Q1 21/22

Jul 27, 2021

Ladies and gentlemen, good day, and welcome to the Endocent Bank Limited Q1 FY 'twenty two Earnings Conference Call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Sumant Kartpalia, Managing Director and CEO, IndusInd Bank, thank you and over to you, sir. Good evening and thank you for joining the call. I will start with some macro commentary and then go into bank specific details. With the 2nd wave of COVID-nineteen pandemic gradually Subsiding in quarter 1 and easing of mobility restrictions, our recovery in economic activity is taking shape, which would become more visible over the Q2 of Higher frequency data suggests that activity levels improved in June from the bottom made in May and the recovery has continued in July. The adverse economic impact of the restrictions imposed this year is likely to be limited in comparison to the national lockdown last year. A supportive policy environment characterized by an accommodative monetary policy and expansionary fiscal policy stance aimed at driving investments, Roloc of vaccinations, flexible and adaptive business models, leveraging on technological innovations, along with strong global economic recovery have made a better setting in 2021 to deal with the ongoing once in a century pandemic. We SMITH India's real GDP growth could be around 9% this fiscal year. The outlook on growth, however, will be dependent on possibility of subsequent waves. We are also watchful of inflation scenarios in India and among Major advanced economies and consequent implications to the monetary policy. Now coming back to the bank specific commentary. In quarter 1, during the quarter, we were focused on health and safety of our employees. We being part of essential services have to balance between customer convenience and safety of our employees. We conducted vaccination drives and over 40,000 70% of our employees in the bank are either and our MFI subsidiary have received minimum one dose. We aim to cover entire employee base with both doses in the next few months. The learnings and the digital From the first wave ensured seamless business continuity. Deposit mobilization continues apace. Our deposit growth was strong at 26% year on year and was entirely driven by retail deposits. CASA ratio also improved to 42.1 percent with CASA growth of 33% year on year. Our cost of deposit at 4.97% has fallen below 5% mark for the first time in our history. We have further reduced our savings and fixed deposit rates by 50 basis points this quarter and should help lower the cost of deposits further. Our dependency on certificate of deposits and market borrowings has come down and is absolutely negligible now. Caution disbursements. Our loan growth was at 6% Y o Y. Our domains have begun a growth journey in quarter 4. However, got interrupted due to the 2nd wave. We have already seen uptick in disbursements in vehicle and microfinance For the month of June, on the corporate side, the portfolio realignment is behind us, and we have been we have seen a growth of 10% Y o Y and 2% quarter on quarter within our underwriting framework. Scaling up of new initiatives. We remain focused on scaling up affluent, NRI and merchant acquiring business. Affluent touched a deposit base of INR 33,400 crores, growing at 7% quarter on quarter and an AUM at INR 55,000 crores. NRI deposits are now at INR 27,500 crores, growing at 40% year on year. Our merchant acquisition through Bharat Financials kept pace despite the lockdown and scaled up to 200,000 merchants now. Asset quality. The collection gained momentum since June after a temporary blip in May due to a nationwide lockdown. Overall collection for June was at 96% for the month. This has further improved in the last few weeks with the recovery in the activity levels. The impact of the second wave so far on our portfolio has been lower than what it was in the first wave. Maintaining profitability of the franchise. We maintained a strong PPOP margin at 6% despite the weak operating environment. Our NII grew by 8% year on year, In line with the loan growth, fee income grew by 18% year on year. We also reduced costs quarter on quarter by 1%. This, in short, maintaining a healthy operating margin. We have maintained comfortable PCR at 72% and increased surplus contingency buffer by INR 450 crores to INR 2,050 crores or 1% of loans. Capital adequacy. Our capital adequacy improved to 17.57% from 17.38% last quarter. The falling risk density and improving ROEs ensured the capital consumption is optimum. We have sought approval from shareholders for all forms of capital and borrowing. This is just an enabling resolution and there are no equity fundraising plans in the near future. We are comfortable with the CET ratio of 15.59% and a CRR of 17.57% as of June 21. CRR including quarter 1 profit is 17.89%. Before I go into the financial highlights for the quarter, I wanted to share my views on key business metrics of growth, asset quality and digital evolution. Growth Our growth in deposits at 26% have been strong for the past several quarters. This is as per our strategy of liabilities leading the asset growth. The growth is driven by retail deposits, and we remain committed to the PCV ambition of retail as per LCR of 45% to 50%. We have also lowered cost of deposits by 108 basis points since I took over and could see further decline with rate cuts announced in the quarter. Our loan growth was 6%. We took a cautious pause in retail disbursements in quarter 1. The disbursements have already started improving in most of the segments we Corporate book 2 has started going again after the debulking exercise. We thus see growth improving here on every quarter and we will back ourselves to achieving the PCV ambition of 16% to 18% growth. This, of course, is subject to the subsequent COVID waves and how Now I'll come to the asset quality. Our portfolio of expertise, Vehicles, microfinance and diamonds contributing 45% of the book are performing better than the market as disclosed in the investor presentation. Corporate slippages have also been range bound for the past few quarters. The unsecured details that his cards and personal loans have also done well in the 2nd wave. Our SMA II book was at 47 basis points as of June 21. We are thus comfortable on the portfolio quality. We will nevertheless maintain relentless focus on collections. Our collections were impacted during the early part of the quarter due to accessibility issues and customers started clearing overdues from June, particularly in high-tech segments like vehicles and microfinance. As a result, we saw slippages of INR 2,000 INR 7.72 crores as well as upgrades of INR 8.45 crores during the quarter. The slippages net of upgrades were at 0.9 percent of loans. The mix of slippages is 38% for vehicles, 24% for MFI, 22% in other retail and balance 15% in corporate. Our restructured book as of June is 2.7% as against 1.8% of loans in March. With the incremental 0.9 percent of restructuring, only 0.4% was from fresh request from under The May 5th Circular issued by the RBI and the balance of 0.5% was from the corporate accounts already under implementation as disclosed in the last quarter report. The restructuring is done for customers with good track record and will become viable post restructuring. We thus don't expect large delinquencies from this book. The credit cost would should even be smaller and well within the surplus provisions we given the strong collateralized nature of the book. Our ECLGS book remains small at INR 4640 crores, of which ECLGS 1 is of INR 3,040 crores. ECLGS 2 is of INR1600 and negligible from ECLGS 3 and 4. We have been conservative in our coverage ratios and building surplus provisions. The 2nd wave outcomes are broadly in line with the expectations And thus, we don't see a major risk to our credit cost expectation for the year subject to any subsequent COVID waves and materially negative outcomes in telecom. Digital launches. While Digital 1.0 was about seamless digital onboarding and servicing journeys Employee enablement, as we look into the future, there are 2 clear shifts that we see happening. Banking is becoming more and more frictionless and invisible, and it is critical for the bank to be where the client is and embed itself in the customer's lifestyle. Customer experience and customer obsession will