Yeah, good evening, everyone. We welcome you all to Indian Bank's Post Results Conference Call for the second quarter, FY 2025, hosted by Emkay Global. From the top management we have with us today, Shri Shanti Lal Jain, MD & CEO, Shri Mahesh Kumar Bajaj, Executive Director, Shri Ashutosh Choudhry, Executive Director, Shri Shiv Bajrang Singh, Executive Director, and Shri Brajesh Kumar Singh, Executive Director. I request the MD, sir, to first briefly summarize the key highlights from the second quarter results, and also provide future direction on growth, margins, and asset quality, post which we will have a Q&A session. Over to you, MD, sir.
Yeah, good evening. Welcome to all analysts and investors in the post-result con call. We have declared our result today, and you might be having the investor presentations. For immediate understanding, I will talk few highlights. We have... Our business has grown by 10%, and deposit, of this deposit has grown by 8%, and the credit has grown by 12%. Under the credit, our, the retail credit has grown by 15%, agriculture by 16%, MSME by 8%, but the standard MSME has grown by 12%, and the corporate 9%, and the standard corporate is 10%. So all are basically double digit. All are in double digit, and we could maintain our CASA more than 40%. So we are at 40 plus point four seven, is again 40 point five six of the last.
In the beginning, we said, given the guidance that our deposit will grow between 8%-10%, we have grown by around 8%, and we raised infra bond of INR 10,000 crore, which works out to 1.5%, so 8% and 1.5%, 9.5% or 10%, we have that. In the credit side, we said 11%-13%, and we have grown 12%. This is a business side, and the profitability, of course, the operating profit has grown by 10%. The net profit has grown by 36%. The operating profitability has grown on the back of NII growth of 8%, bad debt recovery of 44%, fee-based income of 11%, and the cross-sale income 5%, and the PSLC income more than 8%.
So, as far as your question on the margin side also, our margin was three point three nine global and three point four nine domestic. It is against three point four four of the last quarter, so reduction of five basis points. If you adjust the penal charges, it is six basis points, impact is six basis points. Earlier it was two, now it is eight, so incremental is six. If you add six basis points of three point three nine, it is three point four five, which is more than the last quarter margin. Now, come to the domestic, same story as the domestic side. Now, our ROA has improved from one point zero six to one point three three or one point two zero of the last quarter. ROE also is 21%. Cost income ratio, 44, 45.
We had made an additional provision close to 150 crore because of the FIMMDA rate has come down to 6.94, and we decided that let us make higher provisions, and based on the actual as well. Yield on. The in the quarter, the cost of deposit has grown by 8%. Yield on advance has also grown by the 8%. Both sides, 8%. And you know, in the investment side, because the investment, the said yield itself is coming down, so whatever incremental investment you make, it cannot be 7.15, and the rate itself is a 6.86, and so there will be an impact of that also.
As far as asset quality is concerned, it has come down from 3.77% to 3.48%. The net NPA has come down 0.39 to 0.27, and the provision coverage ratio increased from 96.6% to 97.7%. Our story for recovery more than slippage is continuing. Last time, 2,008 crore we have recovered, and the slippage was 1,357 crore, and you see last quarter also, last year also, prior to that also, our recovery was more than our slippage as a result of our gross and net NPAs coming down, and our collection efficiency is 95%. We are maintaining that collection efficiency, so point is that whatever is due, some overdue is there, we are recovering that overdue also and maintaining this.
Capital Adequacy Ratio is 16.55%, and if we add up half-yearly profit of INR 5,110 crore, it is 17.84%. Seventeen point eight four is against eleven point-
Mm-hmm.
It is 16.55, but virtually is against 11.50 of regulatory, right? Now, this SMA book has slightly increased from by 2,400 crore, 2,300 crore SMA, and which is because of the one account of 2,200 crore, which was appearing in SMA two as on thirtieth September, has now come down to SMA one, but the part of the irregularity has been paid by the customer. It is a government-guaranteed account. As far as digitization is concerned, today 91-92% of the transactions are happening on a digital basis. So regarding all our other current, we have given a guidance of recovery of 7,000 crore. We are 3,958 crores. We have said that AUC recovery will be 2,000.
