Q4 25/26

Apr 29, 2026

Summary

Q4 PAT reached INR 140 crores as credit costs and slippages eased, while advances and deposits each grew 23% in FY 2026. FY 2027 guidance targets 19%-21% loan growth, 23%-25% deposit growth and 80%+ PAT growth.

Ladies and gentlemen, good day and welcome to the Jana Small Finance Bank Limited Q4 FY 2026 earnings conference call hosted by Nuvama Wealth and Investment Limited. 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. Should you need assistance during the conference call, please signal an operator by pressing star then zero on a touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Sanjana Faujdar from Nuvama Wealth and Investment Limited. Thank you, and over to you, ma'am. Thank you, Yusuf. Good evening, everyone, and welcome to the Q4 and FY 2026 results conference call of Jana Small Finance Bank. We at Nuvama sincerely thank the management team for giving us the opportunity to host this call. From the management, we are joined by Mr. Ajay Kanwal, Managing Director and the CEO, Mr. KS Raman, Executive Director, Mr. Abhilash Pandav, CFO, along with the other members of the senior leadership team. I would now like to invite Mr. Kanwal to share his opening remarks, following which we will open the floor for Q&A. Over to you, sir. Thank you so much. Thank you so much. Good evening and a warm welcome to everyone. I will refer to the presentation which has been uploaded, and I will be referring to specific page numbers so we can all be aligned. Let me start by page number 3. Last quarter, we had given specific guidance what to expect this quarter, both on PAT, credit cost, and slippages. I am very happy to report that we have met all the guidances that we had given for Q4 when we had declared the Q3 results. The first one was PAT. We said we will do PAT at INR 140 to INR 160. We have come at INR 140. Our net credit cost is at 156. The gross cost is at 192, which is pretty much there. SMA, we said we will come below 4, and we are at 3.66%. So all of them are met. Now let us look at the Q4 numbers with a clear expectation of how the whole stress in MFI is behind us. We had signaled that very clearly in Q3, and you can see Q4 being a clear, demonstrable quarter for that. So let me start with, I am on page 3. The SMA for March 2026 is lower than even March 2024 at 3.66% versus 3.99%. So we are exiting the stress period with a better SMA book than when we started with. The slippages, roughly about INR 334 crores are the lowest since the first quarter of 2020, like April to June quarter 2025. In the last 8 quarters, this is nearly one of the lowest slippages. Slippage is back to where it should have been if there was no stress. We can see that in Q4. Our net credit cost, which was 0.79% for the quarter, is down to 0.47%. Importantly, we see it sustaining. Slippage is one of the lowest now among the last 8 quarters. SMA lower than we entered the crisis and net credit cost sustainably at low. I think from what is the cost of credit, I think we have got a reasonably good handle now. Now, very importantly is to see how we are doing on the growth side, because the quality side is very clear. Assets have grown 23% year on year. Secured assets have grown 28%. We will go into the details later, but 23% is very strong growth. Unsecured book under the guarantee program has grown and now is about 77%, which means 77% of all future NPAs will be covered in terms of expectation of receiving monies from the CGFMU/CGTMSE programs. Our deposit book has also grown very healthy at 23%, and the cost of deposits have dropped by 20 bps in Q4 itself versus Q3. If you take the full year, the drop is about 50 bps. As you all know, Q4 is when the deposit pricing is amongst the highest, and we have seen that Q4 we have obviously been pricing it lower. So one should expect that Q1 of this financial year, we should probably see another moderation of cost of funds too. Our PAT, INR 140 crores. I would like to draw attention the right-hand side, because that chart is the right chart where you can see cost of funds is declining. The net interest margin is growing. It is growing more than the cost of funds decline purely because less interest in suspense and of course, a very strong and robust asset growth. I will now move on to page 4. These are the key highlights. First, like I mentioned, deposits now at INR 35,784 crores, 23% growth in FY 2026, cost of funds down to 7.46%. We began with 8.03% in Q4 FY 2025. Secured assets. As we all know that we have been moving towards our 80/20 secured/unsecured asset mix. That has been our direction for the last 8 years. We have grown 28% year on year, 9% in the quarter itself. Our secured book now stands at 72.6%. I will show you the assets in detail in the further slides. We were at the highest ever in our history of disbursements in Q4, INR 5,372 crores in secured disbursements. Interestingly, while December we began what was the best December ever in unsecured, the best quarter in unsecured in 8 years was this quarter, which is Q4. Portfolio grew 10%. It actually helped grow