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Bandhan Bank Ltd
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Ladies and gentlemen, good day, and welcome to the Q1 FY '22 Earnings Conference Call of Bandhan Bank Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Hiren Shah, Head of Investor Relations. Thank you, and over to you, sir.
Thank you, Steve. Good evening, everyone, and thanks for joining this conference call. We are glad to welcome you all to discuss Bandhan Bank's business and financial performance for the quarter ending June 2021. We will take the opportunity to update you on the recent developments in the industry and Bandhan Bank during this quarter. To discuss all this in detail, I've got with me our Founder, Managing Director and CEO, Mr. Chandra Shekhar Ghosh; our Chief Financial Officer, Mr. Sunil Samdani; and myself, Hiren Shah. Now I would like to request our founder MD and CEO; Mr. Chandra Shekhar Ghosh, to brief you all about our bank's operational and financial performance, along with development for the quarter ending June 2021. Over to you, sir.
Good evening, and welcome to this earnings call on our '22 first quarter financial results. Thank you so much for attending in the evening of the day of working day closing on that. Hope you are taking care and stay safe. This quarter is in -- we all know that it's a very challenging quarter in our life. Second wave and lockdown in severe parts of the country. This time, second wave also impacted rural and the semi-urban areas. The silver lining is that beginning July, caseload has reduced and lockdowns have been lifted in different parts of the country. Health care infrastructure is now well-equipped to deal with the cases and vaccination drives has gathered momentum. We are -- get the confidence on that. Several rating agencies and the leading institutions predicted a high single-digit growth rate for Indian GDP in financial year '21-'22 despite a severe second wave. Despite these challenges, business has done reasonably well. Advances have grown 8% year-on-year. Out of that, the 12% growth in EEB and 3% growth has come in a housing loan. And quarter-on-quarter basis, advance growth has declined 8%. So that is the total advance in the bank, INR 80,387 crores as on 30 June, '21. CASA has grown very good, which is a 47% year-on-year and retail ratio CASA is 43%. Our retail-to-deposit ratio has come very good, which is at 83%, so that our total deposit growth is at 28% year-on-year and total amount is INR 77,336 crores. Total income growth has come 20% year-on-year, which is amount wise INR 2,648 crores. Operating profit has also grown 18% year-on-year, amount wise INR 1,871 crores. NII outlook has come on that INR 2,115 crores. Since the end of the previous quarter, no one anticipated the situation to get as bad as we it during quarter 1 with respect to COVID. However, the majority of our NPA customers are part and full paid, and we are confident that they will regularize once their business return to normal. Therefore, since RBI allowed for us to restructuring some work. We have done that since classified. Bank restructured loan in this quarter is INR 4,661 crores. Out of that, INR 4,100 crores is an EEB portfolio. Now total restructured amount of INR 5,275 crores. I have mentioned in here that is, 84% of my restructured customers are paid in the last quarter. So that means they are showing they are very good customer for us, only need the time to come as they regularize. This COVID situation, staff are not able to go to customers to collect the installment from their doorsteps. Then also bank achieved pan-India collection efficiency of this quarter is 101%, including arrears. If I come to this the 58% of my total portfolio as a CEO and which is that in that the demand of the last quarter was in INR 13,720 crores, and our team have been collecting amount of INR 13,450 crores which is including the areas that come to this 98% collection efficiency. If we go to this the collection efficiency without arrears that is in -- and EEB is 86%, West Bengal is 85%, and Assam is 67%. Again it has been mentioned on that, those are NPA customers. 72% of the NPA customers are paid in the last quarter. So we feel that that gradually, it is improving and customer is coming to repay the installments, though it is in part and full, but the debt will become future and very soon will become as a normal. Bank always is trying to strengthen the balance sheet, so that provision also has been helped us to strengthening that balance sheet. So this quarter bank has been provisioned INR 1,375 crores which is a total provision in the balance sheet is INR 3,983 crores. Accelerated provision on NPA, INR 751 crores in this quarter. And with this provision, it has been helped us to increase our PCR 62% from the last quarter at 50%. We have not done any retain of this quarter. Profit after tax has come INR 373 crores, which was in the last quarter INR 103 crores. Gross NPA have been risen, in that 8.2%. And net NPA has come 3.29%. Credit cost is at 7.2%. NIM is improved, it is 8.5%. Fee-based income as a percentage of the total income, 13.5%. Cost-to-income ratio has declined. It has come to this now 29.3%. Capital adequacy ratio, which is another indicator of the balance sheet, is strong and which is now at 25%. Cost of fund, 5.7%. In this quarter, bank has added 5 lakh new customers and 264 banking outlet opened in the last quarter. It has been helped us our one strategy to reach it to the more in the [indiscernible] underbank and unbank, and rural and semi-urban areas. So our rural and semi-urban areas banking outlet now has been raised to 73% of the total. There is no argument that if India's economic growth has to divide, and if we have to become a $5 trillion economy, then the welfare of rural economy has to be ensured. Yes, there may be short-term challenges due to COVID, but in the long term, the growth story is intact. And we believe it will -- there will be an expansive growth once the situation normalizes. This is what our experience of the last 2 decades and having built with the challenges in the past whatever we tend to do on that. Robust well-capitalized balance sheet at the bank have been helped us with increased challenges. We can like to grow our business. This is an opportunity for Bandhan Bank. We know that we have a plan of that transformation. I would like to mention here that despite the focusing on managing short-term challenges, the bank continue to make progress on its transformation agenda. Looking to create an asset portfolio, that is well diversified and balanced between secured and unsecured, growing the commercial banking, which is SME lending, gold loan, personal loan and auto loan businesses. In the non-EEB space, we have been also hired very senior management team members to the bank to run this type of business. EEB group loans are graduate to individual loan. It is also our part of the strategy to diversify the portfolio geographically and the product-wise. In that sense, our group loan have been graduated to the individual loan very good way, which is now 12%, which was the one per report only 5%. So EEB portfolio share increased 43% from 39% in other states other than Bengal and Assam, which have been helped us to diversify the portfolio geographically. Bank focus is to continue rural, semi-urban and different types of portfolio, which is the secured and unsecured. And also we know that banks are transforming technologically. New technology partners, we are incorporated the treasury, digital banking with the customer experience. Using these analytics of credit decision to ensure first services and high asset quality, we also introduced Neo+ Digital Savings Account together in space and which helped the bank to future focusing on that, the transforming as a technology and digital bank. Having just to give the 2 information here then, and as for the last quarter, that 87% of the transition happened in bank in digital. We have the plan on that by this year, it will be reached as part of the industry, 90% digital transaction in the bank. 11% of the customer open accounts in the bank in the last quarter digitally, that have been also encouraged us how digitally successfully support to the customers to increase the number of transactions and also opening a new account in the bank. I hope that I have a very confidence on that, the future after this COVID situation will be like to grow as per our wish and maintaining that good quality of the portfolio. Thank you to all of you. I hope you have some questions, no doubt on that. Before that, we have already given that -- one of the presentation, which in your hand on that the investor presentation. So 2, 3 pages will be like to clarify what we like to say in this presentation. I request to my CFO, Mr. Sunil Samdani, who will like to give 5 minutes on the speech on that. And then we'll go to this question and answer. Please, Sunil.
