Punjab National Bank (NSE: PNB) Q2 2025 Earnings Call dated Oct. 28, 2024
Corporate Participants:
Mahrukh Adajania — Moderator
Deepak Singh — Deputy General Manager
Atul Kumar Goel — Managing Director and Chief Executive Officer
Analysts:
Nitin Agarwal — Analyst
Piran Engineer — Analyst
Unidentified Participant
Rakesh Kumar — Analyst
Ashok Ajmera — Analyst
Suraj Das — Analyst
Kunal Shah — Analyst
Jay Mundra — Analyst
Anand Dama — Analyst
Ashlesh Sonje — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Punjab National Bank Q2 FY 2024 Earnings Conference Call, hosted by Nuvama Wealth. [Operator Instructions]
I now hand the conference over to Ms. Mahrukh Adajania from Nuvama Wealth. Thank you, and over to you, ma’am.
Mahrukh Adajania — Moderator
Hello, everyone and welcome to this earnings call of PNB — Punjab National Bank. We have with us the entire team of PNB, headed by Mr. Atul Kumar Goel, Managing Director and CEO; Mr. Kalyan Kumar, ED; Mr. Binod Kumar, ED; Mr. Paramasivam, ED and Mr. Bibhu Prasad Mahapatra, ED. With this brief introduction, I’ll hand over the floor to the PNB team. Mr. Deepak Singh will read out the disclaimer, after which Mr. Goel will address the conference. Thank you and welcome again.
Deepak Singh — Deputy General Manager
Ladies and gentlemen, good day to all. Disclaimer statement, I would like to submit that the statement given herein are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statement necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial result in future periods to differ materially from any projections of future performance or result placed or implied by such forward-looking statements. Investors are therefore requested to check the information independently before making any investments or other decisions. Thank you. Over to MD and CEO.
Atul Kumar Goel — Managing Director and Chief Executive Officer
Thank you very much, Deepak. Very good afternoon to everybody. I welcome all the team from the analyst for this earnings call, as well as the quarterly result for the September 2024, as well as the half year result of the Punjab National Bank. As far as the gross business is concerned, gross business of the bank increased by 11.9% Y-o-Y and stood at INR25.20 trillion. The combination of the gross business, gross deposit increased by 11.3% and it stood at INR14.58 trillion. The gross deposit growth in the advances 12.8% Y-o-Y and is an increase from INR9.41 trillion of the September 2023 to INR10.61 trillion. CP ratio is also very comfortable of the bank, it is 72.81%. As far as CD [Phonetic] bank and CASA and the current account is concerned, CD bank also there is a Y-o-Y growth of the 3.7% and it increased to INR4.88 trillion, similarly the current account.
There is also a positive growth of 1.6% Y-o-Y. It was 67,038 and increased to 68,104. CASA of the bank was INR5.38 trillion in September 2023, which has improved to INR5.56 trillion, with a growth rate of 3.4%. As far as the RAM is concerned, the ratio of the RAM to the total advance, which was 55.63% in September 2023 and it was 55.46% in the June 2024 has further improved to 55.77%. As I told you earlier in the last call also, our endeavor is to increase this ratio to 58% by the end of March 2025 and within the range of the 60 to 61 in the three to four, year horizon.
As far as profitability of the bank is concerned, net interest income which is — which used to be around INR9,923 in the September 2023 quarter has improved to INR10,517 crore with a growth rate of this 6%. As far as operating property is concerned, it used to be INR6,216 crore in September 2023 quarter has increased to INR6,853 with a growth rate of more than 10%. Net profit, which was INR1,756 crores in September 2023 has improved to INR4,303 with a growth rate of 145%. And if even you compare quarter-to-quarter, quarter-to-quarter, June 2024, it was IINR3,252 crore and there is a growth of around 32%. And I think this is the best number we are presenting in the last 14 quarter. This three number net interest income of INR10,517 and the operating profit INR6,853 and the net profit INR4,303 is the highest in the four to five year in the history of the Punjab National Bank.
As far as asset quality is concerned, there is a very significant improvement in the gross NPA as well as the net intake, gross NPA, which was INR65,563 has reduced September 2023 has reduced to INR47,582 crore. And the — in terms of the percentage, it was 6.96% in September 2023, 4.98%, it was in June 2024 has reduced to 4.48% in the September 2024, around 50 basis point reduction from the June quarter. Net NPA, which used to be INR13,114 crore in September 2023 has reduced to INR4,674 in terms of the percentage. The net NPA was 1.47% in September 2023 and 0.60% in June and it has further improved to 0.46%.
As far as this guidance for the gross NPA, net NPA is concerned, at the beginning of the year, we have given the guidance key, our gross NPA will be around 5% by the end of the March 2025. But since in the June 2024 itself, we have reached to 4.98%. So we have revised our guidelines, see our gross NPA will be around 4% by the end of the March 2025. Since we have now 4.48% and if you see every quarter, every quarter there is a reduction of the 50 basis point. So we are further revising our guidance key. Our gross NPA should be in the range of this 3.5% to 3.75% — 3.5% to 3.75% by the March 2024.
As far as net NPA, that is very reasonable number. So there is no guidance 0.5% we have given that we will maintain. As far as credit cost is concerned, credit cost of the — this — it was 1.31% in September 2023 quarter and 0.32% in the June 2024 quarter and 0.08%, it has reduced to 0.08%. So as far as guidance of the cash cost is concerned. At the beginning, we have given the guidance, the credit cost will be around 1% for the current financial year considering it was 1.40% in 2023-2024 and 2.03% in the 2022-2023. But since then we have already reached to 0.32% in June, so we have revised our guidance for the credit cost from 1% to 0.5%.
And if you see this average, average cost of the credit cost is coming for the half year is 0.20%. So we are further revising our credit cost guidance. It will be around 0.25% to 30% by the end of the — for full-year for the March 2024-2025, the reason behind that because if you see the recovery is more than the double. And we have already improved our PCR to 97%. So there is a very hardly little requirement for the aging provision, which is coming around 250 every quarter. And as I told you, the recovery is double, so provision will be much more released as compared to the delinquency which we have seen in the last four, five quarters. So the delinquency has also reduced.
I will give one more number as far as delinquency may what is the — how the new underwriting is behaving, which I used to give every quarter. This is the number for the 51 month, four years, three months. It is from 1st of the July 2020, see how the new underwriting is behaving. From the 1st July 2022 September 30, 2024, we have sanctioned INR9 trillion loan. Out of which INR9 trillion, INR8.19 trillion we have disbursed. The outstanding is new loan is INR6.31 trillion, which is more than 50% of my total loan book. Out of this outstanding INR6.31 trillion, the NPA is hardly 2,374, which is coming, 0.29% for the new underwriting.
