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Bank of India Ltd
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Ladies and gentlemen, good day, and welcome to Bank of India conference call. [Operator Instructions] Please note that this conference is being recorded.
We have with us Shri A.K. Das, MD and CEO; Shri P.R. Rajagopal, Executive Director; Shri Swarup Dasgupta, Executive Director; Shri M. Karthikeyan, Executive Director; Shrimati Monika Kalia, Executive Director; and other top management team from Bank of India.
I now hand over the conference to Shri A.K. Das, MD and CEO. Thank you, and over to you, sir.
Yes, thank you very much. Good afternoon to all members of the analyst fraternity, ladies and gentlemen. I extend a warm welcome to each one of you for today's interactive session and with you the financial results of the bank for the Q2 of FY '22-'23.
Global growth is facing headwinds from continuation of tightening monetary policy environment. As per IMS, global inflation is forecast to rise from 4.7% in '21 to 8.8% in 2022. The curve in inflationary trend, the Central Bank have gone ahead with rate increase and controller municipally. The latest GDP growth projection, RBI has reduced GDP growth rate of India to 7% from earlier [ 17% ]. There has been a gradual appreciation of USD vis-a-vis major currencies, including rupee.
Current account deposit also widened, especially due to higher oil prices and more importantly, expansion in economic activities. In the overall present oil scenario, India, however, continues to be a relatively high-growth country with exchange rate stability and high ForEx results as part of the overall financial stability.
The banking industry during '22-'23 as for RBI report September, witnessed a comparatively lower deposit growth of 9.2% and a higher advances growth of 16.4%. This reflects the continued increase in credit creation and business activities despite monetary tightening and high inflation. Incremental CD ratio for banking system has gone up to 130% for operating and need to garner more deposits to fund this advanced growth.
This is expected and not unusual, especially at the time when the revival of economic activities are majorly relevant other adverse factors. With an eye on the evolving global and domestic scenario, we are continuing our strategies launched in the beginning of the year. Deposit growth has been muted due to tight liquidity situation in the market. We are reinforcing our connect with the liability customers to improve CASA as well as retain deposits.
RAM segment continues to be our area of focus following the strategy of increasing RAM share in total advances. Mid-segment advances are being targeted to boost our MSME advances, and improve the portfolio yield. SMA management and slippage containment remains high priority areas on the bank's agenda with continuing measures for improving collection efficiency and NPA recovery.
I'm happy to announce that the bank's net profit for Q2 FY stood at INR 960 crores, up by 71% Q-o-Q from Q1 of FY '23 figure of INR 561 crores. NIM stood at 3.04%, improving by 62 basis points Y-o-Y. Net interest income, NII, stood at INR 5,083 crores, up by 44.28% Y-o-Y. Asset quality further improved with reduction in gross NPA, both amount-wise and percentage-wise. The gross NPA ratio was brought down to 8.51% and net NPA to 1.92%. Slippages ratio for the Q2 FY '23 was at 0.30% as compared to 0.69% in the first quarter.
Similarly, credit costs improved from 1.21% in Q1 FY '23 to 0.60% in Q2 FY '23. Cost-to-income ratio also improved to 48.10% from 58.22% in the first quarter of the year.
During this quarter, the bank expanded it's global credit growth to [ 17.89% ] Y-o-Y with increase in RAM advances share to 54.25% as compared to 52.51% in Q2 of FY '22. However, domestic advances growth was relatively less at 12%.
During current year, with our ongoing IT initiatives, credit offtake is expected to improve further from current levels. We expect credit growth of 11% to 12% during the current year. For augmenting yield on advances and NIM, the bank is continuing with its strategic focus on RAM advances along with increasing size and yield of credit portfolio, managing asset quality is also of paramount importance. We expect gross NPA ratio to be contained below 8% and credit cost at less than 1% going forward.
