Q1 21/22

Aug 4, 2021

Good evening, ladies and gentlemen. I am Pavan Kumar Kedia, General Manager, Performance Planning and Review. On behalf of the top management of SBI, I extend a warm welcome to all joining us today on SBI Q1 FY 2022 earnings conference call. On the call today, we have with us our Chairman, Mr. Dinesh Kumar Khara Mr. CS Sethi, Managing Director, Retail and Digital Banking Mr. Asuni Bhatia, Managing Director for Corporate Banking and Global Markets Mr. Swaminathan Jay, Managing Director, Risk, Compliance and Stress Asset Regulation Group Mr. Asumi Priwari, Managing Director, International Banking, Technology and Structures Mr. Alok Chaudhry, Deputy Managing Director, Finance Mr. Saranjit Satra, Chief Financial Officer. Before I discuss our Chairman to give a brief summary of the bank's Q1 FY 2022 performance and the strategic necessity undertaken, I would like to read out the Safe Harbor statement. Certain statements in these slides are forward looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual outcome may differ materially from growth included in these statements due to a variety of factors. Thank you. Now I request our Chairman to make his opening remarks. Thank you. Thank you, Pawan. Good evening, everyone. Thank you for joining this conference call. Well, friends, the quarter 1 financial year 'twenty two results we have already declared. And I would like to place on record that it was quite a challenging quarter All of us, for the 2nd wave of COVID-nineteen, I hope all of you and your loved ones are safe and healthy. I want to start by thanking the support of all our stakeholders during these challenging times. During the 1st and the second wave, our employees have continued to provide as to our customers, open at risk to their own footprint. As always, GUPINK has delivered on its obligation to stakeholders even in the face of the extreme challenges. That is an inherent aspect of the culture of the bank. The same could be possible due to our focus is on process and structure in which every employee of the bank has space to make a difference. Having said that, I would also like to bring it to the notice of all that almost 74% of our employee base I have already been vaccinated to ensure to we should be sufficient to tide over any future challenges which might we might come across. When we look back at quarter 1 financial 'twenty two, considering the extreme challenges that all of us have faced, We are proud of our performance. As all of you already heard our presentation, I would like to highlight a few key aspects of our performance. We can view of the seasonality factor and its impact on the banks business, comparison of the performance has been essentially focused on Y o Y basis. Our slippage ratio in the quarter is 4.47%. This is because of the impact on collections. A significant amount of these slippages have come from the retail portfolio, which is essentially a fertilizer. However, the good news is that in July 2021, we have been able to bring in Some ground and we're confident that we will be positioned to pull back and see much better performance in the days and weeks going forward. In the context of challenges faced in quarter 1, we believe these results are strong and comparable. All of you will notice that we have fared well on the asset quality through financial year 'twenty one and now in Quarter 1 of financial year 'twenty two as well. In fact, the textbook have now undergone 2 stress tests, 1 during the first wave and the second and the most severe second wave. And through both these tests, we have delivered reasonably well on the test of quality. Our ZEP NPA level at the end of quarter 1 stands at 43,000 crores with a provision coverage ratio of almost 86%. Additional provisions including COVID provisions not included in PCR are INR29,816 crores. To put in context to those numbers, our operating profit was INR 71,754 crores in financial year 'twenty one and the CIM is INR1825 crores in quarter 1 financial year 'twenty two. I think we have been able to deliver this level of operating profit despite relatively low and deposit ratio. As far as the capital is concerned, our CET ratio as on June 2021 Yes, 9.91%. Given our competitive position, which are our value drivers, We believe our current capital and future internal accruals will be adequate to support our long term growth targets. Given the dynamic situation and the likelihood of the 3rd wave coupled with the NPT of economic linkages between enterprise and mid results, Leading to reprioritization of complications in time of adversity, we would like to refrain from giving any forward looking guidance at this point of time. However, my team and I are focused to achieve our long term sustainable ROE target of 15%. Challenges due to COVID-nineteen and its result and impact are still very real. We believe that bank can better these disruptions can come out stronger over the medium term. To ensure this will happen, we have a sharper focus on Juno, which is our flagship app. And we have seen a significant increase in number of people who have downloaded this app, and The effective registration now exceeds INR 4 crores, and it is actually growing with the first Yes, to my mind, it is actually it has already reached crore of 100 crores. As we have, our online banking channel has got Customers already using this additional COCOR customers coming through, gives us a distinct leverage to ensure that we are efficient to reach out to our customers and offer them the services even in the most difficult circumstances. And in the current financial year also, we have successfully dispensed to more than 4,400 core worth of the year. We have purchased the loan