ICICI Bank Ltd (IBN) 2014 Q4 法說會逐字稿

Ladies and gentlemen, good day and welcome to the ICICI Bank's Q4 FY14 earnings conference call. As a reminder, all participants' lines will be in the listen-only mode. And there will be an opportunity for you to ask questions after the presentation concludes. (Operator Instructions) Please note that this conference is being recorded.

I now hand the conference over to Mr. NS Kannan, Executive Director of ICICI Bank. Thank you and over to you sir.

Thank you. Good evening and welcome to the conference call on the financial results of ICICI Bank for the quarter ended March 31, 2014, which was the fourth quarter of FY14. In my remarks this evening, as always I will cover the following areas. One is on the macroeconomic and monetary environment; then we will move on to our performance during the quarter, including performance on our 5C strategy; then, we will be talk about our consolidated results; and finally, we'll also give our outlook for the full FY15.

So let me start with the first part on the macroeconomic and monetary environment during the fourth quarter. During FY14, as we all know, we saw significant volatility in the currency markets following global developments, as well as certain structural domestic concerns. However, through the year, developments such as the improvement in the country's current accounts deficit due to curbs on gold imports, measures to attract NRI deposit flows and strong FII flows in Q4 of 2014 have resulted in strengthening of the exchange rate in the fourth quarter.

The rupee actually outperformed other emerging market currencies during the fourth quarter. The improvement in FII flows also resulted in an improvement in the equity markets with the stock market index, BSE Sensex, increasing by 6% during the fourth quarter. (technical difficulty).

RBI has reiterated its focus on maintaining a disinflationary path and has indicated targets of 8% CPI inflation by January 2015 and 6% CPI inflation by January 2016. RBI has also mentioned that it will look through the transient effects on inflation while deciding the policy rate changes. The current monetary policy stance, as articulated by RBI, may result in policy rates remaining elevated with corresponding implications for market rates. The yield on government securities remained at about 8.8% to 9% levels, similar to what we saw in the beginning of Q4 of 2014.

Coming to the banking sector, the non-food credit growth for banks, it continued to remain moderate at 14.2% as of April 4, 2014. Growth in the total deposits was 15% on a year-on-year basis as of April 4, 2014, including the impact of increased NRI deposit flows during the year. Banking sector asset quality challenges also persisted with about 44% increase in the CDR referrals, that is corporate debt restructuring mechanism, in FY14, along with elevated levels of additions to non-performing loans.

With this background, let me now move to our performance during the quarter, including our progress on our 5C strategy. First with respect to credit growth. The Bank continued to adopt a calibrated approach to growth given the developments in the environment. Accordingly, our domestic loan portfolio grew by 14.8% on a year-on-year basis as of March 31, 2014, driven primarily by retail business. Growth in the retail portfolio continued to be strong and improved to 23% year-on-year as of March 31, 2014, compared to 11.4% as of March 31, 2013. This has been driven by growth in secured products with the outstanding mortgage and auto loan portfolios actually growing by 23% and 38% respectively on a year-on-year basis as of March 31, 2014.

Commercial business loans declined by 17% on a year-on-year basis, reflecting both a slowdown in the segment, as well as run-down of the bought-out portfolio in this segment. Growth in the business banking and rural lending segments continued to be healthy, of course off low basis, but 25% and 42% growth.

The unsecured credit card and personal loan portfolio at INR72.7 billion as of March 31, 2014 continued to remain a small portion at about 2.1% of the overall loan book, though the growth rate obviously is high due to low base.

In view of this weak operating environment, the Bank continued to adopt a cautious approach to growth in the corporate and SME segments. Growth in the domestic corporate portfolio was at 8.1% on a year-on-year basis as of March 31, 2014. The SME portfolio actually declined by 1% on a year-on-year basis as of March 31, 2014.

Now coming to the overseas branches, the growth in the net advances in US dollar terms was at 10.8% on a year-on-year basis, reflecting primarily an increase on account of lending against FCNR deposits during the year. In rupee terms, the net advances of the overseas branches increased by 22.3% on a year-on-year basis due to movement in the exchange rate. As a result of the above, the total advances of the Bank increased by 16.7% on a year-on-year basis from INR2.9 trillion at March 31, 2013 to INR3.39 trillion at March 31, 2014.

Now moving on to the second C on CASA deposits, the Bank continued to see a healthy momentum in its CASA deposit mobilization. During the fourth quarter, we saw an addition of INR34.08 billion to our savings deposits and an addition of INR18.04 billion to current account deposits. For the full year, the Bank has seen a net addition of INR134.82 billion to its savings account deposits and INR63.19 billion to its current account deposits, reflecting a year-on-year growth of 16.2% in overall CASA deposits as of March 31, 2014. As a result of the above, the period-end CASA ratio improved to 42.9% as of March 31, 2014 compared to 41.9% as of March 31 of 2013. The average CASA ratio for the Bank for the whole of financial year was 39.4% compared to 38% in the previous financial year.

Now coming to third C on costs, for the fourth quarter, operating costs, including DMA expenses, increased by 19.6% on a year-on-year basis. On a sequential basis, the increase in operating expenses was primarily due to the higher employee expenses on account of higher provision for variable pay in the fourth quarter of 2014, as well as normalization of retirement benefit provisions compared to earlier quarters. The Bank's cost-to-income ratio was 39.2% in the fourth quarter of FY14 and for the whole year, the cost/income ratio was 38.2% compared to 40.5% in the previous year.

Let me now move on to the fourth C on credit quality. During the fourth quarter, we saw gross NPA addition of INR12.41 billion, primarily driven by slippages in the SME and mid-sized corporate loan portfolios. Deletions in the fourth quarter were INR4.16 billion. The Bank has also written off INR7.19 billion of NPAs. As a result, the net NPA ratio was 82 basis points as of March 31, 2014 compared to 81 basis points as of December 31, 2013.

During the quarter, we had gross additions of INR21.56 billion to the restructured loans. After taking into account deletions and the required specific provisioning, the net restructured loan for the Bank increased to INR105.58 billion as of March 31, 2014 compared to INR86.02 billion at December 31, 2013. Our current restructuring pipeline is around INR15 billion.

