Central Bank of India (NSE: CENTRALBK) Q1 2026 Earnings Call dated Jul. 21, 2025
Corporate Participants:
Unidentified Speaker
M.V. Rao — Chief Executive Officer
Mukul N. Dandige — Chief Financial Officer
Analysts:
Unidentified Participant
Raju Vernimal — Analyst
Ashok Ajmera — Analyst
Sunil Oxy — Analyst
Bhavik Shah — Analyst
Ashok Ajmera — Analyst
Presentation:
operator
It. It. Sam. It. It.
operator
Sam. Ladies and gentlemen, good day and welcome to Q1FY26 Central bank of India Earnings Conference call hosted by NTX Job Brooking Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on attached to a phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Raju Vernimal from Ntech Stock Broking Ltd. Thank you. And over to you sir.
Raju Vernimal — Analyst
Thank you. Good afternoon everyone and thank you for joining post region conference call of Central bank of India today. From the senior management side we have with us three MV Rao MD and CEO Sri Vivek Vahi Executive Director Sri MV Murli Krishna Sir Executive Director Sri Mahindra Duhari, Executive Director and Mr. Mukul, Chief Financial Officer. Now without any further delay, I hand over the call to MD sir for his opening remarks post which we will have a Q and A session. Thank you. And over to you sir.
M.V. Rao — Chief Executive Officer
Thank you and very good afternoon to all of you. First I will be giving financial highlights what we have achieved for this June quarter and details will be run through by our CFO Mr. Mukul. And this time I am very happy to share that our ROA that is return of assets have improved to 1.02%. In June 24th it was 0.82. Now it is at 1.02. And then return on equity has improved to 14.17. If you compare with the previous June it was 12.60. So CRAR improved to 17.66% of which Tire 1 at 15.48 reducing an improvement of 198 basis points.
And our most important is on the the gross NPA which has come down to 3.13%. And net NPA now stands at 0.49. And added to this slippage ratio it is just 0.35. And our trade cost stands at 0.68. And NIM that is net interest margin which stands at 3.16%. And cost income ratio is also improved. Earlier it was 57.71. Now it got reduced to to 55.43. These are all these ratios part and coming to the total business now it has grew by 10.84% now stands at 7.04 lakh crore. And total deposits have grown by 11.41% now stands at 4.28 lakh crore and CASA deposit it is 46.88 and which increases by 11,659 crore.
Registering a YoY growth of 6.17. And gross advances increases by 9.97. Wherein in subsegments in ramp portfolio has increased by 15.71%. So there is a clear distinction that there is a reduction on the corporate side. There is a reason for that that we will be explaining because of the pricing factors where we were not interested to lend below 6. That was the issue there. And coming to the other operating profit it Is increased by 15.60%. Now it stands at 2,304 crore. These are all the highlights of our financial results. And further details will be shared by our CFO Mr.
Mukul. Yes.
Mukul N. Dandige — Chief Financial Officer
Thank you so much, sir. Interest on advances has seen a YoY growth of 9.81% to 5,932 crores. The investment income has gone down by 4.99% to 2,340 crores. The other income that is the interest on balances with RBI and banks has gone up by 10.44%. As far as the non interest income is concerned as compared to 1165 crores in June 2024 it has gone up by 53.30% to 1,786 crores. Mainly contributed by treasury income and also the recovery in write off accounts. The total expenses side, the interest expenses on deposits have gone up by 8.73%.
And the other interest has gone down by 66.28%. The operating expenses have increased by 5.33% to 2008. 65 crores. Out of which the staff cost has grown by 7% to 1,834 crores. And other opecs have gone up by 2.49% to 1031 crores. So the total expenses are at 8070 crores for this quarter ended June 2020. Then if we come to the provision side, the provision on NPAs has reduced to 468 crores. For the June 25 quarters. The income tax provision has gone up to 614 crores. And as we are doing for the last three quarters we have provided 250 crores towards the ECL requirement once again by 250 crores.
