FY26 credit beat 19.44% vs 12-15% band.

On ECL provisioning - you have ₹1,252 crores provision built. What will be the total quantum of the ECL? Will you complete it in FY27/FY28 or take the benefit of the 5-year transition?

If you look at our calculations, it should be in the range of ₹2,500 to ₹3,000 crore currently, as per our estimates. So, around 50% of that, taking lower band of 2500, we have already built in. We have still 5...6 quarters rather, because in June'27 we have to go live. This quarter we have also again built around ₹200 odd crore towards ECL. So, going by this trend, if profitability supports, everything supports, I believe, we should be near to our requirement by the time it is implemented. And if at all not, then probably within one year, I think we should be in a position to achieve what is required. So, I don't think that bank will need longer period of 5 years' time which is permitted because we have already started building and I expect that by June we should be near to the numbers required.

On the new labour code - have you calculated the impact? I don't find any hit in this quarter; employee cost is lesser than last quarter. How much impact do you see?

It's very insignificant because we have a very small number of contractual employees. We don't have a large number of contractual employees. It is very insignificant. May not be even ₹25 lakh.

On capital raise - you did QIP of ₹2,000 crores in March'25 quarter and government holding is still 90.95%. Any plans for further QIP or OFS by government to reduce holding?

There are two ways - QIP and OFS. I think OFS is already government is planning. 2 banks it is already done, 2-3 banks are there in the pipeline. We may see that anytime there will be OFS also. As far as requirement of capital is concerned, we are adequately capitalized. Otherwise, if we add our 9-months profit, with these profits itself we are more than 18% CRAR. But nevertheless, we have to achieve the requirement of SEBI also by bringing down the shareholding of the government to 75%. We have already taken board approval, AGM approval, all approvals are in place. At the right and opportune time, we will come to the market for QIP also. We have taken approval of ₹2,700 crore from the board.

On treasury book - our treasury income is little better than last quarter but overall the treasury income contribution is coming a little down in overall banking profitability. How do you see treasury behaving going forward?

If you look at our treasury book, we have been maintaining this book almost at the constant level. We are not outgrowing. March to June we have not grown our treasury book, that was in the range itself because that time the yield was low. After June the yields have again spiked. So, we have started building up in some SDLs and all that. Wherever we are getting little opportunity, through OMO we are exiting also and we are buying OMO also. Our yield is improving and our modified duration is around 3.6. So, we are well placed. As far as treasury book is concerned, we don't foresee any challenge, as far as income from the treasury book is concerned because very cautiously we are investing and liquidating the treasury portfolio.

On NIM - you've performed very well at 3.08% against your guidance of 2.9 or 3. Going forward, with deposit liability mismatch and other reductions kicking in, do you think NIM will further improve in coming quarter to finish FY26?

I think NIM will continue to be in this trajectory only because if you look at the pace of reduction in the deposit rate, that is not in line with the reduction in the Repo rate. Still deposit is at a very reasonably high rate, not at lower rate. So, I believe that the NIM should be in the range of this trajectory only going forward, in the next quarter.

On corporate SMA - you mentioned ₹316 crore in SMA-2 for corporate. Is it one or two chunky bigger accounts which have slipped to SMA-2 or a variety of corporate accounts? And by January, is this regularized with no chance of NPA slippage?

The total is 511, SMA-2 is 316. It is not one or two account, there are few accounts which are in SMA-2. But if you look at the SMA-1 is 0. So, there are certain accounts which were there in SMA-0 they will come back to SMA-0. Because of some reason they have come to SMA-2. No, no, not slipping into NPA.

On growth - PSU banks are the flavor of the season in stock market and credit performance. What should we look forward from UCO in the quarters to come and for FY26?

If you look at our credit growth and composition - retail is growing more than 20% for last 4-5 quarters. Within retail housing is 18-20%, car loan growth is 40-50-60-70%. Retail is growing, each segment is growing. Agri quarter-on-quarter consistently we are growing - this quarter 23-24% and previous quarter 17-20%. MSME for last three quarters is more than 20%. Why is this growth coming? Last year we revamped our underwriting standards. We started Retail hubs and MSME and Agri hub. Now decision making is happening centrally, our TAT has improved, quality of underwriting has improved and service delivery time has improved. So next quarter 4th quarter, similar trends we will see and we will achieve our guidance which we have already given at the start of the financial year.

On RAM margins and product profitability - sustaining RAM growth, what are margins in Home loans, Auto loans and other products? Where will we grow well - education, second hand cars? Can you highlight which products will lead to betterment vs competition?

Our growth has come mainly from RAM segment and even then our margins have improved. Our margin used to be 2.8% NIM. Now, we have already crossed 3 and consistently above 3. Last quarter 3.03 and this quarter 3.08. Car loan growth is around 70%. We have revamped our entire product profile of Car loans, Education loans, Home loans, Agriculture loan. MSME - more than 30 products we have launched in last 2 years. Better NIM is coming from MSME segment, Education loan, second hand Car loan, Car loan because when we take car loan, we have the opportunity of taking his CASA account also - salary account, current account, family accounts. So we don't look at purely a transaction. We look at the whole bouquet of products. In last one year itself we have digitized 330 journeys and built a book of around ₹15,000 crore in digital journey. More than 50% FDs are opening online through mobile banking. So all this is adding to reduction in my cost also.

Out of 100 loans generated, how many accounts are converting to other products on cross-sell?

Our endeavor is to get at least 1 more product from each customer. But definitely not every customer, maybe 40-50% of the customers we are able to onboard on some other product.