Provisions for fourth quarter were at INR7.14 billion, as compared to INR4.6 billion in Q4 of the previous financial year and INR6.95 billion in Q3 of 2014. As a result, credit cost as a percentage of average advances were at 86 basis points on an annualized basis for the fourth quarter. For the full year, the credit cost as a percentage of average advances were at 84 basis points. The provisioning coverage ratio on non-performing loans was 68.6% as of March 31, 2014. The provision coverage ratio includes the impact of write-offs done by the bank during FY14, which is estimated to have resulted in an impact of about 6 percentage points on the provision coverage ratio compared to the previous year. While in the near term, the provisioning coverage ratio will continue to be impacted by the pace of fresh NPL additions and write-offs by the Bank, over the medium term, we expect the provision coverage ratio to improve as ageing based on NPL provisions are made and the additions to non-performing assets normalize.

Now coming to the fifth C on customer centricity, the Bank continues to focus on enhancing customer service capability and leveraging on the increased branch network to cater to the customer base. During the quarter, we added 165 branches and 100 ATMs to the network. With this we have a branch network of 3,753 branches and 11,315 ATMs as of March 31, 2014. We have also continued to strengthen our technology channels for increasing customer convenience. Our Facebook page continues to be appreciated by the customers with about 2.9 million fans. ICICI Bank continues to have the largest fan base on Facebook among the Indian banks. The Bank has also continued to focus on technology-based delivery channels with continued scale-up in branch automation, focus on driving tab banking, enhancing the Internet banking platforms, mobility solutions across corporate and retail Internet banking applications and driving government and corporate banking solutions through technology initiatives.

Having talked about the progress on 5Cs, let me now move on to the key financial performance highlights for the quarter. Net interest income increased by 14.6% on a year-on-year basis from INR38.03 billion in the Q4 of the previous financial year to INR43.57 billion in Q4 of 2014. The net interest margin in the fourth quarter was 3.35%. The domestic net interest margin was marginally higher at 3.72% in Q4 of 2014 compared to 3.67% in Q3 of 2014. International margins were at 1.71% in the fourth quarter of 2014 compared to 1.7% in Q3 of 2014 and 1.26% in Q4 of 2013.

Total non-interest income increased by 34.7% from INR22.09 billion in Q4 of 2013 to INR29.76 billion in Q4 of 2014. If you look at the components of non-interest income, the fee income grew by 11.2% from INR17.75 billion in Q4 of 2013 to INR19.74 billion in Q4 of 2014, driven by healthy growth in the retail fees. The Bank's retail fees, including remittances, contribute about 55% to 60% of the overall fees. Other income was INR7.57 billion in Q4 of 2014, compared to INR3.41 billion in Q4 of 2013 and INR3.57 billion in Q3 of 2014.

On a year-on-year basis, during fourth quarter, we received higher dividends from ICICI Life Insurance, based on the increased payout levels approved by the Company's Board, as we had mentioned earlier on our call. Further, the Bank has also received dividends from ICICI Bank UK and ICICI Bank Canada of about $25 million each in the fourth quarter. During the quarter, based on the significant reserves and surplus position built up in the overseas branches and the muted growth outlook in the near term, we repatriated profits from our overseas branches, resulting in exchange rate gains of INR2.22 billion.

And the final line item in the non-interest income, treasury, recorded a profit of INR2.45 billion compared to a profit of INR0.93 billion in the fourth quarter of 2013 and INR4.47 billion in Q3 of 2014. The year-on-year improvement in treasury income was primarily on account of gains on the equity portfolio.

I have already spoken about the trends in the operating expenses and provisions while speaking about our 5C strategy. As a result of the above trends, the Bank's standalone profit before tax increased by 19% from INR31.44 billion in Q4 of 2013 to INR37.4 billion in Q4 of 2014. As I had mentioned on my earlier call, during the year the Bank created deferred tax liability on Special Reserve in accordance with Reserve Bank of India guidelines. As a result, our tax expense was higher by INR3.04 billion in FY14.

The Bank's standalone profit after tax increased by 15.1% from INR23.04 billion in Q4 of 2013 to INR26.52 billion in Q4 of 2014. For the full FY14, the profit after tax increased by 17.8% to INR98.1 billion in FY14 from INR83.25 billion in FY13. The return on average assets improved from 1.66% in FY13 to 1.76% in FY14.

Our capital adequacy ratio, as per Reserve Bank of India's guidelines on Basel III norms, continues to remain strong at 17.7% overall capital adequacy ratio and 12.78% Tier I capital adequacy ratio as of March 31, 2014. Based on the performance of the Bank in FY14, the Board of Directors today has recommended a dividend of INR23 per share to the shareholders, compared to INR20 per share for the previous year.

Let me move on now to the consolidated results. On a full-year basis, the profit after tax for the Life Insurance Company was INR15.67 billion in FY14 compared to INR14.96 billion in the previous financial year. The profit after tax for the Life Insurance Company in Q4 of 2014 was INR3.88 billion, as compared to INR3.54 billion in Q4 of 2013. The new business annualized premium equivalent for ICICI Life was INR10.81 billion in Q4 of 2014.

The retail weighted received premium for ICICI Life was broadly stable in FY14. Renewal premiums for the Company have increased in Q4 after declining for two years. The Company maintained its leadership position in the private sector with overall market share of 6.7% during April to December 2013. The new business margins for the Company were at 10.9% in Q4 of 2014. We will continue to assess how the business evolves and take steps to optimize margins and profits further.

On a full year basis, ICICI General has seen a significant improvement in profitability with a 67% increase in profit after tax from INR3.06 billion in FY13 to INR5.11 billion in FY14. The profit after tax for fourth quarter of 2014 was INR0.76 billion as compared to INR0.27 billion in the Q4 of the previous financial year and it was INR0.76 billion in Q3 of 2014. The Company maintained its leadership position in the private sector with a overall market share of 9.6% during April to February 2014.

Let me now move on to the performance of our overseas banking subsidiaries. Over the last four years, given the local business environment and regulatory developments and our strategy of optimizing the capital in overseas banking subsidiaries, our total equity investment in ICICI Bank UK and ICICI Bank Canada has reduced from about 11% of our net worth at March 31, 2010 to less than 7% at March 31, 2014.

With respect to the financial performance, as per IFRS financials, ICICI Bank Canada's profit after tax for fourth quarter was CAD11 million as compared to CAD11.2 million for Q4 of 2013. For the full year FY14, profit after tax was CAD48.3 million compared to CAD43.6 million in the previous financial year. The total assets for ICICI Bank Canada were CAD5.45 billion at March 31, 2014 compared to CAD5.28 billion at December 31, 2013.

