Canara Bank Ltd
NSE:CANBK
| US |
|
Johnson & Johnson
NYSE:JNJ
|
Pharmaceuticals
|
| US |
|
Berkshire Hathaway Inc
NYSE:BRK.A
|
Financial Services
|
| US |
|
Bank of America Corp
NYSE:BAC
|
Banking
|
| US |
|
Mastercard Inc
NYSE:MA
|
Technology
|
| US |
|
UnitedHealth Group Inc
NYSE:UNH
|
Health Care
|
| US |
|
Exxon Mobil Corp
NYSE:XOM
|
Energy
|
| US |
|
Pfizer Inc
NYSE:PFE
|
Pharmaceuticals
|
| US |
|
Palantir Technologies Inc
NYSE:PLTR
|
Technology
|
| 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 |
|
Walmart Inc
NYSE:WMT
|
Retail
|
| US |
|
Verizon Communications Inc
NYSE:VZ
|
Telecommunication
|
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 |
82.833
124.8628
|
| 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 |
|
|
Berkshire Hathaway Inc
NYSE:BRK.A
|
US |
|
|
Bank of America Corp
NYSE:BAC
|
US |
|
|
Mastercard Inc
NYSE:MA
|
US |
|
|
UnitedHealth Group Inc
NYSE:UNH
|
US |
|
|
Exxon Mobil Corp
NYSE:XOM
|
US |
|
|
Pfizer Inc
NYSE:PFE
|
US |
|
|
Palantir Technologies Inc
NYSE:PLTR
|
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 |
|
|
Walmart Inc
NYSE:WMT
|
US |
|
|
Verizon Communications Inc
NYSE:VZ
|
US |
This alert will be permanently deleted.
Canara Bank Ltd
Earnings Call Analysis
Q1-2025 Analysis
Canara Bank Ltd
Canara Bank reported impressive growth in its global business, achieving a year-on-year increase of 11.07%, bringing their global business to INR 23.10 lakh crore. This growth was reflected in their net profit, which grew by 10.47% to INR 3,905 crores. Despite shedding low-yielding advances, the bank managed to grow its global advances by 9.86%. This performance aligns with their previously given guidance.
The bank's global deposits grew by 11.97%, reaching INR 13.35 lakh crores. Global advances also saw a significant increase of 9.86% to INR 9.75 lakh crores. This growth came despite the shedding of INR 22,500 crores in corporate advances, showing the bank’s focus on maintaining a healthy balance sheet and improving yield.
Canara Bank made substantial improvements in various financial indicators. The Gross NPA reduced to 4.14%, marking a decline of 101 basis points year-on-year, while the Net NPA fell to 1.24%, a decline of 33 basis points. Additionally, the bank’s Provision Coverage Ratio (PCR) improved by 118 basis points, reaching 89.22%. These indicators highlight the bank’s successful efforts in managing bad assets and improving financial health.
The bank has been focusing on the Retail, Agriculture, and MSME (RAM) sectors, which now constitute 57% of the total credit portfolio, up from 55% a year ago. RAM sector credit grew by 12.26%, led by a robust growth of 23.54% in retail credit, which reached INR 1.75 lakh crore.
The bank’s return on assets improved from 1% to 1.05%, reflecting higher efficiency and better profitability. Furthermore, for the first time in its history, Canara Bank’s Common Equity Tier 1 (CET-1) ratio crossed 12%, standing at 12.05%. This improvement by 55 basis points year-on-year signifies a stronger capital base.
Canara Bank has successfully reduced its credit cost to 0.90%, a year-on-year decline of 20 basis points. The bank also highlighted the consistency in its income, with steady numbers over the last three to four quarters, demonstrating reliability in their financial performance.
The bank made temporary investments in mutual funds and Certificate of Deposits (CDs) due to surplus funds, amounting to approximately INR 7,500 crores and INR 3,000 crores respectively. These were short-term investments to take advantage of higher yields during times of liquidity surplus.
Canara Bank reaffirmed its commitment to maintaining consistency in performance, both in the top-line and bottom-line. The management aims to enhance their financial parameters steadily and avoid any volatile movements. They are confident about achieving even better results in the quarters to come, maintaining their focus on steady growth and improved financial health.