define competitive advantage in the long run, and we need to move away from being product centric to client centric. Towards that end, Bank has created a digital center of excellence and is taking a comprehensive view to deploy New Age digital platform and build end to end digital client value preposition. This includes reinventing the experienced layer by building end to end digital stacks with omni channel capabilities across deposit, lending, payments and wealth. API orchestration and management through microservices based tax, which enable high degree of agility and needs and flexibility of integration with various partners making the bank ready for API Banking and Open Banking or Platform Banking. A recent example of this is ED Credit by the bank. Modernizing the core stack by moving to cloud native microservices based API enabled core stack, which enable high degree of scalability and reliability. Robust data engineering and data science framework, which as we move into cloud based data management and working on advanced analytics and machine learning led capability across used We should see our vision on the Digital 2.0 being implemented. We have created a digital center of excellence, taking a conferencing view to deploy New digital age platforms and build end to end digital value proposition. We are focused on 5 areas, namely: 1, easy credit for unsecured retail loans digital ecosystem for vehicles, particularly in the used car segment merchant solutions Differentiated payments and finance solutions for individuals SME trade and credit tax. We'll keep you updated on the progress of these five initiatives. Now coming to individual businesses. Vehicle Finance. Our all vehicle finance categories have seen we I have seen strong growth in quarter 4. However, the industry volume dropped in quarter 1 due to the lockdown. Within vehicle categories, commercial vehicles were affected the most, While passenger vehicles did reasonably well, the tractors and construction equipment had continued good traction throughout the pandemic period. The dealerships started opening up from June and are already seeing pickup in the demand. On the ground inquiries and discussions with manufacturers indicate that volumes are recovering. All the vehicle categories other than the MSCV should see dispersing getting back to pre COVID levels in this month itself. MSCV disbursements are likely to come back by the festive season later this quarter. Quarter 1 as such is a seasonally weak quarter, and we expect part of the loss growth to be recouped in the rest of the year. With focus on collections and lower disbursements, the overall loan book grew by 3% Y o Y. Collections slowed down in the month of May, but rebounded nicely to 97% in June. The collections were supported by higher economic activity and unlocking compared to the 1st lockdown. Our portfolio continues to perform better than the industry as shown by the credit bureau disclosure. Fresh restructuring was implemented on INR 650 crores of the portfolio, which was much lower than the restructuring of INR 2,450 crores due to the 1st wave. The request for restructuring has started falling And SaaS restructuring in the 2nd quarter should be comfortably lower than what we saw in the 1st quarter. Of the total restructuring, overall around 80% has come from the MSCV and 3 wheeler segments. As mentioned earlier in the As mentioned earlier, the contact incentive segments such as luxury buses and auto rickshaws require support in this one off crisis. Balance 20% is spread across all vehicle categories. Vehicle Finance has long vintage and strong collaterals, which should keep slippages from restructured book range bound and credit losses even lower than that, for which adequate contingent provisions are in place. As freight availability continues to improve every month, we expect collections and delinquencies to normalize by September, paving the way for fresh vehicle demand. The fuel price increase does put pressure on the freight earnings in the short term. The industry has always worked on a cost plus margin and was able to pass on the increase in the input costs. Microfinance. Bharat Financial has maintained industry leading performance. The second wave so far has been no different. We continue to work closely with our customers to ensure they normalize their financial incomes. Rural areas of the country did see higher COVID spread in the 2nd wave. However, there was a marked change in the lockdown approach. State governments across the country kept a minimum 4 to 6 hours open window every day for residential services and growth movement, which provided necessary support to our customers. Within Bharat Finance, we have vaccinated over 80% of the employee base with minimum one shot and expect full vaccination in the next few months. This should help us navigate the subsequent developments of COVID with much more comfort. Better accessibility, higher activity levels Working closely with our customers ensured stable collections in spite of the wide lockdown in May and intermittent lockdowns in June. Our collection efficiency as of June has been 89%. The collection has improved further in July so far to mid-90s. The slippages during the quarter were INR674 crores or 2.6 percent of the portfolio due to accessibility issues during the early parts of the quarter. As the accessibility and the collections improved, we saw customers clearing upgrades of INR443 crores or 1.7 percent of loans. The slippages thus net of upgrades were INR232 crores or 0.9% of the loans or 1. We have conservatively fully provided for the NPS. Apart from this 0.9% net slippage customer apart from this 0.9% net slippage, customers with INR 500 crores of portfolio or 2% of the book have invoked restructuring during the quarter and we see implementation happening in quarter 2, which is how COVID plans out. We have done negligible restructuring in the 1st wave due to availability of moratorium. Amongst the key state collections in Bihar, Odisha and Maharashtra were above the average, while Kerala, Karnataka and West Bengal are coming up with a lag. We have also maintained traction on our new initiatives. We scaled up Bharat Money stores from 51,000 to 75,000 during the quarter. These stores provide financial transaction points at a walking distance within the village where we have presence. We have also scaled up merchant acquisition to 200,000 merchants from 170,000 merchants last quarter. With focus on collections continuing in parallel, we are cautiously looking at scaling up new customer acquisition. The credit demand in rural India remains strong. We are sourcing fresh customers in district where collection efficiencies are strong. We remain watchful and expect to reach 50% to 75% of the normal acquisition run rate in quarter 2. The month of July has seen better disbursement and collection both compared to June. Other retail assets, This contributes to 17% of the overall loan book and includes secured and unsecured retail assets. The Book performed significantly better in the 2nd wave, validating our tweaks in the credit underwriting. Slippages in the unsecured loan were at 2 8% as against around 8% in the 1st wave. Slippages from the secured loans were at 1.4%. The overall slippages from this segment were at thus around 2% of the loan book. Incremental restructuring in this book was immaterial. The collections have maintained good momentum and June collection was around 95%. In credit cards, spends rebounded after a small dip in May. The spend June spend at INR1838 crores, in fact, 2nd highest in our history. We have tightened our origination criteria and this has reflected in delinquency being less than half of what we had in the first wave. We have gained market share by number of credit card customers during the quarter. We see the traction continuing and don't see any impact due to the recent RBI actions on payment of network providers. On the secured assets like loan against property and business banking, We have been cautious as the SME segment was subject to external shocks and with limited balance sheet strength. We are now comfortable picking up selectively and utilizing the DST information and credit behavior during the COVID period. We expect this segment to start now start growing each quarter after being stagnant for the past few