with the help of Yonah, which is end to end user. Going forward, we'll be announcing this capability by offering even Net 2 wheeler loans and also the recently introduced coverage loan also has been made available, so you know. To conclude, I once again thank you for all your support, and we remain committed to reward your trust in us with superior sustainable returns for the long term. My team and I are now open to taking your questions. Thank you. Thank you very much. The The first question is from the line of Maruko Chaney of Kumar Capital Markets. Please go ahead. Hello. My first question is on margin. So what was the interest income reversal during Q1? Okay. And last quarter, in the Q4, it was around INR 3,000 That's essentially because For the full year, we had not really reckoned any of the NPE and naturally the interest reversal was also not accounted for. And since it happened almost for the full year, it was 3,000 crore. This time for the Q1, Yes, sir. I'm just comparing QoQ. So QoQ also the NIM that You have to appreciate That last year though it was at the quarter end but it was for the full year. Because of Supreme Court directive, The NPS were not recognized. So on the pro form a basis we've indicated. So although the NPS were recognized in the Nice with the last quarter and the relative income which was booked earlier was reversed. Correct. So between Q4 and the Q1, that is Q4 ending March 21 and then Q1 ending June 21. There has been a sharp drop in loan yield. So Is it because of the product mix change or what has changed that? And thereafter, we have we are booking on some certain kind of industrial plus other additions in that. So this And my other question is that you have a buffer provision of around INR 29,8.16 crores and you've given a breakdown. The first is INR 15,700 crores On the asset provision, these are the RBI mandatory provisions, correct? Yes. Sorry, sir, I can't hear you. RTI provisions Okay. So what would be the RBM and issuing provision there? RBM mandatory provision is essentially 4 from RF, 1, RF, 2, one account for the restructuring and apart from that on the stress assessment, which is at Okay. And just one last question on home loan slippage. You gave a number of 1.53% respectively That is annualized, correct, which means that the home loan slippage is around INR 1900 crores. Is that correct, Sighur? No home loans, which is at Retail personnel also has been given. So that is the reason why it is so. But when it comes to our home loan NPA is essentially at 1.39% in Tifway. That's the pullback. It will actually come to 1.14%. Got it. So the number you gave up 1.53% of slippage in the press meet, that is annualized, correct, Which means it's a INR1900 crores kind of So it's around INR 1900 crores. Where that number is coming from? So we have said that we can be digital personal loans to be 5,268 in Q1. Yes. Home loans separately, it is 3,123. 3,123. Yes. Thank you so much, sir. Thank you. Thank you very much. Next question is from the line of Netan Agarwal from Multigalhos from Question, like when you refer to the incident pullback that you have seen in July, what are the segments where you have seen these trends? So we have seen the pullback coming back from practically all the segments. It is No, it is also in the SME and also in the personal loans. So all segments have seen Can you share some alone collection efficiency as to where we were in June and where we are in like is it July? We were somewhere around 92% in June and now we are actually more than 93%. Actually, it's somewhere around 93.5%. So it has improved by almost 4.5%. Okay. And secondly, on the what is the context of the EC and G loans? And when I look at SMEs triple now, they are higher than what CGLS loan, we had sanctioned INR 30,000 crores. And disbursements took place about INR 27,000 crores. And the current outstanding is at about INR 22,000 crores. So I'm asking Karan, in the context of the SME speeches that we had in the Q1, now which is dialed in the sales level earlier last year, What kind of comfort do you draw on this portfolio as this comes out of moratorium starting next year? See, the point is that when it comes to SMEs The messages have actually come from the fact that their cash flows are totally disrupted in the Q1. Out of 90 days, 60 days, there was hardly any activity. Equity. There was a huge restriction on the mobility. I think the post situation where the Lockdown solutions have been eased out. There is a scenario where we expect that the cash flows of SMEs will get referred. And they will be in a position to come back faster when it comes to the recovery piece is concerned. And lastly, we are seeing an increase in user digital channels and cost issues and some improvement. So how much room do you think is there as like interest with higher usage of YONO and business being posted on both asset liability side? Where could we be on the cost? What is the cost income ratio in next few years? As I've been sharing from the very beginning that cost income ratio is one of our major focus. There are certain structural issues, but when it comes to the non interest income is concerned, So mobility is one of the major important factors and that will actually help us in addressing one lever. The other lever is the rigidity of the cost That also we are trying to address. And hopefully, I think maybe give us another quarter or 2, we should be in a position to give some kind of trajectory as the first team from Vishay's customer. Thank you. The next question is from the line of Rajesh from CLSA. Please go ahead. Yes, hi. Sir, Ravin, on margins, the last question, there is a drop in margins from 4th quarter to When it comes to the