Bank of Baroda Ltd (NSE: BANKBARODA) Q3 2026 Earnings Call dated Jan. 30, 2026
Corporate Participants:
Debadatta Chand — MD, CEO & Director
I V L Sridhar — Chief Financial Officer
Lalit Tyagi — Executive Director
Lal Singh — Executive Director
Beena Vaheed — Executive Director
Analysts:
Mahrukh Adajania — Analyst
Nitin Aggarwal — Analyst
Kunal Shah — Analyst
Unidentified Participant
Piran Engineer — Analyst
Ankit Bihani — Analyst
Rikin Shah — Analyst
Presentation:
Operator
Good evening, everyone, and welcome to the analyst meet for Bank of Baroda’s quarterly results for the quarter ended 31st December 2025. Thank you all for joining us. We have with us our MD and CEO, Dr. Debadatta Chand and he’s joined by the bank’s Executive Directors and our CFO. We will start with a short presentation, followed by opening remarks by Dr. Chand, and then we will move on to the Q&A session. Chand sir, over to you.
Debadatta Chand — MD, CEO & Director
Thanks, Firoza. And again, good evening to all my media friends who are present here on the call. And just to introduce the management team, with me — I’m D. Chand, MD and CEO. With me, Mr. Lalit Tyagi, the Executive Director. He looks after the C&IC, the Treasury and the International banking. With him, Mr. Sanjay Mudaliar, he is the Executive Director. He looks after IT, the retail asset and a couple of other platform functions. Then we have Mr. Lal Singh, Executive Director. He looks after the HR, recovery and the MSME and agri vertical. And we have Madam Beena Vaheed, who is Executive Director, looks after control, compliance platform function, along with the retail liability franchise of the bank. And we have the CFO, Mr. I. V. L. Sridhar. He has been there for a couple of quarters now. So Mr. Sridhar, over to you for the presentation.
I V L Sridhar — Chief Financial Officer
Thank you, sir. Good evening, everyone. It’s my privilege to present before you the financial highlights of Bank of Baroda for the quarter and nine months ended 31st December 2025. Our global advances have grown by 14.7% Y-o-Y with the domestic advances growing by 13.6% and international by 19.3%. Within the advances book, the bank has continued to focus on RAM advances. Our organic retail book grew by 17.4%, agriculture by 19% and organic MSME by 16.4%. Corporate loans have grown by 8.1% Y-o-Y. Within the retail segment, we have seen small growth across the portfolio with education loan growing by 12.8%, personal loan by 12%, home loan by 16%, auto loan by 17.4% and mortgages by 21%.
In terms of deposits growth, our total deposits have grown by 10.3% with international deposits growing by 5.7% and domestic deposits by 11.1%. The domestic CASA deposits have grown by 8.6% and term deposits have registered a growth of 12.7% Y-o-Y. As of 31st December 2025, the bank’s domestic credit deposit ratio stands at 83.89% and CASA ratio stands at 38.45%.
With regard to quarterly profitability metrics, our operating profit for the quarter stands at INR7,377 crores. bank’s net profit for Q3 stands at INR5,055 crores, registering a growth of 4.5% Y-o-Y. Return on assets remain consistently above 1% at 1.09% for the — as of 31st December ’25. Return on equity stands at 15.59% for the quarter. For nine months FY 2026, our operating profit stands at INR23,190 crores. Our net profit for nine months FY 2026 stands at INR14,405 crores. Return on assets remained above 1% at 1.05% in nine months FY 2026. Return on equity stands at 14.81% for the 9 months ended December 2026.
With regard to our key ratios, our yield on advances stands at 7.56% for the quarter and 7.81% for the nine months. bank’s prudent liabilities management has led to a sequential decline in the cost of deposits for the quarter, which stands at 4.75% as against 4.91% for the previous quarter. With regard to our net interest margin, it stands at 2.79% for the quarter and 2.88% for the nine months.
Now we come to our asset quality, which continues to remain robust. Our gross NPA ratio has improved by 39 bps Y-o-Y and stands at 2.04%. Net NPA ratio is below 1% at 0.57%, an improvement of 2 bps Y-o-Y. Our provision coverage ratio, including TWO is comfortable at 92.73%. Our slippage ratio for Q3 FY 2026 has reduced by 4 bps Y-o-Y and stands at 0.86%. Credit cost remains low at and stands at a level of 0.17% for the third quarter of FY 2026.
Coming to our SMA and collection efficiency. Our CRILC SMA 1 and 2 as a percentage of our standard advances stands at 0.36% as of December ’25. Our collection efficiency, excluding agriculture remains robust at 98.6%. In terms of our capital adequacy, our capital position continues to be strong with CET1 at 12.45%, Tier 1 at 13.10% and overall CRAR at 15.29%. Our LCR remains healthy at approximately 116% as of December ’25. Adjusted for the profit of 9 months FY 2026, capital adequacy would have been 16.47%. Now I request MD sir to…
Debadatta Chand — MD, CEO & Director
Thank you, Mr. Sridhar. And once again, all my analyst friends, good evening to each one of you. Let me add some quick couple of qualitative points here. The financial this quarter, again, talks about the same business model that we have been talking about, which is again to strengthen the fundamental core and be consistent and stable outlook. So the current quarter also, the numbers shows that the bank pursue this objective of being a fundamentally strong core at the same time, a sustainable performance.
