Good afternoon, everyone. Welcome to UCO Bank Q3 FY25 Early Responses Call. It is our pleasure to introduce you to the senior management of UCO Bank. We have with us Mr. Ashwini Kumar, MD and CEO, sir, Mr. Rajendra Kumar Saboo, Executive Director, Mr. Vijay Kamble, Executive Director. We will have opening remarks from the MD, sir, post which we will open the floor for the question and answer session. Thank you, and over to MD, sir.
Thank you. I welcome all analysts and investors to this post-Q3 results analyst call. First of all, I would like to share the business performance of the bank in Q3, our guidance, initiatives taken, and planned. Then we will have your observations and our comments on your observations. See, our bank's business has grown by 12.28% in Q3 for the year 2024-25 on a YOY basis, of which deposits grew by 9.36%, advances grew by 16.44%. In the deposits, savings grew by 6.23%, and current grew by 25.74%. Our CASA ratio maintained at around 37.97%, as against 37.61% a year ago. Our CASA growth was around 8.24% on a YOY basis. In advances, our retail grew by 31%. Within retail, home loan grew by 19.36%, and vehicle loan grew by 51.93%. Agriculture grew by 20.04%. Within agriculture, our focus was on SHG and gold loan, agri-related activities.
These are the three components which were growth was there. In MSME, the growth was around 12.75%. If I come to asset quality, bank's NPA, gross NPA has come down to 2.91%. There is a 94 basis points improvement over last year. Net NPA improved by 35 basis points to 6.63%. Our PCR improved by 95 basis points to 96.16%. And our tangible PCR, excluding TW, also improved to 78.90%. That is 350 basis points improvement over last year. Profitability parameters: our net interest income grew by 19.62% on a YOY basis. Our non-interest income grew by 37.75%. NIM domestic improved by 36% on a YOY basis to 3.38%. NIM global also improved by 33 basis points on a YOY basis to 3.17%. Our yield on advances, domestic also improved by 25 basis points to 9.06%. Our yield on advances, global also improved by 22 basis points to 8.70%.
Our operating profit for the quarter improved by 41.73% on a YOY basis to 1,586 crore. And net profit improved by 27% on a YOY basis to 639 crore. I'll now go to the guidance which we have shared at the start of the year. Our guidance was domestic, our deposit growth 8%-10%. We have achieved 9.36% in this quarter. CASA growth guidance was 8%-10%. Our achievement is 8.24%. Credit growth was 12%-14%. Achievement is 16.44%. CASA 37%-38%. We are at 37.97%. RAM mix was 60%-62%. We are at 62.36%. CD ratio we have planned for year 74%-75%. We have achieved 74.45%. Credit cost was less than 1%. Now, for this quarter, credit cost is 0.49%. NIM global was 3%-3.10%. We have achieved 3.17%. GNPA less than 3%. We have achieved 2.90%.
Net NPA less than 0.65%. Our achievement is 0.63% in this quarter itself. Slippage ratio was 1%-1.25%. In this quarter, it is 0.92%. So all guidance parameters have been achieved in this quarter performance. Our CD ratio, which was around 69.93% a year ago, has improved to 74.45% in this year. Growth, I have already spoken. Priority sector, all targets have been achieved for the priority sector lending. If we look at our rating mix, our 81% of our portfolio is, 78% of our portfolio is BBB and above.
Now coming to fee-based income, non-interest income, it improved from INR 861 crore to INR 1,186 crore. That was 100 crore, more than around 100 crore improvement in the recovery in return of accounts. In our fee charges and commission for advances, around from INR 106 crore to INR 130 crore. Charges and commission from others, INR 145 crore to INR 180 crore.
And treasury income also improved from minus INR 25 crore to INR 145 crore. So that was the reasons for our improvement in our non-interest income. If you look at our cost of deposit, our cost of deposit in December 2023 was 4.91%. Now it has improved to 4.90%. Cost of funds was 4.78%, has improved to 4.75%. Cost to income ratio, it was 60.72% a year ago. Now it is 55.50%. Sequentially, quarter on quarter, it is coming down. Our business per employee, which was around INR 20 crore a year ago, it has touched now INR 23 crore.
Similarly, business per branch has also improved from INR 135 crore to INR 150 crore. So operational efficiency parameters, there is a good improvement in the bank. See, we had slippage of around INR 418 crore in this quarter, vis-à-vis INR 860 crore in the previous quarter, and INR 483 crore in December 2023 quarter.
