Central Bank of India (NSE: CENTRALBK) Q2 2025 Earnings Call dated Oct. 17, 2024
Corporate Participants:
M.V. Rao — Managing Director and Chief Executive Officer
Mukul Dandige — Chief Financial Officer
Mahendra Dohare — Executive Director
Vivek Wahi — Executive Director
Analysts:
Raju Barnawal — Analyst
Ashok Ajmera — Analyst
Sushil Choksey — Analyst
Ashlesh Sonje — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to Central Bank of India Limited Q2 FY ’25 Earnings Conference Call hosted by Antique Stock Broking Limited. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Raju Barnawal from Antique Stock Broking Limited. Thank you, and over to you, sir.
Raju Barnawal — Analyst
Thank you, and good afternoon, everyone, and thank you for joining post-result conference call of Central Bank of India. From the senior management side, today we have with us, Shri. M.V. Rao, MD and CEO; Shri. Vivek Wahi, Executive Director; Shri. M.V. Murali Krishna, Executive Director; Shri. Mahendra Dohare, Executive Director; and Mr. Mukul Dandige, Chief Financial Officer.
Now without any further delay, I hand over the call to MD sir for his opening remarks, post which we will open the floor for the Q&A. Thank you, and over to you, sir.
M.V. Rao — Managing Director and Chief Executive Officer
Thank you. A very good afternoon to all the participants. Before sharing the financials of this quarter, let me share the good news that Bank has received the CCI approval to acquire 25.18% of equity shares in the Life Insurance division of Future Generali, and 24.91% in the Non-Life. Once this process completes, then Bank will be having two additional JVs, along with the existing two JVs, which we have for the Home Finance and Financials.
So now, just I would like to give the highlights of this September quarter’s financials, and then it is followed by our CFO will be giving a detailed presentation. I think by this time, you must have received our presentation, which is already uploaded on to the website.
Now this — our Bank’s total business, which has grown 7.07%, now it stands at INR6.44 lakh crores. And then total deposits at INR3.91 lakh crores, where CASA stands at INR1.91 lakh crores, which is 48.93% of the total deposits. And the gross advances grew by 9.48%, which stands at INR2.52 lakh crores. and CD ratio, that is credit deposit ratio, improved to 64.71. Earlier in the previous September of ’23, it was 62.5 around, now gross NPA, it stands at 4.59% and net NPA at 0.69%.
Provision coverage ratio, which is 96.31%, and net profit has grown by 50.91%, it stands at INR913 crores. And let me share with you, this is the 14th straight quarter, which Bank is recording a net profit. And net interest income has increased to INR3,410 crores, and then net interest margin, it stands at 3.44% for this September 30.
Return on assets has improved to 0.85%. Return on equity improved to 3.19%. CRAR, that is capital adequacy ratio, now it stands at 16.27%, where Tire 1 is 14.01%, so there is appreciable increase and a good set of numbers as far as the financials are concerned.
For all the further details, our CFO will be explaining. Yeah, Mukul.
Mukul Dandige — Chief Financial Officer
Thank you, sir. So, as sir has said, net profit wise, last year, three quarters, whatever the net profit we had earned, we have been able to surpass that figure in the first two quarters, that is the first — H1 of this financial year. We have recorded INR1,793 crores of net profit during the H1 as compared to INR1,741 crores of net profit for the three quarters up to Q3 during the last financial year.
The stand-alone headline numbers, if we compare, the yield on advances has increased by 22 bps on Y-o-Y, and it is now at 8.84%. Yield on investment has improved to 6.93%, an increase of 38 bps. The cost of deposit has increased only by 11 bps, and it is now at 4.71%. We continue to hold on to our share of CASA deposits. It is still in excess of 48%. The NIM increased to 3.44%. The ROE on an annualized basis is 12.76%, the credit cost, we have been able to bring it down now to 0.56% with the net NPA coming down to 0.69% during this quarter.
The slippage ratio also has been controlled, and now the slippage ratio is at 0.38% for this quarter. The liquidity coverage ratio is at 214.19%. So it is a very comfortable liquidity still bank is enjoying. And the NSFR is at 146.69%. The EPS is at INR1.05 and the ROA has improved to 0.85%, so we are on our track to make it at 1%.
