Bank of India Ltd (NSE: BANKINDIA) Q1 2026 Earnings Call dated Jul. 29, 2025
Corporate Participants:
Unidentified Speaker
Rajneesh Karnatak — Managing Director and Chief Executive Officer
P.R. Rajagopal — Executive Director
Analysts:
Unidentified Participant
Niteen S Dharmawat — Analyst
Ashok Ajmera — Analyst
Ramesh Bhojwani — Analyst
Presentation:
operator
Ladies and gentlemen, on behalf of bank of India, it’s an honor to welcome all our esteemed analysts who have joined us in person as well as virtually. We are pleased to announce bank of India’s financial results of Q1FY26. As you all can see, the dais is already graced by our MD and CEO Sir Shri Rajneesh Karnatak Ji who’s flanked by the Executive Directors Sri Pr. Rajgopalsa, Sri Subrat Kumar sir and Sri Rajiv Mishraji. So, thank you all for joining us today. I would like to invite, or rather it’s my honor and privilege to invite our MD and CEO Sir Shri Rajneesh Karnatak Ji to please address this gathering.
Rajneesh Karnatak — Managing Director and Chief Executive Officer
Sir. Thank you so much, Madam. Ladies and gentlemen, good evening and welcome to today’s analyst meet. As I share with you the financial results of the bank for Q1FY26. It is my pleasure to welcome each one of you for the interaction. Thank you for joining us. As the world advances towards the later half of 2025, the global economy is steering through a tepid growth environment emanating largely from trade tariff frictions and escalating conflicts. However, domestic growth underpinned by easing inflation continues to shield India from global headwinds. Its multi dimensional economic framework combined with policy responsiveness, strong foreign exchange reserves, increased public capex and prompt trade diversification helps to sustain against the external shocks.
Alongside the RBI through a combo of rate cuts, liquidity injections, strategic bond operations and digital infrastructure enhancements is actively stimulating the demand, easing credit costs and backing the fiscal stability. Together, these indicators have been contributing towards maintaining investor confidence and moderating the spillover impact of disruptions on growth and inflation. Rapid digitization and fintech collaborations are transforming operations and customer engagement in the financial world. Against this backdrop, the Indian banking sector is emerging more resilient and dosed by stronger balance sheets, higher capital adequacy and lower nps. The key focus of our bank will be enhancing customer experience through all channels and acquisitions of of new customers consistently by providing innovative and niche services.
This will lead to fortification of low cost deposits I.e. cASA and retail term deposits for sustainable credit growth. My speech will be divided in three parts for this coverage. First part with respect to the initiative, second part with respect to the business parameters and third part with respect to the ratios and the profitability on the initiative sides. The first part within that is with respect towards banking for Vixit BHARAT Here we have the first thing Repo Linked Export Credit facility in Indian Rupees for corporate borrowers. To capture export credit business we have devised the Repo linked Export credit facility in Indian Rupees for corporate borrowers.
Second thing With a view to support green energy initiatives and to expand our green finance portfolio, bank has introduced by Star Energy Saver Vendor Finance scheme to provide tailored financial solutions to vendors executing residential and commercial power projects, solar power projects, MY Correction Digital initiatives functionality for linking pre sanctioned credit lines to the UPI platform has been implemented. This initiative aims to broaden UPI functionality by allowing transfers to and fro pre sanctioned credit lines in addition to the traditional deposit accounts for driving paperless banking, a new next gen document management solution is being implemented with enhanced customization and complete data migration on the HR initiatives during Q1 FY26 the bank has rolled out the next step of Project Saksham which includes selection of sector champions.
The project has been undertaken to improve every employee sector specific knowledge and to develop financial solutions for cluster blade finance more particularly for the MSME segment. Second, a new rewards and recognition policy BOI Star Grace has been introduced to enhance employee engagement, motivation and satisfaction while aligning individual and team performance with the Bank’s strategic objectives and the third one being the revamped job Family policy. Job families will be closely aligned to the Bank’s learning and development initiatives including customized training and mentorship programs at our esteemed centers of excellence. As regards the business initiative, business part is concerned the first being global business has grown by 10.37% from 13,64,000 crores in June 24 to 15,6,000 crores in June 25 with an incremental growth of more than 1,41,000 crores.
Global advances have increased by 12.02% on a yoy basis from 6 lakh crores to 672,000 crores in June 25, with an incremental growth of more than 72,000 crores. Global deposits have increased by 9.07% on a yoy basis from 764,000 crores to 8,33,000 crores in June 25th with the incremental growth of more than 69,000 crores. Domestic gross advances have increased by 11.24% on a yoy basis from 5,8,000 crores to 5,65,000 crores in June 25. RAM advances have increased by 16.69% on a yoy basis from 2,81,000 crores to 3,28,000 crore in June 25th constituting 58% of the total.
Domestic advances as on June 25th. Domestic deposits have also increased by 9.62% from 6,48,000 crores to 7,10,000 crores in June 25rd. CASA has also increased on a yoy basis from 2.75 lakh crores to 2.82 lakh crores as on June 25th with an incremental growth of more than 6,000 crores and the KASA ratio has stood at 39.88%. And as regards the key profitability and asset quality, things are there. Operating Profit has improved by 9% on a yoy basis and stood at Rupees 4,009 crores for Q1FY26 as against 3,677 crores in Q1FY25. Net profit has increased by 32% on a yoy basis and Stood at 2,252 crores for Q1 this year as against 1,703 crores in Q1 of FY25.
Shippage ratio has stood at 0.33% in Q1FY26 as against 0.35% in Q1 of FY25. Credit cost has also improved to 0.68% in Q1FY26 as Against 0.85% in Q1. For FY25, non interest income has increased 66% on a yoy basis and stood at 2,166 crores and as against 1,302 crores in Q1FY25. There has been improvement in asset quality with reduction to both gross NPA and net NPA ratios. Cross NPA ratio has improved by 170 basis point on a YoY basis to 2.92% in Q1FY26. Net NPA ratio has improved by 24 basis point to 0.75% in Q1FY26.
As regards BCR is concerned, provision coverage ratio is concerned it has improved to 92.94% in June 25 as against 92.11% in June 24. As on June 25 Bank CRAR has improved to 17.39% from 16.18% as on June 24 in tune with growth of the global economy. The guidance for global advances growth will be at around 12 to 13% and the global deposit growth would be at around 10 to 11% in FY26. The key focus area will be low cost deposit mobilization for protecting our net interest margins and increasing the high yielding advances for consistent growth in the business with emphasis on digital initiatives, improvement in asset quality and arresting the slippages. The endeavor of the bank will be increasing efficiency and profitability along with the focus on compliance and better corporate governance. I would like to thank all of you once again for your continued support.
