Good evening, ladies and gentlemen. I welcome you all to Indian Bank's post-result conference call for the second quarter of financial year 2027, hosted by Nuvama Wealth Management Limited. From the top management, we have with us Shri Binod Kumar, MD and CEO; Shri Ashutosh Choudhury, Executive Director; Shri Shiv Bajrang Singh, Executive Director; and Ms. Mini, Executive Director. I request the MD, sir, to briefly summarize the key highlights from Q2 FY 2027 results, and also provide strategic directions on growth, margins, and asset quality. Post which, we will have the Q&A session. Over to you, sir.
Good evening, and thank you all for participating. Key highlights I will share. Thereafter, we will go to Q&A. Total business grown by 14.22%, deposit grown by 12.50%. CASA, we have seen good growth of 13.77%. Sequentially, it has come down a little bit because of the FCNR, basically. But YoY basis, it has gone up from 38.87% to 39.36%. Bulk deposit has come down. Last quarter, it was 1.62. This quarter, it is 1.52. That means 10,000 bulk deposit has come down. Advances has grown by 16.39%. Corporate has grown by almost double digit, 9.92%. RAM has grown by 17.74%. Almost all segments equally growing. Retail 17.37%, Agri 17.18%, and MSME 19.06%. RAM constitute around 67% of the total portfolio. Coming to the profitability side, there I will give a few parameters. I will give two numbers, because during the quarter we have some share of NSE unlisted.
It has been listed. So on account of that, we have booked some profit and part of that has gone to MTM. We have booked INR 252 crore and INR 1,134 crore has gone towards MTM. So net profit has grown by 14.71% to INR 3,462. Operating profit has grown by 46.58%, crossed INR 7,000 crore. But apart from NSE contribution also, it has grown by 18%. Net interest income has grown by 17.83%. Other income has grown by 58.95%, basically contributed by NSE. NIM YoY basis has grown by 8 basis point, but 2 basis point sequentially. Domestic by 1 basis point, global 2 basis point. And we have done some churning in the overseas portfolio, so overseas NIM has expanded by 8 basis point. Return on asset is flat at 1.31% sequentially. Return on equity 19.66%, 18 basis point expansion. Staff expenses flat is basically 14.56%, INR 3,037.
Other expenses, INR 1,545, has grown by - 0.29%. Cost to income ratio, actually it is 44.59% five if you take NSE into account. If you don't take it, then it is 39 basis point, 39.30%. Provision coverage ratio is 98.22%. Credit cost has come down by 1 basis point, 0.22%. Earning per share INR 102.82. Book value INR 535. Cost of deposit has expanded, gone up sequentially by 9 basis point. Yield and advances also has gone up sequentially by 8 basis point. And yield on investment has also gone up by 2 basis points sequentially. Total tier one capital is 16.21%. Out of that, CET1 is 15.18%, tier two is 1.03%. The gross NPA has come down to 1.61%, net NPA 0.14%, slippage ratio 0.69%. It has come down by 8 basis point from the last quarter. SMA has come down from 7.35% last year to 4.19%.
And basically, absolute number INR 29,748 crore. SMA to more than INR 25 crore is around only INR 400 crore. So we are not seeing any major stress in any of the account. Going forward, I think I have given guidance of deposit 9%-11%. I am revising that to 11%-12%, and advances I have given guidance of 11%-13%. That I am revising to 13%-14%. Recovery, I think I have not revised guidance, but I think we will be doing better than what we have given guidance. Recovery also, if I talk between a smaller account, a bigger account, more than INR 1 crore, we have INR 756 crore recovery and less than INR 1 crore, INR 791 crore. So it is almost equally distributed. We have a pipeline of corporate credit. We have a pipeline of INR 63,000 crore.
Out of that, INR 30,000 crore is sanctioned, yet to be disbursed, and in principle given in INR 10,000 crore. Remaining some discussion and a preliminary discussion around INR 23,000 crore. So these are the basic few things. During the quarter, two, three things I will highlight. Last few quarter, we have taken many initiative on basically CASA, like salary account, maintaining floats in various accounts and also giving FinTech solution to the different companies or government departments. So these are giving good result.
