also saw growth of 16%. The asset side, the RAM had good growth within which retail was growing at 32%. The major focus products that supported this growth, home loans grew at 29%. Vehicle and gold, which were marked as focus products to grow for this year, grew at YOY 56% and YOY 53% respectively. Thank you so much for joining us today. Q2, you would have seen that the growth had gone down to single digit, low single digit, I would say, but we closed the year with double digit growth and the process to grow quality agree and MSME has on board new fresh business in that segment in that portfolio is going on for this year. It will continue also, and we will soon regain our 15, 16% retail and agree, sorry, agree and MSME growth in the bank. Corporate also, we have been able to find areas which we mark as bullish areas for the bank to go. So, sectors like green, clean energy, renewable sector, we have funded in a major way, and we have done intraloans, we have done data centers, we have done a lot of areas where there is a lot of emphasis and support system which is coming from the government of India, and where we are seeing that huge scope and potential to grow is there. Not only for the current FY, but for the years to come. So we had marked these sectors as bullish sectors. And through our quick acquisition, quick disposal, we have even grown our corporate book, YOY, at 22%. Ram corporate share was within the guidance. It was 63 in favor of Ram. 37 was corporate. The asset quality has also been contained well, maintained well, and there is improvement in both GNPA and NNPA, where we have seen improvement both in absolute terms and percentage terms as well. The gross NPA has the percentage come down to 1.45 with a 29 BIPs improvement year on year. Net NPA came down to 0.13%, 5 BIPs year on year, and they both were well within the guidance number. Recovery in the bank this year also had seen a good performance, and within which our write-off recovery book, which is almost marked as a focus area to perform, around 20,000, 21,000 crores of write-off book, and we had planned that annually we should be recovering between 12 to 1500 for the next five years. And the band which was kept a big band because out of 25, 20,000 crores around 7,500 crores were in NCLT where bank would do a process, but at times you're not very sure whether the recovery will fall in a particular quarter or it may slip to the other because of the some delays that may happen in the NCLT. So we had a band of 1,200 to 1,500, but I'm happy to share that for the last two years, a lot of traction is seen. Last year, against FY22, number of 600 odd crores of recovery in written-off book, we did 1,375 crores. This year, we have even surpassed that number. It is 1,423 crores of recovery in the write-off book. So I think our strategy is playing well. We are able to see resolutions and recovery in the write-off book, and we will continue to focus this segment. We have a big, I would say, goldmine where we, if we are resolving, we are contributing also to the OP of the bank. The stress has been well managed. The overall stress saw an improvement of 49 BIPs. It has come down to 2.93%, within which the SMA 1 plus 2 is 1.39%, which also improved by 61 BIPs. As a result of this fresh growth and growth where we have not mindlessly grown the top line, but have remained conscious about the bottom line for every transaction level. We have been very consciously doing that. Our profitability also has grown in a very favorable way. I would say OP operating profit 10,826 crores grew YOY. At 16%, net profit with 7,019 grew YOY at 27%. The profitability metrics of ROA, ROE, NIM, they also were well above our guidance that we shared beginning of the year against NIM guidance of 3.75%. At the beginning of the year, we closed the year with a NIM of 3.91%. If I have to share Q1, Q2, Q3, Q4, Q1, the name was 3.95. It went down to 3.85 in quarter two. We have seen improvement thereafter, which I've been sharing that probably the third and the fourth quarter, we will see no further contraction. We may see an improvement in our name and that despite the rate cuts during the FY, we have seen that we have We have regained our NIM at 3.95. Quarter 4 standalone NIM was 3.95. Full year NIM was 3.91. Our guidance has been 3.75. ROA, quarter 4, 1.97%, so barely touching the 2%, but for the full year, our ROA has been 1.86 against the guidance of 1.75. Seeing this good traction, while I will share also the guidance number of important parameters, we are ready with those guidance numbers. But I can share for ROA, we have upped our guidance over the last year. We have said that guidance for this year ROA will be 1.80. Going over to the ROE, Q4 ROE, 26.61, full year ROE is 23.19%. Our net interest income also has grown handsomely, 17% YOY growth. We have contained and contained our cost to income below our guidance of 40, and it closed with 37.08%. In-loan advances has been maintained at 9.05%. Cost of funds and cost of deposits both have seen a reduction. Cost of funds at 4.15% has reduced 7 BIPs year-on-year. Cost of deposits has improved by 14 BIPs year-on-year at 4.52%. Capital adequacy, we are adequately capitalized, and with this full-year profitability now also added, CET1 is standing at 14.59%. CRAR is at 18.36%. Government of India holding during the FY with the OFS issuance by Government of India has come below the 75%. We are a MPS compliant bank now, and the Government of India holding stands at 73.60%. Participation from FYI's and DII's have gradually been increasing over the past two years, and we have been very, very I will be particular about our engagements with the investors, both foreign and domestic. Just to give you a number, the FII shareholding has gone up from 0.39% in 2023 to 5.8%. Likewise, DII, excluding the LIC and the bank treasuries, has gone up from 0.24% to 6.86%. I think I will take a pause. These are the broad numbers. The presentations are shared with you. I will take a pause to take questions. And while we go ahead with those, maybe give some more additional inputs from our side.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on the top-zone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use Ansets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