So the total provisions as against June 2024 1113. Now the total provisions have gone up to 1135 crores. And the bank has been able to register a net profit of 1169 crores which is again one of the highest ever net profit and the two major factors is that our ROA has touched one cross one we are at 1.02% and the net NPA we have been able to bring it down to 0.49%. Now if we go to the asset quality trend, the net NPA which was at 0.73 we have been able to bring it down to 0.49% and gross NPA has come down from 4.54% to 3.13% as of 30th 30th of June.
In terms of absolute numbers also the net NTA has reduced from a high of 1771 crores in June 24th now to 1308crores only if we go to the recovery in write off which is a special slide that we have created. If we see last four years we have done exceedingly well as far as the recovery in write off is concerned. In the financial year 2122 we were able to recover 331.52 crores which went up to 1282.59 crores in 2223 which further increased to 1433.32 crores in 2324 and 2425 saw a further uptick to 1716.33 crores.
For this quarter the recovery in write off stands at 613 crores which is a very important factor. The provision coverage ratio has improved to 97.02%, the slippage ratio was at 0.35 and the credit cost also has reduced to 0.68 only. The special mention accounts 5 crores and above. The total balance is now 1008 crores only out of which SMA2 accounts are 9 which total to 69 crores only. The restructured book stands at 4948 crores. As MD sir has told the CRAR improved to 17.66% with CET1 touching at 15.48% and tier 2 at 2.18%. The leverage ratio has also improved to 6.21%.
The total business growth was 10.84% and the total business stands at 7,4480 crores with deposits clocking a growth of 11.41% out of which CASA growth was at 6.17% and total CASA deposits have crossed the milestone of 2 lakh crores and they stand at 2, 522 crores. The CASA percentage still continues to be very healthy at 46.88%. The advances growth was at 9.97%. But if we see the RAM growth was at 15.71% with our retail clocking 17.51% growth, agriculture clocking 12.70% growth and MSME still continuing at 15.94%. And all this still with credit risk weighted assets of 62% only which is one of the lowest in the industry.
We do have a very diversified loan book with housing loan at 53,299 crores, auto loan 3,988 crores which is major portion of the retail assets at 85,156 crores, agriculture at 53,057 crores and corporate credit at 76,966 crores. The RAM advances stand at 72.07% for the quarter ended June 2025. The Standard rated advances if you see the share of A and above rated advances is 77.11% of the total advances of 77,654. If we see the BBB and above rated advances the percentage is 94.49%. Thereafter we have surpassed all these targets mandated targets under the private sector lending.
The investment book continues to be one of the robust books with yield on investment at 6.76%. And if we add the trading profit then the Yield was at 8.31%. So this was all from our side as far as the financial highlights are concerned. We are now open for question and answers.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on the touchdown telephone. If you wish to remove yourself from question queue, you may press star in two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Ashok Ajmera from Ajkon Global. Please go ahead.
Ashok Ajmera
Thank you very much for giving me the opportunity. First at the very outset I would like to convey my great sense of congratulations and appreciations for Rau Sahib for your very checkered banking career and you are leaving the bank very strong like Roa Target which was your target, you already crossed 1% so it is 1.02 net NPA. You brought it down below 0.5 which is another landmark and with the I think one of the highest profitability of the bank in last four, five quarter. Even the operating profit and if we talk about the net profit also so Compliments to you sir and heads off to you and all the best for your second inning in the life.
We are all with you sir. Thank you.
M.V. Rao
Having said that I already appreciated the profitability number. But sir, I got a few data points and some some concerns. My major concern is on the credit growth. I think though overall year to year if you see you say 9.9 or 10% but in this quarter I think it is one of the terrible quarter as far as the credit growth is concerned we went down by 5% as compared to the March. So that is the major listing because we are very comfortable on TD ratio. We are very comfortable on CR ar. We have got a very good large client base, good retail opportunities, good SME opportunities.
