Good evening, everyone, and welcome to Bank of Baroda's Analyst Meet for our financial results for the quarter and half-year ended 30 September 2025. Thank you all for joining us. We have with us today our MD and CEO, Debadatta Chand, and he's joined by the bank's Executive Directors and our CFO. We will start with a brief presentation on the results, followed by opening remarks by Dr. Chand, and then we'll have the Q&A session. Chand sir, I would request you to begin.
Thanks, Piroja. Just to introduce the management team, I'm Debadatta Chand. I'm the MD and CEO of the bank. I've been interacting with all of you for quite a while now. With me, Mr. Lalit Tyagi. He's the Executive Director. He looks after the Corporate and Institutional Credit, the International Banking, and Treasury for the bank. With him again, Mr. Sanjay Mudaliar. He's the Executive Director. He looks after all IT functions of the bank and also the Retail Asset of the bank, which includes all the housing and all those loans we talk on the retail side. With Mr. Mudaliar, Madam Bina Wahid. She's the Executive Director. She looks after all Control and Assurance functions, more importantly, the Operation Department, the Risk Management Department, and also with regard to the Retail Liability franchise of the bank. We have the CFO, Mr. IVL Sridhar.
He has been there also for, I think, a couple of interactions now. With this, Sridhar, over to you. Have your presentation.
Thank you, sir. Good evening, everyone. It's my privilege to present before you the financial highlights of Bank of Baroda for the quarter and half-year ended 30 September 2025. Our global advances have grown by 11.9% year over year, with domestic advances growing at 11.5% and international at 13.8%. Within the advances book, the bank has continued to focus on RAM advances. Our organic retail book grew by 17.6%, agriculture 17.4%, and organic MSMEs grew by 13.9%. Corporate loans have grown by 33% year over year. Within the retail segment, we have seen smart growth across the portfolio, with education loans growing by 14%, home loans at 16.5%, auto loans by 17.7%, personal loans by 18.6%, and mortgage loans by 19.8%. In terms of the deposit growth, our total deposits have grown by 9.3%, with international deposits growing by 7.2% and domestic deposits by 9.7%.
The domestic CASA deposits have grown by 6.6%, and the term deposits have registered a growth of 11.7% year over year. As of 30 September 2025, the bank credit-deposit ratio stands at 85.26%, and the CASA ratio stands at 38.42%. With regard to our quarterly profitability metrics, please note that in Q2 FY 2025, the bank had a one-off recovery from written-off accounts, which has elevated the base. Our operating profit for Q2 of FY 2026 stands at INR 7,576 crore. Our net profit for Q2 of 2026 stands at INR 4,809 crore. Without the one-off item which I have mentioned earlier for Q2 of FY 2025, the growth in net profit would have been 22% for Q2 of FY 2026. Return on assets remains consistently above 1% at 1.07%. The return on equity stands at 15.37% for the quarter.
Regarding profitability, our operating profit stands at INR 15,812 crore for the half-year. Our net profit for the half-year stands at INR 9,351 crore. Return on assets remains above 1% at 1.04%. Return on equity stands at 14.95% for the half-year. With regard to our key ratios, our yield on advances stood at 7.81% for the quarter and 7.95% for the half-year. Bank's prudent liability management has led to a sequential decline in the cost of deposits for the quarter, which stands at 4.91% as against 5.05% in the previous year's quarter. With regard to our net interest margin, it has sequentially improved by five basis points to 2.96% for the quarter. It stands at 2.93% for the half-year. Regarding asset quality, we have the best asset quality, and it continues to remain robust. Our gross NPA ratio has improved by 34 basis points year over year and stands at 2.16%.
Net NPA ratio is below 1% at 0.57%, an improvement of 3 basis points year over year. Our provision coverage ratio, including technical write-offs, is comfortable at 93.21%. Our slippage ratio for the second quarter of FY 2026 has reduced by 16 basis points year over year and stands at 0.91%. Credit cost remains low and stands at a level of 0.29% for the second quarter of 2026. Without the floating provision, the credit cost would have come down even further. We have made a floating provision of INR 400 crore as a prudent measure. Coming to our SMA and collection efficiency, our overall SMA 1 and 2, as a percentage of our standard advances, stands at 0.39% as of September 2025. Our collection efficiency, excluding agriculture, remains robust at 98.6%. Regarding the capital adequacy, we have a strong capital position.
