Q4FY26 absorbed the Rs. 646 crore fraud upfront.

Just on Slide 52, thank you for giving the breakup of the slippages. Just wondering what is the like-for-like number on the -- other than MFI slippage in first quarter of FY '25?

Other than MFI, the slippages are INR1,972 crores, right? So, it's across the various product lines which we have. We, of course, saw an increase of about INR350 crores from the previous quarter. But I also mentioned that we had one corporate case, an ATM service provider company, which slipped into NPA during the current quarter.

Your thoughts on, say, unsecured MSME because one of your peers has called out that there is a rising delinquency here. And also in this quarter, I see higher delinquency in the credit card portfolio. So, anything there?

Credit card, of course, it has been very range bound. Of course, we saw some increase during the quarter, but I would say that it has remained quite stable over a period of time. To your other question of unsecured MSME, of course, there we are seeing credit cost, which is broadly similar to the overall credit cost, which we just quoted a while ago of about 2%.

So, on margins, there are a lot of moving parts from here, right? So, MFI is coming down, there are actions we are taking on the funding cost side. So how to think about margins from this quarter onwards?

So, we would see definitely some more impact coming into Q2 because of the rate transmission, which is yet to happen completely. But as Vaidya mentioned that down the line, we would also see benefits from FD reduction coming in, and that should reflect in cost of funds coming down more sharper in coming quarters. So, we feel that by Q4, margins should broadly restore back to what we posted last quarter.

My first question is on your capital raising. So you have raised INR7,500 crores. Obviously, the capital is yet to come. Any covenant changes which have happened in that? And is there any risk that you see from the investor side that possibly this capital might not come or there could be a delay in that?

No, we are not seeing anything at this point of time. Not at all.

On your credit cost. So where do you see your overall credit cost settling for the full year? Secondly, your cost-income ratio also has come down in this quarter to about 69%. Where do you see your cost-to-income ratio settling over the next 3 quarters?

I thought credit cost we discussed earlier. I mean, discussed meaning I had a side talk with Sudhanshu, like 2% to 2.05%, I think, for this year call it like 2.05%, that's our best guess as we can see today. The number you're seeing 69% is actually, has treasury income also into it. So, actually, if you strip it out, you'll find that cost income has gone up this quarter.

While you alluded to the fact that the slippages increase overall was across segments of products, but any customer cohort or any category of customers where we are seeing an increase in slippages? Or is it that certain customers have slipped where there are multiple linked accounts?

So nothing of that sort as such, but if you take out that ATM service provider, then the increase is about INR200 crores for the quarter, right? I'm saying -- and sequentially, if we take out that ATM service, the increase is about 9.5%. So, while it has increased, but we feel that it's not that kind of large increase, which has come through.

Particularly on the opex front, given this year, we see most of the banks are showing improvement on the operating expenses growth. Can you help me understand over the medium term, not in FY '26, but in FY '27, '28, how do you expect the operating expenses growth versus your advances growth? And where do you expect the cost-income ratio to settle over the medium term?

So Himanshu, thanks for the question. So operating expenses, we will continue to sort of moderate, and it should stay in the range of about 11% to 12% that kind of growth in the near term as well. And we have already guided on cost-to-income ratio of 65%, which we are targeting for FY '27, but still hope and belief is that we should try to come in there.

But once this segment will normalize, will you start growing this piece again what -- this piece again in FY '27?

It's an important question. Let me answer that. So the answer is, yes, we want to grow it. In this case, our own thinking is that probably it will bottom out at about INR7,500-odd crores. It's currently about INR8,500 crores. And then from there on, wherever industry grows, we'll probably keep in line with the industry.

I just had one question on repo pass-through. So, let's say, the repo rate was cut on 7th or 8th June, when does that pass-through happen on your EBLR book?

So that pass-through to a great extent will happen in Q2 on the June cut. And I would say some bit of repo transmission for the earlier cuts would also have an impact in Q2.

So then -- so Sudhanshu, then my question is now we are 5.7% NIM, we want to go in the next 3 quarters to 5.8%. Obviously, 2Q will be lower. How much more do we need to cut our TD rates by to reach that?

No, no. We assume where we are currently. That's what we think because capital is also coming.

This is a more qualitative question on credit growth. Very few of the banks have been able to manage this growth in 1Q. So I wanted to understand June, July trends and if there are any segments that you want to call out that can drive the recovery from 2Q onwards? And also general credit environment, are you seeing any stress buildup in any segment, which wasn't there in 4Q?

So, we have actually put out how this growth is coming. So, if you take a full 1-year Y-o-Y, you could see that INR22,000 crores has come from business finance, which is basically wholesale banking loans, business banking, working capital, CV/CE, etcetera. And then INR5,200 crores is coming from vehicle loans growth and INR8,400 crores is coming from mortgages growth.

Right. And sir, just on margins, right? So, this quarter, let's say, we have a decent 60%, 65% fixed rate book. And let's say, 50 basis point yield compression has actually resulted in 25 basis point yield NIM reduction, right? Similar things could happen in Q2, right?

Yes, of course. I think you got it right. That's why we pointed out that, you could have a situation where we, if you remember right at the beginning, I pointed out that your Q1, Q2 will go through this phase, where income will come down and cost of funds will not have come down proportionately. But Q2, we expect our NIM to come down.

Right. So incremental is very limited 5, 10 basis points because there is a bit of a dichotomy here. We have multiple banks, NBFCs, big and small saying there are some degrees of risk that are watching certain segments, MSME, some CVCE, microfinance is an ongoing issue. But your commentary seems to be reasonably sanguine.

No, I generally believe your concern is a valid concern because if we give you a 50-bps shock, like tomorrow if we came back to you by end of the year and said, "Oh my God, it's not going to be 2% or 2.05% and it's going to be 2.55%, right? Now do we think any product of the bank would take us that zone? The answer is no.

Fair enough. And my second question is on the MSME side. Is there a change in the pace of disbursement on the MSME front? I mean I'm assuming LAP would also largely indirectly be MSME financing.

I know we said this many times in this call, has come about and other people are saying this and pointing out some concerns. Well, we also want to be very reasonable, but we are not seeing any material slowdown or anything like that. But you see for our overall business finance book, which has wholesale loans, wholesale loans has grown, and the rest of the book is muted only.