Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
BANDHAN BANK LTD (NSE: BANDHANBNK) Q4 2026 Earnings Call dated Apr. 28, 2026
Corporate Participants:
Vikash Mundhra — Head of Investor Relations
Rajeev Mantri — Chief Financial Officer
Analysts:
Piran Engineer — Analyst
Anand Dama — Analyst
Ankit Bihani — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Bandhan Bank Q4FY26 earnings conference call. As a reminder, all participant lines will remain in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing Star then zero on your touchstone telephone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Vikash Mundra, head of Investor Relations for opening remarks.
Thank you. And over to you.
Vikash Mundhra — Head of Investor Relations
Thank you, Ram. Good evening everyone and welcome to Mandan Bank’s earning call to discuss our business and financial performance for the quarter and Full year ended 31st March 2026. Thank you for joining us today. We truly appreciate your time and participation. During today’s call, we will walk you through our operating performance, key developments during the period and our strategic clarity is going ahead along with our view on the operating environment. Joining us this evening are Mr. Patha Pratim Sengupta, Managing Director and CEO, Mr.
Ratin Kumar, Case Operating Officer, Mr. Rajendra Kumar Babbar, Executive Director and Chief Business Officer, Mr. Rajiv Mantri, Chief Financial Officer and other members of the Senior management team. I am Vikash Mundra, Head of Investor Relations. Following the management’s remark, we will be happy to take your questions on the quarter’s performance and our outlook. With that, I would now invite our managing director and CEO Mr. Paka sir to share his opening comments. Over to you, sir. Thank you, Vikash.
Good evening everyone and thank you for joining us today. On behalf of Bandhan Bank, I am pleased to welcome you to our earnings call to discuss the financial performance for the fourth quarter and full year of FY26. We appreciate your continued trust on us. This has been an important and challenging year for the bank and we look forward to sharing our perspectives on the quarter, the evolving operating environment and and our priorities going forward. This quarter marked an improvement across many key parameters reflecting strengthening fundamentals across our core businesses.
We saw encouraging momentum built through the quarter underpinned by disciplined execution and a sharp focus on balance sheet quality. On the asset side, advances continued to grow at a healthy space. The EV segment has not only stabilized but also delivered good sequential growth reinforcing our confidence in the portfolio. At the same time, our secured book continued strong growth trajectory and adding resilience to the overall loan portfolio. On the liability side, we made meaningful progress in improving the quality and granularity of our deposits.
CASA growth was strong during the quarter and retail deposit mobilization continue to grow at an elevated trajectory. In parallel, we consciously reduced the share of high cost bulk deposits which has helped strengthen the liability profile and improve granularity going forward. These actions are reflecting in our profitability metrics as well. Margins showed an encouraging upward trend during the quarter supported by the sustained reduction in the cost of funds. Fee income also saw a healthy pickup led by the strong growth in recurring and predictable streams such as processing fees and third party products income, further enhancing the stability of our revenue profile.
Asset quality trends during the quarter were constructive. We saw not only a decline in slippages on a sequential basis but also a meaningful improvement across SMA backups. This reflects improving portfolio behavior and the effectiveness of our early warning and monitoring mechanisms and improved collection efficiency. While the progress this quarter has been encouraging, we remain clear on the areas where we are sharpening our focus further. Granular deposit growth including CASA continues to be a key priority and we are intensifying efforts to deepen customer engagement, create digital journeys and enhance product propositions to further strengthen our liability franchise.
Operating expenses were elevated during the quarter due to some non recurring items and we remain focused on driving tighter cost discipline and improving operating leverage over the coming periods. Additionally, even as slippages and SMA trends improve, we continue to place strong emphasis on recovery efforts, limiting incremental stress and moving steadily towards our medium term credit cost aspirations. This remains a core area of management focus. Overall, the quarter reflects improving fundamentals, strengthening business momentum and continued balance sheet resilience.
We believe the actions we are taking today will position the bank well for sustainable profitable growth over the medium term. While my colleague and CFO Mr. Rajiv Mantri will shortly walk you through the financials in detail, I would like to highlight a few key performance indicators from the fourth quarter of FY26. At the end of FY26 our gross advances to close to rupees 1.54 lakh crore delivering a healthy 13% YoY growth. Deposit balances scaled up to 1.66 lakh crore supported by strong traction in retail and CASA deposits, reflecting our strategy of strengthening the quality and sustainability of our liabilities.
Retail term deposits continue to scale up at a strong pace recording growth of over 30% YoY reflecting growing customer confidence and the effectiveness of our brand centric distribution strategy. CASA balances strengthened sequentially and now account for 29% of total deposits. Consequently, the overall retail deposit composition including CASA and retail Term deposits improved further to 74% reinforcing the stability and granularity of our deposit base. Our focus on optimizing the composition of the loan book continued with the share of secured lending remaining largely stable over the quarter.
The pace of growth of secured book over the last year has been strong enabling us to achieve our targeted portfolio alignment earlier than planned. We expect to sustain the current mix in the near to medium term with gradual increase. The quarter saw healthy margin expansion which means improving sequentially to 6.2% as funding costs softened, credit costs continued their downward trajectory and asset quality metrics strengthened with gross and NET NPA at 3.3% and 1% respectively and provision coverage at 85% including technical write offs for Q4.26.
Our net total income stood at 3566 crore while our operating profit was 1441 crore. I’m pleased to inform the bank reported a PAT of rupees 534 crore for the quarter depicting a growth of 68%. Y o y Our capital position remains robust. The capital adequacy ratio improved and stands at 18% and tier one capital and at 17.3%. This provides ample headroom to support the future growth. We also continue to expand our distribution footprint, taking the branch network to 1955 branches during the year. Apart from adding new branches, we have upgraded most of our housing finance centers to full fledged banking branches and some of them also got merged with the existing branches.
Further, we also have 4400 EV banking units spread across the country. This expansion and reach enhance and further strengthens our ability to serve customers more effectively. Furthermore, I am pleased to inform you that the Board of Directors has recommended a dividend of rupees 1.50 per share subject to the approval of the shareholders at the forthcoming annual general meeting. To conclude, the performance this quarter reflects the tangible progress we have made across growth, profitability, asset quality and balance sheet strength.
The improvement we are seeing is broad based and driven by a clear strategic direction, disciplined execution and a sustained focus on building a resilient and sustainable franchise. While we remain mindful of the external environment and accessing its implications, our priorities remain unchanged. Strengthening our core businesses, improving the quality of growth, driving efficiency and consistently enhancing shareholders value. With a strong capital position, improving fundamentals and a clear roadmap ahead, we believe Mandan bank is well positioned to deliver steady and sustainable performance going forward.
With that, I would now like to hand over the call to our Chief Financial Officer Srirajeev Mantri who will take you through the financial performance in greater detail. After that, we’ll be happy to take your questions.