If we see, the total interest income has registered a Y-o-Y growth of 11.58% to INR8,202 crores, the total interest expenses have increased by 10.85% to INR4,792 crores. The net interest income has increased by 12.62%, and it is now at INR3,410 crores. The total income has shown a growth of 17.08% and it stands at INR9,849 crores. The total expenditure on the other side has increased by 11.65% to INR7,684 crores. And therefore, the operating profit has improved by a handsome amount of 41.50% to INR2,165 crores. The provisions are at INR1,252 crores. And the net profit has shown an improvement of 50.91%, and it stands at INR913 crores.
If we come to the breakup of interest income, the interest on advances has shown a growth by 14.18% and it stands at INR5,402 crores. The interest on investments has also grown by 9.13%, and it is at INR2,547 crores now. There is a degrowth in other income, which was the interest income that we received on the income tax refund by around INR210 crores.
The non-interest income, which majorly comprises of recovery in write-off and other fee-based income, there also, there is a very sizable improvement. And on a Y-o-Y basis, there is a growth of 55.23%. And on a Q-o-Q basis, also there is a growth of 41.37%. And the total non-interest income now stands at INR1,647 crores with recovery in write-off comprising INR560 crores out of this.
The breakup of total expenses is that interest expenses have improved by 10.85%, and the total interest expenses were at INR4,792 crores. Out of which, interest paid on deposit is INR4,530 crores, growth of 8.43%, and other interest was at INR262 crores. The staff cost was INR1,827 crores, a growth of 27.14%, and other operating expenses showed a degrowth of 5.08% and stood at INR1,065 crores.
As far as the provisions are concerned, the provisions for NPA were at INR340 crores, 82% less than the last year same period. The standard asset to be — made a provision of INR70 crores. The income tax provisions were at INR654 crores. On a prudence basis, the Bank has made INR250 crores additional provision on standard restructured accounts. And therefore, the total provisions were at INR1,252 crores, and the net profit was at INR913 crores.
The asset quality, as MD sir has said, the gross NPA is at 4.59%. And the net NPA, we have been able to bring it down to 0.69%. In absolute number terms, the net NPA is at INR1,674 crores. The sector-wise NPA we see, retail is at only 0.12%, agriculture and allied is at 1.62%, MSME at 1.34%, and corporate net NPA is 0.15% only.
Our provision coverage ratio was at 96.31%. The slippage ratio, as I told, is now at 0.38% and the credit cost is at 0.56%. The restructured book is at INR5,808 crores. However, INR1,571 crores worth of accounts are common in the restructured book also, and they are appearing in the special mention accounts also. As far as the SME position is concerned, the percentage of special mention accounts to total advances has come down on a Y-o-Y basis from 6.69% to 6.10%, and the amount is INR15,425 crores, out of which the amount under SMA 2 is only INR3,014 crores and SMA 1 is at INR1,957 crores.
The capital ratios, the CRAR stands at 16.27%, with Tier 1 CT at 14.01%, the leverage is at 5.88%. The business across the board, total business improved by 7.07% and now it stands at INR644,858 crores. The total deposits grew at 5.57%. CASA deposits grew at 4.61%, and now they stand at INR191,270 crores. The CASA share continues to be at 48.93%, which is one of the best in the industry. The RAM advances grew at 19.95% and stand at INR182,205 crores. The CD ratio improved to 64.71%, now within RAM also if we see, the retail grew at 15.48% and it stands at INR76, 373 crores. The agriculture showed a growth of 17.34%, and it is at INR50,280 crores, and MSME has shown a robust growth of 29.45% and stands at INR55,552 crores.
The risk-weighted assets, still one of the lowest in the industry, at INR167,998 crores. There is a degrowth in the corporate loan book, but that was a conscious decision that the bank took. The corporate book has already grown by 10.61%, and it stands at INR70,739 crores.
As far as the Retail segment breakup is concerned, retail constitutes 30.19% of total advances. And within that, housing loans constitute 63.06%, and it has shown a growth of 18.51% on Y-o-Y. Education loan has shown a growth of 28.95%, the auto loan has shown a growth of 15.8%, and personal loan at 10.35%. The latest standard advances continue to attract our attention. And the total AAA, AA, A book and BBB book constitutes INR63,365 crores.