We aim to maintain NIM at around 3%, thus ensuring sustainable growth in profits. NIM, credit cost, NPA ratio and CIR have shown significant improvement in this quarter, and we are committed to sustain and improve upon the levels in the quarters ahead.
I would, again, thank you for your continued support and guidance. Now the floor is open for discussion and question and answers. Thank you.
[Operator Instructions] We have our first question from the line of Ashok Ajmera from Ajcon Global Services Limited.
Congratulations, Das sir, and the entire top management team of the bank for the fantastic results. In fact, the results are much better than our expectation, I mean, profit coming to INR 960 crores in 1 quarter in the year against INR 561 crores the earlier quarter, even the asset quality has also improved tremendously. A lot of good points in this quarter the bank has done in spite of the difficult times.
Sir, having said that, I have a couple of questions and some observations. Sir, slippages are also under control. But now looking at the interest rate going up and the inflation going up and some kind of pressure being seen especially in the RAM, even retail books also, what is your view, sir, that coming -- going forward in the September -- October-December quarter? Will there be a pressure on the SMA-2 book going up or slipping some more slippages into NPA? This is number one.
My another observation -- I mean, a question is, the cost-to-income ratio has definitely improved a lot to 48.10%. So is the -- what is the further plan for reducing the cost a little more? I mean, downside, maybe 40%, 42%. Is there any target for that?
And one, sir, I have observed is that there was a divergence as per the Note #11A and B as for the -- I think the provisions for the standard assets. Can you elaborate a little more on that note, that what is the effect which has happened in this quarter? And I think some carry forward is also going to be there in the next 2 quarters as per the note. So a little more details on that?
And my last one is in case of the borrower accounts of [ 24 ] borrowers account INR 6,505 crores outstanding. You've done the additional provision of INR 1,291 crores, out of which INR 601 crores in this quarter. Now going forward, I mean these are the accounts where the resolution plan could not be completed in 180 days. So going forward, how do you see the further provisioning to be done on this account?
And the last one is on the family pension. You further carried forward INR 428 crores. When there was a good profit in this quarter, was it not prudent to provide a little more on this account?
So these are my few observations and questions in the first round of question, sir.
Thank you, Ashok for your kind words and complement. And in the meanwhile, I forget the first question.
Pressure on SMA book in the light of increase in the rate of interest and...
I don't think there should be any undue worry about that pressure on SMA book because we are rational. All customers, consumers are rational. They have leveraged the low interest regime. They will also take the high interest regime into their stride, so there should not be any problem. These are ups and downs part of business cycle.
So I don't think there is anything to worry about that. In fact, in a low interest regime also, our SMA numbers sometimes were higher than what it is today. I remember, December '20, it was INR 85,000 crores. So there is no thumb rule as such. The only thing is that we will keep engaging with the customers wherever stress is visible, we will try to handle and do as good as we have done in the Q2 as far as slippage management is concerned there.
Ashok, one thing you should note that our role forward, which was 17% during last quarter has improved to -- has reduced to 7% this quarter. And our role backward, which was 62%, we are planning it to take it to 75%. So the strategy is already lined up. This is just to supplement our NBFC...
Second part is cost-to-income ratio, which was 58%. In fact, for the last few quarters, it was above 55%. And we are also giving a mandate by the regulator to bring it down to 47% or a peer group average. I know 40% is a global benchmark. And very few are living up to that kind of benchmark. So with lot of difficulties and a lot of efforts, we have brought it down from 58% to 48%. We would like -- we'll be happy if we can maintain it at 48% or 47% because these are -- it will take gradually, it will happen. It may not happen overnight. So our effort is to bring it down further, let's see going forward, what happens there.
Regarding divergence, Karthikeyan, would you like to...
This is on account of Ashok for the 6 account standard. Some small operations of out of order for few days, because to following the entity of the 7/6/19 circular of RBI, we have made the provision of INR 473 crores, which is again, going to be the same amount coming in Q3 and Q4. Totally it was INR 1,419 crores, which you rightly pointed.
