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State Bank of India
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Ladies and gentlemen, good day, and welcome to State Bank of India Q2 FY '22 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Pawan Kumar Kedia, General Manager, Performance Planning and Review, State Bank of India. Thank you. And over to you, sir.
Good evening, ladies and gentlemen. I'm Pawan Kedia, General Manager Performance Planning and Business. On behalf of the top management of SBI, I extend a warm welcome to all joining us today on SBI's Q2 FY '22 Earnings Conference Call. On the call today, we have with us our Chairman, Mr. Dinesh Kumar Khara; Mr. C.S. Setty, Managing Director, Retail and Digital Banking; Mr. Ashwani Bhatia, Managing Director, Corporate Banking and Global Markets; Mr. Swaminathan J, Managing Director Risk, Compliance and Stressed Assets Resolution Group; Mr. Ashwini Tewari, Managing Director, International Banking, Technology and Subsidy; Mr. Alok Choudhary, Deputy Managing Director Finance; and Mr. Charanjit Attra, Chief Financial Officer. Before I request our Chairman are to give a brief summary of the bank's Q2 FY '22 performance and the strategic initiative undertaken, I would like to read out the safe harbor statement. Certain statements in these slides are forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual outcome may differ materially from those included in these statements due to a variety of factors. Thank you. Now I will request Chairman [indiscernible]
Thank you. Very good evening to all of you. Thank you for joining this conference call. Today, I would like to start by thanking the support of all our stakeholders, including our customers, shareholders, employees and the broader ecosystem, which has always been supportive of our efforts and initiatives. I also take this opportunity to express my heartfelt gratitude to our shareholders and other financial market participants who have supported and valued the bank through the challenging times in the recent past. I feel a sense of immense pride for our institution as we discuss today our quarter 2 financial year '22 results. Today, some of our outcomes through this period are industry-leading by a fair margin by others are comparable with the best, especially when normalized for the scale and complexity of our operations. I feel satisfied to see the results of our continuous efforts to improve our credit underwriting process and systems, which have led to a significant improvement in asset quality outcomes for the bank. I'm glad to share that we could absorb a liability to the tune of INR 7,400 crores due to enhancement in family pensions in this quarter itself without awaiting the relief which was granted by the Bank of India in terms of deferring it for 5 years, without impacting the profitability outcomes of the bank, too. This actually demonstrates the strength of our balance sheet. I'm happy to highlight that our retail book at INR 9 crores, which is the largest in the country, is growing at a 3-year CAGR of 16%-plus. With an industry-leading asset quality, I'm also glad to share the progress we are making in the regional banking. 62% of our savings bank accounts opened in the first half of financial '22 were through YONO. We opened almost 27,500 savings net account on a daily basis through YONO in the quarter 2 financial '22. We think these outcomes demonstrate the resilience of the bank, underpinned by our process-oriented culture, the quality of our employees and the expertise and the vision of our leadership team. While we are happy with outcomes in the current quarter, we are also mindful of areas that require further improvement. With the country crossing the milestone of 1 billion vaccination, and hopefully, the third wave not being dearth or being far less disruptive, the wheels of the economy picking up speed, we should see higher credit uptake in the near future. On the liability side, we continue to focus on increasing our share in current accounts by maintaining our leadership position in savings deposit. We believe from a P&L perspective, the bank is at an inflection point. As credit growth improves, the bank will be able to better utilize our strength on the liability side. Further, operating costs are likely to lag income growth as operating leverage kicks in, which would also give a more normalized picture of the cost ratios. Our aspirations from our current position of strength is to consistently deliver an ROE of 15% through major cycles. Hopefully, as the economic growth picks up, we should be able to deliver on our targets sooner than expectation. However, we remain confident of the uncertainties of the world we are operating in, and therefore, we believe that it is still early to give a time line for reaching our targets. Concluding my opening remarks, I want to thank you all for your support to the bank. The bank, while posting its own progress, contributes to the progress in economic growth of the broader ecosystem. We remain committed to reward your trust with us with superior sustainable returns over the long term. My team and I are now open to taking your questions. Thank you.