Rajeev Mantri — Chief Financial Officer
Thank you.
Vikash Mundhra — Head of Investor Relations
Thank you Pata sir. And a warm welcome to everyone on the call. We’ll begin by reviewing the bank’s operating performance for the quarter. I will briefly cover the key financial highlights. Along with it, we’ll also discuss our business progress over the period. We’ll start with the Advances portfolio where the development this quarter underscores the steady headway we are making in repositioning and strengthening the balance sheet. As of 31st March 2026, the loan book stood at Rupees 1.54 lakh crores delivering 13% year on year growth and a healthy 6% sequential expansion supported by momentum across all major businesses.
The EEB portfolio at Rs. 53,906 crores remains lower on a yearly comparison which was an industry wide phenomenon, but it posted a strong sequential growth of 8% during the quarter. Growth in the non EEB segments remained robust with the portfolio expanding 25% year on year. This book represents close to two thirds of total advances reflecting continued progress in portfolio diversification. Within this retail assets recorded strong growth of 46% year on year, driven largely by secure products such as commercial vehicles, construction equipment, auto loans and gold loans.
Wholesale banking also delivered solid expansion of 33% year on year aided by deeper client engagement and disciplined execution. Secured book grew 25% year on year and now forms nearly 56% of the overall portfolio supporting further improvement in the asset quality and risk resilience. Overall, the advanced mix is more balanced and deconcentrated with no single segment dominating the book. EEB Group lending accounts for 23% of advances, small business and agri loans at 12%, wholesale banking 31%, housing 23% and retail loans nearly 11% of total advances.
Turning to liabilities, the total Deposit stood at Rupees 1.66 lakh crore as of 31st March 2026, reflecting a 10% increase over last year and a sequential growth of 6% compared to the previous quarter which was broadly tracking the expansion in advances. Growth was consciously moderated as we focus on strengthening retail LED deposits without tapping incremental bulk funding. A key highlight has been the continued moderation of bulk deposits which declined 7% year on year. Share of bulk deposits now stands at about 26% of total deposits down from 31% last year, reflecting a clear and deliberate move away from higher cost less stable funding sources towards a more resilient and granular liability structure within our bulk deposit base.
It is also important to Highlight that around 89% of these deposits are non callable in nature. This provides meaningful visibility and stability to our funding profile. Our retail deposit franchise continues to scale well. Retail balances including CASA and retail term deposits grew 18% year on year. Retail term deposits in particular showed strong traction with 30% year on year growth underscoring customer confidence and deeper engagement with the franchise. On CASA balances increased to Rs 48,752 crores delivering strong 14.1% sequential growth driven largely by a sharp pickup in the current accounts.
Savings balances also moved up 7% during the quarter. As a result, the CASA ratio improved to 29.3% up by nearly 200 basis points quarter on quarter. Let me now turn to asset quality where we continue to see consistent improvement across the key parameters reflecting better portfolio behavior and disciplined execution. Starting with collections performance strengthened further during the quarter. Overall collection efficiency excluding NPA improved to 98.9% in March 2026 up from 98.1% in December 2025.
Within the EEB portfolio, collections remain strong with quarter wide efficiency at 99.3% versus 98.2% in Q3 FY26 and for the month of March specifically it was 98.6% up from 98% in December. This represents the collection efficiency x NPL. Additional details for this is available in slide 22 of our Investor Deck. If we talk about the Collection Efficiency x bucket that reflects even a better trajectory. It used to be at 99.3% in quarter three has improved to 99.6% for quarter four and in fact for the month of March it was at 99.7%.
Improvements are equally evident in slippage trends. Gross slippages at the bank level declined sharply to rupees 1,028 crores in Q4 compared to rupees 13. 14 crore in the previous quarter. This moderation was largely driven by the EV segment where slippages reduced meaningfully to Rupees 690 crores compared to Rupees 942 crores in Q3FY26. At the same time, recoveries and upgrades improved sequentially though marginally, taking a total to rupees 360 crores during the quarter. Early delinquency indicators are also moving in the right direction.
In the ebay book, the 0 to 90 DPD pool declined to about 3% of advances down from 4.6% in the prior quarter with the sharpest reduction seen in the SMS 0 category. Please refer slide 23 of the Investor Deck for more details. As a result of these trends, inherent asset quality metrics Strengthened further. Gross NPLs remained stable at 3.3% while net NPAs improved to 1%. Credit cost moderated to 2% for the quarter compared to 3.3% in Q3 and stood at 3% for the full year of FY26. Provisioning coverage remains compatible with PCR at 71.1% which rises to 74.2% if we include the provisions against security receipts and it rises to 84.9% when adjusted for technical write offs, which means including technical write offs.
With that I move on to the financial performance for the quarter. Beginning with Net interest income for the quarter stood at rupees 2,796 crores reflecting a 1.4% year on year growth and a 4% sequential increase. This was accompanied by strong expansion in margins with nims improving to 6.2% up from 5.9% in Q3. The margin uplift was primarily driven by nearly 23 basis points quarter on quarter reduction in deposit costs along with a 14 basis points improvement in advances yields. Turning to other income performance was encouraging with growth of 10% year on year and sharp 12% increase over the previous quarter.
Within this the third party products distribution income rose significantly by 34% year on year reflecting improved branch level penetration and stronger cross sell execution. Processing fee income also rebounded supported by higher disbursement volumes especially within the EEB portfolio. Moving to expenses the operating cost for the quarter came in at Rupees 2,125 crores representing a 10% increase. Sequentially this was largely attributable to non recurring items namely PSLC related costs and technology expenditures on a full year basis.
However, operating cost growth remained well contained at 9% year on year while the OPEX to average assets ratio rose to 4.4% for the quarter. Due to these few non recurring items for the full year FY26 the ratio remained within our guided level and was at around 4%. Consequently, operating profit for Q4 stood at Rupees 1441 crores. After accounting for provisions and taxes, the net profit for Q4 was rupees 534 crore representing a 68% increase over the same period last year and 159% increase over the previous quarter.
Return metrics for the quarter also strengthened with return on assets for the quarter was at 1.1% and the return on equity was at 9% reflecting improved operating efficiency underlying profitability. Briefly turning to the full year performance, NIF for FY26 stood at rupees 10,830 crores, decline of 5.8% year on year on account of moderation in NIM led by continued expansion of secured book and impact of the repo rate cut. Operating Profit stood at rupees 5855 crores which is reflecting resilience in core earnings.
NIM, opex to assets and credit cost for FY26 were 6.1%, 4% and 3% respectively. Higher credit cost was an account of pressure on the EV book industry wide phenomenon that we saw layout during the year. Net profit for the full year FY26 was rupees12.24 crore resulting in an annualized ROA of 0.6% and ROE of 5%. To summarize, the quarter reflects steady progress across growth, asset quality, margins and balance sheet resilience. Our actions for the past two quarters are translating into more stable portfolios, improving profitability while staying disciplined on risk and cost.
