State Bank of India (NSE: SBIN) Q3 2026 Earnings Call dated Feb. 07, 2026
Corporate Participants:
Unidentified Speaker
Shri Challa Sreenivasulu Setty — Chairman
Analysts:
Unidentified Participant
JAY MUNDRA — Analyst
Ankit Bihani — Analyst
Kunal Choudhary — Analyst
Jeet Suchak — Analyst
Nitin Aggarwal — Analyst
Pritesh Bumb — Analyst
Presentation:
operator
Good evening, ladies and gentlemen. I am Pawan Kumar, General Manager, Performance Planning and Review Department of the Bank. On behalf of State bank of India, I am delighted to welcome the analysts, investors, colleagues and everyone present here today on the occasion of the declaration of the quarter C financial aid 26 results of the Bank. I also extend a very warm welcome to all the people who are assessing the event through our live webcast. We have with us on the stage our Chairman Sir Shri CS Sethi. Our Managing Director, Corporate Banking and Subsidiaries, Sri Ashwini Kumathiwari.
Our Managing Director, International Banking, Global Markets and Technology, Sri Rana Ashutosh Kumar Singh. Our Managing Director, Retail Business and Operations, Sri Ram Mohan Rao Amara, our Managing Director, Risk Compliance and Saji Sri Raviranjan, our Deputy Managing Director, Finance Sri Anindya Sundarpal, our Deputy Managing Directors heading various verticals and Managing Directors of our subsidiaries are seated in the front rows of this hall. We are also joined by Chief General Managers of different verticals business groups. Chief General Managers and other senior officials of the circles and various offices are connected through our live webcast. To carry forward the proceedings.
I request our Chairman sir to give a summary of the bank’s quarter three financial year 26 performance and the strategic initiatives undertaken. We shall thereafter straight away go to question and answer session. However, before I request Chairman Sir, I would like to read out the Safe Harbor Statement. Certain statements in today’s presentation may be forward looking statements. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual outcomes may differ materially from those included in these statements due to a variety of factors. Thank you. Now I would request Chairman sir for his opening remarks.
Chairman sir, please.
Shri Challa Sreenivasulu Setty — Chairman
Thank you. Good evening, ladies and gentlemen. Thank you for joining us for today’s analyst meet. Following the announcement of the bank’s human Q3 FY26 results at SBI we have remained consistently focused on strengthening the fundamentals that create sustainable value for all stakeholders. Our performance in the third quarter of FY26 reflects continuity, consistency and the enduring strength of our franchise. I will begin with a brief overview of the global and domestic economic environment followed by an update on the Bank’s performance. Despite heightened geopolitical tensions and elevated global uncertainty, the Indian economy remains well positioned supported by strong macroeconomic fundamentals and a benign inflation environment.
Global growth is projected at around 3.3% in 2025-26 while India continues to outperform with real GDP growth expected at about 7.4% in FY26. India’s potential growth remains close to 7% with FY27 growth projected in the range of 6.8 to 7.2%. Growth is expected to remain resilient in FY27. The Union Budget reinforces the government’s commitment to inclusive and accelerated growth under the vision of Vixit Bharat 2047 with a proposed capital expenditure of 12.2 trillion rupees providing strong support to infrastructure and investment. On the external front, services exports are expected to remain resilient while the merchandise exports should benefit from the recently concluded and prospective trade agreements.
Although geopolitical risk and global market volatility remain key downside risk, the Indian financial system continues to remain strong and resilient with robust capital liquidity, asset quality and profitability across banks and NBFCs. Alongside the numbers, we are strengthening the structural drivers of sustainable profitability, productivity, capital efficiency and risk adjusted growth commensurate with SBI skill. Our long term ambition is aligned with Vixit Bharat 2047 and our strategy is anchored around a long term horizon with a continuous investment in people, processes, products and technology. The new YONO represents a fundamental design of our digital operating model through yonoization of the bank.
Beyond acquisition, the focus is on lowering cost to serve, enhancing customer value and improving lifetime value. Scaling yono from 10 crore registered users to 20 crore over the next two to three years is expected to support operating leverage and ROE sustainability. Chakra, our center of Excellence for sunrise sectors, institutionalizes our ability to support prudent capital allocation in emerging segments. We have initiated, as I mentioned last time, a process simplification and a phased deployment of nearly 10,000 Seva Sarathis are floor coordinators at high footfall branches for migrating routine transactions to digital channels. Collectively these initiatives support consistent performance across cycles with growth that is profitable, well capitalized and prudently risk managed.
On the performance front, I am happy to share that the bank has declared highest ever quarterly net profit of 21,028 crore and total business has crossed 103 trillion rupees reflecting customers continued trust in us. The net profit is up by 24.49% year on year driven by higher operating profitability and lower credit costs. At 0.29% the operating profit is 32,862 crore rupees up 39.54% year on year. The net interest income is 45,190 crores up 9% year on year while the domestic NIM stands at 3.12% for the quarter. Bank’s Total deposit growth has remained healthy with 9.02% year on year along with current account is issuing growth in double digits at 10.32% with CASA ratio at 39.13%.
Despite very competitive market environment, retail sum deposits have grown by a robust 14.54%. Deposits of our Foreign Office have also grown well at 8.32% on year. On year basis the credit growth was up 15.4 year on year as on December 25th which was driven by all the segments registering growth. The domestic credit deposit ratio was at 72.98% at the end of Q3, an improvement of 404 basis points year on year. All the components of RAM, retail, agriculture and SME have witnessed robust growth. The corporate credit has seen a rebound and has grown by 13.37%. The asset quality continues to be industry leading with gross NPAs at 1.57% improving by 50 basis points and net NPA at 0.39% improving by 14 basis points.
Notably, the PCR was up 88 basis point year on year two 75.54%. The NPAs continues to be at its lowest level over two decades which demonstrates the quality of our loan portfolio, disciplined credit practices, underwriting capability and sustained recoveries. The bank remains well capitalized and the capital adequacy ratio has improved by 101 basis point year on year and stands at 14.04% which is well above the regulatory minimum requirements. Further, our subsidiaries continue to demonstrate consistent performance and strengthen value for all our stakeholders. With their expansion of digital channel, innovative products and enhanced customer experience at digital front, we have continued to make steady and meaningful progress.
