Union Bank of India Ltd. (NSE: UNIONBANK) Q4 FY22 Earnings Concall dated May. 13, 2022
Corporate Participants:
Ranjita Suresh — Assistant General Manager, Investor Relations
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Ashok Chandra — Chief General Manager
Analysts:
Suraj Das — B&K Securities — Analyst
Unidentified Speaker —
Nilesh Shah — Arrow Investments — Analyst
Dixit Doshi — Whitestone Financial Advisors — Analyst
Jai Mundhra — B&K Securities — Analyst
Ashok Ajmera — Ajcon Global Services — Analyst
Akhil Hazari — RoboCapital — Analyst
Mahrukh Adajania — MahruEdelweiss Financial Service — Analyst
Abhijeet Sakhare — Kotak Securities — Analyst
Arjun Bagga — Dolat Capital — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to Union Bank of India Earnings Conference Call for the Period Ended March 31, 2022. The bank is represented by the Managing Director and CEO, Shri Rajkiran Rai G; and Executive Directors, Shri Nitesh Ranjan; Shri Rajneesh Karnatak; Shri Nidhu Saxena and other members of the top management. [Operator Instructions].
Now I hand over the call to Mrs. Ranjita Suresh, Assistant General Manager, Investor Relations. Thank you, and over to you, ma’am.
Ranjita Suresh — Assistant General Manager, Investor Relations
Good afternoon, ladies and gentlemen. I, Ranjita Suresh, the Head of Investor Relations, welcome you all for the earnings conference call for the period ended March 31, 2022. The structure of the con call shall include a brief opening statement by MD and CEO, and then the floor will be open for interaction.
Before getting into the con call, I’ll read out the usual disclaimer statement. I would like to submit that certain statements that may be discussed during the investor interaction may be forward-looking statements based on the current expectations. These statements involve a number of risks, uncertainties and other factors that cause the actual results to differ from the statement. Investors are therefore requested to check the information independently before making any investment or other decision.
With this, I now request our MD and CEO for his opening remarks. Thank you. Over to you, sir.
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Good afternoon, everyone. It is a pleasure and privilege to meet you all for Union Bank of India financial results for the quarter and year ended March 31, 2022.
Economy is on recovery path with activities surpassing pre-pandemic level across sectors. While GDP growth estimates have come off considering geopolitical development, India [Technical Issues] seen as fastest growing major economy in the world. Inflation concerns meanwhile have meant rising interest rates both globally as well as at home. In an era of external benchmark linked loan rates, the hike in policy rate will immediately reflect in the bank lending rates for home loan, auto loan and small business customers. Deposit rates will rise accordingly in due course.
Coming to Union Bank’s business and financials for quarter ended March 31, 2022. Bank has continued to post strong financial as the total business have grown by 10.86% year-on-year. The total deposits have grown 11.75% year-on-year led by low-cost CASA deposits, which have grown 12.40% year-on-year. The CASA ratio thus stood at 36.54%. Total advance registered a growth of 9.60% year-on-year. The RAM sector noted 9.36% year-on-year growth. Within the RAM sector, the retail advances have grown 8.65%, agriculture advances have grown 10.80%, and MSME advances have grown 8.56% year-on-year.
The net income have grown by 12.55% year-on-year. The net interest income stood at INR27,786 crores for the financial year 2022. The global NIM stood at 2.94% for the year ’22. Net profit stood at INR5,232 crore during the financial year ’22 as against net profit of INR2,906 crores for the previous year, that is 2021, thereby registering a growth of 80.05%. Of asset quality, the gross NPA ratio stood at 11.11% as of March 31, ’22 compared to 13.74% of the previous year. Net NPA stood at 3.68%, which was 94 basis points lower than last year. CRAR improved from 12.56% as of March 2021 to 14.52% as of March 2022.
CET1 ratio improved to 10.63% as of March ’22 from 9.07% of previous year. PCR also improved by 234 basis points on year-on-year basis from 81.27% to 83.61% as of March 31, ’22. We strengthened the collection capabilities by opening regional collection centers, dedicated call centers and feet on street model, combined with the skilled pool of staff deployed to reduce the stressed position of the bank on a continuous basis, thereby reducing the stress percentage substantially.
Bank has recovered approximately INR16,300 crores on a gross basis during the financial year. To this end, bank has initiated the process of digitization of recovery modules by launching project to Union SARAS where it has created willful default classification portal, but we see repository, DRT and NCLT portals, etc. The bank has reached total capital of INR8,447 crores during the financial year ’22, which is INR1,447 crores of equity capital raised to QIP, INR5,000 crores of AT1 bonds and INR2,000 crores of [Technical Issues].