I will give further break-up of this segment wise. Agri, it is 0.45%, MSME it is 1.44% and retail it is 0.28% and corporate it is basically negligible, this is the reason. So we are further revising our credit cost. Even I am seeing there will be a scenario where the negative credit cost will be there because as I told you, 97% PCR. Recovery is more than double of the this delinquency. Delinquency has also reduced. Delinquency, we are giving the guidance for the slippage 1% that we will maintain.
As far as capital is concerned, the total capital of the bank is 16.36% as against 15.79% in the June 2024 quarter and 15.09% is number ’23. First time — first time in the history of the Punjab National Bank, we have crossed the capital adequacy more than 16% in the last five, 10 years, which is number I’m having. It used to be around 15% to 16%, but we have not crossed 16%. So, first time we have crossed 16% and contribution of this 16% is the QIP, which we have raised the current last quarter — September quarter, INR5,000 crore. And again we have received the bid of around INR41,000 crores, which was more than eight times subscribed, around 65 basis point was the impact of the new capital raise.
As far as the CET1 is concerned, it is 11.59% as against the 10.95% in June 2024 quarter and 10.23% in the September 2023. As far as plan for the capital is concerned, we were having the approval of the Board worth INR7,000 crore QIP, which we have reduced INR5,000 and we have already raised. We are — in hand INR7,000 crores for the ET 1 and INR3,000 crore for the Tier 2. Although as on-date, there is no requirement for the capital to be raised in the subsequent quarter, but we will see. If rate will be of our choice, so we will not mind to rate part of the ET 1 in the current quarter, current quarter means this December quarter.
As far as cost of deposit is concerned, it was 5.08% in June 2024 and it has further increased 5.16% because you all are aware because the deposit on the one-year deposit or the other deposit has increased substantially in the last quarter. The one-year deposit is not available as on-date even between the 7.732% [Phonetic] to 7.80%. As far as NIM is concerned, we have given the guidance for the 2.9% to 3% and we have given guidance key, absolute number, our NII will be positive. And if you see the last 12 quarter, every quarter NII in absolute number is more than the earlier quarter. So although we have — as of date, 2.92% is my global NIM and 3.06% is the domestic NIM guide. We will remain on the same guidance 2.9% to 3%. Yield of advances was 8.43% in the June quarter. So similar on the same line, it is 8.42% and it used to be around 8.23% in the September 2023 quarter.
As far as cost-to-income ratio is concerned, it was 52% in September 2023 and 53.28% in September — June 2024 and it has increased to 54.58% in the September 2024 quarter. The reason of the increase in the cost-to-income ratio is on account of the AS 15 provision. Last quarter we had made a AS 15 provision for INR742 crore, but this quarter, September quarter, we had made a provision of INR2,057 crore, it means additional around INR1,300 crore, we were required to make more provision for AS 15. Reason behind it because the GSec in the June 2024 was 7.01% and it was — closed at 6.75%
In the September 2024. So there was a reduction of around 26 basis point in the GSec. So on account of the reduction in the GSec, so we — as per the actual calculation, we have to provide 1,300 additional. This was the reason of the improvement in the cost-to-income ratio, in case in the cost-to-income ratio. So maybe if you see the — as on-date, the further the there is a increase in the rate of in terms of 10-year, which is hovering around 6.85%. So maybe current quarter December for them this requirement will further reduce.
As far as advances increase, we have — increase in the advance is concerned, we had given the guidance around 11% to 12% and we have probably 12.8%. So retail there was a growth of 14.62%. Agri, there was a growth of 11.07%, MSME, there was a growth 8.9%. Reason behind it because some of the MSME account which was classified under MSME on account of the increase of the turnover or investment limit, they have come out from the purview of the MSME. So otherwise, if we will add that account, particular account, so it is coming more than in double digit. RAM it is 12.02%, home, there is a good growth 19%, as well as [Indecipherable] it is at 25%.
As far as movement of NPA is concerned, the opening balance of the gross NPA was INR51,263 crore and INR2,181 crore was the addition. The — I will give the break-up of this price addition, slippage was — agri INR565 crore, MSME INR621 crore, retail INR415 crore and the other main corporate INR47 crore. And the cash recovery was INR1,508 crore and the upgradation was INR1,407 crore, so making the total of the total upgradaton and the cash recovery was INR2,915 and write-off was INR2,946 crore, closing figure was INR5,862 crore, sorry, INR47,582 crore.
So total recovery, including that recovery in the technical written-off and recovery which we have booked in the de-organized interest, so it was INR4,891 crore, which was INR3,249 crore in the previous quarter. So if you see the recovery was INR4,891 crore and slippage was in this quarter, INR2,180 crore, so it was more than 2x and the target for the entire is INR18,000 crore. If you add the June and the December recovery, it is coming around INR8,000. We are confident because some of the account NCLT is about to visual in the current quarter or the last three in the last quarter. So INR18,000 crore we will definitely — we will achieve. As far as SMA more than INR5 crores is concerned, that is hardly INR2,125 crore.
So, as far as — because normally used to ask how much is it on the cash on the MCLR. So MCLR may around 34% on the MCLR, repo around external benchmark of 41% and PSB around 8.39% and fees is around 10%. As far as rent, as I told you already 55.77% and our — anywhere to increase to 60% in times to come, two to three year as well. One important, the total unsecured loan book. Total unsecured loan book of the bank is INR3,27,176 crores, out of which unsecured retail loan, which is the normally the worry of the investors also is hardly INR27,966 crore. The breakup of the INR27,966 crore, credit card around from INR1,000 crores, education loan INR4,333 crore and pension loan INR4,513 crore, pension loan — we are receiving the pension, there is no worry in that.
The personal loan amount is INR18,119 crore, out of this personal loan. The digital PAPL INR4,239 crore and non-digital is INR13,880 crore. So normally the percentage in this personal loan used to be around 2% and 2.10% because — and that already been factored at the time of pricing this product and we have also making this — at the time of the initial making the — what should be the pricing, we have also taken the 2% will be the NPA in this product also. As far as NCLT recovery or the NARCL is concerned, NCLT may around 831 account we have applied for INR1.03 trillion, out of which 797 account of the INR1.01 trillion has already been admitted. 30 account of INR1,835 crore is to be admitted, out of which 275 account has already been resolved of INR47,444 crore and 304 account and already liquidated INR35,120 crore, 218 account pending at the various state with the amount involved is in INR19,351 crore.
As far as asset transfer to the NARCL is concerned, we have transferred 14 account of INR3,778 crore. Against this, we have received cash plus record [Phonetic] INR987 crore, 13 account is under discussion of INR2,370 crore, out of this 13 account, in nine account the — of outstanding INR1,691 crore, [Indecipherable] has submitted already their bid which is under evaluation.