For a full year, we are at INR 1,200 crore. NIM, we have given 3.40%, we are at 3.39%. Or domestic, rather, 3.40%, we are at 3.49%. ROA, we said that it will be around 1.20%, now we are at 1.33%. ROE, we said 19-20%, we are at 21%. So credit cost has also come down, and it is 0.65%. Slippage ratio also, it's come down to 1.06%. Lot of things we are doing for digitization, lot of things we are doing for HR side. So I request my colleague, Bajaj, to tell you about the digitization, what we are doing. And then we are open to question.
You raised about two, three points. Let me reply to this also. Growth, we will continue to have our same, the guidance which we have given. Margin side also, our endeavor will allow us to stick to our guidance, and rather give better than the guidance of 3.40%, which we said we'll continue that also. Asset quality, of course, when the collection efficiency is 95%, and the SMA two number, barring this one account, is same, 10-20 crore here and there, not much. Asset quality also will be going probably better. You know, Bajaj, please.
Thank you, sir. Good evening, friends from the analysts and the investors. We have already placed this presentation on digital transformation, digital migration. I'll just touch couple of points, then we'll take questions. Our migration from branch channel to digital channel have gone up from 89% to 92% and YOY 3% plus. Apart from that, we have come up with a new omni-channel app, where the mobile banking users have gone up by 20%, which is 1 crore 51 lakh to 1 crore 81 lakh. Same way, transactions also have gone up by 10%. UPI users have gone up from 1.5 crore to 1.95 crore, which is YOY 27% plus, and remittance transactions also, a 62% YOY.
Even if we talk about the daily UPI transaction, now, the daily UPI transactions are 2.28 crore, which is remitter 1.5 crore and beneficiary 0.73 crore. Apart from that, the net banking user also have gone up from 98 lakh to 1.11 crore, and the credit card user also gone up by 50% from 1.77 lakh to 2.65 lakhs. Same way, the FASTag user also have gone up by 37%, and POS also have gone up by 56%. We are continuing our digital initiatives, the journeys which we started in June 2022. This half year, we have completed 24 journeys, and we are prioritized 56 journeys. Q1, six; Q2, eight, 18; and Q3, 13; and Q4, 19 journeys we have planned.
Last year, we did digital business of INR 81,250 crore, and last half year it was INR 29,116 crore. This half year, it is INR 79,059 crore, which is 172% YOY plus. Same way, in RAM, INR 24,000-63,000 crore, which is 162% growth. And e-deposit, on the liability side also, it was INR 4,911 crore, now it is INR 15,000 crore, which is 206%. Apart from this assets and liability, we have taken certain other initiatives, which is like e-BG, e-OTS, death claims. So there also, there is an improvement, INR 0.3-537 crore. And even adoption also has gone up, MSME to 77%, retail 73%, and agri 91%.
Even the last time also, the question was asked how much we are spending on the IT. So it remains almost same, of the OpEx, it is 10%, and NINS, if you say, it is 27%. Apart from this, we have already on the capital expenditure, INR 135 crore for this half year we have done, and we are committed to almost 400-450, 500 crore rupees of capital expenditure apart from this revenue expenses. So we'll take question at the end, during the call. So these were the few initiatives we have taken by us. Now we are open for question and answer.
Yeah. Thank you, sir. We will now open up the floor for Q&A session. Anybody who wishes to ask a question, please raise your hands. I request the participants to limit your questions to two per participant, and for further questions, please join back the queue. We can take up the question. First question we'll take up from Ashok Ajmera. Ashok, please unmute yourself.
Hello, good evening, sir. And-
Good evening, sir.
Before my time gets over, sir, let me first of all wish you a very, very happy Diwali to everyone, to you and all the people there, the analyst fraternity, as well as the people in the Indian Bank. Sir, compliments to you, sir, for good set of numbers, especially on the profitability front, a good profitability and all, all the most of the parameters of the profit, the expenses, the asset quality, the gross NPAs also come down substantially. The net NPA is now 0.27%. But having said that, sir, I just, if I look at the business growth, both the deposit and the credit, sir, though the, on an annualized basis, if the trailing four quarter, if you are taking, then it's okay, 10, 12%, 11%.