the year-on-year growth to 8.5%, which is the highest ever disbursal in Q4. Highest ever means highest ever in 8 years of INR 2,522 crores, which is a 24% growth quarter on quarter. As I mentioned, slippages are down. Our strategy of ensuring that we put the book under credit guarantee program has not changed, which is why the total guarantee program is at 77%. I would also like to mention that there has been a growth in costs. These are specific areas where we have seen a growth, but we are primed for operating leverage because we have used last year to really grow some of the areas which will provide greater benefit this year. First one is, of course, the guarantee program cost has costed us INR 55 crores. It will result in benefit of a recovery from NPA from the guarantee programs in the future. Higher disbursal led to a cost of INR 77 crores. See, when we give commissions for any disbursal, whether it is a vendor payment for a valuation or a DSA commission or any legal cost, they are all bore upfront. They are not amortized over the period of the loan. That cost is INR 75 crores. Yes, cost is higher by INR 77, but we will see the benefit of interest income in this year itself. Some of the areas we did investment collections, used car growth, that's seen a 55%, INR 55 crores, sorry, of cost growth. Of course, the new wage code, which is applicable to all, has costed us INR 12 crores. These are the big ones we have done this year so that we can build the momentum as we go into the current financial year, and we will see the benefit of this expense. Obviously, we don't have the same investment expectation this year, so cost growth will taper off significantly from the last financial year as compared to the last financial year. This financial year will be a much lower cost run rate. I'll move on to page number 5, and this is the important page. The first page was around slippages, SMA, followed by our growth in asset, in deposits, the strong Q4, and this is about the gross NPA. You can read here our credit cost for quarter 4, INR 195 less recoveries, which is under other income. Starting this time, we've also started mentioning it specifically in our P&L, because I think when we do credit costs so that we don't end up with different numbers, we have specifically mentioned it right here itself. So net credit cost is INR 156 at 0.47. At gross NPA at 2.33%, net NPA at 0.87%. Our additions to gross NPA has been at INR 334. The lowest was at Q1 FY 2025 before this, which was about INR 324, so nearly about there. We are comfortable with how we are entering the current financial year with our credit portfolio health. I'll move on to page number 6. It basically on the left-hand side gives you the state, which shows there is really a broad, non-concentrated distribution of branches. You will find the same true in the way we do assets and liabilities too. On the expansion plans, we have finished 80 branches in the last financial year, which is FY 2026. I just want to show you how we have spent that or how we built it. 12 branches are absolutely new. Split branches, if the size of branch becomes big, we have to split them, largely led by MFI growth, that's 26. Existing branches relocated to better spots to help liability growth as well as affordable housing, that's 42. In terms of cost, really it is the split branches and new branches which are really fresh costs. Relocations are incremental costs only because existing branches do have cost. Relocation makes costs higher, but they are not absolutely 100% new. Our FY 2027 plan is to take the same by another 78 branches. 40 will be relocation, so there will not be additional number of branches. 30 branches will split, 8 will be new. 38 branches will get added as we move to next year. We are finishing at 822, so expect that to be at 860 branches next year. New products, credit line on UPI being tested right now with staff, loans against shares and mutual funds, trade and FX as we go live with our AD1 license. That is broadly the plan for product launches and branches for next year. I will now move on to page number 8. You will see here our biggest secured product is affordable housing, INR 8,174 crores, average ticket size INR 12.7 lakhs. Second highest secured product is Micro LAP, INR 6,300 crores is INR 6.7 lakhs. MSME loans at INR 5,281 crores. Term loans to NBFC is INR 1,935 crores. Strong growth in vehicle loans, which includes two-wheeler and used cars, which has been additional last year, which has grown at 79.6%. Gold loans. Just like the industry, our gold loan is doing extremely well. Now the book stands at INR 2,358 crores, 140% growth from last year. Others basically is ODFD, some DAs, some employee loans. We have seen a drop in ODFD of a large customer, which is why you can see others at negative 43%, but it has no real impact from a NIM perspective. Our total secured loan stands at INR 26,332 crores. Our unsecured book really has INR 9,674 crores as unsecured advances. It has grown at 10% in the fourth quarter. That has helped year-on-year growth of 8.5%. We are very happy