And secondly, the profit numbers that you see for this quarter is purely out of the operation. We don’t have any one-off anywhere in the other noninterest income or anywhere, which gives slightly elevated level of profit. The profit that we are declaring this quarter, the net profit has seen a 4.5% jump is purely out of the operational profit.
Secondly, only the balance sheet numbers you have seen already we declared the provisional. This is one of the strongest number we have in the last eight quarters. The advances almost reaching 15%, the deposit almost at 10%, the domestic deposit at 11.1%. I think we are one of the strongest only 2 points I will touch here that the RAM is almost at 17%, 18%. The corporate has gone to 8% now and the full year, we are targeting to be at 10%. Similarly, on the liability piece, our saving growth of 7.6% and CASA growth of 8.6%, I think one of the best in the top quartile in the banking sector. So continue to focus on the low-cost deposit at the same time, build asset book, again, consistent in terms of our objective of a diversified book, I mean, creating a more stable outlook with regard to growth of asset book.
On the main important part that would have seen is that the cost of deposit — the global cost of deposit at 4.75% and — I mean the domestic at 4.99%. That means on both account, last quarter, we peer the global deposit cost below 5%. And this quarter, we have both domestic and also global below 5%. And in case you look at the market threshold, this is one of the top quartile good number in terms of cost of deposit, rather a pristine level to have. And that’s something a prudent liability management that we carry in terms of not to depend on heavily on the bulk deposit rather focus on the low-cost deposit is giving us positive outcome.
At the same time, the margin that you see for the nine months is at 2.88%. We had given a guidance of 2.85% to 3%, and we are right on the band of 2.88%, whereas the Q3 is 2.79%. But the overall guidance for the full year continue to be at the 2.85% to 3%. On the asset quality, again, the numbers were very well in terms of the — on the benign asset cycle we have, not only for the bank but the entire industry, a GNPA of 2.04%, net NPA of 0.57%, slippage cost of 0.86% and the credit cost at 0.17% with the collection efficiency almost the same level at 99.6% excluding agri. And the CMA — I mean, the SMA 1 and 2 book of the CRILC data has improved from 0.39% to 0.36%. I think the bank is adding on an excellent asset quality at the end of the last quarter, that is the Q3.
A couple of fundamental things, I think that’s important for you to understand that in terms of — if I compare December ’25 over December ’23, the book value of the bank has gone up from almost from INR180 to INR250, let’s say, accretion of almost like INR80, INR85, that is significant. Secondly, the bank has been persistently putting a stable outlook, like the ROA is almost now 14 consecutive quarters, we are posting continuously more than 1% ROA. In terms of profit, this is the 12th quarter we are posting more than INR4,000 crores of net profit. Out of the last six quarters, this is the third quarter we are posting more than INR5,000 crores of net profit.
So the point that I’m driving is a consistency in terms of the income earning potential of the portfolio and the outcomes are very favorable in terms of consistency and also at an elevated level of profit that we operate at. A couple of things that possibly just to take a note of that, we got the Best Bank award by The Banker’s U.K. some time back that we put that on the public domain also. And that’s a strong validation of the bank’s journey, which is consistent with growth, which is sustainable and also transformative.
At the same time, on the technology, IBA Technology Award, which was announced recently, there are 7 themes on that. And Bank of Baroda could win four out of seven as a winner. And the fifth one is also a Special Mention — The Special Mention award. So it’s a huge recognition to the bank’s digital robustness and the bank’s architecture in terms of creating a customer experience, which is definitely better. And we’ll keep on driving more on this. But then I think the awards of four winners is a huge recognition to entire Barodian who works on transformation technology and driving better customer service. With this, I open the floor for question and answer. Firoza, over to you.
Questions and Answers:
Operator
[Operator Instructions] The first question is from Mahrukh Adajania.
Mahrukh Adajania
I have a couple of questions. Firstly — so I’ll first list out my questions. Firstly, in terms of NII growth, if you could say — if you could help us distinguish between total NIM and core NIM because last time you had kind of given that cut, right, that 2.82%, 2.96% is the total NIM and then 2.76% or something is the core NIM. So what is the comparable figure for core NIM this quarter, that would help. And if there’s any recovery income on NPLs, which is higher than last quarter in the NII?
And secondly, in terms of written-off recoveries, they were — they doubled Q-o-Q. So if you could give the split between retail and corporate and if there was anything lumpy. And my third question really, sir, is on the NII growth, right? So of course, there’s a bit of lower tax refunds and there’s a distinction between core and total NIM. But our loan growth is exceptionally high, which is a big positive, whereas the NII growth is in low single digits. So would we be better off if we consolidated growth and improve margins or that’s not an option?
