Indian Bank
NSE:INDIANB
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Indian Bank
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Good evening, and welcome, everyone, to Indian Bank's third quarter post-results con call. We have with us today Mr. S. L. Jain, MD and CEO of Indian Bank. Along with him, we have Mr. Imran Siddiqui, Executive Director; Mr. Ashwani Kumar, Executive Director; and Mr. Mahesh Kumar Bajaj, who has joined as an ED recently in the bank.
Sir, first, I would request you to briefly update us on the results. What is the take for the future, particularly in terms of growth, margins, asset quality? More so given the current scenario where we have seen that there is some kind of macro slowdown which is coming. On the deposit front, banks are, to some extent, struggling. So your specific comments on those areas will be really welcome.
Good evening. Good evening. Welcome to all analysts and investors in the post-result Q3 con call. As far as business of the bank is concerned, our business has grown by 9%, on which deposit has grown by 6% and advances have grown by 13%. Under deposit, our saving deposit has grown by 5%, and the term deposit has grown by 8%. .
Under the credit, our RAM sector has grown by 12%. Under the RAM, retail has grown by 15%. Under retail, housing loan has grown by 12%, jewel loan has grown by 23%, auto loan has grown by 27%, personal loans has grown by 35%. Again, agriculture growth is 15%. 53% of our agriculture is crop loan, which is growing at 17%. Investment credit is 54%, agri allied 11%, and SSG has grown 56%.
In MSME, we have grown by 6%, micro 16%, small 4% and medium 14%. You must be seeing them from last 4, 5 quarters, we are growing between 13% to 15% in the RAM segment and strengthening over 61%, 62% RAM's share. Corporate has grown by 7%. But if you see the write-off of INR 5,000, 6,000 is, again, a 13%, 14% of our gross. So we are actually growing 13%, 14% in the credit side.
Coming to the business and the profitability side, our operating profit has grown by 24%, and operating profit has grown on the strength of NII growth, which is 25%. In addition to NII growth, there is a growth in noninterest income as well. So bad debt recovery has grown by 53%. Fee income has grown by 6%. If you see in 9 months, it is around 18%. Processing fees has grown by 20%; cross-selling 81%; and ForEx is just double, 99%. PSLC, Q-o-Q, it is coming down. But if you see in 9 months, we have grown there because what happened in the PSLC, the pricing is better in the first quarter against the third quarter. So we have frontloaded that. And in 9 months, our PSLC commission is better than this.
As far as NPAs are concerned, we -- our gross NPA has come down from 7.30% to 6.53% and net NPA has come down from 1.50% to 1%. And provision coverage ratios have improved to 93.9%. Capital adequacy slightly down, 15.74%, reason being that we are not adding the 9 months profit, whereas the business is growing. If I add the 9 months profit, it is 119 bps higher than this, so it is around that around 17% of our numbers. So capital-wise, we are adequately capitalized. Net NPA has come down to 1%. Provision coverage has improved to 93.5% or close to 94%. SMAs are 0.5 -- against 0.5%, 0.77%. So in terms of numbers, it is around INR 1,100 crores. So there are 2, 3 accounts where we have received the money subsequent to that debt. Otherwise, the collection efficiencies is 95%. We are maintaining the collection efficiency. Slightly, MSME too, is higher.
One more reason is that what happened RBI has increased the repo rates. That EMI has increased, but we -- there are 2 options. One is to increase the EMI, second is to increase the repayment period. We are going for increase in EMI and around -- in retail side around 90% of the people either we have taken a revised standing instructions or the NACH mandate and that way, we are, again, improving. As far as slippages is concerned, this is the second quarter, again, the slippage is INR 1,313 crores whereas the recovery is INR 2,600 crores, just double. Last quarter, our slippage was INR 2,400 crores and recovery was INR 3,255 crores. At the beginning of the year, we said that we will recover INR 8,000 crores and pro rata is INR 2,000 crores per quarter. So against INR 6,000 crores of 3 quarters, we are at INR 6,500 crores, so close to 110% of our recovery, resulting in reduction of gross and net NPA.