So this is my initial remarks about the performance of the bank. And once again, I think this is the best result we have shown in the last three to four years. And now the — I’m open for any question clarification, if you require, I will try to give the answer. Thank you. Thank you very much.
Questions and Answers:
Operator
Thank you very much, sir. [Operator Instructions] Our first question is from the line of Nitin Agarwal from Motilal Oswal. Please go ahead.
Nitin Agarwal
Hello. Yeah, hi. Good evening, sir. Congrats on a very strong quarter.
Atul Kumar Goel
Thank you, Nitin. Thank you very much, yeah.
Nitin Agarwal
And also achieving the milestone of 1% ROA well-ahead of the guidance.
Atul Kumar Goel
Deliberately, I’m not touching my initial remarks because I want to hear from you, so it maybe one more thing I can tell you also because we have given the guidance for the 0.8% for the entire year and we have given the guidance key, it will be 1% at the exit of the current financial year. Since we have already achieved more than 1%, the half year it is around 0.92%. So we are revising our guidelines. It will be around 0.9% to 1% for whole of the year from the 8% earlier guidance.
Nitin Agarwal
Okay, sir noted. And sir, my first question is on the like contingent provisions. This quarter we have made a small amount, but now that you are indicating that the credit cost, we have already reduced the guidance second time on credit cost now and there is a possibility it may be negative also as you mentioned. So will we look to make contingent provisions and prepare our self for IndAS transition as and when it starts? So what is the thought on that line?
Atul Kumar Goel
Nitin, therefore already we have made a provision of INR354 as a floating provision for the NPA. And you are worried about the initial etc, so 97% already we are having the PCR. What is the ECL provision? ECL provision is how is your new underwriting behaving. I have already given the 51-month data of the new underwriting, INR9 trillion we have sanctioned, INR8.19 trillion we have disbursed, INR6.31 trillion is the outstanding, which is around 60% of my total loan book. And out of this INR2,374, even if you see the OTR, OTR 1 and OTR 2, INR170 crore provision we have made additional as against the requirement of the 5% and 10% RBI, we are making 12.5%. So I think there is no need for the further provision also already INR500, INR350 we have made a provision for the provision in this quarter and total is the INR500 crore.
Nitin Agarwal
Right, right, sir. But will this be enough, like when you look at the total ECL provisions, whenever it kicks-in, will this much be enough?
Atul Kumar Goel
It will not be actually where that is enough because we have not calculated. I told you the, actually we should wait for the final guidance, so because there is a different method is being used by the different banks. So moment we will get the guidance, so this I can tell, PNB will not be the outliner. Earlier there was a worry because we were having the highest NPA, highest gross NPA. And so everybody was worried the ECL provision made the PNB will be the out. So as and [Indecipherable].
Nitin Agarwal
Okay. Okay. Okay. Sure, sir. And second question is on the credit deposit ratio. If I look like PNB has a very good room to expand on that, it is very well positioned to pursue credit growth, but credit deposit ratio over last one year has been in a very narrow range. So why are we not using this lever to expand margins? Because margins is one area wherein we are seeing some softness and which is like similar to the other banks also. So what is your thought on that like on a credit deposit?
Atul Kumar Goel
Nitin, margin may — margin may I told [Foreign Speech] if you see, we have given the guidance 2.9% to 3% because ultimately depends which type of underwriting you are doing, we can increase the margin. We can increase the margin, but there is a risk of the slippage also. And moreover, you see what is our AAA, AA, etc also. So this is the reason because there is some transaction because PNB is one of the largest bank. There is some transaction where I’m getting only 1%, 2%. If I have to maintain 3% or more than 3%, you may be happy, so it means I should not do such type of the transaction. This is the reason I’m telling again and again, key ratio may be misleading. We will not give the guidance on 3% to 9% to 2.9% to 3%. But in absolute number, in absolute number, if you see the NII every quarter is increasing. I’m not blaming the bank, one of the big bank. The number of this current quarter, 400 negativity NII number. This is the reason key, we are not going to change the margin we are seeing, but we are seeing where we can get the more margin also we are doing that one also. But if there is some accountable, we are not in a position to make more margin also. But in terms of the percentage, NIM will be retail, but ultimately it will add to my absolute number.
Nitin Agarwal
Okay, sir. Got it. And the last question is on the opex, wherein Q-on-Q we have seen a sharp rise in the employee provisions. So what has driven this and how should we like factor in for the coming quarters on that?
Atul Kumar Goel
Actually, it is a function of the rate of interest. As I explained in my initial remarks also, the 7.01% was the primary GSec, which have reduced to 6.75%. So there was a reduction of around 26 basis point. Last quarter, we have made 742, this year on account of the 26 basis point, so increased 2,057. So I do not foresee because if you see as on-date also, it is opening around 6.85%. So definitely it will remain in the same, so primarily there is chance for the next quarter.
Nitin Agarwal
Okay, sir. Got it. Thank you and wish you all the best.
Atul Kumar Goel
Thank you, Nitin. Thank you.
Operator
Thank you. Our next question is from the line of Piran Engineer from CLSA. Please go ahead.
Piran Engineer
Yeah. Hello, sir. Congrats on the quarter and the successful turnaround of Punjab National Bank. Firstly, sir, what is LCR, our liquidity coverage ratio? And is there scope to further reduce liquidity on balance sheet?
Atul Kumar Goel
See, as far as the liquidity of the coverage ratio is concerned, it was around 129%. On account of this revised guidelines also, dark guidelines, so around there is a difference of around 10 basis point. So the requirement of the 100%, so we will be in a position easily maintain more than that also. So we — although the impact will be there on above the guide, if it is really implemented, so around 10% to 11%, there will be a dip.
Piran Engineer
And what is the level we are comfortable with?
Atul Kumar Goel
Actually, we are comfortable, it should be around because 100% is the requirement, 115% between 115% to 120%, but minimum 115% we’d like to have.
Piran Engineer
Okay. Okay. Sir, and on your slide 18 in the PPT, there is a CG recap bond, INR55,000 crore, sir what is that?
Atul Kumar Goel
That is the government has inducted the capital, that is that because they have inducted the capital, then we have subscribed the bond also.
Piran Engineer
Sorry, sir, can you please repeat?
Atul Kumar Goel
Whatever the government has infused the capital, suppose they have infused INR55,000 crore as a capital. So by that, that has been increased the capital ratio. INR55,000 crore same amount we have subscribed to government bond also.
Piran Engineer
Okay. So you bought government bonds and then the government infused capital?
Atul Kumar Goel
Right, very much right. Right.
Piran Engineer
Okay, okay, [Foreign Speech]. And sir, [Foreign Speech] our credit cost guidance for the year, is it 0.5% or 0.25%?
Atul Kumar Goel
Actually beginning it was 1%, then June it was 0.5%. As on-date for the half year, it is coming around 0.2%. So we are giving the guidance, it should be around 0.25 to 30 — 0.30 basis point.