Thank you, sir. And good evening, everyone. I thought it will be a good opportunity to explain what we intend to see in terms of our business insight. So we have given 5, 6 slides to explain the quality, strength of our portfolio and franchise. I thought we'll explain, I'll take 5 minutes to explain it. Starting with Slide #5. What we are trying to tell you here is this deceleration in the EEB portfolio is largely on account of corrections, which we are able to do during the quarter, almost 98% of our demand got satisfied, which means the collection efficiency, including arrears for the EEB portfolio is 98%. Now coming to the Slide 6, right? What we are trying to say here is, the restrictions, which came on account of COVID 2 in our geographies, particularly in Bengal and Northeastern states, came late vis-a-vis the other parts of the country. So when the restrictions were there in the April and May in the other part of the country, the restrictions actually got implemented in states like Assam and West Bengal due to elections only from mid-May onwards. So these restrictions continue till mid-July as against the other states where it started early and ended by June. So as a result, our collection efficiency for the quarter continues to be healthy because for the first 45 days of the quarter, these states were working fine. So our collection efficiency, excluding NPA, was 86% for the first quarter in EEB vertical, 81%, including NPA and including arrear, it was 98%. Similarly, on the next slide, Slide 7, the collection efficiency for the bank as a whole is just discussed from the EEB vertical. Now for the bank as a whole, for the month of June, it was 84% excluding NPA and including NPA 80%. But if we look at for the quarter, the excluding NPA was 89% and including NPA, it was 85%. These are excluding arrears. If we include arrears, the total collection efficiency for all products across bank stands at 101%. And as we -- and as we discussed earlier, as and when the restrictions get lifted, which we saw started doing it in the last 15 days, the collection efficiencies have also started improving, and we hope -- and we are confident of reaching it and crossing the average pan-India level. Now coming to Slide #8. What we are trying to show here is how is the payment behavior of our NPA customers, the restructuring that we have done on these customers and how does this portfolio of NPA and restructuring looks like. So out of my total NPA customers during the quarter, 74% of them pay either in part or in full. 26% of these customers did not pay. Of the 26% customers who did not pay, 34% of the 26% was contributed by Assam and 66% was for the rest of India. The reason that we are excluding Assam and rest of India is because we all know that there is a separate resolution planned which has come up for the Assam, which we will discuss later. In terms of restructuring customers, firstly, why restructuring, right? In the first wave, when the COVID first wave came, the RBI has announced the moratorium. This time, during the second wave, the moratorium is not announced by RBI. Instead, they had given that option to individual banks to decide the form and shape of support that they want to give to their customers to tide over these difficult situations. Accordingly, what we have done is, we have taken the form and shape of moratorium and given them restructuring. So restructuring essentially here means moratorium for us. Now how have we considered these moratorium, these restructuring customers? These are largely part payment customers where we could not reach them due to restrictions or they could not reach us due to restrictions. Largely part payment customers and few BUs, or the business units, which were in those locations, which were containment zones and were in the continuous lockdown for the full 3 months of the quarter. So that was the criteria to consider this. And within this, restructured pool, 84% of the customers have paid us during the quarter. 16% of the customers did not pay. Now who are the 16% of these customers? 41% of the 16% are from Assam and 59% are from rest of India. Here again, what is also important is to understand the situation in Assam in particular, and in West Bengal and other Eastern countries is, as we discussed earlier, the lockdown situation. Does it mean that these 41% of the restructuring customers are bad? The answer is no. Or 59% of rest of India is also bad? The answer is no. There has been restrictions in our core geographies, which continued for a longer period of time. And hence, part of this is because of those restrictions they are not able to pay. The next slide is on the SMA position, which we normally -- we have started giving from the last quarter. It's self-explanatory. I won't take time here. Now coming to Slide #10. What we have tried to explain here is, there is a scheme which is announced by the Assam government on supporting the Assam microfinance customers. Now there are contours of the scheme, which say which customers are eligible, which customers are not eligible. Now basis scheme, we have bifurcated our portfolio. Out of the INR 63.5 billion portfolio that we have, INR 35.8 billion worth of portfolio qualifies under that scheme and INR 27.7 billion worth of portfolio comes outside that scheme. Now let's understand why is this INR 27.7 billion customers are outside the scheme because there are 2, 3 criteria, which they have laid down to be eligible for the scheme. One and the largest part for us for being outside the scheme is disbursement made after 31st December, 2020. So of these INR 27.7 billion, INR 18.5 billion worth of portfolio is here because of disbursement being made post December 2020. The other criteria is the overall exposure of the customer as per the Assam scheme should not be more than INR 125,000. While we are a universal bank and this limit is not applicable for us. But as a criteria laid down by Assam government to be eligible for this scheme, they have restricted the overall exposure from all lending institutions of a customer at INR 125,000. So INR 8.2 billion of the INR 27.7 billion are those customers where their exposure from Bandhan and other institutions put together is more than INR 125,000, and hence, they are part of the INR 27.7 billion.And third and the last criteria is where Bandhan is fourth or more lenders to the customers. There, for us is very small, less than INR 1 billion. The sum of all debt constants under the INR 27.7 billion customers. Now let's understand the payment pattern and the payment behavior of these INR 27.7 billion customers. 76% of them have paid in the month of June. That's the recent behavior of these customers. 24% of them have not paid in the month of June. Now here again, we are talking about Assam. And in the month of June, Assam had the strictest lockdown. It was one of the states, it has the most strictest lockdown in the entire country, right? Even the restaurants were not open for the entire day, only in-house dining was allowed. That was the extent of lockdown in Assam. So when we say 24% of the customers did not pay in June, we have to consider that fact, the level of restriction in Assam in the month of June. So we don't consider the 24% to remain in the nonpaying category going forward as well. Now the INR 6.6 billion, which is not paid in the month of June, we are already carrying INR 8 billion provision for the portfolio of Assam. That's one point. The other point is the technical write-off that we have done over the quarters and years also is qualified portfolio for the purpose of resolution scheme of Assam Government. So that book -- and if the money comes in that portfolio, that recovery from written-off account, there is an additional opportunity of almost INR 8 billion. This is over and above this INR 8 billion of provision and INR 35.8 billion of portfolio, which is eligible in the scheme. So that's on the Assam portfolio and its analysis vis-a-vis the government scheme. Now we also want to update you on the restructuring that we did on the housing portfolio in Q4 of last year. We did restructuring of INR 6.2 billion in housing. Out of the INR 6.2 billion, the restructuring here again was in the form and shape of moratorium. So out of the INR 6.2 billion, INR 2.6 billion worth of portfolio is out of -- their moratorium is over, and they are now regular customers. And the behavior of these customers who are out of restructuring