Thank you for giving me the opportunity. Before I start, let me congratulate and welcome our new ED, Shushan Kumarji Mohanthi. Sir, welcome to you to Bank of Marath from Analyst's side. You have recently joined. Having said that, congratulations, Nidu sir, and the entire team of management of Venkav Maharashtra for the fantastic results. It's not only a question of quarter, but on the overall FI26, they have performed exceedingly well, and once again have gone, you know, beyond 50% on the CASA, beyond 20% growth on the credit, Thank you. Having said that, sir, I would like to have your views because now going forward, this war started from 28th of February, you should know, Iran-Israel and U.S. war, and the impact might not have been seen so much in March, but now going forward in April, May, June in this current quarter, where do you see the impact of this war coming to our corporate account, mainly This is mainly the MSME accounts and is there any stress which you already started feeling because, till last year, till 31st March, the SMA numbers are good. SMA1 is only 241 crore, SMA2 is only 56 crores. So, what are your comments on that sir and what kind of impact do you see sir of this model?

So, Medhaji, you are right when you are saying that there is a crisis ahead of us, but we also know that we are yet to see the end of the crisis. It will be very difficult to say what will be the full impact because if this kind of crisis will stretch and if it will prolong, we would see more pain coming in is what the sense tells us. But we are very closely monitoring, watching the developments, and I'm sure at the highest level in the government and the regulator, their engagements are on to see how things span. And at the bank level, I would say that since you mentioned about the MSME portfolio, so far March, there is no element of stress or sign of any worry. In fact, my MSME NPA number has actually come down, has come down to 1.54%. So, which is an improvement. But having said that, yes, with headwinds like crude, you know, Brent crude, more than $115, anything above $100 will bring pain. We may see inflation if this is getting prolonged for long. We all understand the rupee dollar and how the currency depreciated will have its own impact. And so we are watching it very closely. And you're also right to say that March will not be where the impact. We may see the impact in not Q1 by Q2. You will see the fallout of the West Asia crisis. But as I again said, we are still to see the end. So we can only hope that the crisis resolves and what damage must have happened, the impact, how fast it can be replaced, is also needs to be seen. So you may see in the following quarters the impact of the damage which has happened. It is not that the war ends and everything goes back to normal because something gets disturbed, the crude supply where some actions are there is hit. So to replace those damages will take time, and so one may see, but we'll need to watch, and we are completely mindful of the impact.

Yes, sir, point well taken, sir. You explained it very well, sir. I got a few data points in some observation. In the provision front, you know, we used to have that 1,200 crore, that special provision. I think that COVID provision, but this time it has come down to 1010. So, 190 crore has gone off from that buffer, from that provision we used to maintain. So, is it used in the normal provisioning? I mean, but for it, the provision would have been more by 190 crores in this quarter? This is my, yeah.

Right. So, point is well taken. We have been mindful of the nudges that are coming from the regulator. When we are passing a benign phase, where we are seeing that everything is good, the balance sheet, banks are good, corporates are good, every bank is also showing profits. So what has been continuously being said when the good times you should keep maintaining build-up provision. So but to have a COVID provision and COVID is all gone way back. Beyond the point, there is no sense to build that kind of provision. So while the COVID book has reduced, it has actually been a nudge coming from the auditor also that That when we are adequately provided, when you are maintaining a NNPA of 0.25 guidance and actually the performance is much below that 0.13 is the number. So any fresh lipidings that we are encountering, we are supposed to as per IRA norm go with 15, but we are providing 100% upfront. So we are adequately provided. So why you should now keep this? But actually what we have done, if you see, I think this is again an industry first, keeping in mind this West Asia crisis, we have internally created, there is no regulator prescription, there is no nudge also towards that, but we are calling it as a global geopolitical uncertainties provisioning. And we have in this quarter built a provision of 200 crores. What we will do in the next quarter, whether we will top it up, we don't know. But we thought we will be prudent when if any challenges are coming, prudence will be. Let's actively provide for if there is a headroom or there is an enabler with you, let's utilize that. So, we call it Global Geopolitical Uncertainties provision 200 crores to begin with in this quarter I have created.

