Central Bank of India (NSE:CENTRALBK) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day and welcome to Central Bank of India earnings call for Q2 FY 'twenty seven financial results. Please note 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. Please note that this conference is being recorded. With that, I hand over the call to Mr. Siddharth Rajkruvit from Systematics Institutional Equities. Thank you and over to you. Thank you, Sabnil. Good morning everyone and welcome to Central Bank of India's Q2 FY twenty seven post result earnings call. From the management today we have Sheikh Kalyan Kumar, MD and CEO She MV Murali Krishna, Executive Director She Mahendra Duhari, Executive Director Shri E. Ratan Kumar, Executive Director and Shiv Vivek Kumar, Chief Financial Officer.

0:57 I thank the management for giving us the opportunity and also congratulate the team for a very strong result. I'm handing over now the call to our MD, Sri Kalyan Kumar, for his opening remarks. Thank you, sir. Yeah. Thank you. My colleagues on the board, Sri Murali Krishnathi, Sri Doreji, Sri Rathankumarji, my senior team present here. And my dear, all the analysts and all through VC and also present here. Good morning. First of all, I congratulate each one of you for this good Q two twenty seven result. Your beloved bank, Central Bank of India, total business has a group has been actually grown by 20.54% to rupees 8 lakh $89,005.41 crore.

1:56 And total domestic deposits increased by 14.41% to rupees 5 lakh 8,509 crore. CASA deposit also stands at 44.65% of total deposits. Global advances increased by 29.83 to rupees 3 lakh 81,032 crores in which domestic advances stood at rupees 3 lakh $72,009.39 growth. Growth of 27% year on year. New entry, we have opened a Gift City branch on 06/29/2026. They continued in overseas advance of rupees 8,093 crores. And in this process, have given guidance for business growth 14 to 15% and we have achieved 20.54%.

2:49 In the growth, our guidance was 10 to 12% and we have achieved 14.41%. In advances growth, our guidance was 14 to 16% and we have achieved 29.83%. CASA guidance was 48% plus minus 1%. Here, due to obvious reason, due to FCRB mobilization and all, this we could not give the market guidance, and we closed down 44.65%. But towards the rent sector, retail, agriculture, and SME, as you know, Central Bank of India is having a 65% branch in rural and semi urban area. The rent being our bread and butter for this organization, this business grew by 21.11%.

3:39 The individual sector wise growth also is very good. Retail, we reached to level of rupees 1 lakh $12,002.99 crore and growth of 24.49% year on year. Agriculture reached to rupees $67,007.78 crore and growth percentage in 19.92%. MSN reached to level of rupees $74,001.96 crore, percentage wise growth is 17.36% year on year basis. This is also actually our guidance to market was... I am calculated rate. This was 65, 35 plus minus 5%, and we have closed at 68, 32%.

4:24 And that ratio actually also aligns with our market guidance which we have given. Towards our efficiency side also, being a spur employee has improved to rupees 25.26 per hour on year one year basis as against rupees 21.48 per hour for the quarter ended September 25. In profitability, year on year basis for September 26 quarter, net profit for the quarter has increased by 21% to rupees $1,004.69 crore, up from rupees 1,213 crore previous year. Operating profit for the quarter stood at rupees 2,268 crore from rupees $1,007.86 crore with a growth growth of 27%.

5:18 Net interest income grew by 26.28% on year on year basis to rupees $4,001.46 crore in q two financial year twenty seven as against 3,283 crore in q two financial year twenty six. Total income on q two financial year twenty seven improved by approximately 15% and reached to rupees $11,007.37 crore for q two financial year twenty seven. Cost to income ratio, though there is improvement, but still it is on higher side. It is 58.95% for q two financial year twenty seven, and against 62.42% q two financial year twenty six. Cost to income ratio, we have given guidance for less than 56%, But here, we could not match the guidance and close that 58.95%.