Piran Engineer
Understood. Understood. Okay, sir. That was it from my end. Thank you and wish you all the best.
Atul Kumar Goel
Thank you. Thank you.
Operator
Thank you. Our next question is from the line of Gawshi Zwan [Phonetic] from Seanfield. Please go ahead.
Unidentified Participant
Hey, sir, congratulation on a good quarter. Just two housekeeping question. First of all, on the margins. Do we have an impact from reclassification of P&L interest into P&L fee incomes that impact some of our peers?
Atul Kumar Goel
That is definitely there because some of the amount which we were using as a panel interest, that is not coming under the interest calculation, now that is coming under the other income also.
Unidentified Participant
And you mentioned, what was the rough quantum of that?
Atul Kumar Goel
Can you repeat your question?
Unidentified Participant
Do you mind sharing what’s the impact on margins this quarter because of the CASA…
Atul Kumar Goel
Impact will be, impact will be only one, two basis point, nothing more.
Unidentified Participant
Got it. And on gross slippages…
Atul Kumar Goel
Yeah.
Unidentified Participant
There’s a slight pick-up on a sequential basis, obviously from a very low-level, but just wondering what’s driving that? And does that include some of the big corporates that we hear in the news.
Atul Kumar Goel
You are right. Actually, if you see, we have given the guidance for the 1%. Even as on date, it is less than 1% also. So it was INR2,181 crore, there was one account. One account which I think you are at time to ask, there was around INR425 crore, otherwise second highest retail was around INR35 crores only.
Unidentified Participant
Got it. So INR430 crores from that was account.
Atul Kumar Goel
Yeah.
Unidentified Participant
Okay. Thank you so much.
Atul Kumar Goel
Thank you.
Operator
Thank you. Our next question is from the line of Rakesh Kumar from B&K Securities. Please go ahead.
Rakesh Kumar
Yeah, hi, sir.
Atul Kumar Goel
Hi, Rakesh.
Rakesh Kumar
Good set of numbers. Very good performance, especially on the recovery front, sir. Sir, just on the personal loan, you had given some data point in your opening remark. What is the gross slippage that we have sir, posted on this personal loan in this quarter, sir?
Atul Kumar Goel
Personal loan INR18,119 crore is the total book.
Rakesh Kumar
Okay.
Atul Kumar Goel
Apart from the pension, that is also in the personal loan, that is INR4,513 crores may, there is no issue because pension is coming. Out of this INR18,000 crore, INR18,000 crore, it is around 2%.
Rakesh Kumar
Gross NPA?
Atul Kumar Goel
Yeah, gross NPA, yeah.
Rakesh Kumar
And sir, slippage in this quarter, sir?
Atul Kumar Goel
It is on the same line. It is — it doesn’t mean, there was a much difference in the last quarter in this quarter also. It remain in the same range.
Rakesh Kumar
Got it. And sir, margin movement is very like very peculiar this quarter. So if you look at the slide number 23, we have yield on advances from June quarter to September quarter almost at 8.42% and cost of fund has slightly gone up by around 8 bps this quarter, but the funding cost number — cost of fund number is flat and yield on fund number is like coming down. So it — but yield on investment is flat, so what is driving lower yield on funds though the yield loan advances number is flat, yield loan investment number is flat. So why yield loan fund is coming down, sir from 7.23%…
Atul Kumar Goel
That is on account of the — some of the overseas loan book also.
Rakesh Kumar
But this will get — okay, so — but this slide does not include — so I am looking at the global number, the global number is 8.42% as compared to 8.43% and yield on investment is 7.06%. So yield on fund is coming down from 7.23% to 7.13%. So why is that?
Atul Kumar Goel
7.0, yield on fund is coming from 7.0…
Rakesh Kumar
7.23% to 7.13%, 10 bps fall is there in the yield on funds. So why was that, sir?
Atul Kumar Goel
You have to see the — you have to see the composition, okay, please write on and tell what is the composition of the advances, what is the composition of the investment because if you see the outstanding of the investment has increased in this quarter. This is the reason it is coming down.
Rakesh Kumar
Okay, sir, we will take that offline, sir. Sir, there is a rise in the gross…
Atul Kumar Goel
There is no need for the offline, I’m trying to — please understand, what I’m telling you, what was the advanced growth in the advanced book? What is the growth in the investment book? Growth in the investment book is much more as compared to the investment — advanced book. This is the reason this is coming down.
Rakesh Kumar
Correct, sir, I was also coming to that non-SLR growth is very high, especially in the others category.
Atul Kumar Goel
Yeah, yeah.
Rakesh Kumar
So what is that, sir? Others in…
Atul Kumar Goel
That is investment in the CD [Technical Issues] because sometimes we were having the extra liquidity also, so we have passed that on in CD of the banks.
Rakesh Kumar
Okay. Okay. Okay. And sir, fee income, drop-in the fee income, especially in the processing fee in this quarter, sir.
Atul Kumar Goel
[Speech Overlap] processing we used to charge in the first quarter only for the entire year. This is the only reason.
Rakesh Kumar
Okay. Okay. Got it, sir. Got it, sir. Very good, sir. Thanks. Thanks so much, sir. Thanks for taking my questions, sir.
Operator
Thank you. Our next question is from the line of Ashok Ajmera from Ajcon Global. Please go ahead.
Ashok Ajmera
Good evening and compliments to you, Atul sir and the entire team of PNB for the fantastic result. In fact, you are improving all the — your performance on all the parameters quarter-after-quarter. I think in last, if you see 10, 12, 15 quarters, continuously there is improvement. And now, I mean, we can say that the Punjab National Bank has over — has overcome all the previous negative legacies and everything and it’s on the — it’s firing on all the cylinder. So compliment for the same, sir.
Atul Kumar Goel
Thank you. Thank you very much.
Ashok Ajmera
Having said this, sir, I’ve got a — just a couple of few questions and some observations. And sir, on the profitability front, if you look at the — basically from the non-interest income point of view, there is a major improvement in the — right from the recovery in the return of account to handsome treasury income in this quarter, if you compare with the last quarter of INR1,581 crore as compared to INR648 crore, that is sale of — I mean, good profit on sale of investments, good profit on the revaluation of the asset. So my question is that going forward, do we expect in the remaining two quarters of the current financial year the same performance of the treasury, so as to assess the correct profitability of the bank for the whole FY 2025? That is the first question, sir.
Atul Kumar Goel
Yeah, definitely, Ashok ji, definitely because as on date also, if you see my total, the TWO book, it is INR92,584 crore. It is the gold mine for the Punjab National Bank. So whatever the recovery in the technical retail work we have made in the last quarter, the same or even the more also we can expect in the current quarter, as well as in the last quarter of the current financial year. And treasury income is also — treasury income is also and we will be in a position because my CSV [Phonetic] is very active, not only the SLR or non-SLR, even we are making a good profit in the equity funding also.