margins, GEM essentially, We have seen that because of the low economic activity and real economy being where it is, the credit deposit ratio have actually There is a further reduction and that is something which is one of the contributing factors. But from that, there was a pressure on The yield to advances because when it comes to the quality profit, there is a 1 off challenge which is there. So in terms of the corporates are not really availing the limit. Unutilized portion has gone up even further. When it comes to large corporate, it is, as I hear, about 40% now. When it comes to SMEs, there's a slight improvement. It's just 30%, but it is about 25%. So I think partly it is underutilization and partly it is Also attributed to the fact that the credit deposit ratio needs to be improved, Which of course is a function of the real economy. Once the real economy is good, we should be in a position to support the credit growth and which will certainly help us And improving our revenue. Just to ask your opinion, Adrian, Margins in the 1st 9 months and then it dropped because of the runoff in the last quarter and now because of the yield and CV ratio pressure. Do you expect that we can get back to margins where we were in the first half last year or because Sir, we are actually celebrating our portfolio also. Hopefully, we should be in a position to come back to the past trajectory in terms of NAV. Moving asset growth and then the revenue asset becomes slowly moderate. Now I'll tell you in case of Q1 'twenty one, average consumer earning asset was RMB31.55 and this time And Got it, sir. And just one more question on the same. So when you look at The incremental loan yield, you should be looking on existing loans versus the stock. How large is the gap? And the same question on cost of funds. What I'm trying to understand is The yield was the next amount this particular quarter on the full loan book. What are the incremental yields that we kind of generated in the last couple of quarters? The yield would be somewhere around It could be around 7.7. Just give me a minute, I think we'll have to look into What is the incremental yield? I think we will get back to you. This number may not be readily available with us. We will have to get back to you on this. Dispensations were given to SMEB, TCLGS restructuring and some of those dispensations will continue. In spite of that, we've got a slippage up just tragically because of Wave 2. But as you go into the next Few quarters, you will actually have a real test of debt servicing for some of these SME loans. So What's your expectation for the SME stress? Because that did enjoy a lot of dispensation benefits last year. So see the point is as I was mentioning, the way the stress has come into the SME book, It might even go away at the same pace, but clear cash flow by Siprant. I believe that is what we have seen also. And the cash flow disruption was essentially on account of restricted economic activity. And once the unlock situation happens, I'm quite confident that the cash flows will get different and We will have a situation where they will subsequently be very active and some of them, yes, of course, I agree. The damage is beyond repairs and of course, it will go away. And for that, I think we have could talk about we have already created whenever we are doing any restructuring. As against the mandated Provisions, we are generating a little higher provisions for any restructuring. And our past experience, Of course, it is not representative in the true sense of the word. We have said Almost worth 50% of such restructured account. So various had been well. That is in the normal situation. But these have been very abnormal situation where The cash flow disruption also happened very suddenly, and the repair also is expected to happen at a very fast pace. And my last question or Thank you. The next question is from the line of Prakash from JP Morgan. Please go ahead. Thank you, sir. Sir, two questions. So one is on this corporate loans, Can you just elaborate what you're asking given the growth this week sequentially? And also what are your thoughts on the telecom exposure given the performance that you're hearing. And second is on Yono, if I can take that as a follow-up. The first question relating to the Farquhar book, well, of course, the growth is quite muted. We have seen it. And Raja, there is a degrowth. And we reckon The loans I mean, subscription to the CPs or like commercial paper and the bond, Then it still looks little reasonable. It shows about the marginal growth. The fact remains that there are when it comes to pipeline, there are underutilized limits, almost about SEK 3 lakh crore. Also, almost when it comes to the proposals in pipeline, they're almost worth 1 lakh 30,000 crore. So that is something that is what is there in the corporate book. Also, there is also the fact that the deleverage which occurred in the corporate in last 1 year, that is also another contributing factor for the The muted growth seen in the corporate credit. So I think part of it would be the kind of liquidity which is seen in the system, How long is liquidity which is which comes from overseas markets? Will it support the Indian market is one question. 