So, it is just shifted, you know, from there to here. In fact, that 1200 crores has become 1010, so another fresh 200 crores provision has been made.

So, fine, you can look at it that way because amount is almost appearing to be similar, but this was something you consciously, which came not because The auditors wanted that why do we so much keep provisioning on the COVID thing, but we had on our own decided that we will continue to remain prudent, and if prudency required that when you see a challenge or a headwind, and if you are providing for it, so there was no link to that to this, but yes, somehow the amount is near to that.

So, there is an irony that even the good points, you know, are put in the emphasis by the auditors. Even if you are holding extra provision, they put in the emphasis item. But anyway, sir, my one point is on this overseas advances book, which has gone up from 3,517 crore to 6,142 crore. I believe this must be Gip City. So, what kind of book we have built here, which has gone up from 1.29% to 2%?

So, it is a combination of participating in some global syndications. See, today we have started operations in the last FY. We will see a lot of opportunities to begin with the corporate. Then we are also we have taken a complete suite of influences. We also intend to do in this half year of this current FYH2. We will be good to go with the retail products in our gift IBO. So currently it is mostly corporate books, but we are ECBs, global syndications. That's what we are doing. I mean, even the way we have, in a very short time, moving very decisively, I recall 13 February 2025, we get the nod from the Reserve Bank of India, and we took six months to book our first business. 13 September, four transactions were booked, and September 2025, we had 100 million of overseas business in our books. And from there, the journey started. We have kept the aspiration of making gift city in 12 months, minimum 1 billion book. 650 million we've already done. And I can share with you that we have, there is a pipeline visibility to us of 350 million. So that aspiration is going to be getting achieved. While in the board, when we went for suggesting for a gift license, we said we may take three years to break even. But I'm happy to share. We said why not in the first 12 months, the balance sheet should be a profit, net profit should be there. And what we have done in March in GIF City, we have achieved after covering the entire overheads, staff costs, premises, everything, including the IT, we have been able to see bottom line positive in the GIFT IBU also. So that aspiration, that part of aspiration also will ensure be achieved in the GIFT IBU.

Sorry to interrupt. Mr. Ajmera, may we request you to please rejoin the queue. We have participants reading for this.

One question on tax.

Can I go? Hello?

Please go ahead, sir.

Yeah, so on taxation transfer, just one clarification. Our average tax, the income tax, it has come to 10.66% of the profit for the whole year. Can the CFO, you can throw the light on the entire DTA provision and everything, and what is the status, where do we stand today on the taxation front, sir?

Okay, since you said CFO, I am passing on the line to the CFO.

Yes, sir, with regards to tax, sir, average tax rate is coming around 10 to 11 percent, Because we are getting a deduction in the forms of backup provision also in under 367A and 367, two sections mainly we are operating where we are getting deduction. Apart from that, sir, also of other DTAs. Like in this DTA, we have hardly 17 crores we have created. So that is also there. So, overall, sir, if you see in our bank or other banking sectors, sir, operating profit for 13 to 14 percent average tax rate is coming. So, since in first quarter, we are having some unabsorbed losses of around 12 to 1300 crores. So, first quarter, we have consumed that losses. And after that, second quarter and onwards, sir, we are coming to the normal tax bucket rates. And since we are uptake for new regime, so 25% tax rate is coming. So for OP, it is a 13 to 14% average rate is coming for us. And so considering the partly profit and we are having questions now since we are not requiring any additional provision, so we are not seeing anything that we will not able to cover that provisioning requirement from tax side. And also we have, in this quarter, we have paid the advance tax of 930 crores, total advance tax, this for FY 26, 27.

So you mean to say that in future now, our tax will be 25.17% because we have finished all those benefits of the bandits and the DTA and other things, so we will come back into the normal tax rate bucket, isn't it?

Yeah, sir, this year itself from second quarter itself, we are in the normal tax bucket rate, and we are accordingly provided certain tax provision has been done, and sufficiently advanced tax is also paid.

Okay, sir. Thank you very much, sir. In this round, if time permits, I'll come back again, sir. Thank you, and all the best, sir.

Thank you. The next question is from the line of Priyank Cheda from Valum Capuchin. Please go ahead.

Yeah, hi, Nidu, sir, and Bank of Marasta team, thank you for the opportunity. Again, congratulating for a great set of numbers. First, sir, you have been highlighting on various calls about the strategy which is working well. I would like to hear it out again on what actually has played out for Bank of Marasta to achieve all the guidances that were set 12 months ago in such a volatile year. And if you can also touch upon what will work, what has worked till now, and what will work going ahead over next two, three years?