Through CRM also, we have launched through CRM, which has been launched in July only. We have been able to add business through CRM INR 1,500 crore approximately. In this quarter of FinTech solution, we have provided to 23 companies, government department taken together. In that, we have added around INR 5,000 crore. Similarly, in CMS, we have started and there also CASA is around INR 7,000 crore.
So these things are giving us good result. Through NGCC, is not only being used for the query resolution, grievance resolution, it is also being used for lead conversion and through that, we have converted around 5,000 lead and amounting to INR 200 crore. So these are the few initiative we have taken. MCLR book constitute 43.19%, external link benchmark 49.65%. 25 basis point, all of us know it has already been increased repo rate, so we should see some expansion in the NIM, maybe 5, 6 basis point. Going forward as and when it unfolds, we will see what will be the scenario. So these are the few highlights. Now, I will request my colleague, Mr. Ashutosh, to talk about the digital initiative, and thereafter, we can take forward.
Thank you, sir. Good evening, all. I will just highlight a couple of the initiatives that we have taken recently, this Q2. One is AI conversational banking. We have named it as AI-TARA. That is Trusted AI Relationship Assistant. So this particular initiative is for ease of doing the transactions. It's a voice-based command transactions. With this, we anticipate the customer engagement and the customer experience will improve, and that will help us in growing our desired low-cost resources. The next one is we have introduced a Smart Wealth AI-powered PFM, that is personal finance management. In the first phase in Q2, we have started with only an analysis of expenditure and the investment analysis it gives.
In the second phase, with an intelligent insight, it will also be able to guide the customer what kind of expenditure they can reduce, what kind of investment they are looking for, and accordingly it will guide. Along with all these digital initiatives, the digital business has grown 18% year-on-year basis. Thank you, sir.
Many people will have concern regarding treasury, so upfront I am explaining. Without NSE, I will explain because I consider NSE as a one time. If I talk of H1, last year, we have earned INR 854 crore. This H2 also, I have earned around INR 794 crore. If I talk of the Q2, then last Q2 last year, INR 152 crore, and this year, INR 290 crore. Other than NSE, there is MTM of around INR 11 crore in NPL MTM loss.
Sure, sir. We will open the floor for Q&A?
Yes.
Sure. We will now open the floor for Q&A. Anybody who wishes to ask a question shall raise their hands.
Sure.
I request the participants to limit their question to two per participant. For further question, please join back to the queue. We will take the first question from Mr. Ashok Ajmera. Sir, please go ahead.
Yeah, thank you for giving the opportunity. Good evening, sir, and congratulations to you for very good set of numbers. In spite of whatever is happening in the markets and whatever is going on globally, your performance is excellent, and I think you are the third public sector bank having declared the result. So expediently, I think this time, all the banks are maybe, I do not know the reason, maybe the coming Diwali or maybe something happening there at FMO. But every bank is rushing up declaring the results, and your results are also one of the best set of results which are there so far. Sir, a few things like the provisions on the standard assets, I think gone up from INR 733 crore to INR 1,882 crore. But for this extra provisioning, the profitability would have been much higher.
But I think you have taken the benefit of that MTM profit of the NSE being listed. So on that, can you explain that this is because of the ECL provisioning or some extra provisioning which you wanted to do? In the income and the profits, there are certain items, one is that miscellaneous income has gone up to INR 468 crore in this quarter and again, INR 157 crore in the last quarter. If you can throw some light on that. I have a couple of other questions and some observations also. If you can answer these now, and then I will take up the further questions.
Yeah. So provision, very rightly, basically INR 1,500 we have made for ECL. Last quarter, we have made INR 1,000. Now we have made INR 1,500. So ECL, we have total we have made INR 2,500. We are expecting total impact of INR 3,500. Because of that, I think, since we have some question, why not to make it when time is good.
Yeah.
Other income, that is basically if you see last September also it was good, around INR 500 something. June it was less. Again, it is INR 400. Income tax refund has come and interest on that.
INR 271 crore.
INR 271 crore and interest on that.
Okay. INR 271 crore is the interest on the income tax refund.
Yeah.
That is added to this income.
Yes.
Which may not be a continuous feature in the next quarters actually.
Yes.
Yes, sir. On the treasury front also, of course, there is a pressure because of the yield hardening with every bank in the treasury, and you have comparatively performed better than so far other bank. But going forward, we will have to depend only on this yield movement and the hardening of the yield even in the U.S. A little bit softening is there yesterday and today. But going forward, what do you see, sir? Where do we see the income coming from the treasury, maybe from the trading opportunities or arbitrage opportunities, if it is there at all? How do you see the treasury income unfolding in the coming quarters, sir?