The sanctions and outstanding and co-lending are very robust. We have been able to achieve all the mandated targets under the priority sector. Investment book continues to give us very good profit, and the yield has improved to 6.93%. And if we take the trading profit also, then the yield has topped 7.76% now.
So these were the basic highlights of the performance for the Q2. Now with the permission of MR sir, we’ll…
M.V. Rao — Managing Director and Chief Executive Officer
Yeah. We can open it for Q&A.
Questions and Answers:
Operator
[Operator Instructions] We have the first question from the line of Mr. Ashok Ajmera from Ajcon Global. Please go ahead, sir.
Ashok Ajmera
Thank you for giving me this opportunity. And complements to Rao sir and the entire team of the Central Bank of India for yet another very good quarter, a good set of numbers. One of the — I think I guess, profitability in the recent times and consecutive profitability for last, I think, 14 quarters also. Having said that, I got a few observations and some concerns, which needs to be addressed.
So, sir, my first is on the advances growth, the credit growth. So I think there — the growth is absolutely muted as against INR251,000 crores in the March now it is INR252,000 crores, if you take the entire six months as on today, and I mean, the similar story in the net credit also. So, credit wise, there is hardly any growth. So first is that how do we plan to achieve our targeted credit growth in the financial year now 2025? Based on the sanction pipeline and the projects and applications are under sanction, and processes and what is your target for that? And how do we plan to achieve this thing? So that is on [Technical Issues] on the credit growth, business growth.
M.V. Rao
Yeah. Thank you. Thanks, Ajmera Ashok, really you have asked a very pertinent question. As far as the credit growth is concerned, if you see the growth in our RAM portfolio, which is very, very robust, and whatever that dip that has come is on the corporate loan book. This is a very conscious decision because when we’re experiencing the rate of interest from the corporate side, what they are demanding, and we do not want to sacrifice the NIM. So vis-a-vis where without any credit costs from my investment side, I’m getting much more than what this corporate credit borrowers were asking rate of interest. So that was a conscious decision taken by the bank. That’s why there’s a dip of almost INR7,000 crores in the corporate loan book. Always it was a very short-term, but nonetheless, we were not interested to take up at a low cost. So it is only to protect the NIM of the bank that we took this decision not to increase the corporate loan book, that’s why there is a dip of INR7,000 crores.
Ashok Ajmera
Okay, sir. So now going forward, the entire FY ’25 financial year, where do we see the credit growth in percentage terms vis-a-vis the March ’24?
M.V. Rao
See, we are conscious of the bottom line now. Protecting the bottom line, the way we are intended to grow, that depends upon the market opportunities as well as the rating of the accounts where we can trade off between the credit risk weights and rating of the accounts with the rate of interest. So what the projection we would like to make now is, bottom line will be protected and then we will be eyeing for the enhancing the bottom line rather than eyeing for the top line.
Ashok Ajmera
So no growth target, sir, 10%, 12%, 15%?
M.V. Rao
We have a growth target already that for a year, we have given 12% is the floor and 14% is the upper limit for the credit growth.
Ashok Ajmera
So you are maintaining the same?
M.V. Rao
That we will continue to maintain. Depending upon the opportunities, we will be there. But at the same time, just to increase the credit growth to reach the percentages, we are not going to sacrifice the bottom line.
Ashok Ajmera
Point well taken, sir. Sir, my second question was on the standard restructured accounts, sir. We have seen that the provision of INR229 crores has been made. So as I understand, our total standard restructured book is around INR5,800 crores something, which includes COVID standard restructured also. So what is the total overall provision we are holding, sir, on the total standard restructured book [Indecipherable] COVID?
Mukul Dandige
See, these categories comprise three. One is the restructuring done in terms of the RBI earlier circular of 2017, ’18, ’19. So there, the provision held is 5%. Then under the COVID this one, there were two sets; 10%, and the accounts which had already slipped before the restructuring was undertaken, there the provision was to be maintained. So we have a 15% provision in those accounts. So put together roughly INR5,808 crores, we can safely say that it would be around 11% to 12% provision that we are holding. Now on a prudence basis, we have made INR250 crores additional provision. These accounts will be also ECL compliant, I mean where we need to put in additional provision as per ECL.