Friends, I wish to share that Union Bank has achieved all of the amalgamation goals well ahead of time lag. We could ensure seamless integration of people, process and products, thereby realizing cost and revenue synergies well intact. We have moved much ahead in our digital journey with bank launching Project Sambhav, wherein we initiate digital bank within bank as Union Nxt app. A couple of days ago, we have also launched Trade Nxt platform, an innovative self-service solution providing array of trade finance services at customers’ convenience.
Union Bank of India has also become first public sector bank to go live on Account Aggregator Ecosystem. These are just a glimpse into many initiatives underway as the bank transforms for the digital era. Speaking in early outcome, 4 million new U-Mobile customers were added during the year ’21-’22, taking total registered mobile banking users to 1.66 crores. More than 1/3 of the total leads generated during the year were through the Union Dial platform. There was 157% increase in the volume of UPI transactions, making Union Bank third among the peer PSBs in terms of volume of transactions.
As several of our digital initiatives mature, it will accumulate in even better and faster growth ahead. The bank is well poised for growth and profitability with all-round capacities and capabilities built during last few years. As the economy returns to growth path, Union Bank will be both beneficiary as well as driving the growth of new opportunities.
Let me reiterate the guidance for the financial year ’23. Deposit growth at around 10%, advances growth in the range of 10% to 12%, CASA ratio in the range of 37%, NIM to be around 3%, credit cost to be less than 1.5%, delinquency ratio to be less than 2%.
With this guidance, I conclude my opening remarks. We are grateful to the analyst and investor fraternity for their continued support and feedback that helps us to take informed decision in our journey towards efficiency and profitability.
We are now open for the question-and-answer session. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Suraj Das from B&K Securities. Please go ahead.
Suraj Das — B&K Securities — Analyst
Hello, sir. Thank you for the opportunity and congratulations on a good set of numbers. Sir, I have couple of questions. The first question is on the slippages side. So you have reported slippages of total INR5,600 crores for 4Q FY ’22, of which large corporate is INR2,500 crores and MSME is INR1,400 crores. So, sir, my question is the corporate slippages, does it include any lumpy accounts or is it, I mean, from where it is coming?
And on the MSME slippages side, sir, you have recorded INR1,400 crore in this quarter and almost INR7,000 crore for the full year. So what is the outlook for the next year on the MSME slippages side? Is it coming from, I mean our restructured book or ECLGS book or I mean, what is the source of the slippages? Yes, that is my first question, sir.
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Yes. There is one lumpy account in the large corporate that is one retail entity you are aware. So that is a major chunk of these large corporate. Actually our projections went a bit like haywire on the slippage because of this lumpy account slippage. So that’s why, like one big account, I think that is about INR1,700.
Unidentified Speaker —
INR1,720 crores.
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
INR1,720 crores. That is one account. Regarding your question on MSME. MSME actually particularly after the COVID and the restructuring, MSME was the sector which is maximum affected, because if you see the other part, retail and even agriculture is consolidating, MSME we saw the enhanced slippage. But then that is also consolidating. This is I think now that also will start coming down because that confidence I get because of the SMA 0,1,2 position what we are seeing in MSME. That has consolidated very well, the numbers are quite decent on the stressed side. So the further chances of slippage in MSME is coming down substantially.
Hopefully the maximum stress in MSMEs already recognized. Regarding your question whether it is coming from the restructured book? Small percentage of the stress book also has slipped, but it is coming from everywhere, it’s not that there is a predominance from the stressed book, some percentage has come but then it is coming from even non restructured book also.
Suraj Das — B&K Securities — Analyst
Okay. Thank you, sir. Just a follow-up, I mean you have given SMA-2 for INR5 crores and above, which is only, I mean 0.09%. I mean can you tell us, I mean, what is the all inclusive SMA-2 position would be as of maybe March?
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
I think you can share that number.
Unidentified Speaker —
Yes. So we have disclosed that INR5 crore and above SMA-2 is around 0.09% which when we compare to the previous year March ’21 is quite below the 1% level it was earlier. Overall SMA-2 number is 0.66%, again which compared to the previous year, much lower. And SMA 2 book also last year March ’21, it was around 6.4% and it has come down to around 2.4%. So SMA 1 and SMA 2 both together they are just around 3% of the book.
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
That is all. It is not the above INR5 crores, it is entire — like entire domain of the advances SMA 1 and SMA 2 is below 3%.
Suraj Das — B&K Securities — Analyst
Understood, sir. Understood. And sir, what would be the total restructured book? You have given details on slide number 37 about COVID restructuring, that is 1 and 2. However, what will be the non — I mean overlapping MSME or let’s say earlier CDR or SBR or whatever it is, I mean what is the total restructured book?