quarters. Corporate Bank. The Corporate Bank has started growing again and with an underwriting realignment and sell down of the large loans reaching completion. Our large corporate book grew for the first time, showing 2% quarter on quarter growth after being on the rundown since I took over. The quality metrics in the terms of improving rating profile, shorter duration and granular exposure continue to drive our underwriting. Average rating profile of the corporate book has improved from 2.68 from 2.92 YOY, which is equivalent to A rating. This is also reflected in the lower capital consumption. Our corporate fee too has started growing again after realignment towards the annuity Base fees. Transaction banking and trade driven fees contribute more than the 2 thirds of the corporate fees. Investment Banking fees are moving towards pure advisory rather than balance sheet driven. We are fortifying our product offering in advisory space through talent acquisition and partnership with the ecosystem. Investment Banking fee for the quarter was at INR 67 crores. Slippages during the quarter were INR 4.21 crores. This included 1 real estate account of INR 270 crores. I had mentioned in the previous analyst call, there is a resolution under progress and we expect full recovery in the current quarter. Slippages outside this were small and spread across multiple accounts. In quarter 3, we had highlighted restructuring of INR 2,200 crores, which was invoked and under implementation. Of this restructuring, RUB 6.54 crores was completed as of March 2021. We completed additional INR 11.22 crores during the quarter. That completes restructuring on the corporate side as The deadline was June 30. This backlog of restructuring contributed bulk of the increase in the restructuring during the quarter. We are very comfortable with the corporate restructured book given the resolution underway, and we expect very limited flows from restructuring to NPA. The corporate banking franchise has responded well towards the realignment and now has started the growth journey. The bank has all the key ingredients In terms of quality of talent and products, Mercury relationship, along with surplus liquidity, to drive agenda of growth at reasonable risk. We have also enriched our corporate mobile app to enable our corporate clients to transact seamlessly and conveniently. Through the app, Our clients get one of the best trade services, including status and regularization of outstanding import and export transaction, Initiate local and cross border payments and we will approve their stock statements. We now offer our corporate clients a full capability of digital stack for account win and transaction initiation. Gems and Jewelry. This part of my commentary has not changed since I took over and continues to be so in this quarter as well. The book grew 4% quarter on quarter and there are no NPAs restructuring in this book. The diamond demand from the U. S. And China has been buoyant with opening up of retail stores and we see momentum coming back in other key markets as well. This has picked up in the working cycle utilization and driving 4% quarter on quarter growth. We do recognize in the long term that competition for diamonds will be from the change in customers' spending habits. This is already reflected by the global credit demand from the diamond segment today at half of what it was 10 years back. Our approach in Diamond is to finance working capital for generations of pedigree manufacturers. This is not a long term project finance business requiring visibility over the next 20, 30 years of demand. If demand weakens Any year, our portfolio is rundown automatically with hardly any asset quality implications. Our growth aspirations are in line with the global demand Diamond Growth Outlook. Overall, on the asset side, slippages and restructuring have been lower than the first wave, and we expect this to remain this way unless the pandemic returns. The collection efficiency continues to improve every week. The vaccination drives on the country in general and our employees in particular should reduce intensity of subsequent waves. Last sections of our portfolio has already resumed growth journey and notably in Secured Retail, Microfinance, Corporate and Segments of Vehicle Finance. MFCV segment should also come back within the festive season. We have lost couple of months growth, and a part of this should get recouped during the rest of the year. We, as such, Don't expect any material changes to our PCFi growth ambition as stated earlier. Now coming to liabilities. We have been relentlessly focused on retail deposit mobilization and saw continued traction in quarter 1. Deposit grew 26% year on year, driven by 33% year on year growth in current and savings account. Almost entire growth in deposits came from retail deposits as per LCR growing from 57% y o y and 10% quarter on Quarter. With strong deposit flows ahead of loan growth, our CD ratio improved to 79% from 83% quarter on Certificate of deposit are maintained below 3% of overall deposits. Our cost of deposit at 4.97% saw a reduction of 6 basis points during the quarter and 108 basis points cumulatively since I took over. We have cut our savings account and fixed deposit rates by 50 basis points and should further support improvement in the cost of deposits. Our affluent business continued strong performance. Our deposits from this segment grew 7% quarter on quarter to INR 33,400 crores. The business also achieved a fee of INR 70 crores despite the lockdowns. Our NRI business grew to INR 27,500 crores, up 7% quarter on quarter and 40% year on year. Our market share has improved to 2.52%. Our growth was achieved despite there were no NRI homecomings this year due to pandemic. We have maintained our overall average LCR at 143% and are running surplus cash balances and excess investments of over INR 50,000 to INR 4,000 crores. With this significant liquidity, We must let go borrowings, which are down 17% year on year and 4% quarter on quarter. The borrowing mix has improved towards long duration sources with finer pricing. Overall, on the liability side, we continue to scale up our retail deposit base along with the reducing our cost of deposits. Share of retail deposits as per LCR has improved to 40% from 31% during the year. We remain Confident of taking this into in high 40s as per our PC V ambition. Digital traction. Our digital sourcing mix remains strong across products, Including 96% for savings accounts, 93% for fixed deposit and 90% for insurance and investment business and nearly 50% of personal loans and credit cards are originated digitally. Digital transaction mix has improved to 92% from 86% a year ago. Nearly 2 third of our service requests are now processed digitally straight through. During this quarter, we refreshed Indus mobile app with cleaner interface and response time improvements. The new app has been appreciated by clients And 85% of the users who tried the new app have been rated have rated it 5 star on the App Store. As a result, bank overall Mobile app rating has improved to 4.0. The mobile app user base has increased by 37% and transactions by more than double year on year. As mentioned earlier, we progressed our agenda on Digital 2.0 with the first of the launches through Indus EasyCredit. This offers an end to end digital journey for instant personal loans and credit cards. This is a microservices based cloud native API stack, which can be leveraged across sourcing channels. The entire process from sourcing, underwriting, KYC and happens in real time in a matter of few minutes. The cost of processing as a consequence per application is expected to reduce by 85% to 90%. The microservice based fabric gives us the agility to integrate ourselves with partners and ecosystem, plus with each making it ready for Open Banking and API Banking. We expect to achieve the next milestone under Digital Point 20 with the launch of India's merchant solutions stack. This will be a digital first proposition for small merchants and retailers. It is a unified stack for small returns bringing all the payment, lending and banking needs under a single umbrella. Indus Bank regards data as a critical business source and we are continuously working to harness, augment and organize data using advanced data We have invested significantly in