IDBI Bank (IDBI) Q1 FY23 Earnings Concall Transcript

IDBI Bank (NSE: IDBI) Q1 FY23 Earnings Concall dated Jul. 21, 2022

Corporate Participants:

Rakesh Sharma — Managing Director and Chief Executive Officer

P. Sitaram — Chief Financial Officer

Analysts:

Renish Bhuva — ICICI Securities Limited — Analyst

Suraj Das — B&K Securities — Analyst

Pranav Tendolkar — Rare Enterprises — Analyst

Unidentified Speaker —

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to the IDBI Bank Q1 FY ’23 Earnings Conference Call hosted by ICICI Securities Limited.

[Operator Instructions] There will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions]

I now hand the conference over to Mr. Renish Bhuva from ICICI Securities Limited. Thank you, and over to you, sir.

Renish Bhuva — ICICI Securities Limited — Analyst

Yeah, hi. Hello, and good evening to everyone. Welcome to the IDBI Bank Q1 FY ’23 Earnings Conference Call. From the management team, we have with us today Mr. Rakesh Sharma MD and CEO; Mr. Samuel Joseph, Deputy Managing Director; Mr. Suresh Khatanhar, Deputy Managing Director; and Mr. P. Sitaram, ED and CFO.

We’ll start the call with brief opening remarks, and then we’ll open the floor for Q&A. On behalf of ICICI Securities, I would like to thank the IDB management team for giving us the opportunity to host the Q1 FY ’23 Earnings Conference Call. I will now hand over the call to Mr. Rakesh Sharma for opening remarks.

Over to you, sir.

Rakesh Sharma — Managing Director and Chief Executive Officer

Thanks, Mr. Renish. So, good evening, ladies and gentlemen, and welcome to this IDBI Bank Analyst Call. Thanks for attending the call.

So, first of all, before I hand over the mic to Mr. Sitaram for making the presentation, I’d like to give some brief background. The June 2021, the results have to be seen in this context that we had two major recoveries from Kingfisher and Videocon account, and the INR590 crore was credited to interest on recovery, interest income, and INR278 crore in TWO, apart from other recoveries. And that quarter we had recoveries of INR1,646 crore. So, this INR868 crore was unusual income. So, the results have to be seen in that context. So, that is why since high one-off income was there in June 2021, so the numbers will have to be seen in Q-o-Q reference, March ’22.

And overall, we have also recovered — around INR1,136 crore recoveries have been made during the current quarter, but these have mostly gone in reversal of provisions. So, the operating profit and the net interest income may not be comparable with June ’21, so — but Q-o-Q, there has been improvement. And if we exclude this one-off income from all, base as well as June ’22 number also, so the numbers will show substantial improvement.

So, with that, I’ll also like to mention that whatever guidance note we had given previously at the beginning of the year, we have been able to achieve all the targets, rather in some cases we have been able to surpass the targets. So, like I — so that they have been — since the Bank was under PCA up to March 2021, so this is the — now we have started growing both in retail as well as corporate advances. Earlier, there were some restriction about corporate. So, the growth has been 12% Y-o-Y both in retail and corporate, and this is a good sign and good beginning.

Apart from that, we have been able to achieve the other targets which I said, ROI of 1.03%, ROE of 14.80%, which are all about the guidelines information. Slippage ratio is 2.5%. Credit cost, I had given indication that it will be around 1.25%, but this time we are improving upon the guidance note, and we feel that since we have been able to control the slippages, the credit cost will be less than 1%, and for this quarter it is 0.52%. So, we have made some proactive provisioning. And with that, the net profit — of course, with despite proactive provisioning the, there has been good — this net profit, there has been increase of 25% Y-o-Y and 10% Q-o-Q. And the capital adequacy is quite comfortable with CET of 17.13% and total capital adequacy of 19.57%.

The digitalization, we have been making some good improvement, and 95% of our customer induced transactions are through digital channel only. So, there is good investment in IT expenditure so as to improve further our mobile banking and other areas.

And so, with that, now I’ll hand and I’ll request Mr. Sitaram to make a brief presentation so that we can take questions also after that. Thank you.

P. Sitaram — Chief Financial Officer

Sure. I’m conscious that many of you may have to attend to other calls, so I’ll be quite brief. I’ll not run through the presentation as such. One thing to take up from where MD left off, see the — if we exclude the one-offs, the net interest income in Q1 of last year was INR1,727 crore, then Q4 of last year, INR1,881 crore, and Q1 of this year is INR2,021 crore. So, there has been an improvement steadily over the three period, if we exclude all these one-offs.

