Punjab National Bank (PNB) Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to Punjab National Bank Q1 FY '27 Earnings Conference Call hosted by Elara Securities Private Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Alok Shah from Elara Securities Private Limited. Thank you, and over to you, ma'am.

Hello, everyone, and welcome to Q1 FY 2027 Earnings Conference Call of Punjab National Bank. Today, we have with us the management of the bank headed by Mr. Ashok Chandra, MD and CEO; Mr. M. Paramasivam, Executive Director; Mr. D. Surendran, Executive Director; and Mr. Amit Kumar Srivastava, Executive Director. With this introduction, I would like to hand over the call to Mr. Sunil Kumar Goyal, Chief General Manager, Strategic Management and Economic Advisory division, post which the MD sir will address the conference. Thank you, and over to you, sir.

Good afternoon. I'm reading out the disclaimer. The statements made during this meet may contain forward-looking statements apart from historical information. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Punjab National Bank undertakes no obligation to update forward-looking statements. to reflect events or circumstances after the presented. Thank you. And I'm handing over to our MD sir for opening remarks.

Good afternoon, ladies and gentleman [Audio Gap] we have started the financial year on a strong note, building on the momentum of the last few years. Our performance this quarter reflects balanced and sustainable growth across all key parameters, business expansion, asset quality, profitability, operational efficiency and customer service. We remain firmly on track to achieve the guidance and the strategic priorities for financial year 2027. Our growth strategy continues to be driven by the retail, agriculture and MSME segments. We are expanding our customer franchise through focused acquisitions, digital first delivery and a calibrated expansion of our branch network. During the year, we plan to open 250 new branches with a special focus on strengthening our presence in the southern and western region. Technology and digital transformation remain at the heart of our growth strategy. We continue to invest in digital capabilities, automation and analytics to enhance customer experience, improve productivity and build a scalable future ready banking franchise. Our asset quality continues to strengthen, supported by disciplined underwriting, robust monitoring and focused recovery efforts. At the same time, our emphasis on business quality and operational efficiency has translated into steady growth in both operating profit and net profit. With this brief overview, let me now take you through the bank's performance for the quarter. First, I will touch upon the business growth. The quarter ended June 2026 marked another period of consistent financial performance driven by balanced growth and sustained strategic momentum. Our gross global business reached to INR 29.98 lakh crores, making a healthy 10.2% Y-o-Y growth. Our advances grew by 12.7% Y-o-Y to INR 12.73 lakh crores despite a INR 22,411 crores, low-yielding -- low-yielding IBPC exposure. largely from the retail portfolio. Excluding the impact of the IBC book, core advances recorded a strong 15.4% Y-o-Y growth under scoring sustained credit demand and healthy business momentum. Our core RAM book has witnessed a decent growth with retail book, excluding IBPC, growing at 17.5%. MSME is growing at 19.8% and agri priority sector at 16.4%. Credit growth momentum is expected to remain strong, backed by a robust Sanson pipeline. The bank sanctioned more than INR 95,500 crores of credit facilities during this financial year of this particular quarter and total of INR 1.38 crores is pending for disbursement. Global deposits for the bank has reached to INR 17.25 lakh crores, up 8.5% on a Y-o-Y basis. Our CASA strategy is centered on retaining individual saving account balance which grew by 9.3% Y-o-Y, reflecting STD customer acquisition and a stronger customer engagement. The credit deposit ratio increased to 73.8%. However, it still provides adequate balance sheet flexibility to support credit expansion while allowing the bank to remain selective in raising higher cost deposits. Now I will touch to the profitability part. Improving profitability remains a key management parity. Profitability is a core agenda item in all our business review meetings with fill some snares and has been incorporated into their performance evaluation framework. In the previous mix, I informed that we will see Q-o-Q improvement in the margins in FY '26, '27, and we have started to witness the same. Our domestic NIM, which was 2.47% last quarter, it has gone to 2.64% and the global NIM, which was -- it was the domestic NIM was 2.61% in the Q4, which has moved to 2.64% and the global NIM was 2.47% in the Q4, which has gone to 2.50%. I am confident to witness healthy Q-o-Q improvement in margins in the coming quarters and achieving our guidance for the financial year '26, '27. Our NII, which was negative in previous financial year has also turned positive in the Q1 and has remained at INR 10,798 crores with sequential growth of 4%. Operating profit of the bank is also increasing on a sequential basis. Operating profits for of this year is INR 7,519 crores as against the INR 7,081 crores of Q1 of last year, witnessing a growth rate of 6. 