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Actually like in the COVID restructured book, we have shown about INR21,000 crores. This is actually initially restructured both on the restructuring 1 scheme and restructuring 2 scheme. The present outstanding in this book is around INR18,000 crores, rest is either closed or have become NPA. That is the balance in that book.
On the MSME, actually there was earlier restructuring scheme, where we had outstanding of about INR2,000 crores. I think, yes, about INR2,000 odd crores other than the COVID restructuring, is only INR2,000 crores of MSME which is restructured earlier.
Suraj Das — B&K Securities — Analyst
Okay, understood. And sir, my last question would be on the ECLGS side. So, it looks like, I mean for the past couple of quarters the ECLGS disbursement is increasing. So, sir, I mean, what is the guidance going out, I think will it continue to increase or what is your outlook here? And what would be the slippages or let’s say NPA percentage in the ECL gross book?
Unidentified Speaker —
See, the ECLGS book is almost adjusted now because all the schemes are almost complete and coverage happened. For us, we have around INR15,000 crores of sanction, around INR14,000 crore was the total disbursement in that ECLGS book. And currently outstanding will be around INR11,500 crores. And so far as the NPA is concerned, again, the NPA is quite lower around 3% is the only NPA of the outstanding book. But if you look at the overall disbursed book, it is much below the 3%. It is behaving quite well.
Suraj Das — B&K Securities — Analyst
Okay, understood. Sir. Thank you. If I have a follow-up, I’ll come back in the queue.
Operator
Thank you. [Operator Instructions]. The next question is from the line of Nilesh Shah from Arrow Investment Advisors. Please go ahead.
Nilesh Shah — Arrow Investments — Analyst
Yes. Hi, sir, congratulations on a fabulous set of numbers. Appreciate the fabulous presentation as well, I’ve just gone through it. I have just one small query on the number of branches that have been closed. I think 442 branches have been closed. Obviously, I think there must be an overlap with Corporation Bank and Andhra Bank merger. So we have got some 9,000 plus branches now. So, any plans to reduce the number of branches and go more on the digitization way, in terms of what the new bankers where people don’t have basically branches and they reduced the number of branches. So I just want clarity on the number of branches that the bank is targeting to probably close or reduce?
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Actually we have closed more than 700 branches because there will be certain procedures before we take it out from the number of branches on surrendering certain things. That’s why the number is showing 400 odd. Actually we have closed more than 700. We have targeted about 750 branches post amalgamation. These are the branches, basically, which were overlapping because on the same place we had 2, 3 branches within a 1-kilometer radius that kind of thing. So that rationalization has happened and we have almost completed that process. And it will be a continuous process to identify branches, which are like which can be closed and replaced by other.
Regarding your digital question, actually, we have started working on this last year that of opening a all digital branches. Basically, these are very small 200, 300, square feet branches, typically in malls and other kind of thing. And in major metros, we have started opening there. They will have support of a relationship managers there but no — like manual activity, it is all machine driven. So we have started and our experience has been very good.
Because I think in metros gradually, most of these manual branches we may have few will gradually get replaced by the digital branches, which we are doing. Added to that, honorable FM also made an announcement on digital banking units about 75 of them are coming up on the next Independence Day. So that model was started by us earlier in the last year itself and this actually is coming again from the government. So this will take it forward. Your point is right, particularly in metros, we will see more of these digital kind of branches and maybe that will really help in bringing the operating cost down as we go forward.
Nilesh Shah — Arrow Investments — Analyst
All right, sir. And I thank you so much, sir. Thank you. That’s the only query I had. Thanks.
Operator
Thank you. [Operator Instructions]. The next question is from the line of Dixit Doshi from Whitestone Financial. Please go ahead.
Dixit Doshi — Whitestone Financial Advisors — Analyst
Yes, thanks for the opportunity. Firstly, sir —
Operator
Sorry to interrupt you. Can I request you to speak little louder please, so we can answer it.
Dixit Doshi — Whitestone Financial Advisors — Analyst
Can you hear me now?
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Yes, yes. Yes, Mr. Dixit.
Dixit Doshi — Whitestone Financial Advisors — Analyst
Yes. So, firstly, you mentioned that the big retail account was — exposure was INR1,720 crore. How much is provided already?
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Actually this is one account, actually for the group, our exposure is higher than that because all the accounts have not slipped actually because they may slip during this quarter. There actually, our provision for the Group totally is 58.50%. We have made some aggressive provisioning in this group. Group as a whole, our exposure is INR2,152 crore, almost INR2,200 crore plus — I think INR2,700 crore investment — including investment book, it is about INR2,700 crores. And we have already made a provision of 58.50%. Since there is some recovery in these account subsequent to March, today [Indecipherable] will be about 60% — 61%. As of March, it is 58.50%.