Ashok Ajmera
So altogether, we are holding about INR850 crores to INR900 crores. Is it?
Mukul Dandige
Yes.
Ashok Ajmera
Including this INR229 crores?
Mukul Dandige
Yes, INR250 crores.
Ashok Ajmera
Right. Yeah. I mean — yeah, INR250 crores. Sir, there is a very good income from the treasury operations in this quarter, which has been booked and a very smart recovery from the written off account, also I think INR560 crores. So, sir, going forward, can we take this number for the remaining six months also, a good set of numbers so that to just be future profitability for the whole of this 2025? Do we have some — is it more in the pipeline from the written-off account to recover?
Mukul Dandige
Regarding treasury, we are very much hopeful that in this decreasing rate scenario, of course, our regulator is yet to cut rates, but we are very hopeful. It is almost priced in, but still we are hopeful that until March, there will be around two rate cuts expected. So we are hopeful that the scenario should continue and treasury should give us a good yield. As MD sir has rightly said that, that type of yield we were not getting in — even in our public sector — government public sector advances that is there. And in write-off accounts, our colleague Mr. Dohare — ED colleague, Mr. Dohare will show some light.
Ashok Ajmera
Yeah, Dohare sir.
Mahendra Dohare
Written-off account also, we expect the similar numbers in the rest of the financial year because there are a few accounts are there and which are in the pipeline, and we are very hopeful to get good recoveries in these accounts.
Ashok Ajmera
Sir, there was very good news, which we read, and you also announced is that our stake taking — the sizable stake in future generally both in the life and general. So going forward, sir, I mean, what kind of capital infusion, number one is the acquisition cost, and secondly, how optimistic we are about this investment going forward in future?
M.V. Rao
Yeah. As far as the acquisition is concerned, it is the open bidding process, which has happened in the NCLT, and we would able to get INR508 crores. That is our acquisition. And then, going forward, wherever the bancassurance contributions to our P&L, only with the distribution channels, what we have, it is almost covering INR120 crores. So that is a kitty that is already there. And going forward, we see a lot of synergies here. Let us wait and watch for the next move.
Ashok Ajmera
Sure. Sir, one small data point on the miscellaneous income in this quarter has rapidly grown to INR137 crores. So, is there any component of INR70 crores, INR80 crores — INR60 crores, INR70 crores coming from somewhere in the miscellaneous income in this quarter? From generally INR50 crores, INR55 crores, INR60 crores, it has gone up to INR137 crores?
M.V. Rao
There is no IT refund.
Mukul Dandige
Total — other income is INR1,647 crores, out of that commission brokerage is INR119 crores, on which LC/BG/DD commission is INR49 crores, government business is INR26 crores, bancassurance is INR44 crores. Service charges is INR379 crores, other miscellaneous. Okay.
Ashok Ajmera
Below the service charges?
Mukul Dandige
Yeah.
Ashok Ajmera
It’s a good sizable amount set to the bottom line…
Mukul Dandige
Yeah. Once we find it, we will share with you.
Ashok Ajmera
I’ll give you the details.
Mukul Dandige
Yeah, yeah. No problem, sir. No problem.
Ashok Ajmera
I’ll take it later. There is no issue. Thank you very much, sir, in this round. And if time permits, I’ll come back again. Thank you, and all the best.
Operator
Thank you. [Operator Instructions] We now have the next question from the line Mr. Sushil Choksey from Indus Equity Advisors. Please go ahead, sir.
Sushil Choksey
Congratulations to team Central Bank for excellent performance and a good direction. Sir, where our CD ratio is concerned, I see you have a great advantage in the current banking system led by our CASA and many of the opportunities. So where do you see next six months where we’ll end up?
M.V. Rao
See, our guidance is to reach 70%, that definitely our endeavor is to reach 70%. And we are quite confident by this financial year ending, we will reach at 70%.
Sushil Choksey
What would be unavailed limits and what is in pipeline visibly from this quarter perspective?
M.V. Rao
Pipeline is two views, almost INR12,800 crores is in the pipeline. That is there. But all these — many of them are term loans where disbursement happens in stages, and entire INR12,800 crores cannot be drawn by March ’25. So, as far as reaching 70% of CD ratio, we are confident, no issue.