2%. Our core operating profit, excluding recovery from return of accounts and treasury gains have witnessed a Y-o-Y growth of 35.7%. net profit of the bank for Q1 stands at INR 5,263 crore. Now I will touch upon the efficiency ratios. Our return on sale is consistently above 1%, and is at 1.04% in Q1 of this financial year. Our return on equity stands at 17.33%. EPS is 4.57%, not annualized for this quarter. Our tangible book value per share as of 30th June 2026 is INR 18.58, which has significantly improved from the level of 92.64% as on 30th June 2025. We are quite mindful of improving our cost-to-income ratio and the same has reduced to 5.31% in Q1 of this year as against 55.31% in Q1 of last year. Asset quality. Asset quality continues to strengthen with gross NPA declined to 2.78% as on 30th June 2026 from the level of 3.78%, 100 basis point decline is there. and net NPA improving to 0.28% as on 30th June from the level of 0.38% as of 30 June 2025. So 10 basis point improvement is there in the net NPA also. This reflects our disciplined credit and recovery framework and keeps us well on track to achieve our financial year '26, '27 guidance for both gross NPA and net NPA. As of now, we have not seen any material impact on geopolitical tensions on the bank's asset quality. Our slippages remain contained, SMA accounts are stable and the overall credit portfolio continues to perform well. our PCR stands at 97.23% as on 30th June 2026, which is well above our guidance of more than 96% for financial year 2027. Total is slippages during the Q1 of 2027 was INR 2,080 crores as against INR 1,886 crores in Q1 of FY '26. Our guidance for slippage ratio was to remain below 0.9% in FY 2027, and we are well within our guidance level as slippage ratio for this year is 0.6%. Total recovery stood at INR 2,789 crores for Q1 of this year, and our recovery is 1.34x of the slippages in Q1 of this year, reflecting our commitment towards improving asset quality. We have made additional floating provision of INR 390 crores on a prudential basis in Q1 of this year, making our total floating provision at INR 2,435 crores. There is consistent improvement in the SMA book and overall SMA stands at 2.9% of the overall loan book. I will highlight the asset quality and underwriting standards. In fact, from the first of July 2020 to 30th of June 2026. That is a 6-year period. We have strengthened around INR 14.74 lakh crores loans, out of which we have disbursed around INR 12.92 lakh crore loans. The understanding in these loans is INR 8.94 lakh crores, which is close to 70% of our total outstanding loan book. The NPA in this book is hardly INR 5,486 crores, which is only 0.4% of the disbursed amount under risk underwriting, which is for the last 6 years. So this speaks about the credit underwriting standard of our bank. Now I will highlight the capital structure. Our capital adequacy is 18.13% as on 30th June 2026 compared to 17.50% as on 30 June 2025 against the regulatory requirement of 11.5%. Our CET1 capital stands at 14.52% against the regulatory requirement of 8%. Tire 1 capital stands at 16.0% against a regulatory requirement of 9.5%. and Tire 2 to capital stands at 2.10% as at 30th June 2026. More than 86% of the total externally rated advance of INR 25 crores are above A rated and more than 52% AAA rated, which reflects our balance sheet stance from a risk point of view. Bank is doing a lot of activities on the digital front, and digital banking continues to be a strong growth driver for the bank. After crossing the milestone of INR 1 lakh crore in cumulative digital loan sanctions earlier this year, we are on track to add another INR 1 lakh crore during the current financial year. In Q1 alone, our digital credit sanctions are more than INR 19,000 crores. This growth is being powered by innovative solutions such as Digital Later, Prime Minister Sandischeme and our newly launched emergency credit line, helping us expand credit access and improve customer convenience. Digital adoption is accelerating rapidly, while every third loan was frantined digitally in the last quarter of the previous year. Today, every second loan is being sanctioned through the digital channel. On the transaction side, over 95% of the customer transactions are now digital. We are also actively supporting the RBI and government initiatives from CPC and other digital public infrastructure projects reinforcing our commitment to India's digital transformation journey. Artificial intelligence is emerging acre growth and transformation driver for the bank. We have already deployed AI-powered solutions across customer service employee productivity, learning and credit processes, delivering tangible business benefits. Going forward, we are scaling AI and machine learning across operations, analytics, risk management and decision-making. with a strong focus on responsible AI governance and regulatory compliance, we believe AI will be a key differentiator in making our bank more results, efficient and customer centric. P&D is taking early stages as becoming quantum ready. We have deployed quantum-safe encryption in customer-facing applications and developing quantasebanking use cases such as new account detection. This reflects our commitment to staying ahead in Quantum banking environment and innovation. Bank is doing very well under the human resources front and strengthening the employees engagement. The bank has partnered with 29 processors or practice and 4 premier institutions, ISV Hyderabad, MDI Gogo, IP Herbal and U next learning by Manipal Academy end capability building through specialties training, research and future ready learning. The bank has introduced AR and VR based training models available in 8 languages to deliver immersive learning and strengthen workforce capacity through technology-enabled training. In partnership is Microsoft, the bank has launched an AI training and certification program for all officers to build future radical capabilities. My concluding remarks, the bank is strengthening its core franchise by expanding its CASA base and accelerating growth in retail, agriculture, MSME portfolio, laying the foundation for sustainable growth, stronger margins and improved operational efficiency. Our disciplined risk management approach supported by prudent underwriting, controlled slippages and focused recoveries continues to strengthen asset quality while digital and workforce transformation are enhancing productivity and customer experience. Credit cards, cash management services and supply chain finance continue to emerge as key growth engines delivering a strong business momentum and supporting diversification of our revenue stream. With a strong balance sheet, disciplined execution and multiple growth drivers in place, the bank remains well positioned to deliver consistent and sustainable value creation. Thank you very much, and I am open for any questions, clarification related with the performance of our bank.