Our capital position as CET1, as at 30 September 2025, is 13.36%. Tier 1 capital adequacy ratio is at 14.15%, and overall CRAR is at 16.54%. Our liquidity coverage ratio remains healthy at approximately 121% as of September 2025. Adjusted for the profits of the half-year profits of 2026, capital adequacy would have been 17.36%. Thank you.
Thank you, Mr. Sridhar. Let me add a couple of minutes, only some qualitative comments. As we said earlier also, the bank strongly believes in how to strengthen the fundamental parameters of the bank. Our performance has been consistent for many years, many quarters, in terms of the numbers that we give to the market. In the context of that, let me again thank all analyst friends who are joining today. A very good evening, and thank you very much for joining on a Friday evening with us. In terms of numbers and all, we have yet another sound and good quarter as far as Q2 is concerned. On the business number, already a provisional number we announced some time back. All of you have taken note of that. On the media coverage with regard to a strong growth, I have nothing more to add to that.
Only I will highlight on the advances side. Our advance growth is propelled by the RAM growth. You would have seen the retail growing at 17.6%, agri at 17.4%, and the MSME at almost 14%. The second aspect again on the asset book is the corporate growth. Some of you possibly would be looking at a number at 3% now. Let me give a couple of comments on that. The corporate growth, seasonally, we have a weak Q1 and Q2 always, and we pick up in Q3 and Q4. Last year, we had a growth of almost 10% to 11% on the corporate book, and this year also, we expect to grow at 10% to 11%. Saying so, I mean, if you look at the sequential growth on the corporate book, although the year-on-year is 3%, it's at 8%. You can believe the momentum there.
We have strong pipelines to support a growth of 10% - 11% as far as the corporate loan group is concerned. Deposit, you would have seen on the overall growth that we already announced. At the same time, let me make saving has been one of the consistent. We must be mapping out our numbers with peer banks, and we have been consistently output, although the growth is low, as the growth used to be in the earlier years. It has been one of the consistent output of 1% - 2% on many large peers. Our focus continued to be on the low-cost deposit, and that is what we believe strongly. The focus continued to slightly deleverage on the bulk deposit, and we have been doing that for the last two and a half years.
The outcome therein, because that we say prudent liability management, which the CFO talked about, I'll tell you a couple of outcomes which you can take note of the numbers we presented. Our CASA percentage is 38.42%. That is one of the top quartile in terms of number. You must be mapping out all banks. There we are at 38.92%. My interest expenses growth this quarter is 4.9% as compared to more than 9% growth last quarter. That means typically on a trajectory where typically we debate with regard to the repricing of asset liability, now we have a control on the interest expenses. What is the outcome? The first time, maybe you would compare our own NIA growth last quarter, which was negative. The NIA growth this quarter has been positive.
This positive, when I say repeatedly positive, you can very well compare the NIA growth happening in the system. At the same time, the net interest margin where we talked about the margin compression or pressure for two, three quarters now, we have improved the NIM. The NIM has improved from global from 2.91% to 2.96%. The domestic has improved to 3.10%. The international has improved. Overall, the prudent pricing strategy or liability management or asset management is helping us to maintain our margin or improving that. The ROA and ROE, two factors which, again, on the profitability, it has been better than the last quarter and better than the last quarter and the same quarter of last year. The impact of the prudent management is helping us in terms of maintaining the qualitative, what you can say, income earning potential of the book.
That is very, very fundamental as far as the bank is concerned. As I said, the net interest income is at 2.7% positive as against a negative growth we had in last quarter. On the operating profit, as Mr. Sridhar has rightly mentioned, Q2 of last year, we had a one-off from one of the NCLT resolution account, which has a significant upon. The pre-tax benefit of that is almost INR 900 crore. In that comparison, both at the operating profit level and net profit level, there has been a, I mean, the same quarter comparison last year, there is a degrowth or there is a negative growth. The sequential growth in the net profit has been positive by 6%. We had almost INR 4,500 crore of net profit in last quarter. We are almost at INR 4,809 crore of profit in this quarter, which is a 6% growth.
