INDIAN BANK (NSE: INDIANB) Q1 2026 Earnings Call dated Jul. 24, 2025
Corporate Participants:
Unidentified Speaker
Binod Kumar — Managing Director and Chief Executive Officer
Ashutosh Choudhury — Executive Director
Analysts:
Unidentified Participant
Presentation:
Unidentified Speaker
Thanks a lot. Good evening ladies and gentlemen. We welcome you all to Indian Bank’s post results conference call for the first quarter of financial year 2026 hosted by MK from the top management we have with us Sri Binod Kumar, MDN CEO and Sri Ashutosh Chowdhury Executive Director Sri Shivajra Singh Executive Director Shri Brajesh Kumar Singh Executive Director. I request the MD SIR to briefly summarize the key highlights from first quarter FY26 results and also provide some strategic direction on growth, margins and asset quality. Post which we will have the Q and A session over to UMD sir.
Binod Kumar — Managing Director and Chief Executive Officer
Good afternoon. Good afternoon. Good evening ladies and gentlemen. My colleague on the board Mr. Astosh Chaudhary, Mr. Brijesh Kumar Singh, CGMS. We have come out with the our first quarterly result for the financial year 2526. I will say result is in line. So total business has grown QoQ 1.5 by 1.52% from 13.25 to 13.45. Call is now recorded trillion y growth is 10.25% deposit has grown Q Q 0.97% Yo y 9.26% from 7 is being recorded 7.44 lakh current account has in fact CASA saving current Both has degrown. Current has degrown in Q OQ basis for 3.677%.
However Y growth is 10.70% saving fund again QOQ there is some marginal decline of 1.76% but yoy growth of 3.27%. CASA yoy growth of 4.23% at QoQ there is dgrowth of 2.03%. CASA ratio has also domestic CASA ratio is at 38.97% against in March it was 40.17% and CD ratio domestic is at 78.32% advance. We have grown from y 11.50% plus from 5.39 to 6.01 trillion. And QoQ also there is a growth of 2.21% from 5.88 to 6.01. RAM has grown by 15.93% yoy QoQ 83.52% and reached to 3.63 trillion. Retail. Retail has grown by y 3 16.52% and QoQ 3.83% and reached to 1.24 trillion.
Agri has also grown by 16.40% and 4.75%. MSME also where we were struggling earlier in the range of 5 to 6% growth now we are growing in the range of 14 to 15%. Last quarter also it was 11 to 12%. This quarter it is 14.45% and we reached 2 0.95953 trillion. Ram share has increased from 64.23 to 65.34. Corporate credit has grown basis it has marginally de grown 1 by minus 1.41%. However why there is 1.77% growth here? I would like to highlight one thing. In NBFC our growth have. Our balance has outstanding has come down from 62,000 crore to 56,000 crore.
So there is marginal decline in NBFC and some WCDL where we have a very competitive rate. Even on the last date I allowed some money to be repaid because of the pricing issue. However having said that I will like to add in this quarter itself we have sanctioned total sanction of 27,000 crore. We have sanctioned in this Q1 itself which was 18,000 in the last in the previous quarter of the financial year FY25. So there is a growth of in our sanction around 25 around 50%. So we are on track there. It was a strategic decision then Net profit.
Net Profit grew by Y 23.69% Q 0.57% and reached to 22,973. Operating profit is at 4,770 with YoY growth of 5.97% and QoQ marginal decline of 4.96% primarily on account of two factors which will come in the other income also around 300 crore. There is a degrowth in other income that is primarily because of two factors. In last quarter interest on income tax refund we have got around 180 crore and 86 crore. We have recovered penal charges which normally which we recover on happy early basis that means September and March so that amount was not there.
So that’s. That is the reason. Otherwise other components are on track. Net interest income yoy basis it has grown by 2.93% to 6359. However there is marginal decline from 6389 to 6358 only 30 crore. Other income as I explained it has degrown from 20072743 q basis to 2439. But if we see Y basis Y basis our other income has also grown by 28%. NIM domestic NIM it has come down from 3.48 to 3.35 that means there is decline of 13 basis point return on asset we have given guidance of in the range of around 1.20 but we have been able to maintain 1.34 in this quarter.
Return on equity also we have been able to maintain at 20.26 where we have given guidance of around in the range of 19 to 20%. Cost to income ratio have staff expenses Other expenses remain flat. It was 2700 in March, now it is 2612. Other expenses also 1413 crore and now it is 1415. So it is almost flat. Cost to income ratio has slightly gone up from 45.05 to 45.78 but that is not on account of any increase in the cost. That is basically as I explained earlier it is on account of the some reduction in the other income.
