So yeah, good evening, ladies and gentlemen. I welcome you all to Indian Bank's Post Results Conference Call for the Third Quarter of Financial Year 2026, hosted by MK Global. From the top management, we have with us Shri Binod Kumar Ji, MD and CEO, Shri Ashutosh Choudhury, Executive Director, Shri Shiv Bajrang Singh, Executive Director, Shri Brajesh Kumar Singh, Executive Director, and Ms. Meeni, TM, Executive Director. First, I would request the MD, sir, to briefly summarize the key highlights from the Q3 FY26 results and also provide strategic direction on growth, margins, and asset quality. Post which, we have the Q&A session. Over to you, MD, sir.
Good evening, all. Thank you, Anand Ji, for hosting, and all the participants for joining. We have just published our result, and total business of the bank has grew by 13.34%, INR 14.30 trillion. Deposit reached INR 7.91 trillion, with a YoY growth of 12.62%. CASA also, with a growth of 9.86%, reached INR 2.96 trillion. Advances also, one thing I will highlight, my bulk has remained at the same level, whatever it was in September. Overseas, advances grew by 14.24% and reached INR 6.39 trillion. Corporate grew by 8.16% and reached INR 2.01 trillion. RAM grew by 16.65% and reached INR 3.90 trillion. Retail grew by 18.54% and reached INR 1.36 trillion. Agriculture also grew by 15.14% and reached INR 1.49 trillion. MSME grew by 16.41% and reached INR 1.05 trillion. My CD ratio is 80.77%. Coming to P&L, net profit grew by 7.33% and reached INR 3,061.
Operating profit also grew by YoY by 3.79% and sequentially 3.87% and reached 5,024. First time we have crossed operating profit of 5,000 crore. Net interest income YoY growth we have seen 7.5% and QoQ 5.27% and reached 6,896. NIM domestic, it has improved sequentially from 3.34% to 3.40%. ROA also, I mean, there is marginal decline from 1.32% to 1.30%, but that is well above the guidance, whatever we have given of 1.20%. 1.32% is the for the nine-month ROA. Provision coverage ratio is at 98.28%, cost to income ratio of 46.90%, credit cost 0.21%. Capital, we are well capitalized 16.58%. 2,000 of Tier 1 bond has retired, but we have not gone for raising fresh Tier 1 because we are still well capitalized. CET1 is 14.54%. Gross NPA has come down to 2.23% and net NPA 0.15%.
Fresh slippage during the quarter has been 997 and recovery is 1,453. Recovery, if I talk of the nine-month recovery, nine-month recovery is approximately 5,200, to be precise 5,153, against a guidance of between 5,500 to 6,500. So we are on track of that. Slippage ratio has come down from 0.79 to 0.69, which is within the guidance. Slippage in absolute number is also only 997. SMA, it has come down substantially. There is substantial improvement in SMA from 11.88%. It has come down to 5.05%. SMA2, on top of it, it seems like it has gone up from 632 to 3,689. But there are two PSU accounts which keep on oscillating between SMA from at times it is in SMA10 or 1 or 2.
So because of that, if we take that number, SMA2 is also very much under control. My loan, I mean, MCLR linked loan book is 46.07%, and out of that, repricing in this quarter is also due of around 37%. Next quarter also, because wherever quarterly reset or half-yearly reset is there, that reset.
So that is 20%. Deposit also repricing is due 18% in this quarter and 53% in next quarter. Many initiatives we have taken for CASA. CASA, like salary account, as I have been discussing in previous quarters, also we are focusing hugely on CASA. Salary account also, and this quarter we have provided fintech solution to around 22 different state government departments. We have added non-SA accounts of more than 1,000 accounts, and average balance in savings accounts has gone up from INR 26,000 to INR 36,000. Similarly, average balance in current account has also gone up from INR 2.12 lakh to INR 2.44 lakh. And we have launched five new products in July.
So in that product, we have opened more than 5 lakh accounts, and we have garnered business of 1,500 crore in that. Account opening, account opening also, we are seeing good traction. Whatever we could have opened last year, we have surpassed that in nine months itself. Savings fund also, current account also, and sanction also, sanction whatever we could have sanctioned in the last entire financial year, 2.62 trillion. So far in this nine months, we have already sanctioned 2.95 lakh crore. And we are also focusing on non-fund business, and that's why there is improvement in the, if you see processing charges and LC/BG commission, there is improvement we have seen in our traction . AUC recovery, we have given guidance of 2,000. We have already reached that figure, 2,000 we have already reached. NCLT recovery, one good account, one chunky account has been recovered during this quarter.