Debadatta Chand
Okay. So Mahrukh, typically a question around the NII, the NIM and the core NIM. Look, as I said that as far as NII is concerned, INR11,800 crores NII is — would have seen because you are comparing with banks is one of the strong NII number on absolute terms. So let us very clear on that. So our NII is INR11,800 crores. And the NII is purely out of the core operation, nothing one-off there. So that’s a pure operational NII, that is INR11,800 crores. Coming to your — the NII growth has been slightly — I mean, stagnant or maybe at the same. The reason being the interest expenses and the interest income, although there is a strong asset book almost at 15% but there is a repricing happening on a couple of books on the asset side also continue to do that.
Similarly, on the liability piece, although the cost of deposit has been lowest but on the wholesale market or the borrowing market, still the costs are elevated, where as you know, the tenure are still being high. So scenario, the NII is almost at an elevated level but stagnant in the sense, the same level. I don’t have a core NIM or a separate NIM. All NIM is core, absolutely.
But specific to that, in case you are talking about the income tax refund, last time also, we had some amount. This time also, we have some amount. The impact on the number can be something around 5, 6 bps maximum. But everything is core, and that is at nine months, it is at 2.8%. So we had given guidance of 2.8% to 3%, and we are on the target. You had one more question, Mahrukh, can you just repeat that?
Mahrukh Adajania
Yes, sir. Actually, I wanted the WTO, the recovery in written-off has gone up — yes.
Debadatta Chand
So normally, I always say that’s a normalized — I mean, it has been — I’ve been telling it for last five, six quarters. Our recovery of written-off is a normalized INR700 crores to INR750 crores. I mean, I’m repeating the statement for multiple quarters now. Last quarter was slightly less. But this quarter, it has gone into the level of that. And look, we have a [Indecipherable] book of almost INR63,000 crores. So there will be recovery but the normalized quarter is INR700 crores to INR750 crores and this quarter it is slightly INR800-plus crores something. So in that way, there is no one-off there. It’s a normalized recovery out of written-off. On a guidance scale, we continue to have INR700 crores to INR750 crores per quarter. So there is no one-off currently in the entire — whether you talk about other interest income or noninterest income.
Absolutely, book is — look, another thing also you need to complemented on the loan book growth. On a loan book of almost INR11 lakhs everything, our book is entirely organic. The outstanding pool process as on today is only INR20,000 crores, which is again going down quarter-to-quarter. So in that way, the book is organic. The income out of this book is entirely, again, purely operational. So that is what a statement I would make.
Operator
The next question is from Nitin Aggarwal.
Nitin Aggarwal
Sir, I have two questions. One is on the LCR and the CD ratio. If I look at LCR ratio has dropped quite sharply in the last two quarters. And so how do you think about that? And likewise, on the CD ratio, which has been like rising with the sort of strong growth that we are reporting. So, what are the comfortable numbers that you will want to like guard?
Debadatta Chand
So, Nitin, on the LDR or the CD ratio, we see — annually we have been operating 80% plus, and this quarter, the global is 86% and the domestic at 83%. So earlier also we said on the domestic, we will be comfortable on the range of 82% to 84%. But globally is always something different. So global can impact. But overall, on the global side also, it will be something around 86% to 88% would be the range. Saying so, you rightly talked about the LCR part because the LCR gives comfort. So as long as the LCR is comfortable, we should not be very, I mean, focused on the LDR. So, the LCR — I mean, our target is always to operate around 120%, right? So last quarter was 120%. This quarter, we were 116%.
If you look at the book on the investment side, we almost sold INR28,000 crores of investment this quarter, precisely to take advantage of the low yield and getting it repriced at a higher 10-year yield at this point of time. So that will build up actually our comfort range to operate 120% and 116% is also a healthy number but then we will going to operate at 120% on the LCR. So Tyagi sir, anything you want to add on the LCR or CD?
Lalit Tyagi
Sir, in fact, you have said it right that our target range is around 120. We have been operating around that level. And to take advantage of the market yields and also OMOs, the excess SLR has gone down slightly, but we will build up as the yield curve is showing some traction.
Nitin Aggarwal
Sure, sir. And sir, the other question is around like ECL. If you can give some color as to what kind of requirement are you seeing in terms of — for the transition to the ECL? And when we are having already a very strong asset quality, our slippages are in control, credit cost is like making new loans. Why are we not like raising coverage further and making more provisions towards ECL transition? So what is the thought process on that? And how many years like basically do you want to cover that journey?