Ashok Ajmera
Yeah. So that’s basically in treasury front. Even in the trading book also, I think there seems to be a good profit on that.
Atul Kumar Goel
Yeah.
Ashok Ajmera
Sir, a data point, just a calculation of tax. So tax, if you look at this current half year, I think on the — on the profit of INR11,834 crore, our provision is INR4,276 crores. It’s almost about 36% again on the tax front. And we have not discussed this for a couple of quarter on the tax front, DTA and other thing. So can we — can the treasury…
Atul Kumar Goel
I’ve understood your question. So, we — actually, we have not shifted to the new regime. This is the reason because earlier also we have explained in the last con call also because we are in the old regime, this is the region, this is 36% because we are having some of the credit which is available and if we will shift to the new regime, then we have to forego. This is the reason, it is a matter of time. Moment we will shift to the new regime, definitely there will be around 10 basis-point increase in the ROA only from this entry.
Ashok Ajmera
How much is the total carryforward and benefit and the [Speech Overlap].
Atul Kumar Goel
More on the carry-forward, there is some other benefit also met etc. So it is not only one at and there is so many other thing also. If we stick with the news, so we have to forward it. This is the reason. It is a matter of time only. The moment we will be in a position to absorb all our already benefit, then we will go to this new regime. So we have discussed this matter with our consultant. So we advised, I mean immediately there is no need to shift from the old to the new.
Ashok Ajmera
Yes, point well taken. Sir, on the employee benefit front, you have talked about AS 15 and because of that there is a increase in the overall employee cost. But sir, similar in this quarter, we have not seen in the couple of other banks which have come out with their result, this kind of major impact because of AS 15 in this quarter. So was there something different in our banks on that even in Bank of Baroda, there was hardly any difference, the overall employees cost in the — this quarter. So going forward, what…
Atul Kumar Goel
I have understood, so the — yeah, actually I have explained you what is the reason. 7.0, you are also a chartered accountant, 7.01% to 6.75%. If there is a dip of 26 basis point, so AS 15 is definitely bound to increase also. So we are making on the quarterly basis. I don’t know about the other bank also, but I am telling you see on account of the decrease in the 0.60, this is the reason every quarter, so there is a fluctuation in this. Last quarter it was 7.42%, even in the September 2023, it was 5.80%. So every quarter we are making, I don’t know whether the other bank are making on the quarterly basis or the yearly basis also. This may be the reason. But every quarter we are giving the — these changes.
Ashok Ajmera
Sir, one last question in this round is on NCLT. I mean NARCL and the — you had — you had given some data point, I think 14 accounts, INR3,771 crore. And you said that the cash recovery is INR987 crore, isn’t it?
Atul Kumar Goel
No, no, INR987 crore is the — I told you total recovery, cash pillar SR, 15% of the INR987 crore is the cash recovery.
Ashok Ajmera
Out of 9 — so balance is the guaranteed SR achieved?
Atul Kumar Goel
Yeah, yeah.
Ashok Ajmera
Guaranteed SR…
Atul Kumar Goel
Guaranteed by the government, guaranteed by the government.
Ashok Ajmera
Yeah, which must-have been 100% provided for?
Atul Kumar Goel
Definitely because as on date, there is no different treatment given by the regulator for the sale to the NARCL or the RC, although there is a demand. But because the — once we are transferring the asset to the NARCL, that is 100% provided. This is the reason carrying cost of the SRAC [Phonetic] zero.
Ashok Ajmera
Yeah, yeah, yeah. No, but it goes in the benefit. Ultimately we can assess that this amount in any case is going to come when it is guaranteed and is strengthened your book basically. Sir, just if you permit me one more this thing, sir, we have done exceedingly well on the credit front as compared to many of the other peer banks in this quarter also and overall half year also if you see. So sir, going forward, if you maintain the same tempo, are you revising your credit growth target also for FY 2025, just like other targets which you improved even on the credit growth front also?
Atul Kumar Goel
11% to 12% we have given, 11% to — between 11% to 12%. And if you see, it is 12.80%. So I can safely say ji, we will be in a position to achieve 12%. But if opportunity will be available, so only — opportunity will be available, we will not allow opportunity to put let down from the Punjab National Bank because there should be demand also, because corporate may very honest there is no much demand in this market even as on date also, I am having the sanction limit of the one ticket, which they are not utilizing.
Ashok Ajmera
But you have done very well in MSME front also, I think where in your — this book MSME and retail, you have performed very well. So — and corporate business also will come. So we can hope that this current six month, now next six month will be better than what you have even achieved in the first half year. Thank you very much, sir and all the very best. And I will come back again if time permit for some more chat. Thank you.
Atul Kumar Goel
Thank you. Thank you.
Operator
Thank you. Our next question is from the line of Marshal, who is an Individual Investor. Please go ahead.
Unidentified Participant
Yeah. Hello? Yeah. My first question is regarding this employee cost. Mr. Ajmera asked, but like but the voice of Mr. Goel was not very clear. So I just want to ask you this better, the employee cost has gone up by INR1,205 crore in this quarter. So is it because of some one-time provision or this kind of number is going to continue in the second quarter also?
Atul Kumar Goel
No, no, no, no, I may explain also. It is a AS 15 provision. It is not a actual outgo. Let me clarify, it is not a actual outgo. It is a provision we have to make based on the actual calculation. The reason behind that for this increase, if you see the 10 year GSec, in June, it was 7.01% and this September 2024, this again reduced to 6.75%. On account of this 26 basis-point decline in the interest rate, this additional provision has come. So it will not be like even the — if interest rate will become harder in the times to come out. So it may be reversal also. So it is not a one-time because if you see the last quarter, it is only INR742 crore.
Unidentified Participant
No, sir, I am asking regarding employee cost. Employee cost has gone up by INR205 crores.
Atul Kumar Goel
[Foreign Speech] employee cost has not gone, you see employee cost, it is added. Employee cost may — it is not — it is already added in the employee cost.
Unidentified Participant
No, no, sir, like [Foreign Speech], why it has increased because like the incremental settlement was already accounted for in the March quarter itself. So why it has gone up so drastically this quarter, employee cost?
Atul Kumar Goel
This is — let me try you once again, the AS 15 provision was INR2,057 for this quarter and the June quarter, it was INR742 crore. If you will make the difference, it’s INR1,300 crore is the AS 15 provision only. If you see the actual payment of the employee cost, it is on the same line, it is equal. I can give you the number also. The payment of the employees I will give you. This is INR3,692 crore for this INR3,692 crore for this quarter and it was INR3,808 in the earlier quarter. So there is a reduction of INR204 crore.