So the slippage of INR 1,192 crores, 40% of this slippage is from the restructuring book that is around INR 418 crores. What we have done this time, INR 634 crore provision we have created in standard asset for to make the restructured book 15% is against the minimum regulatory requirement of 10% to strengthen our balance sheet. As far as our margins are concerned, our margin has improved and it is improving quarter-on-quarter. It has moved to 3.74%. In December, our ROA has also improved from 0.71% to 0.80%. Our ROE has improved from 13.83% to 15.21%. Cost-to-income ratio is coming down from 44% to 43%.
So you see in all our parameters, we are having a better performance vis-a-vis the last quarter as well as the last year from business front, from the asset quality front, from the capital front, from the stress front, from the balance sheet strengthening side. In addition to that, we have made a INR 75 crores provision for wage revision for 2 months. We have also made INR 105 crores provision for PLI, production-linked incentives, which we'll do on getting incremental in operating profit. That's the way we are moving in increase in operating profit, naturally you're to pay the PLI. So we have made a provision of PLI on this December quarter earlier, we have made the provision in the March quarter. So we have front-loaded that also. So this is all about profitability, business, asset quality, capital, collection efficiency, provisioning.
And now I'm open for question and answers.
Before we take up the questions. I had put up a question about the deposit growth being far, far lower at about just 6% for us, and that is true for the industry as well. So is basically that's more of a strategy that you want to consume the internal liquidity first and then raise the deposit rates and mobilize deposits? Or is it more to do with that every bank is selling and so we are also selling on the deposit front?
The 6% is on the current year. You see the deposit growth of our bank in the last year. Our deposit growth was 10%. All in all, all people were having 7%, 8%. So we have, in fact, built the deposit in the last year itself. On the incremental part, it is 6%. Of course, you rightly said that banks are struggling for deposit. Basically, we too are mobilizing deposits. And in the last 9 months, we have opened around 27, 28 lakhs new account, we have started up -- around 45% of the accounts are being opened through tablets. When you are opening an account through tablet, naturally you are going to the institutions office, and you are getting quality customers. We are focusing on educational institutions or collages. We are around more than 1,600 such fee collection in collages account. We are focusing on that.
We are focusing on temples. We are for focusing on institutions. We are focusing on RERA and various sectors, where the deposits are -- more because the small deposit will not be able to achieve major number. We are too working on an institutional account. We are too working on a SMA account or a CNA account. So all areas. Virtually, we're opening the account, we too have created a deposit barroom or office at our general offices. In the morning, evening, we are having campus. The issue is very simple, we want to have deposit at a lower rate of interest, which we are getting at 2.9% or 3%. Whereas you know in the short-term market, the interest rates for the bank deposit is around 7.5% to 8% in between.
So the interest rate -- so our endeavor is to get a better deposit. And that way, we will be able to contain our cost. But going forward, this is a challenge, and we are fully geared up. For that, we have created a team. We have created a government relationship vertical at various places because we are very strong in UP. So Lucknow, we are in Tamilnadu, Chennai, we are in Bangalore, Kolkata, Chandigarh, various places we too are creating to get a bulk of these accounts. We know this is a challenge because future is entirely, entirely dependent on the deposit accretion part.
As far as the margin part, okay, let me answer your question first, right? So second question, you talked about the margins. So you know our MCLR-based loans is 56% and the remaining 7%, 8% is fixed and otherwise repo-linked advances. So what happens this -- with the increase in repo, the repo has been repriced, right? But the deposits, of course -- earlier, we used to take 1-year deposit at 5.5%. Now we are taking at a 6.5% or the special deposit at a 7%. So with the repricing of the deposit, naturally the cost will increase. But the way our balance sheet is 56% MCLR, you see. Here in the term deposit, also 40%, CASA 60% is a term deposit where repricing will come. Here in MCLR also repricing will come.