So what we have been working with the team, see, bank has been performing well for the last couple of years. And the only sense that we were drawing that our scale and size of operations was not as significant. So we want the two years back when I joined, and we kept this vision that we will become bank of a greater significance. And two, three things that we jotted down for us. One is that we want to grow in scale and size. So the top line has to grow. And if you see the stack of 12 PSBs, we were ranking in terms of size at the position 11. And what we decided that in the next two to three years, minimum two notches is what we should grow in size. So from 11th, we have to come to the 9th. But then we said it is not a mindless top line growth. What we will be doing that with top line bottom line growth has to correspondingly improve. If it cannot be I mean if possible, we will try to even improve it further. Because we maintain some good ratios, you would have seen most of the ratios are now among the top three in the industry. In terms of profitability, asset quality, we rank in position one, two, three on the critical ratios, when we compare ourselves with the industry. So we would like to not go down on a single ratio. So the mantra for growth was it should be a growth, but it should be a profitable growth, then there is no compromise on the quality. So around this theme, we had done a lot of things. I recall we had a fine, you know, a very fine rate, a table late link rate product. We had certain exposures, but we said we made our exposure zero during the course of the year. And we switched on from core business that should happen from my 2,500 to 1,600 branches. And for that, we did a lot of product improvisations, new product improvements, processes were streamlined. Our review mechanism went for a total change when we started to review our zonal leaders in terms of their core business growth. It is not enough that institutional relationship is settled and your 20% branches are optimum performing. It is essential that your core business is your core area. The bulk element of business is central office and office will take care. So that's the theme with which we started to review them, and I think dividends were visible, and we have seen now that the volatility in the loan, in the The total book, total business book also is not there. Because whatever new business has come, has also come from core, which is happening from individual branches. So we went on to reduce our over-dependence on full buyout transaction. Not that we are averse to doing. Wherever we get good pricing and at times we want to look at meeting our PSL requirements, we will do those transactions. But that's the central office call. So my branches, zones, they were all working towards getting core business. So this is one thing. This theme is going to continue going forward as well. I am also a differentiated bank with this kind of a geographical expansion. I think no bank in the PSB space, particularly the large players who saw amalgamation and mergers, they had to logically go for some sort of a rationalization where Some branches had to be closed down. So we were differentiated that we were opening branches lately when the private banks did realize one to two years back. So you would have seen HDFCs, Axis, ICICs have decided to open few branches in some rural semi urban centers. But we were organically growing and expanding our presence. And this branch expansion is happening continuously. I have a thousand branches approval from the board to be opened in the five years. We are in a very calibrated and scientific manner growing the branch presence across the country. For the first three years, we are calling it as phase one, wherein we are currently running a project 321. We are opening 321 branches. While I speak, 183 branches till date have become functional, and they're actually doing business. And they are scientifically selected to be open in a center down to the pin code level. So with this kind of very focused approach, we are, despite whatever headwinds, we are able to see business. We are able to see profitable business. We are able to also do business without compromising in any way on the quality of business. And that's how we will continue to go ahead with sir.

Amazing for the and much appreciated detailing. So I just have another two questions. Second question on the 18-19 parameters which you have shared on the various level guidances and the forward looking statements that you had made for the bank for us to judge for the following 12 years and you have meticulously achieved that in F526. What would be those comparable numbers when up to Loop Bank of Marastor for FY27. That is my question number second.

Yes, sir. Again, the last two years we have been announcing and sharing these guidances beginning of the year. And we are fully committed to achieve each of those parameters. The same exercise has been done for FY26-27. I can very quickly for benefit of all share these numbers. So total business this year we plan to grow at 16 to 17% within which advances will grow at 18%. Deposit to grow at 14 to 15%. Casa we will maintain around 50%. RAM book will be growing at 18%. RAM corporate, the ratio 60-40 plus minus 2%. Net interest income is to grow at 15%. NIM guidance for this year is 3.75%. Non-interest portion to grow at 10%. Cost to income we will continue to maintain as last year below 40%. ROA, here we have actually upped our guidance number by five bips. Last year, ROA guidance was 1.75. By seeing quarter four, ROA touching 1.97. I mean, barely touching two. So ROA, we want to keep a guidance of 1.80 percent. A WDN, R-O-E, while we did 23%, plus for this year, we want to maintain a guidance of 20% and more. GNPA will remain within 2%, NNPA within 0.25%. Slippage will be maintained below 1%, and credit costs will be around 1%, PCR at 98% and CRAR to be maintained at 18%. So these are the broad guidance number, which will again guide our path and very thoughtfully seeing our past trend performance and keeping also some headwinds in mind and keeping a challenge for us. We have kept these numbers and the team is committed to see that, as we have done in the last two years, there is no compromise. These are sacrosanct numbers for us. We will be achieving it, sir.