Dixit Doshi — Whitestone Financial Advisors — Analyst
Okay. Now my second question is, you mentioned that we are targeting a growth of 10% to 12% and also the way slippages are coming down and profits are going up and with capital adequacy of 14.5%. Do we require to raise further capital this year or no requirement?
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Actually, we will be going to the Board, but then I think we don’t need to raise any equity capital. Even the AT1 actually like all the calls are taken and we have reached a sufficient AT1 during the year. So the capital requirement for the next year, according to me, will not be that much actually maybe some bond raising, but equity, I don’t think we may need to raise in the present circumstance. Because even that CET1, not 10.6, we still have plans to reduce some more DTA. Even now my DTA is around INR12,000 crore. There is a scope to reduce about INR3,000 crores, INR4,000 crores of DTA during the next year. That will further add to the — our CET1. So I think we have enough cushion. And I don’t think we need to raise equity.
Dixit Doshi — Whitestone Financial Advisors — Analyst
Okay. And last question from my side. Can you give some guidance regarding the treasury income, how do you see next year. And let’s say till what yield we don’t require to any losses over there?
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Treasury income will come down. There is no doubt about it. We can say it’s roughly, it can be half of what was there this year. Roughly I’m telling. But it will be adequately compensated by the interest income, which will go up. Actually, that is our assessment actually because our standard advances and average advances in the last quarter has gone up substantially. So the — even in the first quarter itself it will be visible, the interest income and all that, that should compensate.
And enhanced write back from the provisions and all that should help because recoveries are like very much visible, lot of traction in the NCLT and DRT cases now we are seeing. So that also will add to the other income part. In addition to that, a lot of technology initiatives, particularly on the trade finance side, we are looking at doubling of our income there. So overall income level, we are hoping that we’ll be able to sustain. But treasury, it will come down. And mark-to-market, I think we have a duration of average around 1.2, on the AFS book. I think maybe we are safe up to [Speech Overlap]. From this point another 75 bps by treasury team says they’re covered.
Dixit Doshi — Whitestone Financial Advisors — Analyst
Okay, okay, fine. That’s it from my side.
Operator
Thank you. The next question is from the line of Jai Mundhra from B&K Securities. Please go ahead.
Jai Mundhra — B&K Securities — Analyst
Yes. Hi, sir, good evening, Sir, first is on your loan to deposit ratio, so as of now I think this is around —
Operator
Jai, sorry to interrupt you, but your voice is breaking.
Jai Mundhra — B&K Securities — Analyst
Yes. So on your LDR ratio or credit deposit ratio on domestic side, right, if I were to exclude overseas advances, then this is around 67%, 68%. Then also in what guidance you are saying that 10% deposit and 10%, 12% advances. I wanted to check, sir, what stops you from increasing [Technical Issues] 68% or maybe 75%, 76%? And because we are a sovereign bank, at least we can manage slightly higher CD ratio. So wanted your thoughts on that, sir.
Ranjita Suresh — Assistant General Manager, Investor Relations
Yes. See, on the credit side, any available opportunity, we don’t let go. Actually whenever there is opportunity to take a exposure which fits into our risk perceptions, and fits into our norms, we don’t let go any opportunity. You would have seen on the corporate side also Union Bank has been very aggressive. And we have taken very good exposures. So we will not let go any opportunity. So one way of increasing the CD ratio is reducing the deposits, so which we can very well do because actually like that is a way.
But then we feel that we — because actually, we don’t raise much bulk deposit, these are all most of the retail deposits, which are flowing. So we can’t let go these customers because in the long term, there may be a damage. So we continue to raise the deposits at a very reasonable rate from our regular customer. That’s why we get a normal growth of deposit of around 10%. So that actually skews our CD ratio because for a 10% deposit growth, ideally I should have a 15% to 17% credit growth to improve my CD ratio.
But when the credit side demand is not that high, but the deposit growth is stable. so that’s why this ratio. But we would also love to do 75% to 78% CD ratio. But right now, the situation somehow is not permitting me to do that. That is a ideal ratio. But then, it may take some more time to reach that.
Operator
Thank you. Sir, the line for the participant dropped. We move to the next participant. The next question is from the line of Ashok Ajmera from Ajcon Global Services. Please go ahead.
Ashok Ajmera — Ajcon Global Services — Analyst
Good evening, sir.
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Good evening.
Ashok Ajmera — Ajcon Global Services — Analyst
Even at the cost of repetition, I would — complements to you for coming out with a very good set of numbers even during these circumstances. I mean, if you look at the operating profit, the net profit, your NPA, gross NPA, net NPA, I think everywhere the bank has performed well and has come near to the targets, which are given or almost achieved. Having said that, sir, I’ve got a few observations and some questions.