The floor is now open for discussions and question and answers. Thank you so much.
Questions and Answers:
operator
Thank you very much sir. Yeah, we are open now for the questions. The representatives would be handing over the mics to you. Kindly raise your hands and please stick to two questions at a time. Yes, kindly introduce yourself and your organization.
Unidentified Participant
Thank you. Hi team. Thanks for the opportunity. This is Bhavik from NCRID Capital. I have a few questions. So firstly as in net NPA is down to 0.8% hello. Yeah, yeah, net NPA is down to 0.8%. How far do we go to reduce this further? Any target for this year and credit cost guidance? I’ll follow up this with like few questions after you answer. So credit cost guidance for this year our net NPA ratio is 0.8%. What do you target to get to in F26
Rajneesh Karnatak
as far as the credit cost is concerned? See we have shown a credit cost of 0.68%. In March we had a credit cost of 0.76%. As far as the guidance on credit cost is concerned we are giving a guidance at around 0.70% for FY26. As regards the other question was with respect to the
Unidentified Participant
so net NPA as in do you want to take it down to 0.5?
Rajneesh Karnatak
Yeah. So net NPA. Yes, we have improved our net NPA. Also as I said from we are presently at 0.75% as against 0.99% in Q1 of FY25. So the guidance for that for net NPA is also 0.70% that we are giving.
Unidentified Participant
Okay, so 70 basis point of credit cost partly is because of reducing the net npa.
Rajneesh Karnatak
Yes.
Unidentified Participant
Okay. Okay. And sir, what has been the interest on it refund this quarter versus last quarter Interest on income tax refund?
Rajneesh Karnatak
Income tax refund, Income tax refund. I don’t think we don’t have any this quarter. We did not have any income tax refund.
Unidentified Participant
Okay, okay answer. We the recovery from written off was quite muted this quarter. As in any guidance for the full year. And how should we think about the treasury gains? Very strong this quarter. Do we assume that 70 to 80% of the treasury gain is done for the year?
Rajneesh Karnatak
Yeah, as far as the recovery from written of accounts are concerned. See in Q4 we had some three lumpy accounts in which we had recovery because of which you see a very big figure in the Q4 number as far as that is concerned. So this time as far as the return recovery from the return of account was concerned, it was not that kind of big ticket accounts which were there. So that is why you are seeing a muted number over there. The second part is with respect to the treasury gains. Yes, this quarter has been a good treasury income for us. And as you are all aware that when the rates are coming down then the treasury makes some profits over there.
And during this time there was not much of margins as far as the advances was concerned because of the reduction in repo rate and that 60% of our advances are EBLR external benchmark linked. So but we expect that in the coming quarters that in the Q2 and Q3 this thing would improve, start improving now that we are expecting that the migration, the transmission of interest rates, particularly on the liability side would be happening. So the rate cuts on the deposit side started happening from the month of October 2024. So the one year cycle will get completed in October 25th.
So with the next quarter going forward, we should be expecting the transmission in deposit rate. And once that happens, both the net interest income and the net interest margin would start improving.
Unidentified Participant
Okay, sir, so thank you so much. I’ll just come back in the queue if I have any more questions.
operator
Yes, thank you very much. I have got a question online from Mr. Nathan S. Dharmawat from Aurum Capital. Can the Ad Factors team put him through? Welcome Ajmiraji.
Niteen S Dharmawat
Hello, Am I audible? Sir?
operator
Hello, can we have Mr. Nitin Dharmavat?
Niteen S Dharmawat
Yeah, I am there ma’, am. Can you hear me?
operator
Yes, yes.
Niteen S Dharmawat
Okay. And thank you for the opportunity, sir. I must first congratulate you for the improvement in all important asset quality parameters in this quarter including gross NP ratio, net NP ratio, PCR slippage ratio, credit cost. But as we know that this comes at a cost, our ROA has come down now to 0.82% from 0.98% in the previous quarter. So what will be the guidance for ROA for the full year and when we are expected to reach at least 1% RO and what will it take to be there?
Rajneesh Karnatak
Yeah, thank you so much for this. So as far as the NIM is concerned, See we have. The first question was on the NIM also. No,
Niteen S Dharmawat
no.
Rajneesh Karnatak
Okay. So as far.
Niteen S Dharmawat
Yeah, it was on ROA. Yes.
Rajneesh Karnatak
Okay. Okay. So as far as the ROA is concerned we have shown a ROA of 0.82% in this quarter. So if you see the ROA for the whole year last year it was 0.90% and for the Q1 of FY24 it was at the 30th of June 24th it was at 0.70%. So we have improved the ROA by nearly 12 basis point as far as the ROA Is concerned. But we are giving a guidance of around 0.90% for FY26 only because of the fact that the net interest income and net interest margins are in pressure in this financial year. So we are giving a guidance of 0.90% for FY26.
Niteen S Dharmawat
Thank you sir. And my next question is when are we expected to reach at least 1% ROI and what will it take to be there? Just a follow up question on this only
Rajneesh Karnatak
see if you see the data in Q4 we were very near to 1%. In fact we were at 0.98% in Q4 of FY25. So this year once this stabilization of the interest rate happens and the passing on of the interest rate happens on the liability side and the names start improving net interest income definitely we will be in a position but much better position to give you in a guidance when we will be reaching that 1% mark.
Niteen S Dharmawat
Got it. My next question is sir, our cost to income ratio has gone up by 300 basis point quarter on quarter. So what are the reasons for this where where it is likely to stabilize it is right now at 51.47% versus 48.53% in the previous quarter.
Rajneesh Karnatak
So cost to income ratio we are at 51.30%. If you see our Q1 numbers of the previous year at that time it was 51.47%. The guidance that we are giving it is at around 51% for the simple reason that Q1 normally the income is muted in the books and the interest expenses are also there.
So with the ensuing September and December quarter we expect that the credit will flow will improve, interest income will start coming to the bank and the cost of income to income ratio would also get moderated.
operator
Thank you Nathan for joining us. Yes, Chakra sir,
Unidentified Participant
good evening. Congratulations on very stable number and challenging times led by liquidity and global uncertainty. The monsoon has been very good. Seems that global tariff challenges may get over India still needs to figure but most of the geographies which do global trade is already in the list with tariff number we’ve done well on ram. So first is how is visibility on RAM led by the India positive factors and retail growth is likely to exceed the market expectation. And what is the yield on ramp? First, first question.