Loans and advances were at CAD4.78 billion at March 31, 2014. The capital adequacy ratio for ICICI Bank Canada was healthy at 29.7% as of March 31, 2014. We have continued to focus on optimizing the capital at ICICI Bank Canada. Accordingly, during FY14, ICICI Bank Canada repatriated CAD75 million of capital and has paid two dividends aggregating to about CAD45 million.

ICICI Bank UK's total assets were $4.47 billion at March 31, 2014 compared to $4.37 billion at December 31, 2013. Loans and advances were at $2.77 billion at March 31, 2014. The profit after tax for ICICI Bank UK for the fourth quarter was $5.2 million compared to $0.3 million in Q4 of 2013. For the full FY14, profit after tax was at $25.2 million compared to $14.4 million in FY13. The capital adequacy ratio was 21.8% as of March 31, 2014.

Going forward, ICICI Bank UK and ICICI Bank Canada will continue to focus on short-term loans, working capital lines, trade and transaction banking products to multinational corporations, select local market or corporates, on subsidiaries and joint ventures of Indian companies, including through participation and syndication transactions. Additionally, ICICI Bank Canada would also continue to grow its securitized mortgage portfolio. We expect this approach in lending in ICICI Bank UK and ICICI Bank Canada will also yield synergies for the local Indian banking requirements.

Let me now talk about the overall consolidated profits. The consolidated profits for fourth quarter of 2014 increased by 9.3% to INR27.24 billion compared to INR24.92 billion in Q4 of 2013. The growth in consolidated profits was lower mainly on account of higher dividends from subsidiaries in the fourth quarter of 2014. For the full year FY14, consolidated profits increased by 15% from INR96.04 billion in FY13 to INR110.41 billion in FY14. The consolidated return on average equity was at 14.9% in FY14 compared to 14.7% in the previous financial year.

So to summarize our performance in FY14 is a continuation of our focus on delivering against our stated objectives. At the beginning of the year, we had communicated certain expectations for our key operating parameters and return ratios. During the course of the year, the underlying assumptions behind these expectations were challenged, given the continued weakness in the operating environment, as well as several regulatory changes. Despite this, I am happy to report that we have substantially delivered against our initial expectations.

In a challenging environment, our focus continued to be on monitoring and containing corporate asset quality issues and recalibrating the growth in the segment, while further strengthening our core operating parameters. During FY14, we have seen a more than 20 basis point improvement in the full year margins for FY14, a pickup in the fee income growth, continued healthy dividend from subsidiaries and sustained improvement in our operating efficiency. Our deposit franchise has remained a key area of focus and we have seen healthy trends in CASA mobilization in FY14, resulting in an increase in the average, as well as period end CASA ratios.

With respect to loan growth, we have successfully scaled up growth in the retail segment, while calibrating growth in the corporate and SME segments in view of the environment. As a result of the above, we have been able to mitigate the impact of increased corporate asset quality challenges, as well as change in regulations, particularly on taxation and have seen an improvement in the return on assets in FY14.

Let me now come to our outlook for FY15. We believe that the operating environment is likely to be better in FY15 with some recovery in growth and stability in interest rates, although at elevated levels. Our outlook for full-year FY15 is in this overall context.

First on the loan growth front, we expect our domestic loan growth to be 2% to 4% higher than the system, driven by more than 20% growth in the retail segment. Growth in the loan portfolio of overseas branches will continue to be calibrated to conditions in the funding markets. However, the focus in the overseas branches would shift from term lending to commercial banking, including working capital and non-fund based facilities for Indian companies, subsidiaries and joint ventures of Indian companies abroad and foreign companies engaged in trade with India.

With respect to our deposit franchise, our focus will continue to be on maintaining stable average CASA ratio in the range of 38% to 40%. With respect to margins, for FY15 we would target to maintain an overall net interest margin at a similar level to that of FY14. On the fee income, we would focus on sustaining and improving on the growth that we have seen in FY14.

Operating efficiency continues to be a key area of focus for the Bank. Our endeavor will be to further improve the cost-to-income ratio in FY15. As per our assessment of our portfolio, based on the current macroeconomic environment and regulatory requirements, we believe that the quarterly additions to non-performing and restructured loans have peaked in the fourth quarter of 2014.

We expect the full year additions to non-performing and restructured loans in FY15 to be lower than FY14. In addition to this assessment, regulatory changes such as provisioning for unhedged foreign currency exposure, applicable from the first quarter of FY15 may have an impact on provisioning requirements. Despite the same, our endeavor will be to maintain the provisions at around 90 basis points of average loans in FY15.

Through these measures, our focus in FY15 would be to sustain the return on assets. We believe that our strong and diversified franchise, large distribution network and strong capital position gives us the ability to leverage opportunities for profitable growth as and when there are improvements in the operating environment.

With this opening comments, my team and I will be happy to take your questions. Thank you.

(Operator Instruction) Nikhil Rungta, Standard Chartered Securities.

Hi, this is Mahrukh. I have a couple of questions. The first one is that within your fees, what would be the broad breakup of corporate versus retail and if you have any granular details on the corporate pie?

So, I think it's broadly the same, Mahrukh, as what we have said in the past. The retail fees are about 55%, 56% of the total fees and the corporate lending linked fees are at the same level, 15% to 16% of total fees.

Okay. The reason I ask is that last year in 4Q you had given a broad breakup (inaudible) the corporate fee, 70% is ForEx and transaction banking and, say, around 30% is lending related. Now the thing is that if you see some of the emerging banks, they are really garnering a lot of fees through investment banking, that is data and loan syndication. So is it that the larger banks are losing share or they are completely operating in different segments or is that a segment you are going to focus on, which will drive your fees henceforth? How do we look at this segment?

So on the investment banking or debt or loan syndication, at least we are not finding those opportunities in the market, especially the kind of corporate lending environment which has been there over the last couple of years. So we have really not seen any kind of momentum in that space, at least for ourselves. So for us the composition of the corporate fees remains one where we have kind of lower proportion of lending fees compared to what we used to have several years ago and we are trying to still further increase the granular fees of FX and transaction banking fees there.

Perfect. And just one comment on savings. Of course, your savings have been growing at a steady and healthy pace, but in the last two quarters if you see even some other larger banks, they have seen huge savings growth, so any comments on that?

