Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Uco Bank (NSE: UCOBANK) Q3 2026 Earnings Call dated Jan. 20, 2026
Corporate Participants:
Ashwani Kumar — Managing Director & CEO
Shri Rajendra Kumar Saboo — Executive Director
Vijay Kamley — Executive Director
Analysts:
Unidentified Participant
Ashoka Jameera — Analyst
Unidentified Participant
Sushil Choksey — Analyst
Pashmi Cheda — Analyst
Presentation:
Operator
Good afternoon everyone and welcome to the Yupo Bank Q3FY26 earnings conference call. Today from the management side we have with us Mr. Aswini Kumar, MD, CEO, Mr. Rajendra Kumar, Executive Director and Mr. Vijay Kamley, Executive Director. With this I hand over the call to MD sir for his opening remarks post which will have a Q A session. Thank you. And over to you sir.
Ashwani Kumar — Managing Director & CEO
Thank you. First of all let me welcome all our analysts and investors to this post December Results con call. With me I have our EDs, our corporate general managers, CFO, CRO, CGMIT, CGMHR all are available. First of all let me I wish you all Happy New Year. And now I’ll just give you a small brief of the financial performance of the bank. Though we have already uploaded the presentation, I believe that every one of you have gone through but brief about the results of the bank I will like to share with you all.
So whereas business growth is concerned, bank’s business grew by 13.25% on a YoY basis which was backed by deposit growth of 10.64% and advancing growth of 16.74%. Deposit growth was backed by growth in CASA deposit by 11.49%. Within CASA, saving grew by around 10% and current grew by 23%. Our CASA ratio improved by 44 bips and to 38.41% and we have been able to maintain our CASA in the range of 37 to 38% consistently for last 78 quarters. In advances the growth of 16.74% was backed by growth in the RAM segment which increased improved by 25.86% and that was backed by growth in retail advances by 24.69%, agriculture by 23.56% and MSME by 23.56%.
In MSME we have seen that last three four quarters we are growing more than 20% consistently. Within retail housing grew by 19%, vehicle grew by 73% and ran share in the overall credit mix works out to be around 66%. So far as NPA is capital adequacy of the bank is concerned, Capital adequacy ratio of the bank stood at around 17.543% with Taiwan capital 50 15.41 and CET1 at 15%. If we include this nine months profit also then our capital adequacy ratio stood at 18.67%. CD ratio of the bank has been improving on a quarter on quarter basis.
In March 23rd it stood at around 65%. Now in December 25th it has reached to 78.56%. So every quarter there is an improvement in our CD ratio. Coming to profitability, operating profit of the bank for the this quarter stood at around 16.1680crores registering a growth of 6% on a YOY basis and net profit was 739 crore registering a growth of 15.65%. During this period NI net interest income grew by 11.2527% on a YOY basis and on nine month basis it grew by 9.38%. Net interest margin improved to 3.08% on the global and domestic.
NIM stood at 3.27% as against 3.03 global and 3.23 in domestic. Last quarter our cost of fund also improved by 25.7bips came down to 4.48%. Yield on advances stood at 8.06%. Cost of cost to income ratio that is an important parameter. It has again improved to now it has come. It has come down to 52.20%. It is a 330 pips reduction on a year. On year basis return on asset which is important parameter. It has improved to 0.83. Last quarter it was 0.71. Fee based income also grew by around 30% on a YoY basis and on nine month basis it grew by 22.46%.
Then coming to asset quality, gross NPA has improved to 2.41% as against 2.9191% that is a 50 pips reduction on a YOY basis. Net NPA also improved to 0.36 as against 0.63 that is 27 pips reduction on a yoy basis. PCR improved to 7.97.32% and tangible PCR also now stand at 85.47%. Slippage ratio for the quarter improved to 0.85%. Slippages were mainly from the MSME retail and AG and not from the corporate segment. So total slippage is 419. Cr were from the RAM segment itself and that too majority.
The slippages were less than 10 lakh rupees accounts. If I have to look at sma more than 1 crore. We always in every quarter declare more than 1 crore SMA book. 1 crore SMA book of the bank SMA012. All three segments put together is only 1605 crores. That works out to 0.68% of the total group. And if you have if I look at SMA 1 and 2 that is only 848 crore and that works out to point less than 0.5% of the books. And within the SMA book if I have to look at the corporate SMA, SMA 1 and 2 in the corporate segment it is only 316 crore coming to recovery.
