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00:00Thanks so much for tuning in. We are joined by Mr. S. L. Jain, the CEO of Indian Bank
00:10for a quick chat post the first quarter numbers. Sir, thanks so much for joining us. I would
00:15like to start this conversation by touching upon the topic of deposits because that is
00:19something that has been troubling the banking system, especially in this quarter. So your
00:24deposits are up 10% yoy. Are you comfortable with that growth at this point of time? And
00:30what's your target like for FY25? At the beginning of the year, we said that in the deposit will
00:36grow between 8 to 10%. In the first quarter, we have grown by 10%. Out of 10% deposit,
00:42the CASA growth is 6% and the retail term deposit growth is 12%. And you see our last
00:48one year that you will see the deposit growth and credit growth is same in absolute number.
00:55We have grown by 60,000 crores both on the deposit and both under advance. So incremental
01:00CD ratio is we are maintaining 100% and as a result, over the LDR, which was 77 has become
01:0779. But we raised the deposit based on the need because we are having 44,000 crores of
01:14SLR and our LCR is close to 120%. So going forward also based on the need, we will raise
01:20deposit on the market. Right. Mr. Ten, your loan growth is up 12% yoy. What emerging segments are
01:27you targeting since you mentioned in the previous quarter? So at the beginning of the year, we said
01:35that our loan growth will be 11 to 13%. In the first quarter, we have grown by 12%. And you
01:41know, for my bank, around 62% is a REM, retail agree in MSME and remaining 38% is a corporate.
01:50So the retail will continue to focus on housing loan, auto loan, dwell loan. In agree, we will
01:55continue to focus on investment credit. Again, the dwell loan, agree allied. In MSME, of course,
02:02micro, small and medium enterprises. In corporate side, we are growing 9%. You see that standard
02:08corporate growth is 10%. Here, there are a number of sectors on which we are funding.
02:12We are funding to infrastructure, road, power. We are funding to smart metering. We are funding to
02:21city gas distribution. We are funding to warehouses. We are funding to metal. We are
02:27funding to food processing. So number of sectors. We are funding to cement also. So where the growth
02:34is happening, we are funding. Sir, slippages too have increased in the first quarter. And what I
02:39saw from the numbers as well, most of them were coming from agriculture and MSME. So what exactly
02:45happened here? And what is the outlook like on slippages and asset quality going ahead?
02:50So first point is our slippage was 1928 crore and where our recovery is 1937 crore. So our story of
02:58recovery more than slippage is continuing, first point. Second point in terms of percentage,
03:03it is 1.5% is against the 1.57% of the last year. So in the first quarter, there are three,
03:09four factors. First is the seasonality is involved. Second, because of the heat wave.
03:14Third, because of elections and all. But we are not happy with this 1928. We already recovered
03:22312 crore. So the recovery will be, since the recovery is after 30th June, so it will come in
03:28the next quarter. So going forward, now we are maintaining 95% of the collection efficiency,
03:34the slippage should come down going forward. But our story for recovery more than slippage
03:38should continue. RBI came up with draft LCR norms couple of days back. So just want to
03:44understand the impact of that on your book. So RBI came out with a draft guideline and the
03:49two things have happened. They have increased the risk, the runoff factor on the deposits,
03:54so by five BIFs, because wherever the customer has taken a mobile banking and internet banking,
04:01he can draw the funds anytime and therefore you should have to have a liquidity for that.
04:05At the same time, in case of need, whatever HQLA or investment you are having, you have to sell in
04:10the market and for that you have to apply the discounting factor. These are the two major
04:15reasons in the new guidelines and we have analyzed our position and there may be impact of five BIFs.
04:22So we are currently having 120% of LCR, so it can come down to 115%. Of course,
04:30it is all manageable range. Okay, sir. Thanks so much for joining in. It was pleasure talking to
04:34you.