So the issue is only that in MCLR, we will be able to, say, increase by 1.2%, 1.3%. Here, 1.4%, 1.5%, some gaps, but this can be managed with the repricing or with the increased business growth or a product mix. These are the 3, 4 strategies we will have to protect our margins.
The next question was on asset quality. I already clarified you that our asset quality is getting better and better and better. And that one is a slowdown -- macro slowdown you asked about that. Our bank is a retail bank. You see 62%, continuously, we are growing in the retail side and retail gold loan or housing loan that use demand for housing. Now all the people are back to the offices and when you see the housing, even the housing -- houses are not available, virtually, the auto loans. So the growth is happening in our segment, and we are growing slowly, slowly in that. In corporate, we continue to remain choosy because in the bond market, the spread has increased, whereas the credit market spread has not increased. So there's no point of taking money at the bulk deposit and giving it a lower rate where the margins are not adequate or not proper. So we remain selective in this quarter as well.
Right. Sir, I think I -- bulk deposit, of course, if we have a margin, we will take. If we'll not have a margin, naturally, we would like to contain our cost and protect our margin and profitability.
Yes. That's very good to hear, sir, that you are consuming internal liquidity and also focusing on margins rather than just the growth.
And our LCR is 130, 140 bps.
We'll take first question from Mr. Ajmera [Operator Instructions]
Compliment to you, sir, for a very good set of numbers and all-round growth as you narrated in your address also just now and the figures also speak. So there is nothing much as far as your overall growth is concerned, and you already answered about the corporate credit growth and the retail. I've got a few information point and some specific information. One is, sir, about the NARCL and now that the process has started and four accounts with INR 485 crores was reported by you last time, and nine accounts were expected for INR 3,346 crores. So where do we stand on the NARCL front? And what is the status going to be in this quarter, January-March quarter, sir?
I'm telling you, so there are actually out of 43 accounts identified by the NARCL, 20 account pertains to us. And the aggregate book balance of this is around INR 5,200 crores.
Out of this 20 accounts, eight accounts have balance of INR 3,300 crores, we have received the offer, right? Out of this eight accounts, four accounts -- actually amount is more or less crystalized, four is under the Swiss Challenge and all this, right? So we are expecting that these four accounts, we should get money in the current quarter or in the beginning of the next quarter. Remaining nine accounts where the offer is likely to recede because the due diligence and everything has happened. So that nine account is around INR 900 crores. And three accounts where -- still the due diligence is in progress that is 1,000 accounts. So in sum and substance, I can tell you that the first eight accounts, out of this, four account is more or less finalized where we should be able to get money. And for account where the Swiss Challenge and everything will happen may take time.
Sir, this is the figure which is coming out now and especially in the some cases of Swiss Challenge. Do you think that we are going to get more than what we were expecting basically, originally?
In some of the account what happens -- in some of the accounts, even the bids are received even above the NARCL, right? So that is a process of bidding. So if you are getting a good price, naturally, we'll go with that price. And you see, we -- as far as our bank's bottom line is concerned, we are fully provided. But fact remains, we are interested in much higher and higher amount. And that always security -- present value of the securities, what is the liquidation values. There are a number of considerations prior to deciding that.
Point well taken, sir. There was an ECLGS account. What is the NPA number this quarter as against INR 363 crores you reported last time? Is it increased or it is under control?
No, no. I'm telling you we have given ECLGS close to INR 11,000 crores, right? And the current balance is around 7,700. So around 70% amount is -- we are having around INR 439 crores ECLGS, NPA INR 430 crores or so. But this is -- INR 430 crores is, of course, we will fully realize, but we have made provisions.
This personal loan growth, you are 35% and SSG 56%. On personal loan, what is the -- is it the same corporate, which are having accounts with their staff loans? Or what kind of -- how this growth is coming and from where is it coming, 35%, 40% growth in personal loan portfolio?