Last quarter, we had one big account that slipped. We discussed that account last quarter. But this quarter, the slippages are across segments. It is not that in one segment it is lopsided. Slippages are there in retail, agri, MSME, and corporate also. But our overall recovery and upgradation in this quarter was INR 1,064 crore. And against cash recovery and upgradation, INR 309 crore, return of INR 1,064 crore in this quarter. And total slippage was INR 418 crore only.
And on quarter on quarter basis, we are seeing that our slippages are lower than our overall cash recovery upgradation in our advances, NPA accounts. If we look at our segmental NPA, our retail credit NPA ratio is 0.74% only. And in our agriculture, NPA ratio is coming down on a quarter on quarter basis from 14.44% in December 2023 to 11.70% in December 2024. Similarly, in MSME, it was 7.46%.
It has improved to 5.78% in December 2024. Now, the SMA stress account, more than 1 crore. We declare every quarter SMA accounts more than 1 crore. The amount of SMA is 0.12% in all three categories. More than 1 crore has come down to 1,468 crore. This is 0.70% of the total advances. Previous quarter, it was 0.79%. And prior to that, a year ago, it was 1.04%. The asset quality has been improving on a quarter-on-quarter basis. Our restructured portfolio is also coming down with repayment on a quarter-on-quarter basis. Our total restructured advances as of December 2023 was 3,663 crore has come down to 2,706 crore. That is a good improvement. But let me also share that on restructured advances, whatever RBI mandated provision is required, that is already there.
In addition to that, we have already made additional COVID-linked provision of INR 530 crore. Though the portfolio is coming down on a quarter on quarter basis, but we are holding on to that provision, additional provision in our books. Capital adequacy of the bank is 16.25, but if we look at nine months profitability and we add nine months profitability into our net worth, then our CRAR will be 17.5%. We have 3,298 branches as on today. As on December, it was 3,263, but as on today, 3,298 branches are there. Our average age of our employees is 38 years, and 74% of our employees are less than 30, 40 years of age. Bank and our team has been working in digital parameters. Our active mobile banking users have doubled in a year's time with a growth of 97%.
Active mobile banking users has also increased by 82% in a year's time, and our digital business, that is opening of RD and FD digitally, has also increased by 81% in one year. UPI transaction volume has also improved by 36% in one year and 10% in one quarter. WhatsApp banking users have also improved by 304%. We introduced WhatsApp banking a year ago. Now, around 5 lakh customers are using our WhatsApp banking in one quarter. Improvement is 71%, but in one year it is 304%. Now, the initiative taken by the bank, bank has launched the last quarter, last to last quarter, bank has launched digital transformation Project Parivartan, where we have planned digitization of at least 25 journeys across various liability and asset segments, of which nine journeys have been made live till now, and many more journeys are under plan.
Every month we will be coming out with the digital journeys. We had planned for INR 6,000 crore of digital business in this financial year, and I am happy to share that on asset side, we have crossed around INR 1,300 crore of digital business, and in liability side, we have crossed around INR 7,000 crore of digital business. That is opening FD, RD, and other deposit products, and current outstanding is around INR 5,000 crore in all those digital business parameters. We have also introduced various enhancements in our mobile app and internet banking, which, as a result, our corporate mobile banking, which is one of the unique mobile banking apps for our current account holders, that rating has also raised to 4.7, and mobile banking for retail customers, mobile banking app rating is also 4.7%. We have also launched various partnerships in our digital marketing space.
That is our discounts with Pluto using UCO debit card, Zomato discounts using UCO debit cards, BookMyShow buy one get one offer, positive pay features on WhatsApp. On Swiggy debit card users, offers are there, and we have also exclusive banking partner with Bali Yatra Utsav, Asia's largest open trade fair in Odisha. On ESG initiatives, bank has been taking various initiatives. We have launched a special concessional rate of interest on EV schemes. We have launched PM Suryodaya scheme, as announced by Honorable Prime Minister. We have also launched a green deposit scheme, where we offer higher rate of interest to our customers than the normal rate of interest. We have also obtained green certificate from CESC for purchasing 25% of renewable energy. We have planted over 22,000 trees across India, and our renewable energy portfolio has also increased to around 3,700 crore in this quarter.
