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Union Bank of India Ltd
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Ladies and gentlemen, good day, and welcome to the Union Bank of India Earnings Conference Call for the period ended June 30, 2022. The bank is represented by the Managing Director and CEO, Ms. A. Manimekhalai; Executive Directors, Shri Nitesh Ranjan; Shri Rajneesh Karnatak; Shri Nidhu Saxena and other members of the top management.
[Operator Instructions] Please note this conference is being recorded. Now I hand over the call to Ms. Ranjita Suresh, Assistant General Manager, Investor Relations. Thank you, and over to you, ma'am.
Thank you, Vikram. Good evening, ladies and gentlemen. I welcome you all for the Union Bank of India Earnings con call for the period ended June 30, 2022. The structure of the con call shall include a brief opening statement by MD and CEO, and then the floor will be open for interaction.
Before getting into the con call, I'll read out the usual disclaimer statement. I would like to submit that certain statements that may be discussed during the investor interaction may be forward-looking statements based on the current expectations. These statements involve a number of risks, uncertainties and other factors that cause the actual results to differ from the statement. Investors are, therefore, expected to check the information independently before making any investment or other decisions.
With this, I now request MD and CEO for her opening remarks. Thank you. Over to you, madam.
Good afternoon, everyone. With great pleasure, I welcome all of you to the earnings conference call of Union Bank of India financial results for the quarter ended 30th June 2022.
As you all know, the pandemic is behind us. The Indian economy is well on the path of growth and recovery. We have seen credit growth has picked up and the economic activity is in recovery more in the past few months. Policy rates have been hiked, lending and deposit rates to the banks have risen accordingly.
Coming to Union Bank of India's business and financials for the quarter ended June 30, FY 2023, the bank has continued to post strong financials as the total business grew by 10.8% Y-o-Y. The total deposit has also grown by 9.27% Y-o-Y, led by low-cost CASA deposit, which grew by 8.69% and CASA ratio stands at 36.19% as at June 30, 2022.
The total advance of the bank has registered a growth of 12.95%. And within the RAM sector, that is the retail, agriculture and MSME sector, the retail advances has grown 11.13%, agriculture at 14.4% and MSME advances at 11.26%. RAM sector stands at 54.88% of the total advances.
The net income of the bank has grown by 8.10%. The NII stands at INR 7,582 crores for the [ QY ] 2023. The global NIM stands at 3%. The net profit is at INR 1,558 crores as against a net profit of INR 1,181 crores in Q1 FY '22. Thereby, we have registered a growth of 32% in net profit.
As regards to asset quality, the gross NPA stands at 10.22% and as at 30th June 2022 compared to 13.60% in June 2021. Net NPA is at 3.31%, which is 138 basis points below Y-o-Y. CRAR has also improved from 13.32% to 14.42% as on 30/6, 2022. CET1 ratio improved to 10.8% in and PCR has also improved by 332 bps to 84.75% as of June 30, 2022.
Thank you, and I request you now -- all of you to raise any questions that you have for the bank.
[Operator Instructions] We have a first question from the line of Ashok Ajmera with Ajcon Global.
Good evening, madam. I'm Ashok Ajmera. Welcome to you to Union Bank. And I -- it is [ something ] to welcome you. And I'm sure that under your leadership, the bank will do further -- reach further glorious heights. Having said that, ma'am, yes, on profitability front, the bank has done well in this quarter 2, but quarter 1, I mean to say, tune in. Yes, but if you look at the -- one is there on the growth of the business. Y-o-Y is okay, but if you look at this quarter, I think we have gone down drastically and the business, like, deposits have gone down substantially by 3.84%. And our domestic advances have increased only 1.52%. So going forward, what are your views in my first question about your credit growth?
Because the CD ratio went up only because the deposits have come down, so how much room do you have for the credit growth? And what are your plans? Because, I know you from Canara Bank also, which has recently declared a very good result, your dynamics on this front. So what are your plans for the bank's credit growth in the coming 2, 3 quarters, ma'am? This is my first question.
Yes, sir. So credit growth, yes, we have done -- in the large corporates, we have done a growth of about 13.5%. We have shown good growth in our RAM sector also at around 12.95%. And going forward, we are looking at, for the year-end, about 12% to 13% would be our growth in the overall credit portion. And bring the ratio of RAM to 56% and large corporate will be around 44%.