[Operator Instructions] The first question is from the line of Mahrukh Adajania from Elara Capital.
Sir, my first question is on recovery. So in the last phone call, you had said that probably you had recovered 40 billion, 45 billion of first quarter slippages already, and that was in August. So the recoveries in the first quarter slippage would have increased only after that. So what would be the total recovery from the first quarter slippage do you have so far? Would you be able to give that number against 40 billion, 45 billion given last quarter?
I would say that we have -- I think when it comes to recoveries, of course, whatever was the stress that you have seen in the first quarter for our retail book, and we could hold that all and we have further, I would say, that INR 8,000 crores worth of recoveries were also affected by...
[indiscernible] was slippages of this year in Q2 back to around 8,000.
[indiscernible] this 8,000 would be netted from the gross slippage figure of Q2, right, because it was...
Okay. If see our notes to account that makes very amply clear that the figure of the quarter is the balancing figure between the figure of 30th of September and the published figure of 30th of June. So this is how we have been reporting. And because this is a figure as of now and that is all.
So between 2 dates, whatever is the difference, that is the recovery, which is as stated in those events.
Sir, and in terms of tax refund or recovery income going through NII this quarter?
We don't [indiscernible] Yes. We do some tax refund, which is there, and it is INR 4,922 crores and it has been there in the past also. In 2021 also, we had INR 1,517 crores so I believe it's almost a...
Sorry. But this quarter, it was how much?
INR 2,922 crores.
INR 2,922 crores. And in the fourth quarter -- in the first quarter, we did not have much tax refund, right? So in the full year FY '21, we did?
None.
Got it. And sir, just 1 last question in terms of retail restructuring. Would you be able to give a breakdown of how much was restructured under Express and how much was restructured under home loans?
I think in the express, there was hardly any restructuring. It was all in the home loan or in SME cateogry.
The next question is from the line of Ashok Ajmera from Ajcon Global Services.
A very happy Diwali to all of you. My to you and your entire team of Cetera, Matyas, Vainer and all the top management and entire stock of the bank for such a fantastic results of the State Bank of India. Just immediately after we came out of the pandemic, almost coming out of it. it's a fantastic feeling also now your bank has become like almost about INR 30,000-plus crores profit bank, net profit bank, which is a very welcome sign. Having said that, sir, I got some small very point. Number 1 is that the INR 7,418 crores which you have provided for because you had sufficient here this time because the slippages also came down to [indiscernible] INR 15,000 crores in the last quarter. Will it be available for the tax benefit also that because the dispensation was for 5 years and you have provided the entirely 1 year itself, will we get the benefit of the entire provision in the income set also?
If you see the RBI later in this regard and basically wanted that the bank should take it in the quarter itself, they should not amortize it. But they are also given if some doesn't have the room, they can amortize the profile.
I think it was an option which was given by RBI either to defer it for 5 years and also carry out the treatment, which we or absorb it in the first year itself, in the quarter concerned. So since RBI has given both the options, I'm sure tax authorities will be efficient to give comment.
Actual valuation. An actuarial valuation, so there is no tax angle involved.
But only as the cost.
So to that extent, it's a cost, it will be allowable cost.
Yes, allowable cost. Yes, yes. Okay. Sir, for the SMA 1 and 2, you have given about INR 5 crores or INR 6,690 crores for this Slide #31. What is the total figure even if you take less than INR 5 crores also, sir, the entire amount?
Totally into, but it's not a significant number at all.
Good. Sir, it's nice to know that it's not a very significant figure. Sir, some more items on the expenses and income, some small queries are there. The expenses shot up to INR 1,709 crores from INR 1,000 crores. At the same time, the net income came down to only INR 365 crores from INR 1,181 crores. Can you throw some light on this? One is that it may going up by INR 600 crores, INR 700 crores and income is coming down by INR 700 crores, having the effect of multiple -- I mean, effect of almost about INR 1,400 crores.
Many income would have an impact of that, no the expenses don't yet if I may this.