So where we went wrong or what are the challenges with the bank is facing as far as the credit book is concerned to increase all the credit growth. This is my first major point. Your profitability would have been more by 57.63 crore but for change in the depreciation method. So the actual profit is really higher than what it is. So no comments that. Our SMA0 in this quarter has gone up from 221 crore to 537 crore. So if you can give some color on that that they are all regularized by now treasury income has contributed a lot.
So my compliments to the entire treasury team. And sir, one I would like to know the plan for our being making the future generally at the associate company you know by by investing good amount of almost about 500 crore in both life and general insurance. So what are the plans which we are working out? How is it going to help as far as the revenue of the bank is concerned and the future value growth by acquiring finally you know signing the shareholders agreement and some color on that restructuring restructured book of 4000 almost about 5000 crores.
Ashok Ajmera
So these are the some few sessions and little bit on the. Our recovery from written off account has been little bit lower down as compared to the March. So what are the prospects for that Sir?
M.V. Rao
Yes, coming to first and foremost concern what you have expressed on the credit growth. Let me tell you that it is not at all a concern. You should be happy to note that bank is much more concerned about the bottom line. If you see actual growth on the advances on the retail agri MSME that is the ramp portfolio which is almost 15.7% and reduction in the growth that has happened on the corporate side. It is a very conscious decision from our side that we do not want to lend at the rates what the corporates were demanding though this is also because our investment Yield is almost 6.71.
There is no point in giving that 5.85, 5.80 just to show the top line. So you are very aware, all of you are aware that we never played to the gallery and we never played for the top line. We are interested in the bottom line and strengthening the bank in all possible ways in all the areas. That’s why we have focused. That’s why there is a reduction. So it’s not a concern. You should appreciate our way of working that we are protecting the bottom line even during the challenging times where corporates are demanding below six.
That’s how. And at the same time we are also mindful of the fact that aggressive growth should not be there. That’s why we have moderated our ram growth around 16% that we will continue to do that and definitely going forward another nine months. Is there another eight months that we will get the opportunities to pick up the assets at the right price that we will be balancing with the pricing, with the risk so that capital conservation do happen. On the corporate side this is on that credit side. On the SMA I think it is a very minuscule amount that is there.
And the SMA 0 now already 353 crores already it is upgraded. Not upgraded, it is regularized. And we do not have any issues as far as SMA 01 and 2 is concerned in the credit. This one that is also reflected in your stipulate ratio. This is just 0.35 what we have recorded for our June quarter. And coming to the insurance. Yes, it is a very happy news. Just I would like to share with you that we have already signed shareholder agreement, trademark, licensing agreement and distribution agreement with the generally and in the last week of this month once name change approval comes from the ROC that we will be ready for launching this with the new name.
So we will have two more joint ventures. One is on the life and another is the non life. And what we feel that the customer base and also to meet the customers aspirations. This bouquet of products which we going to be offered. It is not just the income part we are seeing for the bank. It is a value that is going to be added to the bank as a whole. That is the much bigger aspect we are eyeing for this is on the insurance side. And I will again come back on any of the questions if you have.
Ashok Ajmera
Sir on that any will you give like you a fresh I mean current position or update on that airline account?
M.V. Rao
Airline account now there is a favorable diction from that Singapore arbitration that execution has to happen in deliver that. That is the thing that is happening. It is a legal process. It is taking some time for that. No. Some realization from that extra property which you had with bank of product. Yeah. We have published. That is on the public notice that we have published surface notices. I think one of two customers are evaluating the. You know whatever the prospects and bids. What we are just waiting for that. Once they do their bid we can proceed further.
Ashok Ajmera
Sir, one question for this Mukulji that the GTA calculation, the revised calculation you have done of 2531 crore is against 4007372 crore last year. So now on tax front when do you think we’ll be out of it? And out of this 614crore how much actually actual tax are we going to pay? I mean after taking the benefit of the part very forward losses.
M.V. Rao
We estimate that whatever the DTA on account of business losses that we should be able to consume entirely by Q4. And in Q4 by taking a small hit, I mean actual payment of tax to the tax authorities of say 65, 60, 65, 70 crores roughly we should be able to move to the new tax regime. And in our calculations next year onwards it should give us a positive side of roughly around 900 crores. Which will mean that around 9 to 10 bips of my ROA will get impacted. That is my plus side.