our data warehousing and analytical capability to drive both greater User engagement as well as to drive decision making in terms of identification of fraud, enabling real time underwriting and driving contextual personalized engagement and campaigns. This is helping us to drive customer transactions, relationship value, Traction and digital with digital partners as well as optimized risk cost. Overall, as mentioned earlier, we are working on 5 key digital initiative for this year and should augment our growth journey. Before I go to the financial performance, I'd like to spend a minute on sustainability. Our planning cycle 5 strategy revolves around improving sustainability of the organization. While Traction on financial metrics is well covered. We have also progressed on the non financial effects. Broad areas That stand out in terms of our commitment to sustainability, our focus on sustainable finance commitment and sustainable operations. In sustainable finance commitment, around 42% of the bank's total lending book today constitutes as sustainable finance. This includes Climate, Green Finance and Social Finance supporting livelihoods, health care, education, etcetera. We are committed to increasing capital allocation here and to reach this to 45% by 2023. This also goes through external assurance certificates provided by Big 4 audit firms. We have robust environment and social risk management system, which assesses the ESG risk in all corporate lending proposals. This also outlines a negative ESG lift, which we will not finance. All medium and high risk ESG risk lending proposals require an ESG committee approval. Regarding sustainable operations, the bank has committed to reduce its carbon footprint by 50% by financial year 2025 over the baseline of financial year 2020. The bank has already during financial 2021 reduced its intensity carbon emissions by 23% over the baseline emission of financial year 2020. Bank has committed to be to empanelment of only ESG compliant vendors. In existing vendors today, around 45% are compliant, and we are targeting 80% compliance. For a more inclusive organization and a diverse workforce, We're increasing women participation in the workforce from 18% to 22% and laying out several HR initiatives to increase Encourage and support women at work. We have 3 green buildings already and have committed to all our pioneer branches will become green and plastic free. As a result of these efforts, we are the only Indian bank to be included in the S and P DJSI Sustainability Yearbook for 2021. The yearbook showcases select organizations who have progressed well on sustainability aspects. It includes 21 Indian companies We are the only Indian bank amongst them. IndusInd Bank was also ranked 57th out of 9 14 Global Banking Services Companies assessed by Refinitiv ASG rankings. The bank was rated 78 over 100 by Refinitiv ASG ratings for excellent ASG performance, Commitment, effectiveness and high degree of transparency in reporting material ESG data publicly. IBL has also received the highest score among top Indian banks by market cap. For the 6th consecutive year, the bank retained its top position in carbon disclosure project by securing highest Band A and being the only bank in India in the Band A rankings. Now coming to the financial performance for the quarter. Quarter 4 witnessed a steady operating performance with NII up 8% year on year and operating profits at 3,185 pro, was up 9% year on year. Our PPOP over loans was maintained at 6% in our top operating environment. Our yield on advances was stable during the quarter. However, yield on assets fell by 8 basis points due to higher surplus liquidity. Our cost of funds were stable at quarter on quarter. As a result, our NIM for the quarter was at 4.06%. We carried incremental INR112,000 crores of liquidity over the previous quarter, which impacted the NIMs. Other income grew by 18% year on year. Client fees were lower as expected in a seasonally weak Q1 and also due to the pandemic. Strong treasury income of INR575 crores against INR273 crores in the previous quarter absorbed this one off impact on client fees. We contain the operating costs, which were down by 1% quarter on quarter. Our cost to income ratio improved slightly to 40.5%. Now coming to provisions and some quality asset quality indicators. We continue to follow conservative provisioning approach. Our provisions for the quarter were at INR 1844 crores. We have conservatively fully provided for the unsecured microfinance loans. Our GNP increased marginally to 2.88% from 2.67% last quarter and net NPA was at 0.84%. We have maintained strong PCR at 72% After factoring in slippages from the 2nd wave, we have around INR 2,050 crores or 1% of the loans as surplus COVID provisions now counted in Total loan related provisions are at 3.6% of loans or 123% of loss NPA. Our pack continues to show a strong upward momentum, growing 10% quarter on quarter. Even though we have made provisions conservatively, profits for the quarter were at INR 10.16 crores. Our CRAR improved grew 17.57 percent from 17.38 percent with lower risk intensity quarter on quarter. Overall, I believe we are getting comfortable on liabilities each quarter. We expect deposit momentum to continue with focus on reducing cost of deposits while maintaining the retail acquisition run rate. On the asset side, we have seen areas of domain expertise continuing outperformance in a tough environment. The corporate asset quality has held up well with changes in the underwriting policy. We expect the collections to return to normalcy by September and Incremental restructuring to be range bound. Most of our asset classes have already seen signs of growth, and we will back ourselves to achieve the PC5 Growth ambition as economy recovers. We have been upfront in taking provisions and expect these to downtrend unless COVID resurfaces. The strength of our operating profit should now start reflecting in earnings and ROE. With this, we can start the question and answer. Thank you very much. We will now begin the question and answer session. Participants are requested to use handsets while asking a question. Ladies and gentlemen, The first question is from the line of Suresh Ganapati from Macquarie. Please go ahead. Yes. Suman, just three quick questions. One is on this deposit growth and loan growth gap. So deposit growth is running at 25%, 26% and loan book is at 7% in QoQ. We have seen a decline also in loan book. Of course, I understand it's COVID second wave impact and stuff. But at some point in time, this gap needs to be corrected and because you're now also running excess liquidity, Can we see, say, over the next 18 months deposit growth coming down and loan growth really picking up so that we have a more, what I would say, steady state balance sheet? Yes, Suresh, absolutely a valid question. And we are also now seeing deposit growth coming. We have reduced our rate from deposit by 50 basis points in savings account and about 50 basis points in term deposit. And now we are as competitive as any other bank. Of course, we're not at 3.5% On a policy, we are at 4%, so we will also get there. Number 2, I think if you look at our portfolio, Taresh, We have 49% of our portfolio in businesses like Equal Finance, Microfinance and Diamond. While Diamond has done well and grown 4% quarter on quarter and it will grow at 16% to 18% year on year, I think The microfinance business, we were very cautious in the quarter 1 because of the weather and we were focused on collections. I believe the demand is there and we have Already seeing growth in that area coming up this quarter. And but we are focused on existing customers and we will be at 50% to 75% of our normal acquisition run rate in B2 Bank clients right now. On the vehicle finance book, I think we started Seeing the growth in June, I think the April and May were very bad. And of course, June also had intermittent dropdowns. I think in July, Except for 1 or 2 states, I think the business has started coming up except in MSCV, and you will see us getting back to the run rate, which we had already delivered. I think so that's on the business. I think on the Corporate Bank side, I think we are seeing growth. I think We will grow maybe a little bit higher than the industry, but we are seeing growth coming back. And on the SME