Debadatta Chand
Okay. So let me come two aspects differently. As far as credit cost, I actually — actually for all the analysts, let me give the guidance actually that is important, actually, I missed this piece. Our credit guidance continue to be 11% to 13% with upside, which we have done it this quarter and possibly going to do in Q4. Deposit is to be 9% to 11%. At the same time, the ROA above 1%. Margin guidance is 2.85% to 3%. At the same time, the slippage is 1% to 1.25% but the credit cost, which was below 0.75%, we have revised upward in a sense positive to below 0.60%. Precisely, the credit cost for the last nine or 10 quarters has been at 0.34%, this quarter at 0.17%.
So considering the quality of asset we have, I think the PCR part you are referring to, I think we are adequately provided in terms of the provision coverage you required to build that. Apart from that, we have built up a floating provision of almost INR1,000 crores. We did that. We were one of the only bank to do that. And we typically said that keeping the ECL in mind, then we have done that. And going forward also, we’ll be mindful in creating further buffer on the ECL.
Just to give a data point on the ECL on a quick, it’s a draft guidelines, nothing final but then we keep on doing pro forma calculation. Just to clear on the pro forma calculation, the impact on the CRAR because of the ECL because there are two factors here. One is a onetime impact because of the ECL. Another there is — the risk weight also there is another guidelines where there is a significant write-back possible. So the net impact on the ECL CRAR, which can be spread over five years would be somewhere at 0.6% or 0.7% maximum. That is what as per the guidelines, final guidelines will conclude differently.
The incremental provisioning, recurring provisioning year-to-year because of the ECL is only — can elevate the credit cost only by 18 bps as of today. So considering my guidance of 0.6% the average of 10 quarters almost at 0.34%, current quarter at 0.17%, I think we’re adequately positioned over there.
Operator
The next question is from Kunal Shah.
Kunal Shah
Am I audible?
Debadatta Chand
You’re audible. Please go ahead.
Kunal Shah
Yes. Sorry, so once again to touch upon on interest on income tax refund. So you mentioned like 4 to 5 bps of benefit in NIMs of 2.79%. So the core NIMs would have been closer to 2.74% or so. So maybe interest on income tax refund would still be like INR400 crores, INR500 crores even during this quarter.
Debadatta Chand
That’s the routine actually. That’s why last time also I said the tax report happens different amount, different quarter. So as the accounting, it is part of the interest income, which has been classified. So there is no core NIM or other NIM, everything is core for that. But if you talk about the element, then yes, there is a 5, 6 bps impact because of that, and it can be in the range of 270 to 2.74 kind of a level. But that’s purely as a calculation, but my NIM is 2.79%. So that’s the core NIM.
Kunal Shah
Got it. Got it. And secondly, with respect to maybe on the ECL side, last time, you have still created the floating provisions as a prudent measure of almost like, say, INR400-odd crores. We have floating provisions to the tune of INR1,000-odd crores. So is that sufficient and now there is no further need to create the floating provisions going forward?
Debadatta Chand
So as I said, to the earlier question also, the impact on the CRAR would be 0.7%, 0.6%, I mean, 60 bps. At the same time, the recurring provision requirement would be 18 bps on the credit cost. So current provision level is adequate almost to that level, right?
Kunal Shah
Got it. Yes. And just maybe on labor code, any impact during the quarter or no, not really? Maybe we have been making this…
Debadatta Chand
What the auditors has also given in the report, there is no material impact because one of the key impact on the labor code is regard to the gratuity to be provided, right? So as per our current employment practice or the service call, anybody joining the bank, we assume that he stays for five years. So we make adequate provision therein, taking him as a five-year — I mean, he’s continuing for five years. So in that way, there is no impact post the labor code, particularly on the gratuity, which can have an impact. So there is no material impact as far as the gratuity, labor code is concerned. There are other codes, they are in other parts of the code. The bank would be complying with that. Lal Singh sir, anything further you want to add on the labor code?
Lal Singh
No, sir, there is not much impact as far as the labor code is concerned. And these rules are being finalized. So once they are finalized, then we see the actual impact. But right now, there is no impact. Hardly it impacted — it has an impact of INR8 crores to INR9 crores.
Kunal Shah
Okay. And on growth, you have not revised the guidance. You have revised on the credit cost side. But growth, we are already like, say, closer to 10-odd percent year-to-date from March to December, then doesn’t it appear that we will easily beat this 11% to 13% advances growth? Or is there a rundown expected on the corporate, and that’s the reason we are not revising this guidance?
Debadatta Chand
No, actually, there is no rundown here. Actually, as I said, 11% to 13% upside. So this quarter, we are at 15%. So precisely that upside is to exceed 13%. At the same time, look, one thing structurally that we need to be mindful while designing business is with regard to the — what is happening on the resource side, particularly on the deposit market. So although we have seen significant uptick in terms of deposit, my CASA, the saving has been 7.6%, which is one of the — I think one of the best in the market currently, continue to focus on the low-cost deposit but not be very — I mean, over onboard into the wholesale market where the cost is slightly higher.
So given the scenario, I’m not relying heavily on the wholesale market, then I think the advances side, the growth will be somewhere around 15%, 14.5%, 15%. So that’s why we revised that 11% to 13% with upside. So that’s the purpose of, I mean, exceeding above 13% as of March 2026.