Thank you very much. Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Maru Kajanio from Tara Capital.

Also, congratulations. I have a couple of questions. So I have a couple of questions. firstly, in terms of margins, I know you gave your guidance and outlook. But how sustainable are these? Because we are seeing margin expansion at state-owned banks and we are seeing margin contraction in quite a few private banks. So how sustainable are these margins? Do you think you can hold these margins? What are the pressures of positive triggers going ahead from margins. And also in terms of growth, while you've done well on NII, your growth is slightly lower than other PSUs. So what is the plan here in terms of catch-up and in terms of focus areas. So these are my 2 questions. And then also if you could talk a bit about your target of FCNR deposit mobilization and whether you are already seeing good demand or not?

First, I will touch on the margin part. And if you recall our interaction in the last quarter, where I understand that almost all the higher deposit repricing are likely to be completed by May. And that has already happened now. And bank has also mindful of the higher cost deposits. And that is the reason we are absolutely not there in the bulk deposit market and the city market. And very consciously, we have kept the deposit growth at 8% and this has contributed in the deposit -- the cost of deposit and 34 basis point improvement has happened in the cost of deposit, if you compare the Y-o-Y. And we are going to continue this strategy because since the beginning, I'm talking about the profitability and rising of the balance sheet we are doing it like I'm talking about the low yielding IBPC, which is the bank what holding it, we have started diluting those things. And despite a diluting INR 22,000 crore IBPC Y-o-Y, still we are having a growth of more than 10% in the credit overall. So this is going to continue. And whatever the low-yielding corporate advances are there, that also we have said to the tune of around INR 34,000, INR 35,000 crores in the first quarter of this year. And with that, we are still able to maintain growth in the credit and that to the growth in the NII and the knee. And this strategy is going to continue till we are coming out of all these low-yielding advances and you will see the improvement in the NII and the NIM in every quarter now onwards. So that is the first point which I wanted to address to you. Second point related with this itself is the growth. growth, if you see, I will give you some numbers. The retail growth, if I exclude the IBPC, which I am mindful of reducing it wherever the low yielding the IBPCs are there. If I exclude the -- from the retail part, we have grown at 17.5% in the core retail. MSME, we have grown at more than 20%. Agri sector, in the priority sector, we have grown at 16.4%. Corporate loan book also has grown at 10%. So it is only because there are some rebalancing, we are doing it in the loan book, we are seeing the overall loan book is growing at around 12.5%. Otherwise, bank is absolutely wise for the good growth with profitability. Profitability is the top most parameter we have kept ourselves. And within that, we -- whatever business genes is likely to happen, we will do the business. Now coming to the FCNR part. I think it is an appropriate time this RBI has announced and this has brought down the deposit rate in the market. And overall, mobilization, which the bank has already announced that we are going to mobilize USD 2.5 billion under this route, already 425 billion -- 425 million USD have mobilized steel study. And we are seeing a good traction, whatever the commitment to which we have given, and we have set the target for ourselves -- that is the 2.5 billion USD through the FCNR road, we are going to mobilize that. And to that extent, I think our cost of deposit will also come because -- you are aware that whatever mobilization, we are doing it, it will not go for the CRR and SLR. So that exemption is also there. So finally, the cost of deposit will come down in the long run.