Sir, we were talking about this one account of that retail account, where you said that the total exposure is around INR2,700 crores and 58% or 61% is already provided for. But what we read is that this account has been to — had been declared by some lenders, as a fraud account. I think something is in the court also.
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
I don’t think so. Ajmera, you may be getting it wrong. That is on the NBFC space, you are talking.
Ashok Ajmera — Ajcon Global Services — Analyst
Okay. So the remaining amount INR1,050 crore, which is still to be provided for, do you feel any need of that out of the provision in the coming quarter itself? Or it will not be required?
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
See, we are ahead in provisioning. Whenever the need arises, we’ll have enough cushion to do that. Why we have taken a bulk provision upfront is, we had a cushion in this quarter. So we always take this proactive step to make a big provision in the beginning itself, so that in the coming quarters, like we’ll not be under pressure.
So like we have taken it upfront, so maybe in the next two quarters, three quarters, like the other NBFC account, we’ve already reached a provisioning level of 86%. Yeah. So we have covered 86%. So like that. There also we initially took about 50%, 55% provision in the first quarter, then gradually increase, now we have reached a level of 86% here also because these resolutions take time. To safeguard our balance sheet from any shock, we take these provisions upfront. And particularly since we had a very good quarter with good profit, we took a step to make a higher provisioning in this account.
Ashok Ajmera — Ajcon Global Services — Analyst
Yes, sir. My second one is, sir, on the credit growth. If you look at only the quarter-on-quarter, we have grown our NBFC book from INR70,280 crores to INR19,150 crores, of course, including the housing finance, which is around INR7,000 crores growth, so the remaining growth of about INR11,000 crores has come from the NBFC space. So I believe they are all AA or AAA rated, though the breakup has been given, but in this quarter, is it the government factor [Phonetic] you’re seeing or AA, AAA NBFCs?
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
I think we have a presentation on that, Mr. Ajmera, one slide is there. You can see the quality of NBFC book. I think it is 98% to 99% on very, very high grade NBFCs. So the quality is all high, and it construes major chunk of government, PSU and top corporate bank with NBFCs. I can actually do that.
Ashok Ajmera — Ajcon Global Services — Analyst
If you take out the [Speech Overlap].
Operator
Thank you very much. I’m sorry to interrupt you.
Ashok Ajmera — Ajcon Global Services — Analyst
No. Hello. At least, let me have some few more questions.
Operator
Sir, I do apologize. Can I request you to join back the queue once again.
Ashok Ajmera — Ajcon Global Services — Analyst
But I think you’re not doing the proper — this thing. You’re giving so much of time to the others, and when I — my turn comes, you are reducing the time.
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Yeah. Ajmera ji, one more question, yeah. We’ll take one more question from Ajmera.
Ashok Ajmera — Ajcon Global Services — Analyst
Sir, my question is on the next one is that on the recovery front, sir, we are coming quarter-to-quarter down on the recovery from the written-off accounts, which is coming down every quarter. And my second question on the recovery only that our annual recovery target of INR16,000 crores, whether it has been met. And secondly, some color on the NCLT, some of the account last time, it was reported by Chandra ji that out of INR2,500 crores of the NCLT already approved, INR900 crore was to be recovered in this quarter. So what is your status on the NCLT [Speech Overlap].
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Yeah. Yeah. I think recovery we have done very well. I will ask Ashok Chandra to answer your question.
Ashok Chandra — Chief General Manager
Yeah. Good afternoon, Ajmera, sir. First of all, the TW recovery, I will touch because you mentioned about that. Last year, the entire TW recovery was INR2,485 crores, and this year, it is INR2,734 crores. So overall, if you see the entire financial year, TW recovery has gone up. And year-to-year versus also previous years also, if you see, every year, it has gone up now. So that is the first thing, I think I need to clarify that.
Ashok Ajmera — Ajcon Global Services — Analyst
I was referring only the quarter. Anyway, sir, yes, yes. of course. I take it.
Ashok Chandra — Chief General Manager
This quarter what happens, see sometimes quarter was around INR300 crores in this particular quarter, but quarter it varies because recovery, you know, it doesn’t happen in one particular quarter or whatever you estimate.
Now second point was that NCLT approvals are there, and where the COC approvals have been there, see, as of now also, we have 102 [Phonetic] accounts, where the COC approvals are there, and where the NCLT approvals are already there. And that both the segments put together, there are 60 accounts, where the COC has approved, and it is lying in the NCLT for their approval, and that amount is INR5,600 crores. And there are 42 accounts, which have been approved by NCLT, and we are waiting for the resolution to happen, that amount is around INR6,300 crores.