We see digital transformation as a continuous journey of evolution and YONO remains central to this journey. With over 9.65 crore registered customers and registrations for our new yono crossing the 3 crore mark within a short period of one month since its launch reflecting strong and sustained adoption, digital channels are now firmly embedded in our customers behavior. While we are encouraged by our performance in Q3, we remain mindful of structural shifts in the financial system, particularly the increasing financialization of household savings. Over time this trend will gradually reshape bank balance sheets towards more diversified and market based funding supported by greater innovation and deeper integration of digital platforms.
At sbi we are proactively adapting by strengthening our liability franchise, increasing our share of current accounts and leveraging YONO to enhance customer acquisition and retention. Our strategy is forward looking, focused on technology and analytics to remain competitive and future ready. We remain sharply focused on efficiency and Return metrics with our ROE consistently greater than 1% and ROE at 20.68% at the end of Q3, SBI is among the very few global financial institutions capable of sustaining a ROE of over 1% at this scale. With an advanced book of approximately 47 trillion rupees, investments about deposits of around 57 trillion and a balance sheet size of nearly 72 trillion rupees.
Our strong asset quality reflects disciplined risk adjusted lending and portfolio resilience while robust internal capital Generation supports future CET1 accretion and long term growth. Our people remain central to this journey supported through focused training, continuous upskilling and and inclusive work culture, ensuring a skilled and motivated workforce in a rapidly evolving banking landscape. To conclude, I would like to thank all of you once again for your continued support and engagement with the Bank. Our priorities remain firmly aligned with supporting India’s economic growth while creating long term sustainable value for all stakeholders. My team and I will now be happy to to take your questions.
Questions and Answers:
operator
Thank you. Thank you Chairman sir, We now invite questions from the audience. For the benefit of all we request you to kindly mention your name and company before asking the questions. To accommodate all the questions we request you to restrict your questions to maximum two at a time. Also kindly restrict your questions to the financial results only and no question be asked about specific accounts please. In case you have additional questions the same can be asked at the end. We now proceed with the question and answer session please.
Unidentified Participant
Compliments to you sir. For the yet another good quarter rather the one of the best quarter profitability point of view, even asset quality point of view and even business growth point of view which was in the earlier part first and second quarter was I mean not subdued but better than that.
If this quarter complements for the same. Having said that sir, on the profitability like in the last quarter we had that exceptional profit of the sale of yes bank shares but in spite of that I mean this quarter’s profit is matching the last quarter’s profit. So and the main component which I see here is that on the investment profit and the revaluation I mean and miscellaneous income has gone up by to 5154 crore as against 2897 crores and also the forex and derivatives so about 2 and a half to 3000 is that component. So what has contributed to this profit because but for that 4,500 crore of just bank I mean the profit should have been lower in this quarter as compared to last quarter of about 3000 crores.
Shri Challa Sreenivasulu Setty
This is first first question I was just waiting for the next question. Please go ahead. You want me to answer this first and then we’ll move on.
Unidentified Participant
If he permits me. I don’t know whether.
Shri Challa Sreenivasulu Setty
Yes, one more question please.
Unidentified Participant
The another one sir that in the last quarter the business growth is very good, especially the credit growth and now having achieved that would you revise your targets for the credit specially so as to have the proper estimate of the profitability for the whole of the FY26 going forward when the bank is doing well. One or two more things that our loan book has grown phenomenally at a very high speed and as well as the.
I think the personal loans have also grown. So can you give some color going forward on the overall credit growth segment wise coming forward and the one observation is that this non NPA provision of about 30,642 crores. So this is the basically beyond the requirement of the. I mean as per the irac. So is it to take care of the ECL or to take care of any. Any chunky account which you are looking or. Or it’s a floating provision you want to continue and rather increase it in future.
Shri Challa Sreenivasulu Setty
Thank you Ajmera Sahib for the good words which you mentioned.
The profitability in Q3 has come from many levers. I did mention in Q1 Q2 that both on the growth side as well as on the profitability side SBI has many levers and we will continue to use them. If you see our fee based income I think most of these segments have shown good growth that is cross sell upsell government business. LC business also is remaining and fee based income in terms of processing charges and recovery in written off accounts and more importantly the credit growth across the segments. Apart from that we also have focused on the you know moderating the cost of resources which has given the uptick in the net interest income.
Net interest income growth of 9% is a combination of both containing the cost of resources as well as the credit growth which has happened. If I have to talk about one off I think the one item which is a dividend, special dividend we have received around 2200 from SBM Mutual Fund. Even you net off this one off I think we have done fairly well in terms of every area and also the modest credit costs also contribute to the uptick in the profitability. We also focused on the moderating the operating expenses. While our SAP costs are broadly reserved.
We try to reduce the cost of overheads and that also has been one of the reasons why you see the good profitability and the credit Growth advice. We had given 12 to 14% credit guidance earlier. We are revising that upwards to 13 to 15% for the current quarter. We will give a full year guidance when we meet again in the Q1. But for the current year I think this current quarter we will be revising our credit growth estimate to 13 to 15% based on the trend which we have seen in the current quarter so far segment wise credit growth.
I think the growth has been secular if you see this slide. Particularly that we had given the guidance that we would be having a double digit corporate credit growth in Q3 and we hope to continue that double digit growth in the corporate side in Q4 also. Which means that RAM would significantly be contributing to the growth. Continue to contribute. We also see that corporate book growing in double digits which means that our guidance of 13 to 15% is coming from all the segments non NPA provisions. I think the COVID provisions 3500 is continuous, continuing and there are some proactive provisions which we have done account specific but this broadly is also a standard asset provision.
So the idea of presenting this is that we have the ability to take care of any untoward incidents and the way we want to manage the balance sheet. It’s not that this is being built for the ecl. That’s not the idea.
Unidentified Participant
Just one more sir, just one point sir. We have given the breakup of the awka account of 1 62,464 crores. Beyond 10 years is 23,000 and odd crores 5 years 87,000 crores and below 5 years 51,000 crores. So in order to get the proper color for the recovery from the return of accounts what kind of strategy and efforts which we are having like beyond 10 years what is the possibility what kind of those accounts are between the 5 and 10 and below 5.
Why not we have a higher percentage of recovery because if you see the underwriting quality during last five years. I think your entire current five years loan book to NPA adjust a guesswork maybe even less than 0.75 or 1%. I mean the way I look at the current this thing. So from recovery point of view the five years means from the date of NPA till now. I mean from the this is not date of transfer correct transfer to that means beyond five years
Shri Challa Sreenivasulu Setty
even older
Unidentified Participant
so but still more recovery or better chances. So see in the recent how do we look at it
Shri Challa Sreenivasulu Setty
in the recent slippages you would definitely have a better recoveries.