Recovery during this nine months period is total recovery is 2215 crores and against a target which we have given guidance we have given of 2200-2700 crore in the during these three months the recovery this quarter was 383 crore and last quarter it was 366 crores. So that is on the recovery front our recovery and upgradation is always in excess of the slippages during the quarter. If I have to look at the efficiency of the in bank business per employee improved to 26.12 crore in December 25 as against 23 crore in December 24.
Similarly business per branch also improved to 166.32 crore as against 149.74 crore in the last financial year. As far as some provisions which bank has been carrying there is a buffer or floating provision. You can say or you can say that forward looking provision towards ECL we have already started making the provision this quarter we have made additional provision in the standard book. So now the overall provision which we carry forward looking provision is 1252 crores which includes 530 crore of COVID looking provision which we have made earlier.
So total provision towards ECL today stands at 1230 52cr. As far as LCR is concerned 110 112% LCR is maintained by the bank. These are all about the performance of the bank. Now few of the initiatives which bank started this year and previous year we have already completed those initiatives. Few of the initiatives bank is now planning in this year also I’ll just highlight few of them. Previous year we started the digital transformation project Bhan bank has already implemented. More than 30 journeys have been made live and which in retail agree msme and liability segment as well.
So total 15,000 around 915,900 code of digital business book has been built by the bank and of that more than 2 lakh customers have been given credit through digital means. So as through STP Journey 2 lakh customers have been given loans by the bank. Today when I speak more than 50% of our FDs are made digitally loan against FDs more than 50% is happening digitally. More than 61% accounts are opened through tab banking digitally and mobile banking users have also increased four times over last two years.
Now it stands at more than 64 lakhs. Bank’s mobile app rating continues to be at 4.8. Which is one of the best mobile app rating of the bank. WhatsApp banking we started last year. Now we have reached. We have. We are giving 47 subsidy through WhatsApp banking. 8 regional languages plus Hindi and English. So total 10 languages are there in WhatsApp banking. In almost 1 less than 1 year 17 lakh customers are now using WhatsApp banking. In addition to this CBDC has also been implemented. PMS has been implemented.
Learning and development center of excellence has been made. Then new treasury solution which we were talking last year that has gone live this quarter. Then data center consolidation also we talked last year. So this the last quarter that has also gone live. Now data center consolidation at Kolkata has happened. Then API gateway also have been implemented. We have already completed our automation of ALM TPM solution. Application performance monitoring system has been implemented. And in order to improve and to gauge the level of customer service and customer resolution previous resolution mechanism.
We have started a feedback mechanism also where customers are giving feedback about the our services by our staff members. That is also now happening. Now mule hunter and i4C integration is also completed. So these were the initiatives which we had started and they are already completed. Now what we are planning is Omni channel experience. That Omnichannel project is already on way. In next year it will be completed. Cash management services Then Supply chain finance, Robotic process automation, Forex travel card, CASA back office, DMS IM secure cyber security.
Then 10 more digital journeys are in pipeline in the project. Then we are. Last year we started we revamped our call center. Now we are planning to make call center as a profitable center. By using call center for the digital services like digital cross selling of the products and digital journeys also as far as IT expenditure is concerned we have kept a budget of more than 1000 crore. Around 700 odd crore has already been announced spent. So next quarter will be. Hopefully we will be completing the digital budget.
IT budget also. Thank you very much. And now we are available for your question answers. We are open for that. Thank you.
Operator
Thank you sir. We’ll start with question and answer session. Those who have any question please raise your hand. The first question is from the line of Asokaj Mera. You have been unmuted. Please go ahead with your question.
Questions and Answers:
Unidentified Participant
Yes.
Ashoka Jameera
Can you hear me?
Ashwani Kumar
Yes. Yes, now we can hear you
Ashoka Jameera
Sir. Compliments to you Ashwini sir. Sabuji, Kamla Sahib and The entire top management and the entire management of Yuko bank for a fantastic results even continuously I mean maintaining good results quarter after quarter and this quarter is no exception. So my compliments to you for the same. In fact generally there was a concern on the, you know credit growth in most of these banks bearing some 2, 3 banks but in your case you excelled very well on the credit also 10.73% only in nine months against your whole target of the whole year of 1113-14%.
So of course on the deposit side in nine months we are only 5.63%. So my first question is sir, on the credit growth when you already achieved a handsome growth of almost about 11% in nine months why don’t you just revise the overall years credit target because your CD ratio is still comfortable, good LCR and deposit also I am sure you will meet the target of 10 11% which has been given. So this is my first question and sir, I need your comments and feedback on this please.
