Good evening, everyone. Welcome to UCO Bank Q4 FY 2025 Earnings Conference Call. It is my pleasure to introduce to you the senior management team of UCO Bank. With us, we have today Mr. Ashwani Kumar, MD and CEO, sir, Mr. Rajendra Kumar Sabu, Executive Director, and Mr. Vijay N. Kamble, Executive Director. We'll have the opening remarks from the MD, sir, post which we'll open the floor for question and answer. Over to you, MD, sir.
Thank you. I welcome all analysts to this post-results press conference, sorry, analyst meet through Webex. Let me first share with you highlights of our performance for the quarter ended March 25 and the financial year ended March 25. Overall business growth of the bank, bank's business grew by 14.12% on a YoY basis, and bank crossed INR 5 lakh crore business. So the total business of the bank was INR 513,527 crore. Deposits grew by 11.56%, and savings deposits grew by 5.06%. Current deposits grew by 18.47%. We were able to maintain our CASA at 37.91%. Our advances grew by 17.72%, of which retail grew by 35%. Operating home loan growth was around 18.13%, and retail loan growth was 58.99%. Agriculture grew by 20%. Agriculture growth was well supported by impressive increase in our infra fund, SHG, and gold loan portfolio. MSME growth was 18.55%.
Now coming to the asset quality, gross NPA of the bank has been reducing consistently on a quarter-on-quarter basis. This quarter, our gross NPA came down to 2.69%. That is a reduction of 77 basis points on a YoY basis. Net NPA, again, coming down on a quarter-on-quarter basis, came down to 0.50%. That is a reduction of 39 basis points on a YoY basis. PCR of the bank has been improving on a quarter-on-quarter basis, 96.69%. That is up by 131 basis points on a YoY basis. PCR, excluding TW portfolio, also improved by 704 basis points on a YoY basis to 81.95%. Profitability, our net interest income for the year improved by 18.88%. Non-interest income also improved by 34.91% on a YoY basis. NIM, domestic, improved by 17 basis points to 3.29% on a YoY basis. Global NIM improved by 16 basis points to 3.08%.
Yield on advances improved by 6 basis points to 8.89%. Yield on advances global improved by 9 basis points to 8.55%. Our yield on funds improved from 7.89% in March 2024 to 8.25% in March 2025. That is an improvement of 36 basis points on a YoY basis. Overall operating profit for the quarter ended, we registered an operating profit of Rs. 1,699 crores. That is a 33.48% growth on a YoY basis. For the full financial year, operating profit was Rs. 6,037 crores. That is a growth of 32% on a YoY basis. Similarly, net profit for the quarter ended March 2025 was Rs. 653 crores, with a YoY growth of 24%. For the full financial year, the net profit was Rs. 2,445 crores, with a growth of 47.80%.
Now coming to the guidance which we have given at the start of the financial year and what is our achievement and what is our future growth outlook. Deposit growth, we have given a guidance of 8%-10% at the start of the year. We ended the year with 11.56% deposit growth. CASA, our growth target was 8%-10%. Our actual growth is 6.71%. That is below the guidance which we have given. Credit growth was 12%-14%. Our growth is 17.72%. CASA, we have given a guidance of 37%-38%. We were able to maintain 37.91%. That is within the guidance. RAM percentage, we have given a guidance of 60%-62% and actually 62.73%. CD ratio 74%-75% was the guidance. Actual is 74.94%. Credit cost was less than 1% guidance. Now actual is 0.87%. NIM global was 3%-3.10%.
Actual is 3.17%. GNPA is less than 3%. Actual is 2.69%. Net NPA guidance was 0.65%. Actual is 0.50%. Slippage ratio of our guidance was 1-1.25%. Actual is 0.92%. Total recovery and upgradation of our guidance was 3,000 crores. Actual recovery and upgradation is 4,427 crores. Recovery was surpassed by bigger margin because there were certain NPAs which we were expecting resolution in this current financial year, but we got the good recovery in the last financial year in March quarter itself. Now coming to the growth outlook for the coming this year, deposit growth, our outlook is 10-12% deposit growth. CASA growth is 8-10%. Credit growth 12-14%. CASA we would like to maintain in the range of 37-38%. RAM 61-63%. CD ratio we would like to maintain in the range of 77%.