6:11 Major highlight I would like to make that apart from the stock cost that is 37.65%, there was 113 basis point improvement in other operating expenses year on year basis. Then as quarter on quarter also, it will give you comfort that quarter on quarter basis also, net profit grew by 11%. Rupees $1.45 crore in absolute terms to rupees $14.69 crore. Operating profit grew by 3.75% that is 82 crore rupee in absolute terms to 2,268 crore. Net interest income grew by approximately 6% to rupees 232 in absolute terms to rupees $41.46.

7:00 Interest income grew by approximately 7% to be 666 in absolute terms to rupees $10,003.57. ROA improved by three basis point and stood at 1.03%. Here, I would like to mention, NIM, have given guidance of three three... Above three, and we have maintained at 3.01%. And slippage ratio, we have given guidance of less than point 25%, and it is point 24%. Then regarding asset quality also, our gross NPAs to get 2.39%. That is also in line with our guidance given to the market that it will be below 2.50%.

7:45 Net NPA stood at 0.31%. That is also... There is improvement of 17 basis points, and that is also in alliance with the... Our guidance to the market. Provision coverage ratio stood at 97.16%. And regarding slippage ratio, as I told for quarter, it is 124%, and it is well within our guidance, less than one two five on quarter on quarter basis. In that way, I can tell you on almost all the parameter of efficiency except cost to income ratio and business per branch and CD ratio, I will highlight that also at least to 75%. Like, liquidity coverage ratio grew to about 56%.

8:30 Overall improvement in almost all the efficiency parameters and business numbers. And I really thank all our stakeholders, including our customers, regulators, governments, and all you beloved shareholders and stakeholders to this great organization, Central Bank of India. For what's my initial remark, I conclude here. Now I'm open to the questions. Thank you so much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may click on the raise hand icon from the participants tab on your screen. We will wait for a few minutes until the question queue assembles.

9:18 We are taking our first question now. We have Mr. Ashok Ajmera of Hatchcom Global. Mr. Ajmera, please unmute your microphone and go ahead with your question. Mr. Ajumera, we are waiting for your connection. Please go ahead with your question now. Please unmute your microphone and go ahead. Can you hear me now? Yes. Yeah. Mister Ajwala, would you like to try one more time? We are unable to hear you.

10:22 Alright, we will move to our next registered member. We have mister Susheel Choksi of India's equity. Mister Choksi, please unmute your microphone and go ahead. Congratulations to Team Central Bank for excellent performance and a sustainable guidance. Sir, I was looking at your business mix. And can you throw some color? You've guided on the CD ratio and the business mix for the second half. But can you see within RAM, where are you seeing growth? Or it's per ticket average housing loans, car loans, which are growing? Or any other segment like gold loan, which is become a major force at Central Bank, and you all have a very ambitious target.

11:07 That's what I hear from the marketplace. Yeah. Yeah. Thank you, mister Chokshi, for asking this very good question. Regarding business mix, we have seen ratio of corporate and our RAM is thirty eight sixty eight. It aligns with the... Actually, our guidance given to sixty five thirty five plus minus 5%. And growth of RAM sector was 21%. We reached the level of 254,273 crores and within which retail has grown by 24.49, agriculture has grown by approximately 20%, MSME has grown by approximately 17%.

11:52 So good growth in all these three segments and rightly told by you this is going to continue because Central Bank of India is having its presence. 65% branches are in rural and semi urban area, which gives us this capability to actually support this important part of Indian economy. We'll continue to grow with that. But rightly said by you, two latest growth engine. Previous quarter, it was also there. But here, during last two days, fifteenth and sixteenth October, we were going mid of midterm strategy meet with our... All general managers and regional leads. Collectively, we brainstorm regarding revisiting our strategy and to focus which area we must focus on how to grow, and not only the next half year, but in longer term also.

12:44 There, we have zero d important growth engine for more long side. We are going to open customized 116 more long branches where our tag would be maximum thirty minutes. And within that, all customization is being done. In workload portfolio, we are planning to add good amount of business in... Not only next quarter, but also next year, I can tell you. Another focus area is the SMG. We are having tie up arrangement with the 26 states in our own. And those are actually good opportunity to give loans to credit linkage to those SMG members that our return is also very good in SMG side.