And the other term which you are saying totally in the book, we are having about 377 accounts, which are more than INR 1,500 crores exposure. We have individually analyzed all these accounts and found that nearly about 20, 25 accounts only are into a bit of strain and stress. We have engaged with those companies very closely. And now our engagement will be much closer, every week we will be doing that group coordination and ensure that they don't -- they have been advised that their health of the asset should always be regular. So they have also ceased of this matter, and we don't think that we have any free parts.
Rajagopal, about family pension.
[Foreign Language] we have already taken the dispensation from RBI. [Foreign Language]
Okay, sir. Point taken, sir. Since you are on the line, Rajagopal, can I just take a liberty of asking about the super app, the progress on the digital super app like tranche you had released last time. Now what is the progress there, sir, going forward? I think we have a limit up...
I will request [indiscernible] who is looking after that to answer you. You will get a first hand information instead of me answering it.
Thank you. We have completed the requirement catering stage. We have started building it. Now we are getting placed phase-wise deliveries go from this month onwards for testing and will be ready for the release of this before 28th of February. During first week of March, we'll make a position to release this.
So that is the final, means, I think the earlier deadline for entire implementation was September '23, isn't it?
This is for retail customers. And for Phase 2, we have lined up Phase 2 for corporate customers, that is -- for them our timeline is 1st of December. That we'll be meeting as well. As of now, the project is on track and we have the satisfactory.
Sir, may I ask a last question on the treasury that the rates going up now, the Fed has also increased 75 basis yesterday. So now going forward, we also see some pressure coming up again. I mean, maybe 50 to 60 basis points more by RBI. Sir, from the treasury point of view, from the point of view of mark-to-market pressures and also the treasury income opportunity for trading, where do we see this current quarter and next quarter going forward? How much it -- I mean, up to what level we are cushioned, like even the U.S. -- the bond yield now has gone to 4.75% or 4.8%. So going forward, how do we -- how are we placed, sir?
Yes. Sir, we are comparably based. Our total portfolio is only to the tune of INR 29,000 crores, out of which INR 14,000 crores we have FRPs and close to INR 8,000 crores we have TBUs. So very minimal amount is up there. And whatever the price we have seen already, INR 775, INR 780 we already seen, [indiscernible] INR 790 to be on the upper hand side. So there is not much of worry at our level, and we are well protected against the fluctuations in the rate of interest on that.
Treasury income?
There will be some hit on the exchange income because of the premiums are levering down. Otherwise, in other segments we will be as usual seen income.
But even on the foreign deployment or the foreign exchange front?
Yes, basically, that is for the breakthrough of our [indiscernible], so that will not remain a worry for us. We have the capital market product.
That is one thing. Another thing is traditionally the yield there in the -- our current overseas book has been very narrow. It will also start expanding now because of the Fed increases. So we'll get a better margins. So if you see our margin expansion is good on global basis by 60 bps compared to the other banks. So it will be further increasing if the Fed increase the rates.
The only thing is, as we rightly pointed out, our treasury GMs are saying, ForEx income that we used to get because of the premium -- high premiums, that has narrowed down. We have already seen the narrowing in the last 2 quarters. It has already come down. Despite that, our balance sheet is very strong. So we are not dependent on that. Now it will be in the range of INR 150 crores to INR 200 crores, it will continue like that.
So Mr. Das on the whole the ROA, we expect about 65 basis, I mean, 65.65% or 70%?
[Foreign Language]
The annualize is 54.7%. So do we expect next 2 quarters to doing well when there is no -- not much worry on the treasury also, and your credit book is also up. And as you say that the interest rate benefit is also there on the global international book. Anyone locally also, even if the -- I mean the credit rates suddenly immediately goes BBLR and MCLR, whereas the deposit rate do not -- I mean, there is a late period. So I think next 2 quarter also should be good for us. So ROA might go to 60 basis or 65 basis points for the whole year.