On geographies - where are you stronger? Behavior on acceptance of products? Penetration in existing geographies vs need to expand to new geographies and branches?

If you look at our strength currently, more than 30%+ branches are in East and Northeast and similar in North. So, expansion is concerned, we are more focused for expansion towards western and southern part because there our presence is slightly less and they are the more contributing states in the GDP of the economy. We are planning to open branches in those geographies where the GDP contribution is higher. Recently, the Ministry of Finance has announced a comprehensive salary package for the central government employees where our bank is also participating and we will be opening now more and more salary account of various central government employees as well.

On digitization spend - how much will you spend over next 12-24 months other than what you have already spent?

This year we had kept a budget of around ₹1,100 crore and around ₹700 crores + is already spent. Next year teams are already working for the plan. I believe next year because now majority of the projects which we thought of in last 3 years almost are nearing completion but still there is a lot of scope for further improvement. I believe next year also it should be in the range of ₹800-₹1,000 crore because many projects are still in pipeline - omni-channel, Forex card, supply chain, CMS, CASA back office, DMS and on cybersecurity also enhance tools. We are planning to convert our call center into a profitable center through use of digital journey. And robotic process automation is also in the plan.

On East/Northeast resources - minerals and Agri are abundant. India becoming a manufacturing hub will need captive resources. Are people approaching you for working capital or term loan facilities from resources companies?

We have not seen much traction in this part; we have not seen as yet. Maybe in the next quarter or so we will get some good proposals in that. But till date we have not got any bigger big-ticket proposal in this area.

How is the international book shaping up? From a future point of view with lowering interest rates globally - Singapore, South East Asia, GIFT City - on a fully hedged basis, how is demand?

International book is steadily increasing. Deposit growth in international is around 18% and overseas advances around 12% growth. Proposals are coming and the only challenge is in the pricing. So, we are taking a very calculated call where we have a good pricing and some margins so we are able to generate revenue for the bank. So, only those proposals we are taking. That is the reason growth is around 12% only in advances. We are raising resources in the overseas market - that is not a challenge but lending at a profitable margin is a challenge. With opening up of M&A also, new opportunities will be there and I expect the margins may be better in the times to come.

Kamble Sir, how much is unavailed credit from sanction today and what is the pipeline for the quarter, specifically for corporate credit?

Sushil ji, in case of corporate credit, almost ₹4,000-₹5,000 crores are unavailed, in pipeline almost ₹8,000-₹9,000 crores in the pipeline. Total ₹10,000-₹12,000 crores available in the corporates.

What is the exposure between SIDBI, NAFID, NABARD?

Nothing. Zero. All exited. IBPC also exited. Total zero.

On NBFC book - what is our policy on NBFCs? Are we choosy/rigid? Some smaller NBFCs lending to low-cost housing offer 9.5-10.5% yields even if rated BBB-. Are we thinking of liberalizing for smaller NBFCs?

Ajmera ji, so far as NBFC or any other corporate is concerned, MSME, retail, bank looks at every proposal from bankable angle. If the proposal is bankable, we don't say no even if it is a BBB or BB but if they have an established track record, everything is there and it fits into our norms. So we don't say no to every proposal. Every proposal is examined on a case to case basis. So, there is no go to anyone like we will not go with this NBFC or this corporate or this MSME segment.

What is the total NBFC exposure as on date? And what is our experience on those accounts?

NBFC, if you look at our exposure is around ₹27,000 crore to NBFCs. It works out to around 12% of our total book. There is no slippage in those accounts except in MFI there was one slippage earlier but our overall MFI exposure is now only less than ₹500 crore. Not even ₹440 crore. If you look at one year back, it was around ₹1,300 crore, now it is ₹440 crore. So, that is also under control.

On Gold loan - color on Agri and non-Agri portfolio. With recent liberalization on collateral up to ₹2 lakh, what is the position? Are we bullish? What is the LTV?

Our Gold loan portfolio is around ₹15,000 crore only. We don't have very big exposure in the Gold loan. Of that, around ₹4,000 crores in retail and around ₹10,500 crores odd in agriculture sector. In retail, LTV should be in the range of 25-30%. In Agri, we will be around 15-20% in LTV. The base price taken is an average of some period. So the base price and current price itself the margin is there and over and above that we keep another margin. So we do not expect any issue as far as LTV is concerned. SOP is there and everything is in place. The sale happens according to that only, in case an auction is to be done.

Views on the current geopolitical situation - duty things, sanctions, Iran, Russia. Do you see major concern on your portfolio? Any segment exposed to high duties, exports? What quantum can be affected?

The geopolitical scenario is impacting not only UCO Bank but all banks, even customers also. So far as overall impact, I believe we have a strong consumption economy. And if there is an impact on the export front, I think domestic is able to support the surplus quantity available of the products. If I have to look at our banks' exposure, we have around ₹2,000 crore of export credit exposure and of which only 5% is in respect of countries where some tariff and all these things have happened. So, it is not a major one; around ₹100 crore of only exposure for the bank in those countries. So, not much of worry for the UCO Bank because our exposure to those countries is very limited.

What percentage of your deposit book has been repriced so far? And what is the direction for the Net Interest Margin for FY27?

Around 75% of my deposit book has been repriced. Remaining some portion will get repriced in this quarter and maybe one-tenth of the book will be repriced in the first quarter. So, by first quarter entire book will be repriced. On margin front, it again depends upon the Repo rate cut in the times to come, how it happens. Still, we do not know. In February, there is an MPC, in April there is MPC. But given the scenario that there is no rate cut and the liquidity conditions remain same or rather improved, I think the NIM should be in the range of 3% in the next year also.