or the moratorium is over. 96% of those have paid and we are talking about -- and 4% of them have not paid. So what we are saying here is, as and when the restructuring ends, the behavior of these customers are not very different from the nonrestructured customers. Now coming to the last slide, which I want to explain is Slide #12. On the Credit Guarantee Fund or Micro Units, which is called CGFMU. Now this is different from 3G ECLGS, right? This is a scheme which is available 24/7, all throughout the year, irrespective of COVID or not. So this is a scheme set up by the Central Government through the CGTSME (sic) [ CGTMSE ] scheme, where the lender on payment of the premium, we can call it insurance premium loosely, can guarantee or cover their portfolio on the payment of premium. So bank has availed the CGFMU guarantee, for our portfolio, not for the entire portfolio, but this portfolio. The guarantee, which is eligible are only for the portfolio, which are disbursed in the last financial year FY 2021, and they are non-agri portfolio. So agri is not eligible and part of this. So what we are saying here is, out of my INR 222 billion worth of portfolio, which is outstanding and dispersed till March, INR 95 billion is covered under the scheme, which is the coverage of 43%. Similarly, for Assam, INR 62 billion worth of portfolio, which is disbursed till March '21 is outstanding today. And the coverage there is INR 28 billion, which is 45%. And for the rest of India, it is 10%. Now let me explain you in brief what is the scheme. As I explained, this scheme is a guarantee which the lenders can again on payment of premium, which we have availed. The premium amount here is 1% or 0.5% depending upon priority districts, which we have defined. The scheme says first 3% of the loss of the pool, which you are availing the guarantee, should be borne by the lender. And any loss above 3%, 75% of which will be borne by the guarantee provider, which is CGTSME (sic) [ CGTMSE ] and 25% has to be borne by the lender; in our case, bank. So essentially, this is an additional protection that we have on our portfolio, which is over and above the -- if I talk about Assam scheme, if I talk about ECLGS, what we have availed and the provisions that we have in our book. In addition to that, we have this guarantee covers, which can also help us recover our loan losses that we have incurred. And lastly, just to clarify, we have not done any ECLGS disbursement during the quarter, and our top-up loan disbursement for the quarter has been INR 0.5 billion for the quarter. So thank you very much. Thank you for your patient hearing. Happy to take questions.
The first question is from the line of Amit Nanavati from Nomura.
Am I audible?
Yes.
Yes. So sir, firstly, if you can give a breakup of what is 8 to 30-day positive portfolio for us similar to what we're given last time? That will be helpful?
Sorry, you want the breakup of?
8 to 30-day DPD, what was the mix between Assam, West Bengal and rest of India, you have given this last quarter?
So at an overall level, it is about 8.5%. The breakup, I don't have it ready because we've given the SMA position today. Given the restrictions that we have today, we thought this is more relevant.
So overall, it is 8.5%, which will be between 8 days to 30 days right?
That should be 0 days. That includes 1 to 7 day as well. So I really don't have that number [indiscernible].
Okay. Okay. Got it. Secondly, if you can just explain the nature of restructuring that we've done in the EEB portfolio and if it's moratorium, when do these come out of moratorium and starting to kind of make full payments?
So firstly, the fact that we've given them moratorium is to enable them in case they are not able to reach us or we are not able to reach them, this should help just looking at the environment. As I have already mentioned, 84% of the customers who have availed this restructuring or scheme in Q1. Now how we have considered? We mentioned that this is largely part payment customers and customers in the area, which is containment zones, which were continuously under lockdown for the full 3 months.
Understood. Also, but if you can just quantify, so we've been highlighting a large part of our NPA customers have also been paying or part paying at least, now even restructured customers are paying or part paying. So what was the demand raise? And what is the actual collection in those buckets, if you can just highlight that? I just want to understand what's the quantum of recoveries that we are getting out of this pool?
So I'll give you one number, which is on the movement of NPA, right? Like EEB pool, the slippages for the quarter was INR 1,036 crores, and the recoveries and upgrades is INR 510 crores. So INR 510 crores should give you an estimate on how these NPA collections and the upgrades have been happening.
Understood. Understood. Last thing on the Assam, right, basically, you highlighted roughly we have around INR 16 million of provision plus write-off, which effectively can be recoverable through the government scheme, is that understanding correct?
No, what we are saying is our current outstanding for Assam portfolio is INR 63.5 billion. Of this, INR 35.8 billion worth of portfolio is eligible under the scheme. Now depending whether they are zero DPD, they will get INR 25,000 upfront. If they are overdue customers, they will first get the overdue amount. And once they continue to pay, they will get additional INR 25,000 amount. And for NPA, if the government declare them as dispute, they will get the entire benefit without that factor. Otherwise, also, they will get, but their credit rating will get impacted.
The next question is from the line of Shagun Varma from Goldman Sachs.
This is Rahul here. Just wanted to repeat this movement of slippages. You said INR 1,000 crores -- INR 1,040 crores is the addition. And INR 510 crores is upgradation recoveries and the rest is -- sorry, it doesn't add up. Can you just repeat these numbers?
No, we are talking about the EEB vertical only. Because the question specifically was for EEB vertical. If you want to look at these numbers at the pan-bank level, all verticals, the slippages were INR 1,682 crore, the upgrades and recovery was INR 999 crores.
And any write-offs during the quarter?
No write-off for the quarter.
And the differential between EEB and INR 1,682 crore is what, from mortgages or...?
The housing book, which went into NPA and got upgraded.
Okay. Okay. Okay. The second question is coming to Slide 12 on this credit guarantee, so this guarantee is eligible for the INR 143 billion worth of pool. So what is the NPA out of this that you currently have, which will be eligible for reimbursement?
So this guarantee will be available after the end of this financial year. So I have taken this for FY '21, the scheme is for 2 years. So once FY '22 gets over, I see what is my level of NPA. Then I will be in a position to decide what is my NPA levels here. Today's position may not be relevant.
No, I'm just trying to understand of this INR 143 billion, let's say, the NPAs are about 10% hypothetically speaking, for the remaining 7%, you will get 75% from the Government of India, is that a right understanding?
Yes.
And this will be available to you next year, is it?
Yes. By the end of group financials, whatever is the provision, we will accordingly get.
Okay. Okay. Okay. Understood. So at this point of time, INR 143 billion is standard portfolio in the books is what you're saying?
No, it could be NPA as well. I am saying, these are the portfolio -- so this is the total portfolio where I've availed the guarantee.
What I'm trying to get to is of the total strength that we have currently, what is covered by this Credit Guarantee Scheme?
In your example, if 10% is the NPA level of the INR 143 billion, 3% I have to bear. 7% -- 25% of this 7% I will have to bear additionally, 7% we will [ still get. ] So in all, about 5% to 5.5% is my loss if the NPA is 10%. So roughly, my NPA, as an example of 10% NPL, it becomes half.
Okay. And this would be -- I mean, can it be mirrored on the current pool of NPLs and restructuring particularly NPLs, which is INR 64.4 billion?
It can be because any which way, my 88% -- 85% almost of the portfolio outstanding today is out of the disbursement made in previous financial year, where Assam and Bengal is covered, excluding agri portfolio because agri is not allowed to cover under the scheme.