2nd is the revival of the joint which you'll probably announce there in the spread standpoint. That is the other very important factor which will have On the credit growth in the corporate book. And your other question relating to telecom related sector. This is the larger in dimension and we are engaging with all the stakeholders to See how best it can be resolved. And I think we'll have to wait and watch for the outcome. We are trying to insert our knowledge from any shop which might emanate from this. Maybe I'll request Sashin Bharti also to supplement. Yes. So everyone is aware of the problem on the telecom side. We are also Warit, at the same time, we are engaged with all the parties concerned. I mean, if you just talk about the EBITDA, it's like quite okay. But the liabilities of the company are outside the balance sheet. Okay. Thanks, sir. The first one is on YOLO. So, this JTL Loans that you do, this is unsecured loans, right, of 20% of loans that you disbursed. Do you know what is Outstanding Chanting in FPL would be actually reflected in our express credit portfolio, which is around INR25,000 crores out of for both Crores, which is there in excess credit. So that is a kind of a because we started around Last year, at the end of the Q1, we were dispensing about 5,000 crores. This year, in about 40 days' time, we have dispensed about 4,000 crores. That is a kind of a number. But it is all analytics driven and it is all it is offered to those who are maintaining corporate salary package according to this. Okay. And the average ticket size will be 3 lakhs, right? I mean, that's what I get as the operating number. Will that be the product number? If you can repeat your question, the average ticket size will be 3 to 3 to 3 loans. Yes, somewhere around that. Okay. Yes. So firstly, in terms of the international book, so that's in 2018 since the past quarter, in fact, we would have had almost INR Growing, I'm on a sequential business in this quarter. So what will be the outlook with respect to international growth? International, I'm quite hopeful that it will grow because the kind of activity which we are seeing in the developer Yes, something which is quite encouraging. And we are seeing significant activity and we are in a position to support it well. And also we are also getting rupee dollars strapped, which is also helping us in Sort of funding it at a very, very cheap cost. And also maybe I'll request if you need to add. Yes, sir. Just to add to what the Chairman said, We are seeing very good opportunities available in the developed markets of the U. S, U. K. And so we are exploring those and we are doing largely very Good credit quality is a real maintenance of high investment grade kind of assets and therefore It is secure and yet it is also offering a good amount of traction in the year. So that's something we look at the international book to grow [SPEAKER SRINIVASAN VENKATAKRISHNAN:] This year while we are still kind of coming out and the investment summit is improving in India, in such time this is providing us a good diversification Geographically, that's also any kind of loans we do here. Sure. And in terms of this And when we look at in terms of the excess to date, we used to achieve. In fact, at this time, the growth has been Demand change or maybe the incremental loans are not covered in getting booked in other sister loans and it's not being there under the express credit for that reason? No, coverage loans are categorized under the other P segment loans. And we have done we have We have distributed about 1,000 per month of COVID-nineteen loans and it got started in the middle of June. So that is where it stands. And Express Credit, part of it is also because the customers are expected to really I do a bit of an activity on the UNO. And only then it is dispensed. So I think it is not that we have as far as the figures are concerned, figures have remained the same. Maybe I think that at the material point of time probably people are not as much focused in terms of raising credit as they were This means are 3.26 are FY 2021 and Q4 was actually 3.11. So actually Sequential, there is an improvement from 3.11 to 3.15. Is that right way to look at it? Yes, that's right. The next question is from the line of Abhishek Murak from HSBC. Please go ahead. Hello, good evening. So after question 1 on expected, can you share what would be growth outlook on a YY basis obviously because The growth is good, but incrementally, how do you see growth there? Second question on that is What is the credit cost you factor in normally in a normalized credit portfolio? And can you also share the usage in excess credit on the call? Expressed credit has not seen much of risk. If I join, maybe you can respond. And the expressivity, I think as you know, we give expressivity to mainly our corporate salary Package holders. These are 2 of the direct ones, Dari. And if you look at our GST account, we have about 1.7 crore So we have our growth potential there. Currently, we are growing even in July, we have grown around 24%. On the excess credit, NPS if you see less than 0.7%. So the question really is not about existing credit cost. It's just about in the product, what kind of credit cost do you build Can you price it? So that question, that answer, I think we'll have to look at that if we have to not have I'm not able to hear the response in that. Okay. But actually it's nice to say that the 1st tier B segment product, it is a stable product also. And very high yielding, the returns are Very good. So if you're talking of a number, maybe it could be not more than 0.5%. Okay. And what are the ease in this product, sir? 11% Okay. And then the second question is on the corporate portfolio. Can you share the yield on the corporate portfolio Maybe both for Q and 1Q? We'll give you those details. We will not have it right now. Okay. Thank you. This is Sathir in the last question. You had spread the NPA in whole loan as of July end on in the SME. Can you share a similar NPA number as of July end for SME and Express strategy, if possible. Yes. We'll just take it out for 4 weeks, not initiate. Okay. All right. Thank you so much. Thank