And in terms of NIM, it was 2.8%, 3.09%, and 3.26%. So, again, there is a steady improvement in all the three. And so the highlights MD has covered that we have shown improvement on all fronts, the NIM, if we exclude this interest on IT refund in this quarter, is 3.73%. Then cost-to-income we are maintaining where we are. ROI, we have crossed 1%. ROE, we are almost touched 15%. Net NPA has come down to 1.25%, with a pre-CR of 97.79%. Overall, there is a growth in advances, slight decrease in deposit. But if look at the daily average basis, there is improvement in both savings account as well as retail deposit. And current account is almost the same on a daily average basis.

CASA has ratio improved to 55%. That — we’re well capitalized now at 19% and Tier 1 of 17%, more than 17%. In terms of in the other income, we have a one-off. Sorry, in the interest income, we have a one-off. That interest on refund of income tax, that is about INR171 crore. And in the other income, we have a one-off, which is gains on sale of stake in Arcil, which is about 141 crore.

The opex has been maintained steadily. If you remember, in Q4 of last year, we had taken one-time hit on family pension and other things, which we could have done over a longer period but we weren’t really decided it take the entire hit. So, if we exclude that effect, we are quite steady. The opex is well under control. The cost-to-income is also well under control at 43%. Overall, there is an improvement in the PAT of 25% and 10% when we compare Y-o-Y or Q-o-Q, respectively.

Then quickly, NIM — NII I have already covered. Quickly go — we go to the provisions. Here, what we have done in provision is that we have taken a look at our restructured book under RF 1, RF 2 and RF 3. We already have mandated provisions that’s slightly above those already. But we have decided to make the anticipatory provision of about INR777 crores, and this is for any likely stress that can emanate from this portfolio. So, that’s an additional contingency provision that we have made for the restructured portfolio.

Then I will not dwell on the ratios. It is all there there for you. The cost of deposit, everything, they are trending well. Reflecting in the NIM. The movement on deposits and the breakup of the deposits are all given the chart there. Overall, I have already given you the picture that in daily average basis, there is a good improvement.

Then on the — even the net advances, there is a growth, which MD has already covered. On priority sector, we have achieved all the targets. There is no deficit. So, the amount of IT refund, other deposits that we have will keep running off and not likely to be an additional call, except for some gap in the earlier years, which has still remained in uncalled, and there is a scope for the RBI to call that.

On the AFS side, the modified duration is quite good at 1.04. Even this quarter, we have booked the MTM losses, but they are quite moderate. And going forward also we don’t expect any unusual shock from that side. For the overall book, it is, modified duration is about 4.13.

And in terms of PCR, of course we’ve already about, 97.79%. In terms of slippage, we are at 2.5% annualized. And in terms of credit cost, we are 0.52% annualized. So, this is well within the guidance that we have given, and MD has already guided on, further mentioned that.

And in terms of digital, I’ll just make a special mention that we have taken a number of initiatives on digital. We are invested and we are going forward also will continue to invest in improving the digital footprint. About 95% of the transaction — sorry, 75% of the transactions are from UPI, which our customer induced, and over 95% of customer induced that through digital media. So, there we are progressing well on this.

And we have also given the status of financial inclusion, where we have achievement. You could — I will not dwell on those in detail. What I’ll do is now I’ll leave floor for questions.

Questions and Answers:

Operator

Thank you very much. We will now begin the question-and-answer session. [Operator Instructions]

The first question is from the line of Suraj Das from B&K Securities. Please go ahead.

Suraj Das — B&K Securities — Analyst

Hello. Hi, sir. Thanks for the opportunity, and congratulation on a good set of numbers, Sir, I have couple of questions. The first is, it looks like there is a restatement in your balance sheet on a Q2 basis. So the March ’22 numbers have been re-suggested on advances and cash side. [Technical Issues]

Operator

Sorry to interrupt you. The audio is not clear from your line. Please check.

Suraj Das — B&K Securities — Analyst

Okay. Now, is it clear? Is it better?

Operator

Yes, sir.

Suraj Das — B&K Securities — Analyst

Yeah. So, sir, my question was, I mean it looks like the March ’22 balance sheet has been restated, and moreover, I mean the restatement is more in line of advances and cash in bank balance. So, could you please let us know — I mean, is the revenue again restatement of [Technical Issues]. That is my first question.

