Union Bank of India Ltd (NSE: UNIONBANK) Q3 2025 Earnings Call dated Jan. 28, 2025
Corporate Participants:
Ajay Bansal — Deputy General Manager
A. Manimekhalai — Managing Director and Chief Executive Officer
Kanika Pasricha — Chief Economic Adviser
Sanjay Rudra — Executive Director
Avinash Prabhu — Chief Financial Officer
Analysts:
Ashok Ajmera — Analyst
Aditi Nawal — Analyst
Rakesh Kumar — Analyst
Mahrukh Adajania — Analyst
Jai Mundhra — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Union Bank of India Earnings Conference Call for the period ended, 31 December 2024. The Bank is represented by the Managing Director and CEO, Ms Mani A. Mikalai; Executive Directors, Sri Natesh Ranjan; Shri S., Sri Sanjay Rudra; Sripankesh Davedi and other members of the top management. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing and zero on your touchtone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr Ajay Bansal, Deputy General Manager. Thank you, and over to you, Mr Bansal. Thank you.
Ajay Bansal — Deputy General Manager
Good afternoon, ladies and gentlemen. I am, Head of Investor Relations welcome you are for the Union Bank of India earning Con Call for the period ended, 31 December 2024. The structure of the con-call shall include a brief opening statement by respected MD and ma’am and rather than the floor will be open for introduction.
Before getting into the con-call, I will read the usually disclaimer statement. I would like to submit that certain statements that may be discussed during the Investor Relations interaction may be forward-looking statements based on the current expectations. These statements involve a number of risks, uncertainty and other factors that cause the actual results to differ from the statement. Investors are therefore requested to check this information independently before making any investments or other decisions.
With this, I now request our respected MD and CEO ma’am for her opening remarks. Thank you and over to you, ma’am.
A. Manimekhalai — Managing Director and Chief Executive Officer
Thank you, Bansal. Good afternoon, everyone, and welcome to Union Bank’s financial results announcement for the 3rd-quarter ended, 31, 2024. Thank you for joining us today. I am sure that you have had the opportunity to review our results. We are navigating through a challenging macroeconomic landscape characterized by tight liquidity conditions, which has eased a little by the Reserve Bank of India today, moderating urban demand, uncertainty arising from global developments, volatility in the Indian rupee and capital outflows. These factors are exerting pressure on the banking industry. However, positive development such as a recovery in rural demand, driven by higher agriculture growth and gradually easing inflationary pressures are expected to support economic growth.
Moving to the bank performance, we remain steadfast in our commitment to sustainable growth with a balanced focus on-top line and bottom-line performance. Our strategy prioritizes profitability and operational efficiency over aggressive growth. The Bank delivered a strong performance in key areas such as asset quality, capital adequacy and profitability, ensuring long-term value-creation for all its stakeholders.
Let me now review the financial highlights for Q3 FY ’25, the net profit reached INR4,704 crores, marking a 28.2% year-on-year growth. For the nine months ended December 2024, net profit stood at INR13,002 crores, registering 25.8% growth year-on-year compared to the full-year FY ’24 profit of INR13,648 crores. Return on assets improved to 1.3% and ROE reached 17.75%. Capital adequacy stood at 92% with a CET1 ratio of 13.59% as of December 2024. The asset quality, our gross NPA reduced by 98 bps Y-o-Y to 3.85%. Net NPA improved by bps to 0.82%. Coverage ratio increased by 88 bps. Yes.
Operator
Sorry to interrupt you, ma’am. Your voice is breaking. Kindly wait, I’ll just reconnect your line ma’am.
A. Manimekhalai — Managing Director and Chief Executive Officer
Yeah, please okay.
Operator
Ladies and gentlemen, please stay connected. Ladies and gentlemen, thank you for your patience. You have the line for the management reconnected. Ma’am, you may go-ahead.
A. Manimekhalai — Managing Director and Chief Executive Officer
Yeah, should I start from the beginning?
Operator
No, I’m going to continue from a year.
A. Manimekhalai — Managing Director and Chief Executive Officer
Yeah, okay. I was talking about asset quality. So gross NPA reduced by 98 bps Y-o-Y to 3.85%. Net NPA improved to 26 bps to 0.82%. Provision coverage ratio increased by 88 bps to 93.42%, credit cost stood at 63 bps and the slippage ratio improved to 89 bps.
