Bandhan Bank Ltd
NSE:BANDHANBNK
| US |
|
Johnson & Johnson
NYSE:JNJ
|
Pharmaceuticals
|
| US |
|
Estee Lauder Companies Inc
NYSE:EL
|
Consumer products
|
| US |
|
Exxon Mobil Corp
NYSE:XOM
|
Energy
|
| US |
|
Church & Dwight Co Inc
NYSE:CHD
|
Consumer products
|
| US |
|
Pfizer Inc
NYSE:PFE
|
Pharmaceuticals
|
| US |
|
American Express Co
NYSE:AXP
|
Financial Services
|
| US |
|
Nike Inc
NYSE:NKE
|
Textiles, Apparel & Luxury Goods
|
| US |
|
Visa Inc
NYSE:V
|
Technology
|
| CN |
|
Alibaba Group Holding Ltd
NYSE:BABA
|
Retail
|
| US |
|
3M Co
NYSE:MMM
|
Industrial Conglomerates
|
| US |
|
JPMorgan Chase & Co
NYSE:JPM
|
Banking
|
| US |
|
Coca-Cola Co
NYSE:KO
|
Beverages
|
| US |
|
Target Corp
NYSE:TGT
|
Retail
|
| US |
|
Walt Disney Co
NYSE:DIS
|
Media
|
| US |
|
Mueller Industries Inc
NYSE:MLI
|
Machinery
|
| US |
|
PayPal Holdings Inc
NASDAQ:PYPL
|
Technology
|
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
| 52 Week Range |
165.1
260.8
|
| Price Target |
|
We'll email you a reminder when the closing price reaches INR.
Choose the stock you wish to monitor with a price alert.
|
|
Johnson & Johnson
NYSE:JNJ
|
US |
|
|
Estee Lauder Companies Inc
NYSE:EL
|
US |
|
|
Exxon Mobil Corp
NYSE:XOM
|
US |
|
|
Church & Dwight Co Inc
NYSE:CHD
|
US |
|
|
Pfizer Inc
NYSE:PFE
|
US |
|
|
American Express Co
NYSE:AXP
|
US |
|
|
Nike Inc
NYSE:NKE
|
US |
|
|
Visa Inc
NYSE:V
|
US |
|
|
Alibaba Group Holding Ltd
NYSE:BABA
|
CN |
|
|
3M Co
NYSE:MMM
|
US |
|
|
JPMorgan Chase & Co
NYSE:JPM
|
US |
|
|
Coca-Cola Co
NYSE:KO
|
US |
|
|
Target Corp
NYSE:TGT
|
US |
|
|
Walt Disney Co
NYSE:DIS
|
US |
|
|
Mueller Industries Inc
NYSE:MLI
|
US |
|
|
PayPal Holdings Inc
NASDAQ:PYPL
|
US |
This alert will be permanently deleted.
Bandhan Bank Ltd
You don't have any saved screeners yet
Good evening, friends, and welcome to the earnings conference call to discuss company's performance for second quarter ending September 2018. To discuss the same in detail, I've got with me company's founder and Managing Director and CEO, Mr. Chandra Shekhar Ghosh.
Good afternoon to all of you.
And I've also got Mr. Sunil Samdani, the Chief Financial Officer of the company.
Good afternoon, everyone.
I request Chandra Shekhar Ghosh, sir, to give his views and vision for company's performance and the way forward for the company. Sir, over to you, please.