These were the few initiatives which we have taken in this quarter. One more thing, we have given a guidance of around INR 3,000 crore of recovery in this financial year, out of which around INR 2,700 crore has already been recovered in nine months. Further initiatives have been taken to enhance customer service. Digital queue management system has been introduced in high traffic branches for quick and secure and seamless customer experience. WhatsApp banking has been launched, wherein we are providing 35 services in five languages: Hindi, English, Bengali, Assamese, and Odia. Multi-channel feedback system has also been introduced in branches, website, mobile banking, IVR, QR code, queue management system to enhance customer satisfaction. For our retail customers, we have launched UCO Utkarsh, a preferential financial support to students admitted to premier institutes, Aspire 2.0. This is an enhanced education loan scheme for financing meritorious students studying abroad.
For female customers, UCO Advance scheme, special concession rate of interest has been given. Women-centric policy has been introduced in the bank. Policy on learning and development, policy on local bank officer has also been introduced. Bank has advertised around 250 local bank officer posts, which has just gone live last week. Bank is also planning to bring talent by inducting specialist officers in IT, CAs, law, and in risk security officer, HR, fire officer, and economist. For women customers, special incentives have been given in home loan scheme by 0.05% rate of interest. In MSME, 0.25% concession for women under MSME. Education loan, 0.5% concession under IBM model scheme. Special scheme has been launched for MSME and entrepreneurs, women entrepreneurs. UCO MSME Nari Samman, special scheme for women entrepreneurs. Similarly, for women customers, UCO Aparajita debit card has been launched.
That is exclusively for women with enhanced benefits. Exclusive product for savings current and flexi RD for women under the umbrella Pink Basket has been introduced, which is loaded with accidental insurance plus attractive discounts on our lockers and other services. In IT and cyber security, a number of things have been implemented. We have established next generation GenNext network operation center. We have networked all of our branches. We have introduced Re-KYC through phone banking. Tab Banking has been introduced and more than around 50% branches are opening accounts through Tab Banking. Other branches have also been provided with a Tab, and hopefully by this next month all branches will be equipped with the Tab Banking and opening accounts with the Tab Banking. We are also planning to launch CBDC and Eterna card for HNI customers.
That is a Rupee debit card with premium privileges for HNI customers. We are also planning to launch slot booking through mobile banking so that the customer need not to wait. We are also launching now MSME Yuva Shakti for young entrepreneurs, supply chain finance, Forex, PC. So many things are in pipeline. Hopefully in this quarter, things will be getting launched, and next week, next year we will see the operation of all these things going live. We have embarked on a branch expansion plan of 130 branches at the time of start of the year. Happy to share that in our 82nd year of foundation day. From 82nd year to 83rd year, that is on 6th of January 2025, we have already opened around 82 branches, and remaining branches are under process.
And hopefully by March, we should be completing those another 20, 30, or maybe 40 branches by March. So that was on expansion plan. So these are the highlights which I wanted to share with you. I will now pause here and will be available for your questions and answers and queries. Thank you.
Thank you, sir. We'll start with Q&A. Participants, those who have any questions, please raise your hand. We'll take the first question from Divya Pandey. Please unmute yourself and go ahead with your question.
Yes, sir. Thank you for taking my question. What is your total gold loan portfolio, including agri and non-agri gold loan, and how is the growth in that segment?
Gold loan? Yeah. Please go ahead, go ahead, please.
Yeah, so you can answer this and I'll ask the next one.
Okay, okay. So gold loan portfolio is around INR 8,900 crore currently.
Okay.
9,000. Sorry, INR 9,600 crore. So we have a very small gold loan portfolio of INR 9,600 crore. And our growth in gold loan portfolio is how much? 25%?
And also, sir, could you tell the agri and non-agri split?
Yes, yes, I can give you. Kahaan hai? Usko bulao. Let's see. Out of 9,600, agri is around 5,581, and retail is around 2,000, and MSME is around 2,000. So agri is around 50%.
Okay, okay. And sir, my next question would be, so the personal loan segment has grown very sharply this quarter. Though the total portfolio is very small at INR 2,000 crore, but growth looks much higher. Could you just throw some light on that?
See, we have started a digitization program called Parivartan, under which PQPL was one product which we launched.