Sorry to interrupt. May we request Mr. Cheda to please rejoin the queue. We have participants reading for the term. Thank you. The next question is from the line of Bhat Goodkav from 361 Capital. Please go ahead.

Yeah, hi. Thanks a lot for the opportunity. So, my first question is on the fee income. Our fee income growth was lower or way lower than the loan growth. So, what are the steps we are taking here to improve our fee income?

So, non-interest income, you must have seen, it is 2.51%, whereas we have kept 10% guidance for this year. What has happened in this particular financial year, there is a one-time exercise where I had to provide for 290 crores. So, we have an RRB, Maharashtra Grameen Bank, and Government of India initiative to have one state, one RRB. I got to amalgamate the RRB from Bank of India with this, with that Honkan Grameen Bank. So, now the entire state of Maharashtra, today we are a single RRB, and that RRB, I am the sponsor bank. And the book is also a significant size, 44,000 crores of business. With this RRB coming in, unfortunately for us, it was carrying accumulated losses on balance sheet, and standalone also, there was a loss. And I had to take the investment on face value. So there was an immediate MTM, which we had to provide. And 290 crores is what the hit I took as one time. But then as I said, this is MTM, already 10%, 10 crores, sorry, not 10%, 10 crores. We have seen improvement in that. But this is why my non-interest income parameter has gone weak. But I'm happy that you raised this issue. For this year, even before, we had actually, we do keep in mind that beyond the critical parameters, we will keep every year one or two areas where we will be focusing and seeking participation from each and every branch, by each and every zone, and each and every staff member, and all vertical heads. Last year, we have done this focus on growing a quality agree and a MSME book. This year, the one parameter which we have already decided is fee-based income. And two days from now, we have planned our vote strategy meet and my zonal leaderships will be all together. We will be disclosing this special ask for this year. One is that we will make it as a year of deposits, and second is that we will make it as a year where we see huge scope of growing our fee-based income. And to help them do, the central office verticals are working overtime to already work on giving them enablers, so they are able to respond to this corporate call and deliver better results, better outcomes in this FY.

So, thank you. So, my second question is on the cost of deposit. So, what percentage of your deposit is yet to reprise in Q1 and Q22 at 525?

So, see this reprising, now there is no much of portfolio which is seem to be reprising. We have seen the entire because, in fact, I would say when we used to look at this parameter and look at what the industry average, my average maturity profile was somewhere around 10 to 12 months. So we saw repricing also happening faster than the industry. And you would have seen, probably, this is one of the reasons, one of the contributors

And I'll answer my last question. The yield on investments has improved, and I mean, that answers your question. Do you have a grant agreement on a QOQ basis from 6.71 to 6.8. What has led to the improvement?

Actually, there was one of the factors, one of income, which was booked during current quarter. So because of that, otherwise the yield was flat during current quarter.

Can you please quantify that number, if possible?

Thank you. The next question is from the line of Jaya Mundra from ICICI Securities. Please go ahead.

Hi, good evening, sir, and congratulations on a great number. Sir, I have a few questions. One is, on the treasury portfolio, if you can suggest how much was the MTM, The number that we have given is the total MTM plus realized gain, and the movement in AFS results from Q3 to Q4.

Sir, in the FVTPL portfolio, we had around 40-45 crores of MTM, and we have provided that into the books. And in AFS, yes, you have rightly seen that the AFS result is coming down, okay, and that has turned into red, but as on date, because the yield is on 31st March, and now it has improved a bit, around 10 to 15 BIPs. So the AFS result is still into red, but it is under manageable. It is manageable.

Sir, I was more interested in knowing the swing from Q3, how much was the ASS results, and I believe because agents have come back to below 7%, so you would have seen a recouping of this thing, but how much was the ASS results in Q3, and how much was it at the end of the quarter, March quarter? Yes, sir.

Yeah. So it was a 175 crores positive as on Q3 and as on the, I mean, for 31st March, it is 362 crores negative. So roughly around 500 crores, 550 crores swing yield.

Right. Okay, sure. And, sir, on the question to Medusa, sir, on PLI, performance length incentive, how much was the total payout for So how much was the payout? How much was the payout in Q4 and maybe FI 26? And what is the scheme that we have in PLI in the sense that, you know, I think now you can only offer one PLI above, you know, certain grade, do we practice at 15 days for everyone and then an additional PLI for class 4 and above?

What we have done is for scale up to three, as per the agreed formula in the IBA, we have gone ahead and released the PLI to them, and for the category of officers, scale core and above, since there are discussions going around, finer points are still, but as a bank, we have made 100% provision on some estimates. So, the PLI release probably will take some discussions before we actually are able to release the amount.