But if you look at the current FY 2025's half year, our business growth is hardly 1.79%, our deposit growth is only 0.75%, and our credit growth is only 3.16%. So having said that, if we look at the entire FY 2025, even based on your target also, sir, you need to raise the deposit of almost about INR 70,000 crore in the remaining five, six months. You need to disburse the credit of almost INR 52,000 crore. So for that, sir, what is the roadmap ahead? I mean, what are the plans? What are the sanctioned pipeline and the proposal which are already in a sanctioning stage or disbursement stage? And how do we basically plan to meet this kind of targets for the whole of FY 2025, sir? This is my first question.
Ajmera, we told that we will grow in credit 11%-13%. We are growing 12%. It means we are as per the trend. You rightly said that the growth in the first half is a, is a-
Yes, sir.
The gap which we have to fill in the next half is an issue which you are raising.
Yes.
But you see the last year number. Last year number is the same. When you are growing as per trend, what will happen? Last year also, we grown INR 40,000 crore in the second half. This year also, the gap is INR 40,000 crore in the second half. The same number we are continuing. This is how the business is happening in the country. So we are track, actually, exactly on the track. Exactly on the track. Now, your question was how much was the sanctions, how much was the in pipeline? I'm telling you, this year, we have sanctioned 20% more than the last year. Last year, in the first half, we sanctioned INR 27,000 crore. This time we have INR 32,000 crore. So it means we have a more pipeline, right?
This, the pipeline, I'm telling you, that the three-four part of this pipeline, undisbursed term loan is around close to seven thousand crore. Sanctions which we already, this sanctions, seven thousand two hundred. Six-seven thousand crore, where the partial disbursement has happened, and partial disbursement based on the, the growth or based on the completion of the project we'll give. Around the sixteen, seventeen thousand crore of a proposal in pipeline, undisbursed working capital limits are close to twenty-eight thousand crores. Considering this repayment and all the sanctions which we are having, we are confident of achieving this. Of course, the number is slightly came down because two reasons. One is the, when, whenever the, in a corporate lending, if the margins are not there, then we allow let it go.
Rather, you know, we are continuously on the profitable growth path. We are not on a great growth path, because you see our margins and everything.
Yes, sir.
We are confident that the way we are doing every time, this time also, because when your band is 11-13, you are growing 12, you are on the track. You are on the track. As for the last. Likewise, in the deposit also, we said 8-10%, we are at 8%. So my point is, the growth in credit and the growth of deposit, you see, both we match. Even if you see September 2023 to September 2024, growth in deposit and growth in credit, you see the gap of around the 6 or 7 thousand. We have raised the infra fund of 10 thousand. Rather, we have a profitability more than the 5 thousand this, and last time, 4,900 crore.
So from liquidity point of view also, we are comfortable. From the growth point of view also, we are comfortable.
I know, sir, I made it very-
All other engines, whether retail, agri, and MSME, we are growing 14%, which is more than the guidance we have given.
Thanks for this reassurance, sir, because, you know, like some of the banks, they have done. Recently, we just concluded one of the other big banks, analyst meet, and there in the first half itself, they grew about 6, 6.5%, 7%. So that is why the question came to my mind that. But anyway, if you are, as long as you are meeting the targets of the whole of the FY 2025, I mean, there is no issue, and that reassurance goes very well. Having said that, sir, you had, you had covered this SMA-2. I couldn't hear it properly that time.
So you said that one account out of the three thousand three hundred and one, you know, which has come in SMA-2, above five crore, is around two thousand something, and it is a government account. So can you just repeat it, sir, or explain it a little more clearly, sir?
Okay. So actually, what we said that the SMA-2 number, right?
Yeah.
Just SMA-2, SMA-2 number was. SMA-1 plus 2 was, just a minute.
No, two was three, three thousand three hundred and one.
Just a minute. Let me-
As compared to 1,075 in the last quarter.
I'm just telling you. Just a minute. SMA one and two was INR 2,450 crore in June, which has increased to INR 4,762 crore.