In that, around 300 crore recovery has come. So recovery through NCLT is 338 crore. We are on digital front, we are investing hugely and going forward. I expect that benefit of that has already started accruing, but not to the extent we desire. So we are taking various measures for increasing our digital adoption so that benefit of that may come to us. Now I will request my colleague, Mr. Ashutosh Choudhury, to discuss about the digital products, and thereafter we can proceed with. And last point, we have a good pipeline of around 50,000 in the corporate credit. Over to Ashutosh.
Good evening, all. The bank's digital business footprint is at 1.98 lakh crore for Q3, nine-month ended FY26. That is a growth of 66% year on year, and cumulative digital business has crossed 4.52 lakh crore. Our fintech partnership has gone up to 169. The digital transaction has grown by 12.54 crore. We have 147 digital journeys now, and the mobile app rating is 4.4. Like, the digital transaction is 94%, and the branch transaction is 6%. In the digital banking, the mobile bank user and the transaction has grown 21% and 14%, respectively, YOY. The UPI users and transaction has increased by 21% and 28% YOY. The users of internet banking has grown by 5%, and the debit card has grown by 7%. Our mobile banking app has two features. One is for retail, and one is for MSME.
In the retail, we have a total number of 2.25 crore customers and having a financial transaction value of 50,000 plus crore during this quarter. The best part is that our MSME App, which has launched last financial year in February 2025, has a customer base of around 25,000 customers, and the platform has a login of 2.42 lakh. And the financial transaction value is 14,000 plus crore during this Q3. So the digital business, against a target of 225,000 crore, we have already achieved 198,350 crore till nine-month ended, and we are pretty sure to surpass this particular target. If you see the digital adoption, it has consistently increased year on year. The liability has increased from 37% to 43%. The retail asset has increased from 74% to 92%, aggregate from 83% to 96%. MSME is from 86% to 94%. We have launched 10 new MSME journeys.
So that is yet to pick up. That is why the overall is showing at 73%. The e-G issuance has grown from 4% to 27%. So last quarter, we launched a separate set of niche customers. That is virtual banking experience customers. In a single quarter, we have reclassified 6.33 lakhs of customers into that segment. Then with RBI ULI also, we have sanctioned more than a lakh of loans amounting to 12,000-plus crore against a target of 9,000 crore. We have implemented 13 initiatives in the last quarter, and the same kind of pipeline is there with us in the future also. If you see, for the customer engagement, we have launched a virtual ATM.
We have launched a lot of things, but I'm only concentrating on virtual ATMs where we have, through an aggregator, tied up with 6 lakh plus merchants where the cash can be withdrawn. So we have also introduced the new fast track system during Q3. And there are some ongoing projects, the CRM project, two models we have launched, another three models we are going to launch soon. So employee assist, it's a new concept that we have introduced in our bank for our own employees to assist them about the process guidelines of the bank and banking industry. Then we have also started using agentic AI, and some of the use cases are in customer onboarding, corporate ecosystem, then lead nurturing and management, personal finance management segment, then grievance redressal system and tracking suspicious transactions.
So, these are the use cases where we are going to use and you are using also. If you see in the operational efficiency parameters, we have migrated to cloud for our optimum utilization of hardware. Then we are going for a Data Lake Project, and some of the process we are planning for robotic process automations. So for a while, we are going very fast on digital and also swiftly moving towards our intelligent banking system. We have also planning to establish a resilience operation center in the near future. With that, sir, the digital part is over. Thank you.
Only before coming to Q&A, one thing I will add. Last quarter, I have made provision of 5% on SMA1. This quarter, I have increased it up to 10%. So additional INR 380 crore provision we have made on SMA1.
Sure, sir. We will now open the floor for Q&A session. Anybody who wishes to ask a question shall raise their hands. I request the participant to limit their questions to two participants. And for further questions, please join back the queue. So any participant, if you have a question, please use the raise hand option. Yeah, we have first question coming in from Ajmera ji. Ajmera ji, please unmute yourself.