And there is a lot of -- we are getting a lot of queries and a lot of credit growth we are seeing under the RAM, we are seeing growth in the CRE. We are seeing on the pharma, we are seeing on the chemicals. We are seeing growth in many of these numbers.
Of course, with regard to RAM sector, retail, we have taken a lot of broader structural initiatives. We have opened about 215 retail loan points to push retail, all over 8,700 branches. We'll be talking to these 215 retail loans so that we can increase our retail advances also.
The same, we are also doing in the MSME loan point. We are likely to open some more centers. We are presently having 125 MSME loan points, 150 MSME focused branches. So these branches, together, will increase my RAM numbers. Of course, we are also looking at MCBs opening more MCBs, giving more traction to our large corporate branches, and we will see the numbers that we are talking about. Thank you.
My second question, ma'am, is on the movement of the nonperforming assets, the NPAs. What we see is that we were expecting a larger recovery, maybe some from NCLT accounts and also the gross NPA was expected to go down because of any RCN transfers, but I think that did not happen in this quarter. My question is on the write-offs that we have done a tremendous amount of, I think, INR 6,648 crores of write-offs, which is, I mean, a little higher than usual figures. So what kind of write-offs these are? Can recovery people can explain on that? And going forward, what are the scope for the recovery in the coming 2, 3 quarters?
Yes. My CGM, Ashok Chandra will answer the question, sir.
First point is the recovery through the NCLT and NARCL here that is also a concern for us, so. But going forward, I think another 3 months' time, we will see some good number of accounts shifting to NARCL. And second and third quarter, we are expecting some NCLT resolutions also should come. I think I had shared on number last time also.
See, there are 44 NCLT accounts, which are already approved by NCLT and where our exposure is INR 4,842 crores. And there are 55 accounts where the COC has already filed in NCLT. We are waiting for the approval to come from NCLT and that amount is INR 5,168 crores. So almost around INR 10,000 crores, which we should expect in this financial year. Definitely, it should come. Realizations should come.
And the NCLT, also another 3, 4 months, we are expecting some good number of accounts likely to be shifted. So this is about NCLT and NARCL.
Your second question was the gross NPA and the recovery. I think this is one -- at this time, we have not got any resolutions from the NCLT. From NCLT resolution, we -- what we have got is only INR 12 crores, remaining all the recovery, which has happened through our traditional mode of recovery through the sale of properties, OTAs and there are certain DRT resolutions, which we have got now. Other than that, we are not seeing any major resolutions coming from the NCLT route now.
So this is representing -- going forward...
Write-off. Write-off.
Write-off is -- you asked about the composition in that. Composition is around the INR 4,000 crores to INR 500 crores is the corporate book. And INR 1,400 crores is the MC -- MSME and INR 200 crore is the retail. This is the total write-off which we have done in this particular quarter.
Sir, my one question is on the treasury, which is a great, great, great concern for every bank now with the interest rates hardening up. Our treasury income has gone down from INR 1,186 crores in the March quarter to INR 220 crores. And now there are chances of it may go down in the -- towards the losses. So what about the treasury?
Can we get the outlook of the treasury performance and the income that how much -- we have got a huge investment in the treasury. How much has converted into the interest? And yes, the profit has gone down. And so what the future is saying about the overall, our AFS book is also competitively almost about INR 80,000 crores, INR 85,000 crores. So where do we stand now in the coming quarters?
I'm a R. Subramanian, in charge of Treasury. As you rightly told, the income by sale of securities has come down. And to our -- the MTM losses, also we have maintained very well. Our portfolio, we have anticipated the withdrawal of the [ easy ] monetary policy, and we have rebalanced the AFS portfolio. And during this particular quarter, our MTM losses are very, very meager. That is how, in anticipation of the entire scenario or changing scenario, we have already rebalanced our AFS portfolio.
Second one is that to make up the whatever shortfall as far as the sale of security is concerned, we are working on the exchange income. That is now last time, last quarter, it was INR 108 crores, now this quarter, we have made around INR 199 crores. And also, the interest income has increased from INR 5,100 crores to INR 5,954 crores.