Yes, yes, yes. ROA, we will definitely improve with higher operating profit pool and the net profit also accordingly because from recovery also, good amount is expected in the third and fourth quarters. So on 0.47%, if it can go up to 0.65%, that should be good enough.
Congratulations once again, sir. Our last time report had market price of INR 48.80 [indiscernible]
Ajmera, I request you to come back in the queue, sir. We have a next question from the line of Jai Mundhra from Batlivala & Karani Securities India Private Limited.
Mr. Mundhra, we are unable to hear you. No, sir. It is still not audible. The volume is very low.
Is this audible now?
Yes.
Yes, sir. So sir, on this divergence -- RBI divergence on standard assets you had mentioned 6 accounts, and we have the provisioning as well some INR 1,400 crores to INR 1,500 crores. So I wanted to check, sir, this has not come for other banks so far. So -- and these accounts look fairly big, right? So if you can tell us, was this specific to Bank of India? Or what was the nature of lapses there?
Certainly, these accounts are all prevalent in the ecosystem, and it's not only for us. And these are showing a bit of going into default or out of default. And based on the circular of 7/6/19, if you would see the review rate and the 180 days norm. And the day -- recurring day, it was into default and on the 180th day, it was again still in default. That's all.
So it is there in -- some 7 or 8 banks are bearing various assets. That's the issue there. And we are addressing that. We are now engaging with them in the company. And we have already, if you could see the -- in 3 or 4 of the assets, it's about 20 days, they are not continuously into default. And in some 2 assets, from August onwards, they've continued to be in regular. They are noninterest. So as for circular, going down into 180 days, if they continue to be in the regulator category, we will be taking out those provisions back.
Right. And sir, what would be the provisioning requirement here? So let's say, it would be like 10% or around 20% on the standard assets?
It's 30%.
3-0?
3-5.
Okay. 30%, 35%. Okay. Understood.
20% plus 15% [Foreign Language] All these are all accounts under the 7th June circular that you are aware, 180 days [Foreign Language] So basically, these are SMA accounts. There is an interpretational issue of 7th June circular and hierarch circular between RBI and the banks. And this is there with all the banks, okay? And the matter has been escalated to RBI also for clarification. We are waiting. It has been taken up at the IBA level also saying that the interpretation put forward by inspection team of RBI [Foreign Language]
Right. Understood. And okay. So these would be sovereign, right, sovereign [indiscernible] sovereign PSU accounts-only, right? None of this would be private account?
Yes. Our issue is, these things have to be provided for only when there is a difficulty. But they have a different view, we'll see. We are still engaging with everybody who matters at the industry level, not at our bank level.
Right. Second question is, sir, on growth. So so far, the growth has been 17% to 18% Y-o-Y. And if you were saying that you are hopeful of 12%, 13%. That is it fair to say that from here onwards, it could be like flattish kind of a loan book until the end of the year. I mean, mathematically, that looks possible, right?
Sir, mathematically, that's correct. You are saying we are at 12% now, domestic and 18% global. There are inflows, outflows happening and there are corporate sector has to. So what we are saying is a conservatively minimum 12%. And we can't say at this point in time, like in the beginning of the year, we had stated that 8% to 10%. Now we have reversed to 12%. Going forward, let's see, by December end, how the trend looks like, then we can -- so it's not a question of segment things.
We'll continuously review the annual plan that we have. Basically, this 12% that we are talking about is the annual plan, corporate plan that we have in place. So anyway, we have to review depending upon what kind of numbers that come out in terms of credit growth in the external economy.
So we'll see what happens because last fortnight have been very robust in terms of growth, 17%, even retail growing at a very healthy manner and MSME is still growing at 36%. So naturally, it will have an effect on our book also so we'll also continue to grow higher. So that time, we'll see. So we'll come back to you when we are good at it and see.