Ashwani Kumar
Yeah, thank you. Thank you for your compliments. And you see the bank has been consistently showing the stable growth in each of the parameters quarter after quarter. So far as credit growth is concerned if you look at on a quarterly basis YUI basis we are growing more than 15%. But on a conservative basis we always keep our guidance 12 to 14% because in this current market when though we are growing well in RAM but in corporate if you look at our corporate credit growth there is slight muted growth in the corporate segment that that is basically because of some pricing issues.
If you go deeper into the details you will find that our PSU exposure has come down by around 6,000 crore. So if you look at our corporate growth corporate book so 6,000 means around 8 to 9% of exposure. 8 to 9%. So had that been our corporate credit growth would have been better and our overall credit growth would have been much better. So looking into all those things we always keep our guidance within the trend slightly higher than the trend rather I will say because when we look at the economy and the credit growth in the overall system we don’t want to outgrow beyond a reasonable margin.
So that is the reason we are keeping our growth targets within. But every quarter if you see we have been surpassing our target so we expect that we will be achieving and surpassing that credit growth target also. But we’ll continue to keep our credit growth target of 12 to 15%. 14%. Yeah.
Ashoka Jameera
Why? I said sir that because our base is still comparatively small, you know in the size of near to the say bank of Maharashtra and some of the other banks like so here there is a lot of scope and you got a strong team, strong management,
Unidentified Participant
Strong
Ashoka Jameera
Balance sheet. Also your provisioning is almost about 97, 98% already there. And I think the current underwriting book is also very good as I see. So anyway sir, now coming to this. You have already talked about ECL provisioning of 1,252 crores of this. But sir, what will be the total quantum of the the ecl? If you have done some calculation and whether you are going to completed in 1 or 227 and 28 only or you are going to also take the benefit of that five years sir, in. That
Ashwani Kumar
See if you look at our back of the envelope cash calculations which we have done it should be in the range of 2500-3000 crore currently as per our estimates so around 50% of that. If I take a lower band of 2500. So 50% of that we have already built in. Right. And I expect now we have still five, six quarters rather because in June 27th we have to.
Ashoka Jameera
Yeah, go
Ashwani Kumar
Live. Right. So we have six quarter this quarter we have also again built around 200 odd crore towards ECL. So going by this trend, if profitability supports, everything supports. I believe we should be near to our requirement by the time it is implemented. We should be near to. And if at all not then probably within one year. I think we should be. We should be in a position to achieve what is required to be achieved. So I don’t think that bank will need longer period of 5 years time which is required, which is permitted because we have already started building and I expect that by June we should be near to the numbers required.
Ashoka Jameera
My second question is on the impact of the. This labor code. New labor code. Have you calculated like. Because I don’t find in this quarter any hit has been taken. Rather the. I think the. The. If you look at the employee cost which is lesser than the last quarter. So how much impact do you see? Is it significant or it’s a small impact which you are in the normal course going to pass on it.
Ashwani Kumar
It’s very insignificant because we have a very small number of contractual employees. We don’t have a large number of contractual employees. It is very insignificant. May not be even 25. 25 lakh. May not be 25 lakh
Ashoka Jameera
Sir. My, my. The next question is on the capital raise. You had done the QIP 2000 crores in I think the March 25 quarter. And still the government holding is very very high 90.95%. So is there any plan in the immediate future? You must have got already the approval I suppose. But are you, are you planning to raise any. I mean doing any further QIP or government is going to planning for any OFS to reduce the government holding.
Ashwani Kumar
See the. There are two ways. One is qip, one is ofs. I think OFS is already government is planning two banks. It is already done. I think two, three banks are there in the pipeline. We may see that anytime they will there will be OFS also. So by that it will come a little bit lower as far as requirement of capital is concerned. You have. I have already shared that we are adequately capitalized. Otherwise if we add our nine months profit even with these profits itself we are more than 18 cr. But nevertheless we have to achieve the requirement of SEBI also by bringing down the shareholding of the government to 75%.
So we have already taken board approval, AGM approval, EGM approval or approvals are in place at the right and opportune time will come to the market for QIP also we have taken approval of 2700 crore from the board.
Ashoka Jameera
So my last question on in this round is on the treasury book. Some color on that because our treasury income though in this quarter is little better than the last quarter. But overall if you see the treasury income contribution is coming a little down in the overall banking profitability. So going forward how do we see our treasury behaving?
Ashwani Kumar
See if you look at our treasury book we have been maintaining this book almost at the constant level. We are not outgrowing and if we look at March from March little bit we have increased from September rather after June March to June we have not grown our treasury book that was within the range itself because that time the yield was low. After June the yields have again spiked. So we have started building up in some SDLs and all that. So wherever we are getting opportunity through OMO we are exiting also and we are buying OMO also.