Thank you, Hiren. Good afternoon, all of you. I'd like to highlight you some of the performance which have been done by bank in the last quarter, that is the second quarter of the 2018-'19. So bank have done a profit of INR 488 crores in the quarter second compared to the last year, the same quarter, INR 331 crores, which is 47% to the year-on-year growth after profit. We have advance of the bank of INR 33,373 crores, which was, 1 year before, the same quarter, is at INR 22,111 crores, that is advance growth has come 51%. And the deposit, INR 32,959 crores. And last year, the same quarter closed at INR 25,442 crores, which is INR 7,517 crores deposit increase from last year same quarter to this year's quarter, which is growth has come deposit is at 30%.Retail growth has come -- so retail deposit out of total deposit is 82%, CASA is at 36.94%, CA is 6.39% of the total deposit. NIM 10.30%. Cost-to-income ratio has come down from the last year same quarter 35.06% to 33.18%. If I compare to the June quarter, which was 34.35% has come down 33.18%. Return on asset 4.28%. Return on equity 19.30%. Gross NPA is 1.29%. If we say that the last quarter, means in the June 2018-'19, 1.26%. Net NPA 0.69%, which was at 0.64% in the last quarter, that means in June 2018-'19.We feel that the NPA is in -- more or less has been arrested. Our on-time repayment rate single one installment due today and how many of the customer, given the minimum one installment, that is a 98.89%. Capital adequacy ratio 32.6% and credit-deposit ratio 96.86%. Our total banking outlets 3,948. Out of that, 938 bank branches and 3,010 doorstep service centers. We see the customer, we have 14.41 million customers. We have been added -- 770,000 new customers added in the last quarter. Out of that, the 2.8 lakh new customers added in the bank branches, 4.9 lakh customers added in the microcredit level. We are -- now employees at 30,870, which was, 1 year before, 25,648.We are -- net interest income, INR 1,078 crores as on this quarter and which was in the last year, the quarter -- second quarter is at INR 694 crores, which is 55% growth on NII and non-NII INR 230 crores, which was, 1 year before, INR 223 crores, this is a 3% growth. So these are growth that has come to the bank as on the completion of the second quarter of 2018-'19.So we like to focus on that our -- the credit part. That is, we are looking it in that continue to the microcredit segment, whereas the microcredit portfolio with -- that means in advances, out of total advances is 87%. It was earlier, 1 year before, 88%. We are concerned about it that continue our growth in the microcredit is more focused. And simultaneously, other opportunities there, we would like to continue in that way.So thank you to all of you to patiently listen. I hope that you have some questions and we are and our team would like to give the answer on that.
[Operator Instructions] The first question is from the line of Parag Jariwala from White Oak Capital.
My question is, if we look at the September '17, our loan book was around INR 20,000-odd crores and by the end of F '18, which is like almost 6 months, we have almost grown from INR 20,000 crores to INR 30,000 crores. But if we look at our first half performance -- first half of this year, I mean, the loans have grown from INR 30,000 crores to almost like INR 32,000-odd crores. So if I look at the last 6 months of last year versus first 6 months of this year, I mean, the numbers are on a quarter-on-quarter or a half yearly basis is not very encouraging, or probably the growth in the last year was very high in the second half. So is it -- I mean, if you can throw some light where are the divergence, et cetera? And secondly, is it possible to grow in a similar way, which we have grown in the last year, especially for the second half?
No. If you see that in the -- you can understand on that. Last year, that quarter, we have disbursed the loan, INR 7,944 crores. And this year, same period, we have dispersed INR 11,181 crores. So that -- it is -- the season growth is there. But point is that this is always microcredit is in seasonal growth. First quarter will be low; second quarter, little bit better; and then third quarter is an up; and fourth quarter is coming back. So this is always there, not in 1 year or last 2 years, it is normally we saw that in trend of the microcredit sector.
Okay. And secondly, in terms of the nonmicrofinance growth, where do we see -- again, the same trend will be observed like third and fourth quarter, again, is a busy credit season, so the growth will come on those side as well. But if you look at, let's say, this year as well as in next year, which is FY '20, where do you see the nonmicrocredit book as a proportion of total advances?
Q3 and Q4 typically is the high growth in terms of absolute amount of growth for microfinance. The book in microfinance will grow faster Q3 and Q4. So in percentage terms, we will not see a major improvement over total assets, but the nonmicro book will also grow. So overall, as a percentage terms, we see this between 13% to 15% nonmicro.
Okay. And just one last thing. I mean, how do we record the sell-down loan, which we, I mean, for the priority sector. Is it all upfront the income recognition?
The PSLC that we do, we amortize it over 4 quarters.
The next question is from the line of Rahul Maheshwari from TCG Asset Management.
I have two questions. First of all, what has led to such a strong NIM update on the quarter on Y-o-Y basis? Because as there was, in the current quarter, the cost of fund also increased, so what -- can you give a scenario on how your cost of funds, your average SA rate and your NIMs have been moved down? And related to that, can you give a yield -- on overall basis, the yield on advances is [ 15.4 ] what is your average yield on microfinance portfolio?