The next question is from the line of Jay Mundra from ICICI qualities.

Sir, you mentioned in your opening remarks that SMA 2 at the bank level is around 2.9%. Can you also share SMA 1 number, sir, at the bank level?

SMA-1 is the INR 7,942 crores. And percentage-wise, it is...

Percentage is okay sir. And SMS will be how much so?

SMS is 1.59% SMA is 0.64%. And SMA-2 is 0.75%. All put together, it is 2.9%.

Okay. Okay, sure. And sir, then now last time when we had spoken on ECL, I think the final guidelines have come and you would have had a chance to have a thorough look on the -- what is your assessment on the transitional provisioning requirement under ECL onetime? And then if you can talk about the recurring impact because you may have to provide on the nonfunded exposure, et cetera?

See, the final digital calculations are on way now. And last time also I had indicated that in the month of October, through the digital route, we will be able to figure it out. And -- but rough calculation, which the bank has done. And last time also we had indicated. And as of today also, we are in the same range, around INR 9,500 crores to INR 10,000 crores that is a onetime exercise the bank has to do. And I think going forward also, we have seen around 10 to 12 basis point impact will be there on quarter-to-quarter basis.

Okay, sure. Sir, on IBPC, right? So if I look at this quarter presentation, they will still have around INR 28,000 crores of IBPC, right? So do you think this will run down over the next 1, 2 quarters? Or the rundown could be slightly gradual.

Yes. Now fortunately, there are around 80% of that is at a very good price. See, why IBPC we had reduced it because of the low-yielding side -- now almost we have claimed -- there are around INR 7,000 crores to INR 8,000 crores is still -- it is at a lower rate, and that is getting matured in this quarter. So we will be totally out from that. So final standing for another 90 days or, yes, 120 days will be around 16,000 to INR 17,000 crores. And that is at a good price that is matching with our requirement, our requirement, yes.

Right. So then no more IBPC drag will be there, right? At this quarter after you, let us say, remove INR 10,000 crores. Okay. So that is good. And sir, on FCNRB you mentioned that you have raised already USD 400 million. Are the -- you are also offering leverage product, right? Or how does this work? And what is the blended, let's say, leverage that you may be offering?

No, no, we are offering the leverage also. But we have not means exercise and the leverage as of now in a bigger way. Most of these things are coming without level. I think 100 -- out of $425 million, around $200 million. $200 million has come through the liver side. Otherwise, all the core -- the deposits under the FCNR is coming. But we have the leverage product and we are working on that.

Okay. And sir, if -- my last question from my side is, sir, what has happened to this ILFS Tamil Nadu power? I mean, they -- I thought we had success provisioning there we had resolved as you accounted everything? Or what is going to happen there?

No, no, we are still holding it around INR 1,000 crore provision is still we are holding it that indicate we have now for the decide.

Okay. So you -- would you -- I mean, so what stops you from not accounting.

We will use this. In this financial year, we will use this maybe in Q2 or Q3. We will use that.

Do you need any approval from any auditor or RBA to use that? Or that is your discretion kind of thing.

All the approvals are in place now. Nothing, no talent. We can do that. All these approvals have there.

The next question is from the line of Nitin Agarwal from Motilal.

Congrats on a good number, sir. Sir, 2 questions. One is on the provision that extra provision that you are making quarter every quarter. So what is the overall approach that you're looking at? Like by when do you look to complete this provisioning requirement? Any set time line that you're looking at in terms of the total coming up to the total number?

Yes, Can I answer now? Or do you have any other?

Yes, yes. So okay. I'll go ahead to the second also, sir. Second question is around the OpEx growth. Now for us, like OpEx growth this quarter is like a decline, and we used to incur higher PSLC costs. So where it has come down? And by when do you think we will be able to completely plug this gap and in fact, go on to earn PSLC income. So by how are you seeing that trajectory? And therefore, overall, how are you looking at the cost income ratio because that has been 1 of the drag on our ROE versus other banks?