Sushil Choksey
Are you seeing any green shoots from private sector or at least it’s mainly public sector borrowings?
M.V. Rao
That is a trade of what we are always doing with the rating of the account and then rate of interest. We are trading off, yeah.
Sushil Choksey
So low-yielding ones you are not taking up, but high yielding ones, what you’re taking up? That’s what is my assumption.
M.V. Rao
No, no. optimization is happening. It is not that if someone offers 9.5, and we will be very happy to take AA-rated this one at 8. So we’ll see how it comes out.
Sushil Choksey
What I meant is, your conscious of quality and the sector what you are choosing with the right — so you’re being prudent on the subject of lending that I understand. Sir, now the best news which we got in terms of our acquisition of Future Generali insurance, and I know that you have been conservative in speaking besides the COC award to at what rate and things like that and what revenue are you able to generate. Sir, can you throw some light on a picture how the synergies between both will work, how will the bank benefit and your investment will fructify multifold over a period of time?
M.V. Rao
No. I do not want to tell all those things. Just I would like to give a small insight into this particular business because where we see a lot of synergy, we have — though we have the 8 crores borrower profile, 8 crores customer profiles, almost INR5.6 crores is the active customers we have. When we are analyzing this insurance, it is only penetration is 0.61. Just you can imagine what is the cake that is available from my own customer — active customer profile. So just I’m leaving at that point.
And regarding the asset insurance, which is primarily driven by our asset portfolio and then new disbursements and new customers what we acquired, from our analysis, we see that though there is no focus, it is only a 20% to 25% of the assets are getting insured through the banker channels. Another 75% is being done by the other channels. So just I’m giving the insights of the facts which are existing on my record. Just you can extrapolate I think what is going to happen in future once we have this arrangement in place.
Sushil Choksey
Being an existing customer of Future Generali in some manufacturing-related activities, my experience about the company is excellent. Will the system between our and Future Generali where this cross-sell and would be integrated technologically or only this referral work will work?
M.V. Rao
See, these are two separate things. One is right now, I’m an investor. Once that acquisition happens, it becomes a JV. That is one part. Second is, as far as the regulatory guidelines, distribution channels which are available to all the partners with whom we have the bancassurance tie-up, that will continue. But at the end of the day, the services provided by these entities to the customers, if customers are happy and then the way these people continue to service the needs — insurance needs of the customers, normally wherever best service is available, they will move to that channel. That’s why these are all two distinct areas. I do not want to mix up these.
Sushil Choksey
My experience on the digital side has been excellent. That’s the reason I just sort of feedback.
M.V. Rao
Yeah, we have digital channels that is from day one, it will be a totally digital integration that will be there.
Sushil Choksey
How are we going to rebrand this and how soon that would be visible because that can be a win-win for both…
M.V. Rao
There is still — we are discussing all aspects regarding this branding and all the things. So let us see. It takes a little more time for us to publicly declare what will be the…
Sushil Choksey
No, no, no, I’m not asking anything basically whether it will take shape in the current year by March ’25 or not, that’s what I was asking.
M.V. Rao
It should be before March only, it has to happen.
Sushil Choksey
Okay. Secondly, sir, on the CASA, which is a very sustainable success story of Central Bank of India, maybe one or two other cases are comparable, not much. The efforts have been excellent from the team, which is working on it, whether it’s rural Tier 2, Tier 3 where our base is. We have migrated on many technology platforms, and we are doing a lot of digital initiatives. As those results started fortifying or the early visibility only and that would add to our kitty in a long-term basis?
M.V. Rao
No. Already some of the products are rolled out where we are seeing the traction in that. And many more products that are slated for the next two to three months, it is a continuous process where we will be shifting many of these products onto this new technology platform where a lot of optimization happens on the cost and also efficiency parameters.
Coming to your point of CASA and all those things, let me share with you, we made some experimentation with the BC MAX [Phonetic] because everyone knows in the industry, there is a one concept called a banking correspondence. And another is your physical brick-and-mortar branches. We brought a hybrid in between, and we have rolled out the pilot and it is very successful. And then going forward, this will be the model where we will be reaching out in areas where our presence is not there, and then business is also happening well. In those areas where we will be moving with the BC MAX centers. It is only a totally technology-based solution.
Sushil Choksey
How many such points will be rolled out, sir?