In fact much of the run rate what we are witnessing around 2000 crores per quarter is also coming from the recent slippages, that is recent write offs, which means around 2 to 3 year old. You are right. I think less than 5 year return of accounts will have a better recovery rate. But I think the most appropriate way is to look at the portfolio level and what we have given earlier guidance. Also we are still seeking 6 to 8% is the recovery which is possible in this portfolio, not beyond that. While the age wise there could be some higher recovery and low recovery and there could not be any recovery at all in some of the accounts.
It is better to assume that we are looking at 6 to 8% recovery overall. I think we still stick to that guidance. Aj
Unidentified Participant
thank you sir.
Unidentified Participant
Hello sir. Congratulations sir. I had a couple of questions. Firstly, in terms of your NIM outlook longer term and even for the fourth quarter you had earlier, I think there was a guidance that nim would be about 3 in the fourth quarter. So that does that still hold and is there scope for cost of funds to come down further? That’s part of the same question. So NIM outlook for fourth quarter and longer term with focus on cost of funds.
And secondly in fees the CVE income has grown very sharp. In fees the CVE income has grown very sharply. So which income? Cve. Cve. So any comments you wanted to make on that because it’s a sharp growth. QOQ and yoy and just one more question. What would have been the interest on income tax refunds for this quarter and for last quarter
Shri Challa Sreenivasulu Setty
? Okay. On the NIM front I think we are still sticking without calling it a short term, long term nim. I think we have said that the exit NIM for the current year would be about 3% and our long term guidance is 3% through the cycles.
I think we’ll stick to that. There could be some upside here and there but I think it’s fair to assume that 3% guidance, about 3% guidance holds good both for the Q4. That means 26 exit NIM and 2728 year NIM. Also I think we are sticking to the 3% guidance. And on the CBE income there has been good growth in terms of life insurance. The GST benefit we have seen, I think the number of policies sold is also increased. That has contributed. And also the trail income from the mutual fund is also gone up. So there is a secular movement in terms of the cve.
CVE is basically the cross sell income. Right. So I think that’s been a good growth story. We also enhanced the number of products which are Made available through our counters and also on the, you know, channel. That also has contributed to the growth in the CB income interest on the IT refund. You have the numbers ready please.
Unidentified Speaker
Quarter three interest on income tax refund was 769 crores. And the similar amount last quarter was 372 crores.
Unidentified Participant
Okay, sir. And cost of funds, scope for deposit cost to come.
Shri Challa Sreenivasulu Setty
Cost of funds. I think what we have done strategically is that we focus more on the retail deposits.
We have not moved to the wholesale deposits. Even in the wholesale deposits we moved more into bulk card rate deposits. That means they are almost equivalent to the retail term deposit rates. We have seen a good growth on the card rate. We have not gone aggressive on the differential interest rates or high cost deposits. That has also helped us in terms of containing the cost. But we should also remember that 39% CASA at this level is also contributing to bringing down the cost. And we got the full benefit of savings bank reduction in interest rate to 2.5 and current account 10% growth rate is also helping us to contain the cost of funds.
I think broadly the cost of funds will remain at this level. For the Q4 also we don’t want to go beyond Q4. I think we will take a call in the Q1. We may have to see how the credit growth is going to play out. Because all these trade deals are extremely positive. Right? So there would be definitely an improved credit climate. While Q1 of any financial year is generally slow quarter. We will take a call in terms of how our deposit strategy will play out while we have adequate liquidity and as well as capital buffers to support the credit curve.
Unidentified Participant
Thank you sir.
JAY MUNDRA
Yeah. Hi sir. Sir, Jay Mundra from ICICI Securities. Sir, just continuing on the previous question, you said that cof cost of funds may not. May remain stable, right? Is it because that the bulk deposit rates, the system they have actually shot up in the last two, three months. Is that one of the reason? Because otherwise your retail deposit should keep repricing. Right? Because what you had done in the June July months that should continue to flow through. Right. So why would the cost of fund be stable until Unless there is some moving parts, some.
Some portion of the deposit where the rates are bit higher.
Shri Challa Sreenivasulu Setty
No, the cost of the retail term deposits are also high even after repricing. See broadly the book has got repriced. Only last reduction in interest rate will be available for another six to eight months. Probably the repricing will happen. What I am seeing is that the stabilization of the interest rates on the retail term deposits also there is nothing much we will be able to reduce. And and that shows that again you know what kind of deposit mobilization we need to do going forward if the credit growth comes.
So Q4 I think broadly the numbers remain. There could be some repricing going forward because what we have done in the last quarter the interest rate reduction will play out for some time. But I broadly believe that, you know the retirement reduction in the cost of funds is unlikely we will be maintaining at this level. Maybe if we are able to mobilize a little more current accounts generally which happens in the Q4 it may help us to moderate the cost of funds.
JAY MUNDRA
And sir, on Express Credit right. So now the portfolio has grown at 3,4% POQ.
We have been maintaining that there is a decent good pickup in the disbursement. Sir actually what would help if you can give the absolute rupees crore number in disbursement because that will give the more trend line because the portfolio behavior may be slowly to you know, see the growth. But if you can share the disbursement number in Express Credit that will give a more clarity.
Shri Challa Sreenivasulu Setty
No, I mean we don’t disclose what kind of disbursements we do on each product. I think that’s not appropriate. What we are seeking to that is that we were hoping to have a double digit growth in Express Credit.
There seems to be some movement towards Gold loan may not be significant. Some of these corporate salary packages this product is available only for the salary account holders. We are seeing that a part of that salary holder segment has availed Gold loan which they would have otherwise taken the Express credit is for two reasons. One is the value of gold has gone up. So the amount of gold loan which they can get has increased and the rate differential is significant. So that is probably has not resulted in the expected growth rate. But the very fact that you know we are able to manage this portfolio at this level which means that you know our sanctions disbursement are robust.
JAY MUNDRA
And lastly on Gold loan sir, so I think There is a 95% YoY increase in the portfolio. Is this entire organic or there is some reclassification from agri gold to retail gold. And you know what are the risk mitigant here in the sense that what is the origination LTV and maybe the book LTV because prices have been you know rising one way only.
Shri Challa Sreenivasulu Setty
So we do advantage deep dive on this portfolio. Every day we monitor the LTVs. What we see that one is your first question in terms of shifts there Was some shift from Agri gold loan to personal gold loan.