Operator
The next question is from Abhishek M.
Unidentified Participant
So you made an interesting comment. You said that if LCR is adequate, then LDR should not matter. So your domestic LDR at 83%, 84%, as long as you have 116% to 120% LCR, this can go up, right? Because even if it goes to 86%, 87%, it will be fine with you? Or do you have to manage the optics of 83%, 84% not going up?
Debadatta Chand
No, look, I mean, you said right. Actually, domestic, we want to be in the 82% to 84%. I mean the optimal that we are looking at domestic is 84%. Whereas global can be around 86% to 88% because the global CD is always higher than 100%. That’s the market there. The point here in terms of resource management, if you are referring, multiple alternate resources where you can optimize cost, then we do not rely on high cost deposit. We have — last 10 quarters, at least we are telling the bulk deposit actually you want to contain that because that’s a volatile element. So we are getting other alternate resources, which is in the form of refinancing, infra bond, a global range of resources. So I think wherever we can optimize cost, we’ll go for that. That not necessarily be a deposit. So in that way, the solvency and the liquidity will be ensure while driving the asset side of the book.
Saying so, on the LCR front, which is more important, we almost our target range of 120%. We normally — I mean, this quarter, it has gone down to 116% because we have sold almost INR28,000 crores of investment book just to take advantage of the rate cycle. And you know what is the rate cycle, we’re going to replenish that because the tenure has been higher now. So it’s more of a treasury operation to slightly go down below 120% but we’ll be in a position to recoup that, I mean, in a quick time in terms of maintaining our target range of 120%.
So in terms of the resource profile, the bank’s resource profile is very strong. Somewhere some change in terms of LDR, we see because we want to optimize that. Suppose I get an alternate resources, which is cheaper than — although continue to focus on the low-cost deposit, cheaper than the bulk deposit or the CD, then obviously, our tendency to go towards that, and that typically not reflected in the deposits. So your LDR seems to be slightly at a higher side. Otherwise, the bank is managing all this parameter, I think, on a sustainable and stable look and the solvency and the liquidity profile is very, very strong for the bank. So anything…
Unidentified Participant
That is absolutely — yes, no, no, that is — I take your point. That’s not my question. So my question was that even if this 83%, 84% LDR goes up because you are optimizing for different liabilities and your loan growth is 15%, your deposit growth is 10%. So anyway, it should go up as you go forward. It shouldn’t be a problem, right? It shouldn’t become a limiting factor. That is all I’m asking. It can go up to 85%, 86%, 87%, it’s fine.
Debadatta Chand
In terms of resource profile because you must be tracking many banks in terms of the profile of resources, our book is much more diversified on the resource side also, not only on the asset side. And again, because we have a large operation, so look, the global LDR, if you look at the international operation, the CD ratio is more than 100% because many of the same sources of deposit, if it is more than 1 year, it is taken as a borrowing rather than a deposit. So these are all — the sources are quite strong. So I don’t think there is any limiting factor for that. The bank continued to grow strong. And our guidance of growing at, let’s say, higher than 13% continue to be there without any issue there.
Unidentified Participant
Sure, sir. And second question is on NIM. So from here, what levers do you see?
Debadatta Chand
See, there are two things. We said earlier at the beginning of the year saying that in terms of resetting of interest both on the asset liability, Q3 and Q4 would be better than the Q1 and Q2. That is one articulation we had it in Q1 and Q2. But Q3 continued to be because there was a rate action in Q3, which was initially while commenting was not was in mind. So the asset liability continue to again reset at a different level, particularly, there is a lot of resetting happening on the fine price asset, particularly on the corporate loan book. So a scenario like that and the absolute number of NIM, if you see comparable to the industry, it’s absolutely at a very good level, pristine level.
In terms of the Q4 exit, suppose you are referring in the process, full year will be 2.85% to 3%, and exit has to be higher than 2.85%. So it may end up somewhere at 2.85% or 2.90% kind of a level. That is what our expectation. Why I’m again hopeful on this, the cost of deposit is now all-time low at 4.75% for the global book and which was [Technical Issues] I mean, 93 or 94 earlier. So the entire book would run at 4.75% at least for this quarter, full quarter. Whereas there is only on the asset side, the repricing continue to be at a lower rate because of the asset market there. So net to that I think we’ll be in a position to maintain that 2.85% to 3% guidance that we are giving for the full year.
Unidentified Participant
It just seems like for the 4Q, there wouldn’t be too much repricing left on the cost of deposit side. And on the yield side, you’re continuing to grow NBFCs, power, AAA corporates, housing, all the lower-yielding sectors where yields are low. So just on an incremental basis, it seems like margins will come down rather than go up. So what am I getting wrong here?
Debadatta Chand
No, there are two things like, as you said the…
Unidentified Participant
Even your slippages are really low. So the interest reversal benefit is also not going to be much incrementally. So whichever lever I look at, I can’t really find a lever, which shows margin will go up.