And one more thing is that we have rebalanced our entire portfolio, even with the 25, 30 basis points further hardening around 45 basis points also, we have maintained the portfolio without any further NPL loss. And the same year, we are focusing mainly on the churning of the investment portfolio. And the duration was that 1.44 as on June 21 was concerned. And March '22, it was 1.20 and we have reduced with 2.89. That is how we are churning the things and then avoiding the MTM losses and increasing the interest income. That's how we are going to make up the -- whatever shortfall to a greater extent.
What were the reasons...
I'm sorry to interrupt, Mr. Ajmera, kindly come back in the question queue.
Same question on that I made.
I'm sorry, sir, could you please come back for the follow-up questions. [Operator Instructions] We have a next question from the line of Dixit Doshi with Whitestone Financial Advisors.
My first question is regarding the future retail. Have we completely provided or still some provisions is left?
So we have completely provided for future retail.
Okay. And in these provisions, there are some provisions of nonperforming investments also. So are we -- do we still have some investments which are nonperforming from any other corporate?
All -- 100% provision on all NCA.
Okay. Okay. 100% for it. Okay. My next question is regarding the credit cost. So we are still above 2%. So how are we looking at it going forward? Any target for FY '23?
We are -- I know we will be maintaining at less than 2%. That is the guidance that we have given to ourselves.
Okay. Okay. And my last question is -- so our capital adequacy has improved and now we are making a decent profit, and also, we are targeting this 12% to 13% of loan growth. So are we looking for any equity capital raise during the year?
We have got Board approval for raising capital to the extent of INR 8,100 crores including 81 bonds and QIP. Yes. Yes, INR 3,800 crores is the equity portion and if the market improves, we will be looking to come to the market with the QIP. Maybe in the third quarter or the fourth quarter.
But do we really need the equity capital raise at such valuation?
No, we do not want the equity capital, but we would like to bring down the government stake to at least 75%, and that is why we would like to do the QIP.
[Operator Instructions] We have next question from the line of Mahrukh Adajania with Edelweiss.
My first question is on employee expenses. The employee expenses have risen quarter-on-quarter. Now this rate rise, there should be some benefit on the employee benefit portion, right? So why would have employee expenses risen quarter-on-quarter?
Samal?
Madam, this quarter, we have provided only...
[Technical Difficulty]
I'm sorry to interrupt the management members. We seem to have muted a line. We are unable to hear.
Madam now, can you hear me?
Yes, we can. Please go ahead.
Okay. Thank you. See, the full year -- see, the employee cost increase basically on account of 2 counts. The past quarter, we have paid some performance-linked incentives that has come. But that is only for the past, which will not come in the second quarter or third quarter.
Regarding the employee benefit under AS 15, that expense and the rest [ CET ]. The past quarter, second quarter, normally, we'll provide on an estimated basis, we don't take a valuation. As you see in the last quarter, the last Q4 of the last year, we are taking the valuation. And the valuation, because of the rate hike, we didn't have any additional liability on account of income, [ graduated ]. Therefore, the cost of our delay, sir, in fact, it was negative.
But this quarter, we have negatively provided on an estimated basis, going forward, we'll take valuation. So after valuation, we'll take the net-net adjustments. So that's the reason why there is an increase in the employee cost during this first quarter, which will be leveled out when we move forward in the next quarters.
And what explains the improvement in margins? It's largely that you -- that some of the wholesale deposits would have been repaid? Or how does it -- what is the -- what are the reasons that contributed?
If you see, madam, our CD ratio has gone up from 69% to 73%, which means that we have deployed the resources more efficiently, which earlier used to have surplus resources, including the reversal for some things. But now, actually, deploying the advances. So that's the reason why the rate is better and the NIM better.
And your [ repo ] reset is not after 3 months, right? This is in the month of the rate balancing or rate hike, correct? Means for an existing repo rate loan, how much time does it take to catch up to the new rate?
Yes, it is immediately the coming months, because every level sees our reset rate. So if -- based on the policy results, on the 11th of every month we reset it. So apparently, it gets passed on immediately. We don't wait for 2 months, 3 months like that.
We have next question from the line of Ashlesh Sonje with Kotak Securities.
First question is on the SMA book. That book seems to have gone down sharply in the June quarter. So can you just shed some light on that?
SMA book come down.
Yes. Good afternoon. I'm Ashok here. With the SMA, actually, the -- particularly the large corporate borrowers, we have reduced drastically. Key accounts which were in stress, they have paid their installment one in advance, and they have -- the accounts have come out of stress. That is the major reason why the stress book has come down.