M.V. Rao
We have identified almost 520 PIN Codes where CAGR of banking business is more than 15%, and our presence is not there. So as a pilot, we are rolling out 25. And then based on this one, again, we will be expanding in all the PIN Codes courts where this business is there, and my branch is not available.
Sushil Choksey
Okay. So this would bring a lot of additional benefits to the bank from all perspectives. So all the exercises what we are doing or what we have planned for last 12 months on digital initiatives, how much capex we would have done so far and what is left that will still continue on an ongoing process and what is one-time?
M.V. Rao
See, it is ongoing. This year, our budget was around INR800 crores. And then some milestone-based payments have happened. That’s why I cannot pinpointedly say this is the amount what we have spent. But budgeted is INR800 crores, and as far as the milestones as our partners are achieving that payments will get released.
Sushil Choksey
Okay. Sir, my next question to Mr. Wahi, what is the indicative guidance on the treasury yields for the year-end?
Vivek Wahi
Sir, this calendar year, we are not expecting now further much fall, already touched 672. So maybe 4, 5 basis points here and there for this quarter. But definitely, for March quarter, we are seeing another at least 15 basis points fall. So overall, it should not be more than 25 basis point fall up to March. This is our in-house view on the tenure. We had — let us hope that scenario continues and our treasury is — good time for treasuries have again come, it is a cyclical thing you all know. So let us hope for the best.
Sushil Choksey
Sir, in view of your treasury outlook, do we — not only for our bank, we were not in the rat race for CD ratio in terms of deposit mobilization at any cost. We have been very comfortable. What is our strategy on growth of where deposits are concerned in the next six months?
M.V. Rao
See, deposit growth, what — see, one thing you rightly observed. As far as our bank is concerned, I think only bank, which is not in the certificate of deposit market, we never were there in that CD, and we are very conscious and then we are — principally we are on the belief that CD should not fund our growth. And having CD ratio of 65%, we have a lot of liquidity. And then we have a CRAR above 16%, and we have enough growth capital and also liquidity. Going forward, our focus more will be to acquire the new customers on the CASA side and then offer differentiated products to the existing customers.
Sushil Choksey
Sir, as we have not been in depository as repricing might be hurting a lot of banks. Do I assume that we are comfortable with repricing of deposits and the sustainability is concerned to cost…
M.V. Rao
We always factor that past because my 49-point is already on CASA, and then taking the current deposits, my repricing portfolio, which is exposed to the repricing portfolio is 50%. Within a year, it will be around 24% to 25%. That always we factor in. Whatever the increase in deposit rate, we make is only to protect our own turf in the deposit portfolio so that my customer need not go to other banks for want of higher rate of interest in term deposits. So that’s the strategy we follow, and we are successful in that.
Sushil Choksey
Sir, do you think that with the treasury outlook and the global money market rates in terms of cost of funds to a bank-to-bank MCLR might be rising. But more or less in the current financial year, the rates have peaked from MCLR point of view?
M.V. Rao
But in normal this one, you can say it has peaked. But if you see the certificate of deposit market, it is almost — public sector itself INR2.76 lakh crores is there in the CD. Even if they want to shift it on to the customer deposits from CD to customer deposits, I do not know to what extent. But there is a probability that the rate of increase in the deposits may not be the same way which was happening for the past six to eight months.
Sushil Choksey
Sir, can you repeat the number of CD amount?
M.V. Rao
It is the total public sector banks, which have raised these INR2.76 lakh crores.
Sushil Choksey
And as a system, sir?
M.V. Rao
Total system, INR5.36 lakh crores.
Sushil Choksey
Okay. Sir, thank you for answering.
M.V. Rao
Private banks and public financial institutions.
Sushil Choksey
Sir, anything new which the shareholders or the analysts don’t know and we should know in the — for the years to come?
M.V. Rao
Never that will be. You people will be much more — having the market information.
Sushil Choksey
Sir, what I meant is some new initiatives like Future Generali we acquired, I’m not saying some acquisition has to happen, but some new business development, new plan, maybe a large recovery, something brewing from written-off account, something which would aid our profit for the second half in terms of — some new efforts or some new initiative on business, digital, whatever it may be that something new which will stand out for us in the next six months, that’s what I meant.