But the shift shifted back after RBI is clarified and the Agri Gold loan I think that shift is not happening too much by the customer. So I think that is not a major worry. And the personal goal loan LTV is. It’s not only about the portfolio ltv. Sometimes portfolio LTV could be misleading because some of the two years ago somebody has taken the gold loan and when the price was low then the outstanding versus the value would be significantly lower. But we bucket them and bucket them and both on the vintage as well as in terms of the amount we see that the LTVs are extremely modest and we have sufficient room in terms of the LTVs.
For instance, I think in Agri gold loan the average LTV is 54.8 and in case of personal gold loan it is 51% even if you stake the latest vintage. Also we do not go overboard on the LTVs. There is a adequate margin available on them. And another data point which I would like to give to you is that the number of gold loans auctioned is just about 2030 in a huge portfolio of gold loans, what is that means? You know, even if the price fluctuation is there or the margin, if you have to ask someone that, you know the margin call.
We do not call it margin call but we found that nobody allows this account to become npa. They just ensure that they pay off the loan. So this portfolio is holding up very well. There is no concern on this.
JAY MUNDRA
What is the Agri gold loan book? Sir, if you may have. That’s retail. We have given
Shri Challa Sreenivasulu Setty
no Agri gold loan as on December is 1:44,000.
JAY MUNDRA
Thank you and all the way.
Unidentified Participant
Sir, you are rightly called first the congratulation to MSBI for a great performance. Sir, you had rightly called that the RBI reduction cycle is bottomed out.
It may not look anything negative when the interest rate scenario can be flat upwards. Now current volatility led by global factors mainly GST has been a benefit. Budget has been benefit. The EU and the US trade would benefit. How are you seeing the scenario balancing on the rate cycle and the credit outlook based on all these parameters in the current year and
Shri Challa Sreenivasulu Setty
the credit side, I think it’s extremely positive. And two things. One is the system itself will get benefited with the positivity which is created on the trade deals on the gst, on the income tax, on the monetary measures, what have been announced.
And more importantly, SBI is well positioned in capitalizing on all these positive development. That is also One of the reasons why I have given the revised guidance on the credit prohibit. So if you see the and even budget budget announcements both on the infrastructure side and we are also looking at what kind of infrastructure guarantee which will come and MSME for instance the chakra what I mentioned in terms of the sunrise sectors. Many sectors have been mentioned in the budget itself. That means, you know our thought process is completely aligned with what the government initiatives are.
So to that extent I think SBI is well positioned and we also are a very large player in MSME with 15 to 16% market share and growing. I believe that SBI will get benefited in supporting MSME growth both on the champion MSMEs. Even before the government has announced champion MSMEs internally we have started categorizing which are these MSMEs which have huge growth potential. We try to categorize them into platinum, gold and support them proactively in terms of their growth technology and market linkages. So many things what we are trying to do with Ms. SME aligns well with the developments which have happened, positive developments which have happened.
So I believe that we are on the right path in terms of the credit growth and we are in right path in terms both in India as well as cross border opportunities which will emerge on account of this trade.
Unidentified Participant
Second question sir. Led by all the factors. Are you saying seeing you know, government has given positive policy on data center which means renewables would be required on a larger number. Nuclear is being talked about, shipbuilding is being spoken about. Are we getting any green shoots early? Whether it’s SBI capital markets assessing or internally on credit, that ticket size which used to be 25000 crore project would be 30,50 crore.
Shri Challa Sreenivasulu Setty
We are active in data center financing. The mega data centers which are announced they still have to come with a business plan. But I think wherever data center capacities are being created, we are part of that journey. In terms of the other sectors, you are right. I think there will be a good amount of demand for the green energy for these days centers. Renewable energy is one of the important segments which we are focusing on. Incidentally our green portfolio has reached 1 lakh crores which constitutes renewable energy predominantly. Which means that these growth opportunities are definitely being considered by us.
Unidentified Participant
So your subsidiary’s contribution to the balance sheet is on our tick specifically led by dividend use at SBI mutual fund. Is this number on a higher growth trajectory or will remain flat?
Shri Challa Sreenivasulu Setty
Higher growth trajectory,
Unidentified Participant
it will show higher contribution.
Shri Challa Sreenivasulu Setty
I think we definitely hope that the subsidies are doing very well and I think they are also Investing heavily into digitalization customer oriented initiatives. I don’t know how much SBI Life talks to the investors. I would like to point out one major activity SBI Live does beyond the profits is Prime Minister Jeevan Jyoti Bhima Yojana. The PMJJBY which is the micro insurance which is provided to financial inclusion customers through the banking channel SBI.
We have 47% market share in the PMJ JPY and fully anchored by the SBI Life. And there is absolutely no complaints on in terms of the settlement. They are the top of the category in terms of providing the customer service. And service at scale is something what the SBI Life is able to achieve. And banker is going to play an important role in this. And we are also seeing the same trend continuing the non life mutual funds credit cards business. I think the combination of their digitalization and their underwriting processes, their customer orientation is helping us to increase our CVE income.
Unidentified Participant
Also can this number double in three years?
Shri Challa Sreenivasulu Setty
So our idea is that, you know we set a target of a billion dollar for CV income. If the rupee stays where it is, I think we should be able to reach that $1 billion CV income soon.
Unidentified Participant
Thank you for answering all my questions.
Unidentified Participant
Hi, you’re just here. Chintan Joshi from Autonomous. Sir, can we remain on that topic of growth with the trade deal? You know there’s a scope for corporate led expansion and you have the capacity on your balance sheet to grow. You know, is there like where could you take your LDR ratio if there’s that demand, credit demand coming be it trade deals or improving economy.
And within that if you do grow corporate loans, do they act as a drag on your nims or are you able to link it with CASA growth and get it back some other way? Because. Because traditionally corporate loans would be a drag on your names. That would be helpful color on that topic.
Shri Challa Sreenivasulu Setty
If you see in the Q3 performance we have had almost more than 13% corporate credit growth. We have not compromised on the margin. We have ensured that the NIM guidance, what we have given is maintained despite 13% credit growth coming from the corporate side.
Which means that that philosophy of pricing the risk properly will continue. I think we never deviate from that. We also have ensured that the ecosystem banking in the corporate side is strengthened further today. I just want to tell you an inside story that any corporate underwriting today we have a checklist of 22 items which we monitor whether we have clear engagement on these 22 non funding areas, whether it is cash management, whether it is salary Accounts whether it is letters of credit or foreign exchange. So the awareness on the operating level has moved from corporate lending to corporate banking in very significant manner and the sensitivity towards this engagement is intense now which gives us confidence that even if we have to compromise on some pricing on a corporate it would be purely based on what is the value which we are generating from the corporate.