Yeah. See, only one thing I will say, in this meet I have also told, treasury, since we have not earned very handsome, and that was part of a strategy, very handsome income last year also. Of course, treasury income going forward will be muted. I don't see very high profit from treasury. But impact in my case will not be very severe, because we have still not booked in very good yielding securities. So impact will not be much. Only one thing, we were also earning some good income in Forex. So let us see how that pans out. Some guidelines has recently come from RBI, how that pans out, that is to be seen. But treasury overall, since I have not accounted for very high profit from treasury. That is not going to impact my numbers.
Okay. Sir, now we have grown well on the deposit front also. Even in this quarter also, the growth is 3.5% almost. And matching your credit and giving health to the credit. But now with this FCNR window, all those routes are closed, and where we got a lot of good dollar deposits. Going forward, do you see the pace of deposit at the same rate? And whether the credit growth, which is 5.5% in this quarter will match in the remaining two quarters also, and we will revise our targets for both the deposit and credit, both going forward in this? Then another, coupled with this is. Yes, sir. Sorry for this interruption. This MCLR, you said is 43.19% MCLR-linked credit. On the remaining loan book, the benefit must have started immediately with this increase in the rate of 25 basis points.
As far as the increase in the deposit rates are concerned, what do we plan? What I understand is that deposit rates which are already going on are not going to increase, even if we increase the deposit. And interest on the deposit, even if we increase, it will take some time. There will be lag period. You said the overall difference in the NIM will be about 6-7 basis point. NIM will increase from this rate increase. Both the cases.
Yeah.
Yeah.
Let me. So growth, see deposit I have already told, whatever FCNR we got, we have managed it very well. Bulk, we set it around INR 10,000 crore. Retail also, we gone little slow. Overall, if you see my deposit growth, it was not contributed much by FCNR. Last quarter also, my deposit growth was around 12%. So 12% deposit growth, I am expecting that I will be able to maintain. Advances growth, see 16.39%, it has come primarily on account of the loan being taken against the FCNR deposit, which may not be in the next quarter. But having said that, I am expecting that 14%, 15% growth in advances we will achieve. It will not go down substantially and I am comfortable with 14%, 15%. So I'm comfortable with that.
Regarding MCLR, of course, very next day from the repo rate increase on the external link benchmark, it has started accruing. Rightly told, NIM, I think NIM will increase by 6-7 basis points in this quarter. Going forward, as and when repo rate unfolds, we will see.
See, our corporate book also is growing well. What is the status there of the sanctioned pipeline and the projects which are still under sanction also, some idea about that are we going to take the help of the growth of business in the corporate more, as there is a saturation now in the RAM? Everybody is chasing that. What is the strategy towards increasing our loan book through the corporate book?
Corporate, I will say growth of 10%-12% I am targeting in corporate. Earlier, if you see, basically corporate is also function of capacity building. Earlier, if you see my growth in corporate is 1%-2%. I have taken various initiative. I have started-
Yes
-intensive training for credit. Because of these things, now people are gradually on capacity building happening, and I am expecting that corporate, I will grow in lower double digit-
-see, risk is also build up in the good time only. So that I also have to be mindful, that in the enthusiasm, we should not start building up risk in the book.
Good, sir. Point well taken, sir. And thank you very much for giving this opportunity. If time permits, I will come back again. All the best to you-
Sure
-for the remaining part of the year.
Thank you.
Thank you, sir.
Thank you, Ashok Ajmera .
Thank you.
For the next question, I request Jayant Kharote to ask the question.
Thanks, Anand. Congratulations on the good set of numbers, sir. First, maybe I missed this FCNR numbers. If you could clarify, how much did you raise total? How much was on your own book, the leverage given? And the status as of September 30, if you have utilized this liquidity completely or you have some still remaining on your books.
See, still I am in borrowing side. You can see, I do not have any surplus liquidity. We raised FCNR of $2.3 billion. That makes it around INR 21,000 crore. So INR 10,000 crore bulk has gone down by around from 1.62 to 1.52. And normally, my retail term deposit growth used to be in the range of INR 10,000- INR 11,000, which this quarter we have targeted around INR 5,000- INR 6,000. So INR 5,000, INR 6,000 there. So remaining INR 5,000 we have utilized. So there is no surplus liquidity on account of FCNR with us.