Yeah, thank you, Anand, for giving the opportunity first, as usual, and compliments to you, sir, for the fantastic quarter. I think you have not only, according to me, not only surpassed the operating profit, the highest operating profit, but even the net profit also, I think post-tax provision also, is the highest, as I see in 8-10 quarters. So it is probably maybe the highest ever, even net profit also. So my compliments to you and the entire team of Indian Bank for that. Even on other parameters also, you have performed very well. Your asset quality also has improved, and your net NPA now has gone to 0.1515 basis points. So below that, there is hardly any scope for getting it down. So the provision maybe not be required so much.
But having said that, sir, my first question is basically on the ECL, that the provisioning will continuously still be required to be made. And you said that you have made the additional provision on SMA-1, even in this quarter also of 380 crores and some other floating provisions. So where do we stand as far as our preparations for the ECL implementation, which is coming soon, is there? And how much, I mean, are you going to absorb everything before April 2027, or you are going to take the benefit of those extended period allowed or permitted?
See, we have assessed ECL requirement on various permutation and combination. So I'm not giving that number because that will not make sense. Because we have also, I mean, that draft guidelines was open for discussion and for comments. So we have sent some comments to RBI and expect, I mean, I don't know, but let us see what comes finally in the guidelines. So based on that, but as far as my preparedness is concerned, my endeavor will not deflate to take five years. So first year itself, we will whatever we have to do, we will do. Quarter-wise, we will see. Let us see how many quarters that will take. So but definitely not more than one year. So that much I can tell you. And this philosophy will continue that wherever we can make some provision so that the quarter we shift to ECL impact is minimum.
Sir, in your initial remark, you had covered some, I think, SMA2. But as I see the total overall number of SMA2 of this quarter is INR 4,309 crores as against the last quarter of INR 1,448 crores. So I just couldn't hear properly, I mean, what is the explanation? You said you are comfortable on that. So.
Yeah, there are two PSU accounts where state government guarantee is available. So last quarter, that was in SMA-0. This quarter, it has come to SMA-2. So I mean, chances of slipping these accounts are, I mean, very less.
How much is that quantum of these two state government accounts?
3,000.
Okay, so basically, we are only 1,309 if you remove those state government accounts, and there is no chance of slipping them in NPA, isn't it, for that?
No.
Sir, as far as the overall business growth is concerned, of course, on annualized basis, still we are comfortable this thing. But if you see the nine-month numbers, on credit growth, we are 8.62%, and on the deposit side, we are 7.29%. So you have a strong pipeline, you said. But at the same time, you know, on the capital adequacy-wise, we are at almost, I mean, nowadays, whatever the normal CRAR is there of the banks, we are at the little lower side of, say, 16.58% of the CRAR. So considering, and CD ratio is 80.77. So considering all this, whether you will reach the target, you will surpass the target given, and whether your pipeline and the other adequacy is available that you reach the target or cross that, especially on the advances front?
Yeah, yeah. Whatever guidance we have given, we will surpass that. There is no doubt in that. Because see, even in this quarter, I have sold IBPC of INR 7,000 crore. So if not sold, that will add to my growth only.
No, that is there. But I mean, where is it coming from? Like your corporate, I think you said INR 50,000 crore in the.
Pipeline is there.
In the sanctioned pipeline.
Yeah, yeah. RAM, we are seeing good growth. Retail also, if you see, we have grown by 18%. MSME also, we are seeing good growth of 16%. Agriculture also, 15%. So good growth is coming through RAM sector. And in few sectors, in corporate also, we are seeing good demand, like green finance. There are various subsets of green finance, like EV, solar panel manufacturing, solar power plant itself. So few sectors, we are seeing good demand. And then one logistics sector is also coming up. So a lot many proposals we are getting for the warehouse development. So we are seeing good. Yeah.
Sir, last question in this round, sir. On the treasury front, I think we are doing reasonably well. So what is the going forward in this remaining quarter of the FY26? Where do we stand as far as our treasury performance is concerned?
See, treasury, we should be able to maintain. I mean, although if you see, yield has hardened as compared to the last quarter, but still we have generated profit of around, including forex, around 500 crore. So treasury, next quarter, I am expecting somewhere around 350. So there will, I am expecting some moderation in the treasury incomes, around 350, I am expecting that.
Okay, so it's a little bit tapered down.
But if you see, Q2 also was only 330.
Yeah, but in this quarter, it was even investment. If you see in the other income also, it is 342 crores. So I mean, the estimate of 350 overall looks.
yes, yes.
A little conservative, and then the impact of this new labor code also will come, sir, now, I think, so there also the gratuity and the leave encashment, I mean, all those factors are there. Has that been assessed for calculating the profitability?