M.V. Rao
Yeah. I will share you in January call, whatever that we have done new and what was the result.
Sushil Choksey
Thank you, sir, and I’ll come back in the queue again.
M.V. Rao
Thank you.
Sushil Choksey
All the best, and best wishes.
M.V. Rao
Thank you. Thank you.
Mukul Dandige
Sir, there was a question from Ajmera ji, he wanted to know about the details. So this INR90 crores out of that INR137 crores is the penal charges because till 31st of March, it was penal interest. Now it is penal charges. So we have segregated this. So that is why this [Speech Overlap] yes, this is miscellaneous income is appearing higher.
Operator
Thank you, sir. [Operator Instructions] We have the next question from Ashlesh Sonje from Kotak Securities. Sir, you may proceed.
Ashlesh Sonje
Hi, team. Good afternoon. Sir, just a couple of questions. Firstly, if I look at your SMA 2 book above INR5 crores, that has increased quarter-on-quarter from INR6 crores to INR360 crores. Can you share more details about this increase?
M.V. Rao
SMA 0, what you are saying? SMA 2, above INR5 crores, it was INR174 crores right now. INR88 crores, it was there September ’23, which has gone up to INR117 crores in June ’24 and September ’24, it is INR174 crores.
Mukul Dandige
See, I’ll give you the details of top five accounts. Top f accounts constitute now INR180 crores plus.
Ashlesh Sonje
Sir, if you just look at the Q-on-Q movement of the SMA 2 book above INR5 crores. I’m talking about SMA 1, I’m sorry. It was INR6 crores earlier. It’s gone to INR360 crores, SMA 1.
Mukul Dandige
SMA 1 also, if the top five accounts constitute now INR325 crores. However, out of that one account already regularized. Other accounts are continuing in SMA 1, and we do not foresee any of them slipping.
Ashlesh Sonje
So you’re saying out of that INR360 crores, INR325 crores is from just one account, and that is now…
Mukul Dandige
INR325 crores is out of — is of the top five accounts. Out of that, one account is already standard worth INR10 crores, one big account is there, but that also is — I mean, okay, we do not foresee any issue in that account also.
Ashlesh Sonje
Okay. So this is a telecom-related account, the big one?
Mukul Dandige
No.
Ashlesh Sonje
Okay. And that has become current again, the big account?
Mukul Dandige
It continues to be in SMA 1 only.
Ashlesh Sonje
Okay. Okay. Perfect. And secondly, you have made an additional prudent provision on standard restructured accounts, you said roughly INR260 crores. But your standard restructured book overall has only declined Q-o-Q?
Mukul Dandige
See, now what has happened is, we were to bring our net NPA in line with the industry that we have been able to do successfully. Now our net NPA has come down to 0.69%. So now we have shifted our attention from the ECL perspective, if and when it comes, so we should be well prepared. So with that perspective, already the standard restructured book, we are having around roughly around 10% to 11% built up. So we want to build based on the PD and other things, we want to proactively build provision in that book also.
Ashlesh Sonje
Understood. So there is no specific exposure for which you have made this provision?
Mukul Dandige
No, no, no. It is on this entire standard restructured book.
Ashlesh Sonje
Understood. Sir, just one last data keeping question. Can you give a breakup of your slippages across segments, that INR766 crores of fresh slippage?
Mukul Dandige
Yes. So under agri, the slippages were INR187 crores. Under corporate, it was INR164 crores. Under MSME, it was INR270 crores. And under retail, it was INR145 crores. And including the increase in balance of the existing NPA, if we want to speak, then INR233 crores in agri; corporate INR183 crores; MSME INR330 crores; and retail INR168 crores.
Ashlesh Sonje
Okay, perfect. Thank you, sir.
Operator
[Operator Instructions]
M.V. Rao
I think if anyone is not there, we can conclude our session.
Operator
Okay, sir. As there are no further questions, I would like to now hand the conference over to management for closing comments.
Mukul Dandige
So on behalf of the entire top management of Central Bank of India, I would like to extend thanks to all the analysts for sparing their time and interacting with us. We’ll continue to post good numbers with our endeavors, and we’ll continue to excel. Thank you so much.
M.V. Rao
Thank you.
Operator
[Operator Closing Remarks]