Credit cost again less than 1%. NIM globally 3%-3.10%. GNPA less than 2.5%. Net NPA less than 0.35%. And slippage ratio between 1%-1.25%. And recovery and upgradation 200 to 1,000 to 2,700 because we have already got some large recovery which was expected in this financial year. We have already recovered in the last financial year. As you all know, we have already successfully completed our QIP of INR 2,000 crores. And with that, plus with the ploughback of profits of this current financial year, CRAR has also improved to 18.49% as it is 16.25% last quarter. CET1 has improved to 16.03%. Tier 1 bond 16.37%. So the bank is well capitalized and there is a growth capital is sufficient available with the bank. Now coming to the approvals by the board.
Board of the bank has approved recommended dividend of 3.90%, as it is 2.80% last year. Board of the bank has also recommended for raising equity or capital raising plan of by issuing 270 crore shares of Rs. 10 each face value in this current financial year. With this, if it happens at the opportune time, the government holding will come down to less than 75%. These are the financial performance and approvals by the board, and now coming to the various segments of growth where we have achieved our parameters. In home loan, our growth was 18%. Vehicle loan 59%. Personal loan around 46%. These personal loans are again salary-backed and PQPL based on our transaction analysis for the last one year which we give. And in the pool, we have taken a pool. Now the pool amount is 6,797 crores.
Now coming to the priority sector, bank has achieved all priority sector segments and there is no breach on any of the parameters of priority sector segment. In financial inclusion also, bank has been registering enviable growth and achieving all targets set by the government. PMSBY enrollment has reached to INR 63 lakh. PMJDY enrollment has reached to INR 28 lakh. APY INR 12.89 lakh. PMJDY account INR 1,449 lakh. Balance in PMJDY account is INR 6,061 crores. Number of BCs engaged by the bank has also increased by 9% to 10,653. If you come to the NBFC advances, then more than 96% are AA and above rated. If we look at A and above, it is 99% A and above rated. Similarly, rating mix also, out of total rated, 80% are rated, of which 77% are above benchmark at BBB and above rated.
Total unrated is 19.75% only, of which again PSU with the government guaranteed is around 7.29% and without government guarantee is 3.64% and others are 8.82% only. Coming to the profitability detail analysis, the operating profit of the bank improved to INR 1,699 crores, and which was supported by net interest income of INR 2,698 crores. Non-interest income of INR 1,392 crores. Operating expenses INR 2,391 crores, of which staff expenses were INR 1,618 crores. In these staff expenses, in this quarter, we have made a provision of INR 180 crores towards PLI for the current year also. In operating expenses also, we have made a provision of INR 100 crores for our IT-related expenditure for the projects which we have already taken with the payments have not been made coming in the next financial year. In the provisions also, we have made doubtful three assets are already 100%.
Doubtful assets we have already made now to 90% provision, and in unsecured substandard also, we have reached 50% provision, and in substandard secured advances, it is 23%. Now coming to the financial indicators of ratios, cost of deposit, cost of deposits of the bank, which were 4.87 last quarter. Now for this quarter, it is 4.90. But year as a whole, cost of deposit increased by 7 basis points and cost of funds increased by 15 basis points for the year as a whole. Cost to income ratio for the financial year 2023-24 was 59.74%. Now for this current financial year, it is 56.99%. Yield on advances also has improved by 6 basis points in this financial year, and yield on global advances has improved by 9 basis points. Yield on funds has improved by 36 basis points in this financial year. Our earnings per share, that is also INR 2.
Now it is 2.04 in this financial year. Book value has improved to 17.53. Business per employee, which was around 20.93 crores in last financial year, has improved to 24.35 crores. And business per branch has also improved from 139 to 155 crores in this financial year. These were the business financial parameters of the bank. Now coming to the stress asset portfolio, our SMA portfolio and restructured portfolio has been coming down on a quarter-on-quarter basis. And if you look at our SMA portfolio, which we declared more than one crore, our total SMA more than one crore book is 1,583 crores, of which only 799 crores is in SMA 1 and 2. 784 crores is SMA 1. So if we look at SMA 1 and 2, more than one crore, the overall percentage is 0.36% only.
If you look at our restructured book, which was at INR 3,500 crores at the start of the year, has come down to INR 1,687 crores, and that works out to 0.77% of the total standard advances. The restructured book is also coming down substantially, and it is reached. It's almost 50% from the last financial year. In NCLT, 100% provision has been made, and around 254 cases are in NCLT with exposure of INR 17,585 crores. CRAR which I have already told, shareholding I have shared, so now I and yes, a few of the initiatives which we have started in last financial year, I would like to highlight a few of the initiatives and the progress made by the bank on those initiatives. Last year in September, bank started a new project called Project Parivartan. The purpose was to create a fully digital-first approach across all bank offices.