13:33 And also, is very good opportunity to support these segments. In that way, this board on SMG, we are going to the focus area. Apart from housing loan, our more than 50% advances under retail comes from housing loan. This is going to be the flag carrier now also. Car loan also, better dealer tie up, both builder tie up and car dealer tie up are going on. And and more and more CASA accounts, salary accounts we are focusing about in this quarter. And Hughes actually planning we have done for centering into like educational institutes, the religious trusts and also hospitals and other transport operators in a big way because we have established our marketing setup at different places. 300 marketing officer we have recruited in our bank. So with that, workforce available and different products available for different segments of customer.

14:35 Those customer will give opportunity at... But particularly, salary account customer, good opportunity for cross selling of personal account alone also. These are going to be the... Our priority in next quarter. Yeah. Thank you. Sir, I asked you if you could give me if there's in average ticket in gold loan not only because of price but the borrowing pattern in the same for housing loan and car loan because lot of traditional Indians are moving from small cars to SUVs. The similar way, gold prices have move up and housing market is also 10 to 20% up on a national average basis. So is the number of loans increasing or the average ticket is increasing?

15:22 Both. I will give you one example. Very is increasing day by day. For housing loan also, car loan also. So depending upon the... Our credit underwriting and the ability of borrower, that is never a bar. And and, naturally, we are more focusing towards the good builder side where better ticket size is available. But as we are having our branching at rural semi urban where lower ticket sizes also, 30... Up to 30 lakhs, it is totally online basis. Around 30 lakhs, with the strength we Central Bank of India is having now.

16:51 Sir, two questions. How do you see CASA growing from here till March end? And the deposit base, I know your guidance number would be 12 to 14%, 15%, but strength of Central Bank has always been CASA. If you look historically over last fifteen years or ten years, despite being in PCA, that time also deposit was our strength, and the franchisee is very strong in Western Region. How are we strengthening further for cross selling this Casa base? You said about salary accounts, but what other factors including digitization, digital apps, cross selling? You have tied up with multiple insurance as well as mutual funds. You may be tying up for brokerage houses.

17:36 So to enhance Central Bank's strength with certain multiple new ventures. And second, what is the corporate pipeline looking from now? I understand we are very good at ramp, but a balance of $65.32, $65.35, or $62.38, what area of business are we focusing on corporate book to? And the third question would be your outlook on treasury. Yeah. Regarding NASA growth, rightly said by you, people love Central Bank of India. I think it's one hundred fifteen one hundred and fifteen years in service to the nation. Therefore, it is being reflected in our Casa numbers also and I will give you one number. Our Casa has grown by 9.23%.

18:26 We have passed 2 lakhs 2 lakhs to 26,774 growth. Growth of 9.23%. SEBI has grown by 9.32%. And currently comp also have grown. And actually, the kind of initiatives we have taken. As I told you, we have multiple customer acquisition center and also government business centers also we have opened. In that way, we are geared up to play whatever strength we are having geographically. You also told Western Side we have good presence, but we have we are having good presence in Bihar, 4,622 branches of Central Bank of India are having a percentage 50% and more.

19:26 That is the extent Central Bank of India is deriving due to its geographical presence and the initiative which we have taken since last one year, setting up of the customer acquisition centers, government business centers, placement of the 300 additional marketing officer. 200 to 50 marketing officers were already there. This 500,600 marketing team, and also we have started wealth management. It is just... We are meeting and we have agreed to some marketing officer at our wealth segment and we are going to in a big way from... I understand in January to June quarter, it may come in force only. But now we have started those things also to support our bank in mobile... Not only mobilizing good CASA accounts, but also mandating those Kasa account with us. The Kasa is the strength of this organization and with the initiatives which we have taken, certainly, it is going to continue. Great time also next year in June or like that we are going to start with our credit card transaction which will support in mobilizing salary accounts and all.

20:37 No doubt if salary account increases, then it will have good opportunity for cross selling for all the retail products and also selling of other ancillary business and everything would be there. Cash management services also is going to be launched very soon. Two modules already launched, other modules in next few months, are going to launch. That will support us in online learning, current account from our corporates and also new customers. Regarding your second question, corporate. In corporate, approximately 7,000 total, we are having on this first sanction. That that we are having. And under process is 5,000 total, and under consideration, 11,000 total.