It's too early for us to say now. We'll have to watch for another 1 month and see how it peaks up.
Right. Okay. And lastly, on margins, sir. So this quarter has been a very strong jump across global, domestic margins. Is there any -- is this all -- is there any one-off in terms of maybe interest recovery that has come in NII or something -- some technical thing, interest, IT, refund, et cetera? Or this is purely organic.
See, I'll tell you, if you see the margin expansion is around 60 bps. Do you agree? So around 1.5 to 2 bps is on account of the income tax refund, which I can tell you straight away, okay? Remaining 55% to 56% margin expansion is because of organic growth in the book.
If you see our retail book, it has grown very robust manner, 23% is my growth in retail, where our margins have become better because of the RBLR rate increase. Okay? And then if you if you see our -- the spreads across the advances book, around 54% to 55% of my book has an interest rate in the range of 10% to 12% after the RBLR increase, okay?
So I am getting a good margin over there. And around INR 1,34,000 crores of advances book has -- is in the range of 10% -- 9% to 10%. So most of the advance accounts, which used to be in the range of 6.5% to 7.5% have gone up to 8.5% to 9%, 9.5% in that range on an average basis. So therefore, the margin expansion is very good and it gives the sustainable also.
Added to that the -- another thing I think on the cake is my international spread also is increasing because of the tightening of the fed rates. So that will also help me in terms of my international book is also good. There may be some good margin expansion we may get in the international book also going forward. So in that aspect, the margins are sustainable margins that we are good in terms of 40, 50 bps margin expansion, we'll continue to be retained.
For capital, September '21, our CD ratio was 68%, which has gone up by 8 percentage points to 76% at September '22. So that also helped because average advances growth also was quite reasonable. So that also helped our interest collected on advances.
Right. And sir, so this is despite cost of deposits will rise over the next 1 or 2 quarters. You are expecting that the margins will at least be staying on, right? So you are saying 3% for full year. We did 3% in this quarter. And last quarter, we did 2.55%. So I mean, despite increase in deposit and cost of funding, you are expecting margins should inch up even further from here?
Actually, what we are saying is if you look at the spread, as a measure of -- as a proxy for margin expansion, my spread has increased by 50 bps compare on year-on-year basis because you remember the cost of funds have gone up, at the same time, yield on advance has also gone up significantly to 7.26%.
So naturally, whatever margin expansion happens, the spread expansion also has happened. And spread expansion will continue to happen. So if there is a deposit rate increases, automatically, we see rate increases in the advances also. So the spread will be maintained at 3.5%, 3.4% spread that we are talking about, will continue to be maintained. In that context, margin also -- and NIMs also will be there at 3%, 3.5%. That's what I'm saying.
Right. And sir, what is your principle for this EBLR rate hike? So if, let's say, September 30, RBI had done [indiscernible] increase, when would you have passed down -- I mean, when would your RLLR would have changed with how much...
Instantaneously it will change, or also have mix at the first half.
No, that will require same rate.
I'm looking at spread also if you want to increase the spread.
It changes in same day.
Instantaneously, yes.
[Operator Instructions] We have a next question from the line of Bhavik Shah from Morgan Stanley.
Congrats on very good set of numbers. So just three questions from my side. Sir, firstly, sir, what would be our outstanding DTA, deferred tax asset? And when do we plan to shift to the new tax regime?
Our deferred tax asset is now INR 8,200 crores. And since we have match credit available. So unless the match credit decision comes and it is already there in the High Court level, decision is pending. So unless the decision comes appropriately, we would not take any decision on this. As said, there is no out outside limit also -- outside deadline also within which we need to shift to the new regime.
Okay. And when do you expect the decision by? Is there any timeline?
Yes. It is actually industry level or 2, 3 banks together, that matter is pending in the High Court. So -- and 2 banks' case, that things are also pending at terminal level also. So decision is yet to come. We are also not have any idea.