So if you see our yield also is improving and our I think modified duration is around in the range of 3.6, 3.6 to 3.6. So we are well placed as far as treasury book is concerned. We don’t foresee any challenge as far as income from the treasury book is concerned because very cautiously we are investing and re liquidating the treasury portfolio.
Ashoka Jameera
Sir, very good sir, thank you very much for having replied to all my queries in this round because I suppose many other people also must be waiting though I can discuss for another 10 minutes on some of the other points but I will give opportunity to others. Sir, thank you very much and all the very best and thank you. Let’s see that you grow much much higher than what the targets which you have given.
Ashwani Kumar
Thank you sir.
Operator
Thank you. Participants, please raise your hand for the question. We have a next question from the line of Sri Shoksi sir, please go ahead.
Unidentified Participant
Yes, I think you need to unmute. So Sri sir, please go ahead with your question. I think there may be some network issue or something.
Ashoka Jameera
You can take somebody else also. Otherwise then if Sushil is taking some time. Yes
Operator
Sir, please go ahead with your question if you have any further question.
Ashoka Jameera
Yeah, yeah. So. So sir, my third in this round you have got. I mean your. In this quarter you perform very well on the NIM front also the name is 3.08. As against I think your guidance of 2.9 or 3. So going forward even in the last. I mean going back even in the last quarter it was 2.9 and now 3.08. So going forward with all the kind of impact of the live earlier liability mismatch and other thing and the deposit getting into in the picture because now the I think button will get reduced. So do you think that the NIM will further keep improving in the IR improve in the coming quarter to finish a good FY26?
Ashwani Kumar
I think Nim will continue to be in this trajectory only because if you look at the pace of reduction in the deposit rate that has that is not in line with the reduction in the repo rate still deposit is at a very reasonably high rate not at lower rate. So I believe that the NIM should be in the range of this trajectory only going forward in the next quarter.
Ashoka Jameera
Okay sir. Sir you in the case of this SMA though the SMA numbers are very much under control and where rarely you see this kind of only 0.68 or 0.5 for the corporate book the entire SMA including I think in your case even SMA 0 also. But you said that that corporate SMA was around something around 300 crore or something. Isn’t it in the SMA 2 316.
Unidentified Participant
So. So is it.
Ashoka Jameera
Is it 1 or 2 chunky, I mean bigger accounts or which have slipped to SMA 2 or it’s A. It’s a. I mean variety of the corporate account. Sir,
Ashwani Kumar
This is not SMA2. This is all SMA012 put together is 316. So this is not only 2.01to put together.
Ashoka Jameera
I said 012 put together and, and there are very various corporates. Not, not some. Sorry, sorry,
Ashwani Kumar
Sorry, sorry, sorry, sorry. 3. 316 is corporate only corporate SMA 2. Sorry. Yeah, that
Ashoka Jameera
Is why I raised that question. The
Ashwani Kumar
Total is 511. SMA 2 is 316. See, it is not a. It’s not a one or two account. There are few accounts which are in SMA 2 but if you look at the SMA 0, SMA 1 is 0. So there are certain accounts which are there in SMA 0. They will. They will come back to SMA 0 because of some reason they have come to SMA 2. No, no. By
Ashoka Jameera
The, by the time like we are already one month. You know, like we are in January. So whether this SMA2 was under control, I mean regularized or. Okay, so no chance of sleeping into. No,
Unidentified Participant
Not. Not sir,
Ashoka Jameera
Into the npa.
Unidentified Participant
Yes, yes.
Ashoka Jameera
Can we discuss something more? So we’ll
Operator
Take the next question from the line of.
Ashoka Jameera
Okay.
Ashwani Kumar
Welcome. I think he’s not able to.
Operator
We have already unmuted him.
Ashwani Kumar
He’s login from 2.
Sushil Choksey
Sir, good evening. Congratulations to UCO management for very stable number.
Ashwani Kumar
Good evening. Good evening. Thank you.
Sushil Choksey
Thank you. And sorry for all the hiccups which we are having with various technology platforms. Sir, seeing our result, if I have to look at growth which is the core understanding which we need to have in the current economy, PSU banks is the flavor of the season in stock market as well as on credit performance. What we should look forward from Yuko in the quarter to come by and for the year of 26.