Unidentified Participant
[Foreign Speech] whatever provision we are doing, is it over or this provision will still continue? That’s my question.
Atul Kumar Goel
It is a — it depends on the every quarter, maybe if rate of interest because as of date, rate of interest is 7.0 — 6.85%. So there will be reduction reduced requirement in the current quarter.
Unidentified Participant
No, no, I’m just like — so it means this kind of provision is going to continue for some more quarters or only one, two quarters this will continue?
Atul Kumar Goel
No, no, no, it will remain. It is a — it is not — whatever the provision we have made, it is a total provision, it is a cumulative figure. Please try to understand, this provision we have made for this quarter, INR2,057 crore. If we will have INR2,057, so it has already been added. So cumulative will remain same. If there is a change of the interest rate in the coming quarter, that cumulative total provision will change.
Unidentified Participant
Only incremental will change, only incremental will change.
Atul Kumar Goel
Very much right, very much — now you understood, yeah.
Unidentified Participant
So it means cumulative till this quarter we have — we have finished all the provision and whatever plus minus can happen only that will happen?
Atul Kumar Goel
[Foreign Speech] very much right. Now you understood, yeah.
Unidentified Participant
Sir, my second question regarding this other income, which has gone up by INR1,049 crore. So how much is the recovery in this part, INR987 crore?
Atul Kumar Goel
Recovery is — in this particular quarter INR1,369 crore.
Unidentified Participant
So like less capital account is already considered there or it will come in this quarter next quarter?
Atul Kumar Goel
Any — it has already been taken in the September quarter, INR1,669 crore, already there it is part of the other income.
Unidentified Participant
Okay, sir. Sir, here my question that like this other income, this kind of recovery, like it is very good recovery you have made in this quarter. So whether — whether this temperament or this tempo will continue in the December and the March quarter also or like all like this will subside?
Atul Kumar Goel
Definitely because I am having the TWO book of INR92,584 crore. It is the gold mine of the Punjab National Bank. And this if you see the INR1,630 crore was in the March quarter also and INR1,369 crore in the December quarter, June quarter it was INR859 crore. Sir, normally it will remain in the range of the INR1,000 crore to INR1,500 crore, easily every quarter we are making it.
Unidentified Participant
Sir, where can I see this figure of INR94,000 crore because in the deck, in the PPT in the slide 34, I can see only INR54,472 crores.
Atul Kumar Goel
That is not in the PPT, I’m telling you, total NPA — TWO book is the INR92,584 crore is TWO and INR47,582 crore is the gross NPA. If you will add both, so my total recovery — recoverable book is INR1,40,166 crore.
Unidentified Participant
Beautiful, sir. Sir, my last question that is this provision has this provision [Speech Overlap]
Operator
Sir, can you get back to the question queue for any follow-up questions. Our next question…
Atul Kumar Goel
Rakesh, please allow, Rakesh. Rakesh, no issue, please. Mahrukh please allow. No issue.
Mahrukh Adajania
Yeah.
Atul Kumar Goel
Yeah. Please, your last question is regarding credit cost, please. Please go ahead.
Operator
Sir, his line got disconnected. We can move on to the next question and then once he [Indecipherable] one again, we can let him answer.
Atul Kumar Goel
Yeah, please, please.
Operator
So our next question is from the line of Suraj Das from Sundaram AMC. Please go ahead.
Suraj Das
Yeah. Hi, am I audible?
Operator
Yes, sir.
Atul Kumar Goel
Yeah, yeah, please, please. Please, Suraj, yeah.
Suraj Das
Hi, sir. Congratulation on a good set of numbers. Sir, two question. One, the floating provision that you were doing, where does it reside? Is it on the standard you know provision line item, which is INR83 crores this quarter? Is it included?
Atul Kumar Goel
No, no, no, it is NPA provision, INR350 crore we have made for this quarter and commodity provision is the INR500 crore, it is part of the NPA provision, it is part of the credit cost.
Suraj Das
Okay. So it is part of this INR199 crore number that you have?
Atul Kumar Goel
Yeah, yeah, yeah otherwise, if we would not had made a 300 provision, the credit cost would have been negative credit cost, yeah.
Suraj Das
Understood, sir. And sir, on this the below-line item standard asset provision, INR83 crores, it seems like, I mean, since we have also restructured book which is coming down, there is the incremental provision requirement is very less on the standard assets. So how long this can continue, sir? I mean what kind of headroom still you have in terms of…
Atul Kumar Goel
It depends on the June 2019 circular. Some of the account which they have come out from this category also. So there was some reversal also. There was some additional provision for the other account. It depends on the key — if the exposure of that particular account is much more for a particular limit. But since our — since our SMA more than INR5 crore is very less, INR2,125 crore. So I do not foresee any issue which will be requiring us to make more provision for the standard and because it depends on the banking industry, not only the Punjab National Bank. If some — some individual is having the exposure more than INR200 crore, then only we have to make this provision what is June 2019, yeah, INR1,500 crore — INR2,500, yeah, not more than that.
Suraj Das
INR1500 crore?
Atul Kumar Goel
INR1500, yeah.
Suraj Das
Okay, sure. And sir, one last question in terms of this quarter growth, if I look at both on deposit and advances, the overseas segment has contributed very favorably. So anything specific that is happening there or is it just one quarter phenomenon?
Atul Kumar Goel
In last quarter as well, this is the last quarter was the same growth as far as the credit is concerned, but definitely this quarter some growth in the deposit is better as compared to the last quarter.
Suraj Das
Okay. So this quarter I think the advances growth on the overseas is something like 14% Q-o-Q. Anything — any particular segment that is driving that?
Atul Kumar Goel
Our guidance is 12% for whole of the business.
Suraj Das
Okay, sure. Thanks. Thanks so much, sir. All the best.
Operator
Thank you. Our next question is from the line of Yash Tarav [Phonetic] from RSPE Inventures. Please go ahead.
Unidentified Participant
Hi, sir. Thank you for taking our question. First of all, congratulations for a good set of numbers. Most of my questions were answered. I just had a couple of keeping questions. So first question is that, we’ve observed in our peers that a big PSU telecom company has — is facing some stress. So do we have any exposure in that?
Atul Kumar Goel
Definitely we are having the exposure of that, already been recognized in this 200 — INR2,100 crore, something already recognized the exposure INR434 crore.
Unidentified Participant
Okay, INR434 crore is the total expenditure and we have already provided for?
Atul Kumar Goel
Yeah, yeah, already recognized and it is in the figure of the INR2,100 crore, yeah.
Unidentified Participant
Okay. Okay, sir. Thank you. Second question is, sir, on the deposit repricing, we were observing from last few quarters that the deposits were being repriced. So has that scenario been over now and the NIM guidance that you maintain considers the scenario that deposit pricing has been completed?