and the MSME side, we were cautious, but I think we've now Accelerated now with the COVID playing out and the credit bureaus data updated, I think this is time for growth and we will see growth. Overall, We still feel that we will continue to do we will continue to be at 16% to 18% CAGR, and we are not taking our Our foot out of the pedal, I think we will continue to deliver a 16% to 18% CAGR over the next 2 years and We are committed to that growth. Also our CD ratio will be around 85% to 90%. Okay. So all that should help margins. Okay. The second question or rather the last question is, what your credit cost is For this quarter, for example, the way we calculate is around 3.5%. And your ROA has been around 1.1% For this particular quarter on an annualized basis, we are talking about. So what do you think would be the longer term sustainable credit cost once all this COVID thing normalizes and you reach a very Then he said, where do you think both credit cost as well as ROA is heading for you guys? Suresh, you must see what we have done. And I think this is very important. I thought it is better to upfront provisions and I took INR 450 crores of additional provisions. And I did not use any earlier provisions And I kept the provisions ongoing and we maintained a provision of INR 2,050 crores. I continue to believe that, that will help us in the long run. And I think that If you look at our credit cost last year, which was 3.7%, Suresh, 2% were BAU cost And the balance 1.7 was the one off cost, which I'd be able to take. We are deferred taking that. In my view, I think we should be less than 2% credit cost and I continue to believe a normalized run rate Sales cost should be 160 basis points to 190 basis points with the type of provisions which we carry. And I think that is where we should settle down Plusminus5 basis points or 10 basis points here or there, but I think we should be and that is the stable credit cost for the bank. And I think we should be in the ROA upwards of 1.6 if we have to be a bank to be reckoned with 1.6% to 1.7% in my opinion. Your ROA is going to be 2.1%. Hope you've done the math. You're going to have the best ROA in this sector. So therefore Yes, but I don't think our credit cost can be more than that. Okay. Yes. Thank you. Thank you. The next question is from the line of Kunal Shah from ICICI Securities. Please go Yes, sure. Thanks for taking my question. So on overall, when we look at it, this balance uptake that has been quite Strong also, even on a sequential basis. How much would that be in terms of the average balances if you have to look at it because The PaaS is there is never a disconnect between the average and the ENR. There is never. It's maybe INR 1,000 or INR 15 100 crores a year or There is never a difference on the power balance because it's not made up of bulky deposits now anymore. What we had, we've lost it already. So please understand, Hassan, our balances are that is why the LCR will show a movement. Otherwise, my LCR will not show a movement. Yes. I answered your question. Yes. Yes, yes, yes, sure. Yes, got that. And secondly, in terms of the Fee income, so if you have to look at it in terms of the overall disbursements, as you were highlighting in April and May, it would have been slow. Would it be fair to assume that the retail disbursements would have been down by almost like 35% to 50% odd on a sequential basis? Or how would that be if I have to look at it, I think? It is not the right way to look at it. If I look at it, you have to go business by business. And I think that is where you should see the disbursements. So I think if you look at the disbursement, I think we had On the CFD, which is the vehicle finance, about a 45% decline in disbursements. If you look at MFI, we had about a 40% decline in disbursements. I think if you look at our, what we call, retail, I think our disbursements declined by almost 35% to 40% during that time. Yes, sure. So just coming to this question in terms of the strength of the fee income, I think the way we have been highlighting that it's quite granular and very broad based. So when we look at the sequential decline that is still like 20%, 22% across most of the line items when we see be it in terms of the loan Okay, one trade is holding on. So do we see that, okay, overall in terms of the fee, now it should be relatively better than the balance sheet growth? So right now, yes. I think at some point, I'll tell you the to get a if you press the pedal on the microfinance, the fee is only 60 basis points to 1 100 basis points. If you press up accelerator on lap, which we are not growing, I think it's about 60 basis points to 100. So I think loan fee may not grow, but our ambition has always been that the fee growth will exceed the loan growth always. And if you look at our fee, consumer banking fee constitutes to about 48% to 49% of our fee, about 21% comes from corporate banking and another 31 comes from trading. I think that mix will have to change towards 52% coming from consumer banking. Around 2021 to 2022, corporate will remain between 2021 2022 and trading income will go down as you see sequentially in quarters to about 22% to 23%. So I think it's much more granular. It's much more now and here transaction based, and I think that's the fee which we like. So fee growth, to answer your question, fee growth should ideally be greater than the asset growth. Sure. And one last question in terms of the data point. So if I heard you right, you said 2.8% Slippage is in the credit card or unsecured portfolio. So this is the as the growth because when I look at the increase in the credit We got a GNPL. That itself is 2.8%, maybe that would be after the write offs and all. No, no. You haven't paid to get No, no. What you have to look, Kunal, and you're right, I think we have cards was clear. So you have to take both the books. And we have not written off anything in card. So the overall portfolio, the slippages are at 2.8 between card and PL. You have to take CL into account, yes. Sure, sure. So this $2,300 I understand $600,000 is MFI. And how would be the further breakup of sorry, if I have to look at it in terms of $2,300 in retail, what would be the breakup of that? On the RMB1500? Retail slippages. Oh, okay. So you have You mentioned the MFI. No, no, no. We have INR 2,762 crores Of slippages, INR 2342 crores in retail slippages. I think the way to look at retail slippages are as follows: INR 10.60 crores in vehicle finance, MFI is INR 6.74 crores, unsecured retail is INR 248 crores And secured returns including MSME INR359 crores. Okay, perfect. This is great. Yes, thanks a lot. Thanks, Suraj. Yes. Thank you. The next question is from the line of Prakar Agrawal from EDWISE. Please go ahead. Yes. So just a couple of questions. 1st on the write offs Sorry to interrupt you. May I request you to speak a little louder? Is it better? Yes, correct. Yes. So just in terms of write offs, if I were to look at write offs, which segment It's coming from so we have mentioned that for the credit card we have not written off anything. Is it No, no. Let me tell you what we have written off. So I think we have written off INR 938 crores, out of which CFD, which is Decal Finance is about INR 3.84 crores, secured retail is INR 130 crores, unsecured retail is INR 135, Microfinance is INR 100 crores and Corporate is INR 188 crores. Okay, perfect. In terms of secondly, in terms of microfinance, if you could just tell me what is the power book and power book and how is the movement doing in power book? So let me tell you, I think I can only tell you certain data and I think it's not fair for me to give you I think we have evaluated our book completely and our CRO went and did the full evaluation of the book right now. I think we have INR 500 crores in restructuring as of now. And if you look at, I think you will see a normalized flow going forward after the restructuring happens In the book and I think it will get into the normalization phase unless and until We get the unless and until we get the 3rd COVID wave coming out. I think as long as the accessibility is there, most of our customers are paying customers and we do not expect Any subsequent losses, which are as an outlier in the industry. I think what may happen Yes, there may be some flow through in from the 90 plus which is