P. Sitaram — Chief Financial Officer

Okay. So, that restatement is due to RBI clarification. Earlier they have said that the reverse repo should be included in advance, term reverse repo. Okay? So, that — whatever was 14 days the reverse repos, we..

Rakesh Sharma — Managing Director and Chief Executive Officer

INR5,000 crores — INR5,000 crores. Yeah, INR5,000 crore. Now, subsequently, recently RBI has clarified that that will be only if it is done through the market mechanism. So, RBI reverse repo is to be regrouped back with cash in bank balance. So, that is the regrouping we have done.

Suraj Das — B&K Securities — Analyst

Okay, okay. Understood, sir. And, sir, the next question is more on the yield side. [Technical Issues] are dropping —

Operator

Sorry to interrupt you, Mr. Das. Again the audio is breaking from your line. Please check.

Suraj Das — B&K Securities — Analyst

Is it better?

Operator

Sir, the audio is breaking from your line again.

Suraj Das — B&K Securities — Analyst

Better now?

Operator

Yes, please go ahead.

Suraj Das — B&K Securities — Analyst

Yeah. So, sir, the next question is more on the yield side. So it looks there is a sharp dropping your yield on advances on Q2 basis. So, just wanted to know, sir, what your book looks like? I mean, in terms of how many percentage of the book is EDLF [Technical Issues].

Operator

I am sorry to interrupt you. Mr. Das, audio is breaking.

P. Sitaram — Chief Financial Officer

I got the question. I will answer it. That’s okay. So, to answer you, first of all, the primary reason for that, what you say, sharp fall in the yield is because of the reason which MD mentioned that in Q1 we had a one-time recovery from Kingfisher as well as Videocon mainly. These are the companies — this recovery comprises large part of interest, which has taken to interest income. The likewise, we also have one-times like interest on refund of income tax. So, if I exclude those — the based on that, then the yield on advances on a daily average basis is 8.56% for June ’21, okay, and for June ’22, it is 7.63%. This movement down of about 80 basis point is mainly due to the movement in the market rate, that is the repo rate and the policy rates have come down, in line with that this yield has come down. Correspondingly, of course, we have also reduced the cost of deposits. That is how we have managed to maintain and improve our NIM. So, before the question started, I mentioned that the NIM has improved, and I gave the figure also without this one-timer. And I hope that answers your question.

Suraj Das — B&K Securities — Analyst

Okay. Okay. And, sir, on asset quality side, if you can just let us know, I mean, what is the amount of total restructured book [Technical Issues].

Mean, the restructured provision that you mentioned INR770 crore, is it [Technical Issues] of the COVID-restructured provision, which is something around INR476 crores?

P. Sitaram — Chief Financial Officer

Yeah. Under COVID, the slide number 26, we have given the COVID restructuring provision, which is INR476 crores that is existing, which includes the mandated RBI provision. To that we have added this INR777 crore. So, we have about INR1,240 crore against a book of about the INR3,100 crore. So, we consider this to be quite adequate. We are not seeing really any high level of stress emanating from that, but since we are only in Q1 and the entire industry wants to see the remaining three quarters also to go to by to be able to assess exactly what will be the stress.

Rakesh Sharma — Managing Director and Chief Executive Officer

We had the surplus.

P. Sitaram — Chief Financial Officer

Yeah. So, I think most likely there will be more than enough. There will be extra provision here.

Rakesh Sharma — Managing Director and Chief Executive Officer

And in fact the restructuring book as you had asked, it has come down. March ’22, it was 3.42% of our advances, standard advances book. Now, as on June ’22, it is 2.98% of the advances book. In corporate, of course, INR356 crore — because one of the group accounts were there retails, that has moved to NPA that all of you know. The remaining all, like, the retail more or less either accounts have been out of restructuring book or some reduction is there about INR200 crore. So — and some base has also increased. So, that’s why the restructuring book percentage wise this now to 2.98% of the standard crores advance.

Suraj Das — B&K Securities — Analyst

Okay. Okay, understood. Okay, thank you, sir. That was all.

Operator

Thank you. [Operator Instructions] The next question is from the line of Pranav from Rare Enterprises. Please go ahead.

Pranav Tendolkar — Rare Enterprises — Analyst

Hi, sir. Thanks a lot. First of all, thank you for actually ramping the presentation and note advances slide correctly. And thanks for noting that from the last call.

P. Sitaram — Chief Financial Officer

Yeah.