Ashok Ajmera
Correct. It will increase. Yes. So that is our calculation.
M.V. Rao
Good. Because you know it always happened that we want. If we are making a profit, I mean one side we want to make the higher profit and then give away the benefit of the past which is of course a prudent policy. And the profit has to be there. So from next year we’ll come in the full text.
Ashok Ajmera
Okay sir, good answer. This ECL provisioning which we are making. I mean you said that the consolidated figures of the Provision is now 1135 crore, isn’t it?
M.V. Rao
Yeah.
Ashok Ajmera
Is it? As for the. Because many of the bank now is stopped worrying about this etl. Any. Any clarity is there that within the change circumstances and scenario you will need this kind of provisions for that Buffers.
M.V. Rao
Are always good to. To have boss. So that is why we are still continuing with the requisite provision. It will if they are not required anytime we can write it back. If the RBI guidelines or RBI this doesn’t come because now we are at. We are very comfortable as far as the NPA provisions are concerned at 0.49. So we are continuing to build around 250 crores required for the ECL. So now this is the fourth straight quarter wherein we have built this provision. So 1000 crores that plus a lot of my restructured assets are also carrying requisite provision of 15% or 10% whatever the case may be.
So all in all it is going to strengthen the balance sheet even more.
Ashok Ajmera
Very good sir. Large questions are a small question this RBI revised guidelines now recently that taking collateral for that small loan from the agri gold collateral. With that whether our loan strategy for increasing the loan book, agri loan book and gold loan book has it been the targets are revised there Are we aggressive on that going to be long going forward. Now, sir?
M.V. Rao
No, no. We are not revised our targets at all. We will our gold loan portfolio even last year it was a very handsome growth. So we continue to want to continue the up front. But we have not revised our targets.
Ashok Ajmera
Thank you very much. So what are the loan growth target.
M.V. Rao
Overall for the fit targeting around 14 to 16%. That is what the guidance we have given. So we’ll continue with that 14 to 16% we should be able to achieve.
Ashok Ajmera
Very welcome. Good guys. Thank you very much. Thank you.
operator
Thank you. The next question is from the line of Sunil Oxy from Indus Equity Advisors. Please go ahead.
Sunil Oxy
Congratulations to Central bank of India for excellent results and specifically on two counts on a sustainable CASA number on absolute figure and second thing on acquisition of future generally. First my question on the foundation by the current team is built very well. How well do we see the tower being built in that year and years to come back?
M.V. Rao
See as far as the internal work which has gone into for all these years very robust platforms are built Whether it is on the policy side or the product side or the technology platform and more so on the structures, what the new structures, what we have built in and additional revenue streams whether it is from the trades or from the co lending these are all the areas which are going to stay There is a. And another thing which I would like to share with you is this year already we have declared further business acceleration as a year of business acceleration.
And whatever the numbers that we achieve in March that we used to cross those numbers around September, October this time we are crossing the June itself. So there is acceleration, there is a tremendous amount of traction that is on the field level. That is why if you see the composition of the ramp which basically happens at the field level IT is at 72 and 28 is the corporate side where much of the role of the central office or higher level comes into picture. So what we feel that the foundation which is built is very robust and you can have whatever the servers you want to build.
That is. We have no doubts in that.
Sunil Oxy
Sir, my question related to your reply Coal engine platform where we are seeing a visibility of almost 2000 crores per quarter Currently it will be gold loan, black loan, msme. All these products combined I suppose how are you seeing that traction be built? Is 2000 a subscription number or that number can increase with more partners?
M.V. Rao
That number is going to increase because we have further plans for the co lending. So that is going to increase at least by 2800 to 3000 crores.
Sunil Oxy
What kind of blended means? We must be earning on co lending over our retail direct sale.
M.V. Rao
For co lending we are getting around 9% overall. 9%. This is net to the bank I suppose. Yeah, exactly.