Yeah, yeah. Assessed, we have impact of only INR 56 lakhs. To be precise, INR 55.86.
Thank you very much, sir, and thank you, Anand, for giving me so much of time.
Thank you, Ajmera ji.
Thank you, Ajmera ji. Again, if time permits.
Sure, sure. Next question will take from Kayuri. Kayuri, please unmute yourself.
Hi, I just wanted to know whether the asset quality and loan growth will incrementally improve by quarter four to quarter six?
Sir, were you able to listen to the question?
No, I mean, her voice was breaking.
Okay.
Can you repeat?
I just wanted to know whether the asset quality and the loan growth will incrementally improve for quarter twenty-six.
I mean, I think she's asking whether the asset quality and loan growth will improve from here on.
Got it. So asset quality, we are already at very good level. Gross NPA 2.21%, net NPA 0.15%. So what improvement, I mean, we will maintain that. I have already given guidance of less than 2%, we will maintain that. Net NPA 0.5%, we can do 0%. But then after zero, what to do? So we will maintain that. And expecting a slippage ratio, I am also expecting that this level of slippage ratio will continue. Only aberration remains March. In March, because people go for audit to the branches, at that time, some MOC is being passed by them. So to that extent, there will be some impact on the asset quality. But after that, it remains steady. Credit growth, credit growth, I am hopeful that see, credit growth is also a function of how the economy is doing.
If you see, most of the estimates for credit growth is also coming around this calendar year also, next calendar year also, they are giving good guidance of between 6.5%-7%. So my expectation is even next year, credit growth, whatever we are maintaining, we will be able to sustain that.
Thank you, sir.
Sir, in that context, you know how do you expect the deposit growth to pan out, right? We have scope to improve the LDR, but deposit growth in the system certainly remains a challenge. So what is that you think, like how deposits will mobilize, how CASA is going to come through, and whether that's going to be a challenge for you?
Yeah, yeah. See, I am part of the industry, so I cannot be aloof of them. So the impact of that will come definitely on us. And already, if you see, after December, already bulk rate has gone up by 20-30 basis points. Because credit growth is good, deposit is not coming. And CASA, CASA, what I am feeling, CASA is a structural change. Behavior of the people is a structural change, and they will shift to other modes of investment. Having said that, we are taking so many measures on CASA, and we are instead of relying on one or two bulk chunky deposits, we are trying to make it granular so that we can have float volume is there. Then that's why if you see a lot of efforts are being put on the technology side, QR code, salary account, cross-sell.
So because of that, we will be able to, I mean, not increase CASA, but I mean, we will be able to maintain or maybe marginal decline going forward. I may be not only in this quarter, going forward, I am seeing. Not immediate future, but going forward, I mean, maybe not required next year as a part of a strategy, but going forward, maybe if deposit is not coming, bulk is very high, then we have to see other sources of deposit raising, like we may go for some bond, etc. So these sources will come into play going forward. So net to net impact will be there will be some moderation, some impact on the NIM. Ultimately, even if we are getting so many facilities in our saving fund product or credit card, so ultimately, these are adding to our cost only.
So it will happen, but it will happen gradually. It should not. It's like overnight, it will drastically change.
Sure, sir, sure. Next question will take from Parth Gutka. Parth, please unmute yourself. And any other participant who have questions, please use the raise hand option now. Parth, please unmute yourself.
Yeah, hi. Thanks, Anand. So sir, on slide 19, within the OPEX line items, the insurance cost has gone up materially during this quarter. Any specific reason for the same?
Yeah, yeah. DICGC, they have changed some formula. I mean, a few accounts for which they were not asking earlier the premium. They have added these accounts, and they have also asked for the extra years. So DICGC cost itself has gone up by 128 crore. Out of that, 82 crore relates to previous years, remaining relate to this quarter, which will also be going forward, that will continue around 60 crore increase in DICGC premium will continue.
Okay, sir. Thanks. And my second question is, again, within the OpEx, within the employee benefits, that line item has also gone up, as in the increase in the line item is much more than the overall OpEx growth. Anything to highlight there, sir?
AS 15 we have made. If you see, last quarter, it has gone up by 102 crore. That is based purely on the actuarial valuation.
Okay, sir. Thanks. Thanks a lot.
Next question will take from Darshil. Darshil, please unmute yourself.