Okay, sure. Maybe I'll take this offline. So, that is okay. And, sir, the assignment number, right, which gives the BSC disclosure, that gives like 14,000 crore is the aggregate amount of loan that we have acquired through assignment. I was hoping that this will be mostly mortgages and SME, but the tangible security coverage is only 12-13%. So what is the nature of these loans? What have we acquired where the tangible security is so less or what am I missing here?

One moment, sir.

I am just passing the line Please feel free.

We are going to provide you. That is not an issue. So I'm just handing over to Chanda, EGM credits. I will respond. If you're not satisfied or you need more information, please do let us know. We will do that. Chanda.

So, regarding unsecured here, sir,

we had a loan to a NABAD, which was a substantial amount. So, that contributed to that portfolio.

Yes, sir, that 14,000 approximate amount is in a pool lending. So, majority of the pool is in a, our AA and AAA rated NBFCs is there. So, though it is in the MFI sector and some of the housing pool is also there, so, but that housing pool is secure, MFI pool is like that, it is in a consumption or some production pool is there. So, there security is reflecting lower side, but it is given to NBFCs which are the AAA and AA rated. So, as of now, that portfolio is doing well.

Right. Okay, I was hoping that only, sir, but it says that the loan acquired are not created because these are non-corporate borrowers because the pool is underlying the pool is individual, but the originator is NBFC, right? That is the, that is the return. Okay, sure. So, I take this offline also. So, that is good. And the last thing is, sir, from my side is this. Sorry, the tax rate, you know, you said that it is already normalized, but if they calculate the tax rate as a percentage of PBT, it still is 12-13% in the last two, three quarters. So I mean, you said that it is normalized, but will you be, because you may have some Thank you so much for joining us today, and we are going to talk about some rural advances or some exemption. What is the true tax rate for us in F527?

Sir, now we are in the normal tax rates and if you see from OPA point of view, we can say 13 to 14% operating profit, 13 to 14% is an executive rate we are getting. So, it is affecting multiple factors like ruler advances, how much we are the bed depth in there, and exactly because some assumption basis 8.5% directly we are getting the deduction. So, and DTA is also one of the factors. So, multiple factor is there. So, on the OP basis, we can say 13 to 14% exact rate is.

No, sir, my only question was when we give guidance, you know, while we be doing everything right, but if the tax rate itself moves from, let's say, this year tax rate, if I calculate tax upon PBT is less than around 10%, but if next year it is 25%, then despite delivering on PBT, you may, I mean, the tax outgo itself can swing. So that is why I was hoping if the tax rate will remain more or less similar or you believe it will move up from 10% to 25% next year. That is the question.

It is more of similar only because this year also we are hardly having 1200 crore unabsorbed losses or the whole the period we have done whatever required provisioning is there and we have paid the advance tax. So, considering the other factors that this is the normal rate is there. So, and it is now normalize.

Okay. Understood, Sunil, sir. Yeah, thank you, and all the very best, sir.

But, Mr. Jai, Jai, sir, if you have still some elements to be answered, additional information, we will be providing. Please be rest assured on that. Yes, sir.

I know, I know, sir. You have been very prompt. I'll come back, sir. Yes, sir. Thank you. Thank you.

Thank you. The next question is from the line of Akshay Badlani from HGSE Securities. Please go ahead.

Yeah, hi. Thank you for taking my question. My first question is around the fact that the Maharashtra government has announced farm loan waivers for KCC loans less than 2 crore. So, just wanted to get a sense as to how do we see the impact of that, you know, because majority of our agri advances are in Maharashtra, and because of that, if, you know, do we envisage any, you know, borrower behavior that could get impacted? That is one. And second was around, you know, as we said that, you know, we have made some additional provisions regarding geopolitical risk. Do we also see a sense whether, you know, we could price our loans better? Is there a scope of, you know, our yield on advances going up if we are sensing some risk in the MSME sector, especially because of the geopolitical risk? Thank you.