Sunil Oxy
Okay. Sir, you mentioned about trade platform rollout on a digital. I suppose would be a digital end to end party. How what kind of portfolio can we build on those?
M.V. Rao
See in the trade one good aspect is whatever the bills that are accepted by the corporate that only we are discounting. That is the trust platform business that what happened where we are little bit choosy in terms of the corporates who are accepting those bills. So we have our own due diligence mechanism. And since it is a very terrible 60 to 90 days. So even at the lower rates we are competitive because of our pricing power that we have a very decent portfolio. I think this time we have closed by around thousand 3200 and with the turnover of around 18,000 crores and our.
Sunil Oxy
CASA number at 2 lakh crores is a fantastic figure from the franchisee and the branches which has worked in the current condition by on absolute number that is sustained and not losing percentage wise we may look on the total balance sheets. But if I look at absolute number so any color on that that we are able to sustain that number. Now we have done a lot of digital spend. We have started so many other products. We are in position to do a lot of cross sell with insurance coming in a 4A. What kind of retail penetration can drive incremental support to not only building car but third party products?
M.V. Rao
Yeah, see as far as CASA past is concerned, number one is the reach for customer acquisition. You know that we have brought the BC Max model and it is very very successful that 25 units are already working this year. We are going for the 250 BC max centers. That is all in the places where we do not have the brick and mortar Branches and banking business is growing around 15 to 16 CAGR. So such type of locations we have selected. And this BC Max model will be one of the customer touch points for the acquisition of the new customers.
That is number one. Number two is our BC points which are around 12,800 which will be ramped up to another 1800 that is around 14,000 and that we will also be adding for the customer acquisition and coming to the products. Since the digital channels are stabilized. Our omnichannel is already rolled out and which is having almost 200 plus services. And we are very happy to share with you. Almost now 12 lakh new customers are onboarded onto this sent ease app. So going forward these new accounts which are being added on this digital channel the average balances is around 27,000 rupees.
So this is a very very good channel not only for acquiring the new customers and also maintaining the good balances that is the valid of the customers. What we are having in these channels it also relatively high when you compare with the customers mobilizes through the B.C. or B.C. max or this brick and mortar channels. Those are all the different channels we have. And we have the strategies and plans. And in many of the current account balances where now traction. You can see in the next three to six months because we are bringing the lot of bokeh of services on the software side.
So we want to capture the entire value chain financing and also the requirements in the current accounts including the cash management solutions. So we are very hopeful that CASA is bound to increase from this level onwards. Especially on the current account side. And on the ASB side we are focusing to increase the valid share of the customers because of the digital channel.
Sunil Oxy
And now related to all these are two expenses which we have to incur. One is digital yearly expense including for launching new products, new services and secondly in human resource. So what would be the number on digital spend and specifically to empower the youth in the bank as well as for the new generation clients. What kind of HR initiative and spend we incur in this year as far.
M.V. Rao
As the HR initiatives that is for our internal resources that is already geared up. And then lot of initiatives we have rolled out and new recruitments are also happened. And this time we have specifically gone for around 2,000 credit officers that almost that indent is done and then people will get on boarded after a month or so. So there is a lot of things that are happening on the HR side. There is a slew of measures. When I start saying again other people will get bored they may not get the chance of, you know asking their questions.
Anyhow we will be sharing on that. Good things that are happening on the HR side.
Sunil Oxy
My last question to Mr. Vai sir. What’s your outlook on treasury for the year?
M.V. Rao
Our outlook continues to be the same which we had discussed in the previous quarter. Already 100 basis point is cut and terminal repo. By March I am seeing another two cuts of 25 each. So five will be the realistic which I am seeing terminally. So it will be a good year for the Treasuries for the bank. It is a cyclical thing but hopefully we will. We will end cash on that. Based upon our portfolio.
Sunil Oxy
You are expecting GSEC to be below 6 by year end?
M.V. Rao
Yes sir. G Sec will be below 6 by by March.