PCR ratio is at 98.20%. Credit cost has come down substantially from 0.81 to 0.28 and earning per share has increased to 88.28. Cost of deposit there is marginal increase from 5.10 to 5.14 because repricing of deposit is yet to happen. Which part of that will start from this quarter? Yield on advances despite 100 basis point passing on the external benchmark link loan we have been able to contain their only marginal decline from 8.642 on QoQ basis to 8.2. Gross NPA has come down from 3.77 to 3.01 on YoY basis that means 76 basis point reduction and QoQ basis 8 basis point reduction.
Net NPA has come down YoY basis from 0.39 to 0.18 21 basis point reduction and on Y basis QoQ basis 1 basis point reduction from 0.19 to 0.18 slippage ratio in the last June it was 1.50, now it is 0.94. For quarter ended March it was 1.09 and for financial year it was 1.11. So we have been able to contain slippages recovery since September 22nd. Our recovery is more than consistently slippage this quarter also we have been against the guidance. We have given guidance of 5005 between 5 recovery of between 5500 to 6500. We have been able to recover 2059 in this quarter itself out of that and we have also given guidance of AUC of 2000 crore but we have been able to recover around 815 crore already in this quarter itself.
SMA if you see SMA number has gone up if SMA 2 if you see particularly if not entire SMA SMA overall has come down from 13.3 32% as of March June 24 to 7.99 as of June 25. So there is a substantial decrease of around 5.32%. But if you see SMA 2 has gone up basically because of two PSU account which where in SMA 1 it has come to SMA 2. But now SMA 2 which was more than 5 crore which was 4586 as of June and 30 June now it is only 815. In these account we have government guarantees available NBFC exposure I explained it has come down from 62,000 to 56,000 crore sanction.
Also overall sanction if I talk of including all the different segments of different. I mean different verticals. In last year it was 60,000. Now this year, this year so far it is 88,000 crore. In first quarter itself we have been able to achieve capital adequacy ratio is at 17.80% with Cete is at 15.26%. RWA density has slightly come down because of. If you see our AAA rated exposure has gone up from 49,000 crore to 60,000 crore and also some reduction because of the some reduction in RWF nbfc. So coming to the external benchmark link loan it has slightly inched up from 39.06 to 40.46%.
But primarily that is because of the jewel loan being classified in retail. So retail loan is necessarily linked to external external benchmark benchmark. So that is on account of that basically coming to the guidance various guidance. We have given deposit in the rate range of 8 to 10%. It is now 9.26% advance. We have given guidance of 10 to 12%. It is in the range of. It is 11.50%. CASA is CASA. We have given guidance of around 40% but our endeavor will be to maintain that 40% this quarter. It has come down because some money has to flow in somehow could not.
So that is the reason CASA slightly come down to 39% approximately our gross NPA guidance less than 3%. We will definitely achieve. I mean maybe we can go even up to 2.5 net NPA same range 0.1 0.7 0.65. I mean we have already provided hardly, hardly thousand crore is there. So that does not make any difference now Nim we have given guidance of 3.15 to 3.30 we are at 3.23 so and I’m hopeful that we will be able to maintain the NIM guidance of between 3.15 to 3.30 ROA we have given guidance of 1.20 but we have been able to maintain at 1.34 credit cost we have given guidance of 1.
We are at 0.28 slippage. Again we are maintaining less than 1. We will definitely achieve that. And recovery from NCLT we have given guidance of 800. But in this quarter itself we have been able to recover 451 crore from the from one NCLT account. We don’t have much exposure in unsecured or Even in MFI NBFC. Our exposure is only 855 crore in MFI NBFC and that is in all good rated accounts only. And personal loan is at 7,000 crore so that is not cause of concern. There also credit card or exposure is also flat at 561so there is no concern in that.
We are focusing on opening saving fund account so we against last year we have been able to open 10 lakh 10.89 lakh account. This quarter Q1 we have been enabled to open 12.17 lakh and current account also 0.33 lakh to 0.34 lakh. So these are the numbers. But few initiatives which we have taken which I would like to share with all of you CASA since is a cause of concern we have taken some initiative on casa. We have launched five new CASA products like for for one we have opened for MSME sector. One also we have opened for women also.