We remain focused on sustainable growth, strengthening the liability franchise and further improving the return metrics. With that, I’ll now hand it back to the moderator and we’ll be happy to take your questions.
Questions and Answers:
Operator
Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Byron, engineer from clsa. Please go ahead.
Piran Engineer
Yeah. Hi team. Congrats on the quarter. Am I audible?
Vikash Mundhra
Yes. Hi, Dhiran. Yes. Yes.
Piran Engineer
Yeah. Hi. Hi. Hi. Yeah, good evening. So this first question is what led to the strong average car growth this quarter doubled? Yeah.
Vikash Mundhra
Yeah, I think Suresh can. Yeah, we’ll have Suresh to answer this. We had focused on current account affluent segment where we could manage a good growth in the current account at the granular level month on month which has resulted in the total growth which has happened throughout the year.
Piran Engineer
Okay. So. And also seasonality in this. Right. It won’t fall in one queue.
Vikash Mundhra
These are small SME customers who have opened current accounts with us. There is no seasonality.
Piran Engineer
And
Vikash Mundhra
Our task department has also continued to grow deposits from the various trusts. That is also added the results of all the business initiatives and efforts. Right. Geared towards improving the credit accounts.
Piran Engineer
And is there any particular target car ratio that we have in mind?
Vikash Mundhra
So we’ll continue to improve. So that is, we have not yet crystallized the target to what percentage we have. But definitely our focus is that we will continue to improve. Last year also we were at 31%. The sooner we achieve this milestone we’ve set up a goal to fix our next target. Yeah, I think our overall CASA if you see has gone up from 27.3 to 29.3. Within that car has improved further. As partas have mentioned, we’ll continue to improve it further. We’re also broadband and introducing more products within the table of current accounts and savings that will help us in terms of improving the CASA further.
Piran Engineer
Understood. Okay. Okay, fair enough. Secondly, how are we thinking about neutralizing our PSL shortfall and go back to that era of selling PSLC rather than purchasing pslc?
Vikash Mundhra
So a number of steps have been taken in this regard. So this year the cost has been definitely quite high. And in the Q4 also we have to incur a cost of around rupees 60 crores. So what we have done is that we have revamped our entire trade process in our EV segment and also focused on our direct agriculture loans. So the effect of these are going to come. So this year we are expecting that the cost would come to, I would say almost 50% to what we have incurred last year. That is our aim this year going forward.
Next year it will be almost neutralized or coming to zero. And after that we will continue to earn from this PSL portfolio.
Piran Engineer
And so this is all from direct agri loans.
Vikash Mundhra
This will be more from the EV segment also where allied agree loans will be covered. And also so and also the agree loans also. And also the small marginal farmers, they also improved on the process that we have for microfinance loans. The EEB segment and the percentage of EB loans volatile for PSL has been improving steadily which will also help us going forward.
Piran Engineer
Okay, but then Rajiv, what. What sort of EB loans today do not classify for psl? And going forward they will classify. Like what is the change if you can.
Vikash Mundhra
No, again I’m telling you that it is more of a revamping of a process. So currently what was there? The agriculture of the allied agriculture loan that we are giving it are not getting captured into our system. So we have made that enable. And I can tell you that currently a year ago it was only 10% or 15% of the EVs which were coming under the CSL qualifying for CSL now it has already increased to 40%. Going forward it will increase to 60, 65%. So the. So the revamping has already been done and you see for the RBI also the circular clearly mandates that you have to follow certain process and procedures to get them qualified.
So those steps have been taken. So and we are now already we are seeing the green shoots. As I’ve told you that almost 40% now has been covered of the EV segment. So going forward this percentage would increase. And apart from that we are also focusing on the agriculture loads that is a direct agriculture loan which will have the PSL effect.
Piran Engineer
Understood. My next question is about the vehicle business Vehicle finance now with the book is 56000 crores. It’s a decent size. Can you talk a bit about it? How much? Firstly who’s our typical customer who comes to us? Secondly, how much of the cross sell happens to own Deposit Customers vs Open Market? And is this entirely car loans or is it two wheeler, CV etc. Also?
Vikash Mundhra
Yeah, so Hira will be answering. He’s our retail head. Yeah. So this is like to answer your first question the vehicle loans includes two wheeler as well as car loans. And the majority of this customer segment is salaried and self employed mix. But the majorly it is salaried segment when it comes to other vehicle finance which you talked about is commercial vehicle and construction equipment. There are major focus currently is on a strategic and super strategic customer and some portions about 9 10% of our customers are retail who are holding the fleet of for less than 10 vehicles.
And about the cross selling. So currently about almost 20% of our volume comes from our own customer which we call it, you know existing branch customer. So that is about 20%.
Piran Engineer
Okay so just broadly what is the mix of loans between CV, PV two wheelers.
Vikash Mundhra
Okay so about 3000 crore is commercial vehicle, about 1700 crore is construction equipment. About 1800 crore is car loans and about 900 crore is two wheeler loans.
Piran Engineer
Okay, this is perfect. Yeah, that’s it from my end. Thanks and wish you all the best.
Vikash Mundhra
Thank you.
Operator
Thank you ladies and gentlemen a reminder if you wish to ask a question please press star and 1. We take the next question from the line of Zee Wan Gao from Schonfield. Please go ahead.
Vikash Mundhra
Thank you for the opportunity.
Anand Dama
Just on the operating expenses you mentioned there are some one off sectors. Do you mind give some color quantifying.
Vikash Mundhra
There is some disturbance. Can you just repeat? Yeah. Can you repeat the question?
Anand Dama
Yeah. Am I audible
Ankit Bihani
Now?
Vikash Mundhra
Your voice is breaking. Yes, better now
Ankit Bihani
Okay. On the operating expenses you mentioned there are one OFF factors. Do you mind quantifying those one off factors and retro bit?
Vikash Mundhra
Yeah. So I think during the quarter we had a couple of items which actually do not appear to be recurring. So one is the PSLC cost, the priority sector lending certificate cost which as we said that we have taken actions that they should get reduced. So during the quarter we had roughly around 60 crores of increase that came through because of the PSLC cost. Apart from that we had an increase in the IT expenses also which was also amounting to a similar level of around 60 crores. Within this there are a number of items which were more timing related issues and therefore we don’t expect that to get repeated immediately.
These two I think are a couple of key recurring items which came through during the quarter, roughly amounting to about 120 crores.
Ankit Bihani
Got it. Thanks. And then the next question is how should we think about. You know, I know the macro is uncertain, but assuming a kind of relatively stable environment, how should we think about our way for FY27?