So, the state has already, I think, budgeted for this year that there should be a debt waiver while the approved scheme has to still come and known to the banks. But we are aware of a couple of things because we've been the SLBC and we are otherwise also discussions So we have our calculations that are in place. So overdue amount eligible accounts will be 917 crores. NPA is one of the things that we have in place. So, together it is 1984 to help to understand. So, around 2,000 crores of debt waiver amount is what one can expect. We don't see any major challenges around this. Probably once the budgeted action is done and the approval is expected, if not Q1, Q2, maybe. We can hope Q2, max Q3. We will see, in fact, our NPA in the AGRI book, we have done some estimations, calculations. My AGRI NPA, which is standing at 7.72% with around 3,100 crores. With this, it will come down to 2,037 crores. Every NPA will actually come down to 5.33% is what we are looking. We are aware that some part of this is also where we would have maybe done some prudent write-off also. If that is whatever that portion, it will also I am able to take it to OP. So, we don't see any major challenge around this debt waiver. Rather, this F5, if the state approvals are coming, not only us, other banks also will get the benefit. My calculation is 2,000 crores is what we get to benefit out of debt waivers. Second, there is a component is that wherever prompt payments are made by agriculturists during FY23, 24, and 25. So the government has also indicated that an amount of 50,000 per borrower will be passed on as a prompt payment incentive, and this will not go to the loan accounts. This will be credited to their saving banks account. So we have even done that calculation that I would get 775 crores of SB balance if this debt waiver has to come. So we don't see a major challenge. Whatever things would have happened, I think the pain would have been already seen. Now is the time where it is Q2 or Q3, we may see that if debt waiver is actually coming and sanctioned, and the state is passing the funds, we will see these two positives happening in the bank.

Understood. And on the second question regarding, you know, if we see some stress building up in the second half, are we in a position to price our loans better, even if there is no rate action?

So I think banks are free to look at the pricing part. And when we have been saying that we will grow and grow profitably. So if the risk underlying are there, we always look at pricing the risk, pricing the accounts or pricing the facilities that we are extending carefully. So, if there is a risk, enhanced risk, increased risk, we will take a suitable call and price the risk that we see coming to the bank. So, this is one part of it, but as we initially, I also mentioned, one has to really wait and watch and see how much and by when we see the impact of this Pesticia crisis. I think one good thing if it can be happening is at least the crisis find a resolution and we end the crisis. So then we can actually see. But we are very closely monitoring the likely portfolio and any benefits or anything which is flowing from the regulator dispensation or from the government. We are fully committed to see that the benefits get passed on seamlessly to the eligible category of borrowers or even the retail category. Whatever is getting to announce, we will follow that. It happens seamlessly, and that's how we will also de-risk ourselves in the process.

Sure. Thank you for answering my question.

Thank you. Thank you.

Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants, we request you to please submit your question to two participants. The next question is from the line of Ashleesh Shonjee from Codex Securities. Please go ahead. I'm sorry to interrupt you, Mr. Ashleesh. We are unable to hear you. Your voice is breaking.

Thank you. Can you hear now? Please go ahead. Yeah. There are a few questions from my side. Firstly, if you can explain the movement of the net worth because it seems like your net worth has declined quarter on quarter by about 200 crores in spite of a profit of 2000 crores for the quarter. That is one. Secondly, your gold loan book has declined by some 70% POQ. So if you can explain that change. Thirdly, if you can share what proportion of your MSME book is covered under the CGT-MSE Guarantee. Fourth one, if you can share a segmental breakup of slippages. Yeah, those were my questions. Thank you.

Yeah, regarding the first question on network, if you see on counter-on-quarter basis, There is one moment regarding the AFS result, and second, the board has proposed dividend at the final dividend amount is around 12% and including the interim dividend of 10%. So considering these two factors, you see the decline in net worth on quarter-on-quarter

Sir, what would be the dividend payment amount, roughly?

Sir, the 22% comes to around 1,600 crores, 1,692 crores.

So, answering, sir, your second part, sorry, first, I think you asked about the decline in the gold. So, gold, I mentioned also, is our focus category to grow this portfolio. Year on year, we have, my gold loan book stands at 24,000 crores, which has grown by 53%. Some odd 5,000 crore is where we have gone for co-lending arrangements, and we have signed up co-lending arrangements now with nine leading NBFCs, all A-rated and above, and we have done sizable business in co-lending with gold NBFCs. So, the Mutrups and the other two, three companies where we have signed. So, what has happened this 1st January, 2026, RBI has come up with a fresh set of guidelines wherein the new model CLM1 was mandatory to be implemented. So we had almost an exposure of 5000 crore plus in co-lending with the three NVFCs, and the portfolio is a good yielding business to me, and portfolio is doing really well, but we did not do any fresh underwriting till the time we switched on from the CLM2 to CLM1 model, which needed some level of integrating my IT and developing, first of First of all, new underwriting mechanism with me and the NBFC, and it took time with NBFC. So now, by almost, I should say, first week of March, my portfolio, because I was getting huge collections on a daily basis, but I had actually stopped fresh underwriting. So, with first week of March, the CLM1 model is implemented, tested, and it is working fine, and I am getting RBI guidelines are allowing 15-day portfolio to be shared under the CLM1 arrangement, and we are, on a daily basis, building this book to come back to the earlier levels. Market is there. The gold price and our experience with co-lending partnerships has been extremely good. We are only happy to onboard more gold NVFCs as and when, I mean, they are ready with the CLM1 model and discussions are underway with getting more good rated NVFCs for this co-lending piece. So that partly explains what happened in the last quarter. And sir, last of your query, I got this figure, sir. CGT MSC 9800 crores is the portfolio. It is backed by CGT MSC guarantee.