you. The next question is from the line of Sameer BK from AXIS Capital Limited. Please go ahead. Yes, hi. Thank you for the opportunity. Just so you mentioned that There are proposals around of around 1.3 lakh crores on the corporate side. Can you elaborate on what kind of projects or Proposal value, maybe sectors or any directional commentary on this share will be helpful. Thank you. Specifics would not be there with us, but nonetheless it is essentially coming from the infrastructure sector. Largely government driven projects, No. It is X. Iron and Steel and Infrastructure, etcetera, are the major players. Fair enough. This is Elke. Thank you and all the best. Thank you. Thank you. 1st, the NQ formation that we have seen contributing to the personal loan segment, not with the fixed rate, but the home loans and the gold loans. What did he explain that? Was there a difficult in terms of recovery or the underlying customer interest that you are going to stress? And if you can also help us with what's up in the month of July? See, when it comes to gold loan, it was actually the restriction on the mobility because what happens is in the gold loan as and then there's a Top end margin, so naturally they are required to come in and deposit some money, etcetera. So that is something which is coming in the way. And we have seen that Post, I think, on 16th June onwards, we have seen decent pullback in the Gold Log account. So that is what explains what really was the contributing factor. What else you were asking? So how about home loans? Home loans also is likewise because it is all effort elastic and since With the recovery effort, as I was mentioning, this number, which is at 1.39%, whereas on 30 June looks at 1.14% as on 31st July. So that's the reflection of the effect which is seen on a quarter pullback. No, see the point is that the impact on the cash flow segment is our people reaching out to them. So when people reached out, we could pull that result. Okay, sure. And then on the car deposits, So we have seen a suspension drop in the current deposits. Is it more seasonal or you are also seeing some disruption coming in from the peers Because of the recent RDA guidelines? No. But because of the RDA guidelines in terms of value, I think it has [SPEAKER SRINIVASAN VENKATAKRISHNAN:] Whereas, offered only just about 10%. In fact, our trial actually increased on a Y o Y basis. [SPEAKER SRINIVASAN VENKATAKRISHNAN:] But yes, of course, if you will look at your quarter on quarter, March always has got the buzz, so which will not be there In the subsequent months. Current account, we have actually seen an increase of about 15 basis points. It's more seasonal in nature for the current quarter. Yes, current account is always seasonal. And that is the reason why we have put up Next question is from the line of Kumar Pocha from Mirai. Please go ahead. Hi, good evening. Thanks for taking my questions. On the overall recoveries in July, what was the 2nd quarter in the month of July? Recoveries, July, we have done about INR 4,790 crores. Okay. Sure. And this, as you said, would be across the segment, Okay. Regulatory Retail, if I may say. Equity, Agri, Per and Home Loans. Sure. Just of the remaining 4,000 or crores which is left, how confident or what portion of that do you think will be covered in the next We'll have to wait and watch. I thought we're all on the ground And we'll try and see that whatever best we can. We wish you an efficient tool. Sure. On the MSME side, The MSOM is securities was likely on the higher side. Any rationale for not restructuring these loans if the borrowers were stressed? We are doing the restructuring. In case of SMA also, we have already restructured about INR 3,000 So I mean, if it is that, it wasn't quarter These would be key structure. I mean, you'll be I mean, these would only be covered If I can just respond, sir, out of this 6.416 crores which you're saying, glitches, Already around INR 2,300 crores has been upgraded by the recovery that is INR 4,108 crores. No, see, when it comes to other provisions, other provisions would also have Yes. Yes. [SPEAKER SRINIVASAN VENKATAKRISHNAN:] So it contains 2 things as a provision. One is that, as you know, that this restructuring 5% and 10%. But we have whatever extra around INR 2,100 crores, we have put it here on our own other positions And around INR 2,800 crores would be on the NFB side, the non fund list for that also. Those ICA accounts which are restructured, there for the NFP, there is a requirement for meeting a presentation, something which Which has been talked about earlier. Okay, got it. Got it. And just last question, if I can squeeze in. What is 90 days GPD? It's a 90 days GPD based on the 90 days GPD. Other than agriculture, we have a Other than agri, agri, of course, is not What do you like? Over is around 2.5, so on some days you took because it is completely augmenting Really, that's it. So it's here. Over to that, Nirmala. Okay, sure. Thank you and all the best. Thank you. Thank you. The next question is from the line of Telanjan from Nomura. Please go ahead. Hi, sir. Yes. So the question is on the Express Credit Scheme. And I think we used to have something called a special PATL loan Okay. The balance sheet were at roughly INR 3,000 crores in March. Related to that, I mean, what The top of the pension loans, sales, all this. No, in fact, pension loan etcetera is all covered under the other pre segment loan. There is no special No, we had special pay CFM, the CFM discontinued. That was only meant for during the COVID period and We did not agree to action yet. So the special pay period will withdraw. So the balance probably would have come down from $6,000 what