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Bank of Baroda Ltd
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Good evening, everyone, and welcome to the analyst meet for Bank of Baroda's financial results for the quarter and year ended 31st March 2022. Thank you for joining us.
We have with us today, Sanjiv Chadha, Managing Director and CEO of Bank of Baroda. He'll be leading the call today along with the bank's Executive Director and the Chief Financial Officer. We will start with brief opening remarks from Mr. Chadha and a short presentation, followed by the Q&A session. Sir, request you to start.
So thank you very much, Rhoda. Let me begin by introducing my colleagues on the call. So we have our Executive Director, Mr. Khurana, who is in charge of Stressed Assets, IT and Digital for us; Mr. Vikramaditya Singh Khichi, who in charge of Retail Banking; Mr. Debadatta Chand, who is in charge of Corporate International and Treasury; and Joydeep, who is in charge of HR, Audit, Risk, Compliance all our platform verticals.
So we just start by looking at what are the -- a few things behind the numbers. You have all the numbers, so I'm not going to waste your time going through numbers, but just a little bit of color in terms of the composition of the balance sheet and what kind of growth we have seen. It's pretty much on a similar format to what we saw in the last quarter.
So [ can you put out ] the presentation?
Yes. Perfect. So we just go to the first slide. So in the first slide, we are just looking at the nature of advances growth. So as we had discussed in the last quarter, we were looking at having advances growth in line with industry, which we had estimated might be somewhere between 7% to 10% at the beginning of the year.
So we have delivered advances growth of 8.9%, which is in line with our guidance. But within that, we have been indicating that we would want to focus on those segments, which allow us to protect our margins because we were in a surplus liquidity scenario and margins, particularly in corporate were very challenged. So if you see the composition of growth, the highest growth has come from retail, where on an organic basis, if we take out pooled purchases, our retail portfolio has grown by nearly 17%.
And within that, the highest growth has come from, again, the higher-margin businesses, where in car loans, we have grown by nearly 20% and in unsecured personal loans, which was new business mostly intermediated by digital, where we have grown by 108%. Similarly, we have been trying to endeavor to make sure that within agriculture, a large proportion of growth comes from gold. So our gold loan portfolio again has grown by 25% Y-o-Y. So this is really what has helped us in terms of predicting our margins.
On the deposit side, there were 2 things we were looking to do. One was to make sure that our deposit growth is in line with loan growth. It does not run too far ahead of that because of the surplus liquidity situation. And the second was, again, the composition that should come from CASA as much as possible. So our CASA growth at 11.5% is significantly higher than the total deposit growth.
The term deposit growth was kept intentionally muted. That was one part, which has helped again our CASA ratio moved from 37% about 2 years back to 44% now. And that's something which should really help us even as we go forward into a regime where interest rates might start rising. Our higher CASA ratio is going to be a source of strength for us.
So the discipline both on the asset and the deposit side has helped us in terms of our margins. So the NII has moved up by 13%, fee income almost in the same proportion. The operating profit growth might appear muted at 5.6%, but this is largely on account of the fact that the Reserve Bank of India had changed the accounting rules, whereby any mark-to-market gains and losses now come above the operating profit line. But for that, on a similar basis, as previous years, the growth would have been more in line with the NII and fee income growth we have seen, which means we have been double digit.
The profit before tax has, of course, moved up by 70%. The after-tax profit has improved even better by -- nearly 8x as compared to last year's INR 800-odd crore profit. And this is because last year, we had changed our tax regime and which helped -- which has had this year by reducing the tax outlook and helping a smart growth in net profits.
So this is again the position in terms of the percentages. So NIM, as you see, has moved up from 2.7% to 3%. We have guided that we would be looking at about a 10 basis point improvement in net interest margins. We have done significantly better than that. The overall NIM might optically appear a little lower than December, but some of you might remember that in December, we had pointed out that there was about a 10 basis point onetime effect on the NIM because of certain recoveries which had happened.
So the NIM is pretty much similar to where it was in December, actually, if you were to adjust for that. The NIM improvement has come because the cost of deposit, as I mentioned earlier, we have kept a lid on that. So cost of deposits come down by nearly 50 basis points, while yield on advances moved down only by 20 basis points. And the discipline on both the asset and liability side is directed in the fact that the credit deposit ratio, which should have been normally under pressure given the circumstances for which we went actually has improved by nearly 2 percentage points.