Yes. All the 3 things I will answer you. First is the floating provision which the bank is keeping it. This quarter, we have kept INR 390 crores, and thereby, the total floating provision is INR 2,435 crores. We will be doing it in every quarter of this financial year. And anyway, from the next financial year first April onwards, I think ECL has to be implemented. So in a true way all this floating provision, which is there. I think that will be used for the migration purpose now. And thereby, what rough estimation, which we have done tent basis point on a running basis, the credit cost will be there on account of the ECL migration. So this is all about the ECL transformation. Bank is totally plans to have onetime agrasion also that decision will take at the prepaid time. But we have an action in the capital front. And I think there is no challenge as far as the ECL implementation is concerned. Second part is PCL. I think last year, if you remember in every -- the con call, I was touching upon this point that PNB has a large presence, having 10,300 branches and most of these branches are in the agri sector. So a lot of activities we have started coming out of the agri outreach activity, self-help group outreach activity. And all those efforts have yielded good results. field has responded very well. And the ultimate result is that last year, in the first quarter, we had incurred INR 893 crores, almost INR 900 crore to purchase the PSLC. And this year, that amount is only INR 360 crores. And with this activity, which the bank is doing it, I think next year, we don't require the PSLC. And internally, we have set a target at least INR 500 crore to INR 1,000 crores, we should be the seller in the market. With the activity with the bank is doing it, with the agri gold loan, which was very subdued in our bank, and that is growing at 100% now. So that gives a lot of push for us to use that PSLC for all those -- the GAAP purpose. And also for the selling purposes we have enough in the next financial year. I will give you the number last year on the gold loan, our total exposure was INR 5,624 crores in the June 25. Today, we have INR 1,818 almost INR 32,000 crores. So 103% growth is there. What was happening, we had 13,000 boes they were doing the gold loan. Now with the -- the policies in place, guidelines are there. So there is a full clarity there on the gold on front now. So thereby, another 3,400 runs we have added this year in the Gold Loan Banking and we have provided all the infrastructure and everything. So we are expecting that around INR 50,000 crores to INR 60,000 crores, our portfolio should be there by end of this financial year. and that will help us in reaching the PSLC as well as if any surplus will be there. I think we will be able to sell it. But definitely, next year, we don't require the purchasing of the PSLC. The third part was the operating profit and the operational costs. See, the cost-to-income ratio every quarter, there is a reduction and from 55% last year in the same period, we have brought it down to 50%. And all those -- the activity which the bank is doing it, especially the PSLC which the bank was purchasing it. I think all these things are going to help in reducing the cost-to-income ratio. And we are setting a goal that we should be, I think, 47%, 48% by end of this financial year.

The next question is from the line of Sushil Choksey from Indus Equity Advisors.

Congratulations to PNB team for a very stable and a good outlook. So my first question is, what is the outlook on treasury yields are hovering around 675, estimating good amount in FCNRB. Second is your written off book, what kind of recovery are we likely to see? And third is what is our digital spend to enhance bank's capability in the current year.

Ladies and gentlemen, please checking the connection for management. Ladies and gentlemen, thank you for patiently holding. We have management reconnected. Over to you, ma'am.

Sir congratulations to team PNB for excellent results on a stable outlook. Sir, my first 3 questions, what is treasury outlook, what is our digital spend likely for the bank enhancement of capability this year? And third is in our return of book and technical return of book, what is the recovery estimate for the current year.