Yes.
Slide number-
Yes.
Slide number thirty-two.
Yes, sir.
Incremental is INR 2,300 crore.
Yes, sir.
Out of INR 2,300 crore, INR 2,200 crore is one account.
Okay.
First point is, this is one account in the corporate, and that is why you are seeing corporate. It was 365, [has] become 2,500, so 2,200. And this is a government account, guaranteed by a government, and they have paid this irregularity, which was SMA-two in September, has now become SMA-one. So the part of the irregularity, they have cleared. Yes, sir?
Yes, sir. Yes, sir. Yes, this is yes, because the figure just shot up this thing. And sir, this our on the recovery front, again, you are within the target. I mean, there's good recovery. So, can you give some color on the present recoveries and going forward with the NARCL and NCLT, are the things are speeding up? Are we going to have a better recovery than even our targeted one? Because we have also got good pool of even return of accounts also, and a lot of cases are at a positive stage.
Yeah, so last time we have recovered eight thousand six hundred crore, right?
Yes.
At this time, we say we'll be having a less recovery because 7,000-8,000 crore, more or less. So virtually, internally, we decided close to 2,000 crore of recovery we'll do. In the last two quarters, we recovered close to 4,000 crore. This is one point.
Yes. Yes.
Now, going forward, the recovery, this is second question. So two things is there, that we are having INR 41,000 crore of a PWO book or INR 19,000 crore of it. So around close to INR 60,000 crore of a book, right? We are having close to INR 22,000 crore of a NCLT book. Now, this going forward, the recovery which we are expecting from the NCLT, SARFAESI, OTS, and ARC, because we have a NCLT, I told you, we have a huge pool. SARFAESI also, last time, last time we recovered around INR 860 crore. In the last half, we recovered INR 400 crore. So same, same number we are trying to achieve with that this year also. Half year, 400, next half year, 400.
Okay.
Right? Likewise, in a NC- in the OTS, last time we recovered 1,500 crore. This half year we recovered 755 crore. So we are going totally on those lines. ARC, of course, last time we have recovered 465. In this year, we have recovered 97 crores. So but you see one presentation, NARCL, we have seven accounts of 700 crore, where bids have been received. So we'll go for the Swiss challenge, and this amount when we'll transfer to NARCL, naturally, this ARC recovery will happen. So we are not on the track, the two thousand, around 2,000 crore of a quarterly recovery. Of course, our guidance will continue to be around the seven thousand to the seven thousand five hundred crore of a recovery.
We are moving on that direction.
Point well taken, sir. Last question in this round on treasury, sir. Our performance of treasury is reasonable in this quarter also. I mean, we have made some good, decent, profit also, trading profit also, as well as the, also the, valuation, profit and gains also. So going forward, sir, what is your take on, I think we expect some rate cut also in December. We'll be having the better, profitability on the overall treasury operations, including the equity debt trading also, as well as on the, because of the rate cut, the, on the valuation front also. So overall, in the next six months, I mean, this current six months will be better than the last six months on the treasury?
Okay, two things, two, three things I'll complete in the entire investment book.
Yeah.
First of all, we have added the investment by INR 5,000 crore in June to September, right?
Yes, sir.
Because we are having a liquidity analysis, first point. And we have three thousand we have added in SLR and two thousand non-SLR, right? Now, second point is that the yield on investment, which is very, very important. Our yield on investment in June was 7.15, in September it is 7.17. So our yield on-
Right
Investment is seven point one seven, and the ten-year G-Sec is six point eight six, eight seven. So we are much above the ten-year G-Sec, second point. Now, as per the guidelines, the unrealized profit on AFS will go to the reserve, AFS reserve, and FVTPL comes in the P&L account.
Yes.
INR 700-odd crore, which is an unrealized profit because of this, is gone to the AFS reserve. We could have even INR 700 crore more, we could have one. But we thought that let us have a good margin continue, we have a good margin and continuous profitability. So this is our treasury. Otherwise, the profit would have been INR 200 plus INR 700.
Yes. Yes, yes, yes.