Yes, in terms of expenses, what you have pointed out, if you see that INR 1,100 to INR 1,709 kind of figure. Actually, the development in this regard is that the expenses have gone for GST increases there because GST operating expenses increased a bit. So GST increased. Then we had some increase in the donations also, like we give donations missions to our Foundation and then we met other donations during this year also. So that is also around INR 400 crores. Then launch our grow, audit fees and security GST and some of the other expenses, which are numerous and However, all these things, they make up for this difference.
[Operator Instructions] The next question is from the line of Kunal Shah from ICICI Securities.
Yes. Congratulations to the entire team for great set of numbers. So first question is on yield so not the overall interest income, but particularly yield on advances. So if we calculate that has also gone up. So was there any element of recoveries, interest recoveries out there in this? And where should we finally see the yield on advances stabilizing? So that's the first question.
advances, yes, there is a component of some of the write-backs, which we had. And also, the other aspect is the lower amount of interest reversals also would have an impact on the advances. In terms of normalizing, if at all we do, I think we'll have the number -- just me just start and get that. If we normally -- normalize for the one-offs.
on advances, there no [indiscernible]
Will be the write-offs, I think [indiscernible] last quarter, it was [ INR 1,066 crores ]. So there is a reversal.
I happened. So that's why it is like this. SP05 And this quarter, the slippage has been very less. So we have got, again, whatever reversals happened last quarter. Those reversals were done again booked. And this time, the vessels are very less. So this is...
It is a reflection of the.
It's a reflection of the asset.
And any recovery from the SSL or anything which is getting recognized? So this will be entirely in provisioning.
We have not written off so that's why that has not come in here. It has only -- it has affected the process.
Okay, sure. And secondly, in terms of growth. So again, on the corporate side, there is still deleveraging and that's the only segment which was down quarter-on-quarter and that [indiscernible] So last time you were highlighting in terms of the underutilization of the limits and all. But finally, I think we need to see some corporate growth coming back for the industry as such. So what would be your outlook in terms of some indicators, lead indicators are suggesting that it should be different for investment-related CapEx. But from SBI side, are we seeing that over the next couple of quarters, we should see it coming back?
now also the capacity utilization stands at around 60% only. So when it comes to the corporate credit, it is a function of the capacity utilization, first of all. And -- but only 1 thing which I must mention that we already have got unavailed loan and unutilized working capital almost about INR 30,000 crores. And we have got some pipeline for the new proposals also, which are, as I like INR 15,000 crores. So that is a kind of a number. But in the month of October, we have certainly seen some traction in terms of the corporate credit growth. Maybe I'll request Mr. Ash Bhatia to further add is beyond this subject.
Yes. So we have seen a pickup in the first month of this quarter. You're absolutely right that in the quarter ended 30th September, corporate loans was below the March levels. As we get into the busy season, we are already seeing more inquiries, higher utilization. This utilization may also come from oil companies. At the same time, we are seeing some deleveraging happening as far as iron and steel industry. But from the iron steel industry, we are also getting proposals for greenfield, brownfield expansion at the same time. We are getting inquiries from and other assets, we think the pipeline right now as a can.
And international is going on strong. I think this quarter, again, there was further rise. So I think that there is overall demand for quality Indian corporates in some of the countries that is very much on.
In fact, in the overseas operations, we are generally having exposure to all the well-rated corporates. And because all these economies are doing very well, so it has opened up a opportunity. We are quite confident of building a healthy book in that directional space.
The next question is from the line of Mona Khetan from Dolat Capital.
So on the non-COVID, how much would be the non-COVID MSME restructuring in our book that was under the earlier release?
this was total book restructuring INR 48,000 crores.
Total restructuring is INR 38,000 out of -- [ 30,000 ] days on account of restructuring and Yes, there's a legacy restructuring…
which [indiscernible] Out of which about [indiscernible]
Okay, got it. And on recovery, just a clarification. So of the 10,000 or so of exposure, about INR 4,000 will be taken through the recovery and upgrades in the GNPA movement, while the rest of INR 6,000 will go via the write-off? Is that a correct understanding?
Can you just repeat your question?
Yes. So when we look at the NPA movement this quarter and the recovery, so of the INR 10,000 crores of BHFL exposure, INR 4,000 crores which has been recovered, will go through the upgrades and recoveries line of INR 7,000 crores in total, whereas the rest will go via the write-off? Is that a correct understanding?