This net profit we looked in the light of the floating provision that we have made up to the extent of INR 400 crore. That's the prudent provision we have made, keeping the ECL framework in mind and taking the entire floating provision to INR 1,000 crore. These numbers are to be looked at in the context of the floating provision that we have made of INR 400 crore and continue to buffer this particular floating provision. Although there is no guidance for the matter, we will try to buffer it more as we move forward. On the asset quality, one of the best quarters I can see, touched the best quarter we have in this quarter. Gross NPA of 2.16%, net NPA of 0.57%, slippage ratio of 0.91%, credit cost of 0.26%. These are the numbers which are better than the last quarter and the same quarter last year.
A couple of points, I would say. The fresh slippage of INR 2,669 crore, this is in terms of slippage better than the last quarter and the same quarter last year. The cash recovery has been better than the last quarter and the same quarter last year. The upgradation has been better than the last quarter and the same quarter last year. In the summary note, I can say this is one of the best asset quality. When I say we believe in fundamental growth of the company and the bank, this is one of the points which is driving along with the top line, bottom line asset quality. We want to maintain at a very good level, a pristine level. However, going forward, we maintain the slippage guidance at 1% to 1.25%, precisely maybe probable headwinds be there in the geopolitical scenario that are evolving.
The credit cost below 0.75%, although the current credit cost is much lower than that. On a business front, I will just tell one point that the cost of deposit is at 4.91%. In case you are mapping out the industry cost of deposit, this is one of the lowest points we have reached on the cost of deposit. That talks about the prudent liability management that we are talking about for the bank. On the business front, we continue to focus on the IT digital, trying to innovate, trying to make our system robust, protecting for cybersecurity threat. That is something we need to be ahead of the curve, and we clearly intend to do that. We want to improve our customer service further. We want to improve our service delivery further, and we're working on those things. On branch banking, I say we are reimagining the branch banking.
You would have seen the bank rolling out a unique concept called phygital branches. We have 10 branches now. I'm not going to go into details. You can see that in the literature available on the website. We deployed a virtual branch in those phygital branches where a human-like robot can interact on a live basis with you. These are a couple of things. A couple of other things where we are again working is that the ESG has been a core theme. We have been very strongly working on the ESG mandate. We announced our ESG policy of net zero by 2057. Recently, we created a BOB forest in the BKC area, almost 6,000 square feet of area where hundreds of plants from the Sahyadri range have been planted over there.
It's a BOB forest which is planted in BKC, where we are talking about the commercial area of Mumbai. We will be replicating this BOB forest concept across. This is typically in line with our ESG mandate. We think ESG is one of the core mandates. The bank has the responsibility, and we should do much more on that. With this, again, I'm thanking all of you for joining today. Piroja, over to you for question and answer.
Thank you, sir. If you have a question, please raise your hand, or you may type your question in the Q&A box. One request to please limit your questions to just two. Thank you. We will start the Q&A session with Mr. Ashok Ajmera. Sir, if you can please unmute yourself.
Good evening, sir. And Jal saab. Compliments to you for another good quarter of good set of numbers. At least on the net profit level, even though the operating profit is substantially down. Because of the lesser provision being requirement, the net profit is very comfortable. It gives a comfort because ultimately everybody looks at the bottom line of the bank. On that front, at least all is well. Now, having said that, my few standard questions and some observations, sir, which always encourages us to analyze the things properly for the time to come. One thing is, sir, in this quarter, though the credit growth is this quarter is reasonably good, because of the fall in the first quarter, overall in six months, we have grown only by 3.93%. As far as the credit is concerned, net credit is concerned.
If you look at your 11%- 13% guidance, and even if you take average 12% guidance, you need to have the total credit for the FY 2026 of INR 1,48,000 crore growth. We have achieved only INR 48,000 crore. Almost INR 1,00,000 crore growth in the next five and a half months or six months is required to be there to meet the kind of guidance. On that, sir, where do we stand from the point of view of the sanctioned pipeline and the strategy? Too much of reliance on retail, I think, is not going to sustain for a longer period of time because everyone is chasing a retail book. You have to ultimately rely on corporate also for increasing our credit growth. What are your views on that, and how do we plan to achieve that?
That is my first question because in the business growth wise also, we have grown only 2.82% in six months of FY 2026. This is. I'll come back with, shall I.
You can. I've noted. You can go to the next in case you have to.