Debadatta Chand
Actually, the pre-deposit rate was 650, which has been reduced to 625 during the quarter in Q3 on the retail side, right? So the repricing that you are talking about almost done. The impact of the repricing would not have been felt full quarter in Q3, which will be felt full quarter in Q4. So that’s the upside there in the book in that way. So the repricing due — the only challenge here is with regard to the repricing due on the bulk deposit. Actually, that market is slightly still tight. So that can put pressure. So there are ups and downs therein.
See, on the RLLR side, external benchmark, they are already done. The corporate, which was getting fine price now because the tenure has been elevated, I mean, things are looking different now. the repricing, which used to happen at a lower rate now going to happen at a higher rate because the bond prices have gone up, the yields have gone up. So there are both positives and negatives. And for a bank like our size, I mean, 6, 7 bps optimizing on the NIM is not an issue. So we will be fully the same, right? So 2.85% to 3%. Mr. Tyagi, anything you want to add on the repricing piece?
Lalit Tyagi
Yes. So sir, in fact, till November, there is a data from RBI also, which says that on the fresh deposits, the transmission of the previous cuts before the December cut has happened. But on the stock, it is still happening. So partly, I’m supporting your argument, MD Sahab, that still stock is yet to be repriced. So probably there is some benefit, which is still to accrue on the deposit side. And on the advances side, particularly on the corporates, if no further cut is there, so largely, whatever demand they have made, largely, it has been met till last quarter. So now looking to the elevated capital market rates, probably corporates are also adjusting to the new reality of slightly higher pricing as we feel.
Operator
Next question is from Piran Engineer.
Piran Engineer
Congratulations on the quarter. Just firstly, one clarification on one of your previous comments when you mentioned that incremental credit cost will be 18 bps due to ECL. Are you just referring to for the first five years of transition, that is the 18 bps or the sustainable steady state is 18 bps?
Debadatta Chand
Sustainable steady state. Actually, there are two impact of the ECL. One is impact is because of the onetime impact on the CRAR. And we are looking at almost — actually we are netting it off. There is an ECL impact and there is — I mean, there is some kind of a reversal or pullback happening because of the risk weight getting changed as per the draft guidelines. So the net impact is going to be 60 and that would be spread over five years. So the spread over part is over.
On an ongoing basis, you need to have this ECL provisioning. And our normal thumb rule calculation, which may undergo a change talks about the impact of 18 bps on an ongoing basis, year-to-year basis. That’s why actually what we have done as on today, our eight, nine years average credit cost is almost at 0.34%. So cushioning that we got into a revised credit cost guidance of credit cost not exceeding 0.6% as against 0.75%. So that’s the statement I made earlier.
Piran Engineer
Understood. Okay. Okay, sir. Then just getting on to my question. Firstly, in the agri book, excluding gold loans, do we do farmer finance, which has RBI had some observations with some private sector banks and made them — they were not PSL compliant, et cetera. Did we also have such an observation?
Debadatta Chand
No. Frankly, we were no observation on the PSL categorization classification. We do big farm lending. So absolutely no.
Piran Engineer
So then if I may ask, none of the PSU banks have had this problem. What do PSU banks do differently that they are on the right side of it and private banks, all the top three banks have had observations.
Debadatta Chand
You have to ask that…
Piran Engineer
It’s a fairly straightforward product. So…
Debadatta Chand
I mean I think I don’t know but I have to ask the why — what they did indifferently so that…
Piran Engineer
Let me ask you this way, sir. Do we track the end use of the loan once we give it to a farmer?
Debadatta Chand
It’s a farm loan…
Piran Engineer
We can’t, right?
Debadatta Chand
Absolutely. The farm loans are for farm loans, right? So as per the guidelines, whatever we do comply to all those guidelines.
Piran Engineer
No, no. I mean, that’s fair. But how would you track the end use of the loan? If a farmer takes some money and buys a bike or a TV, how will you know?
Debadatta Chand
No, look, these are guidelines. Actually, the banks are not doing farm loan only recently. We’ve been doing for decades essentially now, right? So in that way, what is the compliance required to extend farm loan, the bank is complying all, including the invoice that is being prescribed as per the circular or as per the guidelines. So absolutely no issue.
Piran Engineer
Okay. Okay. That’s good.
Debadatta Chand
In terms of farm loan also, it is not that a certain percentage can be used for consumption, specifically referring to your part. Lal Singh sir, anything you want to support on this?
Lal Singh
Yes. We — in fact, in farm loans, we have the system of post inspection and verifying the end use in the larger farm loans.
Piran Engineer
Understood. Okay. Then my next question is on the MSME book, INR1.5 lakh crores. Just can you give a sense of how much is secured versus unsecured? And how much of the book is working capital versus term loans? Some sense on the average ticket size of that book?