Rajneesh Karnatak
Yeah. So as far as the RAM is concerned, as you have seen that we have grown well in the RAM advances. So the YUI growth also has been more than 18% in the RAM segment. And if you see the entire component of the book, our RAM component is at around 58% of the portfolio and the remaining being corporate advances. And with the kind of growth that we are seeing in the RAM book and the kind of pipeline that we have. So we have a pipeline of around 80,000 crores as we speak. So out of that 80,000, 10,000 crore plus is the pipeline in the ramp segment and remaining is in the international and the domestic corporate book.
So we would be growing our domestic corporate book also quite healthy. But nonetheless I can say that the component of RAM and corporate would be at the same level at around 58% and 42%.
Unidentified Participant
My next question is we have done exceedingly well compared to most of our peers in casa. I’m sure that bank has taken a lot of initiative led by technology, tap banking and various things. Do we see accelerated performance where CASA is concerned? Despite challenging times led by initiatives at bank of India, they should be stable between 38 to 40%.
Rajneesh Karnatak
So internally at the top management side we are targeting that we should be at 40% for FY26. So that is the CASA growth that internally we are targeting within ourselves that our CASA Percentage should be 40% in FY26 when we close the financial year this year also this time also if you see in this quarter we are shade below 40%. There was lot of pressure as far as the CASA numbers were concerned in the entire banking system to just give you a number that we are still above sequentially above the March number in the CASA as far as CASA is concerned. So incrementally, if you see on the yoy side we have grown by around 6,700 crore Casa on a YOY number.
Lot of many initiatives we have taken within the bank for improving the CASA numbers. And the resources department is working quite efficiently over there. We have now designated regional relationship managers. We have a thousand branches which are high net worth individual branches, key branches. And then we have lot of digital initiatives which we have taken on the CASA. We have opened 200 new branches in last financial year, 203 branches. New branches will be opened in this financial year also. So all these initiatives taken together we are Very confident that we’ll be able to sustain our CASA numbers and to meet with the credit growth.
Obviously we will be taking retail term deposits and bulk deposit also. Nonetheless we will be targeting within ourselves that we maintain the CASA ratio at around 40%.
Unidentified Participant
Sir in most of the bankers in the Q and A indicating at the back end of the year we should have quarter 250bps and majority say two cuts, not one cut. Keeping that in mind with deposits getting repriced mostly in Q2 or Q3 year on year basis how do you see treasury and US yield on most of the advances panning out over the period of year?
Rajneesh Karnatak
So at present see already there has been a 1% repo rate cut from 6.5 to 5.5% and in the short term we do not see any further repo rate cut coming because for the simple sense that enough liquidity is there in the system.
So when we see yesterday there was a liquidity of more than 2002 lakh crores and there already has been announcement from RBI side with respect to the CRR cut there also 1% cut has happened which will come effective on the 6th of September in four tranches. Again there will be liquidity coming into the system. So in the short term we from the in house do not expect that further repo rate cut would be there and we expect that the transmission of deposit rate to be happening in the Q2 and more so in the Q3 quarter and when the NIMS should stabilize and start should start improving from the Q3 quarter
Unidentified Participant
specifically led by RAM and the initiative which you’re taking for betterment on tat, what kind of digital spend and spend on human resource and connected whereby the bank’s performance improves and your cost to income ratio gets more rationalized or stable compared to where we are.
Rajneesh Karnatak
Yeah so just to follow on on the previous answer I would just like to add one more thing that we have also opened nearly 20 our emerging corporate credit branches. So we are focusing on our emerging corporate branches also in mid corporate advances also emerging corporates which will become corporates. From there also we are getting good traction and the pipeline which I said of 80,000 crore also includes the pipeline which are coming from the emerging corporate credit branches because there is where we see the margin for the bank because there we can lend at MCLR rates, there we can get better LCBG commission, better process fee, better upfront fee.
So that is one piece, that is one strategy to improve the margins for the bank that is one part. Second thing is with as Regards the digital initiatives are concerned. So there I can tell you that more than 1 lakh cr of underwriting which has happened during the last 12 months has been on account of the fresh sanctions is through the digital initiative. So already our RAM book either whether it is retail, whether it is agriculture, whether it is msme, they are on the digital platform. So if you see our presentation also nearly 20 products are there in the RAM segment and which are under the digital mode.
So the sanctions are going on the digital mode liability side. Also many products, in fact six products are there on the liability side which are automated under the digital. So a lot of initiatives we are taking on the digital side to build operational efficiency. Number one, to build the kind of platform wherein the branches are less burdened with the footfalls which are happening at the branches and the customers able to do the transaction through the digital mode, through mobile banking, through Internet banking. So this is a clear initiative. As far as the spending on IT is concerned we are seriously spending on IT not only on digital but also on the technology part itself IT and also on cybersecurity.
So last year we had spent nearly 2,000. We had a budget of nearly 2,000 crore out of which we were able to spend nearly 1850 crores. This year again we have kept a budget on it. When I say it again on it digital and cyber security of nearly 2000 crores. And again this year we’ll be spending majority of the money to build more operational efficiency within the system so that more we go into the technology and automation so that there is less burden on the staff and they are more focused on sales and marketing.
Unidentified Participant
So in my first question indicative yield on ram should be 9% or better.
Rajneesh Karnatak
So yield on exactly number, exact number. So I am not having at present for the RAM.
P.R. Rajagopal
Yes, it is is around.
Rajneesh Karnatak
Yes, 9% should be at around 9%.
P.R. Rajagopal
Yeah and it has been at 9% plus.
Unidentified Participant
Thank you.
Rajneesh Karnatak
Yeah,
Unidentified Participant
thank you for answering
Rajneesh Karnatak
it is it should be somewhere more than 9% only the best in class housing loan we are giving to the the customer which is rated 840 and above CIC score is 8%. So right. So that is the lowest we are giving. So otherwise to our rates are above 9%. So in Ram we are expecting a rate yield to be more than nine.
Unidentified Participant
Thank you sir. Thank you all for the.
operator
Thank you very much. Chi Sir, I’ll just take one online question. This person is waiting since long long time. He’s Mr. Dhiraj. He’s a retail investor sir. And he has put the question that the bank has reported 1160 crore worth fraud cases with 100% provision. With 100 provision what specific control controls failed and what measures are being implemented to prevent recurrence. Also can you clarify how many of these were internal control failures versus external frauds and any staff collusion?
P.R. Rajagopal
Mr. What is his name? You.
operator
Siraj Dheeraj. Mr. Dheeraj.
P.R. Rajagopal
Mr. Dheeraj, if you’re listening my answer is this. This time what has happened is. No. There was a supreme court judgment which came up which said that in all those cases wherever no bank has already declared fraud we have to again re examine and then see whether there is a fraud or not. So this 1500 crores that we have declared this time is actually a re examination of the earlier frauds and again reaffirmed as frauds in the bank. There are no internal control failures as such. Out of that you know most of them are credit related frauds.