Okay. And any sense about that you may book for all loans under the INR 5 crore and above?
Same book on all loans, that is also...
Above INR 5 crores, it is around INR 3,853 that is outstanding and which is about 0.53% to the gross advances.
Okay. Okay. That's okay. And sir, second question is on the restructured book, can you give the total restructured loans for the bank, including Tier 1, Tier 2 and MSME?
About INR 21,000 crores.
Total restructured book is INR 31,396 crores, out of which the...
Around INR 21,000.
We do have. What we did was took 1 and 2 weeks, INR 21,240 crores.
We have next question from the line of [ Ashok Kamath ] with [ Squire Financial Services ].
Just a small question I have from the HR perspective. Like as you said, madam, in the pre-last -- to last question that we have increased the touch point for the MSME sector. But from the human resources point of view, how well prepared are these branches?
Because by character, the customer -- MSME customers have become absolutely very impatient. Like tomorrow, they are with one bank. Say, after 5 months, they are going to be with some other banks. So how we are going to deal with segment because the new credit formation is not happening in this segment? What is happening exactly on the ground is, like, people are shifting from X to Y, Y to Z just for an interest rate arbitrage or a processing, like that. So just wanted to have your view on this.
Yes. Rajneesh Karnatak here, Executive Director. On the MSME side, the shifting of accounts is happening and no new credit attrition is happening as credit accretion is happening. But we are handling it very nicely over the years. So we have a vertical which takes care of the entire MSME piece in the bank. And there are specialized focused branches on MSME. We have SARAL, which are the central point for processing of the proposals.
So we have a [ queue set ] here at the people side, people who have job family credit, they have been identified. They have been posted in the MSME vertical down right up to the branch level who are taking care, not only of the marketing of the MSME proposals, but also the credit underwriting and post sanction also the monitoring and the collection piece in the MSME.
So the entire gamut of MSME is being taken care of, and we have identified people with job family credit, and they are the staff who are posted in the MSME sector. And though there is not much accretion is there. But however, our book is growing comfortably, and our set is also -- in the MSME sector is under control.
[Operator Instructions] we have a next question from the line of Rishikesh from RoboCapital.
Clarification on taxes. What amount of it are we going to take in FY '23?
Is it this year?
Yes. Yes, sir. Regarding this year.
Okay. It will be roughly around INR 2,000 crores. But we have taken INR 570 crores. Full year, it will be around INR 2,000.
So earlier, we were, if I'm not wrong, we'll take almost around INR 4,000 crores to INR 5,000 crores of rate. So is it, like, we are going to divide this in 2 years?
No, it is not like that. Actually it depends upon various other factors like how much NPA provisioning, how much write-offs we are going to do in a year. So -- as on that only, it actually is how much timing difference is -- there were. So therein what -- that's an opportunity. So based on kind of INR 18,000 crores of notes that have been INR 7 crores of provision, which we have received for the current year. Based on that, this is estimated around INR 2,000 crores of DTA reversal may happen.
Okay. So when can we expect a normalized tax rate?
This current year, we are still -- we have some brushed forward losses from the earlier years that is going to be set up in the current year. So we are not expecting any substantial tax liability again. We have been -- continued to have minimum alternative taxes, although we are consisting -- as of now, it's not applicable to the [indiscernible]. So that story is going on. We are waiting for the matters to be taken in terms of, well, ideally. So whether or not we'll take a decision for early this year, we may not go for the lower tax regime, but depending upon how our distance comes in our favor, we will take a decision and approve it in time.
[Operator Instructions] We have next question from the line of Jai from B&K Securities.
On, sir, your treasury, if you can highlight what is your PV01 And where have you done the MTM?
Good afternoon, I am [ Suresh Sampath ] from Treasury. Our PV01 is INR 4.5 and MTM operation is INR 0.89. We have strategically made our portfolio -- AFS portfolio at a lower duration to mitigate the MTM losses in the coming days. We are expecting that interest rate will harden. That is why we have modified our portfolio in the first quarter of the last financial year itself so that we will be able to face these MTM challenges.
So we have already provided the MTM and coming days, we are comfortable with the present duration portfolio and our asset portfolio, though it is INR 89,000 crores to INR 90,000 crores, but it consists of lower duration treasury bills and other bonds. We will be able to exit and replenish with the higher yield coupon, so that we'll be able to generate additional interest income from this portfolio.