there, which is also not very high as of now. Yes, the X plus and the 30 plus book It's a little bit high because people out there only pay 1 or 2 installments at a time. They cannot pay 10 to 12 So the 30 book gets skewed over a period of time, and that's not a number we disclosed, but it's a book which is I can give you the comfort that the 60 plus book is well within what we want to achieve. So as for a leading bureau, I think If you look at our and it's in the investor presentation, and I think as of May 21, if 100 is the index, We are at 30 DPD, 43 percent of that index in 60 DPD, 36 percent of that index and In 90 DPD, 31 percent or 31 basis points of that index. So if you just look at it and these are Disclosures which we've given in the investor presentation, which is as per the credit bureau data. So that's what that credit bureau is as of May, how is the thing moving June July? So it's much better. In fact, June has been much better and July is much better. So I told you our collection efficiency on microfinance is 89%, has moved to mid-90s now. And there were 3 states which were actually affecting us. And these were states like Kerala, West Bengal and Visting, Karnataka. And where I think 24% of our book was there And we had a collection efficiency of around 83% to 84% there. Overall, we are at 89%. As you take out this space, Our collection efficiency was 92% to 93%. Perfect. Just one last question in terms of Your understanding also what we have been hearing is that probably the performance or the rebound in this order book has been relatively better off across the board. How is your sense in terms of dealing with them? And second is in terms of your PCLDS. Are you seeing some pressure points or probably you don't expect Anything material out of ECS, yes, even though it is a smaller number. On ECS, yes, I told you that we've done a very small book of INR 4,640 Yes, which we have and the outstanding is 4,402. We have not seen any red alert which have come from the CLGS, I just saw about INR 20 crores or INR 25 crores, which were in the SMA I or SMA II bucket. I don't remember that. But that is all what I saw On the CLJ's book as of now, I have not seen anything. I don't know, Ramu, would you like to comment? I have not seen anything. Yes. I think there is a moratorium of 12 months That would also come into play. So quarter 2 to quarter 3, but we have not seen any trends on the operating main account, only 20% is GEC 80%. So those are not split. However, the SME would have been higher. So we're closely tracking them. We'll see the quarter 1, quarter 3 when we see it. So On the main account, it's performing well, and we are not seeing any such threats coming out on the main account right now. That's what Ramu is saying. I hope you heard I didn't understand your first question, if you can just repeat that. I'm sorry. I was just asking you about Your outlook on MS and E. So when we started with this cycle, probably there was a lot of concerns on MS and E part of the book, Wherein what other banks of order flow will be highlighting that performance has been relatively better than what they initially anticipated. How has our experience So let me tell you, unsecured book on MSME, not advisable to do. Let me be very open and candid about it. I think the secured lending, you will see the commercial vehicle segment, you will see our business banking segment, You will see our lap. I think we are doing very, very well in all these three segments. And I think that part of the book is performing. Wherever it's secured, We are doing well. In our business, we have a very, very INR 400 crores or INR 500 crores of portfolio in the BBG segment, In the Clean Business Loan segment, we've never grown that book. It has not done well. Perfect. But just one last data switching point. If I look at your presentation, so these are small corporates that's going at 4,000 odd per road. Last quarter, it was on the Q1, so is there any reclassification or what has caused such a decline in that Prakhar, there was some issue in reporting last quarter. We had got corrected it later on. The year on year numbers are comparable. If you check the last year same quarter, which became the same. There was an issue last quarter. Okay, got it. Thank you so much. Thank you so much, sir. Thank you. The next question is from the line of Gaurav Kochar from Miraset. Please go ahead. Yes, thank you. Good evening, everyone. One data keeping question to start with, what was the NII reversal for this quarter? NII reversal. We'll get back. I don't have that number right now. I'll get back to you, Gaurav. I don't have that number right now. Okay. The next question is on the recoveries and upgrades. So I mean on the upgrade line, I can see some INR 6.27 crores plus INR 2.18 crores, so roughly INR 8.45 crores. Are these the loans that are restructured and hence upgraded or No, no, no, no. Restructured is different from upgrade. So out of this, a large part of upgrade came from the microfinance industry where I think what happened, the client we were not able to access the client at all in April May, mid April to May, and we have weekly installments. So the 5 installments when it becomes new, it goes into the NPA bucket, yes, and it actually went into the NPA bucket. So that is where it happened. Okay. Okay. So these are pure upgrades and not restructures? No, no, no, no. Not at all. Restructures, you cannot move it as an upgrade. How will you saw it as an upgrade? I'm not able to understand. We have not We've not we've shown NPA as NPA have restructured and restructured. Okay, sure. And on the I mean, the INR 5.43 crores in the consumer side, which segment did it come from largely? Okay. So I'll tell you, CFD contributed 20 Sorry, recovery? No, it's largely because of the sale to ARC of 4. So I'll tell you what happened. There's a sale to ARC of INR 400 crores and INR 13.89 crores of Recovery. So that's the number. Sale to ARP is actually INR 3.64 crores and recovery has come across the board smaller amount and MFI was INR 79 crores. Sales to ARC was INR235 crores in CFD and secured retail was INR 100 crores to INR 110 crores. Okay, okay, got it. Thanks. And sir, on this recoveries and upgrades, how confident are you on slippages for this quarter? How confident are you that you'll be able to recover this in the next few quarters? So if you look at on commercial vehicle, my strength comes from What I'm seeing of the data, the client slipped into N90 plus DPD. I he does not want the restructuring. He wants to pay the installment. More than 25% of the book already is less than 60 DPD, but it cannot pay all the installments right now. So I think on vehicle finance, we are very, very comfortable. On MFI, we've seen recoveries as and when Kerala and Karnataka is opening up. So we will see recoveries this quarter on this. On the card, we pressed the accelerator. We've seen recoveries and it will start coming up. I think Last, we are collateralized. So I think it takes time for the recovery to happen because the first phase notice takes about, say, 12 to 18 months for it to get resolved. So I think we will start seeing recoveries very soon. In my opinion, I think next 2 to 3 quarters, we will have A substantial portion of recovery coming up. Sure. That's helpful. And any full year guidance for FY 2022, will it be lower than 2021? Is it fair to assume that or will it be on similar lines? See, I can't give guidance, Gaurav. That's not my not correct. I think on the portfolio guide, if you look at it, it's the COVID 3 waves does not come through. We are well provided And we believe that our clients and we will get back to normalcy very, very soon if our collection starts happening. And I think the month of July is a testimony of an open month and a successful month where if the city is open and if the district are open, we're able to do The issue is that the trucks don't fly on the road or buses don't fly on the road. There is no way the client can give you the money. It's because The guy survives on every day tariff. So I think that's the issue which we face. Exactly the same in MFI. On TARs and PL, I think the collections are already coming back and I see normalcy coming back very, very soon on that. We've already In COVID-two, we're much better. I think it will only improve as we go forward. Sure. Sure. And