One one for pensioners also one for professionals also and one for in Sampurna for salaried accounts also we have given many benefit in that. So hopefully that will help us in garnering some CASA and other otherwise also we have taken some initiative for CASA which will explain subsequently we have very recently opened 51 branches which will definitely help in garnering some new CASA business. Because new new branch on an average give 20 to 2530 crore business in a year. So these branches will add further value to us. And this is our 119th year. So we are planning to open 119 branches in this financial year.
So 51 we have already opened around another 68 we will be opening 69 more branches. Few initiatives we have taken on the digital side we have launched a lighter version of our IND smart app for the transaction only in the UPI we have launched so with the expectation that we will be able to I mean our customers use our UPI instead of going to another platform. That is the motive behind opening this launching this app. Then we have also opened MSME Business app so that people can take and loan on their own instead of visiting through the branches.
So around 13 digital journey we have launched in MSME so that will further help in getting the business. Then KCC Digital Journey wherever land record is digitized in these states we have launched a digital KCC Journey senior citizen branch. We have opened one senior citizen branch and let us see how that pans out. We have expectation that will not casa but we will get some good sticky deposit at least in that branch and we are really providing good providing good services in that branch. We have agentic AI we have launched for collection so that will further help in containing our SMA and slippage.
And we are also trying to automate corporate corporate credit assessment. So in our board note around 10 sections are there. Out of that four sections we have digitized by Google and remaining we will take in a staggered manner. So these are the few initiatives we are going to we have taken and on digital side we have taken some initiative and we are going to take like CRM we have started and by September end I think we will be going for few of the going ahead with few of the few of the services. We will start in that then Data Lake journey we have started Data Lake for that and then next generation call center we have already floated RFP and hopefully that will help us in further.
Vendor has been onboarded for next gen call center so that will again help in reducing our customer complaint, improving customer service and resolution of the complaint complaint. And we can use this for various purposes like for collection for digital, for lead generation, lead monitoring etc we can use this also. We are also in the process of launching EFRMS new software so that will again be the revamped version of EFRMS solution. So these are the few initiatives we have taken further. We are also planning to revamp our training sister entirely because training sister knowledge gap is one thing which I believe is cause of concern for not only customer complaint that also impacts our business.
So we are trying we will be that will take a year or so but we will be revamping our training center completely the way training is imparted. Basically it should be very interactive like quizzes, various small quizzes, presentation, case study etc. So these curriculum will redefine our curriculum completely. So these are the few initiatives we have taken and as those I will request as those to briefly Capture digital.
Ashutosh Choudhury — Executive Director
Yeah. Thank you sir. In the digital journey I will just capture in the four different phases. The first one is the transactions. If you see our UPI transaction has grown substantially from 2.12 crore per day to 2.82 crore per day. The mobile banking transaction has also improved this quarter. 59 lakhs per month. The rating of our mobile app has substantially increased from 4.1 to 4.4. We have launched 11 digital journey this quarter means Q1. So taking the total to 132. If you see the digital transactions has gone up from 90% to 93% in in a year.
And the biggest contribution to that is our UPI channel. In the digital transaction in mobile banking, Internet banking and in the card also. We have seen good traction in the mobile banking after launching of our IND smart mobile banking app in last year. We have seen a lot of onboarding in that particular app which is user friendly. A lot of features are available. Hence we have seen a lot of traction in that particular category. If you see the digital business. Digital business this particular quarter we have done 57955 crore. And we are aiming to do 25000 crore of digital business this particular financial year.
Most of it will be from the digital asset side. One good things we have done is that this E Bank guarantee we have started issuing we are popularizing this. We are handling our customers. We are imparting knowledge how to use that. That will also help a lot to the bank in non fund business. If you see the adoption, the digital adoption has gone up substantially more particularly into the retail side which was 69% one year back. This has improved to 87%. So also the agribusiness from 90 to 96%. And we are putting a putting good efforts to increase the MSME business which is at present 78%.
With that it will grow in a good manner. The bank has also onboarded itself in the ULI platform and garnered a business of almost 6,350 crore. So sir has told a lot of digital initiatives. So I am not telling all those digital initiatives right now but one or two things that I will like to tell here. We have launched employee assist. So this particular things will enhance the customer experience. Because this assist is a chatbot which will immediately provide all the answers related to bank’s internal guidelines, process and systems. So which will help the employee of the bank to reply to the customer promptly.