you are speaking. I don't have the nimpose. The product is not offered anymore. Okay. So the KCL is now converted into a KAVRCH loan. Is that how No, no, no, no, no. Kavatsh is absolutely a fresh loan which has been given. And that took for those who suffered from COVID. And it was based on the That's all the progress. No, top up actually is something which is annual feature because people, depending upon their salaries, They come back. So I don't think we'll have that kind of a debt available with us right now. Okay. So the second question is on the restructured assets. I think in the March quarter, the pipeline, Including implementation was at 17,800 outscore. Out of which, I think we have implemented almost 13,000 crores. Is the balance going to come or is that folded into OPRP? No, only INR 2,000 crores worth of applications are pending for [SPEAKER SRINIVASAN VENKATAKRISHNAN:] Yes. These are non fund based facilities that are outstanding against accounts which are under restructuring Under the ICM mechanism where there has been an overview. So this has been made on a prudential basis from the NAB outstanding. So this is the total is at INR59,860 crore. Yes. So it is forming part of INR551. [SPEAKER SRINIVASAN VENKATAKRISHNAN:] Because the standard asset provision will be only against the fund based outstanding. The provision that is made against the non fund based outstanding is Always classified into other provisions. Sure, understood. Thank you. Thank you. The next question is from the line of Mahesh Gandhi from Complexity Securities. Please go ahead. Thanks, sir. I have no questions. One is on the on a slide that is Can I have what is the outstanding restructured loans at the end of this quarter? And if you could give us a sense of what Outstanding restructured account should be Total restructure. Total restructure would be about RMB 12,995, so that is our total restructure. And if we reckon our pending restructuring also which is 2,056, then the total restructuring comes to 2,297. So actually, yes, that is what the whole thing is. Well, the research book, we are keeping 5% extra percent over and above what the RVs took place. It's more than the total. For the As for regulatory requirement, we need to keep 10% for general and 5% for MSME. But on a flat 15% basis, margin is below 15%. This is on the loan book. So you have INR5700 crores of extra provisions or INR50 1,000 crores of Instructure loans. It seems to be much higher. P. Vijay Kumar:] We can give you the break up, but 0.4% is not uniform. There are [SPEAKER SRINIVASAN VENKATAKRISHNAN:] Asset classes under which different provisioning requirement exists. And also as a matter of prudence, the on the stress detectors, [SPEAKER SRINIVASAN VENKATAKRISHNAN:] Additional provision is also made with support approval. So this is something which point 4 is a minimum guideline that is accepted. This is worked out in a granular basis on different asset categories as well as different sectors. The unique thing in the past 1 year has seen the restructuring provision that we are making on accounted as resected under the resecting package 1 as well as package 2, the resolution frame of 1 and 2. As Package 2, Resolution Framework 12 as well as additional provision that we are making at 15% instead of 5% or 10%. That's how the numbers are still a little elevated. These are just kind of buffers that are being created over and above the regulatory required. And can we have a backup of this 50 7 gross to be structured loans across the business? We can provide. We do have a backup. I can I'll broadly share with you about INR 8,000 crores are into the retail personnel, 9,000 code in retail personnel, SME 3,000, corporate is just about 48,000. Perfect. 1 item which is One account recovery of INR1600 crores. And that had no impact on the yield line, right? [SPEAKER SRINIVASAN VENKATAKRISHNAN:] No, this is an account which is already fully provided or ungrouped part of Auca. So it directly goes into the other income. And since the reason I'm asking this question is if it is pertaining to an aviation sector that was recovered this quarter, a few things on the NII line as well. So just trying to understand. We have not done anything like that. We have not done. It's miscellaneous income only. [SPEAKER SRINIVASAN VENKATAKRISHNAN:] That's why it's shown under the other income because this is fully provided for and written of the account. It's an account part in advances and the selection. So it does not impact [SPEAKER SRINIVASAN VENKATAKRISHNAN:] The account was in the live ledger still. This is we have provided and taken out Thank you. Parvait is in out there. Given what you're seeing now in the balance sheet I think we have about Annual target of about 14,000 crore and hopefully we should be in a position to recover that. Okay, sir. So this is excluding any Q2 in the last year? Yes. This is excluding that. So this is the testing we are not done. But it is at a portfolio level, we hope that we should see the patients recover that. Thank you. The next question is from the line of Bhagavath Ghand from Bhutan Investments. Please go ahead. Hi. My question was actually regarding the salaries that the top management did. It's quite lower compared to the top private I want to know if the management has actively pursued about getting it to industry level Because I feel we will not be able to retain talent on the top level if we continue giving such low salaries to the Chairman and the Managing Director. If you are talking about me, I am not going to leave it to Sysam. I also pran it from the bank. And likewise, I think my other MDs. From the perspective, I don't think it's sustainable to pay So little to the top