So I don’t think we should have any concern in terms of margin compression with the corporate growth book coming back in a very significant manner as we approved in Q3 also we are very sensitive to that the value creation from our corporate relationship and I’m very glad to say that corporates are also responding in a similar fashion and some of the products which they were never using from sbi we have improved the product profile, product delivery and then they are too happy to take the products from us. It’s a long journey but I think we are there in the right direction on the LTR’s I mean the credit deposit ratio I think we do not want to give a guidance Obviously it is an evolving situation we have in the short term we are very confident that the credit growth whatever we are envisaging 13 15% will be comfortably be met by our liquidity as well as capital ratio.
Unidentified Participant
So the reason I asked the question was because There was a 3.2% increase in LDR ratio this quarter and NIMS are broadly flat Now I understand your international NIMs are down but a 3.2% increase in LDR should be associated with better NIMs. That’s why I asked that question.
Shri Challa Sreenivasulu Setty
3.2% LDR is also coming from the working capital draws. Typically working capital loans don’t give the yield pickup as much as you expect is not coming only from the term loans alone. So the working Apple loans are reasonably priced and these are high quality exposures which is also one of the reasons why you don’t see the and one more important thing which I keep talking about is you look at our RWAs.
Despite this growth we have not significantly enhanced our RWAS and that is also one of the reasons why you don’t see the commensurate pickup in our margins. We play very cautiously on the risk side also
Unidentified Participant
sir, second question was on the question from J on cost of funds wouldn’t it be a failure of transmission if the Q4 deposits from last year didn’t reprice this year and gave a benefit on cost of funds? Because we’ve seen a December rate card that is struggling through PI pass through on the liability side not just you know, from what you’re indicating but also for the system which leads to margin contraction because the EBLR book reprices.
So how do you see that puzzle? You know there should be transmission from that fourth quarter last year to the fourth quarter this year.
Shri Challa Sreenivasulu Setty
Sorry.
Unidentified Participant
Yeah. No
Shri Challa Sreenivasulu Setty
December rate cut has not resulted in any repricing of deposits. I don’t think anybody. I don’t think we have done.
Unidentified Participant
No, it hasn’t. It has inched up.
Shri Challa Sreenivasulu Setty
Technically that transmission did not happen on the deposit side. Well it had happened on the asset side. So the overall transmission if you see I think the governor has also mentioned on the stock it is only 45 basis point and on the incremental deposits I think the passing on of the interest rate on the deposit would be around 80.85basis point.
90, 95 basis point is something what happened the full transmission is unlikely to happen on the deposit side. So the repricing which benefited I think 75 to 80% repricing has already happened.
Unidentified Participant
So exactly the point. Right. 45 going to 80 should reflect in your balance sheet next quarter as well.
Shri Challa Sreenivasulu Setty
It will reflect in this quarter definitely but. But it may not be very significant. That is what I was trying to say.
Unidentified Participant
Thank you.
Unidentified Participant
Excellent Q3 numbers.
Shri Challa Sreenivasulu Setty
Who is that?
Unidentified Participant
Manoj Alim Chand. Excellent Q3 numbers. Just magic. Hats off to the management team and all the employees.
Shri Challa Sreenivasulu Setty
Thank you.
Unidentified Participant
Really wonderful. Now questions. One is would like to know your thoughts but particularly for the branch expansion globally in the United States and EU with the kind of sentiments totally turning around. It seems we should have a greater share of the global pie in business apparently banking we are top and you also are number one consumer banker globally. Right, we talked about that. So your thoughts we would expect it should be may not be too early just your thoughts ultimately or to execute it There could be a good scope for substantial increase in number of branches regions globally.
It can I think maybe more than the scope for more than doubling in the next three years. One is that next thing is our leadership we started with that hash has been contributing to banking sector in a great way. Particularly recent couple of last month’s announcements our MDs are heading Ajit Basu chairman of Indus bank number 5 bank in India and Vijay also the CEO of Yes Bank. So two great contributions number 5 and number 6 contributed by SBI. But surprisingly we were all wondering what happened. We need a CFO from outside advertisement for a contract arrangement came it came out of the blue when we have the topmost leaders we need to contribute to CFO so the top 10 banks globally.
So if you can just share your thoughts on that. And next is our SEBI chairman talked about the good thing intent on corporate bond market. It has been a struggle we have seen for last 25 years but he in fact said there is huge scope for multiplying the bond market. Now here what could be the thing we can gain significantly by way of investment in corporate bonds because we get about 50 to 150 basis point better rates in investment in corporate bonds than in lending. Of course it would also have an impact on the fundraise but in different causal trace we are again much ahead of the curve.
So if you can share your thoughts on this. And of course there another latest news which came in mutual fund yesterday the global head of BlackRock was here. We are talking about multiplying the mutual fund industry by two in five years. So that could be opportunity for us also because we have the running the largest mutual mutual fund. In fact if we delay the IPO and come after five years we can get three times the market cap based on these kind of things. Your thought process on this.
Shri Challa Sreenivasulu Setty
Thank you Ajit. Thank you very much. I think on the expansion, Bobasi’s expansion most of the geographies where barring New Zealand where the FTAs are trade deals are signed.
We have good presence and very large presence at it. For example US New York branch is the largest operations for us and in these jurisdictions we are broadly the wholesale bankers. And I believe that trade deals are going to help us mostly in the corporate and MSME funding which is an opportunity which is available locally here. And we would like to definitely take that opportunity. And any of these corporates access the overseas market. We have presence across geographies here and our ability to fund those transactions either by way of trade finance or by way of ECBC is very very large.
I don’t think we need to look at branch expansion in the EU area. We have two fairly large branches, both one in Frankfurt and in Antwerp. And these branches are taking care of the overall requirements in the US if you see we have wholesale banks both in New York and Chicago and Los Angeles and we have retail presence in the whole of California. And that is where I feel that there is some expansion in the retail side is potentially possible. We are expanding. For instance we will soon be opening a branch of SBI California in Dallas because they can open multi state.
So I think we will be selective in terms of physical expansion. We also would like to use our YONO Global which is a digital app across the geographies Almost I think 11 to 12 geographies. We already launched yonoGlobal. We would like to build retail presence through YONO Global not by opening the physical branches. So I think on the overseas expansion I don’t think we will be aggressive. I want to be clear on that. If opportunities arise in the new geographies we will definitely look at it and the corporate bond market. I fully agree with you that I think we’ve been talking about corporate bond market deepening for so many years.