Pranav Tendolkar — Rare Enterprises — Analyst

And, sir, second thing is, also you have included other income. That is also solved our problems a lot. Sir, I have just two doubts to start with. First of all, the INR777 crore provisions that you have done on the restructured book that you have mentioned in the notes to accounts.

P. Sitaram — Chief Financial Officer

Yeah.

Pranav Tendolkar — Rare Enterprises — Analyst

Where in the P&L it has hit? Because you have also given in the subsequent slides the provisions, and in that there is no figure standing out as large INR777 crores.

Suraj Das — B&K Securities — Analyst

I know. See, that is accounting presentation. So, we have made anticipatory provision on cases like future in March itself before they slipped. Now when they slip, it will move out of standard asset provision to NPA provision. Likewise, there are movement in and out of standard asset provision, and what is reflected in accounts is the net of all this accounting debits and credits. So, the — this additional provision that is made, INR777 crores, is also included in that. But you will not see the figures straight away there because of all the various other movements which are there.

Pranav Tendolkar — Rare Enterprises — Analyst

Right, right. So, it is somewhere clubbed in that split of provisions that you have given?

Suraj Das — B&K Securities — Analyst

Yeah, that right.

Pranav Tendolkar — Rare Enterprises — Analyst

So, sir, in that case, can you just specify what is the actual restructured book in terms of amount, COVID and non-COVID? Because, I remember that previous quarter it was around INR7,931 crore combined COVID and non-COVID.

P. Sitaram — Chief Financial Officer

Yeah.

Rakesh Sharma — Managing Director and Chief Executive Officer

COVID — COVID is INR3,422 crore — sorry, yield in March ’22 — June, INR2,983 crore.

P. Sitaram — Chief Financial Officer

Yeah.

Rakesh Sharma — Managing Director and Chief Executive Officer

That it is. And then the remaining is, SA4 INR91 crore; 5/25, INR306 crores; and others, INR684 crore. So, total restructured standard book is INR4,064 crore. It is 2.9% — as I had indicated earlier, 2.98% of my standard was advances as of June 2022.

Pranav Tendolkar — Rare Enterprises — Analyst

INR4,064 crore is the total book?

P. Sitaram — Chief Financial Officer

INR4,064 crore, yeah.

Rakesh Sharma — Managing Director and Chief Executive Officer

Yeah, is the total, including all.

P. Sitaram — Chief Financial Officer

All.

Rakesh Sharma — Managing Director and Chief Executive Officer

S4A, 5/25…

P. Sitaram — Chief Financial Officer

Including earlier S4A, 5/25, all that.

Pranav Tendolkar — Rare Enterprises — Analyst

Okay. And on that, you have INR770 crore restructured provision that we have done this quarter and plus restructured provisions from the last quarter?

P. Sitaram — Chief Financial Officer

See, this INR777 crore plus that INR460 crore is only against 3,100 — that INR2,900 crore which MD mentioned, of the restructure. The remaining 5/25, S4A, all that they have their own provisions as mandated by the Reserve Bank of India.

Pranav Tendolkar — Rare Enterprises — Analyst

Right, right, right. That is one question. Second question is that can you just mentioned little bit in a slow speed exact NIM for the last quarter?

P. Sitaram — Chief Financial Officer

Sure, sure. I’ll repeat the figures. The June ’21, first time reading out the NII in calendar sequence. INR1,727 crores, INR1,8881 crore, and INR2,021 crore. Okay? Now, NIM, again in calendar sequence, 2.8%, 3.09%, and 3.26%. Perfect. Yeah. Perfect, sir. Sir, so, on this core NIM, what is the guidance? Like, what could be the core NIM for us?

Rakesh Sharma — Managing Director and Chief Executive Officer

So, we have been — like, last year I also indicated, core NIM will be above 3.25%. We will maintain above that. And this June quarter, core is 3.26%. So, that is, yeah, I think we have been able to achieve the target.

Pranav Tendolkar — Rare Enterprises — Analyst

Right, right. Sir, for the quarter, the slippage, is there anything coming out of the ex-restructured book that is also contributed to the slippages in this quarter?

Rakesh Sharma — Managing Director and Chief Executive Officer

So, this corporate book, like, the NPA, see, if you see the slippage breakup, so, out of INR964 crore, INR443 crore is from corporate. Out of that INR443 crore, INR356 crore is coming out of that what we had mentioned. See that, know?