You don't have any saved screeners yet
Good evening, everyone. We welcome you all to 1Q FY '25 Earnings Call of Canara Bank. Today, we have with us Mr. K. Satyanarayana Raju, MD and CEO; Mr. Debashish Mukherjee, Executive Director; Mr. Ashok Chandra, Executive Director; Mr. Hardeep Singh Ahluwalia, Executive Director; and Mr. Bhavendra Kumar, along with other senior management of the team.
Without further ado, I hand over the call to MD sir for his opening remarks, post which we can open the floor for Q&A. Over to you, sir. Sir, you can go ahead.
Good evening, all of you. I'm here to present the first quarter results of this financial year. Again, one more consistency we have able to show that with these results of the June quarter. Our global business has grown 11.07% year-on-year and stood at INR 23.10 lakh crore. Our global deposit has grown at 11.97% year-on-year and stood at INR 13.35 lakh crores. Our global advances have grown at 9.86% with year-on-year growth and stood at INR 9.75 crores, this is despite in the current quarter also, we continued our shedding of low yielding advances. We have shed almost INR 22,500 crores in the corporate. Even then, we could show this near to the 10% growth, which we have given the guidance last quarter when announcing the results.
With this, our net profit has grown 10.47% year-on-year growth and stood at INR 3,905 crores. First time in the history of the Canara Bank, our common equity Tier 1, that is CET-1 has crossed the 12% and stood at 12.05% with 55 basis points year-on-year improvement. Our return on asset has further improved from 1% to 1.05% in the quarter and with a year-on-year improvement of 6 basis points. As given earlier also, the guidance how to reach the 90% of PCR, we continue to provide additionally that's why our PCR also has improved -- further improved to 89.22% with an improvement of 118 basis points year-on-year.
Our credit cost has shown further improvement and stood at 0.90% with a decline of year-on-year 20 basis points. Our gross NPA, both in absolute number and the percentage, has shown an improvement and a decline to 4.14% with an year-on-year decline of 101 basis points. Our net NPA also has shown improvement and declined both in absolute number and percentage and stood at 1.24% and a decline of 33 basis points year-on-year.
This business is growing led by RAM sector. As earlier, we were repeatedly giving the guidance that we are focusing more on the RAM sector and we want to see that our RAM sector will reach to the 58% of our total credit portfolio. And with this, our RAM sector has touched 57%. 1 year back, our RAM sector was 55% and now it has reached to 57%. This was because the RAM Credit has grown 12.26%, though that overall credit has grown at 9.86%, the RAM sector alone has grown 12.26%. This is led by our retail credit has grown 23.54% and stood at INR 1.75 lakhs. And our housing loan also growing near to the 12% and stood at INR 96,108 crores.
Our vehicle loan has grown at 15.49% and stood at INR 17,708 crores. Our earning per share before telling the figure, let me again remind you that during the quarter, our share price has been split into 1:5 and that earlier the share price was INR 10 a share. Now it's split into 5 shares. That is now each share is INR 2 with face value. With that INR 2 face value, our earning per share became INR 17.27 with an year-on-year increase of 10.18%. Our fee-based income has shown a 16.75% growth and stood at INR 1,910 crores. These are all the few glimpses I have shared with you. Anyway, we have shared our entire presentation to all of you. I'm sure that by this time, you might have gone through that entire presentation.
Now we are all open. Along with me, our Executive Director, Shri. Debashish Mukherjee sir, and Ashok Chandra sir, and Hardeep Singh Ahluwalia, we are all here with you and all the top management is with you. You can ask any clarification, sir. We are here for clarifying that. Now this forum is for you, sir. Thank you very much.
Our first question comes from the line of Mona Khetan. Please unmute yourself and go ahead.
My first question is on growth front. Sir, essentially if I look at retail book, it has grown by 12% Q-on-Q. Sir, what exactly is driving this growth because if I look at HL and Vehicle, the growth is in line with other book, it's not that high. So yes, what is driving the sequential growth in retail book?
So let me say, madam. Actually, the RAM credit consists of retail, agriculture and MSME. Our RAM credit is growing at 12.26%. That contains the retail. Retail growth in the current quarter, it has shown 12.39%, year-on-year 23.54%. The reason -- main reason is, in agriculture, our gold loan portfolio, we have stopped lending gold loans in the metropolitan cities for agriculture purpose. Because when the loan is growing, the portfolio is growing, we want to take some conservative steps on that. But at the same time, we want to meet the requirements of the metropolitan customers. Metropolitan customers also wants to avail the gold loans, that's why we introduced the retail product in the gold loan retail with a little higher rate of interest and lower LTV. That product has received very well in the metropolitan.