Debadatta Chand
We have mostly a secured book there because our unsecured book is with regard to the cash flow base, which we have launched recently. Otherwise, whether it is MSME working capital loan, term loan or other any loan we given the MSME, which are by and large secured. Anything, Lal Singh, you want to say?
Lal Singh
No. Our book is mostly secured book. And wherever there is unsecured, that also is covered by the CGTMSE coverage or NCGTC coverage.
Piran Engineer
Okay. And like is it mostly working capital or mostly term loans?
Lal Singh
It’s on both way. It’s a composite.
Piran Engineer
The split, sir, if you — just rough split 50-50, 70-30.
Lal Singh
No, I don’t have the exact figure.
Debadatta Chand
We’ll provide you that data.
Piran Engineer
And the ticket size would be like INR50 lakhs to INR1 crore or is it higher?
Lal Singh
It’s around INR1 crore to INR5 crores.
Piran Engineer
INR1 crore to INR5 crores.
Operator
The next — I think the last couple of questions. First, Ankit Bihani, please.
Ankit Bihani
So my question was on margins. So our nine-month margin now stands at 2.88% and is towards the lower band of our guidance. And now with full impact of the 25 bps cut coming in, would we want to revise our guidance?
And the other thing is that you’ve highlighted that interest on IT refund is part of core NIM but this number is very volatile. Further, when you say it’s core NIMs, is it something structural and we’ll continue to see for the foreseeable future? Or it should be limited to a few quarters? How would one read into it? Because other banks refer this item as one-off.
Debadatta Chand
Two things. One is with regard to you talked about the NIM liability profile because our cost of deposit has gone down significantly low at 4.75% right? So in that way, the reprice almost we have INR130-odd crores of repricing due partly because of the bulk deposit and partly because of the core deposit. So that is going to significantly upside the NII in that way. On the asset side of the book, yes, the BRLR cut has already happened. We have external linked benchmark. There is a book, which is not out of — I mean, that is beyond MCLR. But [Indecipherable] because of the rate structure on the 10-year G-sec and all, again, the repricing happening on a couple of so-called fine asset is also at a different level, higher level.
So in that way, the full year NIM would be in the range. There can be changes there. When there is a transition happening in the entire economy, particularly banking sector, both on the asset because of the rate, precisely, I mean, putting at one is not possible. But then the level that you are declaring also, you can see in the market is a quite elevated level because of a core strategy. We have a lower dependency on the bulk deposit we have said multiple quarters earlier.
Secondly, in terms of the asset book, we have a growth on the RAM, which is stronger but it is NIM accretive. So I mean, we are not getting into risky like personal loan growth is a normal 12% kind of thing. So in that way, fairly — being operating at 2.85% to 3% is a fairly a good level for us to achieve that. And I think we are hopeful of doing that, right? That is one.
Secondly, the core NIM that you talked about in the fund. So, look, it’s a guidelines, which came saying that this — the interest on income is refer to be taken as part of the income, right? That was a RBI guidelines. So otherwise, suppose you take that as a one-off and a noncore, then it should not have been that guideline. The guidelines clearly says about its an accounting treatment as per the regulatory norms. So that’s a hitting. So in terms of volatile component of that, every year, we get something on that because of the interest on that. Some quarter, it can be higher or lower.
And what is the delta? I mean, negative delta you’re talking about INR300 crores, INR200 crores or INR400 crores. On a book where my revenue is almost INR1,20,00,000 crores, INR1,30,00,000 crores. I don’t think it’s something — generating INR200 crores, INR300 crores is a one-off or a volatile component. What is the one-off we normally refer? One-off is we refer, let’s there is NCLT — all of a sudden, there is NCLT recovery substantially boosting the recovery of TWO. That’s one-off. Suppose you have a sale of an investment, which was not part of a normal float investment. It is more of a strategic investment, which is sold. So these are one-offs.
So, I think in that way, my comment was there, and we need to take in that context. So as far as computing, we don’t have to define a core NIM or a normal NIM. It’s a core NIM only. The element of tax reform, the impact can be around 5, 6 bps depending upon which quarter we get how much in that way.
Ankit Bihani
Okay. And my next question is on the credit cost front. So the credit cost this quarter has been quite low at 25-odd bps. But it has been supported by decline in PCR also, which has declined by 190-odd bps on a Q-o-Q basis. If I adjust for that, credit cost would have been largely flat on a Q-o-Q basis. How should one read into it?
Debadatta Chand
The PCR level, you need to maintain best on asset quality. And if you look at our bank for the matter, last 13, 15, 16, 18 quarters, the trending has been quite — it’s not a volatile number we see on the asset quality. I mean the trending has been clearly every quarter-to-quarter is declining in terms of the GNPA and net NPA. So we at a good level of asset quality in terms of the book in case you look at how much is the book and above. So subset there is a normalized credit cycle, which we are seeing now, which is likely to last for longer years. I think there is no concern with regard to the PCR level that you are taking. And our PCR is lower, possibly the asset quality is better. We may not provide for all those, right? So the credit cost typically is a function of your slippage and all and how much provision you are making.