Pranav Tendolkar — Rare Enterprises — Analyst

Future — all the future cases are all restructured in this COVID and…

Rakesh Sharma — Managing Director and Chief Executive Officer

Restructured, so, INR356 crore, remaining all is only one account. So, only three accounts where there, two from future group and one from other.

Pranav Tendolkar — Rare Enterprises — Analyst

Yeah.

Rakesh Sharma — Managing Director and Chief Executive Officer

So, that now — that’s why it is restructured book has also come down in corporate.

Pranav Tendolkar — Rare Enterprises — Analyst

Right. So, sir, only INR356 crore — so, INR356 crore was…

P. Sitaram — Chief Financial Officer

From corporate, and a little bit is there from retail. Not much.

Pranav Tendolkar — Rare Enterprises — Analyst

So, that INR356 crore is from restructured book previously?

P. Sitaram — Chief Financial Officer

Yeah, yeah.

Rakesh Sharma — Managing Director and Chief Executive Officer

And INR92 crores.

Pranav Tendolkar — Rare Enterprises — Analyst

Perfect, sir. Perfect. Perfect. Thanks a lot. I’ll come back with more questions.

Operator

Thank you. [Operator Instructions] The next question is from the line of Renish Bhuva from ICICI Securities. Please go ahead.

Renish Bhuva — ICICI Securities Limited — Analyst

Yeah, hi, sir. And thanks for the opportunity. So, sir, just a couple of questions. So, one is on the slippage side. So, sir, of total slippages, how much of the slippages have flown from the standard restructured book this quarter?

P. Sitaram — Chief Financial Officer

Yeah, the — we mentioned the — this one, the COVID restructure, so if you remove that, okay, from the standard restructure — oh, sorry I didn’t — from the standard restructured book, hardly anything is there. So, when you say standard restructured other than COVID restructured, so we have this 5/25 and the S4A and other restructuring, hardly any cases have slipped from that. In fact, I will probably say zero.

Renish Bhuva — ICICI Securities Limited — Analyst

And from COVID restructuring pool?

P. Sitaram — Chief Financial Officer

That is what we mentioned that the future, that 300…

Rakesh Sharma — Managing Director and Chief Executive Officer

INR356 crore.

P. Sitaram — Chief Financial Officer

INR300 crore…

Rakesh Sharma — Managing Director and Chief Executive Officer

INR356 crore in corporate and INR92 crore

P. Sitaram — Chief Financial Officer

INR92 crore in retail.

Rakesh Sharma — Managing Director and Chief Executive Officer

That’s all. Otherwise, all accounts are running fine.

Renish Bhuva — ICICI Securities Limited — Analyst

Got it. Got it, sir. And, sir. Secondly, this is more or less on the industry level, okay. So, maybe we have seen this the corporate credit has been sort of gathering the pace from last four, five months, after almost four, five years of muted credit growth. So, what is your experience in the corporate segment? I mean, you guys also sort of see that corporate demand is picking up and it will sustain going ahead?

Rakesh Sharma — Managing Director and Chief Executive Officer

Yeah. I think two or three the factors in please simultaneously. One, as you said, after four, five years of muted investment cycle growth, investment cycle is back on the table. But that has not contributed to the growth so far. That is still in the process of being tied up and disbursements on new investment are yet to happen. But if you look at working capital drawing, I think there is increase in the utilization of working. One, there is a capacity pickup in the corporate. There is a cost push inflation, which has increased the value of inventory health.

Renish Bhuva — ICICI Securities Limited — Analyst

Correct.

Rakesh Sharma — Managing Director and Chief Executive Officer

And I think the drawing power or the utilization under the working capital limits. Already sanctions has also increased. The third one is a lot of bothering from the bond market and money markets has come back to the loan market now, because the interest rates in the bond and the money markets have moved much faster than the MCLR of the banks. So, this is a multi-factor play with which we are seeing some push in the credit offtake.

Renish Bhuva — ICICI Securities Limited — Analyst

Got it. Sir, just a follow-up on that. So, on the last point about — about the rate transmission which is a big faster on the money market side. So, would you put it under the seasonality? Or do you feel this trend will continue given there is more rate hike likely?

Rakesh Sharma — Managing Director and Chief Executive Officer

I think this will continue at least for this year, for year 2023. After that, we will have to see where interest rates stabilize.

Renish Bhuva — ICICI Securities Limited — Analyst

Got it, sir. Okay, okay. That’s it from my side, sir. Thank you very much, sir.

Operator

Thank you. [Operator Instructions] The next question is from the line of Pranav from Rare Enterprises. Please go ahead.