There are many reasons but it is time now the corporate bond market has to become vibrant. Our participation in corporate bond market is based on what is our credit good growth. If there is a loan growth requirements, our priority is to fund that loan growth. But we also have a mix. If you see all our large corporates have loan limits as well as investment limits which facilitate us to put the corporate, you know, NCD subscription. But I think one more development what probably would help in terms of further strengthening is the partial credit enhancement which is now allowed by the rbi.
The partial credit enhancement will enable slightly lower rated corporates to access the bond market. Today it is typically dominated by AAA companies. So how do we bring A rated or AA rated companies into bond market through partial credit enhancement is something what we’re working on on the cfo. I’m sure that you made that comment on the like lighter note the CFO there are typical qualifications which RBI has fixed. We would definitely be creating the pipeline in the interim we needed a market resource but it is also open to our internal candidates if somebody is available we’ll definitely consider that mutual fund we are not fully exiting so we still have potential to monetize further when market improves.
I see a great opportunity for mutual fund growth and SBI mutual fund will be playing a very very large role in this. Thank you.
Unidentified Participant
One more recognition I would like to highlight for benefit of all particularly Congress to you and our DMD Finance for getting the corporate excellence in Financial reporting by a regulator award third time again Last year we got it. I was enrolled in the process and this year SBI has gotten and also yes bank has also got it. So that also a close to you and the team.
Shri Challa Sreenivasulu Setty
Thank you.
Unidentified Participant
Congrats once again.
Ankit Bihani
Yeah. Hi, can you hear me? Ankit Bhani from Nomura. So I wanted to ask about the outlook on the treasury income now. So given that the yield have hardened and we are assume it remains status quo. So how do you see so should we see a Treasury income moderating sharply from here on or we do have. We can sell AFS securities or participate in OMO through HTM to manage treasury income. My first question is on that. The second question is on lcr. So what is our average LCR for the quarter and what would be the impact of the new norms when they get implemented in first.
April. April. And the third question is on your free income breakup. You give miscellaneous fee income as a part as well. So we have seen decent pickup there in the last two quarters. What is driving that and what is that fee basically. Thank you.
Shri Challa Sreenivasulu Setty
You want to take it.
Unidentified Speaker
So treasury and income side we are at least we are not envisaging any significant expense decline what you are saying. So this number should be. Should continue like this, not more. There’d not be any reduction overall. So we are talking about treasury rural market is forex income.
Treasury income equity investment.
Ankit Bihani
If I exclude the forex income. I’m just talking about your FPTPL book. So if the yields harden so you have to mark to market on that book, right?
Unidentified Speaker
That’s right.
Ankit Bihani
Then how do you manage the traffic? Is it we sell
Unidentified Speaker
opportunities also then so there are opportunity also when something like this happened yield goes up and we have MTM helps. So this quarter also we have seen this happening that because of the mtm but we have be covered somewhere else. So largely this will.
Ankit Bihani
So do you think this is something structural? This can continue for a longer time or
Unidentified Speaker
no, we have opportunities for making some other income somewhere else.
Shri Challa Sreenivasulu Setty
Yeah. See just to clarify what he is trying to say that if your question is in terms of how do we manage the yield movement. So our internal view is that the yields probably will range from 6.55 to 6.75 in this range. There is no concern on the MTM hit. And in any case the Q3 numbers have not been built on the MTM gains we have seen. We believe that there may not be great contribution coming from the positive MTM of the book. The negative MTM could be impact would be less because FVTPL HFT book is small.
Even if there is a movement of the yields. I do not think there is going to be any significant impact on the mtm. And we also have as Ashram is mentioning an opportunity to as you mentioned, participate in the OMOs, participate in the buybacks and even participate, I mean do the trading. If you see, I think the trading profits have been robust for the last two quarters. So that that will continue. That process will continue. Anything unanswered remain
Unidentified Speaker
1.2 to 1.3. That is the numbers
Shri Challa Sreenivasulu Setty
125, 125,
Ankit Bihani
125,
Unidentified Speaker
yes.
Ankit Bihani
And the third question was on the miscellaneous fee income line.
Item.
Shri Challa Sreenivasulu Setty
Fee income, miscellaneous fee income. I think there you have. Miscellaneous fee income is a very diversified income streams but if you really have to put. I think some of the major ones is cash management services, services what we provide and also the mobile banking charges which we collect, account maintenance charges for non savings bank customers, annual inspection charges and host of other charges. This is all diversified income stream. We also adjust it for the GST payment which happens. So that is a net figure which is shown here.
Ankit Bihani
Thank you for the answer.
Kunal Choudhary
Yeah. Hi sir Kunal, over here from Citigroup.
So firstly when you look at it overall in terms of the growth traction, how are we seeing the catch up on the PSL side particularly on SMF as well as weaker section? Because at this pace of growth do we see some shortfall coming through towards the end of the year and that might have a drag in terms of investments on our idf and what are the initiatives being taken if we grow at like 14, 15%, is that pace catching up? Secondly on car, when you look at it particularly, there has been a decline during the quarter on a sequential basis no doubt we are at double digit.
We were growing at 18 odd percent as well. So is it more of a quarter end phenomena and maybe how do we see. Because I think for most of the players we have seen car picking up on the private side. So is it, is there some loss in market share which is happening on the car front? Yeah, so and
Shri Challa Sreenivasulu Setty
I’ll take these two questions and come back.
Kunal Choudhary
Yeah,
Shri Challa Sreenivasulu Setty
because they’re very two important questions which you asked. I want to answer them. The current account we are predominantly seeing on the private side despite you know, actually the significant decline on the government business is virtually drying up on the government capacity.
So in the last one to two years we focused completely on the private side business accounts and that has given us current account uptick. And current account also is not a quarter end or month end phenomenon. We monitor in terms of the daily average balance to a quarter end number and it is very robust, more than 80, 85% which means that your daily average balances are holding up. So this is not obviously there will be a month end and quarter end movement which is unavoidable. But we are very comfortable in terms of this ratio that daily average balance to quadrant balance.
The other one is in terms of psl. Psl. As you grow the book, PSL pressure will come. We have been addressing that in various forms. One is the organic growth PSL targets are given to every business segment including the corporates. We know that, you know we do lot of on lending to lot of NBFCs where they qualify for PSL and the clear monitoring. In fact what we suggested that in NBFC MFR is there or NBFC is there which has got a PSL only funding which is from us, we are willing to give some discount on our rate which means that we would like to prevent the bleeding on the PSLC side and we are broadly are able to do that.