Hello. Good evening, sir. Thank you so much for taking my question. Hopefully, I'm audible.
Yeah, yeah, audible.
Yeah, hi, so sir, we've previously given guidance in regards to NIM and ROA, but we are already outperforming that guidance, so can we, is there a positive upgrade that you would like to issue? Because I think we were saying around 3.1-3.3 in NIMs, and we are already at 3.45, and similarly, ROA is also, we are performing much better than what we've guided, so maybe for next year and this year, are we upping the guidance up?
I mean, this year, even if I don't upgrade already, I think we will surpass that, both NIM and ROA. ROA also, I expect for the year also, it should remain around 1.3. It should remain because in nine months, it is 1.32. But this quarter, maybe one or two basis points ROA impact, negative, sorry, NIM negative impact may come because MCLR book is repricing around 37% in this quarter, including three months, six months all. Out of that, one year, MCLR is around 19% repricing. And impact of 25 basis points rate cut two months will come in this quarter. So there may be some impact out of that. But part of that will be offset by deposit repricing, which is 18% in this quarter. So maybe one or two basis points, maybe it may go down in this quarter.
Okay, okay. By end of FY27, so we can have the same levels or higher than this also, like can we try to?
Let us see. Because, see, as I told, after December, already bulk rate has gone up by 20-30 basis points. So let us see how this quarter pan out, then it will be better to give guidance for the next quarter, I mean, next financial year.
Okay, okay, okay. Fair enough, sir, and sir, just wanted to understand, like when you say that there is some cost of funds is increasing for you, so structurally, what do you feel that there will be more intensity, like there will be pricing issues from other banks also that will push this cost of funds higher, or how do we see that, sir? Because our reach and network is there, we'll be kind of shielded from that. How do you see that intensity, sir?
No, no, definitely. See, because around 18% of my deposit is through bulk. Even if you see against a rate cut of 125 basis point, even term deposit rate cut has been around only 60, 70 basis point. So impact will come, we will also be impacted. If bulk rate goes up, then definitely we will also be impacted. Cost of fund will go up.
Okay, okay, okay. So we can, for next year, maybe we can expect some cost of funds going up.
We will see because many things come into play. So some strategy also evolve. We are also working very, I mean, on how to at least maintain CASA share. So many things we are working. So let us see, but I mean, that will purely be the function of how deposit, I mean, term deposit and this comes out. Term deposit and bulk deposit rate, how it comes out.
Okay, okay. And the last question from my end, sir, like credit cost, what do we expect, sir, going forward, like for this year and next year, sir?
Credit cost will maintain this level. I think we will be able to maintain. Although I have given guidance of less than one, but I think at least next quarter, I will be able to maintain this around 20, 20. Maybe a little bit it may go up because as I told in last quarter, through some MOC, some slippages increases. So maybe a little bit one two basis point here or there.
Okay, okay. Fair enough, sir. That's it from my side. Thank you so much, sir.
Thank you. Next question will take from Jay Mundra. Jay, please unmute yourself.
Hello. Yeah, hi. Good evening, sir. A couple of questions.
Yeah, Jay.
Sir, first is this IBPC transaction that we have done. Sorry, I missed the amount. What was the amount?
This quarter we have done 7,000.
Okay. So, sir, this INR 7,000 crore you have sold, but you could have received some NII, right? Is there any positive, I mean, there will be some positive impact on NIM? Could you quantify, sir, if possible? I mean, how much you would have earned without being in a denominator thing?
Rough. So it will also be okay.
240 crore. Percentage term? INR 240 crore, absolute number.
3%, 3.25% for annual. So half yearly, it was half yearly. So 1.87% roughly on 7,000. That would be roughly 8.6%-1.6% on that annual.
So, percentage you can calculate around, say, differential. You can say around; you can take 2%. So on 7,000, 2% means around 140.
Right. So 140 is the additional interest earned on the.
Not interest earned, interest saved.
Correct. Saved. Right. And there is no implication on the fee or other income, right?
No, no, no, no implication.
Okay. Sure. And secondly, sir, I was under the impression that some of the, let us say, you are mid-sized to small-sized bank, and there is a lot of news flow about M&A merger. So other smaller banks, they are showing much faster growth, right, maybe to avoid any likely M&A, right? And at the same time, you are actually shedding INR 7,000 crore in this quarter, and last quarter you also shed. So I was thinking that maybe you will show more base versus you are actually keeping yourself lean.