I'll answer the last question first. The yield on microfinance book is about 18.4%. The overall lien yield on advances is 17.5% and then there is a treasury book, which generates 7.1%. So the overall blended yield on funds is about 15.3%. Current quarter, our cost of funds has come down from 6.5% to 6.3%, talking about versus Q1. And if you compare it with the Q2 of last year, it was 6.7%. Overall, our spreads have improved to 9% from 8.3% in last year versus 8.9% first quarter. So that is how we are able to maintain our NIMs at 10.3%.
Any guidance or any expectation that how the trajectory of cost of funds will be moving from here onwards? No doubt, you are with sufficient CAR and everything, but in terms of the borrowings or something else?
It all depends on the market rate movement, right? So depending upon where the markets are moving on a rate basis, our cost of funds should also move.
This is one point. The second point, you see that this is a combination of some of the product. If you see the product of CASA, if it is an increase in CASA and instead of CASA, if it is an CA increase, then automatically, it is the cost of fund will come down on that. So in that sense, if you see that our CASA has come up from the year-on-year basis, from the last year, same quarter 28.18%, and now is at 36.94%, which is 37%. That is a good amount of CASA helped us to see that. The same way, CA 1% -- 1.34% have been increased from the last year to this year. It has helped us to reduce the cost of fund. So this is a total combination on that way.
And last question on IL&FS exposure. Still, your credit cost guidance maintained at 1%, which you had earlier guided or -- and how of much provision has been provided, or in case of any additional provision has been provided for IL&FS, specifically?
Generally, we would not want to discuss names, individual entities.
Do the credit cost guidance remain intact at 1%?
We'll try. It will change if we have to [indiscernible]
Hello?
Yes. If you see that our credit cost in the last year, H1, 1.5., and now it has come 0.9. So it is sometimes on that it is coming on that way. So it always relies on I feel that 1 and 1.5, depending on seasonality, and it will become -- we'll try the best way to maintain that 1%. Because if you see that the nonmicrocredit, our portfolio only the 13% of the total book. So it is not that much impact to the book.
In case if it increases from here onwards, so what would be the downside level? Where it can go to from -- if not 1% then?
Difficult to say, but we don't see it going...
Between 2, it can be maintained on that.
10, 20 basis points, we don't increase more than that. But again, it all depends upon what position at that time [indiscernible]
[Operator Instructions] The next question is from the line of Prakhar Agarwal from Edelweiss Securities.
Yes, this is Kunal over here. So two questions. So firstly, when we look at it in terms of maybe this IL&FS, so just want to reinsure whether any provisioning was made in this quarter so there was nothing which was provided to us as it's mentioned it's a standard asset, so nothing has been provided as of now?
If you see that our provisioning norms, as in microcredit, we are provisioning norms as per RBI, 0.25%, we are provisioning 1%. And nonmicrocredit, as usual, whatever the RBI prescribe, we are 100% maintaining on that.
Okay. So it will be as per RBI norms or maybe conservative? And secondly, in terms of this entire amortization on M2M hit. So again, this is also amortized over the period of 4 quarters? So maybe this trend of, say, INR 37-odd crores, INR 38-odd crores, that would be therefore another 2 quarters as well, the way yields stand as of September?
No, see, the Q1 M2M loss was amortized over 4 quarters. Q2, we have not amortized, we've charged it fully.
Okay. So Q2 is fully charged. The only thing is like Q1, maybe whatever was the amount, INR 87-odd crores, that will be over the period of 4 quarters.
Yes.
But it should not be assumed that INR 37 crores, which is there in Q2, that will be repeated in Q3, Q4 as well. So that's not the case?
It depends on yield curve.
Yes. But that's not amortized as of now.
No, no.
Okay. And any major rundown on the nonmicro banking assets? Because when we look at it, even though the quantum is small, but sequentially, we are seeing a dip while disbursement is still building up. So anything to read into it? Any particular asset which would have got repaid or something, which is the reason for the rundown in the nonmicro banking portfolio?
There are a couple of exposures which has been repaid. So other than that, the portfolio is more or less stable at last quarter.
The next question is from the line of Adarsh Parasrampuria from Nomura.
One question on the other income. Can you just explain why the 3% growth? What was the PSL income in 2Q last year?