Our operating profit is also down because of mainly the treasury profit, which has almost gone down by almost 50% from INR 2,226 crore to INR 1,086 crore because of the pressure on the treasury and because of the rate movements. If you can give the color for the remaining two quarters to come, even though we are expecting a 25 basis point cut at the rate cut still, how is this time lag you have planned and how we are going to get the benefit in now remaining five and a half months of this quarter to improve the treasury income and thereby on NIM front, you have somehow maintained and rather grew. How will it help to increase the NIM further? This is my second thing, sir.
We have eaten away 1.07% of the basis points, 107 basis points from the CRAR in this quarter, so even though the profit will be added at the end of the year, how do we plan to match the credit growth, which is required substantially to be increased? Whether we, the capital adequacy on that, if we can have some light from you. Last one is that we have given only SMA just percentage that we are about 0.40%, 0.39%. We have not given in the absolute number, and especially the breakup of the SMA 0, SMA 1, SMA 2, which gives an idea of what is going to come in future. These are my few observations and some questions and some impressions which I want to have from you, sir.
Thank you, Ajmera sir. Thank you very much. Thank you very much for being the first one to ask on the analyst side. We expect always you to ask the first question. Let me make a couple of points that when you look at the net profit, look at the net profit growth this quarter sequentially 6%. When we are comparing with the YOI, there is a degrowth because the last quarter we had some one-off that we already clarified. Otherwise, the net profit is strong, INR 4,800 crore. I mean, you may compare with the system also. That's quite a good number. The net profit also, INR 4,800 crore, to be seen in the light of a INR 400 crore floating provision made by us.
That actually, as we said, we are just looking at the ECL migration and how do we prepare ourselves in terms of migrating to ECL, this may not be adequate. We think of how do we create more buffer on this. The corporate credit loan book, the retail going to be is doing good. In terms of the numbers, the quality of book that we look at, I don't think any challenge at this point of time to slow down the retail growth. I mean, retail, the RAM will need to grow faster. That's a portfolio which gives a diversification benefit. That's a portfolio which is highly collateralized as compared to any other portfolio. That's a portfolio also gives me good yield besides any other portfolio. We continue to grow on the retail as it is. On the corporate loan group, yes, I do agree things have been muted.
Muted not only for us, for the system. When you compare the growth in the earlier years, we need to focus on corporate, no doubt about it. Q3 and Q4 are normally the better quarter for us in terms of corporate growth. I think we are giving a guidance of 10% - 11% growth. We'll be in a position to achieve that. There are two, three elements that we must account for while looking at the corporate growth. One is that the core corporate is going strong. The area where we are slightly restrictive because of a margin guidance is a very fine price asset where how below you can dip in terms of taking an asset. These are typically refined deals or very high-rated corporate deals. There, as of today, we are restrictive because thinking Q3 can be better.
In that way, we are not losing out any business opportunity in terms of the corporate growth. We are sufficiently providing money to the market in terms of growing on the corporate. The second thing that many of our own corporate when in the first quarter or the first half, they have gone to the bond market in terms of raising money through CP and other instruments while, again, not availing on the loan side. We have seen a trend they are coming back to the loan market. That is point one. Point two is a case where, look, a bank like us again participates in those markets as part of the investment. Whether it is a credit or credit equivalent, I think banks are sufficiently providing liquidity to the corporate sector.
I don't think you have to club both the things to understand whether money is flowing to the corporate sector or not. Money is flowing from the banking system to the corporate sector at a decent pace, although the corporate loan book would see different. Thirdly, which is important, I also request because you all always analyze banks. The corporate that we publish in the analyst presentation is the pure corporate. It's an organic book. We give another component called others, which is below that, which is consisting of stock loan or the inorganic book. The same classification may not be available with other banks. In that way, it is not comparable. I tell you the growth that we have is the corporate. It's a pure organic corporate book. I think in case the data is available for all the banks, then we can have a comparison proper.
In that way, we are quite happy with regard to the way we are passing out the corporate growth. We'll operate at 10% - 11%. We need to focus on corporate, no doubt about it. I think the money which has gone to the retail sector would drive consumption, and that would drive the private capex going forward. That's a story that I'm, that's a narrative that I'm working on. Treasury income, you are right. The operating profit we have declared this quarter is the normalized quarter. We have no one-off here. Going forward, also, we look at similar operating profit or any one-off happening because of a resolution coming out of a TWO account or a return of account or a higher treasury income because of the bond price movement going down, the yield going down. I think we can upsize the operating profit going forward.