So rest sir is told. And one more thing I will like to tell here is that the agentic AI for collection that we have introduced which is right now in two language that is English and Tamil. With the success and with more use cases we will expand it to other regional languages and Hindi. So that will help us in our collection systems, improve our collection system and that particular agentic AI system will definitely take it forward for our business cases in the days to come. Thank you sir.
Questions and Answers:
Unidentified Speaker
Thank you sir. We will now open up the floor for Q and A session. Anybody who wishes to ask a question shall raise their hands. I request the participants to limit the question to two participants. And for further questions please join back the queue. Anyone wants to ask a question, please raise your hand. Yeah. Mr. Ajmera, please unmute yourself and ask your question.
Unidentified Participant
Sir. Vinod Kumarji, compliments to you sir for keeping at least the. I mean the bottom line at least intact. You are in profit on the net profit front. Many of the banks are finding it difficult and even the business growth, the credit growth of 2.21% in this quarter is commendable. Overall business also is. So in spite of so many challenges you have met, you know the. I mean you have given declared good results, good numbers. And in your presentation in Ashutoshar’s digital journey presentation you almost covered I think everybody’s 70 to 80% questions or the queries.
So there is hardly anything to ask. But yes, there are some couple of questions on some observations and some data points for the future. Three quarters now because there is no. You already explained everything in detail. Like one was on SMA2 and you said that two government accounts are already. I think one of them is already been regularized under SMA1 or SMA0. So what is the exact number of that now? Where do we stand now? Visa with the June number on SMA 2,
Binod Kumar
SMA 2. These two accounts constitute around 3,300 crore. So total SMA 2 more than 5,5005. 5 crore was 4,586. So these two accounts had come out of SMA 2 and now SMA 2 is for 815 only.
Unidentified Participant
Yeah. So that’s a very good encouraging, I mean statement from you because that was the major cause of worry that are we sleeping or having the future NPAS or and even the npf.
Binod Kumar
I don’t think these accounts will slip to npa.
Unidentified Participant
Even the NPA provision in this quarter also is very less. So there is hardly any chance, you know like for any further numbers going NBA increasing with this part of the benefits or part of rather I would say the hit of the rate Cuts has already been factored in. But still some part is left out of the earlier rate cuts. And now two more rate cuts of 25 bips. So total about 50 bips is also expected in this year also maybe little. I mean later half or later part of the year. So where do we.
Because the the NIM today is comfortable at 3.323 but going forward will you be able to protect that 3.1 or 3.15 with this leg effect as well as the future effect on the. I mean effect of the future rate cuts.
Binod Kumar
I think we will be able to. Because see from this quarter onwards bulk rate has come down by more than 100 basis point. So impact of that will start coming in this quarter plus rate cut has also happened in retail term deposit. So impact of that will also start coming on in another 3 to 6 months around my 86,000 crore will reply reprice so impact or that will also start coming in. So I am hopeful that I will be maintain. I’ll be maintaining around 3 point between 3.15 to 3.30.
Unidentified Participant
That’s very good sir. Sir you have been giving a little conservative targets goals and achieving it. That’s very good. But looking at the current trend and with your 88000 crore of the sanctioned. Sanctioned or in pipeline. I think it was 88,000 isn’t you said?
Binod Kumar
Yeah 88,000 we have sanctioned in this crore.
Unidentified Participant
Is there any chance of upgrading the the targets for the credit going to maybe 13 14% or we will stick to that 10 to 12% only sir.
Binod Kumar
As of now we stick to 10 between we’ll try to be on the higher band of the guidance will be right.
Unidentified Participant
Okay sir one last this thing in this round. You had said in the last quarter’s meet that you are not encouraging much the I mean the co lending or increasing your book by participation by others because you are not fully geared up or prepared digitally your digital capability is not there to that extent. So whether any change is there now would you be looking for those those kind of arrangements to increase your overall loan book. And secondly coupled with this with RBI now relaxing the collaterals gold collateral for the agree loans of less than two lads.
Do you think that some major chunk can go there now when you can accept the collateral and give the loans?
Binod Kumar
No actually what had happened? Let me explain you co lending. We are still not in preparedness for our digital platform. So as and when our digital platform is ready we are not against co lending only technological requirement is there. So as and when we have technological requirement. We can go for co lending number one. Number two Agriculture Wiretrade have this gold loan up to 2 crore. They have allowed now to take 2 lakhs if they are willingly providing. So when draft guidelines came we have already initiated for shifting this gold loan to retail loan. So now at least with the. With this we can further take them as agriculture.