Ourselves, actually we've been quite happy with what we have been seeing on a granular basis increase every quarter, both in terms of the period-end numbers as well as the average balances that we talk about every quarter. On the current account side, yes, the numbers can be a bit up and down depending on how the flows are, but on the savings side, we have been seeing a pretty consistent growth which is there. I can talk about our bank --

The focus, Mahrukh, as far as our Bank is concerned, completely focused on granular and all the kind of metrics we have down the line is daily average CASA. So we have granular -- we are quite happy that we could improve the CASA average basis from 38% to 39%. The focus would be to continue that approach and stabilize that number, as I said, between 38% to 40% level, even as we grow the total balance sheet. I think there we will focus on and I must say that we are pretty happy when we look at the incremental accounts we are opening, whether it's current accounts or savings accounts and the balances which are coming from each of the accounts. So that approach will continue. I mean, our endeavor would be not have this quarterly or monthly or a last date based wild variation.

Got it. Perfect. And just one clarification that obviously you don't pay any differentiated rate even on the -- on savings of [say PSUs] etcetera?

No.

Got it. Okay, perfect. Thank you so much.

Vishal Goyal, UBS Securities.

Hi Kannan, congrats on the numbers. Just one question on your guidance. So what kind of growth rate are you assuming when you say it's credit cost of 90 bps or when you say your additions are peaking etcetera?

Hi. [Ninya] here. What we've said is on the domestic side, our aim would be to grow between 2% and 4% higher than the banking system. And we think that the banking system could grow between -- around 16%, 17%. On the international side, I think in dollar terms we are looking at single-digit kind of growth.

So on that basis we have estimated the numbers, but we are quite confident that we will be able to contain the provisions, as I mentioned, at around 90 basis points of average loans. And as far as the incremental additions you talked about, that has been done based on current assessment of the portfolio in a granular fashion. We looked at the cases, which we think that may have to be restructured, so that is a bit more granular analysis on the basis of which we have given a flavor. So that is the two types of analysis we have done.

No, my question actually was also on the GDP growth you're expecting -- in a sense what I'm trying to say is where can I see the upside? So for example, if GDP was at 5.5-plus, then you see the credit cost number lower than 90 bps or it won't change much, even if --

No, I think, if I look at FY15, if you're really looking at it, the current assessment would be fair is what I feel. Beyond that if the investment climate changes quite drastically, I think those impacts will really be rear-ended as far as FY15 is concerned. So those benefits I think, if at all it will be back-ended and probably the next financial year. So, our assessment, we should go by these numbers as we stand now.

Okay, fair enough. And some sense on this RBI's circular on early recognition of NPL etcetera, so has it started or what's happening on that front?

So that guideline is effective April 1. So the process of reporting of cases which are in -- what RBI classifies as SME 2 category, that is started by the banks. I think most of the banks will be reporting now. I think some banks would -- are still not reporting maybe. But, in general, that has started. So that process of reporting by any one bank and setting up of a joint lenders forum and thereafter coming up with a corrective action plan, so all that is kind of getting into place. Of course, it's very early, just three weeks have passed by. So that's something which will kind of come fully into -- in the current quarter.

Basically the process is bigger. You might see JLF, et cetera now in next one or two months?

Yes, yes. You would see it actually earlier --

As we speak, it has started happening.

Already happening?

Yes, yes.

And what kind of impact you see out of this, just purely on --

My sense is that the system will adjust itself to this new thing. Maybe in the first quarter there is a settle down period, but otherwise -- so some of these cases in terms of incremental slippages, there could be a bit of front ending for the whole year, or I mean towards the first quarter. But otherwise our belief is that system will settle down for this.

Okay, great, thanks. All the best.

Thanks, Vishal.

Amit Premchandani, UTI Mutual Fund.

Good evening, sir. Thank you. Recently RBI has come out with a notification regarding use by banks of the window of -- the banks are using the window of like giving guarantees, SBLC, to domestic corporates and that was being used to raise money overseas. Plus, also the ECB window has been closed that overseas branches can't fund the domestic branch basically. So have you used this window at all over the last one year and is there any pipeline which gets impacted because this window is getting closed?

So, I guess, banks in general would have used this particular so-to-say window that you are saying in the past. Overall, now that RBI has taken this step, I think something that banks would not be doing going forward. So I don't think it'll have any significant impact on any of the banks per se.

We don't start with any pipeline for doing this, except few cases would have been done by the banking system in general. So I don't think we will really budget for such a thing and since RBI has stopped the system, the route will stop for the entire banking system, which is a good thing.

And sir, any -- if you want to share any number that you had done in last year that some of the exposure shifted to non-fund exposure?

No. We have not disclosed those numbers. It will be sporadic, a few cases. Nothing which will really impact us in any significant manner because of this circular going forward.

And sir, you said that the unhedged currency-rated provision impact will be seen in FY15. But will you not charge this to the customers, because ultimately they should bear the credit cost or the ex-provision cost, or it will impact the ROEs of the Bank?

No, the endeavor -- our endeavor would be to A) make this borrowers to hedge so that we can reduce the load itself, and B) in some cases, try to pass on in the pricing. So that's why we have done an assessment and as we speak the assessment is evolving. Though it will contribute to the provision charge for the year, including that I mentioned that it will still -- the overall provision charge would still be around 90 basis points. So clearly like you're saying the endeavor would be to make them hedge or charge them. So that will happen. But having said that I think there will be some residual charge, which has to be taken by the banks, which we are budgeting for in our expectations.

Because it's a general provision, in any case, it's not that you can charge the entire amount. It's only a general provision that has to be made.

Okay. And, sir, have you sold anything to ARCs this year, FY14?

Yes, we had talked about one asset which was sold I think in the second quarter of the financial year. This fourth quarter we've not sold anything.

Okay sir. Thank you sir. That's it from my side.

Thank you.

Manish Karwa, Deutsche Bank.

This is basically on capital adequacy and risk-weighted assets. I think for ICICI Bank standalone, your risk-weighted assets have actually declined over the year or for the last three, four quarters, they have been fairly stable and declining in few quarters. Where is the saving coming from in terms of risk-weighted assets?

I think one of the areas where it is coming in, if you look at fourth quarter also, the off-balance sheet risk-weighted assets have come down for us, because we have seen some of the securitizations that we had done in the past, those deals have matured and the structures would have got collapsed. So because of that we have got savings on that and that was reflected as a risk-weighted asset at about 1000% of the capital that would have been deployed. So that is where we are -- we have got the savings this year. We have seen some increase of course in the funded risk-weighted assets.

But even the funded risk-weighted asset growth is actually much lower than your loan growth.