level management. See, you have to see it in the context that in the bank, the top management comes from within the bank only. Why would you want small circle because then it will be sustainable compared to private sector alumni. I think it is a subject matter which is beyond any one of us. So I think we'll have to live with that situation, but we have no grudge against whatever. It may be generally feel it may be generally flat in the market, We are quite accustomed to this. We have worked in subsidies also where people draw much more. So I think it's not a challenge at all. We have much bigger goals to look like than somebody. Yes, yes. I agree, but in the long term So, 20 years down the line, 20 years down the line. That's all. Maybe things might change by that time. Okay. Thank you. Yes. You are so persistent. Maybe things might change also. I hope so. I hope so. Thank you. Next question is from the line of Anand Latta from HDFC Mutual Fund. Please go ahead. Hello, sir. [SPEAKER SRINIVASAN VENKATAKRISHNAN:] Honestly, you have to see it in the context. Last year full quarter, the slippages could be reckoned only towards the 4th quarter. And also the fact remains that this year, the Q1 in terms of the severity was much tougher. So in that I mean, this number has to be seen in that context. And also, there was a poor house challenge in terms of mobility. [SPEAKER SRINIVASAN VENKATAKRISHNAN:] At a point of time, we all of us were under obligation to run our show with Jesu. 15% of them, 1 5% were to run the operations. [SPEAKER SRINIVASAN VENKATAKRISHNAN:] So we have ensured that our operations continue and we should be in a position to contribute to the economy. I think in that context, it was it has hit the most. But nevertheless, we've kind of restructuring and hopefully with make equity coming back. I mean quarter on quarter, things may not move in a very linear manner. It may be different depending on the Where do you see or what is the situation restricted aside for full year? Also on the recovery of grid side, you see the next 9, do you [SPEAKER SRINIVASAN VENKATAKRISHNAN:] So internal budgeting we have done, but it is all based on certain assumptions. So how far those assumptions are maintained, how far those As I said, relevant, that is something which you'll have to wait and watch. We are going through very, very uncertain times. So I think giving any kind of prediction at this stage Maybe very inappropriate, but maybe after second quarter, maybe we'll have some visibility. And perhaps The potential threat of VIB 3 also will be behind us. That will be a point of time when we can probably come out with some kind of an indication how the year looks like. Next question is from the line of Pishar Pardam from Hina Investments. Please go ahead. Yes. Thank you for taking the opportunity. I wanted to get a sense since SLA is going so much capital. Over 3 to 5 years, what kind of cost income ratio reduction can one expect? I understand you will have a lot of constraints because of the restructure, structures fixed and union and all. So This is more like what we expect. How far will the Delhi market happen to be seen? We would like to be as efficient as The best of the institutions irrespective of the ownership. It should be irrespective of ownership. [SPEAKER SRINIVASAN VENKATAKRISHNAN:] So in that context, I feel that since we have got distribution reach of more than 50 to 1000, which is spread out across the length and breadth of the Rural, semi urban, metro, all locations. In my mind, we are moving away from the pure banking to The status of a financial superstore and then if at all it becomes a reality, we can perhaps leverage She is 20 2000 plus branches. Our distribution of products from our various companies as well as apart from dispensing The banking related services. Having said that, I could not be out of place to mention that when it comes to The various products from our subsidies, it's actually a blue ocean opportunity for us. And if at all we succeed in doing that, It will actually shore up our other income significantly. And also it will be the pink light also in many respects. He'll probably help us in improving our ROA and as well as ROE. Thank you so much, Mansur. If one looks at your subsidiary, where already in terms of performance, Yes, in terms of return ratios and expense ratios and all. Only in bank where one feels that there's a lot of scope. I mean if you look at, for example, Madras Finance, they've managed to significantly reduce their cost income ratio. They are already very efficient and we have best in class ratios. It's a bank where I think There is a key number of scope of and if you look at, for example, Badakh Finance have reduced the cost significantly over the last 4th year. I think we are actually taking some steps. Maybe it is too premature for us to talk about that in this Analyst Meet, but maybe another quarter or 2, we should be inefficient to articulate those thoughts also. That should probably help us in reducing our cost. But the answer which I gave you was essentially From the point of view of improving our other income because in the cost to income ratio, income is a very significant component. And if at all we can improve our other income, it will go a long way in terms of helping us in reaching our Cost to income ratio goals. And as I mentioned that we would like to be best in the as far as this industry is concerned, as far as the cost income ratio is concerned. Thank you. Next question is from the line of Ashok Raj Mehra, And Ivan is talking about all the I'm pretty optimistic that you're trying to do well in the next few quarters. And just having further time, I would just like to know [SPEAKER