This product is backed by transactions in the account, customers having salary accounts, customers having regular flow of income into their accounts for the last nine months. Basis those BRE eligible customers were given offer, and they availed that offer. Here I would like to specifically mention that these are the customers who are maintaining salary account with us or pension loan account with us, or are having regular transaction for the last nine months. So basis that this offer is given, it is hardly 1% of our total portfolio.
Okay, sir. Thank you.
Thank you. We'll take the next question from Sushil Choksey . Please unmute yourself and go ahead with your question.
Management on stable numbers.
Thank you. Thank you, Sushil ji.
Management. Sir, I have a couple of questions on both parts of the bank.
Do you think you have to offer guidance or you maintain the guidance?
Sorry, Sushil ji, I was not able to hear.
Your guidance for credit growth this year, looking at the numbers, will you exceed the target or you will maintain the target?
See, our guidance was 12%-14%, and in the last nine months, we have already achieved around 11.5% growth on YTD basis. On quarter-on-quarter basis, if we look, this quarter our growth was around 5.42%, last quarter 2.42%, previous June quarter 3.41%. So our guidance is 14%; guidance now looks to be on a conservative basis. We'll definitely surpass the guidance going by the current trend.
Sir, my next question is on your tax limit concern and your guidance on ROE, ROA. Can you elaborate what is likely to emerge in the Q4 or the very changes likely to happen there?
See, our NIM guidance was around 3%-3.10%. And happy to see that we have achieved our guidance in this quarter and previous quarter. And we have been, our NIM has been improving on a quarter-on-quarter basis. On 31st March, we had 3.03%, then 3.09%, 3.10%, and now 3.17%. That is global NIM. Domestic also, we have improved from 3.02% in December 2023 to 3.38%. So 36 basis points improvement in our NIM in the last one year on a domestic basis. And 33%, 33 basis points improvement in our global. So our guidance continues to be 3%-3.10%. But we will continue to work in improvement of our NIM on a quarter-on-quarter basis as we have been doing the last five, six quarters. And ROE, if you see, our ROE has been improving.
If you look at from June 2023, it was 0.28%, then 0.54%, 0.67%, 0.69%, 0.73%, now 0.79%. So quarter-on-quarter basis, we will see ROE continues to ROE and ROE continues to improve in every quarter.
Where do you see your gross NPA and net NPA number at the year end?
Our guidance was less than 3%. We have already achieved 2.90%.
I'm happy with 2.9%. I'm asking whether you will go to 2.5% or 2.4% by the year end and 0.63%, 0.5%.
Sushil ji, dil maange more. So if everything goes right, then we will further reduce it from 2.90%, maybe 2.80% or something like that.
So my intent of question was, if your profitability is rising, will you provide more and bring the NPA numbers down, or there is like, it seems that you had a smart recovery in this quarter also.
The recovery path is going to help, or is the telecom account having some resolution, which I'm sure some other analysts will ask you later in elaboration? But where is the recovery coming from, technically return of assets or some other recovery, some elaboration? Because I see the number on recovery is better than previous quarters.
Sir, recovery has come out, come from recovery in return of accounts in this quarter also, previous quarter also. We expect the trend to continue, but magnitude may be here and there. But the trend of recovery will come because many customers are coming forward for resolution also for OTS also. So basis on case-to-case basis, we are taking a call to accept the resolution or to accept the OTS amount where we get a value for money that there we accept. So that is one on recovery front.
On our MTNL telecom, we are yet to get any final offer or final. There were certain discussions which JLF has not yet agreed. Final resolution plan is yet to be put in place. So once that is in place, that time we will have some good amount of recovery. But to share with you, we have 100% provided for in that account itself in this quarter.
Sir, how are your efforts working towards digitization and CASA growth? See, if you look at our CASA, we have taken a lot of initiatives I explained in the earlier quarters also. What we have done in this quarter, we have strengthened our zonal resource team. Earlier, our focus was on central office and corporate office resource team. We have strengthened. Now we have given tab to all branches. Earlier, it was around 1,700 branches.
Now the configuration of the tab with biometric is going on. I think by next month and all tabs will be up and running. So that will help me in getting quality CASA customers acquisition when our people go in the market. But with these little efforts, whatever we have taken in the last one year, if you see, our CASA ratio has been maintained in 37%-38% range. We have not seen major decline in our CASA ratio. CASA ratio continues to be around 37%-38%. And that was our guidance also that it will be our endeavor. Going forward also, our focus will be on quality CASA customer acquisition through tab banking, through various salary saving account tie-ups. We have already done a few tie-ups in the last quarter.