Sunil Oxy
Congratulations to the team. Best wishes to the bank and Mr. Rao specifically. Super performance and super platform created. Thank you.
M.V. Rao
Thank you. Thank you.
operator
Thank you. A reminder to all the participants. You may press Star in one to ask question. The next question is from the line of Bhavik Shah from Input Capital. Please go ahead.
Bhavik Shah
Hi sir. Thanks for the opportunity. Account is there. Sorry Recovery write off. Recovery from return of accounts was very good this quarter.
M.V. Rao
Yes there was one account wherein we got around 300 and around 3001 crores. But other than that also there are recoveries in many other accounts. I mean it is not only from 4, 5, 6 accounts we have been able to 600 crores.
Bhavik Shah
Okay okay. So sir this account is it like. Understandably it should be through right? So which sector would it be from?
M.V. Rao
It is. It is a cement account which got resolved.
Bhavik Shah
Okay okay okay answer. I just want to understand this sir. So we have seen private banks cutting NCLR rates by 60 basis points. And equity banks are still at 1520 basis points. I understand it’s a formula driven thing. And cost of fund has also come up come down across industry at a similar pace. So why are ho banks holding up mplr?
M.V. Rao
As you said it is a formula driven thing. Deposit rates. If you see deposit rates have not come down that drastically as the repo cut. So wherever my advances are repo linked there the transmission is complete with hundred bps reduction till now. But as far as the other deposit rates and based on that the MCLR cut because it is purely formula driven. I mean nobody can do anything in.
Bhavik Shah
That sir do you expect MCLR rates cut to accelerate in second quarter? So by September as in we should be like 6070 basis point down on.
M.V. Rao
NClS versus March 70 bits may not be 10 to 10 to 15, 20 bits max. Again it depends on the cost of deposits and how low the cost of deposits can go.
Bhavik Shah
Understood. If you don’t cut NCLR sir, how does, how do we negotiate with the mbs? So do we kind of cut the premium or something? Because then I’ve moved BT out. Right.
M.V. Rao
We have seen good traction even in the NBFCs. It is, it is just that we have been very choosy as far as the NBFC sector is concerned. We have not budged in the past. Also even now whatever sanctions we are doing, we are getting a very good rate of interest as far as the NBFC rates are concerned. NBFC accounts are concerned.
Bhavik Shah
So what is the rate of interest you would be lending at incrementally.
M.V. Rao
MCLR based rates and we are getting 9, 9.05 kind of ratio now.
Bhavik Shah
Understood. Understood. Answer. Just wanted to check how do you see your retirement provisions going ahead? So it’s around 550 odd crore. This quarter was very last quarter going forward as you see similar pace.
M.V. Rao
See we have taken a consistent stand that we want to make this fund self sufficient by December 27th. And so whatever extra required over and above the I mean calculation we are providing it for. And if any opportunity comes we would further like to give something and. But, but this is the minimum that we are going to provide going forward in the retirement benefits department.
Bhavik Shah
Okay. And so just on the treasury game, assuming there are no further rate cut like can we assume like 70% of the treasury gains is booked through the year or Difficult to say that if. There is no further rate cut then I would say majority of the mean 70, 80% of the sale of investment gain is already book.
Bhavik Shah
So what would be your AFS reserve as on date which kind of goes in General Reserve Network.
M.V. Rao
433 crores.
Bhavik Shah
Okay, thank you sir, thanks for the opportunity and good quarter.
M.V. Rao
Thank you.
Ashok Ajmera
Thank you. The next question is from the line of Ashok Ajmera from answering Global. Please go ahead.
Ashok Ajmera
Yeah, thanks for giving this opportunity again. So. Mainly on this credit growth of 14 to 16% which we are talking about. While the broad composition may remain same, retail and corporate SME etc. Where exactly you look the major chunk coming from? I mean what kind of industry or as per our pipeline sanctions and other things, is it renewable energy or is it some engineering or some other SME companies? So what is the composition which you expect and from where this this kind of growth is going to come sir, in this year?