That decision of amalgamation will not depend on the one quarter growth. So that will, of course, depend on long-term viability.
Okay, sure. Secondly, sir, if you can specify the total SMA, now you have 10% provision on both SMA as well as SMA 2. And if you can specify, sir, what is the absolute amount of SMA 1 and SMA 2 and SMA 0, if possible?
Yes. SMA-0, total SMA book is 31,488. Out of that, SMA-0 is 12,000. SMA-1 is 8,000. SMA-2 is almost 11,000. So 11,000 is 8,000, 19,000, 10%.
Right, right. Okay. And sir, on ECL number, so assuming, I mean, do you intend, do you have a number in mind which you want to reach, or now you have 10% on both SMA 1, 2, you are there?
No, no, not there, of course. Because see, that guideline say simply one guideline, they are saying LGD of 65%. That itself is huge demand will generate. Then they are saying on restructured asset, all 100% PD. So huge amount will be required. So many things, let us see how it pans out. But yes, of course, I will be working on to minimize the impact going forward as far as possible in the first quarter itself or in the second quarter so that we can absorb all these.
Correct, correct. So sir, what would be your assessment? Let's say you have around INR 1,900 crore as standard assets provisioning. Where do you want to reach? I mean, would it be like 5,000, 10,000? How much will be that amount?
See, I don't have, I mean, you cannot reach unless you have a profit. So I have to worry of the ROA also. I have to see other parameters also. But any surplus, whatever we are getting, maintaining ROA, etc., we will try to give cushion to the balance sheet. Not any specific number in mind.
Okay. So other banks have given like 1% of RWA number. So that is why I was just trying to benchmark. So let's say your ROA number, I mean, your RWA number would be around 4 lakh crore. Other banks have said around 1% of RWA.
That is, Jay, I'm telling you scenario.
Right.
Say if they are accepting to the request of the banks that restructured asset, not 100%. They still may accept 50%. There will be huge impact.
Right.
They accept to the request of, say, LGD from 65 to 60. There will be huge impact, so I mean, the banks we are giving, they are best case scenario, there is worst case scenario, so who is talking what? We don't know.
Okay.
Sure, sure, sure.
Jay, please fall back in the queue.
Sure. Okay. Thank you. Thanks a lot, sir.
Next question will take from Antariksha. Antariksha, please unmute yourself.
Yeah, I'm audible?
Yeah.
Good evening, sir. Sir, just two questions. One is in the Jewel Loan or gold loan portfolio, can you tell us what is the incremental LTV that you are doing business in, both in retail and in agri?
Somewhere around 65%.
On fresh loans?
LTV 65.
Migth you can also tell.
Sir, in agriculture, we are having 75% sir now, as of now. And other retail and MSME, it is ranging from 65%-75%. But we have done one thing. We are pricing, taking price of the gold on the moving average.
Okay. So it's one month, three month moving average, something like that, is it?
Last 30 days or last day, whichever is less, we are taking.
Okay. Okay, sure. And the second thing is, sir, you mentioned about bulk deposit rates going up incrementally. I'm assuming these would most likely be about three months, six month tenure, right?
Up to one year also.
Across all the buckets.
Across all buckets.
So if you just do a blended duration, what would be the incremental bulk rates today? I mean, if you were to do fresh borrowings, be it six months, one year, whatever it is.
Not less than 670, 680.
So then I was thinking if your incremental borrowing of short-term loans is at 670, 680, and there are some loans which your total yield on book today is about 8.1, and so fresh yield, I'm sure, would be less than that. There is a spread of 100 and 125 basis points on incremental basis for some loans. If you take the most expensive source of liability and the most cheapest cost of assets. So if you load your costs and some credit cost on that incremental basis, there are some loans which are hardly making ROA, no? Why?
Yeah, that is the reason. If you see our corporate, we are, I mean, very careful in giving the rates.
But if that is the case with you, it should be true for the whole system, right?
Yeah, yes, sir. It's true for the whole system.
Why is pricing still so low? This is my question.
is, see, everybody pursues their different strategies. Somebody pursues aggressive growth, somebody thinks about the, I mean, moderate growth, somebody thinks about bottom line. So it depends on the strategy of the person, I can say.
Okay.
Bulk, if you see, for us, bulk is around only 18% of the total deposit.
Yes, yes, you mentioned that, and that number should be going down, right, because the rates are high?