Our last eight, nine quarters, credit cost is the average of 0.34%. And that’s why we are revising from like earlier, many people used to ask us saying that why you are not revising your 0.75%. But first time, we are getting a comfort of revising because the average has been below this range. So that’s something we are doing. So in that way — I mean, I think we’re fairly balanced in that way. I mean, our asset quality better, that’s why PCR, many of the large banks, if you see PCR, a couple of banks are definitely higher but their journey on the net profit and asset quality are different behavior than the asset quality behavior we do have. And that typically puts you at why you need to put your PCR, right, so in that way. So anything, Madam Beena, would like to talk on the PCR?
Beena Vaheed
We’re at a comfortable state, sir, with regard to PCR because our slippages have been low, and there’s no requirement for an additional provision at this point of time.
Operator
That’s the last question, we will be able today.
Debadatta Chand
Ankit, there is hand raised, rather if you can take it.
Operator
Then the last question, we will take from Rikin Shah.
Rikin Shah
Just two questions. First one, you have been on the journey of bringing down the bulk deposit share over the quarters. But in the last few quarters, the bulk deposit growth has been higher and the share of retail term deposit has been declining. So why are we shoring this up again, especially when the wholesale rates have started to firm? That’s my first question.
And the second question is, just if you could guide us perhaps as to what proportion of the term deposit book is yet to reprice. So let’s say, 20%, 30%, 40%, whatever that percentage could look like?
Debadatta Chand
Bulk deposit, as we said, the moment you fund your asset out of on the incremental bulk deposit and possibly you are not focusing on the low-cost deposit. So last 6, 7 quarters, we focused on how do you focus on low-cost deposit. And it’s not an objective but if you look at the CASA growth of the bank vis-a-vis what is happening in the system, not that we are at the top but we are one of the best in the market in terms of the CASA growth consistently for last many quarters. So clearly, within and outside, the message is that we need to rely on low-cost deposit more. That’s going to give you a sustainability and also it’s going to be a gold reserve for you for long term. That’s something the fundamental core or the sustainable that we normally talk about.
So the bulk — we have to rely on bulk at some point of time, the reason being there is a wide gap between the asset growth and the liability growth. Suppose this quarter itself, suppose I grow at 15% on the asset and the liability growth, although liability has a larger base. But then somewhere I have to depend upon the wholesale funding. Actually, the bulk is more of a wholesale borrow. So the bulk is not the highest cost at every point of time. Some of the time, the bulk rates are quite benign. So at some point of time, the rate of the bulk was almost at the rate that the retail used to pay. So in that scenario, we will try to slightly front run the bulk in terms of acquiring that. So it’s a balancing in terms of how do you manage. But the theme is that, I mean, I should fund my incremental asset more out of the low-cost deposit rather heavily relying on the bulk deposit.
So as of today, if you look at the bulk as a percentage, actually, this data you may not get from many banks. It’s almost at the bulk as a percentage of — I mean, the domestic deposit it is almost at 19%, 20%. That’s, I think, a fairly comfortable level for a bank like us to operate. Although some of the quarters, you would have seen there is a bit of a growth happening. So I’ll not say that we will not rely on bulk. But as an objective, we will not be funding incremental asset only by raising to a large extent. So we are not in a balance sheet expansion mode at a cost. So we want to rationalize cost. That’s the key thing. So that’s why we will find a couple of quarters the bulk growth is higher. Reason being the asset is growing faster, right? So the system need to give enough deposit to us to only rely on the low-cost deposit, right?
Rikin Shah
Got it, sir. And sir, on the second question, please, what proportion of term deposits are yet to reprice?
Debadatta Chand
I think roughly a ballpark number can be around 25% kind of a number but then we’ll come back to you on this exactly data I don’t have as of today.
Rikin Shah
Got it, sir. And sir, one last data keeping question. What is the quantum of outstanding standard restructured loans in this quarter?
Debadatta Chand
Just — it is not much actually, that’s a subject we…
Rikin Shah
Yes, it’s a very small number usually around INR6,000 crores, INR7,000 crores.
Beena Vaheed
It’s around INR8,000 crores.
Debadatta Chand
See, initially, when the standard restructure we started post-COVID, actually, what is important is the slippage that was happening, migration that was happening. Now that is completely stopped. So there is no concern with regard to it. It is more a stress book as far as standard restructure but the number is INR8,000 crores.
Operator
Thank you. I would request Sridhar sir to please give the closing remarks and the vote of thanks.
I V L Sridhar
So I would like to extend my sincere gratitude to all of you for joining us today for the announcement and discussion of our financial results. Should you have any further questions, please feel free to reach out to me or to my Investor Relations team. Thank you once again for your time and the continuous support. Have a great evening. Thank you.
Debadatta Chand
Thank you very much. Thanks for joining the call.