with the growth in terms of how it is performing, and we will talk about it in the next page itself. It is very good news because not only has the collections come back, but we have also seen very robust disbursements. It probably points out that there are less players in the market than there were before the stress began. Because fundamentally, our branches have not changed, our number of people in sales have not changed in unsecured, yet we have seen such a strong growth, which has been our highest ever. It does point out to some unmet demand, so the available players are obviously getting a bigger benefit than they probably would have got had all players come back. So that does point out to probably an advantage period till other players really come back. I want to go to page number 9, is important page. It talks about our unsecured book. 77.1% of book is under guarantee program. I already told you that we paid INR 55 crores in FY 2026. We paid roughly about INR 25, INR 26 crores in the previous financial year, where 77.1% is covered for any event risk which may arise. As of now, this book has a net NPA of INR 184 crores, which you have highlighted there. Out of the INR 184 crores of net NPA, INR 151 crores is under the guarantee program, of which we will receive some of the sums in quarter 3 this year and some of the monies in quarter 3 next year. But fair to say that you should expect this 77% of unsecured book through this financial year cross the 90%-95% range, or rather come to the 90%-95% range. The strategy won't change, and we should probably receive our first reasonable size check from the guarantee program in quarter 3 this year. I will also want to highlight that the BC book has started doing 99% since January 26. Our own book has been doing 99% plus since December. We are sitting in April now. Tomorrow is the last day. I can confirm to you that April will also be 99% for both the BC and the bank's own books. The trend continues to be healthy. I did want to make a mention of April because last April was a very bad one for us. We were ultra-cautious this year, and I am happy to report that that challenge of April last year is not being seen at all in April this year. I want to move to page number 12. This is our important slide. We always talk about this slide because this is why we do think that the bank has a competitive moat. This is where we will derive more operating leverage, and this is where we will derive more loyalty from customers. As we show you here, roughly about this is for all the affordable housing Micro LAP customers. Our average relationship which is active is 4. If you add the property insurance and life insurance we made a mention at the bottom, it will be 6.3 actives product, so to say, for FY 2026. You can see there has been, I would say, good work across wherever we are short. I did expect gold to get better from 2.2% when it reached 2.9. I still think there is enough and more room to go there. You can see our pre-approved business loan program at 20%. It has moved from 18.5. That has been a positive move. Our 2-wheeler has gone up to 1.1. I would expect this to be between 5-7, so all round growth. CASA balances are lower at 23.8 and we need to do some work here to try and see how we can get our CASA balances higher because they were at 28,000 for the previous year. Key page for us, because we do believe that this will stop the balance transfers out and this will really create a one-stop shop which is our anchor bank position for our customer base which is the middle of India or as we call it, the rising India. I will now move to page 14. This is on cost of funds. First it shows you our CASA book. Year-on-year 22.6, time deposit at 23. We did lose CASA in quarter 4 at 4.8% loss, largely driven through some of the government CASA we had, where while we didn't have any challenges, we did see some withdrawals as part of an industry group. We are hoping to capture some of it back as things settle down. But it was a very short notice exit of some of the government-led CASA which we couldn't make it up before March end. Other things which is cost of funds continue to show decline. We would expect one more quarter of decline and then stability after that. Our CD ratio including refinance is at 82.9%. Again, 83% of bulk deposits are one and above. As we all know, our strategy always has been to take longer-term deposits and not shorter-term deposits. People who put one-year deposits, even though they are bulk in nature, do not have a fly by night or a quick exit approach in their mind. These are very stable deposits for us. Then of course, 92% of our retail deposits are more than one year. Our LCR is very strong at 143%. On the right-hand side, you can see the distribution of geographies. We do not have any concentration risk on the deposit side either. On the funding side, we have got very good support from National Housing Bank, from SIDBI, from NABARD. We continue availing those as well as grew our CASA and TD book at a strong 23% growth. I want to move to page 14 next. Sorry, 15 next. While