Unidentified Participant
So the last one is on the treasury. Indian bank is known for making very good treasury profits. Good arbitrage. Good arbitrage even in the foreign currency. So going forward and with the rate cuts already there and further rate cuts coming do you think that we will make some bumper good profit from the treasury in the remaining three quarters?
Binod Kumar
No. Definitely. So even if you see last quarter also we have from forex arbitrage say you can say we have earned around 158 crore. And the treasury treasury profit we will book as per requirement. Because say if. If I sell some of the higher yielding then again whatever we will purchase that will be low yielding. So we will book profit as per requirement only. I mean not a very bumper or something like that. Very.
Unidentified Participant
Okay. Okay sir. Thank you. Just if you can tell me any buffer provision which we still have now in our books.
Binod Kumar
No, see we have various policies for providing on the even on standard assets. So we are following that policy and we are making pro. Like I may share with you. Like on SMA2 we have a policy of providing 1010 which is not required. But we have a policy so similar there are various pockets where as per our policy we keep on providing.
Unidentified Participant
All right sir. Thank you. And all the best to you sir.
Binod Kumar
Thank you. Thank you.
Unidentified Participant
Physical interaction.
Binod Kumar
Sir. I know we’ll come come first week or second. We will come.
Unidentified Speaker
Thank you. We’ll take next question from Giant. Karotiji. Jayant, please unmute yourself.
Unidentified Participant
Am I audible?
Unidentified Speaker
Yeah Jayant, please go ahead.
Unidentified Participant
The question is on the asset yields how much of the current rate cut has been passed on. And also if you could highlight on the MCLR book how much of the book would be corporate where competitive intensity could sort of drive some repricing decisions for us.
Binod Kumar
See MCLR my MCLR book is 52% and external benchmark link is 44.40.46%. And within MCLR1 one year MCLR linked is 41. So substantial portion of even MCLR is linked to one year MCLR. Coming to your question of the transmission, how much of the transmission so external benchmark linked each side immediately we have very. On the very next day of the rate cut we have passed on so on 41, 40% of the book. It has already been passed on coming to the MCLR since cost of deposit has not come down. So although in last three months MCLR has come down by 5 basis point each month. But going forward only MCLR will start coming down as and when our cost of deposit starts coming down and marginal cost starts coming down.
Unidentified Participant
Sir, but the question is on margin trajectory. Would you expect the second quarter margins to take a further hit because of the two months that will be left?
Binod Kumar
Yes, yes. There will be. There will be some margin reduction further.
Unidentified Participant
And you’re still comfortable with the full year guidance of 3.15 to 3.3.
Binod Kumar
3.15. I think we will be able to maintain unless there is some very aggressive rate cut. Then of course then we will have to think otherwise. We will be able.
Unidentified Participant
So last question on the deposit mix. So there is some pressure on deposit growth. And we’ve seen the CD books of a lot of banks rising. How comfortable are you with the mix of CDs moving up? And if you could also help us understand what is the growth in that book.
Binod Kumar
No, just let me explain you why my credit deposit growth has not been there. If you say. I mean bulk. Bulk. I am saying including CD and bulk also. So that book in March was 1.41 and in June it is only 1.45. 1.45. So only hardly 4,000, 4,000 crore increase. We have taken so not much of bulk. We are not taking very aggressively because that is at a cost.
Unidentified Participant
And are you comfortable growing the bulk book in case retail falls short to fund your growth?
Binod Kumar
I mean if no option left and still we are making some margin. We will.
Unidentified Participant
So the question is essentially growth versus margin. You will pick growth over margin.
Binod Kumar
No, no. We will strike balance. Like I told in the. In the corporate book we said around 12,12,000 crore. So that will depend on what, at what stage, what margin we are getting. That will depend on that. Say. Say we are at times even bulk. At times we get very cheaper. So at that point of time there is no harm in taking even bulk.
Unidentified Participant
Understood. Thank you. M. Thank you.
Unidentified Speaker
Thank you Jayant. Next question will take from Maruk. Maru, please unmute yourself.
Unidentified Participant
Hello. Hello sir. Congratulations.
Binod Kumar
Thank you Maru.
Unidentified Participant
So I had a couple of questions. I think Jayant already asked. But just to delve a little deep. So our margins have fallen by 14 basis points this quarter. Right. And next quarter there’ll be some impact of the June rate cut and there’ll be some amount of mclr. Small amount Of MCLR repricing as well. So given all that would you say that the quantum of margin decline would reduce in the second quarter? Or it could be similar.