Where in terms of RBA definitions and all this became a fraud. So there is. There is. There are no operational frauds as such in the entire 1500 crores that we are talking about. 700 crores, one big account, another is 600 crores. Plus more than 94% of these frauds are all credit related frauds which are already declared as frauds in the previous years which again have been reaffirmed. This.
operator
Thank you very much Sir. I think Mr. D is satisfied with the answer. Yes. Yes sir.
Ashok Ajmera
I’m Ashokaj Mera, Chairman Global. Sorry for. I got terribly stuck in the BKC traffic to come from Centricis. Of course I don’t know how these people made it. They must have immediately left. We had an interaction with the MD and other EDs. So having said that sir, on this fraud point only because I’ll just pick up from here only that those accounts which were reviewed, I mean where the client was called and that process was completed, the outstanding was only 4050 crores outstanding balance. Whereas the total fraud outstanding in this quarter is much much higher.
For which also you have made 100% provision. I would just like to know that in this quarter how much provision on account of fraud we have made which has gone to provision in P and. L account
P.R. Rajagopal
that I’ll give you exactly. But basically what has happened is already these provisions were held in these accounts. So they were again carried during this quarter. That’s all. See, 1500 crores of accounts. They already had provisions. We never reversed it. So after reaffirmed again these provisions are carried from the earlier quarters. That’s all you wonder by Clear. Second question I can give you
Ashok Ajmera
offline. Because in this quarter also there are fresh frauds for which also you are. Saying
P.R. Rajagopal
no fresh frauds are. There is only 30 crores worth of fresh frauds are there?
Ashok Ajmera
Okay, that’s what only I just wanted sir. Of course first compliments on a very good business growth. I mean in this difficult times other people also might have complimented you good business growth good. I mean coupled by credit and deposit growth at the same time good asset management. Even the our GNPA and NNPA have also gone down well provided for. Having said that there is some additional or extra pressure on the operating profits I think by about 850 crore odd crores the operating profit with a VD last quarter not the sequential quarter. So and out of that again 500 crore is offsetted by decrease in the salary in this quarter if you take it from the March quarter and something added by the lesser recovery from the return of account which is also substantial vis a v the last quarter.
So what I would like to know number one the reduction in the salary which is shown which is there in this quarter whether this is going to be the run rate for remaining 3/4 as far as the salary is concerned so that we can take it as the normal expenditure and nothing of March is going to spill over here. So this is number one. Number two again recovery from return of account. Of course I can understand in June there is a slackness but going forward what is our target for the whole FY26 for recovery from return of account as well as there is a pressure on the recovery of the cash recovery also I mean if you look the NPA sheet so there also.
So overall what is the total recovery target for the FY26 out of that how much is from the written off account and the normal recovery and upgradation which is there. And I think for the for the first time after many quarters we have gone below 40% in CASA. So again is it one off quarter we will regain that 41 42%, 42 and a half percent in the coming three quarters. And one more if I can add on is something on fresh slippages which in the first quarter in the sum of the other bank is much much lesser than the March quarter.
In another case it is almost the same I think 20082100 rather little more than the March quarter 2149 crores. So on the overall color on the slippage for the whole year these are some of the and whether any SBLC commission is there in this quarter which has been taken in the other income.
Rajneesh Karnatak
Okay, so thank you. First of all I’ll reply the first thing which is related to the staff expenses in that in Q4 of last financial year we had booked the expenses with respect to the made provision for the pli. So there is a performance linked incentive with the from the DFS PLI1 and PLI2.
So the entire amount of the which we have to pay out to the staff we have made the provision. So no more provision will be required for the last financial year FY25. So that is one fact. That is why the inflated figure you are seeing in the staff cost in Q4 as against the Q1. So the run rate of staff expenses will be near to that number only in this in the ensuing quarters of Q2, Q3 and Q4. That is the first clarification. Second is with respect to the operating profit here again as you rightly said that there are certain items which were in the return of accounts.
There was bulky item, there were three in fact big ticket advances wherein recovery happened in the Q4 of the financial year which you are which we can see that non interest income had increased which was not there in this quarter in Q1. But we are expecting that in Q2 there will be certain recoveries which will be coming from the return of accounts number I cannot give you at this moment. There will be certain recoveries coming from there and also from the accounts which are NCLT accounts in the Q2 that will be there and again the operating profit will again get improved.
As I said with the transmission of rates happening and with the deposit rates coming down and the interest expenses coming down from starting from this quarter more we would we should be seeing improved net interest income from this quarter which will help us to improve the operating profit going forward. So that is another part. The third part is with respect to the recovery as far as recovery is concerned that we are expecting a recovery. Last year we had done a recovery of gross cash recovery of nearly 9,500 crores. So this year internal target is that we should do a recovery gross cash recovery which includes recovery from return of account which also includes recovery from UCI and URI which is the interest which has been applied somewhere at around a similar figure of around 9,500 crore.
So with that kind of if you are able to maintain that kind of run rate with a gross cash recovery of 9,500 crore again this year we should be able to give a very good numbers as far as the gross NPN ratio net NPA ratio and the PCR is concerned. So that is that part. As regard the CASA percentage is concerned, you are very right that we have dipped below 40% after a long time. And but you should appreciate the fact that there have been many banks which have been facing furthermore challenge than us. In fact, if you see the numbers, if you see on a yoy number we have grown by nearly 3% on CASA, which is a rare thing today.
And if you see the sequentially also our CASA number is above our March number of June. It is above the June number of CASA is above the March number. So we have been able to maintain that the CASA number which is there. So the as far as the DIP is concerned, had we not grown our credit to the extent 11 12% of credit growth which was there, so then we would not have raised the deposit also then we would have been able to maintain the CASA also percentage and it is just below by only 20 basis point.
We have dipped below 40% by nearly only 20 basis point. However, if you see the overall retail deposit growth in the bank is concerned, so bulk deposit continue to remain within 14%. We need to appreciate that in this tough environment, our bulk deposit percentage is still below 14%. Which means that our CASA percentage plus the retail term deposit is 86% of the entire domestic deposit. So the entire franchise which is there for the bank, which is 5,300 branches and all our BC points or the other avenues which we are utilizing as a strategy for increasing our resources, they have been paying well.
And in spite of the tough market and the tough challenge which is there as far as resource is concerned, we have been able to maintain our retail deposits at 86% of the total domestic deposits. And as regards the fresh slippage is concerned, yes, we agree that the flash slippage has been more sequentially. If you see from Q4 in Q1 it is higher. But if you see on a quarter on quarter basis. So it was the similar kind of number which was there in the Q1 of FI June 24 also. So there I am not taking any excuse for that.