No, actually, you see what happened, we had provided for fully in the case of And having provided for full to the extent we have got the recovery. Of course, it was not return up in our books. It has not developed in our books to the extent of the recovery, we could reverse back the provisions. And of course, since it is resolved, so very will have to be written up.
Right. So of the INR 7,000 crore of last…
Because we are holding excess model for that.
If I would discuss your attention on Slide 30 of our presentation. write-off [indiscernible] because for a ranking boot from Nandan the real write-up in the internal has so far tend.
Okay, okay. And finally, on the gain, coming to the movement of GNP. When we look at the slippages, as you mentioned, the pullback of previous quarters and in this quarter idea we have in the block digital recovery, INR 8,000 crores will be added to both recover. Is that a understand?
I a You will say the slide we say, you have able some keepage right, and some. So if you do cumulatively like this within 365 days, maybe the numbers will be valuing like anything, right? So at the end of the year, what is your total clip is the number of the previous at first March. And the number is in the current mark. So this is how it is held. This is the balancing figure as we have told you that this is the balancing figure as of 30th September, what has been reviewed and published by the bank. has already published filer for the previous quarter. So this is how this goes, and this is a concept which should be understood.
Sure. Got it. And is it possible to get the breakup of fresh slippages segment right?
I think we -- you can Investor Relations department will share with you. But mostly, it's corporate. It's not retail. This is all corporate.
[Operator Instructions] The next question is from the line of Shagun Verma from Goldman Sachs.
Yes. This is Rahul here. a follow-up question. So given the next pages during the quarter, is it fair to assume that the is account that has been -- was in the news has already been accounted for in this quarter?
It is fully provided for.
On NPA.
Provide is accounted for and fully provided for.
Okay. Okay, got it. Sir, second clarification question is, can you just share the -- what would be the loan duration of these restructured loans? I mean, when would these accounts start coming out of the restructuring base?
So the -- in case of home loans, most of the people availed moratorium ranging from 18 to 24 months. But what is interesting is that many of them probably would start paying off. It is -- basically, what we have seen is that many of them are having a high cost. Probably they have just taken as a safety measure. Most of them will not -- may not avail the full...
So it is actually hedged against the possible risk of the disruption in the cash flows.
Yes, technically, this [indiscernible] is for 18 months, but I think at the end of 1 year, we may see many of them.
All right. What about SME loans, sir? And how is the stress in general for the SME accounts?
So the restructured book is because there's a monitoring, we need to affect in -- But there is a turnaround in the sector. Some sectors are doing well, particularly at the have taken the restructuring. So hopefully, I think we wish also be able to come out before they complete the 2-year monetary. We're also in the...
Actually, just restructuring, there is a characteristic difference because this is essentially a function of the disruption to cash flow. -- when the cash flows are getting deferred and restored, people would like to come out of the restructuring tag. That is what we have generally observed. So I think this is what we expect to witness going forward.
All right. Sir, just 2 more questions. On the growth side, you talked about corporates still have not availed of the credit levels. But when you look at Slide 10 of your presentation deck, do you see the loan book reduction across many industries. This is because of repayments there's a competitive pressure that you are witnessing? Can you just throw some color on that? And how do we kind of start -- if you're seeing the competitive pressures, how do we kind of respond to that?
The point is when we look at this particular slide, wherever we have seen like iron and steel sector, it's already similarly in airports also. We had -- one account got repaid. That is the reason, likewise in case of So in fact, there's highly any I mean hardly any reasons for us to really visualize that it has gone to the completion. It is not really so. And similarly, part of it is also on account of the repayments which are due and which you have received on time. So that is also a rebuild. But it has not been replaced by the fresh disbursements in the sector, that is a reason. So we -- at is not really attributed to their competition taking out -- taking over our accounts.
Sir, this sanction limit of INR 4 lakh crores plus you talked about in your press what percentage can really fructify from this and over what period?