Okay. And how much is agri, 50%?
About -- agri would be about 35% to 40% because agri-allied again is allowed.
Okay. Got it. Okay. The other question I had was on the SMA portfolio, which is I think comes about 22.5%. Does this include the restructuring portfolio also?
No, the restructured pool will not be part of the SMA here.
Okay. So restructure goes in the 77%, which is current portfolio?
Yes.
Understood. Understood. Got it. Just one last question, and then sort of a big picture question on the Assam business and maybe to Mr. Ghosh as well. Now this waiver has happened, clearly, the credit practices in some categories would take a knock, right? So when we think about the growth prospects in the state over the next couple of years and given that this political affair is every 5 years, how do you think about the business prospects in the state of Assam? Would you continue to be involved in the microfinance business there, the same way you've been? Or you would calibrate your portfolio and take into account the political [indiscernible] as well? How are you thinking about it?
See, the way we look at it today, right, this has happened after 20 years in Assam, right? On us being there, working there in Assam. So to assume that this will happen every 5 years, we don't know. Having -- how much of that will be relevant to be like -- having said that, clearly, whether Assam or any other state, right, it's the position and the situation in the ground with the finance business, right? So if the credit culture is there, if the environment is benign, we will do business. But if we see, like if you look at the current quarter, the disbursement is almost not there in Assam, right? Because there was restriction, because there was a confusion about what is eligible, what is not eligible, even the customers were not clear. So we were hesitant in doing business there. So if there is clarity, if there is environment, we may again start.
I can give an add on that point. If you see that the -- first this is a political issue, always leaves fear in the micro finance. If you go to this, the AP, there in 2010, and now AP portfolio is a 99% collection even the time of this crisis. So it has been over because customers understand about it, that will be not helping them. If you come to this in 2017, in UP, that has also happened in drastically on that. After that now UP is better than Assam and a very good portfolio. So in that sense, if you see that in outweighing, this type of incident happened on that is politically. So after that, that state has become very good because customer understand. If you see that the declaration of the government, all our people are not getting benefit. So that will be understood about it for them. If you go to the Bangladesh, which is very good [indiscernible] place of micro finance. If you see, their top of the government have been openly declared about it multiple times that this is the -- they are not liking. And after that also they are growing. Because this is dependent on customer demand. When the customer understand from this type of incident that will be not really help them. So that will be help in the future, business growth will be very good, and quality of the portfolio also have come very good. And of course, there is a lender point of view. They will like to very cautiously select the customer, assess the customer need. There is in very -- next 2 to 3 years, we would like to happen. After that it will become as a normal of that. I'm not feeling that, that is not at a good state for lending in this.
We move to the next question from the line of Kunal Shah from ICICI Securities.
Yes. Thanks for detailed presentation and clarifying most of the aspects. Firstly, in terms of -- if you can just give within this paying customers, part payment and full payment, okay? Because last time I think there was a disclosure out there in terms of how that is behaving. And particularly maybe within this paying also, less than 25% kind of paying wherein there could be a more risk. So if you can broadly just spell that out in terms of the NPA and the restructured pool paying category?
The broad idea, right, we'll try and share whatever we can. But the idea of giving this presentation and the slide was to show that despite being the strictest lockdown in the pan geography in the main geographies of par, right, we have seen the intention of the customer is to come and pay, right? So one thing which is very clear from this is the intention of the customer. There, absolutely, we have no doubt whatsoever on our customers. The question is only about the ability due to the environment or whether because of the environment, how comfortably they have been able to do their business, right? That defines the part or the nonpayment of the full payment customers. So that was the idea, as we mentioned here, right? We have seen even in last time that part payment customer necessarily did not mean that this will become NPA, right? What we envisaged in Q1 of last financial year and while we ended in Q4 of last financial year clearly shown that ultimately, the part payment customers come back and repay their loan. They take extra time. I think the intention part is very clear. Now coming to your specific question, on what is the payment pattern of these paying customers of the restructure of the NPA book? Of these paying customers of NPA, 8% made full payment and 66% paid part payment.Similarly, on the restructured book, about 4% -- because let's understand, restructuring, we had done, considering only both customers who are part paying customers and customers who are in the geography where it was in continuous lockdown or containment area. So with that background, the paying -- full paying customers in restructured book is 4% and partial paying is 80% customers.
Okay. And fair to assume that within this part payment, like last time, significant chunk would be less than 50-odd percent because last time also 2/3 of that was less than 50%. And now maybe situation would have further got worsened because of second wave. So then even within the part payment, like significant part would be less than 50% or less than 25%?
So my one point on that, you will be -- first, we can be like to analyze the situation of the country and the area. When the last time we have been seeing that there is no lockdown. And that time, people are coming back and to coming as a normal on that. But suddenly whatever happened in April, May, June, this is very much given that the people have been scared about it. They have not expected on that. And within that situation and within this, the lockdown period till now continuing in the many of the places. And that then also customer is coming to paying is in partial also, I hope that, that is a very good, showing the future that they will come back when the situation will be like to over, lockdown will be not happened. And this customer will be paying in a normal full installment of that.
And just to add, it is much higher than 25%, closer to 2 installments.
Okay. Okay. Sure. One second -- a second clarification, if we look at this Assam. So when we look at NPA and then restructured, and you have carved out how much is into Assam. So if we calculate, almost, like, say, 1.3% of the book is the nonpaying in Assam, okay, which is almost INR 700-odd crores. And in that slide of some portfolio analysis, in fact, out of INR 6,300 crores, INR 2,800 crores and that includes INR 660-odd crores of nonpaying. So when I look at INR 3,500 crores, which is eligible, okay, there are hardly INR 400-odd crores is nonpaying, and INR 3,100 crores seems to be entirely paying. Is that right? Or maybe just something...
See, that's for Assam government, right?
Yes.
So nothing to do with paying and nonpaying. And Assam government scheme essentially is applicable to all.
Yes. No, but that seems to be slightly on the higher side in terms of the paying customers, given the pool which is there in Assam, which is [ separate ]. So I'll take this number offline, but that seems to be slightly on maybe the paying customer seems to be more concentrated on the eligible part of the portfolio.
So clearly, because DPD customers, straight away, get 25,000.
Okay. Okay. So that would be included in [ fees ].
Yes.
Okay. And second, in terms of this restructuring, what we are doing. What is the interest income effect on that? So -- because I think yields are again back to 8.5-odd percent or so NIM. So is it like any kind of income-directed mission or something that happened or maybe that will come over a period only once the moratorium and everything is done?
No, no. So 2 things here. We...
And so regular as of now?
We can't compare quarter-on-quarter NIMs, right, because last Q4 of last year, right, we had a big reversal on recognition of NPA as well as interest from interest, right, which is not there. Last quarter, we recognized NPA after a gap of 12 months. So that is not there in this quarter. So this is, more or less, sustainable NIM, which we had mentioned even last time in Q4. But for these reversals, our NIMs would be closer to 8.5%.