INR 7,500 - 8,000 is a normalized operating profit range for us. CRAR, we are quite adequately capitalized. Excluding the profit, the CRAR, including profit, the CRAR is 17.36%. Even if the scenario, two things happened slightly put the CET1 down. We wanted that to happen. One is a case where the AFS reserve, actually, it has gone down because of the market movement. You understand that better. At the same time, a couple of AT1 redemption, we didn't replenish it, right? Maybe you are looking at a price point where you can replenish the AT1 bond also. That's why it has gone down. At current level, excluding profit also, we are heavily, highly capitalized. If you add profit, then it is almost 17.34%. I don't think any challenge on that.
We had announced to the market an enabling clause of raising capital, but I don't think that is needed at this point of time. If there is a need, we'll see at that point of time with a due articulation to the market. I think I have covered mostly the SMA breakup. Actually, the clinic data only we provide more than INR 5 crore. I think other banks also do provide that. Any granular data you want, we can provide offline to you.
Thank you.
Thank you, sir. The next question is from Rikin Shah.
Hi, good evening, sir. Thank you for the opportunity. I have a few questions, actually. First one, I wanted to check what is the total quantum of interest on IT refund in this quarter? What would be the NIMX of this one-off? A continuation to that would be, you know, this is the third consecutive quarter where we have seen a decent amount, probably on interest on IT refund. How should we think about it in the future quarters? I know it can be very difficult to predict, but do you expect more of them in the future? That's the first one. I have a few other. I'll come back after this question.
See, the IT refund happens as and when we get the refund. If you look at the refund this quarter, it is higher than the last quarter, almost INR 300 crore. In that way, you can take an impact of the NIM, something around 78 basis points at best, nothing more than that. IT refund is a normal way every quarter the banks receive. It is not a one-off. It's only the quantum of money that we receive in a quarter. This quarter, compared to the last quarter, it is in excess of roughly around INR 3.35 billion. That's when you can translate 6-7 basis points of the NIM.
Okay. Sir, last quarter, I think the interest on IT refund was INR 370 crore. This quarter, it would be INR 670 to 720 crore in absolute terms. Is that roughly?
7,750 crore kind of a number.
Okay. Fair. Got it, sir. Thanks. The second question is on the deposit repricing. Would you say that a large part of deposit repricing is already done by this quarter? Do you expect more in the coming quarters? An extension to that is we have heard from some PSU banks that they do think about cutting the MCLR rates, which can impact the yields in the coming quarters. How should we think about the NIMs from the current level in the next two quarters, assuming there is no rate cut? We can keep that part aside.
That is what again I highlighted my point that, I mean, if you look at the entire quarter of banks who have declared their numbers, we would have seen the margin cut, right?
Yes.
In that scenario, we have given an increase in margin. In terms of the management of the deposit, I think it was a prudent management in that way. In terms of the lowest point of the deposit market and the lowest point on the advanced market, they are already done in the current scenario, unless and until we are going to cut it further, right? In terms of the repricing of this asset liability, again, the full effect of the repricing possibly would not have been felt this quarter. The impact would be felt in the next quarter.
In that scenario.
Yeah.
Yeah, sorry, go ahead, sir.
There may be a range-bound movement of margin next quarter, but on a fuller basis, we're expecting 2.85% to 3%.
Got it, sir. Sir, nextly, on the employee expense, the provisions for employee expense have come off in this quarter. Is it simply led by the yield movement? Do you expect that to normalize in the coming quarter? Lastly, the question is also on the floating provision that you created of INR 400 crore. The outstanding is now INR 1,000 crore. You did highlight it is in anticipation of ECL. How much more would be required in the run-up to the ECL transition? What would be the one-time transition impact from April 2027? What could be the change in steady state credit cost? Those will be the remaining two questions.
Okay. Quickly, let me answer. The employee provision that you are talking about is precisely because of the yield movement. On the pension, the yield movement, it has gone up from 6.44% to 6.72%. There is an increase for that. The amount required is less. Similarly, gratuity also, it has gone up by almost around 25 basis points. It is because of the yield movement, the impact. Absolutely in line with that we expect in case there is a yield movement. Secondly, on the ECL, let me tell you, these are draft guidelines, a lot of moving parts they are in. On a thumb rule, I can tell you as a ballpark number, which can be a back-of-the-envelope calculation. What we are expecting the ECL impact for the full on the CRAR is roughly around 1.25%, right? That would be spread over a period of five years.