Got it. And sir, last one was on the segmental breakup of slippages for the quarter. Thank you.

So, in retail, there is around 100 crores. In Agri, it is around 300 crores. In MSME, it is around 400 crores.

Sir, were we audible to you? March 26, fresh lipidges sector-wise were shared. Could you take down the number?

Sir, I noted retail 100 crores, AGRI 300, MSME 400 crores. Yes, sir. Corporate side of us?

Sir, in corporate, there is no sleep agi.

Understood, sir. Understood. Perfect, sir. Thank you very much for your detailed answers.

Thank you. Next question is from the line of PTRS from DSP. Please go ahead.

Hi. Good evening, sir. Congratulations, sir, first of all, on a great quarter to you and team. I was just curious to understand your thoughts on M part of the RAM portfolio. So, the growth is lower than the company's average. So, what are your thoughts? The growth is around 10%. But within that, the growth in medium and small is actually lower and declining. So, what are your thoughts on that? And the second question is on tax rate. It's not, it wasn't clear to me. You said it averaged around 15-16% this year. So what will that be when you say 2% ROA target for next year? What are you, I mean, what is the team internally building it? Thank you.

Yeah. So, Preeti, the ROA target for the next year, we have kept at 1.80. I just wanted to clarify that.

Coming to MSME, what is the tax rate that you're building here? Okay.

So let me first take the MSME. So MSME microbook has grown small and medium. And what we have done is like we did in the retail where we experienced a high double digit growth. In fact, 24, 25, and now even crossing 30. So we had last year introduced stringent underwriting benchmarks. So we stopped funding to retail segment individual borrowers where the credit score minimum 681 was not there. So there is no funding permitted in the bank and there is no discretion to any authority to permit any funding. So, likewise, in MSME, we have strengthened the underwriting benchmark, and we want to see that in this good growth times, can we have some big ticket and secured and good rated portfolio that can come and sit in our loan book. So that was the attempt, and that's when we initiated this, we did come to market and announce this, that we are doing the rebalancing in both the books, and simultaneously what we were attempting that every level, whether it's a branch or a CPC is what we call where the underwriting on linked branches is happening in AGRI and MSME, or a zonal level sanctioning. Thank you. We did see a dip, the YOI growth went down to 3-4%. But then after that, the pickup has started to happen. We also had some exposures to TREDS and we wanted to see that wherever TREDS has been allowed as a facility, are we part of the consortium or are we having other funding facilities with them? Alone threads, we perceived it as a risk that we are not able to actually monitor the accounts if we are doing alone threads. So a couple of these things were done. An idea was to create, to have a loan book, which is a quality loan book, where we have a proper control on what is sitting in the loan book. So, now it is almost 11%, around 6,000 crores we have grown, and we are not stopping. These two priorities and contribution from across all levels in the bank to sanction good, rated, agree, big ticket, investment credit kind of portfolios in agree and also in MSME will continue to be there. Till the time we are able to go back to our original levels of 15 to 16% growth in these two segments. And I'm just taking help of my CFO to repeat the answer for the tax part.

Yeah, ma'am, with regards to taxes, so on the OP, it is 13 to 14 percent effective tax rate is coming. So we are getting the benefit of rural advances and other things, considering all these parameters. So that is the normal tax rate. Now we are in the last three quarters, we are the normal tax paying and normal provision has been done. So as per the requirement.

So what should we build in for next year on PDT basis? Not OP on PBT basis.

It is around same level, because we are the, this year, we are in the normal level, so, yeah, 10 percent. 10 percent.

Yeah, on PBT basis, madam, roughly it will be around 18 to 50 percent basis.

For next year, right? For 27, I mean. Noted, sir. Thank you so much. Thank you.

Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to Ms. Nidhu Saksena for closing comments.

So, I think there's not much to add around this. We have also looked at upping our payout, dividend payout. So, 10 was the interim and 12, our board has approved. So, put together becomes 22. We also are growing fast and having a sanction pipeline. Thank you. Our last two years experience has been good. So we will continue with those efforts. We will continue with those strategies which are playing out well for us and giving us the results going forward. And we are fully committed to see that whatever guidance we have shared today, the team is meeting and we will be closely watching all these 17 and 18 parameters on a quarterly basis. And we keep coming to you with Thank

you for joining us and you may now disconnect your lines.