Vikash Mundhra
I think the. Sorry, the audio wasn’t very clear. We could understand the question. The voice is breaking actually if you can speak a little bit slowly, I think it will better.
Ankit Bihani
Oh, sorry. Yeah. Any thoughts on FY27 ROA?
Vikash Mundhra
On the ROA? Yeah, so I think ROA. Okay. So ROA we saw improvement from 0.4% in Q3 to a 1% in
Ankit Bihani
1.1% in
Vikash Mundhra
Q4. And the reason for this is one is we have seen improvement in the income as we had highlighted, the cost of deposits had come down. And also the other income has seen an improvement. Apart from this we have seen a reduction in the slippages which led to a reduction in the provisioning or the credit cost. And these factors, despite a bit of a partial offset to increase in expenses overall, we still saw the overall profitability improve sequentially. And going forward, as we had been guiding the market, we will be working towards seeing how we can gradually keep on improving the ROA to towards the guided level of between 1.6 to 1.7% ROA by the exit of FY27, give or take 10 basis points.
So we intend to make sequential improvement towards that aided by multiple factors and also further sort of improvement in cost upon the field research. Yeah, Just to give more clarity on it, one of the major factors is that we could reduce our credit cost. So 2% number one. Number two is the NIM has increased as you’ve seen, to 6.2% and these are the two major factors. And definitely the other income has also gone up. This is the third one and the fourth is that despite an increase in the operating costs the operating cost has increased.
So this trajectory of 1.1 has been maintained.
Anand Dama
Got it. Thank you so much.
Operator
Thank you. Ladies and gentlemen, a reminder, if you wish to ask a question please press star and one. We take the next question from the line of Jayant Karate from Access Capital. Please go ahead.
Vikash Mundhra
Thank you for the opportunity. Sir, first question is on the month of April. Now that elections are almost closing in tomorrow, anything that we should, I mean I think this time we didn’t have any interruption so to say from collection. So fair to say this collection trends would have held up in through the events of April as well. So let me tell you a clear picture that till now there is no adverse effect on collection on account of I would say either election or war. So the collection efficiency what Rajiv has stated is still continuing but definitely a few, I think 1, 2 basis point, it comes down during the month of April but which is quite common already.
But on the ground no adverse effect is being seen and we are hopeful and expecting that this trend will continue.
Ankit Bihani
Great sir. So second question is on the RBI ECL impact. I don’t know if you already spoken in the past about this but
Vikash Mundhra
Given that the direct, I mean the final guidelines are exactly as what the draft was. You would have had some time to calculate. So how would your steady state credit costs look like? I’m not, not concerned about the one time impact. I’m asking about the steady state
Ankit Bihani
Credit cost. And just a corollary to that question also on your unsecured book what is the standard asset provisioning that you currently do?
Vikash Mundhra
So Rajiv, here. So I think on the ECL we do have the transition impact which is based on the December 2025 portfolio. Based on the earlier draft circular. Yes, I think the latest circular came through yesterday. We are still going through if there are any further changes to that and what will be the implications of it. But based on the earlier draft circular and December 2025 portfolio the transition impact we expect is to be roughly around 1,250 crores which as we are allowed to transition it or spread it over five years would translate to about 250 crores per year impact.
Given the latest circular talks about this can be passed through the retained earnings or capital reserves. They expect roughly 16 to 17 basis points of impact on the CRAR every year for those five years. So that’s the Implication based on the transition, the flow impact is still being computed. We don’t have a number as of yet. As that gets computed we’ll have to assess the new circular implications and then we’ll be able to come back with what the flow impact should be. But as of now this is the range of impact based on the transition that I can share with you.
Rajeev Mantri
Standard asset provision. Yeah,
Vikash Mundhra
On the standard asset provision we basically on the unsecured portfolio which is let’s say micro finance, which is the largest one. So currently we are having around 1072 crores provisions on all standard assets. So that entails. Actually that includes two additional provision. One is that of all the standard assets we take an additional of 0.75% and also we have got an additional provision of around 136 crores. So with this I think 1072 provisions are already there in our books. So our impact on the ECL going forward, the floor is 5% in most of the cases excepting some where the floor is a little bit less.
But since we are already continuing to make 1% additional provision on the standard assets which is 35 basis point higher than but is now required as per direct norms for the day. So impact may be that will be 4% on the march value for the day. But I think that going forward the way we are managing our assets, if we can manage our SMA1 and SMA2 books much more prudently, this requirement will not have that much of effect on our tail cost. And I think if I can translate these two percentages for EB the requirement is 0.25%.
We maintain 1% which is 75 basis points higher. Like mentioned on personal loans and on ABG it’s around 0.4% in line with the IRS requirements.
Ankit Bihani
So just, just to reaction with the EB you’re already maintaining 1% non EB unsecured is the only person where you have to go from 40bps to one person.
Vikash Mundhra
That’s correct. That’s right. Thank
Ankit Bihani
You sir and congrats once again.
Vikash Mundhra
Thank you.
Operator
Thank you. We take the next question from the line of Ankit Biani from Nomura. Please go ahead.
Vikash Mundhra
Yeah, hi. Thank you for the opportunity. I wanted to know that what proportion of your deposits would be government related? And the second question is how should one think
Ankit Bihani
Of the margin trajectory from here on? Should we see improvement or a 4Q? Generally 4Q is a seasonally strong quarter. So can we see some moderation from here?
Vikash Mundhra
Yeah. Suresh, our head branch banking is answering this so our government deposits on the CASA side would be around 6000 crores. Out of the total deposits that we have deposits,
Anand Dama
The
Vikash Mundhra
Detail composition is overall 74%. As you have seen for the day, we have improved 69%. Last year it has improved to 64%. We have reduced the dependence on bulk deposits and majority of these bulk deposits used to come from the government department also. So that portion, we have reduced it so earlier it was, it is almost 3200 crores one term wise we have reduced as of the last year from that year and percentage wise almost 7%. So the CASA share works out to around 12%. 12% of CASA is government deposits and on the margin trajectory.
So just adding on to that. So our PD repricing is largely done or we should see cost of funds benefit
Ankit Bihani
Following through in the coming quarters as well.
Vikash Mundhra
Yeah. So I think as we have guided, we expected the cost of funds to continue to improve in Q4, Q1 and Q2. We have seen the improvement come through in Q1. The term deposit repricing has happened and therefore we had seen sequential improvement and as a result the margins have gone up from 5.9% to 6.2%. The 30 basis points increase largely driven by the cost of funds, partly also due to the impact of lower slippages resulting in lower interest reversals. Right. As we go through the next two quarters we do expect further improvement because there are further term deposits coming in for renewals.
So we do expect at least another 10 to 20 basis points of improvement over the next two to three quarters.
Ankit Bihani
10 to 20 basis improvement on cost of fund side, right?
