Narrative reset: CASA / rate-cut transmission anxiety (Q1FY26) faded; ECL Rs.

In the fourth quarter NIM did not decline like for everyone else, but in the first quarter there is a decline of 17 bps. How to look at the second and third quarters? Will margins decline be less steep than first quarter? Also on PSLC - some banks have stopped booking PSLC after RBI circular, but you still earned PSLC income. Will PSLC income continue next year?

March quarter NIM was maintained at 2.73. We could control through our cost of deposit. Whatever the 100 percent basis points we have impacted, that of course, out of that 50 basis points, the impact is already reflected in the current NIMS but another 50 basis points reduction in the RLR is impacted only one month, the remaining two months will impact in this current quarter. Overall I feel that, our NIM may not go below 2.5 percent but we will be able to maintain that around the 2.5 for the next .... this current quarter but we see that the slowly, that if no further rate cuts are there, subject to that, if we may see slowly, that 2.2.... this NIMS may gradually improve in the thi rd and fourth quarter. On PSLC: as against requirement of 40 percent of a priority sector, we are at 45.63 percent as against agriculture credit of 18 percent , we are at 23.25 percent, as against a small SMF, that's a small and marginal farmers target of 10 percent, we are at 16.57 percent. It is not PSLC income is stopped for this bank, it will continue not only this year, the next year or the next year also.

NIM 2.55 this quarter, if Q2 reduces to 2.5, guidance says 270-280. Is that exit margin or can you manage 275-280 for full year FY26? Also, wholesale deposits - rates would have eased 25-35 bps but cost of deposit has not seen any downtake. Why is that so? Also, one-off item of 1883 crores in notes to account for consolidated Canara Bank - looks like it pertains to RRBs?

At this moment because in the market conditions, still we are hearing from various corners that there may be another one or two rate cuts. If there are further rate cuts, even getting it whatever we are given the guidance that will be a difficult task for us but if there are no rate cuts, we will try to improve our NIMS in the third and fourth quarters. On cost of deposits: up to March, there is no reduction but whatever we have taken the deposits for a period of three to seven or six months or nine months or one year, that can be repriced only when it comes for that expiry date, due date. The cost of deposits, we have seen that March to June, it is maintained at 5.74. Once the June 7th, RBI has reduced to 50 basis points then on retail term deposits also we have reduced to 50 to 60 basis points. That impact you will see in the second to third quarter. On 1883 crores: that is APGP sir, Andhra Pradesh Grameen Bank. That bank went to the Union Bank. It is only on the investment, whatever you have made that investment, on that book value only, investment face value only, it has happened. It is exceptional entry, it is reflecting it.

On repo rate cut - what happened in April, when did we pass it on? Immediately the next day or after three months? On savings deposits - cut by 25 bps in May and 20 bps in July?

Our ALM date is 12th every month. So whenever that rate cut happens, whether it happens on 5th or 6th or 7th or 8th, if it is below before 12th, so 12th it will be passed on to that because ALCO committee meets on every month 12th and it will be passed on from 12th effective. In all the three rate cuts whatever it has happened on the first week of that respective months, it has passed on to that borrowers on the 12th day itself of the same month. On savings deposits: it is a 20 plus 20 sir, it is not 25 and 20. Initially we have cut to 20 basis points. By that time actually, we were the highest paid interest on among all the banks. Then to bring at par with all other banks, everybody is paying at 2-2.5. We also has mad e it our rate of interest at par with all other banks and made it 2.5.

CASA has gone below 30 percent - possibly for the first time in last 4-5-6 quarters. What are we doing on CASA front? Target guidance is 32 percent. How will CASA improvement take place? Also, SMA2 numbers - two large accounts a real estate account and a state government guaranteed irrigation project. Can you update? Also, treasury income gone up to 1,993 crores vs 995 crores - can you give colour on treasury operations and AFS reserves? Also, recovery from NARCL and NCLT updates?

Every March, we get institutional deposits. In those branches, we get current deposits during March every year, almost 20 to 25 thousand crores, that they will utilize it in the April month and May month. That's why generally in first 2-3 quarters it looks that the CASA growth is little sluggish or negative. But that will be compensated when it comes for the next March again. Individual deposits are consistently growing and it is growing more than six percent. We are sure that again, the next quarters and all will be there. I am sure that we will be above 30 percent even at the end of the financial year. On SMA2: One account is real estate account from the Bengaluru, that is mostly continuing for the last six quarters in the SMA2. Exposure is around 2000 crores. Then one state government guaranteed irrigation project exposure of 3000 crores. These two exposures, 5000 crores or SMA2 is only 1800 crores. 100 percent, there is no chance of slipping to NPA sir. On treasury: the first quarter was a special quarter as far as treasury income goes, where that OMO support was there. Out of that, we gained a substantial income of around 500 crores, which may not be there this quarter. On NARCL: We identified eight more new accounts, which is under different stages that will continue to follow it up with them. That is around 4000 crores. Our board has approved some OTS agreements for the almost 4 big proposals that is worth of 1200 crores. This quarter definitely will be much better than the first quarter in the recoveries.

MCLR rate has come down by almost 30 bps. To what extent is it already reflected in actual yield on advances, or is there still a lag? Also, other provisions of 449 crores - does it pertain to provisions on those large SMA accounts?