Yes. So we are almost getting back. Maybe, in fact, excluding last year also, average was 8%. We are getting towards 8.5%. And there is no one-off in this.
No one-off. Our cost of funds have come back.
Yes, cost of funds have come back.
Further, we've reduced savings bank rates and term deposit rates starting July. So we don't see a challenge in maintaining this.
The next question is from the line of [ Kochal Gaurov ] from [ Mer Asset ].
A few questions from my side. What was the -- was there any sort of average moratorium that was given to restructuring customers? I think you mentioned some moratorium was given. But what will be the average moratorium for these customers?
So here, for the EEB customers, we have given moratorium until 31st March 2022. The reason being, ideally, 3 months moratorium should have been enough for EEB customers. But we all know that there is an uncertainty of third wave, right, if and when will it come. And as for the restructuring guidelines of RBI, accounts, once restructured, cannot be further restructured. So keeping that in mind, we thought we'll do it. But having said that, we are not stopping our collection. We are encouraging customers to continue to pay, and that is what we are seeing in the payment pattern of our customers as well.
Sure. Sure. And sir, any color on this restructured book. Is it vintage customers with more than 3 cycles whom you've given restructuring? Or any sort of filtering that you would have done at your end to choose which customer to restructure, which ones to not. Sir, any color that you can give.
Clearly, that may -- according to our analysis, that the more relevant fee are paying customers and the customers in geographies which were in continuous lockdown. Right? So -- and even when you look at the payment behavior, right, it is not very different today for a 4-year vintage customer or a 2-year vintage customer because it is not a credit evaluation issue, it's an environmental issue. It's a lockdown issue. So that's what we're going through this year.
Sure. Sure. That's it. And sir, on the SMA-1, I can see that number has jumped to around 10% in June. Could you just give an update on July as to what was the flow-through from SMA-1 to SMA-2, since the 31 to 60 bucket would have gone to 61 to 90. So what is the degree of flow-through that you are seeing in that book? Some color around that.
I would suggest you wait until the next earnings call, you'll have that.
Okay. Okay. But is it significant, the flow-through, or it's in line with our historical experience? Just wanted some color. Or is it better or worse now that the, I mean, the lockdowns have opened up in -- from mid-July, as you mentioned? Has that improved?
Only one point we can mention here. From June to July, collection efficiency had been improved day by day.
Okay.
And just collections, right? The decrease, at least.
Sure. Sure. And sir, if I look at the buffer provisions. So apart from 3 billion of standard asset provisioning, we don't have any COVID-related buffer. Is that correct?
We have restructured provisioning. We have paid 1% to CGFMU to get that guarantee. We have ECLGS. So we are, actually, on the provisioning aspect, right? We consider all of this to evaluate what is the right level of provisioning. Having said that, as we mentioned last quarter, that principally, as management, we have decided that we will continue to keep offering our balance sheet with excess provisioning, right, irrespective of COVID or no COVID. COVID has given us the opportunity to do that. We will take that opportunity and buffer our balance sheet. Tomorrow, if COVID is not there, does not mean I will utilize this provisioning. This will remain in my balance sheet. My pre-provisioning return, my pre-provisioning profit to loan is 9.3%, right? And that's something that we have decided that part of this should be utilized to strengthen the balance sheet and should remain always in the balance sheet.
Sure. Sure, sir. And in the reversal for this quarter, have you taken any interest reversal?
Yes. To the extent that we have classified NPA, interest reversals have happened.
Okay. Okay. Do you have the amount, any, as to what was the interest sources for this quarter? Or we can take it offline.
Of course [indiscernible].
Okay, sure. Sure, sir. Just last question, of the 35.8 billion of the eligible loans in Assam, are those classified as standard? Or within them, you have restructured some accounts. There would be certain accounts which are restructured within that 35.8 billion.
No. See, this will be a mix of all, standard, restructured, including NPA as well. Because what is -- what it does not include is the written-off portfolio, which, over and above, this is eligible for repayment. So when that repayment comes, that will be an additional recovery of Assam pool through that scheme. So our rational portfolio, which is eligible under this scheme is close to 8 billion, which is not part of this. So that, if that comes in, will be an additional flow.
Sure. Sure. And the entire 35.8 billion portfolio is entirely reimbursable, right? Or there is some target within this?
It is eligible, right? And now as and when the government pays the scheme, and bases that scheme to process the document, we will have to see what is the role of the customer, what is the role of the lender, accordingly we'll go by that.
Okay. Got it. Got it. And sir, just on the restructured book, the income recognition is happening. I mean the interest recognition, is it happening on accrual basis or as and when you receive the amount? Just your accounting there.
84% of them are already paying. So how we listed, I can't recognize the income.
Sure. Sure. So is it only for cash basis or on approval basis?
It has to be approval. It has to be approved.
Next question is from the line of Saurabh from JPMorgan.
Sir, 2 things. One is, now that political interference is over in Assam, by, let's say, [ Punjab ], where do you think the collection efficiency goes for the portfolio overall? I mean you used to guide to these numbers last year when COVID 1 was going on. Just wondering what your view is today.
No. What we saw that this is the time of COVID and there are businesses that are affected and people cannot movement to one to the other area. And this time, also, we see that the COVID is affected to the rural and semi-urban areas. After that also, collection has come this much, which is showing that a very good improvement will come when this lockdown and the situation will become normal.
Sir, if I -- if you go to last year, like between June to September, you went from something like 70 to 90. Given that now the lockdowns are over, and assuming we don't get a backward base and the political interference is over, would you expect something similar? Or will that be too optimistic?
No, it will be improved a good way around that because this is also sometimes a link to the business. Now if you see that the business, no one like to start a new business or their old business cannot be like to expand. This is not the right time. And every -- the small and medium, all type of business owner are like to thinking in that way. So normally in our country and the business, actually, we are doing very good, mainly in Punjab. [ Shora ] will come on that, which is the second quarter in September and onwards. But today, every people are thinking about -- lots of newspaper are writing about high rate is coming August, September. So prediction on that, it will be like to be challenged now to stay on that. But other side, whatever this July, I have been seeing that the people are coming back and gradually they're repaying that. That will be like to give very good comfort on that. And if the third wave does not come, so very quick it can be like to recover on this.
Yes, sir. I still have one question. What percentage of this EEB book would have been generated over last 1 year?
Almost 80% to 85%.
82% to 85% will be last one. Okay. All right. One additional question, if I can. Of this housing restructuring, what is the percentage from the -- I mean is it your individual loans or is it LAP book mix?
These are largely individual. Suresh, are you there?
Yes. Yes, it's a mix of both, both LAP and this other. But it's mainly, dominantly, housing loans only predominantly.
Okay. Predominantly, Suresh, would mean like 75%, 80% or...
Yes. 75%, 80%. That's right.
The next question is from the line of Shreya Shivani from CLSA.
So this is Adarsh. The question, Sunil, was on -- during periods where collection staff cannot go to the field, you can a file EMI holiday. Does all EMI holiday customers get classified under the restructured book or that's a separate pool? Like, I took an EMI holiday for a month or you offered one for, let's say, 4 weeks to 6 weeks. But I didn't need a longer-term restructuring. So is that part of the restructured book or not?