Ashwani Kumar
See if you look at our growth more particularly credit growth and you look at the composition of credit growth, the proportion of each segment in the credit growth and not only in December quarter but previous quarters as well. So every quarter like I’ll take example of retail. So retail is growing more than 20% for last quarter 4, 5/4 and within retail housing is in the range of 18 to 19 to 20%. 18, 19, 20%. Car loan growth is 40, 50, 60, 70% in this range. Car loan growth is there. So retail is growing.
Each segment is growing and both the segments major components of retail housing and car are growing in proportion. So there is no challenge on the credit growth concerned. And. And the subsequent quarters also will continue to grow in the same way because there is a set pattern and stability is there. It’s not that one of quarter we have grown and one of quarter we have not grown similarly Agree also agree also in quarter quarter consistently we are growing. This quarter growth was around 23%, 24% and previous quarter it was in the range of 2017, so 17%, 20%, 23%.
Similarly MSME for last three quarters is more than 20%. Prior to that there was some slowness in the msme but last four quarters it is 18%, 20%, 23% plus 23% and similar growth we can see in next quarter also. And how and why this growth is coming because last year we revamped our underwriting standards. We started ag retail hubs and MSME and agri hub. Now the decision making is happened centrally. Our t has improved as a result. The quality of underwriting has improved and service delivery time has also improved.
So that that is leading to the credit growth in various segments. So next quarter I think 24 in the fourth quarter similar trends we will see and we will achieve our guidance which we have already given at the start of the financial year.
Sushil Choksey
Sir, if we sustain our RAM growth with retail growth as a part of the story. Our margins in home loans, how are margins on auto loans and how are margins on the other products where we are likely to be whether it’s education or any other loans where we think we’ll grow? Well, I understand that home loan in India is not a. I mean there is a big market yet to happen. Looking at the urbanization and development, education within India itself can become big with all the noise which is coming from Mr.
Donald Trump. So keeping in mind what product is very profitable, I understand second hand car market. You are far ahead of many banks and I think leading PSU banks also have opened their eyes that Mr. Ashwini Kumar is doing well at Yuko bank on this product. Let’s look at it. So can you highlight all this product what will lead to a betterment compared to competition where we can grow faster?
Ashwani Kumar
Yeah, if you look at our first. Let me talk about. You talked about margins. Our growth has come mainly from dial segment. Even then our margins have improved. If you go back to the history, our margin used to be 2.8% so now we have already crossed 3 and we are consistently above 3 in last quarter. I think 3.03. This quarter 3.08 we have improved our margin. So we are growing each segment and we are growing profit in profitable segments. If you look at the segment where we are growing car loan growth, if our growth is around 70% we have revamped our entire product profile of car loans, education loans and home loans.
So Agriculture loan MSME more than 30 products we have launched in last two years time for various schemes to cater to the requirements of our MSME customers. So the name is coming from. Better name is coming from MSME segment. Even education loan, secondhand car loan, even car loan also because when we take car loan we have the. We have the opportunity of taking his CASA account also. So salary account, current account in case he’s a businessman or family accounts. Similarly. So we don’t look at purely a transaction of housing loan and car loan.
We look at the whole bouquet of products which we are able to offer him and generate some. Some revenue by way of cost reduction through CASA or by cross selling of the product. So that is the. That is the way you. You can see that many of the bank. You can see there is a Kasa reduction over a period of time, right? But if you look at our bank for last I think March 23rd onwards we are continuously maintaining our CASA ratio in the range of 37 to 38%. So we have not seen decline in our CASA ratio except in one quarter it was 36.91.
But again next quarter it was 38. So overall the strength from where the margins are coming through cross sell also through generating their CASA accounts. And we’ll continue to explore and deepen the relationship with our customers. And another important thing which is adding to our margins is our digital journeys. In last one year itself we have digitized 30 journeys and we have built a book of around 15,000 crore in digital journey. More than what 50% FDs are happening online through the mobile banking and loan against fd.
So all this is adding to reduction in my cost also. So that is the way on a progressive basis we are trying to improve our cost also and income also by combination of various products and services.
Sushil Choksey
Sorry, reply to my question. I accept that you are able to master CASA also along with selling retail products on a hypothetical or reality. On an average basis if I’m generating 100 loans, how many accounts are converting to other products?
Ashwani Kumar
See, our endeavor is to get at least one more product from each customer. Our endeavor is there but definitely not every customer. Maybe 40 to 50% of the customers we are able to onboard on some other product.
Sushil Choksey
Okay, now looking at geographies where we are stronger compared to Pan India basis. How is the behavior on acceptance of our new products, existing products and saving products? Are we able to penetrate better compared to where we stand today? Or the outlook is getting better. Or we need to enter with new geographies and new branches for expansion.