So if I am right, you raised INR 21,000 of which you paid off 15. I mean, you did not renew 15 of your bulk, and another five, six in the retail side that you did not renew.
Yeah, utilized already. Yes.
On the asset side, sir, you have how much self-leverage on this book?
Leverage against a deposit of INR 21,000 crore, you can say, I mean, $2.3 billion, you can say roughly around $2 billion will be the loan book. There we have preferred loan against the FCNR. People are taking loan up to 90%, 95%, 96%.
Okay. This is what you meant by the rejig in the international book, right? You have not run down anything.
Yes. Yeah.
Understood. So just looking into the next quarter, some of this international book growing, that should weigh on our NIMs, and of course, the benefit from the rate hike. How should we think about the yields for the next quarter? An ancillary question to that is, we see CD market again hardening in the last one week or two weeks. So I do not think people are waiting for the quarter to end before starting to raise. So how do we see that wholesale market? Basically, just wanted to understand the NIM construct for this quarter.
See, NIM, I will be very cautious in raising bulk also. Maybe if need be, we will go for other resources like, we have taken approval for up to INR 5,000 crore infrastructure bond. We may go for that. We are also exploring refinance opportunity. If I get at good rate, better than CD rate, better than bulk rate, I may go for that. We are exploring various opportunities. So otherwise, also in bulk, I remain very cautious. That is why if you see, I am not changing growth. 12%, 13% growth is okay. I am okay with that. So the NIM, I expect that overall, particularly if you ask for this quarter, I think there should be some expansion of around 5- 6 basis points.
Okay.
Because the deposit will reprice at subsequent route. Bulk already, we have accounted for some. Ultimately, we will not get anything less than the 7.20.
Yes. So when you say expansion, you have adjusted for the self-leverage on the book as well as some tightening on the bulk, and the rate hiking.
Yeah.
All to be put together is to expect expansion in third quarter.
Yes.
Second question is now on the ECL. I think you have already disclosed how much is the one-time impact, and you have shored up provisions. But on the recurring side, the steady state impact. In the last call, you had said the range of 12- 15 basis points. One of the banks that reported said the hardening of yield has an impact as well.
Would you like to revise your estimate upwards or downwards? Is that number still holding up? The recurring-
Hardening-
I am not talking about the one-time impact. I am talking about the steady state recurring impact on credit cost post ECL.
Hardening of yield, how it is going to impact?
Maybe we understood it wrong. You can help us.
I am just trying to understand how it is going to, because, see, ECL is function of default and loss given default. If interest rate is hardening, then are they expecting higher default rate? I do not know. But as per my calculation, I am not revising that number. Reason being, I expect the default rate will be under control. Because that is reflective of the SMA book. My SMA book, as I told, it has come down from 7.35% to 4.19%, and more than INR 25 crore also, hardly anything. Smaller accounts, we are already seeing a high elevated default rate, which will continue maybe a little bit here or there. Not expecting any increase in default. As a consequence, going forward, I am maintaining that 10%-15%.
10- 15 basis points. Sir, how do you think you manage that in the ROA construct? Do you want to pass it on in pricing or how do you see that play out? Because some banks are impacted, some banks are not. So unfair to say everybody passes on uniformly.
I don't think people will be able to pass on. Very clearly, I am saying. Because if people are not maintaining now, 6% still they are giving rate on a few of the big loans, they are still giving 6%. Passing on will be very difficult. Only thing what I am expecting. One year I cannot say, because one year even I will wait and watch how things pan out, because it is a new concept. It will take one and a half year to two year in stabilization. Model will be challenged. A lot of discussion will happen. Maybe regulator may not buy my assumptions. So one year it may take in stabilization. Thereafter, as you see, every quarter if we are making some additional provision. So I think that will be compensating that 10- 15 basis point.
Understood. Sir, one last question. For the LGD assumption for ECL, how many years back have you gone on your book?
Five year.
Across products, it's a five-year window?
Yeah, five year.
Great. Thanks, sir, and congrats again for a good set of results.
Thank you, Jayant.
We'll take the next question from the line of Mahrukh. Mahrukh, please go ahead.