21:23 To corporate loan book, 24,000 loan book under consideration we are having. In the very near future, we are sure that we'll get good traction in this corporate line. You see, previous year, our corporate book was 83,000 crore. This year, it has grown by 42%, 1 lakh 18,666 crore. That is good growth. And major area was actually roads, infrastructure and also data center, technology technology side. All these things were our focus area, LRD, lean work focus area, agri food processing, also some finances to NBFC, hospitality sector.

22:08 These were actually major area where we focused and in coming quarter also we are going to focus upon. Regarding treasury, you know, as treasury yield is arming. We ended by more than 7%, 7.19% yield during the September 30 period. Now also it is progressing higher, 7.2 by 7.40. So that actually due to global turmoil and also rising rate interest scenario and also rising inflation and also having US rate at 5.35 plus percent, that scenario actually doesn't bring comfort towards better treasury income. If you see our AFS, previous quarter from 843 to this quarter, how long '23 to rule, there was reduction.

23:03 Part to market challenge was there. And in that come... Look... Coming scenario also, we are observing as it is getting increased. In in that circumstances, from treasury, there are challenges. Though our treasury team has done good job, They are 56 crore by selling IPOs, by participating in IPOs. And also in the high yield condition, the reinvestment side also. We have... We will invest our... Reinvest our maturing the security and all to get a better benefit. The outlook of treasury, the best opportunity market is not good. You are aware because in AFS side, which is more exposed to market condition is a challenge. And it is, in my opinion, is going to continue in near future also.

23:53 But building our portfolio judiciously and look... Not only driving the interest rate, but also understanding properly and building our portfolio and reinvesting the things and the opportunity available within the law. I understood... I feel that treasury outlook will be would be challenged, but our partner could contribute to the profitability as it has contributed this quarter loss. Thank you so much, sir. Mister Chokshi, if you have any more questions, you can rejoin the queue. We'll take our next question now. We have mister Ashok Ajmera back in the queue here from H1 Global. Mister Ajmira, please go ahead again. Sorry, sir. There was some technical problem, and I have missed some of your replies also. Can you hear me now?

24:48 Yeah. Yeah, Miraji. You are always welcome. Sir, congratulations, sir, for a very good set of numbers. And the bank is really doing very well, sir, even under your leadership also. Sir, going forward, like most of the questions are initially your address you have answered, but one is that on the ECL provisioning, I might have missed your answer that how prepared we are, what is the total quantum will be to be provided. So what is your... Can you give some color on that, sir? Some information? Yeah. Actually, ECL provisioning, we are... You know, we were smarter also. I told 1,525 code or stage one, stage two, we have provided till now.

25:40 And stage 300% provision is there. And bank is prepared for meeting this requirement. Models are being prepared, data quality and all all those aspects we are working. And we expect that we have given guidance previous quarter approximately 5,000 to 5,500 crore may be required. And with the kind of profit Central Bank of India is garnering, we are sure that it is not going to be a challenge for Central Bank of India for meeting ECL requirement as you do for implementation from first of twenty seven. Sir, uh-uh point well taken, sir. Sir, we are doing very well on the in the retail side of the loans.

26:27 Even our home loan rates are also very very competitive. Going forward sir, I might have missed your answer. What is the plan of increasing the corporate book and where do we stand and what is the average yield and now we are expecting from the corporate book and what is the sanctioned pipeline and the proposals which are in pipelines, sir? Yeah. See, previous year, if you see our corporate book in September 25 was 83,000 and this September 26, we have closed by 1 lakh 18,666 growth. Growth of 42%. And out of total book, 32% comes from this corporate side. There is increase of year on year basis, 42% in corporate book size.