Ashwani Kumar
See if you look at our strength currently more than around 30% plus branches are in east and northeast and similar is the trend in north. So far as expansion is concerned, we are more focused for expansion towards western and southern part because there our presence is slightly less and they are the more contributing states in the GDP of the economy. So that is one strategy we are working that we are planning to open branches in those geographies where the GDP contribution is higher and we also look at the PIN code, wise deposit and credit profile of the area while we open the branches.
Number one, Number two, as far as the penetration of products in the areas where you have strength or not, that itself speaks about the quality of our CASA which we have maintained our casa con had we not penetrated in those areas, we could not have would not have been able to maintain our CASA in the ratio range of 37 to 38%. We have revamped our entire saving or in current account products. Entire saving. And we are more focused towards a salary. Recently the Ministry of Finance has announced a comprehensive salary package for the central government employees where our bank is also participating.
And I will be opening now more and more salary account of various central government employees as well. And the benefits will continue to come to the bank. So that is the way we are working and where we have strength, we are giving better products also to those areas. Apart from product, the differentiator I think will be more important is the customer service where and the ambience of the branches. In these two fronts also bank is continuously working to see that our customers get better quality of service and quality of resolution of their gradients also improves.
So on these fronts are also we are working.
Sushil Choksey
So answering my. To my question, you already elaborated that service and digital both are key towards whether to sell product or attract customer for deposit or any other services.
Ashwani Kumar
Yes.
Sushil Choksey
How much spend are we likely to do on digitization over a period other than what we have spent over next 12 to 24 months? I know it’s a repeat question from every analyst.
Ashwani Kumar
No, no, no, no, no, no issues, no issues. We are more than happy to answer. And second is. Yeah, yeah. Customer
Sushil Choksey
Service, human resource empowerment and decentralizing lot of processes. Centralizing the tag would be important. But decentralizing, sourcing when you are looking at expansion, what what kind of unique measures and what kind of spend are we doing so that we garner those customers and our performance gets better than where we stand today.
Ashwani Kumar
Okay, going by the first question, I think about the IT spent IT and digital spend this year we had kept a budget of around 1100 crore and around 700 plus crore is already spent Next year we are all teams are already working for the plan for the next year. I believe the next year because now majority of the projects which we thought of in last three years almost are nearing completion but still there is a lot of scope for further improvement and enhancement in our existing IT infrastructure also.
And I believe that next year should also it should also be in the range of 800 to thousand crore because many our projects are still in pipeline Like I talked about various projects which we are thinking Omnichannel, Forex, PC Forex card, our near doctor we are planning and then supply chain we are planning cms, we are planning CASA back office dms so on Cyber security also NAS tools we are planning and we are planning to convert our call center into a profitable center through digital use of digital journeys through call centers.
So there are number of initiatives Robotic process automation is also in the plan so number of initiatives are there. I think it should be in the range of 802,000 crore in the next year itself. Indexer also
Sushil Choksey
Sir east is well known. For resources Whether it is some of the agri related specifically or even in minerals. The world is changing minerals which is very visible. The country which has now India also for becoming a big manufacturing hub we need our captive resources and there’s a lot of demand likely to emerge. In the part where you have good focus can you indicate if people are approaching you from for some kind of working capital or term loan facilities where resources companies are concerned.
Ashwani Kumar
See there we have not seen much traction in this part. We have not seen ads yet. Maybe in the next quarter or so we’ll get some good proposals in that till date we have not got any bigger big ticket proposals in this area.
Sushil Choksey
So how’s our international book shaping up?
Ashwani Kumar
International book is steadily increasing I think deposit if you look at our deposit growth in the international is around 18. Growth in overall overseas deposit is concerned and domestic sorry overseas advances around 12% growth. Is there.
Sushil Choksey
Published numbers. I’ve seen it. I’m seeing from a future point of view when the fight is for lowering interest rates. At the same time there are very many challenges on each geography wise based in Singapore and Southeast Asia predominantly or Gift city. How is demand coming for those kind of loans on a fully hedged basis or international market can we have a good growth Because Indian management are also looking at opportunities of acquisition.
Ashwani Kumar
See proposals are coming and the only challenge is in the pricing. So that is the we are taking a very calculated call where we have a good pricing and some margins are there so that we are Able to generate revenue for the bank. Only those proposals we are taking. That is the reason I think you can see that growth is around 12% only in the advances so far as sources from the overseas market concerned. We are raising resources in the overseas markets. That is not a challenge. But lending at a profitable margin is a challenge.