If you take it at one time, it is 1.25%. At the same time, there is also a guideline with regard to the credit, the RWA on the credit risk also has a draft guideline being there. That is going to give us almost a 60 basis points positive because there is an RWA reduction. That is a positive impact on the CRAR, would be almost like 60 - 70 basis points. Net to net, the impact that you are looking at for a five-year impact is almost like 75 basis points maximum. That can be spread over a period of five years. If you take it at one time, it can be 0.75%. This is purely a provisional number, a provisional calculation in terms of what we see as on today, based on the draft guidelines that we understand as the final,
I mean, in terms of the final control. I don't think ECL, you know, the capital adequacy for most of the banks like us. A net impact of 0.75% may not be significant, right? That is something that we should do. Secondly, on a recurring basis, on a provision requirement, it can impact the credit cost almost to the extent of 20 - 25 basis points maximum. These are very ballpark provisional numbers based on the interpretation we have as on today. The number can change, but the impacts are not significant as on today. In case you look at our book, our profitability, our capital adequacy, our, I mean, provision requirement, I think it's not significant as on today.
Thank you, sir.
Thank you, sir.
Kunal Shah, please.
Hi. Are you able to hear me?
I can hear you. Please go ahead.
Sorry. To again jump upon and get the handle on the margin number, last time, when we look at it adjusting for IT refund and the recoveries, you indicated core NIMs to be 2.81%. Would it be fair to assume that core NIMs this quarter would have been closer to 2.78% or so, compared to the reported NIMs which are there?
How you computed core NIM? I said, no, the 2.96% is the global NIM.
Yeah, INR 750 crore. Yeah, that has like 18, 19 basis points of impact, overall. Maybe 2.78%, would that be the fair assumption? If I have to look at it on a core basis, is it like NIMs have declined by three, four basis points or so on a quarter-on-quarter basis?
See, exact calculation I'll give it to you. I don't think the NIM has improved. Even if excluding the IT refund on both sides on the last quarter and this quarter, the NIM has improved. I don't have exact calculation. In case you want, we can send you the impact of the core NIM. Core NIM going to be stable. It is stable, and it has really helped us in terms of improving the core NIM.
In terms of the guidance, compared to 2.96, even if I adjust and based on that calculation, it's coming closer to 2.8%. How confident are we in terms of getting it through, maybe more than 2.9% or closer to 3% by the exit quarter of FY 2026?
See, that's why I said the Q3 would be range-bound in terms of margin because again, the repricing full effect has come in the current scenario, but the full impact for the quarter has not come. On the asset side, there are going to be a lower income in terms of the full quarter impact. At the same time, the deposit, again, see, look at 4.91% deposit cost. I'm one of the lowest in terms of the deposit cost in the entire system if you look at all the banks. In that way, the benefit is going to be there for the deposit side. Net to net, it would be range-bound. On a fuller basis, again, Q4, we are expecting a rise in the NIM. In that scenario, I think the guidance we are giving is 2.85% to 3%.
That's the global NIM that we are talking about without any core non-core that we are referring. The global NIM basis will be at 2.85% to 3%.
Including the IT refunds which are there, on a reported basis.
That's a NIM, right?
Yeah. Yeah.
Every quarter, we get some IT refund. It's part of a regular, it's not a one-off. Like NC&T recovery can be a one-off, but IT refund is not one-off. We keep on getting some amount. It may be higher or lower.
Got it. The question was maybe given that our growth on the corporate side has been quite active. Plus, when we look at on the deposit side, in fact, the wholesale deposits have grown quite stronger when you look at it, almost like, say, 15% up quarter on quarter, 17% year on year. I think these two have some pressure on the margins during the quarter. That's the reason I was not sure if there is an increase in the NIMs on the core basis.