27:19 And our... Actually, pipeline... Regarding pipeline, answering your question, pending disbursement is 7,000 plus crore. And proposal of 5,200 plus crore is ever processed, and 11,000 crore under consideration, they may come in the NDG and all. Approximately 24,000 crore, corporate loan book at present we are actually having. So you will have good growth in corporate side. Regarding the... This year, our overall average yield was 7.87% in the yield on advances, if I can tell you, 7.87. And major areas where we are focusing upon, it is renewable energy, roads, and also data center, some exposure in real estate, hospitality, and manufacturing segment, NBFC, Agri Food Processing, Logistics side, these are the major areas where actually we are focusing upon in this quarter and coming quarter.

28:28 Very good, sir. Sir, coming to the recoveries, recovery from the return of book has been decent. So, forward, what do we expect? We expect some more major bounty from this. What is our total return of book balance outstanding and how much we expect on an average in percentage term. Secondly, on the recoveries, you know that old aviation account, so what is the status there, that additional collateral which we had of 1,200 or 1,500 crores, whether that has been realized and how much recovery has already taken place, and how much more we do expect to recover from that account, sir? See, recovery written off was $4.85 crore in this water.

29:14 Good number we have got. Yes. Yes. Yes, If I talk about the pool, it is 31,301 per hour. We are having ample pool now also as of of written off accounts from where we can actually recover a good significant amount. Previously, you have seen more than 2,000 to 2,700 we have recovered for the full year. This year also I find sufficient ground and sufficient resources available to recover 2,500 plus crores in in this segment. Regarding answering your aviation sector account, recovery is expected in q 700 crores pools are facing. And, Sarkisi, the auction process is going on, and we have got... You know, also, we may get 700 crore in this Amazon account in the...

30:04 This current quarter or next quarter quarter. There are other accounts also, big accounts also and smaller accounts also from where we will improve our recovery recovery numbers. I can assure you that kind of book and things available with us. Recovery numbers are going to be better what we have done in this quarter. I am fully confident about that. Very good, sir. On the recovery for the small account in that... Under the OTS, how are we framing our policies and where... Are we liberal to get at least those accounts where 100% provision has already been made and the securities are minimal? What is our emphasis of recovering on those small recoveries which may make good amount in the absolute terms?

30:50 Thank you, Anuraji, for asking this position. See, the smaller accounts for that special OTS scheme, we have got approved from our board. And it is very transparent process. We are coming with this technological capability. We call it EOTS. And here, aid of NPN, our ability of security and provision. These are the... But I'm... A logic to which system itself derives that this amount you... If you pay, and all these things are going through a very effective tool and support us in recovering desired amount as per regulatory guidelines and also cleaning up our books.

32:11 So that side also our focus is there And auctioning the property available, political security are there. I am giving you one example. Previous year, total auction of properties were 485. This have have have So And through OTS mode also, we are recovering to significant amount and closing those accounts through years also. So that is... That way, I can tell you from recovery side, asset quality which we are observing two point three nine and one three one net MPa.

32:56 It is going to be continuously... You will find improvement in these numbers in coming days. Thank so Yeah. You so much, sir. Mister Ajmera, if you have any more questions, you can rejoin the queue. You can click on the raise hand icon again if you wish to ask a question. We'll move to our next participant. Before that, reminding all the participants, if you have any questions, please click on the raise hand icon from the participants tab on your screen. We are taking your next question now. We have Mr. Rajesh Agarwal of AUM Capital Markets.

33:44 Mr. Agarwal, please unmute your microphone and go ahead. Thank you sir. Good morning Mr. Kalyan. Good morning. From the last few quarters we have been tracking Central Bank and let me congratulate you for the kind of numbers that we have given the last quarter and followed by this quarter. It was really good, I would say. And we are very would say we are very satisfied with the kind of numbers because we have recommended to so many of our clients. There was just one query which I would like to have a clarification like reported gross NPA, net NPA, slippages, they all improved, yet provisions went up.

34:34 Can you throw some light on the breakdown of the provisioning, whether into standard assets or floating or technical. Why this specific provisions went up and which segment maybe specifically retail, MS, CE, or unsecured lane, where are the reasons for this higher provision? And the last one would be, what is your credit cost guidance for FY '27? Yeah. Thank you, Rajesh and Raghuramji for your good words for Central Bank of India. You are right. Our gross NPA, net NPA, and CBI ratio are are under control. And provisions have provisions have increased actually.