Atul Kumar Goel
I fully agree with you. I think deposit — in my opinion, deposit has already reached on the peak. So we do not foresee any further increase in the deposit. So whatever the guidance for the 3.9% to 3%, I think we will be in a position to maintain it, yeah.
Unidentified Participant
Okay. Okay. Sir, just one final question, if I can squeeze in. This is in regarding that RBI had recently introduced some rules, regulations regarding the infrastructure loan book and provisions on infrastructure loans against which bank — the banks has made some representation to the statutes. So has there been any development in this scenario?
Atul Kumar Goel
I mean, as of it, we have noted. Whatever the draft, guide has come, that is digital. We have not issued the final guidance yet.
Unidentified Participant
Okay. Okay, sir. Thanks a lot. These were the questions from my side. All the best.
Operator
Thank you. Our next question is from the line of Kunal Shah from Citigroup. Please go ahead.
Kunal Shah
Yeah. Thanks for taking the question. Most of the questions have been answered. One thing with respect to PNB Housing, this entire new draft circular, which has been there, which talks about the group company. Obviously, it’s an associate, but still the group entity which says that it cannot carry on the business similar to that of bank. So would maybe in terms of having of a stake in that subsidiary, we can maybe prepone that taking into account that draft circular or what would be our overall stance on the holding in PNB Housing Finance?
Atul Kumar Goel
See, as on-date, there is no plan. We are reviewing the whatever the draft guidelines is coming. We will discuss in the Board, as of date, we have not decided. Yeah.
Kunal Shah
Okay. Sure, sure. Okay. Thank you.
Operator
Thank you. Our next question is from the line of Jay Mundra from ICICI Securities. Please go ahead.
Jay Mundra
Hi, sir. Good evening and congratulations on 1% ROA, sir. Sir, my first question is, you mentioned that the central TSU account in telecom that you have already recognized as an NPA, just wanted to check, sir, what could be the provisions here that you would have made?
Atul Kumar Goel
Provision, I think it is not appropriate, otherwise, we have made a good provision. Actually, I think individual account we should not discuss.
Jay Mundra
So and secondly, sir, you would have the other stretched steel PSU account that is still in SMA or what is the status or that has — you think that will be resolved? How should we…
Atul Kumar Goel
That is in the SMA with the other bank, but as of date because that is the working capital with me. So my account is okay, but we have to see in totality.
Jay Mundra
Yeah, okay. And sir, what would be your total SMA 1 and 2, including below INR5 crores account also? I mean you…
Atul Kumar Goel
Total SMA 1 is the INR14,688 crore and SMA 2 is INR13,509 for a whole book.
Jay Mundra
Okay. And if you have the SMA zero number also sir?
Atul Kumar Goel
Zero number is INR1,02,728 crore, but as on date if you ask me because there is a accounting issue also because some of the installment is doing in the — 30 is coming, one time it is coming SMA zero. So as on date, this SMA zero has reduced only INR1,02,728 crore to INR21,599 crore.
Jay Mundra
And last question, sir, is, we look at revaluation of investment income, right, because RBI has permitted that the banks can accrue the notional gain also. And is there any — I mean, so we have — and I think if I remember right, we have done around the treasury — of the treasury, the income is around INR700 crores. So would you believe that this number will stay or I mean what is this number linked to? I mean, what could drive this number lower or higher this quarter? Is it like equity M2M or bonds M2M or what is it? Thank you.
Atul Kumar Goel
INR761 crore is the trading profit. Let me clarify you, Jay Mundra, INR761 crore is the real profit, which is the profit from the GSec, which is the profit from the non-SNR [Phonetic] and the profit from the equity also. In addition to that because the — on account of the change of the new balance in the valuation, there was another INR731 crore added in the P&L for this evaluation in this time. Yeah. So because our TCV is very active, so we are hopeful because if you see the last quarter we have made INR325 crore. So it depends on the yield, etc also. So our TCV is very active. So we will be in a position to make good profit in the time to come also. No issue.
Jay Mundra
So, sure, great sir. Thank you and all the very best, sir.
Operator
Thank you. Our next question is from the line of Saurabh from JP Morgan. Please go ahead.
Unidentified Participant
Sir, just two questions. So one is historically on your written-off book, what’s the recovery rate that you get? So that’s the first one. And secondly, what is the total magnitude of AFS reserves that you have right now?
Atul Kumar Goel
Actually, INR92,584 crore is the TWO book. Normally within the range of the INR1,000 crore to INR1,500 crore, we are recovering every quarter. And the AFS book is the INR1,09,615 crore, which is around 23.3% of the total investment book.
Unidentified Participant
No, no, sir, I was asking, so normally like over a cycle of the INR90,000 crores, how much will be your recovery, will be 10%, 15%, how much should?
Atul Kumar Goel
Around INR5,000 crore we are recovering every year. So you can think it is around 5% to 6%.
Unidentified Participant
5% to 6%, okay? Okay. Okay. Thanks.
Operator
Thank you. Our next question is from the line of Anand Dama from Emkay Global. Please go ahead.
Anand Dama
Yes, sir. Thank you for the opportunity. Sir, I think Suraj asked two questions related to your overseas loan book that is expanding at a very fast pace, sir, what is the reason? What are these kind of loans that you are [Technical Issues] giving to what kind of corporates are there extra flavor that you can give?
Atul Kumar Goel
Actually, Anand, it is a combination of all, they came from RAM. There is a growth in the RAM also, I will give you the sum of the number of the RAM. If you see the retail, this number was the INR5,44,954 crore in the June 2024. It has increased to INR5,64,000 crore, INR20,000 crores more than INR25,000 crore is increase in the RAM. Even retail also retail may around INR15,000 crore is increase here and rather is the corporate, there is also increase in the NBFC side and there is a increase in the sum of the renewable project, solar, etc. So it is a combination of also, mainly in the RAM. RAM is the focus area. There is some increase in the NBFCs also, but all are there basically AAA and third is the other corporate advances. Yeah, major part is the rural [Phonetic] and the another is the solar, renewable energy.
Anand Dama
First one was specifically related to overseas loan.
Atul Kumar Goel
Can you repeat, yeah. Anand, can you repeat?
Anand Dama
My question is related to overseas loan book, which is expansion.
Atul Kumar Goel
Overseas [Speech Overlap]. Overseas, basically most of the exposure is only bank, our buyers credit, yeah.
Anand Dama
Okay. But basically also, sir, because that book to some extent is dragging your margins down?
Atul Kumar Goel
Yeah, yeah.
Anand Dama
Why are we at [Speech Overlap].
Atul Kumar Goel
Margin is less, lot of margin is less, yeah.