Vikash Mundhra
Yeah. Based on the cost of fund improvement on the NIMS
Ankit Bihani
And on the credit cost front, how should one think? Should we consider 4Q as our base or again 4Q as you highlighted, there were lower, you know, interest reversals as well due to lower slightly stoppages. So should we see the slippage rain moderate from here or we could see it slight slightly inch up in one place on the MFI book.
Vikash Mundhra
Yeah. So I think, I think we have, as I mentioned, our X bucket collection efficiency has improved
Anand Dama
To
Vikash Mundhra
99.6% for the quarter. In fact, March month was 99.7. So if we are able to maintain these levels, we definitely expect, I think stipulus to continue to remain at these levels. We of course need to be wary of the implications of the war that’s happening. What exactly happens on that front as well as you know, any other externalities. But based on the efforts that the team has taken and the improvement in the collection efficiency we do expect these to hold at these levels and maybe improve marginally as well.
What I was telling is that EV has made a remarkable improvement. So the pages have been almost last quarter it was 1328, it has come down to 793 the SMS zero point. I’m just checking for the day.
Unidentified Participant
And also in
Vikash Mundhra
The bridges even if you see the gross slippages has also reduced from 942 to 690 so the trend is still continuing. So we are quite hopeful. Yeah, I think this is an important point. The overall DPD pool also we have seen an improvement. The EB DPD pool has come down from 4.6% to 3.1% across estimate 0, 1 and 2 with the biggest reduction in SMS 0. And that will also help us in terms of for the next quarter at similar levels.
Ankit Bihani
Okay, and any growth outlook on the deposit and loan growth front? As I remember earlier we had guided
Vikash Mundhra
That deposits will continue to go faster than advances. Currently we are lagging. So how do you think the deposit environment panning out and what would be our guidance? Because given our balance sheet we
Ankit Bihani
Are
Vikash Mundhra
Still running at a lower rate versus the industry loan growth.
Ankit Bihani
What would be outlook for FY2728 for a loan and deposit growth?
Vikash Mundhra
So our guidance remains the same. We are practically aiming a growth of around 14 15% in the credit and the endeavor would be to have a better deposit growth rate. But yes, a challenging factor is that the entire industry has now reversed. If you look that from November onwards the incremental credit growth is more than the incremental deposits growth. So we have to also look into the industry scenario accordingly also but definitely the whatever the guidance about there. So it will continue also to highlight on our credit growth while the overall number is around 30% if we exclude EVs I think the non EV book has grown by almost 25% and we know that the EV has gone through a cycle year on year it’s been a contraction.
We have been able to reduce the contraction to only about 5% year on year compared to the industry which actually have been contracting much larger. So therefore actually maybe our market share has improved even further during this last one year as well. So our numbers are not exactly comparable with the peer group because of a little larger portion of microfinance that we have in our books. And on the deposit front we have consistently shown higher deposit growth than advances. But this time as we mentioned consciously give reduce the bulk deposit share.
And if we exclude the bulk Deposit our retail deposits have grown by almost 17.8 or roughly 18%, which shows a very healthy growth rate.
Ankit Bihani
And on the deposit market front, are we seeing any competition, intense competition there or is there a chance of, you know, PV rates rising across the banking sector? Deposits residing across the banking sector?
Vikash Mundhra
I think the deposits competition is definitely intense. We did see in the month of March itself the deposit rates go up quite significantly being offered by the competition. And therefore we have been focusing on improving the structural granular retail deposits and that’s where the focus has been and we want to remain steady on that particular strategy. And therefore we took a call to not grow the bulk deposits significantly during the Q4 and that should help us going forward in terms of optimizing our cost of funds.
Ankit Bihani
Sure. Thank you. And lastly, what would be our average LCR for the quarter
Vikash Mundhra
Our period end LCR was around 131%. Average LCR I think would have ranged, would have been range bound between 130 to 140.
Ankit Bihani
So basically our margins might have been supported by some, you know, liquidity LCR coming down as well because as far as you remember 1Q we had an NCR of around about 200 odd percent. So that has come down gradually to 130 odd percent. Right?
Vikash Mundhra
Yes, the result of the bulk deposits coming down which is helping us on the APR also. Thank you for answering my question.
Operator
Thank you. We take the next question from the line of Anand Dhamma from MK Global. Please go ahead.
Anand Dama
Yeah, so thank you for the opportunity. One question that I had was, you know, on your credit costs. So this year should we expect a credit cost somewhere about 1.5, 1.6% now that the BE stress obviously is easing out and I think the ECL impact will be largely taken through the balance sheet. So is that a fair assumption in terms of credit cost for FY27?
Vikash Mundhra
So we are keeping our guidance unchanged because if you look the last year’s performance, so the credit cost has substantially improved and we have ended up at 2% already. And going by the current trends in the EV, especially in the EV segment, the rate of recovery and the collection efficiency for that year. So I think that there will be some improvement in the credit cost going forward. But yes, definitely there are certain concerns like the war, we don’t know the impact, how will it come and how will it impact the economy, the fuel price availability and then the cascading effects on the other sectors of the economy.
This is there but as on, I would say that going by the current Trend the economy is moving and the portfolio of our bank is also showing signs of a lot of green shoots of the day. I think that we can keep that guidance and we will be trying to achieve as close to that. The guidance you mentioned was between 1.6 to 1.7% by the exit of FY27 which is by Q4. FY27 and we will still endeavor to work towards that.
Anand Dama
Okay, and are we largely done with the sale of nps?
Vikash Mundhra
So it is an option, you see, it is a part of the NPA management. The option is neither closed nor we are. We are following it also. So we have not yet crystallized our thing. So this is some opportunities we will be looking. If we get some good prices of the of our books, we may prepone the cash flow. That’s the only thing. That’s the only advantage happens in the. So it is something as a part of management. It is till now I can say that we are not crystallized on that. But at the same time the options are open.
I think the two other factors, the eba, the slippages have come down. The collection efficiency has picked up. The ARC sale that we did in Q3 prior to that we did three years ago. So it’s not something that will be done every quarter. But as Parthasar mentioned, this is an option that is available for the bank and we will look at it whenever we need to do any kind of an NPA management. But there are no immediate plans.
Anand Dama
And so lastly in FY27 with that the credit cost will come down should we expect an ROI above 1%
Vikash Mundhra
So we have started the trajectory that much we can say. So you see that from 0.2% in September we improved to 0.4 in December and now 1.1. The endeavor is there. We have not yet changed the guidance for the day and going by whatever the green shoots we are happy seeing in the EV segment if that continues. And we are also focusing on the other income trend, especially in the wholesale segment. So with all these things and other income by reducing the operating cost on account of cases, the steps that we have taken for the day, I I think that we will try to achieve as near to that.