The asset quality has continued to improve quarter-on-quarter in almost every measure. Gross NPAs are now down well below 7% and net NPAs to below 2%. So these are, by far, the best figures that we have seen in a long, long time. The provision coverage ratio now is again stands at a very healthy 88%, including TWO. And without TWO, at 75%. So -- and that is because we have taken some extra provisions over and above what is mandated as per regulatory guidelines this quarter.
The slippage ratio, we had guided should be between below 2% and it's come out at about 1.61%, which is, again, more than 1 percentage point improvement over the previous year. Similarly, cost of credit, which looks optically elevated but that is largely on account of the fact that we have taken extra provisions just to strengthen our balance sheet for the next year during the current quarter.
One of the significant initiatives for the bank was a focus on collection efficiency and also containing the figure of SMAs. So this is a very significant improvement. While the collection efficiency exiting March '22 at 97% is a significant improvement over the last year. The improvement in the SMAs is even more stark, where from a starting point of March '21 of 3%, which, of course, was elevated because of the impact of COVID. It has come down to below 0.5%. So I think this is something which augurs well for asset quality as we get into the new year.
The capital position on account of both the QIP that we did last year and also the retail profit now is pretty healthy at 16%. And therefore, apart from replacing Tier 1 bonds where there may be call options, we do not expect to go to the equity market today's fresh capital. We believe our internal accruals should be good enough to fund our growth.
The last point, again, I would want to highlight is the progress we have made as far as digital is concerned, and which is -- the biggest measure for us has been the success of bob World, our flagship mobile application. The customers for bob World moved up from under 10 million in August when bob World was launched to more than 20 million now.
We expect this figure to move up to 30 million over the next few months. And at 30 million, our penetration of the non-FI market in terms of mobile banking would be nearly 50%, that gives us enormous leverage both in terms of cost savings and also in terms of cross-sell.
So this -- again, if you go to the next slide, I think this was certainly an attempt to make sure that the bank, which was voted as the best technology bank by the IBA. The benefit of that technological edge should actually filter down to in terms of customer experience and also in terms of cost savings as well as cross-sell for the bank. So I think we are well poised this year to fully leverage the progress we have made in digital banking during last year.
So that's pretty much from me. Open to questions now.
[Operator Instructions] The first question is from Mr. Ashok Ajmera.
And congratulations to you, [ Mr. Chadha as CEO ] and the whole team for the good set of numbers, especially on other all other parameters, of course, profit is also otherwise good. And you're really, I think operating profit has gone to INR 22,000 crores net profit for the quarter is INR 1,778 crores, and overall year is INR 7,272 crores. Commendable job.
Sir, having said that, sir, there are now 2 consults, which are coming in the economy. Basically, if you look at the interest rate, you look at whatever is happening globally. Our inflation locally going up. So there are 2 questions on that and your views on that.
One is on the pressure on the treasury because up to March, we have handled it well. But now the concerns are coming more. And with this 40 basis point rise by the Reserve Bank of India also. So where do we stand as regards to the AFS book? And how much are we equipped even if it goes by 50 basis or 70 basis points up?
And secondly, the pressure on the overall climate, overall business credit growth and other concerns considering the present situation? This is my first question on which if you can give your observation, sir -- your comments, sir.
So thank you, Mr. Ajmera. So I think as far as the interest rate regime is concerned, as you said very correctly, there are 2 broad implications that we must assess. One is on the bank's loan book and number two in terms of the broader economy and therefore, the second order effects which might be there on our borrowers, in particular.
So looking at the broader economy first, I think we had done a survey of our customers, about 1,800-odd customers, examined their balance sheets. And what we found was that the -- most of the corporate customers have deleveraged their balance sheets very substantially over the last few years. And the interest coverage ratios have improved again, very significantly.
Therefore, if we are looking at a normalization of interest rates, and that's what we should look at, right? The interest rates rate had been brought down to historical lows because of the impact of COVID. As COVID's impact dissipated, it was expected that interest rates would normalize, which had been deeply negative for some time. What has happened, of course, is that while the normalization would normally have proceeded a bit more slowly because of the impact of the Ukraine crisis, the normalization is happening at a quicker pace.