The sub segments which you mentioned definitely are the concerns for everyone, the small and marginal farmers. And because the whole portfolio is very small and Our requirement is 7.5% of the overall portfolio, I think it is creating an imbalance and we also don’t want to aggressively push up the PSLC purchases so that you know, year end PSLC will push up the premium. What we have done is that we have front loaded our PSLC purchases in the Q2 itself. We virtually have not moved to PSL market in Q3 at all. So we do a lot of things in terms of reducing the PSL burden.
Hopefully. I think the new guidelines, there are some positives in the guidelines. We are just evaluating how the PSL movement will happen in our book.
Kunal Choudhary
The reason was as you mentioned like when Chintan was also checking on overall LDR expansion but not improvement in margins which you mentioned is because of working capital drawdown as well as corporate which is loading. Then is it like maybe do we factor in the cost of PSL which is there at the time of doing that business? Because both these segments have grown, grown quite robustly. Like SME is up 10% quarter on quarter, corporate is up like 8% quarter on quarter.
Shri Challa Sreenivasulu Setty
So much of the SME growth is in the qualifying PSL category. So that’s not a big worry. MSME growth is not a worry. But I think on the corporate credit growth we definitely consider various cost factors. While we do primarily look at the risk involved and how do we price the risk, we also look at our cost of funds and what is the alternate mechanism of investing those funds. We have a simple mechanism called risk adjusted return on capital. I think we did mention earlier also. So the capital optimization is also core to our pricing strategy and the PSL cost many a time is worked out on the portfolio basis, not on an individual account basis.
Those costs are definitely accounted.
Kunal Choudhary
And one last question, no plans to tweak MCLR from the current level now. So we are, we’ll hold on to our MCLR rates.
Shri Challa Sreenivasulu Setty
MCLR is a function is an arithmetical calculation. As long as the cost of deposits remain at that level, I don’t think mclr.
Kunal Choudhary
Yeah. So given that incrementally we are not tweaking cost of deposits in any bucket. So then
Shri Challa Sreenivasulu Setty
we are not.
Kunal Choudhary
So then we should consider like MCL with MCLR will remain at similar.
Shri Challa Sreenivasulu Setty
Yeah. So at this juncture neither we are considering any tweaking on the deposits. Alcohol will take the call, but I don’t think any MCLR movement is likely to happen in near term.
Kunal Choudhary
Thank you. Thank you.
Jeet Suchak
I’m audible, right?
Shri Challa Sreenivasulu Setty
Yes.
Jeet Suchak
So Jeet Suchak here from Ambit Capital. So couple of questions. On the employees provision it’s 25% and 32% lower QoQ and YOY. So what’s the reason on that and any calculations on new labor code that will be affecting us?
Shri Challa Sreenivasulu Setty
We did assessment of the new labor code. There’s no noticeable impact because our way structure is broadly aligned with the labor codes. That means no impact except that there is a requirement of providing for gratuity of contractual employees who have completed one year earlier it was five years, it has been reduced to one year.
The net impact is only 16 crores provision which we had to make. So I think we are broadly in alignment with labour codes but we are also looking for the rules regulations to come and if any assessment is required to be done, we’ll do. But I don’t think there is going to be any impact on the labor cost. The first thing you asked in terms of provisions, essentially the provisions have come down and the staff expenses provision for pension, these provisions are based purely on the actual assessment and the discount rates have moved up which means that the requirement of provision has come down.
Jeet Suchak
So run rate will be in the similar lines of Q3. So it’s around 3,
Shri Challa Sreenivasulu Setty
4 remaining Q4. I think run rate should be similar and
Jeet Suchak
going forward also this should be the run rate
Shri Challa Sreenivasulu Setty
next year we will assess because this actual assessment happens every quarter
Jeet Suchak
but it’s not a one of actually
Shri Challa Sreenivasulu Setty
there is nothing unusual movement in that provisioning and
Jeet Suchak
on the second. So how much of the 100 basis point rate cut that previously happened has been translated in the yields? How much is the left on that side and what’s the current MCLR book and how do you see the repricing of latest 25 basis points that will happen in our yields?
Shri Challa Sreenivasulu Setty
You asked so many things together, please.
So MCLR book. See we have. If you divide the whole book we have 50% MCLR and fixed rate and 50% EBLR and other benchmark rates. That means around 45 to 48% book is floating. The rest is not really floating. MCLR are fixed rate.
Jeet Suchak
So a full repricing of the 100 basis point is done. We can assume that
Shri Challa Sreenivasulu Setty
100 basis point
Jeet Suchak
or last hundred basis point and the latest
Shri Challa Sreenivasulu Setty
book. Anyway the complete 125 basis point has been passed down
Jeet Suchak
on MCLR. Is there any
Shri Challa Sreenivasulu Setty
MCLR could be? I don’t know, I don’t have the number. We’ll give you that
Jeet Suchak
and Let us be 25 basis point rate cut.
How do you see yields affecting going forward? Q4 and FY27 the
Shri Challa Sreenivasulu Setty
previous rate cut.
Jeet Suchak
Yeah, the 25 December
Shri Challa Sreenivasulu Setty
December rate cut. I think it will take some time to transmit in the deposit. But you have not cut the deposit rates.
Jeet Suchak
No, I mean on the yield side only.
Shri Challa Sreenivasulu Setty
Sorry,
Jeet Suchak
on the yield side only yield.
Shri Challa Sreenivasulu Setty
On yield side I think it is about 800 crores or something. And overall full year basis margins? I think one basis point or something what we have worked out.
Jeet Suchak
Okay, so trajectory anything of 2020.
Shri Challa Sreenivasulu Setty
Sorry,
Jeet Suchak
trajectory of the passing on the heels of the 25 basis point.
If you can share thoughts.
Shri Challa Sreenivasulu Setty
Sorry, I didn’t get your question.
Jeet Suchak
Okay, I. I’ll get back then.
Nitin Aggarwal
Hi. Hi sir. Nathan Agarwal from Motilal.
Shri Challa Sreenivasulu Setty
Yes,
Nitin Aggarwal
congrats on a strong quarter. And so my question is again around the cost. If you look at like last two quarters we have been reporting very controlled cost growth. The OPEX this quarter is like a slight decline and we are now talking to further raise the loan growth guidance. So how do you see the cost income ratio to play out over the next two, three years?