So 2 things there, right? When we say EMI holiday and when we show collection efficiency, we consider all customers, including the EMI holiday customers, right? That's point number one. Point number two, EMI holiday is not something which is -- something which is rule-based. It is dependent on the field situation for that period, right? We get request from the team on the ground saying that today there is a containment area decided in our area, we cannot go and collect, right? So we have to mark that as an EMI holiday. So that could be for 1 day, it could be for 6 days, it could be for 7 days, right? So it is not something which is rule-based. Secondly, in EMI holiday, 95% does not impact my DPD position because the customers who are already overdue, their DPD will keep moving irrespective whether I give EMI holiday or not for that particular installment. So EMI holiday, the point I'm trying to make is, as far as collection efficiency goes that we disclose, we consider all customers. And as far as my DPD or SMA position goes, it has very little impact on my DPD and SMA acquisition. Negligible impact.
Got it. That's useful. Second question is on Assam. So you did give a number that the provision is about INR 800 crores and right of pool, which is eligible for government scheme. So you actually have INR 1,600 crores of money. And so it should cover up for anything -- any of the risk or eventually, let's say, in 12 months, you would expect net Assam book after the government scheme is fully implemented. You could have a fall-through of money from that. Basically, you could have write-backs from that given that, that pool now is INR 1,600 crores of provision sitting out there.
So if things go the way it has been planned, which we sincerely believe it should, then you are right, there will be a provision. There will be a situation of write-back.
Got it. And third question is on -- and last question is on West Bengal. Obviously, it's a very large book. And the situation post-COVID 1 was collection lag. The hit that you are seeing now in collections after wave 2 has been quite severe. So just want to understand, we made a point that economically being more difficult for that geography to come back. But it's a very large -- let's say, it's almost more closer to Assam kind of collections than rest of India, right, which was politically challenged in that sense. So how do you look at risk from West Bengal because overdue numbers are very high in that portfolio?
I would slightly defer that it's more closer to Assam because if you look at the collection efficiency of Q1, at 85% West Bengal and national average of 86%. And rest of India of 90% is closer to the rest of India than Assam, which is 67%, right? And I keep explaining and I keep mentioning that the timing of lockdown for West Bengal and Northeastern state is different than Western, Northern and Southern states. So that's why one has to look at the full quarter, right? Because there was a time when West Bengal and Assam was working and rest of the country was in lockdown, right, which is the April month. And that is why we have put the Q1 collection efficiency to give you a holistic picture that rare situation stands. So I would say -- I would rather believe that West Bengal is closer to national average and not Assam.
Got it. And sir, last question, if I can press it in me. What's your -- from how you want to do the business post the Assam episode, right? Because clearly, it looks like last pockets of that state was overleveraged. Obviously, the issues are complicated because political promises got made, but it is also overleveraging in a lot of pockets. So it's kind of bailout for the MFI industry also per se in that state by the government. So what is the takeaway in how you see what happened with Assam to stop that from, say, happening in West Bengal or any other state we operate in?
You will see that, that have been mentioned earlier. I have given some of the country or state where this problem happened and then return back the customer. As you see, that's until now. When the government declared about it and the government mentioned [indiscernible] said that you pay, otherwise your credit bureau record is become damaged and in the future you will not get any loan from any of the bank or financial institution. So he requested to all the public on that and the citizen, you pay to the lenders on that. This appeal is a very big way he has been given on that. That is the learning for the customer level and also learning from the government level and also the lenders' level. That not means tomorrow we started lending to those areas more. We'll observe, we'll see that. And the situation will be like to feel that is a go. But then, we will decide on that.
The next question is from the line of Nitin Aggarwal from Motilal Oswal Securities.
I hope you and all your staff members are keeping safe in these times. A few questions. Like, firstly, if you can talk about how the credit culture in Assam has been after relaunching those package. Do you think that there is a risk of paying customers also becoming nonpaying in the remaining portfolio, which is not eligible under the government package? And also, if you can talk about how long this, like implementation of package will take?
One point on that, when we see that there is a long -- case have been increasing Assam. It will be late after the May, it has been started in June. And at that time also, government declared that this their scheme. They will be provided this funding to the customer. And after that, when they declared, lots of customer all back to us. And asking on that, what is their balance amount and when will be like to go to them to collect from that. That queries have been started with a very big hope. I hope that, that is impacted to the culture of the repayment and also the credit. But we cannot go in there because of the corona issue so much big. And also, we find out on that, we are fully locked down, means even not a student also open. And who are travel to Assam, they are staying in the hotel. But other than hotel, restaurant also not open. And restaurant people are coming to provide the food in the room. So very restricted and very hard way they are maintaining on that. So that reason, it is not a customer is coming out or we can release to the customer to collect on that. So this is the overall situation on that. Otherwise, the repayment, it has been started very good way. That can be helped us from that future when the lockdown will be open and the COVID situation will become a little bit better. So collection is also likely to improve on that.
Okay. And sir, the second part on how long the implementation of this package will take?
See exact time line is still not clear. As and when it's clear, we will update. We'll have to get that clarity from the company.
Okay. And -- so the other question is on the growth. Like, what sort of growth we are now looking at? Implementation of this package will likely result in further rundown of the portfolio. So what sort of growth like are we targeting for the year-end? Any guidance on credit costs if you can share, because last year, we had a 5% credit cost guidance. So anything indicative that you can share for FY '22?
If you see that the GDP growth have been declared by -- today. The government has obtained partial into the region this year. There is a hope on that the economy will be revived and the people will return back to the business and our bank also coming back to our growth of the business. The growth for the segment in which we work is never an issue. It's the environment which defines the growth, right? If You look at my active customers, active borrowers in microfinance. That has come down, which means the customer has repaid their loan and I have not given fresh money, right? Because I want the situation on the ground to improve. I want them to do full 7 days of work because that's the only way they can repay these installments. So the demand is immense, the opportunity is immense. As the environment improves, the growth will also come back. Now I don't want to put a number to it. But clearly, we've seen that over the last so many years that growth in this business should never be a problem if the environment is okay.
Okay. And on credit costs, any color on that?
We don't want to guide a number on the credit cost. But as I said, we will continue to provide. We will continue to take provisions to strengthen our balance sheet. Some will remain as additional standard asset provisioning in our balance sheet for future to strengthen our balance sheet. But one thing we'll tell you is the provisioning we will continue to provide. Not all of them is required for credit cost. This could be standard asset. It can remain a contingent provision when COVID is over next year.
Okay. And one small data only. Given that we deal with a large number of borrowers higher than most other banks, what has been the number of casualties that you have seen amongst the borrowers?
So the number that we have to the best of our information is about 4,000 borrowers who -- if you can correct me, number of borrowers died on account of COVID?
5,000 borrowers have been died in the COVID. But maximum, 5,471 borrowers have been died. And large amount is in second wave, and 1,500 in Madhya Pradesh.