35:21 And grade cost also you see one five three is the... In this matter. Though though they are very busy because grade cost we have given guidance of that need to be remain up to point seven five percentage point 53% and BCR is 97.16%. That is also well within our guidance given to the market. But reason... What you have asked, actually, you know, we must build enough provision in good times for facing any challenges or anything which may come in future. With that, it is very resilient and I will say the resilient approach which bank has taken. And for that purpose, you we must have been observing our provision that we have increased since last quarter.

36:12 That that is the main reason. Otherwise, actually, out of another one important reason, Our standard advances also have grown significantly because previous year on September 25, provision on the standard advances was 30 or 37 or at least three ninety nine. The debt to increase is there. These are the reason behind improve... Increase in trade cost side. Hope I have answered your question, Rajesh Akhwaji. Thank you, sir. Thank you so much, and best wishes for future quarters too. Thank you so much sir. Thank you Rajesh. Thank you. Thank you Mr. Agarwal. Requesting participants to please click on the Raised icon from the participants tab on your screen.

37:01 We'll take our next question. We have mister Ashlesh Sonke of Kotak Securities. Please unmute your microphone mister... Please go ahead. Hi team, good morning. Sir, few questions from my side. Firstly on the ECL, you have reported a credit cost of roughly 50 basis points in this quarter. Do you have a sense of how much your credit cost will be next year after you have transitioned to the ECL regime? Yeah. Aslias, thanks for this question. Actually, ECL, we are preparing. I understand better... The banks which are having better credit underwriting would would have better control over the trade cost.

37:54 And this year, trade cost point five three is... Actually, you must have observed what the answer which I have just now given you. That is a technology. We have just to give you comfort and you... Make you understand in a better way how Central Bank of India is doing that. On preparing itself to face the consequences of implementation of ECL that will give you answer. March 25, our CBI ratio was 1.47. March 26 is scaled down to 1.16. And this quarter, it is point two four. And for half year, it is point four one to 4.45. What I need to see it, we have... We are preparing ourselves, graduating ourselves to take challenge of ECMO or starting from better grade underwriting quality.

38:47 So there, we are having one processing centers that we call CPAC, grade processing center, which is normally at all regional office, the CPAC setup is there. Earlier, in principle, approval accept was not there. It is... You all are aware that our branches, written writing skills are very rare. Therefore, all branches, whatever leads they are generating, they will send to they will send to the credit processing centers at regional office. They will give it to the school sanction. And also, the underwrite... After that, better... The goal of this underwriting quality, after that, monitoring of those advances. Monitoring match mandates, SIE, and also proper alignment with the field force, feet on the street persons, and also regional collection centers, head office, ward room, and all the technological capability also for generating alert... Early warning signal alerts and acting upon those alerts in a very structured way we have implemented these aspects.

39:53 Therefore, trade quality division is doing good job in maintaining good asset quality. It's starting from underwriting to post trade monitoring also. So in that way, I can tell you that this trade cost... Next year also, I am expecting quarter on quarter basis. It is going to be remain less than point 75%. I... Up to point 75% only. This guidance which we have given, we are going to maintain this guidance in next year also. I hope I answered your question. Understood, sir. Sir, one follow-up there. On the ECL one time transition, you indicated that the quantum is roughly 5,000 crores. That would be taken as a direct hit to the network on the April 1. Is that understanding correct?

40:43 Actually, see, our total requirement will be 5,000 to 5,500 crore. Out of that, $1,005.25 crore, already we have given... Kept that additional provision. So the difference only we'll have to take, and the way we are making profit, it will not be a bigger part. And the options given by regulator both taking one time hit or staggered, we'll discuss together and we'll get a call on this. Currently, I am not in a position to comment on this part. Whether I will take at one way or will it stagger it. Understood, sir. Sir, and just one last thing, the ROA seems to have improved quite a bit over the past few quarters. Is there is there some... Can we assume that this ROE will remain, let's say, about 1% for the foreseeable future?