Let me just give you the update on the guidance that we had made to the market. While profitability and asset quality metrics remain in-line with our expectations. There has been a moderation in the business growth this quarter. This is largely due to our contest decision to shed high-cost well deposits, which impacted terminal growth numbers. As a result, deposit growth has moderated to 3.8%. However, our growth in advances has also remained at 5.9%. In terms of averages, both deposits and advances grew sustainably Y-o-Y by 7.6% and 10.9% respectively, reflecting resilience in our business expansion. We now anticipate achieving growth closer to the lower-end of our guidance for deposits and advances.
Now other highlights on our guidance, NIM for the nine months ended December 2024 stood at 2.94%, well within our guidance range of 2.8% to 3%, notably on a Q-o-Q basis, NIM improved by 1 basis-point. GNPA, which is currently at 3.85%, is already below the 4% FYN target achieved ahead of the schedule. With regard to slippages and recovery, gross slippage for the nine months stood at INR9,506 crores and net slippages are around INR8,941 crores, while gross recoveries reached INR10,789 crores, aligning with our annual guidance and demonstrating our commitment to maintaining recoveries consistently higher than slippages.
I will now give you a brief on the significant developments during the quarter. The bank has opened five Nari Shakti branches in Bangalore, Chennai, Jaipur, Mumbai and Vijawada on November 9, 2024 by the Honderable Finance Minister, which aims to support women entrepreneurs and provide tailored resources to foster growth and job creation. On our 106th Foundation Day, we launched several innovative initiatives, including the Union Current Account, Union Digital Contact Center, Union MSME Superpass SAP, Union CPDC accessibility initiative for the visually challenged and the Union Green Home Initiative. We have added 146 branches in the current financial year, taking the total branch network to 8,574. We have expanded our client sales by opening 32 lakh CASA accounts in the first-nine months of FY 2025, including 2.42 lakh premium accounts.
To conclude, the Bank remains steadfast in navigating challenges while delivering sustainable growth and value for stakeholders. With a focus on innovation, operational excellence and customer-centric initiatives, we are confident in our ability to drive long-term success. Thank you, and I look-forward to your questions.
Questions and Answers:
Operator
Thank you very much. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, you may press to ask a question.
The first question is from the line of Jay Mundra from ICICI Securities. Please go-ahead. Chair, may I request you to unmute your line and go-ahead with your question please? Chair Mundra, may I request to unmute your line and go-ahead with your question please. Due to no response, we move on to the next participant.
Next question is from the line of Ashok Ash Mehra from Global. Please go-ahead.
Ashok Ajmera
Hello? Am I audible?
Operator
Yes, you’re audible, sir, go-ahead.
Ashok Ajmera
Yeah ma’am good results ma’am as you yourself said on the performance of the bank is concerned on the asset quality side and even to a great extent on the recovery targets also. But ma’am, we are really going down on the business front, both deposit and credit and our performance is a little lower than other of the other — especially the PSU — ba PSBs which have declared their results. I mean, we are much below them in this nine months performance. So now some people have started you know a little bit downgrading our stock and our future prospects.
So I would just like to know though you touched upon in this opening remarks, yourself said that our business growth is lower than the target. So — but going-forward in future, not just in 1/4 of the remaining quarter of this FY ’25, but what do you think, I mean the previous levels or the targeted levels will come back again soon or there is really a major slowdown in the economy and the growth path and we may not regain the past glory again. So my first question is on that ma’am.
A. Manimekhalai
Regarding the macroeconomic landscape, our economists will, you know, let you give you a brief. But however, as far as the bank is concerned, as I told you in the beginning with my opening remarks, we are committed to a sustainable growth with a balanced focus on-top line and bottom-line numbers. Our strategy, of course, as I’ve been mentioning in all the quarters, we have profitability rather than growth. My total or the bank’s total focus is to create long-term value-creation for the stakeholders rather than making small glories.
Now if you look at the way we have done it, we have shed almost like more than INR30,000 crores in bulk deposits to improve our cost of deposits number and see that our NIM is not impacted. Listen, the deposit growth moderated. We had a strategically we reduced the numbers, we shed those numbers while deposits and many things that the bank has taken is to drive home the point that we are looking at sustainable numbers and not a small blip in whatever we do. And I will now ask Kanika to give you a brief on the overall macroeconomic scenario.