But the number has been the same. But normally, if you see for us the Q1 is normally a bit muted as far as the collection efficiency is concerned. And once the second quarter comes, the collection efficiencies improves and many of these accounts which have slipped in this quarter will get upgraded in this quarter which got slipped in the Q1. So last year we had a fresh slippage of around 7,500, I can say 7,600 crores. So this year when we are saying that we are giving a guidance. We are giving a guidance of slippage ratio of 1.20% only. Yeah.
operator
Thank you very much. Sir. Sir, I’ll take you. There is one gentleman waiting online. He’s by the name Zuan Schindler. I hope. Sir, I have correctly spelled your name, pronounced your name rather. Mr. Schindler. Is he still on the line?
Unidentified Participant
Hello, Am I audible? Yeah, hi. Congratulations on good set of results. Just have two questions. Number one is on the MSME sma. Can you give some color on why SMA go up by 60% quarter on quarter. Is any specific accounts or how’s the situation on the ground or MSME segment?
Rajneesh Karnatak
Yeah, yeah. So what I could understand your question was with respect to the MSME portfolio and that too on the SMA number of the this msme. So you are right that if you see the last year June 24, the MSME SMA was 10. 10 crore. It has gone up to 1630 crores.
That is correct. But if you see over there, the increase in the SMA numbers is also because of the low collection efficiency which was there in the Q1 of this financial year. So that is the basic reason why the MSME SMA has gone up. But we are very confident that in the coming quarter in Q2, Q3, we’ll be able to arrest this number. And the collection efficiency has already started improving as we are in the month of July, at the end of July month. And this number I think should be the peak number as far as the MSME SME number is concerned for the bank.
operator
Thank you very much, sir. And thank you Mr. Schindler for joining us online.
Unidentified Participant
Yes, sorry, I have another question. One more question. Yes, if I’m okay, thanks so much. Just on the guidance on 0.9% ROA for FY26, what kind of G Sec are we using?
operator
You are not. I may. I may interrupt in between. Mr. Schindler, you are not audible kindly your mic a little. Yeah. Your voice is not clear.
Unidentified Participant
Am I audible now? Right.
operator
Yeah, kindly go ahead.
Unidentified Participant
Sorry about that. Just on the guidance of FY26, 0.9% ROA. What are we assuming for the mark to market gain? Because for first quarter that’s 25% of our profit before tax.
operator
Mr. Schindler, I would request you to kindly text your question. I’ll take it because we are not able to hear you properly. Right,
Unidentified Participant
thank you.
Rajneesh Karnatak
Yeah. So as far as the ROA is concerned. Yes, the ROA has come down to 0.82% in this quarter as against this 0.90 in the Q4 of the financial year. But let me explain to you that in Q1 of last financial year we were at 0.70. So there has been an improvement of 12 basis point. As far as the ROA is concerned. As far as the guidance for ROA is concerned, we are giving a guidance of 0.90 for FY26. And the dip in the ROE is also because of the main reason that there was lot of pressure on the net interest income and net interest margins.
So that is one of the main reasons why there has been a dip of in the ROA from the sequentially if you see from the Q4 of FY25.
operator
Thank you, sir. Yes, sir, Kindly please hand over the mic to this gentleman sitting here. It’s working, sir.
Unidentified Participant
Yeah. Your bulk deposit is about 14%. Can I know what is the cost of this bulk deposit?
Rajneesh Karnatak
Yeah, so the cost of the bulk deposit. So. So the weighted average deposit of the our fixed Deposit is around 6.98.
Unidentified Participant
I am only asking for bulk.
Rajneesh Karnatak
That figure we are not having. We can give you separately at this moment. We are not having that figure.
Unidentified Participant
The question is if the bulk deposit rate is high and your average, you know, deployment rate which is advances is about 8%, then are you focusing more on growth or profitability? Because if you are focusing on profitability, this bulk deposit number should be low.
In fact, you should let go a lot of business which is not making sense to the bank. So NIM are under pressure. So NIM should not be under pressure. Basically you have to understand that why is the stock trading at much below the book value? Because your focus is not on profitability, your focus is on growth. Thank you.
Rajneesh Karnatak
Yeah, so being see as a bank we have to balance both the things. We have to balance the growth and also the profitability. So when we say that bulk deposit. Let me give you a data that when I say that our bulk deposit is less than 14%.
It is one of the best in the industry among the public sector banks. Other banks are having bulk deposit which is much higher than us. So when we say bulk deposit, it does not mean that it is at a rate which is higher than the normal deposit rate. So it can be at the same rate at which the market liquidity is working at. So that is the only thing which is there. So we have very strong relationships with some of the central PSUs or the state PSUs, central government and state government where we are having salary accounts and Other accounts where we get bulk deposit checks over there of 100 crore, 150 crore that we cannot refuse because there is an existing relationship going on with that PSU central or state psu.
So we have to continue with those relationships and by not taking that deposit if they are offering the deposit say 150 crore or if they have surplus liquidity with them. So as far as the trade off between the this growth and this margins are concerned. So I can say that if you see our corporate book, we have degrown our corporate book by 3000 crores. When I say that we have grown the corporate book by 3000 crores, you can also see that there has been a growth of yoy basis corporate of around 3 to 4% only.
So what has happened is that there have been quite a few advances at least where we have left the outstandings because the rates were very fine and we did not want to grow the book just because we want to grow the book and the margins are not there. So we have shed some of the bulk advances, corporate advances over there. However, having said that, let me also tell that we have a pipeline of nearly 80,000 crore as I said, of which the RAM pipeline is around 10,000 crore and remaining is the corporate pipeline. So we are trading a very fine line between our growth and margins.
And both we have to balance when we are. When we say that we are a public sector bank and one of the large banks, we have to balance both the things growth and the margins.
P.R. Rajagopal
One thing I would like to add to your comment is bulk deposits basically is only 25% of the total term deposits. Even if you take into consideration only the term deposits, the weighted average term deposit rate that our MD has just told actually is as good as the bulk deposit rate. So what happens is bulk deposit rate is not picked up in one go. Okay? So it is actually picked up over a period of time depending upon what rates are available in the market. So it averages around 6.9. Even our retail deposits are also very high according to see if you see most of the banks.
So their weighted average term deposit is also very high for a very simple reason. The market doesn’t make a very great difference between detailed deposits and bulk deposits. Bulk deposit is actually a function of market data. Term deposits, if there is a liquidity issue will continue to actually rise at a higher rate. So point is. No, your point is taken. The spread, as you rightly say, the interest spread that we talk about should be at least 3%. So we are trying to achieve that on a Continuous basis so that our profitability improves. We have been trying to do that.