Our MCLR book is around 45%, madam. Our MCLR has come down from 9.10 to 8.75 recently. Partly it is already reflected. Partly may continue because this depends on our deposit rate. It will come in the lag only, any reduction, because one-year MCLR resetting may happen every year. So whichever the accounts are due further to completing that one year, only those accounts it attracts. Whenever you reduce that MCLR, whether you reduce or increase, complete transformation, it takes one year, madam. On provisions: whatever the standard provisioning, it is required 0.42 and all those things. So beyond that, actually, that is required only 3,000 crores but beyond that, 1,200 crores is extra what we have provided.

On OpEx - first quarter is always a slight decline but we have not seen Q-on-Q decline this time. How to look at OpEx run rate for the year? On margins - can you give colour on recovery in following quarters as bulk deposits reprice? On growth - any discussions with the Government and push on growth front for PSU banks?

OpEx: Generally, when you are investing every year 1,000 crores on the technology, so every year you see a little bit 7 to 8% growth will be there in the operating expenses. Since we efficiently manage our operations, especially we don't pay too much money on DSA-sourced business. That is only 16% in our new business, whereas all other banks are paying very heavily. If you see our cost-to-income ratio, last month in March, it was around 47.55%. Now it has come down to 46.77%. On margins recovery: In our bulk deposits of total 4 lakh, 25% will be on 3 months, 25% will be on 6 months, the remaining 50% may be in one year. So first 25% already we might have repriced by this time. The second 25% will be repriced in this quarter. To that 50% of that bulk deposits can be repriced before the end of September 30th. On government push: Government is keen on showing a higher growth both in MSME and the Agriculture. We want to grow much bigger in the MSME sector especially. Overall whatever the growth guidance we have given 10 to 11% and I am telling you minimum 12% we can grow easily overall credit. And within that credit corporate may grow at 10% and our RAM sector is already growing at 15%.

Project financing provisioning kicks in from 1st October. Have you made provisions for that in this quarter, or will provisions be in 3rd quarter? Also on ECL implementation - will it come this year and are we shoring up PCR for that?

In the guidelines they have given that all the projects which are coming to the financial closure and implementing in the stages up to September 30th, these guidelines are not applicable at all. Any project finance which is financial closure is happening only after 1st October 2025, only those projects that needs that additional provisioning. Remaining all projects which are in the various stages will continue with the existing provisioning. So there is no demand. There is not required that we have to provide additional provisioning during this quarter. On ECL: we are prepared with that but we don't know when it comes. It's only RBI regulator has to come out with that dates and all. But we are well prepared for that. We don't foresee any pressure on that ECL. Even if the entire thing has been implemented, absorbed that entire provisioning in the 1st year itself it may not even... we will not, we will be much above the 14% of our CRAR.

Any interest on IT refund this quarter? On PSLC, gold loans - is direct Agri beyond gold loans? Also, recovery of NPF from return of accounts - what run rate can we see? Also, selling stake in Canara HSBC OBC and tying up with LIC - will you tie up with more insurers or stay exclusive with Canara HSBC?

IT refund interest is a small amount under 3 to 400 crores. That is every quarter we will have that much little bit. On PSLC gold loans: the gold loans it is not portfolio. Whatever the loans, gold loans up to 2 lakhs you are sanctioned and classified as an agriculture was thought of that reclassifying that as a non-agriculture. In the first quarter we have kept out of that bucket. Now the RBI has classified that there is no bar in classifying such, voluntarily if somebody has given that gold as a pledge, as a collateral also agriculture can be classified. On recovery: this time this quarter will be much better than the June quarter sir. We expect that much more better recovery will come in this quarter. On insurance: we want to give more opportunities to our customers so we have onboarded LIC in addition to our own subsidiary Canara HSBC. At this moment we are not thinking of onboarding any other.

Are you expecting two rate cuts in current financial year - towards latter half or one each quarter? In case there are two rate cuts, where do you see the tenure G-Sec? RAM and retail growing well - are these numbers sustainable quarter on quarter? When do you expect the monetization of both divestments - second half or current quarter? What is status of Can Fin Home - divestment or growth? Technology initiatives - anything new in pipeline? What measures on human resource for digital initiatives?

I have not told that I am expecting two rate cuts sir. I am hearing from various market people that feelers are coming. One rate cut definitely it may happen but whether it happen in August or October we are yet to see. On G-Sec: Mr. Majumdar said it should be around 6. On RAM growth: first quarter generally you see a little slow growth in the credit. But what we are growing at 14.9% RAM sector. I am sure that we may be able to continue that range at 14, that means around 15% growth in the RAM sector. On divestments: One will be in this quarter sir. If subject to SEBI permission, the one will be in the next quarter. On Can Fin Home: we are looking at further growth sir. My minimum expectation is 1000 rupees. At this moment we are not thinking of any stake sale in that Can Fin Home. On technology: We are working on now cyber security measure. Comprehensive cyber security platform we are creating it. And recently we have also launched a loan against mutual fund end to end digital transformation. By the end of this March 2026 entire our RAM portfolio we want to convert into a digital platform. We want to grow big in the credit card also within the bank. We want to strengthen our Canara Bank Securities Limited. On HR: Recently we recruited exclusively 120 people only for IT. And recently one month back we concluded the interviews for 60 specialists at a little higher cadre. These 60 people have been recruited on contract basis in three months with the market demand packages.

What is the breakup of the slippages into retail SME in profit? And the total outstanding restructure book as on first quarter?

650 crores is agriculture, 400 crores is retail, 1000 crores is MSME. The restructure that RF1, RF2 and all those things now it has come down drastically. Now outstanding is only around total it is 11,000 crores. So 7,000 crores is in standard asset, 4000 crores is in NPA.