Right. So INR 4.5 crores, right? That is the...
Yes.
And sir, in this quarter, you had INR 270 crores treasury gains. If you can bifurcate what was the MTM hit and how much was the gross treasury gain on sale of investment?
The total -- shifting a lot is around INR 87 crores -- INR 97 crores is there. Other than that, whatever is there, that is the trading income from the securities' sake.
So there was no MTM apart from this INR 97 crores?
MTM was very minimal, which has been offset by the credit from the MTM provision provided in the last quarter. So that is why no lift on the MTM on account of additional MTM during the current fourth quarter.
Understood. Great. And some question to CFO, sir. Sir, was there any one-off in interest income either last quarter or this quarter? Maybe a chunky interest recovery or a chunky interest reversal last quarter? Because if you look at on a quarter-on-quarter basis, interest on advances has gone up very high from INR 11,000 crores to INR 12,000 crores.
No, there is no such one-off case. Basically, this design of the better deployment of the reserve is number one. Number two, we have changed the accounting policy last year, as you know, that the appropriation of the restored fastly moves towards the interest, then towards the principal. This past quarter also, we have INR 600 crores of income -- interest recovery from the NPA account has also added to the interest income.
Understood. Okay. And -- okay. Sir, secondly, on your SMA-2 book, sir, last quarter, it was just 9 basis points, which would be a very small amount of maybe, what, INR 600 crores, INR 700 crores. This quarter, you have INR 11,200 crores and slippages from corporate and around 900 plus slippages from MSME. So your SMA-2 number is not at all reflective of stress even for more than INR 5 crores corporate. Is that a right understanding?
No. More than INR 5 crores, if you see the total bookings, SMA-2 is INR 1,044 crores as of this 30th June. But slippage is something different. It is not exactly what is SMA-2 that will slip. Some other accounts also, if the 90 days credit is not coming, that will also slip. Okay. So slippage in the last quarter, corporate book was INR 1,100 crores.
Sir, I'm saying last quarter, SMA-2 was 9 basis points, which is, in absolute terms, would be around INR 700 crores, INR 800 crores. This quarter, you have INR 2,000 crore plus slippages from MSME plus large corporate. So, your SMA-2 number is not at all indicative of potential slippages. That is my question, sir.
I'm Ashok Chandra CGM, SAM vertical here. In fact, I can just add here, the slippages which you are seeing it, that INR 4,200 crores in that, the INR 600 crores has been added, which was already NPA. So NPA to NPA, there has been some development of bank guarantee. So that INR 600 crores from the corporate book, it is coming here. So that is the reason you are seeing that SMA-2 was less that time and your slippages are a little bit higher here. So that is one of the reasons. Out of INR 1,100, INR 600 is that component.
Right. Okay. Understood partly. Okay. And then last question, sir, is -- sorry, last question is INR 31,000 crores of total restructuring which is COVID plus COVID 2 plus MSME plus your earlier CDR, [ FICO], [ CAGR ], et cetera. This number is right, right? INR 31,000, this is standard...
Yes.
This is all standard, right, as of now?
No, no.
No.
This is including NPL. So total book is INR 31,396. Out of that, INR 8,692 is NPA. And the total standard book is INR 22,703.
Okay. Understood. Understood, sir. And last question, sir, if you have the loan book breakup by benchmark, that how much is MCLR and how much is reported linked and base rate or any other bifurcation that you have?
Almost 30% is EBLR.
We have around -- 33% is EBLR...
And the remaining is MCLR and CBLR.
52% is MCLR. That stays in there. The stress and the...
This stress in CBLR.
We have next question from the line of Ashok Ajmera with Ajcon Global Services.
I've got some small data points and some clarification so as to arrive at the right number. As for the notes to the accounts, fraud account is 1,223 is carried forward for the subsequent quarter. Can I know that how much has been provided on fraud account during this quarter? And this remaining amount will be within next 2 quarters or 3 quarters? Or it will -- remaining is for fourth quarter?
As well, here, again, prior discussion. I think how much is fraud account provided during this quarter. It will be, like, in March, we have unamortized fraud of around INR 120 crores that has been provided to me. And during the current quarter, whatever fraud we have declared, since we have already made adequate provisions there, we are not required to make additional provision. It was the bank's policy for all provision is to be -- can be carried for the next 4 quarters.