Anand Dama
So is it basically that you can cut down the exposure to overseas anytime soon like or you will keep going…
Atul Kumar Goel
Yeah, we [Speech Overlap] we are having — while there is a need of the [Indecipherable] the exposure also because ultimately we have to see whether we are earning or not. As I told you in my initial remarks also in some of the transaction, if we are getting 1%, 2% or the even less than 1%, why we should allow that opportunity should go down from the Punjab National Bank? Because we are not concerned about the 3% NIM. We are concerned the absolute number of the net interest income.
Anand Dama
Sure. Sir is it possible to share what is the LCR for this quarter?
Atul Kumar Goel
LCR I told you, 129%, 129% draft guide as well, there is a dip of around 10% to 11%.
Anand Dama
Okay. If the new draft guidelines comes, it will come down by 11% — 10% to 11%? Sure, sir. Thanks. Thank you.
Operator
Thank you. Next is a follow-up question from the line of Rakesh Kumar from B&K Securities. Please go ahead.
Rakesh Kumar
Thank you, sir for the opportunity again. Sir, just I was coming back to the same question on the change in the yield on fund. So I was looking at cash investment and advances composition as a percentage to your deposit and borrowings. So I find that there is a decrease in the cash balances number as a percentage of deposit and borrowings. And also there is a decrease in the advances number and increase in the investment number. And some of the gap has been funded by the equity around INR4,200 crore. But still the margin is coming down. So the — so the margin fall what we have seen in this quarter like should we see this as a kind of a regular thing going ahead also or what is that because probably we have used the QIP money, I think in this quarter.
Atul Kumar Goel
Yes, maybe on account of the QIP money, it is not a general because I told you sometimes we are raising the liquidity, where we will pass the liquidity either in the short term investment opportunity available where the yield is there. So this is the only reason which I explained you also. But it is not for a — for a long period also, very short period also.
Rakesh Kumar
Okay. Got it, sir. Got it. Thank you, sir. Thank you so much.
Atul Kumar Goel
Thank you.
Operator
Thank you. Our next follow-up is from the line of Marshall, who is an Individual Investor. Please go ahead.
Atul Kumar Goel
Yeah, please, please.
Unidentified Participant
Sir, my question was that, this quarter, provision has also reduced by INR1,024 crores. So are we going to — like whether this provision will sustain to this level what it was there in the September quarter or it can also spike in the subsequent quarter?
Atul Kumar Goel
Provision, there is a three, four provision which provision — as far as credit cost is concerned, we have already revised our guidelines. So, credit — the provision for the NPA will further reduce and these standard assets also. I do not foresee there will be any increase in the provision and OTR 1, OTR 2, we have already made 170% additional provision, which I told you. So only the provision for the income base will be the main provision and other I do not think then there will be any increase in the other provision also.
Unidentified Participant
Okay. And sir, like this, we also made floating provision of INR350 crores. So what is the purpose for which this floating provision can be utilized?
Atul Kumar Goel
This floating provision is permitted by the regulator. INR350 crores we have made for this quarter, cumulative provision is INR500 crore, INR150 crores we have made earlier also. So this will help to reduce and to maintain our net NPA number.
Unidentified Participant
No, no, understand, but what I’m saying like because in the other banks, I was reading through that like they mentioned that this provision can’t be utilized without the prior approval of regulator. So this I’m asking you, like, yeah, yeah for what kind of thing this can be utilized, yes, sir.
Atul Kumar Goel
Yeah, with the permission of the — with the permission of the — if in the that time, if there is a requirement to use this proposal, then we have to take the permission from the regulator.
Unidentified Participant
Okay, okay. And okay, okay, sir. Okay. So this last — my last question regarding the CASA, so what special steps will like the — like the bank is taking to increase the number of current account, sir?
Atul Kumar Goel
Point number one, like I will give you the SMA, as well as the current account. CASA is definitely a challenge not for the Punjab National Bank, for the entire industry. But we are having 10,000 — more than 10,000 branches, more than 24 customer and we have provided all the branches with the tab banking. So time for opening of the new account has already been reduced. Last year, we have opened more than 1 crore SMA account, in the first quarter we have opened more than 60 lakh account, the money will come in this account. Your specific question for the current account, so last year, we have opened 2.68 lakh account. In first half, we have already opened 1.21 lakh. We have also provided this corporate mobile app, which was not available earlier, which we have launched in the last month only by using this corporate mobile app. So definitely we are hopeful there will be increase in the current account opening as well as the balance in this current account.
Unidentified Participant
Beautiful, sir, beautiful, sir. Sir, you are doing a fantastic, sir. All the best, sir. All the best. [Foreign Speech].
Atul Kumar Goel
Thank you, thank you. [Foreign Speech]
Operator
Thank you. Our next question is from the line of Ashlesh Sonje from Kotak Securities. Please go ahead.
Ashlesh Sonje
Hi, sir, congratulations on a very strong quarter.
Atul Kumar Goel
Thank you.
Ashlesh Sonje
Sir, first question is on the slippages side. If I look at the aggregate slippages, they have gone up quite sharply on a Y-o-Y basis. Any reason for that?
Atul Kumar Goel
Slippage, you are asking about the slippage Y-o-Y?
Ashlesh Sonje
Agri slippage.
Atul Kumar Goel
INR1,826 crore to INR2,181 crore.
Ashlesh Sonje
Sir no, just the agri part, agri slippages for the quarter, which is about INR570 crores.
Atul Kumar Goel
You are asking what the Agri?
Ashlesh Sonje
Correct, yes.
Atul Kumar Goel
INR565 crore, INR565 crore is for the agri. Normally, we keep within this INR500 crore, INR600 because we are having the book of the more than INR1 trillion. So sometime INR500 crore, sometimes INR600 crore, there is no much difference, yeah.
Ashlesh Sonje
Okay, sir. Sir, and secondly, on the PSU account, which are slipped this quarter, are there any other PSU — large PSU accounts which are sitting in the SMA book for you?
Atul Kumar Goel
Only one is not only one way account was only in the SMA that we have already recognized. As I told you in my, as on-date, I do not find. Yeah.
Ashlesh Sonje
Okay, sir, perfect. Thanks a lot.
Operator
Thank you. [Operator Instructions] As there are no further questions, I request Mr. Atul Kumar Goel for any closing comments.
Atul Kumar Goel
Thank you very much once again. I think this was the one of the best quarter as far as the Punjab National Bank is concerned and whatever the guidance we have given, I think we have achieved most of the — except the CASA and the most important was the ROE also. Although we have given the guidance key, we will be in a position 1% by the exit of the current financial, but we have achieved. So I think with this support of all the my investor also and the analyst also and I assure you whatever the number we have shown the coming quarter and the coming to next last quarter of the financial year, we will be in a position to show the better performance, whatever we have shown in this quarter also.
Operator
[Operator Closing Remarks]