this page is an important page, you will find that it is very difficult to pick up one thing in this page and think this is the most standout, because everything shows how a digital bank is really making terrific progress across the board. You take it on the left-hand side, you will see mobile bank registration up 114%, mobile bank transaction up 36%, and everything is in large numbers. For a bank which has an asset and a liability growth of 23% each, which is essentially focused on doing everything digital, is normal to expect that this page every quarter will show great growth. As a country, we are blessed with a very strong digital platform. Even if you see UPI, it is up 67% year-on-year. I would expect us to keep showing such very strong growth numbers in digital space every passing quarter. I want to now move to page number 16. I think the important thing to see other than the— so our advances is at INR 36,289. These are gross advances. INR 35,784 crores is our deposit base. Our quarter four ROA is at 1.3%, our ROA is at 13%, and it does show that this is more like a normal position of the bank. Our book value is at INR 424. That gives you a sense of what a normalized quarter would look for us. I would then move to page 23 so that I leave enough time for questions. On page 23, you will see that. Sorry. Sorry. Okay. Sorry. The guidance is page 22. I really wanted to point out page number 22 and not 23, is the guidance for next year, which is a gross loan portfolio growth of 19%-21%, a deposit growth of 23%-25%, and PAT year-on-year should grow at 80%+. That kind of summarizes all that I have to say. I really want to point out page number 25 before I close. Because it is just not about quantity and quality. Business Today along with KPMG judged Jana as the best small finance bank, and that award was given to us in February 26. I did want to share this because while yes, we have been through a stress period as we are exiting, we are exiting in a very strong and healthy position. We would try and make sure that we get this award next year, too. Thank you so much, and I would like to open the call to questions. Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on their touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Varun Shivram from Choice Broking. Please go ahead. Hello. Good evening, sir. Thank you for the opportunity. I have two or three questions, sir. First is looking at the NIM improvement in the unsecured business. Wanted to know, does the bank expect any NIM expansion in the upcoming quarters? Varun, you want me to answer this question first, then we will come with the second one? Is that okay? Yeah, sure. Okay. See, what's happening on NIM is two things. One is we haven't seen any customer pricing drop in any of our products. So what we were able to secure from customers as pricing, whether it is a microfinance customer or a housing customer or a LAP or MSME, we haven't seen any dip in pricing. What has happened in quarter 4 is because the slippages have reduced, interest in suspense has not increased. So that is one reason why NIM has got better. Second, we have seen a 10% growth in our quarter-on-quarter on unsecured, and that's the reason NIM has improved. Now, if we extrapolate that to quarter 1 of this year and quarter 2, we do expect unsecured to keep growing. So yes, that should help NIM grow. We don't expect slippages to rise, so that should hold back because interest in suspense won't go up. It won't decline significantly because we are at a very good spot right now, but that will not be the reason of NIM increase. We do expect at least one more quarter of cost of deposit decline. So yes, Q1 is cost of deposit decline, improvement on NIM due to unsecured, and then Q2 will be flattish cost of deposit and still slight improvement in NIM because of unsecured growing. You can expect the same behavior in Q3 and Q4. Okay, sure. Sir, thank you so much. So nicely elaborated on slippages trend declining. Want to know in the MFI and the unsecured whether this trend will continue as well. Great. Why don't I ask Raman, who is the bank's ED and who runs the microfinance business, and he has taken over in April last year. He is the reason for this brilliant performance. I would let him answer this question. Thanks. Thanks, Ajay. Just to give you a little bit of trends. Unsecured slippages were around INR 150 crores in the fourth quarter. It reduced by about 35% in the quarter, and if I compare with a year ago, it is reduced by about 50%. Also the SMA book, if you look at the first line of Ajay's on the decline in the SMA book. The SMA book has also reduced by about 24%. Therefore, we do expect the slippages to trend lower during the FY 2027. But, I mean, just so that we do not expect to see that decline steeply. Yeah. Because I think we are reaching a point where it kind of steadied up. Sure. Because at 99+% that we collect, there is only so much growth you will get in SMA and slippages. Like I mentioned earlier, our big bump, I would say last year was not a great April, but today sitting on 29th of