Yes, let me tell you. What happens, sir, you might have heard that we have come out with our digital lending products, right? So what we have done, first, we have started preapproved personal loan to salaried class, right? So that is around 4, 5, 6 months. Then we have increased it to professional and self-employed then we have increased this to our housing loan customer. Then we have increased to our auto loan customers. And I'm telling you the delinquencies, virtually nil NPA, I think 5% or 6% because based on our CIBIL score, based on our internal benchmark, we are giving this preapproved personal loans and the product. And with the three clicks, you can get this money credited in your account. So here, what happens, the margins are also there, delinquency is not there, and we know the customers. So we -- these are all ETB customers. Now based on the experience, we'll move to the NTP customer as well.
What about the credit cost, sir? Credit cost this quarter?
I'm telling you hardly any NPA, hardly. Maybe one or two accounts.
Two, three accounts only.
Okay. Okay. Okay. So our credit cost was 2% in the first quarter and the second quarter. Now, it is 1.41% in the third quarter. Average is 1.80%. Now you see my net NPA has come down 1%. So my credit cost has substantially come down in the next quarter.
Yes, because that is what is actually -- where you were a little lacking actually because the accretive cost, but now it is coming down. So it can give you a good picture because your NPA is also under control.
Actually, what is the risk? Risk is from two sides, sir. One is the SMA, second one is the restructuring book. Restructuring, we have made 15% provision this time, INR 634 crores of provisions we have made in the quarter. And in the restructure book, our collection efficiency is 90%. Even in -- yes, yes.
Can you give some color on the treasury operations, sir, now where things are stabilizing?
What we have done in treasury sir, actually two, three things we have done. One is that you see some of the money which was in a treasury bill, also we have shifted around INR 3,000 crores to center or state government securities or a bond, right?
Yes, sir.
So that way, at the same time, we are having treasury profit as well in the current quarter. And the modified duration of AFS and HFT is 2-point-something -- 2.2 and that PV01 around 8.
And the yield on investment...
And yield on investment is improving and what we are doing, sir, this is [indiscernible] from September quarter. What we are doing, sir, that 10-year benchmark, if it is [ 7.35-plus ] then what we are buying or if it is less than that we are selling. This is how we are making some money in there.
Trading profit of INR 130-odd crores we got in the last quarter. Besides the improvement in yield by 13 bps.
That's great, sir. So sir, on the whole, everything looks very fine.
[indiscernible] Mahrukh.
Heartiest congratulations. So my first question, Anand already touched upon it, but I would just like to again have your views on this. So our margins, domestic margins expanded 54 basis points sequentially and your EBLR is not much higher than -- it is a good proportion, but it's not necessarily higher. So what really drove the margin expansion in domestic NIMs if our EBLR proportion is quite similar to other banks? And that's my first question. And then what is the outlook in fourth quarter? Do they come off from here? And how do they behave in FY'24?
Madam, there are two issues here. Of course, quarter-on-quarter, it is expansion of 54 bps. What you see then in the last quarter, what happened, there was an interest reversal of INR 400-odd crores, resulting reduction in the margin. So that is against our interest reversal of around INR 450 crores in the last quarter, this quarter is INR 140 crores. That is one factor of this. And second one is that we have increased our MCLR also. And so therefore, the margin has expanded. And in addition to that, business has also grown, business mix and all.
Outlook is that, madam, what is our -- last year margin is 2.91%, right? We have told that we will protect 3%, then 3.1%, 3.2%, 3.74%. And we think that the next quarter also because of the repo which was increased on 8th of December, is passed on only for 23 days now and 3 months benefit we will get. And then the MCLR, too, we have increased and the 50%, so this benefit we should get in the next quarter as well partially.
Got it. So next quarter, we are good on margins. And then in FY'24, how do margins hold?
Actually, point is that how the margin will be improving. Two, three points, there is a function of two, three things. One is your product mix. What kind of product mix you are having, first, right? What happens madam, there is retail credit, there is a wholesale credit, right? So if you do more wholesale credit, naturally your margin will be less because you will be in AAA, AA where the interest rates are lower than this. So this is -- now slowly, slowly this corporate credit interest rate is also improving. So if we would have given 3 months or 6 months earlier and for 1 year that we could have continued the same interest rate. So now we remained selective and we are not grown too big on this. So naturally, with the product mix, also our interest rate increases.