We stopped lending the agriculture and this portfolio is growing very fast. That is also is helping that retail for growth growing at 23.54%. To that extent, a small dip is there in agriculture, that's the reason quarter-on-quarter agriculture you can see a negative growth of 4.86%. But MSME last quarter, sequentially, last quarter, it was almost stagnant, a little negative term. But this quarter, we could recoup that. And this quarter itself, we have grown 2.4%. Overall, if you see that retail has grown at 12.39% and MSME at 2.42% and all, these things have brought that 12.26% growth in the RAM credit.
Sure. So it's mainly the non-agri gold loan in urban cities that's driving the retail growth apart from...
No, madam. You see that the vehicle loan, this bank has never grown in the double-digit growth. Now we are growing almost near to that 16%. And the housing loan, we are continuing to improve our market share every year-on-year. This is a very one few banks, one among the few banks that their market share within the housing is increasing. There is a consistency. And in other bank, we don't buy any portfolio buyout and we hardly participate in the co-lending portfolio.
So the entire RAM business whatever we garnered, we garnered from our brick and mortar outlets. Branch-derived business. So this is a concrete business. It's not that only the gold loan portfolio what we introduced is the main cause, but it has riped us. Earlier, we used to grow at 14% or like that. But now the retail growth at 23%, definitely, that portfolio, that particular product is helping us.
Sure. And what are the yields in this book, the gold...
More than 9%.
Sorry?
More than 9%.
Okay. Versus what is it in the agri gold book?
It's 8.75% madam.
Okay. And secondly, on the margin front, so this quarter, we saw a dip in the margin, which is closer to your lower end of your guided range of 2.9% to 3%. So what will be the full year guidance on NIM and is there any change?
Madam, you can observe from the last -- past 3 years, generally, in the first quarter, our NIM will be comparatively lower because the NIM will be calculated based on the average business. The first quarter, our average business reflect higher. Gradually this comes down, that's why NIMs will go up. And in the second and third and fourth quarter, the NIMs will grow a little better, but the last time also I shared with you though, we have given the guidance at 2.90%, our NIM will be around 2.95% to 3%. And I feel that 2.95%, by the end of this year, we can expect that at 2.95%.
Sure. And just finally, a data keeping question. What will be your outstanding restructured book?
Our outstanding, RF1, RF2 everything together as on date originally it was is INR 12,000 crores. As on date it is INR 16,000 crores. Out of that INR 11,000 crores are standard assets. INR 4,900 crores odd, approximately INR 5,000 crores is under NPA.
Our next question is from the line of Mahrukh Adajania.
So just a couple of questions. Why has the SMA-0 [Technical Difficulty] in SMA-0?
SMA-0, you see that SMA-1 and 2, we are able to control and year-on-year or even sequentially, quarterly, we have shown better performance. The SMA-0 because of one account, it is a central public sector undertaking has slipped to SMA-0, where the exposure was on very higher side?
Huge, sir? It's INR 45 billion, it's INR 45 billion -- INR 4,500 crores?
INR 3,800 crores approximately, madam.
Okay. And which sector?
No, madam. Further details, it's -- it's Central PSU pertaining to Andhra Pradesh, that much I'm telling you that is enough to identify that.
Yes, of course, sir. And sir, the other thing is, there been change in investments norm, right? So with that, what has been the -- what have you taken to the shareholders' fund? And then what is the impact through the increasing yield, investment yield because of these changes?
Yes, madam. Our treasury in charge is there, Mukherjee sir, he will explain to you that. Actually, whatever -- because of this reclassification, I will explain to you. Afterwards, he will further clarify to you. Because of the new classification, there is no chance of shifting periodically from held to maturity to available for sale. Because of that the interest on investment has shown an improvement. But at the same time, the treasury yields have come down.
Okay. But what is the impact on yield on investment? Just because...
No. So -- the yield on investment, we have shown that it has gone up. The yield on investment, you see that earlier is 6.91%, now it is 6.94%, 3 basis points has increased.
Okay. So it has increased 3 basis points because of this?
Yes, madam.