Target was that we will be digitizing over 25 journeys in one year time. I'm happy to share that in six months' time, we have already done 14 digital journeys on our mobile platform. We have kept a target of 6,000 crores of business for the digital channels. We have already crossed 6,100 crores in March itself. 14 journeys have already been launched, of which the important was the announcement made by Honourable FM in the last to last budget with the cash flow-based lending to MSMEs. Bank launched various MSME digital journeys, GST Smart, MSME Smart, that is up to INR 25 lakh. Shishu, Mudra, Kishore, Tarun, digital renewal of CC accounts up to INR 10 lakh. All those MSME journeys were launched.
I'm happy to share that ever since launch of these journeys, bank has already clocked INR 200 crores of business through digital channels from MSME journeys. Another 15 journeys are in pipeline. We'll be around 30 journeys in the next three-to-four months' time. 30 journeys will be completed. Bank has also enhanced its WhatsApp banking offerings. As of date, 43 services are available on WhatsApp banking. In the last quarter, six new services have been offered, making it to 43. If we look at our digital adoption, our active digital mobile banking users have been improving on a quarter-on-quarter basis in the last one year. We have almost doubled our mobile active users. Plus, we have revamped our mobile app also. I'm happy to share that our bank's mobile app rating has improved to 4.8.
It is one of the best in the industry across public sector banks. To combat the problem of dual account, the bank initiated and launched a new initiative that was a Pulse Alert Monitoring System. We also integrated with I4C for real-time data on the fraud, digital frauds. We have developed various rules to identify some dual accounts before they trigger any loss to anybody. Enhanced due diligence process has been initiated by the bank. As a result, before they are reported as a fraud by any fraud registry, the bank has been able to suspect and block those accounts before they are reported by any agency. To enhance the services to our customers, we have revamped our chatbot also, that is Uday, called Uday, where account-related 16 services and 14 general services are already made available. Three are in the pipeline.
We'll keep on improving our offerings on the chatbot channel also for the convenience of our customers. In retail segment, we improved all our products, maybe educational products for our customers, pension loan, vehicle loan, housing loan, all gold loan. Every product was totally revamped in the last financial year. We'll continue to work on these products in this current financial year so that we come to the expectations of our customers in this financial year as well. To help or to expand our reach to the MSME, 11 new MSME schemes were launched in the last financial year. This financial year, now the cluster-based financing schemes will be launched by the bank. In HR, bank has already implemented HR initiative, HRMS, and Project Samunnati. We call that, that is HR transformation project. Now that reward and recognition program, learning and development, everything has been completed.
And we'll continue to build on the learning and development policy which we have implemented in this financial year in true spirit so that our people, our employees are skilled in that direction. For female customers, bank has launched specific schemes. Like Pink Basket is one scheme where we offer them specific specialized savings account, current account, flexi RD account, special debit card that is called Aparajita Debit Card has been launched. Under MSME, we have launched UCO MSME Nari Samman scheme for females. We have given a special scheme for study abroad and special discount of 0.10%. On MSME loans, special discount on MSME entrepreneurs is 0.25%. On home loan, also it is 0.05%. In IT, we launched initiated various projects and we completed. So in IT, we have already done NOC, that is Network Operations Center, has been implemented.
We have upgraded network bandwidth that was from 2 Mbps- 4 Mbps and in ZOs, it was 4 Mbps, now it has made to 8 Mbps. Tab banking has been introduced across the branches now. Earlier, it was being done, so last quarter, it has been implemented in all the 3,300 branches, so digital balance certificate also has been launched through mobile banking. Application whitelisting solution has also been implemented. EBG facility has also been implemented. We have also integrated with the NSE for EFDR. New virtual machine setup has been implemented. IT asset management solution has been implemented. Application performance management solution has been implemented. Regional operations center ROC has also been implemented. API banking solution has been implemented. Now we'll be taking benefit of API integration with the various corporates. Overseas core migration upgradation has also been completed.
All these projects have been completed in the last financial year. In this current financial year, we have taken a budget of around INR 1,000 crores. Last year, another INR 1,000 crores was taken, of which around 64% was used. There are a few projects which have spilled over to the next year. This year also, we have taken a INR 1,000-plus crore budget. We intend to bring FXPC application, IDAM, data center consolidation, document enterprise document management system. We want to upgrade storage capacity of UPI, cyber recovery vault, testing setup. We intend to bring near DR site also at Kolkata. Apart from that, CMS supply chain, all these projects are in pipeline. The CBDC is also in pipeline. Now it will be testing. Now, once the accounts are opened, we'll be going for the pilot stage also.