That’s that much I can say definitely a challenge. But we are not changing the guidance as of now. Just to reiterate, the guidance we had said was 1.6 to 1.8% of ROA by the exit of FY27, which is Q4. FY27 they will take 10 basis points. So we will work towards meeting those numbers.
Unidentified Participant
Sure, that’s very helpful sir. Thanks a lot.
Operator
Thank you. We take the next question from the line of Nitin Agarwal from Modilalo SWAL Financial Services Ltd. Please go ahead.
Ankit Bihani
Yeah, hi. Yeah, hi. Good evening everyone and congrats on a good quarter. A few questions I have like firstly on the NII growth itself, if I see like NI growth this quarter is at 4% Q on Q growth and this has come in despite pretty strong advances growth this quarter. Even the previous quarter we had a decent pickup and margins have improved in both the quarters. So any reason why this growth is lacking the advances growth despite such a margin expansion?
Vikash Mundhra
Let me just tell you the NIA first of all the interest income last year was affected due to the reported cut. So almost 125 basis point that cuts were there in the report. Number two is that we also rationalized our own MCLR. So that was the effect was almost 200 basis point on that account for the day. If you look at the balance sheets the advances have taken place mostly the incremental growth. 50% of the incremental yearly growth has taken place in the last quarter. So for the rest the effect we will we have not got in that quarter itself.
So because many loans were disbursed say in the month of March or end of March for that year. So the effect of NAYA was not given on that year. But one good thing is that we could actually arrest the declining trend of the repo cut if you look at the entire figure for that year. So because January also there was a 25 basis point repo cut was there I have to pass on to my all the borrowers for the day. But still that we maintained at the same level at 5428 we service 5431 during the previous quarter.
So the effect of this increase what you’re saying is that you will be seen in during this quarter? I can say yeah, I think specifically for your question Nitin3 4 points. One is the advantage growth came but that growth was rear ended. So we will see the benefit of that in the coming quarter. The second is, you know this quarter had roughly two days less. I think just from a days count perspective there is an implication as well. Third is the repo rate reduction that happened in December of 25 basis points which had an 11 basis point impact on our book.
Roughly 46% of the book got impacted but of course partly offset by the growth that we saw. The momentum we saw especially in the EB growth that came through, I think these are three or four factors leading to the 4% improvement in the NII for this quarter.
Ankit Bihani
Okay, got it. And the other observation is around the collection efficiency. If I see like for the month of March and for the quarter that the gap has widened like while there used to be, like I said, last quarter was a 20 basis point gap, if I look at the collection efficiency excluding areas at 98 and 98.2, this time for the month of March it has stood at 98.6 versus 99.3 for the quarter. So how should one look at it? Has March deteriorated over the three months of this quarter or how should one read this?
Vikash Mundhra
No, no. So I think the way it can be read is that we actually saw improvement in the collection efficiency started to come through the month of November last year. So last year October was impacted quite heavily because the over leveraging saga was still paying out. But from November onwards and mid of November is when we started seeing the improvement come through and therefore I think you know we are seeing the difference between the quarter but the difference between the months to have a difference in the basis points.
Right.
Anand Dama
If I may just add to what Ravi spoke. In a month of November onward we have been clocking current X pocket collection that
Vikash Mundhra
99.6 onwards and we did in January and February month at 99.65 and 99.7. March last day was our holiday which impacted us. We have a holiday billing and that resulted into 98.9 number or something and that overall we finished the quarter at a much better number on the current bucket number 99.6. So overall there is nothing to worry in terms of the March overall not holding compared to the entire quarter. But the quarter numbers of parts if I have to compare it to quarter three. Yeah. Because November, December, December also saw an improved position and therefore December to March you may not see a big delta, but quarter on quarter you’ll see a bigger Delta.
I think the 15th of November the situation was not that much encouraging. But definitely from the 15th of November onwards the collection efficiency has improved a lot and steadily being maintained. And that also you can see this part of your SMA 0 improvements in EEV business as across SMA 1 and 2 as well all the buckets have come down including the slippage number. That clearly shows from the November month the progress has been so significant that all the buckets including the slippages overall have come down to a substantial amount.
Ankit Bihani
Right. And the other question is around the profitability overall. Wherein we are indicating 1.6 to 1.1.8 ROI by Q4.27. So how much of this improvement is hinged around MFI now? Now that the collection efficiency has already improved to like on near normalized levels now already and how much of it is is like a further expansion they given and recovery in the non MFI businesses. So can you give some profitability of non MFI business therefore Mumbai some split or some color around that to understand this improvement in ROI better?
Vikash Mundhra
Yes, I think three or four key factors, broad factors. One is the credit cost improvement as we mentioned from the current 2% level to 1.6 1.7 so we do seek the credit cost itself to provide further uplift on the roa. Second is as Prata mentioned we are focusing on generating higher other income and this will be the result of further capabilities which are coming in our secured asset businesses especially wholesale banking. So as these come in we should be able to see some improvement there. We are also expecting as disbursements pick up improvement in the processing fees and the momentum on the third party products income to continue.
So I think other income will be one of the key drivers. We do expect at least about 10 basis points to come to there in the other income and operating expenses as we mentioned like PSLC cost itself. If that reduces I think we should be able to get some delta from there. So these are the two or three key factors. Overall business momentum is important and I think we’ll continue to maintain that momentum. The good thing also is that as we had set up a target of around 58% secured mix by March 27th we are almost near that now itself.
So we met that target nearly that a year in advance and therefore our growth rates across EB and non EB can start to converge to some extent.
Ankit Bihani
Right? And Rajiv, one like curious question curiosity that I have is around the LCR ratio rather because we have been able to maintain one of the better LCRs in the industry even this quarter after this decline at 130140 average that you talked about is also a very very healthy number. So what really differentiates Bandhan Bank LCR versus the other large private bank? Because if I compare on the retail mix of deposits or CD ratio there is not much of a difference. So why the LCR numbers are so much better not just in this quarter One
Vikash Mundhra
Is that the immediate answer is that our dependence on the deposits have come down so the volatility has been contained or has been arrested to a large extent requiring less amount of LCR to be maintained. I think the other factor is that we have a large portion of deposits coming from retail. So our retail deposit share is much larger and that has a much lower runoff factor. As you know, between 5% to 10%. We have a lower share from corporate deposits which have a higher runoff factor of 40% or 75% or 100%.
Therefore I think to that extent there will be difference in terms of comparability across the. And if you add the non callable part of the bulk deposit retail plus non callable adds up to more than 95%. So the fluctuation and the volatility is concentrated more on the balance 5%. So that dependence has come down and that has helped us to maintain a better.
Ankit Bihani
Got it. Got. Thank you so much. Thanks for all the insights.
Operator
Thank you. We take the next question from the line of Swahani Goyal from ICCA Securities. Please go ahead.