Okay. Okay. And sir, what would be the LCR that we'll be holding, liquidity coverage ratio?
Liquidity coverage ratio is...
197%.
Sir, last quarter, it was 187% approx.
It will continue to like that only. We always maintain at that range, 160%, 180% is the range that we're maintaining.
Okay. So I think current would be in the range of 160%, 180%?
Yes, yes, yes.
Okay. And sir, of the restructured book of INR 14,000-odd crores, COVID 1, 2 and MSME. Sir, what -- how much is still under moratorium?
I think in framework 1 the metering is already over. So there, we have reduced our borrowers -- 50% of our borrowers have paid out their debt. And in terms of framework two, the moratorium is there, there were 55% of our book is billed...
I'm sorry, sir. Your audio is not clear.
Sir, can you hear me now?
Yes.
Sir, the total outstanding [indiscernible] is INR 1,961 crores. And I wonder is it completely over 6% -- 3% of that amount of total delivery of INR 7,714 crores. And in terms of [indiscernible] the balance outstanding is INR 7617 crores. And moratorium is yet to be over and we will present that book under the [indiscernible]
Sankar, have you seen the slippage run rate in the restructured book so far?
Runrate in the restructured book so far.
It is 6% of COVID framework 2 and 16% in [indiscernible]
So it's 16% in 1 and 6% in 2. And sir, I didn't catch this correctly. So what is the amount which is driven in the moratorium and RF2?
Around INR 3,000 crores.
Okay. Okay. Understood. And sir, just a couple of data keeping questions, sir. Sir, what would be the outstanding security receipts? And whether our capital ratios include profits or it is excluding profit?
What? Whether -- what is the...
Our CET1 ratio, does it include first half profit or does not?
Doesn't include that.
Sir, pardon I didn't catch that.
INR 3,300 is the SR portfolio, that's what. It is provided fully 100%.
[Operator Instructions] We have a next question from the line of M.B. Mahesh from Kotak.
Sir, just a couple of questions. One, this growth that you are seeing in these foreign loans, if you could just kind of give us some color on what is the nature of this growth that you're putting out here in this particular book?
Basically, the business, we go for trade finance as well as transfer funding. And the transfer may comprises of secondary and primary as well as secondary markets as well as [indiscernible] loans. And the working capital finance, that's the trade sign up, that is purely [indiscernible]
Okay. In this -- of this book that you've have, is it probable for you to give us some breakup of this INR 80,000 odd crores of loans that you have?
Exactly what? If you want a statistical data, we can always give you.
Essentially, what would be the breakup between working capital loans and long-term loans that you would have here? If you could also probably kind of give us some color as to -- are they related to corporates that are based out of India? Or would there be local credits in the markets that you're operating?
Most of the -- most of them are local because now hardly any corporates in India borrow debt, okay? So most of them are local borrowers and of course, multinational borrowers. Many of them are multinational banks, many of them are multinational operators, especially in the Europe and U.S. and even Asia. So big time MNCs. We are part of the OpEx market, my dear.
Perfect. So one question. While you're not allowed or you have restriction towards doing any form of acquisition financing in the domestic book. Is there anything which prevents you from doing acquisition financing outside India?
Acquisition financing but there is no prohibition as such. Where do you get that idea, I don't know, neither in the domestic nor in the overseas there is a provision for acquisition finance. But there are some controls and restrictions that are there, which we need to follow to fund acquisition financing. There is no prohibition as such anywhere.
So many of us domestically, we don't fund much. Internationally, it is a practice to fund acquisition finance. Typically, pharma companies need acquisition finance because they do a lot of acquisitions.
The question -- so the question is where you've been doing acquisition financing in this book in the last few quarters...
We have not done much. It's a very small portion, maybe in the secondary market, we do. That's all. There not much is the in that INR 80,000 crore book. Very insignificant.