Okay. And sir, my last question is on loan yield. Basically, why -- you did explain that why load yield [Technical Difficulty]. But can you clarify on the interest on NPLs? [Technical Difficulty] what was the recovery income in the fourth quarter through NII and what is it now?
No, actually, if you look at that NII compared to sequentially in the normal interest rates on the previous March quarter and this quarter, there is one accounting policy has changed as per the regulatory requirement. Earlier, we used to connect the penal interest whatever we collected, we used to count in that interest income. But now as per the regulatory directions from April 1 onwards, we are counting it in the other income. And the difference is approximately INR 150 crores to INR 160 crores.
And then you are asking about NPA. And generally, every quarter, it will be around INR 150 crores to INR 200 crores will be there. But compare to that March, we recovered a little more. So we got around INR 300 crores. But that -- this quarter, again, normally, we are at between the INR 150 crores to INR 200 crores.
The next question is from the line of Anand Dama.
Sir, basically, the yield on loans, which have contracted during the current quarter is what you have basically mainly said because of the change in the regulation related to penal interest?
One is that change in the regulatory treatment of the penal interest. The second one is other interest income is there, sir, last quarter sequentially, we got INR 2,000 crores. That is the interest on overnight deployment of the surplus funds. That has come down to INR 1,800 crores. So there is a INR 200 crore shortfall there.
Then, in that case, the next few quarters basically, we should expect the yields to again improve because these one-offs will be largely behind and on a quarter-on-quarter basis, we should see an improvement in yield, right?
Interest or advances, definitely, it will show some improvement but other interest income depends again depending on the availability of opportunities. When you have surplus money, you have to invest in the overnight or that's a call money market, that is it depends on the demand and supply.
Sir, secondly, on the SMA book, you said that there is one large PSU account based out of Andhra Pradesh. In another public sector banks, which is Union Bank had also shown a higher SMA book in the current quarter, but they have made a provision on these loans. Do we have a...
Let me say that -- let me confirm to you that, that this entire portion even if it dips in the September or even restructuring [Foreign Language] if even downgraded, the requirement of 15% provision, entire provision of INR 560 crores, we already provided in this quarter itself.
Okay. You have already done that?
Yes, 100%, we have already done requirement.
Two things I was looking at. One is like I could see the total -- I mean, the cost of funding going up, that is one thing I wanted to know what is the reason. And secondly, I also saw that the total loan book has gone down and it is also -- I mean the realization total interest income is also gone down. So what is happening in these 2 scenarios?
One is cost to income, sir. You see that from the March, it was actually more than 50%. Now it is 47%. Sequentially there is a reduction in the 3% in the cost-to-income ratio. One is that March and April, it was very high in the cost-to-income ratio wise because the staff cost was very high. Bipartite settlement was happened once in the 5 years and entire arrears have been paid in that December and the March quarter. Whatever the retirement benefits provisions has to be made, the entire thing as we have concluded in the March quarter, that's why the cost of staff expenses have been increased. But to that extent, to some extent, it has come down to INR 4,200 crores, now it is.
Cost of funding?
The cost of funding is deposits it is why it is increasing is the incremental deposit growth, whatever it is happening in the system, except the CASA, where the SB and current account, the remaining entire retail term deposits and bulk deposits, the bulk deposits are ranging between 7.5 to 7.8. And the retail term deposits anywhere in and around of 7%, it is there. So since the market demand is very high for the deposits, the cost of deposits, the average cost of incremental deposit is more than 7.5%. That is the increase cost foreseen as for that acquisition of the deposits, the cost of deposit is increasing from 5.5 to 5.70. It will continue for the next 1 or 2 quarters also because unless otherwise the liquidity in the system improves.
Again, as concerns are expressed by various actions, now the technology is matured, 20% of the savings are diverting to mutual funds and the equity side, that also is putting some pressure on the bank deposits. But since we have a central government sovereign guarantee, for rising deposits, we are not facing any difficulty. But only thing we are forced to pay higher price -- higher rate of interest for garnering that deposit. You can see that our deposits have grown in double digit. Almost more than 11%, we have grown. So rising the deposits, we don't have any issue. But whatever the incremental deposit we are rising, it is a costly affair for us. That's why our cost of deposit is increasing.