Vikash Mundhra
Yeah, hi sir, this is J. Mundra. So I heard your opening comments on the ECL shortfall.
Operator
I do apologize to interrupt you there. Your audio is not clear. Could you please use your handset?
Vikash Mundhra
Yeah. Hi. Is this better?
Operator
Yes.
Anand Dama
Yes. Okay.
Vikash Mundhra
So Rajiv, my question is you mentioned that there is a shortfall of let’s say 1200 odd crores in the ECA transition. And we have a credit cost guidance of 1.6, 1.7. Given that now ECL provides that the transition can be adjusted through reserves. Would you be. Would you. I mean would you be. Let’s say if you have buffer you can still flow in the P and L and then you can adjust in the reserves or you would still like to minimize that shortfall. I just wanted to understand your thoughts on those.
Ankit Bihani
No, so I think we are, as we said we are assessing.
Vikash Mundhra
Look, the latest workflow came yesterday. So we are actually evaluating the claim. What the latest circular allows as we understand is to take it through the retained earnings and also allows a period of five years with which it could be spread out. So therefore we will look at the flexibility that that offers and how exactly it impacts the balance sheet. Also the assessment we did of the number we shared was based on December balance sheet. We will have to reassess based on the latest balance sheet and of course how structured we are able to change the balance sheet over the course of the year.
So these are the various factors that we have to assess. Will be able to take the final approach on the thing.
Ankit Bihani
Okay. Now as I mean now the circular allows you to adjust through reserves. Would you be keen to minimize the shortfall or would you be keen to adjust it through results because that is allowed? I mean that is the broad question.
Vikash Mundhra
I think it will also depend upon the profitability appetite that comes through during the year. Of course wherever there’s opportunity existing we will try to shore up our provisions. But as of now this is what is the broad approach is estimate roughly on the basis of Q3. This is a December number so March number and going forward also it needs to be crystallized maybe the three act may have a lesser effect.
Ankit Bihani
Right. Secondly sir, on your write off when provisioning. So let’s say if 100 rupee slips out of EV is there any set right set set provisioning policy Because I think
Vikash Mundhra
You
Ankit Bihani
Have to provide 100 by year in 365
Vikash Mundhra
Days. So do you follow 25, 25 or is there any pattern,
Ankit Bihani
Is there any provisioning policy for mfi?
Vikash Mundhra
We do have a provisioning policy but we just maintain the PCR. If you look at our that PCR including the SR for the team we are maintained at 74.5% so that that is the trucks we want to maintain it and to maintain that pcr whatever the additional provisions are required we do it once we write off our portfolio. So that is the way that the main theme is that we keep the PCR as the target point that need to be maintained and based on that whatever the shortfalling provisions on account of write offs are there.
So it is made for the. We take a more conservative position than what the IRAC requires. I think for us broadly, I think at 180 DPD itself we take almost 100% provisions for the EB portfolio we accelerate mostly we accelerate.
Ankit Bihani
Right, that is good. And lastly
Vikash Mundhra
The revised circular says that if there is any exposure which has government guaranteed linkages it can have very small stage one, stage two provisions. So any of your EEB portfolio either through CGFMU or some other scheme do they qualify for that kind of a status or. Or we or, or no. So for EB portfolio currently we do not have any government back guarantee but we are evaluating in terms of how do you want to progress it from here. As of now there is nothing which is guaranteed back by the government.
Currently we don’t have any CBS coverage for that option is open for us. We’ll be evaluating.
Ankit Bihani
And lastly Vishal, since you are there on the call if you can talk about your, your, your resignation I thought everything is going on very well. I mean you have almost turnaround or almost normalized level of slippages. So you know What, What. What happened? Thank you.
Vikash Mundhra
I’ll keep you offline on this one. Personal career advancement I think. Yes. So things are looking, I’ll leave it at that. So bank is now I would say much, much more process driven rather than person driven. So I. I said that we should look at it for the. We have brought many changes in the ev. Rather we have transformed the model of the EV business and a lot of technology and other inputs have been made and Vishal has implemented it very meticulously. So it is his personal career growth we have
Anand Dama
Aspired for and we wish him all the best.
Vikash Mundhra
Sure sir. Sorry sir, if I can ask one more question. There was media reports on, you know, some activity going at promoter level. Is there any, anything that you can add? These are all rumors. So I have already. We have already said for the day these are all rumors. So nothing is going at the Holdco level. Nothing is going to affect the shareholding pattern of the bank. If something is going at the CIC level that is their cause which anyway is not going to affect the bank.
Ankit Bihani
Right? Very, very clear sir. Thank you and all the very best.
Vikash Mundhra
Thank you. Thank you.
Operator
Thank you. We take the next question from the line of Rahul Kumar from Vicaria Fund. Please go ahead.
Vikash Mundhra
Yeah, just one question on this employee cost as well. I think if I exclude the base quarter Number from the 3Q the impact of labor code I think I see a 14% increase in the employee cost. QQ so what led to that? I can say that with 73 crores additional employee cost was there during this quarter. This has come on account number one is that. Yes, definitely this month there was large number of holidays and we have kept the bank open because to reduce for the collections. And here we have kept the bank open for two, three days for recharge.
We have to pay some additional salaries to the employees as per the rules of the bank.
Ankit Bihani
So that has actually increased in the employee cost for the day. Otherwise all other costs are in line with what we have incurred in the previous quarters.
Vikash Mundhra
Regarding the new labor code related impact we had already taken in Q3.
Ankit Bihani
Q3 there was no
Vikash Mundhra
Incremental impact that came through in Q4 as Patas mentioned, this was because of couple of days additional that people had gone and the salary impact of that and some normal salary expenses. Okay, okay, okay. And if I look at the reported yields actually they have increased in this quarter versus the 3Q despite, you know, this repo cut impact. So what drove that? Yes, I think there are two things. One is as we had done the ARC sale in Q3, a large chunk of the NPA portfolio had gone away and therefore you get the immediate benefit on the yield on the overall portfolio in the next quarter.
Right. Because the NPA book was actually suppressing the E. So that was one of the key reasons. Apart from that there was as we mentioned, improvement in the EB disbursement as well. And as the EB book increased by almost 8% on a quarter on quarter basis, total Advances increased by 6% on a quarter on quarter basis, which meant that overall mixed perspective, there were some further benefits that came through on the ebitda. I think those are the two key reasons. Okay, okay, fair enough. And the last question which I have was on the slippages front, I think even though you know the ex market collection efficiency has improved quarter on quarter in this.
But I, but you were trying to guide us on the slippages front that it will be similar to what you know it is, it was in Q4. So is there something on the ground which is different which you expect to be worsening in this quarter? No. We mentioned that slippages will basically hold to improve. Right. So that’s the range that we are given. So we would expect to have some gradual further improvement as well come through. But we also vary as we mentioned of some of the external risk which are coming through.