So there are certain ATMs which need to be replaced. So all these things are already in pipeline, which we will work in this financial year to bring new and newer technology. Apart from that, we are also working on robotic process automation. And we are figuring out which are the areas where we can use those process automations. And also, the use cases of AI are being identified. So that in the current financial year, we bring AI into use also. This was all I wanted to share with you all. If anything you want to share, the ED. So thank you all. And now we are open for discussions. Thank you.
Thank you, sir. We'll start the Q&A session. Participants who wish to ask a question, please raise your hands. We have a first question from the line of Mr. Amit Mishra. Amit, you can go ahead.
Good evening, sir. Good evening, everybody. And thanks for the opportunity. Sir, my first question is on your RAM share. So now our RAM share is almost 73%. So what is our ideal ratio? Are we going to 60-40 or 35-65? See, our RAM share is around 62%. And ideally, I think we should be somewhere 65%. Okay, 65-35. Yeah. Sir, out of your total advances, how much is linked to external benchmark rate? See, out of total advances, our link to, give me a second, around 50%, 55% is linked to external benchmark. Okay, sir. 55. Okay. Sir, we have witnessed a really good growth in vehicle loan segment, almost 59%. So specifically in vehicle loan, which sector are we seeing? Two-wheeler, four-wheeler is growing, or which specific vehicle sector is growing? The growth is in four-wheeler only. Our MSME growth is in four-wheeler.
Actually, we have revamped our vehicle loan scheme last year. That has given a result. Our base was very low. On a base of with a branch network of 3,300, March 2024, our vehicle loan per branch was even less than 1 crore. Now we have reached to a level of around 1.5 crore per branch. We have also revamped our incentive scheme for the DSAs also. That has all contributed to the growth in vehicle loan business.
Okay. Thank you, sir. Sir, next one, I may have missed in past quarters. Have we changed any provisioning norms for employee benefits in pas t?
No, no, no. There is no change. Employee norms, provisioning norms for employee benefits, that is governed by AS 15. They continue to apply.
It is. Okay, sir. Sir, you mentioned you have already spent like 440 crores on IT this year. And what would be?
600 crores.
600 crores. 640. And for next year, we are targeting 1,000? 1,000 plus, yes. 1,000 plus. Okay. Thank you, sir. These are my questions. Thank you.
Thank you. We have a next question from the line of Mr. Rohan. So Rohan, you can unmute.
Hello. Good afternoon. So my question is, what is your outlook on NIM as it has declined sharply from 3.38% to 3.22% quarter on quarter? And also, the yields also dropped from 9.02% to 8.9%. What's explaining this? And is this because of deposit is largely stable?
No, no. See, last quarter, we had an interest component of around 42 crore from one of the segments, that is NRLM. So that was over and above our normal interest income.
And that gave us a slightly higher NIM and higher yield in the last quarter, which was not available in this quarter. So that is one. Because of that only. Otherwise, it is not. If you look at our yield on fund, that has improved on a YoY basis substantially.
Okay. Thank you, sir. So the next question is around personal loan book growth has been quite steep this quarter, about 10%-11% quarter on quarter and 46% year on year. Though it is a very small portion of total loan, can you throw some color on it? Because at industry level, we are seeing degrowth. Is this to ETB customers or NTB customers as well?
See, this personal loan is totally to ETB customers, number one. And number two, there are two components. One, who are the salary account holders. Second is our pension account holders.
We are giving personal loans to them. Third is our regular customers who are accounts are being operated for the last nine to 12 months regularly, and we have a criteria of average balance and minimum balance. This is that we offer them PATO facility, so because of this, this has slightly increased, but on a smaller base, the percentage looks large, but if you look at total overall growth in a year, it is only INR 800 crore, but on a percentage terms, it looks very large, but per branch, if you look, it is not even INR 1 crore per branch, but we are mindful of the fact we are not going to NTB customers currently, so our focus is only on our internal data usage. Data analytics team is there. We have an enterprise data warehouse from where we take basically our ETB customers are identified.
And then they are given offer to avail these services. Thank you very much, sir. That's answered my question. And one last question from my side is. What is our total gold loan portfolio and how is that book shaping up in terms of growth, sir? 10,500. See, total gold loan portfolio for our bank is INR 10,500 crore. And we are all in compliance with the RBI guidelines for our gold loan portfolio also. And if you look at gold loan portfolio, it has behavior of a gold loan portfolio in last financial year has been reasonably okay. There is no delinquency. We are observing that ticket size or anything or the NPA or the delinquencies are increasing not like that. Our gold loan portfolio behavior is satisfactory and growth is also reasonable.