41:34 I am fully confident that ROE is going to be above one. The guidance which we have given, I am still agreeing to it. And I am sure because in the... See, 25 basis point, the board rate has increased. We have maintained our deposit cost of deposit at 4.60% and yield on advances 7.87%. Now we are focusing upon board loan side side... S and G side. We have the growth in this where we are focusing upon apart from our retail and SME. Our 61% loan book are linked to external benchmark link. In rising rate scenario, which we expect, our books are going to be more... Actually, it is going to benefit our our book side. In that way, I'm sure that our ROI is going to remain above what?

42:24 I think this expectation holds true for, let's say, next year also, FY '28, FY '29. Is that an endeavor you have? See, our endeavors are like that, but situations are changing very fast. It would not be prudent to comment upon for next year because, you know, things are changing very fast. Global conditions are also impacting that... Within country also, at the one side also, this external benchmark lead program rate, am... 61% books are belonging to that. Bordelon would have very good traction always, and SNG also could release there. Therefore, am hopeful that, our other way is going to remain above one.

43:32 Understood. Perfect, sir. Thank you very much for answering my questions. Thank you, Ashish. Thank you so much. Requesting participants to click on the raise hand icon from your participants tab on your screen. We are taking our next question now. We have mister Deepak Kala of Rimurthy Enterprise Private Limited. Please go ahead. Hello. Yes, please go ahead now. Yeah, good morning sir. First of all, congratulations for such good numbers. Sir my question is on yield on advances. When I see the yield on advances of our bank it's comparatively lower when we compare it with the other banks.

44:20 So could you please tell me the steps we are taking to increase the yield on advances? Yeah. Deepak, actually, thanks thanks for this question. You are right. Yields on advances 7.87. As I told you, this is actually for this quarter also, and our year quarter also, if you see our more than 61% book are linked to external benchmark. That is a report. But this... And previous year, one twenty five basis point reduction was there in reference lending rate. And that has impacted our book very high. And if you see the cost of reporting side, as it is a contract based, it takes time. It comes with lag when it gets stabilized.

45:09 The target is 4.60. And Elon advances, that's why we were able to manage NIM of about three and our way more than one. So ill loan advances, that's why we were biggest impacted. Our portfolio actually impacted due to those rate cuts. But in coming scenario when rates are... There are scenario when rates are going to increase. So it will benefit in the improvement in yield on advances, one thing. And another aspect which is also very important, more loan. More than 8.5% is the average yield which we derive from the board loan side. And we have built built 41,000 crore. That is a good growth and with that kind of initiative board loan sale we have established under under direct leadership of our executive director business.

46:05 And is going to be because six eighty six branches we are having in South India. We are focusing upon Chennai and Hyderabad, these two zones onboard on-site. But that will also support us in implementing deal. As a team, more than 26 states, we are having tie up with NRL. They are also great linkage with SNG. They are also good and done and really less NPAs there. That's why I think that was a focus area where I am expecting that reload and losses will increase in coming quarters. Sir, thank you for the answer. Sir, one more follow-up. I want to know about the investment in technology the bank is making because when I compare the apps of our bank and when I compare it with the apps of the biggest bank in India.

46:59 So there is some difference in the technology and interface. Deepak actually see current customers wants very good technological platform. There is no second thought about it. And where mobile banking and other technological, like Internet banking, like, all these user experience is very important. For that purpose, we have created new banking emerging department, a meeting. And person who can understand customer's requirement, he heading that division. He was earlier heading our biggest zone. We have just... We have given them this opportunity to lead this division so that the person who have better understanding about user experience so that we can bring a fine tune changes which is desired from the customer's perspective.

47:59 It is our topmost priority what you are indicating, I understand. And that area, if not improved, then all the improvements we can sustain that also. I agree with you. For CASA or any other user experience is very much important. But that is... That I can tell you, and a lot of initiatives we are taking in in digital side also. 45 Japanese already we have launched. We are revisiting also so that looking to the change of customers' choice or also having better alternatives provided by our competitors. We are also fine tuning all those journeys and channels to improve user experience. That is topmost priority, and in the next quarter, you will find significant improvement in these areas also.