Especially we don’t know fully if the war related impact will come through in what shape and form. So we’re keeping some bit of conservatism there. But at the end of the day, based on the collection efficiency improvement, we are fairly confident on the level of slippages that we’ve achieved as well as what further we can improve. Okay. Okay, thank you.
Operator
Thank you. Ladies and gentlemen, in the interest of time and fairness to others, we request you to restrict to one question per participant. We take the next question from the line of pyrene engineer from clsa. Please go ahead.
Piran Engineer
Yeah, hi, thanks for the follow up. Just to reconfirm what Partha sir says, MFI slippages were 690 crores this quarter.
Vikash Mundhra
MFI. Yeah, MFI 690. 690,
Piran Engineer
Right. Yeah.
Vikash Mundhra
And the recoveries were 142. So next pages is 548.
Piran Engineer
Okay. Okay. Yeah, that’s it from my end. Thank you.
Operator
Thank you. We take the next question from the line of Jayant Karate from Access Capital. Please go ahead.
Vikash Mundhra
Thanks for the follow up. Sir, sorry. This question has been asked previously when you say that margins can improve by another 15 to 20 basis points that is on the 4Q number or that is on the full year number. Full year number being 6.1. And just a corollary to that question, it means if your
Ankit Bihani
Loans are growing at 14, 15, NI growth next year should be ahead of that. Is that a fair assumption?
Vikash Mundhra
So the NIM improvement that I mentioned was sequentially on quarter numbers. So our quarter numbers are 6.2% and and on that we expect 10 to 15 to 20 basis points improvement spread over the next two to three quarters. So the guidance as we have been mentioning is by the exit of FY27 we expect NIMs to be around 6% on total assets, which means on earning asset basis it will be around 6.5%. So we do have a line of sight of the next 10 to 20 basis points. So we need to find another 10 basis points.
So that’s the aim that we’re working on of course, on a best effort basis.
Ankit Bihani
Thank you sir. Just if I do the math, 10 to 15 or even 20 basis points on NIMS, 10 on fees, another 20 on credit cost. Is there something I’m missing? Because we need 70 bips post tax which is almost 90 pre tax. So is there something I’m missing for the ROI waterfall?
Vikash Mundhra
So ROI, as we said we already touched 1.1% and our aim is to reach 1.6 to 1.8% right. Give or take 10 basis points by the Q4 or FY27. So say there’s a journey of about 50 to 60 basis points further that we need to climb. Some of these components that we mentioned are the ones which will help us right. In terms of meeting that the timing of it will depend upon every quarter to quarter how exactly we make a progress. But we have to also be aware of any kind of external shocks or risk etc that could come through or any headwinds that could come through.
So we will definitely try and see how we can get through these numbers despite those events. Thank you sir and all the best. Thank you.
Operator
We take the next question from the line of Dave from Horsepower securities, please go ahead.
Rajeev Mantri
Yes, good afternoon gentlemen. Congratulations on the excellent set of numbers.
Vikash Mundhra
Yes, thank you.
Rajeev Mantri
So as far as my knowledge goes and I. How far I understand that you are trying to increase your share of secured book, right? So by the end of FY27 are you trying to target increase share of secured books in your total book portfolio and what would be that percentage? And if you intend to increase the secured portion of your portfolio in comparison to other EE book, EEV books or whatever that Unsecured portions are what would be the effect on your names? Is it going to come down from 6.22 or something?
Vikash Mundhra
I mean, I
Rajeev Mantri
Mean if, if you are, if you are trying to increase your secret loan book portfolio share like the other banking units or banking companies, their names are far below your from your names. So if you trying to converge into that, that part are your
Vikash Mundhra
Question.
Rajeev Mantri
So
Vikash Mundhra
Let me, let me just explain. So first of all we had a target of doing a secured unsecured business of 5842. So that’s what our goal as FY27 exit of FY27 we have projected a secured book of 58% and 42% unsecured. So we have already achieved that or near to achieving that. If you see my Q4 results, we are already at 56% and another 44% is unsecured for it. The second part is that so 56 to 58 will not have much impact on the new so and let me tell you that we are keeping our trajectory on the aim that our EB will continue to be one third of our total portfolio.
So in both ways the unsecured book, the EB book will also grow and the secured books will also grow. This question is the lean as for the NIM is concerned for the days the EV book is the delique. The main major problem of the EV book if you look in the past year was the delinquency level or the NPA level and because that’s where the interest reversals took place and where the mean was largely affected. If you can continue Even with the 35% share and maintain the present I would say the NPA level, SMA book and the delinquency level and if you continue to improve it further it will not have any much impact on the mean as for the day.
So again if there is any shortfall. Let me again tell you about our, our direction for the day that we are now focusing on the other income of the secured book. So if there is any shortfall in the mean on account of the growth of the secured book, it will get compensated on the other income. So overall mean plus other income what we have projected is around 6.2 and 1.5 I think 6 and 1.5, 7.5 so that will remain intact. That is our aim. So if somebody says that if you come out at 5.9 or 5.8 on our other income will also go by 2030 basis point more in that segment.
So overall that trajectory of 7.5% we will try our best to maintain it.
Rajeev Mantri
Okay, and for going forward in say within five years, do you continue to stick with that proportion of 58%, 42%. Or there would be something, I mean long term, any goal or target that you are continuously pursuing to achieve over
Vikash Mundhra
Currently that ratio remains. It is again the experience that we will see. We will have to strategize or we have to change our strategy at that point of time. The reason for going to secular both as we have told that there were two, three reasons. The first one was that we were too much on the unsecured books and we are a universal bank. The depositors confidence is very important. So that’s why a singular growth in all the advances comprising secured and unsecured books is necessary. This is the first thing why we have shifted number two.
Because now my portfolio is also becoming much, much stronger than what we had been a year or two years before. For that year this is one thing. So currently definitely we have not thought. But again it will all depend on our experience. So we hope that things like Corona or other things will not happen or even this war would also end. There will not be an impact. So it will completely depend on the experience that we gather going forward. But as of now, as I’ve told you that we want to remain a leader in the EV segment and we continue to do that.
So EV segment is definitely a focus area. So we have seen an 8% growth. Q and Q. But definitely our secured book has grown at 25%. So the focus this year is on the other income part from the secured book, not only on the interest income and along with a reasonable growth in the EV segment also. And with the input rate cost. Yes, and with the input.
Operator
Thank you ladies and gentlemen. We take that as the last question and conclude the question and answer session. I now hand the conference over to the management for their closing comments.
Vikash Mundhra
Thank you everyone for joining and we hope that you continue to place the trust on our banks. Thank you so much. Thank you.
Operator
Thank you on behalf of Bandhan Bank. That concludes this conference call. Thank you for joining us and you may now disconnect your lines.