Okay. My second question is on the SMA book that you have, that you report of about INR 30,000-odd crores. Is it possible for you to give some color on what is the nature of these exposures? This is in Slide 25 of the presentation, where you have INR 31,000 crores pertaining to the corporate side.
Yes. See, there are above INR 5 crores segment, the SMA-1, 2 portfolio which was INR 2,415 crores during June, has come down to INR 1,672 crores with a reduction of 31%. If you see the same thing segment wise, retail, LSME and corporate, all these segments have shown a reduction in the SMA portfolio by 26%, 1%, and 3%, respectively.
So I think if you see the slippage ratio of our bank, it is now reduced to 0.3%. That is effective management. I mean, the engagement with the corporate is happening. And though it is in 1, 2 in retail and that will slightly increase, but they're not in a position -- we're not allowing it to slip into the NPA segment, our control has been raising.
My question is -- sorry, just to interrupt here, the question is only around the corporate side, is INR 31,174 crores that you have on the corporate side. If you could just kind of give us some color as to what is the nature of lease exposures that are currently at risk?
Yes. Yes. Understood. Your question is understood, it is like this. Most of these accounts where there is a lag in payment after interest demand is raised. For example, interest demand is raised say on 30th -- 31st of every month, okay? And there is a lag in payment, say 3 days, 4 days in the pay. Most of the [indiscernible] government companies, most of them, they pay with a lag.
So most of the banks, what they do is they give a specific due date for these kind of corporates, which we are also trying to implement. Once we implement that specific due date principle in these accounts, this number will come down substantially. This is because as of 30th September upon interest being charged...
Perfect. And sorry, just one last question. On the corporate NPL recovery for second half, including the NARCL outcomes, if you could just kind of give us some color on how much are you expecting in the near future on that?
Anand, do you want to take it? Anand, our General Manager, HRD, will reply.
Sir, as far as NARCL is concerned now, binding bids have been received in 3 accounts where we have exposure. We are not the leader in those accounts. And in 2 accounts already the JLM has accepted the offer. This process has to run. And in the third account, some negotiations are pending which comes to around nearly INR 280 crores is outstanding. Apart from that, in 2 -- 3 big accounts where we are the leader, one chain of -- retail chain of accounts and other accounts based at Kolkata where the JLM has already decided to give the consent for transfer of account to NARCL. The due diligence process by the NARCL progress there, the total outstanding will come to around -- our outstanding will come to around INR 1,600 crores. And of course, that may not happen in Q3, maybe in Q4, big accounts. For this quarter, we are planning only around INR 280 crores.
And this INR 280 crores pertains to the amount that later gets reflected in the written off or it will be reflected in the gross [indiscernible]?
No, it will be in gross. It is not written off, of course.
Okay. And outside of this, any large resolution still that you have visibility?
Yes. In fact, I would tell that we are having nearly 24 accounts where the voting by the COC is already over and NCLT orders are expected, which includes the big accounts also. So any time any order is coming, that will be upside on the expected recoveries which we are planning for this quarter.
And would you be able to quantify it?
Our bank exposure may be around INR 600 crores in those 24 accounts.
This is the quantum which is expected to come in, not the exposure?
Expected recovery of outstanding maybe around INR 1,600 crores.
We have a next question from the line of Suraj Das from Bativala & Karani Securities India Private Limited.
Most of the questions have been answered. Only a couple of questions. The question number one is, sir, you have reported restructuring 1 and 2. Is there any other restructuring left that is earlier CDR, SDR, or other legacy MSME restructuring?
Nothing, nothing there. We don't have anything. RFC has one and 2 [indiscernible] which we know it's happened for large corporate accounts. There we have an outstanding of INR 4589 crores, which is also given in our presentation in point #26 -- page.
Okay. Okay. So the MSME restructuring number that is there in the BSC notes, which is something around INR 2,700 crores, so that is also included in this restructuring number, right, on your slides that you have given?
Yes, yes.