Hello, sir.
Yes, Mahrukh.
Congratulations. Congratulations, sir.
Thank you.
Sir, I had a few questions. Firstly, that given that there has been aggressive lending in SME, even Agri and retail, do you see any points of stress?
Not reflecting so far. Very candidly, I am saying not reflecting so far. All of a sudden, something comes, then I cannot say. But as of now, not.
Okay. Sir, what are your disbursements under ECLGS?
Disbursement, I could-
ECLGS, how much have you disbursed so far?
ECLGS. Okay, ECLGS. ECLGS already happened. How much, Sujay?
Sir, it was around INR 5,000 crores that we did. 7,000 sanction was there.
Yeah. 8,000 sanction, 7,000 disbursement happened already in 31,000 accounts.
Okay. Do you see the scheme coming back given drought? How will the banking sector face the drought now?
Drought, ECLGS will not come for that. Drought will actually, then there will be postponement of the repayment. But fortunately, in the state where drought has been declared, my exposure is very minimum. Not even in 1,000.
Got it, sir.
In Agri book, not even in 1,000.
Okay, sir. Sir, do you have any comments on banking sector consolidation? Off and on reports keep coming on M&A in banks. Any views, any thoughts you would like to share?
I also know the same thing which I read from the newspaper or media. I have no additional information.
Okay, sir. Thank you. Thanks.
Okay, Mahrukh.
We'll take the next question from the line of Jai Mundhra.
Yeah. Hi, good evening, sir. Sir, first question on SMA book, sir. We have given this INR 29,700 crores-
Jai, there is echo. We are not able to hear you clearly.
Okay. Is it better now, sir?
Yeah.
Okay. Thank you, sir. I was talking about if you can give this SMA 0, 1, + 2 figure for all inclusive book, which is like INR 29,700 crore. The amount separately, sir. zero, one, two.
SMA 0, INR 15,683 crore, SMA 1, INR 7,222 crore, and SMA 2, INR 6,843 crore.
Okay. That means that SMA 1 and 2, they have been very unchanged, right? Actually, they have improved slightly only versus last one.
Slightly only, yes. Yes, slightly only it has improved.
Right. So, sir, you continue to hold 10% provision on both SMA 1 and SMA 2, right?
Yes.
Sure. And sir, I think previous participant also asked other banks what they have done is they have taken. I think initially you had also factored in the HTM impact on the HTM MTM, right?
Yeah.
I think now the other bank has now realized that they have to factor in the HTM also. So your INR 3,500 crore impact, is it only loan loss pertaining to advances or that includes some HTM provision also that is outside this?
No, it is only credit book.
Right.
HTM will be over and above that. HTM, let us see, because actually it is not ECL, it is valuation guidelines has come.
Right.
There they say that when the transition from 1st April you have to do one time MTM of your HTM book.
Right.
We will see, yield already 7.41. If that happens, then every bank will have huge impact on that.
Right.
Because most of-
No, please continue, sir.
Because every bank has HTM book of around 60%, 70%, 73%, 74%, there will be huge impact. So, guidelines stands.
Right.
Let us see.
Right. So sir, this will be applicable to entire G-Sec portfolio, right? On HTM and G-Sec.
Yes.
Right. Earlier whenever there was such sharp hike, RBI had even started this AFS reserve, right? Which eventually they said that you need not provide further.
Yes.
Can they come up with some HTM reserve in the meanwhile because we still have six months, so that it will not be one fine day you have to provide for the entire HTM? Or you think even that can be watered down considering the yield situation?
Actually, first of all, banks should take up with RBI.
Right.
Only then RBI will come out. Let us see. I will talk with few banks, then we will see.
Right. Okay, all right. And sir, on your Jewel Loan, if you can provide, sir, you have given the Jewel Loan retail, but what is the agri gold and how has been the growth there? Agri gold loan book, sir.
Agri gold loan book is around 22% growth is there. YoY.
That is YoY?
YoY.
And absolute amount, sir, if you have?
It is 1.16 lakh crore.
So, sir, that means the QoQ growth is only flattish, right? There is not much growth on QoQ basis. No.
In?
In Jewel Loan, sir.
No, it is there.
Okay.
No, 11%, 1.04 lakh crore to 1.16 lakh crore . 11% growth is there because of the tightening of the guidelines. First two months of January up to. If you see there is hardly any growth from March to June. It was flattest.