Our teams are giving, zonal resource team and head office resource team are giving presentation to various PSUs, MNCs to open salary account of their customers. So some are clicking, some are not clicking. Efforts are on and efforts will continue in this financial year also to see that we are able to maintain our CASA ratio.
Sir, every bank is aspiring that I'll become a consumer bank among PSU banks. Numbers are looking good on many fronts. What are the new products which you have launched as a consumer finance in our bank where other than home loans which everybody talks about, what other products? I understand we have done something on auto loans, specifically asking what product have we launched which is yielding good results at your end?
See, recently looking at the interest of our customers, we have revamped the entire educational landscape for our students studying in India, studying abroad, studying in premier institutes, and also for women customers who want to study abroad. So the entire product portfolio has been revamped. In MSME basis, the request received from various zones, we have launched cluster-specific schemes for the women customers. MSME has launched an MSME Nari Samman scheme for women entrepreneurs with attractive features for young generation. MSME Yuva Shakti scheme has been launched. That is also to attract young entrepreneurs to our scheme of things. As announced by Honorable FM, for digital towards digital push to MSME, basis their digital footprint. MSME Smart Finance scheme has already been launched with digital MSME loans up to INR 25 lakhs. Then GST Smart Finance scheme has also been launched.
That is also attracting a good attraction among the customers. Apart from that, we are working on bringing pre-approved vehicle loan to our existing customers basis their transaction history. Bank has implemented EDW project where 360-degree view of the customer is available. Basis our AI ML, we are able to generate leads and push those leads to our branches. Branches are connecting to those customers and giving special offer to those segmental customers either for education loan, housing loan, vehicle loan. That effort is also started yielding some result in this quarter. These are the initiatives. Yes, for our HNI customers, we are launching a special metal card, Eterna Metal Card, for our HNI customers with various inbuilt benefits to our HNI customers.
For women, we are launching a special card, Aparajita debit card, UCO Aparajita debit card to attract our women customers with special benefits to those customers. We are also planning to launch UCO Wealth. Go ahead. We are also planning to launch UCO Wealth corner at our branches, specific branches, maybe 40 to 50 branches across India. Because what we analyze is that many of our customers are using our account and they are making some investments through various mutual funds, various share brokings. So we want to offer those services to our customers, specialized services. We are planning what we are yet to finalize, what will be the modus operandi, how it will operate, which branches, which customers. So that is also in the pipeline. Yes, please go ahead.
Sir. So this will be all done digitally, right?
Yes, yes, digitally.
So, our app expenditure and what is the outlook on the app which we are trying to enhance the visibility of the app?
Our mobile app?
Yes.
Yeah, mobile app. If you look at our numbers we have given in our presentation also, our mobile active users we have started tracking in the last one year. Earlier, we used to track registered users. Now we have started tracking active users. In the last one year, our active users have improved by around 80%-90%. Our daily logins have also improved by almost double.
Is there a number of what was there last year and what is the number today?
See, today our active mobile users are around 38 lakhs. A year before, it was around 17 or 18 lakhs only.
Sir, second thing I understand you are doing specific product on second-hand car finance on the luxury segment.
This is what I hear from the customer who has done some transaction. What average ticket are we doing and what rate is this finance? Because you are trying to differentiate yourself from other banks who are not doing these products. That's the reason I'm asking that question.
See, we have a product where we finance these vehicles, maybe luxury or not luxury. And we get a kitna rate le rahe hain uspe 11? Car finance pe hum log kya le rahe hain? Nahi, car pe uspe jo luxury wo second hand wale pe. So that is giving us a good yield in the range of 10%-11%, 11% in the range of 11%.
What LTV will be this?
What?
Loan to value?
Loan to value will be around 70-75.
Second thing, sir, my last question in this round, provision and contingency.
Quarter on quarter, we have gone up. I think last quarter we had income tax write-back. This quarter, we have made some additional provision. Can you highlight what is that?
Which was additional provision?
Sir, provision for NPA has reduced and others is increased from minus 156 to 326. I assume there was an income tax.
A catch-up. Okay. Okay, okay. See, provisions on some of the other assets, we have kept a provision of around INR 300 crore.