Nevertheless, it's something that had to happen. And to my mind, looking at our own portfolio, we believe that a very large majority of our corporates are well equipped to handle the impact of that. So I do not believe as things stand that we should have a significant negative impact when it comes to our corporate portfolio. So that's number one.
In terms of our own balance sheet, as a general proposition in the short to medium term, because of the lag effect between the repricing of assets and liabilities, it will be somewhat of a positive for the bank in terms of margins. But the -- as far as charity book is concerned, our AFS portfolio has a modified duration, which is under -- under 2. And there also a significant proportion of the AFS book is composed of floating rate bonds, which actually will get repriced: a, have a short duration; and two, as they get repriced your margins should actually improve on them.
So I think we are reasonably well positioned to absorb the impact of the rising rates this year also, just as we did last year. But I would request Mr. Chand, again, if he would want to just elaborate on what his assessment is of our current situation, both from the viewpoint of Corporates as also Treasury.
Thanks, sir. Yes, in fact, in a rising scenario, there would be impact because of the interest rate on the depreciation side. But the best part is that without the repo rate increase the market as in March '22 already the book has taken the impact of almost 80 bps.
So the position we are now, which is almost like for the 30, 40 bps higher than the March level, we're adequately pushing at this point of time. And as sir said rightly, our AFS, almost like 40% of the book is on the service side. And the resetting again going to happen in a month's time.
So because of that, the impact on our book -- because of depreciation won't be significant, and I believe that on the kind of level of 50 bps you are talking about, the depreciation impact would be lower than that of last year. So that is with regard to -- and the positive side is also on a rising scenario, there is a repricing benefit on the maturing investment. And also since I'm getting a significant FRB book, there is a positive income contribution on the investment income.
Coming to the loan side, there is going to be because then a large percentage of the advanced book is also floating and a significant percent is again externally. So this will be again contributing positively to the income side, but then there would be -- the cost of deposit would go up. But overall, on the ALM perspective, we're adequately positioned to optimize on the income side rather than any negative impact we can see because of the rising interest rate.
Sir, a supplementary question on that, sir. What is the composition of your loan book of MCLR, EBLR and T-Bills in percentage terms, so that we can assess that like EBLR will be totally passed on 40 basis points. Even T-Bill also, you will have an immediate direct without losing a day. But how much is MCLR and how much let period it will have, sir? This is just for me to now assess the future, sir.
See, on the -- particularly the external link benchmark, which typically the T-Bill -- and as you said, roughly around 10% of the book is linked to this benchmark. So these are all automatic kind of things at the moment there is an increase happening.
On the MCLR side, we have almost like 50% of the book is again on the corporate side, the MCLR link, and remaining are the floating rate. There may be a lag in terms of the external link benchmark service the MCLR, but then the significant cost end basis floating rate and the benefit would exclude for the bank.
On these 2 accounts, the retail account there, future and [indiscernible]. Where do you stand as far as the loan book and the investment is both is concerned? Have you provided 100%? Or what is the percentage of the provisions on future group, including loan and investment book, sir?
So we have fully provided again on the accounts. And also, as I mentioned in the introductory remarks, we have actually gone forward and done some extra provisioning even apart from these accounts so that again, we have well cushioned for next year.
Have you taken all the group companies, sir, or only some of the companies are standard or some are not of the future group? Have you taken the total overall exposure of the whole group? Or still, there are some standard accounts?
I'll just request Mr. Khurana to confirm that position, please?
No. There are a few accounts which are still standard.
How much could it be approximately?
Close to INR 300 crores.
Yes. So we're 100% provided on about INR 1,700 crores and INR 300 crores is standard. I think Khurana, that would be the correct...
Correct. Correct, sir, INR 2,000-odd crores.
So total INR 2,000 crores is the total including investment book and all the group companies on this, isn't it, sir?
Yes, sir.
Sir, can you give us some color on this, our co-lending space where every bank is going now very aggressive on that and NBFC and co-lending space? Because NBFC is a big legroom. I do not know exactly what is your percentage of exposure where you are comfortable or not, but especially co-lending for SME or some tie-up or [ goal ] loans or something.