Yes. So other income -- our policy for PSL last year was that we used to accrue it [indiscernible] when we sell it. And last year, we had sold 80% of total PSLC in Q2. So for the last year, the total PSL income was much higher. It was about INR 118.8 crores. Against that, this year, we have booked INR 330 crores. So the point is, last year, our policy was that we booked the entire PSL income in the period in which it has been sold and not amortized. As against this year, where we are amortizing it over 4 quarters to bring it in line with IND AS starting next year.
Understood. Sunil, another question is on the cost side. I think we did have a large hike in employee cost in last year or the MFI or the DSC employees also got a hike. So has the full effect run through the employee expense line now? Is that now a much more stabler stream to look at?
Yes. Now -- from here on, it's regular secular...
We have not hiked anything in that way. It is a normal way of increments on that. So only point is that this year, because of the 3 years over the bank, we have the policy on that every 3 years, we will give the promotion. Then because of the bank has come to these 3 years, so large amount of people are waiting for that and after, the process it has been done.
The next question is from the line of Saurabh Kumar from JPMorgan.
Sir, your average ticket size is about INR 35,000. So quarter-on-quarter, it's not more, but year-on-year it's about 22% increase. So -- I mean, how should we read that? Is that just transitioning to your long-term loans? Or is that a real ticket size increase, which is happening on your existing loans itself, like even in the short duration ones?
No. It's not depending on that. This is -- 2 points in here. One point is that, that is our number of new customers added in this quarter, it has been helped us on that. Because if you see that the 7.7 lakhs new customers added in this quarter, out of that 4.9 lakhs in microcredit. So these are the people who are getting their loan. Their amount, however, is lower than any season than the 4, 5, 7 years with us. So it is always where it is coming on that -- like this on that.
No, sir, my point was, basically, the 22% increase we're seeing year-on-year because -- so is that something which is concerning, in the sense, that your ticket size should not ideally go beyond this anymore, at least? Because last year, a lot of your growth was driven also by ticket size. I was just wondering, going ahead, should one expect this ticket size growth or not?
Yes. So if you compare it with March onwards, our ticket size number is flat. And our strategy for microfinance growth is very clear. We typically look at 15% to 18% customer growth year-on-year and about 15% to 18% ticket size growth, which is on account of 1 -- the loan sometimes are 1- to 2-year loans or the regular increase because of the GDP and inflation of good customers.
Okay. So since your customer growth is running at about 3% quarter-on-quarter, so hardly, you're 10%, 11%. So hopefully, in second half, you'll see a ticket size increase also about 15%?
That number, we can't comment today, but that's how it grows.
Okay. And sir, what's the PSLC income for this quarter. I mean, I'm sorry, I missed that.
For this quarter, PSLC is about INR 65 crores.
The next question is from the line of M.B. Mahesh from Kotak Securities.
Just three broad questions: one, if you could give us break up of the loan book on the MFI side from a geographical perspective? And more specifically, if you could tell us, what is the average ticket size that is now being lent in West Bengal as we speak today? Second question is on the savings account side. If you could give us what is the current cost of savings deposit as well as what is more than 1 lakh? And also if you could give some color on the term deposit that is being acquired today? The third question is your PAR 30 book on the MFI book. And finally, in the senior management, we didn't see Mr. Rahul Johri this time, just wanted to check was it a mistake or has there been any changes?
No. Coming to the -- a lot of questions you asked on that. I will go to that one by one, I'll start from the last one. Yes, Rahul has been started new enterprise from his own, so that we have been now missed him. And our team is processing on that, very good the person, we are very soon would like to declare the name. And second question is our average loan disbursement to the microcredit. This is INR 60,000.
In West Bengal, sir?
No, it is across the country on that. And West Bengal on the same line on that not more. Some other states maybe overall also.
Sorry, I'm -- INR 60,000 is what, sir?
INR 60,205 PAR disbursement, average across the country. And West Bengal aligned with this same not more than that.
Okay. Sure. And the savings -- yes, sorry.
Next point?
The savings deposits, which the last quarter you had indicated the average savings cost was about 5.1%. And you had 1 lakh and above deposits, which was about 67% of the overall deposits -- savings deposits. Is that number changed this quarter?
Yes. So the savings rate is 5.05% this quarter and the overall 1 lakh and above deposit is 66% of the total deposit.
Okay. And the term deposit average interest rate, average ticket size, where does that look like, roughly?
Term deposit?
What would be the average ticket size that you are...
I'll give it to you. We don't have the number on hand.