Eventually, as I mentioned, that it is a function of the capacity utilization. So there are many moving parts, but our expectation at all, I can put it like this. As of now, we have seen the credit growth about 6%, 7%. So I hope that the kind of agreements which will come in and kind of dispersion such as the way in the tuna, we should perhaps see their growth in somewhere around 10%.
[Operator Instructions] The next question is from the line of Mohit Surana from CLSA.
Congrats on great set number. So I had a question, if I try normalize the performance of this quarter for the family pension that we've provided upfront basis and adjusted for like one-off recoveries from the DST. It looks like we've already crossed our threshold of 15% ROE. And given the trends that we've seen in asset quality, it looks like we certainly will undershoot credit costs in the near term, right, at least for the next few quarters or a couple of years at least. So in that sense, it looks like the bank is quite well positioned to kind of deliver more than what we have indicated, right? Because you're already at 15% ROE coming just out of [indiscernible] So just wanted to understand, right, that this correct? And what is the risk?
I think your assessment is quite correct. But we do believe that whatever cost or risk we can perceive we should be rather prepared for meeting out all that in time. So we had the available, and we have done that. So hopefully, because we all operate in the uncertainties. What uncertainty will head from where an rely does not know. So we have to ensure that while we have time when we have resources to our site, we should rather provide for it.
Got it. Sir, and the second question I had was on the core net interest margins. We reported a INR 31,000 crores approximate number. Out of that, there is some funds that come maybe easily. So from a forward-looking perspective, what should be the adjustment to get the core and of the bank, which is like more a recurring number that 1 should work with?
Actually, when it comes to NII of course, every year, there will be something on the other. This is what we have seen in the past. And I think those one-offs will continue. And those are not that significant in number considering the overall incomes. So I think perhaps I was not beneficent to give you any kind of a normalized number, because this has been there in the past also. It has happened this year also. And also, there will be marginal differences there and for instance, I'll just share with you that in the year '21, '22, we have the income tax refund of interest on the income tax of INR 1,022 crores. In 2021, at INR 1,517 crores. So likewise, we have seen that on a year-on-year year basis, there's always 1 such of an our...
So this of [indiscernible] crores in this quarter.
Sorry?
The whole of the income has come in this quarter in sales that's…
This quarter. We recognize we receive, that's all.
And what's the outlook on margins that were at a decent point in terms of margins. And it looks like rates have kind of clearly bottomed out and depending upon how much [indiscernible] liquidity, it can go up. So what would be a NIM outlook, let's say, next 12, 18 months, not [indiscernible]?
Our effort would be that we should be a range bound between [ 3.2 to 3.3 ]
The next question is from the line of Abhishek Murarka from HSBC.
Congratulations for the quarter. So a couple of questions. One, what is your exposure to the Kolkata-based NBFC and whether that is now fully provided for, I guess, so just what is the exposure to that group? And secondly, if you can share the incremental yield on express credit and home loans, that would be useful.
Well, as far as the Kolkata as NBFC is concerned, it is fully provided for. And as regard the yield on excess credit and home loan is concerned, I would not be the question to share the data because I'm not keeping it with me. Maybe you can get in touch with our Investor Relations.
Sure. And what would be the exposure to the NBFC? Around INR 2,000 crores?
INR 2,700 crores. INR 2,700 crores. The entire amount has been provided for.
Yes, INR 2,700 crores. Yes, okay. And your recovery from DHFL, did any part of it flow through interest income? Just trying to clarify that.
No, no, no.
Nothing. Okay. Okay.
The next question is from the line of [indiscernible] from Nomura.
Just a question on capital. I mean we are doing quite well. And hopefully, the growth is in front of us. Is there a possibility you want to raise capital over the next 12 to 18 months?
We still have room about INR 4,000 crores of AT1 to be raised. Board has already given us the approval for that. And the current kind of a growth of about 13-odd percent, we can easily support with our existing capital. For all purposes, we have already raised INR 6,000 crores in the month of October [indiscernible] If we add that, we are at about 14.22% capital. So 14.22% capital, when we're looking at the growth opportunities and the need be, we will be tapping the market, but that will be at the opportune time, keeping in mind the interest of all the stakeholders.
Right. And sir, any color on potential IPOs of 2 of our subsidiaries, the general insurance and mutual fund? Is that also probably factoring in your calculations?