The yield on advances there is no reduction, sir. We have taken enough clear on that yield on advances. The 8.71 to 8.66 is merely because of reclassification of the penal interest income. Earlier we used to count in the interest income, now we have shifted it to as per the guidelines given by the regulator, we're reflecting in other income. So that has shown 6 basis points reduction. Beyond that nothing is there in the yield on advances, but I can say that yield on advances already reached peak.
Further improvement unless otherwise there is a repo rate increase, there is no chance for further increase in the yield on advances. Already whatever the rejig we can do in the corporate book, we completed that rejig with this quarter. Now all our advances corporate sector also is carrying our average yield on the corporate sector have now touched all time high of 8.21%. So the yield is now already reaching peak.
Okay. So can we expect the NIM to be possibly improving in the coming quarters?
Generally, compared first quarter, second, third, fourth together, when we reach to that fourth quarter, slight improvement means will be there, sir. So what we have given an earlier also I shared with when I'm sharing with the guidance of 2.90, we may end up at 2.95 by the end of this year.
The next question is from the line of Omkar.
Yes, sir. In this quarter, our agri exposure has reduced quite a lot. So any reason is this a cautious stance from your side? Or what is the reason for this?
Actually, our gold loan portfolio is a major contributor for agriculture portfolio, sir. Out of this INR 240,000 crores, INR 101,000 crores is core agriculture. And the remaining INR 100,000 crores whatever it is there, INR 138,000 crores or INR 139,000 crores, is from the gold loan book. But in the -- when the book is growing so fast, we have taken a calculated business decision that hear afterwards because the agriculture when you are classifying that gold loans in the agriculture, you are needed to maintain certain land records and all those things. To have a more and more cleaner portfolio, we have decided that in metropolitan cities, we stopped funding agriculture loans against gold.
But at the same time, there is a lot of potential in the metropolitan city also to raise the loans against the gold loans. That's why we introduced the retail product, personal loan secured by the gold loan and with a higher rate of interest, a little higher rate of interest. That has attracted attention of the metropolitan customers and that is giving a good business growth in the retail loan. But to that extent, we are -- there is a dent in the agriculture portfolio.
The next question is from the line of Dinesh K.
I have a question on slippages. So slippages are consistently around INR 3,000 crores. So there is no lift there. So I have question on short term and long run, what the company is doing to make it below INR 3,000 crores. What was the rectification in our system going on?
See, when you are having near to INR 10 lakh crores asset, in a year, INR 12,000 crores is I feel that it's reasonably a banking practice. But it doesn't mean that we are complacent on that, we have reached to our required goal and we don't do further fine-tuning that. If you look at there, there actually this quarter, we have done well in this quarter and last quarter in the RAM sector and all. But there are in existing NPAs, if any additional debits to come that is showing some INR 300 crores to INR 350 crores additional slippages on that. But otherwise, our core -- whatever the fresh slippages we are able to control below INR 3,000 crores.
But suddenly bringing to INR 3,000 crores to INR 2,000 crores, I don't think that will be easily practically possible, but definitely quarter-on-quarter, maybe INR 100 crore or INR 200 crore or INR 50 crores, further reduction, we'll keep on trying that. We are confident of reaching that.
The next question is from the line of Rahil.
Just a question on the guidance you had shared earlier of FY '25. So just quickly, are we on track when you said advances will grow at 10%? ROA will be 1% [ with cost ] at 1.1%. So if you could just share your outlook, is there any revision there, please?
No, we are not revising any of these guidelines. I don't feel that it is difficult to reach all these guidelines except in the CASA, but still CASA also, we want to try for the 33%, whatever it is, we have given the guidance. But we have given the guidance of business growth at 10%. First quarter, we have grown at 11%. Our advances growth, we have given 10%, we almost reached the 10% even after shedding INR 22,500 crores in the first quarter itself. And I am very much confident that we will grow beyond the 11% to 12% growth in the next 3 quarters.
And NIM, it's 2.9, we have given. We are already in the first quarter itself, we are able to show that 2.9 and for the 3 quarters, there will be a further slight improvement in that only. There won't be any deterioration. Gross NPA, we have given a guidelines of 3.5. There is a further reduction. We have come up to 4.14. Net NPA also, we have given a guidance of 1.10. We already have come down to 1.24. Slippage ratio, we want to maintain at 1.3, that's almost we are able to maintain it. Credit cost through demanding return on equity, earning per share, return on average assets, all these things already we surpassed. Whatever the guidelines we have given for the year-end, in the first quarter itself credit cost, return on equity, earning per share, return on average assets, we already surpassed those things.