April, I can say we are very different from last year. We will cross the 99% in our unsecured MFI business. Sure. Our secured businesses are doing very well. Again, would cross 99% in all of those businesses. We are specifically focused on doing collection in April this year, so I can say on slippage in SMA, we are very confident now. Okay, sure. Based on that, sir, are we seeing any stress signals in segments like SMA or Micro LAP or any housing portfolio side? Listen, one is the only slight worry we had was on Micro LAP. If you see our page, just give me a second. If you see our asset page, which is page 8. Page 8. Micro LAP, Varun Shivram, last year grew year-on-year only 9.4%. It was our weakest growth amongst all our secured assets. Consciously, we did some tightening across a few geographies, et cetera. We are very comfortable with it. We do not see. I think because we were slow last year, we were able to kind of make sure that nothing that could possibly have slipped has arrived and whatever we had to kind of collect harder, we have done. We are not seeing any signs here. We are very watchful on MSME on what happens with any spillover effects of the Middle East war. Nothing is visible to us, but it is unlikely nothing will impact us. Right now, impact is unclear. We are very watchful. We are very careful. Yeah, so that is the only thing on MSME I will be a bit more watchful. Other than that, existing book, I cannot see any sign which should change our thinking on SMA or slippages. Okay. Sir, last question from my end. What is your outlook on the credit cost percentage for the coming year, and do we see any additional provisioning requirement for the same? Listen, we are not giving specific guidance on credit cost for next year. But if you take a Q4 number of 0.47%, which is our net credit cost, which is on page 5, I think that should give you a good signal of what one should expect. I would probably urge you to view that we will be in the same range or slightly better at best. Sure, sir. Thank you so much for the opportunity. Thank you, Varun Shivram. Thank you. Next question is from the line of Chetan from Incredible Equities. Please go ahead. Hello. Thank you, sir, for the opportunity. I have just a couple of questions. The first one is, sir, the gold loan book has seen good growth this year. Does the yield on the same is at par with the pure gold? See, our ticket size tends to be closer to 2 lakh rupees. For that pricing, yes, our gold yields are as competitive as the similar yields in the market. It is higher than, of course, most nationalized banks, I would say, but it is not as high as the large NBFCs who are gold specialists because our ticket size is a bit more different. Secondly, I do think our opportunity in gold loans, which we need to do more of, is our smaller ticket, high-yielding gold loans. I think we have been less focused on it because the large workforce of our microfinance business, which could have really cross-sold gold in any significant way, has been overtly busy in collections. I think now that collections are in a steady state with 99%, that should be much earlier before the month ends now. I do expect that this year our yields will improve in gold as more smaller ticket customers, essentially from the microfinance cross-sell, will make their appearance. To answer your question, we are competitively positioned in terms of what customer yields there are. I would expect improvement in yields in gold in the coming financial year. Okay. Sure. The next question, sir, I want to ask is on the MFI segment. What is the percentage of growth are we expecting for the FY 2027? I will let Raman answer that. Thanks, Chetan. As you are aware, I think last few quarters, there was a stress that, I mean, in March 2024, we used to be at about INR 10,000 crores, and that had come down to INR 8,900 crores in March 2025. Now it has steadily gone up roughly about 10%. As we speak, we are still below March 2024. Strategically, our focus continues to remain on growing secured faster. The secured book will grow by 25%-30%, and unsecured book is expected to grow by about 10%-12%. That is really the expectation over the next year or so. Okay. The third question I want to ask is, sir, when do we plan to reapply for the universal banking, and what are the chances of getting it approved this time? Do we have any impact on our valuation and growth trajectory if the application is delayed, something like that? Now that our results are out, we would get back to working on resubmitting the application. I think that is what was in our mind because we needed the audited results to be completed. Okay. We have maintained the gross NPA of 3.1%. Though at least these are not the approval criteria, these are the gating criterias for an application. We are diversified, we continue to diversify, so we do think we probably meet that criteria. Yes, the work to resubmit the application will start now. The reason we wanted to apply for a universal bank was largely for our liability book position. We thought the velocity of deposits and the