No, we have not factored the IPO of our subsidiaries. As I have mentioned in the past also, we have been nurturing these entities, and it's not a compassion of our raising capital, which is really push us for taking them to route it to be rather meeting their own ambition and because when they have become the industry leader in their own right, they should get listed. That will be something the rating we are already engaging with our JV partners and in the case of one of the subsidiary and at the material point and the opportune time, we were sharing that information with you.
Right, right, good. And sir, on -- going back to the movement of NPL, I just wanted to reclarify this. So for example, it was INR 100, which shipped in Q1, and we managed to recover [ 50 ] we are basically what we are reporting in Q2 is basically a net of [ 30 ] So basically, what you have reported it will they take Q1 and Q2 number? Is that right?
This is the slippage part that you are asking?
Yes.
This is how we -- At these on 2 different dates in this particular phase, 30th September and prior to that, 30th June. So whatever was a slippage number as of 30th June and whatever the slippage number as of 30th September, the difference between the 2 would be the...
[Operator Instructions] The next question is from the line of [indiscernible] from JPMorgan.
Sir, 2 questions. One is on the COVID drawdown from INR 9,000 crores to [indiscernible] crores, that's on account of the...
No, no, no. See, the point is that when we did the, it is more like a of this was not a specific provision. And in any case, we have got the obligation less. We -- the general providers will have to have as on 31st of March. That is there's an accounting loan. The other factor that, as I mentioned that in the second -- in the first quarter, whatever slippages we have seen, we have been in a question to pull that almost all. So that is the reason why whatever additional we protect, we have already reversed because we don't see the possibility. And the other thing is that our total restructured asset aggregated to about INR 30,000 crores. And we have looked into the PD compilation of our legacy book, and we have seen that generally about the deferred tax and over 30% only. And definitely go by those reckoning those numbers, we don't need more than INR 9,000 crores in any case. Also, I would like to like you to consider the other fact that this restructure book is being very differently as compared to the legacy restructured book because it is attributed to the cash flow disruptions as and when cash flows are getting repaired, we have seen the customers coming back and keeping also. So in view of that, we have kept about 20% kind of a provision on the total book. But as we see visibility of the behavior, if need to see our -- these posts also.
Okay, okay. And the second question, sir, is on your ROE, ROA targets. So the point is that if your credit cost normalizes and your ROA is exceeding this [indiscernible] you have. Will it be fair to assume that you could possibly decrease your net interest margins to kind of compensate kind of the growth?
I think we'll react to the situation when we come to that.
Mr. Sara, does that answer your question?
Yes.
The next question is from the line of Sumeet Kariwala from Morgan Stanley.
Congratulations from. I have a question on margin progression. And how should we think about it as the interest rate concerns as compared to past cycles this time, if I look at the share of repo, linked loans are higher given the regulatory changes savings deposit rates are much lower. So should one expect margins to improve quite uniquely as the cycle?
See, when it comes to the behavior of deposit and liabilities and the asset, the repricing at what periodicity it can happen will actually decide this particular aspect. So since we have when it comes to the interest rate sensitive deposit, they are essentially our fixed deposit. And they are normally contracted for our maximum deposit and the fixed deposits are in the rate category. So I think maybe we'll have some -- for some time, we might have some opportunity. But and or about 39% of our accounts are when it comes to our advances and almost about [ 12% ] in the fixed cost, so 20% is the tail line. 20% is retail. About 37% of our book are fixed or BR. And if at all, BNR also, it is exon benchmark link. So if the interest rate movement happens, we should be patient to take care of our field or our interest earnings. So that is something that's what we expect. But yes, of course, much of it evolve as and when we will reach towards those stages, but this is what -- how I look at the situation.
This is early days. But if I were to ask you how should I think about savings deposit rates over the next 1, 2 years, as interest rates move up, is there any framework that you have in mind?
I think it's a very dynamic situation, and we have to remain vigilant of the situation on the ground and be responsive to the needs of the customers and also the market.
The next question is from the line of Manish Shukla from Citigroup.