Going down, I mean, depends. Going down, going up, cannot say that will depend on the market situation. But endeavor will be to get it down or maintain at this level.
Sure. Okay. Thank you, sir.
Thank you, Antariksha. Next question will take from Ajmera ji.
Yes, sir. Sir, my one question was on. I say, basically a general question, but it is impacting everyone today, that what is going geopolitically in the world, the kind of disturbances and the, of course, started with Trump tariff and now so many things are happening. And it is affecting various businesses at various levels. So first thing is that, have we made any assessment of a kind that all these sanctions and so many turbulences and the tariffs and other thing, whether if we look at our customer profile, even a smaller businessman, MSMEs or this thing, that is there any sizable impact going to be anywhere? And are we prepared for that? So I will say reply you in two parts. First of all, what will be the impact on growth because of the geopolitical tensions?
This year also, a lot of geopolitical tensions are there, but still our economy is doing good. So I expect our economy also, and if you see most of the external agencies also are saying that Indian economy will be the fastest growing economy and will grow in the range of 6.5%-7%. So don't see any challenge on the growth part, number one. If you don't see any challenge on the growth part, I think impact on, I mean, asset quality should also be not huge. Next question, any particular impact to the tariff? Tariff is, we have assessment, we are not seeing much impact. Our total export business is very minuscule. I mean, I have exact number, but it is so small that I don't want to tell you. And within that also, exposure to U.S. is only 4%-5%.
I'm not seeing any much of the impact of that.
Okay. That's good to know. And sir, one last thing on gold loan portfolio, and in that also, the bifurcation between the gold agri loans and non-agri loans, and what kind of yield are we having on the gold loans of both agri and non-agri? And in our growth plan, are we aggressively pushing gold loans? And similarly, our NBFC funding through the NBFC or NBFC funding, whether the, I mean, you call it as a co-lending or a direct lending, and what is the picture there? And are we, I mean, similarly bullish on that also?
No, you see, gold loan is a very safe type of loan. Only thing, the only risk we carry is some fraud happens. So we have put in various measures to avoid fraud. And since we were traditionally doing, so our systems are robust. So don't see much of the challenge on that. Yield, we are getting good yield. You can tell? 8.7%. 8.7% yield, 8.70%, we are getting approximately.
That is overall or non-agri?
Overall.
Overall.
Okay. Good. I mean, it's a reasonably good yield. Yes, sir.
Yeah. Thank you. Ajmera ji, sir, I think we'll have to move to next question.
No, no, no problem. No problem. Thank you for even giving this much opportunity, and I can always speak to sir if you can reply.
Sure, sure, sure, sir. Next question will take from Darshil. Darshil, please unmute yourself.
Hello. Yeah, hi. Sorry. All my questions are answered. So just one question from my last question from my end. So in terms of credit growth, when we are trying to reach double-digit 10-12%, is there, are we looking that maybe next year with good GDP numbers expected and good growth happening, can we aim for a higher, maybe mid-teens level of growth? Is that or maybe just 15% or something? Is there any type of plan being formulated to reach that growth, or are we willing to just have around top line growth of 10-12%, sir? I think 12-13% growth is good, Darshil. 12-13% because see, if you pursue very aggressive growth, then you will start asking why your NPA is going up. So because of that reason, we are pursuing very, I mean, growth so that our NPA should not go up.
I remain more worried about that. Risks should not build up. See, because risk is always built up in the good time. So I always remain careful of that.
Okay, okay. Fair enough, sir. Fair enough. Yeah, that's it from my side. Thank you.
Sure. Last question will take from Sushil Choksey ji. Sir, keep your question limited. And sir, before I think when Ajmera sir was asking, one question which came in the chat box was that, have you done or basically extended any moratorium to the MSMEs? And if yes, what's the quantum?
MSMEs, you mean too because of the forex business?
Yes, forex rate disruption which has come. Yeah, yeah.
So far, we have not extended.
Okay. Sure. Yeah, Sushil ji, you can unmute yourself and ask your question.
Congratulations to Team Indian Bank for excellent performance, and market is also rewarding.
Sir, my first question.
Sushil Choksi ji,
if I take 12-24 month outlook, what would be a balance between RAM and corporate book? Any bold policy or direction? We will like to maintain same ratio.
65, 35?