Thank you very much, sir. That's all from my side. Thank you, sir.
We have our next question from the line of Mr. Ashok Ajmera.
Thank you for giving this opportunity. And compliments to you, Ashwini Kumar, Sabu ji and Kamble ji.
Thank you.
Thank you, sir. One of the, I think, the best profit, I mean, you have come to INR 2,445 crore of profit as against INR 2,437 crore of loss in 2020. Yes. What a fantastic journey from a loss-making to a profitable. And now consecutive, I think, for the last four years, you are in profit. But this is probably one of the highest, I think, in the last 10, 12 years. Highest profit, yes. Highest profit, sir. So compliments to you, sir, for that.
Thank you.
And the entire team of UCO Bank. And sir, even your growth is phenomenal even in this year also. Like credit, people are struggling.
I think probably you and Bank of Maharashtra, I think these two are the only probably the banks which have gone beyond 17% or even 16%, so compliments for that also.
Thank y ou.
On deposit front also, you are doing well. About almost 11.5%-12%, which others is credit, actually. Deposit is 7%-8%. So having said that, sir, how do you see like you are given a good target for the next year also, but you are a little bit tapered down your targeted number of credit to just 12%-14%, as against 17.7%, which you have already achieved in this quarter itself, so and similarly on the deposit front also, a little bit down, though it is better than others.
So, sir, I mean, do you see that the demand may a little bit come down or because of this geopolitical turmoil and so many changes, so many things happening around and recently what happened in India also. So, is there any impact you see going to be or it's a general assumption that a little bit of credit growth will be lower than what you achieved this year?
See, Rajbhai ji, if you look at our previous year's guidance also, our guidance was 12%-14% in advances and deposit was 8%-10%. And our achievement was in deposit 11.56%. And basing this achievement of 11.56%, we have given a guidance of 10%-12% in deposit. Right? In advances, see, advances are again an opportunity based. Sometimes you get a better opportunity, better pricing, yield, then you go for it.
So like this, and ours is a retail-oriented. We have already done around 62% of our RAM segment is there. So in RAM segment, when we are talking about RAM and India particularly, where the economy is also good, there are no fears. We are doing better than the world. And domestic consumption and market is very sound. So we expect that the RAM segment to continue to grow in the same range. And in corporate, our growth was, if you look at our growth in the corporate, was only 12%. So again, corporate again depends upon a case-to-case basis whether the pricing matches our expectation. If we get good banking proposal, bankable proposal with a pricing as per our requirement, we will definitely go for that.
So it will be a balanced approach towards credit growth in RAM segment and in corporate credit, depending upon the margin available, depending upon the pricing which we are getting. And accordingly, we have kept a guidance of 12%-14% given an opportunity if guidance as we are done in the last year also.
Yes, sir. The point well taken, sir. Now the second one is, sir, about you know very good control you are having on the SMA, like SMA 1, which was 730, 280, has a little bit come up, but SMA 2, which was 420 crore, has come down to 66 crore. So it's like a good control. But what is the basically, are you feeling any pinch in the individual accounts or with this little bit of slowdown, is there any impact, a little bit of delinquency in our recovery?
This thing, though the final number looks good, but on day-to-day basis, what is the experience around the recovery front, sir?
See, if you look upward with this, our recovery from the written-off accounts is also good. I think it was INR 964 crore in this quarter. So going forward, what is our total written-off book and how much do we expect in percentage terms out of that, sir?
See, Rajbhai ji, if you first see the SMA book, if you look at our SMA book for the last three, four quarters and the financial year, last financial year this year, we are upgrading more than INR 1 crore. Generally, other banks are upgrading more than INR 5 crore. We upgrade more than INR 1 crore for the last maybe around two years now.
If you look at our book, our total SMA still continues to be in the range of INR 1,500 crore only. Yes. SMA more than INR 1 crore. 0-1-2, 0-1-2. Sometimes some accounts get back to 0, some account get back to 1, and some account gets slipped to 2, and then they go back to 1. So if you look at total 0.7, around 0.7% of my total SMA is more than INR 1 crore only of the book. My total out of total advance is only 0.7%. And that is a continuous, almost constant. There is no, it is not that there is a surprise in one quarter that somewhere it has gone up and somewhere it has come down consistently. If you look at my segment-wise, we are also declaring.