My question was on RWA density, RWA to total assets that has been steadily falling. How much of it is driven by the demand and how much of it is maybe caution or risk cover them on part of the bank.
See, when it comes to -- of course, it is partly attributed to -- it's a very conscious effort in terms of our underwriting principles that we follow and partly attributed to our policy. And having said that, I would also like to mention that our extra credit is considered to be unsecured. It has gone up. And -- but yes, of course, it's eventually what we are only keeping in mind is some kind of a reset relationship in terms of risk and to the bad edition to generate. So with that in mind, we -- is kind of a trajectory seed. So that's all I would like to answer your question.
So Express Credit will have a risk weight of 100%, right?
Yes, of course.
Yes. So my question is that, I mean, I'm assuming that there would have been good benefit of NPA decline over the last 1 year on the RWA front. Now incrementally, NPA decline were to moderate and express credit continues to provide towards the overall retail. Do you see RW density inching higher?
I think it is worth marginally, but will remain within that.
The next question is from the line of [indiscernible] from B&K Securities.
First question, sir, you used to disclose segment-wise slippages right? So this quarter, maybe there is an inter-quarter netting of slippages that we have done. But if you were to show the segment was open like you used to do earlier, retail corporate agri SME, that won't be very help.
So see what happened. We used to show segment was earlier because all the met of concern. So now it has come down significantly, and we feel that maybe if it was petty good media for the segment by maybe you can reach out to our BP investor relation. Those retails will be available, but it is nothing too great a bit to bigger numbers. So that's how we have not given the segments.
Sure, sir. Secondly, on ECLGS, sir, if you can quantify how much is the outstanding COGS? And how would you read the health of this portfolio because I mean I just wanted to understand when this book when the moratorium book will come out of moratorium in this one, how do you read that progression here?
Early days, but it still maturation has yet to happen. Nevertheless, as of now, it has behaved okay, and about [indiscernible]
Sorry, how much? [indiscernible]
About [ 25,000 ] [indiscernible] booked. [indiscernible] And as of now, only 2% would have steel, which has got classified as NPA in the lease year.
So when this 2% of the loan slips in the entire corresponding the other facility, the main facility will also be classified as NPA, right?
There's a total impact of that. There's a total impact of the NPA in the GL book.
Understood. And otherwise, you have seen the portfolio behaving reasonably in line with other part of the book, right?
Otherwise, we don't see much of a challenge.
The next question is from the line of from Jefferies.
Congratulations to you and your team for a phenomenal performance. So just younger, you would reconsider going back to the asset quality disclosures on a gross basis, because as we get into the third and the fourth quarter, it will become even more difficult for us to understand the quarterly performance. And most of the mostly are all on daily stamping and gross quarterly disclosure. So very humbly request if you could reconsider switching back to the gross exposure.
No, it has been consistent. Whatever disclosures that you have seen in the previous quarters are also the slippages are net of pullback that happened during the quarter. So that's how it is getting reported. Maybe this quarter being such a small amount of INR 1,000 crores is attracting a lot of attention. Otherwise, the way in which it is always calculated in the opening balance at the beginning of the quarter and the closing balance, the portion to slip and remind is what is disclosed as a [indiscernible] Because as...
I just confirm you are you also in the past, you were reporting on inter-quarter adjustment also like something that slipped in 1Q but recovered in 2Q. Was that also netted up in the past?
It is. It has been done in the past also. It has been a consistent practice outlook. Yes. And other banks, as I understand, are also did likewise.
Because in any banking as GM Finance explained, every day they could be on to account shipping and then with the utilities, they will be getting pulled back. So in case we have to keep aggregating these numbers, that will be kind of not reflected tough position. It's always a comparison between the opening and closing position petites, the account at site and remind in the slippage category, what is disclosed at the end of the quarter. So there has been no change in the disclosure practice as far as this particular item is concerned.
The next question is from the line of Mahrukh Adajania from Elara Capital.
So I just wanted to clarify 1 thing again on BH. So basically, the entire exposure, including loans and bonds would have passed through the recovery or write-off line in the movement of GNPL? Is that correct? This was around [indiscernible] right because some banks only NPL, but I think you show GNCS, bond and loan book. And in terms of what is accounted over in the recovery line and what is accounted for the write-off line, would that be 40 billion, 60 billion, 40 billion and 60 billion, is that the correct?