So if you look at the loan growth, also a part of that growth would have come from, for example, on the loan against FCNR B deposits, which has no capital requirement, given that it is fully backed by the deposit. Otherwise, the growth also in the retail side has been more -- on the mortgage side, if you look at our growth has been higher. So that is what would have -- given there is no other kind of one-off on the fund-based side. On the non-fund based side, securitization was there where we got a saving.

Okay. And is there more savings possible on that in next year?

On securitization -- on the off-balance sheet actually we don't really have now -- it's very small amount in the risk-weighted assets. On the funded side, there is still some saving which would come in over the next couple of years.

Okay. And similarly in your U.K. subsidiary your Tier 1 ratio has declined very sharply. Now I understand you would have given higher dividend, is that the only reason?

That will be the primary reason in terms of the capital coming down in the fourth quarter, plus there would be some phase-in of Basel III also, which is happening like it is happening for us also. For us also we have seen some phasing in coming on March 31. They also would have seen some of that phasing in.

Out of U.K., how much total dividend would you've given out this year?

About $25 million.

Okay, only in the fourth quarter?

Yeah.

Okay. And just one more thing. What is the domestic and international NIM?

For the fourth quarter, the domestic NIM was at 3.72% and international NIM was at 1.71%.

Okay, thank you.

Thank you.

Saikiran Pulavarthi, Espirito Santo.

Hi. Just if you can elaborate on the dividend payout in the life insurance subsidiary, which you mentioned that there was increase in payouts. Can you just elaborate and quantify what is the change and how it looks like for the next year?

No this is not -- this is -- we have -- for this year from the second quarter's payout onwards, i.e., from the third quarter, the Life Insurance Company has paid out higher dividend based on its high solvency position. So if you look at it this year typically, we were getting between INR90 crores to INR100 crores of dividend per quarter, which would translate into about INR400 crores or so. This year we have got roughly between INR275 crores to INR300 crore additional dividend from that company.

Sorry. I missed the total dividend number. If you can just repeat that?

INR690 crores.

INR690 crores is the total dividend for the company.

Typically they were always getting about INR100 crores a quarter. That difference between INR690 crore and INR400 crore is that additional we got in a couple of branches.

Fair enough. And including all the subsidiaries what's the dividend number this quarter?

This quarter it's INR5.4 billion. That has come in mainly from ICICI Life Insurance. We mentioned earlier ICICI Bank U.K. and ICICI Bank Canada.

And one more data keeping question. Can you give us the provisions breakup for this quarter?

The provisions -- we report a total number and it's primarily towards loans, both specific provisioning on NPAs and restructured loans and the general provisioning on standard assets.

And just in terms of the SLR investments, if I have to look out as an interest bearing liabilities, I have seen a sharp fall on a quarter-on-quarter basis, which is very unlike if I go back in the history. What explains this fall and how do you look at it?

Sorry, what was the question?

I'm just looking at the SLR investment as a percentage of interest bearing liabilities and you see this falling almost like 200 basis points in this quarter on a sequential basis, which is very unlike if I go back into history of the Bank. So what explains this fall or is it something which I am reading too much?

We have viewed them in the normal course, reduce some of the excess SLR that we were holding.

Nothing unusual. Just that excess SLR would have come down. That's it.

Okay, fair enough. And last question from my side, how do you see the tax rate going forward, considering all these [PTL] and other things for the FY15?

We think it will stabilize at 30%.

Great, thanks. That's it from my side.

Jatinder Agarwal, CIMB.

Good evening, sir. First one your -- this foreign currency gains on retained earnings, how much is that pool actually left after this and how much do you look to gain -- book as you go forward?

Given that we have very large operations in our overseas branches, the totaled retained earnings in the overseas branches for us would be a large number. So if you look at the foreign currency translation reserve, which is essentially it will be close to about INR22 billion at March 31, 2014. And that is the gain, which is there in terms of the profits that we would have earned in the overseas branches in the past. And given the depreciation in the rupee, the translation is what shows up in that account and as and when we would transfer or remit back the retained earnings into the parent bank, it would be coming at the current exchange rate and the difference gets recorded as exchange again.

So we will look at it on an economic basis, in the sense that depending on where the exchange rates are and what is our view in general on remitting the retained earnings. One factor which has kind of made us look at it is that over the last two or three years, as you have seen, the growth in our overseas branches has been running at a lower pace than what it was doing in the past. So based on that we would prefer to remit back some of the retained earnings and deploy that into rupee assets earning a higher yield.

Okay. If I'm not wrong, this was INR14 billion, something like last year, is that correct -- INR13.82 billion, this INR22 billion, which is --

INR22 billion, which is the reserve, yeah, it would have been about --

INR13.82 billion. Is that the right number?

Correct, correct.

Perfect. And can we have the full-year's numbers as dividend from subsidiaries and (inaudible)?

It'll be about close to INR13 billion.

And last year was INR9 billion, if I'm not wrong?

That's correct.

Perfect. And sir, just on this provision coverage ratio, can you give some target in terms of percentage, because sequential every quarter last four quarters we've seen this decline?

It is a function of two things. It's a function of the level of additions that we see and also the write-offs that we make on the NPLs. So as we have said in the past, we don't have a specific number in mind in terms of what we would have on the provision coverage ratio. We have a consistent provisioning methodology for each of the loan categories. And depending on the additions and the write-offs that we do, the coverage ratio does move. So if you look at the current year, we have done a fair bit of write-offs, including in the current quarter. So that has made the coverage ratio come down, together with the somewhat higher additions that we have seen on the NPS.

So that's how it has moved as -- I've kind of mentioned earlier, we would expect NPL additions to kind of come off going forward. And that is when we would see coverage ratio kind of stabilizing and improving. Till we see the additions at a higher level, it would tend to come down, because we don't -- at the time of a loan getting classified as NPL, the provisions that are made by banks is indeed much lower than the average which is held.

And lastly, a bit more qualitative. We've seen CASA increase for quite some time. Could you give a broad sense of how do you think you stack up in terms of competition on your domestic cost of funds? And then relatively within that space on the asset side, giving loans to the finest customer on the street, how does that play out for us?

On the cost of funding or cost of deposits, we believe we would be pretty much very competitive with each of the banks. I guess HDFC Bank does have a somewhat lower cost of funds than us, but otherwise compared to all other banks, we would be pretty competitive, and that is reflected in the base rate also, in terms of the base rate for some of the larger banks, we are quite consistent there.

So in terms of lending also, we would be equally competitive across each of the segments.