Can you give some color on that, at what is our book size today, if at all, we have made the partnerships? And what are the future plans and the future targets for that?
Khichi, sir?
Yes. On the co-lending space, in fact, we just wanted to embark on a journey right in the digital mode only. There were other challenges like lots of procedural challenges where we would be, I mean, compared to take that journey in a digital mode. And now we are almost done. We have already launched and we have announced a couple of collaborations also, a couple of tie-ups also.
And we are actually ambitiously looking at building up a book of around INR 10,000 crores in the next 2 years. The best part is that this is the first time that entire journey of co-lending is actually being taken on a digital mode. I mean all the API integration with our middleware and all has been done. And now we are embarking on that journey.
So at the moment, we don't have a significant book to talk about. But as recently as last month only or maybe end of March only we have announced to take this forward in this year.
The next question is from Mahrukh Adajania, please.
I'm sorry. The next question is from [ Rakesh Kumar ].
Can you hear me, sir?
Yes, [ Rakesh ], we can hear you clearly.
Just have 2 questions. Firstly, based on this different interest rate lending [ themes ], previously, we had a flexibility to change the spread each year in MCLR. But now we will have -- we'll have to wait for 3 years to change the spread. So how the banks, in general, would be placed while trying to maneuver the spread for arriving at some lending rate?
So again -- Ian, do you want to take that?
Can you just repeat that question? Your voice was not audible at the end?
Yes, sure. Sure, sir, sure. My question is that, sir, in MCLR, we used to have flexibility to change the spread each year. And now in this EBLR, we have -- we don't have that kind of flexibility, and we can change the spare only in 3 years and based on customer behavior. So if we have to maneuver our lending rate that we generally do, so we don't have that flexibility. So how we are placed in this new regime now?
So actually, I would like to take the questions in a different manner as to how we are looking at it from Bank of Baroda perspective. So we have a large chunk of our loan book, around 26% to 27%, which is actually linked to external benchmark.
And that portion of the book has actually already repriced by around 40 basis points because of the repo rate hike. And as we mentioned earlier in the call, we have another 50% of the book on MCLR, which has replaced already by 5 bps.
So we see the journey progressing quite well over the next 12 months. While we will have a gradual impact on the cost of deposits also gradually repricing upwards, but we are positive of having about a 10 bps increase in our NIMs. So that's the way we look out of it.
In terms on the specific question you're asking, I think it's a bit technical. But from a functional perspective, I believe I've answered your question. Technically, we can connect off-line and discuss more in depth off-line, if you like.
Sure, sir. So second question is related to our terminal benefits obligation. So we had a negative position of around INR 670 crores as on March '21. So I would like to understand that first that what is the benchmark that we have used for our PBO, plan benefit obligation? And what is the average duration of our planned assets?
So largely, our plan assets are actually managed by a set of insurance companies. So we don't get into the duration of the planned assets. But what we've seen over the last 6 months is that the rate projected by the insurance company has gone up steadily.
What we are also seeing is that the discount factor that we use has gone up sharply. So we do believe that over the next 12 months, the gap between our liability and the funding that we need to infuse into the fund will narrow a bit. So we see a positive upside, which should work in tandem with the kind -- some way in terms of the downside that we see in mark-to-market on the treasury book. So you could see some kind of mitigation built in there.
So last year, we had almost close to INR 2,800 crores to INR 3,000 crores hit to P&L for this that could moderate as we go further. But we will have to see as the scenario becomes even more clearer.
The next question is from Mahrukh Adajania.
Sir, my question is on ECLGS. What is the outstanding ECLGS? And would you be able to quantify slippage from ECLGS' pool?
So request Khichi to take the question.
Yes. We have sanctioned around INR 15,000 crores of ECLGS, and out of which around INR 11,000 crores is the present outstanding and INR 270 crores is the delinquent part of it. And I mean, maybe 1.76% is the stressed part of it. So the outstanding in ECLGS is right now INR 11,000 crores approximately.
Got it, sir. Sir, and my next question is again on MSME loans. So slippage on MSME has gone up quarter-on-quarter. Any particular segments?
MSME per se has been facing quite a bit of a difficulty. In fact, in the first part of the first quarter, we had seen actually quite a bit of struggling amongst the MSME. And it is across the board that most of the MSMEs have been facing the headwinds.