It would have come down in the time to come, right? This is the second point. The third point is that what we are doing as treasury, we know that interest rate had come down, that is why we have built the book at 7.17%. Today also, when the yield is around 6.9%, we are buying. If it is going below 6.8%, we are selling. This is how we are moving.
Yeah.
So we think that it should be around 6.75-6.85, or this should be the trend, but we are sitting in a very comfortable position, sir.
Thank you, sir. We'll take the next question from Mona. Mona, please unmute yourself.
Yeah, hi, sir, good evening. Congratulations on a good set of numbers.
Welcome.
Just two questions. Yeah. So firstly, in your notes to accounts, you've mentioned that about INR 300 crores of provisions were made outside of the minimum regulatory requirements. So this is part of PCR itself, right? Or it's outside of PCR?
No, the whatever provision we make, if it is a standard asset provision, it cannot be a part of the PCR, because NPA provision only comes in the-
Okay, so this is standard provisions?
This is standard.
Okay, got it. And secondly, so if I have to look at the balance sheet level, what sort of outstanding standard provisions we have on the books?
In the entire book, we are having standard asset provision close to INR 8,500 crore.
Okay. And how much of this is towards restructured book?
... generally, we are having restructured book close to around 30%, na?
Twenty-eight.
Twenty-eight percent.
Twenty-eight percent-
28%, basically we are having.
Got it, sir.
The regulatory requirement of 10%, we are having 28%.
Mm-hmm. Got it. That's all from my side. Thank you.
Yeah, thank you, Mona. Next question we'll take from Dixit. Dixit, please unmute yourself.
Yeah, one question. Firstly, one clarification, you mentioned that this one corporate government corporate account, which is in SMA two, so we have received some amount after the September, you are saying, and therefore it has-
Right, right.
Moved to SMA one now.
Part of the irregularity, suppose the irregular amount, say 100 crore and we recovered 50 crore, so the irregularity which was 60 days has become less than 60 days, 30 days.
Okay. And are we holding any provision against this account?
We are having provision based on the portfolio and all, so.
Okay. And my last question is, in the non-interest income, under the miscellaneous income has gone up to INR 228 crore from INR 99 crore year on year or INR 135 crore quarter on quarter. So, was there any one-off in this INR 228 crore? Any significant one item?
No, basically, this is the penal interest, na? Major part of it is the penalty. Penal charges.
Okay. Therefore, it has gone up substantially Y over Y.
That is why the NII growth is looking less SMA and the fee-based income.
Okay, okay, understood. Thank you. That's it from my side. Thanks.
Yeah. Thank you, Dixit. Any other participant, if you have a question, please use the raise hand option and ask the question. So before that, there is one other question which is there in the chat box. What is the LCR for the second quarter? And any impact that you saw primarily because of the RBI supervision, which asked few of the banks basically to rework their LCR?
No, what is the question? What is the?
Sir, what is the LCR for second quarter? Liquidity coverage.
LCR is close to around 120%, plus we are... Last quarter, we were having a LCR of 114%, at June. Now, around of 120 plus, 120, 121, 122, this is the range we are in.
There were these banks, basically, who had said that there was this RBI supervision, and because of it, there was some impact on the LCR. So how come basically our LCR has actually gone up? Is it that we have raised some funds recently?
No, what happens, the RBI is based on the guidelines, we also fine-tune our guidelines. So after considering everything, it is a hundred twenty-two.
Okay, okay. Sure, sir. Sir, and secondly was this, there was this Telangana farm loan waiver. Any impact of that basically has reflected into our numbers? Similarly, if you look at a lot of banks have reported higher NPAs in the retail segment. Obviously, we do not have as much of exposure to unsecured loans.
We are-
But any chance that we have seen in any other segment?
No, we are having even less than INR 200 crore exposure. We are not having much exposure in Telangana, and they are paying us money, Bava. So we are having close to INR 200 crore exposure. INR 206 crore.
Sir, in the retail book-
Yeah.
In the retail book, are you seeing some stress?
No, you see our retail book, SMA and all this, na, the slippage is 120 crore, and the collection efficiency is 95%-96%, so there is no issue, sir.