So over the last 12, 18 months, we have used this lever to enter into working capital lending, becoming a consortium member and all that. So the qualitatively feel, I would say is that over the three-year period, structurally, our competitive position has improved in terms of higher rated corporates working capital lending. So that's also one of the reasons why a little bit of more focus is there on the fund-based assistances, as against just focusing on non-fund based assistances, which we have done in the past in some cases where we had a cost disadvantage. I think competitive position-wise, things have worked in our favor. Thanks to our cost of funds pretty much matching or being better than most banks.

And just a follow-up, could you give a broad breakup of the current domestic loan book, what is working capital and term?

Of the corporate loans, about 30% would be working capital.

Same as middle of last year, right?

Yeah, yeah, yeah. Slowly, that is a long hard work.

Thank you, sir.

Thank you.

(Operator Instructions) Jignesh Shial, IDBI Capital.

Yeah, good evening, sir. Thanks for taking my question. Firstly, just wanted a housekeeping question would be on this restructured book. I didn't exactly get the data. How much has been added gross and the net during this quarter and for the full year?

So what I mentioned in the opening remarks was that the addition to restructured loans during the quarter was INR21.56 billion. That is the gross additions to the restructured loans. For the year, it's about INR65 billion.

INR65 billion. Okay, so what would be the total outstanding now as at year-end?

Year-end outstanding would be, the net restructured loans INR105.58 billion. And also mentioned in the context that our current restructuring pipeline is around INR15 billion.

Okay, perfect. And can I get similar way this GNPA breakup for the full year, not for the quarter?

For the full year, the additions are about INR45 billion. And the gross deletions were about INR12.5 billion. And write-off and other items are about INR23 billion.

Just one question on your growth profile. Where do you see exactly in the next probably 6 to 12 months, where the next credit growth you're expecting to come in from? And how much of -- during this last 6 months, how much credit pickup, especially on the corporate side have been only on the working capital side? That's the only question I have.

One is, over the last six months if you see our credit growth on the corporate side has been quite low. The year-on-year growth was about 11% as of September and then about 7% as of December, and is about 8% as of March. So that book is not really growing significantly. To the extent that it is growing, it is growing based on more on working capital and short-term disbursements. As far as retail, we are now growing at above 20% and we expect this pattern to continue into the next year of retail growing at above 20% and corporate growing, maybe not in single-digit, but probably in the low teens.

Okay, that would be fine, sir. Thanks.

Amit Ganatra, Religare Invesco Asset Management.

Yeah. In the past, you used to talk about consolidated ROE target. Don't you have any such, I mean, guidance this time on the consolidated ROE?

We did mention the consolidated ROE for FY14 of 14.9%. And our long-term target continues to be around 17% to 18%. Of course, the time over which we achieve that will depend to a great extent on how the economy moves going forward.

And the other question is on the credit cost. If this requirement for this unhedged ForEx provisioning would not have been there, then would the credit cost guidance also be lower as compared to this year?

So this year, we are at about 85 basis points or so. And we have said 90 basis points for next year. Of which, maybe around 10 basis points could be due to the unhedged foreign currency exposure. So it may have been marginally lower.

Okay, thank you.

Adarsh P, Prabhudas Lilladher.

Just a question firstly on the employee cost, you all did make a mention about some retiral benefits adding to that. How large was it, because that's probably not going to recur?

On the retiral provisions what happens is that because we do a quarter-on-quarter valuation, actuarial valuation of that. So on a quarter-on-quarter basis, the number would continue to vary even going forward. So I think on the employee expense one should look at the full year numbers, because as Kannan mentioned earlier, this quarter we did have some bit of higher impact due to the retiral provisions and the year-end variable pay as well.

Understood. Any specific guidance on how you all see corporate fees now? Obviously it would have been weak till now and you all said that probably the contraction had stopped in the last quarter. So how do you see that in FY15?

Specifically on the corporate fees, I think we would continue to focus on the transaction banking and FX linked fees that I talked about. On the lending side, I think, hopefully in the second half, we should get some better opportunities on the corporate side. So overall on the fee income, I think, retail will continue to drive the growth on the fee income side.

So you think that this book -- this corporate fee could remain flat again for next year, or are you all think that the transaction part will get you some growth?

So from this level of this, we would definitely see the corporate fees to go up, but it may -- it may increase, the growth would be lesser than what we see on the retail side.

Understand. Yeah, that's about it. Thanks.

Anish Tawakley, Barclays.

Thanks for taking my question and congratulations on a good set of numbers. First question was on restructuring. The restructured loans are smaller than I think what the pipeline was at the end of the previous quarter and also your pipeline is looking even smaller for the next quarter, so could you talk about what changed during the quarter? And it also seems like you're less concerned about this than you were say three months back. So, what happened there?

Yeah, the point -- the second point where you are saying that little lesser concern compared to three, six months back is correct, that is what is reflecting in our outlook of saying that the incremental additions to restructured as well as NPLs has, we believe, is peaked in the fourth quarter. So what has happened is that last time whatever the pipeline at the time was we mentioned it and some of that got restructured and the restructuring -- effecting restructuring depends on various approvals and various processes being put in place and some of it has spilled over to the next quarter and that is what is reflecting in the current pipeline.

So that is the reason for this change. So with about INR15 billion of restructured loan, which is in the pipeline today, we are able to give the outlook of things having peaked.

Okay. And the second question was on [car]. So car performance also has been pretty good, in fact very good this year. It comes off a low base last year. So really my question is what does the outlook look like for next year? Can you repeat as strong a performance or given your outlook for the economy, what would you expect in terms of car growth next year?

No, car growth will be -- internally, we will be targeting a good level of performance. We expect it to be repeated in terms of the growth rates. That is something which we are focused on. I had talked about the overall domestic growth, loan growth of about 20% or so, which will largely get funded through deposit growth and within that I talked about 38% to 40% daily average CASA would necessarily mean that we're expecting the car performance also to be as robust as we have seen in the last financial year.

And Kannan, if I may just ask on the restructured, right, this -- so if we think about what's happening there, is it like people's operating cash flows are improving quite quickly or are they able to raise capital through asset sales or something that the restructuring pipeline is looking better, because like on an operating cash flow basis at least the economy is looking still pretty bleak -- or the Company's performance is still looking pretty bleak, right?