See, look, on the wholesale deposit, as you said, we have been saying that the dependency you want to reduce. In terms of a percentage of retail deposit, term deposit, or the overall deposit, it as a percentage has gone down. This quarter, even if there is a marginal, because you would have seen the retail term deposit growth is 9.1%. The wholesale, including CD, is 17%. There is some component which has gone into it, but this is precisely out of the CD increase in outstanding. As you know, the certificate of deposit, these are short-term having a much lower pricing. In that way, there is no pricing impact on this 17% besides 9%. Where one bank declaring the bulk deposit as a subgroup to the term deposit for many quarters, you need to get those data for the banks.
Only then you can have a clear comparison in terms of what is the growth we have and what is the growth others can have. As a strategy, I've been saying that the dependency you want to reduce for a volatility purpose, on a price point purpose, and we're quite successful in terms of managing. It's not one or two numbers you are looking at. Look, the NI growth has been positive, which is, again, if you compare on a whole system basis, there are many having a negative growth. We had a negative NI growth last quarter, which is positive now. The ROA and ROE both are better than the last quarter. In that overall construct of the book and considering the custom deposit at 4.91%, which is one of the very good levels, I think the prudent management helping us in terms of maintaining profitability.
That's something fundamental as far as our margin guidance. There are two other points that you need to look into. The CASA percentage is one of the top quartile. You have the numbers for others, right? It is one of the top quartiles for the bank. These are all numbers leading to a, I mean, fundamentally talking about better management of the liability at the same time protecting margin or the profitability.
Got it. On PL, the GNPAs have gone up again to 4.81%. Last quarter, it was 4.48%. We are hearing from most of the players that at least the pain, the incremental stress formation is subsiding in personal loans. Should we also believe that maybe for us as well, the GNPAs in PL have now peaked and we should see the improvement, or there is some pain still left to be recognized?
No. Look, on the overall retail, the slippage has been lower last quarter. That numbers are given. I mean, the retail slippage, right? PL is a very small component of the overall. The outstanding PL book is roughly around INR 12,000 crore. If I look at the slippage, we are not declaring that number. If I look at the slippage of the PL this quarter, it is lower than the last quarter. In terms of the pressure on the PL book, although we have a lower book, it is no more there. Rather, we should see improvement in this number going forward.
Thank you, sir. The next question from Mahrukh, please.
Yeah, hello, sir. Congratulations.
Thank you. Thank you very much.
Sir, I have a few questions. Firstly, in terms of your recovery from written-off accounts, too, the income is lower. Do you want to reduce reliance or is it going to remain volatile and lumpy even in the future quarters? That's my first question. Secondly, you did mention that on a run rate basis, if ECL were to be implemented, your credit costs would move up by 25 basis points. Is that what we should build in structurally now to assess your long-term ROAs, like the current credit cost or say the full year credit cost plus 25 basis points? My third question is, I think it was asked before, but I didn't quite catch the answer. How much of MCLR repricing is left? How much more can MCLR go down? These are my questions, sir.
Coming to the recovery of written-off, our normalized run rate is roughly around INR 700 to 750 crore. That is what a normalized run rate we give. The quarter of last year, that was elevated to INR 2,500 crore. That we have explained why it was so. This quarter, it is INR 493 crore, which is definitely below the run rate. Going by the pipeline cases and all, I think we'll come back to a normalized INR 700 - 750 crore per quarter on the recovery of the written-off. On the ECL impact, the credit cost you talked about, this is again a ballpark back-of-the-envelope calculation. Obviously, we have provided floating provision, keeping the ECL framework in mind. We think we need to create buffer, but we have not decided as a policy how much to do it, what time to do it.
These are all depending upon the going forward, a lot of clarity would come on the ECL framework. Actual calculation getting into transaction level would give us more clarity. We have not decided how much to provide on the ECL, but then we'll be mindful that we need to create more buffer. We'll be moving in that direction. MCLR, my book is almost 35%, 36% now, and many of the months we have declared MCLR. The computation of MCLR depends on the moderation in custom deposit. If further moderation is going to happen on the custom deposit, based on the repricing, obviously we'll pass on those benefits. It's a model which is a tested model. There is nothing much we do. It's a calculation already hard-coded. I cannot say how much it would go down.
All would depend upon the cost moderation or the deposit cost, which is 4.91%, how much it would go down in future, and the MCLR cut would depend on that. I think, Mahrukh, I address all your three questions.
Thank you so much, sir. Thank you.
The next question is from Bhavik Shah.
Hello. Hi, sir. Thanks for the opportunity.