Kanika Pasricha
Okay.. Yeah. Thanks a lothi for the question. Sir, actually, three quick points. The first is almost — of course, we acknowledge your concern. But if you look at every banker on-street and they’ve come out with it post the analyst call, one stream of thought is very clear that the macro-environment is very challenging, sir. And if you see same-period last year, when we would have had this call, we would have said that at least for the next 12 months, even RBI was talking about a growth number of 7%, 7.5%, they downgraded it to 6.5%, government is at 6.4%.
So the RBI and the government have also acknowledged that there is a growth slowdown in the economy and the economy needs some oiling in that regard. So second point is just on the macro front, so what is the concern is that the nominal GDP growth for two consecutive years is below the double-digit mark. And in an economy like India, a nominal GDP growth drives credit growth. So credit growth same-period last year was 15% 16% excluding the merger effect. Now it’s trending at 11% to 12% number. So there has been a of upgrade in terms of credit growth numbers because of overall growth is coming under. It’s not just because of domestic factors, global economic uncertainty also remains, which has got exacerbated under Trump 2.0 since November.
Sir, last point from bankers’ perspective and why is it the why the economy and not just that the financial system needed some oiling is on the liquidity side, sir. Same-period last year, we kept talking about deposit growth being higher than credit growth, we needed structural liquidity. Then post Trump 2.0, we got some INR5 lakh crores of outflows on account of FX. So we started — there were a lot of concerns raised. Of course, liquidity came under pressure. And in that regard, I would say now ending on a positive note and an optimistic note in terms of outlook, sir, and we are very sure that it will hold something good for our bank as well. So RBI yesterday the kind of state of liquidity measures we have given are signaling that they are paying heat to our bankers liquidity wounds. And now INR1.5 lakh crores is a big amount given.
And on the other hand, sir, now from the budget also, we expect that while the government stays committed to roadmap, they will do something more to get the economy and think private capex recovery, which is still not, we see some incentives coming in to boost overall growth that will lead to more business growth and eventually bank credit growth as well. So something to look-forward to, in-part in the next 10 days itself, sir. Thank you. Thank you so much.
Ashok Ajmera
And then my second question is on the income side, the non-interest income and especially the recovery from the written-off accounts, yeah, I mean that is some area. The overall recovery plus recovery from written-off account plus other components of the other income. There, I think if you can give some picture that at least like on profitability front, like this operating profit also this quarter was little under pressure. So going-forward, do we have some more chances of profit other income includes a recovery from the written-off account, treasury income regarding and some other components of the income.
Ajay Bansal
Yeah. So on the non-interest income side, as you’re aware that we have been showing a consistent growth. So our year-on-year growth is about 25%. Our core fee income is up by about 26% year-on-year. Treasury income is also growing nicely at about 23% year-on-year. Recoveries again have shown a higher trend year-on-year. So that’s at about 32% higher. So you can see that we are looking at various fronts as far as our non-interest income is concerned in terms of trying to get the maximum amount of that. And we are quite comfortable that we will be able to show a similar trend going-forward. So that is something that we continue to focus on and we’ll continue to show growth going-forward.
Ashok Ajmera
Some color on the NCLT account and NARCL or other asset recovery company sale of the assets recovering some good amount on that in this quarter, so as to make this year at least a good year for a profitability point of time.
Sanjay Rudra
Good morning. I’m Sanjay Rudray here. In NCLT account, this quarter our recovery is slightly low as compared to the last year December quarter. We are able to recover INR94 crores in NCLT accounts as against the INR1,674. But in the current quarter, we are hopeful that some improvement will happen. As far as the sale is concerned, last year the number was zero, but this year it has improved and it is INR344 crores. So if you see the total guidance which we have given for INR16,000 crores of recovery for the current financial year, we are — out of that already we have achieved almost INR10,800 crores INR400 crore of recovery and the balance amount of INR5,500 crore recovery will happen in the current quarter. So we are very much hopeful that we will be able to meet the recovery targets. And already the write-off recovery is better than last year, you will see that it improves further, which will add to our other operating income, other income, it will add to our other income.
Ashok Ajmera
Sir, this INR345 crore is the total recovery, I mean, out of this only 15% is the cash component, isn’t it this asset recovery company?
Sanjay Rudra
No, no, that’s a slightly different. Now the ARCL, we are not looking for any SR, it is on cash basis. So this 345 is a whole full recovery on cash basis.