cost of deposits will improve as we change our name and drop the word small finance. We have not built that into our financials either for this year for sure, and certainly for next year, because whether we get universal or not, we still think we have a strong business case in our numbers. When we are giving you the guidance for next year, which is an 80% growth impact over this year- It doesn't have any impact of universal bank in the numbers. Okay. Sir, last question I want to ask is regarding CASA. Any growth are we expecting for FY 2027? See, CASA last year, we were in a real super position in Q3. Unfortunately for Q4, some of the government CASA went away. Too short a time to recover. Even in spite of the quarter four hiccup, where we lost about 8% quarter-on-quarter, we still did a year-on-year growth in CASA of 22.6%. Had it not been for the last quarter, it probably would be more like 27%-30%. I think we should expect around 27%-30% growth this year in CASA. We are very committed to get the ratio up and our retail business in deposits is doing well. As you probably may have seen the ads, we have been the official banking partner to RCB. We are also upping our marketing spends. Yeah CASA should do 27%-30%. Our deposit growth rate, as we have already signaled in our guidance, 23%-25%. Without really taking up the number of branches high. We have already invested in the RMs, and you can see that in the cost increase for FY 2026. I do think we are fully invested for a 20%-25% growth without any significant investments now. Okay. Thank you, sir. Thank you. Thank you. Next question is from the line of Viral Mehta from RPML Capital. Please proceed. Hi. Good evening, sir. Am I audible? Yes. Yes, please go ahead. Yeah. My first question is, do you expect the same mix of housing, gold and two-wheelers to drive next year asset growth, or do you see the mix changing? Easy ones first. Gold, very easy, yes. Housing, yes. Vehicles, yes. I do think Microlife, which just did about 9.4%, will do better next year, so it will probably be the 12%-15% range. I do think that commercial banking, which is down about 23.3%, will probably be in the same range. That is what will happen really. Yes, affordable housing, primary leader, vehicle loans, gold loans, all three will not change. I do think you will see a little bit of a pickup in Microlife, and which is why the total secured advances, which is looking like 27.6% year-on-year last FY. In current financial, we should be closer to 30%. Okay, sir. My second question is, do you see any sign of Iran war impact on your portfolio? How do you intend preparing for a prolonged war? This is a very tough one. There is no significant signs. Okay. What you can see is sporadic nature of customers. I will give you a simple real-life issue. Okay. One of our customers owns a petrol pump, and last thing you would expect a petrol pump owner not be able to pay an EMI. He did say that the number of tankers he is getting, which used to be 10 in the past, is down to two. He is getting less fuel to sell. He is feeling a bit stressed. That is one example. We have not seen more examples like this, but we have to watch out because there will be some impact. It cannot be zero impact. How significant with which customer class, we have to keep our eyes open. Like I said, April collections are very good. They are pretty much like March collections. We have not seen any real impact in our business customers or even our individual retail customers as yet. We are just watching for sectors we have to be careful of in MSME. Fortunately, we always have a secured strategy. We do think we have to keep watching out, but right now, nothing which worries us really. Okay, sir. Thank you, sir. That is it from my side. Thank you. Thank you. Next question is from the line of Rohit Rokde from Ambit PCG. Please go ahead. Yeah. Hello, sir. First of all, congrats on the good set of numbers. My first question is that how was the outcome of branding with RCB team during this IPL season? Did we see a future uptake in the number of deposits you got versus the growth in April? April, we have seen a tick-up in the CASA and the retail TD growth. I do not know whether it is sustaining, so I do not want to make a very strong case that this is the way we should look at it. But it did see a lift of about 15% in the month of April itself. What I do think, we will be investing more in our branding and marketing efforts as we go into this year. You can see that one of the reasons is last year there was so many challenges. The distraction of trying to fix the unsecured flow rates was so high that we kind of missed a few things. Yes, we will be investing more in branding, and we think the RCB tie-up has been a very good tie-up for us. Fortunately, the team is playing well, so we hope that they continue playing well and we get as much advantage as possible from their good performance. Okay. Sir, my second question is actually that have you made any claim to CGFMU yet? What can we expect in terms of recovery from them during the current financial year? I