The next question is from the line of Suraj Das.
Just one question. In terms of the gold loan book that you were talking about, what could be the quantum that is sitting in the retail?
Now it is almost INR 19,000 crores is there around.
Okay. And sir, the rest of the book, I mean, what would be the other segment in retail?
Mostly it's INR 19,000 crores that is there. Now it is as on date, it's INR 155,000 crores is there, INR 155,000 crores total. So if you remove that, maybe hardly INR 1,000 crores is in the MSME remaining is all in the agriculture. Retail gold loan is INR 19,000 crores. But if you remove the INR 19,000 crores out of INR 175,000 crores retail, so INR 96,000 crores is in the housing loan, INR 17,000 crores in the vehicle loan, INR 16,000 crores in the educational loan. The remaining is personal loans and mortgage loans and all.
The next question is from the line of Jai Mundhra.
Sir, if you look at Slide 22, wherein we give the yield on advances, I believe the numbers are cumulative number, right? So for March '24, 8.71% yield is for the 12 months. And the number...
Tell me, sir. Tell me.
No, no. So I wanted to check, sir, if this number of March '24, is it the cumulative number or for the quarter? Because if it is a cumulative number that would mean that the Q-o-Q decline in the yield on advances is much, much sharper, right? Because we started...
What we have given in the March '24, 8.7%, that particular quarter and along with that cumulative -- our CFO will explain to you further.
Jai, that what you asked this first quarter is not cumulative. It is a stand-alone quarter. What we gave for March was the cumulative of 4 quarters. So what you are anticipating...
No, no, so it is complete?
No, no, what you asked that if this is taking into consideration that March, then it is a sharp fall. No, it is not considering the March. It's stand-alone April, May, June yield.
Okay. So this is only...
Yes. Now whatever we will show every quarter will be cumulative for up to, say, next quarter, it will be from April to September, December, it will be April to December. So -- but this, what we showed now the yield is stand-alone April to June.
So sir, I was checking, is this 8.71% is for the quarter, right?
Yes, this is for the quarter. Since -- once we write cumulative, cumulative means it is for one quarter. Now I think -- yes, I have answered your question.
Secondly, sir, if you can provide the breakup of the slippages in the quarter?
You can note down, sir. That's in agriculture is INR 900 crores. MSME is INR 1,220 crores. Retail is INR 500 crores. The corporate is including existing NPAs [Foreign Language] increase, the total, it is around INR 600 crores.
Okay. And sir, lastly, if you can provide the breakup of the loan book by benchmark, how much is EBLR, how much is NPLR and how much is REPO by rupees crore?
Out of the total book, 51% is MCLR sir. 38% is RLLR, the REPO Linked Lending Rate. The remaining is like a loan against deposit, staff loans and all.
Okay. And sir, lastly, you mentioned that we have now a very strong CET-1. A, what was the impact of the investment from the guidelines on CET-1?
What the impact on the -- because of reclassification -- the re-accounting procedure of -- new accounting procedure of investment, sir?
If that has an impact on CET-1?
Sir, it is around INR 1,400 crores that which got added. And of which INR 1,100 crores for -- is on the reserves and INR 300 crore has gone to HTM.
Okay. And lastly sir, if you have any capital raising plan? Because if you can clarify, do we have a Board approval or we...
Sir, actually CET-1 is very comfortable. It is above 12%. I don't think we need to go to the market for core capital. But Tier 1 and Tier 2, AT1 bonds and Tier 2 bonds, the Board is already permitted the management to go to the market to the extent of INR 8,500 crores to raise. Out of that INR 4,000 crores is AT1 bonds and INR 4,500 crores is Tier 2 bonds. That we will come to the market depending on the favorable conditions of the -- we are very much a price sensitive. So we look forward for that whenever we get a better opportunity, better pricing, then we'll go to the market and raise that. And again, I want to tell you that we have the plans -- no, just one minute. Because we have the plans to disinvestment in our subsidiaries, one of that plan, in the Canara Robeco Mutual Fund, it may come to the disinvestment in the fourth quarter of this financial year that also may support our capital CET-1, sir.
The next question is from the line of Ashok Jain.