And are we doing some accelerated provision for ECL loan or what is this?
This is a forward-looking provision. I will not say that ECL accelerated program is a forward-looking provision we are building in within the system.
Sir, my last question to Saboo ji, sir, क्या outlook है आपका treasury में? Sir.
बोलिए.
Good afternoon. Treasury outlook, we all know that the yields are moving in a range.
Earlier, we saw the yields falling and then again picking up due to various geopolitical and other issues. So I think the yields will continue in this. Our estimate and our anticipation is that the yield will continue to fall, means remain in this range. Maybe if we see some good news going ahead in the Indian economy and financial market and liquidity position, we can see 660 type of level. That is maybe we don't know. But broadly, means broadly the range 660 to 680 will continue. I think that is our view as of now.
Sir, in last quarter which you are reporting, 710 is the recovery return of assets. Can we sustain this number in this current quarter or it will be higher or lower?
Recovery in TW?
See, recovery.
See, total, we have given a guidance of around INR 3,000 crore of recovery in this financial year. And there were certain accounts which we are preempting that they will come in the fourth quarter. But that recovery came in third quarter also. So recovery will be in this range, but a little bit of here and there in this quarter also. Because certain accounts which were expected in quarter four, that recovery came in quarter three. So that is the reason that our recovery in quarter three is on a higher side.
Thank you. Congratulations and best wishes for the year.
Thank you. Thank you, Sushil ji. Thank you.
Thank you. We will take the next question from Ashish. Please unmute yourself and go ahead with the question.
Hello, I;m already good?
Yes, please. Yes, please. Ashish, go ahead.
Thank you for the opportunity.
My question is regarding the loan growth. The loan growth in the corporate segment was quite healthy at 5% quarter on quarter. Which segment has been driving this and how is the demand outlook on this segment? What are the total sanctions you have as of date and which sector contributes to it? I want to know on this.
See, if you look at our corporate growth, there were certain segments like road and infrastructure. There was a growth in this quarter, around I think 1,000 odd crore growth in road and infrastructure. That was a completed road project that I also can tell you. Then in metals, there was a growth in this quarter. Certain ethanol projects, iron and steel projects, cement, renewables. These are the projects where we saw some interest coming in.
There are many sanctions which are in pipeline and under disbursement also. Maybe around INR 10,000 crore of sanctions are there which are under disbursement. That will take a little longer because gestation period or moratorium period is for implementation of the project is there. Second, demand is also coming from the data center. We have already done one. Another data center project is also under process. So various, if this is not from one sector, various sectors we are getting interest across the sectors. Yes, please.
My second line is on. So companies marching towards sustainability and having a lot of sustainability initiatives as of now. What is the company's way forward towards having a green portfolio or investing in companies with green projects?
See, if you look at our initiatives which we have started, first we have started from the liability side.
We have started raising green deposit by offering additional interest over normal deposit rate of interest, number one. Number two, we have introduced asset product which encourage customers to buy EVs or solar products and we are offering them an attractive rate of interest. Third, our focus is on renewable projects also and our portfolio has improved and increased in this quarter. This quarter, we had around outstanding is around INR 3,700 crore of renewable energy portfolio. Our focus in the coming quarters will continue to enhance our green financing portfolio by bringing one or the other initiatives, whatever is there. We have also introduced this in our trade rating product also, the initiatives which customers are taking for building their companies as a green company. We have also obtained certification certificate from Calcutta Electric Supply Corporation for 25% of renewable energy certificate.
And then we have also tied up with PCAF for assessment of our portfolio. So that will also give us some indication where we are moving, where we need to go, and how we need to go.
Thank you so much. That's some thoughts for me.
Thank you. Participants, if you have any question, please raise your hand. We'll take the next question from Anmol Das. Please unmute yourself and go ahead.
Yeah, good afternoon, sir. So my question was related to the corporate segment because we have been seeing the banking sector not lending out very easily towards the corporate segment like they used to. So are we seeing that it has already been overplayed and now especially the PSU banks are going to lend more heavily towards the corporate segment in the coming, say, medium term this next fiscal year?