And you see one more thing. When your CASA is 40%, 60% in term liability and 56% is MCLR, both the things are matching. And with the increasing interest rate, with the increasing product margin, we -- of course, there will not be that 3.7% margin. But we should be able to protect our margin slightly better than historically.
Got it, sir. Sir, what -- where do you see deposit and loan growth in FY'24? Anyway, sir, your domestic CD ratio is 73%. So you would still have some room there, right?
Domestic credit growth depends on a number of factors. One factor is, let us wait for the budget, what kind of infrastructure push government is giving to the infrastructure sector, right? What kind of public sectors are making investments in -- other investment, road, other sectors as well. But for us, I'm telling you, for us, we will continue to grow 13%, 14% because we are retail bank. We are not a bank, which is having a 55% or 60% corporate and entirely dependent on corporate. We have 62% retail. So -- and a stable bank, and a stable bank will continue to grow.
Okay, sir. Sir, and what is this PLI provision you talked about? What is that? Why do you need that?
Madam,, what happens is for the existing agreement with the union and associations when you are having a growth in operating profit of 15%, you are required to give 15 days PLI extra, extra salary. If your profit is -- operating profit growth is between 10% to 15%, you have to give 10 days PLI. If your operating growth is more than 5% to 10%, you are required to give 5 days PLI. And that is PLI you have to pay on declaration of 31st March results.
Got it. Sorry sir, so operating of 15 and above is how much PLI you said? Sorry, sir.
If our operating profit will grow 15% -- more than 15%, we are required to give 15 days PLI. It's profit-linked incentive to our employees. This is applicable for all banks, not to me alone.
Got it. And sir, your wage provision is for 2 months this quarter, right?
Right. Because the settlement is due from 1st November.
Next question is from Mona.
So firstly, on the MCLR book of 56%, how much is linked to 1-year and 6-month MCLR, if you could share that data?
Major part should be with 1-year MCLR, madam, major part of that. Of late what we started doing that with -- started linking with the 3 months because we are in increasing interest scenario, right? So [indiscernible] rates suppose out of 56%, 40% is on a 1-year MCLR. So this will come for repricing. What happens in last 6 months, we moved ourselves from 1 month to the 3 months or 6 months or a 1 month because in a increasing interest scenario, there is no point of giving 1 month MCLR. But the earlier one will come for repricing and we'll take [indiscernible].
Sure. And on the personal loan book, PL book, what are the yields you have?
We are having around 10% of yield.
10.5% to 11%.
Okay. And I missed the wage revision number, how much we have provided this quarter?
Around INR 75 crores -- INR 74.90 crores, so INR 75 crores, madam.
So the balance sheet data is not available this quarter in the PPT. So if you could share the borrowing investment and cash quantum at the end of quarter.
That our CFO will tell, madam, because we are required to submit on a half yearly basis. That's why may not be available yet. That is as per the regulatory guidelines. But number, we will give, no problem. Separately, we'll [indiscernible], madam.
And on the agri book, what is the share of gold loans within that?
In agri, it's a 53%, madam. And 53% -- and that part is growing 17%. And we -- actually, what we have done, we have identified 650 branches for gold. Wherever we have placed the gold launch champions and now with the digital gold loan renewal, right, the Karatmeter for doubly checking the quality of gold. So we are focusing on that.
Sure. And just finally, on the restructured book, if I see you've given a INR 15,000 crores total restructured outstanding. Is this inclusive of the MSME restructuring of INR 2,800 crores in the notes to accounts or exclusive of that?
These are basically RP1 and RP2 restructuring and major part is already a part of that also. There's overlapping there. What I told, madam, this number was INR 16,000 crores, right? So as on date, it is INR 15,200 crores, right? INR 400 crores has been slipped. So it means 96% of our book is behaving good because only INR 300 crores, INR 400 crores has virtually slipped. But as a proactive measure, we have made additional provision of INR 600 crores in the quarter.