So in retail, our SMA is in the range of Rs 250-270 crore for the last March, December, and March again. In agriculture also, it is in the range of Rs 150-180 crore. In MSME, it is the range of Rs 500-600 crore. And in corporate, it is in the range of Rs 500 crore. So it is well spread across segments and it consistently it is there. There are few accounts which we have in the corporate segment, around Rs 700 crore, which we are in our watch, which we continue to monitor. Sometimes they come into SMA, sometimes they come out of SMA, but they are continuously paying and paying. There are certain challenges with them. Cash flow issues are there. But these accounts we have seen over a period of the last one and a half years, they have not slipped.
But at times, they come into SMA and then they come out of SMA as well. So on an overall basis, if you ask me from the behavior of our book, I don't see any stress building up in any of the segments, either in retail, MSME, agri, or corporate for the bank. And second, recovery, this last quarter, yeah, recovery last quarter, as I told in my opening remarks, that last quarter we had a very good recovery in one of the accounts which we were expecting. We have targeted for this financial year. That was around INR 841 crore of recovery in one account. Around that was we were expecting in this financial year. But that resolution happened and the money came in the last financial year itself in the March quarter. So that has given a boost to the recovery of the last year.
Last year, our recovery was total recovery was Rs 4,400 and 29 crore, as against Rs 303,127 crore previous year. That has given us a lot of confidence. We have a book of TW account currently also, where takriban 22-23, around Rs 23,000 crore of TW book is still there. There are certain NCLT, Rs 18,000 crore under NCLT only. It again depends upon the resolution when it happens and how it happens and how much we get. There are, if you look at my own book also, that is also now, I think, Rs 5,900 crore of book on book NPA. There are also we target some recovery. Overall recovery, we are expecting that because Rs 900 crore, around Rs 850 crore, we have already taken this year. Otherwise, our initial estimate was that we will recover around Rs 3,500 crore of recovery in this financial year.
But since 840 crore is already come, so we expect around 2,500-2,700 crore in the next financial year overall recovery to come.
Okay, sir. The last question in this round, sir, is on the treasury. Now, with this rate softening and even 20 basis points is just in this year itself, the reduction is there and with next two, three rate cuts, we might go to 6, like 6.1 or 6. So do we expect a good bumper profit coming in the FY 2026 from the overall treasury operations, sir?
Sabu ji, yes, sir.
Yes, sir. Yes, sir. Raj bhai ji, yes. We all are looking at that. You are a man of treasury, sir. Yes, yes.
Thank you, sir. So RBI has already cut the repo rate twice, 25 basis points each. And now we expect, as you have already said, further cuts.
If that happens, definitely the yields will be going down. But because profitability will depend upon, because the RBI has changed the guidelines on investment last year only. So the FVTPL part only will come into the profits directly. And AFS part will go to other only.
So that is one thing. But again, we are active in the market. As you can see in our presentation also, we have plus 2,000 plus portfolio in FVTPL also. And that trading is also taken up by the treasury. So we see a reasonable profit from there. We can't quantify because it is a function of the market movement. So we can't quantify. But yes, we are hopeful of because if yields are supporting, market is supporting, definitely opportunities there. So we are there in the market to catch the opportunity as and when it arises.
So we are hopeful to have a reasonable profit from that also. Already we have declared the profit for the treasury.
Yeah. Good, good, sir. If you permit, sir, one more last question, sir.
Yes, please.
Sir, on the NBFC, on the NBFC front and co-lending space, now the RBI has also a little bit become liberal, saying that the non-priority sector NBFC, also the banks can go for. So what are your views on that? What is our existing NBFC exposure, including the co-lending? Would you like to throw some light on that, sir? What are your plans in future? Do you want to grow that portfolio? How do you plan to do it?
See, our existing NBFC portfolio is around 12, I think 12.5% of our total domestic advances. Right? And if you look at our co-lending partnerships, we have already done around seven co-lending partnerships.
Our total co-lending portfolio under these partnerships is INR 2,200 crore. Given an opportunity, if in the current financial year also, we will continue to evaluate the proposals coming to us. If we match our loan policy guidelines or we are able to modify product and base our loan policy guidelines, we can offer those products through the co-lending partnership. We will continue to that. We will continue to evaluate the opportunities and then take a call basis, the credentials basis, the product basis, the segment. Many things are to be seen. We are open to look at the future partnerships in co-lending space with fintech, with private, non-priority, whatever.
Thank you, sir. Thank you very much for answering all our questions.
Thank you.
Thanks a lot and all the best to you. You continue to perform better than what you have been doing.