Oh, sure, sure. And the last question was the PAR 30 in your MFI book? Because you -- I think you were running 2.3% in 1Q.
It is 1.97%. It was 2.13%, now 1.97%.
No, you were missing the one question. Can you repeat it on that?
The geographical profile of the MFI book or the loan book, whichever is available.
Geographically, we say that in the 86% -- oh, sorry, sorry, sorry. Central -- this is 13% is our branch in Central; Eastern region, 53%; Northeastern is 11%; and North is 7%; south is at 7%; and West is 10%.
This, you're saying, is the loan book, right or?
Branch, branch.
Okay. If it's -- is it possible for us to have some granular data on the loan book geographical spread on a regular basis?
We're saying that the Central 8%, Eastern region 58%, Northeastern 24 -- 21%, North 4%, South 2%, West 6%.
The next question is from the line of Mayank Bukrediwala from Goldman Sachs.
Sir, I had one data-related question. Can you give us the break up of your general banking book between the SEL, MSME and pure retail?
Yes, I'll give on that. My microcredit loan is at 86.7%, SEL 4.9%, retail 3.2%, SME 5.2%.
Also just in terms of following from Mahesh's question. On the loan book, in terms of incremental growth, can you give us some color on where the higher proportion of incremental growth is coming from? Is this still largely from East or are you seeing more incremental growth coming from the Central states?
I say that that if you see the book, in the very near to our microcredit book is in March figure. So whatever the March is in, we are, percentage wise the figure in there, I hope there is not much more increase on that.
See, typically, on the acquisition of new customers, it is happening outside Bengal more. But since the existing customer base of Bengal and the average ticket size [indiscernible] higher than the other states, the mix will not totally reflect the change in customer acquisition.
Understood. Also, just from an asset quality perspective, are you seeing some issues emerge in certain states? Like did we see any issues from -- in Assam because of the floods or the political situation over there? And while your total PAR is still very comfortable at 1.97 percentage, in any of the states, have you seen this move up materially over the last quarter?
No, that is not the issue, but if you see that the overall microcredit sector, always the operational issue happened in the ground level. It's dependent on environmental, not the issue of internal, anything, any institution. Sometimes, season, it cannot be declared on that, some area of the geographies, some delays as in fighting 2 groups, and immediately stopped some installment in that date, and next week, it has come to double. So it is happening. And if you see that in the last 18 years, it's the norm -- that is a normal way of [ faith or tip. ] So it is not like that. And whatever you say that? Other point is it floods? Yes, sometimes flood has come. We have deferred our installment 1 week or 2 weeks, depending on how much is effective in that area. But in this year, we have been also not faced that because we have not any operation in Kerala, so that we are on that.
[Operator Instructions] The next question is from the line of Supratim Basu from Americorp Capital.
If you could just talk a little bit about this IL&FS exposure of INR 388 crores. It was a bit of a surprise that you have such a large exposure to a single client given the nature of the bank and given your past history. So if you could just take us through what was the thinking behind this? When was this loan given? Is it a single entity? And what is the current status of this exposure?
Yes. As we said, we will not be able to discuss individual customers. But currently, the loan -- they are standard, otherwise we would have provided for them.
Okay. But if you could just talk about the thinking behind this loan, that is -- given that this is a very, it's kind of beyond Six Sigma limits of the normal lending that you have -- that you'll do and that you've been doing?
I mean, typically, we are not in corporate banking. In one case, we have done a loan, but that's an exemption. Otherwise, we don't have...
So what's -- when was this particular liability incurred, as in which year?
It was taken in 2 tranches. One was 2 years back, another was about 6, 8 months back.
2 years and 6, 8 months back. And then what's the tenure of this particular exposure, that is when does it actually come due?
We'll restrict any further details on this.
Okay. All right, okay. And then one other that is a different question, which is that, with RBI basically saying that you can't expand any further in terms of branches until the shareholding thing is settled, do you see that as being a drag on the growth for the next 2 to 4 quarters?