It is actually a one off quarter where the interest spreads have not actually gone up because the liability rates have not come down. So we have reduced the liability rates and then the passing on effect will happen in second quarter and third quarter. Once it comes, interest rates grow up. So today my interest rates continue to be at around 2.8 or so. So we need reach 3% maybe in September, maybe in December. So then automatically my profitability goes up in terms of. So overall you have to look at on an annual basis, quarter on quarter. There will be aberrations.
Unidentified Participant
Rajgopal sir, the point which you are making is that the retail term deposit rate is almost equal to the bulk deposit.
P.R. Rajagopal
That is the situation today.
Unidentified Participant
No, I mean that’s 6.9% for retail term deposit and 6.9%.
P.R. Rajagopal
Yes,
Unidentified Participant
bulk deposit.
P.R. Rajagopal
That’s how it is. That’s how the market is.
Rajneesh Karnatak
Thank you.
operator
Thank you very much. So there’s one more gentleman who has joined virtually by the name Mr. J. Mundra. Kel. Kindly. No G. Kindly put. Put him through.
Unidentified Participant
Hi, good evening. Yeah, hi, good evening sir. Am I audible?
Rajneesh Karnatak
Yeah, we can hear. Yes.
Unidentified Participant
Yes sir. Thanks sir. Thanks for the opportunity. So first question on NIM and you know, does this like you mentioned that there is no interest on it refund. But if you can specify was there any. What was the amount of NII recovery. Sorry NTA recovery in NII and how do you look at net interest margin going ahead assuming there is no rate cut from here onwards? Recovery. You see.
P.R. Rajagopal
Recovery. See basically the net interest income. See again coming back to your point, J is. No, I have just answered earlier. If you see the NII is a function of both the liability price as well as the asset price. Now on the liability side I have already told that you know the, the pricing that we do on the liability side is yet to actually come down. And we, even though we have actually reduced the prices, it has to get passed on. It will take transmission time. Takes a little time in liabilities. No, it may take place in December.
That’s what we are expecting. Maybe September. There will be some runoff in the liability prices in terms of liability cost as well as pricing. And by December we’ll be able to actually achieve good interest spread. Once interest spread comes, then naturally your net interest income also goes up. So recovery will happen in December and accordingly in terms of nims also recovery will happen in December. If you look at my domestic NIMs. So we did not see a lot of Erosion in domestic NIM we had around 2.91 last corresponding quarter. Now we are at around 2.82.
So around 8 pips erosion was there. And that is precisely because liability prices have actually yet to kick in. And then my liability cost also is yet to come down. It will take maybe another quarter for me to actually achieve that.
Unidentified Participant
That is right, sir. But assuming all this thing play out, I mean of course these, this thing will play out that your cost of liability will come down with the lag and research. Asset pricing has already started. But based on your best guess, you know, 2.91. Sorry, the 2.55 margin, how should it behave? I mean in next quarter it will go down and then it will recover. So what would be your guidance on the NIM for the full year?
Rajneesh Karnatak
Yeah, so as far as the NIM is concerned, see we. We are showing a NIM of a global name of around 2.55% and the domestic name within that is 2.82% as on 30th of June.
So when we say the guidance for FY26, let me say that we have bottomed out as far as our NIMs are concerned at 2.55. And as far as the guidance is concerned, we should say that it should be in the range of between 2.5 to 2.6 for the FY26. I am saying that because of the fact that as we say that as far as the liability side is concerned, the repricing will start happening. Not everything has happened. And the pricing, the reduction in the pricing in the liability side started from October 24th. And the cycle should get completed by October 25th.
And once that gets completed, Q3 and Q4, these are the full quarters where we should see actually the cost of deposit coming down for the bank. So there from there onwards we should be seeing improvement in the NIMS and the net interest income for the bank.
operator
Thank you very much Mr. Mundra for joining online. Yeah,
P.R. Rajagopal
Jay, can you. Are you there online? J.
operator
They must have. Okay. Yes, somebody has raised. Yeah. Gentlemen from there. Yes.
Unidentified Participant
Hi team, good evening. Ashlesh here from Kotak, please.
Unidentified Participant
Yes, sir. Sorry, sorry. Ashley. Sir, I am here. Yes, people have unmuted.
P.R. Rajagopal
Did you ask, did you ask about what is the interest component that we could get from the recovery as part of nii? Did you ask that question?
Unidentified Participant
Yes. Yes, sir. Yes, sir.
P.R. Rajagopal
I just see one thing that I can tell you is now in the first quarter it is always muted in terms of interest income. Contribution to interest income by through recoveries. So for a period of the whole year we get average around 1300,400 crores by of interest income in the whole year because you know we keep recovering from the return of accounts also. So average recovery in return of accounts also goes up. Then cash recovery also goes up which actually contributes to my interest income. So it’ll get restored in December and March, September quarter, sorry, December, March quarters it will get restored.
So that’s what. But it will not be a major contribution. What I am looking at is major contribution will come through the core spread that we talk about in terms of the asset and liability prices.
Unidentified Participant
Sure. So just to conclude sir, you said that 2.55 margins have almost bottomed out, right? And then it should start recover.
P.R. Rajagopal
Yes, yes, yes, yes. See the. You should distinguish between global margins and the domestic margins. So our global margin is always less because you know we have a lot of global presence. So we almost have around 18% of the book in global. So naturally our NIMS globally will be less but you know we’ll actually be able to achieve it around 2.7, 2.8 globally whereas no domestic names will be around 3% and will kick back kick in maybe in December and March.
Unidentified Participant
Thank you so much sir for taking the question.
P.R. Rajagopal
Thanks.
operator
Yes sir, you may take the question.
Unidentified Participant
Sir, first question is on the SMA2 book is in the corporate segment that has gone up quite materially. QQ so can you share which are these accounts which have moved and what is the expectation of recovery from there?
Rajneesh Karnatak
Yeah. So as far as the SMA to book in the corporate is concerned, it is there in the presentation it is around 3400 crores. There are around 4 to 5 accounts, 4 accounts in fact which are there and all these accounts are pertaining to one state, state PSU accounts, all of them. So they have moved to SMA2 category. But we are confident that there will be no further roll forward in that and they would should not be becoming NPA as we speak. So we expect that the some recoveries will be coming in that collection will be coming in that and we’ll be able to roll them backwards to at least SMA0 level.
So the all these accounts were SMA0 in June 24th which have now rolled forward to SMA2 category. But we are confident that they will not slip and all of them are from state PSU. And have you made any additional provisions on these accounts as of now? Additional provision for only one account we have made because of the RBI circular of 7th June 2019 as per the RBI guidelines only one account was eligible for incremental provision. So that we have made.