But we evaluate each and every opportunity. And also the repayment if it is coming at what rate the earlier loan repayment is coming at what rate the new loan is giving, whether it is giving some a better margin from the previous loan. So all those avenues we consider before taking a call to go ahead to say no to any proposal. So opportunities are there. Opportunities. There is no challenge about the opportunities. And with this I think opening up of the M and A also new opportunities will be there.
And I expect the margins maybe better in the times to come.
Sushil Choksey
So my next question to Sabuji. What is the outlook on G SEC based on current yield?
Shri Rajendra Kumar Saboo
So basically you know the markets, nobody can say anything about the markets as to how they will behave in the future. But yes we have seen that GSEC yields have strengthened in the last quarter also. And currently we are means in this cycle. We are at the upper end of the year. We may see further little bit maybe. But I think this will remain in this range only because RBI has been taking good initiatives. Many many new things they have done means OMO has been brought and then again they are coming with VRR and all those things to manage the liquidity.
So the liquidity RBI is watching for and we get good support from them. So I think the yields on G6 will remain in this range only where it is moving for the last one quarter at least in the last one month. So we don’t see much means movement into these yields for the time being. Because we know that RBI is having neutral stance and inflation has at least means been in the range of the RBI. And any action further going forward will be on only on the databases. So which type of data comes on the growth front and and on the inflation front that will decide the future course of action.
So we are also in the neutral position as of now as far as the yields are concerned.
Sushil Choksey
Next question to Kamla sir. How much is unavailed credit from sanction today and what is the pipeline for the quarter specifically for corporate credit?
Vijay Kamley
Yeah, yeah. So in case of the Corporate credit almost 4 to 5000 crores are in the unavailed in pipeline. Almost 8 to 9000 crores in the pipeline. Total 10 to 12,000 crores in the. Available in the corporates
Sushil Choksey
And this is credit which you have sanctioned allowing the low yielding advances to be shredded and then new replacement or existing customers borrowing new I suppose.
Vijay Kamley
Yeah. It will be case to case basis sir.
Sushil Choksey
So what is the exposure between. I may be getting little into specific but SIDB, Nafid, Nabad.
Ashwani Kumar
Nothing. 000.
Sushil Choksey
Congratulations sir. I’m happy that one side you’re not. Lending to them
Ashwani Kumar
All exited IBP IBPC also exited total zero
Sushil Choksey
Sir, I would. Take it as a good news that whatever your result are if there’s no IBPC, there’s no CDB, there’s no Nafid. Government may not like that you are lending at 6.15 and 6.25 but if you’re yielding any assets at 8 and a half and 9% it’s a very good news and congratulations to team Yuko and best wishes for 26.
Ashwani Kumar
Thank you. Thank
Sushil Choksey
You.
Operator
Thank you. We’ll take the next question from the line of Pashmi Cheda. You have been unmuted. Please go ahead.
Pashmi Cheda
Hi sir. Hello. I just. I have one question. What is the quantum of MCLR cuts that you have taken so far in the year and what is how much do you expect to cut in the next 4-5/4
Ashwani Kumar
MCLR? I think 9.5
Vijay Kamley
30
Ashwani Kumar
Basis points cut is already in place and expected cut. I can’t tell you because it is to be decided by Alcone monthly basis. Next month we’ll have on 10th again alcohol 8, 9, 10 because 10th is our date. So if you look at every every month there is some reduction in MCLR because it it is based on the formula given by Reserve bank of India. So I can’t give you the number that how much will be the reduction in next quarter or next six months but definitely basis the formula if the reduction is there it will definitely happen.
But till now 30 pips is already done.
Operator
Thank you. We have a follow up question from the line of Asokaj Mehra.
Ashoka Jameera
Yes sir. Thanks. Of course Shushil has covered most of the remaining questions which I could not either take it earlier. But sir, I would still. Luckily we have some time and I would like to know the color of the NBFC book. How do we stand there in the NBFC front and what are our policy where I understand that we are little choosy and rigid on the NBFCs. But having said that what is our experience is that and some of these NBFCs even though they are small but they are lending to the low cost housing or low Cost and low low amount of loan average 77 and a half lakh for the housing and other things.
Even though they are not rated A maybe triple B minus or so. But they they give you the better better opportunity to earn good money. The interest rate can be nine and a half to ten and a half. Any anything between that. So whether what is the present situation and are we thinking on those line to little bit liberalize the small loans to the smaller NBFCs.