See, if you look at corporate, our growth in corporate on a quarter-on-quarter basis is sustainable. Our corporate book continues to be in the range of 31%-32% of our, sorry, 37%-38% of our total advances. Our RAM segment continues to be in the 61%-62%. And if you look at this quarter also, our corporate book growth is around 14%, whereas our RAM portfolio growth is around 20%. So it's not like that the banks were not giving credit to the corporates. Banks have been giving credit to the corporates on a quarter-on-quarter basis, on a year-on-year basis also. And we will continue to keep lending to all bankable projects which come to us in corporate segment. As I already told in the question before you asked, that we have, in the last quarter, we have funded to basic metal also.
We have funded to road project also. That is a completed road project. We have funded to ethanol projects also. We have funded to textile also. We have funded to iron and steel also, data center also. So wherever bankable project, where cash flow feasibility is there, promoter standing is there, banks, our bank has been funding those projects and we will continue to fund those projects.
Understood, sir. And on the retail mix, if I say, so retail loan growth has been faster than the corporate. So will you be going ahead then your guidance regarding RAM mixture and go beyond 62% or 65% of your portfolio in the RAM side?
See, our guidance is around 61%-62% RAM portfolio. We will continue with 61%-62%. And if it improves, it is so far and so good.
What we have done is we have activated our branch network from where we are getting leads generated. We have introduced hub structure where they are sending leads, and as a result, TAT has improved a lot for housing loan, car loan, MSME loans. As a result, we show we see a good amount of growth in our retail segment, and we will continue to grow in retail and in corporate also, and healthy mix of 62%, I think it's a healthy mix we need to continue to maintain.
Okay, sir, understood. Thank you and good set of numbers. Congratulations.
Okay. Thank you, Ashish. Thank you, Anmol.
Thank you. We will take the next question from Ashish Sanjay. Please go ahead with your question.
Hi sir, good afternoon and congratulations. Yes, sir, firstly on the recovery from return of accounts, that number has increased QQ quite sharply.
Was there any lumpy recovery here? And if you can give more details about this.
Yeah, yeah. I already shared that there was a recovery in one big account in this quarter, which we were expecting in quarter four. And fortunately, that came in quarter three itself. So that is the reason that recovery in quarter three is substantially high than the earlier quarters. And that was a good recovery, I think. I can't tell you the name, but that has come. That is true.
Sector has this come from?
Sector, I can tell you, yes. SEZ. So that is from infrastructure sector.
Okay, sir.
That was from infrastructure sector. There were two, three, two or three accounts and one we were expecting in this quarter, fourth quarter, but it came in third quarter.
Okay, got it.
Sir, and under the retail loans category, you have a sub-segment called other retail loans. What is classified under that line?
See, under other retail loan, we classify our staff loans, loans against FDR, gold loans, co-lending, and any lap plus any portfolio which we purchase from some other under DA purchase. So that also comes under other retail.
The major portfolio here would be which one?
Major portfolio is staff loans and pool which we have purchased, loan against FDR. So these are the three and education loan. So these are the three, four loans. So gold loan. So gold, staff loan against FDR, pool, and education. These are the five components of these other loans. Thank you.
Thank you. Participants who have any question, please raise your hand. We'll take the next question from Sushil Choksey. Please go ahead, sir.
Yes, Choksey ji.
Sir, what is the update on the equity front? We have hired merchant bankers which is visible in public domain. There is a rumor that there is OFS likely also for four or five banks which are in the category where government has to dilute equity as per CB norms. And there is a rumor that you may have to force to do a QIP also. So what is the update between two?
See, as far as OFS is concerned, we are not aware of any such development. What we have approached to the government is for approval of QIP, which we have got the approval in previous quarter. And we have already gone ahead with the selection of BRLMs, legal counsel, everything. We have started meeting investors also. Last quarter also, this quarter also, we have met in the first week of January.
And we will continue this journey after these results also. And hopefully, anytime after these results, we will come for QIP.
Okay, sir. Thank you and good luck on the scene.
Thank you.
Thank you. As there is no further question, I hand over the call to MD sir for his closing remarks.
Thank you. Thank you all the analysts and investors for taking interest and sparing time to attend the post-results phone call with the investors. And we have given a guidance on various parameters. And we will try to make sure that we achieve our guidance, whatever we have given. And as we have been improving our performance in various parameters on a quarter-on-quarter basis, our team will continue to improve on all those parameters regularly and will try our level best to give the best of the results on a quarterly basis. Thank you very much.
Thank you. Good day, UCO Bank Service Funds. Thank you for joining me.
Thank you.