Bank of Baroda

A specific provision was not held earlier because legal advice said a case under litigation and negotiation cannot carry one, per the speaker.

As the CFO said, on the employee front, because of the hardening of the yield, the obligation under AS-15 has gone down. But at the same time, the Bank decided to migrate to the new mortality table where there is an additional liability requirement of Rs. 520 crores, which we have provided for. So, I mean, the employee cost that you would have seen, including AS-15, the trend is in line with the system what other banks also would have announced.

Asset quality has been one of the best as far as the numbers are concerned, the GNPA at 1.89%, the net NPA at 0.45%, both in terms of the slippage ratio and also the credit cost, the credit cost full year is 0.46% as compared to 0.47%. Both well within our guidance range. I think the asset quality and in terms of the CRILC data in terms of SMA 1 and 2, more than Rs. 5 crores also, it has gone down from almost from 0.36% to 0.18%. So, with this, I think the asset quality has been good as far as we are concerned.

At the same time, a couple of initiatives that we had already announced. On the ESG front, we raised almost Rs. 10,000 crores of the green infrastructure bond sometime, a couple of months back. And that is one of the first in India in terms of raising green infrastructure bond, we got a very good response on that. At the same time, we announced that we have made one of the subsidiary operating from 1st April, that is we created a primary dealer business in terms of creating a BOB's Securities and Giltedge Limited. There is also announcement that we did yesterday in terms of our intention to float a pension fund that we have announced. So, with this, I think we had a very strong quarter both on the balance sheet side and also on the profit and loss side. Let me reiterate a couple of guidance that normally we give it to the market. The loan growth earlier we had given a guidance of 11 to 13 %, now we are upsizing that to 12 to 14 %. Again, I repeat from 11 to 13 %, we are improving it to 12 to 14 %. Deposit growth guidance for the last year was 9 to 11 %, that we are improving to 10 to 12 %. The NIM guidance, although we posted a NIM of 2.89%, but there would be going forward different market scenarios. So, the NIM guidance has been 2.75 to 2.95% for the full year. Again, I repeat for the full year. ROA, as we always say, the ROA is going to be more than 1%, but the slippage ratio we continue to maintain at 1 to 1.25% considering the geopolitical issue that we are going to have, which is prevailing at this point of time. The credit cost for the full year is going to be less than 0.60%. This year it is 0.46%, but our guidance for the full year is less than 0.60%. With this, I close my remarks and open for question and answer. Thank you.

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Moderator: Thank you, sir.

Auto loan stress and GNPA are described as benign and very small, with quarterly portfolio reviews at senior/board-committee level.