Yes. First is the treasury outlook. We are expecting that every quarter around INR 900 crores to INR 1,000 crores, we should be able to earn from the treasury side. This is the outlook which we have -- which we are giving you now. This quarter also, around INR 1,100 crores, we have got the income from the treasury side. Next is the digital spend. In fact, last year, we had typically a board approval of INR 3.500 crores, and we utilize around 82%, 84% of that amount for our various IT and digital active. This year also, our total budget for the financial year is around INR 3,000 to INR 400 crores. We are augmenting our data center. We have come out with a new data center in Gurgaon, very high-tech data center has come out and then we are also working on the AI, GenAI and the Quantum technology, which I have mentioned in my opening remarks also, a lot of activities, a lot of thrust we are giving for improvement of the customer service, product improvement and the employee engagement through this digital initiative. We have come up with an AI-powered customer chatbot, which we call it as Phu,ou can go to our Punjab National Bank site and you can interact with the Pro for anything related to the put we say, ATM to branch at, which is related to bank to will provide you and guiding. Then have also come out arable employee engagement, that cabo -- so sitting across the counter, our employee and chat Vidara and provide the instant solution, instant guidelines to the customer now because any customer asking an to understand what is the voting loan scheme, what are the documents required. So the employee can just tack with the and instantly, we can provide a list of all those documents and list of guidelines. So -- and the third initiative is the bank has taken is the GenAI-based tool for credit not degeneration, and we are extensively using it for CRM too long. lead generation, sales, marketing, we have extensively started using that GenAI. Quantum technology impact of the leading bank and first market center who has declared contain customer-facing applications and developing faneto bank in use cases, such as new account detection. 86 of our applications, which is the customer facing, we have already deployed the Quantum checkout is certified by NIST U.S.-based organization. The bank is doing a lot of activities on these areas. Your third point was TW recovery. TW recovery, in fact, last year, when I had -- given the guidance, First of all, the total recovery guidance we have given for the INR 13,000 crores. Total recovery will happen through that route now. Within that INR 13,000 crores, INR 4,000 crores, we're expecting that it will happen the [indiscernible].

Sir, any outlook on all the 3 subsidiaries met life Panthers and PNB housing, what are we doing? Are we enhancing our stake or any business outlook, which you are seeing as a promoter?

Yes. stake enhancement, we are not going to do that. But of course, we are constantly reviewing the performance and giving a real killer direction because value maximization of the subsidiary is 1 of our agenda items and you have seen that PNB housing, the new MD has come and a lot of activities started in that organization. Similarly, PNB MetLife, their performance has also improved and the PNB yields also they're doing very well. So time to time, our interventions are there, and we are reviewing their performance. And our people are there goal now so that we understand where they are now and what is the support they require from the paritarias. We are committed for the highly maximization of our subsidiary.

The next question is from the line of Ashlesh Sonje from Kotak Securities.

Sir, firstly, If I look at the processing fee for the quarter, that has grown very well by 30% Y-o-Y to almost INR 1,000 crores in this quarter. Sir, what is driving this growth? That's my first question. And secondly, sir, if I look -- you mentioned about shedding some low-yielding corporate advances of about INR 35,000 crores in this quarter. If you can just explain what do you mean by low yielding advances? Is there some threshold that you're looking at and what has happened eventually to these borrowers? Have they are new loans from you at a higher rate or they have gone to another bank? Or have they gone to the bond market?

See, processing fee. Last year, during the same period was INR 728 crores. And this year, the same period, it is INR 938 crores. So that is around 27% growth is there. When we are growing in the corporate loan book last year, INR 4 lakh crores of corporate loan book was sanctioned. So wherever the sanctions are there or the NPEs are there, I think we make income by way of processing fee. It is only because of the growth which is happening overall credit and especially in the corporate loan book. we are getting the good processing fee. And secondly, the low-yielding advances what we classify is around 7% below. That is the benchmark we have created. That whatever the advances are there below 7%, I think in a time-bound manner, we should edit. And we are in a position to replenish it with the high-yielding advances, is almost things able to grow at 10% despite around INR 40,000 crores on advances we have said in the first quarter of this year now.

Understood, sir. And the growth in processing fee coming back to that, do you think your ability to charge fees on these loans has improved over the past few quarters?

Yes. But we are doing it. We have improved the turnaround time and we are very mindful and we have fixed up the accountability in the team now that the movement, any proposal is sourced, let us have the decision immediately, yes or no, let us decide. That is 1 area bank has done very well. We have created a tool for that. The tactus tool is there. where any proposal that gets emanated at any level that has to be interred there because that gives you the reference number. And when the account gets opened in the system in the CVS, that reference number has to be used. So I think we are very guided way. We are monitoring the turnaround time. And I feel that if the decision making business is good and if we improve that performance, I think pricing becomes a [indiscernible].

Understood, sir. Sir, and the other question on low-yielding corporate advances. I was just trying to ask what has happened to those borrowers? Have they come back to you at a higher price or they have gone somewhere else?

No, no. Many of those people that has been repriced, and we are able to sustain them. But there are citing INR 17,000 crores, we have lost it, and we have not given the rate which they were asking and we are allowed to cease the bank.