SRINIVASAN VENKATAKRISHNAN:] Thank you very much for your compliments. And when it comes to the sanction limits, which I have not been aware, they are aggregating to Sandoron Around INRILED crores. And the pipeline for the proposals is about INRIL 1 lakh 30,000 crores. And let me share with you, we have sufficient liquidity available with us, and we have enough headroom available in the capital. So we are actually daring to support the kind of a growth in the study. Great, sir. All these My second one data point, Maybe I'll request. Overall, the NCILT filed cases is about INR 2,000,000 crores. But if you want a particular take up of the omnibus of number of days, that's something I can share with you later. No problem. I'll take that. Our detail is not readily available, Ajmerasab, we will share with you. Sir, What we have indicated Earlier also. It remains the same, almost around INR50,000. That is the amount. Yes, somewhere around that. Yes, that's right. That last one is. I think as soon as I think The progress is quite satisfactory when it comes to NSL. So hopefully, it will happen soon. Okay. So let me now comment the recovery. Almost All right. Sir, this other provision, I think my other colleague were also talking and somehow I get And that Narasat, that 2,800 is on account of the NFE, But there's limit relating to those cases which are under IC and they are restructured. So a significant amount of that is on account of that. Okay, all right. That is why the amount was sitting a little high. Yes. Sir, sorry to interrupt you. The next question is from the line of Jaya Mundra from BNP Securities. Please go ahead. Our planning is around 20,000 of which SME is 3,000 and retail sector is 9,000. And I think corporate you mentioned was from 2,008 as well. So what is the remaining? I mean, I just wanted to double check those numbers. No, I mentioned about sales personnel is about 9,000 and SME is at 3,630. So corporate is about 8,000, 7,800 crores. Okay, understood. All right. And lastly, in your annual reportable key Advances to public sector that has declined to PSU Enterprises. Any comments there, sir? [SPEAKER SRINIVASAN VENKATAKRISHNAN:] Public sector advances are somewhere 43% as a share of above Public sector advances, PSUs and government department. Hey, good. I see the year on year, that has declined by around, I mean, by at least 10% or so. Any comments there, sir? No, see, it depends. If at all, some of the public sectors would have repaid also. For instance, most of the public 200 tickets are cash surplus they have repaid. So that is just a part of the game. And moreover, when it comes to Ireland These days, they are having cash surplus and all of them are really trying to deleverage themselves. So I think it's a it is it keeps on happening. Sometimes it will go, sometimes it will come down. Thank you. The next question is from the line of Rajesh Kumar. Please go ahead. Yes. Hi, sir. Just one small question. So just to see the overhead number, So if you see the business increase in development expenses, there is some kind of volatility in that number. So if you could help us what is the reason for such a start date in this quarter? 2 major components. 1, of course, is the we have a large number of VCs now, about 70,000 odd VCs Who are really helping us out. And second is essentially relating to this time we have started going for PSLs right from the 1st quarters onward. So these are relating to that also because it gives us enough leeway when it comes to average private sector loan. So that is something as I said, we decided that we'll start going here for I got PSMCs from the first part of this. So that is these are the 2 major companies. Yes, and C certificate that we have bought, so what is the quantum And Heiko Kumar, be there. So around 60,000 crores PSCs we have bought In the Q1 and I think it would differ and it will be from cash to tranche, we would not be readily available with us. And like the tenure of this, like how much time will you value for 1 year? It is something which is a market related, it will differ from clients to clients. Okay. Thank you, sir. Thank you. Thank you very much. Ladies and gentlemen, with time constraint, we'll get the last question from the line of I don't think we'll have that number. It's readily available with us right now. Otherwise, it will be still in the system, but not readily because. Sure, sir. Secondly, on Agri, sorry, so when I look at not understanding what we saw in FY 'twenty one, but we think that we used to see a fair share in Before us, that was not the case. Is there some near planning before? What explains this? No, I agree the portfolio has changed quite a lot. That is sort of 2,000,000,000,000,000,000,000,000,000,000,000,000 kind of portfolio we can have. About the KCCs would be just about a lakh of crores only. 1 lakh 2,000. 1 lakh 2,000 crores. So the remaining is essentially gold loan, which are, as I said, we have got loans to SAGs and So some investments, credit etcetera, etcetera. So that's how the book the composition of book has undergone a change. So maybe that is perhaps the reason. And when it comes to the KCC, KCC, the repayment happens only according to the dropping figures As per the RBI guidelines. So as and when the cropping season happens and the demand is raised and the behavior at the material point of time gets executed in the accounts. Perfect. And just one last question, any monetization plans during the year, if you have any? Any monetization plan? For the year that is obviously any any sort of sale? I think it is little premature. At a particular point of time, we'll share it all. Okay. Sure, sir. Thank you very much. Thank you. Thank you very much.