Ashok Ajmera
Cash basis. Okay, sir. Thank you very much. Thank you, ma’am. I’ll come back again if time permits. Thank you and all the best.
A. Manimekhalai
Thank you, Raji.
Operator
Thank you. Next question is from the line of Adity Naval from RSPN Ventures. Please go-ahead.
Aditi Nawal
Yeah, hi. Thanks for taking my question. I have a few questions. First, with respect to the interest on RPI balance, other bank balance line-item. So that has dropped significantly Q-o-Q as well as Y-o-Y. So anything that you’d like to call-out on that line-item?
Avinash Prabhu
Yes. Yes, Madam, this is mainly because of the down our bulk deposit and liquidity tightness, we have not done much arbitrage activity. That is why it has come down by INR187 crores. Otherwise, it is on par with the earlier quarters also. If the liquidity improves and opportunity come down, definitely we will add and improve our performance in that balance four days.
Aditi Nawal
Got it. Sir, and second question was with respect to the effective tax-rate this quarter came down to around 21%. So is there any tax — tax or reversal of anything that we’ve gotten?
Ajay Bansal
No, obviously we know we keep revisiting our income tax provisions from time-to-time. So you’ll see that on an average, our effective tax-rate is about 24% to 25%, which is in-line with what the regulations are in terms of income tax. So it is just that this quarter we just revisited some of our estimates and that’s the reason why you see an effective tax-rate of 22%.
Aditi Nawal
Got it. And sir, just one last question on the SMA. So SMA-2 has increased from INR1,654 crores in September to INR5,500 crores in this quarter. So is it that same account that we were referring to last quarter, which was in SMA-0, which around INR5,000 odd crores and that has slipped into SMA-2.
Avinash Prabhu
Yeah, this is only one account actually which was — which — for which also we earlier told that we already made the adequate provisions also in standard asset, we have to pay the provision. But for your kind information as of today, the amount is recovered.
Aditi Nawal
Okay. So okay. So this amount will go back to being standalone in India in the current quarter.
Avinash Prabhu
Yeah.
Aditi Nawal
Okay. That will be it from my side. Thank you so much.
Operator
Thank you. Thank you. Next question is from the line of Rakesh Kumar from B&K Securities. Please go-ahead.
Rakesh Kumar
Yeah, hi. Hi, ma’am. Thanks. Can you hear us?
A. Manimekhalai
Yeah, we can hear you.
Rakesh Kumar
Yeah, ma’am. So the first question was with respect to the interest income accrual with — due to the recoveries. So I think that number previous year was approximately INR3,065 crore and that number has fallen to INR17 crore INR50 crores in the nine months. So any comment that you can offer or any clarification that you can offer ma’am?
Ajay Bansal
Yeah, last year, last year. First the last year, for nine months recovery was around INR2,223 crore and full-year it was around INR3,065 crores. But this year, in the first-nine months, our recovery is only INR1,738 crore, which is almost INR500 crores sort of last year numbers. But we are working on that and we are hopeful that the recovery of the interest will also improve. But interest recovery on NPA account is not through the OTF because we have a policy wherein whatever the recovery comes through the surfacee and all is first adjusted towards the recovery of interest. So last year actually surfacee action was more effective. This year, we have done some of the sales, but the realization has not yet happened, which will have 50 in this current quarter. So I’m hopeful that, that numbers will also improve and we’ll be able to meet our expected number of around INR2,500 crores for the current quarter.
Rakesh Kumar
And secondly, ma’am, you know, with respect to our discount rate on the AS 15 estimation, we have, I think, discount rate at 7.5% as on March ’24. I’m not sure if we have changed that number during the nine months. If it is the case, kindly clarify. And with the 10-year having come down to 6.7 and around, would we have to reduce the discount rate for the AS 15 calculation in the March quarter? And if that is the case, how would the terminal benefit obligation number would look like in the 4th-quarter employee expenses number now?
Ajay Bansal
Yeah. So on that, on the AS 15 assumptions, we are in touch with actuary. So even for the December quarter, we did speak with actually before looking at what numbers should be booked. So we have taken the effect what they actually told us. We will again revisit it this in March and finalize the numbers, but we are quite comfortable with the numbers that we’ve booked based on the discussions that we’ve had with actual. And no change in the assumption right now.