Okay. So coming to the INR 1,223 crores of CRAR is basically -- major amount happened because of the 2 large corporate accounts. One is INR 700-odd crores and the INR 400-odd crores. So these 2 accounts, we have already made adequate level of provisioning and rest of the provisions will be made during the current year. And majority of these provisions are already factored in our aging provisions when we are estimating aging provisions. It comes to that INR 700 crore account which I have to -- that may not be carried forward in March, because I think, provision itself -- in December itself, which would dutifully be provided.
So we hope that this INR 1,023 crore provision, which is net, be provided -- will be provided by December. So it's already factored in our aging provisions.
Sir, my second question...
Sir, I'm sorry to interrupt. Mr. Ashok, kindly come back in the question queue for the follow-up questions.
Only 1 question which were asked in the second round. I mean, you should permit me at least some reasonable time, isn't it?
Sure, sir.
Yes. My second question, sir, on IBC. We have provided 100% of INR 11,921 crores that is as per the RBI circular, Note #14, what are the chances of recovery out of this INR 11,921 crores as calculated internally by the bank, sir?
This financial year, we are looking for only -- through the cons, visibilities there. And mostly in the form of cash recovery, it will be very less because there is one resolution, which is a big resolution, but not in the form of cash. It is all the deferred -- some payments are there and some land parcels are there in that. So around INR 1,000 crore recovery we are expecting from the RBI List 1.
All right, sir. Sir, with SR -- last question on this, SR of INR 2,178 crores, is it fully provided for?
SR. 70% SR.
70% is provided for, fully provided. It was in the guidelines of the RBI.
Yes. But generally, most of the peer banks, if you look at it, they have -- in fact, they have provided all, 100% irrespective of the duration. But anyway, I just wanted -- this is a data point I just wanted to have.
And one on the tax front, we said that the amount brought forward losses under the income tax are high. So we have not yet uptake for lower tax regime under the income tax provision, which has been given. So how much of the -- it is actually, I think, about, I think, Note #18 or so. How much is the amount of those carryforward losses? And the -- and as for the new regime, even if you opt for the new regime, these -- can carryforward losses can be allowed to be to be set up? So what kind of carryforward losses these are? And how much amount of those losses are still there to be set up against the new future profit?
Ajmera-ji, we have totally around INR 1,200 crores of...
Carryforward losses.
Carryforward losses, so they are post amalgamation, which we have partially set up during the last 2 years and around INR 3,000 crores, which is left over to be set up during the current year, right. So of course, that set up -- setting up that, we are not expecting any major tax that we are going to pay. In fact, we will be paying tax on the match, minimum alternate tax, which is much lower than that minimum alternative tax of 13%. So that's the reason.
So of course, next year or not, we will be going to pay the tax in a full rate because there will not be any transfer toward [ nothing ]. So we'll take a [ visual ] that point of time. So this year, it is not required.
We have next question from the line of Rakesh Kumar with Systematix Shares.
Yes. question. Sir, just a couple of questions. Firstly, what is the amount of SLR that we have in STM book now?
INR 1,90,000 crores.
Sorry, sir. Couldn't hear you, sir?
INR 1,90,000 crores.
No, in terms of, like...
Percentage?
Percentage, 25.7%.
Okay. And there were some discussion happening that the limit can be increased. So is there such discussion happening with the -- at the IBL level or the RBI?
Yes. That is in respect of increasing the relaxation for holding in the HTM portfolio. Present limit was 22%. It has been relaxed to up to 23% until 31st of March 2023. But there is some -- delegation is going on to increase the limit to 44%. That is yet to be announced.
Okay. And secondly, sir, there are some discussion also happening around amalgamation of the smaller BSE banks, which are still, like, and there are overseas bank and there are smaller banks, seasonal BSE bank. So what is the -- what are the discussions that is happening at the industry level, if you can give some understanding on that front?
Actually, no discussions on this is happening at our end, at least. Maybe at the DFS level, it must be happening, but we are not aware of any such discussions.
We have next question from the line of Suraj Das with B&K Securities.
Most of the questions have been answered. I have just only one question. So you reported SMA book for the bank is INR 3,853 crores. If you can just let us know what is the total SMA book, which is impressive of less than INR 5 crores now.
Yes. Our total SMA book is INR 33,168 crores. Out of that, more than INR 5 crore, we have reported INR 3,852 crores.