Okay. Okay, sir. And sorry, if I can squeeze in one last question. On Slide 8, like we talked about 74% of NPA customers are paying. So just wanted to understand like usually how much this proportion is, how many customers typically are paying off NPAs?
So last quarter, we reported this number when it was 78%. And last quarter was the big quarter, right? In the last 18 months or so, Q4 of FY '21 was the best quarter.
Yes. And versus otherwise, like pre-COVID, how much it used to be?
Pre-COVID -- it's a good question, but I don't have that number offhand because we started tracking only after the COVID [indiscernible]. Because our NPAs were any way less than 1% pre-COVID environment.
The next question is from the line of Karthik Chellappa from Buena Vista Fund Management.
Yes. Two questions. First one is on Slide 12. So for Assam, if 28 billion of the portfolio is under the credit guarantee fund scheme. How much of this would overlap with the 35.8 billion, which also becomes eligible under the government resolution?
Karthik, that analysis, we'll have to do. But clearly, there will be an overlap, right? Because those 2 are different criteria. One is as per government scheme, one is as per month, the CGFMU that we have taken. So there will be an overlap between paying -- between eligible and noneligible, but both parts will be here. Essentially, what we are paying, the entire disbursement of West Bengal and Assam of previous year for non-agri customers is covered and typically 82% to 85% of my current outstanding in last year's fiscal.
So the fact that they become eligible under one scheme does not -- this allow them from participating in another scheme, right? So if it's under Assam scheme, if they are already getting another benefit of this thing, they will still be eligible, right?
Yes. But I can't claim more than INR 100. INR 100 is outstanding.
Yes. Okay. That is for sure. Okay. But we just don't know the level of overlap. Okay. That is fine. If I look at the total NPA under the micro loans, which is, let's say, about 49 billion to 50 billion or so, what is the amount of provision that we are carrying against that as of now, as of this quarter?
About 32.5. See, there are 2 ways to look at it, right? The total provision in my book is INR 4,835 crores, right, if I exclude standard asset provisioning, which is required as per regulation. So it is INR 4,835 crores. This includes NPA, this includes additional standard assets. This includes restructuring, all put together. Now this INR 4,835 crores, if I compare it with my microfinance portfolio, it's about 9.1%. Now I agree with you, not all of this is for micro finance. This is for all verticals put together, but I'm just telling you one way to look at the provisioning that I'm carrying in my book. The other businesses are our secured business. And historically, the [ NPDs ] in those business has never been more than 0.25%, 0.3%.
So to look at it another way, against an overall coverage ratio of 62% for the micro book alone, this ratio would be somewhere close to 64 to 65.
And if I consider additional standard asset and all, then this will be close to 75.
Okay. Close to 75.
The next question is from the line of Anand Dama from Emkay Global.
Sir, is there a restructuring pipeline that we have in the mind?
Anand, it's a good question, but we clearly don't have the answer to it today because that depends on how the restrictions get lifted in the geographies where we work. And if things are normal, then the restructuring would be lower. And we hope that will be the case, right? That's our base case scenario. So clearly, I can't put a number.
So if you look at the SMA-1 number, and even SMA-2 for that matter, do this flat. But SMA-1 number means basically that it is somewhere in the range of about [indiscernible]. And the situation is improving certainly, but you will still take some time to your recoveries loans. You have to reach to the customers. The customers will have to reach you. They will also be ramping up their business. So will it be fair enough to assume that roughly about 50% of the SMA-1 book fully eligible for restructuring because many of these customers are paying partly. And that is the reason they are still into the SMA-1 bucket?
Anand, yes, you are right. They will be eligible. But I'm again repeating that the way to look at our business, it's different than historically we have looked at restructuring over last 20, 50, 100 years, right? Restructuring, that means appreciating the situation on the ground, we are not able to go and collect. So large part of these customers who have not paid -- could be from our side also because we have not been able to reach them, right? And that is why one has to look at restructuring a little different than the traditional restructuring we've seen in the banking industry. Now where in the banking industry, without write-off and without selling the portion to [ ARC ], we get 50% of the [ fee case ] as recoveries, right? These are all part payment customers. That's the nature of this business, right? These customers pay to the ability that they can or -- and let's say, for installment, they are able to somehow contact us for 2 and not for 2. And that's how they are part payment customers. And that has, we have to appreciate that situation and do that restructuring, right? So to your point, looking restructuring and assuming that this is the risk may not be. We tried and explain in our slide that may not be the right way to look at it. We have seen last performance of the last financial year. We've seen performance of our housing pool, which has gone out of restructuring how they have performed. So clearly, there is a merit in what we've been seeing quarter-on-quarter that part payment customers is only a timing difference. And for technical reasons, they become NPA, unnecessarily their ability to raise further money also gets impacted, and it puts us also as a lender in a difficult situation because we are also not being able to fulfill our obligation to do gross debt collections. So restructuring, the credit short, I don't want to put a number to it, but the thought behind restructuring is appreciating the situation and not to cover the NPA.
Sure. So [ IIP ], basically, there is so much of uncertainty. But by way of higher provisions, I think you have somewhere about 10% provisioning on the restructured pool. So would you want to make higher provision, particularly on the restructured portfolio until the time situation normalizes? Any thoughts on that? And what could be the relapse rate, basically, in the restructured pool base on your assessment?
Now Anand, 2, 3 things again here. 84% of the restructuring customers are paying, right? And we've already shared that the INR 4,835 crores of provisions in my book, this is for all products put together. This provision is equivalent to 9.1% of the micro finance. We also have guarantee cover. We have Assam resolution coming up. We have -- so we have multiple levers, right? And we are also guiding, on top of this, we will continue to provide, right? We will continue to provide. We are not saying that we want to go through on provisioning because we want to bill that customer. And things, hopefully, will only improve from here. That's our base case scenario. So with all that in mind, I don't know how to put that number on the restructuring pool.
And any update on micro insurance, basically, for that you would have on the portfolio, basically with a significant NPA or restructured pool?
Sorry, I didn't get that question. Please repeat.
So we would also have a micro insurance, right, which would have taken from the insurance company as such, basically on the pool, apart from the credit guarantee that you would have?
That is only on debt.
Yes. So I think about 5,471 borrowers have died. So there, you will get some money from the insurance company.
Yes. Yes.
Any amount you can quantify over that?
No. If you can, it would be about...
It's not material enough.
So average outstanding is 38,000, 39,000. That will be the closest.
Sure. And last thing, what is the portfolio in UP -- portfolio size in UP?. Can you answer that?
Portfolio size in UP?
Yes.
INR 4,170 crores.
Do you see a risk of something similar happening in UP state as well as when there are elections, the way we are seeing in case of Assam?
Now despite the crystal ball gazing, but I'll tell you, we had projections in Assam and Bengal together, close neighbors, similar language, same time election, but it didn't come here. So I don't think it is fair to assume that if it's happening in one state, it should happen in all states where election is happening.
Yes. But certain political parties certainly are different. The ruling parties are different.