Congratulations for excellent results. And I have few questions. One is that our CASA has come down. If I compare from March '24 to June '24, CASA has come down 2.77%, whereas you were telling in the last meeting that you are making all the efforts to improving.
Let me clarify this question, sir, first. The savings bank, whatever our initiatives, it has started giving the results and stayed savings on, you can see the accumulation and creation of the deposit from year-on-year, June to June, if you see that absolute numbers, INR 12,000 crores, there is an improvement in the SB individual itself. Actually, the SB individuals, the incremental growth is almost INR 18,000 crores. It's more than what it is reflecting there. But in SB, there are institutional deposits, which gradually is going out of the system because of Central Government that new system of -- they're keeping most of these funds because of that latest softwares that they're keeping with the Reserve Bank of India.
So central government funds are slowly going out of this banking system, but that is being compensated with the SB individual accumulation savings. But overall, it is reflected absolute numbers. So it is a INR 12,000 crores absolute numbers in year-on-year. But the current account, the March figure, when you see that sequentially, March figure, in the March month, we have -- we are -- one central government department, we are dealing with that. We are a banker for them. We got funds of around INR 15,000 crores in the current account. And 1st April [Foreign Language] that amount has -- the first week of April, it has converted into bulk deposit. So to that extent the dent is reflecting it, but it is a INR 15,000 crores, it is moved from current account to there. But the reduction, what it is appearing is only INR 11,000 crores, if you see that.
Can we explain it -- can you show it to market because it is giving wrong signal to the market. Maybe the breakup...
We'll try to explain to them, sir. There's no problem. If any correspondence is there, we will try to tell them that.
Okay. Yes, sir, second question is that, recently you have come with infrastructure bond. So what is your plan? I mean, you want to come with more amount and how will it impact to our bottom line?
No, sir. Actually Board has permitted for this year to take the raise INR 10,000 crores, which initially we thought that we'll raise INR 5,000 crores and INR 5,000 crores. By seeing the overwhelming response of our issue, whatever the green shoe option is there, entire INR 10,000 crores, we have taken in single stroke itself. For this current financial year, we have whatever the Board has permitted, we already raised, sir. Because whatever we are raising against the infrastructure bonds, it has to be invested or lent only towards the infrastructure lending.
Of course, we have enough cushion in our book. But we already lent enough, more than what we have raised from the market, that much exposures are there. But still, we will see in the second half if the Board permits for us, we will think about that. It depends on the market availability of the liquidity, again, the demand for the infrastructure bonds. If suppose my liquidity is improved, my cost of funds and the deposits have come down, then I may not think about it. Since currently, the incremental deposit cost is very high, we have gone to that infrastructure bonds to compensate or to use the other resources at a lower rate of interest.
The next question is from the line of Piran Engineer.
Congrats on the quarter. Just wanted to follow up on one question -- on the comment you made on savings bank deposits. So what percentage of our deposits come from government funds, government or other such non-retail?
I'll tell you that in the savings bank itself, out of the INR 332,000 crores, it's only approximately INR 48,000 crores to INR 50,000 crores is from the institutional deposit. These INR 48,000 crores to INR 52,000 crores also is not entirely from the government deposits. This institutional deposits contains the NGOs, pilgrim centers, colleges, universities, everything will be there. But I see that the government deposits may be around INR 20,000 crores, INR 22,000 crores, that is the range we might be having that. So that fluctuation will be there. Whenever the fluctuation is there because of our -- some initiatives and new products that is being compensated with individual savings bank. Our focus now is in individual savings banks, sir.
Okay. Okay. Sir, that was very useful. And sir, secondly, this might be a bit early. But under Ind AS accounting, will you be allowed to reclassify your NPL provisions into standard asset provisions?
I'll ask my CFO to answer to you, sir.
But as you know that Ind AS provision is also still not crystallized. But there is nothing, which suggests that NPL will be allowed to be classified as standard asset. The only green shoot that is that may be available there is, in case of NPL or especially doubtful and loss assets, in spite of having good security, we are making 100% provision. But if against those loss or doubtful D3 assets where there are good securities that may allow us to provide less. Only that is expected, but that will only be clear when the full guidelines come.
No, sir, actually, I meant right now, your provision is around INR 30,000 crores on NPA. Can you say reduce to 25 and move 5,000 to standard assets. Will the auditors allow it? Is it allowed under the new accounting system?