Kindly repeat that summary again. Sorry, I lost you.
Total SMA book is INR 33,168 crores.
Okay. And how to get pulse of SMA full year, SMA to 1 end of the year?
I mean, the full is INR 10,192 crores.
Okay. And the rest is 0 and 1.
SMA-0 is INR 17,360 crores and SMA-1 is INR 5,650 crores.
Okay. Understood. Understood, sir. And one more question on the capital side. So does your number of CET1 of 10.68%, does it include the -- one thing, your credit be flat as well?
CET1. Composition of CET1.
Not composition. So I am asking that CET1 that you have said, CET1 percentage that you have reported in 10.68%. Do these numbers include 1Q back as well? Or this is excluding 1Q back?
I'm not able to hear you. What...
Your voice is breaking.
Any better now?
Sir, please use the handset if you are speaking on a speaker phone or on an earphone, your voice is not very clearly audible.
Okay. Am I audible now?
Much better. Go ahead.
Sir, I'm asking that the number that you have reported for CET1 which is INR 58,887 crores, does this number include, continue for increased tax? Or it excludes your [ expenditure ] tax?
Again, your voice is not so clear. The right point, your voice is breaking. So we can hear INR 58,887. Just what you were asking. What is that component you are asking? You're not audible.
I'm asking does this number include, one, the appointed PPP tax on INR 1,558 crores?
I think offline, we can talk.
Yes. You can connect to us on off-line, and we will discuss this, because we are not able to hear you properly.
Okay. Okay. Okay. Yes, I'll answer this question. No, he's asking about whether we're including quarterly profit. No, we are not including the quarterly profit in that.
We have next question from the line of Mahrukh Adajania with Edelweiss.
Sir, what was the slippage in [ CMVS ]?
[ CMVS ].
We see different slippages.
This year, right now, we don't have.
We will tell you the figures. We don't have the figures right now.
We have next question from the line of Pranav Tendolkar with Rare Enterprises.
So out of the total standard restructured book that you indicated around, I think, INR 31,396, right? Out of this, you said INR 22,703 is standard, right?
Yes.
And rest of it is -- has already set with T&D.
Yes. Yes.
Okay. So in this quarter, how much of that is set with T&D out of the total -- full-crore slippages, how much of total has come from restructure?
Restructuring, INR 1,200 crores.
Right. Right. Right. Sir, right, what is your total -- and so sir, with then -- with this INR 31,396 restructured book that you said, which includes all the COVID and prior to COVID, the thing -- and restructuring everything else. There's nothing, unless from seasonality.
Hey, it is total, total restructured book, including 1 and 2.
Right. Sir, out of total of your loan book areas -- how this loan book, in the existing 57%, so including the DNR breakpoint? Total of the advances, how much percent of advances are linked to the floating rate?
Floating rate...
Floating rate, that is -- all...
90% is floating rate.
90%. Right. Right. So also, I missed, if you already mentioned, what is the outlook on the view going forward?
We will be at 3.10.
Right. And advances book also similar to this quarter? Or will it pick up?
Advances growth will be around 12% to 13%.
Right. Sir, last question from my side. Just the change and recovery guidance for the full year, along with the current cost guidance and if you can just...
The recovery will be around INR 15,000 crores. And we are looking at slippages as to the extent of INR 13,000 crores. Credit cost will be less than 1.7%.
Thank you. Ladies and gentlemen, that was the last question. I would now like to hand the conference back over to the management for closing comments. Over to you.
Thank you, all of you, for joining us in this tele-con and thanks for the questions. We would like to tell you is that the bank is well poised for growth and profitability with all-round capabilities built during the last few years. The economy is also returning to the growth part. The bank will be taking the benefit of all the drivers for new opportunities.
We have also done a lot of activities and a lot of new steps in the technology field also. The bank has recently launched the Metaverse and has also launched the incubation center at our Hyderabad Center. We have taken a lot of steps with regard to STP journeys in MSME and agriculture.
And I'm sure with the guidance, I conclude that we are grateful to the analysts and the investor community for their continued support and feedback and -- which will help us to take informed decisions in our journey. Thank you, and thanks a lot, all of you.
Thank you very much. Ladies and gentlemen, on behalf of Union Bank of India, that concludes this conference. Thank you for joining with us, and you may now disconnect your lines.