If you see that in the last election in 2017, they have been declared. But after that, this type of customer have not get that benefit. They are very much unhappy on that. So this time, after that, they recovered it on that. So when the next time any this type of situation has come, customers are not trust anymore. But I'm not seeing that because the situation is coming again in that state.
See, this -- what happened in fact, both ruling as well as opposition announced the same thing, right? So that can happen irrespective of whatever is the ruling party. So ruling party is clearly not the criteria.
The next question is from the line of Prakhar Agarwal from Edelweiss.
Yes. Just 3 questions from my side. First, sir, there is a couple of guys -- there's a couple of players who operate out of Assam. And they said that cutoff date for Assam is 31st March and not 31st December. Some clarity over there, [ horizons ] for December?
Cutoff date is 31st March. But the only place where we have taken 31st December is disbursement, beyond 31st December for that ineligibility fee, right? That is what our understanding is. The disbursement base after 31 December is not eligible. If you are saying that is 31st March, then in my eligible pool will only go.
Sure. Got it. Secondly, on the restructured book that we have, do we change the date of that restructured asset when we restructure? Or we don't change the stage when we restructure. We keep it at SMA-1 or 2, whatever count it is, in the same stage. Or do we make it standard and, is not reflected in any of the buckets?
So this is a moratorium, right? What is the restructuring? The restructuring is in a way we have given moratorium. So the same treatment applies what applied for moratorium when it was there last year.
Okay. So there is no overlap at [ 31st December ]?
No.
Okay. Just one more question in terms of guarantee scheme that we have spoken about. Is there any upper cap as well, which is there in place for this guarantee scheme? Because what I've been finding through is that there's a 15% cap on one of the payouts by the -- of course, the other party has get. So while we have the 75% that you're just talking about, there is also a 15% cap on the outstanding amount which is there.
I will check that. I will get it confirmed to you. I'm not aware, but if that is what you read it, I will check. But in any case, 15% is also a big number, and it should not impact the overall calculation.
Just wanted to check if there is...
I'll check that. You pointed it out, I will again check that.
Just -- yes, just one last question on the micro banking customer accounts or balances. If you look at quarter-on-quarter, there has been a lot of decline in there. What explains this sort of decline in there?
There are 2 causes in there. One cause is there because we are not able to go to the field to collect the money. Automatically, people are not able to deposit the -- in their savings account of this money. Second point on that is try to point the challenge has come. People will like to keep some money in the cash in their hand, not to deposit in the bank. So both these happened in our microcredit level. So that savings balance has been come down.
Could there be a possibility when this sort of balances decline could be stable to the payments that we have been receiving from those customers because income impact would have been very high? So if at all this sort of situation continues, then given the fact that there is not much an account balance as well, the part payment terms will obviously come down over a period of time if there is no income reversal that happens through.
Let's understand what is the collection we do in a year -- in a month, right? It is upwards of INR 5,000 crores, right? And my total saving bank balance of these customers is less than INR 3,000 crores. So it is not that -- if that was the case, then this account -- the saving bank should have been 0 long back. It's clearly the ability of the customer to come to the branch and deposit the money, right? And that is one reason, and they are holding cash for this one reason and for the emergency that we charge in the environment.
The next question is from the line of M.B. Mahesh from Kotak Securities.
Sunil, just a couple of questions here. On -- again, on the guarantee scheme that was there. Just wanted to understand why -- do you think that the RBI or the scheme would also follow similar questions where the -- up to [ INR 125,000 ] or the number of borrowers at limits also would be in place in this particular scheme also?
No. No. The scheme is applicable up to INR 25 crores.
The scheme is applicable to what?
Up to INR 25 crores exposure.
Okay. So none of the other -- the normal MFIs rules are not applied here? Apparently, why is the scheme a better one as compared to ECLGS?
This is -- I'm not saying this is better or not better. I think this is an additional option available to us, right? Because here, what we are saying is, irrespective whether the customer is good or bad, we want to protect, we want to take an insurance, right? ECLGS, largely, given to stress customers.
In terms of this commission, you can charge it to the customer or you take it in your P&L log here?
Today, I'm taking it in my P&L.
Okay. And the reason why you didn't do it for the entire loans because if last year would be because you did it for about INR 140 million. And last year, the dispersals are about -- somewhere about INR 550-odd million.
See, agri book is anyway not allowed, right? And the geography where we saw that the -- one, our exposure is high; and two, have -- are facing certain challenges.
Okay. Okay. Perfect. And just one clarification one. On the restructured loans that you have, is it possible for you to split that book between West Bengal and Assam?
So we have split Assam there.
West Bengal?
West Bengal, I think, should not be very different from the national average. It's just -- if I have the number ready, I would tell you.
Perfect. If you can give me why you're getting this answer. I just had a question for Suresh. Suresh, the housing loan book, if you could just give us some color on how that -- the early bucket is looking like.
So basically, the housing pool -- the collection has been improving -- on an improving trend. And if you look at the overdue position as of June compared to March, there's a slight improvement, actually. It was -- if you look at the regular customers who are in 0-day DPD as well as the SMA-0 who are in less than 30-day bucket, then you will see that there is from about 93.06, it has gone up to 93.20. So actually, there is a slight improvement in the overall ratio of the customers who are in the regular plus SMA-0 kind of a thing. And so that is the kind of in terms of the collection. The second thing that I would like to say is about the slide which already we have discussed enough actually, that about [ 3,126 ] customers who had -- have entered restructuring in the first phase, has actually completed the restructuring tenure. And after the end of the restructuring tenure also, 95% of those customers are paying. And therefore, the -- so the repayment track has been pretty good in that. So that gives us a lot of confidence that the collections have improved. So what on the ground we see is that post-COVID started in March last year. What has happened is even that customers have lost their jobs or have lost their businesses, they have found out -- a lot of them have found out alternate ways of restarting their business or restarting their cash flow. So that has helped. So there are a lot of people would have been in some sort of business but have moved to some other business just to keep their livelihood on, and that has also helped. So the repayments have been improving. And July also -- I mean the way it has been going, if no other wave 3 or something comes, I think the collections will be much better. In fact, for the first time -- the third point that I would like to say is for the first time since March 2020, we've had a nice bounce ratio coming back to the pre-COVID level. So it used to be below 10% and it has gone up to almost close to 15% at a point in time, and it has for the first time in June come to below 10% again.
Perfect. Sunil, I had a question on West Bengal. I'm sorry, I don't see Assam restructured book. I saw [indiscernible]
So 41% of the total restructure is Assam; 36% is West Bengal.
41% and 36%. Okay.
No, that is nonpaying customers. Sorry. 36% of the restructured book is Assam and -- sorry, West Bengal; and Assam is 22%.
22%.
Ladies and gentlemen, due to time concern, that was the last question. I now hand the conference over to Mr. Sunil Samdani, CFO, for closing comments. Over to you, sir.
Thank you, ladies and gentlemen, for your patience and long hearing. Stay safe. Thank you.
Thank you. Ladies and gentlemen, on behalf of Bandhan Bank, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.