will let Raman address that question. Thanks, Raman. Or you want to add to it, Abhilash? No. We have not made any claim from CGFMU in FY 2026. The claim will start from Q3 of this financial year. Yeah. That's it. As per their process now, I think July, August, you kind of start loading the claims and around October you should expect the payout. No claims can be made, but it shall be made in July, August. Yes. With October being the first month, we should probably expect some payment. Yeah. Our rough and ready estimate is we should expect about INR 65 crores for under CGFMU in quarter 3 this year. My third question is actually, how is the used car business performing now? Are any new product launches expected during the current year? Yeah. So used car, for everyone's information, we launched in October last year. We are now doing a strong run rate of INR 25 crores disbursal a month. We have a scorecard which has been tested. It's a digital process tested. We've got hundreds of partners which are large distributors of used cars who are already signed up, which is why we are doing INR 25 crores in March, and we expect to improve that. We are operating in 15 cities. We expect to take that up to 35 cities by September. So used car, touch wood, launch has gone well. We should see some scale-up this year, and we like everything we see about that business. My final question, actually. What was the reason for DA transactions which was done during the year? Yeah. As you know, we have a target to meet both SMF and Agri. SMF is small and marginal farmers, and then the overall target of 18% on Agri. We comfortably meet the SMF target, which is a small and marginal farmer because we do a lot of, as you know, we have 30% plus of unbanked rural branches, and we do engage a lot of farmers with our MFI group loan and individual loan product. We do not have much of corporate agri-business. We had not developed it, so we tend to be short on agri assets, and this is why we do some DA, which is only about INR 284 crores as of March end. To meet the agri criteria it is, so nothing else. As you know, small finance banks cannot do any PSLC transactions unless they are short or long in any particular subcategory. This is just to meet that short requirement. We are starting to do agri supply chain. We had hired the team in last year. We are seeing the first transactions actually start now. I would still think we will do probably a few DAs this year because the book is expected to grow. The asset book will grow about 21% or 19%-21%. We will certainly need to do our quota of SMF and Agri. But I do think it will be not a big number at all. INR 284 crores in already a INR 36,000 crore book is not a big number. Okay. Thank you so much, sir. That was really helpful. Once again, congratulations on the great set of numbers. Thank you. God bless you. Thank you. Next question is from the line of Suraj Shinde from Yes Securities. Please proceed. Hello. Am I audible, sir? Yes, please go ahead. Congratulations on great set of number and good evening, sir. My first question is on the recovery side. Recovery from bad debt is at around INR 120 crore. Does this trend seem sustainable to you, sir? Or how do you see in the future as well? The recoveries, I mean, if you look at our last few years, we have seen similar trends in terms of recoveries. These are primarily from accounts which are either fully provided or technically written off. Just from an accounting standpoint, some of it can be booked under the revenue line, but the bank's credit cost is to be adjusted with these recoveries, that is, the recoveries were not made. That is really the key point. Back to your question, can we look at a similar trend going forward? I do believe so. Okay, great. Second question is on the cost of deposit have been sliding down. Do we know what is the incremental cost of deposit for this quarter? Given the tightness of liquidity, how do you intend to sustain that low cost of capital? Listen, April, to be honest, has been there is not as much tightness of liquidity. I think the trend that is in the banking side is 84% of all new deposits in banking, not Jana, is in time deposit. Only 16% is coming in CASA. The real hard yard for certainly us and I guess a lot of our peers is to grow CASA. Like I mentioned, quarter 4 is when you kind of have the biggest price fight amongst banks for deposits. We have seen our quarter 4 pricing for deposits in FY 2026 lower than FY 2025. But because most of the deposits are really marked maturities and term maturities, you will see a full impact in quarter 1 this year. Yes, quarter 1 this year, cost of deposits will fall. Are we seeing a significant tightness in liquidity? There is no tightness in liquidity which is visible. Do we expect interest rates to decline further? I do not think so. I think we should see, at least in our head, from what we see customers doing and competition doing, you should expect flat interest rates. No more decline beyond Q1 is how I would read it. So Q1 will probably be our lowest point of cost of deposit. Yeah. If