Right. So I get that. I'm just trying to understand what would be the total outstanding book ex of any overlaps between MSME and the COVID provisioning 1 and 2? Would it be closer to INR 17,000 crores or would be around INR 15,000 crores?
Actually, this is INR 15,200 crores, that is INR 2,800 crores. So if you take a 50%, 50% [Foreign Language] maybe INR 1,000 crores more -- INR 1,500 crores more, not beyond that.
Next question, we have from Dixit.
Just three questions. Firstly, you mentioned that we'll be growing at 13%, 14% on the advances side. Can you just give us some target on the deposit side? How do you see the growth? My second question is on the credit cost side. So as you have mentioned that SMA1 and 2 is quite low. And now our net NPA is just INR 4,000 crores. So how do you see provisions in the next year, not in the Q4, but FY'24. And my last question is on the tax rate. So from FY '24, will we come to the normal tax rate or still we will not come?
No, your one point is that your credit cost, right? INR 4,000 crores. So naturally going forward, credit crores will be substantially lower than what is at present, right? At present, it is 1.8%, right? This is sure, virtually, because you can't have a great cost more than you had net NPA. And net NPA itself is 1%. So this is sure, sir.
Now second point you talked about is the credit growth vis-a-vis deposit growth, right?
Yes.
So we will be taking the deposit based on the credit growth and our focus will always be on maintaining 40%, 41% CASA. So deposit growth will be based on the need only. Otherwise, there is no point of taking money at a bulk rate, 7%, 8% and not having proper margin because we have to add the CRR and the [indiscernible] cost thereon. So we will take the deposit base on the credit need.
The third point you talked about tax rate. So next year will be done on a normal tax rate, but the benefit which was available partially in the current year will be over in the current year.
The next question we have from [indiscernible].
Mr. Jain. I think you just answered the questions I had for you. Thank you.
Next question we have from [ Jai ].
I have a couple of questions. First, sir, your note number 17, June 7 circular, right, which still has some INR 14,000 crores of NPA and where we have -- if I read it correct the PCR seems to be less than 10%, at around INR 1,360 crores. So what does this mean, sir? Does this mean that as and when -- I mean, you may have to require more provisioning on this pool of assets going forward?
No, no. Note number 17 is very clear, sir. Amount of loan will be classified as NPA is INR 14,731 crores. Amount of loan classified as NPA is INR 14,731 crores. Nothing 100% has been classified as NPA.
No, they are classified as NPA, but it's -- the other column says that the provisions -- additional provision required is INR 1,360, which you have already done. But what -- I mean the total provisions for this pool of assets would be substantially higher, right? It is not...
No, no, you see there are two things, two things. What is the 7th June circular? This talks about that if you have not found a resolution plan within 6 months, then you have to refer it to the NCLT. And if you've not referred to the NCLT, you are required to make a higher provision of 20% or 30%, right? This is the circular, sir. Now, where I stand, my provision coverage is 94%. My provision other than the PWA is 85%. And this is a provision over and about which we have fully provided.
Over and above.
So now you see that, no issue here.
And secondly, on your slippages, sir, I mean, this quarter slippages have declined substantially. I think agri slippages have come down because your cycle is slightly different from other banks. How should we look at the slippages in a normalized situation, let's say, ex of agri or maybe in near term on full year '24? So your initial guidance was slightly higher, we have done better than that. So how should we look at slippages going forward?
We are always conservative in giving guidance, that is the problem. And we always do better than what we say, right? So now point is that a slippage part. The slippage is governed by 2, 3 things, sir. What is your collection efficiency? So collection efficiency is 94%, 95% continuing. Second, what is your SMA 1 and 2? SMA 1 and 2 is slightly higher because of the reason I told you because of the EMI part because of the revision in AMI, which we are following up. And there, therefore, we are not seeing much worry here at all, much worry here for that further slippages -- higher slippage, slippage will always be there, but higher slippage.
So is this the new norm...