Unidentified Participant
Understood. And sir, secondly, the FVTPL book has almost doubled quarter on quarter from 23,000 crore to 40,000 crore. Correct. What is the reason over there? Yeah, FTPL book.
P.R. Rajagopal
What is the, what is the return you are asking?
Unidentified Participant
Treasury book, FTPL book, it has doubled. No strategy for.
Rajneesh Karnatak
Yeah, see so. So thing is that what we have done, we created a book anticipating the red cut and all that. And that’s why we have increased our AFS book strategically. It’s a strategic decision on the part of the bank.
operator
Thank you. There are other others waiting online. One, Mr. Mohit Jain is there. Mr. Jain, are you still around? Mr. Mohit Jain? Gauri.
Unidentified Participant
Yeah, hi, can you hear me?
operator
Yes, good evening Mohit.
Unidentified Participant
Yeah, good evening. Good evening sir. So just wanted to reconfirm that you said the NIM has already bottomed at in the current quarter at around 2.55 for the global and going forward for the year we expect it to be somewhere between 2.5 to 2.6 as the guidance.
Rajneesh Karnatak
Yeah, that’s correct. We have said that the names have bottomed out for us at 2.55. If you see further into that, you see the net interest income there we have not done well in the net interest income side. In fact it is minus 3%. So the Q1 has been a muted quarter as far as the interest income is concerned.
We expect that the Q2 and Q3 will be much better as far as the interest income for the bank is concerned. So once the interest income for the bank improves and the outstanding in the advances improves obviously the net interest income and finally the net interest margins will improve. For that basic logic and also the fact that the transmission of deposit will also happen in the Q2 and Q3. With all these things in mind we are saying that the 2.55 global NIM is bottomed out for us.
Unidentified Participant
And so in case on the advances side the, the. The transmission of the repo cut has already been done in respect of those which were linked to the external benchmark. The entire 100 basis point transmission has been done or some will be done in Q2.
Rajneesh Karnatak
No, no, it has been done on the same day when the repo credit cards has happened. Because as per our board approved policy, whenever the repo rate cuts the same evening we reduce the our interest rate and 60% of our book is repo linked external benchmark repoing. So that has been passed on immediately. So that is also one of the reason why there has been a compression in the net interest income and the net interest margin.
operator
Thank you Mr. Mohit. Thank you. Mr. Mohit, is there anyone sitting here who would like to put some question? Can I take this gentleman from. Yeah. Yes sir, I’m. I’m looking at you. Yes kindly.
Ramesh Bhojwani
Sir, Ramesh Pojwani from Meta and Wakil. I was going through your presentation because I came in a bit little, little late. We were in IOB meeting in town and coming to BKC took more than an hour and a half. The one thought which comes to my mind is RBI with inflation coming well under 2% is is likely to reduce the repo rate going forward further. Maybe in August or maybe in October. And it has already reduced 125 basis point and another 25 or 50 is coming. So what is going to be the incisive impact on our NIMs on our net margins? And how do we balance readjust our lending and balance the deposit rates with that?
Rajneesh Karnatak
See as far as the data is concerned, economic data and other things. So there is a retail inflation is well in control. Monsoons are also quite normal across the country. Right. And the demand side also there is no issue. As far as the demand side is concerned.
Ramesh Bhojwani
Demand rural is good but urban is poor.
Rajneesh Karnatak
Yeah, that is fine. But rural demand is the key factor for which overall demand is there in the economy. The GDP growth is also because of the rural demand also. Yes, and more or less it is also because of the consumption led economy which is there in the country. So keeping these factors into mind and more than that ample liquidity there is in the system.
So the repo rate cut what the RBI has done, one of the major reasons not only for the reducing the rate but also to give liquidity in the system. So if you see yesterday’s data also the market had a liquidity of more than 2 lakh crores. Apart from that RBI has also cut the CRRs by really 1%. And that will be effective from 6th of November, 6th of September in four tranches. That will also infuse in the system liquidity of more than 2 lakh crores. With that kind of liquidity in the system our view is that in the short term RBI may not cut the repo rate because ample liquidity there in the system.
So with that thing in mind we feel that whatever the rapport cut has happened at presently at 5.5 in the short term it may not get cut.
Ramesh Bhojwani
That’s wonderful to hear. And how do we reprice when these cuts happen? The on our lending and deposits it is with a lag period, I am understanding.
Rajneesh Karnatak
Yeah. So deposit, deposit,
Ramesh Bhojwani
quarter of a lag is there both in deposit as well as in the lending repricing of the rates wherever it is open.
Rajneesh Karnatak
Yeah. So there is always a lag as far as the deposit is concerned because the migration happens takes some time. So the interest rates which we have given the fixed deposit that we have taken say in the month of August 2024, September and October, they will come all for repricing now like we are in the end of July and now we are entering in the month of August. So the interest rate cut started happening on the deposit side from October 24 when the liquidity started coming back into the system. And we feel that once that starts coming, the deposit rates will be coming down. And once the deposit rates come down then the interest expenses will come down and the net interest incomes will start improving for the banks. And that should start happening from the particularly from the Q3 quarter of this financial year.
Ramesh Bhojwani
Wonderful. And the second question was sir, you are a very big bank and you lend to almost all the sectors as per your presentation. Also virtually every segment of manufacturing services NBFC is included. How are you reading the situation? I mean the urban report is not very comfortable but rural is very, very positive even when you have mentioned. So overall how are you read? And H1 is not only as powerful, H2 is the most powerful and most heavy loaded going forward. So how are you reading the situation? Are we, will it be too early to say that? Are we kind of partially or somewhat entering into again a crisis or it is just a fear?
Rajneesh Karnatak
No. As far as our bank is concerned, as I told you that we have a very strong pipeline of credit, nearly 80,000 crores. So out of that around 10,000 crores is RAM pipeline and the remaining 60 to 70,000 crore is the pipeline we have in the corporate and the international book, also domestic corporate and the international book. And we are expecting that the disbursements will be happening in the Q3 and Q4 quarters out of that.
And once that happens, obviously our credit growth will be there and interest income will also increase for the bank. And as far as the as you rightly said that we have been giving credit, our credit growth in the RAM segment has been very robust as you see that we have been growing at a yui pace of around 18% being a large bank for us and to grow at 18% is a good number which is there as far as the corporate book is concerned. Again we are Expecting that good growth will be there and it is across the segment whether it is nbfc, whether it is infrastructure, whether it is to the industry or to the new segmentation, whether it is warehousing, data warehouse warehousing, whether it is for the green financing, to the hydro or to the solar or to the wind.