One lakh, one lakh.
One lakh, 10 thousand crore book and small amount.
Sure, sir. So any other participant, if you have a question, please, use the raise hand option to ask a question. Suraj, yeah, please unmute yourself and ask your question.
Yeah, hi, sir. Thanks for the opportunity. Sir, one question on your housing finance book. If I see the slide 12, the housing finance rating mix has changed drastically because I think some accounts from the triple A has been, I mean, either prepaid or something like that. And corresponding, the housing finance book has also come down to INR 13,000-INR 8,000 crore. So if you can give some color here.
Yeah, yeah. One of the big account, which because of the rate and all issues, they repaid back.
Okay. Okay, sure. Is it, sir, ICICI Home Finance?
Account specific will not work.
Sure, sir. Okay. Thank you.
Thank you, Suraj. Next question we'll take from Jai Mundra. Jai, please unmute yourself.
Yeah, hi, sir. Good evening. Sir, a couple of questions. First, sir, on... We have this Ind Bank Housing, right? Which, where we own 51%. If you look at the draft RBI circular on the investments, et cetera, how do you see the, you know, fate of that entity? Would you be okay to merge with the bank or how should one look at it?
No, this Ind Bank Housing, we are closing, na.
Okay. So this anyway was going to get down, irrespective of RBI circular?
No, we are closing it because there is no activity in the company, except they are having some assets. So we are in the process of selling those assets.
Okay, understood. But earlier, I mean, we only have 51% stake, right? I mean, the other 49-
No, we are having 51, and then the HUDCO is there, with us.
Okay.
25% HUDCO and rest is the public.
Okay. And-
But last so many days, last so many years, there is no activity except the-
Yeah, yeah.
Which we have planned.
Yes. So that is a defunct kind of an entity. I was just thinking if-
Uh, but-
Okay.
No, we are in the process of selling the asset which they are having.
Right. Okay. And sir, secondly, if you can share your loan book mix by benchmark, how much is EBLR, MCLR, fixed rate book, and foreign currency, et cetera?
Yeah. So NIM as on September thirtieth, MCLR book is 58%.
Okay.
The repo-linked is 36, and fixed is 5%, and others is 1%.
Okay. Sure. And, sir, this MCLR-
In a MCLR also, one year MCLR is 80%.
Oh, okay. Sure. And sir, repo will anyway be within immediate or maybe one week repricing kind of a thing, right? Fair to assume that?
Yeah, repo, reverse repo will be the next day.
Right. Right. Okay. And sir, this on PSL, right? So, I think the other income spike you have already answered. On the PSL gains that we have seen, I believe we have a policy of amortizing PSL gains throughout the year, so that the amount is more or less consistent. But what I wanted to check was, if... I mean, where is the commission that we get? If I look at annual report, we tend to sell most of the category in SMF, right? Small and marginal farmer. The small scale is there in the PSLC category, but if you can highlight what kind of the yields that you get or that you have got in the Q1 and Q2.
Two, three things specifically. In PSLC side, our income, which used to be 400-odd crore in 2022, 657 crore in 2024, now 700-odd crores. And around a 300 and how much? 300-
Three hundred.
300, yeah, 364. INR 182 crore last year, no? 182 into two. INR 364 crore, we are carrying it forward, which will be the income for the Q3 and Q4. This, earlier, we used to have in one quarter, but from last year we changed this policy. This is going on. We are selling the PSLC in MSME, small and marginal farmers in other categories as well. Better return is in this category.
Right. But sir, what kind of-
95%, 95% of our origination small and marginal farmers.
Right. And what kind of a yield could be there, sir, for this, first half or maybe last quarter?
Around-
On the PSL.
... 2%, somewhere 2.51, 2.15. These are no market.
Right.
It's a market, basically. Around two, you can say.
Okay. So the market rate for PSL has been holding up, right? I mean, earlier it has gone down to as low as maybe 0.5% also, but as of now, it is reasonably-
With the passage of time, the rate will come down. So we sold out in the first quarter itself.