So I mean, I'll just say that most of the MSME sector at that point of time was reeling under pressure. And -- we have seen slippages to the tune of, say, around INR 3,000 crores in this full financial year. But now the situation seems to be tapering off and is much better now.
Okay, sir. Got it. And sir, can you quantify the EBLR linked loans, just the loans linked to the repo rate -- separately, repo rate separately and people separately?
I'm not very sure whether the only total external and external benchmark linked loans would be around 26% of the overall total portfolio. So I don't think there's really much on the [ T-Bill ] side, but most of it on the MSME and the retail would be EBLR linked.
If I add to that, on the overall portfolio, roughly around 10% is T-Bill and recycling; around 25%, 26% is the EBLR; 50% is the MCLR book.
The next question is from Anand Dama.
Am I audible, sir?
Yes, you are. Clearly.
Sir, recently, we had cut down the home loan rate as well. So what is the strategy over here basically that when the market was very aggressive last year, we did not do that. And now when other rates are going up, we have basically cut down our home loan rates. So what is the strategy over here?
Khichi, sir?
Yes. In fact, we have just simply continued the rate of interest that we were holding on. And this being a flagship product of our, in the retail portfolio, we actually wanted to see this portfolio grow. But it's not that we have decreased that in the adverse situation. We have just continued with that same rate of interest. And I think with the EBLR, there is a 40 basis point now if there is an increase automatically.
Okay. Sir, if you can provide growth outlook for next year FY '23 the way you had provided for FY '22, and are you more or less delivered on that?
So our sense is that we should see growth of about 10% to 12% this year, and our stance would continue to be to grow at market or better. And by making sure that we can protect and if possible improve our margins, I think that's how we look at it. Last year, we had looked at about 7% to 10% growth. This year, we believe 10% to 12%, I think, is a fair estimate.
Sure. And sir, thirdly, there was this Air India recovery in the third quarter. So we had similar kind of recovery even in the fourth quarter? And if yes, what does it account to?
Yes. So there was some recovery from Air India in the fourth quarter. And what we have done is we have made some provisions on some loan accounts over and above what is required as per regulatory guidelines, just to make sure that we strengthen our balance sheet and protect it again from future headwinds, if there are any.
The next question is from Gaurav Agrawal.
Sir, just wanted to check your overall restructured number after -- without overlap, so you would have certain overlaps for SME then this COVID restructuring. So if you overlap, if you remove all those overlaps, what is the combined restructure number?
So Khurana, sir, will take that.
Yes. Our total restructured book without overlap net is INR 19,000 crores.
You said 1-9, right, 19?
1-9, yes.
Yes, 1-9.
Okay. And sir, what's your exposure to Adani Group? Including investments and corporate loans, et cetera?
I think we'll need to come back to you on that, probably.
The next question is from Jai Mundhra.
Sir, this quarter, we have seen around INR 800 crore plus MTM loss. Does that pertain to bond portfolio? And considering the yields have moved up from -- since March, how should we look at the MTM going ahead?
Chand, sir?
Yes. The impact is because of 2 comps. One is our domestic bond portfolio and other was international bond portfolio. But the positive part at this point of time, if we look at the -- level as of March '22, almost from the March '21, from INR 618 crores [ to present move to ] INR 683 crores kind of level. So the book has already taken the impact of the yield rise in the last financial year itself. Currently, we leverage another 30, 40 bps above, but then we are quite adequately at this same position to handle that scenario.
The positive part of our portfolio is that roughly around 40% of the AFS book is probably [indiscernible]. And there is a resetting going to happen in a month. And on the last resetting was at a lower level and so resetting is going to be at a higher level.
So this particular thing is going to give me a positive contribution both on the income side and also pulling back some of the -- on the depreciation also.
Sir, how much would be the PV01 for our AFS -- entire AFS book?
It is roughly below 20 kind of a level.
Understood. And sir, where are we in investment fluctuation reserve? Have we fully done as 2% or we are still lagging?
Yes, I think Ian can confirm that, but I understand that has been fully done.
Yes, we have achieved that level as of 31st March 22.