we can do some better magic in growing CASA beyond that 27% to 30% that we are trying, then our cost of funds could come down in the further quarters. Okay, great. One last question is on the borrowing in the Q4 have gone up significantly, around INR 1,500 crores raised from financial institutions. What is the cost of this fund that we have raised and why we have raised this fund? Where do we see the utilizations coming from? Sure. First, to answer the first part of your question, which is the rate. These have been raised from NABARD, SIDBI, and NHB. These are longer than a 10-year sort of borrowings. The blended cost of these borrowings is around 7%, 6.9% to 7%. That's the range at which we borrow. Essentially what it does is, primarily the focus of these borrowings is to enhance our ALM. Because these are 10 years tenor and so on. This helps in improving our ALM. These are also long-term borrowings. Long-term stable borrowing, that's the reason we raised it. Also there is no CRR SLR impact on these borrowings. Combination of these three is why we do the borrowing, and the rate which actually is around 6.9% to 7%. Clearly, the rate of this borrowing is lower than our cost of deposit. That is one. The tenure is longer. We are fortunate to have the refinance books available. You have to have an affordable housing book which meets the criteria of National Housing Bank to get refinance. You need to have the MSME book to get SIDBI. You need to get the Agri book to meet NABARD. We have those asset books. We could borrow more honestly, because it's lower cost than deposit, but we also want to be prudent. So we tend to have 12% to 15% of our total book funded through these long-term quasi-government financial institutions. We intend to kind of remain with this percentage even going into next year or rather into this financial year. Okay. Sir, last question from my side. What is the guidance on the cost-to-income ratio for this financial year? Can this come down below 60%? We will make every attempt to do it. I can tell you what will be in its favor. First is, like I said, a lot of the big investments that we made this year because the cost has been running hard relative to our revenue. This year I think that will show better results next year, so we don't have to spend so much in cost growth in current financial year. Secondly, our revenue will run much faster because obviously we have had a very strong quarter 4. We are also seeing our unsecured grow, which was a challenge last year. If you take combination of those two and of course lower cost of funds this year versus average of last year, we should see better revenue, lower cost growth, and hence a better cost income. I just want to tell you and everybody else on this call that March 2024, our cost income was 57%. As a management team, we always remember that number. It also tells us that where we could be if things settle down the way we wish it to be settled down. Yes, we would be working as hard as we can to bring this down more significantly, as fast as we can. Okay. Thank you for the detailed explanation and best wishes for the FY 2027. Thank you, Sridhar. Thank you so much. Thank you. Thank you. Ladies and gentlemen, we will take this as the last question for the day. I now hand the conference over to the management for the closing comments. Thank you so much. Folks, I think first is to all our analysts, investors who are on this call. I must thank you for your patience. It's been a tough journey from April 2025 to December 2026. I think those seven quarters have been hard for us. Thank you for your patience and beliefs. We did signal that quarter three was our bottom quarter. Quarter four, just to make sure that nothing was lost in terms of what people should expect, we had given a quarter four guidance. That's the only time we've done it, and that's the only time we will do it. We've met those guidances. I think we are exiting the crisis in a much more solid shape with SMA book lower, with secured book higher, and with more diverse businesses. Because certainly we have seen the gold business become a real business of size in the last 18 months. We have seen used cars quickly ramp up and now become a contributor this year. I missed answering a question in the past. Now that I'm talking about it, I remember. What are the products to be launched? Our credit line on UPI, we've done all the work. We do expect that to have some solid results. That will go live this year. Our AD1 license with FX opportunity along with trade will go live this year. We do think that we are very conscious on one thing. We've seen a big cost growth last year. We don't want to see that this year. So very measured in terms of what we will spend on cost, and we'll maximize our growth, which we have seen in quarter four and continue seeing growth through this year. I really would try my best along with the team at Jana to make sure that we more than meet our guidance. Thank you so much. Thank you, sir. On behalf of Nuvama Wealth and Investment Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.