Right. Okay. Understood. Sure. And sir, lastly, on credit cost, right? So, while the math is okay, that, you know, you have reduced your net NPA by 12 basis point, and we have reported a credit cost of 60-65 basis point, annualized. Right? So, so far, the math is good. But right now, you have a net NPA, which is very, very low. And so going ahead, the credit cost could be like, you know, 20-30 basis point also. What is the... What is your assessment, sir? Assuming you have said that there is no asset quality stresses any part of the portfolio, and the SMA-2 number that we saw is also government entity. So the incremental credit cost, assuming you make your net NPA stable, could be as low as 20, 30, 35 basis point.
Would that be a fair assessment?
The credit cost is coming down because the net NPA itself is coming down, right? So naturally, the credit cost will further come down. How much it will come down will depend on the further slippages in a small account, even in agri or other account. But definitely, the credit cost will come down considerably.
Right. Then last question, sir: If you have the number for SMA one plus two at the bank level, right? Because even in this quarter, a lot of slippages would have come from below five crores account. So if you have that number, it will be very, very helpful, sir.
Okay, that we'll provide you.
Sure. Thank you, sir.
Thank you.
Great and all, very best.
Thank you, sir. Thank you.
Thank you, Jai. Next question we'll take from Mona. Mona, please unmute yourself.
Yeah, hi, sir. Just a follow-up question. So if I look at, you know, the liability accretion in H one between deposits and borrowings, you've relied or the bank has relied a lot more on borrowings versus deposits. So, if you could just highlight what is going on here. Is it a challenge in deposits, or is it because you're getting borrowings at a much, you know, competitive rate? If you could just throw some light here. Thank you.
You see, what is my 400 days deposit rate is 7.30% today. If you see the bulk deposit interest rate is anywhere between 7.7% to 7.9%. These are the two rates. You know, on what rate we raise the infra bond at an average price of 7.18%. Plus, there is no CRR, SLR obligation, no DICGC obligation. So if you reduce the cost of around 40 basis points because of negative carryover, it comes to around 6.8%. So which makes a huge sense to us, and therefore, we have gone for infra bond. Because ultimately, the margins are important, your and we have a huge infra book of close to 55,000 crore even. So there's opportunity for us, so we are going for that.
Got it, sir. Thank you, thank you. That's helpful.
Thank you, Mona. Next question we'll take from Ramesh please.
Thanks for the opportunity, and quite a stable performance, especially on the asset quality side, quite good performance this quarter again. So just, one question with respect to the loan write-off. So are we looking at, close to another, INR 3,000 crore of, you know, loan write-off, in the second half, considering, you know, the run rate and, plus, what we had in the legacy assets, as on March twenty-fourth?
No, you see our loan write-off rate itself is coming down. So going forward-
Correct, true.
Lesser write-off is against the current write-off because some of the outstanding which we are getting, we are getting a tax benefits as well. So considering all aspect in view, we go for write-off, technical write-off. But some write-off will always happen because of the compromise and because of our balance sheet management.
Correct. Correct. And so PCR, we are expecting to, like, maintain at this level, or... Just considering that the accumulated provision number, is also coming down, so just from that perspective, I am asking, the PCR number, we would maintain it around this level only, sir. Correct me, sir?
PCR, we are 97.6%, so close to 98% of the PCR we are.
Sure, sure, sure, sure. Thank you so much, sir. Thank you, sir. All the best, sir.
Sir, one question which has come in the chat box is that, another public sector bank had a higher AS 15 provision during the current quarter. Is there a possibility that we might also do something similar, maybe in next second half?
No, we have already increased our AS 15 provision from INR 547 crore of the September 2023 to INR 812 crore. We already increased AS 15 provision, and the reason for increasing AS 15 provision is that we brought the discount rate to 6.94% against 7.16% of the June and all. So we are exactly what the current market is.
Thanks, sir. Yeah. Sir, I think we do not have any further questions. Maybe we can close the call, sir, if you have any closing comments to make.
Thank you very much for all analysts and investors for sparing your valuable time and giving us an insight and giving us the motivation to do better. So kindly keep supporting us. Thank you very much, and happy Diwali to you all.
Yeah, thank you all participants, yeah, and happy Diwali from all.