Thank you, sir.
Thank you, sir. We have a next question from the line of Mr. Sushil Choksey.
Congratulations to management and team of UCO Bank on excellent stable numbers and the QIP which you concluded in the last quarter. Based on current quarter CASA, which we have ended with now falling interest regime, Sabu ji already answered on the treasury outlook that the RBI may drop two more times, maybe more also. And second thing, most of the banks have started dropping rates where deposits are concerned. What will we do differently to strengthen our CASA to a sustainable growth path and compete with larger banks?
See, Sushilji, if you look at our CASA, in the last financial year, if you compare CASA of other banks and CASA of our bank on a quarter-on-quarter basis, we have already given a guidance of 37%-38%, and we are well within the guidance in the current financial year, 37.91% we maintained CASA. We have done a lot of initiatives in the last financial year to garner CASA, to improve our offerings to the various walks of life, like for students, for females, for salaried customers, for non-salaried customers, for current account holders. So for everybody, we have done a different type of product, and we have bundled those products with various freebies or offerings by way of pre-insurance or by way of some concessions or waivers. Like that, we have already bundled all those things. So that has resulted in opening of new account.
Then another thing which we started last year, if you remember, was the tap banking. So initially, we started tap banking with 500 branches, reached 2,700 to 2,600. And then now, in last March quarter, we have given tap to the entire 3,000 plus branches. So now our onboarding is through digital tap banking by reaching out to the customer. Earlier, a year back, we were 100% dependent on the walk-in customer. Then few of our branches were able to reach out to the customers. Now, by this March end, all our branches are equipped to reach out to the customer for opening and savings account. Not only savings account, we have already enabled current account for proprietorship and individual through tap banking also. That has also been enabled.
Now, what else we are doing is we are trying to build a functionality in the app so that whenever our staff or employee reaches out to customer for opening or for anything, he can undertake transaction also sitting at his office through app banking. So that functionality also we are bringing so that customer need not to visit. Apart from that, through mobile app also, we are onboarding on various journeys which will enhance our customer experience and customer offerings as customer engagement will improve. The purpose is to improve customer engagement. Since many of our customers are already into investment space also, instead of saving, they are investing in mutual funds, they are investing in shares, they are investing in various securities. So we have already a platform which gives these services.
In addition to that, we are also trying to have a partnership with NSE or BSE so that we partner with them also, so that we offer our mutual fund opportunities to our customers through those platforms. That engagement is similarly insurance partners also will be onboarding. Anybody wants insurance, that also can onboard through our mobile banking app or internet banking. We are also bringing now total omnichannel experience also. That project is also in pipeline. Bank will continue to do enhance customer experience, whatever, improve offerings, though we have already done once, but we will continue to reinvent those offerings basis with customer expectations in an ongoing basis so that we engage more and more with our customers that will enhance and that will enable us to maintain our CASA ratio also. This is my feeling.
When you are doing a good job and you are implementing so many digital technologies, segment to segment and product to product-wise, whether it's a doctor, lawyer, student, MSME customer, all that, when interest rates are falling, I am quite sure that your CASA can exceed 40%. Your guidance may be conservative. I'm fine. But looking at strength because we are showing positivity on credit, a sustainable CASA when the interest rates are falling may take the bank to a higher height. And that's the reason I was suggesting. Second thing on treasury, sir, on treasury, the yields will fall. We will make good money on bonds which we are holding on AFS, HTM, whatever we encash based on our CD ratio which you would like to maintain.
What are we likely to different because we also have international presence and domestic presence that today majority of the corporates are in a position to borrow through GIFT City. Will we enhance our margin by taking some exposure on corporates which enables for bank to perform better? Maybe it's a one-up bond, three-up bond, or six-up CPs. Could we do something better which mismatch can be maintained?
Sorry, Sushilji, we missed you in between. We could not grasp the entire question. Please, last part.
Last part for us. Basically, yeah, sir, repeat [foreign language] Basically, [Foreign language] GSEC. That is what my question is. Other than GSEC. Other than GSEC. So you are talking about non-SLR book, right? Corporate bonds. Corporate bonds. Yeah.
So yes, we are active in corporate bonds category also, and we have improved our Non-SLR book also. You can see there have been some certain maturities during the year from earlier discom bonds. So now we have already means front-loaded our deployments in corporate bond category also because we know the yields were attractive, quite attractive earlier before three, four months back. So we have done that investment also, and we will continue to see the corporate bond segment as well in our investment book other than the GSEC and SLR book. Though we have reduced our SLR book, if you see year on year, we have reduced our SLR book from around 25% to 23% to augment our CD Ratio.