48:48 Thank you for the answer sir. That's it from my side. Thanks Deepak. Thank you. We'll take our next question now we have Siddad Rajpourouit of Systematics Institutional Equities. Siddharth, please go ahead. Yeah. Thank you for the opportunity. Sir, so sir, our NIM has come down, say, five basis point this quarter, but say, report Yeah. We are now, sir. Are you available now, sir? Have to be Yes. Yes. Yes. Yes. Okay, sir. So, sir, so the repo rates have started to move up. So what is our assumption? Will our margins also improve from q three?

49:33 Yeah. See, as I told, our advances book... Total advances book, 68% is a ramp segment. Out of those, 61% linked to external benchmark. And that if in repo rate, reference rate increases, then suddenly there is positive impact on yield of our book portfolio. Therefore, there are every likelihood that margin will increase in this increasing rates. Sir. And, sir, how do you see, sir, our gross slippages are kind of hovering down for the last three quarters. But what is your understanding, sir? How do you see the implications of only few stay one state has declared drought and others could also?

50:25 So how do you see this scenario evolving? Do you see any impact on the collections in the rural areas? First of all, in this quarter, we didn't sense any such kind of stress signals. Recovery is very good, including agriculture site also, except some places like Pune, June. There was a slippage in agricultural segments. There might be other regions of body. And... But apart from that, we didn't find any signal of distress in asset quality in a rural area, particularly you are asking about rural area. That's why there is significant drop in sliverages number. And thanks to vertical CR and B for taking all the corrective steps and proactive steps rather.

51:18 And also, funeral soldier and technology integration, war to better coordination that has really supported us in maintaining slippage ratio. Regarding your question of Illinois backlog in the country, right, this might impact, but we have to look at in future how it actually progresses. Current time, based upon my experience of this quarter, I I can't comment that there might be a big challenge. But how it pan out in coming quarter and afterwards regarding this dot, let data come, then I will be in a position to comment about this. Okay, sir. So that So that was a reversal in provision in the investment part in the SRs.

52:03 Can you throw more light on that, sir? Reversal of provisions. Well, there, I'm not sir. Mister Oscar will answer this one, please. This is... Good afternoon. This one is mainly on account of we have received some amount to as a part payment. Yes, That's okay. We received the the. Other security receipts, sir. Other security. We have received some amount as a part payment. That's where the provision made is lower when compared to the previous quarter. However, we made a 100% on that one. So outstanding reduced. So we have seen that reversal in the project.

52:53 Yeah. Okay. Yes. Yes. Yes. Yes. Clear. So and what what is the total disbursement sanction and disbursement under the ECLGS scheme now? The ECLGS 5.0? Sir, under ECLGS under MSME segment, we have sanctioned around INR 4,000 crore and out of that, fully we have disbursed only 50 to 60 crore is balance remaining for the disbursement. Okay. And sir, have we what is the amount of FCNRB deposits that we have raised in the quarter? Yeah.

53:38 We have raised a good amount. Actually, $926,740,000 US dollar across seven thirty one accounts. Sorry, sir. What nine is 26,740,000 US dollar across seven thirty one accounts. Yeah. Okay, sir. And what is the overseas loan that is provided against this deposit, sir? 794,600,000,000 US dollar. Okay. And, sir, the... What what is our current average LCR? Average LCR. That is 156%.

54:26 Okay. So... Okay. Yeah. Okay, sir. Thank you. I am done. Sudhak, thank you. Thank you, mister Rajkurvit. Since there are no more questions in the queue, I will now hand it over back to the management for closing remarks. Over to you, mister Kumar. Yeah. Thank you. And and really, from all of my heart, I thank all the stakeholders. And I assure that in coming quarter and also next quarter, the kind of interventions we have taken on bringing overall improvement in people's process and technology will certainly going to sustain these numbers. And also, there will be significant improvement in efficiency number in coming quarter. Once again, thanks for connecting, and thanks for showing interest in Central Bank of India. Thank you.

55:22 You so much. Ladies and gentlemen, this concludes the Central Bank of India q two f y twenty seven earnings call. Thank you all for your participation. You can now click on the leave icon to exit the meeting. Thank you. Thank you everyone.