Right.
1.01 lakh crore to 1.04 lakh crore only.
Right. Okay, now it is 1.16 lakh crore .
Yes, thereafter people have acclimatized, and now they are working on it.
Right. Okay. And sir, if you have the number for AFS reserves change, right? The MTM impact is very small in the P&L-
Yes
-which is INR 11 crore. But what has been the change in AFS reserves, sir?
It was June, it was +503, now it is -123.
+ 503 and now + 123.
- 123. Yeah. So around 600.
Right. Last question, sir. These borrowings, I believe the borrowings have increased because of, you may have raised MTN bonds overseas. How long do they remain in the book? Is there any other thing that you can offload and/or will this borrowing remain the way it is, at least for the next three, five years? Or how to look at this borrowing jump?
No. Borrowing cost increase on account of two counts. One is this, not MTN, we have not gone for MTN.
Okay.
MTN very costly. I have raised only 500 or 400 million OFCB.
Okay.
That cost is there. Plus, if you see, borrowing side, I remain normally on the borrowing side, from repo and TREPS, et cetera. That has also gone up. Because of that, it has gone up.
This borrowing is not a medium-term borrowing, right? It can come down. Only OFCB is medium-term. But rest-
Yeah, only OFCB.
-can decline?
No interest.
Right.
I don't think it will decline, because see, it is good source of funding INR 10,000 INR 11,000 crore, good sales, good rate we are getting. Depending on the situation we keep on, at times it is INR 2,000, at times INR 5,000, at times INR 7,000. Depending on the requirement that helps.
Right. Okay, sir. And sir, if you have the number for LCR, that will be all from my side.
LCR number you have? 116.
Sir, ideally the LCR should have gone up, right? I mean, you have-
Back in the queue please.
Sure. Thank you.
We will take the next question from the line of Samir Bhise.
Hi, sir. Thank you for the opportunity, and congrats on a good quarter. Can you just clarify on the update with respect to CET1 and the CCF impact, which is there on CET1 and tier two capital, which you have put out? Just wanted to understand some details and how does it impact the bank.
No, see, it is one time impact. Actually, we are proactively making some provision for ECL, et cetera. Part of that we have taken as part of tier two, which in the eyes of regulator, they say that since we have identified for a specific sector, so it is not a free reserve. That is why they say that it should not form part of tier two. So that will be one time. Henceforth, we will not take, even if we are making something. This unconditionally, you can say one time. Going forward, it will continue. Actually, we have taken in document, we have taken that limit can be canceled at any point of time. Because of that, on that portion, unavailed portion, CCF was not being applied. So they say that you displayed that you can cancel limit at any point of time.
There is interpretation issue, so the-
Sorry, did you connect here? KBB? Fetch-
You have to take the entire credit RWA, including whatever was the unutilized portion as well.
Yeah. Unutilized portion also.
Oh, okay. Sir, does this any way impact our capital planning or any incremental with respect to business? Does it have any impact?
No. See, already we are 16.21, and by March end, the profit will be flowed back. So again, it will reach around 17, 17.5
That is a very comfortable growth. Yeah.
Yeah. Last year, my tier one bond retired INR 2,000 crore, tier two retired INR 3,000 crore. We have not raised. This year, again in January, tier two is INR 1,000 is retiring. So maybe we will go for INR 1,000 to INR 2,000 tier two bond, depending on the market condition.
Okay. Sure, sir. Thank you, and all the best.
Thank you. Thank you, Samir.
We'll take the next question from the line of Pritesh Bumb. Pritesh, your line has been unmuted. Due to some technicality, Pritesh is not able to. We'll take the next question from the line of Ashlesh.
Hi, sir. Good evening and congratulations. Sir, first question is on the Jewel Loan portfolio. If you can share, what is the yield on this portfolio in the September quarter, and what was it in the June quarter?
Till second you have? Till in March. It is 8.85%, sir. It is one year MCLR we are charging. Both, June also, now also. 8.85% in June also, now also.
Understood, sir. Sir, secondly, are you seeing any changes in the competitive intensity now across segments, let's say corporate segment, retail housing, and so on?