So both put together, we have around INR12,000 crores, which is likely to realize in this entire financial year because the entire financial year is there for us to realize that amount. And since this is all in the advanced phase, we expect that, yes, these things should happen in this financial year. And your pointer [Phonetic] that INR16,500 crores of recovery we have done, but that is on a gross basis because in addition to the cash recovery what we’ve shown there, plus upgradation, there is a recovery from written off account and recovery on the interest on NPA, all put together, we have crossed INR16,500 crores of recovery for the year.
Ashok Ajmera — Ajcon Global Services — Analyst
Thanks for giving that information, sir. And definitely, congratulations to you on the whole entire year if you take it, you performed very well. All the best to you, sir.
Ashok Chandra — Chief General Manager
Thank you.
Ashok Ajmera — Ajcon Global Services — Analyst
[Speech Overlap] I think for everybody, it may be — we are meeting at the Analyst Meet maybe in the last time. But I wish you all the very best for your future endeavor, sir. Thank you.
Ashok Chandra — Chief General Manager
Thank you. Thank you so much.
Operator
Thank you very much. [Operator Instructions] The next question is from the line of Jai Mundhra from B&K Securities. Please go ahead.
Jai Mundhra — B&K Securities — Analyst
I just got disconnected last time. So if you can also share how much was the MTM loss for the quarter and where is this being accounted for because I could not see that in the deck.
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
No, no, come again, how much.
Unidentified Speaker —
MTM loss [Speech Overlap] that’s shown as a part of the other income itself because as per the new accounting norm, there was no MTM loss.
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
There is — as per the accounting norms, it has to be shown in other income only. But this quarter, there is no MTM loss.
Jai Mundhra — B&K Securities — Analyst
There is no MTM loss. And so let’s say now you would have pegged till 6.85, right — sorry, 6.85, right which was a March closing roughly?
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Yeah, yeah, that is March numbers. But then actually, I think we answered it earlier also that even now actually like we…
Unidentified Speaker —
We are MTM positive as of now.
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
We are MTM positive as of now.
Unidentified Speaker —
Our duration is 1.20.
Jai Mundhra — B&K Securities — Analyst
Okay. Understood, sir. And sir, on your restructuring book, how much of that would have come out of moratorium as of now, roughly, just to understand?
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
I think we may not have that number we’ll share with you. So I think we may not have that number. We may have to check. So Jai, actually the ECLGS 1, most of the accounts will be because that was 12 months moratorium. So this is all out of moratorium. ECLGS 2, like we had accounts with 24 months moratorium. They will may be under this thing. But major chunk will be out of moratorium. But then it is only like estimate, I’ll come back to you with actual numbers. But I’m very sure the first lot was 12 months moratorium, and that period is over.
Jai Mundhra — B&K Securities — Analyst
Right. And sir, if you have the loan mix — break through of the loan book by MCLR and repo rate [Indecipherable].
Operator
Sir, sorry to interrupt you, but once again, your voice is breaking terribly.
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
We got his question. I think 52% of our book is in MCLR, and the 22% of our book is in EBLR and 10% under treasury billing. That makes 74%, 84%, 85%.
Jai Mundhra — B&K Securities — Analyst
Right. And the rest would be base rate and [Indecipherable].
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Yeah, rest would be BPLR and base rate.
Jai Mundhra — B&K Securities — Analyst
Terrific, sir. Okay. And last question, sir — sorry, last two questions, sir. One is, have we finalized how much is the family pension for us because…
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Yes, yes, INR1,900 crores.
Unidentified Speaker —
INR1,902 crores.
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
INR1,902 crores, and we have decided to spread it over five years. So INR380 crores is booked to this year, remaining is amortized. INR1,520 [Phonetic] crores.
Jai Mundhra — B&K Securities — Analyst
Right. And last question sir, from [Technical Issues], I think [Indecipherable] mentioned some 3% is from ECLGS While this is a small amount, but have you started invoking guarantee? I mean, how difficult for you — would that be? If you — have you done or do you intend to do or what is the thought process there?
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Invoking personal guarantees of the defaulters?
Jai Mundhra — B&K Securities — Analyst
No, sir, invoking ECLGS guarantee from government.
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Oh, sorry, you are talking about ECLGS. Your voice is breaking actually. Okay. Now actually, ECLGS, I think guarantee invocation [Phonetic] stage is yet to come. I think we are not ready to reach that level. But then I can assure you that sufficient funding has happened in that front. So as on like I think earlier experience also on the CGTMSE and other things, we will not have any problem invoking the guarantee and claiming the money. We’ll not have any problem because I was in the Board of that fund also. So they are sufficiently funded and sufficiently [Speech Overlap]. Yeah. So I don’t think we’ll see any problem in getting the money from the guarantee fund.
Jai Mundhra — B&K Securities — Analyst
Great, sir. All the best, sir, and thank you.
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Thanks.