Mahrukh, I think we can provide you more granular detail as noted available right now.
But as a matter of principle, as you would know, you had a very opaque that we had in both loans and deal investments. And this was an account which was fully provided for both the loans as well as on -- And the recoveries are also in public domain. So when the provision is returned back, it is return back to the extent of recovery. The balance of provision is utilized for writing off.So there has been no change in the accounting treatment, but this account as compared to any other accounts. But if you need the granular details, our Investor Relations will be able to provide you directly.
Sir, just 1 more question in terms of CapEx for the quarter. We said almost entire is corporate, so basically 2 to 3 accounts.
So we did say almost into A major part, a largely corporate, and you also know 1 large account is known. So that's only [indiscernible]
That account, there were no other popular slippages?
There were a few [indiscernible] but on first.
But in terms of number, it may not be as much.
[indiscernible] those numbers are available with you. So the remaining cannot be anything.
The next question is from the line of Jignesh Shial from InCred Capital.
I just wanted to say there have been a lot of nonapping around on the digital lending segment side altogether. Though it is a smaller segment compared to what SBI does in general, but can you give you close some light on how you are seeing this particular space and some more details about your run, that will be pretty useful.
Yes. We are, in fact, as far as concerned, is something which has become very popular, and it is into digital. And we are generally underwriting about INR 500 crores worth of almost [indiscernible] on a quarterly basis. The first quarter, of course, was subdued to that side of about INR 2,000 to INR 500 crores, [indiscernible] number. So already, we have done about [indiscernible] as loans are concerned in the current financial year And I'm quite hopeful that the remaining 2 quarters, we can really do at least INR 10,000 crores-plus in the [indiscernible] . So that is 1 part of it. Apart from that, we are using this for doing our KCC reviews also almost [indiscernible] as the portfolio got removed with the help of...And also, we are using it for opening of the accounts about 27,000 accounts are getting coupled on a daily basis and the current finance in the current quarter of this financial year. [indiscernible] almost about INR 5,000 crores worth of mutual fund with the help of YONO. And our total registration as [indiscernible] plus 4.4 crores. And we have online banking facility, which is -- which we started offering way back in the year 2001, which is 20 years worth of facility where our total registration is or [indiscernible] There's a new offering where our total initio is for poor. We are seeing the average daily login of about [indiscernible] kind of a number on. Even non-life policies also about [ 22 lakh ] policies have been sold in the current financial year until now in the first half of the financial year. So that's what it is. And even in the loan, we are actually leveraging it a very big pit. And it actually helps people to have the convenience they can apply for the booth can have a chain only the physical delivery has to be done by using a particular reference number at both called [ INR 60,000 ] or loans also could be discussed with the...
Understood, sir. And just this very you -- there have been a lot more large peers are coming up or do the overall quantum of getting right could be smaller in the form of mine. Are you guys seeing it up that this particular segment can become gradually over a period of time and a very tough competition as far as consumer value or messing is concerned? Or how do you see that going [indiscernible] What's your sense is?
When it comes to the commoditized product, they can be easily rolled out and offer to the YONO. This is what the strategy we are following. And our effort going forward would be that as many as commoditized products, we should be efficient to offer through this channel. So maybe it is the banking or maybe our financials of the store, we are very efficient to sell the products of our various subsidiaries also. So that's what the study.
Ladies and gentlemen, we will take 1 last question from the line of Praful Kumar from Diamond Asia.
Just to conclude on YONO, a focus platform in the next couple of years, is there any plan to benchmark the valuation for YONO as well because given the franchise and kind of what you're doing on that's more appreciated, I think, by the broader community?
At a material point of time, we will consider. But as of now, we intend to ensure that we make it robust and so that it should be efficient to catch the right one. As and then if we decide to monetize it.
Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for closing comments.
Thank you very much. Wish you all a very, very happy Diwali. Very happy, healthy and for everyone. Thanks a lot.
Ladies and gentlemen, on behalf of State Bank of India, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.