so last question, on the telecom exposure, what is the total provision that we have made? And do we intend to make more provisions on that account? See, you have to look at, 1st of all, the telecom exposure is still under discussion. Having said that, I think that we have followed a very conservative policy all the time. If you look at our COVID provisions and you call it COVID, you call it contingent, is INR 2,050 crores. Even if I take the worst case scenario today, I have an excess provision, which I'm carrying forward in that book. And I think In addition, I have INR150 crores of extra telecom provision, which I provided. We will see how this provision carry goes off and we will continue to create more conservative provisions if required. I do not expect that We will need provisions in the funded exposure side, not in the non funded side as of now. And I think I'm saying on behalf of the Reliance Telecom exposure and what I've seen of it, I think we would be very safe within our provision framework to manage that Pooja, within the within what we have created and we will create going forward smaller amounts, not this large amount, but smaller amount. We should be able to manage it. That's all I can tell you. Okay. Got it. Got it. And sir, just one more data keeping question. On the restructured book, Have we disclosed any separate provisions that will remain on the restructure book or it's part of the INR 2,050 crores? It is part of the INR 2,050 provisions always. Okay, got it. Thanks a lot, sir, and all the best. Thank you. The next question is from the line of Adarsh from CLSA. Please go ahead. Yes. For one data driven question, can you just break out the existing Restructured book at its time today? Yes, Bhushan. Hi, Darsh. Yes. So if you look at the total restructured book, It's INR 5,650 crores. Within that CFD is around INR 3,100 crores. Secured retail is around INR 3.30 crores. Unsecured retail is around INR 380 crores, MFI is INR 70 crores and balance is corporate. So more than INR 5,000 crores of our restructuring is between corporate, which we you know the 2 accounts or the 3 accounts we've told you all Already and $3,089 is the restructured book on the CFD where we are very, very comfortable. Got it. So So Manav, when I think about the book, right, and while we had some slippages in CDs and MFI, It's better than some of the NBFCs. When you look at the overdue buckets that we've had, Do you get a sense that if the trend that you are seeing in July that continues in August September in terms of collections, Should you get closer to normalized slippages in 2Q or because there are higher SMA 1, 2 buckets, You'll probably see a normalization only in the second half. See, depends on business. I think if you look at vehicle finance, I think With the type of stress these people have gone through, I think you will see a major part of normalization In quarter 2, but it can extend in certain segments like MSCV or tourist buses into quarter 3. So part of it may a sub segment of MSCV may get into quarter 3 and quarter 4 because I think tourist buses will take time to come back or 3 dealer segment, which is a very different segment, May take time till quarter 3 or quarter 4. They have to see a normalcy period before they start paying that because they work on their daily orders to a large extent And that has to take some time to come back. That's number 1. On the MFI side, I think we are we have already said that There is a portion of the book which is there. I think it will come to a normalized run rate now, but I think there will be a restructuring of about INR 500 crores to INR 600 crores which will happen. And post that the normalized hand rigs will start happening. Restructuring on MFI, we will take 70% to 80% provision. We are not going to keep On a restructuring, a very less provision, we will take it and keep it aside. So I think that's what we will have to do. And I think that's already induced and that will come In the restructuring and so that's what it is. On the credit card as well as on that and off, I see the normal flows happening now going forward. And in fact, you should start seeing recovery as a consequence of that, sir. Okay. And my last question, Sumant, is on Margins, right? You didn't mention that Saia and term costs have gone down or you cut it down by 50 bps. Does that broadly allow you to get down to less risky segments and how the mix would be or some of it would accrete to margins as we go along? I think we've always said our margin, our net interest margin will be around 4.15 4.25. I continue to maintain that we will not exceed 4.25 because we have a corporate book, which we want to grow and want to balance our corporate book with the retail book. I can increase my margins to whatever. I think we've been consistently saying that we want to maintain our book at 4.15 to 4.25. That's number 1. Number 2, I think the cost of deposit is also a message which is being sent that the bank is now highly liquid And its ability to attract retail deposits have increased. And I think we are now in a stable environment on the granularization of liabilities. I think it does not always translate into profitability. And I think profitability is a measure of a lot of things, how your portfolios are built up, how do you want to balance your portfolio. And I think we will continue like I said before, I think we must continue to maintain a 6 PPOP of 6%, 5.8% to 7% we've always said greater than 5%, but we are at 6% right now. Our credit cost should get range bound at certain point to 160 basis points to 190 basis points. The bank should not have this type of business should not have a credit cost of more than 100 60 basis points to 190 basis points. And that is why we I'm very comfortable with the provisions, which I'm holding And I'm very comfortable in what I'm saying as a consequence. Don't please extrapolate the current credit cost into the 4 quarters because that's a wrong way to do it. Yes, Things can change if there is a COVID-three wave or the economy goes down to a large extent and that may not happen. The next question is from the line of Shagun Varma from Goldman Sachs. Please go ahead. Yes. Hi, good evening, everyone. This is Rahul here. Saman, just a few questions. This question has been asked in different ways, and I'm going to ask it my way on the CV side. How much stress has been recognized, CE plus E plus segment that you're operating? You tried to answer in the previous question also. But just trying to think about a lot of slippages have been recognized in the last 15 quarters. Some segments have still not really come back in the last 6 months or so. So how much stress It has been recognized how much more could we see absent of the 3rd wave? Yes. So I have There is no better person than Partha who will tell you this. Partha, would you like to on the CV segment, do you think there are More stress to follow and or the CV segment and specifically on the diesel segment, you can give a story. Rahul, this is Parfasat working now. Hi, Rahul. Unless the 3rd wave really impacts as big as 1st or the second way more particularly the second way, I think the worst for CVZO except for only one segment, The passenger segment passenger vehicle segment alone, especially in the long haul, The interstate buses and other things, which used to be the best of segment best of commercial vehicle Regmin is undergoing I mean, virtually, there has been no movement for the past 1 year. We I I'm really keeping my fingers crossed how long it will continue. It might take another 3 months. It might take even longer. Look, it could even if the government gives permission for them to Right. People may not people may be very reluctant to sit next to each other for some time. Yes. So for that, I don't think there is any issue. That portfolio by itself is about close to what Anywhere about 5% of my total overall portfolio, which has been restructured. And There has been a substantial portion of them. They have been paying despite the fact that they have not been earning. These persons have deeper pockets. Except for this particular segment, I do not see Any other segment getting affected in the longer term or the medium term? I would rather if we Across this quarter, the same day as July, from next quarter onwards, I think There will be a complete reversal of