Right. Okay. Sir, my other question is we -- how much provisions are we carrying on this INR 1,200 crores of security receipts book that is there in the BSE? And how much provisions are we carrying on the INR 19,000 crores of standard restructured loans?
So Ian, would you have some figure readily at hand? Or would you want to provide it off-line?
Speak to Jai off-line.
Sure. And last thing, sir, it looks like we have purchased some 35 -- I mean, purchased PSLC certificate for the entire year, which is slightly surprising. So if you can highlight that, I mean, what led to you to purchase PSLC certificate? We have also sold some of them but...
So I think if you see our overall position in terms of priority sector, we are there, right, at about a 40% priority section ratio? But you have commitments in terms of certain subsegments which are there. So we might be surplus in some -- a particular subsegment where we might sell the PSLC and by where we might be marginally short.
So -- but I think this is more on the margin. Broadly, we are pretty much even-steven as far as this is concerned.
The next question is from Mona Khetan.
So firstly, you mentioned INR 19,000 crores of restructured book, including MSME and x of any overlap. So, so far, how much of slippages we've had from this portfolio?
Khurana, sir?
No, this close to INR 3,000 crores have been slipped so far. But this present INR 19,000 crores is standardized.
Okay. Got it. And this INR 3,000 crore includes the future retail exposure of INR 1,700 crores [ that's lived this quarter ].
Yes. Yes.
That's correct.
Okay, sure. And the Air India reverses that you spoke about, could you quantify how much was the reversal this quarter?
Chand, sir?
The reversal is -- the provision reversal is close to around INR 1,000 crores.
Okay. And did it benefit the interest income line item as well?
Very marginally. Just about INR 100 crores, so it was just marginal.
The next question is from [ Akhil Hazari ].
Am I audible?
Clearly.
So regard, I just wanted to know, could you give us any guidance on credit costs for FY '23 as this quarter has been a little high again because you've been taking extra provisions. So I just want to know going forward, would this continue?
So our sense is that we should be looking at credit costs at about 1.5%. I think thereabouts. And again, there could be improvement depending on how circumstances are, but that's as of now, our central estimate.
The next question is from Saurabh Kumar.
Two questions. One is, would you expect now better recoveries coming in your legacy power NPL accounts given the situation of power assets in the country? And the second -- so I'll ask my second question later, but the first one, yes.
So Chand, sir, will take that.
Yes. That's the hope currently because of the demand scenario, a lot of traction on the power sector and including, I mean, assets on this side. So going forward, hopefully, the recovery would be much better.
And sir, what the pool of those power assets NPL, I mean, at BOB, I mean can you quantify that?
We'll provide you off-line.
Khurana, would you have any ready figure, otherwise, we can give it off-line?
INR 2,000 crores, sir.
Okay. The second side is on bob World, how much are you spending annually in terms of your spends? And what is it projected to be? And what was the total cost of developing this platform, sir?
So I think, Joydeep, would you want to take that?
So the development cost on bob World et cetera, the exact figures I don't have on hand immediately, maybe we can provide that off-line or subsequently. But yes, in terms of spending on bob World, et cetera, probably we will continue the promotions related to bob World et cetera, because we are seeing a lot of traction and sort of activation also on the bob World platform.
And plus the downloads, et cetera, that have been happening on the app has also seen a lot of traction. We have seen almost INR 1 crore customers getting activated this full year. So from that perspective, I think the meeting in terms of the spending, the visibility promotion spending that we are doing on bob World.
I'm just trying to put it in perspective. So there are 3 pieces to it, right? One is development cost. The second is in terms of evangelization, and the third, you might visit publicity and marketing.
So the publicity and marketing is pretty much part of your usual budget. It's only that from year to year, you decide to see which are the products that you might want to push. So I don't think there's been any significant expenditure, which is over and above the normal marketing expenditure of the bank.
As far as evangelization is concerned, that is by our own staff members and branches. So there is really no net cost to that. So we have been able to acquire 10 million customers in bob World without any additional cost as compared to the normal operating cost of the bank.
As far as development cost is also concerned, it has been, again, done largely in-house with some vendors. So they are not -- there are not very large, big ticket costs which are attached to that. So I think if we were to really measure the impact that we have been able to achieve as compared to the investment, it's a very, very positive return ratio that we have on bob World.