And you see the corporate -- and major is in corporate. In agri side, 53% is gold. And again, that 13% SSG we are already 1% or 2% and we're not behind that. And all our -- you see the slippages, which came first INR 1,000 crores from the restructuring book, then INR 469 crores and INR 419 crores, major part is coming from the restructuring, which, too, is coming down. So we are not seeing worry here, sir.
Of course, sir, nothing to worry, but I was trying to understand what would be the normalized slippages. If I look at last 3 quarters, slippages are like INR 3,000 crores, INR 2,500 crores and now INR 1,300 crores, right? So I mean, what should be the business as usual or normalized slippages considering we have been retail -- considering the business...
Last quarter, slippage mainly because of agri book, right? Correct. INR 1000 crores is from the agri book which is not [ there ].
Okay. And then, sir, the two questions on -- first on MCLR, right? So it is right that you can keep rising MCLR as per the cost of deposit. But what I wanted to understand is how much of the MCLR hike actually gets transmitted, right? Because this MCLR would be applicable to corporate borrowers and they would have other avenues or they mean they can negotiate as well, right? The transmission may not be as 100% as under EBLR. So in your sense, let's say, in the last 12 months, you would have hiked MCLR by 125, 130 basis points. What would be the actual MCLR pass on? Some of the customers may negotiate, may renegotiate or something else, spread can change. So out of 100 basis point MCLR that you announced higher, how much actually gets transmitted?
Your question is correct, sir. Now my point is that, suppose, my cost has increased. I have to pass on. So if you are not ready to give me an increased cost, then we say, we allow them to go. Then we will grow in an area where we are having margins, right? So you see that is why corporate growth is 7%, whereas the other growth is 15%. So this is, again, I have to take care of my margins, my profitability.
No. So I'm not asking for future. I'm asking last 12 months, how much, let's say, 100 basis points, 130 basis point MCLR that you have announced, how I mean...
You see, sir, our growth -- credit growth is increasing. Growth is happening, right? And if I add the write-off part around 4% or 5%, it is a 12% or 13%. So point is that when you are able to grow 12% or 13%, then you're successful in passing on the increased cost, and you are maintaining your margins as well. Not to 100%, maybe 60%, 70%, 80%. It depends, sir. Then we will find some other opportunities. And you see -- but you see my book AA, A, AAA, it's is continuously increasing.
Okay. Understood. And lastly, sir, on your co-lending arrangement with Rupeek, right? So if you can elaborate a bit, is this state specific? Or it is like multiple states where you have this arrangement? And how does Rupeek differentiates between you and some of the other private banks where they have the similar arrangement?
My issue is very simple, sir. Somebody is coming for a gold loan, I will be with him for a co-lending, provided he deposit gold at the end of the day to me. So my risk is his. What is the benefit to the customer is that he is not required to keep the gold, first point, and that we can have a higher margin. But point is that because we are not having the reach at all places which is the NBFC is having. NBFC is always having the benefit of it. They can go to any interior part where I'm not having the branch. But for me, it makes a sense because I'm getting some margin and that's is [indiscernible].
No but this is a PAN India tie-up, right? It's not a state-specific tie-up?
Yes. It's a PAN India tie-up, but initially, we started with a few branches and going forward, having experience with them, we will increase number of our branches. But there is no restriction in going in any geography.
No, what I was trying to understand is how would rupee -- I mean, do you have a separate firm guidelines that this kind of loans should come to Indian Bank and this kind of a loan may go to some private banks, which also have the similar arrangement with Rupeek?
It's -- we have told them what kind of loan we will have. We have our own agreement with them. And what will be the SOP. What they are doing with others, that's their call only.
Bank specific.
Bank agreement with them. But for me, specified branches, gold to be deposited with me in the evening. Then only we will demand some money, simple. For me, it is very simple.
Right. And last question, sir, if you can provide what is the outstanding provisions that we have on the restructured loans, and that will be helpful. I think the number we have given some INR 15,000 crores, but what is the outstanding?