Ashwani Kumar
See so far as NBFC or any other corporate is concerned MSME Retail bank looks at every proposal from bankable angle. If the proposal is banking don’t say no even if it is a triple B or double B. But if they have a established track record everything is there and it fits into our norms. So we don’t say no to every proposal. So every proposal is examined on a case to case basis and accordingly decision is taken. So there is no no go to anyone like will not go with this NBFC or this corporate or this MSME segment.
So there is there is no such no go type of thing. Every proposal is examined from the credit angle and the bankability of the proposal.
Ashoka Jameera
And what is the total exposure to the to the NBFC as as on. Date
Ashwani Kumar
The NBFC if you look at our exposure is around 27,000 cr to NBFC it works out to around 12% of our total book. That is 27,000 crore.
Ashoka Jameera
And what is our experience of those accounts?
Ashwani Kumar
There is there is no slippage in those accounts except in mfi. There was one slippage earlier but our overall MFI exposure is now only I think less than 500 crore.
Unidentified Participant
So not even charge
Ashwani Kumar
440. 440. So that is also under control. If you look at one year back it was around 1300 crore. Now it is 440 crore.
Ashoka Jameera
Oh yeah that is good to know sir. And some color on the Gold loan sir. Gold loan Agree and non agree. Because now the categorization has been little bit changed. I think the liberalization is there that you can take the some collateral also up to the I think 2 lakh rupees loan also. So what is the position of the gold loan and are we. Are we bullish on that and what is the ltv? Yeah
Ashwani Kumar
If you look at our gold loan portfolio is around 15,000 cr only we have not have very big exposure in the gold loan 15,000 and of that around 4,000 should be in the in the retail and 4,000 plus should be in the retail and around 10,500 should be in the agriculture segment. So this is the overall composition of our retail and Agrippa in retail LTV should be in the range of 25 to 30% in agree it will be around 15 to 20% in LTV. But again what is the current price of the gold? The base price taken is an average of average of some period.
So it’s that the base price and in the current price itself there is a margin is there and over and above that we keep another margin. So no we don’t expect any issue in the as far as the pricing sorry LTV is concerned.
Ashoka Jameera
So we have a robust system of auctioning and other thing as per the. Yes, yes, yes. Yeah
Ashwani Kumar
SOP is there. Yeah yeah SOP is there and everything is in place. The the sale happens according to that only in case there is a option is to beta.
Ashoka Jameera
Just your views on whatever is happening around. You know the current geopolitical situation. Of course duty things are there then the sanctions are there more sanctions are coming Iran and Russia and all that and I mean some unimaginable things are happening around. So do. Do you see as per your banking portfolio. I mean if you look at that that there can be any major concern on that if something like this keeps happening. And I mean do you have that particular segment which is exposed to this kind of businesses or you know are subject to this
Unidentified Participant
High
Ashoka Jameera
Duties and exports and other things. Have you evaluated if whether some work has been done on that to understand and to evaluate the situation if it arises that what is the quantum which can be affected. Sir.
Ashwani Kumar
If you look at our total. Let me talk about this scenario first. I think this is a geopolitical scenario. It is impacting not only Ecobank but all the banks, even the customers also so far as overall impact if you ask I believe we have a strong consumption economy and if there is impact on the export front I think domestic is able to support the surplus quantity available of the products. If I have to look at our pants exposure we have around. What is this tool? So we have around 2000 crore of export credit exposure and of which only 5% is in respect of countries severe some this tariff and all these things have happened.
So it’s not a major one around 100 crore of only exposure for the bank in those countries. So not not much of worry for the Yuko bank because our exposure to those countries is very limited.
Operator
Thank you. There is a question in the chat box. What percentage of your deposit book has been repriced so far and what is your. What is the direction for the net interest margin for FY27.
Ashwani Kumar
See my Around 75% of my deposit book has been repriced. I think remaining some portion will get reprised in this quarter and maybe 1/10 of the book will be reprised in the first quarter. So by I think by first quarter entire book will be repriced number one. Yeah and second on margin front. I think it again depends upon the repo rate cut in the times to come how it happens still we don’t know. In February there is a mpc. In April there is mpc. But given the scenario that there is no rate cut and the liquidity conditions remain same rather improves, I think the name should be in the range of 3% in the next year itself.
Next year also.
Operator
Thank you. We’ll take that as a last question. I hand over the call to MD sir for his opening remarks.
Ashwani Kumar
Closing. So thank you. Thank you very much to all the analysts and investors for joining the conference, taking out the time and thank you for your trust and confidence in the bank and we will continue to deliver our performance stable and consistent performance in the quarters to come and it will be our endeavor to come to your expectations. Thank you very much. Thank you.
Operator
Thank you.