If you see that, we have 938 branches and that we are -- within that branches, we have been opened the 2.8 lakhs new accounts. So -- and the microcredit office, we have 3,010. Whatever, in this year, we have needed to open the DSC, already we have been opened on that. From there also opened 4.9 lakhs new customers. So this is -- one sense is there we have that the according to the number of branches and DSC, business-wise we have like to use in this existing branches and good number of accounts. And second point, if you see that my credit growth has come 51%. Out of that, which is 87% is microcredit. I hope that business wise is not that much without increasing the new branches or DSC is not a very big issue. If I say that my PAR DSC number of customers now as a borrower are 2,700. I -- we have the capacity per DSC 3,600. So 900 PAR DSC, we can be like to add. But it is -- if we like to cross on that, the 3,600, we are needing another 2.5 years to cross it. So in that sense, it is in number is there. Bank branch, 938 branches, we are average 3,000 customers in there. So we have that the -- any private bank, 25,000 to 30,000 customers in that branch. Also, the opportunities we can be like to add more branch -- more customer in the existing branches. So that I hope that the business growth is not any this type of challenge for us.
Right. Okay. And then the RBI restriction does not actually affect your MFI service centers, right? It's only actual branches?
As part of my disclosure, whatever I retain as by RBI given, I hope that, but we will like to take a call. Because we have not any plan in this year to open any DSC. Because any -- or whatever the plan we had to open the DSC, 2,500, we already opened.
Right. Okay. So basically, effectively, what you are saying is that as far as FY '19 business plan targets are -- they have already been executed. Okay, great. And one final thing on that RBI thing, that any thoughts in terms of the time line by which you will be complying with the shareholder down-sell requirement?
Whatever we disclosed in the letter by RBI, as of now, I cannot go beyond this.
The next question is from the line of Nishant Shah from Macquarie.
So most of my questions have been answered. Just one question. On Slide 22, which is the management team. So I'm also seeing Saurabh Jain, who is the Head of Wholesale Banking For the first time. Is this a new hire? What are the plans? Like, do we plan to enter into wholesale banking?
Yes, we have been -- appointed on that. Because of that, the SME and MSME will be like to drive under him.
Okay.
And second, you see that we are now newly product design for liabilities of corporate. And like of the salary account and the cash management service. This also come to under him.
Okay, fair enough. And just one last question on IL&FS. Where is this loan classified? Under SME -- is it fair to assume it's classified under SME loan, right?
We request all of you on that to help us to not to disclose anything in specific any customer.
[Operator Instructions] The next question is from the line of Rahul Maheshwari from TCG Asset Management.
Two things. In the current monsoon, we have found, especially at the Eastern and Northeastern region, there was a deficit of -- 24% rainfall deficit was there. Do you expect any signs that it may impact, at least, on the microcredit part or the SME part, which is the first question? And second one, on -- as you said, the 50% AUM growth, which is there, can you bifurcate into what is the incremental growth from the new branches, and what is the growth from the old branches?
First of all, really, microcredit, we are not giving that the direct agriculture loan. We are giving some of the -- more of that in allied activities, cow, fisheries, like on that. So that -- this is not that much in the related on that. But we saw that in that area, the agriculture is production is not very bad on that. So it will be moderate, but I have not seen that any risk for future in this year.
Delay in the repayments and all those things, there was nothing?
We have not seen anything.
Okay. And the second, on the growth part from the new branches and the old branches, can you give that as a bifurcation? On an average or past history what have you witnessed? That on a per quarter, this much was the growth from the new branches addition and this was from the old branches?
As of now, if you see that the bank branch growth, 100 customers every branch have given to us average, we have not seen that any big difference one to other. So this is the main plan target on that. And we see that they are achieving on that. And business wise, liabilities is the same, the rural semi-urban is the different types of plan. And our people are 99%, I saw that they are -- target they are achieving. So that -- you see that their mainly plan is the CASA increase, and CASA has come in a very good way on that. That is nearly 37%. So as of now we have not find out anything as a new and old, there is a very big difference on that.
And in the noninterest income, any -- going forward, any different streams offline, like third-party products and all this you are planning to enter because -- or it would only plain PSLC income that would be coming in a major way?
So insurance and mutual fund is the opportunity for us going forward. We have been conservative in starting that business for the first 3 years because we wanted to stabilize our core banking operations first. We will be looking at this stream of business going forward.
But in core banking, have you done any tie-ups with any of the insurance and MF third-parties?
We've started selling mutual fund. Insurance, we are yet to do.
Ladies and gentlemen, that was the last question. I now hand the conference over to Mr. Sunil Samdani for closing comments.
Thank you, ladies and gentlemen. Thank you for taking your time off for this call. Thank you very much.
Thank you very much, sir.