One is I think that the pipeline is shrinking off what was fairly a fairly large pipeline. So in that sense I think it's -- one way is that a lot of what had to be restructured etcetera has now happened and therefore you know going forward the volumes will be less. And, of course, it is also maybe things are not getting added to the pool of assets where there are challenges, because economic growth has pretty much bottomed out and we are expecting some improvement in growth and the general conditions are not getting worse. So the number of cases or companies that are falling into stress is not increasing beyond what is already there. And out of the pool, which is already there under watch etcetera, a large part of the restructuring etcetera that to happen has already happened and indeed some more will happen with next year. It's not that it's over, but the quantum which will happen next year will be in our estimate lower than what happened this year.

Yeah, just to supplement this in terms of numbers, if you look at the three months back, four month back pipeline of CDR referrals, we were looking at a number of something like INR700 billion and that's -- for the system as a whole and for -- if you look at the similar number as of now, it is more like INR420 billion or so. So if you see that from a systemic perspective what (inaudible) mentioned.

Secondly in our pipeline, if you look at it, we had mentioned in the past that there have been a couple of chunky cases. When they get done, then the current pipeline becomes a bit lighter. So I think those are the two, reasons I would say for such an outlook and such a current pipeline.

Great, thank you very much and good luck for next year.

Thanks Anish. Thank you.

[Daniel Sonav], Athena Investments.

Yeah, good evening, sir. Hello? Sir, just one question -- couple of questions. One is on your fresh slippages. Since you told like your probably NPAs would be lower than the current one, so is to fair to assume like it could again come down to FY12, FY13 level or probably -- I mean, what kind of run rate do you expect?

What I mentioned was that in terms of incremental additions to NPLs, we believe that that number has peaked in the fourth quarter. So we'll have to really wait and see, Daniel, because that is the immediate outlook we have. How much the system revives, how the investment climate revives, how the receivables situation improves in the economy, so those would be the factors on which this would be dependent on. It may be too early to immediately say that we will go back to that kind of situation what you mentioned. But I think directionally we will get there. And when we exactly reach there would really depend on the external environment.

Okay. And sir, second is on just book-keeping question. I just see on your QonQ numbers the interest expense have come down QonQ, whereas your deposit has increased drastically in fact on QonQ. So I mean, what could be the reason behind that?

One second wait, I'll just get the number.

Yeah, the number is 7,200 on Q3 FY14 and it has come down to 7,133.

That would have to do with the number of days during the quarter. So I don't think there is any other abnormal number there.

Okay, so only the reason was --

Number of days.

Okay. And what about your provisionings, about -- I mean, could you just split it, 714, in terms of provision for NPAs and investments and standard assets?

As we mentioned, it's largely against NPA and restructured, on both. There will not be much of an investment provision, largely against NPA and restructured.

Okay, because it seems to be on a very higher side, I mean, in fact, last recorded could be the highest one. That's why I asked you.

Because the restructured loans were --

We saw about INR2,100 crores of gross restructuring happening. And as you know, any incremental restructuring enters a large restructured provision of 5%, then the PV loss et cetera. Incremental load has been higher. But we are happy to report in fact that -- when we talked about this provision number will be less than 90 to 100 basis points, the fact that it came at around 80, 82 basis points is something which we believe we have contained it quite well.

Okay. And going forward, of course, this would be lower, since your restructure would be very --

Yeah, going forward, while restructuring -- incremental restructuring will be less than the last financial year. We have to bring up the entire stock of restructured loans to that kind of provisioning. Plus we also talked about unhedged foreign currency exposure provisioning requirements. So even if you put all this, we are happy to say that we should be able to contain it at around 90 basis points on the average loans for the current financial year as well.

Okay, fine enough. I have, but I'll come back in the queue.

Thank you.

Nilanjan Karfa, Jefferies.

Hi Kannan, hi [Rakesh]. Thanks. First on -- for the first time I'm seeing you have put out a detailed consolidated balance sheet. Is it something that you want to continue given that you had reservations in the past? And if so, could you -- some sort of provide some guidance as to how this numbers could look going forward? What percentage could be the contributions from the banks so on and so forth?

On the numbers itself we have got some feedback from some of the investors that they would like to see the consolidated financials on a quarterly basis. So this is something we'll do on a quarterly basis. I guess one challenge has been that, because analysts do cover us on a standalone basis, and indeed, it will be difficult for us to give guidance on the aggregate numbers than consolidated, because it's getting aggregated across very different businesses. That challenge will continue. So we'll give detailed disclosures on the standalone bank as well and on the consolidated numbers as well, and then we'll see going forward, if any further details are required on the consolidated, we'll add that also on a quarterly basis.

Okay. So as of now, you cannot or you would rather not guide on either the consolidated balance sheet or the P&L?

On the individual line item, because it is an aggregation of across businesses, so unless we get into individual businesses, it will be very difficult to give individual line item guidance for consolidated. Overall, on a longer-term basis, (inaudible) mentioned the target for us in terms of ROE on a consolidated basis is to get to 17% to 18%.

Right, right. And on the restructure, I think we closed last year, FY13 at INR58.2 billion. That's the net standard restructure, right? And we added something like INR61 billion or INR62 billion this year. So how much did we -- how much essentially slipped out of the standard restructured book? Do you have the number?

There would have been provision against what we added, so the INR105 billion number is a net number. There would have been provision that would have been added and some restructuring cases would have gotten repaid or upgraded or slipped into NPL as well.

Okay, so we'll get it in the Annual Report. Yeah, thanks.

So your question was that in terms of how much has slipped into NPLs?

Yes, yes. Yes. That was what I wanted.

So in terms of the numbers that you mentioned, one is at the close -- last year closing balance was INR58 billion was the gross restructure, the net was about INR53 billion. So that -- we talked about the addition, the slippage has been about -- on a net basis about INR6.5 billion has slipped into NPL.

Okay, okay. And any specific sector this slippages has gone, or is it largely --

This will be two or three cases. So there is no sector specificity in this.

Okay, perfect. Thanks. Thanks a lot.

Thank you.

Kunal Mehra, Visium.

Gentlemen, I'm going back to the restructuring question. Last quarter you had very clearly mentioned that your expectation of restructuring increasing materially was because there was still certain cases that hadn't registered through the CDR. Have those cases since, A, either been through CDR, and therefore gives you comfort that on -- regarding your guidance, or B, have they improved the condition whereby not requiring CDR anymore?