Rakesh Kumar
Sure, sir. Just one last question, sir. Our credit growth guidance is 11% to 13% and ma’am mentioned that we were looking at lower-end of the band — guidance band. We have done 5.6% in the nine months. So are we expecting that another 5% we can do just in 1/4 in 4th-quarter, would it be feasible in this market?
A. Manimekhalai
See, even though my terminal number is if you look at the terminal numbers, my gross advances is at 5.9%, that’s about 6%. But if you look at my average number growth, it’s almost like 10%. That is the way the advances numbers have grown. I also have a pipeline of about INR75,000 crores sanction limits with me. And out of that pending for disbursement is close to about 36,000 and pending for sanctions is around INR39,700 crores. They are getting very good traction from real-estate, road, power, data centers and other such centers. My RAM portfolio is equally quite aggressive and we are hoping to grow other numbers and plus with the kind of stance that RBI has taken. So we hope to improve the may the advances portfolio also in this quarter.
Rakesh Kumar
Sure, ma’am, sure. Thanks, Man. Thanks.
A. Manimekhalai
Thank you.
Operator
Thank you. Next question is from the line of Maruk Anchania from Nuvama Wealth. Please go-ahead.
Mahrukh Adajania
Yeah, hello. I had a few questions. Firstly, last quarter, because there was a big slippage of a lumpy telecom account, there was a sharp reverse, there would have been a sharp reversal in interest income as well, right? And even with that, so — which wouldn’t have been in this quarter. So even on that base, our NIM has declined on lower-growth, right, obviously because of tight liquidity and as you explained, recovery interest being lower. But given that now possibly neutral liquidity may last and maybe the theme for the future quarters, do you expect your NIM to recover from current levels? I know your full-year guidance, but this is just like a discussion from the current quarter to where we see NIMs going ahead, right, because maybe the tight liquidity impacted NIMs, but do you see it recovering? Because last quarter itself, there was a lot of pressure from a big NPL. And also if you could call-out separately the arbitrage income this quarter versus last quarter. My first question.
A. Manimekhalai
So we have guided for the NIM of — if you remember 2.8% to 3% for FY ’25. Our current NIM for December quarter is at 2.91. And if you look at Q-o-Q, we have improved our NIM by 1 bps. And this is because we had maintained our cost of deposits, our yield on also improved by about 8 bps. We have taken a lot of measures. We controlled and efficiently managed our bulk deposits. On the yield front also, there was an increase in average advances. All this has helped us in keeping the NIM above whatever the numbers that we had given. So going-forward also, I do not want to change my stand of 2.8% to 3%, there will be — we are looking to improve our NIMs to further amount, other numbers and what is the second.
Avinash Prabhu
As far as arbitrage is concerned due to the tight liquidity condition and setting up our bulker deposit, we took a little arbitrage opportunity as and when this quarter, if the liquidity eases happens and we have a surplus fund, definitely we will look for a better opportunity and increase the arbitrage income during this quarter. It. It is hardly down INR180 crores all.
Mahrukh Adajania
Sorry, it is?
Avinash Prabhu
INR180 crores only down.
Mahrukh Adajania
INR180 crores lower than the last quarter.
Avinash Prabhu
Yes, yes.
Mahrukh Adajania
Okay. Okay. Got it. And what would be the reversal on interest income last quarter and this from NPLs? Hello?
A. Manimekhalai
There is not much of re much of reversal you know it is a very minuscule number that we have been able to reverse.
Mahrukh Adajania
Reversal as in on NPL.
A. Manimekhalai
Yes, very small number.
Mahrukh Adajania
But last quarter it would have been a bigger number.
Ajay Bansal
So yeah, I mean it’s almost the same, Mahru, quarter-on-quarter. So if you look at the December quarter, the recovery was — is 600 crores. Only on.
A. Manimekhalai
No, not much number.
Ajay Bansal
It is very small, but Mahruk, I’ll give you that number offline.
Mahrukh Adajania
Okay. And then just a clarity on that SME thing, which has already been recovered. So I guess in last quarter’s discussion also, we said that the SME in the lumpy SMA loan was upgraded. So after it got at the time of last quarter results, so after it got upgraded, it got downgraded again and now it’s paid. Is that the way to look at it?