Yeah, please go ahead.
Sir, I'll just ask Mahrukh's question a little forward. Sir, MCLR calculation also has a return on equity as a parameter. Last few years, our return on equity was very good. When will we review that? Is there a plan to kind of mark that down, maybe over the course of the year? That would depend because actually there is a certain policy on how you can review, at what frequency, on what condition. These are all as per the policy therein. The only thing which is variable as in today is the custom deposit. We'll also look at the market, what is happening in the market in terms of the level, and then we possibly can take a call. As in today, I don't think we need to take a review.
In case there is a requirement as per the policy, we'll take a review at a later date, not now.
Wonderful, sir. We saw very strong growth in NBFC portfolio this quarter, quarter on quarter. Just wanted to check. Those were Repo Linked, MCLR Linked. What was the yield, 7.1, 7.2% approx?
Look, NBFC, what happened, actually, there was a lower growth in NBFC book. Rather, the demand from the NBFC was lower in last quarter. In terms of NBFC, as a percentage of book, it has not gone from the peak level or below the peak level. I mean, when I'm telling peak level, it's a quarter prior to that. In that way, we have a policy on that. We have a threshold therein. We are all operating within the policy and threshold therein. In terms of pricing of NBFC, normally we get MCLR Linked, but some of them can be Repo Linked. The exact composition, I don't have. The yield is quite good out of NBFC, and that's a demand coming from now. Our A and above book has gone up in case you have seen the data there in present.
Yeah. Yeah. Yeah.
In that scenario, I think we are creating good quality NBFC book at the same time mindful of the yield. Mr. Tyagi, anything you want to add on NBFC?
Sir, in fact, you have said all. I can add only that NBFCs, there was subdued demand in the June quarter. In September, they came to the market. We supported them because we have the relationship in the past also. Some of the new clients also were added. We have diversified the NBFC portfolio.
Okay, sir. Okay. Sir, last thing, sir, what CD ratio are we comfortable with, global and domestic? What credit-deposit ratio would we be comfortable with?
Look, we are at 85% now. When the deposit is not growing, obviously you can't reduce your LDR or the CD ratio. We are comfortable operating at 82% - 85%. We're quite comfortable. Look, our LCR is good. Our CRAR is good. Our ability to grow is much higher. In that way, we are comfortable at the current level. Once the deposit cycle improves, then possibly we can think of lowering. We are okay with that 85 level.
Okay. We won't go beyond 85%?
I mean, not actually. See, look, a couple of things which are supporting us. Look, my SLR, I'm surplus in SLR. LCR is comfortable. CRAR is good. I don't have to be worried about any level that we see on the LDR. Not very, I mean, very sticky on any particular level. We are comfortable at the current level that we are operating.
Understood, sir. Our write-off declined quarter on quarter. From INR 2,400 crore, we did INR 1,000 crore. I just wanted to check with you, at what net NPA, gross NPA level would we be comfortable? We are at around 2.2% as of now. Do you plan to accelerate write-off or as in now you're done with the write-off?
No, in terms of write-off, we would have seen we have much lower write-off as compared to the earlier quarters. Still, the yield is so low, right?
Yeah. Yeah.
Something on the asset quality or the positive part of the entire, I mean, management that you can look into. In terms of TWO recovery, we intend to upsize this going forward. Actually, our normal run rate is up to around INR 700 to 750 crore. I think we need to improve on that count. In that way, I'm not, I mean, in a process where I think we can on this. The TWO kitty is roughly around INR 63,000 crore as in today. In case we can do write-off, we can do much higher. We are going at the normal level. There is no guidance for gross NPA to what level to. The current levels are quite, what you can say, strong vis-à-vis the systemic levels that we see. For most of the banks and like us, we are also at a very good level on the gross NPA.
Understood, sir. Thank you, sir, and good luck for both of us.
Thank you. Unfortunately, we run out of time. That will be the last question we will be able to take. If I can ask Sridhar sir to please give the concluding remarks.
Thank you all. I would like to extend my sincere gratitude to all of you for joining us today for the announcement and discussion of our financial results. Should you have any further questions, please feel free to reach out to me or our investor relation team. We'll be happy to share any further information required. Thank you once again for your time and continued support. Have a great evening ahead and weekend ahead. Thank you.
Thank you very much. Thank you.