Shri Challa Sreenivasulu Setty
So the growth credit growth is not substantially going to enhance the costs or the operating costs at least maybe you know the interest costs.
We would like to manage the interest cost as I mentioned in terms of moderating the cost of deposits, focusing on the casa. So our objective is to keep the cost to income ratio below 50. I think that guidance we had earlier given. We are sticking to that guidance.
Nitin Aggarwal
Right sir. And second is on the ROA wherein we have talked about to maintain work PERO guidance. Now that if I look at nine months we are tracking higher than that. So will you want to review that and any further levers if you want to highlight which can take ROI higher in the coming years?
Shri Challa Sreenivasulu Setty
I think we still stick to that 1% guidance.
I don’t want to jump the gun at this juncture. It’s playing out well and we also are mindful of our RWA density. I think this is something which we are very conscientious about that which means that you can’t have a jump in the ROE. We want to be consistent on the ROE front. I think the guidance will remain at 1%. What is the other one you asked?
Nitin Aggarwal
Just any levers? I think
Shri Challa Sreenivasulu Setty
there are quite a few levers But I think the levers point out that we will maintain this 1% guarantee guidance through the cycles. I think that’s very important too.
We are not giving the guidance only for one quarter or one year. We said our guidance is one person roe through the cycles.
Nitin Aggarwal
Thank you so much.
Pritesh Bumb
Hi sir.
Shri Challa Sreenivasulu Setty
Yeah.
Pritesh Bumb
So Pratisha from Dam Capital. Sir, one question on private Capex. Last time you had made a comment that it is improving and with some of the corporate growth revival do you think it will further pick up? And what is our pipeline in terms of corporate book ahead?
Unidentified Speaker
So the pipeline is 7.86,000 crores with a sanction but not displaced about 4.4 lakh cr and the your without sanction pipeline 3.45.
That’s a total undisbursed plus pipeline. The pipeline pure pipeline is 3.45 lakh crores in terms of growth in the corporate side. Yes you are right. We are seeing pickups and two new things which will help us next next year. One is the announcement by RBI on REITs. That’s a market so far we were not allowed to. That’s about A. It’s a large market and growing fast so we hope to develop something there and also M And if the guidelines finally when they come we hope to start doing that as well. Those two will help us to give us more basis to increase the corporate book and in a better margins because both these segments are better paying some of the other sectors and we also seeing other pickup happening in the corporate side especially on in power including renewables, metals and also infrastructure.
operator
Due to positive time we will now take up a few questions coming in through the online webcast which will be addressed by the Chairman. Sir,
Unidentified Participant
this first question is Bunty Chawla Loan growth guidance for FY27.
Shri Challa Sreenivasulu Setty
FY27 we said that we’ll give the guidance somewhere in Q1 but for the current quarter I think we have revised our credit growth guidance from 12 to 14% to 13 to 15%. Kanika, do you see credit growth sustaining with such wide credit deposit growth gap? I think we have had a long discussion on the credit growth and we do not see as I mentioned Any challenge and we have adequate liquidity buffers as well as capital buffers.
In our book
Unidentified Participant
Credit Growth Outlook Akhilesh Gupta
Shri Challa Sreenivasulu Setty
the credit growth for the bank for Q3 15.14% and as I mentioned we have revised the earlier guidance from 12 to 14% to 13.15%. 13 to 15% outlook on NIM I think is broadly addressed. We are still sticking to our exit NIM of 3% for the for the year and 3% through the cycles. Karthik, what would be the guidance for ROA? I think that again we have answered 1% through the cycles. In which area of business do we have earned more? I believe we want everywhere I suppose.
But I think some of the lines of business are more profitable like Express Credit. The portfolio of 3.5 lakh crores definitely gives us yield pickup. But I also mentioned in terms of the ecosystem improvement in the corporate banking side which is also contributing to the income levels. And one one of which we did mention is in terms of the dividend payout from the SBM mutual fund.
Unidentified Participant
Sangeetha, could you give color on the other income which element showed growth and is sustainable?
Shri Challa Sreenivasulu Setty
I think other income, Fee income, Treasury, Forex all have shown growth. CVE income I.e.
customer value enhancement income also had shown significant growth and we believe that it is sustainable.
Unidentified Participant
Lavish. What are the components in miscellaneous income?
Shri Challa Sreenivasulu Setty
I think we have answered this miscellaneous income segment but you are talking about 5000 crores. I think in this there is a 2200 crores from the mutual fund and recovery from written off counts about 2,600 crores. These are the two major elements in the miscellaneous income. What? What was the interest on IT refund during the quarter? I think that was answered by DMD Finance. It is 769 crores Q3 and 40 crores in the previous quarter.
Unidentified Participant
Kiran Shah what is the yield on gold loan portfolio? Is ticket size average LTV at origination and at end 2025 December 25.
Shri Challa Sreenivasulu Setty
Yield on personal gold loan portfolio as on 31st December is 8.61% with average ticket size of 2.64 lakhs. LTV. I did mention that it is 56.57% in December 24th which has come down to 51.18% in December 25th.
Unidentified Participant
Vishal Gupta GNPA and NNPA ratios have improved further this quarter. Which segments are driving this improvement?
Shri Challa Sreenivasulu Setty
I think overall improvement in all the segments is driven of course corporate has no asset quality issues. Corporate NPA has grown down by 1888 crores.
So foreign offices also have shown Decline in the NPAs.
Unidentified Participant
Param, can you give a breakup of occup pool between Retail, Agriculture and MSME?
Shri Challa Sreenivasulu Setty
SME is 34,000, Agriculture is 7, Retail is 7,000 and Corporate is 1.10 lakh crores.
Unidentified Participant
Rohit, what has been the impact of the new labour codes?
Shri Challa Sreenivasulu Setty
I think we did make mention on the labour code impact. It is not significant at all. It is just about 16 crores provision we had to make to comply with the norms. MB Mahesh, could you walk us through what is the total gold loans in retail SME and agriculture SME? We have not a much of portfolio.
Agri gold loan is 1.44 lakh crores and personal gold loan is 86,000 crores. Thank you. I trust all the questions have been addressed. We will be happy to respond to other questions in offline mode. Let me end the evening with thanking. Chairman SIR, MD SIR DMD SIR, top management team, senior officials of the circles and various offices connected through webcast, Analysts, investors, Ladies and gentlemen, we thank you all for taking time out of your schedule and joining us for the event to round off this evening. We request you all present here to join us for high tea which is arranged just outside this hall.
Thank you. Thank you so much.