No. See, especially that new -- the entire details of the new accounting system has not come. But as you said in NPL specially lost doubtful, we are making 100% provision irrespective of the liability. In case, I said, in relaxation, it may get some green shoot, but that will be more than compensated by standard asset provision where I have to make much more than 0.4%, which we are making. But having said that, the bank is in a very comfortable position if any provision that we have to make in under Ind AS. Even considering that, although as you know, what RBI said is to be covered over a period of 5 years, even if it is hypothetically needs to be provided in a 1 year, all our capital ratio should be in a comfortable position. This much we can say.
The next question is from the line of Rakesh Kumar.
Sir, just one question. Sir, with respect to this other interest income of INR 781 crores, I don't know if you had responded to this query. So if you can clarify what is the corresponding balance sheet number where we are getting this interest income? Or maybe if you can explain like what is the source of this number? So year-on-year, there is a large jump in this number, so.
Sir, actually, these are all the -- that's what actually earlier also I clarified. When you have surplus money in your system, when the market there is a liquidity crunch is there, the surplus money can be used effectively in the market by deploying in the overnight or call money or anything. When you are deploying that, you are entitled for some interest. Because we have an excess SLR of almost 8%, and we have in our system also last 4 months, we are having a surplus in our liquidity. This liquidity, we are using effectively by lending wherever it is required, depending on the demand from the other institutes. That is the major contributor. The minor contributor is from some of the tax deducted, income tax, whatever it is there, some interest on that tax deducted. This refunds also will be there.
Okay. So -- but just if we -- sir, like if we take this complete return, what we have from cash balances other than CRR, so why this number is so high, sir? Like if I take the interest income or the cash balances and this interest income, like what you're saying on the liquidity that surplus liquidity that we have, this number is very, very high sir as compared to any other PSU bank. .
But in PSU bank, liquidity is there -- is not there in the top 5 banks. Only we are having comfort in that way and we are deploying that. The another thing is what you see from -- it is year-on-year, if you see that is very high. But sequentially, it has come down, no. You are not seeing that? Sequentially that other interest income has come down from INR 2,000 crores to INR 1,800 crores.
So for the full year, sir, if you can help us that how much -- how would this number look like for the full year?
Rakesh, if you see, this is a number because that includes interest from interest rate swaps, [ SD, ] RIDF, et cetera, including some, as sir said, on income tax refund. These are not steady income sources. So this can vary based on market conditions. So it is very difficult to say whether what will be the figure on a consistent basis. But if you see there is some sort of consistency, which we have maintained over the last...
For the last 3, 4 quarters, we are maintaining that consistency. If you see that we last September onwards, I remember that September, December and March now there is a consistency. It is around INR 1,500 crores to INR 2,000 crores. And we are able to maintain that consistency.
Okay. And secondly, sir, on the non-SLR side, so the total non-SLR if you look at in the Slide #26 has come from -- there is a one line item, which is Others. So there's a INR 10,000 crore increase in that number, which is reflecting the increase in the total non-SLR also. So what is that number, sir, which is sitting into the Others?
It is investment in mutual fund. That is around INR 7,500 crores roughly.
So in the March quarter that number...
No, no. It was very small. So because we had some surplus funds, so we deposited in this mutual fund and CD. CD is around INR 3,000 crores. So if you add that, you will get the number.
And it was a very short -- it is a short duration as we speak today, that amount is not there in Others. So it was a short-term investment that we liquid certain amount...
See, whenever you get an opportunity to earn higher yields, these are all the windows available to the banks and they use this for earning a higher returns. Because the balance sheets are based on the particular specific date, that particular date the investment may be outstanding. But it's not that once that is outstanding, it will be there in every quarter that much.
Due to time constraints, that would be the last question for the day. We hand it over to MD, sir, for your closing remarks.
Thank you. Thank you very much, sir. Whatever we have given the guidance, we will try to do much better than that. And the first -- actually, the first quarter itself is what we are doing, that consistency, in our performance our main crust area is consistency. There should not be any knee jerks in your performance, whether it's the bottom line or the top line. The same, the corporate call what we want to show that the steady growth in all the business parameters without affecting the bottom line, that will continue, sir, and we will continue to perform. Thank you. Thank you, one and all.
Thank you. We conclude today's meeting. You can all disconnect.