Binod Kumar
No. Quantum. Quantum of margin decline will reduce in the from this quarter onwards. Because bulk will also start repricing. And we have also gone for revision of rate in retail term deposit. And also we have gone for some rate rationalization in saving funds. So this quarter, from 1st of July, so this quarter onwards this rate of decline should be. Should come down.
Unidentified Participant
Okay sir. Got it. And so just in terms of retail term deposits how much would they reprice in one quarter? Because we know all banks have 13 to 15 year month maturity. But it may be lumpy in some quarter. Not lumpy. So on a ballpark what could you say would be the repricing in the second quarter?
Ashutosh Choudhury
So my retail term deposit is around 2. 2 lakh 50,000 crore. 288. So out of that 86 is repricing in next three to six months.
Unidentified Participant
86 in next three to six months. Okay, so very helpful. And just one last question. In terms of competition, right? Where do you think private banks are more aggressive relative to PSU banks? In for instance PSU banks have recouped their market share in home loans. So where are private banks really very aggressive in pricing? In which segments?
Ashutosh Choudhury
Very rightly we are saying. But maybe because of their strategy also since they have some CD ratio constraint in the past quarter. So maybe and very openly he came and told we will consolidate. So certain segments like msme, we are seeing good competition from the private sector banks and certain export oriented units. There also we are seeing very high competition.
Unidentified Participant
Okay. And in corporate it’s largely PSUs only, right? Like say in the A category or AA category would it be PSUs or private?
Binod Kumar
Mostly PSUs. Okay. And one or two private banks come but the smaller banks come. But that is for a very small amount.
Unidentified Participant
Got it sir. Got it sir. This is so helpful. Thank you so much.
Binod Kumar
Thank you. Thank you.
Unidentified Speaker
Thank you. Maruk, next question we’ll take from Mona Kan. Mona, please unmute yourself.
Unidentified Participant
Hello.
Binod Kumar
Hello.
Unidentified Speaker
Yeah Mona, go ahead.
Unidentified Participant
Hi. Evening sir. And congratulations on a good set of numbers. So firstly on the. On the bulk deposits you mentioned about 1.4 lakh crore. What would be the maturity pattern of these deposits? Between maturity between three months, six months and so on.
Binod Kumar
I have data. 50% one year and 50% below one year.
Unidentified Participant
Okay. So 50% will be after one year.
Binod Kumar
50% will be up or at one year or at one year.
Unidentified Participant
Okay. Okay. So in the next.
Binod Kumar
Normally we are not normally bulk. We are not taking for more than one year. In very few circumstances we take for more than one year.
Unidentified Participant
Okay, so is it fair to say that in the next six months or so about 50% of this will mature? Is that a fair understanding? Or in the next nine months that’s the case?
Binod Kumar
No, in the, in six months because okay, around this quarter itself 33,000 will reprice. So out of 1 lakh 4 thousand 33,000 will reprice in this quarter itself.
Unidentified Participant
Okay, got it. And so secondly, if I look at your, you know, you’ve made significant provisions which is the PCR on your existing NPA and uh, the trend on slippages have also moderated. So is it fair to assume that sort of credit costs will settle down between 50 to 70 bips or what are the risks you’re seeing to credit cost, if any?
Binod Kumar
No, no, very rightly we are saying although we have given guidance of credit cost less than 1, but it will settle somewhere between 50 to 70 or maybe less than that.
Unidentified Participant
Sure, sure, got it. And also you have, you’ve been providing on standard assets this quarter also you made some additional provisions. So if I have to look at the outstanding standard provisions including general restructured and everything, where would it stand?
Binod Kumar
I think restructured etc where smaller loans are there we have 100%, we have. Made. Restructured, we have made 25% and but various very. We are taking various measure for providing like one example, I told you, even in SMA book SMA 2 we are making 10% provision wherever we see. Yes Mona, please go ahead. Yeah, so wherever we see some sector also there is, there is some stress though we take proactive measures.
Unidentified Participant
Right. So if I have to understand the outstanding standard provisions, where would it be? You can tell me X of general and restructured as well particularly into these accounts because you’ve been consistently providing. So just wanted to get the outstanding number.
Binod Kumar
That number. We’ll see. Exactly. I don’t remember. Sure, we’ll see.
Unidentified Participant
Yeah, got it, got it. And also just finally on the recovery from written off. It looks fairly strong from a. From a Q1 perspective. So anything you want to highlight there that has played out?