M.V. Rao
See actually mainly the area where we are finding the scope is in the data center logistics and only one or two manufacturing sector, not more than that. And much is on the you know government or government backed entities whether it is NTPC or the IRIDA like that. So this is the broad composition and we are not just keeping anything away from our radar as and when the opportunity appears and then in our judgment it appears it is prudent we are ready to take the call on that. Even alerts are also coming now lot of LR days repricing is happening in the market because of this repo cut things are there.
Ashok Ajmera
And sir, one point is on that SRS now with this, I mean the valuation being allowed in this quarter there was any happening SR companies there was.
M.V. Rao
A write back of around two two and a half crores. That’s all. Only two and a half crore. Okay. In, in one one account it it came roughly around 3034 crores also. Yes, in one account it was there so roughly around 3435 crores. That is issue fresh issue of assets or.
Ashok Ajmera
Yeah, yes during this quarter where we we didn’t we were not required to make any provisions on SR.
M.V. Rao
Yes. Yes. So 15% must have come in cash. And balance in this SRC. Yes. And they are on NARCL. Yeah. And for this in treasury book like what is our position of the non SLR investment and is there any increase and where these investments are mainly. Non. SNR investments they have not increased really. And if you see from our bonds they are mainly to our public sector entities. So it has not increased say it was 26, 27,000 last year it was, it is now at the same level 27,000 cr 27.
Ashok Ajmera
Did we have any exposure on that?
M.V. Rao
MTNN no, we didn’t have anything on that.
Ashok Ajmera
And sir, I mean now again since the, the the IPO market has again picked up recently last 12 months I think earlier I remember we made a good profit in investing into the IPOs and getting out on the listing making a good profit. Whether the strategy still continues or we.
M.V. Rao
Are off ipo we are continuing, we are continuing with that. Wherever we see good listing gains we are continuing to do investment and that would continue.
Ashok Ajmera
All right, thank you very much. Thank you and all the best.
M.V. Rao
Thank you.
operator
Thank you. A reminder to all the participants. You may press star in one to ask question. The next question is from the line of Bhavik Shah from Inkut Capital. Please go ahead.
Bhavik Shah
Sir. Just two bits. Firstly, sir, do you see a margin coming up by 20 basis point here on in second quarter? Yeah, I think so. Yeah.
M.V. Rao
NIMS see, we are at 3.16 right now and as MDUSAR explained, we are very conscious about our bottom line and the margins also. And that is why we took a conscious call that we will not give the corporate loans at sub 6 rates. So we’ll continue to be guided by that. And our guidance is that we’ll stay above 3% as far as the NIMS is concerned and we’ll ensure that our nims stay above 3%.
Bhavik Shah
For a standard account which is 30 days past due. If we think that that account is going to go diligent, do we propose OTF schemes to them? Like can we do a OTF scheme for a substandard standard account?
M.V. Rao
Substandard is okay. But our standard accounts, even if it is just some 30, 60 days past due, no OTS is there.
Bhavik Shah
Okay. Okay.
operator
Thank you. Is there are no further questions from the participants. I now hand the contents over to the management for closing comments. Over to you sir.
M.V. Rao
Yeah, thank you. Thank you for all the time you have given to us. And then to assure you further going forward we are going to strengthen further to onboard our customers on our omnichannel that is working fine with the new technology platform and digital lending platform which is also now operational and lot of acquisition and then underwriting is happening through the DLP and then integrated customer care which is well established during this year is going to yield us and also address the customer grievances at speed. And collection management system has really yielded well when you see the slippages just it is 0.35.
It is also adding value to the entire system. And another thing. What DTA part already our CFO explained that we are going to consume part and then we will be moving to the lower tax regime in the next financial year. That is going to add another 9 to 10 basis points upside for our return on assets. And then you may also have noticed this AGM which has happened just two days before that for this first quarter also we have declared our interim dividend. So we are hopeful of maintaining all these positive and also addressing the customer requirements.
Well in time. Thank you. Thank you for all the time and energy what you have given to us. Thank you.
operator
Thank you. On behalf of Ntech Stock Working Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.