Last quarter, as Kannan mentioned, we had said that the pipeline of cases with CDR was about INR30 billion. That is the restructuring that we were expecting. So if you look at this quarter, we have restructured about INR21 billion INR22 billion of loans, and there is a further pipeline of about INR15 billion of loans, which is there. So when the cases get referred to CDR, it does take some time for them to get implement -- accepted and implemented across banks. So that pipeline is definitely there. The only thing is that we are indeed expecting that going forward the pace of addition of restructuring would be lower than what we are seeing in the current quarter.

Okay, fair point. And the second question is regarding the coverage ratios. Given what you're seeing in the provision cost, what you've been sharing with us, I mean, you obviously will see an improvement in the coverage ratio. Any idea how long before we get back to the 75% mark? Because I'm assuming there is some mathematical improvement that's got to come through as you lower the share of corporate and increase the share of retail, but beyond that I mean are you going to guide to any effort on the part of management to increase the coverage in the next four quarters?

As we said, we have a pretty consistent policy for provisioning against NPL. So I don't think we would be changing that in terms of -- for achieving any specific coverage ratio. So we will have to see the pace of NPLs to kind of -- addition of NPAs to kind of start declining. And then we will see improvement on the coverage ratio. And as I mentioned, earlier also the write-off that we have been doing, which do give us the benefit on the tax front, but that does impact the coverage ratio negatively as well. So these are the two factors which are there. So, yes, it's not that in the next few quarters we will immediately start seeing the provision coverage ratio improving in a big manner.

Fair point. That's actually very helpful. One follow-up on that, if I may. So, the decrease that we've seen in the coverage on the 75 at the beginning of this fiscal going all the way down to rounded numbers 69, is that because, while your rules and norms of providing the coverage have remained constant, is that because of the nature of the assets that are coming in or is that because of the adverse effect of the write-offs for the tax shield?

No, it's basically because for the new NPLs that we add, immediately on adding we would not be making a 70% or 80% kind of provision, because typically for example we would largely have secured NPLs, and in the first year of adding NPL, the provision that you make is clearly much lower than that. So that is the reason when the additions to NPA is higher, the coverage overall kind of comes down and there is the additional impact of write-offs, which also comes in.

Perfect. Thank you very much for your time. Appreciate it.

Manish Chowdhary, IDFC Securities.

Hi, thanks for taking my question. Just wanted to check -- I mean what would be our gross restructuring outstanding?

It would be about -- it is INR116.5 billion.

Okay. Thanks. And secondly, just in terms of cost-income, you have been talking about improving cost-income, and you've seen over the last couple of years cost-income actually improving sharply. How much room now you have, because now cost-income is at 32, you are probably amongst the lowest in your peer group, 38. How much do you -- I mean how much room do you expect on cost-income ratio to go down further?

If you look at the improvement that we had this year, a couple of percentage points and even though at the last couple of years, I think the revenues have been growing well. We have seen the margins expand. So even as we have expanded our branch network and retail lending business, we have been able to bring down the cost to income ratio. So going forward in the next couple of years, we do believe that the branches that we have added over the last two to three years, we should be able to increase productivity from those branches, as well as from the increased employee base. This year itself, we have added about close to 10,000 employees. So we would not really need to add employees of any similar magnitude over the next couple of years.

So on the cost side itself, in absolute terms, we would expect the growth to kind of be muted compared to the overall balance sheet growth. In addition, we should be able to sustain our margins and grow our fee income as well. So revenue growth would also kind of help in reducing the cost to income ratio from this level.

Thanks. And finally in terms of outlook on branch additions, can you just share -- I mean, in terms of next few quarters, how would you look at it?

So we would be looking at adding about 400 branches broadly speaking in the current financial year.

Sorry, 400 is it?

Yes.

Thanks so much.

M.B. Mahesh, Kotak Securities.

Just three questions. One, is it possible for you to now kind of give some color on your outstanding stock of restructured book between two or three large sectors which is contributing to it and how much would that be as a percentage of your overall loan book in that sector?

As we have said in the past, there is no specific sector concentration. These are more medium sized companies across a range of sectors. The only sectorial concentration if at all is in areas like construction, you know, the [EPC] sector where as you are aware, most of the companies have faced stress over the last couple of years.

Just kind of understanding this, if assuming that you're building in a case that the NPLs have peaked and the restructured book is also showing a similar trend, is it also fair to assume that the recoveries will start picking up a lot faster than what we are currently anticipating, or you expect that to take some more time?

See, first of all, just to clarify, we are not saying that the stock has peaked, we're saying that the quarterly additions to NPLs and restructuring has peaked. That's what we're saying. So the pace of additions will come down as what we hope, based on a granular analysis of our portfolio. In terms of -- for example, things getting back to standard assets from restructured category, I think it will take time, a, because we will have to -- given the kind of repayment schedules we have there, given the kind of RBI stipulations, strict stabilization on when you can upgrade that's going to take time. I don't expect any material movement from restructure category to standard category in the current financial year.

So I guess for this we'll have to wait and then the early signals could be that whether the company's receivable position is getting better by being able to collect the dues and then are they able to put up new projects, those are the type of things one could watch for. My sense is that the incremental additions though it will slow down, the upgrade and all that will take some more time. That is what we believe today.

The second question is, the auto loan book has seen a substantial jump this quarter. Is it all pertaining to buyouts in this current quarter?

No, it is organic originations. That is how it appears. There is no anything -- buyouts there which has increased fee book.

Okay. And my final question is on the cost of funds, is it fair to assume that this quarter you've seen a decline in the cost of funds?

Yeah, [it's probably] marginal decline.

And what is driving it, given the fact that there has not been any change in the deposit rates for nearly about six to seven months now?

No, I think that the decline, if you really look at it, the decline is about -- very marginal decline, about a basis point or so decline. So that is not -- so basically -- generally how the deposit cost is staying at that level is because of the CASA ratio on a daily average basis when you look at it, it is at about 39% and year-on-year basis, we used to operate at about 38% CASA ratio. Now we're at 39% CASA ratio. Year-on-year basis, it has declined, but sequential basis it is flattish with the marginal decline. Essentially because some of the term deposits, which we renew gets renewed at the slightly lower rate compared to the contractual maturity originally. So that has been the reason.

Thanks a lot.

Thank you Mahesh.

Thank you. I now hand the floor back to Mr. NS Kannan for closing comments. Thank you and over to you sir.

Yeah, thank you for participating in the call. I do hope that we have comprehensively answered all your questions. Thank you very much.

Thank you. Ladies and gentlemen, on behalf of ICICI Bank that concludes this conference call. Thank you for joining us. You may now disconnect your lines. Thank you.