But I think we will continue to maintain around these levels, and we will further enhance or augment our non-SLR book as well through the corporate bonds and whatever opportunities comes into that segment. I think that will support our yield overall, yield on investments. That is correct. How are you shaping up on the international book? Similar growth opportunities or with the falling yield, there is pressure there? So in international book also, we have two branches, Singapore and Hong Kong. They are also quite active, both in lending and as well as investment also. So we have a little book of investment overseas as well. And yields, yes, of course, the yields, falling yields, that means getting more opportunities to raise the cheaper funds also and to deploy that. Yes, the pressure is there on the margins.
But still, we are able to get good deals into the overseas market also, on lending side also, and in investment book also. So we are quite active in overseas book also. So that will also continue. And that will support our overall profitability. Sir, you answered the previous question, this question on co-lending with RBI very elaborately saying now that a bank of our size or any bank can get into partnership which enables banks' growth, whether it's MSME loans or any other category of loans which you know better. What will we do differently or like every other big bank, we'll only tie up with AAA and AA and continue the process, or we'll identify a partner who's good on process but doesn't have the credibility because he may have the net worth but his rating may be not AAA and AA?
See, there is no limitation on our part that will go only with AAA or AA. We'll go with any NBFC or partner or bank, whatever, with good standards, processes, and their NPA percentage. So there are certain parameters which are defined in our loan policy document that what type of partnership we can onboard with co-lending. So whichever partnership fits into our criteria, so we'll be open to look at all those partnerships and onboard with them for the co-lending purposes. So rating is not the only criteria. If the rating is AAA or AA, but the NPA percentage of the NPA or the part of the NBFC is high, that does not mean that I'll go with that NBFC itself merely looking at the AAA rating.
There are many other factors which are stipulated in the board-approved policy for the co-lending which we look into, and then we arrive at a score that we may be in, where we need to enter into a relationship. So we'll continue to do evaluate all relationships which come in our way, and naturally, their processes, their recovery mechanism, their underwriting standards, we will evaluate, and then we'll go ahead with the partnership.
Okay, sir. Sir, last question on the credit side growth. How are we seeing what is the book position in terms of sanctions which are available, which are not disbursed? How is the pipeline looking because with whatever is happening led by U.S. direction on the trade, India may attract a lot of trading manufacturers and opportunities because a lot of goods may not get shipped from China.
So I understand we may not get into any kind of a trade situation which impacts our banks. But manufacturing as well as global demand supply chain, India may attract a larger trade finance situation, including manufacturing opportunities. How are we locating or citing those opportunities in our bank, or we are creating some opportunities by already talking to customers? See, Sushilji, our sanctions which are already in pipeline, which are likely to be disbursed over the period of next one year, in an area of around INR 10,000 crore, where we have already given sanctions and which will be availed. Again, it again depends upon a scenario that time when the opportunity comes to lend or to borrow whatever. But we have already pipeline of around INR 10,000 crore in various segments which is available.
So far as opportunities which we are exploring, we are already looking at various lending opportunities in various sections in manufacturing. Also, our teams are talking to various customers. They are also trying to figure out if any particular product is required which needs to be, like for MSME, we have developed around 11 products in the last financial year. For any product for any industry is required, we are also working on a cluster-based product. For example, a simple example I will give you like tiles. So there are certain tile clusters. So we are working out for a product that will cater to the tile cluster requirement. Similarly, our team is working on various requirements and trying to figure out the possibilities where our customers are in the process of entering into some ventures for taking the benefit of this trade situation which is emerging now.
Look on those opportunities. We are open to bringing new products also to tap those opportunities. Whatever extra mile we need to go, we will definitely go. Sir, understood that you are taking a lot of initiatives to capture the segments which are going to be emerging with us, and the bank would fructify on a benefit. Sir, thank you for answering all my questions, and good luck for the year to come.
Thank you.
Thank you, sir. That will be the last question. MD, sir, any closing remarks?
So thank you to all the analysts for post results, phone call, and I thank you all the analysts for showing interest in UCO Bank. And we will continue to perform as we have been doing in the last financial year on a quarter-on-quarter basis.
Bank will continue to put in best efforts to improve its performance, and we expect that the same support from the analysts for our bank to continue in the times to come also. Thank you very much, all the analysts. Thank you very much. Thank you for showing interest. Thank you.
Thank you, everyone, for joining the UCO Bank earnings call. We will disconnect for now.