Pranav Tendolkar — Rare Enterprises — Analyst

Sir, thanks a lot. Sir, can you just highlight what are the steps now taken for divestment of government stake? What are the — so there was a news in the media that government is asking for something — something from RBI which will ease the process?

Rakesh Sharma — Managing Director and Chief Executive Officer

Actually, as you are aware, this entire process of disinvestment is being held by DIPAM, and they have the seller. Basically, they are the owner of the bank with, like, 45% share with Government of India and 49% with LIC. So, the entire process, since it is being handled by them, so they are only running the process. So, I think this — they will be in a better position to answer on this disinvestment question, because we are only aware whatever is coming to media. Otherwise, as such, they will be the best persons to answer this question. I’m sorry.

Pranav Tendolkar — Rare Enterprises — Analyst

Sir, in terms of your cost employees, is it safe to assume that now this quarterly run rate of around INR717 crores will continue, and then there will be a nominal inflation of 10%?

P. Sitaram — Chief Financial Officer

Yeah, I mean we have to account for DA change. That is one. Plus, also you have to remember that we have not done any major recruitment for nearly four years, mainly because we are under PCA. Now, as business expands, and, of course, we are pushing on digital, but still we’ll require a little more on staff complement also. So, some amount of addition to staff will happen. And that will also raise the staff cost a little. But I believe that is — it will increase but it’ll interest by a small amount.

Pranav Tendolkar — Rare Enterprises — Analyst

Right.

P. Sitaram — Chief Financial Officer

We are not anticipating too much on the AS 15 till this interest rate regime actually has a different impact.

Pranav Tendolkar — Rare Enterprises — Analyst

Sir, can your upgrade and recoveries be much more than what you had guided previously of INR4,000 crores? Because this quarter itself it was very good. The IBC still to catch the full steam. So, can we expect that the recoveries and upgrades will be higher than INR4,000 crores for the year?

P. Sitaram — Chief Financial Officer

We are maintaining our guidance at INR4,000 crore.

Rakesh Sharma — Managing Director and Chief Executive Officer

INR4,000 crore, we have estimated for the full year. Although, like pro rata, almost INR1,136 crore we have been able to recover. So, let us see. We will reveal the position at the end of the second quarter. But as of now, we are retaining the target at around INR4,000 crore only.

Pranav Tendolkar — Rare Enterprises — Analyst

Right, right, right. There was one SK Energy or SK Power something like that in Odisha which was recovered this quarter? So, we have any exposure to that?

P. Sitaram — Chief Financial Officer

I don’t think so.

Rakesh Sharma — Managing Director and Chief Executive Officer

No, no.

Pranav Tendolkar — Rare Enterprises — Analyst

And last question from my side. Sir in the IBC pipeline, are there any big accounts that you see are on the anvil for resolution, where we have considerable exposure, like, in this year?

Unidentified Speaker —

We have Videocon coming up, but we will have to wait and see.

Pranav Tendolkar — Rare Enterprises — Analyst

Right. And what is the exposure that we have for this account?

Unidentified Speaker —

Videocon, already we have…

Rakesh Sharma — Managing Director and Chief Executive Officer

Around INR4,500 crores.

Unidentified Speaker —

Yes, INR4,500 crore.

Pranav Tendolkar — Rare Enterprises — Analyst

And we have fully provided for that, right?

Rakesh Sharma — Managing Director and Chief Executive Officer

Yeah, yeah.

Unidentified Speaker —

We have fully provided.

P. Sitaram — Chief Financial Officer

We have fully provided.

Pranav Tendolkar — Rare Enterprises — Analyst

And what is the expected recovery? Like, it will be 20%, 30%?

Rakesh Sharma — Managing Director and Chief Executive Officer

Too early to say.

Unidentified Speaker —

It is too early, because the last week for receiving — it’s still — we are still in the process.

Pranav Tendolkar — Rare Enterprises — Analyst

Okay, sir. Okay. Thank you, sir.

Operator

Thank you. [Operator Instructions] As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments.

Rakesh Sharma — Managing Director and Chief Executive Officer

So, thank you very much for attending this conference. But we are aware, as Sitaram said, that we have to join some RBI conference also. Thank you very much. Despite that busy schedule, you have spared time. And thanks to ICICI Securities also for organizing this conference very nicely. Thank you.

P. Sitaram — Chief Financial Officer

Thank you.

Renish Bhuva — ICICI Securities Limited — Analyst

Thank you, sir.