Actually, already very high all segments. Retail housing loan, people are ready to give less than 7%. What do you expect more than this? Many banks are giving less than 7% housing loan. Competition is already there. My comfort is I am not very aggressively pursuing growth. So that is my comfort. Normally, it is coming 16%, 17%, I am okay with that. I am not eyeing that 20%, 25%, because then you change, then ultimately your bottom line start impacting adversely. Underwriting quality overall starts impacting. Let me share with you one number. My total 92% book CIBIL score is more than 750. So we are not compromising on the quality in any way. Competition is already there, competition will be there.
Understood, sir. Sir, just this 92% pertains to housing or the entire retail book?
Entire retail book.
Understood. Sir, if you can share in the housing portfolio, where are you originating that book from? Let's say if you are sourcing INR 100 of loans in a quarter, what proportion is coming from your own branches, what proportion is coming from co-lending, what proportion is coming from DSA and so on?
Co-lending, zero. Co-lending we are not doing, neither we are taking any assignment of the pool. You can say 40% will be DSA. Approximately 40% will be DSA. In vehicle it is higher. Housing loan it is around 40%, and 60% through the branches.
Understood. Lastly, if you look at the drawdown of your limits in the corporate and MSME portfolios since February, March onwards, would you have a sense of what proportion of that drawdown was because of the Middle East crisis?
No. See, Middle East crisis, exact I cannot say, but I am just giving you sense. My WCDL and that book is almost stagnant. Rather, my WCDL book has come down by INR 1,000-INR 2,000 crore. Even OCC, what we call CC book, there also, it has come down by INR 1,000-INR 2,000 crore.
INR 10,000 crore is undrawn in MSME.
MSME also INR 10,000 crore is undrawn. So I don't see, because of that it has gone up. But exact number, I don't have. This I am interpreting through the broad numbers.
Understood. Sir, this decline you said is over what period?
Last two, three quarter.
Okay, understood. Perfect, sir.
It is not going up.
Got it, sir. Understood. Thank you, sir, and good luck.
Thank you. Thank you, Ashlesh.
We will take the next question from the line of Aman. Aman.
Hi, sir. Sir, as you highlighted, the LCR for the quarter is 116. So I wanted to understand, with the FCNR deposits coming in, the LCR should have ideally gone up because there is a lot of stable retail deposit in this quarter that will be there. If you can explain that.
FCNR, but I was also expecting same thing. Because of borrowing, this LCR basically is being impacted. Borrowing is reason, no? Because of borrowing LCR. Less HQLA. HQLA also we are not purchasing because LCR is comfortable. I was also expecting that LCR will go up, but then for that same level of HQLA, we will have to purchase. Only then it will go up.
Right. Also, sir, have you seen an improvement in the corporate yields in the second quarter as compared to last two quarters?
Corporate yield, I have number? I expect I don't have, but overall yield has increased by 8 basis points corporate yield. What is position? Tell me.
Corporate 8.49%, sir.
From June. What was June?
From June it was, sir, 8.36%.
8.36%- 8.49%.
Sure, sir. Thank you so much.
We will take that as the last question. With this, we come to the end of Indian Bank's post-result conference call of Q2 FY 2027. I now request the management to give their closing remarks.
Already every point discussed. Only thing, we are trying to grow in very balanced way, keeping track of the growth also and bottom line also. We remain cautious for that NIM also. We remain cautious for the growth also. Based on that, we devise our strategy. Neither pursuing very aggressive growth nor very subdued growth. It will be 100, 200 basis point here or there with the industry. We will not be off mark there also, that we are not doing at all. A few initiatives we have taken, like salary account, I will just highlight two, three things on CASA front. This year so far, we have added a salary account of around 2.5 lakh, against a total addition of 3 lakh last year.
Yes, sir.
Balance in the salary account has gone up as compared to last year, or even around INR 1,400 crore balance has gone up. Similarly, FinTech solution, wherever we have provided in this quarter itself, we have added around INR 5,000 crore. So various initiatives we have taken on the CASA front in last two, three quarter, and that are yielding good result. So hopefully we will be able to maintain CASA of around 40%. I was also expecting this quarter also 40%, but because of the FCNR disproportionate increase, it is around 39.36%. Thank you.
On behalf of Nuvama Wealth Management and the management of Indian Bank, I thank all the participants for joining. Happy evening and have a good day.
Thank you. Thank you all.
Thank you.
Thank you, sir. Thank you.