Operator
Thank very very much. The next question is from the line of Akhil from RoboCapital. Please go ahead.
Akhil Hazari — RoboCapital — Analyst
Hello, good afternoon. Am I audible?
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Yes, you’re.
Akhil Hazari — RoboCapital — Analyst
Thanks. So just regarding the tax rate the Company pays currently for the past few quarters it’s been quite high, and this quarter, it’s come down quite a bit. So I just want to know what is the normal tax that the Company is going to pay going forward?
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
We are paying 0 taxes. Actually, what number you see there is a reversal of DTA. Actually, since we have a carryforward loss, so we — actually our tax liability is not there. So we are using this opportunity. I think this year, we had — we were sitting on a big chunk of DTA, which also gets reduced from our CET1. So that DTA we’re gradually reversing. Now actually, the final position at the end of the year is about INR12,000 crores of DTA.
Why we are doing it is to move to the new tax regime, I will take a onetime hit. So we want to reverse this DTA. And like maybe by the end of the next year, if we are able to reverse another INR4,000 crores to INR5,000 crores, then we will take a call of moving to the new tax regime. So this is a DTA reversal, it is not the tax payment. Okay. Fine. No problem. Okay. That’s it from my end. Thank you so much.
Operator
Thank you. [Operator Instructions] The next question is from the line of Mahrukh Adajania from Edelweiss Financial Service. Please go ahead.
Mahrukh Adajania — MahruEdelweiss Financial Service — Analyst
Sir, hello.
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Hello, hello, ma’am. Yeah.
Mahrukh Adajania — MahruEdelweiss Financial Service — Analyst
Hi. I have a couple of questions…
Operator
Mahrukh, sorry to interrupt you, but you’re sounding distant from the phone. Can I request you to speak through the handset.
Mahrukh Adajania — MahruEdelweiss Financial Service — Analyst
Can you hear me now?
Operator
Slightly better, ma’am.
Mahrukh Adajania — MahruEdelweiss Financial Service — Analyst
Sir, first, I just wanted to check one thing that for a lot of other PSU banks, there has been big slippage in small loans, MSME below 50 [Phonetic] million loan. So what was really happening there?
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
See, it is again a question of monitoring, actually. That’s why we decided to share our SMA-1 and SMA-2 number for the whole book, which is below 3%. We have a very, very efficient monitoring system, and a collection mechanism. That’s why our probability of getting there is very low. My SMA-1, SMA-2 book is below 3% for the whole advances book. So I don’t foresee that problem for our bank.
Mahrukh Adajania — MahruEdelweiss Financial Service — Analyst
Got it, sir. Sir, when will the EPN [Phonetic], when can you start invoking ECLGS guarantees after what time frame, within how much time of a slippage?
Unidentified Speaker —
It is within 90 days of default.
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Yeah. That is within 90 days of default we have to invoke.
Mahrukh Adajania — MahruEdelweiss Financial Service — Analyst
Got it. And sir, given that the SLR duration is now so low below one year and what would be the loss on the books currently?
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
We didn’t have any loss in the previous quarter. I mean, mark-to-mark losses was not there in the last quarter, and we have sufficiently cushioned for some more increase in results.
Mahrukh Adajania — MahruEdelweiss Financial Service — Analyst
Okay, sir. Got it. Thank you so much, sir. Thanks.
Operator
Thank you. [Operator Instructions] The next question is from the line of Abhijeet from Kotak Securities. Please go ahead.
Abhijeet Sakhare — Kotak Securities — Analyst
Yeah. Good evening, sir.
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Good evening.
Abhijeet Sakhare — Kotak Securities — Analyst
Sir, some data [Phonetic] questions. What was the interest reversal for the quarter?
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Do you have the number, interest reversal? I don’t think there is any interest reversal.
Unidentified Speaker —
Will be there for [Indecipherable] but we don’t have the data.
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
We’ll share the numbers, right. No, not major chunk, but then just because when the NPAs happen, some reversals will be there. But then, we have not carved out the number. We’ll give you.
Abhijeet Sakhare — Kotak Securities — Analyst
Sure. And sir, just to double check, SMA-1 and 2 on the entire book, you said close to 3%. The last quarter’s number was a little lower than 2%. Is that number correct?
Unidentified Speaker —
No, no, no, last quarter, we have not disclosed the SMA-1. We have disclosed only SMA-2.
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
SMA-2.
Abhijeet Sakhare — Kotak Securities — Analyst
Okay.
Unidentified Speaker —
That was also above INR5 crores [Phonetic]. Yeah, that is above INR5 crore and all that, now that has come down.
Abhijeet Sakhare — Kotak Securities — Analyst
Okay. So that 1.9 from last quarter has gone to what number today?
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
0.6.