Okay. Okay. Understood. And sir, also on the SMA-1 and 2, so if you can provide us the all-inclusive SMA-012 number as well as you were reporting until a couple of quarters back. What would be the total all-inclusive 012 number?
We'll give those numbers.
All-inclusive SMA is INR 74,000 crores, out of which SMA-0 is as high as INR 56,000 crores, 11.39%. SMA-1 is 8,300; SMA-2 is 9,400. So SMA-1 and 2 constitute about 3.5%. SMA-0, we don't have issue, although as Mr. Rajagopal told we are tackling that proposition of 1 or 2 days default only. And the movement also is quite brisk there. So SMA-1 and 2 put together is about 3.5%.
Understood, sir. Understood. And sir, what would be the loan mix by benchmark? How much would be the total floating rate loan and how much would be MCLR and repo linked?
MCLR is also floating only. MCLR, RBLR, all are floating. We have only floating loans now. EBLR and MCLR. So if you want a distinction between EBLR and MCLR, it is -- you can take 47 EBLR, remaining MCLR, and small portion is fixed.
Understood. Yes, yes, that was the question only, the mix between EBLR, MCLR. Okay. Understood. And sir, the last couple of questions. You have given the domestic yield and COD, cost of deposit, in your slides. Can you please provide the corresponding number for the last quarter as well, if it is handy?
[Foreign Language] Cost of deposit, in September it was 3.75%. In June '22, it was 3.49%. And in September '22, it is 3.54%.
Sir, that was the global, I think. I was more asking about the domestic cost and yield that you have given on the Slide #22. So the sequential movement of that?
[Foreign Language] Next slide is only a graphical presentation of the [indiscernible]. That also is global.
[Foreign Language] We will give you, no problem. [Foreign Language].
No problem, sir, we'll take it offline. And the last question is, what is your expectation on the total recovery upgrades in the second half given that the first half is quite good.
So we are anticipating a cash recovery of 1,500, an upgradation of 500. Similar performance will be repeated for Q4 as well.
[Operator Instructions] We have a next question from the line of Himanshu Taluja from Aditya Birla.
Most of the questions have been answered. Just one question. Sir, given the pace of the -- given how we are seeing the credit growth panning out right now, and we are also seeing healthy growth witnessing in the retail segment and all, sir can you just -- for the next few quarters how do you expect to close the year with growth? And how you think over the next few quarter sustainable growth could be?
Yes, guidance suggests that at the moment we are looking at a credit growth of 12%, although the global growth has been nearly 18% up to September, that too with a moderate growth in corporate credit. But I'm sure domestic level, the credit growth will improve further. And at the same time, there also will be repayments and all. We have to wait and watch. But minimum, very conservatively, we can say that for the year ending 31st March, '23, minimum 12% growth could be on the cards.
Sure, sir. And sir, just my last question, you have already pointed out the healthy pace of the recoveries and upgrades in the pipeline, and we are seeing the benign slippages also. Anything that you want to guide where you or your target is to bring the gross NPA and net NPA by the next 2 quarters, probably end of FY '23?
Our guidance in the beginning of this financial year was to bring down gross NPA ratio below 8%. Now September it is 8.51%. So we are well on course to achieve that. I think -- I mean, not below 8%, substantially below 8%. That is our aim. And the net NPA ratio, we also had a guidance of below 2%. So by the year-end we will try to bring it down to below 1.5%.
[Operator Instructions] As there are no further questions, I would now like to hand the conference over to Shri A.K. Das for closing comments. Over to you, sir.
Yes. Once again, I thank all the analyst friends who have been supporting us, guiding us, for their very deep diving questions. And I hope we have been able to answer all your questions. In case there are any questions which need to be answered or any further clarification, kindly get in touch with our finance department so they will arrange a proper revert on that -- timely revert. So once again, thank you very much, and have a good day.
On behalf of Bank of India, I announce that this conference concludes. Thank you for joining us, and you may now disconnect your lines.