So all kind of segmentation, EV funding also we are getting all kinds of proposals are coming to us and there is a pipeline already created to that. So we are very confident as far as we are concerned that we’ll be able to grow our corporate book also and the overall credit growth will be there for us to sustain and improve the the interest income for the bank
Ramesh Bhojwani
and also.
operator
Thank you very much sir, I’ll come back to you later please because there are others waiting online. Mr. Sunil Jain. So he’s waiting online Gauri, kindly put him.
Unidentified Participant
Am I audible?
operator
Yes you are audible sir,
Unidentified Participant
I have couple of questions. One, what is this exceptional item of 518 crores? Second, what are the options now available with the bank for recovery in the MTNL default? Is there some sensitivity or is there some discussion going on or will it be continuing in the same way like it is happening? We’re considering the public money has been involved. And third question is our number of branches have been reduced by 2 compared to the previous quarter. In macro it has been reduced by. 2 while in the rural it has been reduced by 5. So what is our strategy here going forward? Is it to rationalize some costs and. Focus more on the digital or will. Be having some more branches going forward? These are the couple of questions sir.
Rajneesh Karnatak
Yeah, so as far as the branches are concerned, see we have like domestic branches we are having 5304 branches out of which the metro branches are 972 and urban is 856 and rural is 1901. So last year we have opened around 200 branches in FY25 and this year we’ll be opening around 203 branches. So it’s a mix of all metro, urban, semi urban and rural branches where we will be opening the branches. That all depends upon the our strategy at the local office, at the zonal office level where they see the potential of the deposit and advances growth.
So typically when we are saying we are opening new branches we are going for CASA deposit, retail, term deposit and the RAM advances. So wherever we see potential happening over there in these three basic areas of banking, casa, retail, term deposit and RAM advances we are going for opening the branches. So as regards the recovery is Concerned that yes, recovery again we will see a good recovery. As I said that last year we had done a total gross cash recovery of around 9,500 crores which includes some recovery from the big ticket advances NP accounts. Also this year also we are giving a guidance of having a gross cash recovery of the same level of at around 9,500 crores. And there was one first question with respect to one single exceptional item.
P.R. Rajagopal
Yeah, this exceptional item has.
Unidentified Participant
Regarding the MTNL default.
P.R. Rajagopal
Ah yeah. This exceptional item has come post RRB restructuring that the government has done. We have actually been asked to hand over two RRBs to the other banks. One to bank of Maharashtra, another to bank of Baroda. So there were the carrying value of the investment There is not what we got in terms of price paid by this bank of Baroda and bank of Maharashtra. So naturally the difference has been accounted for as an exceptional item to the extent of around 500 crores because carrying value is much more than what we have got paid. So that clarification you will find in note number 14 of our notes to accounts if you can go through you’ll be able to get that.
Unidentified Participant
Finally regarding the MTNL definition
Rajneesh Karnatak
I’ll just clarify that. See we had three RRBs, right? The first RRB was Arivat bank which was in UP that has gone and in that there was a minus of 849 crores which is mentioned in the notes of accounts and then the second RRB was in Maharashtra Vidarbha RRB in that we had a plus of 330 crores so that was coming back to us. So the net figure is 518 crores which we have netted from the global book. So that is the -518.
Unidentified Participant
Thank you sir and the last one regarding MTNL default what are we doing. On that
operator
Already couple of questions turned into three questions. There are others waiting would kindly await. I’ll come back to you later. Sunil, there was one gentleman sitting here. Yes, kind of. Yes you may ask.
Unidentified Participant
Hi sir. Thanks for the opportunity again sir, in the EBLR book how much would be table linked? Do we have TBIL linked?
Rajneesh Karnatak
Yeah see for as far as the EVLR is concerned we have only repo linked so we don’t have GSEC or T Bill linked all our portfolio as per the board approved policy it is all repo linked.
Unidentified Participant
Okay sir. Thanks sir Answer either from RBI or internally when should we expect the ECL guidelines to be effective for banks
Rajneesh Karnatak
eclc? There is no clarity at present when that guideline will become effective.
Unidentified Participant
Okay. Okay.
Rajneesh Karnatak
Yeah,
Unidentified Participant
answer. If you can just give the average your maturity of your term deposits and bulk deposit book that will be very helpful. Duration of that duration? Yeah, arrangement duration. Like
Rajneesh Karnatak
normally bulk deposit you take for six months to one year. So duration will be roughly around seven or eight months.
Unidentified Participant
Okay,
Rajneesh Karnatak
roughly I’m saying.
Unidentified Participant
Yeah. And term deposits, the retail deposits will.
P.R. Rajagopal
Be of the same because see we have the core deposits between one to two years.
Unidentified Participant
Okay,
P.R. Rajagopal
so average duration is same as bulk deposit. That’s what I was referring to when my dear friend has asked that question. Basically it is like that.
Unidentified Participant
Thank you sir, this was very helpful.
operator
Thank you very much. I’m taking this last question online which. Has come up
P.R. Rajagopal
another thing just I wanted to clarify because. No, this bulk deposit and retail term deposit question you’ve been asking. See basically the bulk deposit is about 3 crores and it is based on card rates. So naturally you know we balance the payout in bullet deposits very efficiently in terms of managing based on whatever market prices are and based on our appetite to take or not to take. So we take only when it is required to be taken. Otherwise we don’t take just like that. In terms of retail deposit there will be flow so that flow continues in terms of.
But most of the my it is in poor portion. Between one to two year portion is the highest it is across the banking system it is like that. We always leverage short term funds with long term. That’s how the whole banking happens. ALM is like that. Okay,
operator
thank you very much sir. This one last question which has come online from one Mr. Pradeep, the board had approved a fundraising plan of up to 20,000 crore in June 2025 through various debt instruments including tier 1 and tier 2 bonds. However there has been no updates on any issuance, pricing or filing since then. Could the management please clarify the current status of this 20,000 crore program? Has there been any delay in pricing, regulatory approvals or market timing considerations.
Rajneesh Karnatak
As far as the infra bonds are concerned? So 20,000 crore. We have taken board approval for this financial year for raising these bonds. So presently we have not decided as when we will be going but it will be definitely in tranches in Q2, Q3 and Q4. This 20,000 crores of infra bonds as far as the old one is concerned we have already present outstanding is around 12,690 crores in the old infra bond which we have raised as regards the capital raising is concerned within that the Tire 1 Tire 2 we have a board approval of 5000 crores for this financial year FY26.
In which 2500 crores is Tire 1 and another 2500 crores is Tire 2.
operator
Thank you very much, sir. Thank you all gentlemen for joining us today for this analyst meet. And thank you so much, sir, for enlightening for this enlightening session. So till we meet again, thank you and goodbye.
Rajneesh Karnatak
Thank you. Thank you so much. Thank you .