Because, see, yeah, yeah, I mean, yes, 65-35. Reason I'm telling you because, see, as a responsible banking, we also need to participate in the building of the country. And if we don't do corporate, then banks don't do, then who will do? I mean, infrastructure lending, we have to do. So as a part of strategy, we like to maintain between 65-35.
Second thing, sir, when you are working so efficiently on RAM, on the digital stack, you have announced many products. You've launched and spent a lot of money. What is likely CapEx for next 12-24 months to be more efficient, more connected system? You are tapping salary account, host to a system, many other systems, supply chain. What kind of spend will we do to garner a bigger pie from the existing wallet?
Around INR 2,000 crore per annum.
2,000 crore per annum.
Including both CapEx and OPEX. Because majority of IT expenditure is also coming in the shape of OPEX.
Sir, it's a hypothetical question. Let's assume that our book value next year is INR 600, and if your stock is trading at nearing 1.8-2 times book value, will you dilute equity or equity is not required at all?
No, no. Otherwise, equity is not required at all. But that's why I have, if you see. This year I have kept approval from the board for QIP up to INR 5,000 crore. If you get opportunity, we can, of course. But as a part of, I mean, we don't need as of now. Already at 16.58%. So in March, it will cross 18%.
Sir.
So we will not.
You may not need equity, but the market is rewarding.
Yes, yes. I may not need.
You may not need, but if market rewards, you are willing to dilute as well.
That's why enabling clause, that's why I have kept, which I will like to keep next year also. If some good opportunity is coming, we can, I mean, get good rate, why not?
Sir, on the international book, it seems that a lot of opportunities are coming from Indian promoters specifically where in the geography we are present. What is the outlook on that segment specifically on financing entities which are pan-India but growing overseas? People are shifting from Bangladesh to Sri Lanka for textile. Auto ancillaries are also repositioning some other location. You already said EV you are doing. Battery management led to solar and other things are coming. So what kind of a situation we are in where these kind of pipelines are concerned?
No, no. This type of pipeline, good number of, if you see, I give you just one number. My growth in green finance itself is around 60%. So we have good pipeline of that also. And we are open to get any opportunity. Only thing I remain cautious, only one thing always in green finance. I mean, good name we will do. Because many new players are coming, I don't want to take that risk and that they don't have much expertise and they ultimately end up in trouble and bring bank also into trouble. So good names, good background, good proven history, we are doing. And we remain open to that.
So your team will not create a negative impact that I'm very assured of. Sir, out of INR 50,000 crore corporate book which you have indicated, how much would be manufacturing?
Manufacturing?
Pipeline of manufacturing.
It's a pipeline of manufacturing.
That's a question to have.
Yeah, yeah. That I will give you, Sushil ji. Note down, you give him.
No problem, sir.
Sir, I think in the interest of time, we'll have to take that as a last question.
Thank you and all the best, sir.
Thank you.
Thank you.
With this, we come to the end of the Indian Bank's post-results conference call of 3Q FY26. I now request the management to give their closing remarks.
I think we have already discussed so many things and very relevant questions had come. But we have taken a few initial one. Two things I will like to discuss as a concluding remark. We are investing hugely in IT and benefit of that is accruing, but not to the extent I desire. So a lot of initiative we are taking how we can digitally onboard our customers. A lot of efforts is going on there. We are seeing good traction also. And good benefit also we are seeing. Like my target is say my total digital business is 15%. I want to make it take it up to 50% in next two to three years. December, if you January, I have internally set a target that we will double the business figure in five years, last December. So from that means more than 25 lakh crore by December 2029.
We are on track of that also. We have plan of using AI in various, I mean, sector, various segment of the banking. We are already in discussion or in at some stage use of AI in current opening, cross-sell module, use of AI in cross-sell module, personal finance management, automatic grievance redressal mechanism, then suspicious transaction reporting. These are the few sectors we are working on where we can use AI and be more proactive other than reactive. We will continue focusing on RAM and CASA as, I mean, as I told, my half of the time goes on CASA. That is worth investing. That time is worth investing. If I can maintain this percentage of CASA, that will be worth investing. With that, I mean, whatever guidance we have given, we are on track in most of the parameters. Thank you.
Sure, sir.
Thank you.
So yeah, on behalf of MK and the management of Indian Bank, I thank all the participants for joining. Happy evening and good day.
On behalf of all the participants, I thank the management and to you also, Anand. And thank you, Ajmera ji. I also thank all the participants for sparing their time and joining the conference. Thank you. Good evening.
Thank you.
Thank you.