15% is INR 2,225 crores [Foreign Language]. That is for 15% of INR 15,000 crores plus we are having for other restructuring book. Madam?
Total INR 2,582 crores including the other.
INR 2,582 crores, around INR 2,600 crores of provision.
We have next question from Mr. Ajmera. It's a follow-up question.
Sir, I have got just a small one or two data points and some guidelines. We are -- sir, on CASA front, we are around 40%, 40.4% or 39.5%, 40%, 40.4%. The bank has any strategy to increase the CASA deposits and making some bigger targets? And then preparing a road map for that, that we may go to 42.5% or 45%? Or is there any thought around that increasing the overall CASA of the bank?
Our CASA 40.40% is in total book. In the domestic side, we are having a CASA of 41.18%, right? Our endeavor is always to cross 42.5% immediately. But point is that what happens if the interest rate increases, people move their deposit from saving deposits to term deposit because the interest differential have increased, right? So this is one challenge, but our endeavor will always be to get quality selling bank account. Now we are giving insurance also on our mobile. Shortly, we will be giving wealth management also in mobile. We will be having more mobile banking registration. So we will try to engage people more on our apps. As a result, they will be having a more balances, right? But our endeavor will always be to improve from this level.
And my second question was connected with this only that the income from third-party products and insurance business, mutual fund distribution business. Do we have a separate vertical for them to monitor and to grow it with various other channels, which comes in noninterest income?
So we are having separate teams and separate tie-up. We're having insurance tie-up; number of mutual funds tie-up; insurance, life or nonlife. All these type. There are -- time to time, we are reviewing them also, we are calling them also. And our income on account of that is increasing. Ashwani you can add.
Our income during the 9 months period from the cross-selling is INR 88 crores as against INR 51 crores last year. So we have a team here, which are looking after these third-party products exclusively. And similarly, at the field level, they also. So our mutual fund platform is available. All our customers can onboard through our mutual fund platform. And on that platform, all mutual funds are available. Broking account, we are also offering to the customers. AIF, we are also offering to the customers. So with all that bouquets, with all insurance, general insurance, life insurance, health insurance, that have been made live on our app as well. So mutual fund is available through our app, insurance products are available through app and our other third-party [ products ], everything is available through app. So dedicated vertical here in the field, everything is helping us to increase our -- so 86%, Y-o-Y 73% increase is there in this 9 months period.
But there is huge scope to do it, though, we have grown by 72%, but there is huge scope and we are focusing on that. And we want to give a digital journey to the customer, then a customer will have a better experience.
No, sir, what was my point was -- yes, yes, complements for such an increase. But the target based processes yield better results because you are a big bank now, good bank...
No, no, we have given 100% target, Ajmeraji. Our target Is 100%, we could achieve 73%. We want to increase further, but you can't do it -- slowly, slowly, slowly, we are building.
We are bringing that culture in.
We'll take last question from Mahrukh.
Sir, could you quantify the PLI provisions already made?
INR 105 crores, madam.
Sorry?
INR 105 crores.
I'm sorry, I didn't...
1-0-5.
1-0-5. Okay. It was made in this quarter only?
Yes, yes, madam.
One question related to that, which has come in the chat box is that whether we will have to make a similar kind of provisions even in fourth quarter if the performance remains strong? Or basically, it comes with the [indiscernible]?
No, no. The point is that we've met 75% of the provision. Now only 25% is to be met.
On PLI?
Three quarter already we have made the provision. Only 25% of that.
Okay, sir, three quarters basically...
We have met on a pro rata basis, pro rata basis.
Anandji, for three quarters, we have made provision in this quarter.
Last to last, INR 35 crores all we are required to make.
In the fourth quarter. Okay. Sure, sir, that's helpful. I think, sir, you have some time constraints. So we'll just take that as a last question. And if you have any concluding remarks to make.
Thank you. Thank you very much to all our analysts, investors for continuous support to the bank, and thank you for active interest in the bank. And kindly keep supporting us.
Thanks a lot.