whatever has happened so far. Thanks, Pasha. Just one more small follow-up. What's happening to the retail value of these passenger segment, transportation segment? Resale value is very, very difficult to mention, Rahul, primarily because, a, There are people have not surrendered nor The courts are allowing us to repossess. It is in today's context, there's not much of vehicles which are available. No new vehicles which are sold in this particular segment. Therefore, I do not see foresee any And this is a specific trade in which a person will get some other person will come and then take over. It will be more of a loan takeover rather than vehicle sale in this particular category, I suppose. Today, it is too premature for us to gauge what should be what would be the resale. Things will start forming up only by September. Understood. Understood. Got it. Just since here on CDs, whatever we know in terms of the backdrop, economic backdrop, etcetera, What do you think and of course, this segment doesn't really see any meaningful uptake on the new CV side. When do you think would be realistic for us to You can think about some revival of CDs, government's infrastructure capital program has been continuing, but do you think that's going to be helpful? And on the other side, dedicated So I'm just trying to understand over the next 12 to 18 months or so, how do we think about the series cycles in terms of the volume? This particular question probably requires a very long answer, but we will speak sometime later, Rahul. But Having said so, I'll give you a bird's eye view of whatever. See, in CB segment, we cannot paint everything in the same brush. In the sense that So Tipper segment is doing extremely well. Therefore, there is a huge amount of pent up demand. Goods in particular have also been there are certain segments in the goods segment, which are doing fairly well. The excess capacity in the segment has been long drawn and it has been there for quite long. Therefore, The market has pent up I mean, there is a certain amount of pent up demand. There is it is What is slowing down is the COVID effect. As soon as the COVID effects pales out, I think Reasonably, I would say that from the quarter starting October, you will see Uptics, January quarter should be fairly good. On the next year, according to me, Should be extremely good year for the commercial vehicle industry. Got it. Thanks, Pavanar. Just two more questions to Sumant and Vadim. Sumant, you've done a good job, Bank has done a good job on the liability side. Our LCR It has improved significantly. You started cutting rates, etcetera. Now, of course, the market is what it is. But when you think about the market Volume will, of course, grow at whatever rate. But how should we think about the market share gain across different retail products over the next couple of years. How are you thinking about it? So I think if you look at and I'll talk about the retail asset side of the business. We are on credit card, a very negligible player at 1.62%. At best, we will go to about 2.2%. I don't think we have any ambition to be more than a more than that as a player. We will our ambitions are to grow at Less to INR10,000 crores. So we don't add that ambition to be a very large player on the credit card side of the unsecured side of the book. I think On the vehicle side of the business, you know that in commercial vehicle, we are at 12.5% to 13% market share. It depends on which segment on medium and heavy. We are at 12.6% market share. On the LTV, we are now at about 13.5%, 14, aiming to be 16% market share and by the end of the year going to 20% market share maybe. So I think that's a challenge which we are going after And I think that's a segment which is growing, the LCB segment. And I think that's a segment which we want to grow. On the microfinance side Of the business, we have been always been 12% to 13% market share, and I think we will continue to be at 12% to 13% market But we will diversify Microfinance into a very different model, which is a merchant acquiring business, which We have talked a little bit, but we can talk about it later. But I think there is a huge opportunity on the merchant acquiring side of the business, where we believe that This business can make a very differentiated revenue model on its own. I think that's a business which you will take, but I think we will always be between 12% 13% On diamonds, we have 25% market share today. And I think we will continue to grow the diamond business. And I think this business Never it doesn't grow on E and R. It grows on transaction. Please understand, it will have a growth of 16% to it. It's not a 30%, 30%, 40% ADR business, it will never grow. It's a working capital turnover and a cyclical business, and we are fine with that. All BBG and MSME, we are at 2.8%. We've always said we want to be at 6% to 7% market share in PC V and we will achieve towards that. On corporate, We are almost 1% market share and we'll continue to be at 1.2% market share. That's our That's our strategy. We will continue to focus on our domains. In nutshell, we will continue to gain or maintain our market share in our domains. I think new areas of expertise, affordable housing and merchant acquiring business will see a rapid growth in these businesses. And credit charge and all will continue as a business to support the bigger businesses of the bank. Understood. Just a last question on the Weidner financing slippages, if I call it right, if I call it $1,000,000,000 can we get a breakdown between CDs and CDs and the rest? Yes. Right now, I don't have it, but you can talk to us independently or we'll upload it in the Investor website. Got it. Thank you so much. Thanks, Frank, for all the questions. Okay. Thank you very much. Ladies and gentlemen, that will be the last question for today. I will now hand the conference over to Mr. Sumantar Parya for closing comments. I think while closing the I just want to say that we had During the calls and during the meetings, we had said that we will have a INR 2,000 crores of restructuring and We will move the gross NPA plusminus20, 25 basis points. And I think we've stuck to our guns on that. I think While yes, I agree the asset growth has been a little bit slow, but I think it was important for us to consolidate ourselves on the asset before The type of businesses we are in, we have to be careful in when we press. And I think there is a time for growth. I thought the time was quarter 1. We unfortunately got In COVID, what I see of quarter 2, and I think I'm very positive in the way I'm seeing it. Of course, some parts of the vehicle finance business are The commercial and the medium and heavy commercial vehicle may take time, but the light commercial vehicle, the tipper segment and all have started coming up. The personal vehicle segment has started to come. Tractors are always doing that. So I see growth happening in our business now. And I think we remain committed To what we said, 16% to 18% CAGR, I remain committed to what we've said On the credit cost, I think we are committed to write up. We've got extra provisions. We will be able to manage the funded exposure of Vodafone also, if it comes within that, we are well provided, I can assure you this much to take care of that. Of course, if the guarantee is getting booked, We will review and see what has to happen, and we will be upfront in taking the provision and be very conservative in taking the provisions. We will not Separate to 4 quarters or 6 quarters, we will take it within that quarter on within to 1 or 2 quarters. I can assure you of that. I think the bank is well set. The bank is well positioned and the bank is highly and has structurally corrected itself in the corporate side, Very well positioned in the domain specialization and as new areas of domain coming up because of the digital business and capability which we are building in, I think I can only say the good times are here to stay now. And I think we've seen the bad times and I think the good times are back. So thank you for your support. And if you have any questions, we'll be able to answer it. You can contact Indrajeet or me at any point of time, and we'll fix the call to answer all your questions. Thank you. Thank you very much. On behalf of Henderson Bank Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.