Binod Kumar
No, no. It is basically on account of one big account has been resolved in one account itself 3040 has come. So that is because of that. 340. I told 340. So because of that.
Unidentified Participant
Okay, got it. Thanks so much. If you could just come back on that outstanding provisions number. Standard provisions, that will be very helpful. Thank you.
Binod Kumar
Sure.
Unidentified Speaker
Thank you Mona. So before we take the next question there was one question in the chat which talks about like what’s the recovery from written off that you expect in second quarter and for the full year? I believe you gave a guidance of about 18002000 odd crores. But I think you already had 450 crores in first quarter. So you want to revise that number and any color on like second quarter what could be the recovery from return of pool. Additionally you also talked about that the PSLC there is some relief which has come from the RBI now. So then you intend to book some PSLC fees in second quarter?
Ashutosh Choudhury
No. So AUC recovery, whatever we have given guidance of 2000 will not revise because already what account has come? We have already accounted for that. So it has come in this quarter. But in this next quarter also AUC recovery will be in the range of 400 to 500 crore. So and PSLC we have already booked if you see we have already booked in this quarter of 258crore.
Unidentified Speaker
Okay, but can that run rate go up now that there is a relief? That’s a question.
Ashutosh Choudhury
No, no, no. Because since that guidelines was applicable from 1st of April so we have already taken measures and PSLC wherever we have already sold around 1000 crore PSLC income will come during this year out of that pro rata we have booked 1 4th in this quarter.
Unidentified Speaker
Sure. So secondly your SMA pool if you look at and the SMA pool of another bank where they had this government related agri project. What’s happening on that? I believe you also have an exposure to that agri project. Is it stressed? Are you getting timely recoveries do after some delay what’s happening over there in that account?
Ashutosh Choudhury
No, we are getting recovery in these accounts. I don’t think they will sleep because with some delay we are getting recovery.
Unidentified Speaker
Okay, so you don’t expect any. I mean that accounted on np, right?
Ashutosh Choudhury
No, no. Government guaranteed also.
Unidentified Speaker
Next question we’ll take from Devendra Kumar. Devendra, please unmute your.
Unidentified Participant
Hello. Hello.
Binod Kumar
Yeah, please audible.
Unidentified Participant
Okay. Thank you sir for giving me opportunity. And thanks for the good setup number even above the guidelines guidance. Sir, actually I just want to know what type of initiative are being taken for increasing customer base. Like advertisement and other things. We are taking good steps for digital transformation. But those information. How those information are shared with normal public so that they can attract towards bank.
Binod Kumar
So we are taking various measures and publicity is one of them. We are making good publicity of the of our products on various visible platforms. Digital, Digital Marketing also we are adopting. And apart from that we. We have a very strong team of RAC resource acquisition centers. 100 we have RSCs. So their people also go on the go on for marketing. And we have a subsidiary igss. So we are using these manpower also for canvassing our liability products and also generating lead for asset products like a home loan, car vehicle loan etc. So multi, multi pronged approach we are taking.
Unidentified Participant
Okay sir. Thank you. Thank you very much sir. Thank you.
Binod Kumar
Thank you.
Unidentified Speaker
Thank you. Devendra, we’ll take last question from Sushil Joksiri. Sushi, please unmute yourself.
Unidentified Participant
Congratulations to team Indian bank for excellent result.
Binod Kumar
Thank you.
Unidentified Participant
My first question. Sir, my first question is what is the likely balance between RAM and corporate for the year end?
Binod Kumar
65, 65. 35.
Unidentified Participant
Sir. What is the average yield which we are getting on RAM today?
Binod Kumar
Ram average yield and we have bridge yield on ram. Will share with you right now.
Unidentified Participant
I don’t have no problem sir. I’ll take it offline. Second thing sir. Most of the bankers in the Q1 con call are indicating whether it’s a murmur on the street or general assumption there will be two more rate cuts in the second half. In view of that what is the outlook on treasury and what how are we prepared for if there are two more rate cuts on overall business scenario.
Binod Kumar
So overall business scenario we. We have given guidance. We will achieve that advance. We have given guidance of 10 to 12% and deposit also we have given 8 to 10%. We will achieve that. I’m quite confident in that count. That count if there are two rate cut so treasury there will be basically of course there will be profit booking in Treasury. But when we have given guidance of 3.15 to 3.30 we have taken into account 100 basis point rate cut in the year 75 already happened. And if as you are saying another 50 happens then of course then we will have to think about our new strategy. So how we can protect at least whatever guidance we have given. We will have to rework that.