Sanjay Rudra
No, no, no. See, last quarter also see that was continuously in SME, actually speaking, sometimes it goes to SMA-2 also. That’s what it has happened in December. But as you know, that is we all know the court. So because of some funding from equity has come and the overduce with other banks have been date has been fully cleared by the company. SMA itself is a company.
Mahrukh Adajania
Thank you. Thanks a lot.
Operator
Thank you very much. Next question is from the line of Jay Mundra from ICICI Securities. Please go-ahead.
Jai Mundhra
Yeah. Hi, good afternoon, sir. Thanks. Sir, just on this SMA, so did I hear it correctly that the exposure itself has run-down now, right? Or it is just that the account has become normal.
Avinash Prabhu
No, that’s what you only have seen run-out. The exposure still remains.
Jai Mundhra
Okay, sure.
Avinash Prabhu
So what you have been fully cleared.
Jai Mundhra
Right, right, right. Okay. And sir, ma’am, on your loan growth, right, so somebody was also asking that even if you were to match your loan growth guidance at the lower-end, it will be a steep half. You mentioned that you have a decent corporate on the pipeline sanctions and amount to be disbursed. But again, then you will also face the same challenge, right, that you know, the cost of deposit is still hard and you may have to fund those corporate loans by TD or maybe bulk, which will not help on the margin front. And so I mean what is the way out in the sense that it looks like a cash ’22 situation that you know CASA growth is not happening and hence we are not growing corporate as much. So that may continue for a while, right? Is that the understanding or how do we want to get-out of this?
A. Manimekhalai
See, if you look at the way we have done in this quarter, we have consciously reduced our bulk, which is at a higher-cost. And also if you look at my average advances growth has also remained quite good at 10%, 10.5%. And now looking at the pricing on most of my advances that’s on the book now is at MCLR pricing and not at the table pricing. So as and when there is a requirement fund, we have also seen a good growth in my retail deposit front, I have seen some good growth happening in the last nine months for the various steps that we have taken. My retail term deposit has also grown by about 8% and with an absolute growth of about INR36,000 crores. Now and with this also and with a little bit of easing of liquidity measures that the Reserve Bank of India has also taken, we are sure that we will be able to fund our advances growth.
Jai Mundhra
Okay, good. And ma’am, if you can comment on…
A. Manimekhalai
Yeah, go-ahead.
Kanika Pasricha
So Jay, hi, good afternoon, Jay. Yeah, ma’am. So two points. First of all, you know, it’s not as a bankers are in a catch-22 situation. Even from the macro perspective, you know that everybody is looking at sources of funds because even now credit growth is run higher than deposit growth and of course, by the counting for funds, but apart from deposits, everybody is looking at alternate source of funds. So we also have our own avenues for the same. That’s one. Second, as liquidity eases and RBI signals, they are on a path to monetary easing because they also want to contribute in fact to the heavy-lifting on growth. So when the cycle switches, we all know that we will get some salutary effect on CASA as well in the coming months. It may not be as much because of shift in savings profile. So first, alternate sources of fund, we are also looking for some of them second, on CASA, maybe some satory relief in the coming months as the cycle shift. Thank you.
Jai Mundhra
Yeah and actually the broader point I was trying to understand was this NII growth now has become 1% Y-o-Y, right? And assuming no rate cuts change, I mean no change in the rate cut, you believe it will remain like this only, I mean without any policy action or do you think it can inch up maybe.
A. Manimekhalai
See, the main — come from interest income, NII only and we have seen a little bit of growth Q-o-Q also and Y-o-Y in our interest income. And with the easing of the liquidity numbers and with the yields coming down probably with the rate cut, we are sure that we will be maintaining our interest income, with the higher-growth — positive growth in our advances. That’s one thing. But if you look at the bank is also doing very well in the non-interest income part, we have shown a very good growth, almost 17% in the last three months and Y-o-Y growth of about 25% in our non-interest income. Core fee-based income has also grown by about 26% and recovery income is also recovery in written-off accounts, recovery, all this will also factor-in and we hope to keep our net interest income at a steady growth pace.
Jai Mundhra
Right. Sure. And secondly on SME and agri, right? So while corporate may have very fine pricing, but SME and agri — you know, the largest PSU bank is delivering very steady growth on SME and agri both and other private banks are also delivering. What is actually, you know impacting the slower-growth in both these two segments.
A. Manimekhalai
I will tell you about MSME, of course, the growth has been [Ends Abruptly].