Unidentified Speaker —
0.6 [Phonetic] crores. Yeah.
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
0.6.
Abhijeet Sakhare — Kotak Securities — Analyst
Understood. Sir, next one was that on the corporate book, the growth that you’ve seen on a sequential basis, if you can talk about the yields that, this is coming in at because we are just trying to figure out the NIM contraction that has happened, how do we sort of interpret that number?
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Actually, the 10% of the book, which is linked to the T-bill, that is where the — we saw the margin shrinkage basically, this is where the PSUs and some of the government agencies started borrowing at a T-billing rate and many banks competed there. That is where the margin shrink. And now that is gradually going away, gradually going away. But the last two quarters, we saw that. So like quantify the effect, it will be difficult. But I think gradually, it will go away because already we’re seeing tightening of interest rates in that space also.
On the EBLR front and MCLR front, we didn’t see the margin shrinkage. Actually, this quarter, that will work to our advantage because already we have increased the prices and the deposit cost will not go down that — go up that fast. So we’ll have advantage. So that 10% of the book is where the shrinkage happened.
Abhijeet Sakhare — Kotak Securities — Analyst
And you’re not tweaking the credit spreads, right, on the benchmark? Is it getting entirely passed through whatever changes that are happening…
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
On the EBLR, actually, I can’t change the other parameters. Only the benchmark 40 basis point, it will go up straight away. On the MCLR side, this time, we have only factored the CRR impact because that’s a negative carry, and the MCLR will go up when the deposit rates will go up. Other costs, we can’t change overnight because there is a schedule for that and RBI checks that. So operating cost and all that we can’t change that frequently. But then, see MCLR will — now they have factored a CRR impact, maybe gradually, the deposit increases will factor in. EBLR is linked to the reverse repo, 40 basis point, it has already jumped.
Abhijeet Sakhare — Kotak Securities — Analyst
Got it. Sir, just on this one, the reset period on EBLR is 3 months, right? So is it fair to assume that the 25 basis — or 40 basis repo hike will slow forward with a little bit of a lag, right? That won’t reflect…
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Well, there is no three months there. There is no three months there. It is immediate.
Unidentified Speaker —
[Indecipherable].
Abhijeet Sakhare — Kotak Securities — Analyst
Okay.
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Maybe some banks may have the policy. But in our case, it’s immediate.
Abhijeet Sakhare — Kotak Securities — Analyst
Okay. Okay. Understood, sir. That’s all. Thanks a lot.
Operator
Thank you. The next question is from the line of Arjun Bagga from Dolat Capital. Please go ahead.
Arjun Bagga — Dolat Capital — Analyst
Yeah. Thanks for the opportunity. Sir, just one question regarding this retail account exposure. So I understand that we have around INR2,700 crores of exposure to the whole group with provision of 58.5%. But just wanted to check, there was another INR1,720 [Phonetic] crore number that’s being discussed like what is that?
Unidentified Speaker —
No, that was within that only, INR1,720 crore number.
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
No, that is a slippage in the previous quarter because there are multiple accounts in that. So INR1,720 crore was the account, which slipped last quarter. Remaining accounts are still standard…
Unidentified Speaker —
Within the group.
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Within the group.
Arjun Bagga — Dolat Capital — Analyst
So I understand that like around INR500 crores is still standard like because since I think INR500 crore is the investment book. So INR500 crores is standard, INR500 crore is the investment book, and INR1,700 crores has slipped. Is that understanding correct, sir?
Unidentified Speaker —
I will just explain you. In fact, other books are also those accounts have also slipped in this month, April month, except one account, where exposure is INR255 crore. So INR2,700 crore, which is the figure we have given, in that, you can reduce INR255 crores. Rest all — you have INR255 crores. As on today, except INR255 crores, everything has slipped now.
Arjun Bagga — Dolat Capital — Analyst
Everything has slipped. Sure, sir. This is very helpful.
Unidentified Speaker —
[Indecipherable].
Arjun Bagga — Dolat Capital — Analyst
Yeah.
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Past [Phonetic] number is right, INR1,720 crores. Yeah.
Arjun Bagga — Dolat Capital — Analyst
Yeah. Thank you, sir.
Operator
Thank you very much. [Operator Instructions] Ladies and gentlemen, we will take that as the last question. I now hand the conference over to Shri Rajkiran Rai G for closing comments.
Shri Rajkiran Rai G — Managing Director and Chief Executive Officer
Thank you. Like always, your participation always helped us to look inwards and analyze better. So I thank you for everyone for helping the bank and also participating. So we have really turned around, and we are able to show very consistent performance. We have always stuck to our projections. And I’m very sure going forward also the projections what we do, we will continue to deliver the results, as per the projection. Thank you.
Operator
[Operator Closing Remarks]