Unidentified Participant
Sir. Indian bank has taken lots of initiative where digitization, cross sell, cash management, back office services over the number of years. And bank has done well to transform. Now this transformation and digital expenditure which we have done. Is it likely that as liquidity in the system is increasing rates have dropped. A CASA can move back to 41 42% in a year, year and a half.
Binod Kumar
No, I don’t think CASA moving up will be really a challenge. On two counts. One, government is also adopting JIT in many states. And this pace of increasing JIT will further increase only. And number two if you see where people are shifting limiting their saving to other alternates also so and this trend I expect will continue so around maintaining even around 40 will be a challenge. I am to be very candid with you.
Unidentified Participant
Okay so now second thing is Southern states specifically where Indian bank presence is high. There’s lot of re energizing of the states happening because whether it is China plus one story GCC lot of global manufacturing capabilities coming to India. So job creation is happening which ultimately leads to betterment for banks. Whether it’s for corporate lending or consumer is concerned. Are we seeing in your sanctions such kind of borrowing demand specifically from new industries?
Binod Kumar
No. The amount of capex expected is not happening. Private capex particularly public government capex yes it is happening but we are seeing some traction in few of the sectors like renewable energy of course there is good demand in solar also solar module also. So some traction we are seeing there Then city gas distribution also since government is trying to lay it online for the gas distribution. Traction is being seen that in that also and in PLI sectors also we have seen some tracks traction but the the amount of capex which is private capex which is expected it is not up to that level. If you see. And one more challenge is that all good rated companies are going to market for raising their resources instead of either CP or bond.
Unidentified Participant
Okay sir second thing is India signed a FTA with uk Many such more deals will happen. So there is assumption with Bangladesh in turmoil. Textile which is the big center of Tamil Nadu and adjoining states. Similar way leather is likely to be where Tamil Nadu is a big player. Are we sensing on specifically MSME any demand which is supporting the bank for business growth?
Binod Kumar
Yeah so. So I. I will reply it like this. There was some stress in textile sector so now we are seeing sign of revival in that.
Unidentified Participant
So prospects of business for Indian bank may get better in that segment
Binod Kumar
in this sector. Yes.
Unidentified Participant
Okay. And sir any specific digital spend which we are likely to this year and human resource as you have taken so many initiatives which will be very important.
Binod Kumar
For the bank is of course our its spend will be in the range of approximately 1500 crore for this year also. Last year also it was around 1400300 so it will be in that range Manpower also we are around 3000 press hiring will happen in this year. So out of that part will be in a specialized sector like we are also going for cyber security I T sector risk management forex officer. So specialized hiring will also Happen. And generally sharing will also happen.
Unidentified Participant
So you highlighted in your opening remark that you will be opening 119 branches in the 119th year. Very good luck for that. This branches are likely to be more of metro tier 2 cities or interiors.
Binod Kumar
See in few of the sectors. My presence is not much like in Mumbai, Gujarat, even Rajasthan. Some sectors they are. If you take Mumbai, Gujarat they are contributing around the almost 35% to GDP. Our presence is only 7%. So in these sectors we’ll open the branches wherever potential is There will not be will. It will not be a specific to any metro or urban area. But. But in this sector we will be opening branches.
Unidentified Participant
This will be along with your mid corporate, large corporate or it will be all specific branches. More of retail.
Binod Kumar
No, it will be general branches.
Unidentified Participant
Thank you and good luck for the year. And best wishes to Internet management.
Unidentified Speaker
Yeah. Thank you. Thank you Sushilji. We will take that as a last question. With this we come to the end of Indian Bank’s post results conference question call for first quarter FY26. I now request the management to give their closing remarks.
Binod Kumar
We have already discussed everything but two. Three things. Asset quality. I mean we are on very right track of the asset quality. Gross NPA. We have given guidance of less than 3. But maybe we will do better than that slippage. Also we will be able to maintain at healthy number and growth. Also we will be around whatever guidance we have given. Our endeavor will be too on the upper band of our guidance. And profit also we will see steady profit. Because I don’t believe in one quarter going showing very good numbers and then second quarter going down.
So we our endeavor will be to provide STD growth or STD decline. You know wherever it has decline is there like gross npa, net npa, STD decline. We will ensure. Thank you Anandji.
Unidentified Speaker
Thank you sir. We thank the management and we thank all the participants. Have a happy evening. Have a good day. Bye bye. Thank you.
Unidentified Speaker
Thank you. Thank you.