And just a follow-up, sir. By the end of this year, we would expect around 25 million, 30 million customers of bob to have transitioned or at least downloaded bob World?
So the way we see it is that we have 60 million non-FI customers, right? And I believe that when we look at the best banks they have a penetration of about 50% with mobile banking. So for us, that would mean about 30 million. So we expect to take this number from 20 million at the end of March to 30 million within this financial year.
The next question is from Ashok Ajmera.
In between for some time, I was mute. I was -- so I didn't hear any -- I mean, the reply, but even at the cost of repetition, what is the status of ECLGS, our portfolio, and whether any kind of delinquency is seen there? And what is the claim period were lodging the claim with the government for that? Is there anything -- can you give some color on that, sir?
So I think Khichi sahib had, I think, taken that question. I'll just summarize what he said and then hand it over to him to supplement that. So INR 15,000 crores are total sanction of ECLGS, INR 11,000 crores is the current outstanding. And from what I recall of Khichi sahib's answer, under INR 300 crores is what the current delinquencies are.
And then this will be launched as a claim on a periodic basis or...
Absolutely.
Periodic basis, yes.
And we will immediately get it or there will be some lag...
So I don't expect that there should be any lag as far as that's concerned.
Sir, another thing is on the entire NCLT, now what is the scenario today now -- how many our COC accrued? How many are already accounts -- some approximate amount so that we have some idea of the recoveries now coming forward in this coming 1 or 2 quarters. Can some light be drawn on that, sir?
So I'll request Khurana ji to take that question, please.
So yes. Yes, sir. It is total around 86 accounts that reduction plan is approved. But still in spite of that recovery has been distinctly going to be, again, distributed in this year or maybe next year also. Presently, this quarter, we are expecting around INR 500 crores from the...
How much is the total amount of these 86 accounts?
INR 11,600 crores, but if we look at that kind of percentage resolution what we are getting. So I think this quarter, we are getting only INR 500 crores.
Okay. At least that much visibility is there. But the things will do -- now that the things are speeding up in NCLT or you now -- I mean, is it just a question to all the bankers? In fact, I have been asking that looking at the process, the way it had come initially and we had a lot of hope, now that things are dragging. So do you prefer more as an OTS and settlements rather than going to NCLT and then waiting for years for the recovery? So just your views on that, sir?
So sir, as far as NCLT in many cases, there has been a very good recovery and it has worked very well. But actually, I will say that both sometimes, things are getting [ dead also maybe court intervention ] or the cases are not filed properly or resolution professionals are not able to take things in time.
But I'd say this is another tool for us where sometimes we have to measure we have to be able to go for OTS as well as sometimes this is also working. So I would say this is another tool, it is working for a few cases.
The next question is from [ Rakesh Kumar ]. This is our last question for the evening.
Just 2 questions. Firstly, with reference to the notes of accounts, our security receipts is around INR 1,200 crores and majority of them are unmet or in the NR5 or NR6. So what is the provision that we have outstanding on that security receive number, sir?
So whether Khurana sahib or Ian can give the information?
So sir, I do have -- okay, the INR 1,200 crores is outstanding and the provision standard INR 1,000 crore.
And secondly, again, to the notes of accounts #25. So we have acquired some loans. So like if you can just help us what is the -- their already other loans in terms of their CIBIL score and all. So can help us understand that.
Can you repeat the question?
Are you talking about the securitized purchase of through directors?
Yes, yes. So also the loan quality of which we have acquired, so if you can help us understand like the score is on the lower side, like [indiscernible] so if you can just give some details on that.
The criteria for each of the tools that we purchased is actually mentioned in the no-store counts and the minimum cutoff above which the loan would have to be acquired is also mentioned.
Correct. Correct. So basically, like -- so that is a minimum rating. So -- but what would be the actual rating for on an average for the loans that we have acquired?
We can connect with you off-line and give you the data [ later ].
We now request CFO, Sir Ian De Souza, to give a vote of thanks.
So I'd like to thank everybody on the call for logging into our call. I think -- there were 2 other banks which had a call today. So thank you very much for logging in and supporting us like always. We're glad to be before you today to talk about our excellent set of results, and look forward to seeing you in future calls. So thank you very much.
Thank you all for participation, and have a great evening. Thank you.